pochin’s plc
annual report  accounts 2008 headlines                                                                                       1
chairman’s statement                                                                             2
chief executive’s report                                                                           4
financial review                                                                                12
directors                                                                                      16
corporate social responsibility                                                                     17
corporate governance                                                                            19
directors’ remuneration report                                                                     22
directors’ report                                                                                27
consolidated income statement                                                                    33
statements of recognised income and expense                                                        34
consolidated balance sheet                                                                       35
company balance sheet                                                                          36
consolidated cash flow statement                                                                  37
company cash flow statement                                                                     38
accounting policies                                                                              39
notes to the financial statements                                                                   45
report of the independent auditors to the members of pochin’s plc                                        78
five year summary                                                                              80
shareholder information                                                                           81
contents
easter park shell green widnes page 1
headlines
financial summary
for continuing operations proforma proforma
2008 2007
£m £m
company and subsidiary profits 41 97
investment impairments 46 15
reorganisation costs 08 –
lossprofit from company and subsidiaries before tax  ifrs operating lossprofit 14 82
joint venture and associates operating profits 59 02
provisions against future losses 31 –
profit from joint ventures and associates before tax 28 02
net finance 09 06
profit before tax for the group 23 90
tax on joint ventures and associates 05 01
ifrs profit before tax 18 91
taxation on company and subsidiaries 09 23
profit after tax for the group 26 68
net assets 531 515
pence pence
earnings per share diluted 127 332
dividend per share 60 925
the profit from joint ventures and associates before tax of £28m is reconciled to the face of the income statement £23m by adding back the tax credit in joint
ventures and associates £05m
• turnover maintained at £115m
• profits £23m after provisions of £77m against
investments
• property profits of £20m after provisions
• joint venture contribution at £28m
• contracting profits at £08m before reorganisation costs
• forward orders for contracting of £55m
• construction services result maintained at £03m
• residential developer losses increased by write downs of
land values
• group banking facilities increased to provide liquidity
headlines page 2
chairman’s statement
chairman richard fildes
the results for the group for the year ending 31 may 2008
reflect the difficult conditions prevailing in the uk property
market profits before tax on group companies joint ventures
and associate company income were £23m 2007 £89m
derived from turnover of £1153m 2007 £1166m after
accounting for taxation charges in joint ventures of £05m the
reported ifrs group profit before taxation is £18m 
2007 £91m
a final dividend of 30p is proposed which combined with the
interim dividend of 30p 2007 30p will total 60p 
2007 925p for the full year the board regrets the need to
propose a reduced final dividend which it feels is appropriate
in the current general and specific economic circumstances 
“dramatic recent events in financial markets make
commenting on the group’s current prospects unusually
perilous” this concern expressed in last year’s chairman’s
statement unfortunately has proved to be fully justified by the
wholesale reassessment of property values and prospects
which have occurred since last year’s annual report 
this has been brought about by the abrupt change in both
the cost and availability of money for many years readily
available funding for property development and investment
has stimulated demand prices responded with investment
yields falling to well below the cost of money encouraged by
the prospect of even higher prices money is the raw material
of the property industry and when its supply is savagely
curtailed as is evident from the changed conditions in the
credit markets demand from investors evaporates prices
begin to fall and confidence is destroyed 
thus we have seen in the last twelve months a substantial 
rerating of the value of both commercial and residential
property such a marked adjustment naturally affects not only
the price of built stock but also development appraisal and
land values to date stability has not yet returned with
investment yields still drifting outwards and the viability of all
forms of development remaining difficult to assess 
in these troubled circumstances pochin’s has performed
creditably during the year the property division has again
new craft centre ruthin
  page 3
chairman’s statement
made the main contribution before making necessary
provisions in the prevailing market conditions the profitable
disposal of land for a supermarket at ellesmere shropshire
was a highlight as was the exchange of contracts for the
£12m sale by manchester technopark limited our joint
venture with manchester science park limited of reynolds
house fortunately the division’s investment portfolio is well
let with its £38m annual rental income so far proving resilient
a reorganisation of the contracting division was carried out
during the year taking the cost of this into account its
performance was acceptable turnover was maintained and
the reinvigorated management team is now winning valuable
new business despite the increasingly competitive
environment for contracting
during the second half of the year the construction services
division was affected by weakening demand and sharply
increasing fuel prices since the year end there has been no
improvement in turnover with business in the midlands and
the north showing the greatest decline steadier fuel prices
and sustained public sector activity are helping to alleviate this
situation
the residential division had an extremely difficult year and it
is not possible to report any improvement since the year end
fortunately the modest size of the operation and a realistic
approach to speculative building will mean that the
continuing losses of the division are containable 
naturally the group’s future prospects depend on more stable
conditions in financial markets in addition much rests on the
outcome of the struggle between the competing forces of
commodity price inflation and weakening global and domestic
demand and the reaction of central bankers to it the current
year requires careful cost control and due regard for the
importance of maintained liquidity fortunately the group
enjoys close relations with its bankers notably the royal
bank of scotland who have demonstrated their strong
support with the renewal and extension of facilities sufficient
to sustain the group’s various activities during the current year
and beyond the group’s prudent approach to speculative
development and its strong balance sheet will prove
increasingly important until improved market conditions begin
to be reestablished 
in addition to the unfortunate and painful damage it has
inflicted on shareholders the sharp deterioration in all the
group’s markets has tested the morale and resilience of its
management and staff to date such tests have been met
with great resolve and i would take this opportunity to thank
and congratulate all those involved i would also like to record
my thanks to ross murray and richard buck who have left
the board after serving the group for thirty years and twenty
years respectively 
pochin’s is a fine company with a well deserved reputation
among its clients tenants suppliers and employees this will
sustain it through the current adverse circumstances enabling
it to benefit from the many opportunities which diligent and
hard work will identify as confidence and credit gradually
return to the property market
richard fildes
22 september 2008 
walker house liverpool page 4
chief executive’s report
chief executive david shaw
overview
the pochin group operates in the construction and property
sectors through four complementary but autonomous
trading divisions
• property investment and development
• contracting
• construction services
• residential development
our operations are primarily in the north west region and
have been affected this year by a particularly tough property
market which has resulted in an inability to complete a
number of planned property disposals and has largely
curtailed residential sales activity 
contracting operations have remained largely unaffected to
date but the division has been restructured during the year
and management has been reorganised so that it is better
placed to operate should it be affected by worsening market
conditions 
construction services through pochin concrete pumping
operates throughout the uk and has faced different
challenges most notably the increasing cost of fuel and
these have eroded margins in the second half     
residential sales suffered a severe downturn with only 39
completions added to the 21 sales brought forward from the
previous year 
although the group has generated operating profits in the
second half of the year a prudent and cautious approach has
been taken in the current climate and the values of
landholdings and investments in the commercial and
residential divisions have been reassessed and where
appropriate written down to reflect the general downturn in
the sector   
reported group profits before tax on company subsidiaries
joint ventures and associates are therefore only slightly ahead
of those reported at the half year heald green
headlines
• turnover maintained at £115m
• profits at £23m after provisions of £77m against
investments
• property profits of £20m after provisions
• joint venture contribution at £28m
• contracting profits at £08m before reorganisation costs
• forward orders for contracting of £55m
• construction services result maintained at £03m
• residential developer losses increased by write downs of
land values
• group banking facilities increased to provide liquidity
  page 5
chief executive’s report
emerald park crewe
  page 6
chief executive’s report
property investment and development 
the year has seen a general market adjustment to property
values which has impacted on the assets and trading
operations of the division investment values have fallen and
development activity has suffered further due to the effects of
the credit crunch a prudent and cautious approach has been
taken and where appropriate the values of commercial
landholdings and property investments have been written
down to reflect the general downturn in the sector   
although activity is reduced and property disposals have been
extremely difficult to achieve two significant profitable
transactions have been completed in the year 
at ellesmere shropshire 3 acres of land were sold to tesco
stores limited following completion of a new road and
associated infrastructure works the downturn in the housing
market has however deferred the planned sale of a further 17
acres of land with residential planning permission the
remainder of the land on this development has the benefit of
planning permission for health and leisure uses and disposals
of these parcels are being pursued  
the group’s interest in remaining industrial units at valley
court and office units at verity court both recent
developments on our midpoint 18 business park in
middlewich has been sold to lincoln house properties
limited
undeveloped land at midpoint 18 now has the benefit of
outline planning consent for employment use but market
conditions and infrastructure issues remain as significant
hurdles to its development 
in crewe emperor court an office development of circa
22000 sqft is reaching completion and is located alongside
the ramada hotel site sold last year
the benefit of rent reviews particularly on investment property
at ormskirk has created additional value which has helped
to partly counter the effects of write downs in respect of
general market adjustments the group’s portfolio of
investment property currently has occupation levels by area
of circa 93
demand for space at keele science and business park also
remains strong again resulting in high levels of occupation
joint ventures
despite the generally challenging climate manchester
technopark limited has successfully exchanged contracts for
the disposal of reynolds house for £12m and our share of the
resulting surplus has contributed significantly to this year’s
results  
we have continued to work on our joint projects in liverpool
manchester and north wales in conjunction with uk land 
property limited 
at exchange flags in the centre of liverpool’s financial
district the £15m refurbishment of walker house designed
to create 220000 sqft of quality office space is currently
being carried out by our contracting division fit out works for
the anchor tenant the ministry of defence are due to
commence in october of this year meanwhile further lettings
have been secured at horton house where prime tenants
such as brabners knight frank and deloittes have increased
occupied space to circa 80
wolseley distribution centre chorley
  page 7
chief executive’s report
at harwarden business park in north wales the 25000 
sqft unit developed last year has been let and a further
scheme of small business units with a total area of 40000
sqft is now under way at heald green near manchester
airport the first phase of the office park is nearing completion
amounting to some 45000 sqft of quality office space in
small business units
our joint venture with castlewood developments limited in
birkenhead continues following the completion of a revised
development agreement with wirral borough council to
deliver a 95000 sqft foodstore in the town centre the joint
venture has secured an agreement to lease with asda
stores limited site enabling works continue in parallel with
the cpo process which is required to complete site
assembly  
the midpoint partnership in which we have a 25 share
continues to market the completed unit 75 a substantial
distribution facility on midpoint 18 business park middlewich  
the trinity court development limited apartment scheme in
holyhead on anglesey in which we also have a 25 share
has seen a number of sales in the year with just 7 units and
some ground floor retail space remaining
contracting
turnover including work on development projects for our
property division has been maintained at £85m 
2007 £85m despite several embryonic projects being
cancelled by clients after successful tenders had been made
a strong performance in the second half resulted in a
profitable outcome for the year as a whole before accounting
for reorganisation costs  
following an independent business review in spring 2008 a
new divisional managing director was appointed to oversee
the reorganisation of the division the divisional board has
been restructured and a review of strategy is under way
operational and support management teams have also been
reorganised in order to focus on the key issues identified in
the review process including further improvements to bid
management processes and an expansion of the business
development resource  
a number of key projects were delivered in the year including
the environmental science building for bangor university
which received the labc wales award for best sustainable
development 2008 and has been nominated to go forward to
hq chester page 8
chief executive’s report
emperor court crewe
  page 9
chief executive’s report
the following illustrates the variety of our contracting projects during the year
commercialmanufacturing
morson group plc
construction of 5 storey office development
86017 sqft centenary way salford
dsv road ltd
15850 sqft extension to existing industrial unittransport
warehouse with associated external works greeba road
wythenshawe
easter developments haydock ltd – r
construction of 6 industrial units with fully fitted office
accommodation and secure external areas 76000 sqft
haydock
helios industrial developments ltd
construction of 8 speculative industrial units with ground
floor core area and first floor offices 224000 sqft
buckshaw link chorley
hawarden business park ltd – r
construction of 2 industrial units with associated office
and welfare areas plots 3  4 hawarden business park
pochin developments ltd – r
construction of 3 storey office development 21000
sqft emperor court crewe
refurbishment of existing building to form 3 retail units
6500 sqft longton staffordshire
patrick properties ltd – r
construction of 3 storey office development comprising 2
units of 20000 and 30000 sq ft including external car
parking substation and back up generators emerald
park crewe
uklp developments ltd – r
construction of 7 speculative 2 storey office buildings
with associated external works 89000 sqft heald
green cheshire
hq chester ltd – r    
design and construction of 35 residential apartments 85
bed hotel restaurant and commercial offices chester
ipsen biopharm ltd – r
enabling works and construction of new pharmaceutical
development building 30634 sqft wrexham industrial
estate
kk fine foods ltd – r
25340 sqft extension to existing food product facility
comprising single storey warehouse and two storey office
area deeside
uklp walker house ltd – r
refurbishment of landmark grade ii building into offices
230000 sqft ground floor retail and associated
underground parking facilities walker house liverpool
education
midcheshire college 
construction of 3 storey building for further education
including associated library and resource services
winsford cheshire
leisure
frederic robinson ltd – r
formation of new hygienic bottling plant area within
existing factory together with extensive reconfiguration of
openings for new conveyor systems bredbury stockport
refurbishment and alterations to “the grapes” public
house hyde stockport
health
henry davidson developments ltd – r
construction of 3 storey medical centre incorporating a
pharmacy and associated external works nantwich
cheshire
residential
prospect gb ltd – r
construction of two 5 storey apartment blocks each
consisting of 60 apartments broadway salford
r repeat client page 10
chief executive’s report
the meadows cockshutt
the national awards we now have £55m of secured work for
the current year 2007 £64m and there is an encouraging
level of enquiries in hand despite a noticeable decline in a
number of our traditional areas of activity the education
sector in particular remains strong evidenced by our recently
securing a £7m project to build a new learning zone building
for midcheshire college in winsford 
the focus will remain on delivering quality projects to clients’
satisfaction approximately 71 of revenue 2007 77 was
achieved as a result of negotiated or partnered contracts and
approximately 52 2007 50 of our revenue came by way
of repeat business our surveys indicate that we have
maintained our customer satisfaction ratings at 92 2007
92
construction services
concrete pumping sales rose by some 7 to £15m 2007
£14m achieved from 21206 jobs 2007 20795 jobs at an
average price per job of £648 2007 £621 with 144m cubic
metres of concrete pumped 2007 138m cubic metres
utilisation averaged 77 2007 76 and site reliability
remained in excess of 99 
after a solid first half the second half started slowly and the
price of fuel became the most significant factor affecting
margin increasing fuel costs were initially absorbed but
surcharges are being applied from june 2008
there has been a noticeable decline in activity in the northern
and midlands areas of england but the rest of the uk has not
been affected to the same degree and there are a number of
public sector projects in the pipeline 
pumi operations were reduced in line with the policy set out
last year and the division is currently operating 12 machines
residential development
the housing market particularly in our region has suffered
from the well publicised combination of a collapse in
consumer confidence and an inability for first time buyers to
obtain satisfactory mortgages the downturn in the market
has led to a review of the carrying value of land and work in
progress with write downs in values being made where
appropriate trading losses have therefore been increased 
the growth path of the division has been halted and the
number of sales completions was down on last year at 60
2007 69 achieved from 7 sites across the region there are
just 4 reservations carried forward into the new financial year
2007 21 reservations an exceptionally low level indicating
the severity of current market conditions 
the average selling price was £135000 2007 £159000
which is below the regional figure for new homes released by
the halifax of £171000 for the north west and below the
regional figure for all properties from the property website
rightmove at £178000 this decline reflects an increase in
the proportion of affordable homes allocated in planning
permissions for site development 
the land bank stands at 104 plots 2007136 plots with full
planning permission with a further 112 plots 2007 66 plots
secured and awaiting planning permission excluding
strategic land held under option 
david shaw 
chief executive
22 september 2008  page 11
chief executive’s report
haydock page 12
financial review
finance director john edwards
group results
total group sales were £1153m 2007 £1166m resulting in
a profit before tax of £23m 2007 £89m after accounting
for taxation charges in joint ventures and associated
companies of £05m the reported ifrs group profit before
taxation is £18m 2007 £91m the trading result for 2008
includes a write down of investment carrying values and
residential land holding amounting to £92m which reflects
the impact of the downturn in the property market in the wake
of the credit crunch
the contracting division recorded gross turnover of £848m
2007 £849m which included internal sales of £25m
despite the flat year on year activity margins on contracts
completed in the year held up well with underlying contract
profitability in line with the previous year profit before tax was
£03m 2007 £05m excluding a pension credit of £16m
after charging oneoff restructuring costs of £06m
the property division was the first to see a downturn in
market activity and values as a consequence the number
and the value of anticipated transactions were reduced and
investment activity curtailed to safeguard liquidity however
those transactions successfully completed included the sale
of part of the land at ellesmere shropshire to tesco stores
limited for retail development and the exchange of contracts
