annual report and accounts
2006
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2006 annu al repor t and a ccounts
 radar   navigation aids  instruments  autopilots  satellite tv  communications  fishfinders  software  systems  contents
1  financial highlights
2  chairman’s statement
5 chief executive ofﬁ cer’s review
8 financial review
14 board of directors 
16 corporate governance statement
20  directors’ remuneration report
24 company history
26 directors’ report
28 statement of directors’ responsibilities
29 independent auditors’ report to the members of raymarine plc 
30 consolidated income statement
31 consolidated statement of recognised income and expense
32 consolidated balance sheet
33 consolidated cash ﬂ ow statement
34 notes to the ﬁ nancial statements
58 independent auditors’ report to the members of raymarine plc 
59 company income statement
59 company statement of recognised income and expense
60 company balance sheet
61 company cash ﬂ ow statement
62 notes to the company ﬁ nancial statements
66 five year summary
67 shareholder information and professional advisers financial highlights
1
  adjusted measures present the results after adding back restructuring costs of £78m 2005 £109m ﬂ otation and other nonrecurring costs of £nil 2005 £03m credit and amortisation of other intangible ﬁ xed assets of £07m 
2005 £07m
2
  ebita earnings before interest tax and amortisation comprises operating proﬁ t before amortisation of other intangible ﬁ xed assets of £07m 2005 £07m
3
  ebitda earnings before interest tax depreciation and amortisation comprises operating proﬁ t before amortisation of other intangible ﬁ xed assets of £07m 2005 £07m and depreciation of property plant and equipment of 
£31m 2005 £32m
4
  see note 12
actual 
2006
adjusted
1
 
2006
actual 
2005
adjusted
1
 
2005
revenue £m 1365 1365 1219 1219
gross proﬁ t £m 562 562 458 458
gross margin 412 412 376 376
ebita £m
2
168 246 118 224
ebita margin 123 180 97 184
ebitda £m
3
199 277 150 256
proﬁ t before tax 
£m
141 226 81 194
dividend p 875p 875p 70p 70p
earnings per share
4
basic p 125p 200p 101p 171p
diluted p 122p 196p 100p 169p
raymarine plc annual report 2006 1 chairman ʼs statement
raymarine achieved good progress in 2006 in 
our second year as a listed group we have seen 
continued growth in revenues and proﬁ ts 
the robust demand in the early part of the 
year which led to a period of short supply of 
ﬁ nished goods was professionally handled and 
resolved by the executive team and by year 
end most major markets had exceeded their 
revenue targets the adjusted ebita rose by 
£22m 2006 £246m 2005 £224m the 
ﬁ nal dividend of 595 pence per share when 
combined with the interim dividend of 28 pence 
per share demonstrates 25 growth over 2005 
the dividend is covered 23 times by adjusted 
basic earnings
we have increased the pace of research and 
development the resulting introduction of new 
enhanced and innovative products continues 
to reinforce our reputation as the leading 
provider of high quality leisure marine electronics 
worldwide 
a major milestone with the outsourcing project 
was achieved with the ontime completion of 
the transfer of all the production cells from 
portsmouth to the flextronics factory in hungary 
this ﬁ rst phase was completed with exceptional 
professionalism and the whole team is to be 
complimented on this signiﬁ cant achievement 
the next phase of ensuring we obtain the full 
ﬁ nancial beneﬁ ts of worldwide sourcing with 
our partner is now being approached with equal 
vigour by the team
a review of the asiapaciﬁ c markets identiﬁ ed a 
growing number of opportunities for the group 
in asia and australia a senior executive has been 
appointed to manage the region and a wholly 
owned subsidiary has been established to provide 
the cornerstone of our activities in the region
the end of the year saw kieran breheny 
engineering director retire from the board after 
12 years with the group i and the board would 
like to thank kieran for his contribution to the 
group in those years we are very pleased to 
have been able to appoint gordon pope to 
the position of engineering director gordon 
brings a wealth of electronic engineering and 
management skills to the group
i would also like to thank the management 
and all our employees for their contribution to 
another successful year their commitment has 
been outstanding and we would further extend 
our thanks and very best wishes to the personnel 
affected by the outsourcing project
our past investments have enabled us to build a 
very strong position in the world’s leisure marine 
markets we continue to invest and expand on 
those foundations and the board expects the 
group to continue to make good progress in 
2007 and reach the targets set
peter ward
chairman
26 february 2007
 calculations of these measures is explained on page 1
raymarine plc annual report 2006 2 raymarine plc annual report 2006 3 raymarine plc annual report 2006 4 chief executive ofﬁ cer ʼs review
introduction
the year to 31 december 2006 was an extremely 
active and successful one during which our sales 
grew by 12 from £1219m to £1365m whilst 
launching many new products and transferring 
all manufacturing from our portsmouth site to 
an outsourced facility in hungary in the ﬁ rst half 
of the year we experienced restricted supply for 
several months despite which for the full year 
adjusted ebita rose by 10 from £224m to 
£246m
adjusted ebitda grew by 8 to £277m and 
we are pleased to announce a 19 increase in 
the ﬁ nal dividend to 595 pence per share 
the market
the market for leisure marine electronics has 
demonstrated similar tends throughout the 
company’s 30 year history boats are increasing 
in size and sophistication boat owners skippers 
and crew are increasingly expecting a wider 
range of electronics for safety navigation vessel 
control communication and entertainment 
2006 has been no exception in demonstrating 
these trends although the market for mid to 
large boats where raymarine is strongest 
fared much better than the market for smaller 
boats recent reports conﬁ rm that demand over 
the past year for new small leisure and ﬁ shing 
boats those less than 25 feet in length where 
raymarine has its lowest brand share have 
been hardest hit larger and luxury boats our 
main markets continued to beneﬁ t from healthy 
demand 
we beneﬁ t from our very strong relationships with 
builders of new boats across the world however 
the larger part of our business is centred on 
supplying a comprehensive range of electronics for 
the refurbishment and replacement market
trading
demand and sellthrough was robust and 
consistent throughout our world markets 
although developing markets enjoyed greater 
growth 
in the ﬁ rst half of the year we experienced 
product supply difﬁ culties these were caused 
by a mismatch between anticipated and actual 
demand late introduction of new products 
and a uk component supplier ceasing to trade 
these had been resolved by the time we entered 
our second half the us and uk suffered most 
from these disruptions though the us business 
recovered well revenues by the year end were 
up 8 in dollar terms on the previous year the 
uk domestic market now less than 10 of our 
business however was unable to recoup the 
shortfall and year on year revenues fell by 4
our fastest growing markets were the middle 
east up 55 year on year and eastern europe 
where sales grew by 47
business in northern europe experienced 
healthy demand with scandinavia in particular 
contributing to a 35 increase in sales southern 
european countries showed an increase of 22
asiapaciﬁ c trade was disappointing given 
the opportunities in this market a modest 
9 increase in sales does not reﬂ ect its true 
potential we have taken steps to address 
this including taking direct control over our 
distribution in this region
product development
raymarine’s unique skills and intellectual 
property built over many years allow for the 
multilevel networking of devices to give users 
conﬁ dence safety simplicity and functionality at 
sea whenever we develop products we consider 
this encompassing proposition particularly for 
mid to larger boats that need a complete suite of 
high technology electronics
for smaller boats we utilise the same 
technologies but in more compact stand alone 
units our development of high deﬁ nition ﬁ sh 
ﬁ nding technology is an example of this as is our 
expertise in bright sunlight viewable displays
new products are the lifeblood of the business 
and they received much attention from within 
the company and a high level of interest 
amongst customers worldwide boat shows are 
a testament to consumer’s insatiable appetite 
for new well designed and robust products 
established products continue to sell well 
however with life cycles which are much longer 
than might be expected in other industries
during the last year we successfully launched 
14 new products most of them were launched 
within the ﬁ rst half although a little later than 
planned by the end of 2006 they were all in full 
distribution and been well received 
these new products covered an updated 
instrument range which offers functionality from 
standalone display units to fully integrated 
systems providing information on speed depth 
wind heading temperature and compass plus 
autopilot control heads that offer large displays 
with heading and rudder angle indicators pilot 
controls and autotack
with safety at sea paramount raymarine launched 
its wireless man overboard system lifetag lifetag 
is small and can be worn or pocketed if a crew 
member falls overboard or strays outside the 
range typically 30 feet contact with base station 
is broken and an alarm will sound in addition 
lifetag can be activated on raymarine’s c and e 
series displays giving an emergency visible symbol 
and a bearing for passage to that point 
 calculations of these measures is explained on page 1
raymarine plc annual report 2006 5 malcolm miller
chief executive ofﬁ cer
26 february 2007
the new a65 was well received particularly in 
scandinavia where it made a good choice for 
owners of smaller boats with open cockpits 
and centre consoles it is a dual function 65” 
sunlight viewable display combining simplicity 
with advanced chart plotting and high deﬁ nition 
ﬁ sh ﬁ nding technology
enhancements to e series were introduced 
giving the ability to input weather data and 
3rd party automatic identiﬁ cation systems this 
together with other upgrades ensured that this 
product range again led the multifunction sector
new radar scanners were launched in newly 
designed radome housings these give improved 
target separation and clarity at short ranges 
plus increased target visibility at long ranges
many new products are planned for introduction 
in 2007 and beyond
supply chain 
in july 2005 we took the decision to move our 
entire portsmouth manufacturing facility to an 
outsourced partner with a large manufacturing 
plant in hungary 
we have commented regularly on the two 
phases of the project the ﬁ rst phase was 
the intensely detailed one of the transfer 
of printed circuit board insertion assembly 
process production cells test equipment and 
training from one site to another considering 
the differing languages practices and 
processes together with a year of new product 
introduction and record volumes this has been 
accomplished very successfully on timetable and 
on budget 
we are delighted with the contribution this 
has made to increased output quality and 
production yields
the second phase of the project entails moving 
from raymarine’s suppliers of raw materials 
and components to flextronics’ suppliers and is 
on schedule but yet to be completed as i said 
in my last report whilst we remain conﬁ dent 
there are risks these risks are associated with 
the selection valuation approval and usage of 
a great number of parts it is anticipated that 
this phase will be ﬁ nished during the ﬁ rst half 
of 2007 
people
people are our most highly valued resource 
and for the raymarine family where some of 
our colleagues have been with us for more 
than 25 years 2006 has been a challenging 
year we have sadly had to say farewell to over 
200 people mainly through the redundancy 
programme associated with outsourcing 
production
the relatively smooth transfer of production to 
hungary is due to the tireless approach of many 
employees and we are enormously grateful 
for their contribution even though some were 
aware they may lose their jobs this together 
with our partner’s approach to diligence and 
commitment created an environment where risk 
assessment teamwork and focus contributed to 
a very successful outcome 
the group is likely to undergo further change as 
we assess where we need to recruit and retrain 
people to ensure that we remain ahead in this 
industry through continual improvement to 
product process and performance
outlook
we expect trading in the current year to be in 
line with expectations
demand has continued to be robust in the 
uk and the rest of the world following a 
stronger than expected close to 2006 although 
a resultant shortage of certain products has 
meant that we have so far been unable to 
fully capitalise on this opportunity the us also 
ﬁ nished last year better than anticipated but 
has seen a slow down in the market in recent 
weeks we do however expect the us to meet 
our overall targets for 2007
raymarine has a large number of new product 
launches scheduled for 2007 in areas of new 
instrumentation systems and displays – most 
of these are targeted at the larger luxury end of 
the boating market although some are aimed at 
smaller boats
as a result we look forward to the future with 
conﬁ dence
raymarine plc annual report 2006 6 raymarine plc annual report 2006 7 year ended 31 december
2006
£’000
2005
£’000
revenue 136490 121851
gross proﬁ t 56232 45761
gross margin 412 376
adjusted ebita before foreign exchange 24175 19560
adjusted ebita margin before foreign exchange 177 161
foreign exchange gains 469 2830
restructuring costs note 5b 7823 10909
finance costs net of ﬁ nance income 2005 3015
proﬁ t before taxation 14091 8062
adjusted proﬁ t before taxation
1
22639 19375
adjusted eps basic note 12 200p 171p
net debt 43632 38393
financial review
2006 has been a busy and successful year 
for raymarine earnings per share increased 
by 17 to 200p adjusted basic eps the 
success of the group is recognised by the board 
in proposing a full year dividend of 875p an 
increase of 25
revenue was £1365m 2005 £1219m an 
increase of 12 demand for the group’s 
products continued to be strong and had the 
group not suffered from product shortage during 
the ﬁ rst half of the year an even higher level of 
sales would have been achieved sales in the 
uk decreased by 4 and in the us increased 
by 8 in dollar terms both these markets were 
particularly hit by the shortages in product 
supply in the rest of the world sales increased 
by 18 which is extremely encouraging sales at 
the end of 2006 ﬁ nished on a particularly strong 
note
adjusted ebita after foreign exchange was 
£246m 2005 £224m an increase of 101 
the group had previously enjoyed signiﬁ cant 
foreign exchange gains from a series of 
longterm forward exchange contracts the 
remainder of which expired in the ﬁ rst quarter of 
2006 this distorts the comparison in the growth 
in ebita between the years before this foreign 
exchange adjusted ebita grew by 235 
to £242m 2005 £196m gross margins 
increased to 412 from 376 
a key feature of 2006 has been the transfer 
of manufacturing to flextronics in hungary 
and the closure of raymarine’s manufacturing 
facilities in portsmouth this has been the focus 
of much management time and attention during 
the year as well as considerable investment 
through restructuring costs the transfer was 
successfully completed on schedule before the 
end of the year restructuring costs were £78m 
2005 £109m bringing the cumulative total 
to £187m the board continue to believe that 
the total costs to complete this project will 
amount to £210m it should be noted that the 
completion of the transfer of manufacturing does 
not signal the end of the project the move away 
from existing suppliers to new low cost sources 
of supply which constitutes the most proﬁ table 
but also the most complex phase of outsourcing 
is scheduled to complete during the ﬁ rst half of 
2007 
adjusted proﬁ t before tax was £226m 2005 
£194m an increase of 165 adjusted basic 
earnings per share were 200p 2005 171p 
an increase of 17 with an underlying tax rate 
of 268 2005 268 the statutory operating 
proﬁ t is £161m 2005 £111m
at 31 december 2006 net debt stood at £436m 
2005 £384m notwithstanding amongst other 
items the cash costs of the outsourcing project 
of £100m and the increase in dividends paid out 
of £48m 
gross margins
gross margins increased to 412 from 
376 the principal gains have come from 
an improvement in the mix of higher margin 
products improved warranty costs offset by 
higher freight costs
set out below is a comparison of the results for 
the year with those of the prior year
1
 before restructuring costs and amortisation 
 calculations of these measures is explained on page 1 
raymarine plc annual report 2006 8 the e series multifunction range in particular 
enjoyed continued success throughout the year 
together with the e series ray 240 vhf with 
digital selective calling and c series were the 
signiﬁ cant contributors to the improvement in 
product mix this is encouraging
product warranty is a signiﬁ cant cost for 
raymarine as the group provides warranties 
extending up to three years and featuring repair 
or replacement on board reducing the incidence 
of warranty claims has been an important focus 
of activity and it is pleasing to report that the 
actions taken including product improvement 
and changes to some of the warranty terms 
have resulted in both a reduced level of warranty 
claim during the year and requirement to provide 
for potentially outstanding claims to come it is 
hoped that warranty costs can be further reduced 
in the near future
as reported in the ﬁ rst half the group suffered 
from a shortage of product during the year and 
lost a signiﬁ cant amount of sales as a result 
this situation was rectiﬁ ed during the year 
however a knock on effect was a signiﬁ cant 
increase in freight costs as a result of greater 
use of airfreight both to expedite supplies of 
components into production and to speed 
despatch of ﬁ nished items to waiting customers 
a focus for 2007 is to reduce the level of this 
cost
research and development
investment in developing innovative high quality 
products is central to the group’s growth 
raymarine’s strategy of strong investment in 
product development is the cause of the high rate 
of sales growth achieved by the group and this 
type of expenditure has generated a high return 
on investment the board believes that raymarine 
is a leader in its markets in the amount invested 
in research and development the group expects 
to increase its investment in rd over time in 
line with sales 2006 saw a £42m increase in 
the cash expenditure invested in development 
costs bringing the total cash spend on rd up 
to £126m 2005 £84m and in consequence 
under ias 38 the amount capitalised has risen 
by £43m to £79m or 63 2005 43 of 
the total amount spent on rd amortisation 
and impairment of rd the charge for which is 
included in ebita was £35m 2005 £26m 
the net charge to the income statement was 
£83m 2005 £74m at 31 december 2006 the 
amount of development expenditure capitalised 
under ias 38 and held in the balance sheet was 
£117m 2005 £74m which amounts to 40 
of the rd spend incurred over the last three 
years of £292m capitalised rd is written off 
over three years
raymarine plc annual report 2006 9 restructuring costs
the outsourcing costs of £78m 2005 £109m 
cover consulting and other staff related costs 
property costs and the costs of transferring 
stocks equipment and operating knowhow 
offset by the proceeds of ﬁ xed asset disposals 
further details can be found in note 5b to 
the accounts the board expects that a high 
proportion of these items will be tax deductible 
costs cash expenditure on outsourcing was 
£100m 2005 £45m
interest
net interest payable was £24m 2005 £24m 
at the half year the interest charge had been 
favourable to the prior year reﬂ ecting a lower 
average level of net debt however a larger 
proportion of the restructuring expenditure and 
the rd spend was made in the second half of 
the year in addition to the growth in ﬁ nished 
goods inventories which increased in response 
to the supply problems encountered in the ﬁ rst 
half the interest charge was covered 115 times 
2005 107 times by adjusted ebitda 103 
times 2005 93 times by adjusted ebita 
and 70 times 2005 49 times by unadjusted 
ebita these ratios show the liquidity of the 
group and its strong underlying cash position 
current borrowing costs are based on the 
total level of net debt on a ratchet which runs 
between 50 and 115 basis points over libor for 
the currency in which the borrowings are drawn 
net interest consists of interest costs of £25m 
2005 £26m less interest income of £01m 
2005 £02m full details are provided in note 
9 to the accounts all the group’s borrowings 
are currently at variable rates of interest
taxation
the charge for taxation was £37m 2005 
£03m credit giving an adjusted effective tax 
rate of 268 2005 268 adjusted the 
small credit in 2005 reﬂ ected the beneﬁ t of 
two exceptional tax credits both arising as a 
result of the ﬂ otation of the group which at the 
time were removed when presenting adjusted 
earnings this credit would have been larger in 
2005 had a greater proportion of the deferred 
tax assets of raymarine’s us subsidiary been 
recognised it is considered appropriate to make 
an adjustment for this now and a deferred tax 
asset of £05m has been recognised in the 
accounts 
dividends
subject to shareholder approval at the annual 
general meeting a ﬁ nal dividend of 595 pence 
per share 2005 50 pence will be paid on 
25 may 2007 to shareholders on the register 
of members at the close of business on 4 may 
2007 in accordance with the international 
financial reporting standards adopted by the 
group last year the cost of this ﬁ nal dividend 
of £49m 2005 £41m will not be recognised 
  calculation of these measures is explained on page 1
in the accounts until it is approved by the 
members combined with the interim dividend 
already paid of 28 pence 2005 20 pence 
this amounts to a dividend for the full year of 
875 pence 2005 70 pence an increase of 
25 over the prior year and is intended to 
reﬂ ect both the increase in earnings and the 
group’s cash position the dividend is covered 
23 times by adjusted basic earnings note 12
earnings per share
basic earnings per share eps were 125 
pence 2005 101 pence an increase of 
238 both these ratios are distorted by the 
heavy expenditure on restructuring costs in 
both years and the exceptional tax credit in 
2005 adjusted basic eps increased by 17 
to 200 pence 2005 171 pence 
adjusted fully diluted eps was 196 pence 
2005 169 pence an increase of 16 
the small dilution relates largely to the effect 
of the longterm incentive plan ltip assuming 
the vesting of these awards to the group’s 
senior managers who are invited to participate 
in this plan
cash ﬂ ow and net debt
the group has a strong balance sheet backed 
by a committed 5 year multicurrency borrowing 
facility of 135m that commenced in december 
2004 in addition the group has a £9m 
overdraft facility the group’s business generates 
strong operating proﬁ ts that are converted into 
cash adjusted ebitda before restructuring 
costs was £277m 2005 £256m an increase 
of 82 adjusted ebitda is 203 of revenue 
2005 210
operating cash ﬂ ows before movements in 
working capital were £207m 2005 £261m 
the decrease of £54m is primarily a result 
of the nonrecurring expenses relating to the 
outsourcing project incurred or committed in 
2005 but not paid for until 2006 additionally 
the beneﬁ t to cash ﬂ ow in 2006 from longterm 
foreign exchange contracts which have now all 
been realised was only £04m 2005 £28m 
 
