2  annual report 2007
annual report and financial statements for the year
ended 31 may 2007
system c healthcare plc “system c” is an independent british business specialising in the
provision of information systems and services to the healthcare sector
system c works right across the healthcare sector and offers a range of patient management
software applications including the medway patient administration system “pas” and
electronic patient record “epr” as well as the healthdata management suite system c
also has one of the uk’s largest dedicated teams of healthcare it domain experts who have
implemented most kinds of clinical and administrative it systems in all healthcare settings
3 mission and goals
3 highlights of the year
4 chairman’s statement
7 chief executive officer’s
review
13 financial review
16 corporate responsibility
statement
18 board of directors
20 directors’ report
23 corporate governance
statement
27 directors’ remuneration
report
32 statement of directors’
responsibilities
33 independent auditors’
report
35 income statement
36 balance sheet
37 statement of changes in
shareholders’ equity
38 cash flow statement
40 notes to the financial
statements
75 company information


Summary:
 4  annual report 2007
introduction and highlights
system c has accomplished a great deal
this year including broadening its client
base securing new contract wins in excess
of £13m over 5 years and enhancing its
product range through a product
development partnership with microsoft
subsequent to the year end the company
also completed the acquisition of 
iq systems services ltd “iq systems” 
this acquisition extends our ability to 
secure work in the independent sector
healthcare market
although we achieved much there were
marked differences between the two halves of
our financial year in the first six months the
slowdown in the national programme for it as
a result of the withdrawal of accenture from
the north east and eastern regions led to a
scaling back of our service division
deployments which impacted the results for
the six months ended 30 november 2006
despite these challenging market conditions
we worked extremely hard to deliver effectively
against our other contracts whilst controlling
our costs tendering for new opportunities and
reviewing acquisition targets which would
enhance our earnings in the future i am
pleased to say that these efforts began to
produce results in the second half of the year
giving us a solid platform from which to realise
our strategic objectives going forward
people and the board
system c is principally a people business
and i would like to thank all of our staff for
their part in delivering a handson practical
and high quality service to our customers 
it is primarily their efforts that helped us to
deliver our results i would also like to
welcome the new colleagues that joined us
through our acquisition of iq systems 
i believe that there are great cultural
synergies between our two companies and
we are delighted to welcome them into the
system c team
we recently announced that i have become
nonexecutive chairman of system c as my
tenure as executive chairman came to an
end the requirement for the role of
executive chairman has diminished in the
last year and this is a logical next step in the
evolution of the business in addition we
announced the appointment of dr john
forrest as the deputy chairman and john
remains our senior independent director
both john and i look forward to working
with the board to achieve further expansion
of the system c group
dividends
the board is recommending a final dividend
of 024p per share which if approved by
shareholders at the annual general meeting
on 7 november 2007 will be paid on 
9 november 2007 to those shareholders on
the register at 5 october 2007 the total
dividend of 036p per share represents an
increase of 9 compared to the 
previous year
corporate governance
system c is committed to high standards of
corporate governance although as an aim
listed company we are not required to
comply with the combined code we seek
to adopt the provisions of the combined
code in order to meet best practice further
details of how the principles of the
combined code have been applied is given
in the corporate governance statement on
pages 23 to 26 and in respect of directors’
remuneration in the relevant section of the
directors’ remuneration report on pages
27 to 31
chairman’s statement