mentmore plc
park house
14 pepys road
london sw20 8nh
t 020 8946 3159
e investorrelationsmentmoreplcuk
enquiriesmentmoreplcuk
w wwwmentmoreplcuk mentmore plc annual report 2003
mentmore plc annual report 2003 mentmore plc park house 14 pepys road london sw20 8nh company number 307397
designed by rcd london limited produced by rcdcreative consortium photography graeme harris printed by svtwo
contents
01 financial highlights
02 chairman’s statement
04 chief executive’s statement
06 operating review
16 financial review
19 board of directors
20 directors’ remuneration report
26 corporate governance
28 directors’ report
30 statement of directors’  
responsibilities
31 independent auditors’ report
32 group profit and loss account
33 balance sheets
34 group cash flow statement
34 reconciliation of net cash flow
to movement in net debt
35 statement of total recognised
gains and losses
35 reconciliation of movements
in shareholders’ funds
36 accounting policies
38 notes to the financial statements
57 five year financial summary
58 advisers
personal storage
the group has 53 centres
providing selfmanaged
storage units for personal
customers and small and
mediumsized businesses
on flexible terms
records management
a partnership with iron
mountain incorporated
providing records and data
management services
across europe
serviced business space
the group has 225
serviced business space
centres offering trading
or office space on flexible
terms to businesses 
of all kinds mentmore plc annual report 2003 1
corporate statement and financial highlights
we aim to be the leading space management company providing
individuals and industry with specialised storage space and item
management where customer service and access are critical
• total operating profit before property disposals goodwill
amortisation and exceptionals was £311 million
– personal storage increased 56 to £80 million
– records management increased 570 to £56 million
– serviced business space reduced 37 to £175 million
• net debt of £2063 million giving gearing of 130 2002 71 
1
earnings before interest taxes depreciation amortisation and property profits
ebitda
1
£391m up113
profit before tax
£187m down57
earnings per share
675p down102
before goodwill amortisation and exceptionals overview
the year has seen a major change in the group’s
strategic direction with the announcement in
december 2002 that the group planned to focus on
its personal storage and records management
operations and to sell its serviced business space
division “sbs” 
we are pleased to announce that we have
conditionally agreed to sell sbs to ashtenne
holdings plc for a consideration of £1890 million
the sale is conditional on shareholder approval and
this is the subject of a circular to shareholders issued
today  
the sbs disposal gives rise to provisions for
impairment and exceptional costs which before tax
amount to £617 million and lead to the company
having a deficit on its distributable reserves
we are therefore also asking for shareholder approval
for a capital reorganisation as a part of our strategy
to optimise the group’s capital structure including
the resumption of the payment of dividends and an
intention to return cash to shareholders when
appropriate 
your board strongly recommend that you vote in
favour of both resolutions 
group turnover from continuing operations increased
by 91 to £821 million 2002 £753 million and
profit on ordinary activities before interest goodwill
amortisation and exceptionals increased by 57 to
£311 million 2002 £294 million 
martin nye joined us as group chief executive in mid
january and is making a major contribution to the
group his priority has been to develop the group’s
future strategy details of our plans are included in 
his report
strategic developments
our review of the group’s strategic options concluded
that notwithstanding significant investment in sbs
over a number of years returns would not meet
those originally anticipated and that the group should
focus on its personal storage and records
management operations these offer stronger market
positions and higher future returns than sbs your
board therefore decided to take advantage of
beneficial market conditions for industrial properties
of the type comprising sbs by disposing of the
division
we have taken an important first step in
implementing our strategy by entering into a
conditional agreement to sell the sbs business 
the sale process has been comprehensive and your
board believes that this transaction optimises value
for shareholders the net cash proceeds of the
disposal will immediately be used to reduce the
group’s debt
there will be a loss to the group on the disposal of
£617 million primarily as a result of the writeoff of
goodwill arising on the acquisition of birkby plc in
1999 the company will have a deficit on its
distributable reserves of £285 million your board
therefore today announces a capital reorganisation
which subject to certain approvals will eliminate this
deficit enabling dividend payments and a return of
capital to shareholders when appropriate
following the sale of sbs the significance of iron
mountain europe “ime” our joint venture records
management company within the group will increase
we have started discussions with iron mountain
incorporated as to how we best recognise the value
of our investment in ime we are discussing many
options and there is a commitment from both parties
to finding a solution that benefits all the discussions
will continue over the coming months but we are
more concerned with finding the right solution rather
than a quick solution
2 mentmore plc annual report 2003
chairman’s statement
nick smith 
chairman trading
results for the year are overshadowed by pre tax
exceptional costs of £664 million of which £655
million relates to losses arising as a result of the
disposal
group turnover from continuing operations increased
by 91 to £821 million 2002 £753 million and
profit on ordinary activities before interest goodwill
amortisation and exceptionals grew by 57 to 
£311 million 2002 £294 million ebitda before
exceptional costs increased by 113 to 
£394 million 2002 £354 million
against a difficult economic and competitive
environment personal storage operating profit before
goodwill amortisation increased 56 to £80 million
2002 £76 million this was a result of market
pressures to which we were slow to react we are
addressing the issues of management in this division
and expect to see improvements over coming
periods
the group’s share of the operating profit before
goodwill amortisation of ime grew by 570 to 
£56 million 2002 £35 million and ebitda by
498 to £77 million 2002 £51 million these
results demonstrate the strength of this business 
and the fact that our investments in management
systems and infrastructure are now paying off
serviced business space operating profits before
goodwill amortisation declined 37 to £175 million
2002 £182 million
capital reorganisation and dividend
there will be no final dividend this year as the
company does not have sufficient distributable
reserves if shareholders support the capital
reorganisation proposals we shall seek the required
approval from the high court assuming all consents
are received this will put us in to a position from
which we shall be able to return funds to
shareholders when appropriate
it would be our intention to resume dividend
payments and to pay a special oneoff interim
dividend of 089p per ordinary share in lieu of this
year’s final dividend as soon as the requisite
approvals for the capital reorganisation are obtained
the capital reorganisation will also allow the
company to initiate a programme of returning cash to
shareholders 
amended banking arrangements have been
negotiated for the continuing group which will
support general working capital requirements and
growth this may involve proceeds being used to
fund organic growth and if the directors consider
such investments appropriate acquisitions within the
personal storage and records management sectors
in addition at the annual general meeting the
company intends to seek an authority from
shareholders for the power to purchase up to 10 of
its own ordinary shares for subsequent cancellation
the directors will only use this authority if in the light
of market conditions prevailing at the time they
believe that the effect of any purchase would be to
enhance earnings per share and be in the interests of
shareholders as a whole
people
in thanking our staff for their loyalty and support i
recognise that it was a year when the business
environment was difficult and where a great many of
our people were affected by the uncertainties
surrounding the sbs sale in these circumstances
their contribution has been exceptional
martin nye is now firmly established as group chief
executive and he has already taken on full
responsibility for the group’s trading he has led the
development of our ongoing strategy and will be
responsible for its delivery  following the annual
general meeting i shall move to the role of non
executive chairman i look forward to this change
which will be in line with plans announced this time
last year 
trading update and outlook
all of our businesses have made an encouraging start
to the new financial year and are trading in line with
our plans  investments in management and
processes are being made but we are not
anticipating a return on this investment until later in
the financial year the directors are confident of the
prospects and outlook for the continuing group in the
current financial year and are encouraged by the
prospects of the markets served by our two
continuing operations
as previously announced ime is participating in the
sale process for the records management business of
hays plc 
by focusing on personal storage and records
management businesses with strong market
positions and growth prospects we are providing a
firm base on which to implement a strategy of
delivering value to shareholders  
nick smith
chairman
9 july 2003 
mentmore plc annual report 2003 3 the last six months have seen good progress in our
plan to maximise the value inherent in mentmore for
shareholders
we announced in december 2002 our intention to
focus on our personal storage and records management
businesses and sell the serviced business space
“sbs” division that business has now been sold
subject to shareholder approval for £1890 million to
ashtenne holdings plc completion is scheduled for
31st july the sale allows us to focus on increasing
the value of our two higher growth higher return
businesses
whilst the proceeds from the disposal will
substantially reduce gearing and interest charges
there are some other financial consequences
• sbs contributed operating profit before goodwill
amortisation of £175 million in 2003 and earnings
per share of 286p in 2003 on a pro forma basis
which will not be repeated in 2004 
• provision for impairment and exceptional costs of
disposal of £617 million together with the write off
of other costs of £38 million relating to the
disposal are included in the 2003 results
• we are not able to pay any dividends although we
are initiating a capital reorganisation to address 
this situation 
4 mentmore plc annual report 2003
chief  executive’s statement 
turnover 
£821m
an increase of 61 on last year
profit before tax 
£187m
before goodwill amortisation and
exceptionals reduced by 57 on 
last year
martin nye
chief executive mentmore plc annual report 2003 5
we also announced last december that my first priority
as group chief executive was to develop a plan to
take the group forward with the completion of the
sale of sbs mentmore is focused on two valuable
businesses with good prospects for long term
growth you will see from the operating review that
follows that we have clear strategies for each
business to increase its value the highlights of our
strategy are as follows
• to improve the operational performance of personal
storage before further investments are made to
take advantage of the attractive growth
opportunities
• to continue to support the successful growth of iron
mountain europe “ime” whilst ensuring that the
value of our 499 shareholding in ime is fully
recognised
• to optimise the group’s capital structure including
an intention to return cash to shareholders when
appropriate
• to resume the payment of dividends as soon as
possible including making a special oneoff interim
dividend of 089p per share in lieu of the 2003 final
dividend and
• to review the group’s cost structure further when
the level of corporate activity diminishes to ensure
we have the appropriate overheads for the
restructured group
with this framework in place i am confident that we
can develop the business to deliver value for
shareholders
martin nye
chief executive
9 july 2003
this is my first report to you as chief executive i am pleased to tell you
that we have developed the detail of the groups future structure and
strategy to maximise shareholder value records management is
progressing well and although personal storage has not met its
ambitious growth targets we believe both businesses are well
positioned to build on their strong market positions 6 mentmore plc annual report 2003
spaces personal storage wimbledon
operating review mentmore plc annual report 2003 7
personal storage
operating profit
£80m
an increase of 56 for the year before
goodwill amortisation
increased space
30
from 12 new centres acquired
during the year
spaces personal storage™ centres provide individual lockable
storage units for use by private and business customers and is a
leading operator in the uk and in paris the market has been
growing in volume terms by 20 per annum for the last six years
and we anticipate further growth of 1015 per annum
the personal storage division accounts for 258 2002 259
of total operating profit excluding property disposals goodwill
amortisation and exceptionals for the year to 30 april 2003
spaces personal storage generated an operating profit of 
£80 million before goodwill amortisation 2002 £76 million 
an increase of 56 on the previous year
wwwspacesukcom
wwwunepieceenpluscom spaces personal storage is the largest provider of
selfstorage facilities in the uk and we also have a
good position in the paris market through une pièce
en plus “upp” personal storage contributed 
£80 million of operating profit before goodwill
amortisation this year which is 56 ahead of last
year’s total but includes the impact of the acquisitions
in 2002 
the market has been competitive particularly in
london and the south east where there has been an
increasing amount of new capacity over the last few
years coupled with a lower number of house moves
this has led to declining occupancy in a number of
our mature sites and a failure to achieve our growth
targets in our newer sites our response to these
challenges has been slow something we are now
addressing vigorously
stripping out the effect of acquisitions uk revenues
grew by 80 to £206 million 2002 £190 million
and operating profit before goodwill amortisation
decreased by 58 to £79 million 2002 £84
million including acquisitions revenue in the uk
grew by 222 to £233 million and operating profit
before goodwill amortisation grew by 32 to 
£86 million the revenues of upp grew by 473 to
£27 million 2002 £19 million and operating losses
before goodwill amortisation reduced to £06 million
2002 loss of £08 million
our total space capacity is 243000 sq metres which
is currently 65 occupied the uk occupancy level
declined from 67 last year although this was due in
part to the inclusion of the aardvark sites that were
40 full when we acquired them in september 2002
the average price achieved in the uk marginally
increased reflecting the competitive nature of the
market
we have analysed the uk self storage market in detail
and have concluded that it remains an attractive market
with good growth prospects and better than average
returns on capital when sites are mature the
market has been growing in volume terms by 
20 per annum for the last six years and based on
a detailed postcode level assessment of supply
and demand we forecast continuing growth of 
1015 per annum we believe that demand will be
less of a constraint on growth than the availability of
suitable properties
we also believe there is good longer term potential 
in europe but we are focusing on our existing
business in the uk and paris where there are plenty
of attractive growth opportunities spaces is well
positioned to take advantage of these as it is the uk
market leader with a national network of sites
attractive returns are available  the average pretax
return on capital employed of our mature sites is in
excess of 20 upp is also well positioned with a
strong management team and good infrastructure in
central paris
in the longer term we plan to have a rolling programme