net debt rose by £52m to £436m 2005 
£384m at this level the group had £255m 
of committed but unutilised borrowing facilities 
available to it under its bank covenants in 
overview the principal cash outﬂ ows calling 
upon adjusted ebitda and leading to the 
increase in net debt were dividend payments 
£65m 2005 £17m the increase in product 
development investment of £42m the increase 
in receivables of £60m restructuring payments 
made for the outsourcing project £100m 2005 
£45m and uk corporation tax payments of 
£34m 2005 refund of £02m the outsourcing 
project is scheduled to complete during the ﬁ rst 
half of 2007 following which it is expected that 
net debt will reduce rapidly from accumulating 
cash ﬂ ow
net debt consists of gross debt of £457m 
2005 £404m detailed in notes 17 and 20 
less cash balances of £21m 2005 £20m 
operating cash ﬂ ow and notes to the cash ﬂ ow 
statement are detailed in note 29
raymarine plc annual report 2006 10 raymarine plc annual report 2006 11 raymarine plc annual report 2006 12 capital expenditure
capital expenditure was £44m 2005 £41m 
this was mainly incurred on ﬁ xtures ﬁ ttings 
tools and equipment the group’s business is not 
a capital intensive one outside of the research 
and development of new products which is the 
group’s dominant channel of investment
financial instruments and risk 
management
the group does not enter into speculative 
ﬁ nancial transactions and uses ﬁ nancial 
instruments for certain risk management 
purposes only 
the group’s transactions are entered into in 
several different currencies approximately half 
of raymarine’s sales are received in us dollars 
which the group attempts to hedge naturally 
by procuring supplies in us dollars these are 
converted into pounds sterling euros and 
japanese yen regularly throughout the year 
the outsourcing arrangement with flextronics 
reduced considerably the group’s net exposure 
to the us dollar as this supply contract is 
denominated in us dollars 
it is raymarine’s policy to keep under review the 
requirement for covering any remaining currency 
exposures through forward exchange contracts 
the group had no such contracts in place at 
31 december 2006 it also aims to match 
the currency of its borrowings with the main 
transaction currencies
the group keeps under review the 
appropriateness of ﬁ xing interest rates on its 
borrowings although at 31 december 2006 all 
debt was at ﬂ oating rates in light of the very 
high degree of interest cover from cash ﬂ ow and 
earnings
foreign exchange
in 2001 the group took out a series of long 
dated foreign exchange contracts selling the us 
dollar forward at advantageous rates in order 
to cover the group’s exposure to this currency 
the last of these matured during the ﬁ rst 
quarter of 2006 contributing £04m to proﬁ t 
the contribution in 2005 was £28m due to the 
greater quantum of foreign exchange contracts 
maturing
the results of the business in the united states 
have been translated at an average rate of 
£1181 2005 £1184 the period end rate 
was £1196 2005 £1173
pensions
the group does not operate any deﬁ ned beneﬁ t 
pension plans nor does it have any liabilities 
under any past plans of this type employees 
of the group are able to participate in a group 
pension through a deﬁ ned contribution plan
share capital and shareholders’ funds
the group had 828m shares in issue at 
31 december 2006 2005 828m the ‘lockup’ 
arrangements put in place at the time of the 
ﬂ otation over shares owned by existing and 
former directors of the group ceased on 
2 march 2006
at 31 december 2006 shareholders’ funds 
totalled £226m 2005 £180m of which 
£173m 2005 £136m are distributable 
reserves
raymarine shares which were successfully listed 
on the london stock exchange on 6 december 
2004 at 152p were 472p on 31 december 
2006 2005 242p
tony osbaldiston
finance director
27 february 2007
tony osbaldiston
finance director
26 february 2007
raymarine plc annual report 2006 13 the board of directors
malcolm has over 25 years 
experience in the consumer 
electronics industry he was 
chief executive ofﬁ cer of 
pace micro technology plc 
from 1997 to 2002 and was 
formerly chief executive ofﬁ cer 
of sega europe from 1994 to 
1997 his earlier career was 
with amstrad plc culminating 
in appointment as managing 
director malcolm joined 
raymarine as chief executive 
ofﬁ cer in january 2003 he 
is currently a nonexecutive 
director of avis europe plc 
malcolm has a ba in business 
studies from the university of 
westminster
malcolm miller
chief executive ofﬁ cer
51 years
terry has spent over 20 years 
in the consumer electronics 
industry he started his career 
with the black  decker 
corporation in 1984 originally 
in sales and marketing 
then moving into general 
management roles in 1997 
he joined vermont american 
a joint venture of bosch and 
emerson as sr vice president 
and corporate ofﬁ cer in 
2000 terry joined the polaroid 
corporation as vice president 
and general manager as well 
as president and chairman 
of the canadian company 
in december 2002 terry was 
appointed president of the 
america’s raymarine inc 
and head of global product 
management for raymarine 
worldwide he has quickly 
assumed an industry leadership 
role as a board member of the 
national marine manufacturers 
association nmma as well 
as the new national grow 
boating industry initiative 
terry has a ba and an mba 
in business and marketing 
respectively
terry carlson
president of the americas  head 
of global product management
44 years
tony is a chartered accountant 
who has followed a career in 
ﬁ nancial management with 
publicly quoted companies 
he has been finance director 
of both max factor uk group 
cosmetics where he was 
employed between 1985 
and 1989 and volvo car uk 
ltd where he was employed 
between 1989 and 1994 he 
then joined firstgroup plc 
in 1995 as finance director 
and in 1999 was promoted 
to deputy ceo and then ceo 
of firstgroup america he 
joined raymarine as finance 
director in august 2004 he 
is currently a nonexecutive 
director and chairman of 
the audit committee of bss 
group plc tony has an msc 
in management sciences from 
durham university
tony osbaldiston
finance director
54 years
raymarine plc annual report 2006 14 peter has over 35 years 
experience working within 
companies which design 
manufacture and market 
products the majority of which 
have been at board level he 
has held senior management 
roles at peugeot sa where he 
was subsequently managing 
director of motorquip limited 
he was chairman and chief 
executive ofﬁ cer for rolls
royce and bentley motor 
cars and managing director 
operations for vickers plc peter 
was also chairman and chief 
executive ofﬁ cer of cunard 
line he currently holds non
executive positions at the law 
ﬁ rm dla piper rudnick gray 
cary international llp harley 
davidson inc and is chairman 
of tg21plc
peter ward
chairman
61 years
jim has 30 years experience 
developing manufacturing 
and marketing high technology 
products internationally at 
raychem corporation he held a 
number of senior management 
positions in manufacturing 
and business development 
serving high growth electronics 
and transportation markets 
and was general manager of 
the european wire and cable 
business since 1993 he has 
been an executive director 
of spectris plc responsible 
for a number of the group’s 
precision instrumentation and 
controls companies he holds a 
bsc hons in metallurgy from 
the university of leeds 
jim webster
nonexecutive director
56 years
nicholas joined touche ross  
co in 1983 where he qualiﬁ ed 
as a chartered accountant in 
1986 following a further three 
years at touche ross  co 
he joined hgcapital where 
he is now a partner to pursue 
a career in private equity 
investment
nicholas turner
nonexecutive director
45 years
paul joined deloitte haskin 
 sells in 1978 where he 
qualiﬁ ed as a chartered 
accountant in 1981 following 
a further ﬁ ve years at deloitte 
haskin  sells he moved 
into industry with a variety 
of roles in ﬁ nance and 
business development paul 
is corporate development 
director at bespak plc a 
medical devices manufacturer 
from 1991 to 2004 he was 
business development director 
of spectris plc paul was also 
a nonexecutive director 
of london bridge software 
holdings plc from 1999 to 
2004 he has a bsc in business 
economics
paul boughton
nonexecutive director
51 years
raymarine plc annual report 2006 15 corporate governance statement
the following section explains how the company 
applies the principles and supporting principles 
of the combined code on corporate governance 
issued in july 2003 appended to the listing rules 
the “combined code”
compliance with the combined code
the board is responsible for the group’s system 
of corporate governance and is ultimately 
accountable for the group’s activities strategy and 
ﬁ nancial performance during the 12 months to 
31 december 2006 raymarine was outside the 
ftse 350 and except as noted below met the 
requirements of the combined code as applied to 
smaller companies
between september 2005 and january 2006 when 
jim webster was appointed as a nonexecutive 
director  the board and the various committees 
did not include two independent nonexecutive 
directors as both the chairman and nicholas 
turner were not considered to be ‘independent’ 
under the rules of the combined code
prior to the appointment of nicholas turner as 
senior independent nonexecutive director in 
november 2006 the post had been vacant after 
peter ward resigned following his appointment 
as chairman on 21 september 2005 please see 
‘independence of nonexecutives’ below for 
further details
the board process for monitoring and evaluating 
its own performance that of its committees and 
individual directors was introduced in december 
2006 it includes setting speciﬁ c objectives for 
each committee and individual directors and 
the monitoring of how these objectives are met 
a formal consultation process with each board 
member has been initiated with the objective 
of assessing and evaluating the commitment 
and contribution of each member to each of 
the committees and to the board the data 
collection is currently ongoing and its evaluation 
is expected to be completed in the ﬁ rst quarter 
of 2007
the chairman is a member of the remuneration 
committee which is now permitted by the 
june 2006 version of the code the board 
considers that the chairman should participate 
in decisions concerning remuneration of the 
executive directors and that his membership 
of the committee helps to ensure that the 
company’s remuneration policy is aligned with 
its strategic objectives
independence of nonexecutives
the chairman satisﬁ ed the independence criteria 
of the combined code on his appointment and 
paul boughton and jim webster are considered 
to be independent according to the principles of 
the combined code 
raymarine plc annual report 2006 16 scheduled 
full board mettings 
attended
remuneration 
committee mettings 
attended
audit
committee mettings 
attended
nomination 
committee mettings 
attended
number of meetings in the year 10 4 2 3
peter ward 10 4 2 3
malcolm miller 10 na na na
kieran breheny a 10 na na na
terry carlson 9 na na na
tony osbaldiston 10 na na na
paul boughton 8 2 2 3
nicholas turner 10 2 2 3
jim webster b 8 4 2 2
a resigned 22 november 2006
b appointed 16 january 2006
each board committee is composed of all the nonexecutive directors
the board scheduled ten meetings during the year ended 31 december 2006 and additional six adhoc meetings were convened as necessary to deal with 
urgent matters as they arose 
nicholas turner has been a senior employee 
of a major shareholder for the last three years 
and whilst the company believes him to be 
independent he is not so considered under 
the rules of the combined code consequently 
before he was appointed to the position of 
senior independent nonexecutive director the 
board carried out a consultation process with 
all major shareholders with the objective of 
obtaining consensus for his appointment these 
investors supported this nomination
board and board committees
board structure
the board currently comprises a nonexecutive 
chairman three nonexecutive directors and 
three executive directors following the disposal 
in march 2006 by hgcapital of their investment 
in raymarine plc nicholas turner was asked to 
remain on the board as a nonexecutive director 
on 22 november 2006 kieran breheny an 
executive director resigned from the board
the posts of chairman and chief executive 
ofﬁ cer are held by different directors clear 
divisions of accountability and responsibility 
exist and operate effectively for these positions 
peter ward is responsible for the leadership of 
the board setting its agenda and monitoring 
its effectiveness he ensures effective 
communication between shareholders and the 
board he facilitates both the contribution of 
the nonexecutive directors and constructive 
relations between the executive and non
executive directors he ensures that the chief 
executive ofﬁ cer develops a strategy which is 
supported by the board as a whole malcolm 
miller the chief executive ofﬁ cer is responsible 
for executing the strategy once agreed by the 
board
all nonexecutive directors are the only 
members of the nomination audit and 
remuneration committees
biographies of these directors can be found on 
pages 14 and 15
board process
the board is accountable to shareholders for 
ensuring that the company is appropriately 
managed and achieves the strategic 
objectives it sets the board discharges those 
responsibilities through an annual programme 
of meetings which include the approval of 
overall budgetary planning and business 
strategy the board reviews the company’s 
internal controls and risk management policies 
and approves its governance structure and code 
of ethics
the board appraises and approves major 
ﬁ nancing investment and contractual decisions 
in excess of deﬁ ned thresholds in addition the 
board evaluates and monitors the performance 
of the group as a whole this includes
• engaging at board meetings with the chief 
executive ofﬁ cer the other executive directors 
as appropriate on the ﬁ nancial and operating 
performance of raymarine plc and external 
issues material to the group’s prospects
• evaluating progress towards the achievement 
of the group’s ﬁ nancial and business 
objectives and annual plans and
• monitoring all of the material risks facing the 
group
the board has a procedure through which the 
directors are able to take independent advice 
at the company’s expense in the furtherance of 
their responsibilities the directors have access 
to the advice and services of the company 
secretary the company secretary is responsible 
to the board and is available to individual 
directors in respect of board procedures 
ensuring that they are complied with the 
company has provided the directors and ofﬁ cers 
of the company with appropriate insurance 
cover
the terms and conditions of appointment 
of nonexecutive directors are available for 
inspection at the company’s registered ofﬁ ce 
during normal business hours and at the agm
all new directors are submitted for election by 
the shareholders in their ﬁ rst year all directors 
have to submit themselves for reelection at 
least every three years if they wish to continue 
serving and are considered by the board to be 
eligible
the appointment of jim webster as non
executive director on 16 january 2006 was 
made following the required process as 
indicated below with the aid of external 
professional recruitment advisors jim webster 
the directors attendance at the scheduled 
meetings during the year ended 31 december 
2006 was as follows
raymarine plc annual report 2006 17 also became a member of the nomination 
committee upon his appointment to the 
board and chairman of the remuneration 
committee
upon appointment all directors executive 
and nonexecutive receive a formal 
induction programme which includes 
meeting the other directors and key senior 
executives visiting site locations and 
attending formal presentations on the 
company and its activities
training for existing directors is provided 
on an as needed basis and includes site 
visits discussions with senior executives 
on speciﬁ c aspects of the business and 
board presentations covering such aspects 
as pensions health and safety issues and 
regulatory changes the board regularly 
assesses the need for directors’ training
in addition the board has established 
an audit committee a remuneration 
committee and a nomination committee 
with formally delegated duties and 
responsibilities each of which has written 
terms of reference these terms of reference 
are available on the website 
wwwraymarinecom or at the agm
the executive operational management 
team comprising the executive directors 
and other senior managers meet weekly
the audit committee
the audit committee meets formally at 
least twice per year and otherwise as 
required the audit committee reviews all 
matters relating to ﬁ nancial controls and 
internal reporting process the internal 
control system the scope and results of 
external audits the independence and 
objectivity of the external auditors and 
keeps under review the effectiveness of the 
company’s controls and risk management 
the committee is authorised by the board 
to seek and obtain any information it 
requires from any ofﬁ cer or employee 
of the company and to obtain external 
legal or other independent advice as is 
deemed necessary at the invitation of 
the committee the chairman the chief 
executive ofﬁ cer the finance director other 
directors representatives from the ﬁ nance
function and the external auditors may attend 
and speak at the meetings two meetings of 
the audit committee took place during the year 
ended 31 december 2006
the audit committee is also responsible for 
evaluating the need for an internal audit 
function the evaluation and assessment is 
carried out considering the size and complexity 
of the business and other circumstances the 
committee considers an internal audit function 
is not required at this stage but will continue to 
monitor the evolution of the business
the committee is also responsible for making 
recommendations to the board in respect of the 
appointment or reappointment of the group’s 
external auditors and subject to the approval 
of shareholders recommends to the board the 
audit fee to be paid to the external auditors the 
objectivity and independence of the external 
auditors is considered on a regular basis with 
particular regard to the level of nonaudit fees
all the members of the audit committee as a 
whole have recent relevant ﬁ nancial experience
the audit committee is chaired by paul 
boughton
the remuneration committee
the remuneration committee determines 
the terms of service and remuneration of 
the chairman executive directors and senior 
management details of the remuneration 
committee together with a statement of the 
group’s remuneration strategy policy and 
details of directors’ remuneration are set out in 
the directors’ remuneration report on pages 20 
to 23 
jim webster was appointed chairman of the 
remuneration committee on 16 january 2006
the nomination committee
the nomination committee reviews the 
structure size and composition of the 
board and proposes appointments to and 
retirement of members from the board and 
other senior positions in addition it makes 
recommendations to the board on these matters 
as appropriate with the objective of maintaining 
within the company’s organisation the right 
balance of skills knowledge and experience 
necessary to achieve the company’s objectives 
the committee meets formally at least twice a 
year and otherwise as required detailed job 
descriptions are provided to the committee 
for all senior roles potential candidates must 
pass a rigorous interview process with the 
nomination committee members and also on 
occasion with external advisors before a formal 
recommendation is made to the board when 
appointing a nonexecutive director a formal 
notice is sent clearly stating the expectations of 
the company with respect to time commitments 
committee membership and other duties 
the nomination committee is chaired by 
nicholas turner
going concern
after making enquiries the directors have 
formed a judgment at the time of approving 
the ﬁ nancial statements that there is a 
reasonable expectation that the company and 
the group have adequate resources to continue 
in operational existence for the foreseeable 
future for this reason the directors continue to 
adopt the going concern basis in preparing the 
ﬁ nancial statements
internal controls
1 framework
the board has established procedures to meet 
the requirements of the new combined code 
and its related guidance these procedures 
which are subject to a regular review provide 
an ongoing process for identifying evaluating 
and managing any signiﬁ cant risks faced by the 
group the internal control framework includes 
central direction resource allocation and risk 
management of the key activities of research 
and development manufacturing marketing 
and sales legal human resource information 
systems and ﬁ nancial practice
2 responsibility
the board has accountability for reviewing 
and approving the adequacy and effectiveness 
of internal controls operated by the group 
including ﬁ nancial operational and compliance 
controls and risk management the responsibility 
for establishing detailed control and risk 
management procedures within each part of the 
business lies with the executive directors
raymarine plc annual report 2006 18 3 control environment
the board is committed to business 
integrity high ethical and moral values and 
professionalism in all of the group’s activities 
managers and employees are required to 
comply with these principles there is a deﬁ ned 
organisational structure with clear lines of 
responsibility and delegated authority which 
allows the board to plan execute control and 
monitor the business in a manner consistent 
with the achievement of the group’s objectives 
the daytoday business management is 
delegated to the executive directors and senior 
managers under the direction of the chief 
executive ofﬁ cer as noted above the board 
retains certain key decisions to itself enabling 
it to maintain control over the key business 
decisionmaking processes and signiﬁ cant 
transactions in terms of size type or risk
4 monitoring
the group prepares all ﬁ nancial information in 
compliance with generally accepted accounting 
practice as part of this framework there is a 
comprehensive planning system with an annual 
budget approved by the board the results 
of the operating units are reported monthly 
and compared to the budget together with 
commentary on key variances to forecast 
budget and prior year forecasts are prepared 
regularly throughout the year the group has 
a ﬁ nancial reporting manual detailing the key 
procedures and controls expectations reports 
on internal ﬁ nancial controls including any 
reports from the external auditors are reviewed 
by the audit committee
5 risk assessment
the board has taken into account the relevant 
provisions of the combined code with respect 
to risk assessment in formulating the systems 
and procedures in operation in the group the 
board is aware of the need to conduct regular 
risk assessments to identify any deﬁ ciencies in 
the controls currently operating over all aspects 
of the group’s activities the group conducts 
formal ongoing risk assessments covering all 
aspects of its business it will also report by 
exception on any material changes once a 
risk has been identiﬁ ed the board assesses 
the probability of its occurrence and potential 
impact of that risk the board then reviews the 
effectiveness of or puts in place mitigating 
controls to minimise any impact to the group
6 effectiveness of controls
the directors conﬁ rm that they have reviewed 
the effectiveness of the system of internal 
control which has been in operation throughout 
the year and up to the date of this report in 
line with the revised combined code and 
the turnbull guidance the board continues 
to take steps to embed internal control and 
risk management procedures further into 
the operations of the business and to deal 
with areas of improvement which come to 
management’s and the board’s attention
the system of internal controls is designed to 
manage rather than eliminate the risk of not 
achieving business objectives and can only 
provide reasonable and not absolute assurance 
against material misstatement or loss
health safety and the environment
the company is committed to the health safety 
and welfare of its employees and recognises 
that safe operations depend not only on 
technically sound equipment and facilities but 
also on competent people and an active health 
safety and environmental culture
the group seeks to achieve high standards of 
environmental practice the group monitors 
environmental developments and seeks to 
take appropriate action including committing 
appropriate levels of capital expenditure where 
required while the group has a programme 
of continued improvement no speciﬁ c major 
capital expenditure is currently expected
the company’s management is accountable 
for understanding and managing health safety 
and environmental risks and in meeting health 
safety and environmental objectives during 
2006 the company formalised a documented 
health and safety policy the head of human 
resources is responsible for coordinating 
the application of such policy a full update 
was given to the board in november 2006 
conﬁ rming that all obligatory requirements 
are in place and complied with and the risk 
assessment is ongoing
relations with shareholders
the group recognises the importance of regular 
communication with all of its shareholders the 
full annual report and financial statements and 
the interim report are issued to shareholders 
each year and are published on the group’s 
website these reports are intended to 
provide shareholders and other interested 
parties with a clear and balanced 
understanding of the group’s operational 
performance prospects and its ﬁ nancial 
results and position
all investors are kept informed of key 
business activities decisions appointments 
etc via regulatory news press releases 
and the group’s website there is also 
regular dialogue with institutional 
shareholders throughout the year and 
general presentations are made by the 
chief executive ofﬁ cer and finance director 
following the announcement of the 
annual and interim results other directors 
including nonexecutive directors attend 
meetings with major shareholders if 
requested
all shareholders have the opportunity to put 
questions to the directors at the company’s 
agm following a report which is made 
on the highlights of the key business 
developments during the ﬁ nancial year 
under review the chairmen of each of the 
remuneration and audit committees attend 
the agm to answer speciﬁ c questions 
from shareholders notice of the agm 
is circulated to all shareholders at least 
21 working days prior to the meeting 
separate resolutions are proposed at the 
agm on each substantially separate issue 
proxy votes are counted on all resolutions 
and where votes are taken by a show of 
hands the proxy results are subsequently 
announced to the meeting
raymarine plc annual report 2006 19 directors ʼ remuneration report
introduction
this report has been prepared in accordance 
with the directors’ remuneration report 
regulations 2002 “the regulations” 
it outlines the membership of the 
remuneration committee “the 
committee” and explains the various 
elements of the company’s remuneration 
policy together with details of directors’ 
remuneration in respect of the year ended 
31 december 2006 in accordance with the 
regulations a resolution to approve this 
report will be proposed at the company’s 
annual general meeting to be held on 18 
may 2007
the regulations require the auditors to 
report to shareholders on the information 
contained in part of this report and to 
state whether in their opinion that part 
of the report has been properly prepared 
in accordance with the companies act 
1985 as amended by the regulations 
this report has therefore been divided into 
separate sections of audited and unaudited 
information
the board considers that the company 
has complied throughout the year with the 
requirements of the combined code in 
relation to directors’ remuneration
unaudited information
remuneration committee
the committee comprises solely non
executive directors and is chaired since 
16 january 2006 by jim webster other 
members of the committee who served 
during the year were peter ward paul 
boughton and nicholas turner who was 
chairman until 16 january 2006 the 
board is responsible for implementing 
the recommendations of the committee 
its terms of reference are available on 
the company’s website or direct from the 
company secretary in accordance with the 
committee’s terms of reference no director 
may participate in discussions relating to his 
own terms and conditions of remuneration 
by invitation the chief executive ofﬁ cer 
the head of human resources and external 
advisors may attend the remuneration 
committee but are not present when matters 
relating directly to their own remuneration are 
discussed
new bridge street consultants llp nbsc 
has provided independent external advice 
throughout the year to assist the committee 
in formulating its recommendations to the 
board nbsc were appointed by the committee 
and only provide advice to the company in 
respect of senior executives’ remuneration and 
employee share schemes generally 
the committee met four times during the 
year ended 31 december 2006 to consider 
the employment terms and remuneration of 
the chairman executive directors and senior 
management
policy
the key policy objective of the committee is 
to secure motivate and retain high calibre 
executives with the skills and experience 
necessary to direct and manage the affairs of 
the company the committee aims to align 
its remuneration policies with the company’s 
medium and longterm strategy and takes 
account of pay and conditions elsewhere in the 
business when determining executive directors’ 
remuneration the policy can be summarised as 
follows
•  a package of pay and beneﬁ ts commensurate 
with comparable packages by reference to a 
deﬁ ned group of similar companies
• an annual performance incentive bonus 
scheme providing rewards which reﬂ ect the 
company’s performance and the contribution 
of individual directors in a particular year
• longterm performance share awards which 
encourage executives to drive longterm 
shareholder value by allowing them to 
participate in the increased shareholder value 
delivered and
• a payment of 12 of their base salary 
towards their personal pension
executive directors are eligible to receive a 
bonus of up to 100 of the base salary for the 
achievement of stretching targets which are 
principally for company ﬁ nancial performance 
but also include an element for personal 
performance
the committee keeps the general policy on 
remuneration described above under annual 
review the committee’s implementation of 
the remuneration policy is described below
in 2006 the remuneration committee 
introduced a formal policy of shareholding 
guidelines this policy encourages all 
executive directors to build and maintain 
a shareholding in the company these 
guidelines will be linked to the vesting of 
future awards granted under the 2005 
performance share plan and any other 
executive sharebased incentive plan that the 
company may operate from time to time
executive directors are encouraged to build 
and maintain a shareholding equivalent 
in value to no less than their base 
salary  in order to ensure that progress 
is made towards this target executives 
are requested to retain shares to a value 
of 50 of the post tax gain under all 
executive share schemes until the threshold 
is attained
the committee will review regularly the 
operation of this policy
base salary and beneﬁ ts
when setting base salaries consideration 
is given to the director’s experience 
performance and responsibilities salaries 
are reviewed annually on 1 january the 
committee aims to pay base salaries at 
no higher than a market median level in 
comparison to companies of a similar size 
and nature in addition to base salaries 
executive directors receive beneﬁ ts in kind 
comprising the provision of a company 
car or a car allowance expenses in lieu 
of relocation life medical and health 
insurance
pensions
the company provides the executive 
directors with contributions towards 
pension of 12 of basic salary in the 
case of terry carlson this is paid into 
his company pension scheme for tony 
osbaldiston and malcolm miller this is paid 
through the payroll
raymarine plc annual report 2006 20 annual performance incentive bonus
for 2007 the annual bonus potential will be up 
to a maximum of 100 2006 100 of an 
executive’s base salary bonuses will be earned 
primarily on the achievement of operating proﬁ t 
targets 70 of bonus potential with the 
remainder payable on meeting speciﬁ c personal 
performance objectives 
longterm incentive plans ltip 
shortly before admission the company adopted 
the performance share plan psp and the 
executive share option plan esop in 2006 
the psp was used as the sole longterm 
incentive arrangement under the psp  executive 
directors may be granted an award entitling 
them to ﬁ xed numbers of ordinary shares at the 
end of a three year period subject to continued 
employment and performance conditions being 
satisﬁ ed in any year except in exceptional 
circumstances awards will not be granted to an 
individual with a value of greater than 150 
of their annual earnings the company has 
adopted a phased annual grant policy and in 
2007 awards may be made over shares worth 
80 to 100 of an executive’s salary 110 
of salary for the chief executive ofﬁ cer awards 
over lower percentages may be made to less 
senior executives 
awards will be subject to performance 
conditions determined each year by the 
remuneration committee for awards granted 
in 2006 the performance was measured by 
reference to the company’s total shareholder 
return tsr against the companies comprising 
the ftse small cap index over a threeyear 
period from the start of the ﬁ nancial year in 
which an award is made there is no provision 
to retest the performance condition a quarter 
of the award vests at median tsr performance 
with full vesting at upper quartile tsr 
performance 
tsr of all companies is averaged over a three
month period prior to the beginning and end of 
the performance period
tsr was selected so as to align the objectives 
of the directors with those of shareholders 
the ftse small cap index is an appropriate 
benchmark as the company is a constituent of 
this index and there is no appropriate direct 
peer group for tsr performance measurement
tsr performance is independently calculated by 
nbsc and veriﬁ ed by the committee
for awards in 2007 the remuneration 
committee will set appropriately demanding 
conditions at the current time it is intended 
that a similar tsr based performance condition 
will apply 
total shareholder return
the graph below shows the total shareholder 
return for the company since the date of listing 
compared with the ftse small cap index 
the company is a member of the ftse small 
cap index and the constituents of this index 
are used to determine vesting under the psp  
therefore the committee considers this is the 
most appropriate benchmark against which the 
relative performance of the company should be 
measured
as the chart shows the performance of the 
company since ﬂ otation has been excellent 
relative to this index with an investment in 
raymarine shares generating a total return of 
over 200 in just over two years
total shareholder return 
source datastream
0
50
100
150
200
250
300
350
raymarine plc ftse small cap index
this graph shows the value by 31 december 2006 of £100 invested in raymarine on 6 december 2004 compared with the value of £100 invested in th
ftse small cap index the other points plotted are the values at intervening financial yearends
raymarine plc annual report 2006 21 contract date term notice by company notice by director
malcolm miller 6 december 2004 rolling 12 months 6 months
terry carlson 6 december 2004 rolling 12 months 6 months
tony osbaldiston 6 december 2004 rolling 12 months 6 months
external appointments
where board approval is given for an executive 
director to accept an outside nonexecutive 
directorship unless the appointment is in 
connection with group business the individual 
director is entitled to retain any fees received 
two directors hold outside nonexecutive 
directorships malcolm miller is a nonexecutive 
director at avis europe plc 2006 fee £37500 
2005 fee £37500 and tony osbaldiston is a 
nonexecutive director at bss group plc 2006 
fee £30125 2005 fee £29000
nonexecutive directors’ remuneration
the remuneration of nonexecutive directors is 
determined by the board within the limits set 
out in the company’s articles of association 
the nonexecutive directors do not participate 
in the bonus scheme longterm incentive 
arrangements nor do they receive beneﬁ ts in 
kind or compensation on early termination of 
their appointment 
in the event that notice to terminate their 
appointment is given by either party there is a 
three month written notice period required
dates of original appointment of nonexecutive 
directors
peter ward  1 december 2004
paul boughton 1 december 2004
nicholas turner 28 january 2001
jim webster 16 january 2006
the terms of appointment of nonexecutive 
directors are documented in letters of 
appointment between the company and the 
director their term of appointment does not 
extend beyond the date on which they are next 
subject to reelection by shareholders
audited information
the remuneration of the directors of the 
company is set out in the table opposite 
with effect from 1 january 2007 the 
remuneration for each nonexecutive director 
will be £30000 per annum with an additional 
£5000 for chairing each of one or more of 
the internal committees with the chairman’s 
remuneration increased to £95000 per annum 
the executive directors’ bonus scheme for the 
year ended 31 december 2006 was based on 
operating performance and achievement of 
the personal objectives set at the beginning of 
the year recognising the performance of the 
company over the year the actual performance 
achieved provided the executive directors with a 
bonus equal to 50 of basic salary there is an 
additional bonus equal to a maximum of 30 
of basic salary which is related to nonﬁ nancial 
strategic performance in addition a oneoff 
bonus equal to a maximum of 20 of basic 
salary will be paid based on the achievement 
of the outsourcing project milestones payout is 
expected to be close to the maximum for 2006
an element of the performance related bonus 
will be converted into shares the number of 
shares assigned to a director will be determined
by dividing the cash amount of the portion of 
bonus payable in shares by the closing share 
price on the “share award date” the “share 
award date” is the business day after the 
announcement of the results or if in a closed 
period the day after the closed period ends and 
the award of deferred shares will be granted 
performance related bonuses and beneﬁ ts 
in kind are not pensionable details of the 
contributions made by the company in respect 
of directors under deﬁ ned contribution schemes 
are set out opposite
service contracts
no executive director has a service contract requiring a notice period from the company of more than one year the policy on early termination is to 
provide compensation which reﬂ ects the company’s contractual obligations in the event that a notice to terminate the service contract is given by 
either party the company may use its sole discretion to pay the executive a sum equal to 120 of his basic salary in lieu of any unexpired period of 
notice this payment relieves the company of any liability for ﬁ xed emoluments in any potential termination package
details of the executive directors’ service 
contracts are
raymarine plc annual report 2006 22 scheme
at 311205 
number
1
awards granted 
number
awards vested 
number
2
unvested 
number
2
at 311206 
number
crystallising 
dates of 
awards
name of director
malcolm miller
ltip 2005 194515 – – – 194515 280408
ltip 2006 – 93711 – – 93711 310309
kieran breheny
ltip 2005 74456 – 49637 24819 – –
ltip 2006 – 35870 11957 23913 – –
terry carlson
ltip 2005 105052 – – – 105052 280408
ltip 2006 – 54974 – – 54974 310309
tony osbaldiston
ltip 2005 136502 – – – 136502 280408
ltip 2006 – 65762 – – 65762 310309
 
