pro t e ct i n g l i v e s
creating value
silverdell plc annual report and accounts 2010 silverdell plc
14 buckingham street
london wc2n 6df
wwwsilverdellplcuk
silverdell plc annual report and accounts 2010
8981silverdellar10covtp 2indd   1 101210   103235 who we are 
silverdell plc works with major organisations both here 
and overseas whose executives have a duty to protect 
people assets and reputation
silverdell group provides peace of mind through its 
specialist environmental support services majoring  
on the management of asbestos and other hazardous 
materials 
which means our customers know that their interests  
are always protected
the group provides managed solutions for the assessment survey safe handling and removal of  
hazardous or potentially hazardous waste the group’s collaborative approach supports remediation  
and refurbishment projects and serves ongoing maintenance contract requirements for access and 
regulatory compliance working across the public private construction and industrial markets  
silverdell is committed to creating an improved and protected environment in which to live and work
from its origins in asbestos and licensed waste the group has developed into a highquality specialist 
environmental support services and regeneration organisation providing innovative solutions which  
meet customer requirements safely and costeffectively 
this has been achieved through growth in key market sectors these include the public sector defence 
nuclear transport utilities construction and industrial and petrochemical markets which provide  
a diverse range of commercial opportunities a track record of winning and delivering some of the largest 
and most challenging projects around the country is testament to the technical expertise within the group
o verview
01 group financial highlights
02 our approach
04 at a glance
06 industry review
08 chairman’s statement
10 qa with sean nutley  
 chief executive
12 delivering value
business review
18  chief executive’s statement
25 financial review
26 key risks and mitigations  
governance
28   directors and senior 
management 
30 directors’ report
34  corporate governance  
and risk management
35  independent auditors’ report  
to the members of silverdell plc
financial statements
36 consolidated income statement
37  consolidated statement  
of comprehensive income
38 consolidated balance sheet
39  consolidated statement  
of changes in equity
40  consolidated statement  
of cash flows
41  notes to the consolidated 
financial statements
67 company balance sheet
68  notes to the company 
financial statements
71  advisors
72  information on asbestos 
related diseases
our online resources
silverdell communicates its 
financial performance as well as 
providing additional information 
about the group on its website  
wwwsilverdellplcuk
silverdell’s annual report and 
accounts are available to view 
online or to download from  
wwwsilverdellplcukreportsasp
other silverdell plc group 
companies can be found at  
wwwsilverdellcouk
wwwkitsonscouk
wwwredhillscouk
wwwsilverdellacademycouk
many of the statistics and facts concerning asbestos and mesothelioma have been sourced from the following hse health and safety 
executive 2010 mesothelioma deaths – the latest picture for great britain geographical analysis 19812005 and occupational analysis 
20022005 httpwwwhsegovukstatisticscausdismesotheliomafactsheetshtm world health organisation fact sheet no 343 july 2010 
hse website – asbestosrelated disease statistics frequently asked questions and answers – updated august 2010 action mesothelioma day 
2010 campaign guide – british lung foundation tuc 1422002 tuc asbestos advisory information the british lung foundation website
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8981silverdellar10covtp 3indd   2 131210   164118 overview business review governance financial statements
01 silverdell plc annual report and accounts 2010
highlights •  gross profit margin up 14 ppts at 259 2009 245
•  ebitda
1
 up 70 at £39m 2009 £23m
•  adjusted pretax profit
2
 up 317 at £25m 2009 £06m
•  statutory profit before tax of £18m 2009 loss of £69m
•  net debt down £04m at £43m 2009 £47m
•  gearing down 3 ppts at 23 2009 26
•  banking facilities renegotiated on improved terms to march 2014
•  administrative costs
2
 down 12 to £115m 2009 £131m
1
  earnings before interest tax depreciation and amortisation and also before goodwill  
impairment sharebased payments and nonrecurring items
2
 before nonrecurring items impairments and amortisation see note 11
g roup financial highlights 
 2010 2009
 £m £m
continuing operations
turnover 567 595
operating profitloss 25 57
adjusted operating profit
1
 31 16
adjusted operating margin
1
 55 27
 pence pence 
earnings per share  
adjusted basic
2
 09 08
basic 05 73
diluted 05 73
1
  before nonrecurring items impairments and amortisation see note 11
2
 before nonrecurring items impairments amortisation and sharebased payments see note 12
8981silverdellar10frttp 2indd   1 101210   105242 02 silverdell plc annual report and accounts 2010
our approach the group
silverdell provides managed environmental support 
services solutions for dealing with the remediation 
and treatment of hazardous wastes in particular 
asbestos the group comprises silverdell uk 
asbestos removal redhill analysts environmental 
consultancy kitsons environmental industrial  
decommissioning and safe training silverdell  
has over 30 years’ experience as an asbestos 
remediation contractor and the group has grown 
substantially benefiting from stringent legislation 
and regulation to become one of the largest 
operators in the environmental waste management 
sector with an unrivalled reputation for service  
and professionalism the group has a broad range 
of customers including major bluechip companies  
as well as central and local governments 
compliance
protecting lives
moral duty of care
legal compliance
creating value
8981silverdellar10frttp 2indd   2 101210   105242 overview business review governance financial statements
03 silverdell plc annual report and accounts 2010
protecting lives
our business is primarily focused on protecting  
the lives of people who are potentially at risk of 
contamination from exposure to asbestos and other 
hazardous waste materials wherever it is found 
our aim is to remove the material before any 
longterm damage is caused and to eliminate the 
risk of any further contamination
creating value
through building a business and becoming a leading 
provider of environmental services specialising in 
the removal of asbestos and other hazardous waste 
material for the public and private sectors both  
at home and internationally we will look to create 
value for our shareholders through a combination  
of organic and acquisitive growth which will include 
bolton acquisitions
duty of care  
reputation and protection 
our operatives have a moral duty of care to ensure 
that the removal and remediation of any hazardous 
waste material is undertaken without causing any 
longterm damage to the environment or public 
health another key aim of our business is to protect 
the reputation of our customers by employing the 
best people and finishing the job to the highest 
possible standard 
legal compliance
the control of asbestos regulations ‘car’ 2006 
particularly regulation 4 of car introduces the 
concept of a ‘duty to manage’ asbestos within 
nondomestic uk premises creating an obligation  
to assess and manage the risks from asbestos within 
relevant premises as an organisation we aim to be 
auditable open and transparent in everything we do
prot ecting li ves cr eating valu e
over the last few years the group has made significant progress 
consolidating its position as one of the uk’s preeminent hazardous 
waste management companies our new strategy ‘protecting lives 
creating value’ builds on that success and not only represents 
the next stage of the group’s development but underscores our 
commitment to our customers employees shareholders and 
stakeholder partners
about silverdell
silverdell plc – the only asbestos 
removal contractor to have 
successfully completed financial 
due diligence to become a plc
about asbestos
about 125 million 
people in the world  
are exposed to 
asbestos at the 
workplace
8981silverdellar10frttp 2indd   3 101210   105242 04 silverdell plc annual report and accounts 2010
at a glanc e
environmental 
services
asbestos surveying • 
management and removal
 land remediation and • 
demolition
removal of lead and  • 
other contaminants 
preconstruction and  • 
enabling works
environmental consultancy  • 
–  land carbon and energy 
management 
soil stabilisation • 
industrial  
solutions
scaffolding and access • 
solutions
thermal insulation  • 
tanks and lagging 
specialist coatings • 
painting and general • 
contracting
regulatory 
compliance
asbestos compliance • 
training ‘safe’ • 
compliance testing  • 
– legionella
waste management solutions • 
group structure
solutions
8981silverdellar10frttp 2indd   4 101210   105247 overview business review governance financial statements
05 silverdell plc annual report and accounts 2010
about silverdell
across the silverdell group  
22000 hours of safety training  
have been delivered
about asbestos
it is estimated that over 107000 
people worldwide die annually 
from asbestosrelated lung  
cancer mesothelioma and 
asbestosis resulting from 
occupational exposure
public
local authorities housing 
supporting local government facilities 
management teams and registered social 
landlords
health 
longterm framework relationships with  
nhs trusts
further and higher education 
maintaining the fabric of our schools colleges 
and universities
defence 
regional contracts with the ministry of defence
industrial
industrialengineering 
maintenance and refurbishment in the 
manufacturing and food processing plants 
petrochemical oil and gas 
maintenance of oil and gas terminals
rail engineering 
regeneration of stations and trackside assistance 
for network rail and the london underground
utilities and energy
utilities 
serving customers across the electricity gas  
and water sectors offering regional and national 
solutions
power 
nuclear decommissioning and dismantling  
as well as coalfired and gas power stations  
and support for installation of new sites
commercial and construction
retailleisure 
provide solutions for large and smallscale  
works as part of refurbishments for many major 
high street brands particularly for partially 
occupied buildings
construction 
enabling solutions are integrated planned  
and structured to support onsite teams
markets
8981silverdellar10frttp 2indd   5 101210   105247 06 silverdell plc annual report and accounts 2010
we service both the private and public sectors  
and have a number of bluechip customers as well  
as local and national government agencies our 
commitment to delivering a full service offering 
from frontend environmental consulting and 
compliance through to land remediation and 
decommissioning as well as the removal of other 
hazardous material reinforces silverdell as the 
number one choice in the industry
asbestos
there are three main types of asbestos blue  
brown and white renowned for its absorption 
tensile strength and its resistance to heat electrical 
and chemical damage it was used extensively in 
buildings and in engineered products in the uk  
until its complete ban in the uk in 1999 although 
stockpiles of white asbestos were still used until  
as recently as 2005 imports of blue and brown 
asbestos were banned in 1985 as asbestos does  
not occur naturally in the uk the volume of imports 
can be used as a proxy for the quantities of asbestos 
prevalent in the uk building stock
industry rev iew the market
asbestos is widely seen as a legacy from a time 
when rules and regulations governing the building 
industry were less stringent and onerous than they 
are today the true extent of the problem only 
comes to light as building stock is refurbished  
or demolished and the asbestos if detected has  
to be removed under controlled conditions by 
trained removal specialists which can often cause 
unnecessary disruption to work and building 
practices
the director general of the asbestos information 
centre estimates the total cost of removing asbestos 
in the uk to be between £1117 billion over the next 
40 years due to the nondiscretionary nature of  
the industry and the stringent legislation governing 
the removal of asbestos and other notifiable waste 
material we believe our services will be required  
for this period in order to manage the asbestos risk 
across the uk’s commercial built environment 
therefore the prevalence of asbestos is expected  
to remain a serious issue for the foreseeable future 
particularly as the legislation governing the removal 
of asbestos becomes more onerous and increasingly 
demanding
silverdell’s position in the market
total market size
silverdell’s market share
2000
50m
10
2010
250m
24
8981silverdellar10frttp 2indd   6 101210   105247 overview business review governance financial statements
07 silverdell plc annual report and accounts 2010
coming into contact with asbestos can prove fatal 
working on or near damaged asbestoscontaining 
materials or breathing in high levels of asbestos 
fibres which may be many hundreds of times that  
of environmental levels can increase the chances  
of getting an asbestosrelated disease when these 
fibres are inhaled they can cause serious diseases 
according to the health and safety executive ‘hse’ 
there are four main diseases caused by asbestos 
mesothelioma and lung cancer which are fatal 
asbestosis which is not always fatal but can be  
very debilitating and diffuse pleural thickening 
which is classed as nonfatal
legislation barriers to entry
despite current legislation and extensive eu 
regulation asbestos remains the greatest cause  
of fatalities in the workplace in the uk asbestos
related diseases claim around 4000 lives according 
to hse statistics 2009 every year as the incidences 
of asbestosis scarring of the lung and mesothelioma 
cancer of the lung lining have gradually risen  
so have the number of asbestosrelated claims  
in 2008 the insurance industry paid out more than 
£200m in asbestosrelated claims and the actuarial 
profession has warned that the cost of asbestos 
claims in the uk over the next 40 years will exceed 
£11 billion the board believes that rising claim 
volumes are likely to encourage employers in 
particular to manage asbestos in a more strategic 
fashion with the current mortality rate from 
asbestosrelated diseases expected to continue  
to rise until around 2025 source uk asbestos 
working party update 2009
as a consequence customers are now imposing 
increasingly strict criteria in selecting their preferred 
partners in particular customers are looking for 
partners who are capable of providing a full range  
of environmental services this process is in turn 
creating significant barriers to entry in particular 
there is a widespread requirement for reputation 
and credibility which offsets low startup costs  
the ability to offer scale and a full service capability 
which is critical if a provider is to have full access  
to the market a strong industry track record  
– a prerequisite for cost effective insurance cover 
among other matters the hazardous nature of 
asbestos and the litigation risk and importantly  
a three year hse asbestos licence critical where 
customers are seeking a term framework of one 
year or more
the future
it is estimated that asbestos removal in the uk  
will peak in 2025 with 85 of all asbestos having 
been removed by 2050 but these figures are  
based on conservative estimates more stringent 
environmental legislation recently introduced will 
increase further the demands for specialist removal 
and remediation services since 2002 it is estimated 
that the asbestos consultancy and remediation 
market has experienced a compound annual growth 
rate of approximately 25 to meet the needs  
of our growing list of customers silverdell has 
developed its business by increasing its supplier 
relationships and framework contracts with local 
authorities utilities and insurance firms and by 
increasing the volume of work performed under 
existing customer contracts 
we believe that the next two decades will see a 
significant growth in demand for specialist services 
in the removal and remediation area meanwhile 
tight legislation will ensure that there will be fewer 
specialist firms able to meet the growing demand 
and reinforces silverdell’s position as the number 
one choice in the industry
about silverdell
senior managers received  
over 500 hours of leadership 
coaching in 2010
about asbestos
approximately 4000 
people die annually in 
the uk from asbestos 
related diseases
8981silverdellar10frttp 2indd   7 101210   105247 08 silverdell plc annual report and accounts 2010
overview
i am pleased to report another year of progress and 
a strong group performance for 2010 
during the last twelve months the group’s trading 
and financial performance has continued to improve 
and despite the challenging economic backdrop 
silverdell has been able to build on its position as 
the uk’s leading specialist environmental support 
service business with a much stronger balance 
sheet and reduced cost base the group is financially 
in much better shape and ready for the next stage  
of its development 
strategy
as part of a widespread review of the business we 
unveiled in june a new strategy ‘protecting lives 
creating value’ which is an exciting strategy 
designed to take the group forward and at the 
same time provide greater resilience in these 
challenging economic times a greater focus on 
repeat order business and longterm contracts 
should provide us with a higher level of longterm 
earnings visibility
in his chief executive’s statement sean nutley 
outlines the strategy in more detail and how  
it is already being implemented
“  i am pleased to report 
another year of progress 
and a strong group 
performance for 2010”  
 