for the sale of reynolds house at manchester technopark
limited a joint venture with manchester science park
limited gross rental income from investment properties
amounted to £41m 2007 £36m overall the division
including the group’s share of joint venture income showed a
profit before tax of £49m 2007 £73m profit after write
downs of £86m 2007 £15m
the construction services division providing specialist hire of
concrete pumps across the uk generated sales of 
£147m 2007 £142m profit before tax was £03m 
helios city chorley
  page 13
financial review
2007 £01m margins came under severe pressure in the
second half due to escalating fuel costs which proved difficult
to pass on in the short term
the residential division was the hardest hit by the credit
crunch sales for the year were £81m 2007 £110m from
seven operating sites a downturn in values consumer
confidence and mortgage availability combined to reduce
significantly the rate of private house sales in the second half
year following reappraisal of existing developments and write
down of land values there was a loss for the division of £17m
2007 £08m profit
earnings per share and dividend
diluted earnings per share were 127p 2007 332p 
overall the group benefited from a tax credit of £03m 2007
£22m tax charge the company and subsidiaries had a tax
credit of £08m 2007 £23m tax charge on a loss of £05m
2007 £88m profit whilst joint ventures and associates
suffered a tax charge of £05m 2007 £01m tax credit on
profits of £28m 2007 £03m this favourable effective tax
rate reflects the utilisation of available tax losses in joint
ventures and associates indexation allowances on
revaluation gains and the phasing out of industrial building
allowances
subject to approval at the agm a final dividend of 30p per
share 2007 625p will be paid on 31 october 2008 resulting
in a full year dividend of 60p 2007 925p this reduced
dividend reflects in part the group’s efforts to conserve cash
resources during challenging economic conditions
the dividend is covered 21 times by earnings 2007 36 times
concrete pumping speke
  page 14
financial review
balance sheet
net assets have increased to £531m 2007 £515m
equivalent to 255p per share 2007 248p
the value of property non current assets grew in the year to
£480m 2007 £430m with the addition of the completed
ormskirk retail development due regard was made to
weakening property markets and the remainder of the group’s
property portfolio was accordingly written down by £09m
investment in joint ventures and associated companies
increased by £98m to £254m as a result of the group’s
participation in the acquisition of walker house liverpool and
continued development of birkenhead town centre retail
project
stocks and working progress have reduced by £35m
following completion of the ormskirk project and write down
of housing stock and residential land values
in accordance with ias19 there was a pension surplus of
£09m 2007 £06m deficit which is shown in the group
balance sheet as a current asset
joint ventures and investments
the group has continued to support existing projects and
despite the lack of shortterm opportunity has maintained its
strategic relationship with partners to provide future business
when the market improves net investment in joint ventures
and associated companies has increased in the year by
£98m to £254m
the group has traditionally taken a prudent view towards
recognising the full value of investments on the balance sheet
especially those at an early stage of development or that are
speculative in nature with the downturn in property yields
and hardening economic conditions in mind joint venture
investments have been written down and the charge to profit
in the year was £77m 2007 £15m
a full list of all group joint venture interests is provided in note
14 to the accounts
the group continues to have investment interests in
manchester science park limited £15m and uk land 
property limited £07m prosperity court partnership and
keele park developments are treated as subsidiary
companies in these accounts and third party minority
interests are shown in the income statement
borrowings cashflow and 
financing risk
new borrowing facilities were arranged during the year with
the royal bank of scotland rbs to provide appropriate
funding to support the financial obligations of the group and
sufficient liquidity during a period of economic uncertainty
total facilities of £47m are available from rbs of which £10m
are unsecured a further £135m facility is provided by bank
of scotland to fund keele park developments limited
net borrowings increased in the year to £429m 2007
£310m funding projects at birkenhead walker house in
liverpool and ellesmere shropshire
there was cash in hand at 31 may of £40m 2007 £02m
net cash movements in the year were
2008 2007
operating activities 22 52
salepurchase of assets 03 11
investment in joint ventures 124 32
interest and dividends 15 13
taxation 05 24
increase in borrowings £m 119 28
the group funds its operations through the use of cash loans
and various liquid resources such as debtors and trade
creditors funding availability and the management of interest
rates and liquidity risks are the responsibility of the finance
committee which is responsible to the main board for
implementing the group’s treasury policy
the group has minimal fixed interest rate borrowings and
continually reviews the need to hedge against interest rate
movements during the year the group entered into a 3 year
swap arrangement to fix its libor exposure to 498 on
£15m of new debt in addition there continues to be an
interest rate hedge in respect of borrowings in keele park
developments limited as at 31 may 2008 there was a
combined recognised gain on these financial instruments of
hawarden business park
  page 15
financial review
£05m 2007 £02m the favourable movement in the year of
£03m has been recognised in the income statement of the
group in accordance with ifrs convention
certain associated companies are financed by long term
repayment loans to finance investment property assets and
other joint venture companies are financed by short and
medium term bank borrowings the group regularly reviews
the risk of exposure to interest rate movements with its
partners and where appropriate hedges against that risk on
a project by project basis
the group continues to have minimal exposure to foreign
currency exchange risks and accordingly does not require a
policy to hedge such exposure
full disclosure of financial instruments interest rate and
liquidity risks are shown in note 23 to the accounts
pensions
the group operates a defined benefits db scheme and a
defined contribution dc scheme for its employees the db
scheme closed to new members since 31 december 2001
undergoes its scheduled full triennial actuarial valuation in
2008 following the last valuation in 2005 the group took
action to preserve the long term viability of the scheme
making changes to members’ benefits and providing £12m
as a special contribution to the scheme
total contributions paid this year to the db scheme were
£04m 2007 £12m payments to the dc scheme were
£02m 2007 £02m
under ias19 the db pension obligations are shown in the
balance sheet of the group and the movement in the year
reflected in the income statement and statement of
recognised income and expense as a result of the action
taken by the group referred to above combined with
favourable movements in investment values and bond yields
during the year a surplus for the db scheme of £09m 2007
£06m deficit is reported
full disclosure of all db scheme assumptions are set out in
note 7 to the accounts
financial reporting
there have been no changes to accounting policies in 2008
and the group continues to report in accordance with
international financial reporting standards
john edwards
finance director
22 september 2008
concrete pumping milford haven page 16
directors
michael chadwick 57 nonexecutive director
michael chadwick was appointed to the board in september
2005 he is executive chairman of grafton group plc a
company listed on the london and irish stock exchanges in
the 23 years he has held this position grafton group plc has
grown substantially in ireland and has built up uk businesses
with annual sales in excess of £1 billion he is also a director
of other companies in which he has invested
n l s
john edwards 50 finance director
john edwards is a fellow of the chartered institute of
management accountants and joined the group as company
secretary in august 2005 and served in this role until july
2006 he was appointed finance director in september 2005
  
richard fildes 63 nonexecutive chairman
richard fildes became chairman in january 2007 having
joined the board in august 2006 as managing director he led
the transition of barlows plc based in north west england
from a textile packing company to a property investment and
development company he has served as chairman of
barlows plc since 1997 and is a former chairman and director
of allied leather industries plc he is also on the board of a
number of companies based in north west england including
aintree racecourse company limited
n l s
nicholas fry 61 nonexecutive director
nicholas fry was appointed to the board in september 2005
he is a nonexecutive director of brixton plc blackrock
smaller companies trust plc and absolute return trust
limited he spent much of his career in investment banking
for many years with s g warburg  co limited now part of
ubs ag he is a qualified accountant and was a partner in
kmpg between 1998 and 2002 and senior adviser to kmpg
corporate finance until march 2005
n l s
audit committee n
remuneration committee l
nominations committee s
james nicholson 43 property development director
james nicholson is a member of the institute of civil
engineers and has been a director of pochin developments
limited since 1997 he was appointed to the board as
property development director in april 2003
  
sylvia nicholson 66 nonexecutive director
sylvia nicholson is the daughter of the group’s founding
chairman c w t pochin and has been a director since
1965
s
david pochin 43 construction services director
david pochin has been a director of pochin plant limited
since 1996 and was appointed to the board as a director in
2004 with specific responsibility for the construction services
division
david shaw 58 chief executive
david shaw is a fellow of the chartered institute of chartered
accountants in england and wales and joined the group in
1980 he was appointed company secretary in 1981 and
served in this role until april 2004 he was appointed finance
director in 1993 and chief executive in april 2004

david hedley 47 company secretary
david hedley is a solicitor and joined the group in october
2005 he was appointed company secretary in july 2006
 page 17
corporate social responsibility
the group endeavours to conduct its business in a manner
which ensures that the public its clients and employees are
at all times protected from any potentially harmful impact of its
activities
health and safety
all divisions report to the director responsible for health and
safety on a monthly basis to ensure that all matters are
properly addressed every effort is made to raise the profile
and importance of health and safety issues throughout the
group 
following the success of the construction services division
the contracting division received ohsas 18001 registration
from the british standards institution bsi this is an
international occupational health and safety management
system specification and registration demonstrates that the
company has the necessary systems and procedures in place
to manage health and safety effectively the division was also
successful in renewing its accreditation under the
contractors’ health and safety assessment scheme and
national britannia safecontractor scheme 
following the introduction of bs84762007 code of practice
for the safe use of concrete pumps the construction
services division distributed a circular to over 900 customers
offering a training dvd and providing points of contact for
safety and technical queries
awareness is critical in matters relating to health and safety
and circulars and bulletins are regularly issued to employees
appropriate training is also provided to improve knowledge
and understanding for example over 3400 safety rules and
guidance booklets were distributed to employees and
subcontractors during the year
the contracting and construction services divisions issued
an updated induction film to present the group’s safety culture
to individuals who may not have worked with the group
before the film is available in a number of languages as more
foreign workers are joining the industry
half tide dock liverpool
  page 18
corporate social responsibility
it is pleasing to report that the group has achieved three
further awards this year
rospa silver – pochin contractors limited
rospa gold – pochin concrete pumping limited 
rospa gold – pochin homes limited
this brings the total to 23 awards in the last seven years
the property division ensures that the sites and buildings
under their control are regularly inspected to ensure that they
are in a safe and secure condition and regular reports are
submitted to the health and safety team the residential
division also submit regular reports regarding any issues
which arise on their sites
environmental
the group operates site waste management plans on all
construction sites in accordance with the site waste
management plans regulations 2008 all senior managers
within the contracting division have attended one or more
workshops which have been organised with the help of
government sponsorship over the last 12 months 
the carbon trust carried out a survey of energy usage at
head office and the recommendations contained in their
report have either been actioned or are planned
good progress has been made throughout the group in
improving the accuracy of data collection for the reporting of
environmental key performance indicators in the meantime
awareness has been raised of the relevant issues and the
importance of energy saving recycling and waste reduction in
all areas
the group is becoming increasingly involved in the
construction of more energy efficient buildings and the use of
sustainable building products and is currently working on an
environmental checklist for the use of design teams at the
visage salford
outset of new projects all construction sites are registered
with the considerate constructors scheme and many
certificates of compliance have been achieved throughout the
year
awareness is again a critical factor in improving environmental
performance and the group has introduced appropriate
signage at the entrance to all construction sites so that it is
clearly visible alongside the traditional health and safety
guidance induction films also include specific guidance on
environmental matters to all users including customers and
subcontractors
the residential division is taking active steps to meet new
standards in housing construction in advance of their
compulsory implementation
people
the group currently employs over 350 people they are the
interface with customers the representatives of the group and
its culture and one of its most important assets
throughout the year the contracting division was recognised
as an “investor in people” this involves a rigorous
assessment process which independently confirms that the
group’s culture of training development communication and
reward is properly and successfully implemented following a
survey of employees the division reached the final of the
contract journal “best places to work” awards
the health of employees remains important to the group and
regular site visits are made by a qualified nurse who is
available privately to advise on any health issues
the group continues to implement the policy that all
employees or potential employees receive fair and equal
treatment without discrimination
  page 19
corporate governance
application of principles
the group is committed to maintaining high standards of corporate governance and the board is accountable to the
shareholders for implementation of the principles underlying these standards the steps taken throughout the group to maintain
good corporate governance are set out below
compliance
the board confirms that it is reporting in accordance with the requirements of the revised combined code the code except
that mrs s e nicholson and mr m chadwick who served throughout the year as nonexecutive directors could not be
considered to be independent of the company’s management and shareholders in view of their shareholdings mr r fildes
who was appointed as an independent nonexecutive director in august 2006 could not be considered independent following
his appointment as chairman in january 2007 the company has not therefore complied with provisions a31 a32 a41
b21 and c31 of the code 
the board of directors
the company supports the concept of an effective board leading and controlling the group the board is responsible for
approving overall group policy and strategy it meets on at least six occasions in each calendar year and has a formal schedule
of matters reserved for its decision including the approval of interim and preliminary announcements approval of annual report
and accounts approval of dividend policy approval of major capital expenditure treasury management appointment of board
members and professional advisors and in a supervisory capacity formulation of the group’s risk management strategy and
health safety and environmental policies 
management supplies the board with appropriate and timely information both informally and formally through a structured
reporting process of committees including monthly executive and finance committees a full and open debate is encouraged
on all matters relating to strategy performance resources key appointments and standards of conduct at all meetings of the
board the directors are also free to seek any further information they consider necessary to fulfill their duties all directors have
access to the advice and services of the company secretary and where appropriate independent professionals at the expense
of the company training is available for new directors and ongoing training and education is provided to other directors as
necessary
at the date of this report the board comprised four executive directors and four nonexecutive directors the names and
biographical details of all the directors are shown on page 16
the roles of chairman and chief executive are separated and clearly defined mr r fildes served as chairman throughout the
year and mr d shaw served as chief executive throughout the year the other executive directors who also served throughout
the year were mr j edwards finance director mr j w p nicholson property development director and mr d d r pochin
construction services director mr r g buck served on the board until his resignation on 31 october 2007 and mr l r murray
served on the board until his resignation on 31 may 2008 
the nonexecutive directors also served as members of the audit remuneration and nominations committees the non
executive directors have skills that complement those of the executive directors mr r fildes served as chairman throughout
the year and mr n r l fry served as senior independent nonexecutive director throughout the year mr m chadwick and
mrs s e nicholson also served throughout the year
all directors are subject to election by shareholders at the first agm following appointment and to reelection by shareholders
every three years thereafter in accordance with the articles of association of the company “the articles” mr j edwards 
mr n r l fry and mr m chadwick will therefore be retiring at this year’s agm and being eligible will offer themselves for 
reelection
accountability and audit
the board has formally constituted three subcommittees for audit remuneration and nominations membership and a
summary of the terms of reference of these committees are detailed below 
  page 20
corporate governance
audit committee
throughout the year the audit committee comprised the following nonexecutive directors mr n r l fry chairman mr r
fildes and mr m chadwick
the terms of reference of the committee include reviewing the group’s management of risk internal financial and operating
controls reviewing the scope and results of the audit its cost effectiveness the independence and objectivity of the auditors
including fees in relation to and in the nature of nonaudit services and annually the need for an internal audit function the
committee meets at least three times a year and external auditors attend together with the executive directors as and when
required
remuneration committee
throughout the year the remuneration committee comprised the following nonexecutive directors mr n r l fry chairman
mr r fildes and mr m chadwick
the committee has the responsibility for making recommendations to the board for the remuneration policy of the company
and also packages for individual directors it carries out the policy on behalf of the board in carrying out these responsibilities
the committee has had full regard to the requirements of the directors remuneration report regulations 2002 and the code
nominations committee
throughout the year the nominations committee comprised the following nonexecutive directors mr r fildes chairman 
mrs s e nicholson mr n r l fry and mr m chadwick 
the committee makes recommendations to the board on all board appointments and takes advice from external consultants
when necessary 
attendance record
board audit remuneration nominations
total number of meetings 200708 8 4 3 1
m chadwick 88 44 33 11
j edwards 88
r fildes 88 44 33 11
n r l fry 88 44 33 11
d r r pochin 78
j w p  nicholson 78
s e nicholson 88 11
d shaw 88
notes
1 mr rg buck attended 3 board meetings up to 31 october 2007
2 mr lr murray attended 7 board meetings up to 31 may 2008
  page 21
corporate governance
relations with shareholders
the company values the views of its shareholders and recognises their interest in the company’s strategy and performance
board membership and quality of management the board has dialogue with certain of its institutional and other shareholders
on numerous issues during the year and is pleased to promote the mutual understanding of objectives in accordance with
section d12 of the code the chairman ensures that the views of shareholders are communicated to the board as a whole
the agm is used to communicate with private investors and they are encouraged to participate the company arranges for
notice of the agm and related papers to be sent to shareholders at least 21days before the meeting the chairmen of the audit
remuneration and nominations committees are available at the agm to answer questions separate resolutions are proposed
on each issue and clear distinction is also drawn between ordinary and special resolutions to ensure they are given due
consideration there are separate resolutions to approve the annual report and accounts and the remuneration report the
company counts all proxy votes and indicates the level of proxies lodged on the resolutions after they have been dealt with by
a show of hands the company also displays its interim and final announcements on the company website
internal control
the board has overall responsibility for the group’s system of internal control and for reviewing its effectiveness on an ongoing