salary and fees
£’000
beneﬁ ts in kind
1
£’000
performance 
related
annual bonus
£’000
pension 
contributions
£’000
total for the 
year ended 31 
december 2006 
£’000
total for the year 
ended 31 december 
2005 
£’000
executive
malcolm miller 296 17 296 36 645 514
kieran breheny
2
140 8 – 22 170 264
terry carlson
3
204 20 184 21 429 325
tony osbaldiston 227 10 227 28 492 414
nonexecutive
peter ward
4
88 – – – 88 40
roger thomas
5
–––– – 45
paul boughton 30 – – – 30 30
nicholas turner 30 – – – 30 31
jim webster 29 – – – 29 –
total 1044 55 707 107 1913 1663
notes 
1
 the beneﬁ ts in kind relate to fully expensed car beneﬁ t health and life insurance and accommodation in lieu of relocation
2
 resigned as a director of the company on 22 november 2006
3
 the emoluments for terry carlson were designated and paid in us the ﬁ gures have been converted at the average rate of us181 2005 us184
4
 2006 includes £5000 which relates to the prior period
5
 retired on 30 september 2005
share options and incentives
the psp entitles executive directors and other employees of the group to be granted awards entitling them to a ﬁ xed number of ordinary shares at the 
end of speciﬁ ed periods subject to conditions relating to total shareholders’ return being satisﬁ ed details of directors’ interests in the schemes are as 
follows
the remuneration of the directors of the company is set out below 
notes
1
 this has been corrected to reﬂ ect a small adjustment to foreign exchange rate used and share price at date of award
2
 this represents the early vesting of a proportion of the outstanding psp awards to kieran breheny this was considered to be appropriate by the remuneration committee after taking account of the circumstances of his 
departure and the fact that it was agreed that no compensation would be payable for the termination of his service contract the level of vesting of the psp awards took account of the outstanding tsr performance of the 
company against the tsr performance condition applicable to both of his outstanding awards up to the time of his cessation of employment which indicated a maximum level of vesting there was a scaling back of awards 
recognising the shorter period of service than the award was originally intended to cover 
the prices of an ordinary share and the date when the awards were made 
were as follows
ltip 2005 3 may 2005   £215 
ltip 2006 1 april 2006  £345
both awards are subject to the performance condition for psp awards as 
outlined in the policy section the target for the above awards is explained 
above in the policy on longterm incentives
the lowest and highest share prices during the year ended 31 december 
2006 were 240p and 4715p the midmarket price of the company’s 
shares were 242p 1 january 2006 and 4715p 31 december 2006 
jim webster
chairman of remuneration committee
raymarine plc annual report 2006 23 1923  raytheon launches ﬁ rst depth sounder
1958  raytheon acquires apelco
1974  nautechautohelm is formed
1975  british design award for the ﬁ rst autohelm tiller autopilot
1984  launch of autohelm ‘keyboard micro’ autopilots the ﬁ rst cockpit autopilots in the world to employ digital control systems
1988  british design award for autohelm 4000 cockpitinstalled wheel autopilot
1989  british design award and silk cut nautical award for the seatalk digital communications protocol linking instruments and autopilots
1991  launch of autohelm navcenter ﬁ rst generation electronic chartplotter
1992  integration of gps technology into seatalk navigation instrument and autopilot control systems
1992  dame award for st2000 tiller autopilot
1996  imtec award for apelco l365 entrylevel lcd ﬁ shﬁ nder
  dame award for the st80 instrument system
1997  launch of the pathﬁ nder radar – ﬁ rst leisure marine radar to be designed and built outside japan for 15 years
1999  launch of high speed bus hsb protocol integrating high resolution radar and chartplotters
2000  acquisition of kiwitech and launch of raytech pc software packages
  dame award for rl80c and rl80crc 10” colour radar and radarchartplotter
2001  launch of advanced steering technology ast inboard autopilot course computers
2002  imtec award for raytech version 4 pc navigation software integrated with onboard navigation systems
2003  nmea ‘best in show’ hdfi – high deﬁ nition fish imaging
2004  dame award for c series multifunction displays
 nmea best in show award 2004 for c series multifunction display
 december 6 – raymarine plc ﬂ oats on the london stock exchange
2005 motor boating magazine best of the year awards for e series high performance multifunction navigation displays and s1000 autopilot
 nmea best in show award 2005 for e series multifunction display
2006 sail pittman award for cam100 night and day video camera 
 rya powerboating gold award – sponsor of the year
 raymarine completes outsourcing of manufacturing
2007 sail pittman innovation award in electronics category for lifetag
 raymarine asia pty ltd founded
company history
raymarine plc annual report 2006 24 25 raymarine plc annual report 2006 
financial information raymarine plc annual report 2006 26
interest at end of year interest at start of year
name of director
peter ward 40000 40000
malcolm miller 778192 778192
terry carlson 100400 351032
tony osbaldiston 145905 145905
paul boughton 26000 26000
nicholas turner 80615 80615
jim webster 5000 –
directors ʼ report
the directors present their annual report on the 
affairs of the group together with the ﬁ nancial 
statements and auditors’ report for the year 
ended 31 december 2006
principal activities
the principal activities of the group comprise 
the manufacture and marketing of navigation 
equipment within the marine market 
approximately 90 of group production is 
exported
the subsidiaries principally affecting the proﬁ ts 
or net assets of the group in the year are listed 
in note 43 to the ﬁ nancial statements
business review
a review of the business of the group is set 
out in the chairman’s statement on page 2 the 
chief executive ofﬁ cer’s review on pages 5 to 
6 and the financial review on pages 8 to 13 a 
list of principal risks and uncertainties is given 
below the ﬁ nancial review also contains the 
group’s policy and objective in respect of the 
use of ﬁ nancial instruments
details of signiﬁ cant events since the balance 
sheet date are contained in note 34 to the 
ﬁ nancial statements
dividends
the directors recommend a ﬁ nal dividend of 
595p per ordinary share to be paid on 25 may 
2007 to ordinary shareholders on the register 
on 4 may 2007 which together with the 
interim dividend of 28p paid on 29 september 
2006 makes a total of 875p for the year 
2005 70p
directors
the directors who served throughout the year 
except as noted below were as follows
peter ward nonexecutive chairman
malcolm miller chief executive ofﬁ cer
kieran breheny resigned 
 22 november  2006
terry carlson  
tony osbaldiston   
paul boughton
nicholas turner nonexecutive 
jim webster nonexecutive 
 appointed 16 january 2006 
 
