tangent communica tions plc 
truscott house 
32–42 east road 
london n1 6ad 
wwwtangentukcom
personal
l ocal
multichannel
tangent communications plc
annual report and accounts 2008
tangent communications plc annual report and accounts 2008 corpora te statement
t angent helps clients foster 
closer relationships with their 
customers using targeted 
localised websites email 
direct mail and point of sale
 01 highlights 02 our business 04 chairman’s statement 06  business review 
  06 overview  10 chief executives’ review
  14 financial review 16 board of directors 
 17 advisers 18 directors’ report 21 corporate governance statement 23 remuneration report 25 independent auditors’ report
 26 consolidated income statement 27 consolidated statement of  
  changes in equity 28 consolidated balance sheet
 29 consolidated cash flow statement 30 company statement of changes in equity 31 company balance sheet
 32 company cash flow statement 33 notes to the financial statements 48 notice of annual general meeting
 51 form of proxy ibc financial calendar
financial calendar 
24 july 2008 annual general meeting
22 august 2008 dividend payment subject to shareholder approval
31 august 2008 financial half year end
november 2008 interim results announcement
28 february 2009 financial year end
may 2009  annual results announcement tangent communica tions plc  annual report and accounts 2008  01
highlights
operating
 signed a two year agreement with gala coral group
  signed a digital direct mail contract with one of the 
uk’s largest direct marketers
 l aunched a data management and data processing team 
  launched a search marketing service responding 
to contract win
  launched zui a new business partnership selling 
business software to corporates
financial
 revenue up 102 to £1736m 2007 £861m
 	 	 underlying	operating	profit	up	128	to	£ 244m	
2007 £107m
	 	 underlying 	 operating 	 margin 	 up 	 to 	 140	 
2007 	 124
 	 	 underlying	basic	earnings	per	share	up	by	31	to	124p	
2007 095p 
 diluted earnings per share up 69 to 088p
  operating cash generation up 117 to £255m 
2007 £118m 
 maiden dividend of 02p per share proposed
	 underlying 	 operating 	 profit 	 excluding 	 acquisitions 	 up 	 22
underlying	figures	exclude	the	non‑cash	share‑based	payment	charge
underlying operating profit
128
underlying basic earnings per share
31
revenue
102 02  tangent communica tions plc  annual report and accounts 2008
our business
solving strategic business problems through 
creative application of technology
t angent marketing services helps national and global clients apply 
their brands at a regional and local level 
marketing services
a t 	 t h e 	 h e a r t 	 o f 	 m a r k e t i n g 	 f u l fi l m e n t 	 i s 	 m e a s u r e m e n t  	 g i v i n g	
feedback on effectiveness and return on investment roi 
proprietary technology
consumers use a range of communication channels  
depending on content and time – t angent believes brands  
should be no different
multi‑channel delivery tangent communica tions plc  annual report and accounts 2008  03
clients include
clients include
clients include
using webbased templates localised marketing 
materials including point of sale posters email 
messaging and direct mail are available on demand 
to local managers letting them respond to trading 
conditions in realtime while remaining consistently 
onbrand and onmessage
this lets central marketing teams devolve as much 
control as they want from hq to local operations 
a system with very significant potential to 
retailers banks charities and any business 
with distributed operations 
an elusive statistic in many forms of advertising 
and marketing r oi is easy to verify in detail 
using taobase™ tangent’s proprietary 
operating environment 
built from the groundup for marketers taobase acts 
as a central data repository for content and imagery 
that can then be repurposed for use in websites 
email messaging and print materials 
it also stores customer data allowing outbound 
communications to be fully personalised 
response is then tracked from message 
to transaction
using each delivery mechanic for its particular 
strengths tangent helps clients communicate with 
their customers in the most effective and natural 
way for each individual message
it provides clients with a channel neutrality that 
ensures their marketing is delivered in the best 
way for them rather than artificially shoehorning 
marketing spend into one channel merely because 
it’s the only one available
tangent’s marketing interfaces are designed to be 
used with minimal training and no knowledge of 
it whatsoever empowering organisations from the 
bottom up as a trailblazer in these technologies 