stuart doughty 
executive chairman 
chairman’s stat ement
8981silverdellar10frttp 2indd   8 101210   105250 overview business review governance financial statements
09 silverdell plc annual report and accounts 2010
group highlights
•  gross profit margin up 14 ppts at 259 2009 245
•  ebitda
1
 up 70 at £39m 2009 £23m
•  adjusted pretax profit
2
 up 317 at £25m 2009 £06m
•  net debt down £04m at £43m 2009 £47m
1
  earnings before interest tax depreciation and amortisation and also before goodwill  
impairment sharebased payments and nonrecurring items
2
 before nonrecurring items impairments and amortisation see note 11
silverdell is now in a strong position to take 
advantage of new opportunities arising from ever 
more stringent legislation governing the industry 
and which should help grow our market position 
both here and overseas where bluechip companies 
under their corporate and social responsibility 
obligations require worldwide asbestos management 
processes to be consistent with those adopted  
in the uk
despite concern surrounding the uk government’s 
capital programme for the public sector we believe 
maintenance and compliance solutions will still be 
required for large existing property portfolios we 
will seek to exploit our wider geographic coverage  
to its best commercial advantage particularly  
in light of increasingly onerous legislation and 
regulation governing the handling and treatment  
of asbestos and other notifiable waste
results
revenues for the year ended 30 september were 
£567m 2009 £595m with adjusted ebitda  
of £39m 2009 £23m and adjusted pretax profit 
of £25m 2009 £06m the order book at  
31 october 2010 remains strong with £62m 2009 
£57m restated
1
 at 31 october 2009 with £34m 
secured for 2011 at the year end the company’s 
net debt was £43m 2009 £47m on the back of 
continued delivery of operating cash flows and the 
tight control over capital expenditure
1
  the group’s method of calculating the order book was changed during 
the year to include estimates of future revenues for the remaining 
term of framework contracts previously the order book only included 
framework contract revenues for the current financial year in order  
to aid comparability the comparative order book figures disclosed in 
the group’s last annual report have been restated
board  people
we have made a great deal of progress over the  
last two years and the group is well placed to take 
advantage of the opportunities that lie ahead  
we also have a first rate leadership team led by 
sean nutley and i believe it is an appropriate time 
for me to relinquish my executive responsibilities  
to sean i will therefore become nonexecutive 
chairman with effect from 1 january 2011 and look 
forward to continuing to play a role in the group’s 
development in that capacity
our people and culture are an integral part of who 
we are and embody the duty of care ethos that  
is so important to how we run our business
on behalf of the board i would like to express our 
gratitude to everyone in the group for their hard 
work and dedication and congratulate them on 
delivering an excellent set of results in extremely 
challenging economic conditions 
summary
this was a very good overall performance and  
we can be confident that our position in markets 
underpinned by the ongoing need for essential 
remediation and removal work will continue to 
stand us in good stead and i look forward to 
reporting on our progress in due course
stuart doughty
executive chairman 
about silverdell
over 3000 tonnes of asbestos
containing materials will  
be removed from the group’s 
largest nuclear contract
about asbestos
in 2008 the latest year 
with published data 
there were 2249 
mesothelioma deaths
8981silverdellar10frttp 2indd   9 101210   105250 10 silverdell plc annual report and accounts 2010
sean nutley
qa w ith chief executive
you’ve been at silverdell for over 20 years how has 
the industry changed in that time
the industry has changed significantly in the 20 years 
since i joined silverdell as an asbestos operative  
and silverdell has contributed hugely to that change 
we have set higher and higher standards by 
continually looking to build on what we have done 
we are acutely aware of the legal requirements  
and we naturally adhere to them while at the same 
time looking at ways of working over and above  
the regulation requirements 
“silverdell has moved the industry forward and  
has improved the sector by setting higher standards 
by continually looking to upgrade and build on  
what it has done”
what is the biggest challenge facing the industry 
right now
the biggest challenge facing the industry is making 
people aware of the asbestos problem asbestos  
is seen as yesterday’s problem and a throwback to  
a time when building standards weren’t as strict as 
they are now but the problem is very real and has 
the capacity to affect more people than we think 
asbestos is the biggest work place killer in the uk 
and around 4000 people die from asbestosrelated 
disease each year 
you’ve been chief executive for two years what’s 
the most important aspect of your job 
health and safety is paramount to us and it’s 
integral to what we do we risk exposure to asbestos 
and other waste material every day therefore 
maintaining a strong hs record is probably the 
most important aspect of the job it also gives our 
customers piece of mind i’ve also been in the 
industry a long time and understand the importance 
of maintaining a strong customer focus at a strategic 
level this will ultimately drive our performance 
deliver shareholder value and help us fulfil our 
potential
why ‘protecting lives creating value’
the real value or reward of this strategy is somebody 
not dying as a consequence of the work we carry 
out that is why strategy is important for us the 
value is twofold it’s about creating shareholder 
value and it’s also how it makes you feel when 
you’ve done a job and you’ve made a difference 
which is not financially related but arguably more 
fulfilling ‘protecting lives creating value’ resonates 
with what we do which is fundamentally the 
business of protecting life
what more could be done to cut the numbers  
of fatalities from asbestos
estimated deaths from asbestos at peak 2025 will  
be between 6000 and 10000 people per year  
so asbestos awareness is key from employers  
to employees and right across the general public  
we need to make people aware that it is not  
a problem of the past it’s still a problem today  
and it’s going to be around for many years 
“we are auditable open and transparent i think  
we can demonstrate that better than any other 
company in the asbestos industry” 
8981silverdellar10frttp 2indd   10 101210   105253 overview business review governance financial statements
11 silverdell plc annual report and accounts 2010
qa w ith chief executive
what is happening with current legislation 
governing asbestos and how is it changing 
the legislation is fundamentally the same but it’s 
more about compliance with health and safety  
and people being made aware of their own 
obligations we are also seeing evidence of 
companies being fined for failure to comply with  
the asbestos regulations asbestos regulations  
apply to any owneroccupier who has asbestos in 
their premises it does not just apply purely to the 
asbestos industry
what can silverdell do better than any other 
company in the asbestos industry
we are auditable open and transparent and i think 
we can demonstrate that better than any other 
company in the asbestos sector we are the largest 
quoted company doing what we do in the uk and 
we have a much greater pool of resources to deal 
with any size of contract 
“a business that can get by is a good business a 
business that can do well in a recession is exceptional 
and i think we will do more than just get by”
will the cuts in public sector spending adversely 
impact the business
i am looking forward to the challenges ahead 
because i think we have an opportunity to show just 
how resilient we are as a business it will be an even 
tougher environment than we have seen before 
our order book split is 65 private and 35 public 
sector i think the balance of our work streams 
across the different sectors is spot on
how much of silverdell’s business is overseas  
and do you expect this to grow
we expect to secure some overseas work in 2011 
but it will be more projects based rather than us 
setting up an overseas operation mostly through us 
following our bluechip client base it is considered 
that the uk leads the world in its expertise in 
asbestos removal and with the growing global csr 
requirements more and more overseas companies 
are gravitating towards the uk due its expertise  
and experience our skills travel well and i am more 
than happy to take those skills abroad because  
it fits with our strategy 
where and how do you see the business growing  
in the next 12 months
any significant organic growth we have right now  
is most likely going to be overseas it could also be 
through a uk acquisition there are some interesting 
businesses out there that we would like to have  
a look at 
what are you doing with the british lung 
foundation
the british lung foundation is our chosen charity 
partner we are working together to protect life 
through asbestos awareness i am really excited 
about working with them and i am looking forward 
to us contributing to their work our employees  
are busy across the business organising fund raising 
initiatives including a sky dive next year
about silverdell
mark roberts silverdell group  
sales director enjoys his  
second year as chairman of the 
asbestos removal contractors 
association ‘arca’
about asbestos
someone dies every 
four hours from 
mesothelioma in  
the uk
8981silverdellar10frttp 2indd   11 101210   105253 12 silverdell plc annual report and accounts 2010
de li vering valu e
prince charles hospital 
refurbishment
he alth and 
we llb eing c entr e 
re furbishm ent  
to prot ect lif e 
silverdell uk limited is a contracting division of 
silverdell plc specialising in asbestos management 
and remediation works prince charles hospital 
located in merthyr tydfil wales has approximately 
430 beds and has secured funding to be spent on 
much needed ward refurbishment work including 
removing asbestos and addressing essential health 
and safety issues to meet modern health standards 
the total value of the redevelopment is £42m as 
part of the designed for life  the strategy adopted 
in wales to create world class healthcare and social 
services by 2015
silverdell was appointed by principal contractor 
wilmott dixon for the refurbishment to undertake 
the asbestos removal programme the complete 
works are being carried out in 6 phases all of which 
will be carried out whilst the hospital remains fully 
operational silverdell’s core responsibilities on site 
form part of the ward refurbishment programme 
which in turn is part of the ‘designed for life’ 
programme – a strategy developed to improve the 
quality of infrastructure within the nhs in wales
paul lane senior building manager for willmott 
dixon said “it is a fantastic project to work on 
because the refurbishment will give a new lease  
of life to these important community facilities  
the hospital provides acute emergency and elective 
medical and surgical services and seven operating 
theatres the hospital also provides subregional 
oral and maxillo facial services a full range of locally 
provided and visiting specialist outpatient services 
and has an extensive range of diagnostic services 
and facilities including 64 slice ct nuclear medicine 
and mri state of the art facilities are provided 
within the radiology department and the hospital  
is close to being film less with digital images and 
reports available to clinicians across the site many 
of the trust’s corporate and management offices  
are located on this site along with clinical staff 
residences”
in addition to the ward refurbishment programme 
laing o’rourke are managing the foyer development 
works to improve access to the hospital together 
with refurbishing the existing ae facility which  
will provide a new minors assessment facility and 
orthopaedic outpatients department silverdell  
are supporting both primary contractors in their 
work to undertake asbestos removal throughout  
the building in line with the planned scope of works
 
8981silverdellar10frttp 2indd   12 101210   105255 13 silverdell plc annual report and accounts 2010
silverdell’s regional director dean howe said 
“during peak activities silverdell have up to 50 full 
time operatives and managers on site coordinating 
the remediation works we have been on site since 
2007 and have upheld an accident free site in all  
that time silverdell have delivered a comprehensive 
safety strategy that protects both its own personnel 
and the hospital staff visitors and patients in line 
with our duty to protect people assets and 
reputation through this strategy we have carried 
out works with minimal disruption to daily life in the 
hospital based on clear safety principles silverdell 
have supported both primary contractors in their 
objective of a seamless delivery of transformation 
and improvement creating a vibrant and efficient 
hospital”
overview business review governance financial statements
project 
transformation  
and improvement 
to key community 
health facility
people 
providing  
peace of mind 
to partners and 
stakeholders 
business 
asbestos 
remediation and 
enabling works 
8981silverdellar10frttp 2indd   13 101210   105257 14 silverdell plc annual report and accounts 2010
aspire defence asbestos roadshow
de li vering valu e continued
 imp r o ving 
conditions for  
th e british army
8981silverdellar10frttp 2indd   14 101210   105257 silverdell plc annual report and accounts 2010 15
as a part of the mod’s project allenbyconnaught 
aspire defence is transforming the army garrisons 
across aldershot and the salisbury plain by  
providing new and refurbished living and working 
accommodation for nearly 19000 soldiers aspire 
defence has therefore become a key stakeholder  
in the safe removal and management of asbestos 
across these garrisons through its facilities 
management arm of the business aspire defence 
services limited adsl together with their selected 
partners redhills silverdell and safe they have 
been undertaking all necessary asbestos 
management activities across the portfolio to 
ensure that they comply with current statutory 
legislative requirements 
during september 2010 adsl redhills silverdell 
and safe embarked on a series of asbestos 
roadshows to showcase the robust asbestos 
management in place the event attracted 
personnel from a variety of employers and 
disciplines across the garrisons including the 
military and soldiers returning from operations 
project managers cooks cleaners mess managers 
and construction contractors 
here awareness was further raised of the extensive 
infrastructure in place to support the proactive 
management of asbestos across the garrisons this 
included a variety of practical demonstrations and 
interactive activities supported by our experienced 
consultants 
the success of the asbestos roadshow was evident 
by the 150 strong daily footfall for each onsite 
session over the four consecutive days together 
with the positive feedback received from attendees 
the roadshows were valuable to all in particular  
the charity raffle held in support of combat stress  
a leading military charity specialising in the care  
of veterans’ mental health
overview business review governance financial statements
project 
showcase  
robust asbestos 
management
people 
600 attendees
business 
transforming  
the army garrisons 
across aldershot 
and the salisbury 
plain
8981silverdellar10frttp 2indd   15 101210   105258 16 silverdell plc annual report and accounts 2010
working on the project which commenced in 2009 
kitsons have provided access solutions above the 
swimming pool above the theatre seats around  
the ice rink and up into the flytower above the 
stage to enable remediation and refurbishment 
works asbestos remediation have proven to be an 
important part of the enabling works where kitsons 
have used detailed method statements to ensure 
protection commitment to quality and maintain 
morgan sindall’s strong reputation for excellence 
paul dolan divisional director for kitsons said  
“the range of works programmed have been varied 
and complex effective management and planning 
has been critical to ensure compliance safe working 
conditions whilst working to a tight budget the 
value of the works for the project will be in the 
order of £1m on completion” 
duncan kidd operations manager for morgan 
sindall said “we see the centre as being a significant 
boost to both local and regional communities 
kitsons have been a key partner working 
collaboratively to enable the centre to reopen  
to the public in early 2011”
kitsons were appointed by the principal contractors 
morgan sindall to provide access solutions and 
remove asbestos containing materials as part of  
the refurbishment of billingham forum this large 
multidisciplinary leisure complex refurbishment 
originally built in the 1960’s will retain and enhance 
the existing infrastructure 
 
duncan kidd operations manager for morgan 
sindall said “the pool is being modified to standard 
size as part of the development programme with  
an additional training pool  retained learner pool 
changing rooms toilets  spectator areas are  
being refurbished the gym is to be extended  
 improved changing rooms will be provided 
structural improvements are being carried out to 
the theatre  a new entrance is being created the 
ice rink will benefit from a new ice pad an improved 
café and upgrading of the spectator area toilets  
 skate hire area and the indoor 2 lane bowls court 
will be enhanced through decoration  provision  
of a new bowling floor”
bre athing n ew lif e 
into a r egional 
le isur e facility de li vering valu e continued
billingham forum community  
centre development
8981silverdellar10frttp 2indd   16 101210   105259 17 silverdell plc annual report and accounts 2010
overview business review governance financial statements
17
project 
leisure facility 
refurbishment  
for community
business
access and  
asbestos  
enabling  
works
people 
protecting 
reputation for 
community 
contractors  
and client
8981silverdellar10frttp 2indd   17 101210   105300 18 silverdell plc annual report and accounts 2010
chief executive’s stat ement
“ we are building a business 
that should be resilient to 
the challenging economic 
conditions but will also be 
well placed to benefit from 
the economic upturn when 
it arrives” 
 
sean nutley 
chief executive
overview
our markets remain competitive particularly in 
terms of the public sector but we are confident  
that we are well placed to benefit from ongoing 
changes in the industry with regards to legislation 
surrounding asbestos and expect growth in the 
private sector to counteract any drop in activity  
in the public sector
the uk asbestos removal industry is fragmented 
and competition comes from a number of smaller 
licensed operators looking to undercut on price 
however silverdell’s competitive advantage has 
been built on our ability to understand the business 
needs of our customers who are increasingly looking 
for delivery partners with a high level of expertise 
and technical knowhow to complete the job safely 
quickly and effectively
8981silverdellar10frttp 2indd   18 101210   105302 overview business review governance financial statements
19 silverdell plc annual report and accounts 2010
silverdell’s competitive advantage has been 
developed over many years and is predicated on  
our ability to understand the complex business 
needs of our customers and to develop safe cost 
effective and innovative solutions to meet their 
business requirements our commitment to 
delivering a fullservice offering from premium 
consulting through to construction services and 
remediation reinforces silverdell’s position as the 
number one choice for the removal of asbestos  
and other hazardous or notifiable material 
as a consequence we typically now contract 
directly with a greater proportion of our bluechip 
client base 
there are fewer and fewer companies with the size 
and scale to be able to take on the major jobs and 
which also meet the exacting standards and 
demands of our customers
we have delivered a good performance 
consolidating our position as the uk’s preeminent 
remover of asbestos and other notifiable waste 
material we have also continued to build on our 
excellent track record of delivering environmental 
services solutions across a diverse number of 
markets
strategic review
we have made significant progress in consolidating 
our position as one of the uk’s leading specialist 
environmental support service companies by 
building market share and extending our range  
of services and capabilities
building on that success we unveiled in june an 
updated strategy ‘protecting lives creating value’ 
that has been designed for the next stage of our 
corporate development 
customers are very often looking for a onestop 
service partner when it comes to procuring services 
we therefore differentiate ourselves from the 
competition by striving to provide a premium 
service across a spectrum of complementary 
services from on site consultancy through to 
construction and remediation
the split between the public and private sector  
is currently 35 and 65 respectively which is in 
line with our strategy our long list of bluechip 
customers includes oil majors a large broadcasting 
organisation as well as large high street retailers  
and banks 
we will also seek further penetration and 
opportunities in the public sector which has an 
enormous portfolio of properties to service while 
we expect the public sector to be affected by the 
recent spending cuts the detection of asbestos falls 
under nondiscretionary spending which means  
it has to be treated with the upmost care 
‘protecting lives creating value’
protecting lives and creating value is central to  
what we are striving to achieve as a group with the 
cost of asbestosrelated claims expected to exceed 
£11 billion over the next 40 years providing us  
with considerable opportunities over the longterm 
our strategy is to move the business from being  
a leading asbestos removal contractor and 
remediation business to provide high quality 
specialist environmental support services and 
regeneration and delivering innovative solutions 
which meet our clients’ requirements safely and  
cost effectively
back in june the board set the group a number  
of challenging targets for the mediumterm
•  to grow our order book ahead of organic  
revenue growth
•  to drive revenue growth year on year ahead  
of market growth
•  to grow the ebitda margin to 10
•  to maintain working capital at not more  
than one month’s revenue and
•  to grow the consulting business to 15 of  
group revenues
about silverdell
redhills opens new offices  
in glasgow and reading
about asbestos
experts predict that we will face  
a mesothelioma epidemic 
between 2011 and 2015 as the 
death toll rises over the next 
decade
8981silverdellar10frttp 2indd   19 101210   105303 20 silverdell plc annual report and accounts 2010
i am pleased to report that we are making 
considerable progress in all of these areas the 
strategy has been designed to deliver longterm 
profitable growth and build market share in our  
core markets while developing our consulting and 
remediation brands in the regulatory compliance 
and environmental markets as a premium service 
this also ensures that our customers service 
partners staff suppliers and investors have peace  
of mind when choosing silverdell
in order to achieve this our strategic approach has 
been to drive performance through
•  further development of our capabilities in other 
regulated environmental and compliance markets
•  development of our position in industrial and 
power generation markets through longerterm 
framework contracts
•  development of our existing customer 
relationships to generate new business 
particularly in consulting and
•  leveraging of our capabilities in consultancy  
to other areas of the business
w hy a ‘duty of care’
the ‘duty of care’ ethos permeates everything we 
do as a business from the products and services  
we offer to our clients right through to the attention 
to detail our dedicated team of operatives give to 
the contracts we undertake
the ‘protecting lives creating value’ strategy  
has been designed to empower and retain the best 
people under a common purpose by better 
engagement with our employees and customers  
we can create a culture that will bring longterm 
rewards for all of our stakeholders 
in most cases we are protecting the lives of those 
people that are working within a particular property 
or asset but importantly we are also working to 
protect the reputation of our customers 
chief executive’s stat ement continued
objectives
for the year ahead we plan to further strengthen 
the silverdell business and create shareholder 
value through
the continued rollout of our ‘protecting lives • 
creating value’ strategy internally and externally 
developing our product and geographic • 
capability through new service offerings and 
possibly through bolton acquisitions
improving existing client relationships by offering • 
bundled services with unmatched quality and
continuing to improve cost efficiencies and  • 
cash management across the group
summary
our ‘protecting lives creating value’ strategy is 
designed to take the company on to the next stage 
of its development we are building a business that 
should be resilient to the challenging economic 
conditions but will also be well placed to benefit 
from the economic upturn when it arrives
the economic environment remains challenging  
but with a strong operational business a much 
reduced cost base and a strategy for the ongoing 
development of the group we are looking to the 
future with confidence
strategy
8981silverdellar10frttp 2indd   20 101210   105303 overview business review governance financial statements
21 silverdell plc annual report and accounts 2010
what we said
to grow the order book ahead • 
of organic revenue growth 
 
 
 
 
 
 
 
 
 
to drive revenue growth year • 
on year ahead of market 
growth 
 
 
 
 
 
 
 
 
 
 
grow ebitda margins to 10 • 
 
 
 
 
 
 
maintain working capital  • 
at one month’s revenue 
 
grow consulting revenues  • 
to 15 of group revenues
what we’ve done
on track despite the • 
economic environment we 
have improved our order book 
since last year more than 90 
of our future order book is 
comprised of framework or 
costplus type relationships 
backed by contracts normally 
between three and five years 
in length this provides 
greater visibility for the future 
on track the uk specialist • 
asbestos market has seen 
further contraction this year 
to approximately £250m  
from last year’s estimate of 
£300m primarily as a result  
of retrenchment in property 
development and retail 
refurbishment as well as some 
nervousness within the public 
sector to commit maintenance 
expenditure prior to the 
spending review 
we made good progress here • 
during 2010 with the group 
ebitda margin increasing  
to 69 2009 39 
 