company secretary
terri howell
although no directors are required under the 
company’s articles of association to offer 
themselves for reelection the board considers 
it good practice to provide for the regular re
appointment of directors accordingly at the 
agm peter ward and malcolm miller will offer 
themselves for reelection as directors of the 
company
biographical details of all directors can be found 
on pages 14 and 15
supplier payment policy
the company’s policy which is also applied 
by the group is to ﬁ x terms of payment with 
suppliers when agreeing the terms of business 
transactions to ensure that the supplier is 
aware of those terms and to abide by the 
agreed terms of payment when the supplier has 
satisfactorily provided the goods or services in 
accordance with the terms of contract trade 
creditors of the company at 31 december 2006 
were equivalent to 18 days 2005 38 days 
purchases based on the average daily amount 
invoiced by suppliers during the year
directors’ interests
the directors who held ofﬁ ce at 31 december 2006 had the following interests 
in the ordinary shares of the company according to the register of directors’ 
interests
these shareholdings are all beneﬁ cial interests and include shares held by directors’ spouses and other connected persons no changes took place in 
the interests of directors between 31 december 2006 and 26 february 2007 
the interests of the directors under the longterm incentive scheme of the company are shown in the directors’ remuneration report
the company has made qualifying third party indemnity provisions for the beneﬁ t of its directors which were made during the year and remain in force 
at the date of this report 27 raymarine plc annual report 2006 
charitable and political contributions
the group made no political contributions 
during the year 2005 £nil charitable 
donations amounted to £2373 2005 £5145
substantial shareholdings
on 26 february 2007 the company had been 
notiﬁ ed in accordance with sections 198 
to 208 of the companies act 1985 of the 
following interests in the ordinary share capital 
of the company
name of holder number 
axa sa 10718968 1295
scottish widows 6668480 805
standard life 6597342 797
newsmith asset management 5189197 627
aberforth 4110720 496
legal  general 3517014 425
hermes pension management 2492266 301
acquisition of the company’s own 
shares
at the end of the year the directors had 
authority under the shareholders’ resolution 
of 18 may 2006 to purchase through the 
market 8279278 of the company’s ordinary 
shares at prices ranging between £001 and an 
amount equal to 105 of the average of the 
middle market quotations of the company’s 
ordinary shares as derived from the london 
stock exchange daily ofﬁ cial list for the ﬁ ve 
business days immediately preceding the day on 
which such share is contracted to be purchased 
exclusive of expenses paid per share this 
authority expires on 17 may 2007
employees
the group operates regular team brieﬁ ngs 
on the ﬁ nancial performance business 
activities and related matters to ensure good 
communication across the workforce an ‘open 
door’ policy is operated under which any 
employee may seek information from senior 
management on business performance
group policy with regard to disabled people 
is to provide equal employment opportunity 
by giving full and fair consideration to their 
applications for employment and continuing 
employment wherever possible of employees 
who become disabled and providing suitable 
opportunities for their training career 
development and promotion
the employee share scheme has been running 
successfully since its inception in december 
2004 it is open to all employees and allows 
participants the opportunity to buy shares by 
deduction from their pretax salary in addition 
all employees receive an annual bonus related 
to the overall proﬁ tability of the group
principal risks and uncertainties
the board has a proactive approach to risk 
management with the aim of protecting its 
employees and customers and safeguarding the 
interests of the company and its shareholders
raymarine plc has speciﬁ c policies in place to 
ensure that risks are properly evaluated and 
managed at the appropriate level within the 
business a risk assessment exercise is carried 
out across the group regularly and the outcome 
is reviewed by the board biannually
outlined below is a summary of the key risks 
and uncertainties affecting the group and those 
activities undertaken to mitigate them
product reliability and safety
raymarine products must be robust and reliable 
to withstand the harsh environments they are 
used in and to aid safety on the water where 
appropriate products are designed with this 
in mind and we have invested additional 
engineering resource to this end all new 
product introductions must undergo extensive 
testing both on and off the water before 
the new products are launched to meet our 
rigorous standards 
suppliers
the future revenues of the group could 
be adversely affected by an interruption of 
supply from our ems outsourcing partner 
for a protracted length of time this risk has 
been mitigated with the inventory held in the 
distribution channel and the extensive business 
continuity plan in place with our ems partner 
this includes utilising spare capacity at multiple 
sites around the world
the group is reliant on the continuance of 
supply from sole source component suppliers 
there could be a risk to revenue if a sole source 
supplier was not able to supply components 
for a protracted length of time this risk is 
mitigated by sourcing a second supplier for key 
components
technology and systems
the group is reliant on certain technologies and 
systems the business process is aligned with 
these systems and any potential failure could 
have an impact on business operations to 
mitigate these risks we have a disaster recovery 
plan in place with various backup procedures 
and third party support the group is in the 
process of implementing a new enterprise 
resource planning system and this will further 
reduce this risk
people retention and motivation
to develop support and market its products 
the group must employ and retain highly 
skilled and motivated employees with particular 
expertise the group’s strategic plans could be 
undermined by failure to recruit or retain key 
personnel this risk has been mitigated by the 
implementation of a management development 
programme appraisal process succession 
planning appropriate remuneration packages 
and a rigorous recruitment process
annual general meeting
the agm will be held in the little ship club 
bell wharf lane upper thames street london 
ec4r 3tb on friday 18 may 2007 at 11 am the 
notice of meeting is contained in a separate 
letter from the chairman accompanying this 
report
auditors
in the case of each person who is a director of 
the company at the date when this report is 
approved 
 
•  so far as each of the directors is aware there 
is no relevant audit information of which the 
company’s auditors are unaware and 
• each of the directors has taken all the steps 
that they ought to have taken as a director to 
make themselves aware of any relevant audit 
information as deﬁ ned and to establish that 
the company’s auditors are aware of that 
information
this conﬁ rmation is given and should be 
interpreted in accordance with the provisions of 
section 234za of the companies act 1985
deloitte  touche llp have expressed their 
willingness to continue in ofﬁ ce as auditors of 
the company and their reappointment will be 
put to members at the annual general meeting
raymarine plc
robinson way
anchorage park
portsmouth 
hampshire po3 5td
by order of the board
malcolm miller 
chief executive ofﬁ cer
26 february 2007 raymarine plc annual report 2006 28
statement of directors ʼ responsibilities
the directors are responsible for preparing the 
annual report directors’ remuneration report 
and the ﬁ nancial statements in accordance 
with applicable law and regulations
company law requires the directors to 
prepare ﬁ nancial statements for each ﬁ nancial 
year the directors are required by the ias 
regulation to prepare the group ﬁ nancial 
statements under international financial 
reporting standards ifrss as adopted by 
the european union and have also elected 
to prepare the parent company ﬁ nancial 
statements in accordance with ifrss as 
adopted by the european union the ﬁ nancial 
statements are also required by law to be 
properly prepared in accordance with the 
companies act 1985 and article 4 of the ias 
regulation
international accounting standard 1 requires 
that ﬁ nancial statements present fairly for 
each ﬁ nancial year the company’s ﬁ nancial 
position ﬁ nancial performance and cash 
ﬂ ows this requires the faithful representation 
of the effects of transactions other events 
and conditions in accordance with the 
deﬁ nitions and recognition criteria for assets 
liabilities income and expenses set out in 
the international accounting standards 
board’s ‘framework for the preparation and 
presentation of ﬁ nancial statements’ in 
virtually all circumstances a fair presentation 
will be achieved by compliance with all 
applicable ifrss however directors are also 
required to
•  properly select and apply accounting 
policies
• present information including accounting 
policies in a manner that provides relevant 
reliable comparable and understandable 
information and 
• provide additional disclosures when 
compliance with the speciﬁ c requirements 
in ifrss are insufﬁ cient to enable users 
to understand the impact of particular 
transactions other events and conditions on 
the entity’s ﬁ nancial position and ﬁ nancial 
performance
the directors are responsible for keeping 
proper accounting records that disclose with 
reasonable accuracy at any time the ﬁ nancial 
position of the company and enable them to 
ensure that the ﬁ nancial 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 the 
maintenance and integrity of the corporate 
and ﬁ nancial information included on the 
company’s website legislation in the united 
kingdom governing the preparation and 
dissemination of ﬁ nancial statements may 
differ from legislation in other jurisdictions 29 raymarine plc annual report 2006 
independent auditors ʼ report to the members of raymarine plc
we have audited the group ﬁ nancial 
statements of raymarine plc for the year 
ended 31 december 2006 which comprise 
the consolidated income statement the 
consolidated statement of recognised income 
and expense the consolidated balance sheet 
the consolidated cash ﬂ ow statement and the 
related notes 1 to 35 these group ﬁ nancial 
statements have been prepared under the 
accounting policies set out therein we have 
also audited the information in the directors’ 
remuneration report that is described as 
having been audited
we have reported separately on the parent 
company ﬁ nancial statements of raymarine 
plc for the year ended 31 december 2006
 