tangent is well placed to grow its position in this 
market very rapidly 
toolkit™ enables local managers and head office 
staff alike to specify and order templated print 
materials from menus to personalised greeting 
cards entirely via the internet 
with no installation necessary toolkit™ is available 
using a web browser from any computer a secure 
username and password controls access to accounts 
which can be controlled and capped centrally for 
complete budgetary control once implemented 
toolkit™ is a revolution for clients and an excellent 
driver of production efficiencies for t angent
the other benefit of providing the full range of 
channels is that even if tangent is not required to 
deliver across all of them our deep understanding 
of those communications methods means any 
marketing we undertake will be sympathetic 
to other work the client is undertaking 04 		 t a ngen t	 comm u nic a t ions 	 plc  annual report and accounts 2008
t a n g e n t 	 h a s 	 h a d 	 a n 	 e x c e l l e n t 	y e a r 	 i n 	 t e r m s 	 o f 	 p r o fi t  	 c a s h	
generation and earnings per share i am delighted that we 
are now able to propose our maiden dividend of 02p per 
s h a r e  	 t h i s 	 i s 	 c o v e r e d 	 o v e r 	 fi v e 	 t i m e s 	 b y 	 u n d e r l y i n g 	 b a s i c	
earnings and we intend to have a progressive dividend policy 
the board considers that over the long term dividends will 
form an important part of total shareholder return
chairman’s statement
the management team at 
ravensworth…has diversified 
into new markets tangent communica tions plc  annual report and accounts 2008  05
nick green and tim green’s joint chief executives’ 
review explains in detail how this has been 
achieved and they and graeme harris the 
finance director and all our employees 
deserve considerable commendation
the management team at ravensworth which 
operate our large digital printing operation has 
not only continued to grow their active customer 
numbers in the residential estate agency services’ 
business but has also diversified into new markets 
thus while it is likely that sales per estate agency 
customer will be lower this year the business 
can continue to prosper
in january 2008 we made a proposal to acquire 
tmn group an aim listed company which in stock 
market terms was about twice the size of tangent 
t he combination of tangent and tmn group 
would have produced a powerful force with a full 
set of digital marketing services with the potential 
to crosssell our respective services however during 
the early part of april it became clear to us that we 
should not pursue the proposal in what appeared 
to be becoming an auction process tangent did 
not incur any material costs associated with making 
the proposal tangent will continue to look for 
appropriate acquisition opportunities whilst 
maintaining investment discipline
now looking forward we have confidence in our 
future we are a relatively small company which 
through hard work considerable innovative talent 
and a strong financial base can grow substantially 
in probably some weaker markets by taking extra 
increments of marketing budgets particularly by 
digital conversion we don’t have expensive offices 
or extravagant marketing costs and management 
is rewarded substantially from results not salaries
finally i am pleased to report that greg jackson 
a founder of c360 which is now tangent l abs 
joins the board today and he will add great insight 
into our online marketing operation where we see 
a significant opportunity for growth
piers caldecote 
nonexecutive chairman
14 may 2008 
i am delighted that we are 
now able to propose our 
maiden dividend of 02p 
per share 06  tangent communica tions plc  annual report and accounts 2008
the marketing services sector has embarked on 
a process of radical change marketing services 
companies in the future will look very different 
from those we see today and they are likely to 
be technologydriven
tangent is an innovative player our proprietary 
technologies allow us to offer services which 
other suppliers find hard to replicate we are 
applying technological solutions to redefine 
what marketing services can be about 
our business philosophy is unlike many of our 
competitors we partner with clients and engage 
with them at every stage of the marketing journey 
we develop bespoke solutions analyse their 
effectiveness and refine and enhance those 
solutions in the light of that information 
we have built a tightly integrated 
business supported by a highly efficient 
technology infrastructure the focus of the 
business is on solving business problems for 
marketing professionals 