 
 
we continued to achieve this • 
in 2010 our focus on cash  
is relentless 
the consulting business has • 
been reshaped and is now 
delivering greater profitability 
with excellent growth 
opportunities consulting is 
about 11 of group revenues
the future
we retain the capability to • 
carry out large fixed price 
project work our strategy  
is to win work in the uk and 
overseas that will underpin 
our longterm growth this is 
our most challenging strategic 
objective and we remain 
committed to its delivery 
 
 
the board believes that the • 
group is well placed to take 
advantage of a recovery in  
the market and in its ability  
to grow both organically  
and by acquisition in the 
immediate term the organic 
growth opportunities within 
the specialist asbestos market 
appear strongest outside  
the uk 
 
 
in the medium term silverdell • 
considers that its current 
overhead structure can 
support a bigger business  
such that improvements at  
the gross profit level will fall 
through to ebitda 
management of cash and • 
working capital will remain  
a strategic priority 
our plan for the medium term • 
remains to grow the consulting 
division both organically and 
by acquisition 
about silverdell
redhills exceed environmental 
targets in 2009
about asbestos
30000 people are thought to 
have died of mesothelioma 
already a further 90000 are 
expected to die of the disease  
by 2050
8981silverdellar10frttp 2indd   21 101210   105303 22 silverdell plc annual report and accounts 2010
public sector
the public sector is a key part of our portfolio of 
work there is a substantial asbestos legacy across 
the whole range of public sector property including 
local government buildings and social housing 
schools colleges and hospitals as well as defence 
establishments the public sector spend on 
maintenance and refurbishment projects exceeds 
£20 billion per year in addition to specific new build 
projects such as ‘building schools for the future’ 
for silverdell plc the share of total remediation 
revenues generated by public sector work increased 
39 in 2010 2009 28 while the share of 
consulting revenues was 52 2009 60
local government 
we have been successful in winning a number of 
local government framework contracts although the 
local government and housing share of remediation 
revenues was flat at 11 2009 11 we have 
retained a number of existing contracts and won 
new ones specifically in greater manchester  
where we now work for the central procurement 
consortium significant contract works are also 
carried out in north wales london west midlands 
and scotland our unique offering which focuses  
on the needs of the customer and the welfare  
of its workforce has been key to our success in 
winning a 4 year contract with one of the uk’s 
leading procurement consortiums providing housing 
remediation services across the north west 
with regard to consulting we have had an excellent 
year winning contracts with a number of social 
landlords as well as local and central government 
agencies providing annual and bespoke surveys 
project management as well as analytical services 
local government revenues represented 21 of  
our total consulting revenues in 2010 2009 15 
government spending pressure on registered social 
landlords is likely to result in increased spending on 
maintenance and refurbishment which represent  
a revenue opportunity for both the remediation 
and consulting divisions
business review
chief executive’s stat ement continued
consulting 2010
2010 2009
1 local government 11 11
2 defence 17 13
3 health  education 11 4
4 power utilities industrial 29 34
5 construction 15 12
6 retail rail commercial 18 26
remediation 2010
1
2
3
4
5
6
1
2
3
4
5
6
2010 2009
1 local government 21 15
2 defence 11 22
3 health  education 21 23
4 power utilities industrial 10 6
5 construction 5 4
6 retail rail commercial 33 30
8981silverdellar10frttp 2indd   22 101210   105303 overview business review governance financial statements
23 silverdell plc annual report and accounts 2010
health and education
the share of total remediation revenues from 
health and education rose to 11 2009 4 while 
the ‘building schools for the future’ programme has 
been reined in during the year we anticipate that 
the need to refurbish older school buildings will now 
be required to keep them habitable similarly we 
are working with a number of universities across  
the uk to ensure that their property estate is fit for 
purpose our approach which is focused around 
providing a valueadded service that is structured 
directly according to the customer’s needs means 
that we have continued to develop our customer 
base with a number of new contract wins we  
have also been involved in significant investments  
to upgrade ageing health facilities such as the 
manchester joint hospitals project as well as 
winning a 3 year maintenance term contract with  
an nhs trust in the west of scotland we continue 
to work with nhs trusts across the united kingdom 
to ensure a safer environment for workers and 
patients 
for consulting health and education work made  
up 21 of its revenues 2009 23 with key work 
wins in the south south east and western regions 
which all secured new healthcare customers
defence
the defence share of revenues for remediation  
was 17 2009 13 and for consulting it was  
11 2009 22 the main element of our defence 
operations is the regional prime contracts 
relationship which is a 7 year framework 
arrangement silverdell plc is working with aspire 
defence as part of a 35 year plan to develop and 
refurbish much of the mod estate also under our 
kitsons brand we offer specialist environmental 
support to a major nuclear research establishment 
as it seeks to modernise its technical facilities 
the consulting segment has also carried out works 
within several key locations for the defence sector 
including its ongoing works on salisbury plain and 
also with garrisons in kent
private sector
power generation utilities and industrial
in 2010 29 2009 34 of silverdell plc’s 
remediation revenues were derived from power 
generation utilities and industrial customers  
key to this was kitsons’ role in the construction  
and commissioning of a new power station in the 
south west as well as remediation works at a power 
generation site in kent as part of a number of 
longstanding relationships within the power oil  
and gas sector we have also continued to build on 
our reputation as a key industrial services provider 
to the oil gas and nuclear industries during the  
year we have won a prestigious industrial services 
contract at a strategic gas terminal in wales as  
well as the contract to provide thermal insulation 
services to a palm oil refinery in the north west
silverdell plc is the incumbent provider of asbestos 
removals and industrial scaffolding services at 
chapelcross power station in a collaborative 
decommissioning solution with magnox north to 
remove more than 3300 tonnes of asbestos hazard
with regard to utilities the nationwide programme 
to upgrade the utilities infrastructure presents an 
opportunity for silverdell plc to develop its service 
offering both through standalone projects and  
as a part of a number of ongoing maintenance 
frameworks with water and gas providers across  
the united kingdom
key industrial clients include manufacturing 
businesses where we have a number of framework 
relationships including a strategic investment for  
a major pharmaceuticals company in scotland
in our consulting business power generation 
utilities and industrial customers comprised 10 
2009 6 of revenues redhills commenced a new 
2 year framework contract at a nuclear power 
facility in scotland and continues to work within 
power stations across the west several national 
utilities contracts are serviced as well as electricity 
and water suppliers across the south of england
about silverdell
15 of the workforce of kitsons  
have served over 15 years
about asbestos
there are 33  
more deaths from 
mesothelioma than 
from cervical cancer
8981silverdellar10frttp 2indd   23 101210   105303 24 silverdell plc annual report and accounts 2010
business review continued
chief executive’s stat ement continued
construction
construction’s share of total remediation revenues 
rose in 2010 to 15 2009 12 while the 
construction sector generally has seen a continued 
slowdown during 2010 silverdell plc benefitted 
from a small number of major contracts a 
significant contribution to this performance was 
works carried out for shell uk at a landmark building 
in london we have also carried out fixed price 
works for a major west london hotel during the 
year both of these contracts saw the recognition  
by our customers of the benefits of the single source 
solution that silverdell plc provides as a result of 
this consulting’s construction share of revenues 
rose to 5 2009 4
retail rail commercial other
for 2010 this sector made up 18 2009 26  
of remediation segment revenues and 33  
2009 30 of the consulting segment revenues
retail store refurbishment forms a key part of our 
remediation strategy and silverdell plc is well 
positioned for a recovery in this market similarly 
we have developed our consulting offering to our 
retail customers winning works with a major 
supermarket retailer during the year we are 
increasingly working with outsourced facilities 
maintenance providers such as carillion and  
telereal trillium to provide a seamless service that 
ensures the customer’s property is maintained to 
the highest standards of asbestos safety with the 
minimum of disruption to their own business
our work with key rail operators is a small but 
highly specialised part of our service offering and 
the commitment of the new coalition government 
to the delivery of a number of key rail infrastructure 
projects present silverdell plc with excellent 
opportunities in both remediation and consulting 
within consulting we have opened a new office  
in newcastle to support the local rail contract
silverdell uk has continued to provide services to  
a number of major insurance companies conducting 
remediation and consulting operations following 
accidental damage silverdell uk provides a network 
that gives nationwide coverage and offers a 247 
emergency callout to both residential and 
commercial properties the key to the success of 
this relationship has been excellent responsiveness 
without compromise to our high quality service 
provision
within our consulting business we provide a robust 
consultancy service to a rail system within the  
north east as well as a national contract with a rail 
fm company we provide consultancy services to  
a number of major insurance companies throughout 
the uk and trade strongly with many national well 
established retailers including opticians chemists 
supermarkets and banks
sean nutley
chief executive
8981silverdellar10frttp 2indd   24 101210   105303 overview business review governance financial statements
25 silverdell plc annual report and accounts 2010
“ the group has renegotiated  
its loan facilities on 
improved terms less 
constraining covenants  
and over a longer term” 
 
ian johnson 
chief financial officer
financial r eview group turnover decreased slightly by 47 to 
£567m 2009 £595m however gross profit was 
increased slightly to £147m 2009 £146m and the 
gross margin percentage therefore increased by  
14 percentage points ppts to 259 2009 245 
administration costs fell by £15m to £116m  
2009 £131m operating profit
1
 almost doubled 
compared to last year at £31m 2009 £16m 
finance charges were £07m 2009 £12m as a 
result of lower average levels of net debt and lower 
arrangement fee amortisation profit before tax
1
 
improved by 317 at £25m 2009 £06m
the tax charge for the year was £11m 2009 tax 
credit of £08m the effective corporation tax rate 
is 60 2009 120 but is 37 excluding prior year 
adjustments 2009 9 profit after tax
1
 was £07m 
2009 £07m and adjusted earnings per share
2
 