this report is made solely to the company’s 
members as a body in accordance with 
section 235 of the companies act 1985 our 
audit work has been undertaken so that we 
might state to the company’s members those 
matters we are required to state to them in 
an auditors’ report and for no other purpose 
to the fullest extent permitted by law we do 
not accept or assume responsibility to anyone 
other than the company and the company’s 
members as a body for our audit work 
for this report or for the opinions we have 
formed
respective responsibilities of 
directors and auditors
the directors’ responsibilities for preparing the 
annual report the directors’ remuneration 
report and the group ﬁ nancial statements in 
accordance with applicable law and ifrss as 
adopted by the european union are set out in 
the statement of directors’ responsibilities
our responsibility is to audit the group 
ﬁ nancial statements in accordance with 
relevant legal and regulatory requirements 
and international standards on auditing uk 
and ireland
we report to you our opinion as to whether 
the group ﬁ nancial statements give a true 
and fair view whether the group ﬁ nancial 
statements have been properly prepared in 
accordance with the companies act 1985 and 
article 4 of the ias regulation and whether 
the part of the directors’ remuneration report 
described as having been audited has been 
properly prepared in accordance with the 
companies act 1985 we also report to you 
whether in our opinion the information given 
in the directors’ report is consistent with the 
group ﬁ nancial statements the information 
given in the directors’ report includes that 
speciﬁ c information presented in the financial 
review that is cross referred from the business 
review section of the directors’ report
in addition we report to you if in our opinion 
we have not received all the information 
and explanations we require for our audit 
or if information speciﬁ ed by law regarding 
director’s remuneration and other transactions 
is not disclosed
we review whether the corporate governance 
statement reﬂ ects the company’s compliance 
with the nine provisions of the 2003 
combined code speciﬁ ed 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 the other information contained in 
the annual report as described in the contents 
section and consider whether it is consistent 
with the audited group ﬁ nancial statements 
we consider the implications for our report 
if we become aware of any apparent 
misstatements or material inconsistencies 
with the group ﬁ nancial statements our 
responsibilities do not extend to any further 
information outside the annual report
basis of audit opinion
we conducted our audit in accordance with 
international standards on auditing uk 
and ireland issued by the auditing practices 
board an audit includes examination on a 
test basis of evidence relevant to the amounts 
and disclosures in the group ﬁ nancial 
statements and the part of the directors’ 
remuneration report to be audited it also 
includes an assessment of the signiﬁ cant 
estimates and judgments made by the 
directors in the preparation of the group 
ﬁ nancial statements and of whether the 
accounting policies are appropriate to the 
group’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 sufﬁ cient evidence to 
give reasonable assurance that the group 
ﬁ nancial 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 group ﬁ nancial statements 
and the part of the directors’ remuneration 
report to be audited
opinion
in our opinion
• the group ﬁ nancial statements give a true 
and fair view in accordance with ifrss 
as adopted by the european union of 
the state of the group’s affairs as at 31 
december 2006 and of its proﬁ t for the year 
then ended
• the group ﬁ nancial statements have been 
properly prepared in accordance with the 
companies act 1985 and article 4 of the 
ias regulation 
• the part of the directors’ remuneration 
report described as having been audited 
has been properly prepared in accordance 
with the companies act 1985 and
• the information given in the directors’ 
report is consistent with the group ﬁ nancial 
statements
deloitte  touche llp
chartered accountants and 
registered auditors
southampton united kingdom
26 february 2007 raymarine plc annual report 2006 30
note
before 
restructuring 
costs
£’000
restructuring
costs
£’000
year ended 
31 december 
2006
£’000
year ended 
31 december 
2005
£’000
revenue 3
cost of sales
gross proﬁ t
distribution costs
administrative expenses
– research and development 6
– other administrative expenses
– amortisation of patents and knowhow 13
– flotation and other nonrecurring costs 5a
restructuring costs 5b
other operating income – foreign exchange gains
operating proﬁ t 26
finance income 38
finance costs 9
proﬁ t before tax
taxation charge  credit 10
proﬁ t for the year attributable to 
shareholders of the company
27
earnings per share pence
basic 12
diluted 12
consolidated income statement
year ended 31 december 2006
all results relate to continuing activities
136490
80258
56232
10998
8329
12730
725
–
21784
–
469
23919
–
–
–
–
–
–
–
–
–
7823
–
7823
136490
80258
56232
10998
8329
12730
725
–
21784
7823
469
16096
529
2534
14091
3754
10337
125p
122p
121851
76090
45761
9314
7423
9464
725
321
17291
10909
2830
11077
217
3232
8062
305
8367
101p
100p 31 raymarine plc annual report 2006 
note
2006
£’000
2005
£’000
gains  losses on cash ﬂ ow hedges 26
exchange differences on translation of foreign currency operations 26
tax on items taken directly to equity
net income  expense recognised directly in equity
transfers
transfer of the initial carrying amount of hedged items on cash ﬂ ow hedges 26
related deferred tax on transfer to the initial carrying amount of hedged items on cash ﬂ ow hedges
transferred to proﬁ t and loss on cash ﬂ ow hedges 26
related deferred tax on items transferred from equity
vested awards under ltip 25
other adjustments
proﬁ t for the period
total recognised income and expense for the year attributable to equity shareholders 
of the parent
28
consolidated statement of recognised income and expense
year ended 31 december 2006
18
446
6
458
–
–
399
120
152
–
10337
10364
668
348
200
120
3828
1148
2779
834
–
75
8367
8907 raymarine plc annual report 2006 32
note
2006
£’000
2005
£’000
noncurrent assets
intangible ﬁ xed assets 13 44876 42300
property plant and equipment 14 7809 7143
financial assets 28 16
52713 49459
current assets
inventories 15 16849 18656
trade and other receivables 16 21646 16682
financial assets 18 – 381
cash and cash equivalents 2068 2042
40563 37761
current liabilities
bank overdraft 17 7035 –
trade and other payables 21 15640 16547
tax liabilities 2522 2474
obligations under ﬁ nance leases 20 291 367
shortterm provisions 22 4273 5720
29761 25108
net current assets 10802 12653
noncurrent liabilities
trade and other payables 21 192 –
bank loans 17 38156 39618
financial liabilities 28 16
deferred tax liabilities 19 466 442
obligations under ﬁ nance leases 20 218 450
longterm provisions 22 1836 3625
40896 44151
net assets 22619 17961
equity
share capital 23 828 828
share premium account 24 3255 3207
equity reserve 25 859 155
hedging and translation reserves 26 381 202
retained earnings 27 17296 13569
equity attributable to shareholders of the parent 28 22619 17961
consolidated balance sheet
at 31 december 2006
the ﬁ nancial statements were approved by the board of directors and authorised for issue on 26 february 2007 they were signed on its behalf by
tony osbaldiston 
finance director 33 raymarine plc annual report 2006 
note
2006
£’000
2005
£’000
29 10408
656
4245
7858
11447
6458
48
3000 –
2000
399
5809
6848
2042
161
4967
43632
1
net debt is calculated as cash less bank loans and obligations under ﬁ nance leases it does not include ﬁ nancial assets or ﬁ nancial liabilities
consolidated cash ﬂ ow statement
year ended 31 december 2006
17630
465
3438
3627
6600
1656
42
15174
410
17198
6168
8117
93
2042
38393
net cash from operating activities
investing activities
proceeds on disposal of property plant and equipment
purchases of property plant and equipment
expenditure on product development
net cash used in investing activities
financing activities
dividends paid
net proceeds from issue of ordinary share capital
proceeds from borrowings
repayments of borrowings
repayments of obligations under ﬁ nance leases
net cash used in ﬁ nancing activities
net decrease in cash and cash equivalents
cash and cash equivalents at beginning of year
effect of foreign exchange rate changes
cash and cash equivalents and bank overdrafts at end of year
net debt
1 raymarine plc annual report 2006 34
notes to the ﬁ nancial statements
year ended 31 december 2006
1 general information
raymarine plc is a company incorporated in 
the united kingdom under the companies act 
1985 the address of the registered ofﬁ ce is 
given on page 67 the nature of the group’s 
operations and its principal activities are set 
out in note 4 and in the directors’ report on 
pages 26 to 27
these ﬁ nancial statements are presented in 
pounds sterling because that is the currency 
of the primary economic environment in which 
the group operates foreign operations are 
included in accordance with the policies set 
out in note 2
at the date of authorisation of these ﬁ nancial 
statements the following standards and 
interpretations which have not been applied 
in these ﬁ nancial statements were in issue but 
not yet effective 
• ifrs 7 financial instruments disclosures 
and the related amendment to ias 1 on 
capital disclosures
• ifric 4 determining whether an 
arrangement contains a lease
• ifric 5 right to interests arising from 
decommissioning restoration and 
environmental rehabilitation funds
• ifric 7 applying the restatement approach 
under ias 29 financial reporting in 
hyperinﬂ ationary economies
• ifric 8 scope of ifrs 2
• ifric 9 reassessment of embedded 
derivatives
• ifric 10 interim reporting and impairments
• ifric 11 ifrs 2 – group and treasury share 
transactions
the directors anticipate that the adoption of 
these standards and interpretations in future 
periods will have no material impact on the 
ﬁ nancial statements of the group except for 
the adoption of ifrs 7 and the amendment 
to ias 1 which introduce new disclosures of 
information about ﬁ nancial instruments and 
capital management the impact of these 
changes to the group is that additional 
disclosures will be required concerning the 
sensitivity analysis to market risk and the 
management of capital these will be applied 
for the year ending 31 december 2007
the eu directive on waste electrical and 
electronic equipment “weee” requires the 
group to assume responsibility for proper 
disposal of such equipment sold after 13 
august 2005 when it has become waste 
the cost of verifying compliance of source 
components which are used in the group’s 
products has been charged to the income 
statement as incurred in particular where new 
sources have been switched to new low cost 
suppliers as part of the outsourcing project 
in the uk the dti is responsible for 
transposing the weee directive into uk law 
working in partnership with the devolved 
administrations a detailed paper on how the 
scheme will operate in the uk is expected in 
2007 no provision has been made in these 
accounts on the basis that potential future 
disposal costs are uncertain and likely to be 
immaterial
2 signiﬁ cant accounting policies
basis of accounting
the ﬁ nancial statements have been prepared 
in accordance with international financial 
reporting standards ifrss adopted by the 
european union and therefore the group 
ﬁ nancial statements comply with article 4 of 
the eu ias regulation
the ﬁ nancial statements have been prepared 
on the historical cost basis except for the 
revaluation of ﬁ nancial instruments the 
principal accounting policies adopted are set 
out below
basis of consolidation
the consolidated ﬁ nancial statements 
incorporate the ﬁ nancial statements of the 
company and entities controlled by the 
company its subsidiaries made up to 31 
december each year control is achieved 
where the company has the power to govern 
the ﬁ nancial and operating policies of an 
investee entity so as to obtain beneﬁ ts from 
its activities
on acquisition the assets liabilities and 
contingent liabilities of a subsidiary are 
measured at their fair values at the date 
of acquisition any excess of the cost of 
acquisition over the fair values of the 
identiﬁ able net assets acquired is recognised 
as goodwill any deﬁ ciency of the cost of 
acquisition below the fair values of the 
identiﬁ able net assets acquired ie discount 
on acquisition is credited to proﬁ t and loss in 
the period of acquisition
where necessary adjustments are made to the 
ﬁ nancial statements of subsidiaries to bring 
the accounting policies used into line with 
those used by the group
all intragroup transactions balances income 
and expenses are eliminated on consolidation
goodwill
goodwill arising on consolidation represents 
the excess of the cost of acquisition over 
the group’s interest in the fair value of 
the identiﬁ able assets and liabilities of a 
subsidiary associate or jointly controlled entity 
at the date of acquisition
goodwill is recognised as an asset and 
reviewed for impairment at least annually 
any impairment is recognised immediately in 
proﬁ t or loss and is not subsequently reversed 
goodwill arising on acquisitions before the 
date of transition to ifrss has been retained 
at the previous uk gaap amounts subject to 
being tested for impairment at that date
on disposal of a subsidiary associate or jointly 
controlled entity the attributable amount of 
goodwill is included in the determination of 
the proﬁ t or loss on disposal
revenue recognition
revenue is measured at the fair value of 
the consideration received or receivable and 
represents amounts receivable for goods 
and services provided in the normal course 
of business net of discounts vat and other 
salesrelated taxes
sales of goods are recognised when goods are 
delivered and title has passed
other income
interest income is accrued on a time basis by 
reference to the principal outstanding and at 
the effective interest rate applicable which 
is the rate that exactly discounts estimated 
future cash receipts through the expected 
life of the ﬁ nancial asset to that asset’s net 
carrying amount
dividend income from investments is 
recognised when the shareholders’ rights to 
receive payment have been established
all other sundry income including royalty 
income is recognised in the period to which 
it relates 35 raymarine plc annual report 2006 
leasing
leases are classiﬁ ed as ﬁ nance leases 
whenever the terms of the lease transfer 
substantially all the risks and rewards of 
ownership to the lessee all other leases are 
classiﬁ ed as operating leases assets held 
under ﬁ nance leases are recognised as assets 
of the group at their fair value or if lower 
at the present value of the minimum lease 
payments each determined at the inception 
of the lease the corresponding liability to 
the lessor is included in the balance sheet as 
a ﬁ nance lease obligation lease payments 
are apportioned between ﬁ nance charges 
and reduction of the lease obligation so 
as to achieve a constant rate of interest 
on the remaining balance of the liability 
finance charges are charged directly against 
income unless they are directly attributable 
to qualifying assets in which case they are 
capitalised in accordance with the group’s 
general policy on borrowing costs see below
rentals payable under operating leases are 
charged to income on a straightline basis 
over the term of the relevant lease beneﬁ ts 
received and receivable as an incentive to 
enter into an operating lease are also spread 
on a straightline basis over the lease term
foreign currencies 
transactions in functional currencies are 
recorded at the rates of exchange prevailing 
on the dates of the transactions at each 
balance sheet date monetary assets and 
liabilities that are denominated in foreign 
currencies are retranslated at the rates 
prevailing on the balance sheet date non
monetary assets and liabilities carried at 
fair value that are denominated in foreign 
currencies are translated at the rates 
prevailing at the date when the fair value 
was determined gains and losses arising on 
retranslation are included in net proﬁ t or loss 
for the period except for exchange differences 
arising on nonmonetary assets and liabilities 
where the changes in fair value are recognised 
directly in equity
in order to hedge its exposure to certain 
foreign exchange risks the group enters 
into forward contracts and options see 
below for details of the group’s accounting 
policies in respect of such derivative ﬁ nancial 
instruments 
on consolidation the assets and liabilities of 
the group’s overseas operations are translated 
at exchange rates prevailing on the balance 
sheet date income and expense items are 
translated at the average exchange rates for 
the period unless exchange rates ﬂ uctuate 
signiﬁ cantly exchange differences arising if 
any are classiﬁ ed as equity and transferred to 
the group’s translation reserve per note 26
operating proﬁ t
operating proﬁ t comprises proﬁ t from 
operations and is stated after charging 
restructuring costs but before ﬁ nance income 
and ﬁ nance costs
retirement beneﬁ t costs 
payments to deﬁ ned contribution retirement 
beneﬁ t schemes are charged as an expense 
as they fall due payments made to state
managed retirement beneﬁ t schemes are dealt 
with as payments to deﬁ ned contribution 
schemes where the group’s obligations under 
the schemes are equivalent to those arising 
in a deﬁ ned contribution retirement beneﬁ t 
scheme
taxation
the tax expense represents the sum of the tax 
currently payable and deferred tax
the tax currently payable is based on taxable 
proﬁ t for the year taxable proﬁ t differs from 
net proﬁ t as reported in the income statement 
because it excludes items of income or 
expense that are taxable or deductible in 
other years and it further excludes items that 
are never taxable or deductible the group’s 
liability for current tax is calculated using tax 
rates that have been enacted or substantively 
enacted by the balance sheet date
deferred tax is the tax expected to be payable 
or recoverable on differences between the 
carrying amounts of assets and liabilities in the 
ﬁ nancial statements and the corresponding 
tax bases used in the computation of taxable 
proﬁ t and is accounted for using the balance 
sheet liability method deferred tax liabilities 
are generally recognised for all taxable 
temporary differences and deferred tax assets 
are recognised to the extent that it is probable 
that taxable proﬁ ts will be available against 
which deductible temporary differences can 
be utilised such assets and liabilities are not 
recognised if the temporary difference arises 
from goodwill or from the initial recognition 
other than in a business combination of 
other assets and liabilities in a transaction 
that affects neither the tax proﬁ t nor the 
accounting proﬁ t
deferred tax liabilities are recognised for 
taxable temporary differences arising on 
investments in subsidiaries except where the 
group is able to control the reversal of the 
temporary difference and it is probable that 
the temporary difference will not reverse in the 
foreseeable future
the carrying amount of deferred tax assets 
is reviewed at each balance sheet date and 
reduced to the extent that it is no longer 
probable that sufﬁ cient taxable proﬁ ts will be 
available to allow all or part of the asset to be 
recovered
deferred tax is calculated at the tax rates that 
are expected to apply in the period when 
the liability is settled or the asset is realised 
deferred tax is charged or credited in the 
income statement except when it relates to 
items charged or credited directly to equity in 
which case the deferred tax is also dealt with 
in equity
deferred tax assets and liabilities are offset 
when there is a legally enforceable right to 
set off current tax assets against current tax 
liabilities and when they relate to income 
taxes levied by the same taxation authority 
and the group intends to settle its current tax 
assets and liabilities on a net basis
property plant and equipment
fixtures and equipment are stated at cost less 
accumulated depreciation and any recognised 
impairment loss
depreciation is charged so as to write off the 
cost or valuation of assets other than land 
and properties under construction over their 
estimated useful lives using the straightline 
method on the following basis
leasehold land  buildings life of lease
plant and machinery 7 years
furniture ﬁ xtures and ﬁ ttings 7 years
tools and equipment 4 years
nonrecurring engineering 4 years
boats 10 years
computer equipment  software 3 years
technology licences 45 years raymarine plc annual report 2006 36
assets held under ﬁ nance leases are 
depreciated over their expected useful lives 
on the same basis as owned assets or where 
shorter over the term of the relevant lease
the gain or loss arising on the disposal or 
retirement of an asset is determined as the 
difference between the sales proceeds and the 
carrying amount of the asset and is recognised 
in income
assets in the course of construction represents 
costs directly associated with the construction 
by the group of test equipment these assets 
are not depreciated until they are brought into 
use
internallygenerated intangible 
assets – research and development 
expenditure
expenditure on research activities is recognised 
as an expense in the period in which it is 
incurred
development expenditure where it meets 
certain criteria given below is capitalised 
and amortised on a straightline basis over its 
useful life which is estimated to be three years 
asset lives are subject to regular review and an 
impairment exercise is carried out at least once 
a year where no internallygenerated intangible 
asset can be recognised development 
expenditure is expensed in the period in which 
it is incurred
an asset is recognised only if all of the 
following conditions are met
• the product is technically feasible and 
marketable
• the company has adequate resources to 
complete the development of the product
• the development cost of the asset can be 
measured reliably and 
• it is probable that the asset created will 
generate future economic beneﬁ ts
patents and trademarks
patents and trademarks are measured initially 
at purchase cost and are amortised on a 
straightline basis over their estimated useful 
lives which is determined to be ten years 
impairment of tangible and intangible 
assets excluding goodwill
at each balance sheet date the group reviews 
the carrying amounts of its tangible and 
intangible assets to determine whether there is 
any indication that those assets have suffered 
an impairment loss if any such indication 
exists the recoverable amount of the asset 
is estimated in order to determine the extent 
of the impairment loss if any where the 
asset does not generate cash ﬂ ows that are 
independent from other assets the group 
estimates the recoverable amount of the cash
generating unit to which the asset belongs an 
intangible asset with an indeﬁ nite useful life is 
tested for impairment annually and whenever 
there is an indication that the asset may be 
impaired
recoverable amount is the higher of fair value 
less costs to sell and value in use in assessing 
value in use the estimated future cash ﬂ ows 
are discounted to their present value using 
a pretax discount rate that reﬂ ects current 
market assessments of the time value of money 
and the risks speciﬁ c to the asset for which the 
estimates of future cash ﬂ ows have not been 
adjusted
if the recoverable amount of an asset or 
cashgenerating unit is estimated to be less 
than its carrying amount the carrying amount 
of the asset cashgenerating unit is reduced 
to its recoverable amount an impairment 
loss is recognised as an expense immediately 
unless the relevant asset is carried at a revalued 
amount in which case the impairment loss is 
treated as a revaluation decrease
where an impairment loss subsequently 
reverses the carrying amount of the asset 
cashgenerating unit is increased to the 
revised estimate of its recoverable amount but 
so that the increased carrying amount does not 
exceed the carrying amount that would have 
been determined had no impairment loss been 
recognised for the asset cashgenerating unit 
in prior years a reversal of an impairment loss 
is recognised as income immediately unless the 
relevant asset is carried at a revalued amount 
in which case the reversal of the impairment 
loss is treated as a revaluation increase
inventories
inventories are stated at the lower of cost 
and net realisable value cost comprises 
direct materials and where applicable direct 
labour costs and those overheads that have 