tangent also applies data consolidation services 
we design build and maintain sophisticated 
ecommerce sites we help our customers to 
increase the effectiveness of their communications 
via direct mail emails sms and the web we 
empower local managers to launch campaigns and 
targeted communications and provide centralised 
control for brand managers
our proprietary technology platform is a key 
advantage very few competitors have the 
infrastructure in place to develop and host 
hundreds of thousands of individualised 
websites in a very short timeframe 
for tangent it’s a core competence 
our database solution taobase has the ability to 
accept data sent from a variety of sources to create 
rich multichannel content output in late 2007 
when l abour went on election alert we used 
this system to ensure the party was ready with 
dedicated websites for every mp and individualised 
mail for every constituency available for printing 
in runs from one to 100000
onetoone marketing is a holy grail for many 
businesses but frequently the absence of a single 
standardised database is a major stumbling 
block our ability to cleanse and provide access 
to customer data overcomes this problem it is 
often a starting point for additional services 
we were pioneers in digital direct marketing 
and have been active in this area for more 
than a decade toolkit our marketing management 
system empowers local managers to devise and 
manage campaigns they can use the system to 
create brandsensitive tailored communications 
that meet the needs of specific customers on 
the ground brand managers in head offices 
can control their brands while also allowing 
far greater local involvement 
recognising that value resides in usefulness for 
customers we charge for usage based on the 
number of touchpoints with our systems that 
maximises clients’ flexibility allowing anyone 
in the business to use our systems for their 
specific needs 
we have the infrastructure to handle 
largescale operations on any given day we 
may receive 10000 electronic orders from 
around the country a ll are processed and 
delivered within 24 hours our experience 
in delivering service successfully at scale 
is winning the trust of our customers and 
opening up new business opportunities
t he r avensworth acquisition added a key piece 
to the jigsaw in our quest to deliver an integrated 
comprehensive digital marketing service europe’s 
largest dedicated digital printing facility produced 
around 80m digital pages for over 3000 customers 
last year 
tangent now has a foothold in a significant 
vertical market it is the market leader in the 
uk residential property market and the number 
three uk hips supplier
since the acquisition the digital printing business 
has exceeded expectations it has introduced 
new revenue streams and is rapidly diversifying 
its client base 
more importantly the addition of an integrated 
digital facility takes us a step closer to achieving 
our goal of providing onestop marketing services 
we have gained the ability to manage major 
national datadriven mailing campaigns inhouse 
business review o verview
our proprietary technologies 
allow us to offer services 
which other suppliers find 
hard to replicate tangent communica tions plc  annual report and accounts 2008  07
when borders uk was bought from its 
american owner they decided to terminate 
their relationship with amazoncouk and 
hired tangent to create their brand new 
british web shop 
the 	 scale 	 of 	 the 	 project 	 proved 	 an 	 excellent 	 demonstration	
o f 	 t h e 	 p o w e r 	 a n d 	 fl e x i b i l i t y 	 o f 	 t a n g e n t 	 l a b s ’ 	 t a o s h o p 	 p r o d u c t 	
w h i c h 	 a c c e p t e d 	 t h e i r 	 i n v e n t o r y 	 o f 	 o v e r 	 1  3 m 	 p r o d u c t s 	 q u i c k l y	
and easily
innovation in the site’s faceted navigation is designed 
t o 	 make	it	as	easy	as	possible	for	visitors	to	filter	the	site’s	
extensive 	 range 	 of 	 books 	c ds 	 dvds 	 and 	 video 	 games 	 while 	
retaining consistency of both design and layout throughout
tangent was also retained to run borders’ digital 
marketing including personalised email pay per click 
marketing search engine optimisation and online pr 
using synergies from the site’s personalisation algorithms 
to personalise both advertising and communications creates 
a 	 startlingly 	 adaptive 	 and 	 engaging 	 experience 	 for 	 shoppers
each	borders	store	now	benefits	from	its	own	localised	
site updated by staff using tangent labs’ proprietary 
web creator system staff picks and reviews are then 
automatically uploaded to the web shop enriching 
content and providing another key point of difference 