of new site openings and to consider acquisition
opportunities but believe our short term focus should
be on maximising the value of the current business
our immediate priorities are to strengthen the
management team and to improve performance 
the business has grown quite rapidly by acquisition
and has not put in place the necessary processes
and resources 
we are addressing this with a number of new
appointments in operations and sales and marketing
which will enable us to tackle the 76500 sq metres
of available capacity we are also investing in
information systems to improve our sales and
administrative processes these changes will take
some time to impact performance holding back
profit growth this year but should have a very
positive impact next year 
8 mentmore plc annual report 2003
operating review continued
personal storage
key statistics
spaces personal 
storage uk upp
2003 2002 2003 2002
no of centres 46 34 7 7
total space capacity ‘000 sq m 2188 1660 242 242
current space utilisation  658 671 571 473
current annualised space revenue £m 221 174 30 21
other income  of space revenue 118 107 46 31 mentmore plc annual report 2003 9
we have a good position in the
paris market through upp 
the majority of our spaces personal storage centres
have now been rebranded the rebranding
enhances the benefits of providing efficient localised
and personal service to our customers 10 mentmore plc annual report 2003
operating review continued
iron mountain europe’s facility at isis reach belvedere  revenue
£726m
of which £362 million is attributable to
mentmore an increase of 308 on 
last year
operating profit
£112m
of which £56 million is attributable to
mentmore an increase of 570 on 
last year before goodwill amortisation
records management
mentmore plc annual report 2003 11
the market for records management is undergoing rapid
transformation to be a serious provider in this business it is no
longer good enough simply to provide space for secure records
storage customers are demanding more sophisticated
information management as well as faster retrieval better
tracking and more active management via the internet of their
paper documents and magnetic media
the records management division accounts for 179 
2002 121 of total operating profit excluding property
disposals goodwill amortisation and exceptionals for the year 
to 30 april 2003 the division generated an operating profit of 
£56 million before goodwill amortisation 2002 £35 million 
an increase of 570 on the previous year 
wwwironmountaincouk 12 mentmore plc annual report 2003
operating review continued
iron mountain europe ime is our joint venture with
iron mountain incorporated the world’s leading records
management provider mentmore has a 499
shareholding in the joint venture our share of ime’s
operating profit was £56 million an increase of 57
on the previous year the records management division
accounted for 18 of total operating profit before
goodwill amortisation although with the disposal of
sbs this would have been 45 on a pro forma basis
ime has further strengthened its market position this
year with a number of significant customer wins and
small acquisitions to extend its capabilities outside of
the uk ime is one of three leaders in the £5 billion
european market for paper and electronic records
management we estimate that only 10 of the total
market is outsourced and expect continuing growth
of more than 15 per annum as legislation increases
and customers see the cost and service benefits of
outsourcing
ime has a diversified stable customer base of over
8000 customers across europe these customers
provide a strong predictable recurring revenue stream
with income from customers for records management
growing by about 68 per year through natural
“creep” of new records being produced ime benefits
from crossselling from iron mountain incorporated’s
north american customer base  22 of our new
sales last year came from such crossselling 
the business has invested over the last few years in
strengthening its management resources particularly
in sales and account management substantial
investment has also gone into developing new
facilities to accommodate growth improvements 
in facility labour and transportation effectiveness
have improved operating margins before goodwill
amortisation from 128 last year to 154 this
year the successful integration of the tdg
acquisition during the year also contributed to the
improved performance
our strategy is straightforward  to build on the
success achieved so far and to go for european
market leadership by leveraging the scale and
customer relationships we have in the uk and us
and expanding our footprint in continental europe
we see continuing good growth from developing our
relationships with key customers who are looking for
consistent levels of service across europe  
we believe we can grow organically through larger
outsourcing deals and by small bolton acquisitions
such as the recently completed acquisition of record
data in ireland this acquisition added new capabilities
customers and further scale and delayed the need to
build a new facility in dublin for another one to two
years
we are continuing to invest to deliver and support
strong growth over the next twelve months 
particularly in sales and marketing and in country
management in continental europe  
we are currently running at about 85 utilisation of
available capacity so we will need to invest in new
capacity as we are successful in winning new business
with the disposal of sbs the contribution from
mentmore’s share of ime to the group’s result will
increase significantly our joint venture
arrangements ensure both effective management
equality with our joint venture partner iron mountain
incorporated as well as appropriate protections for
both shareholders for dealing with issues that arise
we continue to work closely with our joint venture
partner to develop this business recognising that
since the joint venture was entered into more than
four years ago both the business and the market
have grown substantially we are considering ways
to ensure that both the value created so far and the
future growth prospects benefit mentmore and its
shareholders in a tangible way
records management the successful integration of the tdg acquisition
contributed to the improved performance of the
records management division
building on the success achieved so far
we see continuing good growth from
developing our key customer
relationships with consistent levels of
service across europe
mentmore plc annual report 2003 13 our national network of serviced work and retail space provides
flexible accommodation to a wide range of customers in an
everchanging environment our sme customers need space that
can be rapidly adapted to their specific requirements allowing
them to modify their accommodation as their circumstances
change
the serviced business space division accounts for 563 
2002 620 of total operating profit excluding property
disposals goodwill amortisation and exceptionals for the year 
to 30 april 2003 the division generated an operating profit of
£175 million before goodwill amortisation 2002 £182 million 
a reduction of 37 on the previous year
wwwimexspacesukcom
wwwinshopsretailcom
serviced business space
operating profit
£175m
a reduction of 37 on last year before
goodwill amortisation
revenue
£561m
an increase of 47 on last year
operating review continued
14 mentmore plc annual report 2003 mentmore plc annual report 2003 15
the serviced business space division – comprising
the imex argo and in shops businesses – contributed
£175 million operating profit before goodwill
amortisation in the year a decrease of 37
compared to the previous year 2002 £182 million
assuming the sale of the division is completed on
31st july the results for 200304 will include just
three months contribution 
these results have been achieved despite a
challenging economic environment and the further
investment that has been made in the infrastructure
and management of the division
imex the largest part of the division saw operating
profit grow by 57 and managed to maintain an
overall occupancy level of around 80 the
investment in sales and marketing have led to record
numbers of new customers joining imex but
unfortunately this has primarily been offset by larger
customer losses than normal argo which saw
operating profits grow by 101 benefited from
continuing investment in the upgrading of sites 
in shops has had a very difficult year and the
refurbishment programme has taken longer than
planned as a consequence their operating profits
fell by 373
inshops selections provides small units to
independent traders within centres that
represent good quality retailing locations  
the imex spaces centre
at redditch in the west
midlands delivers flexible
business accommodation
for a wide range of
customers whatever
their needs group results
the group’s profit and loss is materially affected by
nontrading items in the current year principally the
provision for impairment and exceptional costs of
disposal of £617 million in respect of the serviced
business space ”sbs” division and £38 million of
other costs associated with this disposal the
following summary of the group’s results provides an
analysis of trading and nontrading items in
comparison to last year
2003 2002
for the year ended 30 april £million £million
turnover 821 774
continuing operations 821 753
discontinued activities – 21
trading profit 326 319
total operating profit 311 294
profit on disposal of fixed assets 15 25
net interest payable 123 95
profit before tax – trading 203 224
profit on disposal of investment – 96
provision for loss on disposal of sbs 617 –
other exceptional costs 47 –
goodwill amortisation 77 71
lossprofit before tax 538 249
underlying earnings per share 675p 752p
basic lossearnings per share 3185p 1007p
 before goodwill amortisation and exceptionals
group turnover above which excludes our share
from joint ventures increased by 61 to 
£821 million 2002 £774 million of this £27 million
arose from acquisitions in the year excluding
discontinued activities group turnover increased by
91 our share of turnover from the iron mountain
europe “ime” joint venture increased by 308 to
£362 million 2002 £277 million
trading profit which includes profits shown as
exceptional relating to the disposal of fixed assets
increased by 23 to £326 million 2002 £319
million profits from fixed asset disposals can
fluctuate from year to year excluding these 
trading profits increased by 57 to £311 million
2002 £294 million of which £08 million arose 
from acquisitions in the year
the profit on disposal of fixed assets in 2002 of 
£25 million includes our £10 million share of joint
venture profit on disposal of fixed assets and 
£15 million relating to the disposal of the dutch 
sbs business that was effectively the sale of two
trading properties
ebitda for the group before exceptional costs
increased by 113 to £394 million 2002 £354
million records management delivered the strongest
growth with our share of their ebitda increasing by
498 to £77 million 2002 £51 million ebitda in
personal storage and sbs grew by 117 and 18
to £106 million 2002 £95 million and £213 million
2002 £209 million respectively
net interest payable before exceptional costs
increased by £28 million to £123 million 
2002 £95 million due to debt funding of
acquisitions and capital expenditure interest cost 
for the year was covered 252 times 2002 308
times by trading profit
the group’s tax charge on trading profits before tax was
£65 million 2002 £62 million representing an effective
rate of 318 2002 279 there is generally no tax
charge attributable to profits that arise on the disposal
of fixed assets due to the availability of certain reliefs
excluding profit on the disposal of fixed assets and tax
adjustments relating to prior years the effective rate of
tax was 383 2002 350
16 mentmore plc annual report 2003
financial review
clive drysdale
finance director mentmore plc annual report 2003 17
before goodwill amortisation and exceptional items
profit after tax reduced by £13 million to £123 million
2002 £136 million on the same basis underlying
earnings per share reduced to 675 pence 
2002 752 pence
the provision of £617 million for impairment and
exceptional costs of disposal of sbs is required
because the book value of the net assets being sold
is in excess of the net sales proceeds £650 million
of the net assets of sbs relates to goodwill of which
£540 million has been impaired in 2003
other exceptional costs in the year of £47 million
primarily relate to the cost of restructuring the
funding of the group as part of the process of
disposing of sbs following this debt levels will
substantially reduce and amended bank facility
arrangements will need to be entered into
the profit on disposal of investment of £96 million in
2002 arose following the sale of the group’s investment
in workspace group plc in may 2001
after taking into account goodwill amortisation and
exceptional items the group reported a loss after tax
of £579 million 2002 profit of £182 million and a
basic loss per share of 3185 pence 2002 basic
earnings per share of 1007 pence
dividends
the directors are unable to recommend a final
dividend due to a deficit on distributable reserves 
of £285 million it is our intention to declare a
special oneoff interim dividend of 089 pence per
share in lieu of a final dividend as soon as the
requisite approvals for the capital reorganisation are
obtained this special dividend taken together with
the interim dividend of 0425 pence per share paid
on 7 april 2003 gives an aggregate of 1315 pence
per share which represents an increase of 5 on
the previous year
cash flows
the group continues to be highly cash generative
with pre exceptional operating cash flow as a
percentage of operating profit before goodwill
amortisation and exceptional items being 
1146 2002 1215
operating activities before exceptional costs
generated £292 million 2002 £315 million which
were primarily used to fund capital expenditure of
£175 million 2002 £393 million and amounts in
relation to ime of £68 million 2002 £100 million
investments in acquisitions cost £164 million 
2002 disposal proceeds of £25 million and were
funded by debt
net interest payments increased by £57 million to
£125 million 2002 £68 million which includes 
£23 million relating to exceptional financing charges
tax payments reduced by £05 million to £46 million
2002 £51 million
cash outflow before financing was £342 million
2002 inflow £07 million
balance sheet
intangible assets which comprise goodwill reduced
by £475 million of this £540 million relates to the
impairment charge associated with the disposal of
sbs goodwill arising on acquisitions in personal
storage amounted to £115 million the balance
relates to amortisation in the year and foreign
exchange differences
current assets include £192 million in relation to the
development of ime’s records centre in south east
london this was sold in june to a third party who leased
the building back to ime on an arm’s length basis
net debt at 30 april 2003 was £2063 million 
2002 £1532 million and comprised net bank
borrowings of £1959 million 2002 £1492 million
and deferred acquisition loan notes of £104 million
2002 £40 million net assets at 30 april 2003
were £1563 million 2002 £2157 million giving
gearing of 130 2002 71
equity shareholders’ funds reduced by £574 million 
in the year as a result of the retained loss for the year
of £586 million less £04 million on shares issued in
respect of share option exercises and £08 million of
currency translation differences
treasury management
the group is primarily exposed to interest rate liquidity
and foreign exchange risks these are managed at
group level and are controlled by the board treasury
management is undertaken to minimise these risks
with transactions only being made in relation to
underlying business requirements the group’s policy
is that there are no transactions undertaken of a
speculative nature and financial instruments are not
traded the group’s other policies are outlined below
interest rate risk
the group’s policy is to minimise interest cost exposure
to interest rate movements on group borrowings is
managed by maintaining a mixture of fixed and variable
rate financing fixed interest rates are usually achieved
through the use of interest rate swaps the group also
uses financial instruments which cap interest rate
exposure and allow interest rates to fluctuate within
upper and lower limits the relevant proportion of
each type of financing is adjusted to take account 
of prevailing market conditions
at 30 april 2003 £nil of group borrowings were fixed
and £75 million operated within specified upper and
lower interest rate limits
liquidity risk