been incurred in bringing the inventories to 
their present location and condition cost is 
calculated using the ﬁ rst in ﬁ rst out fifo 
basis net realisable value represents the 
estimated selling price less all estimated costs 
of completion and costs to be incurred in 
marketing selling and distribution
financial instruments
financial assets and ﬁ nancial liabilities are 
recognised on the group’s balance sheet when 
the group becomes a party to the contractual 
provisions of the instrument
cash and cash equivalents
cash and cash equivalents comprise cash on 
hand and demand deposits 
trade receivables
trade receivables do not carry any interest and 
are stated at their nominal value as reduced 
by appropriate allowances for estimated 
irrecoverable amounts
financial liabilities and equity
financial liabilities and equity instruments are 
classiﬁ ed according to the substance of the 
contractual arrangements entered into an 
equity instrument is any contract that evidences 
a residual interest in the assets of the group 
after deducting all of its liabilities
bank borrowings
interestbearing bank loans and overdrafts 
are recorded at the proceeds received net of 
direct issue costs finance charges including 
premiums payable on settlement or redemption 
and direct issue costs are accounted for on an 
accruals basis to the proﬁ t and loss account 
using effective interest method and are added 
to the carrying amount of the instrument to the 
extent that they are not settled in the period in 
which they arise
trade payables
trade payables are not interestbearing and are 
stated at their nominal value
derivative ﬁ nancial instruments and 
hedge accounting
the group’s activities expose it primarily to the 
ﬁ nancial risks of changes in foreign currency 
exchange rates and interest rates the group 
uses foreign exchange forward contracts to 
hedge these exposures the group does not use 
derivative ﬁ nancial instruments for speculative 
purposes
the use of ﬁ nancial derivatives is governed by 
the group’s policies approved by the board of 
directors which provide written principles on 
the use of ﬁ nancial derivatives the purpose 
for which a derivative is used is identiﬁ ed at 
inception to qualify for hedge accounting the 
contract must be in accordance with established 
guidelines which require that the hedging 
relationship is documented ensure it is highly 
effective in achieving its objective and require  37 raymarine plc annual report 2006 
that its effectiveness can be reliably measured 
throughout its durationterm
changes in the fair value of derivative ﬁ nancial 
instruments that are designated and effective 
as hedges of future cash ﬂ ows are recognised 
directly in equity and the ineffective portion 
is recognised immediately in the income 
statement if the cash ﬂ ow hedge of a ﬁ rm 
commitment or forecasted transaction results in 
the recognition of an asset or a liability then at 
the time the asset or liability is recognised the 
associated gains or losses on the derivative that 
had previously been recognised in equity are 
included in the initial measurement of the asset 
or liability for hedges that do not result in the 
recognition of an asset or a liability amounts 
deferred in equity are recognised in the income 
statement in the same period in which the 
hedged item affects net proﬁ t or loss
for an effective hedge of an exposure to 
changes in the fair value the hedged item is 
adjusted for changes in fair value attributable to 
the risk being hedged with the corresponding 
entry in proﬁ t or loss gains or losses from re
measuring the derivative or for nonderivatives 
the foreign currency component of its carrying 
amount are recognised in proﬁ t or loss
changes in the fair value of derivative ﬁ nancial 
instruments that do not qualify for hedge 
accounting are recognised in the income 
statement as they arise 
hedge accounting is discontinued when 
the hedging instrument expires or is sold 
terminated or exercised or no longer 
qualiﬁ es for hedge accounting at that time 
any cumulative gain or loss on the hedging 
instrument recognised in equity is retained in 
equity until the forecasted transaction occurs 
if a hedged transaction is no longer expected 
to occur the net cumulative gain or loss 
recognised in equity is transferred to net proﬁ t 
or loss for the period
provisions
provisions for warranty costs are recognised 
at the date of sale of the relevant products at 
the directors’ best estimate of the expenditure 
required to settle the group’s liability provisions 
for restructuring costs are recognised when 
the group has a detailed formal plan for the 
restructuring that has been communicated to 
affected parties
sharebased payments
the group has applied the requirements of ifrs 
2 sharebased payments in accordance with 
the transitional provisions ifrs 2 has been 
applied to all grants of equity instruments after 
7 november 2002 that were unvested as of 
1 january 2005
the group issues equitysettled sharebased 
payments to certain employees equitysettled 
sharebased payments are measured at fair 
value at the date of grant the fair value 
determined at the grant date of the equity
settled sharebased payments is expensed on 
a straightline basis over the vesting period 
based on the group’s estimate of shares that 
will eventually vest fair value is measured by 
use of a stochastic model the expected life 
used in the model has been adjusted based 
on management’s best estimate for the effects 
of nontransferability exercise restrictions and 
behavioural considerations
restructuring costs
costs are treated as restructuring costs when 
they are associated with normal activities 
are of a nonrecurring nature and are of an 
exceptional magnitude that if they were not 
shown separately the accounts would not 
present a true and fair view this includes costs 
incurred in relation to the outsourcing of all uk 
manufactured raymarine products
critical accounting judgements and 
key sources of estimation uncertainty
in the process of applying the group’s 
accounting policies which are described 
above management has made the following 
judgements and estimations about the future 
that have the most signiﬁ cant effect on the 
amounts recognised in the ﬁ nancial statements 
we regularly review these estimates and update 
them when required
warranty reserve
determination of the warranty provision is 
based on historic failure rates and warranty 
return periods the latter is a function of the 
warranty given up to three years from the point 
of sale to the end customer and the period 
products are within the distribution channel
capitalisation of research and 
development 
capitalisation of research and development 
expenditure is a requirement of ias 38 all 
capitalised and ongoing projects are reviewed 
regularly to ensure they meet the criteria for 
capitalisation
revenue assumptions are made for new 
products based on our market knowledge 
historic sales and competition for projects to 
be authorised they must achieve a high internal 
rate of return research and development 
expenditure is incurred up front and capitalised 
before any revenue has been earned from 
them actual revenue will vary from the original 
estimates however due to the high internal 
rates of return assumed any risk of impairment 
are considered to be minimal 
research and development expenditure is 
amortised over three years our best estimate 
of the useful life of the projects the period over 
which the assets will generate revenue 
goodwill
the carrying value of goodwill at the year 
end is £302m 2005 £312m an annual 
impairment review is required under ifrs 3 
‘business combinations’ involving judgement of 
the future cash ﬂ ows for cashgenerating units 
management prepare such cash ﬂ ow forecasts 
derived from the most recent budgets approved 
by the board for the next three years further 
details of the other assumptions used are given 
above
taxation
in arriving at our tax obligations we make 
judgements on appropriate tax law within the 
relevant tax jurisdictions that we have a taxable 
presence we seek professional tax advice as 
appropriate before making judgements on tax 
matters deferred tax liabilities are generally 
recognised for all taxable temporary differences 
and deferred tax assets are recognised to the 
extent that it is probable that taxable proﬁ ts 
will be available against which deductible 
temporary differences can be utilised the 
carrying value of deferred tax assets is reviewed 
at each balance sheet date and reduced to 
the extent that it is no longer probable that 
sufﬁ cient taxable proﬁ ts will be available to 
allow all or part of the asset to be recovered raymarine plc annual report 2006 38
uk 
2006
£’000
uk
2005
£’000
america
2006
£’000
america
2005
£’000
total
2006
£’000
total
2005
£’000
revenue
total sales 115590 104580 69727 63037
intersegment sales 48618 45474 209 292
sales to third parties 66972 59106 69518 62745 136490 121851
2006
£’000
2005
£’000
sale of goods 136119 121725
royalty income 371 126
136490 121851
investment income 529 217
other income 43 79
137062 122147
for management purposes the group currently has two geographical areas of operation – united kingdom uk and america these geographical areas 
are the basis on which the group reports its primary segment information segment information determined by origin is presented below 
4 business and geographical segments
geographical segments
intersegment sales are charged at prevailing market prices
3 revenue
an analysis of the group’s revenue is as follows 39 raymarine plc annual report 2006 
uk 
2006
£’000
uk
2005
£’000
america
2006
£’000
america
2005
£’000
elim
2006
£’000
elim
2005
£’000
total
2006
£’000
total
2005
£’000
operating proﬁ t before 
restructuring costs
24741 20439 2191 2071 3013 845 23919 21665
   restructuring and nonrecurring costs 7823 10588
operating proﬁ t 16096 11077
 investment income 529 217
 finance costs 2534 3232
proﬁ t before tax 14091 8062
 tax 3754 305
proﬁ t after tax 10337 8367
uk 
2006
£’000
uk
2005
£’000
america
2006
£’000
america
2005
£’000
elim
2006
£’000
elim
2005
£’000
total
2006
£’000
total
2005
£’000
capital additions 11872 7041 460 687 – – 12332 7728
depreciation and amortisation 6875 6276 313 298 – – 7188 6574
impairment reversals  losses recognised 
in income
1061 1647 – – – – 1061 1647
balance sheet
assets
segment assets 77629 68703 28939 23867 13320 5747 93248 86823
unallocated assets 
1
28 397
total consolidated assets 93276 87220
liabilities
segment liabilities 26454 24168 13356 5598 10834 3874 28976 25892
unallocated liabilities 
2
41681 43367
total consolidated liabilities 70657 69259
1
 unallocated assets includes ﬁ nancial assets
2
 unallocated liabilities includes bank borrowings ﬁ nance lease liabilities ﬁ nancial liabilities and taxation liabilities
business segment
the group’s revenue is derived from one class of business that of marine electronics it is not possible to disaggregate the products beyond the core 
marine electronics products as they all operate through the same markets and are considered to have the same risks and rewards associated with them
4 business and geographical segments continued
geographical segments continued
other information raymarine plc annual report 2006 40
2006
£’000
2005
£’000
redundancy costs 530 2316
property costs 40 1094
consultancy and other staff related costs 4057 2468
proﬁ t  loss on disposal of ﬁ xed assets 711 3666
transfer costs 3636 978
weee costs 351 387
7823 10909
2006
£’000
2005
£’000
listing on the london stock exchange – 321
the 2005 credit received was in respect of a vat refund on ﬂ otation costs incurred in 2004 
in july 2005 the group agreed to outsource the majority of its manufacturing function to flextronics a provider of electronics manufacturing services 
under the agreement flextronics will provide vertically integrated manufacturing services to the group initially through its facility in western hungary 
to the extent that workers can not be redeployed termination terms have been agreed and the related costs together with the expected costs of 
exiting properties which will become vacant as part of the restructuring and costs of transferring stocks and assets to hungary have been included in 
the restructuring provision note 22 the process of transferring ﬁ xed assets to hungary has now been completed and the majority of ﬁ xed assets have 
been disposed of this has led to a reversal in respect of the impairment originally set up of £747k the balance of the charge comprises incremental 
costs incurred in the period which are associated with the project the tax effect of the restructuring costs in 2006 was a credit of £2316000 2005 
£5553000 as explained further in note 10 production has now ceased in the uk ending the ﬁ rst phase of the project the second phase which 
relates to moving from raymarine’s suppliers of raw materials and components to flextronics’ suppliers is underway and will continue into 2007
b restructuring costs
5 a administrative expenses – ﬂ otation and nonrecurring costs 41 raymarine plc annual report 2006 
2006
£’000
2005
£’000
other income note 3 43 79
net foreign exchange gains 24 3369
research and development costs
   research and development costs expensed 4779 4813
   amortisation and impairment of capitalised development costs 3550 2610
warranty costs for the year 3718 3769
warranty provision release  increase 1177 1158
amortisation of other intangible assets 725 725
depreciation and other amounts written off property plant and equipment
   owned 2671 2830
   leased 401 409
rentals payable under operating leases
   property 1384 1444
   hire of other assets 290 181
staff costs note 7 25598 25207
abortive acquisition costs 355 –
cost of inventories recognised as an expense 58580 51090
amounts written off inventories 39 836
auditors’ remuneration for audit services see below 154 164
2006
£’000
2005
£’000
fees payable to the company’s auditors for the audit of the company’s annual accounts 9 8
fees payable to the company’s auditors and their associates for other services to the group
   the audit of the company’s subsidiaries pursuant to legislation 113 102
   ifrs opening balance sheet and related audit work – 35
   other assurance work 32 19
total audit fees 154 164
other services pursuant to legislation
   tax services related to
      compliance 114 42
      general advisory 104 104
      restructuring 125 115
   corporate ﬁ nance services 25 –
   other services
      ifrs implementation advice – 42
total nonaudit fees 368 303
6 operating proﬁ t
operating proﬁ t before restructuring costs is stated after charging or crediting
the analysis of auditors’ remuneration is as follows
a description of the work of the audit committee is set out in the corporate governance statement on page 16 and includes an explanation of how 
auditor objectivity and independence is safeguarded when nonaudit services are provided by the auditors raymarine plc annual report 2006 42
2006
number
2005
number
production and supply chain 201 280
research and development 131 111
technical support 84 82
sales and marketing 65 74
administration 58 54
539 601
2006
£’000
2005
£’000
their aggregate remuneration comprised
wages and salaries 15747 14057
redundancy 604 2316
social security costs 1913 1584
other pension costs note 33 364 357
raymarine uk limited costs 18628 18314
raymarine inc costs 6970 6893
25598 25207
2006
£’000
2005
£’000
interest receivable 139 217
foreign exchange gains 390 –
529 217
7 staff costs
the average monthly number of employees including executive directors was
the average number of persons employed by the group includes 133 2005 133 at raymarine inc which leased its employees from adp totalsource 
pension contributions included above in the raymarine inc payroll costs were £393000 2005 £373000
the ﬁ gures above include a charge for redundancy provision of £530000 2005 £2316000 as detailed in note 5b
8 finance income 43 raymarine plc annual report 2006 
2006
£’000
2005
£’000
current tax
uk corporation tax
   current year 3390 3088
   adjustment recognised in period for current tax of prior periods 37 1626
foreign tax
   current year 20 26
   adjustment recognised in period for current tax of prior periods – 150
current tax charge for year 3447 1338
deferred tax note 19
   current year 875 466
   adjustment recognised in period for current tax of prior periods 568 1177
307 1643
total tax charge  credit 3754 305
2006
£’000
2005
£’000
interest payable on bank loans 2505 2541
interest payable on ﬁ nance leases 29 50
total borrowing costs 2534 2591
foreign exchange losses – 641
2534 3232
9 finance costs
10 taxation
the adjusted effective rate after adjusting proﬁ t before tax for restructuring costs of £78m 2005 £109m ﬂ otation and other nonrecurring costs of 
£nil 2005 £03m credit and amortisation of other intangible ﬁ xed assets of £07m 2005 £07m is calculated at 268 2005 268 for the year 
the charge for the year has been reduced by £23m 2005 £55m for a tax credit in respect of restructuring costs
taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions
on 22 november 2004 raymarine inc a 100 subsidiary of raymarine plc was migrated to be resident in the united states under uk tax rules 
there is a deemed disposal of the company’s assets for uk tax purposes on the date of emigration from the uk which gives rise to a heldover 
chargeable gain the gain would crystallise if raymarine inc were to sell its chargeable asset goodwill before 22 november 2010 or cease to be a 
75 subsidiary of the group at any time the estimated tax charge that would arise is £44m in accordance with ias 12 no provision has been made 
for this raymarine plc annual report 2006 44
  2006 2005
£’000  £’000 
proﬁ t before tax 14091 8062
tax at the uk corporation tax rate of 30 2005 30 4227 2418
tax effect of expenses that are not deductible in determining taxable proﬁ t 269 374
prior year adjustments 531 2953
tax effect of utilisation of tax losses not previously recognised 235 120
effect of different tax rates of subsidiaries operating in other jurisdictions 24 24
tax charge  credit and effective tax rate for the year 3754 266 305 38
2006
£’000
2005
£’000
amounts recognised as distributions to equity holders in the period
interim dividend paid for the year ended 31 december 2005 of 2p per share – 1656
final dividend paid in the year for the year ended 31 december 2005 of 5p per share 4140 –
interim dividend paid in the year for the year ended 31 december 2006 of 28p per share 2318 –
6458 1656
proposed ﬁ nal dividend for the year ended 31 december 2006 of 595p 2005 5p per share 4927 4140
10 taxation continued
the charge  credit for the year can be reconciled to the proﬁ t per the income statement as follows
11 dividends
the proposed ﬁ nal dividend is subject to approval by shareholders at the annual general meeting and accordingly has not been included as a liability in 
these ﬁ nancial statements 45 raymarine plc annual report 2006 
2006
£’000
2005
£’000
earnings
earnings for the purposes of basic earnings per share being net proﬁ t attributable to equity shareholders of the parent 10337 8367
deduct tax credit re ﬂ otation matters  exceptional ﬂ otation costs – 315
add     exceptional restructuring costs note 5 net of tax 5507 5350
             amortisation of other intangible assets note 13 725 725
earnings for the purposes of adjusted earnings per share 16569 14127
2006
number
2005
number
number of shares
weighted average number of ordinary shares for the purposes of basic earnings per share 82802408 82788721
effect of dilutive potential ordinary shares
   share options 64950 4192
   longterm incentive plan 1527851 723440
weighted average number of ordinary shares for the purposes of diluted earnings per share 84395209 83516353
2006 2005
basic eps 125p 101p
diluted eps 122p 100p
2006 2005
basic eps 200p 171p
diluted eps 196p 169p
12 earnings per share
eps pence
adjusted eps pence
the calculation of the basic and diluted earnings per share is based on the following data raymarine plc annual report 2006 46
goodwill
£’000
development 
expenditure
£’000
other
£’000
total
£’000
cost
at 1 january 2005 30285 7696 7254 45235
exchange differences 889 – – 889
additions – 3627 – 3627
at 1 january 2006 31174 11323 7254 49751
exchange differences 1007 – – 1007
additions – 7858 – 7858
at 31 december 2006 30167 19181 7254 56602
amortisation
at 1 january 2005 – 1275 2841 4116
charge for the year – 2610 725 3335
at 1 january 2006 – 3885 3566 7451
charge for the year – 3391 725 4116
at 31 december 2006 – 7276 4291 11567
impairment
at 1 january 2005 and 1 january 2006 ––––
charge for the year – 159 – 159
at 31 december 2006 – 159 – 159
net book value
at 31 december 2006 30167 11746 2963 44876
at 31 december 2005 31174 7438 3688 42300
13 intangible ﬁ xed assets
other intangible ﬁ xed assets comprises intellectual property patents and licences 47 raymarine plc annual report 2006 
short 
leasehold land 
and buildings
£’000
plant and 
machinery
£’000
fittings 
ﬁ xtures tools 
and equipment
£’000
assets in the 
course of 
construction
£’000
total
£’000
cost
at 1 january 2005
exchange differences
additions
disposals and writeoffs
at 1 january 2006
exchange differences
additions
disposals and writeoffs
transfers
at 31 december 2006
accumulated depreciation
at 1 january 2005
exchange differences
charge for the year
disposals and writeoffs
at 1 january 2006
exchange differences
charge for the period
disposals and writeoffs
at 31 december 2006
impairment
at 1 january 2005
impairment charge
at 1 january 2006
impairment charge
disposals
at 31 december 2006
net book value
at 31 december 2006
at 31 december 2005
14 property plant and equipment
the carrying amount of the group’s ﬁ xtures ﬁ ttings tools and equipment included £509000 2005 £816000 in respect of assets held under ﬁ nance leases
1127
15
351
75
1418
28
305
14
–
1681
412
4
272
63
625
8
269
12
874
–
213
213
85
213
85
722
580
6775
3
266
258
6786
–
280
4179
–
2887
3911
–
663
256
4318
–
457
2928
1847
–
1357
1357
89
1194
252
788
1111
19738
222
3484
4787
18657
271
2886
4589
68
16751
13280
168
2304
2624
13128
186
2346
4091
11197
–
77
77
185
172
90
5464
5452
27640
240
4101
5120
26861
299
4374
8782
–
22154
17603
172
3239
2943
18071
194
3072
7031
13918
–
1647
1647
359
1579
427
7809
7143
–
–
–
–
–
–
903
–
68
835
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
835
– raymarine plc annual report 2006 48
2006
£’000
2005
£’000
raw materials and consumables 1430 4587
workinprogress 148 2581
finished goods and goods for resale 15271 11488
16849 18656
2006
£’000
2005
£’000
amounts receivable for the sale of goods 19034 14272
other debtors 999 947
prepayments and accrued income 1613 1463
21646 16682
15 inventories
16 other ﬁ nancial assets
trade and other receivables
the average credit period taken on sales of goods in the uk is 58 days 2005 58 days in the us the credit period is 31 days 2005 29 days no 
interest is charged on the receivables from date of the invoice to payment amounts receivable for sale of goods of £271000 2005 £101000 were 
fully impaired and mainly relate to distributors experiencing difﬁ cult economic situations the directors consider that the carrying amount of trade and 
other receivables approximates their fair value
cash and cash equivalents
cash and cash equivalents comprise cash held by the group and shortterm bank deposits with an original maturity of three months or less the 
carrying amount of these assets approximates their fair value
credit risk
the group’s principal ﬁ nancial assets are bank balances and cash and trade and other receivables which represent the group’s maximum exposure to 
credit risk in relation to ﬁ nancial assets
the group’s credit risk is primarily attributable to its trade receivables the amounts presented in the balance sheet are net of allowances for doubtful 
receivables estimated by the group’s management based on prior experience and their assessment of the current economic environment
the credit risk on liquid funds and derivative ﬁ nancial instruments is limited because the counterparties are banks with high creditratings assigned 
by international creditrating agencies the group has no signiﬁ cant concentration of credit risk with exposure spread over a large number of 
counterparties and customers
inventory of workinprogress and raw material has been sold to the outsourcing partner as part of the outsourcing plan further inventory items are 
expected to be sold in 2007 49 raymarine plc annual report 2006 
2006
£’000
2005
£’000
current
bank overdrafts 7035 –
noncurrent
bank loans 38388 39965
unamortised debt costs 232 347
38156 39618
45191 39618
the borrowings are repayable as follows
on demand or within one year 7035 –
in the third to ﬁ fth years inclusive 38156 39618
45191 39618
sterling
£’000
us dollars
£’000
total
£’000
analysis of borrowings by currency
31 december 2006
bank overdrafts 2988 4047 7035
bank loans 18969 19187 38156
21957 23234 45191
31 december 2005
bank loans 17958 21660 39618
2006