from its competitors
finally tangent supplies borders’ localised marketing 
materials	with	point‑of ‑sale	materials	ordered	online	
using a simple interface all of which are centrally 
controlled	to	be	on‑brand	and	on‑message
case study
borders  books etc 08  tangent communica tions plc  annual report and accounts 2008
personal
t he stepchange in the scale of our business 
is enhancing our capacity to work with larger 
organisations in the past marketing departments 
expressed interest in our technologies but some 
found it difficult to allocate significant budgets 
to a relatively small company t he newcastle 
facility is helping us to make the case to clients and 
potential clients that we have the experience and 
the capabilities to handle largescale contracts
many of our customers are migrating their 
operations from nondigital to digital and they 
see us as a consultative partner increasingly 
we are being appointed on retainer to deliver 
consultancy services 
tangent is unusual in its ongoing commitment 
to client service we provide our customers 
with tools to measure the effectiveness of the 
multichannel digital solutions we develop on 
their behalf and we work closely with them to 
ensure they get the most out of our systems 
the creative dimension to the solutions we offer 
is becoming increasingly important we always 
ensure that our data reporting is attractively 
visualised and this has led to a number of 
opportunities we are able to deploy both designers 
and developers across multiple channels and can 
offer both local and national coverage
by engaging closely with clients we are developing 
our knowledge and capabilities we recently 
delivered a sophisticated ecommerce site for the 
bookseller borders as a result of this success we 
are now working with them to develop a search 
engine marketing sem solution strengthening 
our integrated offer and generating new sales 
opportunities with our existing client base 
there are clear advantages for customers 
in using multichannel services on a single 
platform at the same time we recognise that 
to gain the maximum value from our services 
customers may need to adjust their practices 
there are business transformational issues at 
stake we need to win customers’ confidence 
and that takes time 
we therefore focus on establishing client 
relationships in specific areas where our 
approach adds immediate value we compete 
against website developers for ecommerce sites 
against it service businesses for data integration 
and analysis work and against marketing service 
companies for direct mail fulfilment as we 
progressively win pitches on numerous fronts 
our profile is steadily increasing
we are strengthening our positioning 
as a tightly integrated digital marketing services 
company supported by a strong technological 
infrastructure around 25 of our revenues are 
currently generated by servicing more than one 
business area we estimate that by the end of 
2008 multiple services will account for over 50 
of total revenue
t he current trend for companies to transfer above 
the line advertising budgets to belowtheline 
activities is likely to accelerate with budgets 
constricting marketing departments want better 
information to justify their spend 
tangent’s positioning stands it in good stead 
our powerful infrastructure allows us to provide 
a bespoke service that can often be delivered 
more quickly and costeffectively than our 
competitors powerful tracking functionality 
allows customers to monitor and measure the 
effectiveness of their campaigns very precisely 
we stay with our clients to deliver a joinedup 
marketing service we provide strategic advice 
build bespoke systems and deliver personalised 
electronic and printed materials t hroughout 
the marketing journey we remain completely 
accountable to the client in turn that is helping 
us unearth new problems and allowing us to grow 
the business organically
business review o verview continued tangent communica tions plc  annual report and accounts 2008  09
case study
sap
sap is the world’s largest supplier of 
enterprise software and its customers 
rank among the largest organisations in 
the world tangent’s work with sap centres 
on design and implementation of innovative 
new interfaces that talk directly sap’s 
ubiquitous backend data structures
sap ’s application interfaces are at work in businesses 
worldwide and in use by sap itself for account and sales 
management project management and a range of internal 
processes working directly with sap ’s internal it department 
t angent has helped create new uis user interfaces that bring 
together related functionality on a single screen