was up slightly on last year at 09 pence 2009  
08 pence as for the prior year the directors do 
not propose a dividend be paid for the year ended 
30 september 2010 
net debt at 30 september 2010 was down by £04m 
at £43m 2009 £47m whilst gearing was down  
3 ppts at 23 2009 26 within this a working 
capital outflow of £20m 2009 inflow of £52m 
was driven by the timing of certain traderelated 
accruals that were held at the end of 2009 capital 
expenditure was flat compared to last year at  
£04m 2009 £04m the group renegotiated its 
loan facilities during the year on improved terms 
less constraining covenant ratios and over a longer
term the group now has sufficient facilities to fund 
its plans out to march 2014
following the exercise in 2008 to reduce the par 
value of one ordinary share from 10 pence to  
1 pence and resultant creation of a new class  
of 1 pence deferred shares we effected the 
cancellation of these deferred shares during 2010  
as promised last year
the group uses derivatives designed to protect  
it from the interest rate risk that arises in respect  
of its borrowings for the majority of which the 
group applied hedge accounting in accordance with 
ias 39 at 30 september 2010 a liability was held  
on the balance sheet of £01m 2009 £02m in 
respect of these derivatives all assets liabilities 
including borrowings and cash flows in the year 
were denominated in sterling and accordingly the 
group did not have an exposure to currency risk and 
has no related hedging products a full discussion  
of the financial risks to which the group is exposed 
along with the definitions of its key performance 
indicators is included in the statements on key  
risks and mitigations on page 26 and corporate 
governance and risk management on page 34
ian johnson
chief financial officer 
1
  before nonrecurring items impairments and amortisation  
see note 11
2
  before nonrecurring items impairments amortisation  
and sharebased payments see note 12
8981silverdellar10frttp 2indd   25 101210   105304 26 silverdell plc annual report and accounts 2010
acquisition effectiveness
the group’s strategy acknowledges that acquisitions 
may be required to enhance the group’s capability 
in certain areas there is a risk that an acquisition 
will fail to meet its strategic financial or operational 
objectives the board has set key investment criteria 
that must be made by any acquisition target all 
appropriate due diligence will be performed and 
contractual protections sought from the vendor  
to safeguard the group’s interests the board will 
review the requirement to retain the target’s key 
personnel and detailed integration plans will be put 
in place for implementation post acquisition
people risk
our people are our greatest asset and provide the 
basis for our competitive advantage we will seek  
to ensure that our operatives are trained through 
the application of a comprehensive training strategy 
and a policy that offers sufficient remuneration and 
incentives to retain our best people consistent with 
the market rates recruitment processes are applied 
that are appropriate to the seniority of the position 
being filled and to minimise the risk of an unsuitable 
appointment
financial risks
interest rate risk
the group finances its operations through a mix  
of equity and debt funding all borrowings are 
denominated in sterling predominantly at variable 
rates of interest accordingly the group has  
hedged a proportion of its interest costs through  
an interest rate swap as mitigation against the risk  
of rising variable rates the board reviews the 
appropriateness of this policy from time to time 
taking into consideration expectations for future 
interest rates and the underlying level of 
borrowings
credit including counterparty risk
credit risk arises from the risk of having credit 
exposures to customers including outstanding 
receivables and retentions the group monitors the 
credit ratings of all customers with which it has or 
may have significant credit balances and takes any 
appropriate action it considers necessary including 
obtaining guarantees and ensuring that no single 
customer failure would present a significant risk to 
the achievement of the group’s strategic objectives 
ke y risks and mitigations
introduction
the identification assessment and management  
of risk is fundamental to the achievement of the 
group’s strategic objectives the principal risks to 
the business as determined by the board are set 
out below the board recognises that the nature  
and scope of the risks faced by the business can 
change and so periodically reviews the risks and the 
controls in place to mitigate them andor transfer 
them to third parties
marketrelated risk
the group is exposed to the risk of the general 
macroeconomic environment as well as government 
spending priorities we monitor the forward order 
books to ensure that appropriate resources are 
allocated to fulfil orders and procure new work 
either from existing clients or new customers
regulatory risks
the group operates in a sector overseen by  
a number of environmental regulators as such  
the regulatory landscape is constantly changing 
increasing the risk of noncompliance and the 
resultant reputational damage that may arise  
we remain fully committed to our teams being 
appraised of any changes in the regulatory 
framework through an extensive training 
programme outlined on page 32 we are members  
of all the recognised trade associations in the 
sectors we operate in and in particular one  
of our senior executives is currently chairman  
of the asbestos remediation trade body arca
contractual risk
the group operates in a sector where fixedprice 
contracts are common and this may result in  
a loss arising from a failure to properly reflect the 
operational risks in the contract price and terms  
all significant contracts are reviewed by the 
executive directors and all reasonable efforts  
are made to consider the potential extent of the 
work involved and the consequent risk of increased 
cost to provide reasonable certainty that the  
group has the capacity and capability to meet  
the requirements of the contract
8981silverdellar10frttp 2indd   26 101210   105304 overview business review governance financial statements
27 silverdell plc annual report and accounts 2010
counterparty risk arises from holding cash and cash 
equivalents with financial institutions the group 
controls this risk by ensuring that it enters into 
relationships only with highly creditrated financial 
institutions
liquidity risk
liquidity risk is the risk that the group does not have 
sufficient cash resources to meet its commitments 
whether short or longterm the group has a 
mixture of borrowing facilities such as an overdraft 
to provide shortterm flexibility as well as a three
year longterm facility arrangement the group 
prepares a rolling 13week cash flow forecast which 
is updated every two weeks which is reviewed  
by both management and the board to consider 
whether the group’s cash resources are sufficient
covenant risk
the group must comply with a number of financial 
covenants as the conditions of its banking facility 
the group monitors compliance with its covenants 
on an actual and forecast basis at each board 
meeting
treasury risk
treasury risk includes the risk of unauthorised  
or unsuitable transactions the group operates 
under a strict mandate in respect of its cash 
disbursements and all financial derivative contracts 
must be reviewed and approved by the board the 
group does not use derivative financial instruments 
for speculative purposes all new bank accounts  
or facilities and all new relationships with financial 
institutions must be approved by the board
the group does not have an exposure to foreign 
currency risk
health  safety
our employees operate on construction sites and 
risk exposure to asbestos and other hazardous 
materials as such there is a significant threat to 
personal safety health and safety is the board and 
management’s highest priority we monitor and 
manage our safety processes and ensure that 
policies are reviewed and communicated at all 
levels all staff are of the highest industry standard 
through our internal training consultancy safe  
the company also takes out appropriate insurance 
policies
key performance indicators ‘kpis’
the board monitors the performance of the group 
by regular reference to a small number of kpis  
which are
 adjusted ebitda this is earnings before • 
amortisation and impairment costs in respect  
of intangible assets depreciation finance costs 
corporation tax and excludes nonrecurring costs 
and sharebased payment charges
 gross margin percentage this is the percentage  • 
of profit to revenue after deducting direct costs 
but before the deduction of any fixed or variable 
overhead costs
 administration costs as a percentage of revenue • 
this is the central overhead cost both divisional 
and corporate as a percentage of total revenue
 operating margin this is operating profit as  • 
a percentage of revenue operating profit is 
calculated before corporation tax and finance 
costs which includes depreciation charges but 
excludes amortisation and impairment charges 
relating to intangible assets sharebased payment 
charges and any nonrecurring costs
 earnings per share this is the adjusted posttax • 
earnings per basic ordinary share adjusted 
posttax earnings is the profit after finance charges 
and corporation tax but excluding any non
recurring expenses sharebased payment charges 
and finance charges relating to deferred 
consideration the basic number of ordinary 
shares is the weighted average number of shares 
in issue including contingently issuable shares 
during the financial year before considering the 
dilutive effect of share options that are or may 
become exercisable and
 gearing this is the net debt expressed as  • 
a percentage of shareholders’ funds
 the group’s performance against these kpis  
is discussed in the financial review
about silverdell
kitsons is proud to announce 
they have been awarded rospa’s 
prestigious occupational health 
and safety gold award for the 
third year in succession
about asbestos
at least five thousand 
people died in 2001  
of asbestosrelated 
diseases
8981silverdellar10frttp 2indd   27 101210   105304 28 silverdell plc annual report and accounts 2010
board of directors
dir ectors and s enior manag ement
stuart doughty cmg 66 executive chairman
stuart doughty previously served as chief executive 
officer of costain group plc he has over 40 years’ 
experience in the construction industry including 
positions as nonexecutive chairman of alstec 
group limited beck  pollitzer limited and 
kennedy construction group limited as well  
as senior nonexecutive director of somero plc  
and scott wilson plc currently mr doughty serves 
as senior nonexecutive director of aigis blast 
protection limited
sean nutley 39 chief executive
sean was previously chief operating officer of 
silverdell plc and a board member since 2006 
before being promoted to chief executive  
sean has more than 20 years’ experience in  
the asbestos and environmental sectors
andrew w atson 46 managing director kitsons
andrew’s career with kitsons spans 23 years  
gaining successive promotions from estimator to 
operations director before becoming managing 
director in 2007 andrew has been fundamental  
to the development of kitsons’ industrial expertise 
and its overall business growth over that time
senior management
8981silverdellar10frttp 2indd   28 101210   105307 overview business review governance financial statements
29 silverdell plc annual report and accounts 2010
ian johnson 45 chief financial officer
previously ian was group finance director of 
mcbride plc ian has also held senior finance roles 
within taylor wimpey plc including commercial 
director for the taylor morrison inc in north 
america ian has also had senior finance positions 
within the support service sector including roles  
at regus plc and exel plc
mark w atts 36 nonexecutive director
mark is a partner in marwyn capital llp and 
marwyn investment management llp  mark holds 
directorships in several other marwyn investments 
praesepe plc acs plc and entertainment one ltd 
previously mark was a management consultant 
completing strategic development projects for  
many bluechip companies including ford motor 
company and barclays bank
dave rhodes 36 managing director silverdell uk 
dave has been involved in the asbestos industry  
for over 21 years since leaving school he joined 
silverdell uk in 2000 as a regional manager and  
was promoted to managing director in 2009 
brian giddings 60 managing director redhills 
brian joined redhills 13 years ago being promoted 
to operations director in 2007 with a new team 
around him this year brian has been key to driving 
the performance improvement delivered in 2010  
by redhills
8981silverdellar10frttp 2indd   29 101210   105310 30 silverdell plc annual report and accounts 2010
directors’ report
the directors have pleasure in presenting their report and the audited financial statements for the year 
ended 30 september 2010
principal activities
silverdell plc ‘the company’ is the parent company of a group of companies providing asbestos industrial 
and environmental solutions from consulting and remediation perspectives the principal subsidiaries are 
shown in note 30 to the accounts
business review
details of the group’s performance and activities during the year are contained within the chairman’s 
statement and the chief executive’s statement on pages 8 to 9 and 18 to 24 and are incorporated in this 
report by reference
information about the use of financial instruments by the group is given in note 21 to the financial 
statements and is incorporated into this report by reference
results
the group results for the year and the group’s financial position at the end of the year are shown in the 
attached financial statements
future developments
an indication of the future developments is contained in the chairman’s statement and the chief executive’s 
statement
dividends
the directors do not recommend the payment of a dividend 2009 £nil
directors and their interests in the shares of the company
the directors of the company in office during the period together with their beneficial interests in the 
issued share capital of 1p 2009 1p ordinary shares required to be disclosed were as follows
30 september
2010
shares
30 september
2010
options
30 september
2009
shares
30 september
2009
options
stuart doughty 125000 1633333 – –
mark watts – – – –
sean nutley 3558350 1633333 3298018 276000
ian johnson 108500 1333333 – –
there have been no changes in the directors’ interests between the year end date and the date of this 
report and accounts
in accordance with the articles sean nutley retires at the forthcoming agm and offers himself for  
reelection
8981silverdellar10midbacktpindd   30 101210   112231 overview business review governance financial statements
31 silverdell plc annual report and accounts 2010
directors and their interests in the shares of the company continued
the directors had the following interests in share options during the year ended 30 september 2010
as at
1 october
2009
exercised
in period
forfeited
in period
awarded
in period
as at
30 september
2010
exercise
period
fromto
exercise
price
sean nutley 226000 – 226000 333333 333333 20122019 90p
50000 – 50000 1300000 1300000 20122019 90p
276000 – 276000 1633333 1633333
ian johnson – – – 333333 333333 20122019 90p
– – – 1000000 1000000 20122019 90p
– – – 1333333 1333333
stuart doughty – – – 333333 333333 20122019 90p
– – – 1300000 1300000 20122019 50p
– – – 1633333 1633333
276000 – 276000 4599999 4599999
the market price of the company’s shares as at 30 september 2010 was 80p 30 september 2009 95p 
and the range during the year was 80p to 125p 2009 66p to 270p
directors’ remuneration
it is the board’s policy to provide executive compensation packages that attract and retain management 
talent and properly motivate executives to deliver the board’s strategy and provide longterm value  
to shareholders the compensation of the executive directors and the senior management comprises  
a number of elements including both shortterm and longterm incentive plans designed to optimise  
the individual’s performance and align the interests of the manager with those of the shareholders  
the directors consider that the overall balance of executive pay be balanced in favour of performance 
incentives both short and longterm 
the remuneration of senior executives comprises base pay and benefits including pension contributions 
private health care insurance and car allowances annual bonus payments and share options
the base pay and benefits of executive directors and senior management is reviewed at least annually  
by the remuneration committee with particular regard to the base pay and benefits of similar positions  
in comparable organisations taking appropriate advice from qualified advisers
the annual bonus scheme pays up to 100 of the base pay of senior executives and is predominantly  
linked to overall profit performance relative to a budget set at the commencement of the financial year 
recognising the importance that the directors place on health  safety part of the annual bonus is 
determined by health  safety performance measured against an internal standard
the share option scheme provides the senior executives with the opportunity to participate in the future 
success of the group along with its shareholders share options may be granted up to the value of 100  
of an executive’s base pay 
options will then vest according to set of performance criteria set by the board based on the growth  
of group posttax profits ahead of inflation over a three year period
8981silverdellar10midbacktpindd   31 101210   112232 32 silverdell plc annual report and accounts 2010
directors’ report continued
substantial interests in the share capital  
at 4 october 2010 
in addition to the directors the company had been 
notified of the following shareholders who held  
3 or more of the ordinary share capital in issue  
of the company
number of 
shares 
marwyn investment   
 management 34759545 2292
wh ireland 23525000 1551
killik  co 17285321 1140
octopus investments 15650000 1032
fidelity investments 14805200 976
going concern
the directors have performed a review of the 
company’s banking arrangements short medium 
and longterm business forecasts and potential cash 
requirements under a variety of trading scenarios 
the directors have a reasonable expectation that 
the group has adequate resources to continue 
operating for the foreseeable future on these 
grounds the board have continued to adopt the 
going concern basis for the preparation of the 
financial statements
health and safety policy
the group is a specialist operator in the handling  
of hazardous waste in particular asbestos all teams 
are required to attend at least annual training 
sessions to ensure they are up to date and 
reappraised of the environmental risks and health  
 safety policy our systems are accredited to 
occupational health and advisory services 
‘ohsas’ 18001 standards and are designed to 
protect our employees and those living and working 
in close proximity to our sites we have been  
a royal society for the prevention of accidents 
‘rospa’ gold award winner for two years 
consecutively in 2008 and 2009 the group has an 
inhouse training function safe that is recognised 
throughout the industry and often used to train 
client teams the safe team works to ensure that  
all operatives are equipped with superior technical 
and safety management skills all operatives are 
required to carry out induction training upon 
arriving at a site and health  safety policies and 
procedures are rigidly adhered to and enforced 
including monitoring systems and subsequent 
demobilisation and project review our audit 
systems are then designed to ensure that all safety 
procedures are adopted on a timely basis and 
without compromise
the group provides services which meet the  
most demanding industry accreditations including  
iso 9901 iso 200 iso 14001 iso 18001 iso 17025 
and iso 17020 as well as the uk’s industrial 
accreditation service ukas
finally the group has appropriate insurance covers 
to protect against the risk of material loss in the 
event of a failure in these preventative systems
donations
the group did not make political donations in the 
year 2009 £nil during the year the group made 
charitable donations of £7789 2009 £40350
creditor payments policy
the group’s policy in respect of the payment of 
suppliers is to agree payment terms in advance  
with its suppliers and pay in accordance with those 
terms subject to any disputes and the timely 
presentation of purchase invoices the average 
number of days’ credit taken at 30 september 2010 
was 54 days 2009 55 days
disabled employees
the group makes every reasonable effort to provide 
employment opportunities for work training and 
career development for disabled applicants and 
employees commensurate with their abilities in the 
recruitment and subsequent career development  
of employees consideration is only given to an 
individual’s aptitudes and abilities irrespective  
of race gender religion marital status sexuality  
or disability
employee involvement
the group places considerable value on the 
involvement of its employees and encourages the 
development of employee involvement in each  
of its operating companies through formal and 
informal meetings 
directors’ indemnities
the company has made qualifying third party 
indemnity provisions for the benefit of its directors 
which were made during the year and remains  
in force at the date of this report
8981silverdellar10midbacktpindd   32 101210   112232 overview business review governance financial statements
33 silverdell plc annual report and accounts 2010
statement of directors’ responsibilities in respect 
of the annual report and the financial statements
the directors are responsible for preparing the 
annual report and the group and parent company 
financial statements in accordance with applicable 
law and regulations
company law requires the directors to prepare 
group and parent company financial statements  
for each financial year as required by the aim rules 
of the london stock exchange they are required  
to prepare the group financial statements in 
accordance with ifrss as adopted by the eu and 
applicable law and have elected to prepare the 
parent company financial statements in accordance 
with uk accounting standards and applicable law 
uk generally accepted accounting practice
under company law the directors must not approve 
the financial statements unless they are satisfied 
that they give a true and fair view of the state of 
affairs of the group and parent company and of 
their profit or loss for that period in preparing  
each of the group and parent company financial 
statements the directors are required to
 select suitable accounting policies and then apply • 
them consistently
 make judgements and estimates that are • 
reasonable and prudent
 for the group financial statements state whether • 
they have been prepared in accordance with  
ifrss as adopted by the eu
 for the parent company financial statements • 
state whether applicable uk accounting standards 
have been followed subject to any material 
departures disclosed and explained in the financial 
statements and
 prepare the financial statements on the going • 
concern basis unless it is inappropriate to presume 
that the group and the parent company will 
continue in business
the directors are responsible for keeping adequate 
accounting records that are sufficient to show and 
explain the parent company’s transactions and 
disclose with reasonable accuracy at any time the 
financial position of the parent company and enable 
them to ensure that its financial statements comply 
with the companies act 2006 they have general 
responsibility for taking such steps as are reasonably 
open to them to safeguard the assets of the  
group and to prevent and detect fraud and other 
irregularities
the directors are responsible for the maintenance 
and integrity of the corporate and financial 
information included on the company’s website 
legislation in the uk governing the preparation and 
dissemination of financial statements may differ 
from legislation in other jurisdictions
auditors
each of the persons who is a director at the date  
of approval of this report confirms that
 so far as the director is aware there is no relevant • 
information of which the group’s auditors are 
unaware
 the director has taken all the steps that he ought • 
to have taken as a director in order to make 
himself aware of any relevant audit information 
and to establish that the group’s auditors are 
aware of that information
 the financial statements prepared in accordance • 
with ifrss as adopted by the eu give a true and 
fair view of the assets liabilities financial position 
and profits or loss of the group and
 the business review and directors’ report • 
includes a fair review of the development and 
performance of the business and the position  
of the group together with a description of the 
principal risks and uncertainties they face
this confirmation is given and should be interpreted 
in accordance with the provisions of s418 of the 
companies act 2006
the group’s auditors kpmg audit plc were 
appointed during the year and have expressed their 
willingness to continue in office as auditors  
in accordance with section 489 of the companies 
act 2006 a resolution for the reappointment of 
kpmg audit plc as auditors of the company is  
to be proposed at the forthcoming annual general 
meeting
approved by the board of directors and signed  
on behalf of the board
susan fadil fcis
company secretary
30 november 2010
8981silverdellar10midbacktpindd   33 101210   112232 34 silverdell plc annual report and accounts 2010
corporate governance 
and risk management statement by the directors on compliance  
with the combined code
as an aim listed company silverdell plc is not 
required to comply with the provisions of the 
combined code on corporate governance  
‘the combined code’ that applies to companies 
with a full london stock exchange listing however 
the board recognises the importance and value  
of good corporate governance and accordingly  
have detailed below those elements of the 
combined code that they consider most relevant 
and appropriate to the group given its size  
and structure
the board
the composition of the board is detailed on  
pages 28 and 29 there are three executive 
directors and one nonexecutive director the 
board recognises that the current composition  
of the board is not in line with best practice as 
identified in higgs review and will seek to address 
any shortcomings during the forthcoming year in 
particular the board will seek to appoint additional 
nonexecutive directors who if appointed will  
also sit on each of the subcommittees
the board has two subcommittees comprising  
the following
the audit committee the purpose of the audit 
committee is to provide formal and transparent 
arrangements for considering how to apply the 
financial reporting and internal control principles 
and to maintain the appropriate relationship with 
the company’s auditors this is chaired by stuart 
doughty and includes mark watts as the other 
member ian johnson and sean nutley are invited  
to attend each meeting
the remuneration committee the purpose  
of the remuneration committee is to establish  
a formal and transparent procedure for developing  
a policy on executive remuneration and to set  
the remuneration packages for individual directors  
this is chaired by mark watts and includes  
stuart doughty as the other member
risk management and internal controls
the directors are responsible for the group’s system 
of internal controls and reviewing its effectiveness 
the role of management is to execute the strategy 
whilst adhering to and enforcing throughout the 
business the board’s policies on risk management 
and internal control any system of internal control 
is designed to manage rather than eliminate  
the risk of failure to achieve the group’s strategic 
objectives and can only provide reasonable and not 
absolute assurance against material misstatement 
or loss
the group operates a system of internal controls 
that is designed to meets its needs these controls 
include a clearly defined organisational structure  
an annual strategic planning and budgeting process 
regular forecasting and detailed monthly reporting 
the organisational structure makes clear the lines  
of authority and responsibility throughout the 
business while the budget process ensures that 
targets are properly established and communicated 
the board reviews and approves the annual budget 
and the period reforecasts to ensure that targets 
and plans are consistent with the group’s overall 
objectives progress against the budget and 
forecasts are then reviewed each month by the 
board including the cash flow forecast and other 
kpis as outlined in the statement on key risks and 
mitigations on page 26 and 27 a comprehensive 
series of management reports is made each month 
to the executive management committee which 
comprises the chief executive officer chief financial 
officer subsidiary managing directors and finance 
directors and these reports are also summarised  
for the board
the board has established a clear set of delegated 
authorities and accounting policies the application 
of these policies is reviewed by executive 
management in the normal course of business as 
well the external auditors the board has considered 
the need for an internal audit function but has 
determined that current procedures are sufficient 
given the scale scope and complexity of the  
group’s operations
recognising the potentially hazardous nature  
of the group’s operations the board has a 
comprehensive health  safety policy health  
safety is a mandated agenda item for all executive 
management committee and board meetings  
the group has a dedicated health  safety team 
that provides expert advice to operational teams 
and also performs regular comprehensive audits  
at all operational sites including spot checks
8981silverdellar10midbacktpindd   34 101210   112232 overview business review governance financial statements
35 silverdell plc annual report and accounts 2010
we have audited the financial statements of 
silverdell plc for the year ended 30 september 2010 
as set out on pages 36 to 70 the financial reporting 
framework that has been applied in the preparation 
of the group financial statements is applicable law 
and international financial reporting standards 
ifrss as adopted by the eu the financial reporting 
framework that has been applied in the preparation 
of the parent company financial statements is 
applicable law and uk accounting standards uk 
generally accepted accounting practice
this report is made solely to the company’s 
members as a body in accordance with chapter 3 
of part 16 of the companies act 2006 our audit 
work has been undertaken so that we might state  
to the company’s members those matters we are 
required to state to them in an auditors’ report and 
for no other purpose to the fullest extent permitted 
by law we do not accept or assume responsibility to 
anyone other than the company and the company’s 
members as a body for our audit work for this 
report or for the opinions we have formed
respective responsibilities of directors  
and auditors
as explained more fully in the directors’ 
responsibilities statement set out on page 33  
the directors are responsible for the preparation  
of the financial statements and for being satisfied 
that they give a true and fair view 
our responsibility is to audit the financial 
statements in accordance with applicable law  
and international standards on auditing uk and 
ireland those standards require us to comply  
with the auditing practices board’s apb’s ethical 
standards for auditors
scope of the audit of the financial statements
a description of the scope of an audit of financial 
statements is provided on the apb’s website  
at wwwfrcorgukapbscopeuknp  
opinion on financial statements
in our opinion
 the financial statements give a true and fair view • 
of the state of the group’s and of the parent 
company’s affairs as at 30 september 2010 and  
of the group’s profit for the year then ended
 the group financial statements have been • 
properly prepared in accordance with ifrss as 
adopted by the eu
 the parent company financial statements have • 
been properly prepared in accordance with  
uk generally accepted accounting practice
 the financial statements have been prepared  • 
in accordance with the requirements of the 
companies act 2006
opinion on other matter prescribed by the 
companies act 2006
in our opinion the information given in the 
directors’ report for the financial year for which  
the financial statements are prepared is consistent 
with the financial statements 
 
matters on which we are required to report  
by exception
we have nothing to report in respect of the 
following matters where the companies act 2006 
requires us to report to you if in our opinion
 adequate accounting records have not been kept • 
by the parent company or returns adequate for 
our audit have not been received from branches 
not visited by us or
 the parent company financial statements are  • 
not in agreement with the accounting records  
and returns or
 certain disclosures of directors’ remuneration • 
specified by law are not made or
 we have not received all the information and • 
explanations we require for our audit
 
