2010
annual report and accounts financial highlights 1
chairman’s statement 2 – 4
chief executive’s review 5 – 7
business and financial review 8 – 9
corporate social responsibility statement 10 – 12
board of directors 13
directors’ report 14 – 17
corporate governance statement 18 – 21
nomination committee report 22
audit committee report 22 – 23
directors’ remuneration report 24 – 28
independent auditors’ report to the 
members of office2office plcs 29
consolidated income statement 30
consolidated statement of comprehensive income 31
consolidated and company balance sheets 32
consolidated statement of changes in equity 33
company statement of changes in equity 34
consolidated and company cash flow statements 35
significant accounting policies 36 – 42
notes to the financial statements 43 – 74
five y ear summary 75
shareholder information 76
company details 77
”office2office plc o2o is a very different company to that of three years ago we have invested
in a new services division and have changed the focus of our activities today we provide
managed services based on two key operating segments  managed procurement and business
critical services these are geared to help our customers deliver sustainable savings through
outsourcing their noncore yet essential business activities”    simon moate chief executive
contents o2o plc report and accounts 2010 1
revenue £2076m £1875m
profit before tax £46m £81m
basic earnings per share 121p 172p
underlying profit before tax
1
£112m £131m
underlying earnings per share
2
253p 271p
net debt £314m £278m
final dividend proposed
total dividend for the year
2010 2009
2010 2009
£28m £28m
78p per share 78p per share
£41m £41m
114p per share 114p per share
1 profit before tax nonrecurring costs of £53m 2009 £36m £01m share option charges 2009 £04m £02m negative goodwill 2009
£nil and amortisation of intangibles of £14m 2009 £10m refer to the consolidated income statement on page 30
2 profit after tax before the after tax effect of nonrecurring costs share option charges negative goodwill and amortisation of intangibles
divided by the weighted average number of ordinary shares in issue refer to note 11 to the financial statements
financial highlights o2o plc report and accounts 2010 2
results
revenue increased to £2076m 2009 £1875m reflecting
the beneficial impact of acquisitions during the year
underlying profit before tax fell by £19m to £112m 2009
£131m after a £15m 2009 £nil contribution from those
acquisitions
we incurred £53m 2009 £36m of nonrecurring costs
£39m being directly attributable to the investment in tpf
see corporate activity below and its subsequent integration
with accessplus the balance of £14m related to
restructuring elsewhere in the business
profit before tax was £46m 2009 £81m and profit after
tax was £43m 2009 £63m basic and fully diluted earnings
revenue increased to £2076m 2009 £1875m reflecting the impact of acquisitions
primarily to expand our business critical services activity underlying profit before tax fell to
£112m from £131m a shortfall driven by reduced public sector sales volume in our managed
procurement activity which was evident from june 2010 following the announcement of public
sector cutbacks but has improved since the year end and exacerbated by order intake shortfall
and delivery difficulties caused by the severe weather conditions at the close of the year 
over the last three years we have taken measures to mitigate the group’s reliance on sales of
office products to the public sector as part of the strategic plan which was initiated in 2007
following withdrawal from the mod supply arrangement in summary we have changed our
business focus and have
•
extended the traditional office products business into higher valueadded managed
procurement services
•
built two entirely new business critical services activities  managed communications and
document processing  both of which have good organic growth potential 
•
grown sales to the private sector which now accounts for almost two thirds of the sales mix
and 
•
rationalised recurring costs as a proportion of revenue
chairman’s statement  
david callear
per share were 121p 2009 172p and 171p respectively
underlying earnings per share were 253p 2009 271p
cash generated from operations and net debt
cash generated from operations decreased by £67m to
£50m 2009 £117m this reflected 


Summary:
 o2o plc report and accounts 2010 5
chief executive’s review  
simon moate
introduction
throughout 2007 and 2008 we restructured the group
following our decision to withdraw from the mod supply
arrangement we developed and began to deliver on a
strategy to offer a new range of complementary business
critical services however soon after the acquisition of
accessplus in 2008 the banking crisis brought on recession
which meant that we had to stop development and both
consolidate and adjust our cost base to reflect the impact of
corporate customers tightening their belts 
in 2010 we scaled our business process outsourcing activity
shortly afterwards the group’s public sector volumes were
adversely impacted following the general election and the
resultant comprehensive spending review 
these events required decisive operational management
action and a clear strategy to uphold our open sustainable
and ethical business values as we maintained growth despite
the various stresses on our volumes and whilst managing our
cost base
o2o is a very different company to that of three years ago we have invested in a new services
division and have changed the focus of our activities today we provide managed services based
on two key operating segments  managed procurement and business critical services these
are geared to help our customers deliver sustainable savings through outsourcing their non
core yet essential business activities these two operating segments comprise three key