basis the board confirms that in accordance with the guidance on internal control the turnbull report the group has taken
steps necessary to ensure compliance with principle c2 of the code the board has overall responsibility for the management
of risk and has in place a full risk and control register of the group’s activities this register is reviewed at least annually to monitor
and ensure the adequacy of its procedures for the management and control of risk this process involves each of the subsidiary
company boards carrying out periodic reviews of the key risk areas within its own business including a review of health and
safety risks measures and policies response to changes in legislation and the identification of commercial risk each
subsidiary company reports this information to the board this process enables the board to identify areas where procedures
need to be changed or implemented throughout the group and to initiate appropriate action plans the board monitors progress
towards successful completion of these action plans and the identification of any new risks through a process of ongoing
review
although the group has the relevant systems and procedures in place the board considers the management of risk to be an
ongoing process and to increase entrenchment of these procedures throughout the group the board encourages the
management of its subsidiary companies to conduct reviews of risk management strategies and control measures at least
annually and also to report to the board on any changes in activity that may have a significant risk management impact in the
light of the above the board is of the view that the group has established procedures in place to identify evaluate and manage
the significant risks faced by the group key elements of the group’s internal control procedures include 
• well established budget and reporting functions that are regularly monitored throughout the year by the board
• clear lines of authority between the management of the subsidiary companies and the board
• well established procedures by which the management of the subsidiaries submit proposals for major capital
expenditure for approval by the board
• an ongoing process of reviewing risks faced by the group together with clear board responsibility for implementing
measures to manage and where possible reduce these risks 
the board has also reviewed the operation and effectiveness of the group’s system of internal financial control for the financial
year and the period up to the date of approval of the financial statements the systems that the company has in place for risk
management and financial control are designed to manage rather than eliminate the risk of failure to achieve business objectives
and can only provide reasonable not absolute assurance against material misstatement or loss the board has considered the
need for an internal audit function but has decided that it is not justified in view of the current size of the company a decision
which the audit committee reviews annually 
going concern
after making enquiries the directors have a reasonable expectation that the group has adequate resources to continue in
operation for the foreseeable future for this reason they continue to adopt the going concern basis in preparing the financial
statements  page 22
directors’ remuneration report
section 1 information not subject to audit 
directors’ remuneration
in accordance with section 241a of the companies act 1985 the board presents the directors’ remuneration report for
shareholder approval the report as set out below will be put to shareholders as a separate resolution for approval at the agm
and the chairman of the remuneration committee mr n r l fry will be available at the meeting to answer any questions on
the content of this report
remuneration committee
in accordance with provision b21 of the code the committee’s terms of reference are based on the guidance published by
the institute of chartered secretaries  administrators and these are available on request from the company secretary the
committee has the responsibility for making recommendations to the board on the company’s general policy on remuneration
of senior management including specific packages for individual directors it carries out the policy on behalf of the board the
members of the committee are listed on page 20 none of the members of the committee other than as shareholders has any
personal financial interest in the matters to be decided potential conflicts of interest arising from crossdirectorships nor any
day to day involvement in running the business in carrying out its responsibilities the committee has had full regard to the
requirements of the directors remuneration regulations 2002 the committee met on three occasions during the year
meetings of the committee are normally attended by the chairman and the chief executive as appropriate except where their
own remuneration is discussed the committee consults the chairman of the company and the chief executive and takes
professional advice from remuneration consultants haygroup when necessary 
remuneration policy
the policy of the board is to provide terms of employment and remuneration packages for executive directors designed to
encourage the enhancement of the company’s performance and to ensure that remuneration packages offered are competitive
and will attract motivate and retain executive directors of the right calibre in line with appropriate market rates 
as well as considering conditions in the group as a whole the company positions remuneration by reference to the median paid
for comparable roles amongst companies of similar size
executive directors’ contracts
the company has contracts of service with its executive directors messrs edwards nicholson pochin and shaw these
contracts provide for twelve months notice of termination
nonexecutive directors’ contracts
the company has no formal contracts of service with non–executive directors mrs s e nicholson has not been appointed
for a specific term of office mr n r l fry and mr m chadwick were both appointed on 22 september 2005 for a three year
fixed term with provision for twelve months notice of termination mr r fildes was appointed on 7 august 2006 for a three year
fixed term with provision for twelve months notice of termination
policy on executive directors’ remuneration
the main elements of executive directors’ remuneration are basic annual salary annual car allowance annual bonus payments
and share options awarded under the scheme approved by shareholders in 2001 and are detailed below
basic salary
the committee reviews the basic salary of each executive director in july of each year the committee reaches its decision on
remuneration of executive directors based on three principal factors
• level of responsibility
• external market competitiveness
• individual performance in the role
bonus
annual bonus payments are linked to group divisional and personal performance against predetermined targets approved by
the committee section 1 information not subject to audit continued
share options
under the terms of the share option scheme messrs edwards nicholson pochin and shaw are eligible for options to be
granted there is no longterm incentive plan in operation the committee has responsibility for supervising the scheme and the
grant of share options under its terms
other benefits
executive directors are paid an annual car allowance and appropriate reimbursement of mileage undertaken on the company’s
business the annual allowance is based upon the notional value of a company car appropriate to the executive director’s
position in the company the principal benefitinkind is the provision of private health insurance cover 
policy on nonexecutive directors’ remuneration
levels of remuneration for nonexecutive directors are set by the board and reflect the time commitment and responsibilities of
the role nonexecutive directors do not have a contract of service are not eligible to join the company’s pension scheme and
cannot participate in the company’s share option scheme however they are reimbursed their reasonable expenses for
attendance at meetings
details of the emoluments of each director and nonexecutive director are set out on page 25
directors’ pension arrangements
pension benefits for certain executive directors are derived from contributions paid by the company and those directors at
rates advised by the actuary to the pochin’s  associated companies retirement benefits plan which is a defined benefit
scheme no element of remuneration other than basic salary is pensionable normal retirement date is on reaching age 65 with
a pension 23 of final pensionable salary subject to completion of 25 years pensionable service the defined benefit scheme
was closed to new members with effect from 1 january 2002 and from that date new employees are eligible to become
members of a defined contribution scheme within the pochin’s  associated companies retirement benefits plan the pension
benefits for mr j edwards are derived from contributions paid by him and the company at predetermined rates under the
defined contribution scheme 
performance graph
the following graph shows the company’s performance measured
by the total shareholder return tsr compared with the
performance of the ftse small cap index this index was chosen as
the most suitable comparator group as it represents smaller
capitalised companies tsr is defined as the percentage change
over the period in market price of shares assuming the reinvestment
of income and funding of liabilities of the theoretical holding
page 23
directors’ remuneration report
50
100
150
200
250
300
2003 2004 2005 2006 2007 2008
pochins plc
ftse small cap index
pochin’s plc tsr vs ftse small cap index tsr
source thomson datastream page 24
directors’ remuneration report
section 1 information not subject to audit continued
forward looking policy statement
bonus
messrs edwards nicholson pochin and shaw receive certain elements of remuneration that are performance related all are
eligible for annual bonus payments that are linked to group divisional and individual performance against predetermined criteria
with a maximum award capped at 50 of salary each year the remuneration committee determine the appropriate level of
bonus for each executive director which is dependent on both the above performance criteria and their wider contribution to
the group
share options
messrs edwards nicholson pochin and shaw are eligible for the award of share options under the share option scheme the
exercise of any such option is made conditional upon the satisfaction of performance conditions set by the board acting
through the remuneration committee at the date of grant under the scheme rules the remuneration committee has the power
to set appropriate performance criteria on an annual basis such that significant and sustained improvement in the underlying
financial performance of the group or any of its subsidiary companies is achieved the remuneration committee also has the
power to review amend or revise these criteria having regard to market conditions prevailing at that time to ensure these
targets or conditions are appropriate
contracts of service
it is the company’s policy to have in place contracts of service with its executive directors under the terms of these contracts
the executives’ employment with the group continues subject to the terms of the contract until determined by either party
giving to the other not less than 12 months written notice if notice should be served by either party the group has the right to
terminate the executive’s employment by paying in lieu of notice on the following terms 
• payment will be the basic salary only of the director and no account shall be taken of any bonus pension contributions
or any benefits in kind and
• payment shall be subject to deductions for income tax and national insurance contributions and
• the director does not have an automatic right to payment in lieu of notice
general policy
the remuneration committee has a policy of keeping all of the above issues under annual review to ensure these policies and
provisions are appropriate page 25
directors’ remuneration report
section 2 information subject to audit
summary of director’s emoluments
the remuneration paid to each director for the year to 31 may 2008 is as follows
benefitsin compensation
kind and for loss                total remuneration
salary bonus allowances of office 2008 2007
£’000 £’000 £’000 £’000 £’000 £’000
r g buck 
to 31 october 2007 35 – 10 146 191 119
m chadwick 15 – 1 – 16 17
j edwards 109 7 26 – 142 149
r fildes 77 – – – 77 40
n r l fry 33 – – – 33 32
l r murray 
to 31 may 2008 139 – 28 230 397 179
j w p  nicholson 100 7 24 – 131 133
s e nicholson 15 – 1 – 16 31
d r r pochin 89 626 – 121 121
d shaw 178 10 28 – 216 240
w g underwood
to 3 november 2006 – ––– – 12
j h woodcock
to 31 december 2006 – – –– – 157
total 790 30 144 376 1340 1230
total 2007 885 158 187 – 1230
summary of pension benefits
retirement benefits accruing to directors under the group’s defined benefit scheme are as set out below details of the scheme
are set out in note 7 on page 49
transfer value of
transfer transfer change in members’ the increase in
value of value of transfer contribution accrued pension
accrued accrued value of in the year net of members
pension at pension at accrued towards contribution 
31 may 2007 31 may 2008 benefits pension and inflation
£’000 £’000 £’000 £’000 £’000 
r g buck to 31 october 2007 360 356 4 2 4
l r murray to 31 may 2008 1102 1210 108 10 28
j w p  nicholson 317 330 13 7 5
d r r pochin 308 304 4 6 4
d shaw 1717 1955 238 12 –
the transfer values disclosed above do not represent a sum paid or payable to the individual director instead they represent
a potential liability of the pochin’s  associated companies retirement benefits plan
r g buck and l r murray remain members of the scheme but no further contributions will be made page 26
directors’ remuneration report
section 2 information subject to audit continued
increase in
members’ accrued pension accrued accrued
age at contribution in the year pension pension
31 may in the year at 31 may at 31 may at 31 may
2008 towards pension 2008 2008 2007
£’000 £’000 pa £’000 pa £’000 pa
r g buck to 31 october 2007 46 2 1 36 35
l r murray to 31 may 2008 55 10 6 87 81
j w p  nicholson 43 7 3 40 37
d r r pochin 43 6 3 36 33
d shaw 57 12 3 121 118
 includes benefits transferred in from previous pension arrangements
share options
the group intends to grant options periodically to key executives so as to provide an incentive to perform strongly over an
extended period and so align their interests with those of shareholders under the terms of the pochin’s plc executive share
option scheme options granted can only be exercisable between three and ten years of the date of grant and only then if the
conditions for exercise set by the remuneration committee have been met options have been granted to eligible directors of
the company as follows
directors’ share options
granted on granted on granted on granted on held at granted on held at
12 december 16 november 19 december 2 november 1 june 26 october 31 may
2003 2004 2005 2006 2007 2007 2008
option price option price  option price option price option price
197p 200p 372p 330p 309p
r g buck 
to 31 october 2007 – 5000 4000 5000 14000 – 14000
j edwards – – 10000 5000 15000 5000 20000
l r murray
to 31 may 2008 9000 10000 6000 5000 30000 5000 35000
j w p  nicholson 9000 5000 4000 5000 23000 5000 28000
d r r pochin 4500 9500 4000 5000 23000 5000 28000
d shaw 9000 17000 7500 10000 43500 10000 53500
notes
1 all options are granted for nil consideration on grant and are in respect of 25p ordinary shares of pochin’s plc
2 no options lapsed or were waived in the year
3 details of share price movements in the year are listed on page 81 shareholder information
4 no options were exercised in the year
5 all options granted in 2002 have been exercised
6 options granted to r g buck in 2003 have been exercised
7 r g buck and l r murray remain members of the scheme but no further grants will be made
signed on behalf of the board
nicholas fry
chairman of the remuneration committee
22 september 2008 page 27
directors’ report
the directors have pleasure in presenting their annual report and the audited financial statements for the year ended 31 may
2008
principal activities of the group and business review
the group operates within the united kingdom and continues to be principally engaged in building and civil engineering
contracting property development and letting house building and specialist plant hire the directors have classified these
activities into four separate segments contracting property residential and construction services a review of existing activities
and future developments is contained in the chairman’s statement and the chief executive’s report
the information that fulfils the requirements of the business review can be found in the chief executive’s report the financial
review corporate social responsibility corporate governance and in the notes to the financial statements these include the
key performance indicators kpis of the group and the risks facing the group the group monitors the kpis in order to generate
value for shareholders and to improve business performance they include earnings per share net assets per share the
number and price of contracts forward sales utilisation landbank average selling price and customer satisfaction
directors
the board of directors is shown on page 16
results and dividends
the results for the year are set out in the consolidated income statement on page 33
an interim dividend of 30p 2007 30p per share amounting to £624000 2007 £624000 was paid on 7 april 2008 7 april
2007 the directors recommend a final dividend of 30p 2007 625p per share amounting to £624000 2007 £1300000
the total dividend is 60p per share 2007 925p which amounts to £1248000 2007 £1924000
donations
charitable donations during the year amounted to £20000 2007 £24000
acquisition of the company’s own shares
at the agm held on 26 october 2007 the company passed a resolution giving the company the authority to enter into
contracts for the purchase of not more than 3119980 ordinary shares the company has not entered into any contracts during
the year to purchase its own shares and has not entered into any to the date of this report the authority expires at the
conclusion of this year’s agm and the directors will seek to renew the authority for a further year at that meeting shares
purchased in accordance with the authority will either be cancelled or held in treasury to help the company meet its obligations
under the employee share trust
employee share trust
the company established an employee share trust the trust following approval by the shareholders at the agm held on 16
november 2001 at 31 may 2008 the trust owned 445000 ordinary shares options of 60254 were granted during the year
under the approved scheme and options of 38246 were granted during the year under the unapproved scheme a total of
4500 options were exercised during the year leaving a total of 399000 options in issue  
transactions involving directors
no contracts significant to the groups business subsisted during the year in which any director of the company had a material
interest
  page 28
directors’ report
directors’ interests
as at the beginning and the end of the year respectively the directors of the company who served throughout the year had the
following interests in the ordinary share capital of the company
number of 25p ordinary shares held at
31 may 2008 1 june 2007
note beneficial nonbeneficial beneficial nonbeneficial
interests interests interests interests
m chadwick  3 14000 4775164 1972780 2591384
j edwards  2 –– ––
r fildes 6500 – 6500 –
n r l fry  –– ––
j w p  nicholson  1 2  4 651945 8700 494545 8700
s e nicholson  1 123600 – 881060 –
d r r pochin  1  2 2250 – 6000 –
d shaw  2 21500 – 21500 –  
notes
1 in addition to the above referred personal holdings mrs s e nicholson mr j w p nicholson and mr d r r pochin
are also deemed interested in concert party holdings as referred in the explanatory notes to the substantial shareholdings
see page 29
2 mr d shaw mr j edwards mr j w p nicholson and mr d r r pochin are all eligible for the executive share option
scheme in addition to the holdings stated above as at 31 may 2008 each hold options in ordinary shares in the company
see page 26
3 included in mr m chadwick’s nonbeneficial holding in the company is the holding of quiros limited as reported under
substantial shareholdings see page 29
4 included in mr j w p nicholson’s beneficial holding in the company is the holding of his children under the darling 8
discretionary settlement of which he is a trustee the darling 8 discretionary settlement holds 157400 ordinary shares in
the company  
5 at the date of his resignation on 31 october 2007 mr r g buck held 24721 ordinary shares in the company
6 at the date of his resignation on 31 may 2008 mr l r murray held 14500 ordinary shares in the company
save as noted above the company has not been advised of any changes in the directors’ interests between 31 may 2008 and
the date of this report
statement of directors’ responsibilities
the directors are responsible for preparing the annual report and the financial statements in accordance with applicable law
and regulations company law in the united kingdom requires directors to prepare financial statements for each financial year
in accordance with international financial reporting standards ifrs as adopted by the eu 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 the year in preparing those financial
statements the directors confirm that they have
• selected appropriate accounting policies and then applied them consistently
• made judgments and estimates that are reasonable and prudent
• followed applicable ifrs subject to any material departures disclosed and explained in the financial statements 
• prepared the financial statements on the going concern basis
the directors are responsible for maintaining proper accounting records for safeguarding the assets of the group and for taking
reasonable steps for the prevention and detection of fraud and other irregularities the directors are also responsible for the
preparation of the directors’ report and other information in the annual report in so far as the directors are aware there is no
relevant audit information of which the company’s auditors are unaware and the directors have taken all steps that they ought
to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of this
information  page 29
directors’ report
to the best of the directors’ knowledge
• the financial statements prepared in accordance with the applicable set of accounting standards give a true and fair view
of the assets liabilities financial position and profit or loss of the company and the undertakings included in the
consolidation taken as a whole and
• the management report includes a fair review of the development and performance of the business and the position of the
company and the undertaking included in the consolidation taken as a whole together with a description of the principal
risks and uncertainties that they face
the directors are responsible for the maintenance and integrity of the corporate and financial information included on the
company’s website legislation in the united kingdom governing the preparation and dissemination of financial statements may
