pages34a clear strategy to deliver shareholder value
 
pages512anite is well positioned for growth in the lte market 
pages1619in good financial shape to benefit from our investments 
investing for the future
200820092010201120122013

“anite plc is 
an international 
software and 
solutions company”
shop
test
35
test
nt
test
 network 
testing
test
travel
£
search   price   book 
wireless
handset 
testing
09  2010  0 2 11  2012  2013  2014 2015 2 1 01 01 
 annual report 
 and accounts 
 2010  cafe
stadium
hospital
travel agent phones
nt
nt
park
35
station
nt
cafe
stadium
hospital
travel agent phones
nt
nt
park
35
station
nt
overview
 1 anite
 2 anite at a glance
 3 chairman’s statement
review
 5 chief executive’s review
 13 review of operations
 15 group key performance indicators
 16 financial review 
management and governance
 20 directors
 22 report of the directors
 25 corporate governance report
 31 remuneration report
 37 report of the audit committee
financial statements
 38 statement of directors’ responsibilities
 39 independent auditors’ report group
 40 consolidated income statement
 4 0 consolidated statement of comprehensive income
 4 1 consolidated statement of changes in equity
 42 consolidated balance sheet
 43 consolidated cash flow statement
 44 notes to the accounts
 79 fiveyear summary
 80 independent auditors’ report company
 81 company balance sheet
 82 company statement of comprehensive income
 82 company statement of changes in equity
 83 company cash flow statement
 84 notes to the company accounts
additional information
 94 glossary of terms
 95 shareholder information
 96 advisers and offices
 contents  aniteannual report and accounts 2010     1
overview
cafe
stadium
hospital
travel agent phones
nt
nt
park
35
station
nt
anite plc is an international  software  and solutions company our 
proprietary handset and network testing systems for the  wireless  market 
and reservation and ecommerce solutions for the  leisure travel  industry 
are based on our  comprehensive knowledge  of both sectors
our  450 employees  work with many of the world’s leading wireless and 
travel companies from our headquarters in the  uk  and from offices in 
11 countries across  europe north america asia  and the  middle east   
our services which include implementation systems integration and 
maintenance enable us to  meet our customers’ needs  and to  achieve  
 their expectations  
 anite  2     aniteannual report and accounts 2010
overview
this annual report contains forwardlooking statements these forwardlooking statements are not guarantees of future performance rather they are based on current views 
and assumptions and involve known and unknown risks uncertainties and other factors that may cause actual results to differ from any future results or developments expressed 
or implied from the forwardlooking statements each forwardlooking statement refers only to the date of the particular statement and save to the extent required by the 
applicable law or regulation we do not undertake any obligation to update or renew any forwardlooking statement
travel
anite supplies systems to help leisure travel 
companies run their businesses profitably 
continuing market consolidation results in 
fewer companies managing ever larger 
volumes of travellers our technology enables 
them to achieve this while managing costs 
offering an increasing range of products and 
improving productivity and customer service
network testing 
anite helps network operators and  
basestation manufacturers manage  
their businesses efficiently we supply a 
range of tools to enable them to collect  
and analyse data on coverage and 
performance and to check that networks 
are strong enough to minimise “dropped” 
calls and that phones will work on  
different operators’ networks
handset testing
anite helps chipset and handset 
manufacturers design efficient mobile 
phones and bring them to market quickly 
and costeffectively our systems enable  
the manufacturers to ensure that their  
new products conform to industry 
standards meet endcustomers’ 
expectations and are able to communicate 
with other devices on all networks
 anite at a glance 
operating highlights
  wireless
   successful launch of anite 4g lte product range
   increased investment in rd £132m 2009 £108m
   trading improvement in second half in both handset  
and network testing
   good q4 progress
  travel
   underlying trading in line with rebased expectations
   further progress with comres tui germany golive
   initial orders from tui uk and rewe germany 
  orders
   intake £823m 2009 £776m
   closing order book £624m 2009 £593m 
   booktobill ratio 10 2009 09
divisional structure
travel
financial highlights adjusted
1
  revenue £788m 2009 £901m
  operating profit £119m 2009 £200m
  operating margin 151 2009 222  
–  operating margins of 14 for wireless  
and 24 for travel
  profit before tax £99m 2009 £181m
  basic earnings per share 24p 2009 44p
  net cash £298m 30 april 2009 £273m 
  swap liability capped at £216m
statutory results
  revenue from continuing operations £788m 2009 £901m
  operating loss from continuing operations £18m 2009 
profit £94m
  loss from continuing operations before tax £40m 2009 
profit £64m
  loss for the period £34m 2009 profit £363m
  basic loss per share 12p 2009 earnings per share 113p
  diluted loss per share 12p 2009 earnings per share 108p
  proposed final dividend 065p per share 2009 065p  
making a total of 095p 2009 095p
1  adjusted results are for continuing operations before sharebased payments 
impairment of goodwill impairment and amortisation of acquired intangible 
assets restructuring costs other gains and losses and recycled hedge losses
wireless
nt
nt
nt aniteannual report and accounts 2010     3
anite had a good finish to the financial 
year in both its divisions we believe that 
the success and leadership of our products 
in their respective markets will result in 
future profitable growth
overview
the highlights of the year were the launch of 
our new wireless 4g lte lte product range 
anite 9000 and the continuing development 
handset and chipset customers this success 
is being underpinned by focusing on lte as 
the global 4g wireless technology of choice
although still in its early development phase 
lte is beginning to be widely adopted the 
smartphone revolution and the pressure that 
is putting on operators’ networks means lte 
is a much more vital technology upgrade 
than was the transition from 2g to 3g
of our successful comres travel reservation 
system these products the leaders in their 
respective markets are the foundations for 
our future profitable growth
the changes we made to our lte product 
strategy have put us in a much stronger position 
to control the pace of the commercialisation 
of our offer they have resulted in early 
success for our product with tier 1 global 
clay brendish
chairman
a clear strategy
to deliver shareholder value
revenue by business 2010 revenue by business 2009
 chairman’s statement 
overview
£788m
2010 total
£358m
handset
testing
£230m
£200m
network
testing
travel
£901m
2009 total
£377m
handset
 testing
£311m
travel
£213m
network
testing 4     aniteannual report and accounts 2010
overview
£119m
2010 total
£35m
handset
testing
£56m
travel
£45m
network
testing
£200m
2009 total
£71m
handset
testing
£95m
travel
£69m
network
testing
the board
on 2 november 2009 richard amos was 
appointed as group finance director richard 
who is a chartered accountant was previously 
group finance director at a number of private 
and public companies he took on the 
additional role of company secretary in 
february 2010 following john sadler’s 
resignation the board thanks john for the 
contribution he made over the past four years 
on 5 october 2009 paul taylor was appointed 
as a nonexecutive director and subsequently 
as chairman of the audit committee paul has 
been group finance director of aveva group 
plc since march 2001 and is a fellow of the 
chartered association of certified accountants
on 8 december 2009 david hurstbrown  
a nonexecutive director since 2004 was 
appointed the company’s senior independent 
director on the same date peter bertram a 
nonexecutive director since 2004 stepped 
down from the board the board thanks peter 
for the valuable contribution he made both 
as a board member and as chairman of the 
audit committee
people
on behalf of the board i thank all 
employees for their contribution hard work 
and support during the year
group summary 
although we had a difficult start to last year 
there were signs of recovery in the second 
half during the year we continued to invest 
in our products and are now well positioned 
to move forward
trading in the opening part of this year has 
started well in line with our expectations 
and we look forward to making progress 
through the year
clay brendish
chairman
5 july 2010 
as a consequence of these factors results  
for 200910 are generally lower than those  
for the previous year although they still 
demonstrate the strength of our divisions 
adjusted operating margins of 14 were 
reported by the wireless division and 24 by 
the travel division encouragingly the group 
closed the financial year well performance in 
q4 meant that fullyear orders were up 6 
on the previous year and the booktobill 
ratio was just over one times
adjusted profit before tax for the group was 
£99m 2009 £181m on revenues down 
13 at £788m 2009 £901m
adjusted basic earnings per share were 
down 45 to 24p 2009 44p we are 
however proposing to maintain the final 
dividend at 065p per share 2009 065p 
giving an unchanged total dividend of 095p 
2009 095p the dividend will be paid on 
26 october to shareholders on the register 
at 17 september 2010
balance sheet and cash
the group has a strong balance sheet with 
net cash resources and significant undrawn 
bank facilities net cash as at 30 april 2010 was 
£298m 30 april 2009 net cash of £27 3m
as previously announced the board took 
action towards the end of the year to cap 
the currency swap liability that had built  
up since we acquired the network testing 
business in 2006 full details are given in  
the financial review the important point  
is that the maximum liability is now certain 
at £216m with some potential for this to 
decrease if the euro weakens significantly 
against sterling over the next 18 months 
the level of net cash reported above is 
before taking account of the liability on  
the group’s currency swap
at the end of a particularly testing year 
travel was stronger and better positioned  
as a result of the progress it made with  
comres and with its key customers in the 
uk and germany
strategy
our strategy is to position anite as a global 
leader in wireless test solutions and to take 
advantage of the future opportunities that 
will emerge from the development and 
rollout of lte technology
the board believes that wireless is a 
longterm growth market which has high 
barriers to entry and limited competition  
in those areas in which anite operates  
this makes it possible to achieve good margins 
and returns on the investments needed to 
maintain our technological leadership
in travel our strategy is to optimise the 
business’s longterm value to achieve this 
we will continue to strengthen and improve 
its market position through the successful 
development of comres 
results
the backdrop against which anite’s results 
were delivered in 200910 provided many 
challenges in addition to the welldocumented 
recessionary pressures around the world  
our specific markets also faced a technology 
change as customers reduced spending  
on legacy technologies in anticipation of their 
need to invest in the launch of the 4g market 
in recognition of the pressures this placed on 
revenue and profitability anite’s wireless 
division rightly pressed ahead with 
development plans to ensure that it is well 
placed for the beginning of the 4g cycle  
the resulting record investment made in the 
year also had an impact on profitability at the 
same time the travel division was faced with a 
reduction in the scale of its business as a result 
of the customer consolidation and losses that 
occurred in the previous financial year
 chairman’s statement  continued 
adjusted operating profit by business 2009 adjusted operating profit by business 2010
 includes central costs of £17m 2009 £35m aniteannual report and accounts 2010     5
review
 chief executive’s review  
anite is well positioned
for growth in the lte market
christopher humphrey
chief executive
in the travel division as indicated in last 
year’s report norwich union’s decision not 
to renew its contract for us to manage some 
of its it services together with the loss of 
customers as a result of them being acquired 
or going into liquidation meant that revenue 
and profit were lower than in the previous 
year in recognition of this we reduced the 
cost base to align with the lower revenue 
revenue and profit were further affected 
when in december 2009 the globespan 
group went into administration despite the 
impact of these events on the business we 
continued to develop our relationship with 
europe’s largest travel operator tui and 
expect to realise the benefit of that 
relationship over the next few years
our markets
anite is structured into two marketfacing 
divisions wireless and travel the wireless 
division consists of two businesses handset 
testing provides specialist systems hardware 
and software to enable chipset and mobile 
phone manufacturers to design new mobile 
phone and data card devices efficiently 
to begin selling products for testing  
lte – the technology for the next
generation of mobile phones – and 
during the second six months of the year 
that combined with some recovery in 
customers’ budgets resulted in improved 
secondhalf revenue for both handset 
testing and network testing
over the years we have worked in 
partnership with a number of hardware 
suppliers most recently agilent for 2g 
technology three years ago we decided 
to collaborate with agilent on the lte 
hardware platform they were developing 
following delays in its development 
however we decided to end this partnership 
and to provide our own hardware which 
we had been developing to test and 
demonstrate our lte software while the 
main hardware platform was being finalised 
this proprietary anite hardware solution has 
now been developed into a final production 
model it is being sold to and is being 
well received by key handset and chipset 
customers throughout the world 
i am happy to report to you that despite 
a very demanding year the business is in 
good shape we have continued to invest 
in our new products and as a result are 
well positioned to supply our markets as 
they start to improve
overview
the restricted financial environment 
had a significant affect on our wireless 
customers’ spending in the first half of 
last year but in the second half the slight 
easing of economic conditions combined 
with the availability of early stage 4g lte 
hardware systems towards the end of the 
year resulted in performance beginning 
to improve
we continued to invest in new products 
throughout the financial year in the 
travel division we continued to develop 
our comres software and in the 
wireless division we continued to invest 
in developing new products for handset 
testing our change in lte hardware 
strategy enabled the handsets business   6     aniteannual report and accounts 2010
review
our automated solutions for development 
testing and conformance testing which 
have a long lifespan and are easy to use help 
manufacturers to reduce costs and show 
a clear return on investment by enabling 
them to identify and resolve problems early 
in the development process we are unique 
in allowing licences to be shared across rd 
sites and our common hardware platform 
enables solutions also to be used across 
departments our software reduces costs 
and improves quality and timetomarket 
by simulating true network conditions in the 
lab in addition because the large network 
operators are concerned about the way 
operators accommodation providers and 
cruise and ferry operators
wireless
handset testing
new handsets and chipsets have to go 
through a series of compliance tests while 
they are being developed and before they 
can be launched onto the market the 
handset testing business provides customers 
with the technology to test handsets’ 
viability by simulating the network and 
their conformance with industry standards 
and their ability to interoperate with other 
devices across a wide range of networks
and to bring them to the market quickly 
network testing provides technology 
to enable mobile network operators 
mnos which build and operate mobile 
phone networks to test the efficiency and 
effectiveness of their systems and to carry 
out live testing with different makes of 
handsets to ensure a consistently high
quality service for mobile phone users
the travel division provides industryleading 
reservation and ebusiness systems to help 
leisure travel companies run their businesses 
profitably these include tour operators 
specialist holiday companies leisure park 
 chief executive’s review  continued
hello
handset testing 
network testing
test
test
the 
future 

test
nt
development testing 
conformance testing  
interoperability and 
performance testing 
35
test
book 
of
standards
future
standards
nt
indoorhandheld 
drive testing 
benchmarking 
nt
autonomous 
post processing 
shop
q

a
handset testing
what does anite handset 
testing do
anite helps chipset and 
handset manufacturers 
design efficient mobile 
phones and bring 
them to market quickly 
and costeffectively 
our systems enable 
the manufacturers to 
ensure that their new 
products conform to 
industry standards 
meet endcustomers’ 
expectations and are 
able to communicate 
with other devices on 
all networks they also 
enable mobile network 
operators to optimise 
the performance and 
interoperability of 
handsets on their 
networks
what products and 
services do you offer
development toolset 
supports all phases 
of development from 
helping developers 
test designs before the 
final chipset hardware 
is ready to systems 
integration and 
verification 
sath is a host tester 
which supports all  
the 3gpp technologies 
including lte it is 
used for extensive 
development 
integration and 
regression testing 
of protocol stack 
software
 anite in wireless testing solutions  aniteannual report and accounts 2010     7
hello
handset testing 
network testing
test
test
the 
future 

test
nt
development testing 
conformance testing  
interoperability and 
performance testing 
35
test
book 
of
standards
future
standards
nt
indoorhandheld 
drive testing 
benchmarking 
nt
autonomous 
post processing 
shop
our range of testing products extends back 
to the firstgeneration digital technology 
2g new mobile devices do not operate 
on a single technology and consequently 
devices must be able to switch seamlessly 
between all available technologies to 
maintain a connection the need for legacy 
and newgeneration technology to be 
present in one phone makes it very difficult 
for new entrants to the market to be able  
to provide a comprehensive product range
in the past two to three years the use of 
mobile phones and wirelessconnected 
devices including smartphones data 
market each year and the constant changes 
in mobile phone technology which in turn 
are driven by the continued growth in 
subscribers in the 37 years since motorola 
invented the first portable cellular phone 
mobile phones have progressed from being 
the proverbial brick with an aerial which 
could simply make and receive calls to 
today’s tiny multifunction devices while 
the number of subscribers has grown to 
approximately 46 billion – more than 60 
of the world’s population 
there have been multiple phone 
technologies launched in that time and 
devices perform on their networks a number 
of them specify that manufacturers must 
validate their devices on an anite tester 
at the start of the design process customers 
expect us to be technically innovative and 
responsive to their needs while a large 
proportion buys our standard products  
for major customers we are also able to 
offer a degree of customisation
the principal drivers of the business are the 
evolution of new phone technology the 
number of new handset models data cards 
and “dongles” which are brought onto the 
conformance toolset 
tests devices to ensure 
that they comply with 
industry standards 
and deliver the service 
expected by endusers 
in common with all 
our applications its 
scalable architecture 
enables it to be used 
for testing the widest 
range of technologies 
from gsm to lte
sas is a “reallife” 
network simulator 
that enables devices 
to be tested during 
integration and for 
interoperability and 
performance it is 
a complementary 
approach to costly 
field trials
saslite is a lowcost 
network simulator 
for “reallife” 
interoperability and 
performance testing 
test services enables 
customers to maximise 
the use of anite 
test products while 
reducing development 
costs and timeto
revenue
what differentiates you 
from your competitors
our marketleading 
technology enables us 
to be agile innovative 
and responsive our 
automated solutions 
have a long lifespan 
and are easy to use we 
enable our licences to 
be shared across rd 
sites and our software 
simulates “reallife” 
network conditions in 
the lab 
where are your 
headquarters
in fleet hampshire uk
what is your strategy
to become a world 
leader in handset testing 
by completing our lte 
solution penetrating 
all three testing 
markets – development 
conformance and 
interoperability 
developing our range 
of products and tools 
and increasing sales 
to network operators 
worldwide 8     aniteannual report and accounts 2010
review
the us and during the year we developed 
solutions for china’s own version of lte 
tdlte this we believe will give us an 
advantage in the development of that 
testing market since the inception of lte 
we have consistently led the conformance 
testing market and we currently lead the 
market in the development of conformance 
test cases the conformance test market is 
driven by certification schemes administered 
by the standard setters for example gcf 
the lte certified scheme is expected to go 
live in early 2011 and around that time we 
expect the conformance testing market to 
begin to gather momentum the industry 
has so far defined around 200 conformance 
tests for lte 100 of which we have already 
implemented and had validated by the 
standards setters – more than double  
that of our nearest competitor
network testing
our network testing business provides 
products for mobile network operators 
mnos and network manufacturers to 
measure the coverage and quality of mobile 
phone networks we provide a range of tools 
that can be used to check the performance 
of networks at different stages of their 
life cycles our tools can not only be used 
to measure the quality of radio frequency 
metrics but also enable our customers  
to see how end users perceive the quality  
of the mobile phone networks using quality  
of service and end user metrics 
during the year we continued to increase 
sales coverage and now operate in more than 
90 countries usually with local partners who 
also offer technical support to customers 
and support all major network standards 
including lte 
our measurement tools are designed to meet 
the needs of all our endcustomers whatever 
their internal processes and however they 
choose to do their testing they provide a 
a period of economic recession has put 
pressure on the speed of the network roll
out industry giants such as att china 
mobile verizon and vodafone are however 
now committed to being in the early wave 
of this investment and are requiring handset 
manufacturers – the majority of which are 
our customers – to prove the technology 
on their products and that is where our 
handset testing solutions are increasingly 
used over the 12 months following the roll
out of networks 4g data devices initially 
cards and dongles will be sold and will be 
followed by 4g phones and other devices 
these data cards and phones all need similar 
amounts of testing
handset testing strategy
we continue in our objective to position  
the handset testing business as a world 
leader in its field to achieve that we aim  
to complete our lte solution and to secure 
market penetration of all three testing 
phases – development conformance and 
interoperability to develop the range of 
products and tools we offer customers 
and to increase sales to network 
operators worldwide
lte is no exception to the rule that demand 
for more and more powerful applications 
drives advances in technology hardware  
lte is a complex standard and is particularly 
challenging this is of course of benefit to 
us – new technology demands new handsets 
which need to be tested – but the evolution 
of the smartphone and other mobile devices 
is exerting severe pressure on the capacity  
of the world’s major mobile phone 
networks there is therefore a compelling 
need for this technology this is in direct 
contrast to 3g technology where no such 
powerful catalyst existed
the lead of the us and china in lte 
technology will also be of benefit to us 
since some of our biggest customers are in 
dongles netbook and tablet computers – 
such as apple’s ipad – has accelerated  
the applications on these devices are data
intensive but the licensed spectra network 
capacity are fixed these factors combined 
with network operators’ desire to reduce 
costs – because traffic is increasing faster 
than revenue – has driven the need for a 
new more efficient technology 
lte – which we have supported since its 
inception – is now accepted as being the 
most effective 4g technology to deliver 
the data capacity that is needed it uses 
the spectrum extremely efficiently more 
network users can be accommodated 
on the same cell space and it “pushes” 
data through the spectrum more quickly 
in efficient packets where 3g made it 
technically possible to access data 4g  
will make it practically possible
i wrote about the advent of 4g essentially 
mobile broadband in last year’s report this 
has taken time to develop and in today’s 
global market the us and china have been 
particularly ambitious in its adoption 
within 4g there are two competing 
technologies wimax and lte in 2007 we 
instigated our internal development process 
for lte but at the same time recognised the 
need for us to be able to offer solutions for 
both technologies with our own resources 
focused fully on lte we believed it was 
more appropriate to acquire a wimax 
capability which we did in january 2007 to 
improve our offer in that area as it became 
clearer however that lte would be the 
winning standard in april 2010 we decided 
to stop offering wimax and to close that 
part of our business
to adopt 4g which most of the world’s 
largest operators have pledged to do 
over the next three years network 
operators have to invest in upgrading their 
infrastructures and that particularly in 
 chief executive’s review  continued 
q

a
netw ork testing
what does anite network 
testing do
anite helps network 
operators and base
station manufacturers 
manage their businesses 
efficiently  we supply a 
range of tools to enable 
them to collect and 
analyse data on coverage 
and performance and 
to check that networks 
are strong enough to 
minimise “dropped” 
calls and that phones 
will work on different 
operators’ networks
what products do you offer
nemo outdoor the 
pioneer in drive
test measurement 
solutions offers a 
broad range of testing 
options and support 
for all technologies
nemo handy is a 
handsetbased 
portable measurement 
tool that is ideal for 
indoor surveying and 
quick troubleshooting
nemo compacti provides 
a compact and easy
touse windowsbased 
solution for network 
measurement aniteannual report and accounts 2010     9
nemo autonomous is a 
fullyautomated flexible 
measurement solution 
for remotecontrolled 
data collection
nemo analyze offers a 
comprehensive set of 
technologyspecific 
kpis for all wireless 
technologies it enables 
organisations to 
manage and analyse 
measurement data 
quickly and efficiently
what differentiates you 
from your competitors
we focus on being 
firsttomarket with 
testing solutions for 
new technologies on 
meeting customers’ 
particular needs and 
on customer care we 
also have an extensive 
network of partners 
distributors and 
representatives  
in more than 
90 countries
where are your 
headquarters
in oulu finland
what is your strategy
to maintain 
our position at 
the forefront of 
technology to expand 
the products we 
offer and to continue 
to develop our 
distribution network
wide range of information from call quality 
data download and upload speeds to signal 
reliability they also provide data on the 
interaction of neighbouring cells and the 
efficiency with which devices “handoff” from 
one cell to another as the device moves in a 
car along a road on foot or in a building 
the products range from an easytouse 
handheld device nemo handy which can 
be used for indoor and outdoor testing to  
a powerful laptopbased solution nemo 
outdoor which is used for “drivetesting” 
where the engineer drives around an area  
to compare coverage and quality at all times 
of the day and night and in all weather 
conditions nemo autonomous can be installed 
in taxis or buses to provide a costeffective 
unmanned continuous stream of information 
we carry out quarterly product upgrades and 
introduce new products when we see a need 
during the year we launched the nemo multi 
handy and also the nemo handyw device 
which uses the windows mobile operating 
system whereas previous devices had been 
based around nokia’s proprietary operating 
systems these new devices add to network 
testing’s range and testing capabilities
the software embedded in our products 
enables organisations to manage and 
analyse vast amounts of data quickly and 
efficiently either on our nemo analyze 
postprocessing analyser or on thirdparty 
postprocessing analysis tools
as the world’s mobile network coverage 
increases with rollout occurring in most 
developed and developing countries we 
will continue to expand geographical sales 
coverage and to help mnos establish and 
then upgrade their networks
network testing strategy
our objective is to continue to be the first 
to offer new technology to provide excellent 
aftersales service and technical support and to 
maintain strong relationships with customers 
either direct or through local partners
there is potential for considerable growth  
in many of the countries in which we 
operate for example india – which has a 
population of nearly 12 billion – has recently 
concluded the auction of its 3g licences  
and is an increasingly important market
we are developing our lte product but 
since testing can begin only when the 
networks are in place we do not expect any 
significant benefit to accrue from that until 
20122013 our strategy is to continue to 
benefit from the rollout of new networks 
by the mnos and to leverage the lte 
technology rollout as it occurs
 
huawei chose to work in partnership with 
anite because the anite lte test solutions 
are the most advanced available they 
provide development tools to enable mobile 
handset and data card designers to develop 
and test their devices in readiness for 
lte networks becoming available anite’s 
technology is not only helping huawei to 
ensure that its devices meet the industry’s 
rigorous certification requirements provide 
the applications and services that consumers 
expect and work seamlessly with other 
devices across all networks but also to 
achieve a good return on its investment
“our ongoing collaboration with anite and 
their expertise in providing the leading lte 
test solution brings us a step closer to realising 
our goal of bringing lte devices to market 
successfully”
hetingbo huawei
anite in china
anite has been supporting mobile phone 
operators and vendors in china over the past 
decade most recently we have been working 
in partnership with huawei china’s largest 
network and telecommunications equipment 
supplier huawei was chosen by china 
mobile to showcase the first e2e tdlte 
demonstration network at the 2010 shanghai 
world expo which opened on 1 may  
tdlte is one of the two principal versions 
of lte – which is now widely accepted as  
the most effective technology for delivering 
the capacity that mobile devices demand it has 
been chosen by china mobile which – with 
more than 500 million subscribers – is the 
world’s biggest mobile network and is able 
to coexist with china’s existing tdscdma 
network an international standard it caters 
to markets including many developing 
countries in which its usually cheaper 
spectrum is a particular advantage 10     aniteannual report and accounts 2010
review
 chief executive’s review  continued 
travel
the travel business is the uk’s market
leading supplier of software to help leisure 
travel companies run their businesses 
efficiently the technology offers customers 
the ability to sell an increasingly diverse 
set of holiday products through a range 
of sales channels including call centres 
travel agents and the web to price by 
currency and market to manage their 
inventory dynamically to connect with 
other industry providers effectively and to 
improve productivity and customer service 
in addition we offer managed services  
on a hosted or remotelymanaged basis 
these products have a long lifecycle  
many existing users of our legacy atop 
product have been with us for more than  
15 years
in recent years major leisure travel 
companies have become even larger as 
they have acquired smaller operators 
paradoxically their it systems – which have 
the potential to transform profitability by 
offering economies in buying and selling 
and by centralising backoffice as well as 
some sales functions – have tended to lag 
behind in addition there has been added 
competition to traditional tour operators 
from internet travel companies such as 
expedia and lastminutecom
our comres solution – which is being 
implemented by europe’s largest leisure 
travel group tui – is currently the only 
proven large scale reservations system 
on the market it enables customers to 
reduce operating costs significantly by 
standardising key processes across all 
q

a
tra vel
what does anite travel do
anite supplies systems 
to help leisure 
travel companies 
run their businesses 
more profitably 
our technology 
enables them to 
sell an increasingly 
diverse set of holiday 
products through a 
range of channels – 
including call centres 
travel agents and 
the web – to price by 
currency and market 
to manage their 
inventory dynamically 
to connect with other 
industry providers 
effectively and to 
improve productivity 
and customer service
what products and 
services do you offer
comres provides 
multichannel 
distribution for leisure 
travel companies it 
offers the key functions 
of reservations 
content and customer 
relationship 
management and 
operational finance
com ebusiness suite  
is an integrated set of 
business applications 
built around the core 
functions of comres 
think of it as a travel
erp solution which 
includes supplier 
contracting dynamic 
supplier connectivity 
sales inventory 
management 
customer 
markets and holiday types and to be 
confident that the system will scale up in  
such a way as to cope with an increasing 
work load as the business continues  
to grow
as a standalone system comres offers 
the four key functions of reservations 
content and customer relationship 
management and operational finance  
it is also the core around which our com 
ebusiness suite is built this is a single 
integrated solution which customers  
can buy and implement in modules
in an economic environment where price 
and capacity are key to success our flexible 
software enables leisure travel companies 
to reduce costs while at the same time 
managing a wider range of products 
although demand for the traditional 
package holiday remains strong the ability 
to manage flexible and dynamic packages 
from the same it platform is a major 
competitive advantage
travel strategy
in the drive to become the dominant 
software supplier to the european 
leisure travel market we will continue to 
capitalise on our existing strong customer 
relationships – in the past year we have 
begun to work with tui uk – and to invest 
in comres’s ability to handle fixed and 
flexible packaging and specialist operations 
from a single system
we will also continue with the process of 
creating uk and central european versions 
of com to make it more accessible to 
mainstream travel companies we will create 
longterm plans for customers currently 
using our legacy systems to migrate to  
comres in addition we will seek new mid
sized customers and partners throughout 
europe and north america and investigate 
opportunities in emerging economies
we are in the process of changing our 
revenue model to one in which we license 
our system to customers on an annual basis 
while this is likely to be a longterm project 
it will have benefits on both sides it will 
reduce the initial capital cost for customers 
and will augment our recurring revenue
while the recession is likely to accelerate 
consolidation by increasing pressure on 
smaller travel operators we are confident 
that the scalability inherent in our  
comres software and com ebusiness 
suite combined with our reputation for 
implementing software that works places 
us in an ideal position to grow steadily in 
the uk and overseas
the current year will continue to be 
challenging for the travel business 
particularly in the first half the progress  
our com product is making with 
established and new customers is however 
an indication of our present unique  
market position implementation for larger 
customers can take several years but  
once completed will benefit them for many 
years to come we intend to show that we 
have reestablished the trading position  
of this business and that it is set for  
further growth aniteannual report and accounts 2010     11
feedback
going on holiday
2010
coming home
resort 
management
issues
2012 
home
£
procurement
q
a
2011 
sun
travel
2011
sun
travel
2011
distribution
ticket
credit
card
ticketing
sun
travel
2010
distribution
sun
travel
2010
call centre
search   price   book 
£
t ravel agent
shop
online
❄
booking
documentation 
supplier notification 
and accounts receivable 
and payable
 