2005

the weighted average interest rates paid were as follows
bank overdrafts 63 –
bank loans 55 51
2006
£’000
2005
£’000
bank overdrafts 7035 –
bank loans 38388 39965
45423 39965
17 bank loans and overdrafts
bank loans of £384m 2005 £400m relate to a facility under a 135000000 syndicated revolving credit arrangement set up on 6 december 2004 
the loan carried a charge of 50 basis points over dollar and sterling libor 2005 70 basis points at 31 december 2006
the directors estimate the fair value of the group’s borrowings as follows
bank overdrafts are repayable on demand the average effective interest rate on bank overdrafts approximates 63 2005 nil per annum and is 
determined based on 1 per cent plus prime rate
at 31 december 2006 the group had available £255m 2005 £401m of undrawn committed borrowing facilities in respect of which all conditions 
precedent had been met raymarine plc annual report 2006 50
2006
£’000
2005
£’000
forward foreign exchange contracts – 1849
accelerated 
tax 
depreciation
£’000
deferred 
development 
costs 
£’000
other
£’000
total
£’000
at 1 january 2005 732 2270 956 2046
credit  charge to income 1662 43 62 1643
charge to equity – – 113 113
exchange differences 17 – 91 74
at 1 january 2006 913 2227 872 442
charge  credit 321 1293 1307 307
charge to equity – – 346 346
exchange differences 38 – 101 63
at 31 december 2006 630 3520 2424 466
2006
£’000
2005
£’000
deferred tax liabilities 786 1067
deferred tax assets 320 625
466 442
18 derivative ﬁ nancial instruments
currency derivatives
the group utilises currency derivatives to hedge signiﬁ cant future transactions and cash ﬂ ows there were no foreign currency forward contracts in place 
at 31 december 2006 2005 2 the instruments in 2005 were denominated in us dollars the currency of the group’s principal foreign market 
the total notional amount of outstanding forward foreign exchange contracts that the group has committed to at the end of each year are shown 
below
the arrangements were designed to address signiﬁ cant exchange exposure in the ﬁ rst quarter of 2006 the foreign exchange exposure of the group is 
monitored on an ongoing basis and the requirement for future derivative ﬁ nancial instruments is kept under review 
at 31 december 2006 the fair value of the group’s currency derivatives is £nil 2005 £04m the 2005 amounts were based on quoted market values 
of equivalent instruments at the balance sheet date the fair value of currency derivatives that were designated and effective as cash ﬂ ow hedges 
amounting to £04m in 2005 were deferred in equity
included in other operating income is £04m 2005 £28m which has been transferred from reserves in respect of foreign currency forward contracts 
that have matured during the period
hedge of net investment in foreign entity
the group has us dollar denominated borrowings which it has designated as a hedge of the net investment in its subsidiary in the us the fair value of 
the dollar borrowings hedging the net investment as at 31 december 2006 was £31m 2005 £36m foreign exchange gains of £03m 2005 loss of 
£02m on translation of the borrowings into pounds sterling have been recognised in the statement of recognised income and expense
19 deferred tax
the following are the major deferred tax liabilities and assets 
recognised by the group and movements thereon during the current 
and prior reporting period
certain deferred tax assets and liabilities have been offset the following is the analysis of the deferred tax 
balances after offset for ﬁ nancial reporting purposes 51 raymarine plc annual report 2006 
minimum lease payments present value of lease payments
2006
£’000
2005
£’000
2006
£’000
2005
£’000
amounts payable under ﬁ nance leases
within one year 313 394 291 367
in the second to ﬁ fth years inclusive 242 495 218 450
555 889 509 817
less future ﬁ nance charges 46 72 na na
present value of lease obligations 509 817
less
amount due for settlement within 12 months shown under current liabilities 291 367
amount due for settlement after 12 months 218 450
2006
£’000
2005
£’000
current liabilities
trade creditors 8156 10378
accruals and deferred income 7484 6169
15640 16547
noncurrent liabilities
trade creditors 192 –
15832 16547
20 obligations under ﬁ nance leases
21 other ﬁ nancial liabilities
trade and other payables
trade creditors comprise amounts outstanding for trade purchases and ongoing costs the average credit period taken for trade purchases is 32 days 
2005 38 days
the directors consider that the carrying amount of trade and other payables approximates to their fair value
leases are classiﬁ ed as ﬁ nance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee the 
average lease term weighted by asset cost is 42 months 2005 41 months
the effective interest rate weighted by asset cost is 29 2005 55
the group has ﬁ nance leases denominated in pounds sterling and us dollars the fair value of the group’s lease obligations approximates their carrying 
amount the group’s obligations under ﬁ nance leases are secured by the lessors’ charges over the leased assets raymarine plc annual report 2006 52
warranty 
provision
£’000
restructuring 
provision
£’000
total
£’000
at 1 january 2006 5738 3607 9345
exchange difference 57 – 57
additional provision in the year 3773 – 3773
writeback in the year 1280 187 1467
utilisation of provision 3670 1815 5485
at 31 december 2006 4504 1605 6109
included in current liabilities 4273
included in noncurrent liabilities 1836
6109
2006
£’000
2005
£’000
authorised
equity 1000000000 2005 1000000000 ordinary shares of £001 each 10000 10000
issued and fully paid
equity 82803530 2005 82790317 ordinary shares of £001 each 828 828
number £’000
at the beginning of the year 82790317 828
allotment of shares to share incentive plan 13213 –
balance at 31 december 2006 82803530 828
22 provisions
the warranty provision reﬂ ects the best estimate of future claims under product warranties which are given to the end user for up to three years from 
date of sale
the restructuring provision relates to the implementation of outsourcing manufacturing to flextronics in hungary which began in 2005 the provision 
reﬂ ects expected severance payments and retention bonuses totalling £07m that are anticipated to be paid in 2007 the remaining £09m reﬂ ects 
anticipated property costs associated with cessation of manufacturing at our anchorage park facility
23 share capital
changes in the issued share capital during the year were as follows
the company has one class of ordinary shares which carry no right to ﬁ xed income 53 raymarine plc annual report 2006 
£’000
balance at 1 january 2006 3207
premium arising on issue of equity shares 48
balance at 31 december 2006 3255
£’000
balance at 1 january 2006 155
vested awards under the ltip 152
awards under the ltip 313
share option plan 7
deferred tax on the above items 232
balance at 31 december 2006 859
hedging 
reserve
£’000
translation 
reserve
£’000
total
£’000
balance at 1 january 2005 – 413 413
exchange differences on translation of overseas operations – 348 348
transfer of the initial carrying amount of hedged items on cash ﬂ ow hedges 3828 – 3828
transfer to income on cash ﬂ ow hedges 2779 – 2779
foreign exchange losses on hedging derivatives maturing during the year 668 – 668
related deferred tax on above items 114 – 114
balance at 1 january 2006 267 65 202
exchange differences on translation of foreign currency operations – 446 446
transfer to income on cash ﬂ ow hedges 399 – 399
foreign exchange gains on hedging derivatives maturing during the year 18 – 18
related deferred tax on above items 114 – 114
balance at 31 december 2006 – 381 381
24 share premium account
25 equity reserve
during the year the group entered into a second ltip for some of its staff both this plan and the plan entered into in 2005 are being accounted for as 
equity settled schemes and operate over three years with any award being linked to performance related targets which reﬂ ect the group’s performance 
during the period the maximum award under the schemes are 609335 shares and 1068763 shares respectively note 32 an additional charge to 
the income statement of £270000 arises in the year in respect of national insurance contributions accrued
26 hedging and translation reserves
the hedging reserve reﬂ ects the fair value of the unrealised exchange gains and losses on unmatured foreign exchange contracts at the year end the 
cumulative currency translation adjustment for the group is held in the translation reserve and both reserves are considered to be undistributable raymarine plc annual report 2006 54
£’000
balance at 1 january 2005 6933
net proﬁ t for the year 8367
dividends paid 1656
other adjustments 75
balance at 1 january 2006 13569
net proﬁ t for the year 10337
dividends paid 6458
vested awards under the ltip 152
balance at 31 december 2006 17296
2006
£’000
2005
£’000
total recognised income and expense for the year 10364 8907
dividends paid 6458 1656
increase in equity reserve 704 155
increase in share capital and premium 48 41
4658 7447
shareholders’ equity brought forward 17961 10514
shareholders’ equity carried forward 22619 17961
27 retained earnings
28 consolidated statement of changes in equity 55 raymarine plc annual report 2006 
2006
£’000
2005
£’000
operating proﬁ t 16096 11077
adjustments for
   foreign exchange 823 69
   depreciation of property plant and equipment 3072 3239
   impairment reversal  charge on ﬁ xtures and equipment 93 1647
   amortisation of impairment of intangible assets 4275 3335
   proﬁ t  loss on disposal of property plant and equipment 334 2017
   decrease  increase in provisions 3179 4711
operating cash ﬂ ows before movements in working capital 20660 26095
   decrease in inventories 802 994
   increase in receivables 5958 809
   increase  decrease in payables 209 4457
cash generated by operations 15713 21823
interest received 138 216
interest paid 2434 3969
foreign exchange 392 641
tax paid  received 3401 201
net cash from operating activities 10408 17630
reconciliation of net debt reconciliation of net debt
1 january
2006
foreign 
exchange cash ﬂ ow noncash
31 december 
2006
cash in hand and at bank 2042 161 187 – 2068
overdrafts – – 7035 – 7035
2042 161 6848 – 4967
debt due after 1 year 39618 2577 1000 115 38156
finance leases 817 38 399 129 509
net debt 38393 2454 7449 244 43632
29 notes to the cash ﬂ ow statement
additions to ﬁ xtures and equipment during the year amounting to £01m 2005 £07m were ﬁ nanced by new ﬁ nance leases
 