differ from legislation in other jurisdictions
directors’ indemnity
the company has purchased and maintained throughout the year directors’ and officers’ liability insurance in respect of its
directors the directors also have the benefit of the indemnity provision contained in the articles against liabilities incurred by
them in the course of carrying out their duties or the exercise of their powers
substantial shareholdings
the directors have been advised of the following individual interests and groups of interests held by persons acting together
and excluding directors’ shareholdings set out above which at 31 may 2008 exceed 3 of the ordinary share capital of the
company
number of 25p ordinary shares held at 31 may 2008
beneficial nonbeneficial
note interests interests 
mr i c n toole and
key trust company limited 1  3 1542020 – 74
kettley international limited 2  3 5478499 – 263
mrs r e pochin 4 503690 274700 37
quiros limited 4768364 – 229
notes
1 mrs s e nicholson nonexecutive director and mr j w p  nicholson executive director are potential beneficiaries under
a family trust “the cwt pochin 1974 trust” the trustees of the cwt pochin 1974 trust hold 1542020 ordinary shares
representing 74 of the company’s issued shares in the company these shares are held in the name of mr i c n toole
and key trust company
2 mrs s e nicholson nonexecutive director and mr j w p  nicholson executive director are potential beneficiaries under
a further family trust “the f heywood 1991 settlement” kettley international limited holds 5478499 ordinary shares
representing 263 of the issued shares in the company kettley international limited is owned by the f heywood 1991
settlement  
3 the families of mrs s e nicholson nonexecutive director mr j w p nicholson executive director together with the
cwt pochin 1974 trust and the f heywood 1991 settlement are deemed by the panel on takeovers and mergers to
form the cedric pochin concert party and at the date of this report this concert party holds 421 of the issued shares in
the company
4 the families of mr d r r pochin executive director mrs r e pochin and mr n j pochin former director are deemed
by the panel on takeovers and mergers to form the arthur pochin concert party and at the date of this report this concert
party holds 115 of the issued shares in the company
the have been no other changes in the above interests to the date of this report
  page 30
directors’ report
employees
information about the group and factors affecting its performance is provided to employees through the house magazine
pochin post and via pochinet the group’s corporate intranet in addition arrangements for consulting and involving employees
on matters affecting their interests at work and informing them of the performance of their employing business and the group
are developed in ways appropriate to each business a variety of approaches are adopted aimed at encouraging the
involvement of employees in effective communication and consultation and the contribution of productive ideas at all levels
this includes the formation of a communications group in addition to the several steering committees established to promote
and implement group strategy through improvements and innovation in working practices
the establishment and maintenance of safe working practices are of the greatest importance to the group and special training
in health and safety is provided for employees the group has produced health and safety policies to cover all aspects of its
activities and the executive management and subsidiary directors monitor adherence to these policies regular reports are fed
back to the board who have ultimate responsibility for health and safety throughout the group a copy of the group health and
safety policies can be obtained from the company secretary or can be viewed electronically on the company web site
the group’s employment policies do not discriminate between employees or potential employees on the grounds of gender
age ethnic origin nationality religious belief race or sexual orientation it is group policy to give full and fair consideration to
the employment of disabled persons where they have the necessary abilities and skills for the position and wherever possible
the group continues to employ persons who become disabled whilst they are with the group the group ensures that training
career development and promotion opportunities for disabled persons are as far as possible identical to those of other
employees who are not disabled
further details of important issues relating to our employees are set out on page 18
creditor payment policy
it is the policy of the company that each of the businesses in the group should agree appropriate terms and conditions for its
transactions with suppliers and subcontractors by means ranging from standard written terms to individually negotiated
contracts and that payment should be made in accordance with those terms and conditions provided that the supplier has
also complied with them at 31 may 2008 the group had 30 days purchases 2007 32 days outstanding in trade creditors
additional information for shareholders
following implementation of the eu transparency directive in the uk the halfyearly financial results and interim management
report need no longer be sent to shareholders it is therefore proposed that the interim report for the half year ending 30
november 2008 and thereafter will be published on the company’s website in addition to the environmental benefit associated
with the reduced use of paper this proposal will also save printing and mailing costs
following implementation of the eu takeover directive in the uk the following description provides the required relevant
information for shareholders where not already provided elsewhere in the financial statements this description summarises
certain provisions of the current articles and applicable english law concerning companies the companies act 1985 as
amended and the companies act 2006 together the “companies acts” this is a summary only and the relevant provisions
of the companies acts or the articles should be consulted if further information is required
share capital
the company’s issued share capital comprises 20800000 ordinary shares of 25p each as at 31 may 2008 the ordinary
shares represented 100 of the issued share capital of the company  
rights and obligations attaching to the shares
subject to the companies acts and other shareholder rights any share may be issued with such rights and restrictions as the
company may by special resolution decide or if no resolution has been passed or so far as the resolution does not make
specific provision as the board may decide 
voting
under and subject to the provisions of the articles and subject to any special rights or restrictions as to voting attached to
shares on a show of hands every member present in person shall have one vote and on a poll every member who is present
in person or by proxy shall have one vote for every share of which he is the holder members are entitled to appoint a proxy to
exercise all or any of their rights to attend speak and vote on their behalf at a general meeting page 31
directors’ report
restrictions on voting
a member shall not be entitled to vote at any general meeting in respect of any shares held by him unless all calls and other
sums presently payable by him in respect of that share have been paid none of the shares in issue contain any special control
rights full details of the deadlines for exercising voting rights in respect of the resolutions to be considered at the agm to be
held on 24 october 2008 are set out in the notice of agm
dividends and distributions
the company may by ordinary resolution declare a dividend to be paid to the members but no dividend shall exceed the
amount recommended by the board in the opinion of the board interim dividends may be paid whenever the financial position
of the company justifies it
winding up
under the articles if the company is in liquidation the liquidator may with the sanction of an extraordinary resolution of the
company and any other authority required by statute
• divide among the members in specie any part of the assets of the company or 
• vest any part of the assets in trustees upon such trusts for the benefit of members or any of them as the resolution shall
provide
transfer of shares
all the ordinary shares rank equally and subject to the restrictions in the articles any member may transfer all or any of his
shares by an instrument of transfer in the usual form or in any other form which the board may approve the board may in its
absolute discretion and without giving any reason refuse to register any transfer of a share not fully paid up or any transfer of
a share on which the company has a lien 
repurchase of shares
subject to the provisions of the companies acts the company may purchase its shares
amendment of articles of association
the articles may be amended by a special resolution at a general meeting
appointment and replacement of directors
the directors shall not unless otherwise determined by an ordinary resolution of the company be less than three nor more than
ten in number directors may be appointed by the board for such period subject to statute and on such terms as it may decide
and may revoke or terminate any such appointment at each agm any director selected to retire by rotation shall retire from
office the company may by extraordinary resolution of which special notice has been given in accordance with the companies
acts remove any director before his period of office has expired notwithstanding anything in the articles or in any agreement
between him and the company the office of a director shall also be vacated if
• he is prohibited by law from being a director or
• he becomes bankrupt or makes any agreement or composition with his creditors or
• he becomes of unsound mind or
• for more than six months he is absent without special leave of absence from the board from meetings of the board held
during that period and the board resolves that his office be vacated or
• he serves on the company notice of his wish to resign
powers of the directors
the business of the company shall be managed by the board which may exercise all the powers of the company subject to
statute the articles and any ordinary resolution of the company the board may exercise all the powers of the company to
borrow money and to mortgage or charge all or any part of its undertaking property and assets and uncalled capital and to
issue debentures and other securities subject to the provisions of the articles
significant agreements
the directors acknowledge that a number of contracts could alter in the event of a change of control none is considered to
be significant in terms of their potential impact on the group in this event
  page 32
directors’ report
proposed changes to the company’s articles of association
as indicated in last year’s annual report and accounts a review of the articles has been undertaken to reflect the introduction
of further provisions of the companies act 2006 “the act” the act sets out directors’ general duties which largely codify the
existing law but with some changes under the act from 1 october 2008 a director must avoid a situation where he has or
can have a direct or indirect interest that conflicts or possibly may conflict with the company’s interests the requirement is
very broad and could apply for example if a director becomes a director of another company or a trustee of another
organisation the act allows directors of public companies to authorise conflicts and potential conflicts where appropriate
where the articles of association contain a provision to this effect the act also allows the articles of association to contain other
provisions for dealing with directors’ conflicts of interest to avoid a breach of duty it is therefore proposed to amend the articles
to give the directors authority to approve such situations and to include other provisions to allow conflicts of interest to be dealt
with in a similar way to the current position it is also proposed to amend the articles to contain provisions relating to confidential
information attendance at board meetings and availability of board papers to protect the director being in breach of duty if a
conflict of interest or potential conflict of interest arises these provisions will only apply where the position giving rise to a
potential conflict has previously been authorised by the directors
the consent of shareholders is required to any changes in the articles and accordingly there is proposed as special business
in the notice of agm the text of a special resolution which is being proposed to amend the articles to this effect
there are safeguards which will apply when the directors decide whether to authorise a conflict or potential conflict first only
directors who have no interest in the matter being considered will be able to take the relevant decision and secondly in taking
the decision the directors must act in a way they consider in good faith will be most likely to promote the company’s success
the directors will be able to impose limits or conditions when giving authorisation if they think this is appropriate
the notice of agm containing details of this proposed special resolution is an important document and any shareholder who
is in any doubt as to what action to take in respect of it should consult appropriate independent advisors in the event that
shareholders have sold or transferred shares in the capital of the company they should pass the notice of agm to the person
through whom the sale or transfer was effected for transmission to the purchaser or transferee
information rights
beneficial owners of shares who have been nominated by the registered holder of those shares to receive information rights
under the act are required to direct all communication to the registered holder of their shares rather than to the company’s
registrars capita registrars or to the company directly
auditors
grant thornton offer themselves for reappointment as independent auditors of the company and resolutions concerning their
reappointment and fixing of their remuneration will be proposed at the agm
on behalf of the board
david shaw john edwards  
director                                                     director             
22 september 2008 page 33
consolidated income statement
for the year ended 31 may 2008
2008 2007
notes £’000 £’000
continuing operations
revenue 1  115273 116554 
cost of sales 106715 102219
gross profit 8558 14335 
operating expenses 2  16751 10621
other operating income 3  4254 3839 
gains on revaluation of investment properties 2548 707
operating lossprofit 1391 8260
share of profit after taxation in joint ventures 1863 45
share of profit after taxation in associates 437 241 
finance income 4 3400 2801 
finance cost 4  2533 2212
profit before taxation 1  5  1776 9135
taxation 8  859 2270
profit for the year from continuing operations 2635 6865 
discontinued operations
loss for the year from discontinued operations 1 – 59
profit for the year 2635 6806 
attributable to
equity holders of the company 29 2603 6775 
minority interest 32 31
profit for the year 2635 6806 
earnings per share basic 11 128p 334p 
earnings per share diluted 11 127p 332p 
earnings per share basic from continuing activities 11 128p 336p 
earnings per share diluted from continuing activities 11  127p 334p 
dividend proposed for the year 10 30p 625p 
  page 34
statements of recognised income and expense
for the year ended 31 may 2008 group company
2008 2007 2008 2007
£’000 £’000 £’000 £’000
actuarial gainslosses on defined benefit pension scheme 1189 1028  603
deferred taxation on pension scheme surplusdeficit 355 310  181
net incomeexpense recognised directly in equity 834 718  422
profitloss for the year 2635 6806 3368 287
total gainslosses recognised since last period 3469 7524 3368 135
attributable to
equity holders of the company 3437 7493 3368 135
minority interest 32 31 – –
3469 7524 3368 135 page 35
consolidated balance sheet
as at 31 may 2008
2008 2007
notes £’000 £’000
non current assets
property plant and equipment 13 3613 4400
investment properties 13 46167 41090
investments 14
joint ventures 19946 11414
associates 3286 2037
other 2157 2157
retirement benefit asset 7 861 –
total non current assets 76030 61098
current assets
inventories 15 32177 35638
trade and other receivables 17 23542 19030
cash and cash equivalents 18 3988 223
financial derivatives 515 253
corporation tax recoverable 35 55
total current assets 60257 55199
current liabilities
trade and other payables 19 29296 24202
bank loans 20 10534 10618
bank overdrafts 20 23918 11409
total current liabilities 63748 46229
net current liabilitiesassets 3491 8970
non current liabilities
bank loans 21 12411 9207
retirement benefit obligation 7 – 577
deferred tax liabilities 24 1374 2413
provisions 25 496 1632
other payables 26 5204 4757
total non current liabilities 19485 18586
net assets 53054  51482
equity
share capital 27  29 5200 5200
own shares 29 954 954
revaluation reserve 29 178 240
retained earnings 29 48419 46785
total shareholders’ equity 29 52843 51271
minority interest 29 211 211
total equity 53054 51482
on behalf of the board
david shaw director    john edwards director    
22 september 2008 page 36
company balance sheet
as at 31 may 2008
2008 2007
notes £’000 £’000
non current assets
property plant and equipment 13 1871 1943
investment properties 13 17951 18472
investments 14 30480 26174
total non current assets 50302  46589
current assets
trade and other receivables 17 3532 2086
cash and cash equivalents 18 3695 68
corporation tax recoverable 1210 1720
total current assets 8437 3874
current liabilities
trade and other payables 19 19390 20251
bank loans 20 9942 10357
bank overdrafts 20 16300 148
total current liabilities 45632 30756
net current liabilities 37195  26882
non current liabilities
bank loans 21 – 179
retirement benefit obligation 21 – 84
deferred tax liabilities 24 475 1575
provisions 25 496 500
total non current liabilities 971 2338
net assets 12136  17369
equity
share capital 27 30 5200 5200
retained earnings 30 6936 12169
total equity 30 12136  17369
on behalf of the board
david shaw director    john edwards director    
22 september 2008 page 37
consolidated cash flow statement
for the year ended 31 may 2008
2008 2008 2007 2007
notes £’000 £’000 £’000 £’000
net cash from operating activities
profit for the year 2635 6806 
loss for the year from discontinued operations  59
income tax 859 2270
finance income 3400 2801
finance cost 2533 2212
share of results of joint ventures and associates 2300 286
depreciation charge 684 908 
impairment of intangible assets – 323
charge in respect of share based payments 46 41 
profit on sale of property plant and equipment 178 243
gains on revaluation of investment properties 2548 707
provision against investments in joint ventures 4632 1500 
income from joint ventures and associates 259 246 
operating profit before changes in working capital 1504 10328 
decreaseincrease in inventories 3461 9423
increasedecrease in receivables 4774 2065
increase in payables 4612 2714
4803 5684
interest paid 1249 1062
income taxes paid 516 2414
net cash from operating activities 3038 2208
investing activities
interest received 1630 1121 
purchase of investment properties 2529 –
purchase of property plant and equipment 261 1880
proceeds from sale of property plant and equipment 542 728 
receipt of government grants – 150 
increase in interest in joint ventures and associates 12372 3234
net cash used in investing activities 12990 3115
financing activities
proceeds from new loans 13421 10000 
repayment of loans 10302 526
dividends paid 1911 1872
net cash from financing activities 1208 7602 
net decreaseincrease in cash and cash equivalents 8744 6695
cash and cash equivalents at beginning of year 11186 17881
cash and cash equivalents at end of year 31 19930 11186 page 38
company cash flow statement
for the year ended 31 may 2008
2008 2008 2007 2007
notes £’000 £’000 £’000 £’000
net cash from operating activities
lossprofit for the year 3368 287
loss for the year from discontinued activities  500
income tax 1717 404
finance income 368 183
finance cost 1647 898
depreciation charge 72 73
profit on sale of property plant and equipment 25 233
charge in respect of share based payments 46 12
lossesgains on revaluation of investment properties 521 143
provision against investments in joint ventures 7500 1500
provision against investments in subsidiary undertakings 187 –
operating profit before changes in working capital 4495 2307 
increasedecrease in receivables 1446 3198
decrease in payables 948 2201
2101 3304 
interest paid 1647 898
income taxes receivedpaid 1126 261
net cash from operating activities 1580 2145 
investing activities
interest received 368 183
decrease in loans to group undertakings 161 4863
proceeds from sale of property plant and equipment 25 233
increase in interest in joint ventures and associates 12154 3234
net cash used infrom investing activities 11600 2045 
financing activities
proceeds from new loans 9635 10000
repayment of loans 10229 357
dividends paid 1911 1872
net cash used infrom financing activities 2505 7771
net decreaseincrease in cash and cash equivalents 12525 11961 
cash and cash equivalents at beginning of year 80 12041
cash and cash equivalents at end of year 31 12605 80  page 39
accounting policies
basis of accounting
the principal accounting policies adopted in the preparation of these financial statements are set out below these policies have
been applied consistently in dealing with items that are considered material in relation to the group’s financial statements ifrs 7
is a new accounting standard that has been adopted in the year the impact of this standard has been to increase the disclosure
in relation to financial instruments
basis of preparation
these accounts have been prepared in accordance with international financial reporting standards as adopted by the european
union and international financial reporting standards as issued by the international accounting standards board and with those
parts of the companies act 1985 applicable to companies reporting under ifrs the accounts have been prepared under the
historical cost convention as modified by the revaluation of land and buildings the revaluation of certain financial assets and
liabilities share based payments and the pension surplus
the preparation of financial statements in conformity with generally accepted accounting principles requires the use of
estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period although these estimates are based on
managements best knowledge of the amount event or actions actual results ultimately may differ from those estimates
i assessment of stage of completion of contracts – in assessing the allocation of revenues and costs to accounting periods
and the consequential assets and liabilities the group reviews the stage of completion as assessed by the contract surveyor
and the forecast outturn of the project
ii valuations of investment properties are based on current market conditions tenant occupancy and quality of leases
impairments in relation to investment property are considered when assessing the valuation
iii impairment reviews are completed based on value in use calculations determined using anticipated future cash flows and