as well as deep technical skill and understanding t angent’s 
information architecture and creative teams were deployed 
t o 	 e n s u r e 	 n e w 	 d e v e l o p m e n t s 	 a r e 	 c e n t r e d 	 fi r m l y 	 a r o u n d 	 t h e	
needs 	 of 	 the 	 user  	 promoting 	 efficiency 	 and 	 user 	 acceptance
tools developed by tangent are already mature enough to 
be 	 rolled ‑ out 	 globally 	 by 	s a p	 and 	 are 	 in 	 use 	 by 	 thousands 	
o f 	 u s e r s 	 i n 	 a l l 	 fi v e 	 c o n t i n e n t s 	 o n 	 a 	 d a i l y 	 b a s i s 	 10  tangent communica tions plc  annual report and accounts 2008
l ocal
performance
we are pleased to report on what has been 
a breakthrough year for tangent we have 
made significant progress towards our key 
objectives and are steadily growing the 
business this confidence is reflected in 
the board’s announcement of the company’s 
first ever dividend payment for shareholders
tangent doubled in size during the year 
r evenue increased by over 100 to £1736m 
2007 £861m profits grew even more 
significantly underlying operating profit for the 
year stood at £244m compared with £107m 
in the prior year tangent remains a strongly 
cashgenerative business cash generated from 
our operations increased to £255m £118m and 
profits converted into cash at a rate of 105
profitability is also up significantly we achieved 
an operating margin of 14 16 ahead of the 
previous year’s record performance two years 
ago we were achieving margins of just 95 
the steady improvement in profitability is an 
important indicator of the success of our strategy 
to increase the percentage of our earnings which 
come from pure technology sales
the year in focus
we made good progress towards realising our 
ambition of building an integrated business 
with a strong technological infrastructure
the acquisition of ravensworth in march 2007 was 
a very important step in tangent’s development 
it created good new revenue streams it gave us 
the capability to deliver new outputs and crucially 
it has given us the scale to compete for larger 
contracts and bigger clients we are therefore 
increasing the size of the newcastle facility by 
10000 sq ft to a total of 25000 sq ft
as part of t angent the newcastle facility has 
had considerable success in attracting new clients 
with national datadriven digital campaigns in 
december tangent started working with one of 
the uk’s largest direct marketing companies in 
converting their customer communications from 
nonpersonalised to personalised a lthough 
work remains at an early stage the win was only 
achieved through the demonstration of tangent’s 
increased scale and digital capabilities 
tangent is also providing new services in the 
property arena from a standing start in june 
2007 tangent is now the u k’s third largest 
supplier of home information packs hips and 
we expect to improve on this position during 
the next quarter
we have also extended our leadership in online 
local marketing solutions with new large 
corporate accounts added we have more than 
doubled the number of daily orders received 
this year t housands of local managers are 
now using tangent online tools to construct 
marketing campaigns using point of sale direct 
mail email or sms this creates two advantages 
for local managers first is the speed to market 
against their competitors and second is the 
ability to customise to local conditions 
the tools we provide continue to develop 
and deliver for local branch networks and 
will provide a sector for growth in 2009
we emphasise longterm partnerships with 
our customers our approach is not simply to 
provide products but to get to grips with our 
customers’ concerns we then propose innovative 
solutions that take advantage of the leverage 
and measurability afforded by technology 
we design build and operate systems to meet 
specific needs our customers know that we will 
not only give them the tools they need we will 
work with them to maximise their effectiveness 
business review chief executives’ review
c ash generated from our 
operations increased to £255m tangent communica tions plc  annual report and accounts 2008  11
politics used to involve soapbox speeches 
and an awful lot of shoe leather in these 
days of digital and localised marketing 
political parties still need to express their 
views perspicuously but now have an array 
of channels to distribute carefully targeted 
materials to the voters that matter most
tangent is the l abour party’s digital partner encompassing 
w e b 	 s t r a t e g y  	 t h e i r 	 n a t i o n a l 	 w e b 	 p r e s e n c e  	 m p s ’ 	 s e l f ‑ m a n a g e	
websites email and mobile marketing as well as a suite of 
