mavinwood plc
annual report
and financial
statements 2007
w ansdyke
security ltd
mavinwood plc
locations
mavinwood plc head office
33 st james’s square london sw1y 4js
tel 020 7661 9378 – fax 020 7661 9400 – infomavinwoodplccom
ansa head office
ansa house aniseed park broadway business park chadderton
manchester ol9 9xa
tel 08456 880 880 – fax 08458 724 594 – infoansaltdcom
independent inspections limited 
6 fulwood park caxton road fulwood preston lancashire pr2 9nz
tel 01772 707 600 – fax 01772 700 067 – infoiigroupcouk
mono services limited 
aniseed park broadway business park chadderton manchester ol9 9xa
tel 0845 370 8999 – fax 0161 684 8305 – infomonoservicescouk
peter cox head office 
aniseed park broadway business park chadderton manchester ol9 9xa
tel 0845 222 0404 – fax 0161 684 8305 – headofficepetercoxcom
restore head office
the databank unit 2 redhill distribution centre salbrook road
redhill surrey rh1 5dy
tel 01293 446270 – fax 01293 446276 – inforestorecouk
wansdyke security head office
po box 179 corsham wiltshire sn13 9ya
tel 01225 810225 – fax 01255 810625 – saleswansdykecouk
document control services limited
10 stapledon road orton southgate peterborough pe2 6tb
tel 01733 366800 – fax 01733 366801  dcssapasolutionscouk
211679 mavinwood coverqxp  19308  1213  page 1 mavinwood plc
mavinwood plc
shareholder information
mavinwood is an aim quoted
company capitalised in excess of
£70m developing a uk based
support services business
the two areas that mavinwood is
specifically focussed on are
● emergency repair 
● document handling
financial calendar
annual general meeting held in april 
half year results september 
financial year end 31 december 
full year results mid march
company information
websites
wwwmavinwoodplccom – mavinwood plc corporate website providing
comprehensive group information investor relations information and links to its
subsidiaries’ websites which give full details of services provided
wwwansaltdcom – ansa website providing details about the company and
information regarding services offered
wwwindependentinspectionscouk – independent inspection’s website with
details of services and the company history
wwwmonoservicescouk – mono’s website providing details about the company
and their range of services offered
wwwpetercoxcom – peter cox’s website providing details of the company and
services offered
wwwrestorecouk – restore’s website providing details about the company and
services offered
wwwwansdykecouk – this comprehensive website provides company
information and a full range of services offered
wwwsapasolutionscom – document control service’s website providing details
about the company and services offered
wwwlondonstockexchangecomengbpricesnewsprices – the website for the
london stock exchange this will provide the latest stock process and company
announcements under the mavinwood stock code mvw 
211679 mavinwood coverqxp  19308  1213  page 2 ● another year of good progress and strong growth
● profit before tax up 35 to £50 million 2006 £37 million
● adjusted fully diluted earnings per share up 19
● successfully completed acquisitions of document control services limited
and peter cox limited
● integrations delivering results
● board strengthened
● clear strategy for growth
2007 2006
financial highlights £’000 £’000
● revenue 68153 42453 61
● adjusted profit before taxation
1 2
7289 5044 45
● profit before taxation
2
5047 3751 35
● basic earnings per share 056p 066p –15
● adjusted fully diluted earnings per share
1 2
096p 081p 19
1
before amortisation of intangible assets share based payments charge and notional interest on contingent
consideration
2
after integration costs of £03 million on acquiring peter cox limited
operational highlights
● march – acquisition of document control services
● september – acquisition of peter cox
● october – significant drainage contract renewed
● novemberdecember – integration of mono services and peter cox accelerates 
mavinwood plc annual report and financial statements 2007 1
mavinwood plc
highlights
211679pp01pp03qxp  18308  1835  page 1 1 highlights
2 contents and directors officers and advisers
3 directors
4 chairman’s statement
5 chief executive’s review
10 finance director’s review
12 directors’ report
15 corporate governance statement
17 remuneration report
22 statement of directors’ responsibilities
23 report of the auditor
24 financial statements
28 notes to the financial statements
71 company balance sheet
72 company accounting policies
73 notes to the company balance sheet
79 trading record
80 notice of annual general meeting
directors officers and advisers
philip reid chairman
bob guthrie nonexecutive
kevin mahoney chief executive
mike vincent finance director
steve watkins divisional director – emergency repair
secretary registered office
mike vincent lacon house
84 theobald’s road
london wc1x 8rw
nominated adviser  broker auditors
collins stewart baker tilly uk audit llp
88 wood street chartered accountants
london ec2v 7qr 2 bloomsbury street
london wc1b 3st
solicitors bankers
nabarro allied irish banks plc
lacon house st helen’s
84 theobald’s road 1 undershaft
london wc1x 8rw london ec3a 8ab
registrars
capita registrars fortis bank sanv uk branch
northern house the observatory
woodsome park chapel walks
fenay bridge manchester m2 1hl
huddersfield 
west y orkshire hd8 0la
mavinwood plc annual report and financial statements 2007 2
mavinwood plc
contents and directors officers and advisers
211679pp01pp03qxp  18308  1835  page 2 philip joseph reid aged 58 nonexecutive chairman
philip has been involved within the investment banking industry for the last 30 years during that time he
has held senior positions in stock broking venture capital asset management and corporate finance with
organisations that included the national research development corporation merrill lynch and
continental trust between 1989 and 1999 he helped found and grow custom house asset management
limited an independent adviser and administrator to third party investment funds in the dublin
international financial services centre more recently philip has acted as a consultant to insinger de
beaufort the anglodutch investment bank as well as holding several directorships with listed companies
philip is currently executive chairman of i financial services group plc
robert brown guthrie aged 65 nonexecutive director
robert joined insurance brokers willis faber  dumas ltd in 1958 after a period in the claims department
he transferred to the property department and was promoted to property manager at the bristol office in
1965 he returned to the london office in 1968 to work on major accounts and was appointed director of
uk retail in 1980 in 1987 he was promoted to chairman and chief executive of the london office robert
became chief executive of uk retail in 1991 the operation included willis national at the time the
largest firm of independent financial advisors in the uk he has an in depth knowledge of and excellent
relationships with the uk insurance industry
kevin david mahoney aged 57 chief executive
kevin has worked as managing director at a number of bluechip service companies and has experience of
steering businesses through periods of change he was managing director at caradon everest double
glazing from 1990 to 1995 and managing director of w h smith business supplies where he was a member
of the management team that sold that business for £140 million between 1996 and 1997 he worked at
british gas services as sales and marketing director kevin was also managing director of iss uk for four
years where he gained direct experience of businessto business outsourcing of facilities management
services most recently he was a member of the management team at electricity direct that sold that
business to centrica he floated mavinwood with mike vincent in november 2004 he is also nonexecutive
chairman of carlisle group limited an aim listed support services group
mike vincent aged 51 finance director
mike qualified as a chartered accountant with kpmg where he later specialised in mergers and acquisition
work between 1986 and 1995 he held senior financial positions at caradon plc facilitating the official
listing of the company in 1987 later becoming finance director of the european heating and plumbing
division and then chief financial officer of the caradon north american business as group finance director
of ascot plc a quoted company mike was involved in developing the group from one capitalised at £40
million to one in excess of £250 million he was later involved in a businesstobusiness start up in the
business service sector and he was the finance director of the business process outsourcing division of pwc
from 2001 to 2004
steven james watkins aged 41 divisional director – emergency repair
steve was the managing director of ansa between september 2001 and june 2006 when the company was
acquired by mavinwood he previously led the company’s mbo in june 2004 and has been responsible for
its strategic direction operational development and tactical focus prior to this he qualified as an electrical
engineer after which he established a specialist importexport business and later worked as a consultant to
several businesses helping them negotiate inter alia grants for capital expenditure the development of
software systems and the creation of a direct sales organisation
mavinwood plc annual report and financial statements 2007 3
mavinwood plc
directors
211679pp01pp03qxp  18308  1835  page 3 mavinwood plc annual report and financial statements 2007 4
mavinwood plc
strategy
our objective is to acquire and develop
specialist support services businesses that have
the potential for growth either organically or
in combination with other complementary
businesses we are very much focussed on the
emergency repair and document handling
sectors
results
revenue in 2007 was £68153000 2006
£42453000 and the profit before tax was
£5047000 2006 £3751000 the profit
before amortisation of intangible assets share
based payments charge and notional interest
on contingent consideration was £7289000
see chief executive’s review for analysis
2006 £5044000 the basic earnings per
ordinary share were 056p 2006 066p
however the measure we focus on as a board
is the fully diluted earnings per share before
amortisation of intangible assets share based
payments charge and notional interest on
contingent consideration at this level the
earnings per share for 2007 were 096p
compared to 081p in 2006 an increase of
19 at 31 december 2007 net debt of the
group amounted to £30917000 2006
£17649000
dividends
mavinwood intends to reinvest profits in the
business and the board do not recommend
declaring a dividend 2006 nil
board
there were several changes to the board
during 2007 bob guthrie was appointed as a
nonexecutive director on 13 june 2007 bob
was managing director of uk retail at the
international insurance broker willis group
limited for 15 years he has an indepth
knowledge of and excellent relationships with
the uk insurance industry
also on 13 june 2007 steve watkins at that
time a nonexecutive director agreed to
become an executive director steve became
the divisional director responsible for the
emergency repair business he was managing
director of ansa which specialises in drainage
surveys and repairs for four years to 2005
when the company was acquired by
mavinwood
john minton resigned on 26 october 2007 due
to ill health john developed restore with his
business partner prior to acquisition by
mavinwood and assisted the expansion of the
document handling division we all wish him
well with his early retirement ed marshall
managing director of document control
services has assumed john’s executive
responsibilities for our document handling
division comprising restore wansdyke and
document control services
people
the group employed 1262 people at 31
december 2007 2006 880 people i would
like to express my thanks to all of them for
their respective contributions in 2007 
outlook
the mavinwood group ended the year with
two well established divisions and a current
market capitalisation in excess of £70 million
integration benefits are coming through in
the two divisions as well as good underlying
organic growth after a few months of lower
than normal volumes at the end of 2007
particularly in drainage the emergency repair
business has started 2008 well with
instructions back to their early 2007 levels the
document handling industry continues to
grow strongly in 2008 and our business is well
placed within the industry 
we plan to add further complementary
businesses to divisions on a selective basis and
given the cash generative qualities of the
group there is scope over time to acquire
further businesses for cash
philip reid
chairman
12 march 2008
ansa drainage engineers
chairman’s
statement
211679pp04pp11qxp  18308  1909  page 4 mavinwood plc annual report and financial statements 2007 5
mavinwood plc
dcs scanning operator
profit before tax
the profit before tax for the year ended 
31 december 2007 was £5047000 
2006 £3751000 however the directors
believe that an adjusted measure of profit
before tax and earnings per share provides
shareholders with a more appropriate
representation of the underlying earnings
derived from the mavinwood group’s
business the items adjusted for in arriving at
that underlying level are as follows
2007 2006
£000 £000
emergency repair 7152 4832
document handling 3886 2459
central costs 1439 969
share based payments
charge 1892 1039
amortisation of
intangible fixed assets 288 96
––––––––– –––––––––
operating profit 7419 5187
net finance costs 2372 1436
––––––––– –––––––––
profit before tax 5047 3751
amortisation of
intangible assets 288 96 
share based payments
charge 1892 1039
notional interest on
contingent consideration 62 158
––––––––– –––––––––
adjusted profit before tax 7289 5044
––––––––– –––––––––
––––––––– –––––––––
the key performance indicators of the business
which the board regularly reviews are
2007 2006
£’000 £’000
adjusted profit before tax 7289 5044
operating cash flow 
generation after capital 
expenditure 3104 3564
the non financial indicators that are
monitored are customer satisfaction and
retention and staff turnover ratios
the mavinwood group comprises two
divisions emergency repair and document
handling
emergency repair
2007 2006
£’000 £’000
sales
ansa independent
inspections and mono
services 51965 34515
peter cox 4232 –
––––––––– –––––––––
total 56197 34515
––––––––– –––––––––
––––––––– –––––––––
ebita
ansa independent
inspections and mono
services 6853 4832
peter cox 299 –
––––––––– –––––––––
total 7152 4832
––––––––– –––––––––
––––––––– –––––––––
 independent inspections five and a half months
and mono services four months in 2006
 peter cox three months in 2007
 excluding share based payments charge
the significant increase in sales and profit in
this division is principally due to the fact that
independent inspections and mono services
were only included for part of 2006 compared
to a full twelve months in 2007 the 2007
figures include peter cox for three months  
this division includes three businesses which
serve principally the insured repair sector
approximately 80 of sales in 2007 were to
leading insurance companies and we also
service a range of housing associations and
commercial companies peter cox currently
carries out little insurance work and most of
its sales leads come from referrals or
household directories
all four businesses share a common business
process which is
• take the emergency call from the
customer or via an insurer
• arrange a survey to validate or repudiate
the claim and cost out the repair
• undertake the repair either by directly
employed labour or sub contractors
ansa specialises in drainage surveys and
repair independent inspections in flooring
surveys and restoration and mono services in
building fabric surveys and repairs often due
to water damage  
chief
executive’s
review
211679pp04pp11qxp  18308  1909  page 5 mavinwood plc annual report and financial statements 2007 6
mavinwood plc
ansa independent inspections and peter cox
are national businesses and mono services is a
regional business in the north west  
there is some customer overlap between the
businesses but one of our opportunities
moving forward is to offer all our services to a
wider range of customers
all these businesses operate to high service
standards examples of customer satisfaction
measures that are monitored on a continuous
basis are
• response times in terms of contacting a
policyholder after they report an insured
event
• courtesy of staff and customer satisfaction
• average cost per claim
there are integration benefits to flow
between the businesses a range of
integration projects are underway including
• optimising the it platform across all the
operations
• purchasing initiatives 
• optimising back office functions
• reviewing marketing opportunities and
widening the service offering
as well as good organic growth within the
division we will continue to look for bolt on
acquisitions which would further enhance our
offering
turning to the highlights within each
operation
ansa
after a strong start to the year ansa’s volume
of insurance instructions dropped overall
comparing 2007 with calendar 2006 the heavy
flooding over the summer reduced the number
of blockages we needed to attend this wet
weather was then followed by one of the
driest autumns on record this had the effect
of reducing root ingress into the drains
without the build up of water a number of
householders would not have been aware their
drains were blocked right at the year end
december saw a sharp drop in volumes this
pattern was a feature of the whole drainage
industry in the second half of the year 
ansa did benefit from an improved mix of
business with an increased proportion of larger
jobs in 2007 
during january and february 2008 volumes of
instructions received from the insurers have
returned back to the levels seen during the
first half of 2007 
ansa has extended its drainage services to a
wider range of customers in the commercial
sector this is still a relatively small part of the
ansa business but after extensive trialling in
2007 we have national coverage and are
growing a number of regional and national
accounts
operating profit at ansa has increased due to
an improved mix of business cost reductions
and productivity gains customers have
benefited from strong performance in claims
validation service delivery and cost control
from october we renewed a contract with one
leading insurer and this arrangement will run
for three years
in february 2007 ansa acquired esg limited
a small drainage contractor for £02 million
this acquisition has helped to increase the
proportion of repair work that is being carried
out by direct labour as opposed to sub
contractors
ansa also owned a small business offering
health and safety training revenue in the first
six months of 2007 was £617000 the trade
and assets of this operation were sold to the
training management team on 29 june 2007 at
net book value of £556000 
independent inspections
after suffering through low volumes in the first
quarter a series of cost reduction and profit
independent inspector with spotting kit
chief
executive’s
review
211679pp04pp11qxp  18308  1909  page 6 improvement initiatives were made the
summer floods were positive for independent
inspections as a large number of floor
coverings were destroyed or damaged new
income streams were developed later in the
year which has broadened the base of the
business  
mono services
mono services sales have increased by
approximately one fifth compared to 2006
due to winning new business helped by the
storm damage over the 20067 winter and
the summer floods some of mono services’
business has been redirected via an insurer’s
joint venture partner that has caused some
disruption to our operations this resulted in
transition and set up costs that reduced
margins during the year 
the acquisition of peter cox with its network
of branches and its integration with mono
services will enable us to build a national
building fabric solution for insurers 
peter cox
peter cox was acquired on 28 september
2007 it is a national provider of damp and
water proofing timber preservation and wall
stabilisation for property in the united
kingdom peter cox has a network of 17
branches in england and scotland and
employs 287 people its revenue is generated
from yellow pages and the commercial sector
with at present little or no insurance work
peter cox contributed revenue and operating
profit of £42 million and £03 million in its
first three months revenue was 6 up on
the comparable period and operating profit
significantly increased
we commenced the integration of the back
office systems of peter cox into the
emergency repair division very promptly after
completion of the acquisition this was partly
driven by the need to move out of the shared
services environment of the vendor group
the central functions of peter cox have been
relocated to the same offices as ansa and
mono services in oldham during the last
quarter of 2007 there were double running
costs of operating the two environments plus
investment in the it integration we estimate
the double running and integration costs
incurred by peter cox and mono services
were £03 million in aggregate
emergency repair summary
overall on a true like for like basis
comparing each business with the
comparable period of trading in 2006 sales
advanced by 10 and operating profit by
18 after a soft end to the year in volume
terms the division has bounced back in the
first quarter of 2008
we have built a division which competes
effectively as  a claims fulfilment business for
insurance companies we are integrating the
operations under one divisional management
team headed by steve watkins and
beginning to eliminate duplication in
function across the division the
implementation of one it platform across the
division will improve efficiency during 2008
and especially 2009 the integration of peter
cox with mono services will be a key
initiative for 2008
mavinwood plc annual report and financial statements 2007 7
mavinwood plc
mono services operations centre
chief
executive’s
review
211679pp04pp11qxp  18308  1909  page 7 mavinwood plc
document handling
2007 2006
£’000 £’000
sales
restore and wansdyke 8934 7938
document control
services 3022 –
––––––––– –––––––––
total 11956 7938
––––––––– –––––––––
––––––––– –––––––––
ebita
restore and wansdyke 2808 2459
document control
services 1078 –
––––––––– –––––––––
total 3886 2459
––––––––– –––––––––
––––––––– –––––––––
 wansdyke eleven months in 2006
 document control services nine months in 2007
 excluding share based payments charge
restore and wansdyke
restore and wansdyke serve a wide range of
customers including law firms corporates of
varying sizes financial services companies
councils and health trusts our customers are
mostly based in london and the south across
to bristol and south wales the majority of
sales are the storage and retrieval of archive
boxes but also individual files and other
material such as magnetic media and film 
scanning of documents on a selective basis is
also offered to clients shredding or pulping
of documents at the end of their useful lives is
currently outsourced although this would
form a logical product extension
the key customer satisfaction measures are
•  accuracy in retrieving items
•  of items retrieved in accordance with
terms of service such as same day or
next day delivery
we continue to integrate restore and
wansdyke and the companies share the same
management team approximately £01
million of integration costs have been charged
against wansdyke’s profits in 2007 the
restore operating system of bar coding is
being applied at wansdyke and the back
office functions are increasingly being
integrated total employees at wansdyke have
dropped from 75 at february 2006 to 66 at
31 december 2007 by natural wastage as
systems have become more automated
we operate a combination of freehold and
leasehold sites at wansdyke and restore
respectively due to the absence of rental
charges the return on sales at wansdyke is
higher than that at restore 
having repositioned the business in 2006
wansdyke’s sales grew strongly in 2007 by
10 we are filling up our underground
storage facilities near bath and in the first half
of 2007 acquired an adjoining underground
space of 16 acres for £05m once fitted out
this space will provide medium term
expansion for the business through to 2013
restore suffered from some disruption and
dealt with a high volume of archive box
intake but the flow through from this new
volume means it is well placed for 2008
document control services dcs
we acquired 100 of the share capital of
stapledon holdings limited the parent
company of dcs on 26 march 2007 dcs is a
quality national operation scanning and
indexing documents with high intellectual
property content the business has a blue chip
customer base including network rail
highways agency the crown estate oil and
gas companies city councils and property
companies dcs made a very strong
contribution in its first nine months
mavinwood plc annual report and financial statements 2007 8
restore storage facility
chief
executive’s
review
211679pp04pp11qxp  18308  1909  page 8 document handling summary
the market for the physical storage of
archives continues to grow well in excess of
gdp with especially strong growth in sectors
such as professional services overall on a
true like for like basis comparing each
business with a comparable period of trading
in 2006 sales advanced by 11 and
operating profit by 21 
the division is well placed to capitalise on its
pipeline of new business while maximising
the utilisation of its freehold space restore
and wansdyke are effectively being run as
one business and the appointment of ed
marshall from dcs as divisional chief
executive will help to bind all three
operations together
central costs
central costs have increased from £969000 to
£1439000 as we now operate two much
larger divisions compared to 2006 
2007 has been a busy and exciting year for
mavinwood and we anticipate yet another
year of building on our solid foundations in
2008
kevin mahoney
chief executive
12 march 2008
mavinwood plc annual report and financial statements 2007 9
mavinwood plc
wansdyke secure facility
chief
executive’s
review
211679pp04pp11qxp  18308  1909  page 9 results
the mavinwood group results comprise four
elements in 2007
• operating profit of dcs for the nine
months from april to december
• operating profit of peter cox for the
three months from october to december
• operating profit of ansa independent
inspections mono services restore
wansdyke and central costs for the
whole of calendar year 2007
• finance costs
revenue in the year ended 31 december 2007
was £68153000 2006 £42453000 ebita
before amortisation of intangible assets share
based payments charge and notional interest
on contingent consideration was £7289000
2006 £5044000 of the increase in ebita of
£2245000 £1377000 was generated by the
acquisitions of dcs and peter cox in 2007
interest
net interest payable amounted to £2372000