business areas
•
banner business services bbs incorporating accord office supplies accord  managed
procurement contracts for blue chip clients and sme clients providing office supplies
furniture technology etc
•
banner managed communication bmc  business process outsourcing covering print
management document management marketing services direct marketing and professional
consultancy and
•
banner document services bds  on and offsite shredding electronic waste and 
”closed loop” 
2010 trading review
the expansion by acquisition of our business critical services
activity resulted in a 108 increase in sales to £2076m
however our profits were impacted by a number of factors 
the first quarter of 2010 was characterised by strong trading
performance with volumes exceeding our expectations
supported by our success in extending our key customer
contract with the hmrc collaborative framework
in february we acquired the trade and assets of tpf’s
business process outsourcing division this acquisition
strengthened both our volumes and our customer proposition
in this market whilst providing us with an opportunity to
realise synergies with accessplus during the second quarter
we began the process of integration albeit our more
immediate focus was on securing tpf’s customer base and
confirming trading relationships with suppliers
however in may the general election resulted in a new
coalition government with a clear focus on reducing public o2o plc report and accounts 2010 6
chief executive’s review  
continued
sector expenditure and we saw an immediate impact on our
public sector sales volumes 
adverse weather conditions towards the end of the year
caused disruption to customer sales ordering supplier
delivery of inbound products and services and our ability to
maintain last mile deliveries to our customers inevitably this
had a knock on effect resulting in a soft last quarter and a
negative impact on our results
managed procurement – revenue £1457m 70
of group revenue 
in common with others our traditional office product markets
have shown signs of progressive product commoditisation
currency fluctuation and product cost increases forcing
downward pressure on margins 
our response has been to remodel our product and service
offering to an open book and transparent style where our
customers enjoy the benefit of our growing scale and
competitive procurement abilities as a consequence our
income streams now arise from a range of value added
options from management procurement distribution and
logistics customer service and management data reporting
this open book proposition now represents approximately
half of our group trading revenue and is set to increase as our
customers enjoy and see the benefit of an open sustainable
and cost efficient relationship the benefits for o2o are
reduced exposure to commodity price fluctuations long term
strategic relationships with our customers and better
positioning in this market place this has been vindicated by a
high level of new business wins with blue chip customers
business critical services – revenue £620m
30 of group revenue
new brand – integration complete
by the end of the third quarter the management of tpf and
accessplus had been restructured and a new md appointed
trading had been stabilised and visibility of performance
improved in order to leverage the strength and positive
positioning of the banner name in our target markets we have
rebranded the combined tpf and accessplus business as
bmc this rebranding is now complete and is established with
customers and suppliers
with scale comes opportunity – business process
outsourcing
the combination of these businesses under a single brand has
also extended the range of services we are able to offer
including inbound and outbound marketing and
communication services all aligned to support the growing
trend by companies to outsource the operational
management and delivery of their customer and business
communications bmc operates in a market valued at £20bn
pa which is significantly larger than our traditional office
products market of circa £55bn pa this presents us with a
significant opportunity to grow and expand our new scale
and capability is reflected in the number of new business wins
achieved throughout 2010 and demonstrates that tpf has
been a sound acquisition  
“closed loop” – bds
prior to the year end we acquired the remaining shares in
bds we now have ownership and full control of this
important and developing business in addition bds has
entered into a long term contractual arrangement with phs to
manage the operation and fulfilment of our uk activities this
arrangement provides greater uk geographical coverage
including northern ireland and will increase the capacity and
availability of paper waste the raw material required to
support the growth in production of our “closed loop”
service 
new government positioned to take advantage of new
priorities
our unique confidential document destruction and recycling
service “closed loop”  is a key strategic focus for the group
we developed this to help government achieve its target that
40 of all printer paper must be recycled and from
sustainable resources accordingly we engaged with senior
procurement managers who were taking the lead in driving
procurement reform within government and offered to o2o plc report and accounts 2010 7
extend the “closed loop” initiative more widely gaining
cabinet office support both for it and also product range
rationalisation in existing supplies 
as well as differentiating us from our direct competitors
“closed loop” is a growing and increasingly important
revenue stream to replace declining public sector volumes
elsewhere and to further enhance our corporate sector
activity
2011 and beyond
our operational strategy remains focused on