discount rates in assessing potential impairments required the group considers the forecast outcome of projects
iv inflation and mortality assumptions discount rates rates of return on assets and rates of salary and pension increases
reflected in the ias 19 pension charge
v assumptions on the expected life of share options volatility of shares risk free yield to maturity and expected dividend yield
on shares used in the ifrs 2 fair value of share options
the following new standards and interpretations are those which are in issue but not yet effective and have not been
adopted early by the group
• ias 1 presentation of financial statements revised 2007 – effective 1 january 2009
• ias 23 borrowing costs revised 2007  effective 1 january 2009
• ias 27 consolidated and separate financial statements revised 2008  effective 1 january 2009
• amendment to ifrs 2 and ias 27  effective 1 january 2009
• ifrs 8 operating segments  effective 1 january 2009
there is not expected to be a significant impact on the group financial statements as a result of the above standards
becoming effective
basis of consolidation
the group financial statements include the accounts of pochin’ s plc and subsidiaries controlled by the group control exists where
the company has the power directly or indirectly to govern the financial and operating policies of an entity so as to obtain benefits
from its activities in assessing control potential voting rights that are presently exercisable are taken into account the financial
statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the
date that control ceases acquisitions of subsidiaries are dealt with by the purchase method the purchase method involves the
recognition at fair value of all identifiable assets and liabilities including contingent liabilities of the subsidiary at the acquisition date
regardless of whether or not they were recorded in the financial statements of the subsidiary prior to acquisition
business combinations completed prior to date of transition to ifrs
the group has elected not to apply ifrs 3 business combinations retrospectively to business combinations prior to date of
transition which was at 1 june 2004
accordingly the classification of the combination acquisition reserve acquisition or merger remains unchanged from that used
under uk gaap asset and liabilities are recognised at date of transition if they would be recognised under ifrs and are
measured using their uk gaap carrying amount immediately postacquisition as deemed cost under ifrs unless ifrs
requires fair value measurement deferred tax and minority interest are adjusted for the impact of any consequential
adjustments after taking advantage of the transitional provisions
the transitional provisions used for past business combinations apply equally to past acquisitions of interests in associates and
joint ventures page 40
accounting policies
joint ventures and associates
entities whose economic activities are controlled jointly by the group and by other ventures independent of the group are
accounted for using the equity method
joint ventures are contractual arrangements whereby the group undertakes an economic activity which is subject to joint
control with third parties the group’s interest in joint ventures are accounted for using the equity method as des below for
associates
associates are those entities over which the group has significant influence but which are neither subsidiaries nor interests in
joint ventures investments in associates are recognised initially at cost and subsequently accounted for using the equity
method acquired investments in associates are also subject to purchase method accounting however any goodwill or fair
value adjustment attributable to the share in the associate is included in the amount recognised as investment in associates
all subsequent changes to the share of interest in the equity of the associate are recognised in the group’s carrying amount of
the investment changes resulting from the profit or loss generated by the associate are reported in “share of profits of
associates” in the consolidated income statement and therefore affect net results of the group these changes include
subsequent depreciation amortisation and impairment of the fair value adjustments of assets and liabilities
items that have been recognised directly in the associate’s equity are recognised in the consolidated equity of the group
however when the group’s share of losses in an associate equals or exceeds its interest in the associate including any
unsecured receivables the group does not recognise further losses unless it has incurred obligations or made payments on
behalf of the associate if the associate subsequently reports profits the investor resumes recognising its share of those profits
only after its share of the profits equals the share of losses not recognised
unrealised gains on transactions between the group and its associates are eliminated to the extent of the group’s interest in the
associates unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset
transferred amounts reported in the financial statements of associates have been adjusted where necessary to ensure
consistency with the accounting policies adopted by the group
investments
the parent company’s investment in its subsidiary undertakings associates and joint ventures is recorded at cost
revenue
revenue is measured at the fair value of the consideration received or receivable in respect of construction work executed during
the year see below construction contracts development revenue and other revenue and services as supplied but excludes value
added tax development revenue is recognised on completion of contracts rental income excluding value added tax is
recognised on an accruals basis
goodwill
goodwill representing the excess of the cost of acquisition over the fair value of the group’s share of the identifiable net assets
acquired is capitalised and reviewed annually for impairment goodwill is carried at cost less accumulated impairment losses
negative goodwill is recognised immediately after the acquisition in the income statement
goodwill written off to reserves prior to date of transition to ifrs remains in reserves there is no reinstatement of goodwill
that was amortised prior to transition to ifrs goodwill previously written off to reserves is not written back to profit or loss on
subsequent disposal
intangible assets
assets acquired as part of a business combination
in accordance with ifrs 3 business combinations an intangible asset acquired in a business combination is deemed to have
a cost to the group of its fair value at the acquisition date the fair value of the intangible asset reflects market expectations
about the probability that the future economic benefits embodied in the asset will flow to the group where an intangible asset
might be separable but only together with a related tangible or intangible asset the group of assets is recognised as a single
asset separately from goodwill where the individual fair values of the assets in the group are not reliably measurable where the
individual fair value of the complimentary assets are reliably measurable the group recognises them as a single asset provided
the individual assets have similar useful lives page 41
accounting policies
construction contracts
contract revenue reflects the contract activity during the year and is measured at the fair value of consideration received or
receivable when the outcome can be assessed reliably contract revenue and associated costs are recognised as revenue and
expenses respectively by reference to the stage of completion of the contract activity at the balance sheet date the stage of
completion of the contract at the balance sheet date is assessed by reference to work done measured by qualified quantity
surveyors
where the outcome of a long term contract cannot be estimated reliably revenue is recognised only to the extent of contract
costs incurred that it is probable will be recoverable and contract costs are recognised as an expense in the period in which
they are incurred
in the case of a fixed price contract the outcome of a construction contract is deemed to be estimated reliably when all the
following conditions are satisfied
• total contract revenue can be measured reliably
• it is probable that economic benefits associated with the contract will flow to the group
• both the contract costs to complete the contract and the stage of completion at the balance sheet date can be measured
reliably and 
• the contract costs attributable to the contract can be clearly identified and measured reliably so that actual contract costs
incurred can be compared with prior estimates
in the case of a cost plus contract the outcome of a construction contract can be estimated reliably when it is probable that
the economic benefits associated with the contract will flow to the group and the contract costs attributable to the contract
whether or not specifically reimbursable can be clearly identified and measured reliably
the gross amount due from customers for contract work is presented as an asset for all contracts in progress for which costs
incurred plus recognised profits less recognised losses exceeds progress billings the gross amounts due to customers for
contract work is presented as a liability for all contracts in progress for which progress billings exceed costs incurred plus
recognised profits less losses
full provision is made for losses on all contracts in the year in which the loss is first foreseen
property plant and equipment
property plant and equipment is stated at acquisition cost less subsequent depreciation and impairment losses
depreciation is provided on the original cost of assets in equal instalments over the assets useful economic lives 
the following terms are generally applicable
• freehold buildings over 40 years
• leasehold buildings over 40 years or the term of the lease if less
• plant and machinery over 3 to 8 years
• vehicles over 4 to 5 years
freehold land is not depreciated
material residual value estimates are updated as required
borrowing costs on property plant and equipment under construction are capitalised during the period of construction based
on specific funds borrowed
investment properties
investment properties are revalued annually and are included in the balance sheet at their open market value the surplus or deficit
resulting from either a change in the fair value or the sale of an investment property is recognised immediately in the income
statement page 42
accounting policies
taxation
the tax expense represents the sum of the tax currently payable and deferred tax
the tax currently payable is based on the taxable profit for the year taxable profit differs from net profit as reported in the income
statement because it excludes items of income or expense that are deductible in different periods from those in which they are
recognised in the financial statements or are never taxable or deductible the group’s liability for current tax is calculated using tax
rates and laws that have been enacted or substantively enacted by the balance sheet date
deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using
the balance sheet liability method deferred tax liabilities are generally recognised for all taxable temporary differences and deferred
tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary
differences can be utilised the carrying amount of deferred tax assets is reviewed at each balance sheet date such assets and
liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or other assets and liabilities
other than in a business combination in a transaction that affects neither the taxable profit nor the accounting profit
deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates and
interests in joint ventures except where the group is able to control the reversal of the temporary difference and it is probable that
the temporary difference will not reverse in the foreseeable future
deferred tax is calculated at the tax rates enacted or substantially enacted at the balance sheet date deferred tax is charged or
credited in the income statement except when it relates to items charged or credited directly to equity in which case the deferred
tax is also dealt with in equity
impairment testing of goodwill other intangible assets and property plant and
equipment
for the purpose of assessing impairment assets are grouped at the lowest levels for which there are separately identifiable
cash flows cashgenerating units as a result some assets are tested individually for impairment and some are tested at 
a cashgenerating unit level goodwill is allocated to those cashgenerating units that are expected to benefit from synergies of
the related business combination and represent the lowest level within the group at which management monitors the related
cash flows
goodwill other individual assets or cashgenerating units that include goodwill other intangible assets with an indefinite useful
life and those intangible assets not yet available for use are tested for impairment at least annually all other individual assets
or cashgenerating units are tested for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable
an impairment loss is recognised for the amount by which the asset’s or cash generating unit’s carrying amount exceeds its
recoverable amount the recoverable amount is the higher of fair value reflecting market conditions less costs to sell and value
in use based on an internal discounted cash flow evaluation impairment losses recognised for cashgenerating units to which
goodwill has been allocated are credited initially to the carrying amount of goodwill any remaining impairment loss is charged
pro rata to the other assets in the cash generating unit with the exception of goodwill all assets are subsequently reassessed
for indications that an impairment loss previously recognised may no longer exist
leases
as lessee
leases are classified as finance leases where substantially all the risks and rewards of ownership are transferred to the lessee
finance leases are capitalised at the inception of the lease at the lower of the fair value of the leased asset and the present value
of the minimum lease payments lease payments are apportioned between the liability and finance charge to produce a constant
rate of interest on the finance lease balance outstanding assets capitalised under finance leases are depreciated over the shorter
of the useful life of the asset or the lease term and adjusted for impairment losses the interest expense component is recognised
in the income statement
leases other than finance leases are classified as operating leases payments made under operating leases are recognised as an
expense in the income statement on a straightline basis over the lease term 
as lessor
rentals receivable under operating leases are included in revenue on a straight line basis over the lease term lease incentives are
spread over the term of the lease
  page 43
accounting policies
inventories
inventories are stated at the lower of cost and net realisable value costs of ordinarily interchangeable items are assigned using
the first in first out formula
development work in progress includes development land and buildings and is stated at the lower of cost and net realisable value
borrowing costs are expensed to the income statement except in circumstances where the costs are directly attributable to a
specific development when borrowing costs are carried forward as development work in progress
employee benefits
defined benefit pension scheme
the group operates a pension scheme providing benefits based on final pensionable salary the assets of the scheme are held
separately from those of the group
pension scheme assets are measured using market values pension scheme liabilities are measured using a projected unit method
and discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liability 
the surplus recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit
obligation less the fair value of scheme assets at the balance sheet date
the increase in the present value of the liabilities of the group’s defined benefit pension scheme expected to arise from employee
service in the period is charged to the profit from operations the expected return on the scheme’s assets and the increase during
the period in the present value of the scheme’s liabilities arising from the passage of time are included in finance income or finance
costs respectively actuarial gains and losses are recognised in the consolidated statement of recognised income and expense 
defined contribution pension scheme
the pension costs charged against profits are the contributions payable to the scheme in respect of the accounting period
other employee benefits
other employee obligations such as holiday entitlement are held in accurals at the undiscounted amount that the group expects
to pay as a result of the unused entitlement 
share based payments
for equity settled share options the services received from employees are measured by reference to the fair value of the share
options the fair value is calculated at grant date and recognised in the income statement together with a corresponding increase
in shareholders’ equity on a straight line basis over the vesting period based on an estimate of the number of options that will
eventually vest vesting conditions other than market conditions are not taken into account when estimating the fair value
ifrs 2 has been applied in accordance with ifrs 1 to equity settled share options granted on or after 7 november 2002 and
not vested at 1 january 2005
financial instruments
financial assets
financial assets other than hedging instruments are divided into the following categories loans and receivables financial
assets at fair value through profit or loss and availableforsale financial assets financial assets are assigned to the different
categories by management on initial recognition depending on the purpose for which the investments were acquired 
the designation of financial assets is reevaluated at every reporting date at which a choice of classification or accounting
treatment is available
all financial assets are recognised when the group becomes a party to the contractual provisions of the instrument all financial
assets are initially recognised at fair value plus transaction costs unless they are classified as at fair value through profit or loss
financial assets classified as at fair value through profit or loss are initially recognised at fair value
derecognition of financial assets occurs when the rights to receive cash flows from the investments expire or are transferred
and substantially all of the risks and rewards of ownership have been transferred an assessment for impairment is undertaken
at least at each balance sheet date regular way purchases and sales are accounted for on settlement date 
interest and other cash flows resulting from holding financial assets are recognised in the income statement using the effective
interest method in accordance with ias 39 page 44
accounting policies
financial instruments continued
availableforsale financial assets include nonderivative financial assets that are either designated as such or do not qualify for
inclusion in any of the other categories of financial assets all financial assets within this category are subsequently measured
at fair value with changes in value recognised in equity net of any effects arising from income taxes gains and losses arising
from securities classified as availableforsale are recognised in the income statement when they are sold or when the
investment is impaired
in the case of impairment of availableforsale assets any loss previously recognised in equity is transferred to the income
statement impairment losses recognised in the income statement on equity instruments are not reversed through the income
statement impairment losses recognised previously on debt securities are reversed through the income statement when
appropriate
loans and receivables are nonderivative financial assets with fixed or determinable payments that are not quoted in an active
market they arise when the group provides money goods or services directly to a debtor with no intention of trading the
receivables loans and receivables are subsequently measured at amortised cost using the effective interest method less
provision for impairment any change in their value through impairment or reversal of impairment is recognised in the income
statement
provision against trade receivables is made when objective evidence is received that the group will not be able to collect all
amounts due to it in accordance with the original terms of those receivables the amount of the writedown is determined as
the difference between the asset’s carrying amount and the present value of estimated future cash flows 
financial liabilities
financial liabilities are obligations to pay cash or other financial instruments and are recognised when the group becomes a
party to the contractual provisions of the instrument all interestrelated charges are recognised as an expense in “finance cost”
in the income statement bank loans are raised for support of long term funding of the group’s operations they are recognised
initially at fair value net of transaction costs and subsequently at amortised cost using the effective interest method finance
charges including premiums payable on settlement or redemption and direct issue costs are charged to the income statement
where they are not capitalised in development work in progress or non current assets on an accruals basis using the effective
interest method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in
which they arise
trade payables are initially measured at fair value and are subsequently measured at amortised cost using the effective interest
rate method
dividend distributions payable to the equity shareholders are included in “other short term financial liabilities” when the dividends
are approved in general meeting prior to the balance sheet date
interest rate swap
derivative financial instruments are used by the group to manage its interest exposures derivatives are initially recognised at fair
value on the date the derivative contract is entered into and are also subsequently carried at fair value changes in fair value of
derivatives are recognised immediately in the income statement 
cash and cash equivalents
for the purposes of the cashflow statement cash and cash equivalents comprise deposits with banks bank and cash balances
and liquid investments net of bank overdrafts in the balance sheet bank overdrafts are included in current borrowings
bank borrowings
interest bearing bank loans and overdrafts are initially measured at fair value and are subsequently measured at amortised cost
using the effective interest rate method any difference between the fair value on initial recognition net of transaction costs and
the settlement or redemption of borrowings is recognised over the term of the borrowings
government grants
government grants received on the construction of investment properties are reflected as deferred income and will be released to
the income statement on the eventual disposal of the properties
employee share trust
the assets and liabilities of the trust have been reflected in the group accounts with a deduction to equity in respect of own shares
held page 45
notes to the financial statements