ferryres is a  
modular and highly
configurable solution 
for ferry operators
cruiseres is a 
comprehensive 
solution designed for 
deep sea and river 
cruise operators
railres meets the 
needs of the scenic 
rail industry in the us 
australia and europe
saas  hosting  
our solutions are all 
available on a service 
basis from within our 
private application 
cloud or as on a fully 
or partiallymanaged 
services basis which 
is either hosted or 
managed remotely
what differentiates you 
from your competitors
our comres product 
is currently the only 
proven large scale 
reservations system  
on the market  
this proven scalability 
taken in the context 
of a market which 
continues to 
consolidate into ever 
larger players and the 
rich capabilities of our 
travelerp solution 
places anite in a 
unique position within 
the travel sector
where are your 
headquarters
in slough berkshire uk
what is your strategy
to become the 
dominant software 
supplier to the 
european tour 
operator market
 anite in leisure travel systems  12     aniteannual report and accounts 2010
review
 chief executive’s review  continued 
outlook
the past financial year was a challenging 
one for the group but we saw an 
improvement in the second half with both 
the wireless and travel businesses making 
good progress our new lte product has 
been well received by customers
predictions as to the growth of the lte 
market are difficult to make at this early 
stage but the signs are positive and we are 
better positioned to take advantage of lte 
than we were with 3g
com ebusiness suite
oy aurinkomatkatsuntours ltd is  
finland’s largest tour operator part of 
finnair one of the world’s oldest operating 
airlines each year aurinkomatkat flies 
around 40 350000 of finnish holiday 
travellers to 900 hotels at 150 destinations 
in 40 countries
before choosing anite and com 
aurinkomatkat had searched for five 
years to find a suitable replacement for 
its 25yearold tour operating system it 
quickly saw the value of going beyond the 
core com reservation system and has 
now integrated our entire com ebusiness 
suite this enables it to manage its principal 
business functions – reservations content 
management customer relationship 
management and operational finance –  
on a single system and to achieve 
 
 profitability – through a significantly 
lowercost it platform which incorporates  
a complete set of integrated applications
 flexibility – the com ebusiness suite 
enables aurinkomatkat to combine the 
attributes of traditional flexible and dynamic 
business processes
 security – a robust technology platform that 
takes it performance off management’ s agenda
 scalability – proven highvolume linear 
scalability while retaining consistent 
response times
“the com ebusiness suite goes a long way 
beyond the boundaries of the traditional 
‘reservation system’ to help aurinkomatkat 
remain at the forefront of finland’s holiday 
industry”
risto mäntynen director of information 
management aurinkomatkat
we expect the continuing investments in 
our products to start to pay back during 
this year the effect of this and normal 
seasonality factors mean we expect trading 
to be biased to the second half although 
not as markedly as in 200910 anite began 
the year in good shape we are trading well 
and in line with our expectations
christopher humphrey
chief executive
5 july 2010 aniteannual report and accounts 2010     13
at this early stage in the lte market it is 
important for us to be able to bring our 
software swiftly to market to help our 
customers with the technically complex task 
of turning the new technology into viable 
products rd investment which increased 
to £111m up 28 on the previous year 
2009 £87m was a further significant 
factor in reducing profit it included 
investment in tdlte the variant that will 
be adopted in the market in china
following the increasing market acceptance 
of lte as the industry standard for 4g the 
board reviewed the potential of wimax 
technology as the alternative competing 
standard and concluded that it will be 
a minor part of the market it decided 
therefore to close anite’s business in this 
area and as a result a £71m exceptional 
cost – comprising £67m noncash 
impairment and a £04m exceptional 
closure cost provision – has been made in 
the accounts for the year ended 30 april 
2010 the wimax business made a loss of 
£01m on revenue of £11m during the year
network testing 
for the full year adjusted results for the 
network testing business show that orders 
were steady at £211m 2009 £212m while 
revenue declined by 6 to £200m 2009 
£213m net revenue revenue less cost  
of thirdparty hardwaresoftware fell 2 
to 71 2009 73 reflecting the tougher 
market conditions and adjusted operating 
profit fell by 35 to £45m 2009 £69m 
the network testing market suffered in 
the early part of the year as a result of the 
market downturn this caused customers 
to reduce their budgets and resulted in 
revenue and profit in the first half of the 
year falling below those of the previous year 
there were signs of improvement in the 
second half of the year as customers began to 
release budgets and the number and size of 
sales opportunities improved significant sales 
were made to a number of tier 1 customers 
by the year end we had sold initial lte 
systems to a number of leading tier 1 
customers worldwide as a result trading  
in the second half of the year improved  
with orders and revenue ahead of the  
same period in the previous year lte 
accounted for around 12 of handset 
testing’s revenue for the year as a whole 
and 21 of its q4 revenue
the impact of weaker sterling compared 
with the previous year and its effect on 
translating overseas subsidiaries’ revenue 
on a constantcurrency basis resulted 
in a revenue benefit of £05m with an 
immaterial impact on profit the effect 
however of transactional currency 
movements – transacting for sales in 
currencies different from our base currency 
– and yearend currency balances resulted 
in an overall exchange loss of £05m 2009 
£16m gain – a £21m negative impact on 
profits yearonyear 
while revenue in europe increased by 21 
to £111m revenue elsewhere declined in 
the americas by 6 to £161m and in asia 
by 25 to £86m again as a reflection of 
challenging market conditions net revenue 
margin revenue less thirdparty hardware 
cost held up well and improved to 82  
of revenue 2009 80 this is because  
the phase of the 2g3g cycle that we are  
in has a greater proportion of software  
we expect this trend to reverse in the 
current year as lte sales increase as is 
typical in the development testing market 
they will include a greater proportion  
of hardware 
at the end of the year as a result of the 
actions we had taken to reduce costs to 
align with the lower level of business 
headcount had reduced to 173 2009 189 
during the year however we strengthened 
the management team when we appointed 
a new global sales director and a customer 
services and fulfilment director to manage 
the production of the anite 9000
the overall results for the group are a 
reflection of a number of factors the 
challenging market conditions we faced 
during the year continuing investment 
particularly in our 4g lte product range 
and the reduction in the underlying base  
of our travel division in the final quarter  
of the year there were encouraging signs  
of an improvement in orders and profits  
and the closing order book showed a  
yearonyear increase
anite’s operations comprise two divisions 
wireless and travel the wireless division 
is made up of two separatelymanaged 
businesses handset testing and network 
testing 
wireless performance
handset testing
the adjusted results for the handset testing 
business for the year show that orders were 
maintained at £322m 2009 £325m 
revenue decreased by 5 to £358m 2009 
£377m and adjusted operating profit fell 
by 51 to £35m 2009 £71m 
in the first half of the year economic 
conditions caused a decline in demand for 
older technology this combined with the 
planned increase in development spending 
on 4g resulted in a fall in revenue and 
profit compared with the first half of the 
previous year
at the half year we announced the 
termination of our contract with agilent 
for the supply of an lte hardware platform 
and following this change in strategy 
commercialised our own hardware platform 
– the anite 9000 mobile test accelerator 
even at this early stage in the market this 
has been well received by our customers 
   throughout this review reference to adjusted results 
means the results for the continuing operations before 
where applicable sharebased payments impairment 
of goodwill impairment and amortisation of acquired 
intangible assets restructuring costs other gains and 
losses and recycled hedge losses
 review of operations 
review
orders by business 2010 orders by business 2009
£322m
£211m
£290m
£325m
£212m
£239m
n handset testing
n network testing
n  travel 14     aniteannual report and accounts 2010
review
including nokia siemens networks 
vodafone orange and alcatellucent the 
market continues however to be extremely 
competitive and order book visibility is 
generally very short
the effect of currency movements in 
translating the overseas subsidiaries’ results 
back to sterling was a translation benefit 
of £10m on revenue and £02m on profits 
the impact of transactional currency 
movements from the dollareuro as a result 
of the division’s trade in america and the 
far east resulted in a £0 1m exchange loss 
2009 £05m gain giving an adverse £06m 
transactional impact on profits yearonyear 
while network testing’s revenue in emea 
increased by 15 to £92m and in the 
americas by 8 to £28m in asia it 
declined by 25 to £80m
investment in rd was maintained at £2 1m 
2009 £21m as we continued to improve 
our products in the period we launched 
significant upgrades to our existing nemo 
outdoor and analyze platforms developed 
two new products – multihandy and the 
handyw a windows mobilebased product 
– and new versions for lte measurement 
strict cost control was maintained during 
the year although a £07m provision against 
outstanding receivables contracted on 
extended credit terms had an impact on 
the business as a result of the business 
strengthening its sales and marketing 
department headcount increased to 83 
2009 80 by the end of the year 
travel
fullyear adjusted results for the division 
show that orders increased by 21 to 
£290m 2009 £239m but revenue fell by 
26 to £230m 2009 £311m adjusted 
operating profit was 41 lower at £56m 
2009 £95m
travel’s order intake tends to be focused 
on a few significant longterm orders and 
in the year £108m 47 of revenue came 
from the comres product compared with 
£81m 26 in the previous year and 98 
2009 98 of total revenue from europe 
passenger bookings on comres systems 
are now running at more than four million  
a year demonstrating the scalability of 
the product licence revenue for the year 
was £27m 2009 £15m the increase  
is a reflection of the increased value of  
the comres product as it develops and 
matures £20m of the licence revenue was 
generated in the second half of the year
the fall in the division’s revenue 
necessitated significant cost reductions 
to ensure that the cost base matched the 
revenue potential headcount at the end 
of the year had been reduced to 176 2009 
194 principally as a result of the decline in 
the managed services business in addition 
globespan going into administration at the 
beginning of december 2009 had a negative 
impact on the division of £04m 
these actions meant that operating margins 
fell from 31 in 2009 to 24 in 2010 if 
however the impact of the exceptional 
mytravel settlement were excluded from 
last year’s results 2009’s operating margins 
would be a more meaningful 25 the 
underlying fall was therefore much smaller
other group costs
the divisional performances above are 
stated before unallocated corporate 
costs which include an element of head 
office staff costs directors’ remuneration 
professional fees and office costs and other 
nonoperational costs during the period 
unallocated group costs reduced to £17m 
2009 £35m corporate costs were cut 
following the sale of the public sector 
business and the consequential reduction 
in the size and complexity of the group 
savings included reduced central headcount 
lower net operational property costs £01m 
2009 £08m reduced professional fees 
and lower annual bonuses
is characterised by a lengthy sales cycle 
the improved order intake in the year is a 
reflection of the increase in business coming 
from the comres product good progress 
was made with key uk and international 
customers including with europe’s largest 
tour operator tui group by using  
comres tui is able to sell traditional 
package holidays more efficiently and cost 
effectively on a single system through its 
multiple operations in germany austria 
poland and switzerland and to eliminate 
unnecessary administrative costs in the 
second half of the year we took an initial 
order from tui uk for comres evidence 
of the strengthening of our relationship with 
the tui group
during the year aurinkomatkatsuntours  
a subsidiary of the airline finnair completed 
the implementation of anite’s com 
ebusiness suite a contract for comres 
was signed with rewe germany’s second
largest tour operator a number of legacy 
atop software customers were migrated 
to comres and progress was made with 
turning comres into a standard product  
a process which is expected to be completed 
during the current year
as expected the oneoff customer events 
reported in last year’s annual report had 
an effect on this year’s results these were 
the loss of the norwich union contract a 
nontravel managed service customer the 
oneoff settlement of £23m received after 
mytravel’s acquisition by thomas cook and 
other customer consolidation including 
the administration of the xl group that 
occurred in the previous financial year the 
lost revenue and effect on profit from these was 
approximately £100m and £52m respectively 
translational currency effects in travel  
are negligible as results from overseas 
subsidiaries are immaterial the 
transactional effect of eurodenominated 
business and assets improved profits by 
£01m 2009 £02m a net adverse effect  
of £01m yearonyear
 review of operations  continued  aniteannual report and accounts 2010     15
profit and headcount in addition to these 
group kpis other measures indicating 
specific divisional measures such as 
cash generation working capital capital 
expenditure product development and 
major project performances are used
the group changes and refines the kpis 
regularly depending on the major issues 
that are identified in the businesses
adjusted operating profit
40
adjusted operating profit measures the 
operating performance of the business 
before taking into account sharebased 
payments impairment and amortisation 
of acquired intangible assets impairment 
of goodwill restructuring costs other 
gains and losses and recycled hedge losses 
management believes this gives a better 
comparable measure of the true operating 
performance of continuing operations
the reduction in adjusted operating profit 
primarily arises from the lower revenue 
in demanding trading conditions and the 
rebasing of our travel business together 
with the increased rd investment made  
in new wireless products
revenue
13
revenue represents the amounts derived 
from the provision of goods and services  
in the year
the decline in revenue reflects the 
challenging economic conditions in the 
year and the rebasing of our travel business 
following the loss of a large nontravel 
managed service customer in the previous 
year and general consolidation in that 
market further details are given in the 
review of operations
headcount
8
headcount measures the number of staff 
employed directly by the group at the end of 
each year and is an important measure to ensure 
the business is not overstaffed in relation to 
its revenue the group maintains a regular 
review of headcount in each business in order 
to keep costs under control
headcount was reduced across the group 
to contain costs in a challenging economic 
environment – there were reductions of  
13 in the wireless division 18 in travel and  
9 in the centre
order intake
6
order intake represents the value of orders 
received from customers in the year it 
is a measure of inyear performance and 
supports future years’ revenue performance
the order intake in the year increased 
mainly as a result of a 21 increase in our 
travel business order intake for multiyear 
orders from tui and center parcs
research and development total spend
29
research and development rd spend 
represents the total cash invested in rd in 
the year before the effect of capitalisation 
and amortisation under ias 38 and shows 
the total amounts the group invests each 
year on new and on enhancing its existing 
software products
the increase in rd occurred in our handset 
testing business where as anticipated we 
increased our investment in the development 
of new leadingedge technology to meet our 
customers’ requirements for new 4g l te systems
order intake £m
08
09
10
776
823
1018
research and development total spend £m
08
09
10
98
126
127
headcount number
08
09
10
492
452
520
 group key performance indicators kpis 
review
the group uses a range of performance 
measures to manage the businesses 
within the group in addition the 
divisions have established their own 
performance indicators that are specific 
to their individual businesses
the group kpis monitor order intake 
revenue margins research and 
development spend adjusted operating 
revenue £m
08
09
10
901
788
916
adjusted operating proﬁt £m
08
09
10
200
119
187 16     aniteannual report and accounts 2010
review
 financial review 
in good financial shape 
to benefit from our investments
richard amos
group finance 
director 
£64m are set out in the tables below 
the reconciling items are those that in the 
opinion of the board are either oneoff 
in nature or are noncash related and are 
not therefore indicative of the group’s 
underlying trading
currency effects
movement in exchange rates in the year 
had an overall adverse effect on the results 
compared with the significant positive 
effect in the previous year yearonyear 
the average exchange rate for the us dollar 
strengthened 5 against sterling from  
£1  us168 to £1  us160 and the 
average rate of the euro strengthened 
by 5 from £1  €119 to £1  €113 the 
effect of these changes on the translation 
of results from overseas subsidiaries was 
to improve revenue by £15m and adjusted 
operating profit by £02m 
the closing exchange rates at the year end 
which affect the conversion of foreign
exchange denominated balance sheet items 
– such as cash and trade debtors and creditors 
these include fuller disclosure of operating 
segments on adoption of ifrs 8 based on 
the way management operates the business 
this has resulted in the separate disclosure 
of the handset testing and network testing 
businesses’ results in note 22 we have also 
adopted the amendment to ias 1 which 
requires a statement of comprehensive 
income to be reported separately from  
the income statement and statement  
of changes in equity we have assessed 
other amendments to standards as being 
not applicable
financial results
revenue from continuing operations was 
down 13 at £788m 2009 £901m and 
adjusted profit before tax fell 45 to £99m 
2009 £181m
reconciliations of adjusted ebitda of 
£177m 2009 £258m to the operating 
loss of £18m 2009 profit £94m and 
adjusted operating profit of £119m 2009 
£200m to the reported loss before tax  
for the year of £40m 2009 profit 
the group’s results for the year ended  
30 april 2010 were characterised by solid 
performances from our two divisions in a 
year of investment in which the economic 
environment was generally unhelpful
the following analysis is for our continuing 
operations which comprise the handset 
testing and network testing businesses in 
our wireless division and the travel division 
there were no acquisitions or disposals 
during the year although in the previous 
year we disposed of the public sector 
business the results for public sector for the 
prior year are included in the comparative 
numbers as discontinued operations in the 
income statement for that year further 
details are in note 5 to the accounts
principal accounting policies 
assumptions and key judgements
the principal accounting policies are 
unchanged while there was no impact 
of changes in accounting standards on 
the results themselves new requirements 
have had an impact on certain disclosures  aniteannual report and accounts 2010     17
reconciliation of adjusted ebitda to reported operating lossprofit
 2010 2009
 £m £m
adjusted ebitda 177 258
depreciation 32 32
amortisation of intangible assets 26 26
adjusted operating profit 119 200
sharebased payments 24 18
amortisation of acquired intangible assets 42 40
impairment of goodwill and acquired intangible assets 62 –
restructuring costs 09 48
operating lossprofit 18 94
reconciliation of adjusted operating profit to lossprofit from 
continuing operations before tax
 2010 2009
 £m £m
adjusted operating profit 119 200
net finance charges excluding recycled hedge losses 20 19
adjusted profit before tax  99 181
sharebased payments 24 18
amortisation of acquired intangible assets 42 40
impairment of goodwill and acquired intangible assets 62 –
restructuring costs 09 48
other gains and losses 04 11
net finance charges recycled hedge losses 06 –
lossprofit from continuing operations before tax 40 64
– saw some depreciation of the foreign 
currencies against sterling the closing rate for 
the euro was £1  €1 153 2009 £1  €1 114  
a depreciation of 3 on the previous year  
the closing exchange rate for the us dollar  
was £1  us1526 2009 £1  us1472  
a depreciation of 4 on the previous year
the transactional effect of business units 
trading in currencies other than their local 
currency and the revaluation of foreign 
currency balance sheet accounts into local 
currency also has an effect on the group 
where possible these exposures are hedged 
or minimised by converting foreign currency 
balances back into local functional currencies 
in the year these transactions had an 
approximate net £05m adverse effect 
compared with a net £21m positive effect  
in the previous year resulting in £26m 
overall adverse impact on operating  
profit the relative currency impact on 
divisional results is discussed in the review 
of operations
revenue
revenue from continuing operations 
decreased in the year by 13 to £788m 
2009 £901m details of which are set out 
in the review of operations geographically 
revenues by destination were uk 19 
2009 28 europe 35 2009 25 
north america 24 2009 22 and 
asia 22 2009 25 the shift from uk 
to europe is mainly due to the increased 
proportion of business conducted by the 
travel business in germany in the year
in revenue by type the principal changes  
in the year are a result of the reduction of 
£48m in managed services in the travel 
division the £23m settlement in 2009 of 
the mytravel contract also in the travel 
division and a reduction of £28m in 
thirdparty hardware and software costs 
which occurred both in travel £12m 
where there was a reduction in the sale of 
thirdparty hardware aligned with the lower 
managed services business and in handset 
testing £16m resulting from the 
reduction in sales of hardware as a result  
of the specific heavily softwaredependent 
phase of the technology cycle that the 
business is currently addressing
within the reduction in overall revenue 
revenue from software and related services 
at £600m 2009 £614m was only 
marginally down on the previous year 
recurring revenues software maintenance 
and managed services were 34 of the 
total revenue compared with 35 in 2009
gross profit
gross profit in the year fell to £491m 
2009 £553m slightly less than the 
corresponding reduction in revenue with 
gross margin improving marginally to 62 
2009 61 this is partly a reflection of the 
change in product mix referred to above 
with a lower proportion of lowmargin 
revenue associated with the sale of third
party products such as hardware 18     aniteannual report and accounts 2010
review
 financial review  continued  
oneoff and nontrading expenses excluded 
from adjusted profit calculations totalled 
£137m 2009 £106m these included 
charges for sharebased payments of 
£24m 2009 £18m amortisation of 
acquired intangible assets of £42m 2009 
£40m and costs of £71m associated with 
the closure of handset testing’s wimax 
operation in april 2010 these costs included 
£51m impairment of goodwill £11m 
impairment of acquired intangible assets 
and a £09m exceptional restructuring 
cost only £04m of this last element had 
a cash impact further details on this and 
the £48m of restructuring costs in the 
comparative period are included in note 3  
to the accounts
after these nonoperational costs the 
group reported an overall operating loss of 
£18m 2009 operating profit of £94m
other gains and losses
a gain of £04m made in the year 2009 
loss £11m represents the net gain arising 
from revaluing to market prices those 
elements of the interest rate and cross
currency swaps that are deemed to be 
ineffective as hedges to market prices 
together with the change in the fair value  
of derivative assets and liabilities outstanding 
at the year end further details are given in 
notes 4 and 23 other gains and losses are 
excluded from the calculation of adjusted 
profit before tax
group finance costs
the group had an excess of £298m of  
cash over borrowings at 30 april 2010  
30 april 2009 £273m but incurred 
a net finance charge of £26m 2009 
£19m this was principally because the 
borrowings within the capital structure 
operating expenses
operating expenses in the period increased 
to £509m 2009 £459m a detailed 
breakdown is given in note 25 
of total expenses underlying operating 
expenses were £372m 2009 £353m 
with oneoff and noncash items totalling 
£137m 2009 £106m
the principal driver for the increase in 
underlying operating expenses was costs 
incurred in research and development 
rd which amounted to £132m 
compared with £108m in the previous year 
this expenditure was all incurred in the two 
wireless businesses in handset testing 
investment in rd went up from £87m  
in 2009 to £111m in 2010 largely as  
a result of developing our suite of lte 
products including specific expenditure  
on tdlte the chinese variant of lte  
new interoperability testing products for 
network operators and evolution of the 
anite 9000 platform during the year we 
expensed £26m of the £4m of incremental 
lte rd investment that we had identified 
in the previous year of the balance we 
expect to incur £08m in the current 
financial year rd costs in the year under 
review included amortisation of previously 
capitalised costs of £19m 2009 £19m  
a further £13m of rd expenditure 2009 
£11m was capitalised during the year and 
appears in the balance sheet under other 
intangible assets
after the underlying operating expenses 
adjusted operating profit was £119m  
2009 £200m a reduction of 40 
adjusted ebitda was down 31 at £177m 
2009 £258m
were fixed at the relatively high longterm 
rates available when the facilities were put 
in place in 2006 but surplus cash earns 
interest only at current low rates this 
position will normalise in november 2011 
when the current facilities and interest 
arrangements expire the net finance charge 
includes £06m 2009 £nil in respect of 
the recycling of a fairvalue loss on a cash 
flow hedge previously included directly 
in equity and now reclassified through the 
profit and loss back into equity see note 6 
this charge is excluded from adjusted profit 
before tax calculations
taxation
the tax charge for the year on continuing 
operations was £04m 2009 £14m  
the tax rate on the statutory operating 
loss was a negative 109 2009 227 
primarily as a result of adjustments to the 
provisions made for deferred tax in previous 
years the underlying adjusted tax rate on 
adjusted profit before tax is 27 2009 
27 tax paid in the year was £17m  
2009 £34m 
shareholder returns
after taking account of the factors described 
above adjusted basic earnings per share 
were 24p 2009 44p a reduction of 45 
adjusted diluted earnings per share were 
similarly down 45 to 23p 2009 42p 
the overall loss per share was 15p 2009 
earnings per share for continuing operations 
of 15p
the board has proposed a final dividend 
of 065p per share 2009 065p making 
a total for the year of 095p 2009 095p 
which is covered 25 times by adjusted  
basic earnings
group revenue by type 2010 group revenue by type 2009
76
17
7
68
18
11
3
n software
n managed services
n third party
n  other – contract settlement aniteannual report and accounts 2010     19
balance sheet goodwill and other 
intangible assets
at 30 april 2010 goodwill was £573m 
2009 £644m in addition to a £20m 
reduction as a result of movements in 
foreign exchange rates the carrying 
value of goodwill underwent an annual 
impairment testing using the assumptions 
described in note 12 during the year the 
wimax business was closed and as a 
result the board fully impaired the £51m 
of previouslyvalued goodwill related 
to wimax in addition an amount of 
£11m held for wimaxrelated acquired 
intangible assets note 10 was also fully 
impaired which together with the normal 
amortisation of acquired intangible assets 
of £42m 2009 £40m were the major 
factors in the decline in the value of other 
intangible assets from £266m to £192m
cash flow
net cash flow generated from operating 
activities was £110m 2009 £239m 
this represented a conversion of 111 of 
adjusted profit before tax 2009 132 
within this working capital was adversely 
affected by a £22m increase in inventories 
mainly as a result of the initial provisioning 
of stocks and components for the new 
anite 9000 lte system for handset testing 
first production batches of which were 
manufactured and sold in the final quarter 
of the year the increase in inventories was 
partially offset by a net £06m release of 
other working capital in the period
capital expenditure in the period was 
£25m 2009 £37m significant purchases 
included £11m on our testbedanite 
9000 development equipment £13m 
was incurred on capitalised development 
expenditure 2009 £11m which 
represented the cost of writing conformance 
test cases for handset testing’s lte product
as explained in the commentary below 
on derivative financial liabilities the group 
incurred a £10m cash outflow in the year  
as part of the capping of its swap position
after these movements and cash paid 
out to shareholders through dividends of 
£28m 2009 £129m including £99m 
special dividend net cash increased by 
£25m 2009 net cash increase of £427m 
including net proceeds from the disposal 
of the public sector business the net cash 
balance at 30 april 2010 was as a result 
£298m 30 april 2009 £273m
derivative financial liabilities
when anite purchased nemo network 
testing in november 2006 it entered into 
crosscurrency swaps designed to hedge 
against movements in foreign exchange 
rates and to protect the value of both the 
investment and the reserves of the group 
as a result of significant movements in 
interest rates and £€ exchange rates 
since that date the sterling value of the 
underlying eurodenominated assets had 
increased but had been matched by a 
rise in the value of the derivative financial 
liabilities the hedges are due to expire on  
31 october 2011
during the second half of the year the  
board decided to close out the position  
on the swap in order to provide certainty 
of the size of the liability when the swap 
expires during the year the group entered 
into a series of forward contracts to fix the 
amount payable on 31 october 2011 at a 
maximum cash cost of £216m note 23  
at the same time the group purchased a 
series of options at a total cost of £10m 
paid during the year to provide some 
potential reduction in the maximum 
amount payable should the euro decline 
significantly against sterling over the same 
period the maximum liability of £216m 
compares with the net cash balance at 
30 april 2010 of £298m
the total liability on all derivative financial 
instruments at 30 april 2010 including the 
crosscurrency swap was £236m 2009 
£245m all derivative financial instruments 
will mature by 31 october 2011
borrowings and facilities
the outstanding balance on the group’s 
term loan facility at 30 april 2010 was 
£150m 2009 £200m this is covered by 
£448m of cash at 30 april 2010 30 april 
2009 £473m the facility expires on  
30 november 2011
the group also has further borrowing 
facilities available including a syndicated 
revolving facility of £200m 2009 £200m 
and a net overdraft facility of £50m  
2009 £50m both were undrawn at  
30 april 2010
in view of the current strong cash position 
the availability of banking facilities the 
maturity profile of debt obligations and 
forecast cash position over the next 18 
months the directors have a reasonable 
expectation that the group has adequate 
resources to continue in operational 
existence for the foreseeable future 
accordingly anite continues to adopt 
the going concern basis in preparing the 
consolidated financial statements
richard amos
group finance director
5 july 2010
group revenue by destination 2010 group revenue by destination 2009
19
35 24
22
28
25
22
25
n uk
n europe
n north america
n  rest of world 20     aniteannual report and accounts 2010
 directors  
management and governance
paul taylor†
nonexecutive director
chairman of the audit committee
paul 46 was appointed as a nonexecutive 
director on 5 october 2009 and became 
chairman of the audit committee in 
december 2009
from march 2001 to date paul has held 
the position of group finance director 
with aveva group plc the world’s leading 
engineering it software provider to the 
plant power and marine industries where 
he has gained considerable experience of 
the demands of a growing global software 
business paul is a fellow of the chartered 
association of certified accountants
nigel clifford
nonexecutive director
nigel 51 joined the board on 1 april 2009 
he has wide experience across a number 
of sectors including the wireless telecoms 
and oss software sectors on 1 may 2010 
he became chief executive of micro focus 
international plc prior to that he was chief 
executive from june 2005 at symbian limited 
which became wholly owned by nokia in 2008
before joining symbian nigel was chief 
executive of tertio telecoms limited a 
software product and services company 
and formerly held the position of senior 
vice president service delivery with 
international telecommunications company 
cable  wireless
david hurstbrown†
senior independent  
nonexecutive director
chairman of the remuneration  
and nomination committees 
david 61 joined the board on 23 august 
2004 following a career in the investment 
banking industry david has been acting 
as a nonexecutive director for a variety 
of public and private companies these 
include imagination technologies group plc 
and ffastfill plc david is a fellow of the 
securities institute
†  member of the audit remuneration and 
nomination committees
  member of the remuneration and nomination 
committees
  member of the nomination committee
 david hurstbrown  
 nigel clifford  
 paul taylor   aniteannual report and accounts 2010     21
christopher humphrey
chief executive
christopher 53 joined the board in february 
2003 as group finance director and was 
appointed chief executive of the company 
on 31 december 2008 he has held senior 
positions in finance at conoco eurotherm 
international plc and critchley group plc
 christopher humphrey 
 clay brendish 
 richard amos 
richard amos
group finance director  
and company secretary
richard 43 was appointed to the board 
as group finance director on 2 november 
2009 assuming the additional responsibility 
of company secretary on 17 february 2010 
prior to this he was group finance director 
at agilisys holdings limited a private it 
services company and was previously  
group finance director and company 
secretary at two listed technology groups 
retail decisions plc and vega group plc
clay brendish cbe†
nonexecutive chairman
clay 63 was appointed as nonexecutive 
chairman in october 2005 prior to his 
retirement in may 2001 he was executive 
deputy chairman of cmg now part of 
logica having joined the board when it 
acquired admiral plc the software services 
company he cofounded in 1979 clay is 
also nonexecutive chairman of sthree plc 
and echo research limited he is a trustee 
of economist newspapers limited and 
chairman of the test and itchen association 
limited clay’s other nonexecutive 
directorships are of bt group plc and  
herald investment trust plc 22     aniteannual report and accounts 2010
management and governance
the directors present their report on the affairs of the group together with the audited financial statements for the year ended 30 april 2010
principal activities
the group is a leading worldwide provider of it solutions software systems integration and managed services within its core markets of 
wireless and travel analyses of turnover profit on ordinary activities and net assets are given in note 2 on pages 51 to 54
business review and future developments
the company is required by the companies act to include a business review in this report the information that fulfils the requirements 
of the business review can be found in the review of the year’s operations key risks trading outlook and future developments that are 
contained in the chairman’s statement on page 3 the chief executive’s review on page 5 the review of operations on page 13 the financial 
review on page 16 and the corporate governance report on page 25 of this report
where the annual report contains forwardlooking statements these are made by the directors in good faith based on the information 
available to them at the time of their approval of this report consequently such statements should be treated with caution due to the 
inherent uncertainties including both economic and business risk factors underlying such forwardlooking statements or information
results
the audited accounts of the group for the year ended 30 april 2010 are set out on pages 40 to 93 the group loss for the year after taxation 
was £34m 2009 profit after taxation of £363m
dividends
the directors recommend a final dividend of 065p 2009 065p per ordinary share which if approved by shareholders at the 2010 agm 
will be due for payment on 26 october 2010 to holders of ordinary shares on the register at the close of business on 17 september 2010 
this together with the interim dividend of 03p per ordinary share 2009 03p paid on 19 february 2010 will make a total dividend for the 
year of 095p per ordinary share 2009 095p plus special dividend of 3p per ordinary share
research and development
the total expenditure in the year within continuing operations was £126m 2009 £98m of which £132m was expensed in the income 
statement 2009 £108m including net amortisation of £06m 2009 net amortisation £10m this expenditure was incurred on product 
development and enhancement
acquisitions and disposals
there were no acquisitions or disposals during the year
share capital
during the year the company allotted 73355 ordinary shares with a nominal value of 1125p each 
the company’s authorised ordinary share capital comprised 355555556 new ordinary shares of 1125p each and the issued ordinary share 
capital comprised 298683195 new ordinary shares of 1125p each details are set out in note 27 on page 77
purchase of own shares
the company did not purchase any of its own shares during the year
the company will put a resolution to shareholders to renew its authority to purchase up to 29881932 ordinary shares with a nominal value 
of 1125p each being 10 of the issued ordinary share capital of the company as at 1 july 2010 at the annual general meeting to be held 
on 16 september 2010
directors
details of the persons who were directors during the year can be found in the report on corporate governance which starts on page 25  
full biographical details of the company’s directors at the date of this report are given on pages 20 to 21 peter bertram resigned as a 
director on 8 december 2009 on the resignation of peter bertram david hurstbrown was designated as the senior independent  
nonexecutive director
paul taylor was appointed as a nonexecutive director on 5 october 2009 he became chairman of the audit committee on the resignation 
of peter bertram having been appointed since the last general meeting of the company mr taylor will retire at the agm in accordance with 
article 64 and being eligible offers himself for reappointment
richard amos was appointed as group finance director on 2 november 2009 he became company secretary on 17 february 2010 having 
been appointed since the last general meeting of the company mr amos will retire at the agm in accordance with article 64 and being 
eligible offers himself for reappointment
the company’s articles of association require that onethird of the directors must retire at each agm and that each director must offer 
themselves for reelection at least once every three years at the 2010 agm david hurstbrown will retire by rotation under article 66 and 
being eligible offers himself for reelection 
 report of the directors   aniteannual report and accounts 2010     23
the board considers that the performance of the director proposed for reelection continues to be effective and that he demonstrates a 
strong commitment to his role in addition the board considers that the performance of the directors proposed for reappointment will be 
effective and that they too demonstrate the necessary commitment 
directors’ interests
the beneficial interests of the directors holding office at 30 april 2010 and their immediate families in the capital of the company are 
as set out in the remuneration report which starts on page 31 no director has or had during the period under review any interest in any 
contract of significance with the company or any of its subsidiaries other than their own employment contracts
directors and officers of the company and its subsidiaries benefit from directors’ and officers’ liability insurance cover in respect of 
legal actions brought against them in addition directors of the company are indemnified in accordance with the company’s articles of 
association and to the maximum extent permitted by law all directors have deeds of indemnity that are in force as at the date of this 
report these indemnities are available for inspection by shareholders at the company’s registered office during normal business hours and 
will be available for inspection at the agm
neither the insurance nor the indemnities provide cover where the relevant director or officer has acted fraudulently or dishonestly
articles of association
the company adopted new articles of association at the 2009 agm no changes to these articles are proposed at the 2010 agm a copy of 
the current articles of association can be inspected at the company’s registered office during normal business hours and will be available for 
inspection at the agm
major shareholders
as at the date of this report the company has been notified of the following holdings of 3 or more of the total voting rights attaching to 
its issued share capital
 percentage of issued capital
 