the group’s policy is to maintain committed borrowing
facilities with a maturity date exceeding at least twelve
months to meet anticipated borrowing requirements
in relation to its current business plan the primary
source of funds is bank debt the level and type of
facility is regularly reviewed particularly in the event
of corporate transactions  at 30 april 2003 the group’s uk committed banking
facilities amounted to £250 million the principal
elements of these were
• a £125 million amortising term loan facility with all
but £80 million having a repayment due by
september 2007
• a £125 million revolving credit facility with a bullet
repayment in september 2007 in addition the
group has bank facilities in france amounting 
to € 24 million
as at 30 april 2003 the group had unutilised bank
facilities of £47 million during the year the group
complied with all applicable debt covenants
as part of the disposal of sbs an underwritten
amendment to our existing uk banking facilities has
been negotiated whereby subject to the disposal 
the facility is reduced to £70 million on the basis 
of a revolving credit facility with a bullet repayment 
in september 2007
foreign exchange risk
although the group is becoming more exposed to
foreign exchange risk due to its expansion in continental
europe this still remains immaterial to the group as 
a whole the group’s policy covers three areas of
exposure – balance sheet net assets earnings and
transactions
• where considered material balance sheet net
assets are protected from currency exposures by
borrowing in relevant currencies
• at present the group does not protect earnings of
overseas operations against currency fluctuations
• foreign currency transactions where significant are
protected by way of forward exchange contracts
at 30 april 2003 the group had no forward exchange
contracts
accounting standards
the group’s accounting policies fully reflect the
requirements of the accounting standards board
no new applicable financial reporting standards
have been issued in the year
under the transitional arrangements contained within
frs 17 additional defined benefit pension scheme
disclosures have been given in the financial
statements this year in accordance with frs 17
retirement benefits continue to be accounted for
under the rules set out in ssap24 
18 mentmore plc annual report 2003
financial review continued
operating cash flow 
1146
of operating profit versus
1215 last year
gearing 
130
as at 30 april 2003 2002 71 mentmore plc annual report 2003 19
1 nick smith chairman joined the board in
january 1995 aged 63 he was formerly president
of kimberlyclark europe and has considerable
business experience in the manufacture and
marketing of consumer products
2 martin nye chief executive joined the board in
january 2003 aged 39 he has a successful track
record in the support service industry and until recently
was chief executive at endeva the uk’s leading home
delivery and service operation for electrical goods 
prior to this he held a number of senior executive roles
within exel plc most recently as president global
technology division
3 clive drysdale finance director and company
secretary joined the board in november 1995 aged
40 he is a chartered accountant and previously spent
nine years with price waterhouse
4 brian howes obe dl independent nonexecutive
director joined the board in february 1997 aged 65 he
is chairman of finance wales plc a council member of
prince’s trust cymru and a director of young enterprise
wales formerly president of kimberlyclark europe’s
away from home sector
5 leigh collins independent nonexecutive director
joined the board in june 2000 aged 55 he was a
founding director of the stockbroking firm collins
stewart where he was head of corporate finance
he is a director of european telecom plc quarto
group inc and bank restaurant group plc
6 richard wright senior independent nonexecutive
director joined the board in june 2002 aged 57
he is chairman of national savings and investments
and was until his retirement director of sales ford
motor company uk he is also a nonexecutive
director of api plc
board of directors
1
3
5
2
4
6 20 mentmore plc annual report 2003
directors’ remuneration report
the directors present the directors’ remuneration report for the year ended 30 april 2003 
this report has been prepared in accordance with the directors’ remuneration report regulations 2002 which
introduced new requirements in respect of financial periods ending on or after 31 december 2002 the report
also meets the relevant requirements of the listing rules of the financial services authority
as required by the directors’ remuneration report regulations 2002 a resolution to approve this directors’
remuneration report will be proposed at the company’s annual general meeting
the auditors are required to report to the shareholders on the “auditable part” of the directors’ remuneration
report and to state whether in their opinion the “auditable part” of the directors’ remuneration report has been
properly prepared in accordance with the companies act 1985 this report therefore has separate sections
containing unaudited and audited information
unaudited information
remuneration committee
the remuneration committee consists wholly of independent nonexecutive directors the following independent
nonexecutive directors served as members of the remuneration committee during the year and in the period
to 8 july 2003 unless otherwise disclosed
brian howes chairman of the remuneration committee
leigh collins
richard wright from 12 june 2002
anthony lewis to 4 september 2002
the remuneration committee makes recommendations to the board within agreed terms of reference concerning
the company’s framework of executive remuneration the remuneration committee determines the remuneration
and benefits packages of the executive directors considers their service contracts salaries other benefits
including bonuses and participation in the company’s share option plans and other terms and conditions of
employment including any compensation payments on termination of office it also agrees terms for their
appointments as nonexecutive directors of other companies and other organisations
the chairman nick smith is invited to attend meetings when appropriate to provide advice to the
remuneration committee however nick smith is not present when matters affecting his own remuneration
arrangements are considered and no director takes part in discussions concerning his own remuneration
remuneration policy
the company’s remuneration policy is that the remuneration package of the executive directors should be
sufficiently competitive to attract retain and motivate directors to achieve the company’s objectives in framing
its remuneration policy the company aims to attract and retain directors to run the company successfully
without making excessive payments
the company’s remuneration policy for executive directors is prudently designed to take into account
individual and company performance market comparisons and competitive pressures in the industry external
comparisons consider comparable roles in similar organisations in terms of size market sector and the nature
of the business
there are four main elements to the remuneration packages of the executive directors and other senior executives
• basic salary including benefits
• annual bonus awards
• share option schemes and
• pension arrangements
the remuneration committee considers that it is important to link a proportion of the total executive remuneration
package to individual and company performance in 2003 the performance related elements of the executive’s
remuneration package was 50 for martin nye and 17 for clive drysdale nick smith does not have a bonus
element as part of his remuneration package clive drysdale will be entitled to a bonus of £54000 conditional mentmore plc annual report 2003 21
on the successful disposal of sbs in addition following the sale the performance related element of his
remuneration package is to be reviewed the proportion of performance related remuneration for martin nye is
not anticipated to increase in 2004
the company’s policy is for executive directors to have one year rolling service contracts that provide for 
a one year’s notice period
basic salary
basic salaries are reviewed annually by the remuneration committee prior to the beginning of each year and
increased where it believes that adjustments are appropriate to reflect performance increased responsibilities
andor market pressures salary increases for 2003 averaged 28 with the largest increase being 56
salaries were reviewed again in april 2003 and remained unchanged with the exception of clive drysdale
whose salary was increased by 40 for 2004
other benefits for executive directors include a car allowance and private medical cover for the director and
immediate family the company also has a permanent health insurance policy to provide cover for the
executive directors
annual bonus awards
the annual bonus plan focuses on annual objectives and is designed to reward the achievement of results
against those objectives targets are set before the beginning of the financial year and performance is reviewed
throughout the year the principal objectives for each executive director in the annual bonus plan relate to the
achievement of profit and cash flow targets based on the group’s budget for 2003 martin nye had a specific
target of delivering the group’s strategic plan by the end of the financial year and his bonus entitlement was
primarily based on this targets are generally set at group level but account may also be taken of the
performance of the individual operations for which executive directors are responsible annual performance
related bonuses have been set at and will generally remain at a maximum of 50 of basic salary for martin
nye as noted earlier clive drysdale’s performance related bonus is to be reviewed following the sale of sbs
bonuses are nonpensionable
share option schemes
share option schemes are seen as being an effective way of aligning the long term interests of executive
directors with those of shareholders all share option schemes have been approved by shareholders and are
targeted at an improvement in the group’s earnings per share over and above the retail price index or specified
growth targets these performance conditions must be met before any options can be exercised the price at
which shares may be acquired is the market price within a specified number of days prior to the date of grant
options which are also issued to employees in the group are granted from time to time on a discretionary
basis as determined by the remuneration committee based on each individual’s performance
the main share option scheme under which share options have been granted to the executive directors is 
the mentmore abbey senior executive share option scheme other than the share save scheme this is the
only scheme from which the current executive directors will be granted options the performance condition for
this scheme is that the group’s earnings per share must grow by an annual compound growth of 20 over a
period of five consecutive financial years to obtain full entitlement no part of the option will be exercisable
unless the annual compound growth is at least 10 at 10 per annum compound growth 10 of the shares
under option will be exercisable with the percentage exercisable increasing proportionately from 10 to 100
for annual growth between 10 and 20
pension arrangements
clive drysdale accrues pension benefits through the group’s defined benefit scheme and martin nye through
a defined contribution scheme the defined benefit scheme is a funded and approved final salary pension
scheme the scheme provides an accrual of benefits that is designed to provide a pension equivalent to two
thirds of the directors’ final salary on retirement at age 60 with twothirds of the director’s pension for the
surviving spouse pensions are based on the executive’s basic annual salary bonuses other benefits and
incentives are not pensionable directors’ remuneration report continued
22 mentmore plc annual report 2003
nonexecutive directors
the nonexecutive directors do not have service contracts the nonexecutive directors have letters of
appointment concerning amongst other things the initial terms for which they are appointed a general
statement of their role and duties the fees they will receive as a director and the supplementary fees receivable
for additional work
the fees of nonexecutive directors are determined by the full board
the basic fee for nonexecutive directors which includes membership of committees is £25000 per annum
the nonexecutives are not eligible for bonuses pension benefits share options or other benefits
performance graph
the following graph shows the company’s performance for the last five years as measured by the total
shareholder return tsr with dividends reinvested for equity shareholders of mentmore plc compared with
the tsr for the ftse support services index this index was chosen as it represents the sector index of which
the company is a constituent member
service contracts and letters of appointment
the company’s policy is for the executive directors to have one year rolling service contracts that provide for 
a one year’s notice period the service contract of the executive directors who served during the year ended 
30 april 2003 include the following terms
unexpired notice
date of terms period
executive directors contract months months
np smith 1 april 1996 rolling one year 12
cd drysdale 21 may 1998 rolling one year 12
mj nye 13 january 2003 rolling one year 12
kds taylorsmith resigned 12 june 2002 26 july 1999 na 12
the service contracts of executive directors contain a provision for a compensation payment that is payable when
the requisite 12 month’s notice is not given to the director in the event of early termination of the service agreement
the payments to which the director would be entitled comprise basic salary and full benefits for the notice period
0
051998 101998 041999 101999 042000 102000 042001 102001 042002 102002 042003
50
100
150
200
250
300
350
value of 100p invested
date
mentmore ri ftse support services ri mentmore plc annual report 2003 23
the letters of appointment of the nonexecutive directors serving as at 30 april 2003 include the following
terms
date of letter  unexpired notice
of terms period 
nonexecutives appointment months months
gl collins 26 july 2000 36 none
bj howes 16 january 1997 19 none
r wright 11 june 2002 24 none
nonexecutives are appointed for an initial three year term which may if appropriate be extended to a further
term of three years but not normally for longer brian howes’ term was extended in the current year to january
2005 the letters of appointment do not contain notice periods or provision for termination payments
information subject to audit
directors’ remuneration
the emoluments of directors was as follows 
in addition to the amounts disclosed above 
1 nick smith made gains of £184000 on the exercise of share options in the year full details of which are given below
2 kim taylorsmith received the sum of £258000 by way of compensation for loss of office he remained an
employee until 1 october 2002 and received salary and benefits amounting to £94000 up to this date
3 in 2002 kim taylorsmith made a gain of £10000 on the exercise of share options
4 in 2002 michael woodhead received an exgratia payment of £6000 on retirement
salary benefits annual 2003 2002
and fees in kind bonus total total
£’000 £’000 £’000 £’000 £’000
executives
np smith 165 19 – 184 173
kds taylorsmith to 1262002 26 2 – 28 253
cd drysdale 151 20 – 171 158
mj nye from 1312003 70 5 34 109 –
nonexecutives
gl collins 23 – – 23 17
bj howes 22 – – 22 18
am lewis to 492002 5 – – 5 17
r wright 23 – – 23 –
mj woodhead to 592001 – – – – 10
aggregate remuneration 485 46 34 565 646
benefits in kind include car allowances and private medical cover for the director and immediate family 24 mentmore plc annual report 2003
directors’ remuneration report continued
directors’ share options
options have been granted to executive directors under the company’s employee share option schemes
information is provided below for directors who served in the financial year ended 30 april 2003
all options over 2280954 shares granted to kim taylorsmith lapsed unexercised in this year other than the
options described above no options granted to directors lapsed unexercised and there were no options
exercised during the year
no amount was paid for the award of any options the price at which shares may be acquired is the market
price within a specified number of days prior to the date of grant the market price of the shares at 30 april
2003 was 790p and the low and high for the year was 525p and 1155p