1 segmental information
for management purposes the group is currently organised into four operating business segments
contracting property residential and construction services
as operations are carried out entirely within the uk there is no secondary segmental information
inter segmental pricing is done on an arms length open market basis
segment information about these businesses is presented below
year ended 31 may 2008
continuing operations
contracting property residential construction group group
services management total
£’000 £’000 £’000 £’000 £’000 £’000
revenue
external sales 82239 10250 8123 14661 – 115273
intersegment sales 2524 – – 915 – 3439
eliminations 2524 – – 915 – 3439
total revenue 82239 10250 8123 14661 – 115273
segment result
operating profitloss 179 1279 1581 255 1523 1391
share of results of joint ventures 
and associates – 2300 – – – 2300
net finance income 129 697 3 4 34 867 
profitloss before taxation 308 4276 1578 259 1489 1776
taxation 859
profit for the year from continuing operations 2635 
  page 46
notes to the financial statements
1 segmental information continued
year ended 31 may 2008 continued
elimination of
contracting property residential construction intersegment group
services items total
£’000 £’000 £’000 £’000 £’000 £’000
assets and liabilities
segment assets 29590 89138 7933 7704 21310 113055
investment in equity accounted 
joint ventures and associates – 23232 – – – 23232
total assets 29590 112370 7933 7704 21310 136287
segment liabilities 23307 71298 8384 1554 21310 83233
net assetsliabilities 6283 41072 451 6150 – 53054
other information
capital expenditure 74 2529 – 187 – 2790
depreciation 78 91 – 515 – 684
provision against investment 
in joint ventures – 4632 – – – 4632
impairment of inventories – – 583 – – 583
year ended 31 may 2007
continuing operations
contracting property residential construction group group
services management total
£’000 £’000 £’000 £’000 £’000 £’000
revenue
external sales 82755 8613 11004 14182 – 116554
intersegment sales 1201 – – 928 – 2129
eliminations 1201 – – 928 – 2129
total revenue 82755  8613 11004 14182 – 116554
segment result
operating profitloss 2108 6468 752 154 1222 8260
share of results of 
joint ventures and associates – 286 – – – 286
net finance incomecost – 658 – 69 – 589
profitloss before taxation 2108 7412 752 85 1222 9135
taxation 2270
profit for the year from continuing operations 6865 
  page 47
notes to the financial statements
1 segmental information continued
year ended 31 may 2007 continued
discontinued operations
contracting property residential construction group group
services management total
£’000 £’000 £’000 £’000 £’000 £’000
segment result
operating loss – – – 534 – 534
taxation 475
loss for the year from discontinued operations 59
assets and liabilities
elimination of
contracting property residential construction intersegment group
services items total
£’000 £’000 £’000 £’000 £’000 £’000
segment assets 25553 90865 11789 7797 33158 102846
investment in equity accounted 
joint ventures and associates – 13451 – – – 13451
total assets 25553 104316 11789 7797 33158 116297
segment liabilities 19946 64808 11205 2014 33158 64815
net assets 5607 39508 584 5783 – 51482
other information
capital expenditure 331 1253 – 296 – 1880
depreciation 78 93 – 737 – 908
provision against investment 
in joint ventures – 1500 – – – 1500
impairment of inventories – 207 – – – 207  
impairment of intangible assets – – – 323 – 323 
details of the group’s activities are included in the chief executive’s report on page 4
2 operating expenses
2008 2007
£’000 £’000
operating expenses
distribution costs 1653 1618
administrative expenses 15098 9003
16751 10621 page 48
notes to the financial statements
3 other operating income
2008 2007
£’000 £’000
income from property rentals 4076 3596
profit on disposal of land and buildings 25 233
profit on disposal of plant and equipment 153 10
4254 3839
4 finance incomecost
2008 2007
£’000 £’000
other interest receivable and similar income 1630 1121
fair value gains  interest rate swaps 262 427
expected return on pension scheme assets 1508 1253
finance income 3400 2801
on bank loans and overdrafts 1255 1062
interest on pension scheme liabilities 1278 1150
finance cost 2533 2212
5 profit before taxation 
profit before taxation is stated after charging or crediting
2008 2007
£’000 £’000
share based payment charge 46 41
hire of plant and machinery 909 796
operating leases
property 114 115
plant and machinery 2840 2609
auditors’ remuneration for audit 34 13
depreciation of property plant and equipment
owned assets 684 908
impairment of intangible assets – 323
profit on sales of
property 25 233
plant machinery and vehicles 153 10
operating costs relating to investment properties 1502 1430
inventories recognised as expense 96540 90407
write down of inventories 583 207
remuneration of the auditors for the provision of nonaudit services was £122000 2007 £119000 being taxation fees of
£41000 2007 £38000 and other services of £81000 2007 £81000 page 49
notes to the financial statements
6 directors and employees 
the average monthly number of persons including directors employed by the group during the year was
2008 2007
contracting 158 147
property 9 7
residential 26 23
construction services 189 190
administrationgroup 47 58
continuing operations 429 425
discontinued operations – –
429 425
employee costs during the year were
2008 2007
£’000 £’000
wages and salaries 15610 14374
social security cost 1446 1317
other pension costs see note 7 641 1361
17697 17052
there were no persons employed by the company during the year 2007 nil
directors’ emoluments
the directors’ remuneration report appears on pages 22 to 26 and provides additional information on directors’ emoluments
pensions and share options 
2008 2007
£’000 £’000
aggregate emoluments 1340 1230
aggregate gains made on exercise of share options – 90
a charge of £14000 2007 £14000 has been made in respect of share based payment awards to directors
during the year five directors 2007 five directors participated in the group’s defined benefit pension scheme retirement benefits
accruing to five directors at 31 may 2008 2007 five directors are set out in the directors’ remuneration report
during the year one director 2007 one director participated in the group’s defined contribution scheme
7 pension costs
the company sponsors the pochin’s and associated companies retirement benefits plan which operates a defined benefit
scheme and a defined contribution scheme the defined contribution scheme was established on 1 july 2002 and has been
available to new members from that date 
the defined benefit scheme was closed to new members on 31 december 2001 the last full actuarial valuation of this scheme
was carried out by a qualified independent actuary as at 1 july 2005 and updated on an approximate basis to 31 may 2008
the ordinary contributions made by the employer over the financial year have been equivalent to 16 of pensionable pay 
these contributions total £403000 2007 £431000 plus a special contribution of £nil 2007 £738000 the ordinary contribution
rate of 16 is to continue until reviewed following the triennial valuation of the scheme due as at 1 july 2008
it is the policy of the group to recognise all actuarial gains and losses in the year in which they occur outside the income statement
and in the statement of recognised income and expense
for the year ending 31 may 2008 the group has allocated 140 of the total pension surplus to the company 2007 145
  page 50
notes to the financial statements
7 pension costs continued
the following disclosures are in respect of the group
assumptions 
the assets of the scheme have been taken at market value and the liabilities have been calculated using the following principal
actuarial assumptions
2008 2007
inflation 36 pa 32 pa
salary increases 36 pa 32 pa
rate of discount 65 pa 57 pa
pension in payment increases post april 1997 benefits 35 pa 32 pa
revaluation rate for deferred pensioners 36 pa 32 pa
expected return on plan assets 40 pa 156 pa
 no allowance has been made for future discretionary increases on pre april 1997 benefits
 a number of benefit changes were introduced with effect from 1 november 2006 one of those changes was a limitation on
future increases to pensionable salary which can no longer exceed the rate of inflation
the mortality assumptions adopted at 31 may 2008 imply the following life expectancies at age 65
male currently age 40 249 years
female currently age 40 273 years
male currently age 65 229 years
female currently age 65 254 years
the amounts recognised in the balance sheet are
2008 2007
£’000 £’000
assets 22719 21874
liabilities 21858 22451
surplusdeficit in scheme 861 577
the major categories of the schemes’ assets are as follows
equities 14066 15663
bonds 7400 4863
property 1091 –
cash 162 1348
22719 21874
expected long term rate of return
to develop the expected long term rate of return on assets assumption the group considered market expectations at the
beginning of the period for returns over the entire life of the benefit obligation
2008 2007
equities 84 pa 75 pa
bonds 575 pa 52 pa
property 84 pa –
cash 50 pa 55 pa
the expected long term return on cash is equal to bank base rates at the balance sheet date the expected return on bonds is
determined by reference to uk long dated gilt and bond yields at the balance sheet date the expected rate of return on equities
and property have been determined by setting an appropriate risk premium above giltbond yields having regard to market
conditions at the balance sheet date page 51
notes to the financial statements
7 pension costs continued
the amounts recognised in the income statement are as follows
2008 2007
£’000 £’000
operating profit
current service cost 384 550
total operating charge 384 550
other finance incomecost
expected return on pension scheme assets 1508 1253
interest on pension scheme liabilities 1278 1150
curtailments included within operating expenses – 2852
net return 230 2955
total 154 2405
of the charge for the year current and past service costs have been included in administrative expenses and interest costs net of
expected returns on scheme assets have been included in finance costs actuarial gains and losses have been included in the
statement of recognised income and expense
the amounts included within the statement of recognised income and expense are as follows
2008 2007
£’000 £’000
difference between expected and actual return on scheme assets 632 1659
experience gains and losses arising on the scheme liabilities – 246
effects of changes in the demographic and financial assumptions underlying the 
present value of the scheme liabilities 1821 385
total actuarial gain 1189 1028
the total contribution expected to be paid during the year ending 31 may 2009 is £400000
pension contributions to the defined contribution pension scheme in the year were £238000 2007 £192000  page 52
notes to the financial statements
7 pension costs continued
reconciliation of opening and closing balances of the fair value of plan assets 
2008 2007
£’000 £’000
fair value of assets at start of year 21874 18455
expected return on assets 1508 1253
actuarial lossesgains 632 1659
contributions by employer 403 1169
contributions by plan participants 174 174
benefits paid death in service insurance premiums and expenses 608 836
fair value of assets at end of year 22719 21874
cumulative actuarial gains and losses recognised in equity 
2008 2007
£’000 £’000
actuarial gainloss at 1 june 1028 834
net actuarial gain recognised in the year 161 1862
actuarial gain at 31 may 1189 1028
reconciliation of opening and closing balances of the present value of the defined benefit obligation 
2008 2007
£’000 £’000
defined benefit obligation at 1 june 22451 23634
current service cost 384 550
interest cost 1278 1150
contributions by plan participants 174 174
actuarial gainslosses 1821 631
benefit paid death in service insurance premiums and expenses 608 836
past service costs – –
curtailments – 2852
defined benefit obligation at 31 may 21858 22451
 this excludes an insured deathin service lump sum payment of £101000
 a number of benefit changes were introduced with effect from 1 november 2006 whilst these changes largely related to future
accruals of benefit the limitation on future increases to pensionable salary which can no longer exceed inflation has also
impacted on the value of past service rights
history of experience gains and losses
2008 2007 2006
difference between expected and actual return on scheme assets
amount £’000 632 1659 1028
percentage of scheme assets 28 76 56
experience gains and losses on scheme liabilities
amount £’000 – 246 876
percentage of present value of the scheme liabilities – 11 37
present value of scheme liabilities £’000 21858 22451 23634
fair value of scheme assets £’000 22719 21874 18455
surplusdeficit £’000 861 577 5179
  page 53
notes to the financial statements
8 taxation
2008 2007
£’000 £’000
the tax creditcharge is based on the profit for the year and comprises
united kingdom corporation tax at 2967 2007 30 569 1948
adjustments in respect of prior years 33 834
536 1114
deferred tax on continuing operations 1835 50
deferred tax on revaluations 319 146
deferred tax on pension liabilities 75 1072
deferred tax on fair value of share options 22 152
deferred tax on fair value of interest rate swap 167 128
effect of movement in tax rate in year on deferred tax 99 –
total tax creditcharge for the year 859 2270
the tax assessed for the period is lower than the standard rate of corporation tax in the united kingdom 
the differences are explained below
2008 2007
£’000 £’000
profit before taxation 1776 9135
profit before taxation multiplied by the standard rate of
corporation tax in the united kingdom of 2967 2007 30 527 2741
effects of
expenses not deductible for tax purposes 417 563
impact of write down of investments 264 600
non taxable income in period 1420 730
adjustments to tax charge in respect of previous years 33 834
release of deferred tax on properties qualifying for industrial building allowances 614 –
capital loss crystallised in the year – 70
total tax creditcharge for the year 859 2270
9 profitloss for the year
in accordance with the provisions of section 2303 of the companies act 1985 a separate income statement for pochin’s plc is
not presented
the loss in the company for the year is £3368000 2007 £287000 profit
  page 54
notes to the financial statements
10 dividends
2008 2007
£’000 £’000
interim paid 30p per share 2007 30p 611 624
final paid 625p per share 2007 60p 1300 1248
1911 1872
the directors are proposing a final dividend in respect of the financial year ending 31 may 2008 of 30p per share amounting to
£624000 in total it will be paid on 31 october 2008 to shareholders who are on the register of members on 3 october 2008 the
final dividend has not been included as a liability as at 31 may 2008
11 earnings per share
the calculation of earnings per share basic and diluted is based on group profit after taxation and minority interests of £2603000
2007 £6775000 and the 20800000 ordinary shares of 25p in issue at 31 may 2008 and 31 may 2007 the number of shares
used in the calculation has been reduced at 31 may 2008 for the 445000 2007 449500 shares held in the employee share
trust basic earnings per share is 128p 2007 334p the assumed conversion of dilutive options increases the number of shares
by 95000 2007 118000 shares and so diluted earnings per share reduces to 127p 2007 332p
2008 2007
weighted average weighted average
earnings no of shares per share earnings no of shares per share
£’000 ’000 p £’000 ’000 p
basic eps 2603 20353 128 6775 20313 334 
effect of share options – 95 01 – 118 02
diluted eps 2603 20448 127 6775 20431 332
the calculation of earnings per share basic and diluted for the group’s continuing and discontinued operations is set out below
continuing operations
2008 2007
weighted average weighted average
earnings no of shares per share earnings no of shares per share
£’000 ’000 p £’000 ’000 p
basic eps 2603 20353 128 6834 20313 336
effect of share options – 95 01 – 118 02
diluted eps 2603 20448 127 6834 20431 334
discontinued operations
2008 2007
weighted average weighted average
earnings no of shares per share earnings no of shares per share
£’000 ’000 p £’000 ’000 p
basic eps –– – 59 20313 02
effect of share options –– – – 118 –
diluted eps –– – 59 20431 02
  page 55
notes to the financial statements
12 intangible assets
group 
customer
goodwill  lists and
on consolidation relationships total
£’000 £’000 £’000
cost
at 1 june 2006 2007 and 31 may 2008 483 645 1128
aggregate impairment
at 1 june 2006 483 322 805
impairment for the year charged to administrative expenses – 323 323
at 31 may 2007 and 31 may 2008 483 645 1128
net book value
at 31 may 2008 –– –
at 31 may 2007 – 323 323
  page 56
notes to the financial statements
13 property plant and equipment and investment properties
group
plant 
land and assets under     machinery investment
buildings construction   and vehicles total properties
£’000 £’000 £’000 £’000 £’000
cost or valuation
at 1 june 2006 3072 4440 8970           16482 34923
additions –12556251880–
surplus on revaluation – – – – 536
reclassifications – 5695 – 5695 5695
disposals – – 1296 1296 64
at 31 may 2007 3072 – 8299 11371 41090
additions ––2612613
transfer from development work in progress – – – – 2526
surplus on revaluation – – – – 2548
disposals ––11221122–
at 31 may 2008 3072 – 7438 10510 46167
depreciation 
at 1 june 2006 1056 – 5882 6938 –
charge for the year 72 – 836 908 –
disposals ––875875–
at 31 may 2007 1128 – 5843 6971 –
charge for the year 72 – 612 684 –
disposals ––758758–
at 31 may 2008 1200 – 5697 6897 –
net book value
at 31 may 2008 1872 – 1741 3613 46167
at 31 may 2007 1944 – 2456 4400 41090
no borrowing costs were capitalised in the year
the gross amount of buildings on which depreciation is being provided is shown in the table below depreciation is not provided
on land or assets in the course of construction the gross amounts of which were £194000 and £nil respectively
£’000
freehold buildings 2858
long leasehold 20
2878 page 57
notes to the financial statements
13 property plant and equipment and investment properties continued
group continued
the figures stated above for cost or valuation include valuations as follows
investment
properties
£’000
at cost 2474
at valuation
2005 19963
2007 450
2008 23280
46167
investment properties amounting to £23730000 are included at directors’ valuation at 31 may 2008 the basis of the valuations
was open market value using known occupancy and rental yields in respect of the independent professional valuations carried
out in 2005 the directors consider that these valuations remain appropriate investment properties at cost relate to buildings
recently completed but not yet fully tenanted in respect of investment properties stated at cost the directors consider that their
estimate of value is not materially different
company
land and investment
buildings properties total
£’000 £’000 £’000
cost or valuation
at 1 june 2006 3072 18329 21401
surplus on revaluation – 143 143
at 31 may 2007 3072 18472 21544
deficit on revaluation – 521 521
at 31 may 2008 3072 17951 21023
depreciation 
at 1 june 2006 1056 – 1056
charge for the year 73 – 73
at 31 may 2007 1129 – 1129
charge for the year 72 – 72
at 31 may 2008 1201 – 1201
net book value
at 31 may 2008 1871 17951 19822
at 31 may 2007 1943 18472 20415
the carrying value of land not depreciated is £194000   
  page 58
notes to the financial statements
13 property plant and equipment and investment properties continued
the figures stated above for investment properties cost or valuation include valuations as follows
£’000
cost 2474
at valuation
2005 2930
2007 450
2008 12097
17951
investment properties amounting to £12547000 are included at directors’ valuation at 31 may 2008 the basis of the valuations
was open market value in respect of the independent professional valuations carried out in 2005 the directors consider that these
valuations remain appropriate
if investment properties had not been revalued they would have been included on the historical cost basis of accounting at the
following amounts
£’000
cost at 31 may 2008 12185
cost at 31 may 2007 12185
details of security held over investment properties is disclosed in note 22 to the financial statements
14 investments
group
2008 2007
£’000 £’000
interests in joint ventures 19946 11414
interests in associates 3286 2037
interests in joint ventures and associates 23232 13451
available for sale financial assets 2157 2157
25389 15608
company
interests in joint ventures 16903 13286
interests in associates 2763 1726
interests in joint ventures and associates 19666 15012
interests in group undertakings 8657 9005
28323 24017
available for sale financial assets 2157 2157
30480 26174 page 59
notes to the financial statements
14 investments continued
group
interests in loans to loans to interests in
joint ventures   joint ventures associates      associates total
£’000 £’000 £’000 £’000 £’000
cost
at 1 june 2006 3217 9052 2105 273 14647
additions 3000 926 – – 3926
disposals 25 95 – – 120
repayments 43 313 379 203 938
share of revaluation 171 – – – 171
share of profits 45 – – 241 286
at 31 may 2007 6365 9570 1726 311 17972
additions 2002 9333 1161 498 12994
repayments 34 – 622 225 881
share of profits 1863 – – 437 2300
at 31 may 2008 10196 18903 2265 1021 32385
amounts written off
at 1 june 2006 1104 2037 – – 3141
charge for the year 
charged to administrative expenses 1500 – – – 1500
disposals 25 95 –  –              120
at 31 may 2007 2579 1942 – – 4521
charge for the year
charged to administrative expenses 3136 1496 – – 4632
at 31 may 2008 5715 3438 – – 9153
net book value
at 31 may 2008 4481 15465 2265 1021 23232
at 31 may 2007 3786 7628 1726 311 13451
details of loans to joint ventures and associates are set out in note 35 on page 76
the amounts written off joint ventures during the year relate to impairments these impairments have arisen based on the
group’s assessment of the expected outcome of projects within the joint ventures page 60
notes to the financial statements
14 investments continued
company
shares loans
in group to group interests in loans to interests in loans to
undertakings undertakings joint ventures joint ventures associates associates total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
cost
at 31 may 2007 8094 5774 5367 9051 – 2105 30391
additions – 109 3000 926 – – 4035
disposals – 4972 25 408 – 379 5784
at 31 may 2007 8094 911 8342 9569 – 1726 28642
additions – – 2001 9116 498 1161 12776
disposals – 161 – – – 622 783
at 31 may 2008 8094 750 10343 18685 498 2265 40635
amounts written off
at 1 june 2006 – – 1208 2037 – – 3245
charge for the year charged to
administrative expenses – – 1500 – – – 1500
disposals – – 25 95 – – 120
at 1 june 2007 – – 2683 1942 – – 4625
charge for the year charged to
administrative expenses 187 – 4000 3500 – – 7687
at 31 may 2008 187 – 6683 5442 – – 12312
net book value
at 31 may 2008 7907 750 3660 13243 498 2265 28323
at 31 may 2007 8094 911 5659 7627 – 1726 24017
  page 61
notes to the financial statements
14 investments continued
joint ventures 
at 31 may 2008 the group and the company had interests in the following incorporated ventures
percentage of
equity capital held relevant accounting
at 31 may 2008 period end date
bromborough business park limited 3333 30 june 2008