aberforth partners llp     1385
bt pension scheme trustees limited    1202
fidelity international limited    550
legal  general investment management limited    399
prudential plc    333
the wellcome trust    306
corporate social responsibility
environmental policy the company supports the protection of a sustainable environment the group’s activities do not produce 
harmful waste or emissions and the group is a constituent of the ftse4good index of ethically sustainable companies while our 
operations by their nature have minimal impact on the environment we recognise our responsibilities in this respect
anite is therefore committed to
 complying with the relevant environmental legislation regulations and industry standards of the countries in which it conducts business
 reducing the output of emissions that may have an adverse impact on the environment
 minimising the consumption of energy and water used in its facilities
  reducing waste and wherever practicable reusing and recycling consumables eg paper toner cartridges and computer equipment 
and disposing of nonrecyclable items in an environmentally acceptable manner and
 where practicable purchasing environmentally sound goods and services
in order to achieve these objectives the company is building awareness and promoting initiatives to encourage employees to become fully engaged
corporate governance
the corporate governance report is set out on pages 25 to 30
charitable contributions and voluntary initiatives
contributions by the group during the year for charitable purposes amounted to £10350 2009 £3200 the group does not make any 
political donations
financial instruments
details of the financial risk management objectives and policies of the group are set out in the corporate governance report on pages 25 to 30
employees
the energy commitment and passion of our employees are vital to our business the company strives to create a working environment 
which encourages people to be individuals and develop their full potential within a framework of shared values and goals to achieve 
this anite is committed to a policy which provides all employees and potential employees with equality of opportunity for selection and 
development regardless of age gender nationality race creed disability or sexuality 24     aniteannual report and accounts 2010
management and governance
 report of the directors  continued 
in the event of employees becoming disabled every effort is made to ensure that their employment with the company continues and that 
appropriate training is arranged for them
employees are provided with information through myanitecom the group’s global intranet road shows and other internal 
communications the views and ideas of employees are sought through discussion line management and focus groups
the company operates a range of employee share schemes for executive directors and a small number of senior executives and they are 
more fully described in the remuneration report contained on pages 31 to 36 since august 2005 the company has offered employees an 
enhanced share incentive plan which currently matches on a oneforone basis the number of shares purchased monthly by employees 
on 29 june 2009 the board approved a new anite uk sharesave plan 2009 the “plan” which has also been approved by hm revenue  
customs the plan is an all employees’ share scheme which provides for options to be granted over shares using new issue shares or treasury 
shares as well as market purchase shares in respect of future grants that are purchased in the market
significant contracts
on 8 december 2009 following an announcement that the company had decided to commercialise its own lte hardware platform the 
company announced that it was terminating the fiveyear development and marketing agreement with agilent technologies inc that had 
been entered into on 1 november 2007 anite is continuing to work with agilent on delivery of marketleading 2g and 3g solutions under 
separate existing arrangements anite does not expect any material oneoff costs resulting from the termination of the partnership
change of control
all the company’s employee share schemes contain provisions relating to a change of control of the company following a takeover  
bid under these provisions a change of control of the company would normally be a vesting event facilitating the exercise or transfer  
of awards subject to any relevant performance conditions being satisfied or waived at the discretion of the remuneration committee 
other than contracts in the normal course of business the company is not party to any other significant agreements that take effect alter 
or terminate upon a change of control following a takeover bid other than with regard to the company’s bank facility agreement which 
provides that on a change of control the majority lenders have the ability to cancel and seek repayment of all outstanding loans
payment of suppliers
it is the group’s policy to agree with all suppliers where practicable appropriate terms of trade and to operate within those terms trade creditors 
at 30 april 2010 represented on average 51 days’ credit 2009 43 days for the group and 42 days’ credit for the company 2009 29 days
going concern
the directors acknowledge the latest guidance on going concern despite the current volatility in the financial markets and uncertain economic 
outlook the directors believe that the group has a robust business model as evidenced by the trading of the business over the past six 
months strong free cash flow generation and is compliant with all its banking covenants in making their assessment of going concern the 
directors consider the budgets including the wireless research and development commitments cash forecasts for the following 18 months 
together with the forecast covenant positions in addition the directors take into account the current strong net cash position the availability 
of banking facilities as set out in note 20 and the maturity profile of debt obligations detailed in note 24 after considering the above the 
directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future 
accordingly anite continues to adopt the going concern basis in preparing the consolidated financial statements
disclosure of information to auditors
in the case of each of the persons who were directors of the company at the date when this report was approved
 so far as each of the directors is aware there is no relevant audit information of which the company’s auditors are not aware and
  each of the directors has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant 
audit information and to establish that the company’s auditors are aware of that information
this information is given and should be interpreted in accordance with the provision of section 418 of the companies act 2006
reelection of auditors
the board has considered and recommends the reappointment of deloitte llp as auditors deloitte llp have expressed their willingness to 
continue in office as auditors and a resolution proposing their reappointment will be proposed at the forthcoming annual general meeting
annual general meeting agm
the agm of the company will be held at 12pm on thursday 16 september 2010 at 353 buckingham avenue slough berkshire sl1 4pf  
the notice setting out details of the business to be considered at the meeting is sent to shareholders with this annual report
by order of the board and signed by
richard amos
company secretary
5 july 2010 aniteannual report and accounts 2010     25
management and governance
the company is committed to the principles of good corporate governance contained in the combined code on corporate governance 
issued by the financial reporting council in june 2006 the “code” this report sets out the company’s compliance with the code
statement of compliance with the combined code
the company has applied the principles set out in section 1 of the code throughout the accounting period including both the main and 
supporting principles by complying with the code as reported above further explanations of how principles and supporting principles have 
been applied are set out below and in the remuneration report and the report of the audit committee
the board
the board of directors is the body responsible for corporate governance for establishing policies and objectives and for the stewardship 
of the group’s resources it is the group’s policy that the roles of chairman and chief executive are separate with their roles and 
responsibilities clearly divided and recorded the chairman is responsible for leadership of the board ensuring its effectiveness and setting 
its agenda he also ensures that communication with shareholders is effective and facilitates the contribution of the nonexecutive 
directors the chief executive is responsible for implementing the strategy agreed by the board as a whole and for managing the group 
currently the board is made up of the nonexecutive chairman the chief executive the group finance director and three nonexecutive 
directors david hurstbrown is the senior independent director the biographies of the directors as at the date of this report are given on 
pages 20 to 21
the chairman was considered to be independent on his appointment to the board it is the opinion of the board that the three non
executive directors are independent of management and have no business or other relationship which could interfere materially with the 
exercise of their judgement in relation to the business of the company or the group
the directors believe it is essential that the company has an effective board the board operates formally through regular board meetings 
and there is also frequent communication between the directors outside these meetings the board met 23 times during the year including 
10 scheduled meetings and 13 ad hoc meetings convened to deal with specific matters requiring board consideration or approval details of 
attendance at these meetings are given in the table on page 27 during the year the board also received detailed strategy presentations from 
the divisional managing directors
the board is responsible to the company’s shareholders for the management and control of the group’s activities its strategic objectives 
governance internal controls and the stewardship of its resources the regular and timely provision of information to the board is ensured 
through the monthly preparation and circulation to all board members of the chief executive’s report which reports on operational matters 
the group finance director’s report which provides the monthly management accounts and other relevant financial information and the 
company secretarial report which covers corporate governance corporate social responsibility and matters concerning the company’s shares 
share schemes and shareholders other matters are tabled on a regular basis at board meetings or are reported to the board as appropriate
the board has a regular schedule of meetings together with further meetings when required in addition directors meet as members of 
relevant committees the board has delegated the normal operational management of the company to the executive directors who have 
direct responsibility for all operations and activities the company currently has two executive directors supported by an executive team 
which comprises the managing directors of the handset testing network testing and travel businesses
the board has agreed a formal schedule of matters reserved specifically for its decision which include
  strategy and objectives
  business risks
  business plans and budgets
  changes in capital and corporate structure
  accounting policies and financial reporting
  internal controls and business risk factors
  major contracts
  capital projects
  acquisitions and disposals
  communications with shareholders and
  board membership
the chairman and the nonexecutive directors meet without executive directors present at least annually
during the year the board combined the roles of group finance director and company secretary which it felt was appropriate given the  
size and complexity of the group all directors have access to the advice and services of the group finance director and company secretary 
who is responsible for ensuring that board procedures and applicable rules and regulations are observed there is an agreed procedure for 
directors to obtain independent professional advice paid for by the company
in accordance with the company’s articles of association onethird of the board is required to retire by rotation each year and each director 
must offer himself for reelection once every three years in addition any director appointed during the year will stand for election at the 
next general meeting ensuring that each board member faces reelection at regular intervals details of the directors due to retire at the 
2010 annual general meeting are shown on page 22
 corporate governance report  26     aniteannual report and accounts 2010
management and governance
committees of the board
the board’s committees meet regularly to enable them to discharge their responsibilities each committee has terms of reference which are 
reviewed regularly by the board copies are available on request from the company secretary or on the group’s website wwwanitecom
following formal decision making the board may on occasion delegate authority to a committee consisting of any two directors to approve 
the detailed execution of an agreed course of action within strict parameters
audit committee
the audit committee comprises paul taylor clay brendish and david hurstbrown it is chaired by paul taylor the committee’s role is to 
assist the board in the effective discharge of its responsibilities for financial reporting and internal control
the report of the audit committee on page 37 includes details of the audit committee and its work
nomination committee
the nomination committee comprises the chairman the three independent nonexecutive directors and the chief executive it is chaired 
by david hurstbrown the committee may invite others including external advisers to attend its meetings as appropriate the nomination 
committee met three times during the year details of attendance at each meeting are shown in the table on page 27 paul taylor was 
appointed as a nonexecutive director of the company on 5 october 2009 richard amos was appointed as group finance director on  
2 november 2009 he subsequently took on the additional responsibilities as company secretary on 17 february 2010 biographical details 
of paul and richard are contained on pages 20 and 21
the principal role of the nomination committee is to advise and make recommendations to the board with regard to the size structure and 
composition of the board the appointment of new directors and the reappointment of existing directors the committee follows formal 
rigorous and transparent procedures when appointing new directors which include the preparation of a job description the use of external 
advisers to facilitate the search and the evaluation of candidates according to objective criteria all shortlisted candidates are interviewed by 
at least two members of the committee
remuneration committee
the remuneration report on pages 31 to 36 includes details of the remuneration committee and its work
board and committee composition and attendance
the following tables detail the current composition of the board and its committees and the attendance of directors at meetings of the 
board and board committees during the year ended 30 april 2010
   date of service contract
  or letter of appointment  audit remuneration nomination
director  or reappointment unexpired term committee committee committee
clay brendish nonexecutive chairman  5 october 2008 one year three months  member  member  member
christopher humphrey chief executive  3 february 2003  rolling one year    member
richard amos group finance director  
 and company secretary 2 november 2009 rolling one year   
david hurstbrown nonexecutive director 
 senior independent  
 nonexecutive director  
 from 8 december 2009 23 august 2007  one month member  chairman  chairman
nigel clifford nonexecutive director   1 april 2009 one year nine months  member member
paul taylor nonexecutive director 5 october 2009 two years three months chairman member member
 corporate governance report  continued aniteannual report and accounts 2010     27
attendance at meetings
  audit remuneration nomination 
 board committee committee committee
 meetings attended meetings attended meetings attended meetings attended
 during during during during during during during during
 the year the year the year the year the year the year the year the year
chairman
clay brendish  23 21 4 4 5 5 3 3
executive directors
christopher humphrey  23 23 – 4

  –  3

 3 3
richard amos
†
 23 11 – 2

 – 1

 – –
nonexecutive directors
peter bertram
††
 23 10 4 3 5 4 3  3
david hurstbrown  23 18 4 4 5 5 3 3
nigel clifford 23 18 – 1

 5 5 3 2
paul taylor
‡
 23 9 4 2 5 1 3 –
 attended by invitation 
† richard amos was appointed as a director of the company on 2 november 2009 
†† peter bertram resigned as a director of the company on 8 december 2009 
‡ paul taylor was appointed as a director of the company on 5 october 2009 
 10 scheduled meetings and 13 ad hoc meetings
terms and conditions of appointment of the nonexecutive directors
nonexecutive directors are normally appointed for a term of three years the terms and conditions of the appointment of the non
executive directors are available for inspection by any person at ancells business park harvest crescent fleet hampshire gu51 2uz or the 
company’s registered office during normal business hours and at the annual general meeting of the company
board performance evaluation and training
the board as part of its commitment to ensure its effectiveness and evaluate its performance undertook an evaluation of its performance 
and that of its directors during the year this evaluation consisted of a questionnaire being completed by all board members in addition 
questionnaires were completed by members of the audit committee and the remuneration committee in connection with a formal 
evaluation of each committee’s assessment of its performance and effectiveness
the nonexecutive directors have met alone to appraise the chairman’s performance
the evaluation of board performance will continue to be conducted annually and the company may engage external help from time to time 
to ensure that the process is robust
induction and development of directors
all new directors receive a comprehensive induction to the company
individual directors are expected to take responsibility for identifying their training needs and to take steps to ensure that they are adequately 
informed about the company and their responsibilities as a director in addition the company has a continuing professional approach to assist 
the directors in discharging their responsibilities effectively this is achieved through briefings on business issues as well as legal accounting 
and changes in corporate governance directors also have the ability to attend external seminars on topics that are of interest
nonexecutive directors meet regularly with executive directors and members of the executive team and also receive regular business 
updates via scheduled presentations
key performance indicators kpis
the group uses a range of performance measures to measure and manage the businesses within the group in addition the divisions have 
established their own performance indicators that are specific to their individual businesses
the group kpis monitor order intake revenue margins research and development spend adjusted operating profit and headcount  
in addition to these group kpis other measures indicating specific divisional measures such as cash generation working capital capital 
expenditure product development and major project performances are used
the group changes and refines the kpis regularly dependent on the major issues that are identified in the businesses
internal control and risk
the directors have overall responsibility for ensuring that the group maintains a sound system of internal control to provide them with 
reasonable assurance that all information used within the business and for external publication is adequate including financial operational 
and compliance control and risk management and for ensuring that assets are safeguarded and therefore that shareholders’ investment 
is protected there are limitations in any system of internal control and accordingly even the most effective system can provide only 
reasonable and not absolute assurance against material misstatement or loss
the group continues to enhance its project management procedures to ensure that good practice is applied consistently across the group 28     aniteannual report and accounts 2010
management and governance
in line with past practice the board has reviewed the internal control system in place during the year and until the date of the approval of 
this report to ensure that it remains effective where significant weaknesses are identified as a result of the reviews new procedures are put 
in place to strengthen controls
the board has in place risk assessment processes across the group’s divisions and procedures have been established to implement best practice 
there is an ongoing process for identifying managing and reviewing any changes in the risks faced by the businesses this process has been in 
place throughout the year under review and continues it operates under the direction of the board and is reviewed by the audit committee
the key procedures that the board has established and which are designed to provide effective internal control for the group are
  the board sets out the group authority procedures which are adopted by all the subsidiary companies
  the issue of a group accounting and procedures manual which sets out the group’s accounting practices revenue recognition rules 
accounting under ifrs and bid approval processes
  the board continues to review the progress of major contracts
  the director of projects and programmes oversees project management standards and procedures across the group and the education  
of all divisional project managers in best practice for the management of bids and the execution and status reporting of projects
  the application of a rigorous annual budgeting process following a detailed divisional and group strategy review all budgets are subject 
to approval at board level
  the executive team is responsible for reviewing the operational results communicating and applying groupwide policies and 
procedures and strategy on operational matters which is communicated both to the board and to the operating units
  the formal monthly operational review by executive directors together with the divisional management teams to assess the financial 
and operating performance and discuss the ongoing development of each business unit and the comparison of detailed monthly 
management reports against budgets forecasts and prior years in addition the chief executive and group financial director prepare 
monthly reports for the board on key developments performance and issues in the business
  the maintenance of local operating boards and divisional management teams enabling the board to delegate appropriate levels of 
authority to a small number of subsidiary company directors and managers all of whom are directly accountable to the board
  the identification and mitigation of major business risks is the responsibility of operating company management each operating 
company maintains internal controls and procedures appropriate to its structure and business environment while complying with  
group policies standards and guidelines the managing director and finance director of each business unit are required to complete 
a selfassessment checklist half yearly this provides assurance that the business unit has complied with internal controls financial 
controls and reporting requirements of the group and has brought to the attention of group management any instances of fraud or 
other matters relating to their business
  insurance cover is maintained for all the major risk areas of the group based on the scale of the risk and the availability of cover in the 
external market
  the use of external professional advisers to carry out due diligence reviews of potential acquisitions
  the operation of a small internal review function to carry out internal control reviews of the operating divisions on a rolling basis 
reporting to the audit committee
 the periodic detailed objective review of each business and its future direction by management and the audit committee
the board with the advice and recommendations of the audit committee will continue to review the effectiveness of all internal systems 
of control through independent reports where appropriate and by internal formal monthly review meetings in all main operating companies 
and divisions to test the validity of the internal reporting process
internal review function
the board has established a group internal review function which reports to the audit committee the function is not an independent audit 
function but is nevertheless an important part of the group’s overall system of internal control
risk management
anite has undergone significant change over the past few years anite is now an international software and solutions company focused 
on the provision of test and operational systems in the wireless market and reservations and ecommerce solutions to the leisure and 
travel industry these markets provide significant challenges as well as rewards and management has progressively improved the group’s 
approach to risk management
the combination of robust and welldefined central direction strong divisional management and effective processes and controls enable  
the group to identify and deal with key risks at the earliest opportunity
the group operates rigorous processes and controls to ensure that for each division there is a detailed annual operating plan and budget 
with a monthly operational review by senior management to ensure the businesses are making progress against those plans taking the 
appropriate corrective actions throughout the course of the year should issues arise the progress of each division is reported regularly  
to the main board meetings
the principal risk factors that may affect anite group’s business are outlined below these are not all within the group’s control other 
factors beside those listed may also affect the group
 corporate governance report  continued aniteannual report and accounts 2010     29
business asset risk
the group increasingly operates in global markets and failure to manage its portfolio of businesses effectively could have a serious 
impact the group conducts regular reviews of its business portfolio it may however still be exposed to risks such as increased taxation 
regulations and threats to its market leadership
political and economic climate risk
the group recognises that in some countries in which it operates specific country risks exist that could have an effect on its business 
and such risks may include volatility of national currencies volatility in the local economic conditions unexpected changes in local laws 
regulations or standards and changes in local customs and business practices
project delivery risk
the successes of the group businesses are partially dependent on the successful completion of development projects within budget cost 
and specifications the delivery of these projects is subject to certain technical commercial legal contractual and economic risks
strategic and operational risks
within wireless
  the highly technical and fastchanging nature of the marketplace
  ensuring the business realises growth in network testing
  the ability to identify and maintain effective relationships with key suppliers and strategic partners
  the need to keep products at the forefront of changes in technology
within travel
  the changing nature of the customer market resulting from increasing use of the internet
  the need to keep products at the forefront of changes in technology
  delivery of projects and contracts to our clients within agreed budgets and timescales
  ensuring the business is flexible enough to accommodate the changing structure of the travel industry
  ensuring that the division has common robust systems and backup processes in place to mitigate problems of external infrastructure 
failures that might have an impact on the division’s performance
human resource and organisation risks
anite’s performance and its ability to mitigate significant risks within its control depend on its employees and management teams future 
success will depend to a large extent on the group’s ability to attract retain and motivate its people
if the group loses the services of key people or is unable to attract and retain employees with the right capabilities and experience it would 
be likely to have an effect on the group’s business and operations
financial risks
the group has several financial risks including costs the nature of commercial contracts interest rates exchange rates insurances and 
other financial risks some of these are covered in the group treasury management section below
the group also recognises that the continued change in the group’s portfolio and geographic spread requires new risk mitigation techniques 
which enable the group to
  manage bank debt in compliance with banking covenants
  identify and mitigate the effect of currency interest rate and cost changes
  mitigate the increase in the group’s tax rate as sales and profits expand in higher tax areas
group treasury management
the group’s financial instruments comprise borrowings derivatives cash and liquid resources and various items such as trade debtors and 
trade creditors that arise directly from and finance operations
the main risks arising from the group’s financial instruments are foreign exchange risk interest rate risk liquidity risk and credit risk  
the board reviews and agrees policies for managing these risks which are summarised below these policies are reviewed on a regular  
basis the group’s head office finance function is responsible for ensuring that the policies approved by the board are adopted throughout 
the group
foreign currency risk
the group is subject to a crossborder transactional currency exposure in respect of trading outside each operating company’s functional 
currency where possible currency receivables and payables are matched creating a natural hedge a proportion of any surplus crossborder 
transactional exposure is hedged using appropriate derivative instruments the proportion of forecast cash flows that will be hedged is 
reviewed regularly in the light of experience – see note 24h for further details the policy is that any surplus foreign currency is converted 
into sterling at the earliest opportunity 30     aniteannual report and accounts 2010
management and governance
the group has overseas subsidiaries which operate mainly in north america northern europe and asia pacific and whose revenues and 
expenses are denominated in their local currencies up until 30 april 2010 the group partly hedged its investments in overseas subsidiaries 
through financial instruments and natural hedges in march 2010 the board decided to cease hedging investments in overseas subsidiaries 
using financial instruments as detailed in note 23 the group executed a number of derivatives to manage its foreign exchange exposure 
with a view to providing investor certainty on its crosscurrency swap liability and following the purchase of a forward exchange contract 
on 22 april 2010 the group ceased to apply hedge accounting to its net investment in overseas subsidiaries using derivative financial 
instruments further details are set out in note 24f on page 72
interest rate risk
the group finances its operations and acquisitions through a mixture of retained reserves and bank borrowings the group seeks to minimise 
overall net interest expense and where there are surplus funds to obtain a fair market rate of return the group operates a cashpooling 
arrangement for all its uk operating companies and endeavours to balance liquidity requirements with achieving a market rate of return on 
cash through the use of shortterm money market deposits or other term deposits appropriate financial instruments are used to mitigate 
the impact of changes in interest payable in respect of significant borrowings further details are set out in note 24e on page 72
liquidity risk
the group seeks to maintain a balance of available facilities to fund the group’s liquidity requirements further details of which are set out  
in note 24k on pages 74 and 75
the group has strong operating cash inflows and has focused efforts on managing its working capital
credit risk
the group’s policy on credit risk is set out in note 24j on page 74
relations with shareholders
communications
the board considers effective communication with its investors whether institutional private or employee shareholders to be  
extremely important
the company reports formally twice a year with the halfyear results announcement and the preliminary announcement of the fullyear 
results shareholders are issued with an interim report and accounts in december and with the fullyear report and accounts in july  
in addition as required under article 6 of the transparency directive the company issues an interim management statement during each 
half year these reports are posted on wwwanitecom
the company makes other announcements from time to time which can also be found on wwwanitecom
members of the board meet institutional investors on a regular basis providing an opportunity to discuss in the context of publicly available 
information the progress of the business institutional investors and analysts are also invited to attend briefings by the company following 
the announcements of the annual and interim results
during the year the nonexecutive directors met a number of major shareholders individually
the chairman and the senior independent director are available to shareholders on all matters relating to governance
annual general meeting agm
the company’s agm will be held on 16 september 2010 at the company’s registered office in slough the notice of meeting is sent to 
shareholders at least 20 working days before the agm the directors encourage the participation of private shareholders at the agm and 
are available for questions both formally during the meeting and informally afterwards the chairmen of the audit remuneration and 
nomination committees are normally available to answer questions at the agm
approved by the board and signed on its behalf
richard amos
company secretary
5 july 2010
 corporate governance report  continued aniteannual report and accounts 2010     31
management and governance
this report has been prepared in accordance with the companies act 2006 and associated legislation and meets the relevant requirements 
of the listing rules of the financial services authority as required by the relevant legislation a resolution to approve the report will be 
proposed at the annual general meeting agm of the company at which the financial statements will be presented for approval
the relevant legislation requires the independent auditors to report to the company’s shareholders on certain specified matters and this 
report has therefore been split into separate sections for the unaudited and audited information
unaudited information
remuneration committee
the remuneration committee is a committee of the board and comprises the nonexecutive directors who are independent of 
management and free from any business or other relationship which could interfere with the exercise of their independent judgement  
the company chairman who was independent on appointment is also a member
during the year membership of the committee was as follows david hurstbrown chairman of the committee peter bertram  
resigned 8 december 2009 clay brendish nigel clifford and paul taylor appointed 5 october 2009 
the committee met five times during the year details of attendance at the meetings are shown in the table in the corporate governance 
report on page 27
the principal function of the committee is to make recommendations to the board on the remuneration policy for executive directors it is 
also responsible for setting the individual remuneration packages for the chairman in his absence the executive directors and the chief 
executive’s direct reports and for monitoring and approving the operation of all sharebased incentive arrangements the committee also 
determines the terms and conditions of employment of the executive directors
the committee operates within agreed terms of reference which are posted on the company’s website
advice and assistance
the committee uses hewitt new bridge street as its professional advisers on executive remuneration and employee share schemes  
neither hewitt new bridge street nor its parent company hewitt associates provide any other services to the company
the finance director provides the committee with information and assistance but does not generally attend meetings the chief executive 
does regularly attend meetings to provide his insights on business objectives the individual performance of his direct reports and pay and 
conditions throughout the group no executive director or senior manager is however present when their own remuneration is being 
specifically discussed
remuneration policy
main principles
the company’s objective is to attract retain and incentivise highcalibre executives who can drive the business forward and increase 
shareholder value to meet this objective the company follows three key principles
  total rewards are designed to be competitive with the remuneration package of each executive director and their direct reports 
benchmarked regularly against the market
  incentivebased rewards are seen as an important part of each executive director’s total remuneration and are designed to drive and 
reward exceptional performance and
  longterm incentive arrangements are designed to align the interests of the executive directors and senior managers with those of the 
shareholders and to support the company’s business strategy
the committee also ensures that when determining the executive directors’ remuneration packages due account is taken of pay and 
employment elsewhere in the group in this regard the committee ensures via regular interaction with the company’s hr function and  
the chief executive’s attendance at certain meetings that it is kept fully abreast of all relevant groupwide remunerationrelated issues 
there were no increases in base salary levels awarded to the executive directors for the year commencing 1 may 2010 compared with 
broadly inflationary increases for the workforce at large
the committee will ensure that the incentive structures for executive directors and senior managers will not raise environmental social or 
governance esg risks by inadvertently motivating irresponsible behaviour more generally with regard to overall remuneration structures 
there is no restriction on the committee which prevents it from taking into account esg matters nor do these remuneration structures 
encourage inappropriate operational risk taking
reward structure
the executive directors’ total remuneration packages consist of
  base salary
  annual performance bonus
  pension contributions
  other benefits and allowances and
  longterm incentive arrangements
 remuneration report  32     aniteannual report and accounts 2010
management and governance
base salary
base salary is reviewed annually and is set with reference to salary levels for similar roles in other comparable companies in the software 
and computer services sector and the market generally the factors for comparability include market sector size and business complexity
as stated above there were no increases to the base salaries of the executive directors for the year commencing 1 may 2010
annual performance bonus
the company operates an annual bonus plan the plan for executive directors under the terms of the plan for year ended 30 april 2011 
a bonus of up to 125 of salary can be earned year ended 30 april 2010 100 for the year under review bonuses were determined 
by performance against i a sliding scale of challenging group profit targets calculated excluding fair value writedowns amortisation 
of acquired business gains or losses on business disposals and deduction of sharebased payments ii preagreed stretching personal 
objectives and iii delivery of key strategic business objectives
in reviewing the performance of the whole year the committee made no annual bonus payment to christopher humphrey as minimum 
profit targets were not achieved in the case of richard amos the committee has awarded a bonus of £23125 reflecting his performance 
against stretching personal objectives his award has been prorated to reflect his employment for six months of the financial year
for the financial year 201011 the plan will be based on the achievement of profit growth targets achievement of budgeted profitability 
will entitle the participant to a bonus of 25 of base salary with stretching targets above this required to be met for the maximum 100 
of base salary that is applicable to this element of the bonus to be paid in addition up to a further 25 of base salary is payable for the 
achievement of personal objectives although for such payments to be made a minimum level of profit growth must be achieved this 
change in policy which enhances the performancerelated element of the executive directors’ packages is regarded as appropriate due to 
the stage of the group’s evolution and the importance of returning the group to a growth plan reflecting the higher available maximum 
payment the percentage of base salary attributable to budgeted performance has been decreased from 75 in 2009 to 50 in 201011 
with a 50 of salary bonus payable only for full achievement of the challenging personal objectives
pension contributions
christopher humphrey makes his own pension arrangements and the group makes no payment in this respect richard amos belongs to the 
anite stakeholder pension plan and the company contributes 5 of his base salary on the basis that he contributes a minimum of 3
other benefits and allowances
executive directors are entitled to a car allowance fuel medical insurance deathinservice and permanent health insurance together with 
reasonable business expenses
longterm incentive arrangements
the company operates the following two longterm sharebased incentive plans for executive directors
  the performance share plan psp and
  the share matching plan smp
under the psp an individual may receive an award of shares worth up to 100 of their salary per annum although in exceptional 
circumstances an award of up to 200 of their salary may be made 
the executive directors and a small number of the most senior executives are also able to participate in the smp as originally structured 
participants were allowed to lodge in the smp shares worth up to 30 per annum of base salary which were then matched on a twofor
one gross basis
in 2007 shareholders approved a change to the investment level under the smp pursuant to this change while the effective average annual 
level of coinvestment in the smp remained unchanged at 30 per annum executives were provided with an opportunity over the three 
financial years from 1 may 2007 to 30 april 2010 to invest a higher amount annually up to 90 of base salary in the smp any investment 
is however subject to the effective current overall aggregate limit of 90 of salary over this threeyear period the original twoforone 
gross matching ratio was retained a proposal is being made to this year’s agm to in essence repeat the approval of the higher 90 annual 
limit again subject to the overall threeyear limit further details of the proposal are set out in the notice of agm
awards granted under the psp and smp are subject to threeyear performance conditions 
the psp and smp awards made in 2007 2008 and 2009 are subject to the following performance conditions
  half of awards are subject to a total shareholder return tsr target this is measured relative to the ftse allshare software and 
computer services sector with 25 of this portion of awards vesting at the median and full vesting at the upper quartile straightline 
vesting applies between these points and
  half of awards are assessed by reference to anite’s earnings per share eps performance for compound annual eps growth of at least 
rpi plus 4 per annum 25 of awards subject to this part of the condition will vest and for full vesting compound annual eps growth 
must be at least rpi plus 12 per annum straightline vesting applies between these points
 remuneration report  continued aniteannual report and accounts 2010     33
the eps figure used for psp and smp measurement in 2007 was 52p being basic eps before amortisation of acquired intangible assets 
gains and losses on the disposal of operations the effect of net capitalisationnet amortisation on research and development costs results 
from discontinueddisposed operations and sharebased payments
the tsr and eps performance against the 2007 targets was in both cases below the threshold performance level so these awards will lapse 
at the end of the threeyear vesting period on the third anniversary of the grant
the eps figure for the measurement for psp awards made in 2008 was 33p being profit from continuing businesses before disposed 
businesses other gains and losses sharebased payments amortisation of acquired intangible assets and restructuring costs 
the eps figure for the measurement for psp awards made in 2009 was 44p being profit from continuing businesses before disposed 
businesses other gains and losses sharebased payments amortisation of acquired intangible assets and restructuring costs 
in addition to the tsr targets before any awards vest the committee must also have satisfied itself that the company’s underlying  
financial performance over the performance period warrants the level of vesting determined by reference to the tsr performance condition 
this underpin does not apply to the eps element the extent to which the performance condition is satisfied will be calculated by external 
consultants to ensure the appropriate level of thirdparty verification
the committee will continue regularly to review the operation of the company’s share incentive arrangements to ensure that they take 
due account of market practice and the particular circumstances of the company in this regard the committee has determined that the 
following performance conditions should apply to psp and smp awards made in the forthcoming year
  half of an award will continue to be based on the company’s relative tsr compared with the ftse all share software and computer 
services sector as is currently the case and
  half of an award will be based on the adjusted profit before interest and tax performance of the wireless division pbit target  
the pbit target will primarily measure the aggregate pbit of the wireless division which comprises the handset testing and network 
testing businesses over a threeyear period but will also include an element which will reward specifically in the event of the wireless 
division exceeding its best ever year of pbit the split of the pbit target will therefore be
 1  75 ie 375 of the total grant based on the sum of the pbit of the wireless division in each of the three financial years of the 
performance period will count towards the vesting percentage the following vesting schedule will apply to this part of the award
total pbit of wireless division for 2011 2012 and 2013 proportion of the 75 of the pbit target which vests
less than £425 million 0
£425 million 25 ie 1875 of the pbit awards
between £425 million and £50 million pro rata from 25 to 100 ie 1875  
 to 75 of the pbit awards
£50 million or above 100 ie 75 of the pbit awards
 2  25 ie 125 of the total grant will be paid if in any one year of the performance period the pbit of the wireless division is in excess 
of £234 million which was the sum of the record years of pbit the handset testing and network testing businesses achieved in 
2007 and 2009 respectively for the purposes of making this assessment a constant currency will be used note that constant 
currency will not apply to the aggregate target
  note that measures 1 and 2 above will be assessed independently of each other in addition these are both independent of the tsr 
target which will continue to apply to half of all awards
  in the event that acquisitions or disposals are made during the threeyear period the committee will with appropriate financial advice 
make adjustments to the pbit target furthermore the pbit target will be measured on a consistent basis with respect to intercompany 
charges and exceptional items
  the committee will also carry out a qualitative assessment of the performance of the group as a whole when deciding whether to 
release the shares under the pbit element of the psp and smp this will ensure that there has been no event outside the wireless division 
which would make a vesting inappropriate
to provide a further alignment of interest with shareholders the executive directors and others participating in the smp are required to retain 
in shares an amount equal in value to 50 of the aftertax gain made until they have built up a shareholding equal to 100 of base salary
the executive directors are also eligible to participate in the company’s sharesave plan 2009 and the share incentive plan which are 
available to all employees
the use of new issue or treasury shares to satisfy awards made under the share plans is subject to a 15 dilution limit in any tenyear 
period the current potential dilution is below this level the committee aware of shareholders’ views in connection with this matter 
continues to take active steps to control the dilutive effect of the company’s share incentives and is currently working under an informal 
dilution limit of 10 the actual dilution is currently 70 34     aniteannual report and accounts 2010
management and governance
other share plans
recruitment award to richard amos
in addition to the longterm incentive plans detailed above the committee awarded richard amos a oneoff restricted share award on 
his commencement of employment the award of 150000 ordinary shares was granted on 10 december 2009 pursuant to the exemption 
from the need for prior shareholder approval contained in listing rule 942 r2 the committee confirms that the award was felt to be 
necessary to facilitate the recruitment of mr amos
the award will normally vest on the second anniversary of the date of grant subject to mr amos remaining employed by the group at that 
time no consideration was paid by mr amos for the award
in the event of a change of control of the company the award will vest within the threemonth period or such other period as the board 
may determine following such event
management incentive plan
in 2007 the company introduced a management incentive plan mip for key employees the mip is not available to executive directors and 
all awards are settled using market purchase shares or a cash equivalent further details of the mip are contained in note 9 on page 58
service contracts
the committee’s policy is that all executive directors’ service contracts will be rolling contracts of one year’s duration information regarding 
the service contracts of executive directors’ who served during the year is summarised in the table below
executive director    date of contract notice period
christopher humphrey  3 february 2003 12 months
richard amos  2 november 2009 12 months
 