under the employee share option schemes the options are subject to performance conditions as described
above that must be met before the options can be exercised
there have been no changes to the terms and conditions of the directors’ entitlement to the share options
there have been no changes to directors’ interests in share options held between the year end and 9 july 2003
no of options
market gain on
granted exercised price on exercise date
date of at start during during at end exercise date of of option from which expiry
grant of year year year of year price exercise £’000 exercisable date
np smith
nps option 41095 797927 – 797927 – 450p 665p 172 oct 00 oct 02
1992 sharesave 6397 39564 – 39564 – 436p 745p 12 april 02 sept 02
1994 scheme 3898 32858 – – 32858 913p – – aug 01 aug 08
1996 scheme 3898 92142 – – 92142 913p – – aug 01 aug 05
1999 scheme 4199 2136405 – – 2136405 1150p – – jan 04 jan 09
1999 scheme 20999 1200000 – – 1200000 143166p – – sept 04 sept 09
1999 scheme 18102 290000 – – 290000 1345p – – jan 07 jan 12
cd drysdale
1992 sharesave 25102 15324 – – 15324 1080p – – mar 07 aug 07
1996 scheme 3898 75000 – – 75000 913p – – aug 01 aug 05
1999 scheme 4199 1427118 – – 1427118 1150p – – jan 04 jan 09
1999 scheme 20999 1000000 – – 1000000 143166p – – sept 04 sept 09
1999 scheme 18102 290000 – – 290000 1345p – – jan 07 jan 12
mj nye
1994 scheme 14103 – 36697 – 36697 8175p – – jan 06 jan 13
1996 scheme 14103 – 463303 – 463303 8175p – – jan 06 jan 10
1999 scheme 15103 – 1200000 – 1200000 7883p – – jan 08 jan 13 mentmore plc annual report 2003 25
directors’ pension entitlements
the following director has pension entitlements under the group’s defined benefit pension scheme
change in change in
accrued pension accrued pension accrued
accrued benefit due to due to benefit at
at 30 april 2003 inflation other factors 30 april 2003
age at £’000 per £’000 per £’000 per £’000 per
30 april 2003 annum annum annum annum
cd drysdale 40 21 – 4 25
the transfer value of each director’s accrued benefits at the end of the financial year is shown below note that
transfer values represent a liability of the company not a sum paid or due to an individual
increase in
increase in transfer value
transfer value not due
transfer not due to to inflation transfer
value at directors’ or directors’ value at 
30 april 2002 contributions contributions 30 april 2003
£’000 £’000 £’000 £’000
cd drysdale 132 44 19 180
pension scheme members have the option to make additional voluntary contributions the information
disclosed in the tables above excludes any such contributions and the resulting benefits
the following directors were members of the group’s money purchase schemes company contributions to
directors’ money purchase pension plans amounted to
2003 2002
£’000 £’000
mj nye 10 –
kds taylorsmith 4 46
14 46
approval
the directors remuneration report was approved by the board on 9 july 2003 and signed on its behalf by
bj howes
chairman of the remuneration committee the board recognises its responsibilities in
complying with the principles of corporate
governance as set out in the combined code in
the listing rules of the financial services authority
the board is of the opinion that it has complied
with the provisions of the combined code
following the resignation of kim taylorsmith in june
2002 nick smith took on the role of acting chief
executive in addition to his role as chairman this
situation lasted until january 2003 when martin nye
took up his appointment as group chief executive
board of directors
the board of directors which currently comprises
six members meets regularly and retains full and
effective control over the group it has a schedule
of matters specifically reserved for its decision and
has delegated authority to committees of directors
on certain specific matters all directors have access
to the advice and services of the company secretary
and if necessary to take independent professional
advice at the group’s expense
the board includes three nonexecutive directors
who bring an independent judgement to the
management of the group they are all free from
any business or other relationships which could
interfere with the exercise of their judgement
nonexecutive directors are appointed for an initial
threeyear term which may if appropriate be
extended to a further term of three years but not
normally for longer richard wright acts as senior
independent nonexecutive director
audit committee 
the audit committee which meets at least twice
a year comprises the nonexecutive directors and
is chaired by leigh collins the auditors and
executive directors attend the meetings by invitation
it is the responsibility of the audit committee to
examine and review internal controls financial and
accounting policies and practices the form and
content of financial reports and statements and
general matters raised by the auditors
nominations committee
the nominations committee which meets at least
once a year comprises the nonexecutive directors
and is chaired by richard wright it is responsible for
considering and recommending to the board changes
in the board’s composition and membership
remuneration committee
the remuneration committee which comprises the
nonexecutive directors and is chaired by brian
howes meets at least once a year it is responsible
for determining individual remuneration and terms
and conditions of employment of the chairman
and executive directors and for the granting of
any share options
details of individual directors’ remuneration and
share options are included in the directors’
remuneration report
internal control
the directors have overall responsibility for ensuring
that the group maintains an adequate system of risk
management and internal control and for reviewing
its effectiveness such systems are designed to
manage rather than eliminate the risks inherent in the
business and can therefore only provide reasonable
but not absolute assurance against material
misstatement or loss
the board monitors risk management through an
ongoing process which accords with the turnbull
guidance and provides assurance that the significant
risks faced by the group are being identified
evaluated and appropriately managed having regard
to the balance of risk cost and opportunity the
principal features of this process are
• comprehensive budget setting process with both
annual and longer term forecasts being reviewed
and approved by the board
• comparison by the board of actual results against
budget
• formal monthly meetings between the executive
directors and subsidiary management to review
financial and operating performance as well as
future plans
• appropriate delegated authority levels across
the group which prescribe the limits to which
the group can be committed
• clearly defined authority for the approval of
capital expenditure
• formal procedures based on selfassessment 
for the measurement and evaluation of financial
control at each operating unit throughout the
group and
• other risk management policies and procedures
which are designed to meet the needs of the
particular business to which they relate these
include health and safety the environment legal
compliance quality assurance risk transfer
insurance and security
these procedures have been in place throughout
the year and the directors have reviewed their
effectiveness
owing to the size of the group the board does not
consider it practical to have its own internal audit
function reliance is placed on the risk management
procedures described above and supplemented
by specific reviews by group head office when
circumstances dictate the board will continue
to monitor the need for an internal audit function
corporate governance
26 mentmore plc annual report 2003 mentmore plc annual report 2003 27
going concern
the directors having made appropriate enquiries
including a review of the group’s budget for 2004
and its mediumterm plans have a reasonable
expectation that the group and company has
adequate resources to continue in operational
existence for the foreseeable future for this reason
they continue to adopt the going concern basis in
preparing the accounts
shareholder relationships
presentations are made to shareholders institutions
and analysts at least twice a year to coincide with
results announcements additional dialogue with
institutions is entered into as necessary mindful
of the rules on insider dealings and pricesensitive
information shareholders are actively encouraged
to visit the company to be shown its operations
the group’s annual and halfyear reports
presentations to institutional shareholders on these
reports and announcements issued to the london
stock exchange are published on the company’s
website wwwmentmoreplcuk
notice of the annual general meeting is given to
shareholders at least 20 working days in advance
the meeting is conducted in an open manner and all
attendees are given the opportunity to question the
board and vote on each resolution where resolutions
are dealt with by show of hand the results of proxy
votes for and against are announced 28 mentmore plc annual report 2003
the directors present their report together with the
audited financial statements of the group for the year
ended 30 april 2003
principal activity
the principal activity of the group is the provision
of specialist storage space and item management
where customer service and access are critical
these activities are fully described in the chairman’s
statement and the operating and financial reviews
together with a review of the group’s business and
likely future developments details of the principal
operating companies of the group are given in note
12 to the financial statements
group results and transfers to reserves
loss before taxation amounted to £538 million
2002 profit before taxation £249 million the loss
attributable to ordinary shareholders amounted to £578
million 2002 profit of £182 million which after
dividends of £08 million 2002 £23 million resulted in
a transfer to reserves of a loss of £586 million 2002
profit of £159 million
capital reconstruction
after taking into account the result for the year
mentmore plc has a deficit on its profit and loss
account of £285 million as at 30 april 2003 and the
directors are therefore unable to propose a final
dividend in order to enable the company to pay
dividends in the future and allow for the possible
purchase of shares for cancellation the directors are
proposing subject to both shareholder and high court
approval a capital reconstruction whereby £100 million
of share premium account will be converted to a
distributable reserve assuming that the necessary
approvals are obtained and after taking into account the
deficit as at 30 april 2003 the company’s distributable
reserves would stand at £715 million
authority is being sought from shareholders for the
capital reconstruction at the annual general meeting
dividends
as noted above the directors are unable to recommend
a final dividend per ordinary share 2002 085p an
interim dividend of 0425p per ordinary share
2002 0402p was paid on 7 april 2003 
assuming that all consents are received in respect of
the capital reconstruction the directors will pay a special
oneoff interim dividend of 089p per ordinary share in
lieu of the 2003 final dividend
the total dividends for the year are therefore 0425p
2002 1252p had the directors been able to propose
the special oneoff dividend in lieu of the final dividend
in these financial statements the total dividends for
2003 would have been 1315 per ordinary share an
increase of 50 on 2002
share capital
the directors are seeking the authority from
shareholders at the annual general meeting to allow
them to issue new shares for cash to persons who are
not existing shareholders up to a maximum nominal
value of £910542 this sum represents 9105425
ordinary shares of 10p each being equivalent to 5
of the entire issued share capital at 9 july 2003
the authority will terminate no later than 15 months
from the passing of the resolution
in addition the directors are seeking the authority from
shareholders at the annual general meeting to allow
them to purchase and cancel up to 18210850 shares
representing 10 of mentmore’s present issued share
capital the maximum price to be paid on any exercise
of this authority is to be restricted to not more than 5
above the average of the middlemarket quotation for
the shares for the five dealing days immediately
preceding the day of purchase the minimum price
payable for each share is 10p the authority is sought
by way of special resolution although the directors
have no present intention of utilising this authority it will
be exercised by them if in the light of market
conditions at the time the directors expect it to result in
an increase in earnings per share and if it is in the best
interests of shareholders account will also be taken of
the effect of gearing and the overall position of the
company the authority will terminate no later than 12
months from the passing of the resolution
substantial shareholdings
as at 8 july 2003 the company had been advised of
the following interests of 3 or more in its ordinary
share capital
no of shares 
jo hambro capital 
management ltd 23852963 1310
fidelity international limited 17338870 952
britel fund trustees limited 9398354 516
zurich financial services limited 7641818 420
legal  general investment 
management limited 7312510 402
possfund custodian trustee limited 7256144 398
nottinghamshire county council 5850000 321
canada life limited 5760000 316
directors
richard wright and martin nye were appointed to the
board on 12 june 2002 and 13 january 2003
respectively kim taylorsmith and anthony lewis
resigned from the board on 12 june 2002 and 4
september 2002 respectively
in accordance with the articles of association clive
drysdale and brian howes retire by rotation from the
board and being eligible offer themselves for re
election
directors’ report environmental policies and procedures appropriate
to its business the main focus of these is to comply
fully with local environmental legislation improve
energy efficiency and reduce usage of hazardous
or deleterious materials
in addition it is group policy that all new site
acquisitions are assessed for environmental impact
as part of the due diligence process 
charitable and political contributions
the group made contributions for charitable purposes
amounting to £2569 in the year 2002 £2065
no donations were made to political organisations
policy for payment of creditors
the group’s policy for the year to 30 april 2004 for
all suppliers is to fix terms of payment when agreeing
the terms of each business transaction to ensure that
the supplier is aware of those terms and to abide by
the agreed terms of payment at 30 april 2003 the
company had trade creditors outstanding for an
average of 31 days 2002 30 days
auditors
a resolution proposing the reappointment of rsm
robson rhodes llp as auditors will be put to the
annual general meeting
notice of meeting
the notice of the annual general meeting to be held
on 20 august 2003 was sent to shareholders on 
9 july 2003 as part of the circular to shareholders in
connection with the proposed disposal of sbs and
capital reorganisation
by order of the board
cd drysdale
company secretary
9 july 2003
mentmore plc annual report 2003 29
in addition in accordance with the articles of
association martin nye having been appointed since
the last annual general meeting retires from the board
and being eligible offers himself for reelection
the interests of the directors in the ordinary shares of
the company beneficial unless otherwise stated were
30 april
2002
30 april or date of
2003 appointment
np smith 1200799 363308
cd drysdale 51460 51460
mj nye 100000 –
gl collins 100000 100000
bj howes 40000 40000
there were no changes in directors’ interests in shares
between 30 april 2003 and 9 july 2003
details of the directors’ interests in share options are
given in the directors’ remuneration report
no director had an interest in the shares of any
subsidiary undertaking during the year
employees
the board pursues policies designed to encourage
employees to identify with the group and use their
knowledge and skills actively towards its success
management are encouraged to make employees
aware of the financial and economic factors affecting
the group’s performance
applications from disabled persons are given full and
fair consideration where an employee becomes
disabled while employed arrangements are made
wherever practicable to maintain employment the
group seeks to develop the skills of disabled persons
by providing appropriate training taking into account
their particular needs
environmental responsibility
the environmental impact of the group’s operations
is low when compared to many other industries
notwithstanding this the board is committed to the