2006 £1436000 as we borrowed to fund the
acquisitions of mono services from september
2006 and dcs and peter cox in 2007  included
within the finance cost is £62000 representing
the notional interest on contingent
consideration due on the acquisitions of
independent inspections mono services and
dcs the discount rate applied in this
calculation was 79
profit before tax
profit before tax in the year ended 
31 december  2007 was £5047000 2006
£3751000
taxation
the amortisation of intangible assets the
notional interest on the contingent
consideration and the share based payments
charge do not attract any tax relief due to
these distortions the reported tax charge is
49 2006 32 the headline tax rate is
significantly higher in 2007 as we have assumed
that the share based payments charge will not
attract a tax deduction in addition we have
written off the deferred tax asset of £312000
relating to the share based payment charge in
2006 however the underlying tax rate during
2007 was 30 as a percentage of adjusted
profit before taxation 2006 30
earnings per share eps
basic eps in 2007 is 056p which compares with
066p in 2006 the reason for the reduction in
basic eps is the absence of tax relief assumed
on the share based payments charge if we are
able to assume tax relief of 30 the basic eps
would have been 076p basic eps adjusted for
the amortisation of intangible assets the share
based payments charge and the notional
interest on the contingent consideration was
111p 2006 090p 
assuming the exercise of all options and
awards under the ltip plus the conversion of
the convertible a shares at an average price in
2007 of 184p 2006 1393p the fully diluted
adjusted eps becomes 096p 2006 081p an
increase of 19
share issues
new equity was issued on two occasions in
2007
• 54 million shares were allotted on
26 march 2007 at 185p per share as part of
the consideration for dcs
• 45 million shares were allotted on 
16 october 2007 at 20p per share to the
vendors of mono services in settlement of
contingent consideration due the balance
of £01 million was settled in cash
acquisitions
external services group limited esg a
drainage sub contractor to ansa was
acquired on 2 february 2007 for cash of
£206000 
dcs was acquired for an initial sum of £13
million including £1 million in mavinwood
shares in addition debt of £48 million was
repaid contingent consideration of up to £2
million is also payable in cash linked to the
growth in ebita above £093 million for the
mavinwood plc annual report and financial statements 2007 10
mavinwood plc
finance
director’s
review
peter cox surveyors
211679pp04pp11qxp  18308  1909  page 10 mavinwood plc annual report and financial statements 2007 11
mavinwood plc
year ending 30 june 2008 the full £2m is payable
assuming ebita reaches £123 million
peter cox limited was acquired for an initial sum of £6
million contingent consideration of £1050000 was also
paid on 21 february 2008 linked to the achievement of
ebita for the year ended 30 november 2007
balance sheet
net assets increased to £50613000 in the year reflecting
the profit before tax for the year of £5047000 plus the
share issues to part fund the acquisition of dcs and the
contingent consideration for mono services intangible
assets relating to the acquisitions at 31 december 2007
were £70634000 2006 £58823000 
property plant and equipment totalled £12220000 2006
£10826000 principally comprising the freehold
underground storage facilities at wansdyke but also
computer systems storage racking and vehicles 
operating working capital excluding cash amounted to a
net £7967000 at 31 december 2007 net debt at 31
december 2007 totalled £30917000 2006 £17649000
after deferred financing costs of £357000 2006
£310000  interest cover in the year was 41 times
due to independent inspections’ slow start in the first half
of 2007 the directors consider it unlikely that the business
will make the hurdles to trigger earn out payments to the
vendor in respect of 2007 and 2008 so these amounts of
£4m have been written back to opening intangible assets 
cash flow
the net cash inflow from operating activities before
investing and financing activities was £1430000 2006
£2793000 this inflow is after taking account of an
outflow of £46m on working capital  we expect an
outflow as the business expands and would have expected
this to be around £21 million however working capital
increased due to a number of other factors
• £11 million due to the redirection of work for a
large insurer via a joint venture management
company and other changes in mono services’
business model
• £05 million due to reducing the number of sub
contractors in ansa and bringing more work in house
the above factors are permanent changes in the size of our
working capital in addition we have suffered from other
slippages in our document handling business and in
emergency repair as some of our larger customers took
longer to settle during 2007 a large portion of this amount
of £09 million has been recouped since the year end
capital expenditure totalled £2683000 2006
£1168000 two major projects accounted for £1 million
of the expenditure £05 million was spent acquiring
further underground storage at wansdyke and a similar
amount was spent on the first phase of the major it
project in emergency repair this project integrates the
finance and operating systems of peter cox and mono
and helps build the it platform for the entire emergency
repair division
risk management
the significant financial risks the group faces have been
considered and policies have been implemented to best
deal with each risk the three most significant risks are
considered to be liquidity risk finance cost risk and
customer relationship risk the group is wholly based in
the united kingdom so the direct exposure to exchange
risk is considered to be small
liquidity risk
the group has a £28 million committed term loan which
was increased at the time of the peter cox acquisition in
2007 and expires in 2011 in addition the group has a £9
million revolving credit facility and small finance lease
arrangements for a number of specific assets 
the year end net debt was £309 million which consisted
of £323 million of interest bearing loans and borrowings
less £11 million of cash and short term deposits and
£03 million of deferred financing costs 
the facility has two main financial covenants an interest
cover covenant and an ebitda to net debt covenant the
group remained within these covenant tests during 2007
finance cost risk
the group pays finance costs on its bank facilities and
finance leases the bank facilities finance cost is a variable
cost linked to libor plus a margin of 225 the margin
will reduce as the net debt to ebitda ratio reduces an
interest rate cap at 64 on principal of £10 million was
taken out in march 2007 for 3 years the cap cost £23000
and at 31 december 2007 £10000 is recognised as an
asset on the balance sheet the average finance cost for
the group in 2007 was 78
customer relationships
the group has commercial relationships with a number of
large customers particularly insurance companies the loss
of those relationships could have a material impact on the
group’s profitability and cash flows this risk is managed
through good customer service backed up by regular
reviews with key management at these clients
international financial reporting standards ifrs
we have adopted ifrs with effect from 1 january 2006
comparative figures for the year ended 31 december 2006
have been presented the principal differences relate to
the write back of goodwill amortisation in 2006 and
providing full deferred taxation on the property at
wansdyke and other intangibles
mike vincent
finance director
12 march 2008
211679pp04pp11qxp  18308  2021  page 11 the directors submit their report and the financial statements of mavinwood plc for the year ended
31 december 2007
mavinwood plc is a public limited company incorporated and domiciled in england and quoted on aim
results
the profit before tax for the year ended 31 december 2007 was £5047000 2006 £3751000
dividends
the directors do not recommend a dividend for the year 2006 £nil
principal activities
the principal activities of the group during the year were that of emergency repair and document
handling the principal changes in the group during the year were the acquisitions of document control
services in the document handling business and peter cox in the emergency repair business
business review and future developments
this is dealt with in the chairman’s statement and in the chief executive’s review
directors
the following directors have held office during the year
philip reid chairman
bob guthrie nonexecutive appointed 13 june 2007
kevin mahoney chief executive
mike vincent finance director
john minton resigned 26 october 2007
steve watkins divisional director – emergency repair
information on directors’ remuneration share options longterm incentive plans pension contributions and
benefits is set out in the remuneration report
share capital
full details of the authorised and issued share capital of the company including movements in the year are
set out in note 22 to the financial statements
substantial shareholdings
at 12 march 2008 the company had been notified of the following interests amounting to 3 or more of
the company’s issued share capital
number of percentage
01p ordinary of issued
shares share capital
geraldton services inc 262496253 568
cazenove capital management limited 74601100 161
mavinwood plc annual report and financial statements 2007 12
mavinwood plc
directors’ report
211679pp12pp23qxp  18308  1837  page 12 employees
the group’s people are its most important asset our policy is to employ the best people irrespective of race
gender nationality disability or sexual orientation consultation with employees or their representatives
occurs at all levels with the aim of ensuring their views are taken into account when decisions are made that
are likely to affect their interests
disabled employees
applications for employment by disabled persons are given full and fair consideration for all vacancies
having regard to their particular aptitudes and abilities in the event of an employee becoming disabled
every effort is made to retain them in order that their employment with the group may continue it is the
policy of the group that training career development and promotion opportunities should be available to
all employees
environmental policy
maintaining and improving the quality of the environment in which we live is an important concern for the
company our staff customers suppliers subcontractors and communities in which we operate we have
adopted high standards of environmental practices and aim to minimise our impact on the environment
wherever this is practical in particular we comply with and endeavour to exceed the requirements of all
laws and regulations relating to the environment
health and safety
the company recognises the importance of maintaining high standards of health and safety for everyone
working within our business and also for anyone who may be affected by our business health and safety is
a particular concern to our customers consequently each of our business segments has appointed health
and safety officers who report to their respective managing directors
the group’s operational report to the board on a monthly basis includes a section on all health and safety
matters
financial risk management
information in respect of the financial risk management objectives and policies of the group including the
policy for hedging each major type of forecasted transaction for which hedge accounting is used and the
exposure of the group to market risk credit risk liquidity risk and cash flow risk is contained in note 3
creditor payment policy
the group policy states that the relationship between the group and its suppliers should be commercially
viable mutually beneficial and based upon trust and respect it is group policy to pay suppliers in
accordance with terms that have been mutually agreed in advance the creditor days were 56 2006 52 days
political and charitable donations
donations made by the group for charitable purposes amounted to £9500 2006 £5120 the group does
not make political donations
post balance sheet events
post balance sheet events are described in note 33 to the financial statements
mavinwood plc annual report and financial statements 2007 13
mavinwood plc
directors’ report
211679pp12pp23qxp  18308  1837  page 13 auditors
the directors having been notified of the cessation of the partnership known as baker tilly resolved that
baker tilly uk audit llp be appointed successor auditor with effect from 1 april 2007 in accordance with
the provisions of the companies act 1989 s265 baker tilly uk audit llp has indicated its willingness
to continue in office
statement as to disclosure of information to auditors
the directors in office on 12 march 2008 have confirmed that as far as they are aware there is no relevant
audit information of which the auditors are unaware each of the directors have confirmed that they have
taken all steps that they ought to have taken as directors in order to make themselves aware of any relevant
audit information and to establish that it has been communicated to the auditor
annual general meeting
the notice of the annual general meeting to be held on 30 april 2008 is set out on pages 80 to 85
by order of the board
mike vincent 
company secretary 12 march 2008
mavinwood plc annual report and financial statements 2007 14
mavinwood plc
directors’ report
211679pp12pp23qxp  18308  1837  page 14 the policy of the board is to manage the affairs of the company having regard to the terms of the
combined code on corporate governance the directors support the principles underlying the
requirements insofar as is appropriate for a company of the size of mavinwood plc
the board of directors
the group is led and controlled by a board comprising three executive directors and two nonexecutive
directors
board meetings are held on a regular basis and effectively no decision of any consequence is made other
than by the directors all directors participate in the key areas of decisionmaking including the
appointment of new directors although there is no separate nomination committee due to the current size
of the board
the board receives timely information on all material aspects about the group to enable it to discharge its
duties
all directors submit themselves for reelection at the annual general meeting at regular intervals
the following were directors during the year
number of
number of audit remuneration
number of board committee committee 
meetings attended meetings attended meetings 
during the year during the year attended during
ended ended the year ended
31 december 2007 31 december 2007 31 december 2007
total 12 total 3 total 3
executive directors
kevin mahoney 12 3 3
mike vincent 12 3 3
john minton resigned 26 october 2007 8 1 2
steve watkins appointed executive 13 june 2007 3 – 1
nonexecutive directors
philip reid 9 3 3
bob guthrie 4 2 1
steve watkins 6 2 2
directors’ remuneration
the company has an established remuneration committee
details of the remuneration of each director are set out in the remuneration report
accountability and audit
the company has established an audit committee the chairman and nonexecutive director are
responsible for reviewing the scope and results of the audit its cost effectiveness and the independence and
objectivity of the auditors
relations with shareholders
the chief executive and the finance director are the company’s principal spokespeople with investors
fund managers the press and other interested parties at the annual general meeting investors are given
the opportunity to question the entire board
mavinwood plc annual report and financial statements 2007 15
mavinwood plc
corporate governance statement
211679pp12pp23qxp  18308  1837  page 15 internal control
the board acknowledges its responsibility for establishing and monitoring the group’s systems of internal
control although no system of internal control can provide absolute assurance against material
misstatement or loss the group’s systems are designed to provide the directors with reasonable assurance
that problems are identified on a timely basis and dealt with appropriately
the key procedures that have been established and which are designed to provide effective control are as
follows
management structure – the board meets regularly to discuss all issues affecting the group
investment appraisal – the group has a clearly defined framework for investment appraisal and approval is
required by the board where appropriate
the board regularly reviews the effectiveness of the systems of internal control and considers the major
business risks and the control environment no significant control deficiencies have come to light during the
year and no weakness in internal financial control has resulted in any material losses contingencies or
uncertainties which would require disclosure as recommended by the guidance for directors on reporting on
internal financial control
the board considers that in light of the control environment described above there is no current
requirement for a separate internal audit function the board will continue to review the need to put in place
an internal audit function
going concern
having made appropriate enquiries and having examined the major areas which could affect the group’s
financial position the directors are satisfied that the group has adequate resources to continue in operation
for the foreseeable future for this reason they consider it appropriate to adopt the going concern basis in
preparing the financial statements
mavinwood plc annual report and financial statements 2007 16
mavinwood plc
corporate governance statement
211679pp12pp23qxp  18308  1837  page 16 remuneration committee
the company has an established remuneration committee consisting of the chairman and the non
executive director
the chairman and nonexecutive director are responsible for the consideration and approval of the terms
of service remuneration bonuses share options and other benefits of the other directors all decisions
made are after giving due consideration to the size and nature of the business and the importance of
retaining and motivating management
the committee will meet at least once a year and at other times as appropriate
directors’ contracts and letters of appointment
the company’s policy on directors’ service contracts is that in line with the best practice provisions of the
combined code they are to be terminable by the company on one year’s notice
the nonexecutive directors do not have service contracts but have letters of appointment for an initial
period of one year which may be renewed by mutual agreement
executive directors date of contract notice period
kevin mahoney 1 november 2004 12 months
mike vincent 1 november 2004 12 months
john minton resigned 26 october 2007 11 may 2005 12 months
steve watkins 13 june 2007 12 months
nonexecutive directors date of letter notice period
philip reid 14 april 2005 3 months
bob guthrie 13 june 2007 3 months
 john minton was employed and paid by restore limited and his service contract was with that company
directors’ emoluments
the aggregate emoluments of the directors of the company who served during the year were
salary total total
and 2007 ex total 2006 ex total 
£’000 fees benefits pension pension 2007 pension pension 2006
executive directors
kevin mahoney 288 10 298 20 318 237 12 249 
mike vincent 285 11 296 – 296 230 – 230 
john minton 145 2 147 – 147 111 – 111 
steve watkins 81 – 81 – 81 – – –
nonexecutive 
directors
philip reid 40 – 40 – 40 25 – 25 
bob guthrie 14 – 14 – 14 – – –
steve watkins 10 – 10 – 10 20 – 20 
––––––––– ––––––––– ––––––––– ––––––––– ––––– –––––––– ––––––––– ––––––
863 23 886 20906 623 12 635 
––––––––– ––––––––– ––––––––– ––––––––– ––––– –––––––– ––––––––– ––––––
––––––––– ––––––––– ––––––––– ––––––––– ––––– –––––––– ––––––––– ––––––
all pension contributions in respect of mike vincent have been taken as additional salary for kevin
mahoney £17730 2006 £3000 were taken as additional salary the remainder being paid to a pensions
provider consultancy fees of £103200 were paid to steve watkins while he was a nonexecutive director
mavinwood plc annual report and financial statements 2007 17
mavinwood plc
remuneration report 
211679pp12pp23qxp  18308  1837  page 17 directors’ interests in shares and options
directors’ beneficial interests in the shares of the company including family interests as at 31 december
2007 were as follows
number of 01p number of 01p number of 01p number of 01p
convertible ‘ a ’ convertible ‘ a ’ ordinary ordinary 
shares shares shares shares
31 december 2007 31 december 2006 31 december 2007 31 december 2006
philip reid – – – –
bob guthrie – na 100000 na
kevin mahoney 30000000 30000000 2950000 2950000
mike vincent 20000000 20000000 1160000 1160000
john minton na – na 4802658
steve watkins – – 9599200 12500000
as at 12 march 2008 there has been no change in any of the above holdings
the directors believe that the success of the company will depend to a high degree on the future
performance of the management team the company has established incentive arrangements which will
reward the directors when shareholder value is created thereby aligning the interests of management
directly with those of the shareholders
two directors hold convertible a shares the a shares become convertible into a number of ordinary shares
with an aggregate value equivalent to 15 of the increase in shareholder value shareholder value for this
purpose is broadly defined as the difference between the market capitalisation of the company at the
relevant conversion date and the aggregate value of all ordinary shares issued up to the date of conversion
subject to certain provisions contained in the articles the a shares become convertible at the election of
each holder of the a shares after 5 november 2007 or on a takeover of the company into ordinary shares
the a shares cease to be convertible from the fifth anniversary of admission that is 5 november 2009
the a shares are nonvoting and are entitled to dividends as if they had been converted on the relevant
record date
mavinwood share option scheme
directors’ interests in share options of the company as at 31 december 2007 and 31 december 2006 were
as follows
number of
ordinary date from
shares of exercise which expiry
date of grant 01p each price exercisable date
kevin mahoney 30 june 2005 1613250 840p 30 june 2008 29 june 2015
mike vincent 30 june 2005 1374250 840p 30 june 2008 29 june 2015
––––––––––––
2987500
––––––––––––
––––––––––––
the closing price for mavinwood shares at 31 december 2007 was 1675 pence during the year the market
price of the company’s ordinary shares ranged between 15 pence and 225 pence the low was on 2 january
2007 and the high was on 25 july 2007 in addition to the share options granted to the directors the
following have been granted to other employees within the group lapsed options have arisen due to leavers
from group companies principally ansa training
mavinwood plc annual report and financial statements 2007 18
mavinwood plc
remuneration report 
211679pp12pp23qxp  18308  1837  page 18 employee share options
number of
ordinary shares
of 01p each date from
31 december exercise which expiry
date of grant granted lapsed 2007 price exercisable date
17 march 2006 8777063 1487922 7289141 1454p 17 march 2009 16 march 2016
16 october 2006 7124113 1271546 5852567 1500p 16 october 2009 15 october 2016
25 april 2007 5960920 – 5960920 1867p 25 april 2010 24 april 2017
–––––––––––– –––––––––––– ––––––––––––
21862096 2759468 19102628
–––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– ––––––––––––
the company’s remuneration committee is responsible for administering the share option scheme the
rules of the scheme are the same for both directors and employees the share options granted will subject
to the performance targets being met vest in three tranches on the date of the announcement of the final
results for the company for each of the three years ending after the date of grant the full vesting of each
tranche of the share options granted will be subject to the company achieving annually a performance
target of a growth of earnings per share eps of 10 percent or more over the adjusted eps for the previous
year in the event that the adjusted eps growth in each year is less than 10 then the proportion of options
that will vest shall be adjusted as follows
percentage of ordinary shares
growth in eps in previous financial year in annual tranche which vest
no less than 6 but less than 7 20
no less than 7 but less than 8 40
no less than 8 but less than 9 60
no less than 9 but less than 10 80
any shortfall in the percentage of ordinary shares under option vesting up to a maximum shortfall of 40
will vest in the following year if the performance test is exceeded by an equivalent amount in that year
the base adjusted eps for 2004 against which the company’s eps growth will be measured has been
determined by the remuneration committee the base adjusted eps for 2004 of 036p was calculated on a
proforma basis as though restore had been acquired on 1 january 2004 with the debt and equity structure
in place which was used to acquire the business in may 2005 the adjusted fully diluted eps for 2005 2006
and 2007 has been 053p 081p and 096p respectively
the total share options in issue of 22090128 shares represents 48 of the issued share capital of
462417811 shares
mavinwood plc annual report and financial statements 2007 19
mavinwood plc
remuneration report 
211679pp12pp23qxp  18308  1837  page 19 mavinwood longterm incentive plan ltip
directors’ interests in the ltip as at 31 december 2007 were as follows
as at granted lapsed as at
31 december during during 31 december eps
2006 the year the year 2007 tsr growth
number number number number issue date pricep 
philip reid 746875 – – 746875 30 june 2005 840 120
2000000 – – 2000000 23 march 2006 1475 120
253125 – – 253125 16 october 2006 1600 160
– 500000 – 500000 25 april 2007 1850 160
––––––––––– –––––––––– –––––––––– ––––––––––––––
3000000 500000 – 3500000
––––––––––– –––––––––– –––––––––– ––––––––––––––
kevin mahoney 2823188 – – 2823188 30 june 2005 840 120
9264627 – – 9264627 23 march 2006 1475 120
5597185 – – 5597185 16 october 2006 1600 160
– 2000000 – 2000000 25 april 2007 1850 160
––––––––––– –––––––––– –––––––––– ––––––––––––––
17685000 2000000 – 19685000
––––––––––– –––––––––– –––––––––– ––––––––––––––
mike vincent 2404937 – – 2404937 30 june 2005 840 120
7892091 – – 7892091 23 march 2006 1475 120
4767972 – – 4767972 16 october 2006 1600 160
– 3000000 – 3000000 25 april 2007 1850 160
––––––––––– –––––––––– –––––––––– ––––––––––––––
15065000 3000000 – 18065000
––––––––––– –––––––––– –––––––––– ––––––––––––––
steve watkins 500000 – – 500000 23 march 2006 1475 120
500000 – – 500000 16 october 2006 1600 160
– 1500000 – 1500000 25 april 2007 1850 160
––––––––––– –––––––––– –––––––––– ––––––––––––––
1000000 1500000 – 2500000
––––––––––– –––––––––– –––––––––– ––––––––––––––