executive directors are not permitted to hold external nonexecutive directorships or offices without the approval of the board no executive 
director received any fees in respect of any external nonexecutive directorships held during the year
the table below sets out the rights the company has to pay executive directors in lieu of notice together with the contractual compensation 
payable if the company terminates the contract other than for cause without notice
    months’ salary
   months’ salary payable in
   and contractual equivalent
   benefits payable number
   within seven days of monthly
executive director   of termination
1
 instalments
2
christopher humphrey   6 6
richard amos   – 12
1 contractual benefits for christopher humphrey alone include the annual performance bonus he would have received had he continued to be employed from the date of   
 termination until the expiry of the notice period 
2  payments cease in effect if the executive director commences employment with a new employer during the payment period
other than in the case of dismissal for gross misconduct the provisions of christopher humphrey’s service contract will be honoured in full 
the company is aware of the provisions in the combined code which state that compensation payments should reflect a departing director’s 
obligation to mitigate his loss however the company has adopted the above described approach to determining the compensation that is 
payable in the event that christopher humphrey’s service contract is terminated as it believes that it is in shareholders’ interests that the 
maximum obligations of each party in such circumstances are transparent and agreed in advance to provide certainty
if the company terminates christopher humphrey’s employment without cause the committee will be asked to exercise any discretion 
it has under the terms of any share incentive plans in his favour if the remuneration committee determines not to follow this 
recommendation he shall be entitled to damages
these terms do not apply to richard amos indeed the provisions in richard amos’s contract are in line with the committee’s standard 
policy for new executive director appointments these are that in the event of termination without cause he would be entitled to 12 
months’ salary only paid in monthly instalments and with mitigation there are no obligations on the remuneration committee to exercise 
its discretion in respect of the terms of the share incentive plans
nonexecutive directors
clay brendish has a threeyear term of office with six months’ notice of termination required by either party david hurstbrown nigel 
clifford and paul taylor each have a threeyear term of office with no notice period or provision for compensation for loss of office
further details of the nonexecutive directors’ terms of employment can be found on page 27
the board reviews the independent nonexecutive directors’ fees annually in the course of which it compares fees paid to nonexecutive directors 
of comparable companies fees recognise the additional responsibilities undertaken by the nonexecutive directors in chairing the board and 
its committees in addition to their fees the nonexecutive directors are entitled to reimbursement of reasonable business expenses
 remuneration report  continued aniteannual report and accounts 2010     35
the chairman’s fees are set by the remuneration committee he is not present at any discussion of his own remuneration there will be no 
increases in nonexecutive directors’ fees for the year commencing 1 may 2010
total shareholder return performance graph
 
this graph shows the value by 30 april 2010 of £100 invested in anite on 30 april 2005 compared with the value of £100 invested in the 
ftse allshare software and computer services index the other points are the values at intervening financial yearends
audited information
directors’ emoluments for year ended 30 april 2010
  car subtotal pension  benefits total total
 salary allowance salary contributions bonus in kind 2010 2009
 £ £ £ £ £ £ £ £
executive directors
christopher humphrey 310000 24000 334000 – – 8669 342669 553411
richard amos
4
 92500 7200 99700 4625 23125 1698 129148 –
steve rowley
1
 – – – – – – – 405105
 402500 31200 433700 4625 23125 10367 471817 958516
nonexecutive directors
clay brendish 135000 – 135000 – – – 135000 135000
david hurstbrown 42000 – 42000 – – – 42000 42000
nigel clifford
2
 37000 – 37000 – – – 37000 3083
paul taylor
3
 23314 – 23314 – – – 23314 –
peter bertram
5
 25469 – 25469 – – – 25469 42000
 665283 31200 696483 4625 23125 10367 734600 1180599
1 steve rowley resigned as a director and ceased his employment with the company on 31 december 2008 
2 nigel clifford was appointed a director of the company on 1 april 2009 
3 paul taylor was appointed a director of the company on 5 october 2009 
4 richard amos was appointed a director of the company on 2 november 2009 
5 peter bertram resigned as a director on 8 december 2009
executive directors’ share options
    options
  options  held at
  held at options 30 april 2010   first
  1 may granted or date of exercise date of exercisable expiry
  2009 in year cessation price grant date date
christopher humphrey
approved share option plan  86956 – 86956 345p 15072003 15072006 14072013
longterm incentive plan  571226 – 571226 345p 15072003 15072006 14072013
  149912 – 149912 565p 23012004 23012007 22012014
  187500 – 187500 485p 16082004 16082007 15082014
executive options – total  995594 – 995594    
saye  – 41466 41466 225p 31072009 01092014 01032015
total options  995594 41466 1037060    
there were no exercises of options during the year the closing price of an ordinary share of anite plc as at 30 april 2010 was 34p the range 
of closing prices during the year ended 30 april 2010 was 3950p high and 2675p low
steve rowley resigned as an executive director with effect from 31 december 2008 at the time of his resignation he had 1414625 options 
outstanding these all lapsed on 30 june 2009
200
150
100
50
0
30 april 2010 30 april 2009 30 april 2008 30 april 2007 30 april 2006 30 april 2005
value £
ftse allshare software and computer services index
source �omson reuters
anite group 36     aniteannual report and accounts 2010
management and governance
executive directors’ conditional share awards
     conditional
     awards at
 conditional conditional conditional conditional 30 april share
 awards at awards awards awards 2010 price at date of
 1 may made vested lapsed or date of conditional conditional vesting
 2009 in year in year in year cessation award award date
christopher humphrey
performance share plan  324521 – – 324521 – 730p 28072006 28072009
performance share plan  294610 – – – 294610 835p 31072007 31072010
performance share plan 683784 – – – 683784 370p 18082008 18082011
performance share plan 1148000 – – – 1148000 270p 23122008 23122011
performance share plan – 830350 –  830350 280p 10072009 10072012
share matching plan  324520 – – 324520 – 730p 08082006  08082009
share matching plan 1064553 – – – 1064553 705p 11102007  11102010
conditional share  
awards total 3839988 830350 –  649041 4021297   
richard amos
restricted share award – 150000 – – 150000 3225p 10122009 10122011
conditional share  
awards total – 150000 – – 150000   
former director 
steve rowley
performance share plan  455090  – –  151696 303394  835p  31072007  31072010
performance share plan  1054054 – –  702702 351352  370p  18082008  18082011
share matching plan  1644427  – –  548142 1096285  705p  11102007  11102010
conditional share  
awards total  3153571  – –  1402540 1751031   
the conditional share awards set out above are granted without payment from a participant and are subject to the performance conditions 
described above future awards under the performance share plan and share matching plan may be granted as nilnominal cost options
former director
steve rowley resigned as a director with effect from 31 december 2008 and it was agreed that i his performance share plan and share 
matching plan awards granted in 2006 should lapse on 31 december 2008 and ii his performance share plan and share matching plan 
awards granted in 2007 and 2008 should not lapse but should be capable of vesting on the agreed vesting date subject to the extent to 
which the performance conditions are satisfied at that time and a pro rata reduction on the size of the original award up to the date of 
resignation due to the group’s results not achieving minimum performance levels for 30 april 2010 his award dated 31 july 2007 will lapse 
on 31 july 2010
directors’ interests in shares
the interests of the directors who held office at 30 april 2010 in the ordinary share capital of the company were as shown in the table 
below all interests are beneficial
    number of 
    shares held as at
   number of 1 may 2009
   shares held as at or at date of
   30 april 2010 appointment
clay brendish    291222  126222
christopher humphrey    1114515  605537
richard amos
2
   227262 –
david hurstbrown    150000  35555
nigel clifford   – –
paul taylor
1
   – –
1 paul taylor was appointed a director on 5 october 2009 
2 richard amos was appointed a director on 2 november 2009
in the period from 1 may 2010 to 1 july 2010 being the latest practicable date prior to the publication of this document the only changes 
in the interests of the directors related to the monthly investments of the executive directors in the share incentive plan sip during this 
period christopher humphrey acquired 1434 and richard amos 1434 ordinary shares under the sip
this report has been approved by the board and has been signed on its behalf by
david hurstbrown
chairman of the remuneration committee
5 july 2010
 remuneration report  continued aniteannual report and accounts 2010     37
management and governance
membership
the audit committee is a committee of the board which comprises the nonexecutive directors who are independent of management and 
free from any business or other relationship which could interfere with the exercise of their independent judgement
during the year membership of the committee was as follows paul taylor chairman was appointed on 8 december 2009 following the 
resignation of peter bertram clay brendish and david hurstbrown
both paul taylor and david hurstbrown are considered by the board to be “independent” as defined by provision a31 of the combined 
code clay brendish was considered to have met the independence criteria on his appointment as chairman of the company on  
4 october 2005
the board considers that paul taylor has recent and relevant financial experience
the group provides an induction programme for new audit committee members
the committee invites others including the external auditors the group finance director and the chief executive to attend its meetings  
as appropriate the group financial controller is the secretary to the committee
meetings
during the period under review the committee met four times details of attendance at each meeting are shown in the table in the 
corporate governance report on page 27
the committee meets with the external auditors without any executive directors present at least twice annually and more often if this  
is considered appropriate
role responsibilities and terms of reference
the committee’s role is to assist the board in the effective discharge of its responsibilities for financial reporting and internal review
the committee’s responsibilities include
  reviewing the annual and interim financial statements and results announcements of the company and any other formal announcements 
relating to the company’s financial performance
  reviewing the company’s accounting policies
  monitoring and reviewing the company’s systems of internal control and risk management
  monitoring and reviewing the company’s “whistleblowing” procedures
  monitoring and reviewing the requirement for an internal audit function
  considering the appointment of the company’s external auditors overseeing the process for their selection and making recommendations 
to the board in relation to their appointment and
  overseeing the relationship with the external auditor including approval of their remuneration agreeing the scope of the audit 
engagement assessing their independence monitoring the provision of nonaudit services and considering their reports on the company’s 
financial statements and systems of internal control and risk management
the committee operates within agreed terms of reference which can be found on the company’s website
internal audit
the committee agreed in july 2006 to create an internal review function headed by a member of the group finance team who under the 
control of the audit committee carries out a plan of detailed reviews throughout the operating companies where additional resource is 
required this is sourced either from an external professional firm or by selecting divisional staff who carry out peer reviews in divisions other 
than their own this internal review function does not represent an independent internal audit function as defined by professional internal 
audit standards but has been a significant enhancement in the group’s internal control framework the committee considers that the 
current internal review function is suitable given the size and complexity of the business
independence of external auditors
deloitte llp have been the group’s auditors since september 2002 the audit committee considers that the relationship with the auditors 
is working well and remains satisfied with their effectiveness accordingly it has not considered it necessary to date to require the firm to 
tender for the audit work the external auditors are required to rotate the audit partner responsible for the group and subsidiary audits 
every five years and the current lead audit partner has been in place since october 2008 there are no contractual obligations restricting  
the group’s choice of external auditor the committee also keeps under review the value for money of the audit
paul taylor
chairman of the audit committee 
5 july 2010
 report of the audit committee  38     aniteannual report and accounts 2010
financial statements
the directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations
company law requires the directors to prepare financial statements for each financial year under that law the directors are required to 
prepare the group financial statements in accordance with international financial reporting standards ifrss as adopted by the european 
union and article 4 of the ias regulation and have also chosen to prepare the parent company financial statements under ifrss as adopted 
by the eu
under company law the directors must not approve the accounts unless they are satisfied that they give a true and fair view of the state 
of affairs of the company and of the profit or loss of the company for that period in preparing these financial statements international 
accounting standard 1 requires that directors
  properly select and apply accounting policies
  present information including accounting policies in a manner that provides relevant reliable comparable and understandable 
information 
  provide additional disclosures when compliance with the specific requirements in ifrss are insufficient to enable users to understand  
the impact of particular transactions other events and conditions on the entity’s financial position and financial performance and 
  make an assessment of the company’s ability to continue as a going concern
the directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions 
and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial 
statements comply with the companies act 2006 they are also responsible for safeguarding the assets of the company and hence for 
taking reasonable steps for the prevention and detection of fraud and other irregularities
the directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s 
website legislation in the united kingdom governing the preparation and dissemination of financial statements may differ from legislation 
in other jurisdictions
responsibility statement 
we confirm that to the best of our knowledge
  the financial statements prepared in accordance with international financial reporting standards give a true and fair view of the assets 
liabilities financial position and profit or loss of the company and the undertakings included in the consolidation taken as a whole and 
  the management report which is incorporated into the directors’ report includes a fair review of the development and performance  
of the business and the position of the company and the undertakings included in the consolidation taken as a whole together with  
a description of the principal risks and uncertainties that they face
by order of the board 
christopher humphrey
chief executive
5 july 2010
 statement of directors’ responsibilities  aniteannual report and accounts 2010     39
financial statements
 independent auditors’ report to the members of anite plc 
we have audited the group financial statements of anite plc for the year ended 30 april 2010 which comprise the consolidated income 
statement the consolidated statement of comprehensive income the consolidated statement of changes in equity the consolidated 
balance sheet the consolidated cash flow statement and the related notes 1 to 31 the financial reporting framework that has been applied 
in their preparation is applicable law and international financial reporting standards ifrss as adopted by the european union
this report is made solely to the company’s members as a body in accordance with chapter 3 of part 16 of the companies act 2006  
our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them  
in an auditors’ report and for no other purpose to the fullest extent permitted by law we do not accept or assume responsibility to anyone 
other than the company and the company’s members as a body for our audit work for this report or for the opinions we have formed
respective responsibilities of directors and auditors
as explained more fully in the directors’ responsibilities statement the directors are responsible for the preparation of the group financial 
statements and for being satisfied that they give a true and fair view our responsibility is to audit the group 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
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance 
that the financial statements are free from material misstatement whether caused by fraud or error this includes an assessment of 
whether the accounting policies are appropriate to the group’s circumstances and have been consistently applied and adequately disclosed 
the reasonableness of significant accounting estimates made by the directors and the overall presentation of the financial statements
opinion on financial statements
in our opinion the group financial statements
  give a true and fair view of the state of the group’s affairs as at 30 april 2010 and of its loss for the year then ended
  have been properly prepared in accordance with ifrss as adopted by the european union and
  have been prepared in accordance with the requirements of the companies act 2006 and article 4 of the ias regulation
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 group financial statements
matters on which we are required to report by exception
we have nothing to report in respect of the following
under the companies act 2006 we are required to report to you if in our opinion
  certain disclosures of directors’ remuneration specified by law are not made or
  we have not received all the information and explanations we require for our audit
under the listing rules we are required to review
  the directors’ statement contained within the report of the directors in relation to going concern and
  the part of the corporate governance statement relating to the company’s compliance with the nine provisions of the june 2008 
combined code specified for our review
other matter
we have reported separately on the parent company financial statements of anite plc for the year ended 30 april 2010 and on the 
information in the directors’ remuneration report that is described as having been audited 
peter o’donoghue senior statutory auditor
for and on behalf of 
deloitte llp  chartered accountants and statutory auditors 
london united kingdom 
5 july 2010 40     aniteannual report and accounts 2010
financial statements
 