matt lewis senior statutory auditor
for and on behalf of kpmg audit plc
chartered accountants and statutory auditors
8 salisbury square
london ec4y 4bb
united kingdom
30 november 2010 
ind epen dent au ditors’ report  
to the members of silverdell plc
8981silverdellar10midbacktpindd   35 101210   112232 36 silverdell plc annual report and accounts 2010
for the year ended 30 september 2010
consolidated income statement
notes 
2010
£’000
2009
£’000
continuing operations
revenue 56674 59509
cost of sales 41974 44897
gross profit 14700 14612
impairment of goodwill 11 – 4802
amortisation of intangible assets 11 601 1742
nonrecurring expenses 11 – 690
other administrative expenses 11595 13055
administrative expenses 12196 20289
operating profitloss before nonrecurring items  
 impairments and amortisation 3105 1557
nonrecurring items impairments and amortisation 11 601 7234
operating profitloss 6 2504 5677
finance income 8 – 9
finance costs 9 672 1199
profitloss before tax 1832 6867
income taxation chargecredit 10 1095 826
profitloss for the year 737 6041
earnings per share pence 
basic earnings per ordinary share 12 05 73
diluted earnings per ordinary share 12 05 73
8981silverdellar10midbacktpindd   36 101210   112232 overview business review governance financial statements
37 silverdell plc annual report and accounts 2010
for the year ended 30 september 2010
consolidated statement 
of comprehensive income
2010
£’000
2009
£’000
profitloss for the year 737 6041
other comprehensive income
cash flow hedges
– gainloss arising during the year 86 116
– related tax chargecredit 24 32
62 84
total comprehensive income for the year 799 6125
8981silverdellar10midbacktpindd   37 101210   112232 38 silverdell plc annual report and accounts 2010
consolidated balance sheet
at 30 september 2010
notes
2010
£’000
2009
£’000
assets
n oncurrent assets
goodwill 13 16156 16156
other intangible assets 14 – 601
property plant and equipment 15 1999 2343
trade and other receivables 18 1001 1001
deferred tax asset 10 – 120
19156 20221
current assets
inventories and work in progress 16 998 1624
other financial assets 17 – 9
trade and other receivables 18 12774 12691
current tax receivable – 369
cash and cash equivalents 3626 2885
17398 17578
total assets 36554 37799
n oncurrent liabilities
borrowings 20 4777 4700
trade and other payables 22 1001 1001
deferred tax liabilities 10 15 157
5793 5858
liabilities
current liabilities
borrowings 20 3117 2848
trade and other payables 22 8114 10912
other financial liabilities 17 71 157
current tax liabilities 506 –
11808 13917
total liabilities 17601 19775
n et assets 18953 18024
equity
share capital 23 1516 5265
share premium account 17813 17813
equity reserve 464 334
hedging reserve 52 114
capital reserve 3749 –
other reserves 16635 16635
retained earnings 21172 21909
total equity 18953 18024
these financial statements were approved by the board of directors on 30 november 2010
signed on behalf of the board of directors 
ian johnson
director
company number 5755897
8981silverdellar10midbacktpindd   38 101210   112232 overview business review governance financial statements
39 silverdell plc annual report and accounts 2010
for the year ended 30 september 2010
consolidated statement 
of changes in equity share 
capital
£’000
share
premium
£’000
other 
reserves
£’000
equity
reserve
£’000
hedging
reserve
£’000
capital
reserve
£’000
retained
earnings
£’000
 total
£’000
at 1 october 2008 4165 13649 16635 411 30 – 15868 18962
net loss for year – – – – – – 6041 6041
other comprehensive income – – – – 84 – – 84
total comprehensive income  
 or the year – – – – 84 – 6041 6125
shares issued
1
1100 4400 – – – – – 5500
expenses of placing – 236 – – – – – 236
sharebased payment charge  
 including tax – – – 77 – – – 77
at 1 october 2009 5265 17813 16635 334 114 – 21909 18024
net profit for year – – – – – – 737 737
other comprehensive income – – – – 62 – – 62
total comprehensive income  
 for the year – – – – 62 – 737 799
shares cancelled
1
3749 – – – – 3749 – –
sharebased payment charge  
 including tax – – – 130 – – – 130
at 30 september 2010 1516 17813 16635 464 52 3749 21172 18953
other reserves are not distributable and relate to the premium arising on
i shares issued as consideration for the acquisition of subsidiary companies
iiwarrants issued to marwyn neptune fund lp in consideration for the participation in placing of shares on 19 july 2006
1
  the shares existing at 1 october 2008 were divided into ordinary shares of 1p and deferred shares of 1p in 2009 and  
the deferred shares were subsequently cancelled in march 2010 refer to note 23 for more details
the capital reserve arose from the cancellation of the deferred shares of 1p in march 2010 and is considered to be  
a nondistributable reserve
8981silverdellar10midbacktpindd   39 101210   112232 40 silverdell plc annual report and accounts 2010
for the year ended 30 september 2010
consolidated statement of cash flows
notes 
 2010
£’000
2009
£’000
cash flows from operating activities 
profitloss for the year 737 6041
income taxation chargecredit 1095 826
finance income – 9
finance costs 672 1199
impairment of goodwill 13 – 4802
amortisation of intangibles 14 601 1742
depreciation on property plant and equipment 15 701 792
profitloss on disposal of property plant and equipment 34 13
sharebased payments 7 130 77
movements in working capital
– decreaseincrease in inventories 626 461
– decrease in trade and other receivables – 3871
– decreaseincrease in trade and other payables 2591 1791
cash generated from operations 1937 6796
income tax paid 269 457
n et cash inflow from operating activities 1668 6339
cash flows from investing activities
purchase of property plant and equipment 363 395
proceeds from sale of property plant and equipment 75 56
acquisition of subsidiaries – 334
n et cash outflow from investing activities 288 673
cash flows from financing activities
interest paid 744 1174
interest paid on finance leases 1 25
payments for hire purchase contracts principals 124 410
proceeds from bank loans 5500 3250
repayments of bank loans 6450 9096
proceeds from issue of equity shares net – 5264
n et cash outflow from financing activities 1819 2191
n et decreaseincrease in cash and cash equivalents 439 3475
cash and cash equivalents at the beginning of the year 1725 1750
cash and cash equivalents at the end of the year 1286 1725
cash and cash equivalents comprises
cash at bank and in hand 19 3626 2885
bank overdrafts 19 2340 1160
1286 1725
8981silverdellar10midbacktpindd   40 101210   112233 overview business review governance financial statements
41 silverdell plc annual report and accounts 2010
for the year ended 30 september 2010
notes to the consolidated 
finan cial statements
1 general information
silverdell plc is a company incorporated in great 
britain under the companies act 2006 the address 
of the registered office is given on page 71 the 
nature of the group’s operations and its principal 
activities are set out in the directors’ report on 
pages 30 to 33
2 basis of preparation
the annual consolidated financial statements  
of the group have been prepared in accordance 
with international reporting standards ‘ifrs’  
as adopted by the european union ‘eu’ ifrs as 
adopted by the eu 
going concern
detailed cash flow forecasts are prepared and 
regularly reviewed by the board to assess the 
group’s financial position the current economic 
conditions do create some uncertainty and the 
group’s borrowings do fluctuate but the continued 
planned actions on improving working capital 
management has enabled the repayment of £65m 
of debt and the reduction of net debt from £47m  
to £43m during the year ended 30 september 2010 
further the group has a number of longterm 
framework contracts with customers and suppliers 
across industries as a consequence the directors 
believe that the group is well placed to manage  
its business risks successfully despite the current 
economic outlook for further information on 
liquidity please refer to note 21 and the directors’ 
report
the directors have a reasonable expectation that 
the group has adequate resources to continue 
operating for the foreseeable future on these 
grounds the board have continued to adopt the 
going concern basis for the preparation of the 
financial statements
3 newly effective standards and new standards 
not yet adopted
a number of new standards amendments to 
standards and interpretations are effective for 
annual periods beginning after 1 january 2010  
and have not been applied in preparing these 
consolidated financial statements none of these  
is expected to have a significant effect on the 
consolidated financial statements of the group 
except for ifrs 9 financial instruments which 
becomes mandatory for the group’s 2013 
consolidated financial statements and could change 
classification and measurement of financial assets 
the group does not plan to adopt this standard 
early and the extent of the impact has not yet been 
determined
31 accounting policies 
basis of accounting
the consolidated financial information has been 
prepared in accordance with ifrss adopted by the 
european union and therefore the group financial 
statements comply with article 4 of the eu ias 
regulation
the consolidated financial information has been 
prepared on the historical cost basis except for  
the revaluation of certain financial instruments 
measured at fair value the principal accounting 
policies adopted are set out below
basis of consolidation
the consolidated financial statements incorporate 
the financial statements of the company and 
entities controlled by the company its subsidiaries 
made up to 30 september each year control  
is achieved where the company has the power  
to govern the financial and operating policies of  
an investee entity so as to obtain benefits from  
its activities
the results of subsidiaries acquired or disposed  
of during the year are included in the consolidated 
income statement from the effective date of 
acquisition or up to the effective date of disposal  
as appropriate
where necessary adjustments are made to the 
financial statements of subsidiaries to bring the 
accounting policies used in line with those used  
by the group
all intragroup transactions balances income  
and expenses are eliminated on consolidation
8981silverdellar10midbacktpindd   41 101210   112233 42 silverdell plc annual report and accounts 2010
31 accounting policies continued
business combinations 
the acquisition of subsidiaries is accounted for using 
the purchase method the cost of the acquisition is 
measured at the aggregate of the fair values at the 
date of exchange of assets given liabilities incurred 
or assumed and equity instruments issued by the 
group in exchange for control of the acquiree plus 
in the case of combinations before 1 july 2009  
any costs directly attributable to the business 
combination the acquiree’s identifiable assets 
liabilities and contingent liabilities that meet the 
conditions for recognition under ifrs 3 are 
recognised at their fair value at the acquisition date
goodwill arising on acquisition is recognised  
as an asset and initially measured at cost being  
the excess of the cost of the business combination 
over the group’s interest in the net fair value of  
the identifiable assets liabilities and contingent 
liabilities recognised if after reassessment  
the group’s interest in the net fair value of the 
acquiree’s identifiable assets liabilities and 
contingent liabilities exceeds the cost of the 
business combination the excess is recognised 
immediately in profit or loss
 
goodwill
goodwill arising on consolidation represents the 
excess of the cost of acquisition over the group’s 
interest in the fair value of the identifiable assets 
and liabilities of a subsidiary at the date of 
acquisition goodwill is initially recognised as an 
asset at cost and is subsequently measured at cost 
less any accumulated impairment losses goodwill 
which is recognised as an asset is reviewed for 
impairment at least annually any impairment  
is recognised immediately in profit or loss
for the purpose of impairment testing goodwill  
is allocated to each of the group’s cashgenerating 
units expected to benefit from the synergies  
of the combination cashgenerating units to  
which goodwill has been allocated are tested for 
impairment annually or more frequently when 
there is an indication that the unit may be impaired 
if the recoverable amount of the cashgenerating 
unit is less than the carrying amount of the unit  
the impairment loss is allocated first to reduce the 
carrying amount of any goodwill allocated to the 
unit and then to the other assets of the unit pro rata 
on the basis of the carrying amount of each asset in 
the unit an impairment loss recognised for goodwill 
is not reversed in a subsequent period
revenue recognition
revenue is measured at the fair value of the 
consideration received or receivable and represents 
amounts receivable for services provided in the 
normal course of business net of discounts vat  
and other salesrelated taxes
profit is recognised on longterm contracts if the 
final outcome can be assessed with reasonable 
certainty by including in the income statement 
revenue and related costs as contract activity 
progresses revenue is calculated by reference to 
the value of work performed to date as a proportion 
of total contract value
leasing
leases are classified as finance leases whenever the 
terms of the lease transfer substantially all the risks 
and rewards of ownership to the lessee all other 
leases are classified as operating leases
assets held under finance leases are recognised as 
assets of the group at their fair value or if lower at 
the present value of the minimum lease payments 
each determined at the inception of the lease 
the corresponding liability to the lessor is included 
in the balance sheet as a finance lease obligation 
lease payments are apportioned between finance 
charges and reduction of the lease obligation so  
as to achieve a constant rate of interest on the 
remaining balance of the liability finance charges 
are charged directly against income
rentals payable under operating leases are charged 
to income on a straightline basis over the term  
of the relevant lease
benefits received and receivable as an incentive  
to enter into an operating lease are also spread  
on a straightline basis over the lease term
borrowing costs
borrowing costs are recognised in profit or loss  
in the period in which they are incurred
retirement benefit costs 
payments to defined contribution retirement 
benefit schemes are charged as an expense as  
they fall due 
 
for the year ended 30 september 2010
notes to the consolidated 
finan cial statements continued
8981silverdellar10midbacktpindd   42 101210   112233 overview business review governance financial statements
43 silverdell plc annual report and accounts 2010
31 accounting policies continued
taxation
the tax expense represents the sum of the tax 
currently payable and the movements in  
deferred tax
the tax currently payable is based on taxable profit 
for the year taxable profit differs from net profit  
as reported in the income statement because it 
excludes items of income or expense that are 
taxable or deductible in other years and it further 
excludes items that are never taxable or deductible 
the group’s liability for current tax is calculated 
using tax rates that have been enacted or 
substantively enacted by the balance sheet date
deferred tax is the tax expected to be payable or 
recoverable on differences between the carrying 
amounts of assets and liabilities in the financial 
statements and the corresponding tax bases used in 
the computation of taxable profit and is accounted 
for using the balance sheet liability method 
deferred tax liabilities are generally recognised  
for all taxable temporary differences and deferred 
tax assets are recognised to the extent that it is 
probable that taxable profits will be available 
against which deductible temporary differences  
can be utilised such assets and liabilities are not 
recognised if the temporary difference arises from 
the initial recognition of goodwill or from the initial 
recognition other than in a business combination 
of other assets and liabilities in a transaction that 
affects neither the tax profit nor the accounting 
profit
deferred tax liabilities are recognised for taxable 
temporary differences arising on investments in 
subsidiaries except where the group is able to 
control the reversal of the temporary difference  
and it is probable that the temporary difference  
will not reverse in the foreseeable future
the carrying amount of deferred tax assets is 
reviewed at each balance sheet date and reduced  
to the extent that it is no longer probable that 
sufficient taxable profits will be available to allow  
all or part of the asset to be recovered
deferred tax is calculated at the tax rates that are 
expected to apply in the period when the liability  
is settled or the asset is realised deferred tax is 
charged or credited in the income statement except 
when it relates to items charged or credited to other 
comprehensive income in which case the deferred 
tax is also dealt with in other comprehensive 
income
deferred tax assets and liabilities are offset when 
there is a legally enforceable right to set off current 
tax assets against current tax liabilities and when 
they relate to income taxes levied by the same 
taxation authority and the group intends to settle 
its current tax assets and liabilities on a net basis
property plant and equipment
property plant and equipment is stated at cost less 
accumulated depreciation and any recognised 
impairment loss
depreciation is charged so as to write off the cost  
or valuation of assets other than land and assets 
under construction over their estimated useful 
lives on the following bases
freehold property 4 on cost 
leasehold property 10 on cost
plant and machinery 10 on cost
office equipment  16625 on cost
motor vehicles  25 on reducing balance
assets held under finance leases are depreciated 
over their expected useful lives on the same basis  
as owned assets or where shorter over the term  
of the relevant lease
the gain or loss arising on the disposal or retirement 
of an asset is determined as the difference between 
the sales proceeds and the carrying amount of the 
asset and is recognised in income
 
impairment of tangible and intangible assets 
excluding goodwill
at each balance sheet date the group reviews the 
carrying amounts of its tangible and intangible 
assets to determine whether there is any indication 
that those assets have suffered an impairment  
loss if any such indication exists the recoverable 
amount of the asset is estimated in order to 
determine the extent of the impairment loss if any 
where the asset does not generate cash flows that 
are independent from other assets the group 
estimates the recoverable amount of the cash
generating unit to which the asset belongs 
recoverable amount is the higher of fair value less 
costs to sell and value in use in assessing value in 
use the estimated future cash flows are discounted 
to their present value using a pretax discount rate 
that reflects current market assessments of the time 
value of money and the risks specific to the asset  
for which the estimates of future cash flows have 
not been adjusted
8981silverdellar10midbacktpindd   43 101210   112233 44 silverdell plc annual report and accounts 2010
31 accounting policies continued
impairment of tangible and intangible assets 
excluding goodwill continued
if the recoverable amount of an asset or cash
generating unit is estimated to be less than its 
carrying amount the carrying amount of the asset 
cashgenerating unit is reduced to its recoverable 
amount an impairment loss is recognised as an 
expense immediately where an impairment loss 
subsequently reverses the carrying amount of the 
asset cashgenerating unit is increased to the 
revised estimate of its recoverable amount but  
so that the increased carrying amount does not 
exceed the carrying amount that would have been 
determined had no impairment loss been 
recognised for the asset cashgenerating unit  
in prior years a reversal of an impairment loss  
is recognised as income immediately 
inventories and work in progress
inventories are stated at the lower of cost and net 
realisable value cost comprises direct materials 
and where applicable direct labour costs and those 
overheads that have been incurred in bringing the 
inventories to their present location and condition 
cost is calculated using the weighted average 
method net realisable value represents the 
estimated selling price less all estimated costs of 
completion and costs to be incurred in marketing 
selling and distribution
work in progress on service contracts is stated at 
cost plus where the outcome can be assessed with 
reasonable certainty estimated profits attributable 
to the stage of completion less provision for any 
expected losses and progress payments received on 
account amounts recoverable on long term service 
contracts which are included in trade and other 
receivables are stated at the net sales value of the 
work done less progress payments received on 
account excess progress payments are included  
on trade and other payables cumulative costs 
incurred less amounts transferred to cost of sales 
less provision for contingencies and expected future 
losses on service contracts are included as long
term service contract balances in inventories
financial instruments
financial assets and financial liabilities are 
recognised in the group’s balance sheet when  
the group becomes a party to the contractual 
provisions of the instrument 
financial instruments are classified into the 
following categories financial assets at fair value 
through profit and loss ‘fvtpl’ held for trading 
‘loans and receivables’ at amortised cost financial 
liabilities – derivatives designated as cash flow 
hedges and financial liabilities at amortised cost
the classification depends on the nature and 
purpose of the financial instruments 
trade receivables
trade receivables are measured at initial recognition 
at fair value appropriate allowances for estimated 
irrecoverable amounts are recognised in profit  
or loss when there is objective evidence that the 
asset is impaired
 