john minton 1000000 – 480000 520000 23 march 2006 1475 120
500000 – 500000 – 16 october 2006 1600 160
– 500000 500000 – 25 april 2007 1850 160
––––––––––– –––––––––– –––––––––– ––––––––––––––
1500000 500000 1480000 520000
––––––––––– –––––––––– –––––––––– ––––––––––––––
the company’s remuneration committee is responsible for administering the ltip 
awards under the ltip comprise options to acquire ordinary shares at nominal value which will be subject
to performance targets a participant granted an option under the ltip will be required to make a payment
of 01p per ordinary share on exercise of the option awards are first exercisable 5 years after issue subject
to attainment of performance targets
the performance test to be applied to all awards made to the directors comprises two components the
ordinary shares under the awards will vest in three equal tranches subject to satisfaction of either of two
tests each year in respect of each tranche the first test being of growth in earnings per share “eps” and
the second of total shareholder return “tsr”
the first test is that the average annual compounded growth in the company’s eps exceeds the performance
target percentage established at inception for the three periods each beginning 1 january and ending on
mavinwood plc annual report and financial statements 2007 20
mavinwood plc
remuneration report 
211679pp12pp23qxp  18308  1837  page 20 31 december three years four years and five years later respectively for the initial grant of awards the base
adjusted eps for 2004 against which the company’s eps growth will be measured has been determined by
the remuneration committee at 036p the adjusted fully diluted eps for 2005 2006 and 2007 has been
053p 081p and 096p respectively
the second performance test is based on the company’s tsr that is share price growth plus reinvested
dividends measured over the specified periods commencing on issue date as shown in the table below
years following award tsr
3 70
4 85
5 100
in relation to the awards made on 25 april 2007 if prior to 25 april 2012 an offer to acquire the entire issued
share capital of the company whether made by an offer to which the city code on takeovers and mergers
applies or by a scheme of arrangement under the companies act 1985 or the companies act 2006 as
applicable has become unconditional in all respects exercise of the award to the extent not already vested
shall be subject to the additional condition that such offer values the company at 25 pence or more per
ordinary share
tsr shall be measured using the average share price over 20 consecutive dealing days immediately prior to
the relevant anniversary following award and comparing this with the price per share at issue
in the event that neither of the relevant performance targets is met in relation to each tranche of the ltip
award that tranche of the award shall lapse
the total awards under the ltip of 44310000 shares represents 96 of the issued share capital of
462417811 shares
option scheme limits
the number of ordinary shares issued or issuable pursuant to options granted under the share option
scheme when aggregated with the number of ordinary shares issued or issuable pursuant to all rights
granted under the share option scheme within the previous period of ten years may not exceed 5 of the
company’s issued ordinary share capital at the date of grant the comparable limit under the ltip is 10
an individual’s overall participation under the share option scheme and ltip is limited so that the
aggregate market value at the date of grant of the ordinary shares over which awards have been granted to
him cannot exceed 3 and 5 respectively of the company’s issued ordinary share capital at the date of
grant
no share options or awards made under the ltip were exercised or waived in the year
by order of the board
philip reid
chairman of the remuneration committee 12 march 2008
mavinwood plc annual report and financial statements 2007 21
mavinwood plc
remuneration report 
211679pp12pp23qxp  18308  1837  page 21 the directors are responsible for preparing the annual report and financial statements in accordance with
applicable law and regulations
uk company law requires the directors to prepare group and company financial statements for each
financial year under that law the directors are required to prepare group financial statements in
accordance with international financial reporting standards ‘ifrs’ as adopted by the european union
and have elected to prepare the company financial statements in accordance with united kingdom
generally accepted accounting practice united kingdom accounting standards and applicable law
the group financial statements are required by law and ifrs as adopted by the european union to present
fairly the financial position and performance of the group the companies act 1985 provides in relation to
such financial statements that reference in the relevant part of that act to financial statements giving a true
and fair view are references to their achieving a fair presentation
the company financial statements are required by law to give a true and fair view of the state of affairs of
the company
in preparing each of the group and company financial statements the directors are required to
a select suitable accounting policies and then apply them consistently
b make judgements and estimates that are reasonable and prudent
c for the group financial statements state whether they have been prepared in accordance with ifrss
adopted by the european union and for the company financial statements state whether applicable
uk accounting standards have been followed subject to any material departures disclosed and
explained in the company financial statements
d prepare the financial statements on the going concern basis unless it is inappropriate to presume that
the group and the company will continue in business
the directors are responsible for keeping proper accounting records which disclose with reasonable accuracy
at any time the financial position of the company and to enable them to ensure that the financial statements
comply with the requirements of the companies act 1985 they are also responsible for safeguarding the
assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and
other irregularities
the directors are also responsible for the maintenance and integrity of the corporate and financial
information included on the company’s website
legislation in the united kingdom governing the preparation and dissemination of financial statements
may differ from legislation in other jurisdictions
mavinwood plc annual report and financial statements 2007 22
mavinwood plc
statement of directors’ responsibilities 
211679pp12pp23qxp  18308  1837  page 22 independent auditor’s report to the members of ma vinwood plc
we have audited the group and company financial statements on pages 24 to 78
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 auditor’s report and for no other purpose to the fullest extent permitted by law we do
not accept or assume responsibility to anyone other than the company and the company’s 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 group financial statements in accordance with
applicable law and international financial reporting standards ifrs as adopted by the european union and for
preparing the parent company financial statements in accordance with applicable law and united kingdom accounting
standards united kingdom generally accepted accounting practice are set out in the statement of directors’
responsibilities
our responsibility is to audit the financial 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 financial statements give a true and fair view and whether the financial
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 financial statements
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 specified by law regarding
directors’ remuneration and other transactions is not disclosed
we read other information contained in the annual report and consider whether it is consistent with the audited
financial statements the other information comprises only the directors’ report chairman’s statement the chief
executive’s review the finance director’s review and the corporate governance statement we consider the
implications for our report if we become aware of any apparent misstatements or material inconsistencies with the
financial statements our responsibilities do not extend to any other information
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 financial statements it also includes an assessment of the significant estimates and judgements made
by the directors in the preparation of the financial statements and of whether the accounting policies are appropriate
to the group’s and company’s circumstances consistently applied and adequately disclosed
we planned and performed our audit so as to obtain all the information and explanations which we considered
necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are
free from material misstatement whether caused by fraud or other irregularity or error in forming our opinion we also
evaluated the overall adequacy of the presentation of information in the financial statements
opinion
in our opinion
● the group financial statements give a true and fair view in accordance with ifrs as adopted by the european
union of the state of the group’s affairs as at 31 december 2007 and of its profit for the year then ended
● the company financial statements give a true and fair view in accordance with united kingdom generally
accepted accounting practice of the state of the company’s affairs as at 31 december 2007
● the financial statements have been properly prepared in accordance with the companies act 1985 and
● the information given in the directors’ report is consistent with the financial statements
baker till y uk audit llp 
registered auditor
chartered accountants
2 bloomsbury street
london wc1b 3st 12 march 2008
mavinwood plc annual report and financial statements 2007 23
211679pp12pp23qxp  18308  1837  page 23 year ended year ended
31 december 31 december
note 2007 2006
£’000 £’000
continuing operations
revenue 4 68153 42453 
cost of sales 41771 26200
–––––––––––– ––––––––––––
gross profit 26382 16253 
administrative expenses 18963 11066
–––––––––––– ––––––––––––
operating profit 5 7419 5187 
finance income 6 106 82 
finance costs 7 2478 1518
–––––––––––– ––––––––––––
profit before tax 5047 3751 
income tax expense 8 2463 1195
–––––––––––– ––––––––––––
profit for the year 2584 2556
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
attributable to
equity holders of the company 2584 2556 
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
earnings per share pence
basic 9 056p 066p
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
diluted 9 048p 059p
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
mavinwood plc annual report and financial statements 2007 24
mavinwood plc
consolidated income statement
for the year ended 31 december 2007
211679pp24pp27qxp  18308  1838  page 24 share
based
share share payments retained total
capital premium reserve earnings equity
£’000 £’000 £’000 £’000 £’000
balance at 1 january 2006 383 26459 85 16 26943
profit for the year note 25 – – – 2556 2556
–––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
383 26459 85 2572 29499
issue of shares during the financial year 120 14255 – – 14375
issue costs note 23 – 654 – – 654
share based payments charge note 24 – – 1017 – 1017
–––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
balance at 31 december 2006 503 40060 1102 2572 44237
–––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
–––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
balance at 1 january 2007 503 40060 1102 2572 44237 
profit for the year note 25 – – – 2584 2584
–––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
503 40060 1102 5156 46821
issue of shares on acquisition of dcs note 10 5 995 – – 1000
contingent consideration in respect of mono 
services note 20 4 896 – – 900
share based payments charge note 24 – – 1892 – 1892
–––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
balance at 31 december 2007 512 41951 2994 5156 50613
–––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
–––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
mavinwood plc annual report and financial statements 2007 25
mavinwood plc
consolidated statement of changes in shareholders equity
for the year ended 31 december 2007
211679pp24pp27qxp  18308  1838  page 25 31 december 31 december
note 2007 2006
£’000 £’000
assets
noncurrent assets
intangible assets 11 70634 58823 
property plant and equipment 12 12220 10826 
investments 13 556 –
deferred tax asset 21 179 8
–––––––––––– ––––––––––––
83589 69657 
–––––––––––– ––––––––––––
current assets
inventories 14 381 311 
trade and other receivables 15 23140 13369 
cash and cash equivalents 15 1108 1850 
–––––––––––– ––––––––––––
24629 15530 
–––––––––––– ––––––––––––
total assets 108218 85187 
–––––––––––– ––––––––––––
liabilities
current liabilities
trade and other payables 16 15554 11114
bank loans and overdrafts 17 4337 3600
other financial liabilities 18 45 109
current tax liabilities 1229 1969
provisions 20 3698 500
–––––––––––– ––––––––––––
24863 17292
–––––––––––– ––––––––––––
net current liabilities 234 1762 
–––––––––––– ––––––––––––
noncurrent liabilities
bank loans and overdrafts 17 27643 15790
deferred tax liability 21 5099 3985
provisions 20 – 3883
–––––––––––– ––––––––––––
32742 23658
–––––––––––– ––––––––––––
net assets 50613 44237 
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
equity
share capital 22 512 503 
share premium account 23 41951 40060 
share based payments reserve 24 2994 1102 
retained earnings 25 5156 2572 
–––––––––––– ––––––––––––
attributable to equity holders
of the company 50613 44237 
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
these financial statements were approved by the board of directors and authorised for issue on 12 march
2008 and were signed on its behalf by
philip reid mike vincent
director director
mavinwood plc annual report and financial statements 2007 26
mavinwood plc
consolidated balance sheet
at 31 december 2007
211679pp24pp27qxp  18308  1838  page 26 year ended year ended
31 december 31 december
note 2007 2006
£’000 £’000
cash inflow from operating activities
continuing operations
profit for the year 2584 2556
depreciation of property plant and equipment 843 833
amortisation of intangible assets 288 96
finance costs recognised in profit and loss 2372 1436
income tax expense recognised in profit and loss 2463 1195
share based payments charge 1892 1039
gain on sale or disposal of property plant and equipment 33 54
movements in working capital
change in inventories 12 59
change in trade and other receivables 5945 2570
change in trade and other payables 1311 142
–––––––––––– ––––––––––––
cash generated from operating activities 5787 4732
finance costs 1681 1037
investment income 106 82
income taxes paid 2782 984
–––––––––––– ––––––––––––
net cash generated from operating activities 1430 2793
–––––––––––– ––––––––––––
cash flows from investing activities
proceeds on disposal of property plant and equipment 101 842
purchases of property plant and equipment 2287 1089
purchases of applications software 396 79
acquisition of subsidiaries and costs net of cash acquired 10 6988 24432
contingent consideration 106 1075
–––––––––––– ––––––––––––
net cash flows used in investing activities 9676 25833
–––––––––––– ––––––––––––
cash flows from financing activities
repayment of borrowings 2000 3500
repayment of indebtedness 4794 881
new bank loans raised 14300 18043
deferred financing costs 192 268
increase in bank overdrafts 337 –
net proceeds from issue of shares – 11346
finance lease principal repayments 147 687
–––––––––––– ––––––––––––
net cash generated in financing activities 7504 24053
–––––––––––– ––––––––––––
net decreaseincrease in cash and cash
equivalents 7421013
cash and cash equivalents at start of year 1850 837
–––––––––––– ––––––––––––
cash and cash equiv alents at the end of year 1108 1850
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
mavinwood plc annual report and financial statements 2007 27
mavinwood plc
consolidated cash flow statement
for the year ended 31 december 2007
211679pp24pp27qxp  18308  1838  page 27 mavinwood plc annual report and financial statements 2007 28
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
1 general information
mavinwood plc and its subsidiaries specifically focus on emergency repair and document
handling the group operates in the uk during the year the group acquired control of external
services group a drainage services company document control services a value added scanning
company and peter cox a damp course water damage and timber treatment services company
the company is a public limited company incorporated and domiciled in the united kingdom the
address of its registered office is lacon house 84 theobald’s road london wc1x 8rw 
the company is listed on the aim stock exchange
these group consolidated financial statements were authorised for issue by the board of directors
on 12 march 2008
2 significant accounting policies
basis of preparation
the consolidated financial statements of mavinwood plc have been prepared in accordance with eu
endorsed international financial reporting standards ifrs ifric interpretations and the
companies act 1985 applicable to companies reporting under ifrs
the financial statements have been prepared under ifrs for the first time the disclosures required
by ifrs 1 concerning the transition from uk gaap to ifrs are given in note 34
the financial statements have been prepared on a historical cost basis
the preparation of financial statements in conformity with ifrs requires the use of certain
accounting estimates it also requires management to exercise its judgement in the process of
applying the group’s accounting policies the areas involving a higher degree of judgement or
complexity or areas where assumptions and estimates are significant to the consolidated financial
statements are disclosed later in this note
a standards amendment and interpretations effective in 2007
ifrs 7 ‘financial instruments disclosure’ and the complementary amendment to ias1
‘presentation of financial statements – capital disclosures’ introduces new disclosures relating to
financial instruments and does not have any impact on the classification and valuation of the
group’s financial instruments or the disclosures relating to taxation and trade and other payables
ifric 8 ‘scope of ifrs 2’ requires consideration of transactions involving the issuance of equity
instruments where the identifiable consideration received is less than the fair value of the equity
instruments issued in order to establish whether or not they fall within the scope of ifrs 2 this
standard does not have any impact on the group’s financial statements
ifric 10 ‘interim financial reporting and impairment’ prohibits the impairment losses recognised
in an interim period on goodwill and investments in equity instruments and in financial assets
carried at cost to be reversed at a subsequent balance sheet date this standard does not have any
impact on the group’s financial statements
b interpretation adopted early by the group
the group has not adopted early the following ifrs and ifric interpretations
ias 23 revised borrowing costs effective for accounting periods beginning on or after 1 january
2009
ifrs 8 operating segments effective for accounting periods beginning on or after 1 january 2009
211679pp28pp66qxp  18308  1840  page 28 mavinwood plc annual report and financial statements 2007 29
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
2 significant accounting policies continued
c standards and interpretations in issue not yet adopted
the following interpretations were in issue but not yet effective
ifric 12 service concession arrangements effective 1 january 2008 and
ifric 14 ias 19 – the limit on a defined benefit asset minimum funding requirements and their
interaction effective 1 january 2008
the directors anticipate that all of the above interpretations will be adopted in the group’s
financial statements for the period commencing 1 january 2008 and that the adoption of those
interpretations will have no material impact on the financial statements of the group in the period
of initial application
the consolidated financial statements are presented in pounds sterling and unless stated otherwise
rounded to the nearest thousand pounds
basis of consolidation
the consolidated financial statements incorporate the financial statements of the company and
entities controlled by the company its subsidiaries made up to 31 december each year control is
achieved where the company has the power to govern the financial and operating policies of an
investee entity so as to obtain benefits from its activities
the results of subsidiaries acquired or disposed of during the year are included in the consolidated
income statement from the effective date of acquisition or up to the effective date of disposal as
appropriate
where necessary adjustments are made to the financial statements of subsidiaries to bring the
accounting policies used into line with those used by the group
all intragroup transactions balances income and expenses are eliminated on consolidation
business combination acquisitions
the acquisition of subsidiaries is accounted for using the purchase method the cost of the
acquisition is measured as the aggregate of the fair values at the date of acquisition of assets given
liabilities incurred or assumed and equity instruments issued by the group in exchange for control
of the acquiree plus any costs directly attributable to the business combination the acquiree’s
identifiable assets liabilities and contingent liabilities are recognised at their fair value at the
acquisition date
the excess of the cost of acquisition over the fair value of the group’s share of the identifiable net
assets acquired is recorded as goodwill if the cost of the acquisition is less than the fair value of the
net assets of the subsidiary acquired the difference is recognised directly in the consolidated
income statement
segmental reporting
a business segment is a group of assets and operations engaged in providing products or services
that are subject to risks and returns that are different from those of other business segments a
geographical segment is engaged in providing products or services within a particular economic
environment that are subject to risks and returns which are different from those of segments
operating in other economic environments
mavinwood plc
211679pp28pp66qxp  18308  1840  page 29 2 significant accounting policies continued
revenue recognition
revenue is measured as 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 v at returns rebates and after eliminating intragroup sales
the group recognises revenue when the amount of revenue can be reliably measured it is probable
that future economic benefits will flow to the entity and when specific criteria have been met for each
of the group’s activities as described below
sale of services – emergency repair
revenue from emergency repair represents amounts in respect of the handling of insurance claims
together with ancillary services including specialist training subcontracting services surveying and
other services revenue is recognised on a percentage of completion basis of the relevant service
sale of services – document handling
revenue from document handling represents amounts billed or due for the storage and retrieval of
customers’ files and boxes revenue is recognised on retrieval of documents or timeapportioned for
the period for which the documents are stored
interest 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 financial asset to that asset’s net carrying amount
dividend income
dividend income is recognised when the right to receive payment is established
goodwill
goodwill arising on consolidation represents the excess of the costs of acquisition over the group’s
interest in the fair value of identifiable assets and liabilities of a subsidiary at the date of
acquisition goodwill is initially recognised as an asset at cost and is subsequently measured at cost
less any accumulated impairment losses goodwill which is recognised as an asset is reviewed for
impairment at least annually any impairment is recognised immediately in the consolidated
income statement and is not subsequently reversed
for the purposes of impairment testing goodwill is allocated to each of the group’s cashgenerating
units expected to benefit from the synergies of the combination cashgenerating units to which
goodwill has been allocated are tested for impairment annually or more frequently when there is an
indication that the unit may be impaired if the recoverable amount of the cashgenerating unit is
less than the carrying amount of the unit the impairment loss is allocated first to reduce the
carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro
rata on the basis of the carrying amount of each asset in the unit
on disposal of a subsidiary the attributable amount of goodwill is included in the determination of
the profit or loss on disposal
goodwill arising on acquisition before the date of transition to ifrs has been retained at the
previous uk gaap amounts subject to being tested for impairment at that date goodwill has
been restated following transition to ifrs as certain intangible assets which were not recognised
under uk gaap have now been separately classified as they meet the recognition criteria under
ias 38
mavinwood plc annual report and financial statements 2007 30
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
mavinwood plc
211679pp28pp66qxp  18308  1840  page 30 2 significant accounting policies continued
intangible assets
intangible assets are recognised when they are controlled through contractual or other legal rights
or are separable from the rest of the business and the fair value can be reliably measured
intangible assets that are regarded as having indefinite useful economic lives are not amortised
intangible assets that are regarded as having limited useful economic lives are amortised on a
straightline basis over those lives assets with indefinite lives are reviewed for impairment annually
and other assets are reviewed for impairment whenever events or circumstances indicate that the
carrying amount may not be recoverable the recoverable amount is the higher of value in use or
fair value less cost to sell amortisation and any impairment write downs are charged in
administrative expenses in the consolidated income statement
customer relationships
acquired customer relationships are identified as a separate intangible asset as they arise from
contractual rights and can be reliably measured by a third party valuation this valuation also
assesses the life of the particular relationship the life of the relationship is assessed annually and
these are being written off over a period of 9 to 14 years except where the relationships have been
assessed as having an indefinite life
trade names