 
   2010 2009
  note £000 £000
continuing operations
revenue  21 78770 90098
cost of sales   29710 34835
gross profit   49060 55263
distribution costs   10708 10755
research and development   15666 12474
administrative expenses   24529 22673
operating expenses  25 50903 45902
operating profit before sharebased payments  
amortisation of acquired intangible assets impairment 
of goodwill and acquired intangible assets and restructuring costs   22 11866 20045
sharebased payments  9 2446 1874
amortisation of acquired intangible assets  13 4231 4040
impairment of goodwill and acquired intangible assets   6172 –
restructuring costs  3 860 4770
operating lossprofit  22 1843 9361
other gains and losses  4 473 1057
finance income  6 222 1199
finance charges  6 2843 3090
lossprofit from continuing operations before tax   3991 6413
tax expense  10 436 1454
lossprofit from continuing operations   4427 4959
profit from discontinued operations  5a 1000 31384
lossprofit for the year  7 3427 36343
lossprofit attributable to equity holders of the parent   3427 36343
continuing and discontinued operations
earnings per share – basic  11 12p 113p
 – diluted   12p 108p
continuing operations
earnings per share – basic  11 15p 15p
 – diluted   15p 15p
 consolidated statement of comprehensive income 
   2010 2009
  note £000 £000
retained lossprofit for the period   3427 36343
exchange differences arising on translation of foreign operations
1
   24 449
gainslosses on cash flow hedges   189 1514
recycling of fair value loss on cash flow hedges from equity to profit or loss
2
  6 655 –
fair value losses on net investment hedges net of foreign exchange
3
   2735 3731
gain on sale of shares from treasury   3 –
share buy back and cancellation   – 660
recognition of sharebased payments before tax   2446 2783
tax chargecredit taken directly to other comprehensive income  10 134 669
total comprehensive lossincome   2979 34339
1 includes £nil 2009 £363000 recycled through the income statement on disposal of businesses 
2 the fair value losses recycled to the income statement in the year are disclosed within finance charges note 6 
3  the net loss of £2735000 2009 £3731000 comprises the fair value loss on the net investment hedge of £2796000 2009 £14124000 relating to the effective portion of 
the cross currency swaps less the foreign exchange gain of £61000 2009 £10393000
 consolidated income statement  aniteannual report and accounts 2010     41
 issued share   capital
 share premium own merger redemption other retained
 capital account shares reserve reserve reserves earnings total
 £000 £000 £000 £000 £000 £000 £000 £000
balance at 1 may 2008 33854  25406  5132 6538  2485 940 333 62544
changes in equity for the year  
to 30 april 2009
movements in total  
comprehensive income
retained profit for the period – – – – – – 36343 36343
exchange differences arising on  
translation of foreign operations – – – – – 449 – 449
cash flow hedges taken to equity – – – – – 1514 – 1514
fair value losses on net investment  
hedges net of foreign exchange – – – – – 3731 – 3731
sale of own shares from treasury – – 1670 – – – 1670 –
share buy back and cancellation 256 – – – 256 – 660 660
utilisation of merger reserve – – – 5816 – – 5816 –
recognition of sharebased  
payments before tax – – – – – – 2783 2783
tax credit taken directly to  
other comprehensive income – – – – – 649 20 669
total comprehensive income  
for the period 256 – 1670 5816 256 4147 42632 34339 
issue of share capital 46  79  – – – – – 125 
purchase of own shares  
into treasury – – 195 – – – – 195
dividend paid – – – – – – 12903 12903
balance at 30 april 2009 33644  25485  3657 722 2741 5087 30062 83910
changes in equity for the year  
to 30 april 2010
movements in total  
comprehensive loss
retained loss for the period – – – – – – 3427 3427
exchange differences arising on  
translation of foreign operations – – – – – 24 – 24
cash flow hedges taken to equity – – – – – 189 – 189
recycling of fair value loss on  
cash flow hedges from equity  
to profit or loss – – – – – 655 – 655
fair value losses on net investment  
hedges net of foreign exchange – – – – – 2735 – 2735
revaluation of own shares in treasury – – 429 – – – 429 –
sale of own shares from treasury – – 400 – – – 400 –
gain on sale of shares from treasury – – – – – – 3 3
recognition of sharebased  
payments before tax – – – – – – 2446 2446
tax chargecredit taken directly  
to other comprehensive income – – – – – 206 340 134
total comprehensive loss  
for the period – – 29 – – 1661 1289 2979
issue of share capital 8 15 – – – – – 23
purchase of own shares  
into treasury – – 209 – – – – 209
dividend paid – – – – – – 2795 2795
balance at 30 april 2010 33652 25500 3895 722 2741 6748 25978 77950
 consolidated statement of changes in equity  42     aniteannual report and accounts 2010
financial statements
   2010 2009
  note £000 £000
noncurrent assets
goodwill  12 57323 64415
other intangible assets  13 19171 26553
property plant and equipment  14 10038 10893
deferred tax assets  25 2406 1731
   88938 103592
current assets
inventories  16 4452 2289
trade and other receivables  17 24518 24297
derivative financial assets  23 856 75
current tax assets   267 381
cash and cash equivalents  18 44803 47177
   74896 74219
total assets   163834 177811
current liabilities
trade and other payables  19 25758 24699
bank borrowings  20 4988 4979
current tax payable   7439 7236
derivative financial liabilities  23 49 –
provisions  26 4611 5389
   42845 42303
noncurrent liabilities
bank borrowings  20 9979 14936
deferred tax liabilities  25 4389 6181
derivative financial liabilities  23 23569 24487
provisions  26 5102 5994
   43039 51598
total liabilities   85884 93901
net assets   77950 83910
equity
issued share capital  27 33652 33644
share premium account   25500 25485
own shares  27d 3895 3657
merger reserve   722 722
capital redemption reserve   2741 2741
other reserves   6748 5087
retained earnings   25978 30062
total equity   77950 83910
the financial statements of anite plc company no 01798114 were approved by the board on 5 july 2010 and signed on its behalf by
c j humphrey
chief executive
r j amos
group finance director
 consolidated balance sheet  aniteannual report and accounts 2010     43
   2010 2009
  note £000 £000
lossprofit for the year
continuing operations   4427 4959
discontinued operations   1000 31384
   3427 36343
adjustments for
tax credit – continuing and discontinued  10 564 1194
profit before tax on disposal of discontinued operations  5a – 28182
other gains and losses  4 473 1057
net finance charges – continuing and discontinued  6 2621 1791
depreciation and impairment of property plant and equipment  14 3170 3535
amortisation of intangible assets  13 2623 3605
amortisation of acquired intangible assets  13 4231 4040
loss on disposal of property plant and equipment   31 –
impairment of goodwill  12 5092 –
impairment of acquired intangible assets  13 1080 –
impairment of intangible assets  13 403 –
sharebased payments  9 2446 2783
decrease in provisions   1490 1931
increase in provisions – restructuring costs   – 4770
operating cash flows before movements in working capital   15743 26617
increasedecrease in inventories   2163 1248
increasedecrease in receivables   220 15360
increasedecrease in payables   799 14548
movements in working capital   1584 2060
cash generated from operations before exceptional cash payments   14159 31327
cash payments for onerous property lease   – 2650
cash generated from operations   14159 28677
interest received   259 1297
interest paid   1695 2664
income taxes paid   1720 3410
net cash generated from operating activities   11003 23900
cash flow from investing activities    
proceeds from disposal of subsidiary undertakings  5b – 53835
net bank balance disposed with subsidiary undertakings   – 8315
net payments to previously closed businesses   – 201
deferred consideration paid   364 –
part settlement of cross currency swap   – 8884
purchase of foreign exchange options   1000 –
purchase of property plant and equipment    2159 3199
proceeds from disposal of property plant and equipment    – 34
purchase of software licences  13 387 544
expenditure on capitalised product development  13 1319 1142
net cash used ingenerated from investing activities   5229 31584
cash flow from financing activities
issue of ordinary share capital   23 125
share buy back for cancellation   – 660
purchase of own shares into treasury   209 195
proceeds from sale of own shares from treasury   3 –
dividend paid to company’s shareholders  28 2795 12903
decrease in bank loans   5000 25000
net cash used in financing activities   7978 38633
net decreaseincrease in cash and cash equivalents  21 2204 16851
effect of exchange rate changes   170 952
cash and cash equivalents at 1 may   47177 29374
cash and cash equivalents at 30 april  18 44803 47177
in 2009 discontinued operations included anite public sector which generated net operating cash inflows of £3406000 paid £526000  
for capital expenditure and paid £nil in respect of net returns on investment and servicing of financing
 consolidated cash flow statement  44     aniteannual report and accounts 2010
financial statements
1 statement of accounting policies
a general information
anite plc is a company incorporated in the united kingdom under the companies act 2006 the consolidated financial statements of the 
company for the year ended 30 april 2010 comprise the company and its subsidiaries together referred to as the “group” the principal 
activities of the company and its subsidiaries are described in note 15 the financial statements were authorised for issue by the directors  
on 5 july 2010 the financial statements are presented in pounds sterling because that is the currency of the primary economic environment 
in which the group operates 
b basis of preparation
these consolidated financial statements have been prepared in accordance with international financial reporting standards ifrs as 
adopted by the european union and international financial reporting interpretations committee ifric interpretations and those parts  
of the companies act 2006 applicable to companies reporting under ifrs therefore the group financial statements comply with article 4 
of eu ias regulations
the financial statements have been prepared under the historical cost convention as modified by the revaluation of certain financial 
instruments
the directors acknowledge the latest guidance on going concern these consolidated financial statements have been prepared on a going 
concern basis as set out on page 24 in the report of the directors
i critical accounting assumptions and judgements
the preparation of financial statements in accordance with ifrs requires the use of certain critical accounting assumptions it also requires 
management to exercise its judgement in the process of applying the group’s accounting policies the areas requiring a higher degree of 
judgement or areas where assumptions and estimates are significant to the consolidated financial statements are discussed in the relevant 
accounting policies under the following headings
1 goodwill note 1e 
2 intangible assets note 1fii and iii 
3 revenue recognition note 1k 
4 taxation note 1l 
5 employee benefits – sharebased compensation note 1m and 
6 provisions note 1p
ii ifric interpretations and amendmentsnew ifrs
the ifric interpretations and amendments to published standards that are effective in 2010 and those that are not yet effective are 
discussed in section 1s below
the accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements
c basis of consolidation
the group financial statements consolidate the financial statements of the company and entities controlled by the company all of which 
are made up to 30 april each year the results of companies acquired or sold during the year are consolidated for the periods from or to  
the date on which control passed control is achieved where the company has the power directly or indirectly to govern the financial  
and operating policies of an investee entity so as to obtain benefits from its activities in assessing control potential voting rights that 
presently are exercisable or convertible are taken into account acquisitions are accounted for under the acquisition method the results  
of subsidiaries disposed in the year are included in the consolidated income statement up to the effective date of disposal
on acquisition the assets and liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of acquisition 
any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognised as goodwill any deficit in 
the cost of acquisition below the fair values of the identifiable net assets acquired ie discount on acquisition is credited to the income 
statement in the period of acquisition
where necessary adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those 
used by the group all intercompany transactions and balances between group enterprises are eliminated on consolidation
d foreign currency
transactions in currencies other than the functional currency of the entity are recorded at the rates of exchange at the dates of the 
transactions at each balance sheet date monetary assets and liabilities denominated in foreign currencies are retranslated at the rates of 
exchange prevailing at that date nonmonetary assets and liabilities carried at fair value that are denominated in foreign currencies are 
translated at the rates prevailing at the date when the fair value was determined
the exchange differences arising on retranslation are taken to the income statement except for exchange differences arising on non
monetary assets and liabilities where the changes in fair value are recognised directly in equity
 notes to the accounts  aniteannual report and accounts 2010     45
1 statement of accounting policies continued
d foreign currency continued
the results of overseas operations are translated at the average rates of exchange during the period and their balance sheets at the rates 
ruling at the balance sheet date exchange differences arising on translation of the opening net assets and results of overseas operations  
and on foreign currency borrowings to the extent that they hedge the group’s investment in such operations are recognised directly in  
the hedging and translation reserve account “other reserves”
any differences that have arisen since 1 may 2004 the date of transition to ifrs are included in the retained earnings account such 
translation differences are recognised as income or as expenses in the period in which the operation is disposed of
the group has elected to treat goodwill and fair value adjustments arising on acquisitions before the date of transition to ifrs as sterling
denominated assets and liabilities
e 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 associate or jointly controlled entity at the date of acquisition
goodwill is recognised as an asset and reviewed for impairment at least annually any impairment is recognised immediately in the income 
statement and is not subsequently reversed
on disposal or closure of a previously acquired business the attributable amount of goodwill previously written off to reserves is included  
in determining the profit or loss on disposal or closure
goodwill arising prior to the transition to ifrs has been recognised and measured in accordance with uk gaap but is no longer amortised
accounting assumptions and judgements
the determination of whether or not goodwill has been impaired requires an estimate to be made of the “value in use” of the cash
generating units cgu to which goodwill has been allocated the value in use calculation includes estimates about the future financial 
performance of the cashgenerating units including management’s estimates of longterm operating margins and longterm growth rates 
the carrying amount of goodwill and the key assumptions used in the calculation of value in use of cgus to which goodwill is attributed are 
disclosed in note 12
f intangible assets
i software licences
software licences are initially measured at cost cost includes the purchase price of the assets and the directly attributable costs of bringing 
the asset into its intended use after initial recognition the intangible asset is carried at cost less accumulated amortisation less any 
accumulated impairment losses amortisation is charged evenly over the assets’ estimated useful life
ii separately identifiable intangible assets arising on business combinations
separately identifiable intangible assets such as customer relations technology and in process rd are recognised only when the assets 
meet the following conditions
a meet the separately identifiable criteria below 
b are controlled by the acquiring company 
c provide a probable source of future economic benefits and 
d the fair value can be measured reliably
the criteria to be separately identifiable are met when the intangible asset
i is capable of being separated from the acquired business and 
ii  arises from contractual or legal rights regardless of whether those rights are transferable or separable from the acquired company or 
other rights and obligations
the amortisation period ranges from five to ten years and is based on equal annual instalments over the assets’ estimated useful life
accounting assumptions and judgements
the assessment of the future economic benefits generated by these separately identifiable intangible assets and the determination of their 
amortisation profiles involves a significant degree of judgement based on management estimation of future potential revenue and profit 
and the useful life of the assets reviews are performed regularly to ensure the recoverability of these intangible assets 46     aniteannual report and accounts 2010
 notes to the accounts  continued 
financial statements
1 statement of accounting policies continued
f intangible assets continued
iii research and development expenditure
expenditure on research activities as defined in ifrs is recognised in the income statement as an expense as incurred
expenditure on internallygenerated intangible assets arising from the group’s development activities is recognised only when both the 
identification and recognition criteria as defined in ias38 for an intangible asset and the following six criteria are met
1 the technical feasibility of completing the asset so that it will be available for use has been achieved 
2 the group has the intention to complete the asset and use or sell it 
3 the group has the ability to use or sell the asset 
4 it is probable that the asset created will generate future economic benefits 
5 adequate technical financial and other resources are available to complete the development and to use or sell the asset and 
6 the development cost of the asset can be measured reliably
if these conditions are not met such development expenditure is recognised as an expense in the period in which it is incurred
the qualifying expenditure capitalised represents costs directly attributable to the development of the asset this expenditure is capitalised 
from the point at which the above criteria are met up to the point at which the product is in use internallygenerated intangible assets 
including capitalised development costs are amortised on a straightline basis over their useful lives which management estimate to be no 
more than three years
accounting assumptions and judgements
the assessment that the internallygenerated assets will generate future economic benefits relies on the management’s estimation of future cash 
flow streams of these assets the technical feasibility of the assets involves a degree of management’s judgement as to when this is achieved
management’s assessment regarding the useful lives of capitalised development costs is based upon the typical product life cycle for similar 
assets in the market adjusted by the risks associated with each capitalised development project
g property plant and equipment and depreciation
land and buildings office equipment and fixtures and fittings computer equipment and vehicles are stated at cost net of accumulated 
depreciation and any recognised impairment loss
depreciation is provided on all tangible fixed assets and freehold properties at rates calculated to write off the cost over the estimated 
useful lives on a straightline basis as follows
freehold properties 2 per annum of cost excluding land 
short leasehold properties length of lease  
office equipment and fixtures and fittings 10 to 50 per annum of cost  
vehicles 25 per annum of cost 
computer equipment 33 per annum of cost
costs relating to short leasehold properties office equipment and fixtures and fittings and vehicles are included in the “plant fixtures 
equipment and motor vehicles” category see note 14
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
h 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 cashgenerating unit to which the asset belongs any tangible or intangible 
asset with an indefinite useful life is tested for impairment annually and whenever there is an indication that the asset may be impaired
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
if the recoverable amount of an asset or cashgenerating unit is estimated to be less than its carrying amount the carrying amount of the 
asset or cashgenerating unit is reduced to its recoverable amount an impairment loss is recognised as an expense immediately unless 
the relevant asset is carried at a revalued amount in which case the impairment loss is treated as a revaluation decrease aniteannual report and accounts 2010     47
1 statement of accounting policies continued
h impairment of tangible and intangible assets excluding goodwill continued
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 or cashgenerating unit in prior years a reversal of an impairment loss 
is recognised as income immediately unless the relevant asset is carried at a revalued amount in which case the reversal of the impairment 
loss is treated as a revaluation increase
i other investments
other investments are stated at cost less provision for any impairment
j inventories and work in progress
inventories and shortterm work in progress are stated at the lower of cost and net realisable value costs include materials and where 
relevant direct labour and appropriate overheads that have been incurred in bringing the inventories and work in progress to their present 
location and condition net realisable value represents the estimated selling price less all estimated costs of completion and costs to be 
incurred in marketing selling and distribution
k revenue recognition
revenue from the sale of software relates mainly to perpetual licences which provide the customer with the right to use the group’s 
products where any associated services are not essential to the functionality of the software then the software revenue is recognised when 
the following conditions are met
 persuasive evidence that an arrangement exists 
 the company’s fee is fixed or determinable and 
 collection is probable
revenue is recognised on delivery with a retention to be recognised on acceptance or otherwise as performance is defined in the relevant 
customer contract
revenue generated from fixed price contracts including relevant licence fees where service essential to the functionality of the software 
is being performed is recognised on a percentage of completion basis over the life of the contract provision is made for any expected 
losses on contracts yet to be completed amounts recoverable on fixed price contracts which are included in debtors are stated at the net 
sales value of the work done less amounts received as progress payments on account excess progress payments are included in creditors 
as payments on account cumulative costs incurred net of amounts transferred to cost of sales less provisions for contingencies and 
anticipated future losses on contracts are included as fixed price contract balances in work in progress
contracts which meet the definition of a construction contract are disclosed separately as “amount due from construction customers” 
in “trade and other receivables” or “amount due to construction customers” in “trade and other payables” as required under ias 11 
“construction contracts” see note 22 for more details
revenue generated from time and material contracts is recognised in line with when the work is performed
maintenance revenue is generally recognised on a straightline basis over the life of the related agreement taking into account any free 
maintenance periods
managed services revenue is recognised over the life of the contract costs incurred on a contract from third parties which are directly 
related to the contract are capitalised and recognised over the life of the contract contract profitability is regularly reviewed and if 
necessary provision for any forecast loss arising is made sales operational and administrative costs are written off as incurred
all finance income is recognised in the income statement in the period in which it arises
accounting assumptions and judgements
the revenue and profit of fixed price contracts is recognised on a percentage of completion basis when the outcome of a contract can be 
estimated reliably management exercises judgement in determining whether a contract’s outcome can be estimated reliably management 
also makes estimates of the total cost of professional services or in some instances total contract costs which are used in determining 
the value of amounts recoverable on contracts and any related provisions required for onerous contracts estimates are continually revised 
based on changes in the facts relating to each contract
the carrying value of amounts recoverable on contracts is disclosed in note 22
management has exercised a degree of judgement in formulating a set of criteria used for determining when revenue that involves several 
deliverable elements should be recognised on a bundled or unbundled basis 48     aniteannual report and accounts 2010
 notes to the accounts  continued 
financial statements
1 statement of accounting policies continued
l taxation
the tax expense represents the sum of tax currently payable and deferred tax
the tax currently payable is based on taxable profit for the year taxable profit differs from net profit as reported in the income statement 
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never 
taxable or deductible the liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the 
balance sheet date
deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the 
financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance  
sheet liability method deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are 
recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be 
utilised such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition other 
than in a business combination of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit
deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries associates and interests in 
joint ventures except where the group is able to control the reversal of the temporary difference and it is probable that the temporary 
difference will not reverse in the foreseeable future
the carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable 
that sufficient taxable profits will be available to allow all or part of the asset to be recovered
deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised 
deferred tax is charged or credited in the income statement except when it relates to items charged or credited directly to equity in which 
case the deferred tax is also dealt with in equity
accounting assumptions and judgements
in recognising income tax assets and liabilities management makes estimates of the likely outcome of decisions by tax authorities on 
transactions and events whose treatment for tax purposes is uncertain where the final outcome of such matters is different or expected 
to be different from previous assessments made by management a change to the carrying value of income tax assets and liabilities will be 
recorded in the period in which such a determination is made the carrying values of current tax and deferred tax assets and liabilities are 
disclosed separately in the consolidated balance sheet
m employee benefits
i retirement benefit costs
payments to defined contribution retirement benefit schemes are charged as an expense as they fall due payments made to statemanaged 
retirement benefit schemes are dealt with as payments to defined contribution schemes where the group’s obligations under the schemes 
are equivalent to those arising in a defined contribution retirement benefit scheme the group has no defined benefit schemes
ii sharebased compensation
the group has applied the requirements of ifrs 2 “sharebased payments” in accordance with the transitional provisions ifrs 2 has been 
applied to all grants of equity instruments after 7 november 2002 that were unvested as of 1 january 2005
the group operates several equitysettled sharebased payment plans for its employees the fair value of shares determined at the grant 
date of the equitysettled sharebased payment is recognised as an expense on a straightline basis over the vesting period
the group operates an inland revenue approved employee share option scheme “saye scheme” which allows employees the ability to 
purchase the group’s ordinary shares at a discount to the current market value the group records an expense based on its best estimate  
of the fair value of the discount related to shares expected to vest on a straightline basis over the vesting period 
the group has granted executive options which include approved option plans and longterm incentive plans the grant price is normally 
equal to the average quoted market price of the group shares on the date of grant the vesting period is generally three to ten years if the 
options remain unexercised after a period of ten years from the date of grant the options expire furthermore options are forfeited if the 
employee leaves the group before the options vest unless the employee meets certain “good leaver” conditions
accounting assumptions and judgements
the fair value of the saye scheme and executive option scheme is measured by using the blackscholes and a stochastic model namely the 
montecarlo pricing model respectively the total amount of this fair value to be expensed rateably over the vesting period is determined 
by reference to the fair value of the options at the grant date excluding the impact of any nonmarket vesting conditions such as profit 
targets nonmarket vesting conditions are included in assumptions about the number of options that are expected to become exercisable 
or the number of shares that the employee will ultimately receive this estimate is revised at each balance sheet date and the difference is 
charged or credited to the income statement with a corresponding adjustment to equity aniteannual report and accounts 2010     49
1 statement of accounting policies continued
m employee benefits continued
accounting assumptions and judgements continued
market vesting conditions such as tsr targets are factored into the fair value of the option and therefore no subsequent adjustments will  
be made if performance conditions are not met
the proceeds received on exercise of the options net of any directly attributable transaction costs are credited to equity
for more details on the assumptions made in the valuation see note 9
n financial instruments
financial assets and financial liabilities are recognised on the group’s balance sheet when the group becomes a party to the contractual 
provisions of the instrument
i trade and other debtors
trade and other debtors do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for estimated 
irrecoverable amounts
ii investments
investments are recognised and derecognised on a tradedate where a purchase or sale of an investment is under a contract whose terms 
require delivery of the investment within the timeframe established by the market concerned and are initially measured at cost including 
transaction costs
investments are classified as either heldfortrading or availableforsale and are measured at subsequent reporting dates at fair value
where securities are held for trading purposes gains and losses arising from changes in fair value are included in net profit or loss for the period
for availableforsale investments gains and losses arising from changes in fair value are recognised directly in equity until the security is 
disposed of or is determined to be impaired at which time the cumulative gain or loss previously recognised in equity is included in the net 
profit or loss for the period
iii 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
iv 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 accruals basis to the income statement using 
the effective interest method and are added to the carrying amount of the instrument to the extent that they are not settled in the period  
in which they arise
v trade payables
trade payables are not interestbearing and are stated at their nominal value
vi equity instruments
equity instruments issued by the company are recorded at the proceeds received net of direct issue costs
o derivative financial instruments and hedge accounting
the group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates the group 
does not enter into speculative derivative contracts and all such instruments if used by the group are for hedging purposes to alter the risk 
profile of an existing underlying exposure to the group in line with the group’s risk management policies
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
cash flow hedge
changes in the fair value of derivative financial instruments that are designated and effective as hedges of future cash flows are recognised 
directly in equity and the ineffective portion is recognised immediately in the income statement if the cash flow hedge of a firm 
commitment or forecast 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 equity 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 equity are recognised in the 
income statement in the same period in which the hedged item affects net profit or loss 50     aniteannual report and accounts 2010
 notes to the accounts  continued 
financial statements
1 statement of accounting policies continued
o derivative financial instruments and hedge accounting continued
fair value hedge
for an effective hedge of an exposure to changes in the fair value the hedged item is adjusted for changes in fair value attributable to the 
risk being hedged with the corresponding entry in profit or loss gains or losses from remeasuring the derivative or for nonderivatives the 
foreign currency component of its carrying amount are recognised in profit or loss
changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are recognised in the income statement 
as they arise
discontinued hedge accounting
hedge accounting is discontinued when the hedging instrument expires or is sold terminated exercised or no longer qualifies for hedge 
accounting at that time any cumulative gain or loss on the hedging instrument recognised in equity is retained in equity until the forecast 
transaction occurs if a hedged transaction is no longer expected to occur the net cumulative gain or loss recognised in equity is transferred 
to net profit or loss for the period
hedges of net investments in foreign operations
hedges of net investments in foreign operations are accounted for in a similar way to cash flow hedges any gain or loss on the hedging 
instrument relating to the effective portion of the hedge is recognised in the hedging and translation reserve account “other reserves”  
the gain or loss relating to the ineffective portion is recognised immediately in profit or loss under the heading of “other gains and losses”
gains or losses deferred in the foreign currency translation reserve are recognised immediately in profit or loss on disposal of the foreign operation
embedded derivatives
derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when their risks and 
characteristics are not closely related to those of host contracts and the host contracts are not carried at fair value with unrealised gains  
or losses reported in the income statement
p provisions
provisions for warranties onerous contracts vacant properties with outstanding leases to settle restructuring costs and legal claims are recognised 
when the group has a present legal or constructive obligation as a result of past events this is where in management’s view it is more likely than 
not that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated restructuring provisions 
comprise unexpired future lease payments employee termination payments and removal costs provisions for restructuring costs are 
recognised when the group has a detailed formal plan for the restructuring that has been communicated to affected parties
deferred consideration provision is management’s best estimate of the contingent consideration payable to vendors which may be subject 
to change as this is dependent on the fulfilment of certain performance targets of the businesses acquired
property provisions are established on a propertybyproperty basis to meet the estimated liabilities including dilapidations the provision 
covers all ongoing unavoidable costs net of rental income provisions are not recognised for future operating losses
accounting assumptions and judgements
the group is subject to claims that arise in the ordinary course of business each claim is evaluated by management together with their 
legal advisers and a decision made on whether financial settlement is probable in which case appropriate provisions are made
q operating profit from continuing operations
operating profit from continuing operations is stated after charging restructuring costs but before finance income or charges and before 
other gains or losses
r 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 unless they are directly attributable to 
qualifying assets in which case they are capitalised in accordance with the group’s general policy on borrowing costs see above
rentals payable under operating leases are charged to income on a straightline basis over the term of the relevant lease
benefits received and receivable as an incentive to enter into an operating lease are also spread on a straightline basis over the lease term
rental income from operating leases is recognised on a straightline basis over the term of the relevant lease aniteannual report and accounts 2010     51
1 statement of accounting policies continued
s adoption of ifric interpretations new and amendments to ifrs
i applicable for the group’s accounting periods beginning on or after 1 may 2009
the ifric interpretations amendments to existing standards and new standards that are mandatory and relevant for the group’s accounting 
periods beginning on or after 1 may 2009 have been adopted adoption of these standards has not had any effect on the financial 
performance or position of the group as the changes relate to additional disclosure points only the changes include the adoption of
  ifrs 8 “operating segments” whereby the operating segments are identified on the basis of internal reports about components of 
the group that are regularly reviewed by the board of directors in order to allocate resources to the segments and to assess their 
performance and
  ias 1 revised “presentation of financial statements” whereby a statement of comprehensive income is presented as a primary 
statement separate from the income statement and the statement of changes in equity
in both instances the disclosures of prior period amounts have been restated
at the date of approval of these financial statements the following standards interpretations and amendments thereto were issued that are 
mandatory for the group’s accounting periods beginning on or after 1 may 2009 management assessed the relevance of these amendments 
and interpretations and concluded that they are neither relevant nor material to the group or resulted in additional disclosures
amendments to existing standards
  annual improvements to ifrss revised may 2008 – amendments that result in accounting changes for presentation recognition or 
measurement purposes
  ifrs 2 sharebased payment – vesting conditions and cancellations
  ifrs 7 financial instruments disclosures – enhancing disclosures about fair value and liquidity risk
  ias 23 borrowing costs – comprehensive revision to prohibit immediate expensing
  ias 27 consolidated and separate financial statements – cost of an investment on firsttime adoption
  ias 32 financial instruments presentation – puttable instruments and obligations arising on liquidation
  ias 39 financial instruments recognition presentation – embedded derivatives when reclassifying financial instruments
ii applicable for the group’s accounting periods beginning on or after 1 may 2010
at the date of approval of these financial statements the following standards interpretations and amendments thereto were issued that 
are mandatory for the group’s accounting periods beginning on or after 1 may 2010 the group has not adopted early any of these new 
pronouncements that may be relevant to the group
international financial reporting interpretations committee ifric interpretations
  ifric 17 distributions of noncash assets to owners
  ifric 18 transfers of assets from customers
  ifric 19 extinguishing financial liabilities with equity instruments
amendments to existing standards
  improvements to ifrss – amendments that result in accounting changes for presentation recognition or measurement purposes that 
have been issued with effective dates such that adoption will be mandatory for the accounting period commencing 1 may 2010
2 revenue and segmental information
21 revenue from continuing and discontinued operations
   2010 2009
  note £000 £000
own product software licences   30716 31037
bespoke services systems integration and implementation of software products   8154 8983
managed services   5284 10089
software maintenance and support   21158 21405
sale of thirdparty products and services   13458 16284
other – contract settlement   – 2300
revenue from continuing operations  22 78770 90098
finance income  6 222 1199
total revenue from continuing operations   78992 91297
discontinued operations
revenue  22 – 28810
finance income  6 – 100
total revenue   78992 120207
  52     aniteannual report and accounts 2010
 notes to the accounts  continued 
financial statements
2 revenue and segmental information continued
22 operating segments – primary basis
the group is organised into four operating segments handset testing network testing travel and group with the exception of group 
which performs the head office function each operating segment derives its revenue from the development installation and support of 
software products relating to its relevant industry sector 
operating segment information under the primary reporting format is as disclosed in the tables below
 handset network total
 testing testing wireless travel group total
year ended 30 april 2010 £000 £000 £000 £000 £000 £000
external revenue 35753 20026 55779 22991 – 78770
internal revenue – – – – 1387 1387
total revenue 35753 20026 55779 22991 1387 80157
segment adjusted
1
 profitloss before tax 3460 4569 8029 5575 3704 9900
net finance charges before recycled hedge loss – – – – 1966 1966
segment adjusted
1
 operating profitloss 3460 4569 8029 5575 1738 11866
sharebased payments 1019 219 1238 331 877 2446
amortisation of acquired intangible assets 625 3606 4231 – – 4231
impairment of goodwill and acquired intangible assets 6172 – 6172 – – 6172
restructuring costs 860 – 860 – – 860
segment operating lossprofit 5216 744 4472 5244 2615 1843
other gains and losses – – – – 473 473
finance income – – – – 222 222
finance charges – – – – 2843 2843
lossprofit from continuing operations before tax 5216 744 4472 5244 4763 3991
tax expense – – – – 436 436
lossprofit from continuing operations 5216 744 4472 5244 5199 4427
profit from discontinued operations – – – – 1000 1000
lossprofit for the period 5216 744 4472 5244 4199 3427
 handset network total
 testing testing wireless travel group total
year ended 30 april 2009 £000 £000 £000 £000 £000 £000
external revenue 37745 21243 58988 31110 – 90098
internal revenue – – – – 2221 2221
total revenue 37745 21243 58988 31110 2221 92319
segment adjusted
1
 profitloss before tax 7130 6862 13992 9542 5380 18154
net finance charges before recycled hedge loss – – – – 1891 1891
segment adjusted
1
 operating profitloss 7130 6862 13992 9542 3489 20045
sharebased payments 103 131 234 329 1311 1874
amortisation of acquired intangible assets 606 3434 4040 – – 4040
restructuring costs 139 – 139 – 4909 4770
segment operating profitloss 6560 3297 9857 9213 9709 9361
other gains and losses – – – – 1057 1057
finance income – – – – 1199 1199
finance charges – – – – 3090 3090
profitloss from continuing operations before tax 6560 3297 9857 9213 12657 6413
tax expense – – – – 1454 1454
profitloss from continuing operations 6560 3297 9857 9213 14111 4959
profit from discontinued operations – – – – 31384 31384
profit for the period 6560 3297 9857 9213 17273 36343
1 segment adjusted operating profits are stated prior to the adjusting items of sharebased payments amortisation of acquired intangible assets impairment of goodwill and 
acquired intangible assets and restructuring costs
following adoption of ifrs 8 “operating segments” comparatives have been restated to reflect the basis of internal reporting by splitting 
out the results of the wireless segment into the handset testing and network testing operating segments no other information within the 
consolidated financial statements has been restated as a result of this change and the comparative primary statements have not been restated aniteannual report and accounts 2010     53
2 revenue and segmental information continued
23 other information
 handset network total
 testing testing wireless travel group total
year ended 30 april 2010 £000 £000 £000 £000 £000 £000
total assets 36517 60173 96690 10478 56666 163834
including
capital additions in the year 3300 374 3674 326 58 4058
ebitda calculation
segment adjusted operating profitloss 3460 4569 8029 5575 1738 11866
depreciation 1776 147 1923 777 470 3170
amortisation of intangible assets 2047 213 2260  328 35 2623
ebitda 7283 4929 12212 6680 1233 17659
 handset network total
 testing testing wireless travel group total
year ended 30 april 2009 £000 £000 £000 £000 £000 £000
total assets 35339 62640 97979 11518 68314 177811
including
capital additions in the year 1793 146 1939  2630 991 5560
ebitda calculation
segment adjusted operating profitloss 7130 6862 13992 9542 3489 20045
depreciation 2083 121 2204  516 469 3189 
amortisation of intangible assets 1944 271 2215   294  46 2555
ebitda 11157 7254 18411 10352 2974 25789
24 geographical segment – secondary basis
the operating segments operate in four principal geographical areas as set out below
the following analysis of the group’s revenue is based on the geographical location of customers irrespective of the origin of the goods or 
services the corresponding segment assets are based on the geographical location of the assets
 revenue revenue revenue
 continuing operations discontinued operations total
 2010 2009 2010 2009 2010 2009
 £000 £000 £000 £000 £000 £000
europe – united kingdom 15362 25034 – 28293 15362 53327
europe – other 27363 22729 – 323 27363 23052
north america 19035 19984 – 70 19035 20054
rest of the world 17010 22351 – 124 17010 22475
 78770 90098 – 28810 78770 118908
   noncurrent
   assets
     2010 2009
     £000 £000
europe – united kingdom     12194 13268
europe – other     68572 74617
north america     8031 15439
rest of the world     141 268
     88938 103592
  54     aniteannual report and accounts 2010
 notes to the accounts  continued 
financial statements
2 revenue and segmental information continued
25 operating expenses
   2010 2009
   £000 £000
distribution costs
– amortisation of acquired intangible assets   2345 2234
– other   8363 8521
   10708 10755
research and development
– amortisation of internally generated assets   1940 1855
– other   11252 8952
   13192 10807
– amortisation of acquired intangible assets   1886 1806
– restructuring costs   588 139
   15666 12474
administrative expenses
– sharebased payments   2446 1874
– impairment of goodwill   5092 –
– impairment of acquired intangible assets   1080 –
– restructuring costs   272 4909
– other   15639 15890
   24529 22673
total operating expenses   50903 45902
analysed as
– amortisation of acquired intangible assets note 13   4231 4040
– amortisation of internally generated assets note 13   1940 1855
– impairment of goodwill note 12   5092 –
– impairment of acquired intangible assets note 13   1080 –
– restructuring costs note 3   860 4770
– sharebased payments note 9   2446 1874
– other   35254 33363
   50903 45902
3 restructuring costs
the restructuring costs incurred in the current period relate to the closure of the wimax line of business within the wireless division  
these costs include the impact of asset writedowns of the development costs and equipment and other costs of restructuring and redundancy 
the related costs of impairing the goodwill and acquired intangible assets are disclosed separately within administrative expenses note 25
the restructuring costs incurred in the prior period relate to the disposal of anite public sector and the release of a previously held provision 
relating to the exit from the ownplatform development the property provision was made following the disposal of anite public sector due 
to the head office property at 353 buckingham avenue slough being underutilised due to the relocation of anite public sector staff and the 
uncertainty over the group’s ability to sublet the top floor which remains vacant at 30 april 2010 
   2010 2009
   £000 £000
impairment of capitalised development costs   403 –
impairment of property plant and equipment   110 –
redundancy costs   75 –
other exit costs   272 –
net property provision established   – 4909
cost of exiting ownplatform development   – 139
   860 4770 aniteannual report and accounts 2010     55
4 other gains and losses
   2010 2009
   £000 £000
hedge ineffectiveness on cash flow hedges   187 –
hedge ineffectiveness on net investment hedge   651 1057
change in the fair value of derivative assets and liabilities outstanding at year end   342 –
costs arising on liquidation of previously disposed businesses   23 –
   473 1057
the gains 2009 losses arising due to hedge ineffectiveness are derived from the differences in the movement in the fair values of both the interest 
rate and cross currency swaps and the hypothetical derivative that represented the market value of the swap on the date of designation
the costs arising on liquidation of previously disposed businesses relate to the final closure and liquidation costs of anite holding sarl
5 discontinued operations
a discontinued operations
there were no discontinued operations in the year to 30 april 2010 the comparatives to 30 april 2009 include the disposal of the anite 
public sector division following the sale of the group’s 100 interest in the ordinary share capital of anite public sector holdings ltd and its 
subsidiaries on 31 october 2008
the profit after tax on sale of discontinued operations relates to the release of tax provisions made in prior years
   2010 2009
   £000 £000
profit after tax for the year from discontinued operations
revenue   – 28810
cost of sales   – 16323
gross profit   – 12487
operating expenses   – 12033
operating profit before interest   – 454
finance income   – 100
profit before tax   – 554
tax creditcharge   1000 488
profit after tax   1000 66
profit on sale of discontinued operations
net movement in provision in relation to previously discontinued operations   – 574
profit on disposal of anite public sector note 5b   – 27608
net profit before tax on sale of discontinued operations   – 28182
tax credit relating to activities discontinued in prior years   – 3136
profit after tax on sale of discontinued operations   – 31318
total profit after tax from discontinued operations   1000 31384
b sale of discontinued operations
the net assets disposed and consideration received in respect of the disposal of anite public sector are set out below
   2010 2009
   £000 £000
net assets   – 25890
recycled foreign exchange   – 363
profit on disposal   – 27608
net consideration   – 53135
net cash received   – 45520
for a more detailed breakdown of the net assets and consideration in respect of the disposal of anite public sector please refer to note 4  
of the 2009 annual report and accounts 56     aniteannual report and accounts 2010
 notes to the accounts  continued 
financial statements
6 net finance charge
   2010 2009
   £000 £000
finance income
interest receivable and similar income   25 92
interest on shortterm deposits   197 1107
total finance income   222 1199
finance charges
bank loans and overdrafts
1
   325 2023
other loanscommitment fees   118 101
losses on financial instruments in a hedging relationship
– interest rate swaps and caps – cash flow hedges   928 121
– cross currency swaps – net investment hedge   617 638
unwinding of discount on provisions
2
   200 207
   2188 3090
recycling of fair value loss on cash flow hedges   655 –
total finance charges   2843 3090
adjusted net finance charge before recycled hedge loss   1966 1891
recycling of fair value loss on cash flow hedges
3
   655 –
 