improvement of the group’s environmental performance
and to minimise any adverse effects that its operations
may have on the environment
each operating business is responsible for developing 30 mentmore plc annual report 2003
statement of directors’ responsibilities
company law in the united kingdom requires the
directors to prepare financial statements for each
financial year which give a true and fair view of the state
of affairs of the company and the group and of the
profit and loss of the group for that period in preparing
these financial statements the directors are required to
• select suitable accounting policies and apply them
consistently
•
make judgements and estimates that are
reasonable and prudent
• state whether applicable united kingdom accounting
standards have been followed subject to any
material departures disclosed and explained in the
financial statements and
• prepare the financial statements on the going
concern basis unless it is inappropriate to presume
that the company will continue in business
the directors are responsible for keeping proper
accounting records which disclose with reasonable
accuracy at any time the financial position of the
company and enable them to ensure that the financial
statements comply with the companies act 1985
they are also responsible for safeguarding the assets
of the company and hence for taking reasonable
steps for the prevention and detection of fraud and
other irregularities
the directors are responsible for ensuring that the
directors’ report and other information included in the
annual report is prepared in accordance with company
law in the united kingdom they are also responsible
for ensuring that the annual report includes information
required by the listing rules of the financial services
authority
the annual report is available on the company’s web
site the maintenance and integrity of mentmore plc’s
web site is the responsibility of the directors
the work carried out by the auditors does not involve
consideration of these matters and accordingly the
auditors accept no responsibility for any changes that
may have occurred to the information contained in the
financial statements since they were initially presented
on the web site
legislation in the united kingdom governing the
preparation and dissemination of the financial
statements and other information included in annual
reports may differ from legislation in other jurisdictions mentmore plc annual report 2003 31
independent auditors’ report to the shareholders of mentmore plc
we have audited the financial statements on pages
32 to 56 we have also audited the information in the
directors’ remuneration report that is described as
having been audited
this report is made solely to the company’s
shareholders as a body in accordance with section
235 of the companies act 1985 our audit work has
been undertaken so that we might state to the
company’s shareholders those matters we are
required to state to them in an auditor’s report and for
no other purpose to the fullest extent permitted by
law we do not accept or assume responsibility to
anyone other than the company and the company’s
shareholders as a body for our audit work for this
report or for the opinions we have formed
respective responsibilities of directors and auditors
the directors’ responsibilities for preparing the annual
report the directors’ remuneration report and the
financial statements in accordance with applicable
law and united kingdom accounting standards are
set out in the statement of directors’ responsibilities
our responsibility is to audit the financial statements
and the part of the directors’ remuneration report to
be audited in accordance with relevant legal and
regulatory requirements united kingdom auditing
standards and the listing rules of the financial
services authority we report to you our opinion as to
whether the financial statements give a true and fair
view and whether the financial statements and the
part of the directors’ remuneration report to be
audited have been properly prepared in accordance
with the companies act 1985 we also report to you
if in our opinion the directors’ report is not
consistent with the financial statements if the
company has not kept proper accounting records if
we have not received all the information and
explanations we require for our audit or if information
specified by law or the listing rules regarding
directors’ remuneration and transactions with the
company and other members of the group is not
disclosed
we review whether the corporate governance
statement reflects the company’s compliance with the
seven provisions of the combined code specified for
our review by the listing rules of the financial
services authority and we report if it does not we are
not required to consider whether the board’s
statements on internal control cover all risks and
controls or form an opinion on the effectiveness of
the group’s corporate governance procedures or
its risk and control procedures
we read other information contained in the annual
report and consider whether it is consistent with the
audited financial statements the other information
comprises only the directors’ report the unaudited
part of the directors’ remuneration report the
chairman’s statement the operating and financial
review the corporate governance statement and the
five year summary we consider the implications for
our report if we become aware of any apparent
misstatements or material inconsistencies with the
financial statements our responsibilities do not
extend to any information outside the annual report
basis of audit opinion
we conducted our audit in accordance with united
kingdom auditing standards issued by the auditing
practices board an audit includes examination on a
test basis of evidence relevant to the amounts and
disclosures in the financial statements and the part of
the directors’ remuneration report to be audited it
also includes an assessment of the significant
estimates and judgements made by the directors in
the preparation of the financial statements and of
whether the accounting policies are appropriate to the
company’s circumstances consistently applied and
adequately disclosed
we planned and performed our audit so as to obtain
all the information and explanations which we
considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that
the financial statements and the part of the directors’
remuneration report to be audited are free from
material misstatement whether caused by fraud or
other irregularity or error in forming our opinion we
also evaluated the overall adequacy of the
presentation of information in the financial statements
and the part of the directors’ remuneration report to
be audited
opinion
in our opinion
• the financial statements give a true and fair view of
the state of affairs of the company and the group as
at 30 april 2003 and of the group’s loss for the year
then ended and
• the financial statements and the part of the
directors’ remuneration report to be audited have
been properly prepared in accordance with the
companies act 1985
rsm robson rhodes llp
chartered accountants and registered auditors
centre city tower 7 hill street
birmingham b5 4uu
england
9 july 2003 before before
goodwill goodwill goodwill goodwill
amortisation amortisation amortisation amortisation
and and total and and total
exceptionals exceptionals 2003 exceptionals exceptionals 2002
notes £’000 £’000 £’000 £’000 £’000 £’000
turnover 1 82102 – 82102 77405 – 77405
continuing operations
group and share of joint venture 115625 – 115625 102988 – 102988
less group’s share of joint venture 36238 – 36238 27705 – 27705
group 79387 – 79387 75283 – 75283
acquisitions 2715 – 2715 –––
82102 – 82102 75283 – 75283
discontinued activities – – – 2122 – 2122
82102 – 82102 77405 – 77405
cost of sales 46230 – 46230 42397 – 42397
gross profit 35872 – 35872 35008 – 35008
administrative expenses 10388 6436 16824 9186 5726 14912
provision for impairment and exceptional
costs of disposal 3 – 61746 61746 –––
group operating profitloss 2 25484 68182 42698 25822 5726 20096
continuing operations
existing activities 24736 67834 43098 25911 5726 20185
acquisitions 758 348 410 –––
25494 68182 42688 25911 5726 20185
discontinued activities 10 – 10 89 – 89
25484 68182 42698 25822 5726 20096
share of operating profit in joint venture 5568 1594 3974 3546 1365 2181
total operating profitloss 1 31052 69776 38724 29368 7091 22277
profit on disposal of fixed assets – 1588 1588 –––
share of joint venture profit on disposal 
of fixed asset – – – – 1021 1021
profit on disposal of operations 4 –– – – 1529 1529
profit on disposal of investment 4 –– – – 9646 9646
profitloss on ordinary activities before interest 31052 68188 37136 29368 5105 34473
net interest payable 5 12337 4365 16702 9525 – 9525
profitloss on ordinary activities before taxation 18715 72553 53838 19843 5105 24948
taxation 6 6452 2421 4031 6239 500 6739
profitloss on ordinary activities after taxation 12263 70132 57869 13604 4605 18209
dividends 7 774 – 774 2270 – 2270
transfer fromto reserves 20 11489 70132 58643 11334 4605 15939
earningsloss per share 8
basic 675p 3185p 752p 1007p
diluted 674p 3185p 748p 1001p
dividends per share 0425p 1252p
32 mentmore plc annual report 2003
group profit and loss account
for the year ended 30 april 2003 mentmore plc annual report 2003 33
balance sheets
at 30 april 2003
group company
2003 2002 2003 2002
notes £’000 £’000 £’000 £’000
fixed assets
intangible assets 10 53364 100906 ––
tangible assets 11 287236 250965 484 570
investments 12
subsidiaries – – 254559 221003
ime joint venture 34116 28096 48266 44370
– share of gross assets 74713 60457
– share of gross liabilities 54913 42781
– share of net assets 19800 17676
– loans to joint venture 14316 10420
own shares 12 14 12 14
other 250 250 – –
374978 380231 303321 265957
current assets
stocks 13 1336 1824 – –
development in progress 13 19200 16312 – –
debtors 14 13988 8757 91857 69218
investments 15 709 – – –
cash at bank and in hand 13396 4093 11046 12891
48629 30986 102903 82109
creditors amounts falling due within one year 16 41705 54796 17223 77767
net current assetsliabilities 6924 23810 85680 4342
total assets less current liabilities 381902 356421 389001 270299
creditors amounts falling due after more than one year 17 216848 136278 216020 61360
provisions for liabilities and charges 18 6811 4475 – 98
net assets 158243 215668 172981 208841
capital and reserves
called up share capital 19 18211 18131 18211 18131
share premium account 20 130427 130148 130427 130148
special reserve 20 – – 3134 3134
other reserve 20 27226 27226 49708 49708
profit and loss account 20 17621 40163 28499 7720
equity shareholders’ funds 158243 215668 172981 208841
signed on behalf of the board who approved the accounts on 9 july 2003
np smith
chairman
cd drysdale
finance director 34 mentmore plc annual report 2003
group cash flow statement
for the year ended 30 april 2003
2003 2002
notes £’000 £’000
cash flow from operating activities 25a 25883 31490
returns on investments and servicing of finance 25b 12485 6854
taxation paid 4561 5061
capital expenditure and financial investment 24331 19109
proceeds from sale of investments 25b 2 30155
development on behalf of joint venture 2888 15688
loans made torepaid by joint venture 3897 5712
capital expenditure 25b 17548 39288
acquisitions and disposals 25b 16421 2452
equity dividends paid 2315 2214
cash outflowinflow before financing 34230 704
financing
– issue of shares 359 340
– increasedecrease in debt and lease financing 25b 52408 10179
increasedecrease in cash in the year 18537 9135
reconciliation of net cash flow to movement in net debt
for the year ended 30 april 2003
2003 2002
notes £’000 £’000
increasedecrease in cash in the year 18537 9135
cash inflowoutflow from change in debt and lease financing 52408 10179
change in net debt resulting from cash flows 33871 1044
loans and finance leases acquireddivested with subsidiary undertakings 8274 2219
noncash movements 10989 63
movement in net debt in the year 53134 3200
net debt at 1 may 2002 153151 156351
net debt at 30 april 2003 25c 206285 153151 mentmore plc annual report 2003 35
statement of total recognised gains and losses
for the year ended 30 april 2003
2003 2002
£’000 £’000
group lossprofit for the year 58907 17764
share of profit in joint venture for the year 1038 445
lossprofit for the year 57869 18209
currency translation differences on foreign currency net investments 859 46
total recognised gains and losses in the financial year 57010 18255
prior year adjustment for deferred tax note 6 – 3283
total recognised gains and losses since last annual report 57010 14972
reconciliation of movements in shareholders’ funds
for the year ended 30 april 2003
2003 2002
£’000 £’000
lossprofit for the year 57869 18209
other recognised gains and losses in the year 859 46
shares issued 359 378
dividends 774 2270
net reductionaddition to shareholders’ funds 57425 16363
opening shareholders’ funds as previously stated 215668 202588
prior year adjustment for deferred tax note 6 – 3283
opening shareholders’ funds as restated 215668 199305
closing shareholders’ funds 158243 215668 36 mentmore plc annual report 2003
accounting policies
basis of accounting
the financial statements have been prepared under
the historical cost convention and in accordance with
applicable accounting standards
basis of consolidation
the group accounts comprise a consolidation of
the accounts of the company and its subsidiary
undertakings the results of undertakings acquired
or disposed of are consolidated from or to the dates
when control passes to or from the company
goodwill
on the acquisition of a subsidiary undertaking fair
values are attributed to the net assets acquired
and the consideration to be paid goodwill which
represents the difference between the fair values
of consideration and net assets has been taken to
reserves in respect of acquisitions prior to 30 april
1998 in the event of any future disposal or closure
of the acquired businesses goodwill taken to reserves
will be expensed in the profit and loss account
positive goodwill relating to acquisitions after 
1 may 1998 is shown in the balance sheet as an
intangible asset and amortised evenly over its estimated
useful economic life which will not exceed 20 years
in addition to systematic amortisation the book value
of goodwill is written down to its recoverable amount
when any impairment is identified
joint ventures
the group’s interest in joint ventures which are
accounted for under the gross equity method comprise
investments which are held for the long term and are
jointly controlled by the group and another entity under a
formal contractual arrangement the group’s share of the
results of joint ventures is included in the consolidated
profit and loss account in the consolidated balance
sheet investments in joint ventures is included at the
group’s share of net assets of the joint ventures together
with any goodwill on acquisition less related amortisation
and impairment write downs loans made to joint
ventures which are of a long term nature are included
within investments the consolidated cash flow
statement includes only dividends received from and
certain financing transactions relating to joint ventures
turnover
turnover represents the total amount receivable
excluding value added tax for goods supplied and
services rendered to customers outside of the group
tangible fixed assets and depreciation 
depreciation is provided to write off tangible 
fixed assets other than freehold land over their
estimated useful lives as follows
freehold buildings 50 years
long leasehold premises 50 years
short leasehold premises period of lease
plant and equipment 2 – 20 years
vehicles fixtures and 
computers 3 – 10 years
in addition to systematic depreciation where there is
evidence of impairment fixed assets are written down
to recoverable amount with the write down being
charged to the profit and loss account
the cost of buildings include all capital spend incurred
in bringing the property to an appropriate condition for
operational use all other costs are classed as repairs
and maintenance and are written off to the profit and
loss account as incurred
investments and investment income
investments in subsidiary and joint venture
undertakings are included at cost less any provision for
impairment necessary to reduce book value to
recoverable amount other investments are included at
cost less any provision for permanent diminution in
value
dividend income from group companies is included
in the profit and loss account of the company on a
receivable basis 
stocks and assets held for resale
stocks and assets held for resale are valued at the
lower of cost and net realisable value after making
allowance for obsolete and slowmoving items