acquired trade names are identified as a separate intangible asset and valued by a third party
valuation the life of the trade name is assessed annually for impairment
application and it
acquired computer software licences are capitalised on the basis of the costs incurred to acquire and
bring to use the specific software these costs are amortised over their estimated useful lives three
to five years
costs associated with developing or maintaining computer software programmes are recognised as
an expense as incurred costs that are directly associated with the development of identifiable and
unique software products controlled by the group and that will probably generate economic
benefits exceeding costs beyond one year are recognised as intangible assets
computer software development costs recognised as assets are amortised over their estimated useful
lives expected to be up to five years residual values and useful lives are reviewed each year
property  plant and equipment
property plant and equipment is stated at historical cost less accumulated depreciation and
accumulated impairment losses
depreciation is provided on all tangible fixed assets except freehold land
freehold and long leasehold buildings 2
long leasehold land over the remaining life of the lease
leasehold improvements over the life of the lease
plant and machinery 15 straight line and 25 reducing balance
racking 5 – 125 straight line
office equipment fixtures and fittings 15 – 33 straight line and 15 – 25 
reducing balance
motor vehicles 20 straight line and 25 reducing balance
mavinwood plc annual report and financial statements 2007 31
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 31 2 significant accounting policies continued
leased assets
leases of property plant and equipment which transfer substantially all the risks and rewards of
ownership to the group are classified as finance leases finance leases are classified as a financial
liability and measured at amortised cost finance leases are capitalised at the inception of the lease
at the lower of the fair value of the leased property plant and equipment and the present value of
the minimum lease payments and depreciated over the period of the lease the resulting lease
obligations are included in liabilities lease payments are apportioned between finance charges and
reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance
of the liability
all other leases are classified as operating leases rentals payable under operating leases net of lease
incentives are charged to the consolidated income statement on a straightline basis over the
period of the lease where property lease contracts contain guaranteed minimum incremental rental
payments the total committed cost is determined and is amortised on a straightline basis over the
life of the lease
investments
investments are initially recorded at fair value inclusive of transaction costs such investments are
subsequently measured at fair value with gains and losses being recognised directly in equity until
the investment is disposed of or it is determined to be impaired at which time the cumulative gain
or loss previously recognised in equity is recycled to the income statement and recognised in profit
or loss for the period impairment losses are recognised in the income statement when there is
evidence of impairment
inventories
inventories are stated at the lower of cost and net realisable value cost is determined on a first in
first out basis net realisable value is the price at which inventories can be sold in the normal course
of business provision is made where necessary for obsolete slow moving and defective inventories
trade and other receiv ables
trade receivables defined as loans and receivables in accordance with ias 39 ‘financial
instruments recognition and measurement’ are recorded initially at fair value and subsequently
measured at amortised cost a provision for impairment of trade receivables is established when
there is evidence that the group will not be able to collect all amounts due according to the original
terms of the receivables the amount of the provision is the difference between the assets’ carrying
amount and the present value of future cash flows discounted at the effective interest rate the
movement in the provision is recognised in the consolidated income statement any other trade
receivables are recognised at their original amount less an allowance for any doubtful amounts an
allowance is made when collection of the full amount is no longer considered probable
cash and cash equiv alents
cash and cash equivalents as defined for the consolidated cash flow statement comprise cash in
hand cash held at bank with immediate access other shortterm investments and bank deposits
with maturities of three months or less from the date of inception
mavinwood plc annual report and financial statements 2007 32
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
mavinwood plc
211679pp28pp66qxp  18308  1840  page 32 2 significant accounting policies continued
trade payables
trade payables defined as financial liabilities in accordance with ias 39 are recognised initially at
fair value and subsequently measured at amortised cost using the effective interest method any
other trade payables are stated at cost all of the trade payables are noninterest bearing
borrowings
borrowings are recorded at the fair value of the consideration received net of issue costs finance
charges are accounted for on an accrual basis in the consolidated income statement using the
effective interest rate method and are added to the carrying amount of the instrument to the extent
that they are not settled in the period in which they arise
taxation
the tax expense represents the sum of the tax currently payable and deferred tax
current tax
the tax currently payable is based on taxable profit for the year taxable profit differs from net profit
as reported in the consolidated 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
deferred tax is the tax expected to be payable or recoverable on differences between the carrying
amount of assets and liabilities in the financial statements and the corresponding tax bases used in
the computation of taxable profit and 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 it is probable that taxable profits will be available against
which deductible temporary differences can be utilised such assets and liabilities are not recognised
if the temporary difference arises from the initial recognition of goodwill or from the initial
recognition other than in a business combination of other assets and liabilities in a transaction that
affects neither the tax profits not the accounting profit
deferred tax liabilities are recognised for taxable temporary differences arising on investments in
subsidiaries and associates and interests in joint ventures except where the group is able to control
the reversal of the temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future
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
provisions
provisions are recognised when the group has a present legal or constructive obligation as a result
of past events it is probable that an outflow of resources will be required to settle the obligation and
a reliable estimate of the amount can be made if the effect is material provisions are determined
by discounting the expected future cash flows at an appropriate pretax discount rate
mavinwood plc annual report and financial statements 2007 33
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
mavinwood plc
211679pp28pp66qxp  18308  1840  page 33 2 significant accounting policies continued
pensions
the group operates a number of defined contribution pension schemes contributions are charged
to the consolidated income statement as incurred
equity instruments
equity instruments issued by the company are recorded at the proceeds received net of direct
issue costs
share based 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 2006
the group issues equitysettled sharebased payments to certain employees equitysettled share
based payments are measured at fair value at the date of grant the fair value determined at the
grant date of equitysettled 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 the monte carlo pricing model
financial instruments
financial assets and financial liabilities are recognised on the group’s balance sheet when the group
has become party to the contractual provisions of the instrument the group uses derivative
financial instruments such as interest rate caps to hedge its risks associated with interest rates such
derivative financial instruments are initially recognised at fair value on the date on which a
derivative contract is entered into and are subsequently remeasured at fair value derivatives are
carried as assets when the fair value is positive and as liabilities when the fair value is negative
any gains or losses arising from changes in fair value on derivatives during the year that do not
qualify for hedge accounting are taken directly to profit or loss
for the purpose of hedge accounting hedges are classified as
● fair value hedges when hedging the exposure to changes in the fair value of a recognised asset
or liability or an unrecognised firm commitment or
● cash flow hedges when hedging exposure to variability in cash flows that is attributable to a
particular risk associated with either a recognised asset or liability
at the inception of a hedge relationship the group formally designates and documents the hedge
relationship to which the group wishes to apply hedge accounting and the risk management
objective and strategy for undertaking the hedge the documentation includes identification of the
hedging instrument the hedged item or transaction the nature of the risk being hedged and how
the entity will assess the hedging instrument’s effectiveness in offsetting the exposure to changes in
the hedged item’s fair value or cash flows attributable to the hedged risk such hedges are expected
to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on
an ongoing basis to determine that they actually have been highly effective throughout the financial
reporting periods for which they were designated
mavinwood plc annual report and financial statements 2007 34
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
mavinwood plc
211679pp28pp66qxp  18308  1840  page 34 2 significant accounting policies continued
hedges which meet the strict criteria for hedge accounting are accounted for as follows
fair value hedges
the change in the fair value of a hedging derivative is recognised in profit or loss the change in the
fair value of the hedged item attributable to the risk hedged is recorded as a part of the carrying
value of the hedged item and is also recognised in profit or loss for fair value hedges relating to
items carried at amortised cost the adjustment to carrying value is amortised through the profit or
loss over the remaining term to maturity any adjustment to the carrying amount of a hedged
financial instrument for which the effective interest rate method is used is amortised through profit
or loss amortisation may begin as soon as an adjustment exists and shall begin no later than when
the hedged item ceases to be adjusted for changes in its fair value attributable to the risk being
hedged if the hedge item is derecognised the unamortised fair value is recognised immediately in
profit or loss when an unrecognised firm commitment is designated as a hedged item the
subsequent cumulative change in the fair value of the firm commitment attributable to the hedged
risk is recognised as an asset or liability with a corresponding gain or loss recognised in profit or
loss the changes in the fair value of the hedging instrument are also recognised in profit or loss
cash flow hedges
the effective portion of the gain or loss on the hedging instrument is recognised directly in equity
while any ineffective portion is recognised immediately in profit or loss amounts taken to equity are
transferred to profit or loss when the hedged transaction affects profit or loss such as when the
hedged financial income or financial expense is recognised or when a forecast sale occurs where the
hedged item is the cost of a nonfinancial asset or nonfinancial liability the amounts taken to
equity are transferred to the initial carrying amount of the nonfinancial asset or liability if the
forecast transaction or firm commitment is no longer expected to occur amounts previously
recognised in equity are transferred to profit or loss if the hedging instrument expires or is sold
terminated or exercised without replacement or rollover or if its designation as a hedge is revoked
amounts previously recognised in equity remain in equity until the forecast transaction or firm
commitment occurs
3 financial risk management
the group’s activities expose it to a variety of financial risks market risk including fair value
interest rate risk and cash flow interest rate risk credit risk and liquidity risk the group’s overall
risk management programme focuses on the unpredictability of financial markets and seeks to
minimise potential adverse effects on the group’s financial performance the group uses derivative
financial instruments to hedge certain risk exposures
risk management is carried out centrally under policies approved by the board of directors the
group evaluates and hedges financial risks the board provides written principles for overall risk
management
a market risk
i foreign exchange risk
the group operates in the uk and is not exposed to foreign exchange risk
mavinwood plc annual report and financial statements 2007 35
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
mavinwood plc
211679pp28pp66qxp  18308  1840  page 35 3 financial risk management continued
ii cash flow and fair value interest rate risk
the group’s interest rate risk arises from longterm borrowings borrowings issued at
variable rates expose the group to cash flow interest rate risk during 2007 and 2006 the
group’s borrowings at variable rate were denominated in the uk pound the group
analyses its interest rate exposure using financial modelling based on the various scenarios
the group manages its cash flow interest rate risk by using floatingtofixed interest rate
caps such interest rate caps have the economic effect of converting borrowings from
floating rates to fixed rates at a certain level the interest rate cap is an agreement with other
parties at quarterly intervals to exchange the difference between fixed and floatingrate
calculated by reference to the notional principal amount as shown in note 19
b credit risk
the group trades only with recognised creditworthy third parties it is the group’s policy that all
customers who wish to trade on credit terms are subject to credit verification procedures in
addition receivables balances are monitored on an ongoing basis with the result that the group’s
exposure to bad debts is not significant the maximum exposure is the carrying amount as disclosed
in note 15 with respect to credit risk arising from the other financial assets of the group which
comprise cash and cash equivalents the group’s exposure to credit risk arises from default of the
counterparty with a maximum exposure equal to the carrying amount of these instruments as also
shown in note 15
c liquidity risk
the group monitors its risk to a shortage of funds using a forecasting model this model considers
the maturity of both its financial investments and financial assets eg accounts receivables other
financial assets and projected cash flows from operations the group’s objective is to maintain a
balance between continuity of funding and flexibility through the use of bank overdrafts bank
loans and finance leases a detailed analysis of the group’s debt facilities is given in note 19
capital risk management
the primary objective of the group’s capital management is to ensure that it maintains a strong
credit rating and healthy capital ratios in order to support its business and maximise shareholder
value the group manages its capital structure and makes adjustments to it in light of changes in
economic conditions to maintain or adjust the capital structure the group may issue new shares
no changes were made in the objectives policies or processes during the years ending 31 december
2007 and 31 december 2006
fair value estimation
the fair value of financial instruments is market value
critical accounting estimates and judgements
the preparation of the groups financial statements requires management to make judgments
estimates and assumptions that affect the reported amounts of revenues expenses assets and
liabilities and the disclosure of contingent liabilities at the reporting date however uncertainty
about these assumptions and estimates could result in outcomes that could require a material
adjustment to the carrying amount of the asset or liability affected in the future
mavinwood plc annual report and financial statements 2007 36
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
mavinwood plc
211679pp28pp66qxp  18308  1840  page 36 3 financial risk management continued
judgments
in the process of applying the groups accounting policies management has made the following
judgments apart from those involving estimations which have the most significant effect on the
amounts recognised in the financial statements
income taxes
the group is subject to income taxes in the uk judgment is required in determining the provision
for income taxes the group recognises liabilities for anticipated tax audit issues based on estimates
of whether additional taxes will be due where the final tax outcome of these matters is different
from the amounts that were initially recorded such differences will impact the income tax and
deferred tax provisions in the period in which such determination is made
estimates and assumptions
the key assumptions concerning the future and other key sources of estimation uncertainty at the
balance sheet date that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year are discussed below
impairment of nonfinancial assets
the group assesses whether there are any indicators of impairment for all nonfinancial assets at
each reporting date goodwill and other indefinite life intangibles are tested for impairment
annually and at other times when such indicators exist other nonfinancial assets are tested for
impairment when there are indicators that the carrying amounts may not be recoverable
when value in use calculations are undertaken management must estimate the expected future cash
flows from the asset or cash generating unit and choose a suitable discount rate in order to calculate
the present value of those cash flows further details including a sensitivity analysis of key
assumptions are given in note 11
sharebased payments
the group measures the cost of equitysettled transactions with employees by reference to the fair
value of the equity instruments at the date at which they are granted estimating fair value requires
determining the most appropriate valuation model for a grant of equity instruments which is
dependent on the terms and conditions of the grant this also requires determining the most
appropriate inputs to the valuation model including the expected life of the option volatility and
dividend yield and making assumptions about them the assumptions and models used are
disclosed in note 27
mavinwood plc annual report and financial statements 2007 37
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
mavinwood plc
211679pp28pp66qxp  18308  1840  page 37 4 segmental anal ysis
for management purposes the group is organised into two main segments emergency repair and
document handling the business segment is the primary segment all trading of the group is
undertaken within the united kingdom and the company has no foreign operations the secondary
segment based on geography is solely the united kingdom segment assets include intangibles
property plant and equipment inventories debtors and operating cash central assets include
investments deferred tax and head office assets segment liabilities comprise operating liabilities
central liabilities include income tax corporate borrowings and head office liabilities capital
expenditure comprises additions to computer software property plant and equipment and includes
additions resulting from acquisitions through business combinations segment assets and liabilities
are allocated between segments on an actual basis
year ended year ended
31 december 31 december
2007 2006
£’000 £’000
revenue
the revenue was derived from the groups principal activities 
in the uk as follows
emergency repair 56197 34515
document handling 11956 7938
–––––––––––– ––––––––––––
68153 42453
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
results
the profit after tax was derived from the group’s 
principal activities in the uk as follows
emergency repair 7152 4832
document handling 3886 2459
central costs 1439 969
share based payments charge 1892 1039
amortisation of intangible assets 288 96
–––––––––––– ––––––––––––
operating profit 7419 5187
net finance cost 2372 1436
–––––––––––– ––––––––––––
profit before tax 5047 3751 
income tax expense 2463 1195
–––––––––––– ––––––––––––
profit after tax 2584 2556
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
in 2007 of the £1892000 share based payments charge shown above £240000 can be allocated to
the emergency repair division 2006 £104000 and £81000 to the document handling division
2006 £63000 in 2007 of the £288000 amortisation of intangible assets shown above £101000
can be allocated to the emergency repair division 2006 £55000 and £187000 to the document
handling division 2006 £41000 the remainder of these costs are allocated to central costs
mavinwood plc annual report and financial statements 2007 38
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 38 4 segmental anal ysis continued
2007 2006
£’000 £’000
segmental assets
emergency repair 71433 59326
document handling 36533 25620
central 252 241
–––––––––––– ––––––––––––
total 108218 85187
segmental liabilities
emergency repair 14297 13422
document handling 5004 5071
central 38304 22457
–––––––––––– ––––––––––––
total 57605 40950
segmental net assets
emergency repair 57136 45904
document handling 31529 20549
central 38052 22216
–––––––––––– ––––––––––––
total 50613 44237
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
property plant and equipment additions 2287 1059
amortisation of intangible assets 288 96
depreciation of property plant and equipment 843 833
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
5 operating profit
year ended year ended
31 december 31 december
2007 2006
£’000 £’000
the following items have been included in arriving at operating profit
amortisation of intangible assets 288 96 
depreciation of property plant and equipment 843 833 
gain on disposal of property plant and equipment 33 54 
operating leases – plant and machinery 2250 794 
operating leases – land and buildings 1759 1026 
auditors’ remuneration
– statutory audit 115 90
– further assurance services 10 –
– tax compliance 25 49
– tax advisory 18 –
– other 17 20
other fees paid to the auditors totalling £131000 2006 £247000 have been capitalised as part of
acquisition costs
mavinwood plc annual report and financial statements 2007 39
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 39 6 finance income
year ended year ended
31 december 31 december
2007 2006
£’000 £’000
bank interest receivable 106 82
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
7 finance costs
year ended year ended
31 december 31 december
2007 2006
£’000 £’000
interest on bank loans 2233 1164 
loan note interest – 51 
interest on finance lease obligations 25 27 
amortisation of deferred financing costs 145 118 
notional interest on contingent consideration 62 158 
interest rate cap 13 –
–––––––––––– ––––––––––––
2478 1518 
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
8 taxation
year ended year ended
31 december 31 december
2007 2006
£’000 £’000
current tax
uk corporation tax on profits for the year 2245 1571 
adjustments in respect of previous periods 187 11
–––––––––––– ––––––––––––
total current tax 2058 1560 
–––––––––––– ––––––––––––
deferred tax note 21
current year 405 365
–––––––––––– ––––––––––––
total deferred tax 405 365
–––––––––––– ––––––––––––
total tax charge 2463 1195 
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
mavinwood plc annual report and financial statements 2007 40
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 40 8 taxation continued
the charge for the year can be reconciled to the profit per the consolidated income statement as
follows
year ended year ended
31 december 31 december
2007 2006
£’000 £’000
profit on ordinary activities before tax 5047 1589 
–––––––––––– ––––––––––––
profit on ordinary activities multiplied by the rate of corporation 
tax of 30 1514 1125 
effects of
expenses not deductible for tax purposes 95 70 
tax relief not recognised on share based payments charge 574 –
tax losses not utilised 19 2
effect of different tax rate used for deferred tax 23 –
adjustments in respect of current income tax of previous years 187 1
adjustments in respect of deferred income tax of previous years 471 3
–––––––––––– ––––––––––––
total tax charge as reported in the consolidated income statement 2463 1195 
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
the effective tax rate is 49 due to the distortion caused by the non deductibility of the
amortisation of intangible assets the notional interest on the contingent consideration and the share
based payments charge after adjusting for these the effective rate becomes 30 2006 30
9 earnings per ordinary share
basic earnings per share have been calculated on the profit after taxation for the year and the
weighted average number of ordinary shares in issue during the year
adjusted earnings per share which are before amortisation of intangible assets share based
payments charge and notional interest on contingent consideration have been presented in addition
to the basic earnings per share since in the opinion of the directors this provides shareholders with
a more appropriate representation of the underlying earnings derived from the group’s businesses
mavinwood plc annual report and financial statements 2007 41
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 41 9 earnings per ordinary share continued
year ended year ended
31 december 31 december
2007 2006
no of shares no of shares
weighted average number of shares in issue 457684786 388920578 
––––––––––––– –––––––––––––
––––––––––––– –––––––––––––
£’000 £’000
profit after taxation on ordinary activities 2584 2556 
adjustments
share based payments charge 1892 1039
tax effect 312 312
amortisation of intangible assets 288 96
tax effect 36 26
notional interest on contingent consideration 62 158 
––––––––––––– –––––––––––––
adjusted earnings 5102 3511 
––––––––––––– –––––––––––––
––––––––––––– –––––––––––––
basic earnings per ordinary share 056p 066p
––––––––––––– –––––––––––––
––––––––––––– –––––––––––––
adjusted basic earnings per ordinary share before amortisation