cash and cash equivalents
cash and cash equivalents comprise cash on hand 
and demand deposits and other shortterm highly 
liquid investments that are readily convertible  
to a known amount of cash and are subject to  
an insignificant risk of changes in value
financial liabilities and equity
financial liabilities and equity instruments are 
classified according to the substance of the 
contractual arrangements entered into an equity 
instrument is any contract that evidences a residual 
interest in the assets of the group after deducting 
all of its liabilities
bank borrowings
interestbearing bank loans and overdrafts are 
recorded at the proceeds received net of direct 
issue costs finance charges including premiums 
payable on settlement or redemption and direct 
issue costs are accounted for on an accrual basis  
in profit or loss using the effective interest rate 
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
trade payables are initially measured at fair value
for the year ended 30 september 2010
notes to the consolidated 
finan cial statements continued
8981silverdellar10midbacktpindd   44 101210   112233 overview business review governance financial statements
45 silverdell plc annual report and accounts 2010
31 accounting policies continued
financial instruments continued
derivative financial instruments and hedge 
accounting
the group’s activities expose it primarily to the 
financial risk of changes in interest rates the group 
uses interest rate swap contracts to hedge this 
exposure the group does not use derivative 
financial instruments for speculative purposes
the use of financial derivatives is governed by the 
group’s policies approved by the board of directors 
which provide written principles on the use of 
financial derivatives 
changes in the fair value of derivative financial 
instruments that are designated and effective as 
hedges of future cash flows are recognised in other 
comprehensive income and the ineffective portion 
is recognised immediately in the income statement 
if the cash flow hedge of a firm commitment or 
forecasted transaction results in the recognition  
of an asset or a liability then at the time the asset 
or liability is recognised the associated gains or 
losses on the derivative that had previously been 
recognised in other comprehensive income are 
included in the initial measurement of the asset  
or liability for hedges that do not result in the 
recognition of an asset or a liability amounts 
deferred in other comprehensive income are 
recognised in the income statement in the same 
period in which the hedged item affects net profit  
or loss
changes in the fair value of derivative financial 
instruments that do not qualify for hedge accounting 
are classified as fvtpl held for trading and the 
gains and losses are recognised in the income 
statement as they arise these are classified as held 
for trading as they have not been hedge accounted 
and have not been ‘designated’ as fvtpl
hedge accounting is discontinued when the hedging 
instrument expires or is sold terminated or 
exercised or no longer qualifies for hedge 
accounting at that time any cumulative gain or  
loss on the hedging instrument recognised in other 
comprehensive income is retained there until the 
forecasted transaction occurs if a hedged 
transaction is no longer expected to occur the  
net cumulative gain or loss recognised in other 
comprehensive income is transferred to the income 
statement for the period
investments
investments in subsidiaries are stated at cost  
less provision for any impairment
provisions
provisions are recognised when the group has  
a present obligation as a result of a past event  
and it is probable that the group will be required  
to settle that obligation provisions are measured  
at the directors’ best estimate of the expenditure 
required to settle the obligation at the balance sheet 
date and are discounted to present value where  
the effect is material
sharebased payments
the group issues equitysettled sharebased 
payments to certain employees equitysettled 
sharebased payments are measured at fair value 
excluding the effect of non marketbased vesting 
conditions at the date of grant the fair value 
determined at the grant date of the equitysettled 
sharebased payments is expensed on a straightline 
basis over the vesting period and is recognised as  
an employee expense with a corresponding increase 
in equity based on the group’s estimate of shares 
that will eventually vest and adjusted for the effect 
of non marketbased vesting conditions
fair value is measured by use of the blackscholes 
model or the binomial method as appropriate 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
intangible assets
customer relationships
customer relationships are measured as the present 
value of cash flows attributable to the relationship 
after deduction of appropriate contributory assets 
charged the relationship is amortised over its 
expected useful life typically three years
order book
order book is the value of confirmed orders on  
the date of acquisition after appropriate costs have 
been deducted the order book is amortised over 
the period in which it is expected to unwind
8981silverdellar10midbacktpindd   45 101210   112233 46 silverdell plc annual report and accounts 2010
4 critical accounting judgements and key sources 
of estimation uncertainty 
the preparation of consolidated financial 
statements in conformity with ifrs requires 
management to make judgements estimates and 
assumptions about the carrying amount of assets 
and liabilities and the amount of income and 
revenue recognised in the period actual results  
may differ from these estimates
the key assumptions concerning the future and 
other key sources of estimation uncertainty at the 
balance sheet date that have a significant risk 
 of causing a material adjustment to the carrying 
amounts of assets and liabilities within the next 
financial year are discussed below 
revenue and profitmargin recognition
the group’s revenue recognition turnover and  
longterm contracts policies are set out in the notes 
above management exercises judgement to 
estimate the total expected contract costs and 
determine the percentage of completion in order  
to recognise the appropriate revenue and profit  
in the period the assessment of profitability  
and recognition is assessed on an ongoing basis 
which ensures adequate controls are in place that 
appropriate amounts are calculated
recognition and measurement of intangible assets 
under ifrs 3 ‘business combinations’
in order to determine the value of the separately 
identifiable intangible assets on the acquisition of  
a business combination management are required 
to make estimates on secured customer contracts 
other contracts and customer relationships and 
goodwill the group engaged outside independent 
parties to perform these calculations and determine 
the fair value and estimated useful lives of these 
assets
 
impairment of goodwill and other intangible assets
there are a number of assumptions management 
have considered in performing impairment reviews 
of goodwill and intangible assets determining 
whether goodwill is impaired requires an estimation 
of the value in use of the cashgenerating units to 
which goodwill has been allocated the value in  
use calculation requires the directors to estimate 
the future cash flows expected to arise from the 
cashgenerating unit and a suitable discount rate in 
order to calculate present value note 13 details the 
assumptions that have been applied for goodwill
5 segmental information
the group has two reportable segments as 
described below which are the group’s strategic 
divisions the strategic divisions offer different 
services and are managed separately because they 
have some differences in their risks and operating 
models for each of the strategic divisions the 
group’s ceo the chief operating decision maker 
reviews internal management reports on at least  
a monthly basis the following summary describes 
the operations in each of the group’s reportable 
segments
remediation – provides services related to the 
direct remediation and removal of environmental 
risks the principal two group companies in this 
segment being silverdell uk and kitsons
consulting – provides environmental survey 
monitoring and project management services the 
principal company in this segment being redhill 
analysts
unallocated items represent headoffice and other 
groupwide costs together with the group’s bank 
borrowings
information regarding the results of each reportable 
segment is included below performance is 
measured based on segment profit before tax as 
included in the internal management reports that 
are reviewed by the group’s ceo segment profit  
is used to measure performance as management 
believes such information is the most relevant in 
evaluating the results of certain segments relative  
to other entities that operate within these industries
for the year ended 30 september 2010
notes to the consolidated 
finan cial statements continued
8981silverdellar10midbacktpindd   46 101210   112233 overview business review governance financial statements
47 silverdell plc annual report and accounts 2010
5 segmental information continued
2010
remediation
£’000
consulting 
£’000
unallocated
£’000
group
£’000
for the year ended 30 september 2010
revenue
total revenue 50562 6404 – 56966
less between segments 221 71 – 292
external revenue 50341 6333 – 56674
    
sales between segments are charged at prevailing market prices
2010
remediation
£’000
consulting
£’000
unallocated
£’000
group
£’000
for the year ended 30 september 2010
result
operating profit before amortisation  
 and nonrecurring items 3643 897 1435 3105
intangible assets amortisation 515 86 – 601
finance costs 10 13 669 672
profitloss before tax 3138 798 2104 1832
taxation 1329 262 496 1095
loss for the year 1809 536 1608 737
at 30 september 2010
balance sheet
total assets 28040 8129 385 36554
total liabilities 9551 850 7200 17601
other information
capital expenditure 293 52 52 397
depreciation 573 111 17 701
    
as the group’s activities are almost entirely based in the uk no geographic segmental analysis is required
2009 
remediation
£’000
consulting
£’000
unallocated
£’000
group
£’000
for the year ended 30 september 2009
revenue
total revenue 53839 6771 – 60610
less between segments 983 118 – 1101
external revenue 52856 6653 – 59509
    
8981silverdellar10midbacktpindd   47 101210   112233 48 silverdell plc annual report and accounts 2010
5 segmental information continued
sales between segments are charged at prevailing market prices
2009 
remediation
£’000
consulting
£’000
unallocated
£’000
group
£’000
for the year ended 30 september 2009
result
operating profit before amortisation  
 and nonrecurring items 2457 562 1462 1557
intangible assets amortisation 1399 343 – 1742
goodwill impairment loss 4802 – – 4802
nonrecurring expenses 229 73 388 690
finance income – – 9 9
finance costs 32 15 1152 1199
loss before tax 4005 131 2993 6867
taxation 52 31 847 826
loss for the year 4057 162 2146 6041
at 30 september 2009
balance sheet
total assets 28430 7437 1932 37799
total liabilities 10885 694 8196 19775
other information
capital expenditure including acquisitions 296 99 – 395
depreciation 635 157 – 792
as the group’s activities are almost entirely based in the uk no geographic segmental analysis is required
6 operating profitloss
2010
£’000
2009
£’000
operating profitloss is stated after chargingcrediting
goodwill impairment loss – 4802
sharebased payment chargecredit 130 77
amortisation of intangible assets see note 14 601 1742
depreciation of
– owned assets 459 448
– assets held under finance leases 242 344
auditors’ remuneration see below 75 143
hire of plant and machinery 988 1677
operating lease rentals – land and buildings 337 354
profitloss on disposal of fixed assets 34 13
analysis of auditors remuneration 
audit services
– audit of company’s annual accounts 16 30
– audit of company’s subsidiaries pursuant to legislation 49 73
65 103
other services
– other services pursuant to legislation – interim review – 25
– other services relating to tax compliance 10 15
auditors’ remuneration 75 143
for the year ended 30 september 2010
notes to the consolidated 
finan cial statements continued
8981silverdellar10midbacktpindd   48 101210   112233 overview business review governance financial statements
49 silverdell plc annual report and accounts 2010
7 staff costs including directors’ remuneration
directors’ remuneration and transactions
salary 
and fees
£’000
benefits
£’000
performance
bonus
£’000
total
emoluments
£’000
pension
contributions
£’000
total
2010
£’000
total
2009
£’000
n onexecutive directors
mark watts
1
30 – – 30 – 30 30
david williams
1
– – – – – – 26
gordon morrison
2
– – – – – – 12
executive directors
stuart doughty 75 – 5 80 – 80 44
sean nutley 200 3 – 203 22 225 226
ian johnson 171 2 – 173 – 173 39
danny spicer
3
– – – – – – 204
chris sims
3
– – – – – – 102
total 476 5 5 486 22 508 683
1
 payable to marwyn llp
2
 payable to chaldean management ltd
3
 includes compensation for loss of office of £195000 for danny spicer and £92000 for chris sims
the pension contributions disclosed above were all in respect of money purchase arrangements
options over ordinary shares
the directors’ interests in share options are disclosed in the directors’ report on page 31
staff costs
employees 
2010
n umber
2009
number
average number of persons including directors employed by the group in the year
operational sales and other 632 624
administrative 142 130
774 754
the payroll costs in respect of the employees included in the table above were
2010
£’000
2009
£’000
salaries and wages 26354 26026
social security costs 2715 2649
pension costs 119 163
sharebased payment chargecredit 130 77
29318 28761
certain subsidiary undertakings of the group operate defined contribution pension schemes the assets  
of the schemes are held separately from those of the group by independently administered funds 
8981silverdellar10midbacktpindd   49 101210   112233 50 silverdell plc annual report and accounts 2010
7 staff costs including directors’ remuneration continued
remuneration of key management personnel
in accordance with ias 24 related party disclosures key management personnel are those persons having 
authority and responsibility for planning directing and controlling the activities of the entity directly  
or indirectly including any director executive and non executive of the group
2010
£’000
2009
£’000
shortterm employee benefits 899 1202
postemployment benefits 56 37
key management personnel include members of the board and the managing directors of the principal 
subsidiaries
8 finance income
an analysis of the group’s finance income for the year is as follows
2010
£’000
2009
£’000
change in fair value of derivative financial instrument – 9
9 finance costs
2010
£’000
2009
£’000
interest on bank overdrafts and loans 662 974
interest on obligation under finance leases 1 25
change in fair value of derivative financial instrument 9 –
nonrecurring bank charges see note 11 – 200
total finance costs 672 1199
10 tax on profitloss on ordinary activities
income tax recognised in profit or loss
2010
£’000
2009
£’000
tax chargecredit comprises
united kingdom corporation tax based on the profitloss for the year 915 61
adjustment in respect of previous years 226 228
total current tax expensecredit 1141 167
deferred tax income relating to the origination 
 and reversal of temporary differences 239 659
adjustment in respect of previous years 193 –
total deferred tax credit 46 659
total tax expensecredit 1095 826
for the year ended 30 september 2010
notes to the consolidated 
finan cial statements continued
8981silverdellar10midbacktpindd   50 101210   112234 overview business review governance financial statements
51 silverdell plc annual report and accounts 2010
10 tax on profitloss on ordinary activities continued
income tax recognised in profit or loss continued
the charge for the year can be reconciled to the loss per the income statement as follows
2010
£’000
2010

2009
£’000
2009

profitloss before tax 1832 6867
income tax expensecredit calculated  
 at the standard rate of 28 2009 28 513 28 1923 28
sharebased payment chargecredit 36 2 22 –
effect of expenses that are not deductible  
 in determining taxable profit 127 7 1364 20
marginal relief – – 17 –
prior year adjustment 419 23 228 4
income tax chargecredit recognised  
 in profit or loss 1095 60 826 12
    
the finance no 2 act 2010 which was substantively enacted on 20 july 2010 includes legislation reducing 
the main rate of corporation tax from 28 to 27 from 1 april 2011 the directors are in the process  
of evaluating the impact these changes will have on future tax charges
the group’s planned level of capital investment is expected to remain at similar levels therefore it expects 
to be able to claim allowances in excess of depreciation in future years at a similar level to the current year
 
there were no unrecognised deferred tax assets
the movement in deferred tax was as follows
asset
£’000
liability
£’000
at 1 october 2008 – 728
credited to income statement 88 571
credited to other comprehensive income 32 –
at 1 october 2009 120 157
credited to income statement 111 157
charged to other comprehensive income 24 –
reclassified as liability 15 15
at 30 september 2010 – 15
deferred tax comprises
2010
£’000
2009
£’000
accelerated tax depreciation 34 77
intangible assets – 157
other 19 43
15 37
   
8981silverdellar10midbacktpindd   51 101210   112234 52 silverdell plc annual report and accounts 2010
11 n onrecurring expenses impairments and amortisation
nonrecurring items impairments and amortisation are shown separately on the face of the income 
statement in order to reflect the group’s underlying financial performance the items comprise  
the following
2010
£’000
2009
£’000
goodwill impairment  see note 13 – 4802
amortisation of intangible assets  see note 14 601 1742
nonrecurring expenses  see below – 690
change in fair value of derivative  see note 17 – 9
nonrecurring bank charges see below – 200
601 7425
related income tax credit 157 673
impact on post tax profitloss 444 6752
   
nonrecurring expenses in 2009 comprised severance costs for senior executives and professional fees 
incurred in connection with the renegotiation of the group’s banking facilities 
the change in fair value of a derivative arose from the interest rate cap contract entered into as part  
of the renegotiation of the group’s banking facilities
nonrecurring bank charges of £200000 were incurred during 2009 as a result of renegotiation of the 
banking facilities
12 earnings per share
basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the 
weighted average number of ordinary shares during the year determined in accordance with the provisions 
of ias 33 ‘earnings per share’
diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in 
issue on the assumption of conversion of all dilutive potential ordinary shares unexercised share options 
and warrants are determined to be antidilutive and are therefore excluded from the calculation of the 
diluted earnings per share
adjusted basic earnings per share is calculated by dividing the earnings attributed to ordinary shareholders 
before intangible assets amortisation sharebased payment charges nonrecurring expenses and finance 
charges on deferred consideration by the weighted average number of ordinary shares during the year
earnings £’000
2010
earnings 
per share
basic 
pence
diluted
pence £’000
2009
earnings
per share
basic 
pence
diluted 
pence
profitloss attributable to  
 ordinary shareholders 737 05 05 6041 73 73
nonrecurring items impairments   
 amortisation and sharebased payments 574 04 04 6674 81 81
profit for adjusted earnings per share 1311 09 09 633 08 08
      
the adjusted numbers have been reported in order that the impact of the above charges against reported 
profitloss can be fully appreciated
for the year ended 30 september 2010
notes to the consolidated 
finan cial statements continued
8981silverdellar10midbacktpindd   52 101210   112234 overview business review governance financial statements
53 silverdell plc annual report and accounts 2010
12 earnings per share continued
number of shares
2010
n o
2009
no
weighted average number of ordinary shares used in calculation  
 of basic earnings per share 151654717 83143761
effect of dilutive potential ordinary shares
share options 353309 –
weighted average number of ordinary shares used in calculation  
 of diluted earnings per share 152008026 83143761
    
13 goodwill
£’000
cost
at 1 october 2008 35629
adjustment to provision for deferred consideration 18
at 30 september 2009 and 30 september 2010 35611
£’000
accumulated impairment losses 
at 1 october 2008 14653
impairment losses reported in the year ended 30 september 2009 4802
at 30 september 2009 and 30 september 2010 19455
carrying amount 
at 30 september 2009 and 30 september 2010 16156
  
the carrying amount of goodwill relates to the group’s two business segments as follows
2010
£’000
2009
£’000
remediation 10869 10869
consulting 5287 5287
16156 16156
   
the group tests goodwill annually for impairment or more frequently if there are indications that goodwill 
might be impaired goodwill is allocated for impairment testing to cash generating units ‘cgu’ which 
reflects how it is monitored for internal management purposes the recoverable amounts of the cgus are 
determined from value in use calculations value in use is calculated using pretax cash flow projections 
based on the financial budgets and business plans covering a three year period which take into account 
historical trends and market conditions which have been approved by the board the key assumptions for 
the value in use calculations are those regarding the discount rates and growth rates for the period 
management estimates discount rates using pretax rates that reflect current market assessments of the 
time value of money and the risks specific to the cgus equivalent to a real pretax discount rate which 
average 12 2009 12 the growth rates are based on industry growth forecasts and longterm growth 
in gross domestic product 
the group prepares cash flow forecasts derived from the most recent financial budgets approved by 
management for the next three years and extrapolates cash flows for the following years based on an 
estimated annual growth rate of 24 2009 24 the rates do not exceed the average longterm growth 
rate for the relevant markets the rates used to discount the cash flows in both 2010 and 2009 for all cgus 
have been based on the group’s adjusted weighted average cost of capital 
8981silverdellar10midbacktpindd   53 101210   112234 54 silverdell plc annual report and accounts 2010
13 goodwill continued
the group’s impairment review is sensitive to changes in the key assumptions used the major assumptions 
that result in significant sensitivities are the revenue growth and the discount rate given the group’s 
sensitivity analysis a reasonably possible change in a single assumption will not result in further impairments
 
at 30 september 2010 goodwill was allocated to the kitsons environmental europe limited ‘kitsons’ 
silverdell uk limited ‘silverdell uk’ and redhill analysts limited ‘redhills’ cgus 
as a result of impairment reviews in previous years the goodwill relating to these cgus was reduced to its 
recoverable amount by recognising accumulated impairment losses as follows  
£’000
silverdell uk 9990
kitsons 8366
redhills 1099
19455
14 other intangible assets
order 
backlog
customer
contracts total
cost
at 1 october 2009 and 30 september 2010 1480 5434 6914
accumulated amortisation 
at 1 october 2008 1472 3099 4571
amortisation charge 8 1734 1742
at 30 september 2009 1480 4833 6313
amortisation charge – 601 601
at 30 september 2010 1480 5434 6914
carrying amount
at 30 september 2010 – – –
at 30 september 2009 – 601 601
    
all amortisation charges in the year have been included in administrative expenses
 
for the year ended 30 september 2010
notes to the consolidated 
finan cial statements continued
8981silverdellar10midbacktpindd   54 101210   112234 overview business review governance financial statements
55 silverdell plc annual report and accounts 2010
15 property plant and equipment
freehold and
leasehold
property
£’000
motor
vehicles
£’000
office
equipment
 £’000
plant and
machinery
£’000
total
£’000
cost
at 1 october 2008 629 1598 853 2448 5528
additions 19 41 7 328 395
disposals – 463 – 2 465
at 1 october 2009 648 1176 860 2774 5458
additions 41 59 72 225 397
disposals – 451 – 10 461
at 30 september 2010 689 784 932 2989 5394
accumulated depreciation
at 1 october 2008 102 770 555 1292 2719
depreciation charge for the year – 394 – 2 396
disposals 6 399 69 318 792
at 30 september 2009 108 775 624 1608 3115
depreciation charge for the year 38 258 122 283 671
disposals – 418 – 3 421
at 30 september 2010 146 615 746 1888 3395
carrying amount
at 30 september 2010 543 169 186 1101 1999
at 30 september 2009 540 401 236 1166 2343
     
the net book value of assets held under finance leases is £332000 2009 £730000
the book value of freehold land not depreciated is £219000 2009 £219000 the net book value of 
freehold buildings is £324000 2009 £321000 and the depreciation charge on freehold buildings was 
£38000 2009 £nil
 