liberty pochin limited 50 31 march 2008
weston gate developments limited 50 31 may 2008
manchester technopark limited 50 31 may 2008
uklp walker house limited formerly nathan developments limited 50 31 may 2008
hawarden business park limited 49 31 may 2008
castlewood developments birkenhead limited 50 31 may 2008
pochin rosemound deeside limited 50 31 may 2008
trinity court developments limited 50 31 may 2008
castlewood pochin developments limited 50 31 may 2008
uklp developments limited 50 31 may 2008
uklp exchange flags limited 50 31 may 2008
all the above are incorporated registered in england and wales and operate as property developers in great britain except for
liberty pochin limited and bromborough business park limited which are dormant all holdings are of ordinary shares apart from
manchester technopark limited where there is also a £500000 holding of cumulative redeemable preferences shares all the
investments are unlisted in addition the group and the company hold 50 of the business of expressway industrial estate
runcorn an unincorporated joint venture property development with an accounting period ending 31 march 2008 and also 25
of the business of the midpoint partnership an unincorporated joint venture property development with an accounting period
ending 31 may 2008
joint ventures continued
the group’s interest in its joint ventures’ assets liabilities income and expenses is as follows
2008 2007
£’000 £’000
current assets 19516 25299
longterm assets 50491 11220
current liabilities 8957 5169
longterm liabilities 41104 19936
19946 11414
income 7506 1609
expenses 4828 1691
tax 815 127
share of post tax results from joint ventures 1863 45 page 62
notes to the financial statements
14 investments continued
associates
the group and company holds 50 of the ordinary shares and 100 of the deferred ordinary shares in each of lincoln house
properties limited and manchester house properties limited both the investments are unlisted companies with accounting period
end dates of 31 may their activity is property investment
the group and company holds 25 of the ordinary shares of uklp bryn cegin limited an unlisted company with an accounting
period end date of 31 december its activity is property development
the group’s interest in its associates’ assets liabilities income and expenses is as follows
2008 2007
£’000 £’000
current assets 109 82
longterm assets 3909 3068
current liabilities 464 190
longterm liabilities 268 923
3286 2037
income 1266 802
expenses 1101 511
tax 272 50
share of post tax results from associates 437 241
available for sale financial assets
the group and company hold a 78 equity holding in uk land  property limited the investment was at a cost of £332000 
the group and company also hold 100 of cumulative redeemable preference shares in uk land  property limited at a cost of
£325000
the group and company hold a 96 equity holding in manchester science park limited its joint venture partner in manchester
technopark limited details of which are given above the investment was at a cost of £960000 the group and company also
hold 9 of cumulative redeemable preference shares in manchester science park limited at a cost of £540000
shares in group undertakings
principal group undertakings include
percentage of
equity capital held
at 31 may 2008 activity
pochin contractors limited 100 contracting
pochin plant limited 100 operated plant hire
pochin developments limited 100 property development
keele park developments limited 100 property investment
bushwing limited 100 property development
p b developments limited
†
100 property development
castello developments limited
†
100 property development
pochin homes limited 100 residential
pochin gateway commercial limited 100 property investment
all of the above are registered in england and wales
†
equity capital held by bushwing limited
the group and company has a 79 interest in the business of prosperity court middlewich an unincorporated property
development under ias 27 the group’s investment has been treated as if it were a legal subsidiary prosperity court has an
accounting period ended 31 may 2008
the development holds an investment property valued at £1401000 2007 £1401000 which is largely financed by monies
advanced from pochin’s plc of £950000 2007 £950000 and a government grant of £283000 2007 £283000 and
generated profits from rental income of £149000 2007 £145000 in the year
  page 63
notes to the financial statements
15 inventories
group
2008 2007
£’000 £’000
work in progress on long term contracts 2368 3003
development work in progress 29518 32337
raw materials consumables and finished products 291 298
32177 35638
the replacement cost of inventories is considered not to be materially different from the values included above
an amount of £8300000 2007 £14330000 included in development work in progress is pledged as security see note 22
16 construction contracts
2008
£’000
contract revenue recognised as revenue in the year 82239
contract costs incurred 262414
recognised profits 17737
progress billings 269783
due from customers 10768
due to customers 400
17 trade and other receivables
group company
2008 2007 2008 2007
£’000 £’000 £’000 £’000
amounts falling due within one year
trade receivables 2985 3298 – –
amounts recoverable on contracts 10768 8126 – –
amounts owed by group undertakings – – – – 
amounts owed by joint ventures see note 35 7094 4291 2654 1517
amounts owed by associates see note 35 112 10 112 10
other receivables 721 1866 95 153
prepayments and accrued income 1862 1439 671 406
23542 19030 3532 2086
included in trade receivables is a bad debt provision of £72000 2007 £121000
some of the unimpaired trade receivables and amounts recoverable on contracts are past due as at 31 may
the age of financial assets past due but not impaired is as follows
2008 2007
£’000 £’000
not more than 3 months 2473 2105
more than 3 months but not more than 6 months 341 1037
more than 6 months 102 265
2916 3407
18 cash and cash equivalents
with the exception of deposits of £294000 2007 £155000 held by subsidiary companies all other investments and deposits
are held by the company page 64
notes to the financial statements
19 trade and other payables
group company
2008 2007 2008 2007
£’000 £’000 £’000 £’000
payments received on account 400 700 – –
trade payables 12120 13104 – –
amounts owed to group undertakings – – 17826 19072
amounts owed to associates see note 35 – 38 – 38
other taxation and social security 2694 453 – –
other creditors 1376 1015 443 121
accruals and deferred income 12706 8892 1121 1020
29296 24202 19390 20251
20 financial liabilities  current borrowings
group company
2008 2007 2008 2007
£’000 £’000 £’000 £’000
bank overdrafts 23918 11409 16300 148
bank loans 10534 10618 9942 10357 
34452 22027 26242 10505
21 financial liabilities  noncurrent borrowings
group company
2008 2007 2008 2007
£’000 £’000 £’000 £’000
bank loans 12411 9207 – 179
retirement benefit obligation – 577 – 84
deferred tax liabilities see note 24 1374 2413 475 1575
long term provisions see note 25 496 1632 496 500
other payables see note 26 5204 4757 – –
19485 18586 971 2338 page 65
notes to the financial statements
22 borrowings
borrowings are repayable as follows
group company
2008 2007 2008 2007
£’000 £’000 £’000 £’000
within one year
bank and other borrowings 34452 22027 26242 10505
after one and within two years
bank and other borrowings 750 1145 – 179
after two and within three years
bank and other borrowings 750 750 – –
after three and within four years
bank and other borrowings 750 750 – –
after four and within five years
bank and other borrowings 750 750 – –
after five years 
bank and other borrowings 9411 5812 – –
46863 31234 26242 10684
bank borrowings above include
1 a loan of £12786000 secured by a fixed and legal charge over investment properties with a carrying value of £17033000 
the loan is repayable over 20 years in equal quarterly instalments interest is payable on the loan at a rate of 125 above libor
2 an overdraft of £7618000 secured by a first legal mortgage over land and buildings with a carrying value of £11308000
interest is payable on the overdraft at a rate of 10 above national westminster bank plc base rate
3 an unsecured loan of £179000 interest is payable on the loan at a rate of 10 above national westminster bank plc base
rate the loan is repayable over a four year period in equal quarterly instalments and repayments commenced in february 2005
4 a loan of £9764000 secured by a legal charge over a property development with a carrying value of £8300000 the loan is
repayable the earlier of 30 january 2009 or the date on which the property is sold interest is payable on the loan at a rate of
125 above libor
5 a revolving credit facility of £16300000 secured by first legal mortgages over investment property with a carrying value of
£21207000 interest is payable at a rate of 10 above libor 
6 a secured loan of £216000 repayable in july 2008
23 financial instruments
as referred to in the financial review on page 14 the group only uses financial instruments comprising borrowings cash liquid
resources an interest rate swap and various items such as trade receivables and trade payables that arise directly from its
operations the main purpose of these financial instruments is to finance the group’s operations
the main risks arising from the group financial instruments are interest rate risk liquidity risk and credit risk the board reviews and
agrees policies for managing each of these risks and they are summarised below these policies have remained unchanged from
previous years
the group does not have any material exposure to currency rate risks
it is and has been throughout the year under review the group policy that no trading in financial instruments shall be undertaken
interest rate risk
the group has followed its treasury policy and has funded its operations by utilising retained profits and by borrowing where appropriate
the group’s general borrowing facilities are at floating rates of interest and during the year were broadly matched by cash 
and deposits see note 18 effectively limiting the group’s exposure to interest rate fluctuations specific short term borrowings to
finance development projects are at floating rates of interest and the group’s policy is not to seek to fix these rates in view of the
short term nature of the facilities
the group’s long term borrowings are also at floating rates of interest but the board reviews the risk continually against costs and
benefits involved in taking measures to limit the exposure to increased rates of interest the group has entered into variable pay
fixed interest rate swaps in respect of short and long term borrowings of £22500000 2007 £7500000 which is the borrowing
value for which interest rate swaps are in place the fair value of the interest rate swaps is £515000 asset 2007 £253000 asset
the groups loans to joint ventures and associates are at floating rates of interest which reflect the group’s external borrowings
  page 66
notes to the financial statements
23 financial instruments continued
the interest exposure of the net financial liabilities of the group was
interest rate
fixed floating total
£’000 £’000 £’000
at 31 may 2008 216 46647 46863
at 31 may 2007 289 30945 31234
the floating rate borrowings bear interest at rates based on uk clearing bank base lending rate and libor
the weighted average rate at which the group has secured its fixed rate borrowings is 52 the weighted average period for
which the rates are fixed is 40 years
the table below indicates the effect on profit before tax if interest rates on group borrowings changed by 50 basis points with all
other variables held constant
2008 2007
£’000 £’000
development loans 22 67
acquisition loans 1 3
total 23 70
the directors do not consider that there will be significant differences between movements in the fair value of interest rate swaps
and the fair value of related interest bearing loans on the basis that these loans are relatively short term and any movements are
likely to result in an immaterial net impact
liquidity risk
the group seeks to achieve a balance between short and long term funding to maintain continuity and flexibility
short term borrowing facilities are used for property development projects certain short term project facilities continue to be
available until anticipated development sales are realised
it is the group’s policy that investment in non current assets is funded from retained profits wherever possible
business acquisitions are funded by longer term borrowing with repayments made out of the cash flow arising from the acquired
businesses
the group holds bank deposits with a limited number of financial institutions and funding is sourced from a small number of
counterparties
credit risk
the group has no significant concentrations of credit risk arising from trade receivables the group has implemented policies that
require appropriate credit checks on potential customers before sales commence
surplus funds held in the group are invested in line with boardapproved policy in high quality short term liquid instruments usually
money market funds or bank deposits credit risk is managed by limiting the aggregate exposure to any one individual
counterparty taking into account its credit rating such counterparty exposures are regularly reviewed and adjusted as necessary
accordingly the possibility of material loss arising in the event of nonperformance by counterparties is considered to be unlikely
however the group holds bank deposits with a limited number of financial institutions
borrowing facilities 
details of group borrowings are detailed in note 22
the group has various undrawn committed borrowing facilities the facilities available at 31 may 2008 in respect of which all
conditions precedent had been met were as follows
£’000
expiring in one year or less 10000
the facilities included above are subject to review by the providers of the facilities on 30 november 2008
fair values 
the difference between the fair values and the book values of the group’s financial assets and liabilities at 31 may 2008 is not
material it is relevant in particular in relation to the loans with joint ventures and associates given the directors’ views on the
length of the investments the interest rate charged and the relative standing of the group’s risk status in the market this is
considered appropriate
  page 67
notes to the financial statements
23 financial instruments continued
summary of financial assets and liabilities by category
the carrying amounts of the group’s financial assets and liabilities as recognised at the balance sheet date may also be
categorised as follows
group
as at 31 may 2008
assets loans  held for  available non financial 
receivables trading for sale assets total
£’000 £’000 £’000 £’000 £’000
cash at bank 3988 – – – 3988
derivatives – 515 – – 515
trade receivables 13753 – – – 13753
other receivables – current 7927 – – – 7927
non current investments – – 2157 – 2157
investment in joint ventures and associates 17730 – – 5502 23232
43398 515 2157 5502 51572
as at 31 may 2007
assets loans  held for  available non financial 
receivables trading for sale assets total
£’000 £’000 £’000 £’000 £’000
cash at bank 223 – – – 223
derivatives – 253 – – 253
trade receivables 11424 – – – 11424
other receivables – current 6167 – – – 6167
non current investments – – 2157 – 2157
investment in joint ventures and associates 9354 – – 4097 13451
27168 253 2157 4097 33675
as at 31 may 2008
liabilities
£’000
bank overdraft 23918
trade payables 12520
loans payable – current 10534
loans payable – non current 12411
other liabilities – current 1376
other liabilities – non current 5204
accruals 12706
78669 page 68
notes to the financial statements
23 financial instruments continued
summary of financial assets and liabilities by category continued
group continued
as at 31 may 2007
liabilities
£’000
bank overdraft 11409
trade payables 13804
loans payable – current 10618
loans payable – non current 9207
other liabilities – current 1015
other liabilities – non current 5889
accruals 8892
60834
company
the carrying amounts of the company’s financial assets and liabilities as recognised at the balance sheet date may also be
categorised as follows
as at 31 may 2008
assets
loans available non financial 
 receivables for sale assets total
£’000 £’000 £’000 £’000
cash at bank 3695   3695
other receivables – current 2861   2861
non current investments  2157  2157
investments in group undertakings joint ventures and associates 16258  12065 28323
22814 2157 12065 37036
as at 31 may 2007
assets
loans available non financial 
 receivables for sale assets total
£’000 £’000 £’000 £’000
cash at bank 68   68
other receivables – current 1680   1680
non current investments  2157  2157
investments in group undertakings joint ventures and associates 10264  13753 24017
12012 2157 13753 27922
as at 31 may 2008
liabilities
£’000
bank overdraft 16300
loans payable – current 9942
other liabilities – current 18269
accruals 1121
45632 page 69
notes to the financial statements
23 financial instruments continued
summary of financial assets and liabilities by category continued
company continued
year ended 31 may 2007
liabilities
£’000
bank overdraft 148
loans payable – current 10357
other liabilities – current 19231
accruals 1020
30756
contractual maturities of liabilities
group 
as at 31 may 2008 current  non current later than 
within 12 months 1 to 5 years 5 years
£’000 £’000 £’000
bank overdraft 25372 – –
trade payables 12520 – –
loans payable – current 11686 – –
loans payable – non current – 5936 14583
other liabilities – current 1376 – –
other liabilities – non current – 2952 2748
accruals 12706 – –
63660 8888 17331
as at 31 may 2007 current  non current later than 
within 12 months 1 to 5 years 5 years
£’000 £’000 £’000
bank overdraft 14130 – –
trade payables 13804 – –
loans payable – current 12237 – –
loans payable – non current – 5032 7407
other liabilities – current 1015  –
other liabilities – non current – 2009 2748
accruals 8892 – –
50079 7041 10155
company
as at 31 may 2008
current 
within 12 months
£’000
bank overdraft 17297
loans payable – current 10361
other liabilities – current 18269
accruals 1121
47048 page 70
notes to the financial statements
23 financial instruments continued
contractual maturities of liabilities continued
company continued
2007
current 
within 12 months
£’000
bank overdraft 2130
loans payable – current 11132
other liabilities – current 19231
accruals 1020
33513
in completing the above analysis a number of assumptions have been made which are explained as follows
1 the bank of england base rate is assumed to be 5 2007550 based on the year end rate
2 libor is assumed to be 5115 2007 561 based on the year end rate
3 the revolving credit facility and overdrafts are assumed to be repayable in 12 months based on the contractual terms
4 where loans do not have an agreed repayment date management have made an assumption based on the terms of the
loan
5 interest has been included in the contractual maturities based on the applicable interest rate at the year end in relation to
variable rate loans and accrued for the life of the loan
24 deferred tax
group company
£’000 £’000
at 1 june 2007 2413 1575
decrease in the year 1039 1100
at 31 may 2008 1374 475
deferred taxation is made up as follows
group company
2008 2007 2008 2007
£’000 £’000 £’000 £’000
accelerated capital allowances 977 1571 19 544
revaluations 1249 1019 373 1072
fair value – 94 – –
interest rate swap 226 75 – –
share options 121 152 121 4
other 1440 326 – 12
pension surplusdeficit 241 172 – 25
1374 2413 475 1575 page 71
notes to the financial statements
25 provisions
group company
£’000 £’000
at 1 june 2007 1632 500
decrease in the year 1136 4
at 31 may 2008 496 496
provisions arising from agreements entered into in the normal course of business
26 other non current payables
group
government deferred
grants income total
£’000 £’000 £’000
at 1 june 2007 2748 2009 4757
increase in the year – 447 447
at 31 may 2008 2748 2456 5204
government grants were received in respect of expenditure on an investment property
27 called up share capital
company 
ordinary shares of 25p each
number
‘000 £’000
authorised
at 1 june 2006 2007 and 31 may 2008 24000 6000
allotted called up and fully paid
at 1 june 2006 2007 and 31 may 2008 20800 5200
the company has granted options to certain directors and employees in respect of 166500 ordinary shares of 25p each at £121p
per share 99000 ordinary shares of 25p each at £197p per share 123500 ordinary shares of 25p each at £200p per share
97000 ordinary shares of 25p each at £372p 84000 ordinary shares of 25p each at £330p per share and 98500 ordinary
shares of 25p each at £309p per share exercisable between 2006 and 2015 at 31 may 2008 175500 options had been
exercised and 94000 had lapsed
28 employee share trust
at the year end the employee share trust operating the share option scheme held 445000 shares 2007 449500 
representing 214 2007 216 of the issued share capital of the company with a market value at the year end of £845500 
2007 £1517000 no further purchases have been made since the year end
  page 72
notes to the financial statements
29 consolidated statement of changes in equity
shareownrevaluationretained minority
capital shares reserve earnings total interest
£’000 £’000 £’000 £’000 £’000 £’000
at 31 may 2006 5200 954 270 41093 45609 209
profit for the period –  – – 6775 6775 30
cost of share based payments – – – 41 41 –
pension deficit – – – 718 718 –
realisation of revaluation reserve on disposal – – 30 30 – –
equity dividend – – – 1872 1872 28
at 31 may 2007 5200 954 240 46785 51271 211
profit for the period –  – – 2603 2603 32
cost of share based payments – – – 46 46 –
pension deficit – – – 834 834 –
realisation of revaluation reserve on disposal – – 62 62 – –
equity dividend – – – 1911 1911 32
at 31 may 2008 5200 954 178 48419 52843 211
30 company statement of changes in equity
share retained total
capital earnings equity
£’000 £’000 £’000
at 31 may 2006 5200 14164 19364    
loss for the period – 287 287
cost of share based payments – 12 12
pension deficit – 422 422
equity dividend – 1872 1872
at 31 may 2007 5200 12169 17369    
loss for the period – 3368 3368
cost of share based payments – 46 46
equity dividend – 1911 1911   
at 31 may 2008 5200 6936 12136  
31 analysis of balances of cash and cash equivalents
group company
2008 2007 2008 2007
£’000 £’000 £’000 £’000
bank balances and other liquid funds 3988 223 3695 68
bank overdrafts see note 20 23918 11409 16300 148
19930 11186 12605 80 page 73
notes to the financial statements
32 share based payments
the executive share option plan esop was introduced in 2002 under the esop the remuneration committee can grant
options over shares in the company to employees of the company options are granted with a fixed exercise price equal to the
market price of the shares under option of the date of grant the contractual life of an option is 10 years awards under the
esop are generally reserved for employees at senior management level and above and 42 employees are currently eligible to
participate in this group there are no reload features the company has made annual grants in the final quarter each calendar
year since 2002 options granted under the esop will become exercisable on the third anniversary of the date of grant exercise
of an option is subject to continued employment options were valued using the binomial model no performance conditions