net finance charge – continuing operations   2621 1891
finance income – discontinued operations   – 100
net finance charge   2621 1791
1 finance charges on bank loans and overdrafts include amortisation of issue costs of £52000 2009 £91000 
2 the unwinding of discount on provisions note 26 relates to property and deferred consideration provisions 
3  the recycling of fair value loss on cash flow hedges arises due to the repayments of the term loan reducing the interest payments causing some of the interest cash flows to be 
classed as no longer probable in accordance with ias 39 an equivalent proportion of the fair value losses under the interest rate swap arrangement previously taken to equity 
are released to profit or loss
7 lossprofit for the year
lossprofit for the year is stated after chargingcrediting
   2010 2009
   £000 £000
depreciation of property plant and equipment   3170 3535
impairment of goodwill   5092 –
impairment of acquired intangible assets   1080 –
amortisation of intangible software licences   683 790
amortisation of acquired intangibles assets   4231 4040
amortisation of internally generated assets   1940 2815
loss on disposal of property plant and equipment   31 –
restructuring costs   860 4770
research and development costs excluding amortisation of acquired intangible assets and restructuring costs 11252 10961
cost of inventories recognised as expense   5770 6117
staff costs note 8   32426 52615
foreign exchange lossesgains   766 2061
net charge arising from movements in the property provision   59 483 aniteannual report and accounts 2010     57
7 lossprofit for the year continued
during the year the group obtained the following services from the group’s auditors
   2010 2009
   £000 £000
fees payable to the company’s auditors for the audit of
– the company’s annual accounts   97 139
– the company’s subsidiaries pursuant to legislation   115 121
total audit fees   212 260
fees payable to the company’s auditors for
– other services pursuant to legislation   49 68
– transaction support
1
   – 323
– tax support   20 25
total nonaudit fees   69 416
1 this is in connection with acquisition and disposal activities carried out during the year
total fees payable to other auditors in relation to the statutory audits of subsidiary companies amount to £20000 2009 £21000 nonaudit fees payable to other auditors in 
relation to tax and other services were £26000 2009 £24000
8 staff costs
the average number of persons employed including executive directors was as follows
 2010 2010 2010 2009 2009 2009
 continuing discontinued total continuing discontinued total
 number number number number number number
europe – united kingdom 334 – 334 379 301 680
europe – other 54 – 54 53 – 53
north america 28 – 28 26 – 26
rest of the world 48 – 48 48 – 48
 464 – 464 506 301 807
the amount charged in arriving at the operating profit for both the continuing and discontinued operations for the year in respect of all 
employees was as follows
 2010 2010 2010 2009 2009 2009
 continuing discontinued total continuing discontinued total
 £000 £000 £000 £000 £000 £000
wages and salaries 25525 – 25525 28472 14371 42843
social security costs  2508 – 2508 2543 1449 3992
sharebased payments 2446 – 2446 1874 909 2783
pension costs 1947 – 1947 2016 981 2997
 32426 – 32426 34905 17710 52615
pension arrangements
the group has several defined contribution group personal pension plans the contributions payable by the group in respect of the year 
to these schemes are charged to the profit and loss account on an accruals basis the pension costs for both years are related to defined 
contribution schemes only the group does not operate any defined benefit pension schemes
key management remuneration
key management personnel as disclosed under ias 24 “related party disclosures” have been identified as the board of directors
details of the board of directors’ remuneration for those who served during the year are as follows
   2010 2009
   £000 £000
shortterm employee benefits   735 1181
sharebased payments   454 650
   1188 1831 58     aniteannual report and accounts 2010
 notes to the accounts  continued 
financial statements
9 sharebased payments
equitysettled share option plan
the group operates several share option plans including saye and other sharebased schemes the terms of which are summarised below
 contractual life vesting conditions share price at grant date
saye granted over either three or five years  savings over the period three  closing mid market quotation 
 with six months to exercise following  or five years until maturity  on date of grant less 20 
 maturity after which the options expire date no performance discount 
  conditions 
approved share option ordinarily exercisable between three options vest as soon as one closing mid market quotation 
plan “asop” and  and ten years from the date of grant   year profit performance target on day preceding date of grant 
long term incentive following which the options expire  is met or average of three days 
plan “ltip” the option holders must be in continued  preceding date of grant 
 employment during this period if the 
 options remain unexercised after a 
 period of ten years from the date of  
 grant the options expire
performance share plan both plans – conditional award vests on both plans – conditional award both plans – conditional awards 
“psp”share matching third anniversary subject to performance vests on third anniversary subject of “free shares” – effectively nil 
plan “smp” conditions being met in part or in full to performance conditions being cost options closing mid market 
  met in part or in full award quotation on the day preceding  
  holders under the smp must be  date of grant or average of three  
  still employed or good leavers  days preceding the date of grant  
  these award holders must acquire is used for calculation and tax  
  “invested shares” which the  purposes only 
  company matches on a two for  
  one grossed up basis
share incentive plan leavers can keep matching shares held employees keep shares they have shares are market purchased 
“sip” for three years or more full tax relief purchased “partnership shares” on a monthly basis 
 available after five years shares matched by the company 
  “matching shares” on a one for  
  one basis may be retained by good 
  leavers bad leavers may retain 
  matched shares only if held for  
  three years or more matched  
  shares vest in full for employees  
  after five years no performance  
  conditions 
management incentive  a conditional award using market annual vesting takes place for closing mid market quotation 
plan “mip” purchase shares is made over a  meeting loyalty and performance on day preceding date of grant 
 performance period agreed prior  conditions based on achieving 
 to the time of grant subject to  predetermined divisional financial 
 performance conditions being met  performance measures  
 in part or in full
in accordance with the accounting policy at note 1mii ifrs has been applied to all grants of equity instruments after 7 november 2002 
that were unvested as of 1 january 2005 aniteannual report and accounts 2010     59
9 sharebased payments continued
details of relevant share options outstanding during the year are as follows
 2010 2010 2009 2009
 saye other sharebased saye other sharebased 
  weighted  weighted  weighted  weighted
 number of average number of average number of average number of average
 share options exercise price share options exercise price share options exercise price share options exercise price
outstanding at 1 may 33766 46p 18434528 12p 354440 34p 22061119 14p
granted during the year 2837946 23p 4575107 – – – 4930224 –
exercised during the year 6666 23p 690365 3p 194239 – 1483105 5p
lapsed during the year 155523 25p 6882418 17p 126435 36p 7073710 10p
outstanding at 30 april 2709523 23p 15436852 6p 33766 46p 18434528 12p
exercisable at 30 april 22102  4640984  33766  11152665 
weighted average fair value   
of optionsshares granted  
in the year 10p  26p  –  26p 
weighted average remaining 
contractual life years 34  67  03  69 
exercise price 225p460p  00p595p  46p  00p870p 
 saye other sharebased
    weighted   weighted 
   outstanding average  outstanding average 
   options at remaining weighted options at remaining weighted
   30 april contractual average 30 april contractual average
   2010 life exercise price 2010 life exercise price
exercise price range
0p   – – – 13140874 73 –
1p40p   2709523 34 225p 1485397 31 34p
41p806p   – – – 810581 40 52p
   2709523 34 225p 15436852 67 6p
the fair values for the above options were calculated using the blackscholes and stochastic option pricing models the inputs into these 
models were as follows
 2010 2009
 saye other sharebased saye other sharebased
grant date  31 july 2009 17 jan 2003 1 april 2003 17 jan 2003
  10 dec 2009 1 april 2004 2 feb 2009
model used blackscholes stochastic blackscholes stochastic
weighted average share price at grant 29 45 57 51
expected volatility 422485 00590 557587 2702590
expected life 35 years † 35 years †
risk free rate 2431 0055 3647 1955
expected dividend yield 36 035 0 0319
†  expected life for other sharebased payments is 100 of the options that are exercised after three years if a gain of 10 is available if this gain is not available options are held 
until such a gain can be achieved any remaining options are exercised at maturity providing that they are “in the money” for ltip profit element only – 5 pa leavers in the 
first three years was assumed under the psp smp and mip awards the expected life is equal to the vesting period of three years however for mip depending on performance 
annual vesting is possible
expected volatility was determined by calculating the historical volatility of the company’s share price over the following periods expected 
life up to grant date other sharebased schemes – three years and saye three and five years for three and fiveyear contracts respectively
the period of exceptional volatility for the period from 30 september 1999 to 24 july 2002 was removed from the volatility calculations
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 60     aniteannual report and accounts 2010
 notes to the accounts  continued 
financial statements
9 sharebased payments continued
the employers’ nic liability on the outstanding awards at 30 april 2010 was £304000 2009 £314000 which is fully provided for in the accounts
the group recognised the following total expenses in relation to equitysettled sharebased payment transactions during the year 
   2010 2009
   £000 £000
continuing operations   2446 1874
discontinued operations   – 909
   2446 2783
10 income tax expense
 continuing operations discontinued operations total
 2010 2009 2010 2009 2010 2009
  £000 £000 £000 £000 £000 £000
current tax
uk corporation tax 614 1110 – 488 614 1598
foreign tax 2015 3151 – – 2015 3151
 2629 4261 – 488 2629 4749
adjustments in respect of prior years
uk corporation tax – – 1000 3136 1000 3136
foreign tax 42 70 – – 42 70
 42 70 1000 3136 1042 3066
total current tax expensecredit 2587 4331 1000 2648 1587 1683
deferred tax
uk 565 1754 – – 565 1754
foreign 1586 1123 – – 1586 1123
total deferred tax credit note 25 2151 2877 – – 2151 2877
total income tax expensecredit 436 1454 1000 2648 564 1194
the tax charge on the profit on sale of discontinued operations was £nil 2009 £nil
corporation tax is calculated at 28 2009 28 of the estimated assessable profit for the year taxation for other jurisdictions is 
calculated at the rates prevailing in the respective jurisdictions
   2010 2009
   £000 £000
chargedcredited to equity
deferred tax relating to sharebased payments   110 20
deferred tax relating to amortisation of acquired intangibles   206 948
uk corporation tax relating to discontinued activities   450 –
uk corporation tax relating to foreign exchange   – 1597
   134 669 aniteannual report and accounts 2010     61
10 income tax expense continued
factors affecting tax charge for the year
the tax assessed on the profit on ordinary activities for the year is different to the standard rate of corporation tax in the uk the differences 
are explained below
   2010 2009
   £000 £000
lossprofit before tax
continuing operations   3991 6413
tax on group profit at standard uk corporation tax rate of 28 2009 28   1117 1796
effects of
impairments and saleclosure of discontinued operations   1160 32
disallowed expenses and nontaxable income net   87 107
ineligible depreciation   24 3
prior year adjustment in relation to deferred tax   347 968
shortterm timing differences   112 616
tax losses carried forward   77 162
utilisation of tax losses   54 195
lower tax rates on overseas earnings   233 120
deferred tax not provided   391 –
adjustments to current tax charge in respect of previous periods   42 70
other   – 15
income tax expense for year   436 1454
tax rate for continuing operations   109 227
the group earns its profits in the uk and overseas the tax rate used for tax on profit on ordinary activities is 28 being the standard rate 
for uk corporation tax as the group’s head office is in the uk
some components of the group’s overseas profits are likely to be taxed at an effective rate that is higher than the uk rate other components 
due to the availability of losses brought forward in certain countries are likely to be taxed at a lower rate 62     aniteannual report and accounts 2010
 notes to the accounts  continued 
financial statements
11 earnings per share
the calculations of earnings per share are based on the group profit for the year adjusted profit
1
 and weighted average number of shares  
in issue
 basic diluted
 2010 2009 2010 2009
eps summary
basic eps 12p 113p 12p 108p
basic eps for continuing operations 15p 15p 15p 15p
adjusted eps
2
 24p 44p 23p 42p
 2010 2009
 pence pence 2010 2009
 per share per share £000 £000
lossprofit for the year 12 113 3427 36343
profit from discontinued operations 03 98 1000 31384
lossprofit for the year on continuing operations 15 15 4427 4959
reconciliation to adjusted profit
other gains and losses net of tax 01 02 341 761
recycled hedge losses
3
 net of tax 02 – 472 –
amortisation of acquired intangible assets net of tax 10 09 2947 2917
sharebased payments net of tax 06 07 1822 2097
impairment of goodwill and acquired intangible assets net of tax 20 – 5870 –
restructuring costs net of tax 02 11 619 3434
adjusted profit
1
 24 44 6962 14168
1  profit from continuing businesses before other gains and losses recycled hedge losses amortisation of acquired intangible assets sharebased payments impairments and 
restructuring costs
2 earnings per share on adjusted profit
1
 have been included to give a clearer understanding of the results of the continuing businesses
3 recycled hedge losses relate to the recycling of fair value losses on cash flow hedges reclassified from equity to profit or loss in the year
diluted eps for discontinued operations is 03p 2009 94p
number of shares ’000   2010 2009
weighted average number of shares in issue – used to calculate basic earnings per share   292166 321714
effect of dilutive ordinary shares
– saye and share option schemes   14100 13507
number of shares used to calculate diluted earnings per share    306266 335221 aniteannual report and accounts 2010     63
12 goodwill
    total
    £000
cost
at 1 may 2008     87919 
addition to deferred consideration    140
eliminated on disposal of subsidiaries    31471
exchange movement    7827
at 30 april 2009    64415
exchange movement    1977
at 30 april 2010    62438
accumulated impairment losses
at 1 may 2008    9261
disposal of subsidiaries    9261
at 30 april 2009    – 
impairment charge    5092
exchange movement    23
at 30 april 2010    5115
net book value at 30 april 2010    57323
net book value at 30 april 2009    64415
goodwill is subject to annual impairment testing or more frequently if there are indications that goodwill might be impaired during the 
year the closure of the wimax line of business within the wireless division indicated that there were grounds for a permanent impairment  
in the value of goodwill held and as a result an amount of £5092000 was charged to impairment
impairment tests
the cash generating unit cgu is typically the combination of a group of assets acquired which cannot be separately identified within each primary 
segment of the group the carrying amounts basis of determination and key assumptions for the goodwill impairment calculations are as follows
  wireless nemo wireless other travel other
carrying amount of goodwill £000 51123 –  6200
basis on which the cgu’s recoverable amount has been determined  value in use value in use value in use
key assumptions
discount rate  106 106 100
includes a risk factor of  06 06 – 
longterm growth rate  00 00 00
period over which cash flows are projected years 5 5 5
the discount rate is based on the weighted average cost of capital wacc for the group as adjusted for risk the wacc is derived by taking 
the average of the results from calculations using the capital asset pricing model capm and dividend growth model using data from 
leading market data providers
the risk adjustments relate to management’s view of the sensitivity to technology risk within the wireless segment and are based on past experience
the longterm growth rate has been set at zero for each cgu management is sensitive to the technology risk within the software industry 
and does not deem it appropriate to forecast growth for products more than five years into the future
the period over which the cash flows are projected is set at five years the cash flow projections are based on the budgets strategic plans knowledge 
of the market performance of the sector and management’s view of the recoverable amount based on observable market prices for the cgu
sensitivity to changes in key assumptions
wireless nemo – management has based its determination of the unit’s recoverable amount on the key assumptions listed above  
at 30 april 2010 the recoverable amount of wireless nemo exceeded its carrying amount by £26m a 1 perpetual reduction in the 
operating margin would reduce its recoverable amount by £08m 64     aniteannual report and accounts 2010
 notes to the accounts  continued 
financial statements
13 other intangible assets
     separately   
     identified   
  customer   acquired capitalised  
  lists and   intangible development software 
  relationships technology rd assets costs licences total
  £000 £000 £000 £000 £000 £000 £000
cost
at 1 may 2008  20685 6447 1639 28771 16200 3369 48340
additions   – – – – 1142 544 1686
disposals  – – – – – 4 4
disposal of subsidiaries  – – – – 5289 687 5976
exchange movement  2932 1195 413 4540 3 65 4608
at 30 april 2009  23617 7642 2052 33311 12056 3287 48654
additions   – – – – 1319 387 1706
exchange movement  798 262 72 1132 – 18 1150
at 30 april 2010  22819 7380 1980 32179 13375 3656 49210
amortisation
at 1 may 2008  3060 1694 424 5178 10454 1953 17585
amortisation  2234 1423 383 4040 2815 790 7645
disposal  – – – – – 3 3
disposal of subsidiaries  – – – – 3814 487 4301
exchange movement  573 438 145 1156 – 19 1175
at 30 april 2009  5867 3555 952 10374 9455 2272 22101
amortisation  2345 1488 398 4231 1940 683 6854
impairment losses note 25  81 617 382 1080 403 – 1483
exchange movement  235 125 24 384 – 15 399
at 30 april 2010  8058 5535 1708 15301 11798 2940 30039
net book value at 30 april 2010  14761 1845 272 16878 1577 716 19171
net book value at 30 april 2009  17750 4087 1100 22937 2601 1015 26553 aniteannual report and accounts 2010     65
14 property plant and equipment
 freehold  plant fixtures 
 land and  equipment and  
 buildings computers motor vehicles total
   £000 £000 £000 £000
cost
at 1 may 2008  5266   17686   3849  26801 
additions 15 1681 2157 3853
disposal of subsidiaries – 2273 1867 4140
disposals – 92 66 158
exchange movement – 184 126 310
at 30 april 2009 5281 17186 4199 26666
additions – 1998 353 2351
disposals – 480 543 1023
exchange movement 2 53 4 51
at 30 april 2010 5283 18757 4005 28045
accumulated depreciation and impairment
at 1 may 2008  254   14028   866   15148 
charge for the year 78 2467 990 3535
disposal of subsidiaries – 1752 1256 3008
disposals – 58 66 124
exchange movement – 156 66 222
at 30 april 2009 332 14841 600 15773
charge for the year 75 2013 1082 3170
disposals – 489 503 992
exchange movement 2 50 4 56
at 30 april 2010 409 16415 1183 18007
net book value at 30 april 2010 4874 2342 2822 10038
net book value at 30 april 2009 4949 2345 3599 10893
disposals include writing off of cost and depreciation of assets no longer in use 66     aniteannual report and accounts 2010
 notes to the accounts  continued 
financial statements
15 investments
the group’s principal subsidiary undertakings are as follows
  ownership
  percentage by  place of
  the group at incorporation
company name principal activity of the company  30 april 2010 registration
held directly by the company
anite holdings international limited holding company 100 england  wales
anite properties plc property holding company 100 england  wales
anite systems holdings limited holding company 100 england  wales
anite telecoms holdings limited holding company 100 england  wales
anite financial management limited investment holding company 100 england  wales
anite travel limited 
formerly anite business systems limited travel software solutions and managed services 100 england  wales
held indirectly by the company
anite travel systems gmbh travel software solutions and managed services 100 germany
anite travel systems pty ltd travel software solutions and managed services 100 australia
anite finland ltd telecoms testing technologies for wireless devices 100 finland
anite telecoms limited  telecoms testing technologies for wireless devices 100 england  wales
anite telecoms india pvt ltd telecoms testing technologies for wireless devices 100 india
anite telecoms inc telecoms testing technologies for wireless devices 100 usa
anite telecoms kk telecoms testing technologies for wireless devices 100 japan
anite telecoms korea limited telecoms testing technologies for wireless devices 100 korea
anite singapore pte ltd telecoms testing technologies for wireless devices 100 singapore
anite wireless trading beijing ltd telecoms testing technologies for wireless devices 100 china
reilrop bv holding company 100 the netherlands
all companies listed above have been included in the consolidated accounts 
the country of incorporation is also the country in which each company has its principal place of business
16 inventories
   2010 2009
   £000 £000
electronic components   4452 2289
inventories are stated at lower of cost and net realisable value
the directors consider that the carrying amount of inventories approximates their fair value
17 trade and other receivables
   2010 2009
   £000 £000
current assets
trade debtors   21353 20217
less provision for impairment of trade receivables   1000 383
trade debtors net of provision   20353 19834
other receivables   1171 745
prepayments   1714 2072
amount due from construction customers note 22   259 1092
accrued income   1021 554
   24518 24297
the amounts presented in the table above are net of provision for doubtful recoverability and foreseeable losses
the group’s policy is to ensure that all credit trade customers are subject to credit verification procedures and where appropriate parent 
guarantee and letters of credit especially for overseas customers are used so that the group is exposed to a minimum level of bad debts aniteannual report and accounts 2010     67
17 trade and other receivables continued
the credit risk for trade receivables by business segments for 2010 and 2009 is as follows
in travel the top four customers represent 10 2009 8 of the group’s trade receivables 
in wireless the top four customers represent 25 2009 27 of the group’s trade receivables
overall the group has no customer that accounted for 8 or more of the accounts receivable at 30 april 2010 2009 9 and therefore 
there is no significant concentration of credit risk since the risk is spread over a large number of unrelated counterparties transactions with 
a single external customer within the travel segment amounted to £91m 115 of the group’s revenue 2009 less than 10
the average credit period for trade receivables is 78 days 2009 79 days in the united kingdom trade receivables are typically on 30 days’ 
credit terms whilst in certain cases a schedule of payments or extended payments have been agreed in other geographical areas especially 
europe trade receivables can be based on longer credit terms of up to 90 days before the debt falls due for payment interest may be charged 
on any outstanding balance that is 30 days overdue at 30 april 2010 and 2009 the trade receivables were noninterest bearing
the group has provided for all debts that individually are deemed doubtful at their estimated irrecoverable amount with the exception 
of debts for which the revenue has yet to be recognised or where the monies are received prior to the reporting date the group applies a 
collective assessment of impairment for debts with similar credit risk characteristics these characteristics are determined on the basis of 
the group’s historical loss experience within the industry and provide in varying percentages for debts that are overdue the agreed payment 
terms the reason for the policy is because overdue receivables carry an increased risk of not being recoverable the table below shows the 
movements in the provision for impairment of trade receivables
 trade receivables
   2010 2009
   £000 £000
at 1 may   383 643
charge for the year through income statement   917 289
release in the year   104 306
utilised for bad debt written off   196 243
at 30 april   1000 383
the ageing of the individually impaired trade receivables is as follows
 trade receivables
   2010 2009
   £000 £000
one to two months overdue   24 4
two to three months overdue   14 87
more than three months overdue   962 292
   1000 383
ageing of trade receivables excluding those that have been impaired
 trade receivables
   2010 2009
   £000 £000
neither past due nor impaired   13920 12572
past due but not impaired
less than one month overdue   1868 5487
one to two months overdue   2811 799
two to three months overdue   557 366
more than three months overdue   1197 610
   20353 19834
the neither past due nor impaired and those that are past due but not impaired balances are due from customers with good credit ratings 
there is no known reason why these amounts will not be recovered in due course of the debts past due but not impaired revenue has not 
been recognised on 3 2009 14 of those debts greater than three months overdue
the directors consider that the carrying amount of trade and other receivables approximates their fair value
the trade receivables do not include any advances or retentions at 30 april 2010 2009 £nil 68     aniteannual report and accounts 2010
 notes to the accounts  continued 
financial statements
18 cash and cash equivalents
   2010 2009
   £000 £000
cash at bank and in hand   10225 4660
term and overnight deposits   34578 42517
   44803 47177
note €400000 of the cash at bank and in hand is held as security against forward currency exchange contracts these contracts expire 
within five months of the balance sheet date 
cash at bank and in hand was invested on a floating rate basis and is therefore subject to cash flow interest risk the group has the legal 
right of setoff for certain of its overdraft and cash balances under an offsetting arrangement within its banking facilities
term and overnight deposits comprise money market deposits which attract interest rates based on market rates fixed for periods of up  
to three months the directors consider that the carrying amounts of cash and cash equivalents approximate to their fair values
for the purposes of the consolidated cash flow statement cash and cash equivalents comprise the above amounts
19 trade and other payables
   2010 2009
   £000 £000
trade creditors   6721 3529
other taxes and social security   1232 1035
amount due to contract customers note 22   – 48
deferred income   10490 11839
accruals   6485 7818
other creditors   830 430
   25758 24699
trade and other payables principally comprise trade purchases and nonoperating costs
the directors consider that the carrying amount of trade payables approximates their fair value
the trade and other payables do not include any retentions at 30 april 2010 2009 £nil aniteannual report and accounts 2010     69
20 bank borrowings
   2010 2009
   £000 £000
current
bank loans   4988 4979
noncurrent
bank loans   9979 14936
   14967 19915
the borrowings are repayable as follows
on demand or within one year   4988 4979
in the second year   9979 4979
in the third to fifth years inclusive   – 9957
   14967 19915
less amounts due for settlement within 12 months shown under current liabilities   4988 4979
amount due for settlement after 12 months   9979 14936
the current and noncurrent bank loans comprise a £15m 2009 £20m fixed term loan less £0033m 2009 £0085m of unamortised 
issue costs being amortised over the period of the loan
the loan was taken out on 30 november 2006 under a borrowing facility see note 24k for more details maturing on 30 november 2011 
this loan is secured by a fixed and floating charge on the group’s assets
this loan carries a weighted average floating interest rate of 152 2009 552 and exposes the group to cash flow interest rate risk  
this interest rate risk was partly hedged by the group using derivative financial instruments note 23
the bank loans are initially measured at fair value and net of transaction costs they are subsequently measured at amortised cost using the 
effective interest method with interest expense recognised on an effective yield basis the average effective interest rate for this loan was 
156 2009 587
21 net cash
   2010 2009
  note £000 £000
cash and cash equivalents  18 44803 47177
bank borrowings – current  20 4988 4979
bank borrowings – noncurrent  20 9979 14936
net cash   29836 27262
a reconciliation of the movement in net cashdebt for the year is as detailed below
   2010 2009
   £000 £000
net cashdebt at 1 may   27262 15450
net decreaseincrease in cash and cash equivalents   2204 16851
unamortised issue costs of bank borrowings   52 91
decrease in bank borrowings   5000 25000
exchange movement   170 952
net cash at 30 april   29836 27262 70     aniteannual report and accounts 2010
 notes to the accounts  continued 
financial statements
22 construction contracts with customers
   2010 2009
  note £000 £000
contracts in progress at balance sheet date
amount due from contract customers included in trade and other receivables  17 259 1092
amount due to contract customers included in trade and other payables  19 – 48
   259 1044
contract costs incurred plus recognised profits less recognised losses to date   15890 15394
less progress billings   15631 14350
   259 1044
revenue recognised within continuing operations during the year for construction contracts was £53m 2009 £56m
23 derivative financial instruments
details of the significant accounting policies and methods adopted the basis of measurement and the basis on which income and expenses 
are recognised in respect of each class of derivative financial instrument are disclosed in note 1 to the financial statements
derivative financial instruments are carried at fair value the fair values are derived from inputs that are observable for the asset or liability 
either directly or indirectly and relevant for the term currency and instrument and are therefore level 2 as described in the ifrs 7 update 
effective 1 january 2009 the fair values of the group’s derivative financial instruments are as follows
 2010 2010 2009 2009
 assets liabilities assets liabilities
 £000 £000 £000 £000
derivative financial assets
foreign currency contracts 28 – 75 –
foreign currency options 828 – – –
derivative financial liabilities
foreign currency contracts – 49 – –
interest rate swaps – in a cash flow hedge relationship – 1284 – 1660
cross currency swaps – in a net investment hedge relationship – 22285 – 22827
 856 23618 75 24487
analysed as expiring
within one year 856 49 75 –
more than one year and within five years – 23569 – 24487
 856 23618 75 24487
foreign currency options
the group has purchased options to sell euro at a rate of £1  €130 on 27 october 2011 the total principal amount paid was £10m and the 
mark to market value at 30 april 2010 is £828000 a charge of £172000 has been recognised in the income statement and is disclosed as 
other gains and losses under the heading “change in the fair value of derivative assets outstanding at year end”
cash flow hedges – interest rate swaps
the group uses interest rate swaps to manage its exposure to interest rate movements on its bank borrowings
at 30 april 2010 the interest rate swaps with notional principal amounts totalling £20m 2009 £20m have fixed interest rate payments  
at an average rate of 5535 and have floating interest receipts at libor rate for periods up until 31 october 2011 
the fair value of the interest rate swaps as shown above are based on market values of equivalent instruments at the balance sheet date 
interest rate swaps to the value of £643000 are designated and effective as cash flow hedges and the fair value thereof has been deferred 
in equity interest rate swaps to the value of £641000 are designated but are no longer effective under ias 39 during the period losses of 
£655000 previously held in reserves have been recycled from reserves to the income statement and are disclosed as finance charges note 
6 under the heading “recycling of fair value loss on cash flow hedges” a gain of £187 000 2009 £nil arising due to ineffectiveness has been 
credited to the income statement and is disclosed as other gains and losses under the heading “hedge ineffectiveness on cash flow hedges” aniteannual report and accounts 2010     71
23 derivative financial instruments continued
net investment hedges – cross currency swaps
the group has overseas subsidiaries which operate mainly in north america northern europe and asia pacific and whose revenues and 
expenses are denominated in their local currencies the group has historically hedged its net investment in overseas subsidiaries through 
natural hedges forward exchange contracts and utilisation of cross currency swaps however following the purchase of a forward exchange 
contract on 27 april 2010 the group ceased to apply hedge accounting to its net investment in overseas subsidiaries using derivative 
financial instruments
during the year the group entered into forward exchange contracts that when combined with the cross currency swaps reduced the 
principal amount under the combined instrument to €nil at each purchase of a forward contract the amount of the principal designated  
as the hedged item was reduced by an equal amount so that at the balance sheet date the principal value of the hedged item is also £nil  
the combined hedging instruments of the crosscurrency swap and forward exchange contracts were used to hedge the eurodenominated 
net investment of wireless nemo and at the balance sheet date indicated a mark to market liability of £22115000 2009 £22827000  
of which £524000 relates to future quarterly interest payments and £21591000 relates to the net exchange of principals
the fixed interest rates on the cross currency swap elements range from 464 to 519 2009 464 to 519 and the floating interest 
rates are based on libor sterling and euribor euro during the year the group entered into forward exchange contracts to eliminate 
the impact of exchange rate movements on the net interest payablereceivable at the balance sheet date these forward contracts 
indicated a mark to market liability of £170000
the fair value change on the cross currency swap which is approximately 99 effective against the hedged item is recognised in the 
hedging and translation reserve a gain of £651000 2009 loss £1057000 relating to ineffectiveness was recognised in the income 
statement during the year and is disclosed as other gains and losses under the heading “hedge ineffectiveness on net investment hedge”
24 financial risk management
a capital risk management
the group manages its capital structure to ensure that the entities in the group will be able to continue as a going concern while 
maximising the returns to the shareholders through the optimisation of the net debt and equity balance
the group is currently in a net cash position therefore the capital employed is equivalent to the shareholders’ funds of £780m 2009 £839m
the group has a credit facility agreement under which the group is subject to certain financial covenants relating to leverage cash flow 
and interest cover and also the requirement that the maximum preagreed level of overdrafts and ancillary facilities granted to the group 
companies that are guarantors of the credit facility are not exceeded the group has complied with these covenants and requirements 
b significant accounting policies
details of the significant accounting policies and methods adopted the basis of measurement and the basis on which income and expenses 
are recognised in respect of each class of financial asset liability and equity are disclosed in note 1
c categories of financial instruments
the following assets and liabilities at carrying values meet the definition of financial instruments and are classified according to the 
following categories
   2010 2009
  note £000 £000
fair value through profit and loss fvtpl – held for trading
foreign currency contracts  23 28 75
foreign currency options  23 828 –
loans and receivables
cash and cash equivalents  18 44803 47177
trade receivables  17 20353 19834
financial assets   66012 67086
fair value through profit and loss fvtpl – held for trading
foreign currency contracts  23 49 –
amortised cost
bank borrowings  20 14967 19915
trade creditors  19 6721 3529
deferred consideration in a business combination   – 380
derivative financial instruments in designated hedge accounting relationships
interest rate swaps  23 1284 1660
cross currency swaps  23 22285 22827
financial liabilities   45306 48311 72     aniteannual report and accounts 2010
 notes to the accounts  continued 
financial statements
24 financial risk management continued
d financial risk management
the group’s financial assets and liabilities mainly comprise bank borrowings cash and liquid resources derivative financial instruments 
deferred consideration for acquisitions and various items such as trade receivables and payables that arise directly from its operations
the main risks arising from the group’s financial instruments are market risk primarily exposure to changes in interest rates and foreign currency 
risks liquidity risk and credit risk the board reviews and agrees policies for managing each of these risks which are summarised below
e market risk – interest rate
the group finances its operations and acquisitions through a mixture of reserves bank borrowings and new equity and this policy is 
reviewed from time to time the group borrows in the desired currencies at floating rates of interest and manages the interest rate risk 
by selectively using interest rate swaps any surplus cash is converted into sterling and is invested in shortterm money market and bank 
deposits at the prevailing rates of interest in order to achieve the market rate of return 
the financial assets and liabilities that are interestbearing and expose the group to interest rate risk are as follows
i cash and equivalents note 18 the weighted average floating interest rate for these financial assets which were based on sterling 
market rates fixed for periods up to three months was 06 2009 30
ii bank borrowings note 20 the weighted average floating interest rate for bank borrowings was 152 2009 552 this is linked 
to libor plus a margin for bank loans the margin varies between 060 and 105 dependent on the ratio of net debt to ebitda reviewed 
annually during the year the margin remained constant at 060 2009 060
the contractual interest rate on the overdrawn balance is based on 1 per annum over the bank’s base rate for its sterling accounts and 1 
per annum over the bank’s relevant shortterm offered rate for any other currency accounts
iii interest rate swaps these derivatives are used to manage the group’s exposure to interest rate risk on its bank borrowings above 
see note 23 for details of the interest rate
iv cross currency swaps these derivatives were used to hedge the net investment of an overseas subsidiary see note 23 for details  
of the interest rate
interest rate sensitivity analysis
the sensitivity analysis below has been determined based on the exposure to interest rates for both financial assets and liabilities both 
including derivative instruments as listed above at the balance sheet date and adjustments have been made particularly where some of the 
significant derivatives only existed for part of the year
with all other variables held constant the table below demonstrates the sensitivity to a 05 change in interest rates applied to the major 
currencies of net variable rate assetsliabilities 05 is the sensitivity rate that represents management’s assessment of the reasonably 
possible change in interest rates in the next 12 months
 £denominated usdenominated €denominated
 2010 2009 2010 2009 2010 2009
 £000 £000 £000 £000 £000 £000
cash and cash equivalents 39024 45094 1508 1660 6226 2693
bank borrowings 14967 19915 – – – –
interest rate swaps – floating rate 20000 20000 – – – –
net variable rate assetsliabilities 44057 45179 1508 1660 6226 2693
 £ interest rate us interest rate € interest rate
 2010 2009 2010 2009 2010 2009
 £000 £000 £000 £000 £000 £000
profit before tax – gainloss
05 change in interest rate 220 226 8 8 31 13
05 change in interest rate  220 226 8 8 31 13
the fair value of financial assets and liabilities is not materially different from the book value recorded at 30 april 2010 and 2009
f market risk – foreign currency
the group has overseas subsidiaries and branches which operate mainly in north america northern europe and asia pacific and whose 
revenues and expenses are denominated in their local currencies until 27 april 2010 the group partly hedged its investment in overseas 
subsidiaries through financial instruments and natural hedges details of the effect of changes to this policy are shown in note 23 aniteannual report and accounts 2010     73
24 financial risk management continued
foreign currency sensitivity analysis
the group has a euro denominated investment in wirelessnemo that until 27 april 2010 was designated as being in a net investment 
hedge at 30 april 2009 the principal amount designated was equal to the principal amount of the hedging instrument which was a 
combination of a cross currency swap and a forward exchange contract at the balance sheet date the designated principal was £nil 2009 
£884m as a result of reducing the principal amount of the hedged item to zero any foreign exchange movements will create a gain or loss 
on the value of the investment with all other variables held constant the effect of a 10 depreciation and appreciation of the euro against 
sterling applied to the investment will be either a gain of £73m 2009 not applicable or a loss of £80m 2009 not applicable in the 
hedging and translation reserve respectively
during the year the group purchased options to sell a total of €80500000 at a rate of €130  £1 exercisable on 27 october 2011 at the 
exchange rates ruling on the balance sheet date the effect of a 1 depreciation and appreciation of the euro against sterling would have nil 
effect on the group’s reported results however should the strike price be achieved prior to 27 october 2011 a 1 depreciation of the euro 
against sterling would create a gain to the group of £613000
the sensitivity analysis below is based on a 10 appreciationdepreciation of the euro and us dollar against sterling applied to the net 
monetary assets or liabilities of the group that are not denominated in the functional currency of the operating unit involved
 £denominated usdenominated €denominated
 2010 2009 2010 2009 2010 2009
 £000 £000 £000 £000 £000 £000
monetary assets 122 339 7716 1893 3925 1001
monetary liabilities  17 – 2024 1108 1441 149
net monetary assets 105 339 5692 785 2484 852
 £ currency impact us currency impact € currency impact
 2010 2009 2010 2009 2010 2009
 £000 £000 £000 £000 £000 £000
profit before tax – gainloss
10 appreciation 12 38 632 87 276 95
10 depreciation 10 31 517 71 226 77
in management’s opinion the sensitivity analysis is based on the monetary assets and liabilities at reporting date and therefore does not 
reflect the exposure during the year 
g other price risks
the group is not exposed to other price risks apart from interest rate and foreign exchange risk as disclosed above
h forward foreign exchange contracts
anite’s strategy is to hedge a proportion of the forecast future cash flows for a period of three to five months creating a cash flow 
movement to offset the translational movement the proportion of forecast cash flows that will be hedged is reviewed periodically in the 
light of experience
excluding the forward exchange contracts that form part of the net investment hedge at 30 april 2010 2009 £75000 the group had the 
following outstanding contracts
    contract contract fair
   fixed value value value
maturity date  note rate £000 us000 £000
forward contracts to sell us dollars and receive sterling
june 2010   15199 1316 2000 10
    contract contract fair
   fixed value value value
maturity date  note rate £000 €000 £000
forward contracts to sell euro and receive sterling
up to june 2010   11327 1104 1250 18
    contract contract fair
   fixed value value value
maturity date  note rate €000 us000 £000
forward contracts to sell us dollars and receive euro
up to sept 2010   13499 4149 5600 49
derivative assets  23    28
derivative liabilities  23    49 74     aniteannual report and accounts 2010
 notes to the accounts  continued 
financial statements
24 financial risk management continued
i interest rate and cross currency swap contracts
see note 23 for details of the interest rate and cross currency swaps
j credit risk
credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the group
the group’s maximum exposure to credit risk is as follows
   2010 2009
  note £000 £000
cash and cash equivalents  18 44803 47177
derivative financial instruments  23 856 75
trade receivables  17 20353 19834
   66012 67086
the credit risk on cash and derivative financial instruments is limited because the counterparties to these assets are highly rated financial 
institutions in addition the group has further mitigated this risk by spreading cash deposits over a range of financial institutions with no 
more than £5m being deposited with any one counterparty
the group’s policy to mitigate potential credit risks and the concentration of credit risks of trade receivables are detailed in note 17 – trade 
and other receivables
k liquidity risk
the group’s objective is to maintain a balance and continuity of funding and flexibility through the use of bank overdrafts and bank 
syndicated facilities
the group’s uk overdraft facility was renewed during the year at £5m net 2009 £5m net the net amount drawn down under these 
facilities at 30 april 2010 and 2009 was £nil 
in october 2006 the group entered into a fiveyear syndicated facility which was underwritten in full by lloyds tsb bank plc this facility 
consists of a term loan of £50m repayable at £5m per annum until 30 november 2010 with the balance due on 30 november 2011 and 
a revolving credit facility of £40m on 31 october 2008 the group made a oneoff voluntary repayment under the term loan of £25m 
reducing the amount outstanding under the facility to £20m on the same date the group’s revolving credit facility was reduced to £20m 
the amount of undrawn facilities at 30 april 2010 was £20m 2009 £20m and total undrawn facilities including the overdraft facility were 
£25m 2009 £25m the revolving credit facility incurs commitment fees at market rates
this facility is available to be drawn to support the general corporate purposes for the group including working capital requirements aniteannual report and accounts 2010     75
24 financial risk management continued
k liquidity risk continued
maturity profile
the table below summarises the maturity profile of the group’s undiscounted cash flows of the financial liabilities and the earliest date on 
which the group is required to pay
2010       effect of 
       discount 
  less than one to two to over undiscounted financing 
  one year two years three years three years balance rates 2010
  £000 £000 £000 £000 £000 £000 £000
bank borrowings – variable rate note 20  5000 10000 – – 15000 33 14967
trade creditors note 19  6721 – – – 6721 – 6721
  11721 10000 – – 21721 33 21688
derivative financial instruments
interest rate swaps  – 1334 – – 1334 50 1284
cross currency swaps
1
   – 22639 – – 22639 354 22285
  11721 33973 – – 45694 437 45257
1
  split of cross currency swaps between
 £leg assets      71570 143 71427
 €leg liabilities      94209 497 93712
      22639 354 22285
2009       effect of 
       discount 
  less than one to two to over undiscounted financing 
  one year two years three years three years balance rates 2009
  £000 £000 £000 £000 £000 £000 £000
bank borrowings – variable rate note 20  5000 5000 10000 – 20000 85 19915
trade creditors note 19  3529 – – – 3529 – 3529
  8529 5000 10000 – 23529 85 23444
derivative financial instruments
interest rate swaps  – – 1720 – 1720 60 1660
cross currency swaps
2
   – – 23388 – 23388 561 22827
  8529 5000 35108 – 48637 706 47931
2
 split of cross currency swaps between
 £leg assets      70030 3610 66420
 €leg liabilities      93418 4171 89247
      23388 561 22827
25 deferred tax assetsliabilities
  accelerated    shortterm advance 
  tax development intangible share timing corporation 
  depreciation costs assets based differences tax total
  £000 £000 £000 £000 £000 £000 £000
at 1 may 2008  661 1606 6356 801 221 27 6252
disposals  37 – – 110 – – 147
chargecredit to income statement  
for the year  1347 878 1123 223 221 27 2877
chargecredit to equity for the year  – – 948 20 – – 928
at 30 april 2009  1971 728 6181 488 – – 4450
chargecredit to income statement 
for the year  313 362 1586 68 448 – 2151
credit to equity for the year  – – 206 110 – – 316
at 30 april 2010  1658 366 4389 666 448 – 1983
certain deferred tax assets and liabilities have been offset to the extent permitted by ias 12 76     aniteannual report and accounts 2010
 notes to the accounts  continued 
financial statements
25 deferred tax assetsliabilities continued
the following is the analysis of the deferred tax balances after offset for balance sheet purposes
   2010 2009
   £000 £000
deferred tax assets   2406 1731
deferred tax liabilities   4389 6181
   1983 4450
   2010 2009
   £000 £000
deferred tax assets not recognised
income losses carried forward   6935 7231
capital losses carried forward   18575 13756
surplus act carried forward   2457 2457
   27967 23444
deferred tax assets in respect of losses carried forward in certain companies have not been recognised because at present it is not envisaged 
that there will be sufficient taxable profits in those companies from which future reversal of these reliefs can be deducted the unutilised 
reliefs may be carried forward for various periods
deferred tax liabilities have not been recognised for the withholding tax and other taxes that would be payable on the unremitted earnings 
of certain overseas subsidiaries no provision is required since the group is in a position to control the timing of the reversal of these 
differences and either it is probable that such differences will not reverse in the foreseeable future or no tax is payable on the reversal
   2010 2009
   £000 £000
temporary differences in respect of which no deferred tax has been recognised
undistributed earnings of subsidiaries   19952 14371
no provision has been made for taxation of £nil 2009 £nil in respect of chargeable gains rolled over in earlier years
26 provisions
  deferred  property other group
  consideration warranties provision provisions total
  £000 £000 £000 £000 £000
at 1 may 2009  380 3210 7293 500 11383
release of provision credited to income statement  – – 59 250 309
established during the year  – – 268 272 540
utilised during the year continuing operations  364 – 1471 250 2085
unwinding of discount  – – 200 – 200
exchange movement  16 – – – 16
at 30 april 2010  – 3210 6231 272 9713
   2010 2009
   £000 £000
analysed as
current liabilities   4611 5389
noncurrent liabilities   5102 5994
   9713 11383
the warranty provision has been made to cover any potential claims made by disposed businesses during the contractual warranty period  
it is expected to be utilised in one to six years 
the property provision is in respect of all properties surplus to business requirements and dilapidation provisions for properties currently in use 
the provision is calculated in accordance with ias 37 as disclosed in note 1 to the accounts it is expected to be utilised in one to 12 years
other provisions include provisions for contractual items expected to be utilised within one year aniteannual report and accounts 2010     77
27 called up share capital
  deferred
 ordinary shares redeemable shares
 of 1125p each of £1 each
 number £000 number £000
authorised
at 30 april 2009 and 2010 355555556 40000 50000 50
allotted issued and fully paid
at 30 april 2009 298609840 33594 50000 50
issued during the year 73355 8 – –
at 30 april 2010 298683195 33602 50000 50
a redeemable share capital
these deferred shares of £1 each may be redeemed at any time at the option of the company at a price of 1p each they are nonequity 
shares and have no voting rights
b shares issued during the year
73355 ordinary shares were issued at 305p each in respect of the exercise of options under the approved share option scheme
c outstanding options
as at 30 april 2010 the following options over the company’s ordinary shares had been granted and were still outstanding
  executive  
  share option saye option 
  grantsawards schemes total
outstanding at 1 may  17824123 33766 17857889
granted during the year  4265350 2837946 7103296
exercised during the year  2092905 6666 2099571
lapsed during the year  5720277 155523 5875800
outstanding at 30 april  14276291 2709523 16985814
subscription price  00p2070p 225p 
dates exercisable  august 2010 september 2012
  december 2019  august 2017
weighted average exercise price  140p 225p
d own shares reserve
the own shares reserve of £3895000 2009 £3657000 represents the cost of shares in anite plc purchased in the market for the 
following trusts of the company
i at the start of the year 4733453 shares at a cost of £2704000 were held in the company’s employee share ownership plan esop to 
satisfy some of the psp and smp awards that part of the employers’ nic liability of the group’s share options schemes and all of the mip 
awards during the year the company reviewed the calculation for assessing the weighted average value of shares held within the esop 
and has subsequently revalued its holding by increasing the weighted average cost by £429000 in addition a further 366336 shares were 
purchased at a cost of £104000 all of these shares held will continue to be held until the performance conditions of the relevant share plan 
awards are fulfilled during the year 628342 shares were sold at a fair value of £400000 to satisfy awards that were vested at the balance 
sheet date 4471447 shares were held at a weighted average cost of £2733000
ii at the start of the year 1712524 shares at a cost of £953000 were held in the company’s share incentive plan sip under the sip 
scheme these shares will be held until the conditions of the sip are fulfilled during the year 309757 shares were purchased at a cost of 
£105000 at the balance sheet date 2022281 shares were held at a cost of £1058000
these amounts have been deducted from the shareholders’ equity in accordance with ias 32 and 39 78     aniteannual report and accounts 2010
financial statements
 notes to the accounts  continued 
28 dividends
dividends paid during the year are set out below
   2010 2010 2009 2009
  pence  pence 
 payment date per share £000 per share £000
for the year ended 30 april 2008
final dividend 20 october 2008   06 1993
for the year ended 30 april 2009
interim dividend 20 february 2009   03 992
special dividend 20 february 2009   30 9918
final dividend 20 october 2009 065 1912  
for the year ended 30 april 2010
interim dividend 20 february 2010 030 883  
    2795  12903
at the agm on 16 september 2010 a final dividend in respect of the year ended 30 april 2010 of 065p per share is to be proposed
29 commitments
a capital commitments
there were no capital commitments at 30 april 2010 and 2009
b operating lease arrangements
   2010 2009
   £000 £000
lease payments under operating leases recognised as an expense in the year   2600 2693
the group has total outstanding commitments under noncancellable operating leases which fall due as follows
 land and buildings other
 2010 2009 2010 2009
 £000 £000 £000 £000
leases expiring in one year 2515 2499 77 –
leases expiring in two to five years inclusive 4865 6460 – –
leases expiring after five years 3143 3618 – –
 10523 12577 77 –
30 contingent liabilities
there are contingent liabilities that arise in the normal course of business in respect of indemnities warranties guarantees and legal claims 
however the directors have considered that none of these claims is expected to result in a material loss to the group there has been no 
change in the directors’ assumptions in regard to contingent liabilities since the year ended 30 april 2010
31 related party transactions
a key management personnel
the details of key management remuneration are disclosed in the remuneration report
b the board is not aware of any related party transactions that should be disclosed
i no guarantees have been provided to any related parties 
ii transactions between anite plc and its subsidiaries which are related parties have been eliminated on consolidation aniteannual report and accounts 2010     79
financial statements
 fiveyear summary  
  2010 2009 2008 2007 2006
  £000 £000 £000 £000 £000
revenue
revenue – continuing operations  78770 90098 91648 90799 83339
revenue – discontinued and disposed operations  – 28810 63535 82378 81328
total revenue  78770 118908 155183 173177 164667
results
adjusted operating profit  11866 20045 18709 22399 20480
operating lossprofit – continuing operations  1843 9361 10216 20068 19695
lossprofit attributable to equity holders of anite plc  3427 36343 13234 20271 8869
assets employed
noncurrent assets  88938 103592 121170 131368 54244
current assets  74896 74219 86555 89893 94893
assets held for sale  – – – – 473
current liabilities  42845 42303 82096 97622 94246
liabilities directly associated with assets classified  
as held for sale  – – – – 519
noncurrent liabilities  43039 51598 63085 58697 10880
  77950 83910 62544 64942 43965
key statistics
earnings per share 
total operations – basic  12p 113p 38p 58p 25p
 – diluted  12p 108p 37p 57p 25p
proposed dividend per share history 
dividend per share – interim  030p 030p 028p 025p –
 – final  065p 065p 060p 055p 050p
  