of intangible assets share based payments charge and notional 
interest on contingent consideration 111p 090p 
––––––––––––– –––––––––––––
––––––––––––– –––––––––––––
no of shares no of shares
weighted average number of shares in issue 457684786 388920578 
convertible ‘ a ’ shares share options and awards under the ltip 76584355 44082349 
––––––––––––– –––––––––––––
weighted average fully diluted number of shares in issue 534269141 433002927 
––––––––––––– –––––––––––––
––––––––––––– –––––––––––––
fully diluted earnings per ordinary share 048p 059p 
––––––––––––– –––––––––––––
––––––––––––– –––––––––––––
adjusted fully diluted earnings per ordinary share before
amortisation of intangible assets share based payments charge
and notional interest on contingent consideration 096p 081p 
––––––––––––– –––––––––––––
––––––––––––– –––––––––––––
the diluted earnings per share are the basic earnings per share adjusted for the dilutive effect of the
conversion into fully paid shares of the outstanding share options and awards under the ltip  they
are also adjusted for the conversion of the a shares into ordinary shares at a price of 184p being
the average price per ordinary share in the year ended 31 december 2007 2006 1393p
mavinwood plc annual report and financial statements 2007 42
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 42 10 business combinations acquisitions
on 2 february 2007 100 of the share capital of external services group limited esg a
drainage sub contractor to ansa was acquired for cash of £206000
book value at fair value fair value at
acquisition adjustment acquisition
external services group limited esg £’000 £’000 £’000
inventories 14 – 14
debtors 214 – 214
creditors 166 – 166
taxation 12 – 12
finance leases 27 – 27
–––––––––––– –––––––––––– ––––––––––––
net assets acquired 23 – 23
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
goodwill capitalised 183
––––––––––––
consideration 206
––––––––––––
––––––––––––
satisfied by
cash to vendors 206
––––––––––––
––––––––––––
the goodwill of £02 million represents the value attributable to new business and the assembled and
trained workforce
on 26 march 2007 the company acquired 100 of the share capital of stapledon holdings
limited the parent company of document control services limited dcs for an initial sum of
£13 million which was satisfied by cash of £03 million and the issue of 5405405 ordinary shares
in mavinwood plc at an issue price of 185p at mid market value contingent consideration of up to
£2 million is also payable in cash linked to the growth in ebita for the year ending 30 june 2008
the full £2 million is payable assuming ebita reaches £123 million
mavinwood plc annual report and financial statements 2007 43
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 43 10 business combinations acquisitions continued
book value at fair value fair value at
acquisition adjustment acquisition
stapledon holdings limited £’000 £’000 £’000
intangible assets – 2901 2901
property plant and equipment 104 – 104
debtors 916 – 916
creditors 342 – 342
taxation 147 812 959
cash 6 – 6
finance leases 56 – 56
–––––––––––– –––––––––––– ––––––––––––
net assets acquired 481 2089 2570
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
goodwill capitalised 5588
––––––––––––
consideration 8158
––––––––––––
––––––––––––
satisfied by
cash to vendors 291
loans repaid 4794
share issues 1000
discounted contingent consideration 1777
related costs of acquisition 296
––––––––––––
8158
––––––––––––
––––––––––––
the goodwill of £56 million represents the value attributable to new business and the assembled and
trained workforce the intangible asset fair value adjustment has been made to recognise the value
attributable to existing customer relationships the trade name technology and software deferred
tax at 28 has been provided on the value of the intangible assets note 21
on 28 september 2007 the company acquired 100 of the share capital of peter cox limited for
an initial consideration of £6 million
mavinwood plc annual report and financial statements 2007 44
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 44 10 business combinations acquisitions continued
book value at fair value fair value at
acquisition adjustment acquisition
peter cox limited £’000 £’000 £’000
intangible assets – 1079 1079
property plant and equipment 224 – 224
inventories 68 – 68
debtors 3007 – 3007
creditors 1560 – 1560
deferred taxation 559 302 257
cash 745 – 745
long term liabilities 656 – 656
–––––––––––– –––––––––––– ––––––––––––
net assets acquired 2387 777 3164
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
goodwill capitalised 5232
––––––––––––
consideration 8396
––––––––––––
––––––––––––
satisfied by
cash to vendors 6350
deferred consideration 400
contingent consideration 1050
related costs of acquisition 596
––––––––––––
8396
––––––––––––
––––––––––––
the deferred consideration of £04 million and contingent consideration of £10 million were paid
on 3 january 2008 and 21 february 2008 respectively the goodwill of £52 million represents the
value attributable to the assembled and trained workforce the intangible asset fair value adjustment
has been made to recognise the value attributable to existing customer relationships and the trade
name deferred tax at 28 has been provided on the value of the intangible assets note 21
post acquisition profits esg dcs peter cox
£’000 £’000 £’000
profit before tax since acquisition included in the 
consolidated income statement 185 1073 299
–––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– ––––––––––––
if the acquisitions had been completed on the first day of the financial year group revenues for the
year would have been £81477000 and group profit before tax would have been £5257000
mavinwood plc annual report and financial statements 2007 45
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 45 10 business combinations acquisitions continued
the total consideration paid for group acquisitions during the year was £168 million which was
satisfied as follows
esg dcs peter cox total
£’000 £’000 £’000 £’000
cash to vendors 206 291 6350 6847
loans repaid – 4794 – 4794
related costs of acquisition – 296 596 892
deferred consideration – – 400 400
contingent consideration not yet due – 1777 1050 2827
issue of shares to vendors – 1000 – 1000
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
206 8158 8396 16760
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
subsidiaries
a list of the significant investments in subsidiaries including the name country of incorporation
and proportion of ownership interest is given in note 36 to the company’s financial statements
mavinwood plc annual report and financial statements 2007 46
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 46 11 intangible assets
applications
customer software
goodwill relationships trade names and it total
£’000 £’000 £’000 £’000 £’000
cost 
1 january 2006 31224 – – 620 31844
acquired with subsidiary 18529 8662 – 61 27252
additions – – – 109 109
–––––––––––– –––––––––––– –––––––––––– –––––––––––– ––––––––––––
31 december 2006 49753 8662 – 790 59205
–––––––––––– –––––––––––– –––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– –––––––––––– –––––––––––– ––––––––––––
cost 
1 january 2007 49753 8662 – 790 59205
acquired with subsidiary – 2662 1222 116 4000
additions 11003 – – 396 11399
disposals – – – 35 35
adjustments 3292 – – 27 3265
–––––––––––– –––––––––––– –––––––––––– –––––––––––– ––––––––––––
31 december 2007 57464 11324 1222 1294 71304
–––––––––––– –––––––––––– –––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– –––––––––––– –––––––––––– ––––––––––––
accumulated amortisation
1 january 2006 – – – 236 236
acquired with subsidiary – – – 50 50
charge for the year – – – 96 96
disposals –––––
–––––––––––– –––––––––––– –––––––––––– –––––––––––– ––––––––––––
31 december 2006 – – – 382 382
–––––––––––– –––––––––––– –––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– –––––––––––– –––––––––––– ––––––––––––
accumulated amortisation
1 january 2007 – – – 382 382
acquired with subsidiary – – – 20 20
charge for the year – 137 – 151 288
disposals – – – 20 20
–––––––––––– –––––––––––– –––––––––––– –––––––––––– ––––––––––––
31 december 2007 – 137 – 533 670
–––––––––––– –––––––––––– –––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– –––––––––––– –––––––––––– ––––––––––––
carrying amount
31 december 2007 57464 11187 1222 761 70634
–––––––––––– –––––––––––– –––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– –––––––––––– –––––––––––– ––––––––––––
31 december 2006 49753 8662 – 408 58823
–––––––––––– –––––––––––– –––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– –––––––––––– –––––––––––– ––––––––––––
customer relationships include assets which are considered to have an infinite life due to the
business having a strong relationship and low attrition rates with its customer groups the carrying
amount of these assets is £9884000 2006 £8662000 the remaining customer relationships have
a life of between 9 and 14 years trade names include assets which are considered to have an infinite
life due to the history of trading and being a market leader in the services provided the carrying
amount of these assets is £1222000 2006 £nil
mavinwood plc annual report and financial statements 2007 47
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 47 11 intangible assets continued
allocation of goodwill to cashgenerating units
goodwill has been allocated for impairment testing purposes to the following cashgenerating units
emergency repair – ansa independent inspections mono services and peter cox
document handling – document control services restore and wansdyke
the carrying amount of goodwill other than goodwill classified as held for sale and infinite life
intangible assets was allocated to the following cashgenerating units
infinite life 
goodwill intangibles
2007 2006 2007 2006
£’000 £’000 £’000 £’000
emergency repair
ansa 23614 23431 – –
independent inspections 8332 11677 2700 2700
mono services 4010 3963 3097 3097
peter cox 5232 – 958 –
document handling
document control services 5588 – 264 –
restore 7574 7574 – –
wansdyke 3114 3108 2865 2865
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
57464 49753 9884 8662
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
goodwill and other infinite life intangible assets
the recoverable amount of each cashgenerating unit is determined based on a value in use
calculation which uses cash flow projections based on financial budgets approved by the directors
for year one to year four terminal cash flows are based on year four projections assumed to grow
perpetually at 1 in accordance with ias 36 the growth rates for beyond the forecasted period do
not exceed the long term average growth rate for the industry change in selling prices and direct
costs are based on past practices and expectations of future changes in the market a discount rate
of 85 per annum 2006 83 per annum has been applied
annual test for impairment
during the year the group assessed the recoverable amount of goodwill and other infinite life
intangibles and determined that it was not impaired
mavinwood plc annual report and financial statements 2007 48
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 48 11 intangible assets continued
the changes to goodwill during the year were as follows
£’000
cost
1 january 2007 49753
contingent consideration adjustment – independent inspections 3345
adjustment – mono services 47
addition – external services group 183
addition – document control services 5588
addition – peter cox 5232
addition – other 6
––––––––––––
31 december 2007 57464
––––––––––––
––––––––––––
impairment
1 january 2007 and 31 december 2007 –
––––––––––––
––––––––––––
carrying amount at 31 december 2007 57464
––––––––––––
––––––––––––
carrying amount at 31 december 2006 49753
––––––––––––
––––––––––––
mavinwood plc annual report and financial statements 2007 49
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 49 12 property  plant and equipment
freehold 
and long office 
leasehold leasehold racking equipment
land  improve plant  fixtures motor 
buildings ments machinery  fittings vehicles total
£’000 £’000 £’000 £’000 £’000 £’000
cost 
1 january 2006 – 254 1591 1564 497 3906
additions 229 105 514 121 90 1059
acquired with subsidiary 7226 – 1315 217 808 9566
disposals – – – 14 1035 1049
–––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
31 december 2006 7455 359 3420 1888 360 13482
–––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
–––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
at 1 january 2007 7455 359 3420 1888 360 13482
additions 679 45 762 787 14 2287
acquired with subsidiary – 10 52 260 6 328
disposals – 217 185 370 252 1024
–––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
31 december 2007 8134 197 4049 2565 128 15073
–––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
–––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
accumulated depreciation
1 january 2006 – 87 753 947 294 2081
charged in the year 39 34 381 191 188 833
disposals –––– 258 258
–––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
31 december 2006 39 121 1134 1138 224 2656
–––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
–––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
at 1 january 2007 39 121 1134 1138 224 2656
charged in the year 27 29 458 276 53 843
disposals – 121 123 208 194 646
–––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
31 december 2007 66 29 1469 1206 83 2853
–––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
–––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
net book value
31 december 2007 8068 168 2580 1359 45 12220
–––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
–––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
31 december 2006 7416 238 2286 750 136 10826
–––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
–––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
property plant and equipment at a net book value of £310000 was disposed of as part of the sale
of the trade and assets of ansa training note 13
mavinwood plc annual report and financial statements 2007 50
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 50 12 property  plant and equipment continued
included in the net book value above in respect of assets held under finance leases and similar hire
purchase contracts are the following
office
racking equipment
plant  fixtures  motor
machinery fittings vehicles total
£’000 £’000 £’000 £’000
net book value
31 december 2007 47 3 – 50
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
31 december 2006 115 20 24 159
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
depreciation charged in the year for these assets was
31 december 2007 28 20 – 48
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
31 december 2006 65 4 11 80
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
capital expenditure contracted for but not provided in the financial statements is shown in note 30
13 investments
2007 2006
£’000 £’000
trading investment 556 –
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
the investment shown above represents a loan note investment of £550000 and a 19 shareholding
in veritas limited the loan note presents the group with the opportunity for return through
interest income veritas limited is the company which acquired the trade and assets of ansa
training the loan note is repayable in instalments from january 2008 to december 2010 interest
is charged on the loan note at libor plus 4
14 inventories
2007 2006
£’000 £’000
finished goods and goods for resale 381 311
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
mavinwood plc annual report and financial statements 2007 51
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 51 15 other financial assets
trade and other receivables
2007 2006
£’000 £’000
trade receivables 14428 8021
less provision for impairment of trade receivables 398 246
–––––––––––– ––––––––––––
trade receivables – net 14030 7775
other debtors 264 609
prepayments and accrued income 8846 4985
–––––––––––– ––––––––––––
23140 13369
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
the average credit period on sales of services is 58 days no interest is charged on the trade
receivables for the first 30 days from the date of the invoice thereafter interest may be charged at
two percent per annum on the outstanding balance trade receivables are provided for based on
estimated irrecoverable amounts from the sale of goods determined by reference to past payment
history and the current financial status of the customers
movement in the allowance for doubtful debts 2007
£’000
balance at beginning of the year 246
amounts acquired during the year 73
increase in amount recognised in profit and loss 79
––––––––––––
balance at end of the year 398
––––––––––––
––––––––––––
in determining the recoverability of the trade receivables the group considers any change in
the credit quality of the trade receivable from the date credit was initially granted up to the
reporting date
cash and cash equivalents
2007 2006
£’000 £’000
cash at bank and in hand 1108 1850
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
mavinwood plc annual report and financial statements 2007 52
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 52 16 trade and other payables
2007 2006
£’000 £’000
trade payables 8090 6445
other taxation and social security 2616 1727
other creditors 2866 229
accruals and deferred income 1982 2713
–––––––––––– ––––––––––––
15554 11114
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
the group has financial risk management policies in place to ensure that all payables are paid
within the credit time frame trade and other payables principally comprise amounts outstanding
for trade purchases and ongoing costs the average credit period for trade purchases is 56 days the
directors consider the carrying value of trade payables approximates to their fair value
17 bank loans and overdrafts
2007 2006
£’000 £’000
current
bank loans and overdrafts due within one year 
overdrafts on demand 337 –
bank loans  secured 4000 3600
–––––––––––– ––––––––––––
4337 3600
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
noncurrent
bank loans – secured 28000 16100
deferred financing costs 357 310
–––––––––––– ––––––––––––
27643 15790
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
the bank debt is due to allied irish banks plc and fortis bank sanv uk branch and is secured
by a fixed and floating charge over the assets of the group interest was charged at 225 over
london inter bank offered rate libor an analysis of borrowings is given in note 19
mavinwood plc annual report and financial statements 2007 53
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 53 17 bank loans and overdrafts continued
the movement in net debt is analysed as follows
2007 2006
£’000 £’000
at 1 january 17649 4335
net cash generated from operating activities 1430 2760
net cash flows used in investing activities 9676 25833
repayment of indebtedness acquired 4794 881
net proceeds from issue of shares – 11346
finance leases acquired 83 621
payment of deferred financing costs 192 268
other 47 183
–––––––––––– ––––––––––––
at 31 december 30917 17649
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
analysis of net debt
2007 2006
£’000 £’000
cash at bank and in hand 1108 1850
bank loans and overdrafts due within one year 4337 3600
bank loans due after one year 28000 16100
finance leases due within one year 45 109
deferred financing costs 357 310
–––––––––––– ––––––––––––
at 31 december 30917 17649
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
18 other financial liabilities
2007 2006
plant and plant and 
machinery machinery
£’000 £’000
the minimum lease payments under finance leases fall due as follows
within one year 45 109
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
mavinwood plc annual report and financial statements 2007 54
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 54 19 financial instruments
the group’s financial instruments comprise cash bank loans finance leases hire purchase
contracts and various other receivable and payable balances that arise from its operations the main
purpose of these financial instruments is to finance the group’s operations
the main financial risks arising from the group’s financial instruments are interest rate risk and
liquidity risk the directors review and agree policies for managing each of these risks interest rates
are regularly reviewed to ensure competitive rates are paid detailed cash flows are produced on a
regular basis to minimise liquidity risks
currency and interest rate risk profile of financial liabilities
all bank borrowings are subject to floating interest rates at libor plus a margin of 225 the
interest rate risk profile of the group’s bank borrowings for the year was
floating rate weighted
financial average
total liabilities interest rates
currency £’000 £’000 
sterling at 31 december 2007 32337 32337 777
–––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– ––––––––––––
sterling at 31 december 2006 19700 19700 720
–––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– ––––––––––––
the group’s finance leases totalling £45000 2006 £109000 bear fixedterm interest rates set at
between 5 and 10 and are all denominated in sterling
financial assets recognised in the balance sheet and interest rate profile
the loan note of £550000 as shown in note 13 to the financial statements is held at amortised cost
and bears interest at libor plus 4 all other financial assets are short term debtors and cash in
hand the cash in hand earns interest based on the variable bank base rate
maturity of financial liabilities
the maturity profile of the carrying amount of the group’s financial liabilities other than short
term trade payables and accruals during the year was as follows
other other
bank financial 2007 bank financial 2006
debt liabilities total debt liabilities total
£’000 £’000 £’000 £’000 £’000 £’000
within one year or on demand 4337 45 4382 3600 109 3709
between one and two years 8000 – 8000 3600 – 3600
between two and five years 20000 – 20000 12500 – 12500
–––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
32337 45 32382 19700 109 19809
–––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
–––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
mavinwood plc annual report and financial statements 2007 55
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 55 19 financial instruments continued
borrowing facilities
the group has a term facility of £28 million and a revolving credit facility rcf of £9 million £4
million of the rcf was undrawn at 31 december 2007 the facilities expire in august 2011 in
addition to these facilities the group has an uncommitted overdraft facility of £05 million of
which £02 million has not been utilised at 31 december 2007 all of the group’s borrowings are in
sterling
fair values of financial assets and financial liabilities
the group’s financial assets and liabilities bear floating interest rates and are relatively short term
in nature in the opinion of the directors the book values of the assets and liabilities equate to their
fair value
interest rate caps
during the year the group purchased an interest rate cap the group exchanges the difference
between fixed and floating rate interest amounts calculated on agreed notional principal amounts
such contracts enable the group to mitigate the risk of changing interest rates on the issued variable
rate debt held the fair value of the interest rate cap at the year end is the market value
average contracted notional principal
fixed interest rate amount fair value
2007 2006 2007 2006 2007 2006
  £’000 £’000 £’000 £’000
1 to 2 years 64 – 10000 – 10 –
–––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
–––––––––– –––––––––– –––––––––– –––––––––– –––––––––– ––––––––––
the interest rate cap settles on a quarterly basis the interest rate cap is for £10 million is set at 64
and expires on 31 march 2010 the fair value of the cap at 31 december 2007 is estimated at £10000
2006 – £nil as the hedge was not designated as effective on inception the movement in fair value
has been taken to the consolidated income statement
hedges and foreign currency
the group’s policy is not to use forward contracts and therefore none were outstanding at the year
end 2006 £nil the group has no significant currency exposures at 31 december 2007 or
31 december 2006 so no numerical disclosures have been provided
mavinwood plc annual report and financial statements 2007 56
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 56 20 provisions
provision 
contingent remedial for property
consideration provision dilapidation total
£’000 £’000 £’000 £’000
1 january 2007 4383 – – 4383
acquired on purchase of subsidiary 
undertakings – 603 53 656
settlement of
mono services contingent consideration 1000 – – 1000
adjustment to mono services 40 – – 40
reduction in investment in independent
inspections 3353 – – 3353
contingent consideration on restore 83 – – 83
discounted contingent consideration 
on dcs 1777 – – 1777
contingent consideration on peter cox 1050 – – 1050
notional interest on contingent 
consideration 62 – – 62
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
31 december 2007 3042 603 53 3698
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
provisions are analysed as follows
2007 2006
£’000 £’000
current 3698 500
noncurrent – 3883
–––––––––––– ––––––––––––
3698 4383
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
contingent consideration
contingent consideration which has been provided for on a discounted basis may be paid to the
vendors of certain subsidiary undertakings in the years to 2008 such payments are contingent on
future financial performance the directors estimate that the liability at 31 december 2007 for
payments that may be due is as follows
2007 2006
contingent consideration £’000 £’000
within one year 3133 500
between one and two years – 2500
over two years – 2000
discount on contingent consideration 223 775
notional interest on contingent consideration 132 158
–––––––––––– ––––––––––––
3042 4383
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
the minimum liability is zero and the maximum is £30 million on 11 october 2007 the contingent
consideration due on the acquisition of mono services was settled at £10 million £01 million in
cash and £09 million by the issue of 4500000 ordinary shares in mavinwood plc at a mid market
price of 20p the payment of this amount brought the consideration to £70 million before costs
mavinwood plc annual report and financial statements 2007 57
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 57 20 provisions continued
remedial provision
the group is maintaining a remedial provision to meet the estimated future costs of claims made
by customers under the terms of the guarantees issued in respect of property services the amount
of the reserve has been calculated on the level of customer claims made on a historic basis
provisions for dilapidations
the group holds a number of property leases which include a clause for the restoration of the