were included in the fair value calculations the fair value per option granted and the assumptions used in the calculation are
as follows
grant date 261007 21106
share price at grant date £3085 £33000
exercise price £3085 £32988
number of employees 42 36
shares under option 98500 84000
vesting period years 33
expected volatility 15 15
option life years 10 10
expected life years 33
expected life years 55
risk free rate 5 year expected life 487 484
expected dividends expressed as a dividend yield 270 270
possibility of ceasing employment before vesting 5 5
expectations of meeting performance criteria 100 100
fair value per option 5 year expected life £053 £052
the expected volatility was determined by calculating the annualised standard deviation of daily continuously compounded
returns of the company’s share price over three years from the date of grant the expected life used in the model has been
adjusted based on management’s best estimate for the effects of nontransferability exercise restrictions and behavioural
considerations the risk free rate of return is the yield on zerocoupon uk government bonds of a term consistent with the
assumed option life a reconciliation of option movements over the year to 31 may 2008 is shown below
2008 2007
weighted weighted
average average
exercise exercise
number price number price
outstanding at 1 june 326000 £275 321000 £239
granted 98500 £309 84000 £330
forfeited 21000 £278 11500 £333
exercised 4500 £197 67500 £152
outstanding at 31 may 399000 £285 326000 £275
exercisable at 31 may 143000 £197 49500 £190
the weighted average share price during the period for options exercised over the year was £339 2007 £339 the options
outstanding at 31 may 2008 had a weighted average remaining contractual life of 77 years 2007 80 years the range of
exercise prices for outstanding share options is £121p to £372p the total charge for the year relating to employee share
based payment plans was £46000 2007 £41000 all of which related to equity settled share based payment transactions
after deferred tax the total charge was £32000 2007 £29000
  page 74
notes to the financial statements
33 contingent liabilities
there are contingent liabilities in respect of guarantees under building agreements entered into in the normal course of business
there are unlimited cross guarantees among group companies relating to the group bank overdraft facility of £10000000
the company has guaranteed £1000000 in respect of the bank borrowings of its subsidiary company keele park developments
limited
the company has guaranteed hire purchase and operating lease facilities for subsidiary company amounting to £10939000
the company has guaranteed £3800000 in respect of the bank borrowings of uklp exchange flags limited plus interest and
cost overruns
the company has guaranteed £3500000 in respect of the bank borrowings of uklp developments limited
the company has guaranteed interest and cost overruns in respect of the midpoint partnership to a maximum of £1000000
the company has guaranteed £7650000 in respect of the bank borrowings of uklp walker house limited
34 capital and lease commitments
group
capital commitments
2008 2007
£’000 £’000
expenditure contracted for but not provided – 17
lease commitments as lessee
the group had the following outstanding commitments for future minimum payments under non cancellable operating leases
land and plant machinery
buildings and vehicles
2008 2007 2008 2007
£’000 £’000 £’000 £’000
operating leases expiring
within one year 18 – 381 99
between one and five years 10 28 6474 5838
after five years 105 105 4084 4423
133 133 10939 10360
commitments in respect of plant machinery and vehicles are in connection with construction services activities
lease commitments as lessor
the group had the following income commitments under noncancellable leases
land and buildings
2008 2007
£’000 £’000
operating leases expiring
within one year 136 303
between one and five years 1363 1807
after five years 12653 11650
14152 13760 page 75
notes to the financial statements
35 related party transactions
details of the company’s interests in associates and joint ventures are set out in note 14 and listed below are details of transactions
that occurred with them
during the year the company’s subsidiary pochin contractors limited carried out construction work for the following joint venture
partners
• uklp walker house limited work valued at £5805000 in connection with the refurbishment of walker house exchange
flags liverpool
• the midpoint partnership work valued at £103000 in connection with the construction of a distribution unit at 
midpoint 18
• hawarden business park limited work valued at £850000 in connection with the construction of an industrial park at
hawarden flintshire
• uklp developments limited work valued at £2444000 in connection with the construction of an office park at heald
green near manchester airport
during the year the company had the following loans with its associated companies and joint venture partners 
outstanding amounts are included in the loan balances shown overleaf
• a long term loan to lincoln house properties limited secured by a debenture and second fixed legal charges over
properties held by that company interest is chargeable on the loan at 2 over the base rate of national westminster bank
plc repayment is not due until there is a sale of a property which is the relevant security
• a long term loan to manchester house properties limited secured by a debenture and second fixed legal charges over
properties held by that company interest is chargeable on the loan at 2 over the base rate of national westminster bank
plc repayment is not due until there is a sale of a property which is the relevant security
• a long term loan to manchester technopark limited secured by a fixed and floating charge over the assets of manchester
technopark limited and a second charge over land comprising the technology park development at birley fields hulme
manchester interest is chargeable on the loan at 175 over the base rate of national westminster bank plc
• a short term loan repayable on demand to castlewood developments birkenhead limited interest is chargeable on the
loan at 2 over the base rate of national westminster bank plc
• a short term loan repayable on demand to trinity court developments limited interest is chargeable on the loan at 3
over the base rate of national westminster bank plc
• a short term loan repayable on demand to the midpoint partnership no interest is chargeable on the loan
• a short term loan repayable on demand to castlewood pochin developments limited no interest is chargeable 
on the loan
• a short term loan repayable on demand to uklp walker house limited interest is chargeable on the loan at 2 over the
base rate of national westminster bank plc
• a short term loan repayable on demand to uklp bryn cegin limited interest is chargeable on the loan at 2 over the
base rate of national westminster bank plc
• a short term loan repayable on demand to uklp exchange flags limited interest is chargeable on the loan at 2 over
the base rate of national westminster bank plc
during the year the company charged rental income to group undertakings of £462000 as follows
• £109000 to pochin contractors limited
• £14000 to pochin developments limited
• £212000 to pochin plant limited
• £19000 to pochin homes limited page 76
notes to the financial statements
35 related party transactions continued
during the year the company charged interest on loans to associated companies and joint venture partners outstanding amounts
are included in the debtor balances shown below the amounts charged were as follows
• £50000 to lincoln house properties limited
• £45000 to manchester house properties limited
• £136000 to manchester technopark limited
• £774000 to castlewood developments birkenhead limited
• £93000 to trinity court developments limited
• £6000 to the midpoint partnership
• £71000 to uklp exchange flags limited
• £62000 to uklp walker house limited
• £21000 to uklp bryn cegin limited
during the year the company’s subsidiary pochin developments limited charged the following management fees to its joint
venture partners in respect of development activities
• £16000 to manchester technopark limited
• £24000 to hawarden business park limited
• £28000 to the midpoint partnership
balances due tofrom the group by joint ventures and associates at 31 may were as follows
2008 2007
loans debtors creditors loans debtors creditors
£’000 £’000 £’000 £’000 £’000 £’000
joint ventures
weston gate developments limited ––– –12 –
manchester technopark limited 1895 755 – 1670 647 –
hawarden business park limited – 582 – –––
castlewood developments 
birkenhead limited 9637 1286 – 3539 512 –
pochin rosemound deeside limited 3125 – – 2061 – –
trinity court developments limited 614 1696 – 319 1578 –
castlewood pochin developments limited 40 – – 39 – –
the midpoint partnership – – – – 1542 –
uklp developments limited 150 – – – – –
uklp walker house limited 4 2704 – –––
uklp exchange flags limited –71 – –––
15465 7094 – 7628 4291 –
associates
lincoln house properties limited 1202 – – 1145 – 38
manchester house properties limited 661 91 – 581 10 –
uklp bryn cegin limited 402 21 – –––
2265 112 – 1726 10 38
  page 77
notes to the financial statements
36 capital management policies and procedures
pochin’s capital management objectives are
• to ensure the group’s ability to continue as a going concern and 
• to provide an adequate return to shareholders 
by investing in a range of associated market sectors and pricing products and services commensurately with the level of risk
the group’s equity base is largely fixed and therefore capital is sourced through retained earnings bank borrowings and asset
sales
the group’s aim is to fund the working capital requirements of its trading activities through short term unsecured overdraft
facilities
investment in short to medium term property development activity is funded through a combination of retained earnings and
discrete development financing facilities each of these facilities has its own covenant obligations which the group continually
monitors and operates within
long term investment activity is funded through the arrangement of appropriate long term borrowing and where covenant
obligations apply the group continually monitors these requirements and operates within them
the group funds any speculative developments from retained earnings
the board manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the
risk characteristics of the underlying assets to maintain or adjust the capital structure the group may adjust the amount of
dividends paid to shareholders return capital to shareholders or sell assets to reduce debt
  page 78
report of the independent auditors 
to the members of pochin’s plc
we have audited the group and parent company financial
statements the “financial statements” of pochin’s plc for the
year ended 31 may 2008 which comprise the principal
accounting policies the group income statement the group
and parent company balance sheets the group and parent
company cash flow statements the group and parent
company statement of recognised income and expense and
notes 1 to 36 these financial statements have been prepared
under the accounting policies set out therein we have also
audited the information in the directors’ remuneration report
that is described as having been audited
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 auditors’ report and for no
other purpose to the fullest extent permitted by law we do
not accept or assume responsibility to anyone other than the
company and the company’s members as a body for our
audit work for this report or for the opinions we have formed
respective responsibilities of directors and
auditors
the directors’ responsibilities for preparing the annual report
the directors’ remuneration report and the financial
statements in accordance with applicable law and
international financial reporting standards ifrs as adopted
by the european union are set out in the statement of
directors’ responsibilities
our responsibility is to audit the financial statements and the
part of the directors’ remuneration report to be audited 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 whether the financial
statements and the part of the directors’ remuneration
report to be audited have been properly prepared in
accordance with the companies act 1985 and as regards
the group financial statements article 4 of the ias regulation
and whether the information given in the directors’ report is
consistent with the financial statements the information
given in the directors’ report includes that specific
information presented in the chairman’s statement and the
chief executive’s report that is crossreferenced from the
principal activities section of the directors’ report 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 review whether the corporate governance statement
reflects the company’s compliance with the nine provisions of
the 2006 combined code specified for our review by the
listing rules of the financial services authority and we report
if it does not we are not required to consider whether the
board’s 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
we read other information contained in the annual report and
consider whether it is consistent with the audited financial
statements the other information comprises only the
directors’ report the unaudited part of the directors’
remuneration report the chairman’s statement the chief
executive’s report and financial review the corporate
governance statement and the five year summary 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
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 and the part of the directors’
remuneration report to be audited 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 company’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 and the
part of the directors’ remuneration report to be audited 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 and the part of the
directors’ remuneration report to be audited
opinion
in our opinion
• the group financial statements give a true and fair
view in accordance with ifrs as adopted by the
european union of the state of the group’s affairs as
at 31 may 2008 and of its profit for the year then
ended
• the parent company financial statements give a true
and fair view in accordance with ifrs as adopted by
the european union as applied in accordance with
provisions of the companies act 1985 of the state of
the parent company’s affairs as at 31 may 2008 page 79
report of the independent auditors 
to the members of pochin’s plc
• the financial statements and the part of the directors’
remuneration report to be audited have been
properly prepared in accordance with the companies
act 1985 and as regards the group financial
statements article 4 of the ias regulation and 
• the information given in the directors’ report is
consistent with the financial statements for the year
ended 31 may 2008
separate opinion in relation to ifrs
the group in addition to complying with its legal obligations to
comply with ifrs as adopted by the european union has also
complied with the ifrs as issued by the international
accounting standards board in our opinion the group financial
statements give a true and fair view in accordance with ifrs of
the state of the group’s affairs as at 31 may 2008 and of its
profit for the year then ended
grant thornton uk llp
registered auditor
chartered accountants
liverpool
22 september 2008 page 80
five year summary
year ended 31 may
2004 2005 2006 2007 2008
uk gaap ifrs ifrs ifrs ifrs
£’000 £’000 £’000 £’000 £’000
turnover 65910 87309 124295 116554 115273
profit before tax 5080 6183 9383 9135 1776
retained profit 1679 4074 3738 6806 2635
earnings per share basic continuing operations 153p 203p 288p 336p 128p
earnings per share diluted continuing operations 153p 202p 285p 334p 127p
dividends per share 69p 76p 875p 925p 60p
net assets employed 45965 44409 45818 51482 53054
the above figures for the year ending 31 may 2004 have been prepared under uk gaap  the figures for the years ending 31 may
2005 2006 2007 and 2008 have been prepared under ifrs
2007 1166
2006 1243
2005 873
2004 659
turnover £m
2007 91
2008 1153 2008 18
2006 94
2005 62
2004 51
profit before tax from 
continuing operations £m
2007 515
2006 458
2005 444
2004 460
net assets employed £m
2007 925
2008 531 2008 60
2006 875
2005 76
2004 69
dividend per share p
  page 81
shareholder information
registered office
brooks lane middlewich cheshire cw10 0jq
tel  01606 833333   fax  01606 833331
website address
wwwpochinsplcuk
registered number
registered in england and wales no 00300573
secretary
mr d j hedley bschons solicitor
principal bankers
royal bank of scotland plc
6th floor 1 spinningfields square manchester m3 3ap
auditors
grant thornton uk llp
1st floor royal liver building liverpool l3 1ps
stockbrokers  corporate advisors
charles stanley securities
25 luke street london ec2a 4ar
solicitors
mace  jones
pall mall court 6167 king street manchester m2 3wq
registrars
capita registrars
northern house woodsome park fenay bridge
huddersfield hd8 0la
tel  0870 162 3131   fax  01484 600 911
financial calendar
annual general meeting 2008 24 october 2008
final dividend payable 31 october 2008
interim results announced january 2009
interim dividend payable april 2009
preliminary announcement of
results for year ended 31 may 2009 september 2009
circulation of annual report to
shareholders september 2009
annual general meeting 2009 october 2009
share price
at 31 may 2007 3375p
at 31 may 2008 1900p
range 1800p – 3375p
recent dividends
amount paidpayable ex dividend date register closed
interim 200607 30p 6407 9307 11307
final 200607 625p 21107 31007 51007
interim 200708 30p 7408 6208 8208
final 200708 30p 311008 11008 3 1008 pochin’s plc brooks lane middlewich cheshire cw10 0jq
tel 01606 833333   fax 01606 833331
wwwpochinsplcuk
designed and produced by staunton rook limited t el 01244 323250


Summary:
 page 2
chairman’s statement
chairman richard fildes
the results for the group for the year ending 31 may 2008
reflect the difficult conditions prevailing in the uk property
market profits before tax on group companies joint ventures
and associate company income were £23m 2007 £89m
derived from turnover of £1153m 2007 £1166m after
accounting for taxation charges in joint ventures of £05m the
reported ifrs group profit before taxation is £18m 
2007 £91m
a final dividend of 30p is proposed which combined with the
interim dividend of 30p 2007 30p will total 60p 
2007 925p for the full year the board regrets the need to
propose a reduced final dividend which it feels is appropriate
in the current general and specific economic circumstances 
“dramatic recent events in financial markets make
commenting on the group’s current prospects unusually
perilous” this concern expressed in last year’s chairman’s
statement unfortunately has proved to be fully justified by the
wholesale reassessment of property values and prospects
which have occurred since last year’s annual report 
this has been brought about by the abrupt change in both
the cost and availability of money for many years readily
available funding for property development and investment
has stimulated demand prices responded with investment
yields falling to well below the cost of money encouraged by
the prospect of even higher prices money is the raw material
of the property industry and when its supply is savagely
curtailed as is evident from the changed conditions in the
credit markets demand from investors evaporates prices
begin to fall and confidence is destroyed 
thus we have seen in the last twelve months a substantial 
rerating of the value of both commercial and residential
property such a marked adjustment naturally affects not only
the price of built stock but also development appraisal and
land values to date stability has not yet returned with
investment yields still drifting outwards and the viability of all
forms of development remaining difficult to assess 
in these troubled circumstances pochin’s has performed
creditably during the year the property division has again
new craft centre ruthin
  page 3
chairman’s statement
made the main contribution before making necessary
provisions in the prevailing market conditions the profitable
disposal of land for a supermarket at ellesmere shropshire
was a highlight as was the exchange of contracts for the
£12m sale by manchester technopark limited our joint
venture with manchester science park limited of reynolds
house fortunately the division’s investment portfolio is well
let with its £38m annual rental income so far proving resilient
a reorganisation of the contracting division was carried out
during the year taking the cost of this into account its
performance was acceptable turnover was maintained and
the reinvigorated management team is now winning valuable
new business despite the increasingly competitive
environment for contracting
during the second half of the year the construction services
division was affected by weakening demand and sharply
increasing fuel prices since the year end there has been no
improvement in turnover with business in the midlands and
the north showing the greatest decline steadier fuel prices
and sustained public sector activity are helping to alleviate this
situation
the residential division had an extremely difficult year and it
is not possible to report any improvement since the year end
fortunately the modest size of the operation and a realistic
approach to speculative building will mean that the
continuing losses of the division are containable 
naturally the group’s future prospects depend on more stable
conditions in financial markets in addition much rests on the
outcome of the struggle between the competing forces of
commodity price inflation and weakening global and domestic
demand and the reaction of central bankers to it the current
year requires careful cost control and due regard for the
importance of maintained liquidity fortunately the group
enjoys close relations with its bankers notably the royal
bank of scotland who have demonstrated their strong
support with the renewal and extension of facilities sufficient
to sustain the group’s various activities during the current year
and beyond the group’s prudent approach to speculative
development and its strong balance sheet will prove
increasingly important until improved market conditions begin
to be reestablished 
in addition to the unfortunate and painful damage it has
inflicted on shareholders the sharp deterioration in all the
group’s markets has tested the morale and resilience of its
management and staff to date such tests have been met
with great resolve and i would take this opportunity to thank
and congratulate all those involved i would also like to record
my thanks to ross murray and richard buck who have left
the board after serving the group for thirty years and twenty
years respectively 
pochin’s is a fine company with a well deserved reputation
among its clients tenants suppliers and employees this will
sustain it through the current adverse circumstances enabling
it to benefit from the many opportunities which diligent and
hard work will identify as confidence and credit gradually
return to the property market
richard fildes
22 september 2008 
walker house liverpool