16 inventories
2010
£’000
2009
£’000
raw materials and consumables 266 514
work in progress 732 1110
998 1624
   
the cost of inventories recognised as an expense and included in ‘cost of sales’ amounted to £2566000 
2009 £3672000 the directors consider that the carrying amount of inventories approximates to their 
fair value 
8981silverdellar10midbacktpindd   55 101210   112234 56 silverdell plc annual report and accounts 2010
17 derivative financial assetsliabilities
2010
£’000
2009
£’000
financial asset
interest rate cap – 9
financial liability interest rate swap
interest rate swap 71 157
   
the notional principal amount of the outstanding interest rate cap contract was £1247500 2009 £798000 
the interest cap was at libor at 35 and the contract expires on 31 december 2011 this derivative is 
treated as at fvtpl – held for trading
the notional principal amount of the outstanding interest rate swap contract at 30 september 2010 was 
£1750000 2009 £2750000 at 30 september 2010 the fixed interest rate was 58 and the main 
floating rates were libor 
18 trade and other receivables
2010
£’000
2009
£’000
n oncurrent
other receivables see note 22 1001 1001
total noncurrent 1001 1001
current
trade receivables 10797 11362
less provision for impairment 243 353
trade receivables net 10554 11009
prepayments and accrued income 1150 745
due from customers for contract work 1070 937
total current 12774 12691
total 13775 13692
    
the average credit period taken on sales is 58 days 2009 60 days the group has different provision 
policies for its various divisions which have been determined by references to past default experience  
and specific provisions are raised after taking an individual view to the debtor’s recoverability 
due to the nature of the group’s operations it is common practice for customers to hold retentions in 
respect to contracts completed retentions held by customers as at 30 september 2010 were £1086000 
2009 £1084000
the group’s exposure to credit risk and impairment losses related to trade and other receivables are 
disclosed in note 21
under the normal course of the business the group does not charge interest on its overdue receivables
the directors consider that the carrying amount of trade and other receivables approximates to their  
fair value
for the year ended 30 september 2010
notes to the consolidated 
finan cial statements continued
8981silverdellar10midbacktpindd   56 101210   112234 overview business review governance financial statements
57 silverdell plc annual report and accounts 2010
19 analysis of net debt position
2009
£’000
cash flow
£’000
other 
noncash
changes
£’000
2010
£’000
cash at bank and in hand 2885 741 – 3626
bank loans 6256 950 207 5513
bank overdraft 1160 1180 – 2340
finance lease obligations 132 124 33 41
4663 635 240 4268
    
the group’s exposure to interest rate risks and a sensitivity analysis for financial assets and liabilities is 
disclosed in note 21
 
20 borrowings
2010
£’000
2009
£’000
n oncurrent
bank loans 4754 4700
obligations under finance lease contracts 23 –
4777 4700
current
bank loans and overdrafts 3099 2716
obligations under finance lease contracts 18 132
3117 2848
total 7894 7548
further information on the principal features of the group’s borrowings is set out in note 21
the group’s bank overdraft and loan facilities are secured by debentures over the assets of the group  
the debenture agreement includes a fixed and floating charge over the assets of the group finance lease 
liabilities are secured on the assets to which the contracts relate
the term loan and revolving credit facility are subject to interest at variable rates over libor to hedge  
the interest rate risk the group has rolled forward the preexisting £1750000 interest rate swap the 
hedge amount amortises by £200000 per quarter and the rate on the amortised amount is fixed at 58  
a further £1247500 was subject to an interest rate cap agreement at 30 september 2010 placing a 35 
cap on 3month libor the amount of notional borrowings covered by the cap agreement is scheduled  
to vary each quarter in order to achieve the group’s objective of 55 of certain elements of its banking 
facilities being covered by the combined hedge 
the £3000000 term loan and the £2500000 revolving credit facility are both committed to 31 march 
2014 the term loan amortises at £200000 per quarter the overdraft facility and finance leases are also  
at variable rates of interest 
as at 30 september 2010 the group had an undrawn committed revolving credit facility of £nil 2009 £nil 
and an uncommitted undrawn net overdraft facility of £2750000 2009 £2000000 the overdraft 
facility has no fixed expiry date being reviewed on an annual basis 
8981silverdellar10midbacktpindd   57 101210   112234 58 silverdell plc annual report and accounts 2010
21 financial instruments
a financial risk management
all companies are exposed to capital and market risk but the board considers the group’s key elements  
of financial risk to be 
credit risk • 
liquidity risk • 
interest rate risk • 
this note presents information about the group’s exposure to each of the above risks the group’s 
management of capital and the group’s objectives policies and procedures for measuring and managing 
risk please refer also to the principal business risks in the statement on key risks and mitigations on page 26
capital risk management 
the board is responsible for overall group strategy acquisition and divestment policy approval of major 
capital expenditure projects and consideration of significant financing matters the board manages its 
capital to ensure that entities in the group will be able to continue as a going concern while maximising the 
return to stakeholders as well as sustaining the future development of the business in order to maintain  
or adjust the capital structure the group may adjust the amount of dividends paid to shareholders return 
capital to shareholders issue new shares or sell assets to reduce debt 
the capital structure of the group consists of debt which includes the borrowings disclosed in note 20 
cash and cash equivalents and equity attributable to equity holders of the parent comprising issued 
capital reserves and retained earnings as set out in the statement of changes in equity
market risk
market risk is the risk that changes in the market prices such as foreign exchange rates and interest rates 
will affect the group’s income or the value of its holdings of financial instruments the objective of market 
risk management is to manage and control market risk exposures within acceptable parameters while 
optimising the return on risk
the group’s activities expose it mainly to the financial risks of changes in interest rates the board reviews 
and agrees the policy for managing interest rate risk and foreign currency risk and the potential impact  
of any significant economic changes are discussed at monthly board meetings 
the group reviews its treasury position daily placing any surplus cash on shortterm deposits 
 
b categories of financial instruments
details of the significant accounting policies and methods adopted including the criteria for recognition 
the basis of measurement and the basis on which income and expenses are recognised in respect  
of each class of financial asset financial liability and equity instrument are disclosed in note 3 to the 
financial statements
2010
£’000
2009
£’000
financial assets
1
at amortised cost
loans and receivables 10554 11009
cash and cash equivalents 3626 2885
derivatives – fvtpl held for trading – 9
total financial assets 14180 13903
1
  financial assets exclude prepayments amounts due under longterm contracts other receivables and other noncurrent receivables as 
these are not considered to represent contractual entitlements to receive cash or other financial assets
for the year ended 30 september 2010
notes to the consolidated 
finan cial statements continued
8981silverdellar10midbacktpindd   58 101210   112234 overview business review governance financial statements
59 silverdell plc annual report and accounts 2010
21 financial instruments continued
b categories of financial instruments continued
2010
£’000
2009
£’000
financial liabilities
2
at amortised cost
trade and other payables 6381 9202
obligations under finance leases 41 132
other borrowings and overdrafts 7853 7416
derivatives – designated as cash flow hedges 71 157
total financial liabilities 14346 16907
2
  financial liabilities exclude tax and social security deferred income and other noncurrent payables as these are not considered to 
represent contractual obligations to transfer cash or other financial assets
c credit risk
the group’s principal financial assets are cash and cash equivalents and trade and other receivables which 
represent the group’s maximum exposure to credit risk in relation to financial assets
the group’s credit risk is primarily attributable to its trade and other receivables the amounts presented  
in the consolidated balance sheet are net of allowances for doubtful receivables estimated by the group’s 
management based on prior experience and their assessment of the current economic environment
credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in 
financial loss to the group the group has adopted a policy of only dealing with creditworthy counterparties 
as a means of mitigating the risk of financial loss from defaults 
the carrying amount of financial assets recorded in the financial statements which is net of impairment 
losses represents the group’s maximum exposure to credit risk 
the group’s exposure and the credit ratings of its counterparties are continuously monitored and the 
aggregate value of transactions concluded is spread amongst approved financial institutions 
 
trade receivables
trade receivables consist of a large number of customers spread across diverse areas within the uk and 
the group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer 
the demographics of the group’s customer base including default risk of the industry and country  
in which the customers operate has less of an influence on credit risk
the directors consider that the carrying amount of trade and other receivables which are noninterest 
bearing approximates to their fair value 
the group does not have any significant credit risk exposure to any single counterparty or any group  
of counterparties having similar characteristics the group defines counterparties as having similar 
characteristics if they are related entities 
before accepting any new customer the group runs credit checks to assess the potential customer’s credit 
quality the group monitors exposure to individual clients and all customers are subject to standard terms 
of payment for each division which are on average 30 days
8981silverdellar10midbacktpindd   59 101210   112234 60 silverdell plc annual report and accounts 2010
21 financial instruments continued
c credit risk continued
the analysis of trade receivables in excess of 30 days old but not impaired is as follows
2010
£’000
2009
£’000
31 – 60 days 2479 2800
61 – 90 days 859 1461
91 – 120 days 311 444
121 – 150 days 148 550
more than 151 days 715 524
4512 5779
the group establishes an allowance for impairment that represents its estimate of incurred losses in 
respect of trade and other receivables and investments when there is objective evidence that the asset is 
impaired the main components of this allowance are a specific loss component that relates to individually 
significant exposures and a collective loss component established for groups of similar assets in respect  
of losses that have been incurred but not yet identified the collective loss allowance is determined by 
references to past default experience and historical data of payment statistics for similar financial assets
 
movement in the provision for impairment
2010
£’000
2009
£’000
balance at beginning of the year 353 708
increase in impairment provision recognised 167 12
receivables written off as uncollectible 277 367
243 353
    
the creation and release of provisions for impaired receivables has been included in ‘administrative 
expenses’ in the income statement
in determining the recoverability of a trade receivable the group considers any change in the credit quality 
of the trade receivable from the date credit was initially granted up to the reporting date the concentration 
of credit risk is limited due to the customer base being large and unrelated accordingly the directors 
believe that there is no further credit provision required in excess of the above amount
for the year ended 30 september 2010
notes to the consolidated 
finan cial statements continued
8981silverdellar10midbacktpindd   60 101210   112234 overview business review governance financial statements
61 silverdell plc annual report and accounts 2010
21 financial instruments continued
d liquidity risk
liquidity risk is the risk that the group will not be able to meet its financial obligations as they fall due 
responsibility for liquidity risk management rests with the board of directors the group manages liquidity 
risk by maintaining adequate reserves banking facilities and reserve borrowing facilities by continuously 
monitoring bank covenant compliance forecast and actual cash flows and matching the maturity profiles  
of financial assets and liabilities details of additional undrawn facilities that the group has at its disposal  
to further reduce liquidity risk are disclosed in note 20
liquidity and interest risk tables
the following tables detail the group’s expected maturity for its financial assets and liabilities the tables 
below have been drawn up based on the undiscounted contractual maturities of the financial assets  
and liabilities no material interest is expected to accrue on the interest bearing assets which represent 
cash deposits
undiscounted cash flows
30 september 2010
book
 value
£’000 
less than
 1 month
£’000
13
months
£’000
3 months
 to 1 year
£’000
15 years
£’000
5 years
£’000
total
£’000
financial assets
noninterest bearing 10554 10554 – – – – 10554
variable interest rate instruments 3626 3626 – – – – 3626
14180 14180 – – – – 14180
financial liabilities
noninterest bearing 6422 6422 – – – – 6422
variable interest rate instruments 7924 2344 290 853 5253 – 8740
14346 8766 290 853 5253 – 15162
30 september 2009
book 
value
£’000 
less than
 1 month
£’000
13
 months
£’000
3 months
 to 1 year
£’000
15 years
£’000
5 years
£’000
total
£’000
financial assets
noninterest bearing 11018 11018 – – – – 11018
variable interest rate instruments 2885 2885 – – – – 2885
13903 13903 – – – – 13903
financial liabilities
noninterest bearing 9359 9359 – – – – 9359
variable interest rate instruments 7548 1223 1210 1211 5113 – 8757
16907 10582 1210 1211 5113 – 18116
8981silverdellar10midbacktpindd   61 101210   112235 62 silverdell plc annual report and accounts 2010
21 financial instruments continued
e interest rate risk
interest rate risk is the risk that the value of a financial instrument or cash flows associated with the 
instrument will fluctuate due to changes in market interest rates as the group has no significant interest
bearing assets the group’s income and operating cash flows are substantially independent of changes  
in market interest rates
the group is exposed to interest rate risk primarily though borrowing funds at floating interest rates 
borrowings issued at variable rates expose the group to cash flow interest rate risk the group manages 
interest rate risk on borrowings by ensuring access to diverse funding and through monitoring interest rate 
movements with weekly reports 
interest rate risk is reviewed on a regular basis and if considered necessary a strategy to minimise any 
potential risk through interest rate swaps will be discussed and implemented 
based on the various scenarios the group manages its cash flow interest rate risk by using a combination 
of floatingtofixed interest rate swaps and an interest rate cap the interest rate swap has the economic 
effect of converting borrowings from floating rates to fixed rates generally the group raises longterm 
borrowings at floating rates and swaps them into fixed rates that are lower than those available if the 
group borrowed at fixed rates directly under the interest rate swap the group agrees with other parties 
to exchange at specified intervals primarily quarterly the difference between fixed contract rates and 
floating rate instrument amounts calculated by reference to the agreed notional amounts the interest rate 
cap ensures that for the specified portion of borrowings floating rate interest will apply only up to  
a specified ceiling
the group’s exposures to interest rates on financial assets and financial liabilities are detailed below 
interest rate sensitivity analysis
if interest rates had been 100 basis points higher or lower and all other variables were held constant the 
group’s profit for the year and total equity at the year end would both increase or decrease by £61000 
2009 £48000 in respect to exposure to the group’s borrowings and cash and cash equivalents for 
floating rate liabilities the analysis is prepared assuming the amount of the liability at the balance sheet 
date was outstanding for the whole period
f fair value of financial instruments
the fair value of interest rate swaps is calculated at the present value of the estimated future cash flows
the directors consider that the carrying amounts of financial assets and financial liabilities recorded  
at amortised cost in the financial statements approximate to their fair values due to the short maturity  
of the instruments or because they bear interest at rates approximate to the market 
 
for the year ended 30 september 2010
notes to the consolidated 
finan cial statements continued
8981silverdellar10midbacktpindd   62 101210   112235 overview business review governance financial statements
63 silverdell plc annual report and accounts 2010
22 trade and other payables
2010
£’000
2009
£’000
noncurrent
other payables
1001 1001
in 2006 the group recorded a provision of £10m in respect of a contingent liability arising on the 
acquisition of silverdell uk limited the group has a corresponding asset relating to the indemnities from 
the vendors of silverdell uk limited in respect of this provision
2010
£’000
2009
£’000
current
trade payables 4037 5061
other taxation and social security 1733 1710
other payables 2344 4141
8114 10912
    
an analysis of the maturity of debt is given in note 21d 
the directors consider that the carrying amount of trade payables approximates to their fair value 
the group’s policy is to fix payment terms when agreeing the terms of each transaction it is the group’s 
general policy to pay suppliers according to the agreed terms and conditions provided that the supplier  
has complied with those terms 
trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing 
cost and they include retention amounts held over defect liability periods the average credit period taken 
for trade purchases is 54 days 2009 55 days for the group the group has financial risk management 
policies in place to ensure that all payables are paid within the credit timeframe
there are no suppliers who represent more than 10 of the total balance of trade creditors in either 2010 
or 2009
the group has financial risk management policies in place to ensure that all payables are paid within the 
credit timeframe therefore under the normal course of business the group is not charged interest  
on overdue payables
 
8981silverdellar10midbacktpindd   63 101210   112235 64 silverdell plc annual report and accounts 2010
23 share capital
 2010 2009
n o £’000 no £’000
authorised
ordinary shares of 1p each 260000000 2600 260000000 2600
deferred shares of 1p each – – 1132210521 11322
total 260000000 2600 1392210521 13922
allotted called up and fully paid
ordinary shares of 1p each 151654717 1516 151654717 1516
deferred shares of 1p each – – 374892471 3749
total 151654717 1516 526547188 5265
movement in issued share capital
at 1 october – 10p ordinary shares 526547188 5265 41654717 4165
1p deferred shares cancelled 374892471 3749 – –
10p ordinary shares cancelled – – 41654717 4165
1p ordinary shares created – – 41654717 416
1p deferred shares created – – 374892471 3749
placing of new 1p ordinary shares – – 110000000 1100
at 30 september 151654717 1516 526547188 5265
    
on 18 may 2009 the group completed a placing of 110 million new 1p ordinary shares at 5p per share 
raising cash funds of £55m before expenses and giving rise to a share premium of £44m in preparation 
for the placing the company’s ordinary shares of 10p each were divided into ordinary shares of 1p and 
deferred shares of 1p in a capital reorganisation each shareholder’s proportionate interest in the 
company’s equity was unchanged as a result
in march 2010 the company cancelled all the 1p deferred shares in issue
 