premises to their original state and a provision is being maintained to reflect the potential costs of
this work the calculation of the amount required at the year end has been based on the reports of
professional surveyors and the directors’ estimate of the probability of the liability arising
21 deferred tax
2007 2006
£’000 £’000
summary of balances
deferred tax liabilities 5099 3985
deferred tax asset 179 8
–––––––––––– ––––––––––––
net position at 31 december 4920 3977
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
the movement in the year in the group’s net deferred tax position is as follows
2007 2006
£’000 £’000
1 january 3977 116
chargecredit to income for the year 405 365
acquisitions 576 241
provided on fair value adjustment – 1515
provided on intangible assets acquired 1114 2470
–––––––––––– ––––––––––––
31 december 4920 3977
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
mavinwood plc annual report and financial statements 2007 58
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 58 21 deferred tax continued
the following are the major deferred tax liabilities and assets recognised by the group and the
movements thereon during the year
deferred tax liabilities
on fair 
intangible value of
assets properties total
£’000 £’000 £’000
1 january 2006 – – –
acquisitions 2470 1515 3985
–––––––––––– –––––––––––– ––––––––––––
31 december 2006 2470 1515 3985
acquisitions 1114 – 1114
–––––––––––– –––––––––––– ––––––––––––
31 december 2007 3584 1515 5099
–––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– ––––––––––––
deferred tax assets
accelerated shortterm 
capital timing 
allowances differences losses total
£’000 £’000 £’000 £’000
1 january 2006 147 31 – 116
credit to income for the year – 365 – 365
acquisitions 241 – – 241
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
31 december 2006 388 396 – 8
creditcharge to income for the year 386 791 – 405
acquisitions – 479 97 576
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
31 december 2007 2 84 97 179
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
mavinwood plc annual report and financial statements 2007 59
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 59 22 called up share capital
2007 2006
£’000 £’000
authorised
9950000000 ordinary shares of 01p each 9950 9950
50000000 convertible a shares of 01p each 50 50
–––––––––––– ––––––––––––
10000 10000
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
allotted issued and fully paid
462417811 2006 452512406 ordinary shares of 01p each 462 453
50000000 2006 50000000 convertible a shares of 01p each 50 50
–––––––––––– ––––––––––––
512 503
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
the issued share capital has been increased in 2007 as follows
number 
date of shares issue price
1 january 2007 452512406
27 march 2007 5405405 185p
11 october 2007 4500000 200p
––––––––––––
total shares issued in 2007 9905405
––––––––––––
31 december 2007 462417811
––––––––––––
––––––––––––
the a shares become convertible into a number of ordinary shares with an aggregate value
equivalent to 15 percent of the increase in shareholder value for this purpose shareholder value is
broadly defined as the difference between the market capitalisation of the company at the relevant
conversion date and the aggregate value of all ordinary shares issued up to the date of conversion
subject to certain provisions contained in the articles the a shares become convertible at the
election of each holder of the a shares after 5 november 2007 or on a takeover of the company
into ordinary shares the a shares cease to be convertible from the fifth anniversary of admission
that is 5 november 2009
the a shares are nonvoting and are entitled to dividends as if they had been converted on the
relevant record date
23 share premium account
2007 2006
£’000 £’000
1 january 40060 26459
premium on shares issued during the year 1891 14255
share issue costs – 654
–––––––––––– ––––––––––––
31 december 41951 40060
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
mavinwood plc annual report and financial statements 2007 60
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 60 24 share based payments reser ve
2007 2006
£’000 £’000
1 january 1102 85
charge for the year 1892 1017
–––––––––––– ––––––––––––
31 december 2994 1102
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
25 retained earnings
2007 2006
£’000 £’000
1 january 2572 16 
profit for the year 2584 2556
–––––––––––– ––––––––––––
31 december 5156 2572
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
26 pensions
the group operates a number of defined contribution schemes for all qualifying employees the
assets of the schemes are held separately from those of the group in funds under the control of
trustees the total cost charged to income of £194000 2006 £127000 represents contributions
payable to these schemes by the group at rates specified in the rules of the plan
27 share based payments
share option scheme
the mavinwood share option scheme was introduced in may 2005 under the scheme the
remuneration committee can grant options over shares in the company to directors and employees
of the group options are granted at a fixed price equal to the market price of the shares under
option at the date of grant the contractual life of the option is 10 years awards under the scheme
are generally reserved for employees at senior management level and above the company has made
four grants to date the share options granted will subject to the performance targets being met
vest in three tranches on the date of the announcement of the final results for the company for each
of the three years ending after the date of grant the full vesting of each tranche of the share
options granted will be subject to the company achieving annually a performance target of a growth
of adjusted earnings per share eps of 10 or more over the adjusted eps for the previous year
in the event that the adjusted eps growth in each year is less than 10 then the proportion of
options that will vest shall be reduced as follows
percentage of ordinary shares
growth in adjusted eps in previous financial year in annual tranche which vest
no less than 6 but less than 7 20
no less than 7 but less than 8 40
no less than 8 but less than 9 60
no less than 9 but less than 10 80
any shortfall in the percentage of ordinary shares under option vesting up to a maximum shortfall
of 40 will vest in the following year if the performance test is exceeded by an equivalent amount
in that year exercise of an option is subject to continued employment
mavinwood plc annual report and financial statements 2007 61
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 61 27 share based payments continued
options were valued using a stochastic model the fair value per option granted and the
assumptions used in the calculation are as follows
25 april 16 october 17 march 30 june 
grant date 2007 2006 2006 2005
share price at grant date 1775p 1425p 1475p 862p
exercise price 1867p 1500p 1454p 840p
number of employees 34 27 33 2
share options granted 5960920 7124113 11050996 2987500
vesting period years 3333
expected volatility 29 32 35 39
option life years 10 10 10 10
expected life years 5555
risk free rate 537 488 442 406
expected dividends expressed 
as a dividend yield 0 0 0 0
fair value per option 607p 497p 577p 356p
the total fair value of options issued in the year was £361827 2006 £991710 the volatility is
measured by calculating the standard deviation of the natural logarithm of share price movements
given the lack of past option data for the company an expected term of five years has been used
as a typical span for a ten year option scheme a reconciliation of option movements over the year
to 31 december 2007 are
share option scheme
2007 2006
weighted weighted 
average average 
number exercise price number exercise price
outstanding at 1 january 18888676 1374p 2987500 840p
granted 5960920 1775p18175109 1472p
lapsed 2759468 1477p 2273933 1454p
exercised ––––
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
outstanding at 31 december 22090128 1505p 18888676 1374p
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
exercisable at 31 december ––––
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
mavinwood plc annual report and financial statements 2007 62
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 62 27 share based payments continued
long term incentive plan
the mavinwood long term incentive plan “ltip” was introduced in may 2005 awards under the
ltip comprise options to acquire ordinary shares at nominal value which will be subject to
performance targets a participant granted an option under the ltip will be required to make a
payment of 01p per ordinary share on exercise of the option awards are first exercisable five years
after issue subject to attainment of performance targets the company has made four awards to date
the performance test to be applied to all awards made to the directors comprises two components
the ordinary shares under the awards will vest in three equal tranches subject to satisfaction of
either of two tests each year in respect of each tranche the first test being of growth in earnings per
share “eps” and the second of total shareholder return “tsr”
the first test is that the average annual compounded growth in the company’s eps exceeds the
performance target percentage established at inception for the three periods each beginning 1
january and ending on 31 december three years four years and five years later respectively
the second performance test is based on the company’s tsr that is share price growth plus
reinvested dividends measured over the specified periods commencing on issue date as shown in the
table below
years following award tsr
3 70
4 85
5 100
in the event that neither of the relevant performance targets is met in relation to each tranche of the
ltip award that tranche of the award shall lapse exercise of an option is subject to continued
employment options were valued using a stochastic model the fair value per option granted and
the assumptions used in the calculation are
25 april 16 october 23 march 30 june 
grant date 2007 2006 2006 2005
share price at grant date 1775p 1425p 1475p 862p
exercise price 010p 010p 010p 010p
number of employees 7553
share options granted 7540000 11618282 20656718 5975000
vesting period years 3333
expected volatility 29 32 35 39
option life years 10 10 10 10
expected life years 35 35 35 35
risk free rate 537  547 488  495 442  444 401  406
expected dividends expressed as a 
dividend yield 0 0 0 0
fair value per option 1650p 1417p 1466p 853p
mavinwood plc annual report and financial statements 2007 63
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 63 27 share based payments continued
the volatility is measured by calculating the standard deviation of the natural logarithm of share
price movements given the lack of past option data for the company an expected term of five years
has been used as a typical span for a ten year option scheme a reconciliation of option movements
over the year to 31 december 2007 are
2007 2006
weighted weighted 
average average 
number exercise price number exercise price
outstanding at 1 january 38250000 010p 5975000 010p
granted 7540000010p32275000 010p
lapsed 1480000 010p – –
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
outstanding at 31 december 44310000 010p 38250000 010p
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
exercisable at 31 december ––––
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
the total share based payments charge in the consolidated income statement is £1892000 2006
£1039000
28 directors and employees
year ended year ended
31 december 31 december 
2007 2006
£’000 £’000
staff costs during the year were as follows
wages and salaries 22906 11907
social security costs 2377 1151
pension costs 194 127
–––––––––––– ––––––––––––
25477 13185
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
year ended year ended
31 december 31 december 
2007 2006
number number
the average number of employees during the year was
directors 5 5
administration 412 220
operatives 635 270
–––––––––––– ––––––––––––
1052 495
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
the total number of employees in the group at 31 december 2007 was 1262 people 2006 880
people
mavinwood plc annual report and financial statements 2007 64
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 64 28 directors and employees continued
year ended year ended
31 december 31 december 
2007 2006
£’000 £’000
the total amounts for directors’ remuneration and other benefits 
was as follows
emoluments for directors’ services 886 623
pension costs for directors 20 12
–––––––––––– ––––––––––––
total directors’ emoluments 906 635
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
directors’ remuneration shown above included the following amounts
salary 288 228
benefits 10 9
pension 20 12
–––––––––––– ––––––––––––
payable in respect of the highest paid director 318 249
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
key management compensation
salary including bonus 2746 1785
pension costs 82 81
other benefits 205 155
–––––––––––– ––––––––––––
3033 2021
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
the key management of the group are management attending board meetings within each division
29 leasing commitments
2007 2006
£’000 £’000
the total commitment under noncancellable operating leases 
was as follows
operating leases which expire
– within one year 477 144
– within two to five years 5768 4175
– over five years 11876 9060
–––––––––––– ––––––––––––
18121 13379
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
30 capital commitments
2007 2006
£’000 £’000
capital expenditure contracted for but not provided in the 
financial statements 14 65
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
mavinwood plc annual report and financial statements 2007 65
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 65 31 contingent liabilities
the company has entered into a bank cross guarantee with its subsidiaries the guarantee amounts
to £32337000 at 31 december 2007 2006 £19700000 the assets of the company and its
subsidiaries are pledged as security for the bank borrowings by way of a fixed and floating charge
32 related party transactions
during 2007 the company paid its principal shareholder geraldton services inc £nil 2006
£600000 in 2006 the amount represented fees for underwriting the issue of ordinary shares to fund
the acquisition of independent inspections
during the year mono services paid £107000 2006 £35667 in rent on its principal office building
to onom limited one of the directors of mono services is also a director of onom limited
similarly mono services paid £36749 2006 £35000 in respect of rent for another office building
to the trustees of mono services 2003 retirement benefit scheme a trust whose beneficiaries
include a director of mono services
none of these payments were outstanding at 31 december 2007
on 29 june 2007 the trade and assets of ansa training were sold to its management team at net
book value of £556000 note 13
the remuneration of key management personnel and details of the directors’ emoluments are
shown in note 28
in the opinion of the directors all the related party transactions were conducted at arm’s length
33 post balance sheet events
there were no significant post balance sheet events
34 explanation of transition to ifrs
the group’s financial statements for the year ended 31 december 2007 will be the first financial
statements that comply with international financial reporting standards ifrs the group’s
financial statements prior to and including 31 december 2006 had been prepared in accordance with
generally accepted accounting principles in the united kingdom uk gaap
the following disclosures are required in the year of transition under the provisions of ifrs 1 and
show the effects of the transition to ifrs on the group’s reported performance and financial
position for the comparative periods and on the date of transition the last financial statements
prepared under uk gaap were for the year ended 31 december 2006 and the date of transition to
ifrs is therefore 1 january 2006
first time adoption – exemptions in ifrs 1
the group has applied ifrs 1 – first time adoption of international financial reporting
standards to provide a starting point for reporting under ifrs the rules regarding transitional
arrangements are set out in ifrs 1 which generally requires full retrospective adoption of all
standards effective at the reporting date the primary ifrs exemptions the group has taken are
– business combinations that occurred prior to 1 january 2006 have not been restated
– the recognition of the expense of sharebased payments has not been restricted to those
awards which have not vested by 1 january 2006
mavinwood plc annual report and financial statements 2007 66
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp28pp66qxp  18308  1840  page 66 34 explanation of transition to ifrs continued
reconciliation of shareholders’ equity at 1 january 2006 
effects of restated
transition under
note uk gaap to ifrs ifrs
£’000 £’000 £’000
noncurrent assets
goodwill 31224 – 31224 
intangible assets b – 219 219 
property plant and equipment b 1996 219 1777 
–––––––––––– –––––––––––– ––––––––––––
33220 – 33220 
–––––––––––– –––––––––––– ––––––––––––
current assets
inventories 250 – 250 
trade and other receivables 5509 – 5509 
cash and cash equivalents 837 – 837 
–––––––––––– –––––––––––– ––––––––––––
6596 – 6596 
–––––––––––– –––––––––––– ––––––––––––
total assets 39816 – 39816 
–––––––––––– –––––––––––– ––––––––––––
current liabilities
trade and other payables 4511 – 4511
current tax liabilities 474 – 474
obligations under finance leases 175 – 175
bank overdrafts and loans 1433 – 1433
–––––––––––– –––––––––––– ––––––––––––
6593 – 6593
–––––––––––– –––––––––––– ––––––––––––
net current assets 3 – 3 
–––––––––––– –––––––––––– ––––––––––––
noncurrent liabilities
bank loans 3389 – 3389
deferred tax 142 – 142
provisions 2574 – 2574
obligations under finance leases 175 – 175
–––––––––––– –––––––––––– ––––––––––––
6280 – 6280
–––––––––––– –––––––––––– ––––––––––––
net assets 26943 – 26943 
–––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– ––––––––––––
shareholders equity
called up share capital 383 – 383 
share premium account 26459 – 26459 
share based payments reserve 85 – 85 
retained earnings 16 – 16 
–––––––––––– –––––––––––– ––––––––––––
total shareholders equity 26943 – 26943 
–––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– ––––––––––––
mavinwood plc annual report and financial statements 2007 67
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp67pp78qxp  18308  1841  page 67 34 explanation of transition to ifrs continued
reconciliation of shareholders equity at 31 december 2006
effects of restated
transition under
note uk gaap to ifrs ifrs
£’000 £’000 £’000
noncurrent assets
goodwill a 52418 2665 49753
intangible assets ab – 9070 9070 
property plant and equipment b 11084 258 10826 
deferred tax asset c – 8 8
–––––––––––– –––––––––––– ––––––––––––
63502 6155 69657 
–––––––––––– –––––––––––– ––––––––––––
current assets
inventories 311 – 311 
trade and other receivables 13369 – 13369 
cash and cash equivalents 1850 – 1850 
–––––––––––– –––––––––––– ––––––––––––
15530 – 15530 
–––––––––––– –––––––––––– ––––––––––––
total assets 79032 6155 85187 
–––––––––––– –––––––––––– ––––––––––––
current liabilities
trade and other payables 11114 – 11114
current tax liabilities 1969 – 1969
obligations under finance leases 109 – 109
bank overdrafts and loans 3600 – 3600
–––––––––––– –––––––––––– ––––––––––––
16792 – 16792
–––––––––––– –––––––––––– ––––––––––––
net current liabilities 1262 – 1262 
–––––––––––– –––––––––––– ––––––––––––
noncurrent liabilities
bank loans 15790 – 15790
deferred tax c 8 3993 3985
provisions 4383 – 4383
–––––––––––– –––––––––––– ––––––––––––
20165 3993 24158
–––––––––––– –––––––––––– ––––––––––––
net assets 42075 2162 44237
–––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– ––––––––––––
shareholders equity
called up share capital 503 – 503 
share premium account 40060 – 40060 
share based payments reserve 1102 – 1102 
retained earnings d 410 2162 2572 
–––––––––––– –––––––––––– ––––––––––––
total shareholders equity 42075 2162 44237
–––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– ––––––––––––
mavinwood plc annual report and financial statements 2007 68
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp67pp78qxp  18308  1841  page 68 34 explanation of transition to ifrs continued
notes to the reconciliation of shareholders equity
a goodwill and intangible assets
the group has elected not to apply ifrs 3 ‘business combinations’ retrospectively to
business combinations that took place before 1 january 2006 the group has adopted ifrs
3 ‘business combinations’ in full for all acquisitions that have occurred after this date this
has resulted in the recognition of net additional intangible fixed assets of £8812000 after
amortisation of intangible assets of £10000 at 31 december 2006
the adjustment in goodwill and intangible assets at 31 december 2006 comprises
intangible
goodwill assets
£’000 £’000
goodwill written back 2172 –
wansdyke deferred tax on property revaluation 1515 –
wansdyke existing customer relationships 2865 2865
independent inspections existing customer relationships 2700 2700
independent inspections applications software and website 61 61
mono services existing customer relationships 3097 3097
mono services applications software and website 99 99
deferred tax on existing customer relationships applications 
software and website 2470 –
application software transfer – 258
amortisation of intangible assets – 10
–––––––––––– ––––––––––––
2665 9070
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
under uk gaap the intangible fixed assets would have been recognised in goodwill the
amortisation would have been £2172000 in the year ended 31 december 2006
b software classification
application software which can be run independently from any specific hardware
configuration is included within intangibles under ifrs rather than tangible assets as is the
norm under uk gaap the effect of this is to reclassify software of £219000 at january
2006 and £258000 at december 2006 from tangible assets to intangible assets total net
assets remain unchanged by this adjustment
c deferred tax 
a tax timing difference of £1515000 has been recognised in respect of revaluation of
properties acquired in february 2006 via the acquisition of wansdyke securities limited
a deferred tax liability on the intangible assets adjustments has been recognised of
£2470000 at 31 december 2006
d retained earnings
the group has elected not to apply ifrs 3 ‘business combinations’ retrospectively to
business combinations that took place before 1 january 2006 the retained earnings have
been restated due to the removal of goodwill of £2172000 at 31 december 2006 and
amortisation of intangible assets of £10000 at 31 december 2006
mavinwood plc annual report and financial statements 2007 69
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp67pp78qxp  18308  1841  page 69 34 explanation of transition to ifrs continued
reconciliation of consolidated income statement for the year ended 31 december 2006
effects of
transition
uk gaap to ifrs ifrs
note £’000 £’000 £’000
continuing operations
revenue 42453 – 42453 
cost of sales 26200 – 26200
–––––––––––– –––––––––––– ––––––––––––
gross profit 16253 – 16253 
administrative expenses e 13228 2162 11066
–––––––––––– –––––––––––– ––––––––––––
operating profit 3025 2162 5187 
finance costs 82 – 82 
investment income 1518 – 1518
–––––––––––– –––––––––––– ––––––––––––
profit before tax 1589 2162 3751 
tax 1195 – 1195
–––––––––––– –––––––––––– ––––––––––––
profit for the year 394 2162 2556
–––––––––––– –––––––––––– ––––––––––––
earnings per share pence
basic 010p 056p 066p
–––––––––––– –––––––––––– ––––––––––––
diluted 009p 050p 059p
–––––––––––– –––––––––––– ––––––––––––
notes to the reconciliation of the consolidated income statement
e acquisitions 
the group has elected not to apply ifrs 3 ‘business combinations’ retrospectively to business
combinations that took place before 1 january 2006 the group has adopted ifrs 3 ‘business
combinations’ in full for all acquisitions that have occurred after this date under uk gaap the
intangible fixed assets would have been recognised in goodwill the amortisation was £2172000 in
the year ended 31 december 2006 as a result of reclassifying intangible assets from goodwill
amortisation of intangible assets of £10000 has been charged in the year ended 31 december 2006
explanation of material adjustments to the statement of cash flows
there are no significant adjustments between the cash flow statements produced under ifrs as
against uk gaap 
mavinwood plc annual report and financial statements 2007 70
mavinwood plc
notes to the financial statements
for the year ended 31 december 2007
211679pp67pp78qxp  18308  1841  page 70 note 2007 2006
£’000 £’000
fixed assets
tangible fixed assets 35 7 –
investments 36 71865 63077
–––––––––––– ––––––––––––
71872 63077
current assets
debtors 37 14116 5585 
cash at bank – 75 
–––––––––––– ––––––––––––
14116 5660 
creditors amounts falling due within one year 38 6996 4143
–––––––––––– ––––––––––––
net current assets 7120 1517
creditors amounts falling due after more
than one year 39 29244 17082
provisions for liabilities and charges 41 3042 4102
–––––––––––– ––––––––––––
net assets 46706 43410
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
capital and reser ves
called up share capital 42 512 503 
share premium account 43 41951 40060 
share based payments reserve 44 2994 1102 
profit and loss account 45 1249 1745 
–––––––––––– ––––––––––––
equity shareholders’ funds 46 46706 43410
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
these financial statements were approved by the board of directors and authorised for issue on 12 march
2008 and were signed on its behalf by
philip reid mike vincent 
director director 
mavinwood plc annual report and financial statements 2007 71
mavinwood plc
company balance sheet
at 31 december 2007
211679pp67pp78qxp  18308  1841  page 71 these financial statements for the company have been prepared under the historical cost convention and
in accordance with the companies act 1985 and applicable accounting standards in the united kingdom
uk gaap the directors consider that the accounting policies set out below are suitable are supported
by reasonable judgements and estimates and have been consistently applied except where stated below the
going concern basis has been applied in these accounts a summary of the more important accounting
policies is set out below
in the company’s financial statements dividends received and receivable are credited to the company’s
profit and loss account in accordance with section 2304 of the companies act 1985 the company is
exempt from the requirement to present its own profit and loss account the result for the financial year of