cost includes material and where appropriate
direct labour and production overheads
leased assets
where assets are financed by leasing arrangements
which transfer substantially all the risks and rewards
of ownership of an asset to the lessee finance leases
the assets are accounted for as if they had been
purchased and the corresponding capital cost is shown
as an obligation to the lessor lease payments are
treated as consisting of a capital element and a finance
charge the capital element reducing the obligation to
the lessor and the finance charge being written off to
the profit and loss account over the period of the lease
in proportion to the capital amount outstanding
depreciation is charged over the shorter of the
estimated useful life and the lease period mentmore plc annual report 2003 37
all other leases are accounted for as operating leases
rentals payable under operating leases are charged
to the profit and loss account on a straightline basis
over the period of the lease
taxation
current tax including uk corporation tax and foreign
tax is provided at amounts expected to be paid or
recovered using tax rates in force at the balance
sheet date
deferred taxation is recognised in respect of all timing
differences that have originated but not reversed at the
balance sheet date where transactions or events that
result in an obligation to pay more tax in the future or a
right to pay less tax in the future have occurred at the
balance sheet date deferred tax assets are recognised
to the extent that it is regarded as more likely than not
that they will be recovered deferred tax assets and
liabilities recognised have not been discounted
in accordance with frs 19 deferred tax is not
provided for fair value adjustment gains to fixed
assets and is also not recognised when fixed assets
are revalued unless by the balance sheet date there is
a binding agreement to sell the revalued assets and
the gain or loss expected to arise on sale has been
recognised in the financial statements neither is
deferred tax recognised when fixed assets are sold
and it is more likely than not that the taxable gain will
be rolled over being charged to tax only if and when
the replacement assets are sold
provision is made for uk or foreign tax arising on the
distribution to the uk of retained profits of overseas
subsidiary undertakings where dividends have been
recognised as receivable
pension costs
the cost of providing retirement pensions and related
benefits is charged to the profit and loss account over
the periods benefiting from the employees’ service
foreign currency
assets and liabilities denominated in foreign currencies
are translated into sterling at closing rates of exchange
exchange differences arising from the treatment of net
investments in foreign subsidiaries and related foreign
currency loans are taken directly to reserves the
trading results of foreign subsidiaries are translated into
sterling using the average exchange rate for the year
and the difference in relation to closing rates is taken 
to reserves all other currency differences are taken
to the profit and loss account 38 mentmore plc annual report 2003
notes to the financial statements
1 segmental analysis
total operating operational
turnover ebitda profitloss net assets
2003 2002 2003 2002 2003 2002 2003 2002
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
by activity
continuing operations
personal storage 26034 20916 10599 9486 8014 7589 119916 85210
serviced business space 56068 53575 21170 20904 17480 18160 196977 248736
records management – – 7675 5122 5568 3546 34116 28096
property disposals – 792 – – – 162 – –
goodwill amortisation
and exceptionals – – – – 69776 7091 – –
82102 75283 39444 35512 38714 22366 351009 362042
discontinued operations
other – 2122 10 84 10 89 – –
82102 77405 39434 35428 38724 22277 351009 362042
earnings before interest taxes depreciation amortisation and exceptionals
goodwill amortisation and exceptionals comprise goodwill amortisation of £77 million and exceptional items of
£621 million charged against operating profit see note 2
operational net assets are net assets excluding own shares current and other fixed asset investments
development in progress cash borrowings current and deferred tax and dividends payable
turnover all originated in the united kingdom with the exception of £275 million 2002 £23 million which was
supplied in other european countries turnover by destination was as follows
2003 2002
£’000 £’000
united kingdom 79352 75143
other europe 2750 2262
82102 77405
total operating profit before goodwill amortisation all arose in the united kingdom with the exception of losses of
£06 million 2002 £07 million which were generated in other european countries
further analysis of total operating profit after goodwill amortisation and exceptionals is as follows
2003 2002
dis dis
continuing continued continuing continued
operations acquisitions activities total activities activities total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
turnover 79387 2715 – 82102 75283 2122 77405
cost of sales 44678 1552 – 46230 40842 1555 42397
gross profit 34709 1163 – 35872 34441 567 35008
administrative expenses 9973 405 10 10388 8530 656 9186
exceptional charges note 2 62106 – – 62106 –––
goodwill amortisation 5728 348 – 6076 5726 – 5726
operating lossprofit 43098 410 10 42698 20185 89 20096
share of ime operating profit
before goodwill amortisation 5568 – – 5568 3546 – 3546
goodwill amortisation 1594 – – 1594 1365 – 1365
total operating lossprofit 39124 410 10 38724 22366 89 22277 mentmore plc annual report 2003 39
2 operating lossprofit
operating lossprofit is stated after charging the following
2003 2002
£’000 £’000
goodwill amortisation 6076 5726
depreciation – on owned assets 6275 4646
operating lease rentals – land and buildings 10891 10437
– plant machinery and other 275 239
auditors’ remuneration – audit work 85 62
during the year the group’s auditors were paid £82000 2002 £22000 for services other than provided as auditors
2003
exceptional charges against operating profit comprise 2002 £nil £’000
provision for impairment and exceptional costs of disposal
relating to sbs see note 3 61746
director termination and associated costs 360
62106
3 provision for impairment and exceptional costs of disposal
the group has announced the agreement for the disposal of the serviced business space division for consideration
of £1890 million gross further details on the contribution of this business to the group’s results are given in note
1 to the financial statements the provision for impairment and exceptional costs of disposal comprises £540
million for impairment of goodwill and £77 million for disposal expenses and associated restructuring costs
4 profit on disposal of operations and investment
the trade and assets of homeware brands were sold on 30 november 2001 at book value its contribution to the
group’s results in the previous year are shown under discontinued activities in note 1 to the financial statements
imex holland which comprised two operating sites was sold on 4 january 2002 at a profit of £15 million in the
year to 30 april 2002 it contributed turnover of £04 million and operating profit of £01 million
the group’s 20 interest in workspace group plc was sold on 21 may 2001 and generated a profit of 
£96 million
5 net interest payable
2003 2002
£’000 £’000
on bank loans and overdrafts 11952 8472
on deferred acquisition loan notes 265 372
other financing costs – 4
share of ime joint venture interest 1652 1916
interest payable and similar charges 13869 10764
bank and other interest receivable 1059 370
interest receivable from ime joint venture 473 869
12337 9525
exceptional interest costs and similar charges 4365 –
net interest payable 16702 9525
the exceptional interest costs and similar charges primarily relate to the cost of restructuring the funding of the
group as part of the process of disposing of the sbs division 40 mentmore plc annual report 2003
notes to the financial statements continued
6 taxation 
the tax charge for the year comprises
2003 2002
£’000 £’000
current tax
uk corporation tax at 30 481 5192
uk prior year 718 707
total current tax 237 4485
deferred tax
origination and reversal of timing differences 2984 1413
group tax charge 2747 5898
share of ime joint venture tax 1284 841
total tax charge 4031 6739
the uk current tax charge includes a credit of £24 million in relation to items included within exceptional charges
which qualify for corporation tax relief 2002 charge of £05 million relating to the profit on disposal of investment
the total current tax charge for the year varied from the standard rate of corporation tax in the uk for
the following reasons
2003 2002
£’000 £’000
lossprofit on ordinary activities before taxation 53838 24948
standard rate of uk corporation tax at 30 16151 7484
effects of
goodwill impairment and exceptional costs 17413 –
deducting joint venture tax chargecredit at the standard rate 1175 788
goodwill amortisation for which no tax relief is available 2301 2127
capital losses crystallised 135 2394
capital allowances in excess of depreciation 2041 1253
utilisation of tax losses 788 107
other timing differences 155 53
adjustments to tax charge in respect of prior periods 718 707
unrelieved overseas trading losses 198 140
other permanent differences 1014 36
actual total current tax creditcharge 237 4485
a detailed review of the tax position of the group’s properties was undertaken in the period by an independent firm of
property specialists who have determined that there would be no unprovided liability to tax if the properties were sold
at their balance sheet values due to the availability of indexation relief
frs19 accounting for deferred tax was adopted with effect from 1 may 2000 as a result of the change of
accounting policy a prior year adjustment was made during the previous year to 30 april 2002 the group deferred
tax provision in the balance sheet was increased by £25 million and the share of ime joint venture net assets were
reduced by £08 million resulting in a total reduction in shareholders’ funds of £33 million mentmore plc annual report 2003 41
7 dividends 
2003 2002
£’000 £’000
interim paid 0425p per ordinary share 2002 0402p 774 729
final proposed nil per ordinary share 2002 085p – 1541
774 2270
8 earnings per share 
basic lossearnings per share are calculated on loss after tax of £579 million 2002 £182 million profit after tax
divided by 1817 million ordinary shares 2002 1808 million ordinary shares being the weighted average number
of shares in issue during the year diluted earnings per share are calculated after allowing for the dilutive effect of
conversion into ordinary shares of the weighted average number of share options outstanding during the year the
number of shares used for the diluted earnings per share calculation was 1819 million 2002 1819 million the
weighted average number of shares used to calculate earnings per share excludes shares held by the quest see
note 12
basic earnings per share before goodwill amortisation and exceptionals has been separately disclosed on the face
of the profit and loss account to facilitate comparison of the underlying performance of the group the calculation
uses the same weighted average number of shares in issue as for the basic earnings per share but reflects the
following items
2003 2002
profit
loss earnings profit earnings
after tax per share after tax per share
£’000 p £’000 p
as for basic earnings per share 57869 3185 18209 1007
goodwill amortisation 7670 422 7091 392
exceptionals after tax 62462 3438 11696 647
basic earnings per share before goodwill 
amortisation and exceptionals 12263 675 13604 752
diluted earnings per share before goodwill amortisation and exceptionals similarly reflects the above adjustments
but uses the same weighted average number of shares in issue as for diluted earnings per share
9 employees 
the average monthly number of persons employed by the group was as follows
2003 2002
number number
personal storage 163 148
serviced business space 348 337
other 24 23
535 508
employment costs relating to the above were
2003 2002
£’000 £’000
wages and salaries 10796 9322
social security costs 1078 968
pension costs 432 392
12306 10682 42 mentmore plc annual report 2003
notes to the financial statements continued
10 intangible assets
goodwill
£’000
cost
at 1 may 2002 114615
arising on acquisition note 21 11511
exchange movements 1099
at 30 april 2003 127225
amortisation
at 1 may 2002 13709
charge for the year 6076
impairment charge for the year sbs 54041
exchange movements 35
at 30 april 2003 73861
net book value
at 30 april 2003 53364
at 30 april 2002 100906
11 tangible assets
group company
plant plant
equipment equipment
land and and land and and
buildings vehicles total buildings vehicles total
£’000 £’000 £’000 £’000 £’000 £’000
cost
at 1 may 2002 250801 29502 280303 528 323 851
arising on acquisitions 21594 1464 23058–––
exchange movements 30 558 588–––
additions 14630 9902 24532 – 14 14
disposals 4477 510 4987 – 148 148
at 30 april 2003 282578 40916 323494 528 189 717
depreciation 
at 1 may 2002 15102 14236 29338 105 176 281
arising on acquisitions 418 609 1027–––
exchange movements 8 68 76 – – –
charge for the year 3424 2851 6275 13 33 46
disposals 128 330 458 – 94 94
at 30 april 2003 18824 17434 36258 118 115 233
net book value
at 30 april 2003 263754 23482 287236 410 74 484
at 30 april 2002 235699 15266 250965 423 147 570
land and buildings at cost comprise
group company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
land 96000 97869 222 222
freehold buildings 147361 115113 222 222
long leasehold 20772 20632 – –
short leasehold 18445 17187 84 84
282578 250801 528 528
the net book value of the group’s plant equipment and vehicles does not include any assets held under finance leases mentmore plc annual report 2003 43
12 investments 
group company
own ime joint subsidiary ime joint own
other shares venture undertakings venture shares
as restated
£’000 £’000 £’000 £’000 £’000 £’000
at 1 may 2002 250 14 28096 221003 44370 14
additions – – – 50346 – –
disposals – 2 – – – 2
loans made to ime – – 3896 – 3896 –
share of profit retained by joint venture – – 1038–––
impairment provision against sbs subsidiaries – – – 16790 – –
exchange movements – – 1086–––
at 30 april 2003 250 12 34116 254559 48266 12
the group’s other investment which is held at cost represents a 15 equity interest amounting to £025 million
in citibse plc an unlisted company which operates in england in the provision of serviced office space
the company operates a qualifying employee share ownership trust “quest” which holds shares issued by the
company in relation to the group’s employee share save schemes at 30 april 2003 the number of shares held by
the quest was 26411 2002 102290 and are included above at the price at which employees can subscribe for
the shares on exercise of their options dividends in respect of these shares have been waived whilst being held
by the quest during the year the quest disposed of 75879 shares on exercise of employee share options
the group’s investment in its ime joint venture comprises its share of their net assets of £198 million
2002 £177 million and loans of £143 million 2002 £104 million 
the group’s principal operating subsidiaries all of which are wholly owned are
country of operation
company activity and registration
spaces personal storage limited personal storage uk
une pièce en plus sa personal storage france
imex spaces limited serviced business space uk
inshops centres limited serviced business space uk
synex network services limited serviced business space uk
on 4 january 1999 iron mountain europe limited a company registered in the uk became a 499 owned joint
venture undertaking following the disposal of shares to iron mountain incorporated the principal operating
subsidiaries of the joint venture all of which are wholly owned and provide records and information management
services are
country of operation
company and registration
iron mountain uk limited uk
datavault limited uk
archive services limited uk
iron mountain ireland limited eire
memogarde sa france
archivage actif groupe iron mountain sas france
datavault sa spain
iron mountain espana sa spain
iron mountain deutschland gmbh germany 44 mentmore plc annual report 2003
notes to the financial statements continued
12 investments continued
further details of the group’s share 499 of the joint venture’s net assets as at 30 april 2003 and its share of
profits for the year then ended are given below
2003 2002
£’000 £’000
fixed assets 63794 50309
current assets 10919 10148
share of gross assets 74713 60457
liabilities due within one year 22968 19551
liabilities due after more than one year 31945 23230
share of gross liabilities 54913 42781
share of net assets 19800 17676