cash and cash equivalents which are presented as a single class of assets on the face of the balance sheet comprise cash at bank and other short
term highly liquid investments with a maturity of three months or less less the bank overdraft
30 contingent liabilities
upon signature of the outsourcing agreement with flextronics raymarine received proceeds for the sale of existing production and test equipment 
totalling £14m the underlying proceeds being a dollar denominated payment of 25m under the terms of the agreement upon termination 
raymarine becomes liable for a prorata repayment of the £14m on return of the assets sold at the balance sheet date 17 months of the 60 month 
initial period had expired leaving a contingent liability of £09m raymarine plc annual report 2006 56
ltip share options
maximum 
number of 
shares
weighted 
average fair 
value per 
shares £
number of 
shares
weighted 
average 
exercise price 
£
outstanding at beginning of period 1068763 114 150000 227
granted during the period 609335 250 300000 447
outstanding at the end of the period 1678098 163 450000 374
ltip share options
2006 2005
2006
2005
tranche 1 tranche 2
weighted average share price na na £449 £449 £245
weighted average exercise price na na £447 £447 £227
weighted average fair value per share £250 £114 na na na
expected volatility 284 26 30 30 25
expected life 3 years 3 years 5 years 6 years 5 years
riskfree rate 45 45 50 49 427
expected dividend yield 2 3 176 176 264
grant date na na 211206 211206 150805
2006
£’000
2005
£’000
within one year 1704 1703
in the second to ﬁ fth years inclusive 4549 4732
after ﬁ ve years 1093 1974
7346 8409
32 share based payments
the options outstanding at 31 december 2006 had a weighted average exercise price of £374 and a weighted average remaining contractual life of 
5 years
operating lease payments represent rentals payable by the group for the entire duration of the lease for certain of its cars and properties average lease 
terms at ﬁ xed rates for cars and vending equipment are 39 months and 32 months respectively the average lease term for properties is 107 months 
operating lease payments for some of the properties are subject to a rent review
31 operating lease arrangements
at the balance sheet date the group had outstanding commitments for future minimum lease 
payments under noncancellable operating leases which fall due as follows
expected volatility was determined by calculating the historical volatility of the group’s share price from the date of listing 6 december 2004 to the 
date of the grant the expected life used in the model is management’s best estimate allowing for the effects of nontransferability exercise restrictions 
and behavioural considerations
the inputs into the blackscholes model are as follows 57 raymarine plc annual report 2006 
32 share based payments continued
ltip
during the year the group entered into a second ltip for some of its staff both this plan and the plan entered into in 2005 are being accounted for as 
equity settled schemes and operate over three years with any award being linked to performance related targets which reﬂ ect the group’s performance 
during the period the maximum award under the schemes is 609335 shares and 1068763 shares respectively a charge to the income statement of 
£791k was made during the period
equitysettled share option plan
the company has issued 450000 share options to a single member of senior management the options are exercisable at a price equal to the average 
of the quoted market price of the company’s shares on the three days prior to the date of each of the grants there have been three separate grants 
the vesting period and grant dates are given in the table opposite if the options remain unexercised after a period of 10 years from the date of the 
grant the options expire options are forfeited if the employee leaves the group before the options vest the charge to the income statement in respect 
of the option is £28k
33 retirement beneﬁ t schemes
deﬁ ned contribution scheme
the group operates a deﬁ ned contribution pension scheme for raymarine uk limited the assets of the scheme are held separately from those of 
the group in funds under the control of trustees where there are employees who leave the scheme prior to vesting fully in the contributions the 
contributions payable by the group are reduced by the amount of forfeited contributions
the cost charged to income in respect of this pension scheme of £364000 2005 £357000 represents contributions payable to the scheme by the 
group at rates speciﬁ ed in the rules of the plan as at 31 december 2006 contributions of £65000 2005 £56000 due in respect of the current 
reporting period had not been paid over to the scheme and are included in creditors
the group leased its raymarine inc employees from adp totalsource during the entire year of 2005 adp totalsource operates a deﬁ ned contribution 
scheme 
the cost charged to income in respect of the scheme operated by adp  of £393000 2005 £373000 represents contributions payable to various 
funds by the group at rates speciﬁ ed in the rules of the plan as at 31 december 2006 contributions of £64000 2005 £74000 due in respect of the 
current reporting period had not been paid over to the scheme and are included in creditors
34 events after the balance sheet date
there were no signiﬁ cant events after the balance sheet date
35 related party transactions
transactions between the company and its subsidiaries which are related parties have been eliminated on consolidation and are not disclosed in this 
note 
remuneration of key management personnel
details of the remuneration of the directors who are the key management personnel of the group is provided in aggregate for each of the categories 
speciﬁ ed in ias 24 related party disclosures in the audited part of the directors’ remuneration report on pages 20 to 23 along with further information 
about the remuneration of individual directors raymarine plc annual report 2006 58
we have audited the parent company ﬁ nancial statements of raymarine plc for the year ended 31 december 2006 which comprise the income 
statement the statement of recognised income and expense the balance sheet the cash ﬂ ow statement and the related notes 36 to 50 these parent 
company ﬁ nancial statements have been prepared under the accounting policies set out therein
we have reported separately on the group ﬁ nancial statements of raymarine plc for the year ended 31 december 2006 and on the information in the 
directors’ remuneration report that is described as having been audited 
this report is made solely to the company’s members as a body in accordance with section 235 of the companies act 1985 our audit work has been 
undertaken so that we might state to the company’s members those matters we are required to state to them in an auditors’ report and for no other 
purpose to the fullest extent permitted by law we do not accept or assume responsibility to anyone other than the company and the company’s 
members as a body for our audit work for this report or for the opinions we have formed
respective responsibilities of directors and auditors
the directors’ responsibilities for preparing the annual report and the parent company ﬁ nancial statements in accordance with applicable law and 
international financial reporting standards ifrss as adopted by the european union are set out in the statement of directors’ responsibilities
our responsibility is to audit the parent company ﬁ nancial statements in accordance with relevant legal and regulatory requirements and international 
standards on auditing uk and ireland
we report to you our opinion as to whether the parent company ﬁ nancial statements give a true and fair view and whether the parent company 
ﬁ nancial statements have been properly prepared in accordance with the companies act 1985 we also report to you whether in our opinion the 
information given in the directors’ report is consistent with the parent company ﬁ nancial statements the information given in the directors’ report 
includes that speciﬁ c information presented in the financial review that is cross referred from the business review section of the directors’ report
in addition we report to you if in our opinion the company has not kept proper accounting records if we have not received all the information and 
explanations we require for our audit or if information speciﬁ ed by law regarding directors’ remuneration and other transactions is not disclosed
we read the other information contained in the annual report as described in the contents section and consider whether it is consistent with the 
audited parent company ﬁ nancial statements we consider the implications for our report if we become aware of any apparent misstatements or 
material inconsistencies with the parent company ﬁ nancial statements our responsibilities do not extend to any further information outside the annual 
report
basis of audit opinion
we conducted our audit in accordance with international standards on auditing uk and ireland issued by the auditing practices board an audit 
includes examination on a test basis of evidence relevant to the amounts and disclosures in the parent company ﬁ nancial statements it also includes 
an assessment of the signiﬁ cant estimates and judgments made by the directors in the preparation of the parent company ﬁ nancial 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 
sufﬁ cient evidence to give reasonable assurance that the parent company ﬁ nancial statements 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 parent 
company ﬁ nancial statements
opinion
in our opinion
•  the parent company ﬁ nancial statements give a true and fair view in accordance with ifrss as adopted by the european union of the state of the 
company’s affairs as at 31 december 2006 and of its proﬁ t for the year then ended
• the parent company ﬁ nancial statements have been properly prepared in accordance with the companies act 1985 and
• the information given in the directors’ report is consistent with the parent company ﬁ nancial statements
deloitte  touche llp
chartered accountants and registered auditors 
southampton united kingdom
26 february 2007
independent auditors ʼ report to the members of raymarine plc 59 raymarine plc annual report 2006 
2006
£’000
2005
£’000
note
administrative expenses
 – other administrative expenses 606 632
 – flotation and nonrecurring costs – 26
operating loss 37 606 606
finance income 39 13305 7591
finance costs 40 – 244
proﬁ t before tax 12699 6741
taxation 41 179 2226
proﬁ t for the year attributable to equity shareholders to the company 48 12520 8967
2006
£’000
2005
£’000
note
transfers
vested awards under the ltip 152 –
proﬁ t for the period 12520 8967
total recognised income and expense for the year attributable to shareholders 
to the company
49 12368 8967
2006
£’000
2005
£’000
note
transfers
vested awards under the ltip 46 152 –
proﬁ t for the period 12520 8967
total recognised income for the year attributable to shareholders 
to the company
49 12368 8967
company income statement
year ended 31 december 2006
company statement of recognised income and expense
year ended 31 december 2006 raymarine plc annual report 2006 60
2006
£’000
2005
£’000
note
noncurrent assets
intangible assets 42 274 274
current assets
trade and other receivables 39 27
amounts owed by group undertakings 17185 10506
current tax assets 2637 2816
cash and cash equivalents 44 10 202
19871 13551
current liabilities
trade and other payables 45 129 239
amounts owed to group undertakings 27 282
156 521
net current assets 19715 13030
net assets 19989 13304
equity
share capital 23 828 828
share premium account 24 3255 3207
equity reserve 46 859 155
hedging and translation reserve 47 382 405
retained earnings 48 15429 9519
equity attributable to equity shareholders to the company 49 19989 13304
company balance sheet
at 31 december 2006
the ﬁ nancial statements were approved by the board of directors and authorised for issue on 26 february 2007 they were signed on its behalf by
tony osbaldiston
finance director 61 raymarine plc annual report 2006 
2006
£’000
2005
£’000
note
net cash from operating activities 50 308 2632
investing activities
dividends received 12908 7516
net cash from investing activities 12908 7516
financing activities
issue of ordinary shares 48 42
increase in intercompany loans 6127 3354
repayments  increase of intercompany borrowings 255 90
dividends paid 6458 1656
net cash used in ﬁ nancing activities 12792 4878
net decrease  increase in cash and cash equivalents 192 6
cash and cash equivalents at beginning of year 202 154
effect of foreign exchange rate changes – 42
cash and cash equivalents at end of year 10 202
company cash ﬂ ow statement
year ended 31 december 2006 raymarine plc annual report 2006 62
2006
£’000
2005
£’000
auditors’ remuneration for audit services see below 9 8
the analysis of auditors’ renumeration is as follows
2006
£’000
2005
£’000
fees payable to the company’s auditors for the audit of the company’s annual accounts 9 8
total audit fees 9 8
other services pursuant to legislation
   tax services related to
      compliance 10 6
      general advisory 43 96
  other services
      ifrs implementation advice – 42
total nonaudit fees 53 144
2006
£’000
2005
£’000
dividends received 12908 7516
interest received 395 10
foreign exchange gains 2 65
13305 7591
2006
£’000
2005
£’000
interest paid on intercompany borrowings – 244
37 operating loss
operating loss before ﬂ otation and nonrecurring costs is stated after charging
a description of the work of the audit committee is set out in the corporate governance statement on page 18 and includes an explanation of how 
auditor objectivity and independence is safeguarded when nonaudit services are provided by the auditors
38 staff costs
there were no employees of the company during the year ended 31 december 2006 2005 nil emoluments of the nonexecutive directors can be 
found in the directors’ remuneration report on page 23
39 finance income
40 finance costs
36 signiﬁ cant accounting policies
the separate ﬁ nancial statements of the company are presented as required by the companies act 1985 as permitted by that act the separate 
ﬁ nancial statements have been prepared in accordance with international financial reporting standards
the ﬁ nancial statements have been prepared on the historical cost basis the principal accounting policies adopted are the same as those set out in 
note 2 to the consolidated ﬁ nancial statements except as noted below
investments in subsidiaries are stated at cost less where appropriate provisions for impairment
notes to the company ﬁ nancial statements
year ended 31 december 2006 63 raymarine plc annual report 2006 
goodwill
£’000
cost and net book value
at 1 january 2005 1 january 2006 and 31 december 2006 274
name of subsidiary
place of 
incorporation 
or registration
principal 
activity
class and 
percentage 
shares held
method used 
to account for 
investment
raymarine holdings limited great britain holding company ordinary 100 purchase
raymarine 2002 limited great britain nontrading ordinary 100 purchase
raymarine inc us marine electronics ordinary 100 purchase
raymarine uk limited great britain marine electronics ordinary 100 purchase
raymarine asia pty limited australia marine electronics ordinary 100 purchase
2006 2005
£’000  £’000 
proﬁ t before tax 12699 6741
tax at domestic income tax rate of 30 2005 30 3810 2022
tax effect of expenses that are not deductible in determining taxable proﬁ t 7 9
dividend income not taxable 3872 2250
adjustment to tax charge in respect of previous periods 234 2007
tax charge  credit and effective tax rate for the year 179 14 2226 330
2006
£’000
2005
£’000
current tax
domestic – current 55 219
               – prior year 234 2007
179 2226
41 taxation
domestic income tax is calculated at 30 2005 30 of the estimated assessable proﬁ t for the year
the charge  credit for the year can be reconciled to the proﬁ t per the income statement as follows
42 intangible assets
43 subsidiaries
details of the company’s subsidiaries at 31 december 2006 are as follows
investment held by a subsidiary company raymarine plc annual report 2006 64
£’000
balance at 1 january 2006 155
vested awards under the ltip 152
awards under the ltip 313
share option plan 7
deferred tax on the above items 232
balance at 31 december 2006 859
translation 
reserve
£’000
balance at 1 january 2005 406
exchange differences on translation of employee beneﬁ t trust 1
balance at 1 january 2006 405
exchange differences on translation of employee beneﬁ t trust 23
balance at 31 december 2006 382
£’000
balance at 1 january 2005 2263
net proﬁ t for the year 8967
dividends paid 1656
other adjustments 75
exchange differences 20
balance at 1 january 2006 9519
net proﬁ t for the year 12520
dividends paid 6458
vested awards under the ltip 152
balance at 31 december 2006 15429
44 financial assets
cash and cash equivalents
these comprise cash held by the company and shortterm bank deposits with an original maturity of three months or less the carrying amount of these 
assets approximates their fair value
45 financial liabilities
trade and other payables
trade payables principally comprise amounts outstanding for trade purchases and ongoing costs the average credit period taken for trade purchases is 
18 days 2005 38 days
the directors consider that the carrying amount of trade payables approximates to their fair value
46 equity reserve
47 hedging and translation reserve
48 retained earnings 65 raymarine plc annual report 2006 
2006
£’000
2005
£’000
total recognised income and expense for the year 12368 8967
dividends paid 6458 1656
increase in share capital and premium 48 41
increase in equity reserves 704 155
other adjustments – 75
exchange differences 23 21
6685 7453
shareholders’ equity brought forward 13304 5851
shareholders’ equity carried forward 19989 13304
2006
£’000
2005
£’000
operating loss 606 606
adjustments for
 foreign exchange 23 57
operating cash ﬂ ows before movements in working capital 583 549
     increase in receivables 12 26
     decrease in payables 110 1914
cash used in operations 705 2489
interest received 395 10
interest paid – 244
foreign exchange 2 65
tax received – 26
net cash outﬂ ow from operating activities 308 2632
equity comprises share capital share premium hedging and translation reserve and retained earnings
50 notes to the cash ﬂ ow statement
cash and cash equivalents which are presented as a single class of assets on the face of the balance sheet comprise cash at bank and other short
term highly liquid investments with maturity of three months or less
49 statement of changes in equity raymarine plc annual report 2006 66
ifrs uk gaap
2006
£’000
2005
£’000
2004
£’000
2003
£’000
2002
£’000
results
revenue 136490 121851 106268 93616 94772
operating proﬁ t 16096 11077 11385 5967 9631
proﬁ t before tax 14091 8062 5257 990 1832
proﬁ t attributable to equity shareholders of raymarine plc 10337 8367 2492 306 794
assets employed
noncurrent assets 52713 49459 51156 45020 48373
current assets 40563 37761 42349 35425 34254
current liabilities 29761 25108 26106 18559 15795
noncurrent liabilities 40896 44151 56885 57261 62059
net assets 22619 17961 10514 4625 4773
financed by
equity 22619 17961 10514 4625 4773
key statistics
basic earnings per share 125p 101p 33p 04p 105p
diluted earnings per share 122p 100p 30p 04p 101p
the amounts disclosed before 2004 are stated on the basis of uk gaap because it is not practicable to restate amounts for periods prior to the date 
of transition to ifrs 
 
the company was incorporated on 22 august 2000 and the group began to trade on 29 january 2001
five year summary 67 raymarine plc annual report 2006 
shareholder information and professional advisers
report and accounts
copies of the 2006 report and accounts will be sent to shareholders and will be available after 18 may 2007 from the company secretary at the 
registered ofﬁ ce raymarine ﬁ nancial information is also available at our website wwwraymarinecom
registered ofﬁ ce
raymarine plc 
anchorage park 
robinson way 
portsmouth 
hampshire 
po3 5td
shareholder enquiries
lloyds tsb registrars maintain the company’s share register enquiries about standings should be addressed to the registrars at the causeway 
worthing west sussex bn99 6da telephone 0870 600 3970
annual general meeting
the agm will be held at the little ship club bell wharf lane upper thames street london ec4r 3tb on friday 18 may 2007 at 11am
professional advisers
financial adviser
hawkpoint partners limited
41 lothbury
london 
ec2r 7ae
broker
jpmorgan cazenove limited
20 moorgate
london
ec2r 6da
auditors
deloitte  touche llp
1 grosvenor square
mountbatten house
southampton
so15 2bz
principal bankers
lloyds tsb plc
25 gresham street
london 
ec2v 7hn raymarine plc annual report 2006 68 annual report and accounts
2006
algeria
antigua
argentina
austria
australia
bahamas
bahrain
belgium
bermuda
brazil
british virgin islands
bulgaria
canada
canary islands
chile
china
croatia
cyprus
denmark
ecquador
egypt
estonia
finland
france
germany
ghana
gibraltar
grand cayman islands
greece
hong kong
iceland
india
indonesia
iran
israel
italy
jamaica
japan
korea
kuwait
latvia
lebanon
malaysia
malta
mexico
morocco
netherlands
new caledonia
new zealand
norway
oman
panama
papua new guinea
poland
portugal
puerto rico
qatar
russia
singapore
slovenia
south africa
spain
sri lanka
st lucia
sweden
switzerland
taiwan
tahiti
thailand
trinidad
tunisia
turkey
turks and caicos islands
united arab emirates
united states of america
united kingdom  ireland
usvi st thomas
uruguay
venezuela
vietnam
zimbabwe
 
world leaders in electronics for the marine industry
raymarine plc anchorage park portsmouth hampshire po3 5td england
tel 44 023 9269 3611  fax 44 023 9269 4642
photography courtesy of
azimutbenetti spa cranchi glen gall gozzi hallberg rassy ab
joe mccarthy lagoon catamarans malö yachts nimbus boats ab safehaven marine 
saga boats sealine international limited shelley jory shutterstock 
spirit yachts and onne van der wal
2006 annu al repor t and a ccounts
 radar   navigation aids  instruments  autopilots  satellite tv  communications  fishfinders  software  systems 


Summary:
 financial highlights
1
  adjusted measures present the results after adding back restructuring costs of £78m 2005 £109m ﬂ otation and other nonrecurring costs of £nil 2005 £03m credit and amortisation of other intangible ﬁ xed assets of £07m 
2005 £07m
2
  ebita earnings before interest tax and amortisation comprises operating proﬁ t before amortisation of other intangible ﬁ xed assets of £07m 2005 £07m
3
  ebitda earnings before interest tax depreciation and amortisation comprises operating proﬁ t before amortisation of other intangible ﬁ xed assets of £07m 2005 £07m and depreciation of property plant and equipment of 
£31m 2005 £32m
4
  see note 12
actual 
2006
adjusted
1
 
2006
actual 
2005
adjusted
1
 
2005
revenue £m 1365 1365 1219 1219
gross proﬁ t £m 562 562 458 458
gross margin 412 412 376 376
ebita £m
2
168 246 118 224
ebita margin 123 180 97 184
ebitda £m
3
199 277 150 256
proﬁ t before tax 
£m
141 226 81 194
dividend p 875p 875p 70p 70p
earnings per share
4
basic p 125p 200p 101p 171p
diluted p 122p 196p 100p 169p
raymarine plc annual report 2006 1