the company is disclosed in note 45 to these financial statements
investments
the company’s investment in shares in group companies are stated at cost less provision for impairment
long term investments representing interests in subsidiary undertakings are stated at cost less any provision
for impairment in the value of the fixed asset investment
tangible fixed assets
the costs of tangible fixed assets are stated at their purchase price together with any incidental expenses of
acquisition depreciation is calculated so as to write off the cost of tangible fixed assets less their estimated
residual values on a straight line basis over the expected useful economic lives of the assets concerned the
principal life used for this purpose is three years
deferred taxation
deferred taxation is recognised in respect of timing differences which have originated but not reversed at the
balance sheet date deferred tax assets are recognised when their recovery is assessed as more likely than not
deferred tax assets and liabilities are not discounted
borrowings
all borrowings are initially stated at the fair value of the consideration received after deduction of issue
costs issue costs together with other finance costs are charged to the profit and loss account over the period
of the term of the borrowings at a constant rate or more quickly if appropriate accrued finance charges
are added to and issue costs are deducted from the carrying value of those borrowings
financial instruments
the company has periodically used derivative instruments to manage its interest rate exposure derivatives
are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re
measured at fair value the method of recognising the resulting gain or loss depends on whether the
derivative is designated as a hedging instrument and if so the nature of the item being hedged
share based payments
the cost of providing share based payments to employees is charged to the income statement over the
vesting period of the related share options or share allocations the cost is based on the fair value of the
options and shares allocated determined using the monte carlo pricing model which is appropriate given
the vesting and other conditions attached to the options the value of the charge is adjusted at each balance
sheet date to reflect expected and actual levels of vesting
provisions
provisions are recognised when the group has a present legal or constructive obligation as a result of past
events it is probable that an outflow of resources will be required to settle the obligation and a reliable
estimate of the amount can be made if the effect is material provisions are determined by discounting the
expected future cash flows at an appropriate pretax discount rate
mavinwood plc annual report and financial statements 2007 72
mavinwood plc
company accounting policies
for the year ended 31 december 2007
211679pp67pp78qxp  18308  1841  page 72 35 tangible fixed assets
office equipment
fixtures  fittings
£’000
cost
at 1 january 2007 –
additions 9
–––––––––––––––––––
31 december 2007 9
–––––––––––––––––––
–––––––––––––––––––
accumulated depreciation
at1 january 2007 –
charged in the year 2
–––––––––––––––––––
31 december 2007 2
–––––––––––––––––––
–––––––––––––––––––
net book value
31 december 2007 7
–––––––––––––––––––
–––––––––––––––––––
net book value
31 december 2006 –
–––––––––––––––––––
–––––––––––––––––––
36 investments
shares in subsidiary
undertakings
£’000
1 january 2007 63077
contingent consideration adjustment – independent inspections 3345
mono services 62
document control services 3364
peter cox 8396
capital contribution – subsidiary share based payments 311
–––––––––––––––––––
31 december 2007 71865
–––––––––––––––––––
–––––––––––––––––––
impairment
1 january 2007 and 31 december 2007 –
–––––––––––––––––––
–––––––––––––––––––
net book value 
31 december 2007 71865
–––––––––––––––––––
–––––––––––––––––––
net book value 
31 december 2006 63077
–––––––––––––––––––
–––––––––––––––––––
mavinwood plc annual report and financial statements 2007 73
mavinwood plc
notes to the company balance sheet
for the year ended 31 december 2007
211679pp67pp78qxp  18308  1841  page 73 36 investments continued
at 31 december 2007 the company held directly and indirectly equity and voting rights of the
following undertakings
class of proportion country of
company holding held incorporation nature of business
emergency repair division
 ansa holdings limited ordinary 100 great britain drainage service to the
insurance claims industry
ansa group limited ordinary 100 great britain provision of drainage
services
ansa utilities limited ordinary 100 great britain provision of drainage
services
ansa surveying limited ordinary 100 great britain provision of drainage
services
ansa training limited ordinary 100 great britain dormant
ansa uk limited ordinary 100 great britain management of drainage
related claims on behalf
of clients
external services group ordinary 100 great britain provision of drainage
limited services
environmental plant ordinary 100 great britain dormant
solutions limited
environmental solutions ordinary 100 great britain provision of drainage 
northern limited services
 independent inspections ordinary 100 great britain holding company
holdings limited
independent inspections ordinary 100 great britain provision of flooring 
limited survey services
 mono services limited ordinary 100 great britain provision of repair
services
 peter cox limited ordinary 100 great britain provision of damp course
water damage and timber
damage treatment services
document handling division
 restore group holdings ordinary 100 great britain document storage and
limited record management
restore limited ordinary 100 great britain document storage and
record management
 stapledon holdings ordinary 100 great britain holding company
limited
document control ordinary 100 great britain provision of value added
services limited scanning
 wansdyke security ordinary 100 great britain document storage and 
limited record management
wansdyke 1 limited ordinary 100 great britain dormant
wansdyke 2 limited ordinary 100 great britain dormant
  held directly
mavinwood plc annual report and financial statements 2007 74
mavinwood plc
notes to the company balance sheet
for the year ended 31 december 2007
211679pp67pp78qxp  18308  1841  page 74 37 debtors
2007 2006
£’000 £’000
due within one year
amounts due from group undertakings 1226 795 
other debtors 28 11 
prepayments and accrued income 115 18 
–––––––––––– ––––––––––––
1369 824 
–––––––––––– ––––––––––––
due after more than one year
amounts due from group undertakings 12747 4761 
–––––––––––– ––––––––––––
12747 4761 
–––––––––––– ––––––––––––
total 14116 5585
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
38 creditors amounts falling due within one year
2007 2006
£000 £000
bank overdraft 337 –
bank loans 4000 3600
trade creditors 158 42
amounts due to group undertakings 591 44 
other taxation and social security 49 51 
other creditors 935 209
accruals and deferred income 926 197
–––––––––––– ––––––––––––
6996 4143 
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
39 creditors amounts falling due after more than one year
2007 2006
£000 £000
bank loans 28000 16100 
deferred financing costs 357 310
amounts due to group undertakings 1601 1292 
–––––––––––– ––––––––––––
29244 17082 
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
amounts falling due
after one and within two years 8000 3600 
between two years and five years 21244 13482 
–––––––––––– ––––––––––––
29244 17082 
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
the bank debt is due to allied irish banks plc and fortis bank sanv uk branch and is secured
by a fixed and floating charge over the assets of the group interest was charged at 225 over
libor
mavinwood plc annual report and financial statements 2007 75
mavinwood plc
notes to the company balance sheet
for the year ended 31 december 2007
211679pp67pp78qxp  18308  1841  page 75 40 debt analysis of net debt
at at 
1 january noncash 31 december 
2007 cash flow movement 2007
£’000 £’000 £’000 £’000
cash at bank and in hand 75 412 – 337
bank loans due within 
one year 3600 400 – 4000
bank loans due after 
one year 16100 11900 – 28000
deferred financing costs 310 192 145 357
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
19315 12520 145 31980
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– –––––––––––– ––––––––––––
the noncash movement relates to the amortisation of the deferred financing costs
41 provisions for liabilities and charges
contingent
consideration deferred tax total
£’000 £’000 £’000
1 january 2007 4383 281 4102 
settlement of mono services contingent consideration 1000 – 1000
adjustment to mono services 40 – 40
reduction in investment in independent inspections 3353 – 3353
contingent consideration on restore 83 – 83
discounted contingent consideration on dcs 1777 – 1777
contingent consideration on peter cox 1050 – 1050
notional interest on contingent consideration 62 – 62
charge to the profit and loss account – 281 281
–––––––––––– –––––––––––– ––––––––––––
31 december 2007 3042 – 3042
–––––––––––– –––––––––––– ––––––––––––
–––––––––––– –––––––––––– ––––––––––––
further details of the contingent consideration are given in note 20 to the consolidated financial
statements
42 share capital
2007 2006
£000 £000
authorised
9950000000 ordinary shares of 01p each 9950 9950
50000000 convertible a shares of 01p each 50 50
–––––––––––– ––––––––––––
10000 10000
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
allotted issued and fully paid
462417811 2006 332896474 ordinary shares of 01p each 462 453
50000000 2006 50000000 convertible a shares of 01p each 50 50
–––––––––––– ––––––––––––
512 503
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
mavinwood plc annual report and financial statements 2007 76
mavinwood plc
notes to the company balance sheet
for the year ended 31 december 2007
211679pp67pp78qxp  18308  1841  page 76 42 share capital continued
the issued share capital has been increased in 2007 as follows
number of
date shares issue price
1 january 2007 452512406
27 march 2007 5405405 185p
11 october 2007 4500000 200p
––––––––––––––
total shares issued in 2007 9905405
––––––––––––––
31 december 2007 462417811
––––––––––––––
––––––––––––––
the a shares become convertible into a number of ordinary shares with an aggregate value
equivalent to 15 percent of the increase in shareholder value for this purpose shareholder value is
broadly defined as the difference between the market capitalisation of the company at the relevant
conversion date and the aggregate value of all ordinary shares issued up to the date of conversion
subject to certain provisions contained in the articles the a shares become convertible at the
election of each holder of the a shares after 5 november 2007 or on a takeover of the company
into ordinary shares the a shares cease to be convertible from the fifth anniversary of admission
that is 5 november 2009
the a shares are nonvoting and are entitled to dividends as if they had been converted on the
relevant record date
43 share premium account
2007 2006
£’000 £’000
1 january 40060 26459 
premium on shares issued during the year 1891 14255 
share issue costs – 654
–––––––––––– ––––––––––––
31 december 41951 40060 
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
44 share based payments reser ve
2007 2006
£’000 £’000
1 january 1102 85 
charge for the year 1892 1017 
–––––––––––– ––––––––––––
31 december 2994 1102 
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
details of the share options and ltip’s in issue are shown in note 27 to the consolidated financial
statements
mavinwood plc annual report and financial statements 2007 77
mavinwood plc
notes to the company balance sheet
for the year ended 31 december 2007
211679pp67pp78qxp  18308  1841  page 77 45 retained earnings
2007 2006
£’000 £’000
1 january 1745 290
lossprofit for the year 496 2035
–––––––––––– ––––––––––––
31 december 1249 1745
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
the company has taken advantage of section 230 of the companies act 1985 and has not included
its own profit and loss account in these financial statements the company’s loss for the financial
year was £496000 2006 profit £2035000
46 reconciliation of movement in shareholders’ funds
2007 2006
£’000 £’000
lossprofit for the financial year 496 2035 
issue of shares 1900 14375 
issue costs – 654
share based payments charge 1892 1017 
–––––––––––– ––––––––––––
net addition to shareholders’ funds 3296 16773 
opening shareholders’ funds 43410 26637 
–––––––––––– ––––––––––––
closing shareholders’ funds 46706 43410
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
47 leasing commitments
the annual commitment under noncancellable operating leases was as follows
2007 2006
£’000 £’000
operating leases which expire
– within two to five year 14 13
–––––––––––– ––––––––––––
–––––––––––– ––––––––––––
48 contingent liabilities
the company has entered into a bank cross guarantee with its subsidiaries the guarantee amounts
to £32337000 at 31 december 2007 2006 £19700000 the assets of the company and its
subsidiaries are pledged as security for the bank borrowings by way of a fixed and floating charge
49 parent undertaking
the directors consider geraldton services inc to be the parent and controlling party
mavinwood plc annual report and financial statements 2007 78
mavinwood plc
notes to the company balance sheet
for the year ended 31 december 2007
211679pp67pp78qxp  18308  1841  page 78 year ended 31 december 2007 2006 2005
3
2004
3
£’000 £’000 £’000 £’000
revenue 68153 42453 15264 –
profit before amortisation of intangible assets
share based payments charge notional interest
on contingent consideration and taxation 7289 5044 1495 81
profit before taxation 5047 3751 528
2
85
2
basic earnings per share 056p 066p 005p
2
252p
2
fully diluted adjusted earnings per share 096p 081p 053p 036p
1
net debtcash 30917 17649 4355 1969
net assets 50613 44237 26943 1913
1  proforma for 2004
2  restated for frs 20 share based payments charge
3  uk gaap results
mavinwood plc annual report and financial statements 2007 79
mavinwood plc
trading record
211679pp79pp85qxp  18308  1841  page 79 notice is hereby given that the annual general meeting of the company will be held at 33 st james’s
square london sw1y 4js on 30 april 2008 at 12 noon for the following purposes
ordinary business
1 to receive the company’s annual accounts for the financial period ended 31 december 2007 together
with the directors’ report and the auditors’ report on those accounts
2 to reappoint baker tilly uk audit llp as the auditors of the company to hold office from the
conclusion of the meeting until the conclusion of the next annual general meeting of the company
3 to authorise the directors to fix the auditors’ remuneration
4 to reelect kevin mahoney as a director of the company who retires by rotation in accordance with
the articles of association of the company
5 to reelect mike vincent as a director of the company who retires by rotation in accordance with the
articles of association of the company
6 to elect robert brown guthrie in accordance with the articles of association of the company
special business
to consider and if thought fit to pass the following resolutions which will be proposed in the case of
resolution 7 as an ordinary resolution and in the case of resolution 8 and 9 as special resolutions
7 that in substitution for all existing authorities the directors be generally and unconditionally
authorised in accordance with section 80 of the companies act 1985 “the act” to exercise all the
powers of the company to allot relevant securities within the meaning of that section up to an
aggregate nominal amount of £154139 for a period expiring 5 years after the date of the passing of
this resolution but the company may before such expiry make an offer or agreement which would or
might require relevant securities to be allotted after expiry of this authority and the directors may allot
relevant securities in pursuance of that offer or agreement as if the authority conferred by this
resolution had not expired
8 that subject to and conditional upon the passing of resolution 7 the directors be and they are hereby
empowered pursuant to section 95 of the act to allot equity securities as defined in section 94 of the
act for cash pursuant to the authority conferred by resolution 7 as if section 891 of the act did not
apply to any such allotment provided that this power shall be limited to
a the allotment of equity securities in connection with a rights issue or other pro rata offer in favour
of holders of ordinary shares where the equity securities respectively attributable to the interests
of all the ordinary shareholders are proportionate as nearly as may be to the respective numbers
of equity securities held by them subject in each case to such exclusions or other arrangements as
the directors may consider necessary or expedient to deal with fractional entitlements or legal or
practical difficulties under the laws of any territory or the requirements of a regulatory body in
any territory or otherwise and
b the allotment otherwise than pursuant to subparagraph a above of equity securities up to an
aggregate nominal amount of £46241
and shall expire on the date preceding the fifth anniversary of the date of the passing of this resolution
except that the company may before such expiry make an offer or agreement which would or might
require equity securities to be allotted after such expiry and the directors may allot securities in
pursuance of such offer or agreement as if the power conferred by this resolution had not expired
mavinwood plc annual report and financial statements 2007 80
mavinwood plc
notice of annual general meeting
for the year ended 31 december 2007
211679pp79pp85qxp  18308  1841  page 80 9 that the regulations contained in the printed document produced to the meeting be and are hereby
adopted as the articles of association of the company in substitution for the existing articles of
association of the company
by order of the board
registered office
mike vincent lacon house
company secretary theobald’s road
12 march 2008 london wc1x 8rw
notes these notes are important and require your immediate attention
1 a member entitled to attend and vote at the meeting is entitled to appoint one or more proxies to exercise all or any of
his rights to attend speak and vote at the meeting a member can appoint more than one proxy in relation to the meeting
provided that each proxy is appointed to exercise the rights attaching to different shares held by the member a proxy
need not be a member of the company
2 a form of proxy is enclosed with this notice to be effective a form of proxy must be completed signed and deposited
with the company’s registrar at the address on the form of proxy not less than 48 hours before the time for holding the
meeting depositing a completed form of proxy will not preclude a member from attending the meeting and voting in
person
3 in accordance with section 325 of the companies act 2006 “2006 act” the right to appoint proxies does not apply to
persons nominated to receive information rights under section 146 of the 2006 act any person to whom this notice is
sent who is a person nominated under section 146 of the 2006 act to enjoy information rights a “nominated person”
may under an agreement between himher and the shareholder by whom heshe was nominated have a right to be
appointed or to have someone else appointed as a proxy for the annual general meeting if a nominated person has
no such proxy appointment right or does not wish to exercise it heshe may under any such agreement have a right to
give instructions to the shareholder as to the exercise of voting rights
4 pursuant to regulation 41 of the uncertified securities regulations 2001 to be entitled to attend and vote at the annual
general meeting and for the purposes of the determination by the company of the number of votes they may cast
members must be entered on the company’s register of members by 600 pm on 28 april 2008 changes to entries on
the register of members after 600 pm on 28 april 2008 shall be disregarded in determining the rights of any person to
attend or vote at the meeting
5 crest members who wish to appoint a proxy or proxies through the crest electronic proxy appointment service may
do so for the meeting and any adjournments thereof by using the procedures described in the crest manual to
appoint a proxy or to give or amend an instruction to a previously appointed proxy via the crest system the crest
message must be received by the issuer’s agent ra10 by 12 noon 28 april 2008 in order for a proxy appointment or
instruction made using the crest service to be valid the appropriate crest message must be properly authenticated
in accordance with euroclear uk  ireland limited specifications and must contain the information required for such
instructions as required in the crest manual for this purpose the time of receipt will be taken to be the time as
determined by the timestamp applied to the message by the crest applications host from which the issuer’s agent is
able to retrieve the message after this time any change of instructions to a proxy appointed through crest should be
communicated to the proxy by other means crest personal members or other crest sponsored members and those
crest members who have appointed voting service providers should contact their crest sponsor or voting service
providers for assistance with appointing proxies via crest for further information on crest procedures
limitations and system timings please refer to the crest manual we may treat as invalid a proxy appointment sent by
crest in the circumstances set out in regulation 355 a of the uncertificated securities regulations 2001 in any
case your proxy form must be received by the company’s registrars no later than 12 noon 28 april 2008
6 in order to facilitate voting by corporate representatives at the meeting arrangements will be put in place at the meeting
so that i if a corporate shareholder has appointed the chairman of the meeting as its corporate representative to vote
on a poll in accordance with the directions of all of the other corporate representatives for that shareholder at the
meeting then on a poll those corporate representatives will give voting directions to the chairman and the chairman will
vote or withhold a vote as corporate representative in accordance with those directions and ii if more than one
corporate representative for the same corporate shareholder attends the meeting but the corporate shareholder has not
mavinwood plc annual report and financial statements 2007 81
mavinwood plc
notice of annual general meeting
for the year ended 31 december 2007
211679pp79pp85qxp  18308  1841  page 81 appointed the chairman of the meeting as its corporate representative a designated corporate representative will be
nominated from those corporate representatives who attend who will vote on a poll and the other corporate
representatives will give voting directions to that designated corporate representative corporate shareholders are
referred to the guidance issued by the institute of chartered secretaries and administrators on proxies and corporate
representatives wwwicsaorguk for further details of this procedure the guidance includes a sample form of
appointment letter if the chairman is being appointed as described in i above
7 copies of the following documents will be available for inspection at the company’s registered office during normal
working hours on any week day saturdays sundays and public holidays excepted from the date of this notice until the
date of the annual general meeting and at the place of the annual general meeting for 15 minutes prior to and during
the meeting
a the register of directors’ interests in shares of the company
b copies of all service agreements under which the directors of the company are employed by the company and
c a copy of the proposed new articles of association of the company marked to show the changes proposed
pursuant to resolution 9 to the existing articles of association
8 explanatory notes relating to the changes to the articles of association proposed by resolution 9 are set out on pages 83
to 85
mavinwood plc annual report and financial statements 2007 82
mavinwood plc
notice of annual general meeting
for the year ended 31 december 2007
211679pp79pp85qxp  18308  1841  page 82 explanatory notes of principal changes to the
company’s articles of association
the companies act 2006 the “2006 act” is being implemented in stages and will be fully in force by 1
october 2009 under resolution 9 it is proposed that the company adopts new articles of association
“new articles” in order to update the company’s current articles of association “current articles” the
new articles will reflect the changes in company law brought about by the 2006 act which are already in
force or which are to come into effect on or before 1 october 2008 a detailed explanation of the principal
changes proposed to the current articles is set out below the new articles showing all the changes to the
current articles are available for inspection as set out at note 7 to the enclosed notice of annual general
meeting
1 form of resolution
the current articles contain a provision that where for any purpose an ordinary resolution is
required a special or extraordinary resolution is also effective and that where an extraordinary
resolution is required a special resolution is also effective this provision is being amended as the
concept of extraordinary resolutions has not been retained under the 2006 act and all references to
‘extraordinary resolutions’ have been amended to ‘special resolutions’
the current articles enable members to act by written resolution under the 2006 act public
companies can no longer pass written resolutions these provisions have therefore been removed in
the new articles
2 convening general meetings
the provisions in the current articles dealing with the convening of general meetings and the length
of notice required to convene general meetings are being amended to conform to the new provisions
in the 2006 act in particular a general meeting to consider a special resolution can be convened on
14 days’ notice whereas previously 21 days’ notice was required
3 quorum at general meetings
the current articles provide that two persons entitled to vote each being a member or a proxy for
a member constitute a quorum this provision is being amended to provide that duly authorised
representatives of a corporation which is a shareholder count towards the quorum of a general
meeting and that two persons who are proxies or corporate representatives of the same member
shall be a quorum
4 votes of members
under the 2006 act proxies are entitled to vote on a show of hands as well as on a poll and
members may appoint a proxy to exercise all or any of their rights to attend speak and vote at
meetings multiple proxies may be appointed provided that each proxy is appointed to exercise the