share of net debt included in net assets above 19400 13044
the share of net debt disclosed above excludes loans due to the joint venture partners
2003 2002
£’000 £’000
turnover 36238 27705
ebitda 7675 5122
profit before tax 2322 1286
taxation 1284 841
profit after tax 1038 445
during the year the group charged ime a management fee of £48000 2002 £48000 property rentals of £18
million 2002 £06 million and had interest receivable of £05 million 2002 £09 million all transactions were
undertaken on an arm’s length basis
13 stocks and development in progress
2003 2002
£’000 £’000
stocks comprise
work in progress 941 1678
finished goods 395 146 
1336 1824
the development in progress of £192m comprises a new records management facility for ime in se london
this was sold after the year end to a third party at cost and leased back to ime on an arm’s length basis
14 debtors
group company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
trade debtors 4742 3290 – –
amounts owed by subsidiary undertakings – – 91235 68819
net investment in finance lease and hire purchase agreements 63 86 – –
corporation tax 868 – – –
deferred taxation note 18 – – 186 115
other debtors 1866 1082 38 22
prepayments and accrued income 6449 4299 398 262
13988 8757 91857 69218
group debtors falling due after more than one year amounted to £01 million 2002 £01 million mentmore plc annual report 2003 45
15 current asset investments
current asset investments represent short term money market investments that are immediately realisable
16 creditors amounts falling due within one year
group company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
bank loans and overdrafts 882 21403 – 2111
deferred acquisition loan notes 3042 – 3042 –
trade creditors 13650 10193 1509 143
amounts owed to subsidiary undertakings – – 2893 70714
social security and other taxes 1456 1300 123 1068
corporation tax – 3914 – –
other creditors 1159 1811 12 570
accruals and deferred income 21516 14634 9644 1620
proposed dividend – 1541 – 1541
41705 54796 17223 77767
17 creditors amounts falling due after more than one year 
group company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
bank loans and overdrafts 209118 131798 208672 57317
deferred acquisition loan notes 7348 4043 7348 4043
borrowings 216466 135841 216020 61360
other creditors 382 437 – –
216848 136278 216020 61360
the above borrowings are repayable as follows
group company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
between one and two years 5364 62781 5000 28503
between two and five years 211102 71671 211020 32857
after five years – 1389 – –
216466 135841 216020 61360
the aggregate amount of all loans repayable by instalment of which any instalment is due for repayment after
five years is £nil 2002 £14 million for the group and £nil 2002 £nil for the company these were bank loans
which were secured on certain property assets of the group and attracted interest at libor plus a margin of
125 46 mentmore plc annual report 2003
notes to the financial statements continued
18 provisions for liabilities and charges 
charged
to profit
at 1 may and loss paid in arising on at 30 april
2002 account the year acquisitions 2003
£’000 £’000 £’000 £’000 £’000
group
pensions 131 120 251 – –
deferred tax 4344 2984 – 517 6811
4475 3104 251 517 6811
company
pensions 98 120 218 – –
the group’s deferred tax provision comprises
2003 2002
£’000 £’000
accelerated capital allowances 8933 6668
shortterm timing differences 596 822
losses 1526 1502
6811 4344
the company’s deferred tax asset note 14 comprises accelerated capital allowances and short term timing
differences
19 called up share capital
2003 2002
number number
000’s £’000 000’s £’000
authorised 
ordinary shares of 10p each 200000 20000 200000 20000
issued and fully paid 
ordinary shares of 10p each 182108 18211 181311 18131
the change in the issued share capital during the year arose as follows
number
000’s £’000
at 1 may 2002 181311 18131
issued on exercise of employee share options 797 80
at 30 april 2003 182108 18211
during the year the group operated six share option schemes the mentmore sharesave scheme 1992
“sharesave” the mentmore 1994 and 1996 executive share option schemes “1994 scheme” and
“1996 scheme” respectively the mentmore  senior executive share option scheme “1999 scheme”
the iron mountain europe approved executive share option plan “ime approved and the iron mountain europe
unapproved executive share option plan “ime unapproved” options over 3102031 ordinary shares in the
company lapsed in the year without being exercised options were exercised in respect of 873806 shares during
the year including those satisfied by the quest mentmore plc annual report 2003 47
19 called up share capital continued
the total number of mentmore shares under option in these schemes at 30 april 2003 was 11107468 
2002 12439506 shares as follows
option number of
scheme date of grant normal date of exercise price shares
sharesave 122001 132004 – 3182004 1720p 30170
122001 132006 – 3182006 1720p 28250
2512002 132005 – 3182005 1080p 188206
2512002 132007 – 3182007 1080p 56997
1994 scheme 281998 282001 – 182008 913p 53715
15121999 15122002 – 14122009 1727p 226513
14122000 14122003 – 13122010 2046p 324377
2102001 2102004 – 1102011 1203p 24937
1812002 1812005 – 1712012 1384p 450764
1412003 1412006  1312013 8175p 36697
1996 scheme 281998 282001 – 182005 913p 197285
15121999 15122002 – 14122006 1727p 52980
14122000 14122003 – 13122007 2046p 213305
1242001 1242005 – 1142008 1128p 124114
2102001 2102004 – 1102008 1203p 58187
1812002 1812005 – 1712009 1384p 543031
1412003 1412006  1312010 8175p 463303
1999 scheme 411999 412004 – 312009 1150p 3563523
2091999 2092004 – 1992009 143166p 2200000
1812002 1812007 –1712012 1345p 580000
1512003 1512008  1412013 7883p 1200000
ime approved 8102001 8102004 – 7102011 898p 327984
492002 492005  392012 1040p 28788
14012003 1412006  13012013 8175p 91687
ime unapproved 8102001 8102004 – 7102008 898p 17258
492002 492005  392009 1040p 7197
1412003 14012006  1312010 8175p 18200 20 reserves 
share profit
premium special other and loss
account reserve reserve account
£’000 £’000 £’000 £’000
group 
at 1 may 2002 130148 – 27226 40163
shares issued in year 279–––
loss for the year transferred to reserves – – – 58643
exchange movements – – – 859
at 30 april 2003 130427 – 27226 17621
company
at 1 may 2002 130148 3134 49708 7720
shares issued in year 279–––
loss for the year transferred to reserves – – – 36226
exchange movements – – – 7
at 30 april 2003 130427 3134 49708 28499
at 30 april 2003 the cumulative amount of goodwill written off against group reserves amounted to £256 million
2002 £256 million as permitted by section 230 of the companies act 1985 no profit and loss account is
presented for the company the loss attributable to shareholders dealt with in the accounts of the company
was £355 million 2002 profit of £35 million
the special reserve arises from the capital reduction approved by shareholders on 4 october 1995 it comprises
cancelled deferred shares of £24 million cancelled share premium of £32 million and the company’s negative
profit and loss account reserves at 31 march 1995 of £25 million the reserve which will not be available for
distribution in the foreseeable future was utilised by the group in 1996 to write off part of the goodwill arising
on the acquisition of spaces personal storage limited
21 acquisitions
during the year the group acquired aardvark self storage and rent a space goodwill on acquisition arose as
follows
conformity
book value of provisional fair 
prior to accounting value of net 
acquisition policies revaluations assets acquired
£’000 £’000 £’000 £’000
fair value of liabilities acquired
tangible fixed assets 12418 – 9612 22030
debtors including deferred tax of £517000 1318 – – 1318
borrowings including overdrafts of £947000 9221 – – 9221
other creditors 2381 160 – 2541
2134 160 9612 11586
fair value of consideration
deferred acquisition loan notes 7603
cash and expenses of acquisition 15494
23097
goodwill arising on acquisition 11511
in accordance with frs6 the group has disclosed the fair value of the assets acquired as provisional
the acquisitions did not have any material impact on the results of the group to 30 april 2003
48 mentmore plc annual report 2003
notes to the financial statements continued mentmore plc annual report 2003 49
22 commitments and contingent liabilities 
a operating lease commitments 
the group was committed to make the following payments over the forthcoming 12 months in respect of
operating leases which expire
2003 2002
land and land and
buildings other buildings other
£’000 £’000 £’000 £’000
within one year 80 17 –8
between one and two years –82 80 17
between two and five years 1005 174 910 213
over five years 10223 – 9870 –
11308 273 10860 238
b contingent liabilities 
the group had no contingent liabilities on documentary credits at 30 april 2003 2002 £nil the company and
certain of its subsidiary undertakings have entered into crossguarantee agreements in relation to banking facilities
made available to other group companies at 30 april 2003 the company’s contingent liability under these was £nil
2002 £94 million
23 pensions 
in preparing the financial statements for the current year the group has adopted the transitional arrangements of 
frs 17 “retirement benefits” as in previous years expenses have been charged under ssap 24
a pension disclosures under ssap 24
the group’s pension costs for the year ended 30 april 2003 are analysed below
2003 2002
£’000 £’000
other pension costs comprise
regular cost 38 30
amortisation of experience deficit 82 70
defined benefit scheme 120 100
defined contribution schemes 312 292
amount of the pension charge under ssap 24 432 392
there are no outstanding contributions in respect of the group’s defined contribution schemes at 30 april 2003 
or 2002
the group’s pension costs for its defined benefit scheme are determined with the advice of independent qualified
actuaries triennial actuarial valuations of the pension scheme are performed by a qualified actuary using the
projected unit method the most recent formal actuarial review of the defined benefit pension scheme was at 30 april
2003 the market value of the scheme assets at that date was £23m and the level of funding was 83 the
assumptions used by the actuary are best estimates chosen from a range of possible actuarial assumptions which
due to the timescale covered may not necessarily be borne out of practice the main actuarial assumptions used in
the valuation were
investment returns 75 pa
salary increases 41 pa
future pension increases 26 pa
the company is eliminating the deficit by increasing its contributions in the seven year period to 30 april 2010 the
deficit in the scheme is being recognised as a variation from regular cost over seven years in accordance with
actuarial advice provisions include £nil 2002 £131000 in respect of the deficit of accumulated pensions costs over
the amounts funded 50 mentmore plc annual report 2003
23 pensions continued
b supplementary pensions disclosures under frs 17 
the profit and loss account charge for pension costs the accounting policies and the disclosures above are given on
the basis of statement of standard accounting practice 24 ssap 24 is going to be replaced by financial reporting
standard 17 the additional disclosures that follow are given in preparation for frs 17 being adopted relate only to
the defined benefit scheme and omit certain comparative figures in accordance with the transitional rules of frs 17
the most recent actuarial valuation of the group’s defined benefit scheme was carried out as at 30 april 2003 by
independent actuaries using the projected unit method to assess the scheme’s liabilities as at 30 april 2003 the
scheme assets are stated at their market value at 30 april 2003 it should be noted that the methodology and
assumptions prescribed for the purposes of frs 17 mean that the disclosures will be inherently volatile varying
greatly according to investment market conditions at each accounting date
i contributions
the defined benefit scheme employers’ contributions for 2003 were £38000 2002 £30000 and the employers’
contribution rate has been fixed at £10045 per month until 30 april 2010 the additional contributions in respect of
the pension scheme actuarial deficit are in accordance with the recommendations of the scheme actuary
ii assumptions
the major assumptions used by the actuary in assessing scheme liabilities on a frs 17 basis were
at 30 april at 30 april
2003 2002
 
rate of increase in salaries 41 43
rate of increase in pensions in payment 26 28
discount rate 55 59
inflation assumption 26 28
iii frs 17 balance sheet information
the fair value of the scheme’s assets which are not intended to be realised in the short term and may be subject to
significant change before they are realised and the present value of the scheme’s liabilities which are derived from
cash flow projections over long periods and thus inherently uncertain were
longterm longterm
value at rate of return value at rate of return
30 april expected at 30 april expected at
2003 30 april 2003 2002 30 april 2002
£’000  £’000 
equities and property 944 75 1007 80
fixed interest 1163 50 1169 55
cash and other 154 15 72 50
fair value of assets 2261 2248
present value of scheme liabilities 2723 2615
actuarial deficit 462 367
deferred tax at 30 139 110
actuarial deficit after tax 323 257
notes to the financial statements continued mentmore plc annual report 2003 51
23 pensions continued
d net assets and profit and loss reserve 
if the group’s pension scheme deficit had been recognised in the group’s financial statements the net assets and
profit and loss reserve of the group and company would be as follows
group company
2003 2002 2003 2002
net assets £’000 £’000 £’000 £’000
net assets as reported on ssap 24 basis 158243 215668 172981 208841
add back ssap 24 pensions creditor net of deferred tax – 92 – 92
frs 17 pension liability net of deferred tax 323 257 323 257
net assets on frs 17 basis 157920 215503 172658 208676
2003 2002 2003 2002
profit and loss reserve £’000 £’000 £’000 £’000
profit and loss reserve as reported on ssap 24 basis 17621 40163 28499 7720
frs 17 pension liability net of deferred tax 323 257 323 257
profit and loss reserve on frs 17 basis 17944 39906 28822 7463
e analysis of the amount that would have been charged to operating profit
2003
£’000
current service cost 38
past service cost –
total operating charge 38
f analysis of the amount that would have been credited to other finance income
2003
£’000
expected return on pension scheme assets 151
interest on pension scheme liabilities 150
1
g analysis of the amount that would have been recognised in statement of total recognised 
gains and losses “strgl”
2003
£’000
actual return less expected return on pension scheme assets 203
experience gains and losses arising on the scheme liabilities 1
changes in assumptions underlying the present value of the scheme liabilities 100
actuarial loss recognised in strgl 304 52 mentmore plc annual report 2003
23 pensions continued
h movement in pension scheme deficit during the year
2003
£’000
deficit in scheme at beginning of year 367
current service costs 38
contributions 246
past service costs –
other finance income 1
actuarial loss 304
deficit in scheme at end of year 462
it should be noted that the scheme is closed to new entrants and so the use of the projected unit valuation 
method required by frs 17 means that the current service cost is likely to increase as the last member 
approaches retirement 
i history of experience gains and losses
2003
difference between expected and actual return on scheme assets
amount £’000 203
percentage of scheme assets  9
experience gains and losses on scheme liabilities
amount £’000 1
percentage of the present value of the scheme liabilities  –
total amount recognised in statement of total recognised gains and losses
amount £’000 304
percentage of the present value of the scheme liabilities  11
notes to the financial statements continued mentmore plc annual report 2003 53
24 financial instruments
the major financial risks facing the group treasury policy and the use of financial instruments are discussed in the
financial review on pages 17 and 18 the group has taken advantage of the exemption under frs 13 to exclude
short term debtors and creditors from the following disclosures
currency and interest rate risk profile of financial assets and liabilities
after taking into account interest rate swaps the currency and interest rate profile of the group’s financial assets
and liabilities was
non
floating interest
total rate bearing
financial assets £’000 £’000 £’000
at 30 april 2003
sterling 28762 28512 250
euro 40 40 –
28802 28552 250
at 30 april 2002
sterling 14918 14668 250