24 capital and other commitments
at 30 september 2010 the group had no capital commitments 2009 £nil
operating leases
the group had outstanding total commitments under noncancellable operating leases at 30 september 
which fall due as follows
 2010 2009
land and
buildings
£’000
other
£’000
land and
buildings
£’000
other
£’000
operating leases which expire
within one year 432 546 244 674
within two to five years 620 257 547 475
after five years 229 66 91 –
1281 869 882 1149
    
for the year ended 30 september 2010
notes to the consolidated 
finan cial statements continued
8981silverdellar10midbacktpindd   64 101210   112235 overview business review governance financial statements
65 silverdell plc annual report and accounts 2010
25 employee share schemes 
the group has adopted share incentive arrangement plans as set out below
equitysettled share option scheme
the group has a share option scheme for certain employees of the group options are exercisable at  
a price equal to the average quoted market price of the company’s shares on the date of grant the vesting 
period is three years if the options remain unexercised after a period of five years from the date of grant 
the options expire options are forfeited if the employee leaves the group before the options vest
details of the share options outstanding during the year are as follows
 2010 2009
n umber 
of share 
options
weighted
average
exercise price
£
number
of share 
options
weighted
average
exercise price 
£
outstanding at beginning of year 2905104 0945 3610472 1028
granted during the year 16710725 0087 – –
forfeited during the year 3635903 0773 705368 0938
outstanding at the end of the year 15979926 0087 2905104 0945
exercisable at the end of the year – – – –
    
the options outstanding at 30 september 2010 had a weighted average remaining contractual life of  
nine years 2009 202 years in 2010 options over 16710725 shares were granted on 24 march 2010  
the aggregate of the estimated fair values of the options granted on that date is £773000
of the options granted during the year 5400000 awarded to the chairman and executive directors have  
a marketbased performance condition dependent on the level of the company’s future share price  
the remaining options are subject to performance conditions relating to the company’s future adjusted 
earnings per share
the options with marketbased performance conditions were valued using the binomial method while 
other options were valued using the black scholes option pricing model
the inputs into the valuation models used for options granted each year are as follows
2010
£’000
2009
£’000
weighted average share price £0090 –
weighted average exercise price £0087 –
expected volatility 77 –
expected life 65 years –
riskfree rate 335 –
expected dividend yield 0 –
    
expected volatility was determined by calculating the historical volatility of the group’s share price over  
the previous 15 years 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 zero coupon uk government bonds with a term similar to the 
expected life of the option
8981silverdellar10midbacktpindd   65 101210   112235 66 silverdell plc annual report and accounts 2010
26 contingent liabilities
there are group cross guarantees from the company for all monies due to certain of the group’s banks  
and surety lenders no monies were outstanding at 30 september 2010 2009 £nil in the normal course 
of business there are contingent liabilities including the provision of bonds in respect of completed and 
uncompleted contracts
27 related party transactions
during the year to 30 september 2010 the group paid £30000 2009 £176000 to marwyn capital llp  
for corporate finance services and directors’ fees and £92071 2009 £55000 to marwyn partners limited 
for rent and other office services at the end of that year £nil 2009 £nil remained outstanding
mark watts is a partner in marwyn capital llp and marwyn investment management llp and a 
shareholder in marwyn investments group limited which owns 100 of marwyn partners limited 
marwyn neptune fund lp is managed by marwyn investment management llp and beneficially owns 
shares and warrants in the group
during the year to 30 september 2010 kalistar llp  a partnership of certain of the executive directors  
of silverdell uk limited charged £48000 2009 £48000 for the provision of cars used by some of the 
directors of silverdell uk limited at the end of that year £nil 2009 £nil remained outstanding
one property occupied by silverdell uk limited is owned by the pension fund in which sean nutley has  
an interest the property is subject to a market rent of £29000 2009 £29000 per annum and £nil  
2009 £7000 remained outstanding at the year end
for the year ended 30 september 2010
notes to the consolidated 
finan cial statements continued
8981silverdellar10midbacktpindd   66 101210   112235 overview business review governance financial statements
67 silverdell plc annual report and accounts 2010
at 30 september 2010
company balance sheet
notes
2010
£’000
2009
£’000
fixed assets
investments 30 23943 23793
tangible assets 31 38 –
23981 23793
current assets
debtors amounts falling due within one year 32 6371 1600
creditors amounts falling due within one year 33 10129 3956
n et current liabilities 3758 2356
total assets less current liabilities 20223 21437
creditors amounts falling due after one year 33 4755 4493
total net assets 15468 16944
capital and reserves
called up share capital 23 1516 5265
share premium account 34 17813 17813
equity reserve 34 464 334
other reserve 34 16635 16635
capital reserve 34 3749 –
profit and loss account 34 24709 23103
total shareholders’ funds 15468 16944
     
the financial statements were approved by the board of directors and authorised for issue on 
30 november 2010 
they were signed on behalf of the board of directors
 
ian johnson
director
company number 5755897
8981silverdellar10midbacktpindd   67 101210   112235 68 silverdell plc annual report and accounts 2010
at 30 september 2010
n otes to the company  
finan cial statements
28 significant accounting policies
the separate financial statements of the company have been prepared on the historical cost basis and 
under the going concern assumption the accounting policies are summarised below and have been 
applied consistently throughout the year and the preceding year the separate financial statements  
are presented as required by the companies act 2006 as permitted by that act the separate financial 
statements have been prepared in accordance with united kingdom accounting standards
taxation
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 and expense se that are taxable 
or deductible in other years and it further excludes items which are never taxable or deductible the 
company’s liability for current tax is calculated using tax rates that have been enacted or substantively 
enacted at the balance sheet date 
deferred taxation is provided in full on all timing differences that result in an obligation at the balance 
sheet date to pay more tax or a right to pay less tax at a future date subject to the recoverability of 
deferred tax assets deferred tax assets and liabilities are not discounted
sharebased payments
the company has applied the requirements of frs 20 sharebased payment in accordance with the 
transitional provisions frs 20 has been applied to all grants of equity instruments after 7 november 2002 
that had not vested as at 1 january 2005
the company makes equity settled sharebased payments to the directors which are measured at fair 
value at the date of grant the fair value of share options issued with nonmarket vesting conditions has 
been calculated using the black scholes model for all other share awards the fair value is determined by 
reference to the market value of the share at the date of grant for all share schemes with nonmarket 
related vesting conditions the likelihood of vesting has been taken into account when determining the 
associated charge vesting assumptions are reviewed during each reporting period to ensure they reflect 
current expectations
the company also makes equity settled sharebased payments to certain employees of certain subsidiary 
undertakings equity settled sharebased payments that are made to employees of the company’s 
subsidiaries are treated as increases in equity over the vesting period of the award with a corresponding 
increase in the company’s investments in subsidiaries based on an estimate of the number of shares that 
will eventually vest
any payments received from subsidiaries are applied to reduce the related increases in investments in 
subsidiaries
accounting for sharebased payments is the same as under ifrs 2 and details on the schemes and option 
pricing models relevant to the charge included in the company financial statements are set out in note 25 
to the consolidated financial statements of the group for the year ended 30 september 2010
investments
investments represent equity holdings in subsidiaries joint ventures and associates and are held at cost 
less provision for impairment
8981silverdellar10midbacktpindd   68 101210   112235 overview business review governance financial statements
69 silverdell plc annual report and accounts 2010
28 significant accounting policies continued
tangible fixed assets and depreciation
tangible fixed assets are stated at historic purchase cost net of accumulated depreciation and any provision 
for impairment cost comprises the original purchase price of the asset and the cost attributable to bringing 
the asset to its working condition for its intended use depreciation is provided on all tangible fixed assets 
at rates calculated to write off the cost or valuation less estimated residual value of each asset on  
a straightline basis over its expected useful life as follows
computer equipment 33 on cost
impairments in the value of fixed assets are charged to the profit and loss account
29 parent company profit and loss account
the company has taken advantage of the exemption afforded by the companies act 2006 and has not 
presented its own profit and loss account the loss for the year dealt with in the financial statements of the 
parent company is £1606000 2009 loss £4560000
30 investments
2010
£’000
cost
at 1 october 2009 40513
capital contributions to subsidiaries arising from sharebased payments 150
at 30 september 2010 40663
impairment
at 1 october 2009 and 30 september 2010 16720
carrying amount
at 30 september 2010 23943
at 30 september 2009 23793
    
details of the principal subsidiary undertakings are as follows
company
country 
of incorporation
proportion of 
ordinary shares held principal activity
silverdell uk ltd england and wales 100 asbestos and environmental services
redhill analysts ltd england and wales 100 consultancy services
kitsons group ltd england and wales 100 asbestos and environmental services
31 tangible fixed assets
the company acquired owned computer equipment with a cost of £55000 2009 £nil during the year  
and incurred a depreciation charge on these assets of £17000 2009 £nil as there were no fixed assets  
at the start of the year and no disposals the closing net book value of tangible fixed assets was £38000 
2009 £nil
8981silverdellar10midbacktpindd   69 101210   112235 70 silverdell plc annual report and accounts 2010
32 debtors
amounts falling due within one year
2010
£’000
2009
£’000
other debtors and prepayments 265 94
amounts due from group undertakings 5106 1311
corporation tax recoverable 985 195
deferred tax asset 15 –
6371 1600
the deferred tax asset relates to timing differences on tangible fixed assets and arose during 2010
33 creditors
amounts falling due within one year
2010
£’000
2009
£’000
bank overdraft 2340 1160
bank loans 759 1763
other creditors and accruals 306 493
amounts due to subsidiary undertakings 6724 540
10129 3956
    
the carrying amount of trade payables approximates to their fair value
amounts falling due after more than one year
2010
£’000
2009
£’000
bank loan 4755 4493
    
full details of the company’s bank loans are disclosed in notes 20 and 21 to the group financial statements
34 share premium account and reserves
share
 premium 
account
£’000
equity
reserve
£’000
other
reserves
£’000
capital
reserve
£’000
profit 
and loss
account
£’000
total
£’000
at 1 october 2009 17813 334 16635 – 23103 11679
sharebased payment charge in the year – 130 – – – 130
retained loss for the year – – – – 1606 1606
shares cancelled – – – 3749 – 3749
at 30 september 2010 17813 464 16635 3749 24709 13952
     
other reserves are not distributable and relate to the premium arising on shares issued as consideration for 
the acquisition of subsidiary companies and warrants issued to marwyn neptune fund lp in consideration 
for their participation in placing of shares on 19 july 2006
the capital reserve arose from the cancellation of the deferred shares of 1p in march 2010 and is 
considered to be a nondistributable reserve
35 related parties
the company has taken advantage of the exemption available under frs 8 related party disclosures not  
to disclose details of transactions between wholly owned group companies 
at 30 september 2010
n otes to the company 
finan cial statements continued
8981silverdellar10midbacktpindd   70 101210   112235 overview business review governance financial statements
71 silverdell plc annual report and accounts 2010
advisors  
registered office
14 buckingham street
london wc2n 6df
joint company secretary
tmf corporate secretarial services limited
pellipar house
1st floor
9 cloak lane
london ec4r 2ru 
solicitors
dla piper uk llp
101 barbirolli square
bridgewater
manchester m2 3dl 
registrars
capita irg plc
the registry
34 beckenham road
beckenham
kent br3 4tu
auditors
kpmg audit plc
8 salisbury square
london ec4y 4bb
n omad and broker
finncap ltd
60 new broad street
london ec2m 1jj
f inancial pr
college hill associates ltd
the registry
royal mint court
london ec3n 4qn
8981silverdellar10midbacktpindd   71 101210   112235 72 silverdell plc annual report and accounts 2010
information o n asbestosrelated diseases
about mesothelioma
mesothelioma also called ‘malignant mesothelioma’ 
is pronounced ‘meezohtheeleeohmah’ it is 
sometimes called ‘meso’ for short by people who 
have or work with the disease but people 
generally use the full name 
mesothelioma is one of the more difficult diseases 
that people their doctors friends and families have 
to face it is a form of cancer almost always caused 
by exposure to asbestos many years ago 
what is mesothelioma
mesothelioma is a type of cancer it happens in  
the ‘mesothelium’ – a thin lining in your chest and 
your abdomen 
mesothelioma in the chest
your chest lining has two layers the inner layer lines 
your lung and the outer layer lines your chest wall 
the space between the two layers contains a small 
amount of fluid this lubricates the two surfaces and 
lets the lung and chest wall move and expand as you 
breathe when a tumour grows within the chest 
lining it causes it to thicken at first then it spreads 
within the space between the layers the tumour 
often produces fluid sometimes several litres 
mesothelioma in the abdomen
the abdominal cavity the bit below the diaphragm 
and bowel are also covered by a lining like the 
chest lining it has two layers the inner layer covers 
the organs in the abdomen the stomach etc and 
the outer layer lines the wall of the abdomen a 
tumour can start within this lining it causes the 
lining around the organs in the abdomen to thicken 
the link with asbestos
the connection between mesothelioma and 
asbestos was discovered in 1960 by 1960 the 
production and use of all forms of asbestos had 
increased worldwide it continued to grow for  
at least 15 more years this has been reflected by 
widespread cases of mesothelioma 30 to 40 years 
later 
it wasn’t until the mid 1970s that the dangers of 
asbestos became generally recognised and action 
was taken the use of asbestos within industry 
began to be phased out and health and safety 
regulations were updated
asbestos is the cause of over 90 per cent of cases  
of mesothelioma the other causes of the disease 
are not fully understood smoking does not cause 
mesothelioma neither does exposure to modern 
fireresistant materials like fibreglass
what is asbestosis
asbestosis is a type of scarring of the lung caused  
by asbestos fibres which have lodged in the lungs 
after being inhaled from the air the scarring causes 
the lungs to shrink resulting in breathlessness 
asbestosis develops in some people who have 
breathed in a substantial amount of asbestos dust  
in the course of their work it usually shows itself a 
long time after dust inhalation often 20 or 30 years 
after exposure
other diseases caused by asbestos
asbestos causes a number of diseases other than 
asbestosis the term ‘asbestosis’ is commonly used 
by the media to refer to any diseases caused by 
asbestos and this can lead to confusion other 
conditions caused by asbestos include 
pleural thickening the pleura is a twolayered 
membrane which surrounds the lungs and lines the 
inside of the rib cage some asbestos fibres inhaled 
into lungs work their way out to the pleura and may 
cause fibrosis or scarring to develop there this 
causes the pleura to thicken and this may show up 
on a chest xray pleural thickening occurs in two 
forms diffuse pleural thickening extends over  
a large area and may restrict expansion of the lungs 
leading to breathlessness pleural plaques are 
localised areas of pleural thickening which usually 
do not interfere with breathing
lung cancer exposure to asbestos increases the risk 
of developing lung cancer a very important point  
is that asbestos exposure and smoking act together 
to produce a huge risk of lung cancer in people 
exposed to both hazards fortunately this means 
that people who have been exposed to asbestos  
can greatly reduce the risk of lung cancer by not 
smoking
source british lung foundation
8981silverdellar10midbacktpindd   72 101210   112235 who we are 
silverdell plc works with major organisations both here 
and overseas whose executives have a duty to protect 
people assets and reputation
silverdell group provides peace of mind through its 
specialist environmental support services majoring  
on the management of asbestos and other hazardous 
materials 
which means our customers know that their interests  
are always protected
the group provides managed solutions for the assessment survey safe handling and removal of  
hazardous or potentially hazardous waste the group’s collaborative approach supports remediation  
and refurbishment projects and serves ongoing maintenance contract requirements for access and 
regulatory compliance working across the public private construction and industrial markets  
silverdell is committed to creating an improved and protected environment in which to live and work
from its origins in asbestos and licensed waste the group has developed into a highquality specialist 
environmental support services and regeneration organisation providing innovative solutions which  
meet customer requirements safely and costeffectively 
this has been achieved through growth in key market sectors these include the public sector defence 
nuclear transport utilities construction and industrial and petrochemical markets which provide  
a diverse range of commercial opportunities a track record of winning and delivering some of the largest 
and most challenging projects around the country is testament to the technical expertise within the group
o verview
01 group financial highlights
02 our approach
04 at a glance
06 industry review
08 chairman’s statement
10 qa with sean nutley  
 chief executive
12 delivering value
business review
18  chief executive’s statement
25 financial review
26 key risks and mitigations  
g overnance
28   directors and senior 
management 
30 directors’ report
34  corporate governance  
and risk management
35  independent auditors’ report  
to the members of silverdell plc
financial statements
36 consolidated income statement
37  consolidated statement  
of comprehensive income
38 consolidated balance sheet
39  consolidated statement  
of changes in equity
40  consolidated statement  
of cash flows
41  notes to the consolidated 
financial statements
67 company balance sheet
68  notes to the company 
financial statements
71  advisors
72  information on asbestos 
related diseases
our online resources
silverdell communicates its 
financial performance as well as 
providing additional information 
about the group on its website  
wwwsilverdellplcuk
silverdell’s annual report and 
accounts are available to view 
online or to download from  
wwwsilverdellplcukreportsasp
other silverdell plc group 
companies can be found at  
wwwsilverdellcouk
wwwkitsonscouk
wwwredhillscouk
wwwsilverdellacademycouk
many of the statistics and facts concerning asbestos and mesothelioma have been sourced from the following hse health and safety 
executive 2010 mesothelioma deaths – the latest picture for great britain geographical analysis 19812005 and occupational analysis 
20022005 httpwwwhsegovukstatisticscausdismesotheliomafactsheetshtm world health organisation fact sheet no 343 july 2010 
hse website – asbestosrelated disease statistics frequently asked questions and answers – updated august 2010 action mesothelioma day 
2010 campaign guide – british lung foundation tuc 1422002 tuc asbestos advisory information the british lung foundation website
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8981silverdellar10covtp 2indd   2 101210   103235  pro t e ct i n g l i v e s
creating value
silverdell plc annual report and accounts 2010 silverdell plc
14 buckingham street
london wc2n 6df
wwwsilverdellplcuk
silverdell plc annual report and accounts 2010
8981silverdellar10covtp 2indd   1 101210   103235


Summary:
 overview business review governance financial statements
01 silverdell plc annual report and accounts 2010
highlights •  gross profit margin up 14 ppts at 259 2009 245
•  ebitda
1
 up 70 at £39m 2009 £23m
•  adjusted pretax profit
2
 up 317 at £25m 2009 £06m
•  statutory profit before tax of £18m 2009 loss of £69m
•  net debt down £04m at £43m 2009 £47m
•  gearing down 3 ppts at 23 2009 26
•  banking facilities renegotiated on improved terms to march 2014
•  administrative costs
2
 down 12 to £115m 2009 £131m
1
  earnings before interest tax depreciation and amortisation and also before goodwill  
impairment sharebased payments and nonrecurring items
2
 before nonrecurring items impairments and amortisation see note 11
g roup financial highlights 
 2010 2009
 £m £m
continuing operations
turnover 567 595
operating profitloss 25 57
adjusted operating profit
1
 31 16
adjusted operating margin
1
 55 27
 pence pence 
earnings per share  
adjusted basic
2
 09 08
basic 05 73
diluted 05 73
1
  before nonrecurring items impairments and amortisation see note 11
2
 before nonrecurring items impairments amortisation and sharebased payments see note 12
8981silverdellar10frttp 2indd   1 101210   105242