rights attached to a different share or shares the new articles reflect these new proxy rights the
2006 act also provides for multiple corporate representatives to be appointed and the new articles
therefore refer to the right to appoint multiple corporate representatives the provision giving the
chairman a casting vote in the case of an equality of votes has been retained as the government has
made it clear that although the 2006 act does not provide for the chairman to have a casting vote
companies who previously had such a provision in their articles may continue to do so
the directors may also specify in a notice of meeting that in determining the time for delivery of
proxies no account shall be taken of nonworking days
mavinwood plc annual report and financial statements 2007 83
mavinwood plc
notice of annual general meeting
for the year ended 31 december 2007
211679pp79pp85qxp  18308  1841  page 83 5 refusal to register transfers
the provision relating to the right to refuse to register a transfer of any share has been updated to
bring it in line with section 771 of the 2006 act in particular the directors are now obliged to send
to the transferee such information about the reasons for refusal as the transferee may reasonably
request
6 omission to send notice
this provision has been amended so that omission to send notice due to circumstances beyond the
company’s control will not invalidate any resolution passed or proceedings held at the meeting for
which any person entitled to receive such notice did not receive it
7 amendment of resolutions
the wording of the provision detailing the methods by which resolutions may be amended has been
updated to bring the wording in line with the draft model form articles for public companies the
“model articles” of the department for business enterprise and regulatory reform the model
articles will replace the table a articles under the companies act 1985 in due course
8 age of directors on appointment
the current articles contain a provision requiring a director to seek reelection annually after he
has reached the age of 70 years such provision could now fall foul of the employment equality
age regulations 2006 and so has been removed from the new articles
9 directors’ fees
the current articles are unclear regarding the cap on the directors’ fees this has been clarified in
the new articles the aggregate cap on directors’ fees is £100000 per annum
10 conflicts of interest
the 2006 act sets out directors’ general duties which largely codify the existing law but with some
changes under the 2006 act from 1 october 2008 a director must avoid a situation where he has
or can have a direct or indirect interest that conflicts or may conflict with the company’s interests
the requirement is very broad and could apply for example if a director becomes a director of
another company or a trustee of another organisation the 2006 act allows directors of public
companies to authorise conflicts and potential conflicts where appropriate where the articles of
association contain a provision to this effect the 2006 act also allows the articles of association to
contain other provisions for dealing with directors’ conflicts of interest to avoid a breach of duty
the new articles give the directors authority to approve such situations and includes some conflict
management provisions regarding confidential information and a director’s ability to absent himself
from discussions
only directors who have no interest in the matter being considered will be able to take the relevant
decision the directors will also be able to impose limits or conditions when giving authorisation if
they think this is appropriate
it is also proposed that the new articles should contain provisions relating to confidential
information attendance at board meetings and availability of board papers to protect a director
being in breach of duty if a conflict of interest or potential conflict of interest arises these
provisions will only apply where the position giving rise to the potential conflict has previously been
authorised by the directors
mavinwood plc annual report and financial statements 2007 84
mavinwood plc
notice of annual general meeting
for the year ended 31 december 2007
211679pp79pp85qxp  18308  1841  page 84 11 records to be kept
the provision in the current articles requiring the board to keep accounting records has been
removed as this requirement is contained in the 2006 act
in addition the provision in the current articles requiring there to be a register of directors’
interests has been removed as this is no longer a requirement under the 2006 act
12 undelivered notices or documents
a provision in the new articles has been included which states that if on three consecutive
occasions a notice or other document or information sent to a shareholder or other person has
been returned undelivered such shareholder or other person shall not thereafter be entitled to
receive notices or other documents or information from the company until he has communicated
with the company and supplied in writing to the company’s registered office a new postal address
or an electronic address for the service of notices or other documents
13 directors’ indemnities and loans to fund expenditure
the 2006 act has in some areas widened the scope of the powers of the company to indemnify
directors and to fund expenditure incurred in connection with certain actions against directors in
particular a company that is a trustee of an occupational pension scheme can now indemnify a
director against liability incurred in connection with the company’s activities as trustee of the
scheme and also allow a company to indemnify directors of associated companies
14 indemnity against claims in respect of shares
the new articles contain a provision requiring a shareholder to indemnify the company if the law
of any jurisdiction imposes a liability on the company to make payment in respect of shares held
by or dividends or other monies paid to such shareholder for example as a consequence of the non
payment of income or inheritance tax
15 general
generally the opportunity has been taken to bring clearer language in the new articles and in some
areas to conform the language of the new articles
mavinwood plc annual report and financial statements 2007 85
mavinwood plc
notice of annual general meeting
for the year ended 31 december 2007
211679pp79pp85qxp  18308  1841  page 85 perivan financial print 211679
211679zimprintqxp  18308  1843  page 2 mavinwood plc
“the company”
registered in england – no 5169780
form of proxy for use at the annual general meeting
to be held on 30 april 2008
iwe 
name in full in block capitals please
of 

being a members of mavinwood plc appoints the chairman of the meeting see note 4 below

as myour proxy to vote for meus on myour behalf at the annual general meeting of the company to be
held on 30 april 2008 at 12 noon and at any adjournment of the meeting on the following resolutions as
indicated by an ‘x’ in the appropriate box and on any other resolutions as he thinks fit
signature  date 
notes
1 to be valid completed forms must be received at the office of the company’s registrars whose address appears overleaf by 12
noon on 28 april 2008 the form must be signed if someone else signed the form on your behalf you or that person must send
the power of attorney or other written authority under which it is signed to the address overleaf
2 a corporation must execute this form either under its common seal or under the hand of two directors or one director and the
secretary or under the hand of an officer or attorney duly authorised in writing
3 this form enables you to instruct your proxy how to vote on a show of hands or in the event of a poll on the resolutions to be
proposed at the meeting if you want your proxy to vote in a certain way on the resolutions specified please place an ‘x’ in the
relevant boxes if you select ‘discretionary’ or fail to select any of the given options your proxy can vote as he or she chooses or
can decide not to vote at all the proxy can also do this on any other resolution that is put to the meeting the ‘vote withheld’
option is provided to enable you to abstain on any particular resolution however it should be noted that a ‘vote withheld’ is not
a vote in law and will not be counted in the calculation of the proportion of the votes ‘for’ and ‘ against’ a resolution
4 the appointment of the chairman as proxy has been included for convenience if you wish to appoint any other person or
persons as proxy or proxies delete the words “the chairman of the meeting” and add the name and address of the proxy or
proxies appointed a proxy need not be a member of the company if you do not delete such words and you appoint a proxy
or proxies the chairman shall not be entitled to vote as proxy any alteration must be initialled if you appoint more than one
person to act as proxy the number of shares in respect of which each such proxy is to vote must be specified in the absence of
any specific direction a proxy shall be deemed to be entitled to vote in respect of all the shares in the relevant holding
5 in the case of joint holders the signature of any one holder will be sufficient but the names of all the joint holders should be
stated and the vote of the senior who tenders a vote whether in person or by proxy will be accepted to the exclusion of the votes
of the other joint holders for this purpose seniority will be determined by the order in which the names stand in the register of
members in respect of the shares
6 returning the form of proxy will not prevent you from attending the meeting and voting in person
7 shares held in uncertified form ie in crest may be voted through the crest proxy voting service in accordance with the
procedures set out in the crest manual
vote discret
resolution business for against withheld ionary
1 to receive the company’s annual accounts for the financial
period ended 31 december 2007 together with the
directors’ report and the auditor’s report on those accounts
2 to re appoint baker tilly uk audit llp as auditors
3 to authorise the directors to fix the auditors’ remuneration
4 to reelect kevin mahoney as a director
5 to reelect mike vincent as a director
6 to elect robert brown guthrie as a director
7 to authorise the directors to allot shares pursuant to
section 80 companies act 1985
8 to disapply section 891 companies act 1985
9 to adopt new articles of association
✃
211679proxyqxp  18308  1842  page 1 first fold
third fold and tuck in
second fold
business reply
licence number
mb122
capita registrars
proxy department
po box 25
beckenham
kent
br3 4br
211679proxyqxp  18308  1842  page 2 mavinwood plc
mavinwood plc
shareholder information
mavinwood is an aim quoted
company capitalised in excess of
£70m developing a uk based
support services business
the two areas that mavinwood is
specifically focussed on are
● emergency repair 
● document handling
financial calendar
annual general meeting held in april 
half year results september 
financial year end 31 december 
full year results mid march
company information
websites
wwwmavinwoodplccom – mavinwood plc corporate website providing
comprehensive group information investor relations information and links to its
subsidiaries’ websites which give full details of services provided
wwwansaltdcom – ansa website providing details about the company and
information regarding services offered
wwwindependentinspectionscouk – independent inspection’s website with
details of services and the company history
wwwmonoservicescouk – mono’s website providing details about the company
and their range of services offered
wwwpetercoxcom – peter cox’s website providing details of the company and
services offered
wwwrestorecouk – restore’s website providing details about the company and
services offered
wwwwansdykecouk – this comprehensive website provides company
information and a full range of services offered
wwwsapasolutionscom – document control service’s website providing details
about the company and services offered
wwwlondonstockexchangecomengbpricesnewsprices – the website for the
london stock exchange this will provide the latest stock process and company
announcements under the mavinwood stock code mvw 
211679 mavinwood coverqxp  19308  1213  page 2 mavinwood plc
annual report
and financial
statements 2007
w ansdyke
security ltd
mavinwood plc
locations
mavinwood plc head office
33 st james’s square london sw1y 4js
tel 020 7661 9378 – fax 020 7661 9400 – infomavinwoodplccom
ansa head office
ansa house aniseed park broadway business park chadderton
manchester ol9 9xa
tel 08456 880 880 – fax 08458 724 594 – infoansaltdcom
independent inspections limited 
6 fulwood park caxton road fulwood preston lancashire pr2 9nz
tel 01772 707 600 – fax 01772 700 067 – infoiigroupcouk
mono services limited 
aniseed park broadway business park chadderton manchester ol9 9xa
tel 0845 370 8999 – fax 0161 684 8305 – infomonoservicescouk
peter cox head office 
aniseed park broadway business park chadderton manchester ol9 9xa
tel 0845 222 0404 – fax 0161 684 8305 – headofficepetercoxcom
restore head office
the databank unit 2 redhill distribution centre salbrook road
redhill surrey rh1 5dy
tel 01293 446270 – fax 01293 446276 – inforestorecouk
wansdyke security head office
po box 179 corsham wiltshire sn13 9ya
tel 01225 810225 – fax 01255 810625 – saleswansdykecouk
document control services limited
10 stapledon road orton southgate peterborough pe2 6tb
tel 01733 366800 – fax 01733 366801  dcssapasolutionscouk
211679 mavinwood coverqxp  19308  1213  page 1


Summary:
 mavinwood plc annual report and financial statements 2007 5
mavinwood plc
dcs scanning operator
profit before tax
the profit before tax for the year ended 
31 december 2007 was £5047000 
2006 £3751000 however the directors
believe that an adjusted measure of profit
before tax and earnings per share provides
shareholders with a more appropriate
representation of the underlying earnings
derived from the mavinwood group’s
business the items adjusted for in arriving at
that underlying level are as follows
2007 2006
£000 £000
emergency repair 7152 4832
document handling 3886 2459
central costs 1439 969
share based payments
charge 1892 1039
amortisation of
intangible fixed assets 288 96
––––––––– –––––––––
operating profit 7419 5187
net finance costs 2372 1436
––––––––– –––––––––
profit before tax 5047 3751
amortisation of
intangible assets 288 96 
share based payments
charge 1892 1039
notional interest on
contingent consideration 62 158
––––––––– –––––––––
adjusted profit before tax 7289 5044
––––––––– –––––––––
––––––––– –––––––––
the key performance indicators of the business
which the board regularly reviews are
2007 2006
£’000 £’000
adjusted profit before tax 7289 5044
operating cash flow 
generation after capital 
expenditure 3104 3564
the non financial indicators that are
monitored are customer satisfaction and
retention and staff turnover ratios
the mavinwood group comprises two
divisions emergency repair and document
handling
emergency repair
2007 2006
£’000 £’000
sales
ansa independent
inspections and mono
services 51965 34515
peter cox 4232 –
––––––––– –––––––––
total 56197 34515
––––––––– –––––––––
––––––––– –––––––––
ebita
ansa independent
inspections and mono
services 6853 4832
peter cox 299 –
––––––––– –––––––––
total 7152 4832
––––––––– –––––––––
––––––––– –––––––––
 independent inspections five and a half months
and mono services four months in 2006
 peter cox three months in 2007
 excluding share based payments charge
the significant increase in sales and profit in
this division is principally due to the fact that
independent inspections and mono services
were only included for part of 2006 compared
to a full twelve months in 2007 the 2007
figures include peter cox for three months  
this division includes three businesses which
serve principally the insured repair sector
approximately 80 of sales in 2007 were to
leading insurance companies and we also
service a range of housing associations and
commercial companies peter cox currently
carries out little insurance work and most of
its sales leads come from referrals or
household directories
all four businesses share a common business
process which is
• take the emergency call from the
customer or via an insurer
• arrange a survey to validate or repudiate
the claim and cost out the repair
• undertake the repair either by directly
employed labour or sub contractors
ansa specialises in drainage surveys and
repair independent inspections in flooring
surveys and restoration and mono services in
building fabric surveys and repairs often due
to water damage  
chief
executive’s
review
211679pp04pp11qxp  18308  1909  page 5 mavinwood plc annual report and financial statements 2007 6
mavinwood plc
ansa independent inspections and peter cox
are national businesses and mono services is a
regional business in the north west  
there is some customer overlap between the
businesses but one of our opportunities
moving forward is to offer all our services to a
wider range of customers
all these businesses operate to high service
standards examples of customer satisfaction
measures that are monitored on a continuous
basis are
• response times in terms of contacting a
policyholder after they report an insured
event
• courtesy of staff and customer satisfaction
• average cost per claim
there are integration benefits to flow
between the businesses a range of
integration projects are underway including
• optimising the it platform across all the
operations
• purchasing initiatives 
• optimising back office functions
• reviewing marketing opportunities and
widening the service offering
as well as good organic growth within the
division we will continue to look for bolt on
acquisitions which would further enhance our
offering
turning to the highlights within each
operation
ansa
after a strong start to the year ansa’s volume
of insurance instructions dropped overall
comparing 2007 with calendar 2006 the heavy
flooding over the summer reduced the number
of blockages we needed to attend this wet
weather was then followed by one of the
driest autumns on record this had the effect
of reducing root ingress into the drains
without the build up of water a number of
householders would not have been aware their
drains were blocked right at the year end
december saw a sharp drop in volumes this
pattern was a feature of the whole drainage
industry in the second half of the year 
ansa did benefit from an improved mix of
business with an increased proportion of larger
jobs in 2007 
during january and february 2008 volumes of
instructions received from the insurers have
returned back to the levels seen during the
first half of 2007 
ansa has extended its drainage services to a
wider range of customers in the commercial
sector this is still a relatively small part of the
ansa business but after extensive trialling in
2007 we have national coverage and are
growing a number of regional and national
accounts
operating profit at ansa has increased due to
an improved mix of business cost reductions
and productivity gains customers have
benefited from strong performance in claims
validation service delivery and cost control
from october we renewed a contract with one
leading insurer and this arrangement will run
for three years
in february 2007 ansa acquired esg limited
a small drainage contractor for £02 million
this acquisition has helped to increase the
proportion of repair work that is being carried
out by direct labour as opposed to sub
contractors
ansa also owned a small business offering
health and safety training revenue in the first
six months of 2007 was £617000 the trade
and assets of this operation were sold to the
training management team on 29 june 2007 at
net book value of £556000 
independent inspections
after suffering through low volumes in the first
quarter a series of cost reduction and profit
independent inspector with spotting kit
chief
executive’s
review
211679pp04pp11qxp  18308  1909  page 6 improvement initiatives were made the
summer floods were positive for independent
inspections as a large number of floor
coverings were destroyed or damaged new
income streams were developed later in the
year which has broadened the base of the
business  
mono services
mono services sales have increased by
approximately one fifth compared to 2006
due to winning new business helped by the
storm damage over the 20067 winter and
the summer floods some of mono services’
business has been redirected via an insurer’s
joint venture partner that has caused some
disruption to our operations this resulted in
transition and set up costs that reduced
margins during the year 
the acquisition of peter cox with its network
of branches and its integration with mono
services will enable us to build a national
building fabric solution for insurers 
peter cox
peter cox was acquired on 28 september
2007 it is a national provider of damp and
water proofing timber preservation and wall
stabilisation for property in the united
kingdom peter cox has a network of 17
branches in england and scotland and
employs 287 people its revenue is generated
from yellow pages and the commercial sector
with at present little or no insurance work
peter cox contributed revenue and operating
profit of £42 million and £03 million in its
first three months revenue was 6 up on
the comparable period and operating profit
significantly increased
we commenced the integration of the back
office systems of peter cox into the
emergency repair division very promptly after
completion of the acquisition this was partly
driven by the need to move out of the shared
services environment of the vendor group
the central functions of peter cox have been
relocated to the same offices as ansa and
mono services in oldham during the last
quarter of 2007 there were double running
costs of operating the two environments plus
investment in the it integration we estimate
the double running and integration costs
incurred by peter cox and mono services
were £03 million in aggregate
emergency repair summary
overall on a true like for like basis
comparing each business with the
comparable period of trading in 2006 sales
advanced by 10 and operating profit by
18 after a soft end to the year in volume
terms the division has bounced back in the
first quarter of 2008
we have built a division which competes
effectively as  a claims fulfilment business for
insurance companies we are integrating the
operations under one divisional management
team headed by steve watkins and
beginning to eliminate duplication in
function across the division the
implementation of one it platform across the
division will improve efficiency during 2008
and especially 2009 the integration of peter
cox with mono services will be a key
initiative for 2008
mavinwood plc annual report and financial statements 2007 7
mavinwood plc
mono services operations centre
chief
executive’s
review
211679pp04pp11qxp  18308  1909  page 7 mavinwood plc
document handling
2007 2006
£’000 £’000
sales
restore and wansdyke 8934 7938
document control
services 3022 –
––––––––– –––––––––
total 11956 7938
––––––––– –––––––––
––––––––– –––––––––
ebita
restore and wansdyke 2808 2459
document control
services 1078 –
––––––––– –––––––––
total 3886 2459
––––––––– –––––––––
––––––––– –––––––––
 wansdyke eleven months in 2006
 document control services nine months in 2007
 excluding share based payments charge
restore and wansdyke
restore and wansdyke serve a wide range of
customers including law firms corporates of
varying sizes financial services companies
councils and health trusts our customers are
mostly based in london and the south across
to bristol and south wales the majority of
sales are the storage and retrieval of archive
boxes but also individual files and other
material such as magnetic media and film 
scanning of documents on a selective basis is
also offered to clients shredding or pulping
of documents at the end of their useful lives is
currently outsourced although this would
form a logical product extension
the key customer satisfaction measures are
•  accuracy in retrieving items
•  of items retrieved in accordance with
terms of service such as same day or
next day delivery
we continue to integrate restore and
wansdyke and the companies share the same
management team approximately £01
million of integration costs have been charged
against wansdyke’s profits in 2007 the
restore operating system of bar coding is
being applied at wansdyke and the back
office functions are increasingly being
integrated total employees at wansdyke have
dropped from 75 at february 2006 to 66 at
31 december 2007 by natural wastage as
systems have become more automated
we operate a combination of freehold and
leasehold sites at wansdyke and restore
respectively due to the absence of rental
charges the return on sales at wansdyke is
higher than that at restore 
having repositioned the business in 2006
wansdyke’s sales grew strongly in 2007 by
10 we are filling up our underground
storage facilities near bath and in the first half
of 2007 acquired an adjoining underground
space of 16 acres for £05m once fitted out
this space will provide medium term
expansion for the business through to 2013
restore suffered from some disruption and
dealt with a high volume of archive box
intake but the flow through from this new
volume means it is well placed for 2008
document control services dcs
we acquired 100 of the share capital of
stapledon holdings limited the parent
company of dcs on 26 march 2007 dcs is a
quality national operation scanning and
indexing documents with high intellectual
property content the business has a blue chip
customer base including network rail
highways agency the crown estate oil and
gas companies city councils and property
companies dcs made a very strong
contribution in its first nine months
mavinwood plc annual report and financial statements 2007 8
restore storage facility
chief
executive’s
review
211679pp04pp11qxp  18308  1909  page 8 document handling summary
the market for the physical storage of
archives continues to grow well in excess of
gdp with especially strong growth in sectors
such as professional services overall on a
true like for like basis comparing each
business with a comparable period of trading
in 2006 sales advanced by 11 and
operating profit by 21 
the division is well placed to capitalise on its
pipeline of new business while maximising
the utilisation of its freehold space restore
and wansdyke are effectively being run as
one business and the appointment of ed
marshall from dcs as divisional chief
executive will help to bind all three
operations together
central costs
central costs have increased from £969000 to
£1439000 as we now operate two much
larger divisions compared to 2006 
2007 has been a busy and exciting year for
mavinwood and we anticipate yet another
year of building on our solid foundations in
2008
kevin mahoney
chief executive
12 march 2008
mavinwood plc annual report and financial statements 2007 9
mavinwood plc
wansdyke secure facility
chief
executive’s
review
211679pp04pp11qxp  18308  1909  page 9