euro 15 15 –
14933 14683 250
financial assets comprise cash £134 million 2002 £41 million loans to joint ventures £143 million
2002 £104 million other fixed asset investments £03 million 2002 £03 million current asset investments 
£07 million 2002 £nil and longterm debtors £01 million 2002 £01 million cash at bank and in hand bears
interest at prevailing market rates loans to the joint venture bears interest at rates agreed between the joint
venture partners and during the year ranged from 36 to 42
it is not possible to compute the weighted average period until maturity for financial assets on which no interest is paid
weighted
weighted average
non average period for
interest floating fixed fixed which rate
total bearing rate rate rate fixed
financial liabilities £’000 £’000 £’000 £’000  years
at 30 april 2003
sterling 219062 2000 217062–––
euro 1327  1327–––
220389 2000 218389–––
at 30 april 2002
sterling 156298 – 146298 10000 705 056
euro 946 – 946–––
157244 – 147244 10000 – –
financial liabilities comprise borrowings of £2204 million the weighted average period until maturity for financial
liabilities on which no interest is paid is 3 years 2002 none floating rate liabilities bear interest based on libor
with the exception of £75 million which is subject to an interest rate collar which caps libor at 726 has a floor
of 550 and which expires in may 2004 54 mentmore plc annual report 2003
notes to the financial statements continued
24 financial instruments continued
maturity of financial liabilities
the maturity of financial liabilities was as follows
2003 2002
borrowings borrowings
£’000 £’000
within one year 3924 21403
between one and two years 5364 62781
between two and five years 211101 71671
after five years – 1389
220389 157244
fair values of financial assets and liabilities
the book values and estimated fair values of financial assets and liabilities was as follows
2003 2002
book value fair value book value fair value
£’000 £’000 £’000 £’000
other fixed asset investments 250 250 250 250
financial assets excluding other fixed asset investments 28552 28552 14697 14697
borrowings 220389 220389 157244 157244
interest rate swaps –– – 866
other matters
at 30 april 2003 the group did not have outstanding any forward currency contracts and had £47 million undrawn
amounts under its committed banking facilities currency gains and losses taken through the profit and loss
account during the year were immaterial mentmore plc annual report 2003 55
25 cash flow statement
a reconciliation of operating lossprofit to cash flow from operating activities
2003 2002
£’000 £’000
operating lossprofit 42698 20096
goodwill amortisation and impairment 60117 5726
depreciation charge 6275 4646
loss on sale of tangible fixed assets 105 21
decrease in stocks 488 320
increasedecrease in debtors 3754 613
increase in creditors 5481 98
decrease in provisions for liabilities and charges 131 30
net cash inflow from operating activities 25883 31490
b analysis of cash flows for headings netted in cash flow statement
2003 2002
£’000 £’000
returns on investments and servicing of finance
interest received 283 370
interest paid 12768 7224
net cash outflow for returns on investments and servicing of finance 12485 6854
proceeds from sale of investments
workspace group plc – 29947
own shares 2 208
net cash inflow for sale of investments 2 30155
capital expenditure 
purchase of tangible fixed assets 23620 40074
sale of tangible fixed assets 6072 786
net cash outflow for capital expenditure 17548 39288
acquisitions and disposals
acquisitions note 25d 15474 38
bank overdraftscash acquired with acquisitions 947 3
sale of homeware brands – 658
sale of imex holland – 1829
net cash outflowinflow for acquisitions and disposals 16421 2452
financing
debt due within one year – increase in borrowings – 4134
debt due beyond one year – increase in borrowings 219233 7191
debt due within one year – repayment of borrowings 13985 4200
debt due beyond one year – repayment of borrowings 152840 17296
capital element of finance lease rental payments – 8
net cash inflowoutflow from financing 52408 10179 56 mentmore plc annual report 2003
25 cash flow statement continued
c analysis of changes in net debt
other
at 1 may noncash at 30 april
2002 cash flow acquisitions movements 2003
£’000 £’000 £’000 £’000 £’000
cash at bank and in hand 4093 9303 – – 13396
current asset investments – 709 – – 709
overdrafts 9076 8525 – 11 540
4983 18537 – 11 13565
debt due within one year 12327 13985 2000 3042 3384
debt due after one year 135841 66393 6274 7958 216466
148168 52408 8274 11000 219850
total net debt 153151 33871 8274 10989 206285
other noncash movements relate to deferred acquisition loan notes loan amortisation costs written off during the
year and foreign exchange differences
d acquisitions
2003 2002
£’000 £’000
cash consideration and acquisition costs paid 13474 38
shareholder loans repaid on acquisition 2000 –
15474 38
notes to the financial statements continued mentmore plc annual report 2003 57
five year financial summary
as restated
2003 2002 2001 2000 1999
£’000 £’000 £’000 £’000 £’000
summarised profit and loss accounts
turnover 82102 77405 75019 48788 25931
underlying operating profit 31052 29368 29217 19298 8037
goodwill amortisation 7670 7091 6251 3049 –
disposal of sbs 61746 ––––
other exceptional items 360 – – 990 –
operating profit 38724 22277 22966 15259 8037
disposal of fixed assets 1588 1021 2541 956 –
disposal of operations – 1529 – 467 4433
disposal of investment – 9646 –––
investment income – – 683 190 –
profitloss before interest 37136 34473 26190 15938 12470
interest payable net 16702 9525 10854 4754 1215
profitloss on ordinary activities before taxation 53838 24948 15336 11184 11255
taxation 4031 6739 6152 2336 1413
profitloss for the financial year 57869 18209 9184 8848 9842
dividends 774 2270 2237 2099 998
retained profitloss transferred to reserves 58643 15939 6947 6749 8844
earningsloss per share
– underlying 675p 752p 736p 810p 632p
– basic 3185p 1007p 524p 620p 1150p
dividends per share 0425p 1252p 1222p 1222p 1155p
summarised balance sheets
fixed assets 374978 380231 354669 296312 37736
net current assetsliabilities 6924 23810 3820 11225 11592
total assets less current liabilities 381902 356421 350849 285087 49328
creditors amounts falling due
after more than one year 216848 136278 148199 106589 12
provisions for liabilities and charges 6811 4475 3345 842 133
net assets 158243 215668 199305 177656 49183
share capital 18211 18131 18097 17186 8621
reserves 140032 197537 181208 160470 40562
equity shareholders’ funds 158243 215668 199305 177656 49183
following the adoption of frs19 deferred tax with effect from 1 may 2000 comparative figures for 2001 have
been restated earlier years have not been restated  58 mentmore plc annual report 2003
advisers
auditors rsm robson rhodes llp
centre city tower
7 hill street
birmingham b5 4uu
bankers barclays bank plc
15 colmore row
birmingham b3 2ep
bank of scotland
123 st vincent street
glasgow g2 5ea
royal bank of scotland
8 park row
leeds
west yorkshire ls1 5ah
lloyds tsb bank
125 colmore row
birmingham b3 2ds
financial adviser bridgewell limited
old change house
128 queen victoria street
london ec4v 4bj
financial public relations buchanan communications limited
107 cheapside
london ec2v 6dt
lawyers eversheds llp
115 colmore row
birmingham b3 3al
registrars northern registrars limited 
northern house 
woodsome park 
fenay bridge 
huddersfield hd8 0la 
shareholder information line 0870 162 3131
stockbrokers hoare govett
250 bishopsgate
london ec2m 4aa mentmore plc park house 14 pepys road london sw20 8nh company number 307397
designed by rcd london limited produced by rcdcreative consortium photography graeme harris printed by svtwo
contents
01 financial highlights
02 chairman’s statement
04 chief executive’s statement
06 operating review
16 financial review
19 board of directors
20 directors’ remuneration report
26 corporate governance
28 directors’ report
30 statement of directors’  
responsibilities
31 independent auditors’ report
32 group profit and loss account
33 balance sheets
34 group cash flow statement
34 reconciliation of net cash flow
to movement in net debt
35 statement of total recognised
gains and losses
35 reconciliation of movements
in shareholders’ funds
36 accounting policies
38 notes to the financial statements
57 five year financial summary
58 advisers
personal storage
the group has 53 centres
providing selfmanaged
storage units for personal
customers and small and
mediumsized businesses
on flexible terms
records management
a partnership with iron
mountain incorporated
providing records and data
management services
across europe
serviced business space
the group has 225
serviced business space
centres offering trading
or office space on flexible
terms to businesses 
of all kinds mentmore plc
park house
14 pepys road
london sw20 8nh
t 020 8946 3159
e investorrelationsmentmoreplcuk
enquiriesmentmoreplcuk
w wwwmentmoreplcuk mentmore plc annual report 2003
mentmore plc annual report 2003


Summary:
 overview
the year has seen a major change in the group’s
strategic direction with the announcement in
december 2002 that the group planned to focus on
its personal storage and records management
operations and to sell its serviced business space
division “sbs” 
we are pleased to announce that we have
conditionally agreed to sell sbs to ashtenne
holdings plc for a consideration of £1890 million
the sale is conditional on shareholder approval and
this is the subject of a circular to shareholders issued
today  
the sbs disposal gives rise to provisions for
impairment and exceptional costs which before tax
amount to £617 million and lead to the company
having a deficit on its distributable reserves
we are therefore also asking for shareholder approval
for a capital reorganisation as a part of our strategy
to optimise the group’s capital structure including
the resumption of the payment of dividends and an
intention to return cash to shareholders when
appropriate 
your board strongly recommend that you vote in
favour of both resolutions 
group turnover from continuing operations increased
by 91 to £821 million 2002 £753 million and
profit on ordinary activities before interest goodwill
amortisation and exceptionals increased by 57 to
£311 million 2002 £294 million 
martin nye joined us as group chief executive in mid
january and is making a major contribution to the
group his priority has been to develop the group’s
future strategy details of our plans are included in 
his report
strategic developments
our review of the group’s strategic options concluded
that notwithstanding significant investment in sbs
over a number of years returns would not meet
those originally anticipated and that the group should
focus on its personal storage and records
management operations these offer stronger market
positions and higher future returns than sbs your
board therefore decided to take advantage of
beneficial market conditions for industrial properties
of the type comprising sbs by disposing of the
division
we have taken an important first step in
implementing our strategy by entering into a
conditional agreement to sell the sbs business 
the sale process has been comprehensive and your
board believes that this transaction optimises value
for shareholders the net cash proceeds of the
disposal will immediately be used to reduce the
group’s debt
there will be a loss to the group on the disposal of
£617 million primarily as a result of the writeoff of
goodwill arising on the acquisition of birkby plc in
1999 the company will have a deficit on its
distributable reserves of £285 million your board
therefore today announces a capital reorganisation
which subject to certain approvals will eliminate this
deficit enabling dividend payments and a return of
capital to shareholders when appropriate
following the sale of sbs the significance of iron
mountain europe “ime” our joint venture records
management company within the group will increase
we have started discussions with iron mountain
incorporated as to how we best recognise the value
of our investment in ime we are discussing many
options and there is a commitment from both parties
to finding a solution that benefits all the discussions
will continue over the coming months but we are
more concerned with finding the right solution rather
than a quick solution
2 mentmore plc annual report 2003
chairman’s statement
nick smith 
chairman trading
results for the year are overshadowed by pre tax
exceptional costs of £664 million of which £655
million relates to losses arising as a result of the
disposal
group turnover from continuing operations increased
by 91 to £821 million 2002 £753 million and
profit on ordinary activities before interest goodwill
amortisation and exceptionals grew by 57 to 
£311 million 2002 £294 million ebitda before
exceptional costs increased by 113 to 
£394 million 2002 £354 million
against a difficult economic and competitive
environment personal storage operating profit before
goodwill amortisation increased 56 to £80 million
2002 £76 million this was a result of market
pressures to which we were slow to react we are
addressing the issues of management in this division
and expect to see improvements over coming
periods
the group’s share of the operating profit before
goodwill amortisation of ime grew by 570 to 
£56 million 2002 £35 million and ebitda by
498 to £77 million 2002 £51 million these
results demonstrate the strength of this business 
and the fact that our investments in management
systems and infrastructure are now paying off
serviced business space operating profits before
goodwill amortisation declined 37 to £175 million
2002 £182 million
capital reorganisation and dividend
there will be no final dividend this year as the
company does not have sufficient distributable
reserves if shareholders support the capital
reorganisation proposals we shall seek the required
approval from the high court assuming all consents
are received this will put us in to a position from
which we shall be able to return funds to
shareholders when appropriate
it would be our intention to resume dividend
payments and to pay a special oneoff interim
dividend of 089p per ordinary share in lieu of this
year’s final dividend as soon as the requisite
approvals for the capital reorganisation are obtained
the capital reorganisation will also allow the
company to initiate a programme of returning cash to
shareholders 
amended banking arrangements have been
negotiated for the continuing group which will
support general working capital requirements and
growth this may involve proceeds being used to
fund organic growth and if the directors consider
such investments appropriate acquisitions within the
personal storage and records management sectors
in addition at the annual general meeting the
company intends to seek an authority from
shareholders for the power to purchase up to 10 of
its own ordinary shares for subsequent cancellation
the directors will only use this authority if in the light
of market conditions prevailing at the time they
believe that the effect of any purchase would be to
enhance earnings per share and be in the interests of
shareholders as a whole
people
in thanking our staff for their loyalty and support i
recognise that it was a year when the business
environment was difficult and where a great many of
our people were affected by the uncertainties
surrounding the sbs sale in these circumstances
their contribution has been exceptional
martin nye is now firmly established as group chief
executive and he has already taken on full
responsibility for the group’s trading he has led the
development of our ongoing strategy and will be
responsible for its delivery  following the annual
general meeting i shall move to the role of non
executive chairman i look forward to this change
which will be in line with plans announced this time
last year 
trading update and outlook
all of our businesses have made an encouraging start
to the new financial year and are trading in line with
our plans  investments in management and
processes are being made but we are not
anticipating a return on this investment until later in
the financial year the directors are confident of the
prospects and outlook for the continuing group in the
current financial year and are encouraged by the
prospects of the markets served by our two
continuing operations
as previously announced ime is participating in the
sale process for the records management business of
hays plc 
by focusing on personal storage and records
management businesses with strong market
positions and growth prospects we are providing a
firm base on which to implement a strategy of
delivering value to shareholders  
nick smith
chairman
9 july 2003 
mentmore plc annual report 2003 3