total dividend per share  095p 095p 088p 080p 050p
   80     aniteannual report and accounts 2010
 main head 
financial statements
 independent auditors’ report to the members of anite plc 
we have audited the parent company financial statements of anite plc for the year ended 30 april 2010 which comprise the balance sheet 
the statement of comprehensive income the statement of changes in equity the cash flow statement and the related notes 1 to 17  
the financial reporting framework that has been applied in their preparation is applicable law and international financial reporting 
standards ifrss as adopted by the european union and as applied in accordance with the provisions of the companies act 2006
this report is made solely to the company’s members as a body in accordance with chapter 3 of part 16 of the companies act 2006  
our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them  
in an auditors’ report and for no other purpose to the fullest extent permitted by law we do not accept or assume responsibility to anyone 
other than the company and the company’s members as a body for our audit work for this report or for the opinions we have formed
respective responsibilities of directors and auditors
as explained more fully in the directors’ responsibilities statement the directors are responsible for the preparation of the parent company 
financial statements and for being satisfied that they give a true and fair view our responsibility is to audit the parent company 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
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance 
that the financial statements are free from material misstatement whether caused by fraud or error this includes an assessment of whether 
the accounting policies are appropriate to the parent company’s circumstances and have been consistently applied and adequately disclosed 
the reasonableness of significant accounting estimates made by the directors and the overall presentation of the financial statements
opinion on financial statements
in our opinion the parent company financial statements
  give a true and fair view of the state of the parent company’s affairs as at 30 april 2010
  have been properly prepared in accordance with ifrss as adopted by the european union and as applied in accordance with the 
provisions of the companies act 2006 and
  have been prepared in accordance with the requirements of the companies act 2006
opinion on other matters prescribed by the companies act 2006
in our opinion
  the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the companies act 2006 and
  the information given in the directors’ report for the financial year for which the financial statements are prepared is consistent with the 
parent company 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 and the part of the directors’ remuneration report to be audited are not in agreement with 
the accounting records and returns or
  certain disclosures of directors’ remuneration specified by law are not made or
  we have not received all the information and explanations we require for our audit
other matter
we have reported separately on the group financial statements of anite plc for the year ended 30 april 2010
peter o’donoghue senior statutory auditor
for and on behalf of
deloitte llp  chartered accountants and statutory auditors 
london united kingdom 
5 july 2010 aniteannual report and accounts 2010     81
financial statements
 company balance sheet  
   2010 2009
  note £000 £000
noncurrent assets
intangible assets  2 25 57
property plant and equipment  3 826 1171
investments in subsidiaries  4 141922 140503
deferred tax assets  5 739 490
   143512 142221
current assets
trade and other receivables  6 579 734
amounts owed by group undertakings  7 36736 38961
cash and cash equivalents  8 26564 42313
   63879 82008
total assets   207391 224229
current liabilities
trade and other payables  9 2281 3214
amounts owed to group undertakings  7 53271 65648
current tax payable   2620 3860
   58172 72722
noncurrent liabilities
provisions  10 4801 5981
total liabilities   62973 78703
net assets   144418 145526
equity
issued share capital  11 33652 33644
share premium account   25500 25485
own shares   3895 3657
merger reserve   39029 39029
capital redemption reserve   2741 2741
retained earnings   47391 48284
total equity   144418 145526
the financial statements of anite plc company no 01798114 were approved by the board on 5 july 2010 and signed on its behalf by
c j humphrey
chief executive
r j amos 
group finance director 82     aniteannual report and accounts 2010
financial statements
 company statement of comprehensive income 
 
   2010 2009
  note £000 £000
retained lossprofit for the period   686 6790
share buyback and cancellation   – 660
gain on sale of shares from treasury   3 –
recognition of sharebased payments before tax   877 1311
recognition of sharebased payments for subsidiaries   1569 4
tax credit taken directly to other comprehensive income  5 110 79
total comprehensive income   1873 7516
 company statement of changes in equity 
  issued share   capital
  share premium own merger redemption retained
  capital account shares reserve reserve earnings total
  £000 £000 £000 £000 £000 £000 £000
balance at 1 may 2008  33854 25406 5132 39029 2485 55341 150983
changes in equity for the year  
to 30 april 2009
total comprehensive income for the period 256 – 1670 – 256 5846 7516 
issue of share capital  46  79  – – – – 125 
purchase of own shares into treasury  – – 195 – – – 195
dividend paid  – – – – – 12903 12903
balance at 30 april 2009  33644  25485  3657 39029 2741 48284 145526
changes in equity for the year  
to 30 april 2010
total comprehensive income for the period – – 29 – – 1902 1873
issue of share capital  8 15 – – – – 23
purchase of own shares into treasury  – – 209 – – – 209
dividend paid  – – – – – 2795 2795
balance at 30 april 2010  33652 25500 3895 39029 2741 47391 144418 aniteannual report and accounts 2010     83
financial statements
 company cash flow statement 
   2010 2009
   total total
  note £000 £000
operating activities
lossprofit for the year   686 6790
adjustments for
tax credit   426 350
dividend income from subsidiary undertakings   – 27000
sharebased payment expense   877 1311
finance charges   820 1155
depreciation of property plant and equipment  3 401 397
amortisation of intangible assets  2 35 47
impairmentreversal of impairment of investment  4 150 1280
exchange differences arising on translation of amount due to subsidiary undertakings   1769 6449
impairment of amount due from subsidiary undertakings   92 7121
reversal of impairment on amounts due from subsidiaries   586 2063
profit on disposal of property plant and equipment   – 13
utilisation of provisions   1358 456
increase in provisions – restructuring costs   – 4909
operating cash flows before movements in working capital   2450 2983
decrease in receivables   109 78
decrease in payables   930 193
cash used in operations   3271 3098
interest received from subsidiary undertakings   546 1696
interest received   290 1704
interest paid   22 83
net cash used ingenerated from operating activities   2457 219
cash flow from investing activities
purchase of property plant and equipment   56 58
purchase of software licences   3 10
proceeds from disposal of property plant and equipment   – 35
dividend received from subsidiary undertakings   – 27000
net cash used ingenerated from investing activities   59 26967
cash flow from financing activities
issue of ordinary share capital   23 125
share buyback for cancellation   – 660
purchase of own shares into treasury   209 195
proceeds from sale of own shares from treasury   3 –
dividend paid to company’s shareholders   2795 12903
movement in amount due tofrom group undertakings
1
   10255 1459
net cash used in financing activities   13233 15092
net decreaseincrease in cash and cash equivalents   15749 12094
cash and cash equivalents at 1 may   42313 30219
cash and cash equivalents at 30 april  8 26564 42313
1 movement in amount due tofrom group undertakings is primarily due to cash transfers and group relief receipts from subsidiary undertakings 84     aniteannual report and accounts 2010
financial statements
 notes to the company accounts   
1 basis of preparation and accounting policies
a basis of preparation
anite plc has presented separate financial statements in accordance with international financial reporting standards ifrs as permitted  
by the companies act 2006
the company has taken the exemption from section 2304 of the companies act 2006 from preparing the income statement and related 
notes when the group’s consolidated income statement has been presented
b accounting policies
the accounting policies as set out in note 1 to the consolidated financial statements have been applied in the preparation of these company 
financial statements
2 intangible assets
    software licences
    £000
cost
at 1 may 2008    193
additions     9
disposals    4
transfers to subsidiary undertakings    20
at 30 april 2009    178
additions     3
at 30 april 2010    181
amortisation
at 1 may 2008    82
amortisation    47
disposals    4
transfers to subsidiary undertakings    4
at 30 april 2009    121
amortisation    35
at 30 april 2010    156
net book value at 30 april 2010    25
net book value at 30 april 2009    57 aniteannual report and accounts 2010     85
3 property plant and equipment
   plant fixtures
   equipment and
  computers motor vehicles total
  £000 £000 £000
cost
at 1 may 2008  838 702 1540
additions  44 415 459
disposals  41 – 41
transfers from subsidiary undertakings  21 – 21
transfers to subsidiary undertakings  37 – 37
at 30 april 2009  1035 1653 2688
additions  44 12 56
at 30 april 2010  1079 1665 2744
accumulated depreciation and impairment
at 1 may 2008  793 364 1157
charge for the year  134 263 397
disposals  19 – 19
transfers from subsidiary undertakings  4 – 4
transfers to subsidiary undertakings  22 – 22
at 30 april 2009  890 627 1517
charge for the year  93 308 401
at 30 april 2010  983 985 1918
net book value at 30 april 2010  96 730 826
net book value at 30 april 2009  145 1026 1171
4 investments in subsidiaries
   2010 2009
   £000 £000
cost
at 1 may    195432 241558
additions
1
   1569 564
liquidation of nonoperational subsidiary    – 46122
disposal of subsidiary undertakings   – 568
at 30 april   197001 195432
provisions for impairment
at 1 may    54929 70981
liquidation of nonoperational subsidiary    – 14772
impairmentreversal of impairment   150 1280
at 30 april    55079 54929
net book value   141922 140503
1 this relates to capital contributions made by the company to its subsidiaries equal to the sharebased payments recognised by these subsidiaries in their accounts 86     aniteannual report and accounts 2010
financial statements
 notes to the company accounts  continued 
5 deferred tax assets
  accelerated
  tax sharebased
  depreciation payments total
  £000 £000 £000
at 1 may 2008  64 493 557
creditcharge to income statement for the year  77 223 146
credit to equity for the year  – 79 79
at 30 april 2009  141 349 490
credit to income statement for the year  68 71 139
credit to equity for the year  – 110 110
at 30 april 2010  209 530 739
there are no deferred liabilities that have been offset as permitted by ias 12
6 trade and other receivables
   2010 2009
   £000 £000
amounts falling due within one year
trade receivables   34 129
other receivables   25 71
prepayments   520 534
   579 734
the directors consider that the carrying amount of trade and other receivables approximates their fair value
the trade receivables do not include any advances or retentions at 30 april 2010 and april 2009
7 amounts owed byto group undertakings
the directors consider that the carrying amount of amounts owed by and to group undertakings approximates their fair value the provision 
for impairment of amounts owed by group undertakings was £170m 2009 £175m see note 17h for further details aniteannual report and accounts 2010     87
8 cash and cash equivalents
   2010 2009
   £000 £000
cash at bank and in hand   – 650
overdrafts   2977 854
term and overnight bank deposits   29541 42517
   26564 42313
cash at bank and in hand was invested on a floating rate basis and was therefore subject to cash flow interest risk the company has the 
legal right to offset certain of its overdraft and cash balances under a master netting arrangement within its banking facilities
term and overnight bank deposits comprise money market deposits which attract interest rates based on market rates fixed for periods  
of up to three months the directors consider that the carrying amounts of cash and cash equivalents approximate to their fair values
for the purposes of the cash flow statement cash and cash equivalents comprise the above amounts
the carrying value of the company’s cash and cash equivalents and overdrafts are denominated in the following currencies
   2010 2009
   £000 £000
euro   20 650
sterling   26584 41663
   26564 42313
9 trade and other payables
   2010 2009
   £000 £000
trade creditors   417 584
other taxes and social security   42 158
other creditors   333 88
accruals   1489 2384
   2281 3214
trade and other payables principally comprise trade purchases and other operating costs
the directors consider that the carrying amount of trade payables approximates to their fair value
10 provisions
    property provision
    £000
at 1 may 2009    5981
utilised during the year    1358
unwinding of discount    178
at 30 april 2010    4801
the provision is held in relation to the empty space within the group’s corporate office in slough resulting from the disposal of anite public 
sector in october 2008 and in respect of dilapidation obligations under an operating property lease it is disclosed under “noncurrent 
liabilities” in the balance sheet 88     aniteannual report and accounts 2010
financial statements
 notes to the company accounts  continued 
11 share capital
the movements on share capital are disclosed in note 27 to the consolidated financial statements
12 sharebased payments
the company operates several share option plans including saye and other sharebased schemes the terms are disclosed in note 9 to the 
consolidated financial statements
details of the share options outstanding during the year are as follows
 2010 2010 2009 2009
 saye other sharebased saye other sharebased
  weighted  weighted  weighted  weighted
 number average number average number average number average
 of share exercise of share exercise of share exercise of share exercise
 options price options price options price options price
outstanding at 1 may 18744 46p 12126340 11p 36385 46p 12243542 11p
granted during the year 379111 23p 1690107 – – – 3454743 –
exercised during the year – – 102564 – – – – –
lapsed during the year 18744 46p 3681788 20p 17641 46p 3571945 1p
outstanding at 30 april 379111 23p 10032095 5p 18744 46p 12126340 11p
exercisable at 30 april –  1386323  –  1447897 
weighted average fair value  
of awards granted during year 10  25  –  26 
weighted average remaining 
contractual life years 45  70  03  67 
exercise price 225p460p  00p595p  46p  00p870p 
 saye other sharebased
    weighted   weighted
   outstanding average weighted outstanding average weighted
   options remaining average options remaining average
   at 30 april contractual exercise at 30 april contractual exercise
   2010 life price 2010 life price
exercise price range
0p   – – – 8652301 74 –
1p40p   379111 45 23p 982382 41 34p
41p806p   – – – 397412 51 52p
   379111 45 23p 10032095 70 5p
the fair values for the above options were calculated using the blackscholes and stochastic option pricing models the inputs into these 
models are disclosed in note 9 to the consolidated financial statements
the company recognised total expenses of £877000 2008 £1311000 related to equitysettled sharebased payment transactions during 
the year aniteannual report and accounts 2010     89
13 commitments
a capital commitments
there were no capital commitments at 30 april 2010 and 2009
b operating lease arrangements
   2010 2009
   £000 £000
lease payments under operating leases recognised as an expense in the year   891 914
the company has total outstanding commitments under noncancellable operating leases which fall due as follows
 land and buildings
   2010 2009
   £000 £000
leases expiring in one year   905 872
leases expiring in two to five years inclusive   1367 2189
   2272 3061
14 contingent liabilities
the company has contingent liabilities which have not been provided for in the accounts in respect of performance guarantees given by the 
company in respect of subsidiary contracts with third parties the nature of these performance guarantees is such that they would only come 
into effect in the case of a major default of a subsidiary in performing these contracts it is not practical to estimate the amount of the liability
anite plc is a guarantor of the overdraft and syndicated facilities of the group totalling £40m 2009 £45m of which £15m 2009 £20m 
was drawn down at 30 april 2010 details of the borrowings are set out in note 20 of the consolidated financial statements
15 related party transactions
a subsidiaries
the company has outstanding balances with its whollyowned subsidiaries the amounts owed by and owed to subsidiaries are disclosed in 
the balance sheet these loans are unsecured and interest is calculated based on market rates
during the year the company entered into the following transactions with its subsidiaries
   2010 2009
   £000 £000
management fees receivable   1606 2597
interest payable   587 2121
other costs recharged to subsidiaries   3454 3713
net cash transfersintercompany settlement to subsidiaries   3866 14224
b key management personnel
the key management personnel are deemed to be the members of the board of directors of the company which has responsibility for 
planning directing and controlling the activities of the company transactions with key management personnel are disclosed in the 
directors’ report 90     aniteannual report and accounts 2010
financial statements
 notes to the company accounts  continued 
16 staff costs
the average number of persons employed including executive directors was as follows
   2010 2009
   number number
europe – united kingdom   25 34
the amount charged in arriving at the operating profit for the year in respect of all employees was as follows
   2010 2009
   £000 £000
wages and salaries   1949 2687
social security costs    215 293
sharebased payments   877 1311
other pension costs   126 142
   3167 4433
17 financial risk management
a capital risk management
the company manages its capital structure to ensure it is operating as a going concern and maximising the returns of the shareholders 
through the optimisation of its equity balance
the company’s capital structure is as follows
   2010 2009
   £000 £000
cash and cash equivalents   26564 42313
amounts owed to group undertakings   53271 65648
total equity   144418 145526
capital employed   171125 168861
b significant accounting policies
details of the significant accounting policies and methods adopted the basis of measurement and the basis on which income and expenses 
are recognised in respect of each class of financial asset liability and equity are disclosed in note 1 to the consolidated financial statements
c categories of financial instruments
the following assets and liabilities at carrying values meet the definition of financial instruments and are classified according to the 
following categories
   2010 2009
  note £000 £000
loans and receivables
cash and cash equivalents  8 26564 42313
trade receivables  6 34 129
amounts owed by group undertakings   36736 38961
financial assets   63334 81403
amortised cost
trade payables  9 417 584
amounts owed to group undertakings   53271 65648
financial liabilities   53688 66232 aniteannual report and accounts 2010     91
17 financial risk management continued
d financial risk management
the company’s financial assets and liabilities mainly comprise cash and liquid resources and various items such as trade receivables and 
payables that arise directly from its operations
the main risks arising from the company’s financial instruments are market risk primarily exposure to changes in the interest rate and 
foreign currency risks liquidity risk and credit risk the board reviews and agrees policies for managing each of these risks which are 
summarised below
e market risk – interest rate
the group finances its operations and acquisitions through a mixture of reserves bank borrowings and new equity and this policy is 
reviewed from time to time the group borrows in the desired currencies at floating rates of interest and manages the interest rate risk 
by selectively using interest rate swaps any surplus cash is converted into sterling and is invested in shortterm money market and bank 
deposits at the prevailing rates of interest in order to achieve the market rate of return 
the financial assets and liabilities that are interestbearing and expose the company to interest rate risk are as follows
i cash and cash equivalents note 8 the weighted average floating interest rate for these financial assets which were based on 
sterling market rates fixed for periods up to three months was 06 2009 30
ii interest bearing intercompany debtors and creditors the weighted average of these interest rates net is 177 2009 67 
these rates are linked to libor plus margin the margin is 085 as stipulated in the loan agreement
interest rate sensitivity analysis
the sensitivity analyses below have been determined based on the exposure to interest rates for both financial assets and liabilities both 
including derivative instruments as listed above at balance sheet date
the table below demonstrates the sensitivity to a 05 change in interest rates with all other variables held constant applied to the major 
currencies of net variable rate assetsliabilities 05 is the sensitivity rate that represents management’s assessment of the reasonably 
possible change in interest rates in the next 12 months
 £denominated €denominated
 2010 2009 2010 2009
 £000 £000 £000 £000
cash and cash equivalents 26584 41663 20 650
amount due tofrom group undertakings 33851 24594 50386 51281
net variable rate assetsliabilities 60435 66257 50406 50631
 £ interest rate € interest rate
 2010 2009 2010 2009
 £000 £000 £000 £000
profit before tax – gainloss
05 change in interest rate 302 331 252 253
05 change in interest rate 302 331 252 253
the fair value of financial assets and liabilities is not materially different from the book value recorded at 30 april 2010 and 2009 92     aniteannual report and accounts 2010
financial statements
 notes to the company accounts  continued 
17 financial risk management continued
f market risk – foreign currency
foreign currency sensitivity analysis
the table below shows the company’s currency exposures in the profit and loss account arising from the monetary assets and monetary 
liabilities of the company that are not denominated in sterling its functional currency the sensitivity analysis below is based on a 10 
appreciationdepreciation of euro against sterling applied to the net monetary assets or liabilities denominated in this currency at reporting 
date the sensitivity analysis includes amounts owed by the group undertakings
  €denominated
   2010 2009
   £000 £000
monetary assets   20 650
monetary liabilities   50386 51281
net monetary liabilities   50406 50631
  € currency
   2010 2009
   £000 £000
profit before tax – gainloss
10 depreciation   4572 4558
10 appreciation   5584 5603
in management’s opinion the sensitivity analysis is based on the monetary assets and liabilities at the reporting date and it therefore does 
not fully reflect the exposure during the year
g other price risks
the company is not exposed to other price risks apart from interest rate and foreign exchange risk
h credit risk
credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the company
the company’s maximum exposure to credit risk is as follows
   2010 2009
  note £000 £000
cash and cash equivalents  8 26564 42313
trade receivables  6 34 129
amounts owed by group undertakings   36736 38961
   63334 81403
the credit risk on cash and cash equivalents is limited because the counterparties to these assets are highly rated financial institutions  
in addition the company has further mitigated this risk by spending cash deposits over a range of financial institutions with no more than 
£50m being deposited with any one counterparty
the amounts presented in the table above are net of allowances for doubtful recoverability and foreseeable losses
the table below shows the movements in the provision for impairment of amounts owed by group undertakings
 amounts owed by
 group undertakings
    2010 2009
   £000 £000
at 1 may   17511 12453
charge for the year   92 7121
release in the year   586 2063
at 30 april   17017 17511 aniteannual report and accounts 2010     93
17 financial risk management continued
h credit risk continued
the ageing of the individually impaired amounts owed by group undertakings is as follows
 amounts owed by
 group undertakings
   2010 2009
   £000 £000
less than three months overdue   – 3210
three to six months overdue   – 1802
six to nine months overdue   – 23
nine to twelve months overdue   – 23
more than twelve months overdue   17017 12453
    17017 17511
the ageing of the trade receivables and amounts owed by group undertakings excluding those that have been impaired is as follows
  amounts owed by 
 trade receivables group undertakings
  2010 2009 2010 2009
 £000 £000 £000 £000
not past due 26 128 551 325
past due
less than one month overdue – – 912 1234
one to two months overdue 8 1 326 2018
two to three months overdue – – 7 1732
more than three months overdue – – 34940 37116
 8 1 36185 38636
balance at 30 april  34 129 36736 38961
the credit quality of those debts owed by group undertakings that are past due but not impaired has been assessed at the reporting date 
and has not significantly changed there is no reason why these amounts will not be recovered in due course
i liquidity risk
the company’s objective is to maintain a balance and continuity of funding and flexibility through the use of bank overdrafts and bank 
syndicated facilities working capital requirements are mainly funded through dividend income from its subsidiary undertakings
the group’s uk overdraft facility was renewed during the year at £5m net 2009 £5m net the amount drawn down under these 
facilities at 30 april 2010 and 2009 was £nil
the company is a guarantor of the group’s overdraft and syndicated revolving credit facilities of £40m 2009 £45m of which £25m 2009 
£25m was undrawn at 30 april 2010 the company is also a party to an unlimited omnibus setoff arrangement to secure the liability of the 
company and certain group companies with lloyds tsb bank plc
maturity profile
the table below summarises the maturity profile of the group’s undiscounted cash flows of the financial liabilities which approximates their 
fair value and the earliest date on which the group is required to pay
 less than one year
    2010 2009
   £000 £000
trade payables   417 584
amounts owed to group undertakings   53271 65648
    53688 66232 94     aniteannual report and accounts 2010
additional information
 glossary of terms  
2g  the second generation of mobile phone technologies including 
gsm and cdma introduced data services for mobiles eg sms  
text messaging
3g  third generation of mobile phone technologies enabled high
speed downlinkuplink packet access hsdpahsupa
3gpp  3rd generation partnership project – collaboration of groups 
of telecommunications associations to make globally applicable 
mobile phone system specifications
4g  a fourthgeneration system is expected to provide a 
comprehensive and secure allip based solution where facilities such 
as ip telephony ultrabroadband internet access gaming services 
and streamed multimedia may be provided to users
capital expenditure  includes the aggregate of capitalised 
property plant and equipment additions and capitalised  
software licences
cdma  code division multiple access technology
conformance toolset  conformance toolset tests the 
individual protocol stack layers in a wireless device to ensure 
compliance with the latest industry standards
development toolset  a comprehensive suite of tools  
which supports all phases of wireless terminal development from 
presilicon protocol module development through to systems 
integration and verification
drive test  a typical means of collecting information on cellular 
networks’ coverage and quality a car containing cellular network 
measurement tools is driven a predefined route
e2e  end to end
ebitda  earnings before interest tax depreciation and amortisation
emea  europe middle east and africa
erp  enterprise resource planning – a computerbased system 
used for managing internal and external resources
gcf  global certification forum – a regulatory body to give 
operators confidence in the interworking of new mobile terminals
gsm  global system for mobile communications originally 
groupe spécial mobile the world’s most popular standard for 
mobile telephony systems it differs from predecessor technologies 
in that signalling and speech channels are both digital and is 
therefore considered a 2g mobile phone system
hosting  a serviced computer facility within which companies can 
house their servers so that they do not need to construct their own 
secure airconditioned computer room within their own premises
lte  long term evolution is the latest standard in mobile 
air interface technology it is a project of the 3rd generation 
partnership 3gpp
mno  mobile network operator
mbps  megabits per second
net cash  cash and cash equivalents less bank borrowings
oss  open source software
postprocessing tools  tools for analysing collected network 
measurement data offline typically involve simultaneous analysis 
of several files and calculation of statistics from measurement files
private application cloud  cloud computing is a term used  
to describe a facility where a company can rapidly provide additional 
resources to support a software application it is using within an saas 
environment
rat  radio access technologies include 2g onwards
saas  software as a service a company lacking both the 
infrastructure and software licence can access a business application 
through its browser on payment of a fee to the service provider
sas  a simpletouse network simulator solution that enables 
you to quickly evaluate wireless devices in the integration or 
interoperability testing phase
sas lite  an easytouse network simulator solution for “real life” 
mobile device application and performance testing
sath  a unique pcbased protocol test solution for single rat  
or multirat protocol stack software
smartphone  a mobile phone which incorporates advanced 
capabilities including email and internet access
tdlte  time division duplexing lte – variant that will be adopted 
in china
tdscdma  time divisionsynchronous cdma a cdma variant 
developed by chinese vendors which is claimed to offer high data 
rates and greater coverage
tier 1 customers  leading handsetchipset vendors
wimax  worldwide interoperability for microwave access –  
a telecommunications protocol that provides fixed and fully mobile 
internet access aniteannual report and accounts 2010     95
 shareholder information 
additional information
shareholder enquiries
equiniti limited maintains the company’s register of members if any of your details change or if you have any queries regarding your 
shareholding please contact the registrars at
equiniti limited 
aspect house  
spencer road 
lancing 
west sussex bn99 6da 
uk
t 0871 384 2181 international 44 121 415 7047
textphone for shareholders with hearing difficulties 0871 384 2255 international 44 121 415 7028 
equiniti also offers a range of shareholder information on line at wwwshareviewcouk
share dealing service
shareview dealing a telephone and internet share dealing service is provided through equiniti and is a convenient way to sell your anite plc 
shares or add to your holding commission is 15 of the value of the transaction on the first £50000 with a minimum charge of £25 and 
02 thereafter for telephone dealing and 1 with a minimum of £20 for internet dealing for telephone dealing call 08456 037 037 between 
800am and 430pm monday to friday and for internet dealing log on to wwwshareviewcoukdealing you will need your shareholder 
reference number as shown on your share certificate if you wish to sell or your debit card number if you wish to buy
anite corporate individual savings account isa
a stocks and shares isa is now available to anite plc shareholders through equiniti financial services limited for further details please go to 
wwwshareviewcoukdealing or contact customer services on 0845 300 0430 international 44 121 415 0105
multiple accounts on the shareholder register
if you have received two or more copies of this document it may be because there is more than one account in your name on the 
shareholder register this may be caused by either your name or address appearing on each account in a slightly different way for security 
reasons the registrars will not amalgamate the accounts without your written consent so if you would like any multiple accounts combined 
into one account please write to equiniti at the above address
sharegift
sharegift is a charity share donation scheme for shareholders administered by the orr mackintosh foundation it is especially for those who 
may wish to dispose of a small parcel of shares the value of which makes it uneconomic to sell on a commission basis further information 
can be obtained at wwwsharegiftorg or from equiniti
financial calendar
annual general meeting 16 september 2010 
halfyear end 31 october 2010 
preliminary announcement of halfyear 201011 results december 2010 
financial year end 30 april 2011 
preliminary announcement of 201011 results july 2011
dividend payment timetable
exdividend date 15 september 2010 
declared at annual general meeting 16 september 2010 
record date 17 september 2010 
payment date 26 october 2010 96     aniteannual report and accounts 2010
additional information
  advisers  
financial advisers 
jpmorgan cazenove
10 aldermanbury 
london ec2v 7rf 
uk
rbs hoare govett
250 bishopsgate 
london ec2m 4aa 
uk
financial pr advisers
hogarth
no1 london bridge 
london se1 9bg 
uk
auditors
deloitte llp
chartered accountants 
london 
uk
 offices 
registered office
anite plc
353 buckingham avenue 
slough berkshire sl1 4pf 
uk 
t 44 0 1753 804000 
f 44 0 1753 804497
company number
1798114
bankers
lloyds tsb bank plc
25 gresham street 
london ec2v 7hn 
uk
registrars
equiniti limited
aspect house 
spencer road 
lancing  
west sussex bn99 6da 
uk
solicitors
simmons  simmons
city point 
one ropemaker street  
london ec2y 9ss 
uk
stockbrokers
jpmorgan cazenove
10 aldermanbury 
london ec2v 7rf 
uk
handset testing
head office
automation house 
ancells business park 
harvest crescent 
fleet 
hampshire gu51 2uz 
uk
network testing
head office
kiviharjunlenkki id 
oulu 90220 
finland
travel
head office
353 buckingham avenue 
slough berkshire sl1 4pf 
uk designed and produced by 85four
this report is printed on hello silk paper this paper is made from 100 virgin wood fibre from wellmanaged  
forests independently certified according to the rules of the forest stewardship council fsc it is manufactured  
at a mill that is certified to iso14001 and emas environmental standards the mill uses pulps that are totally  
chlorine free tcf and some pulp is bleached using an elemental chlorine free ecf process the inks in printing  
this report are all vegetablebased
printed by pureprint iso14001 fsc certified and carbon neutral
cert no sgscoc0620 anite plc
353 buckingham avenue
slough
berkshire
sl1 4pf
uk
t 44 0 1753 804000
f 44 0 1753 804497
wwwanitecom


Summary:
 2     aniteannual report and accounts 2010
overview
this annual report contains forwardlooking statements these forwardlooking statements are not guarantees of future performance rather they are based on current views 
and assumptions and involve known and unknown risks uncertainties and other factors that may cause actual results to differ from any future results or developments expressed 
or implied from the forwardlooking statements each forwardlooking statement refers only to the date of the particular statement and save to the extent required by the 
applicable law or regulation we do not undertake any obligation to update or renew any forwardlooking statement
travel
anite supplies systems to help leisure travel 
companies run their businesses profitably 
continuing market consolidation results in 
fewer companies managing ever larger 
volumes of travellers our technology enables 
them to achieve this while managing costs 
offering an increasing range of products and 
improving productivity and customer service
network testing 
anite helps network operators and  
basestation manufacturers manage  
their businesses efficiently we supply a 
range of tools to enable them to collect  
and analyse data on coverage and 
performance and to check that networks 
are strong enough to minimise “dropped” 
calls and that phones will work on  
different operators’ networks
handset testing
anite helps chipset and handset 
manufacturers design efficient mobile 
phones and bring them to market quickly 
and costeffectively our systems enable  
the manufacturers to ensure that their  
new products conform to industry 
standards meet endcustomers’ 
expectations and are able to communicate 
with other devices on all networks
 anite at a glance 
operating highlights
  wireless
   successful launch of anite 4g lte product range
   increased investment in rd £132m 2009 £108m
   trading improvement in second half in both handset  
and network testing
   good q4 progress
  travel
   underlying trading in line with rebased expectations
   further progress with comres tui germany golive
   initial orders from tui uk and rewe germany 
  orders
   intake £823m 2009 £776m
   closing order book £624m 2009 £593m 
   booktobill ratio 10 2009 09
divisional structure
travel
financial highlights adjusted
1
  revenue £788m 2009 £901m
  operating profit £119m 2009 £200m
  operating margin 151 2009 222  
–  operating margins of 14 for wireless  
and 24 for travel
  profit before tax £99m 2009 £181m
  basic earnings per share 24p 2009 44p
  net cash £298m 30 april 2009 £273m 
  swap liability capped at £216m
statutory results
  revenue from continuing operations £788m 2009 £901m
  operating loss from continuing operations £18m 2009 
profit £94m
  loss from continuing operations before tax £40m 2009 
profit £64m
  loss for the period £34m 2009 profit £363m
  basic loss per share 12p 2009 earnings per share 113p
  diluted loss per share 12p 2009 earnings per share 108p
  proposed final dividend 065p per share 2009 065p  
making a total of 095p 2009 095p
1  adjusted results are for continuing operations before sharebased payments 
impairment of goodwill impairment and amortisation of acquired intangible 
assets restructuring costs other gains and losses and recycled hedge losses
wireless
nt
nt
nt