services from online donations reporting to membersnet 
labour’s highly sophisticated and secure intranet
we also supply their fully personalised local marketing 
which is available at a constituency level letting local 
leaders control their own mailings templating is taken 
care of centrally ensuring a level of both budgetary and 
creative control
tangent and tangent labs have become trusted long term 
partners for both off and online marketing 
“ p e o p l e 	 r e m e m b e r e d 	 m e 	 f r o m 	 t h e 	 fi r s t 	 d i r e c t 	 m a i l 	
so i could be personal about the issues we are addressing 
in our community and pick up on the issues that have 
been raised by them” 
james walsh colnbrook local labour candidate
case study
the labour party 12  tangent communica tions plc  annual report and accounts 2008
our strength in technology 
gives us a clear competitive 
advantage in our core markets
mul ti‑ 
channel
business review chief executives’ re view continued
71 
of total revenue realised through 
tangent’s proprietary technology 
platforms
ravensworth client base grows to
3000 
up 27 against prior year
and will remain accountable for example from 
building a retail website hosting 13m products 
we were able to add a fully integrated search and 
email marketing service
the ability to measure marketing effectiveness 
is a key element in what we can offer technology 
and pressure on budgets are driving demands 
for improved measurability from marketing 
professionals our strength in technology gives 
us a clear competitive advantage in our core 
markets as well as generating intellectual property 
which enables us to move into new markets for 
example through our joint venture zui
outlook
we are generally confident about the outlook 
for the business
in the year under review we saw uncharacteristic 
seasonal fluctuation in the business the property 
market is traditionally most active in the first half 
and our interim profits reflected this this seasonality 
is not expected to be repeated in the current year 
partly because the contribution from property 
particulars is down due to the state of the property 
market but more significantly because the business 
has grown into other sectors 
we are seeing growth in our technologybased and 
online activities and we expect to see this growth 
offset any decline in our property business we are 
experiencing growth in high margin digital services 
such as ecommerce websites search marketing 
and email delivery we have gained some important 
new clients for our local digital solutions 
tangent is a growing business we remain alert 
to opportunities to scale up our activities through 
organic growth by extending the breadth of 
what we offer and where relevant via strategic 
acquisitions we continue to focus on growing 
while remaining a strongly cashgenerative business 
we expect to see consolidation opportunities 
arise during the year and we are well placed 
to take advantage 
we would like to thank all employees for their 
hard work and excellent contribution during the 
year and look forward to another year of growth
nicholas green and timothy green
joint chief executives
14 may 2008 tangent communica tions plc  annual report and accounts 2008  13
as a significant supplier to the uk property 
market ravensworth’s potential for providing 
an endtoend service for printed home 
information packs presented an opportunity 
to add considerable incremental volume 
to the business 
with over 3000 estate agency branches already using 
ravensworth’s infrastructure and ordering system on 
a	daily	basis	we	started	with	a	significant	head	start	in	
rolling out this new product 
the other advantage was our insight into the property 
m a r k e t  	 w h i c h 	 e n a b l e d 	 u s 	 t o 	 b u i l d 	 a 	 u n i q u e 	 p o r t f o l i o	
of hips provider clients servicing both localised markets 
v i a 	 s o l i c i t o r s 	 a n d 	 e s t a t e 	 a g e n t ‑ b a s e d 	 p a c k 	 s u p p l i e r s 	 a s	
well as nationwide corporate providers and high volume 
conveyancing organisations
ravensworth’s proprietary technology collects pack content 
from any source controls document layout composition 
and template design applies correct branding and outputs 
print ‑ ready 	 files 	 for 	 web 	 upload 	 or 	 distribution 	 by 	 email
all	printed	packs	are	dispatched	within	48	hours	of	order	
receipt	with	month‑on‑month	growth	already	exceeding	
30 and a healthy pipeline of opportunities which we 
expect	to	continue	to	deliver	strong	revenue	growth
case study
hips 14 		 t a ngen t	 comm u nic a t ions 	 plc  annual report and accounts 2008
the acquisition of 
ravensworth was completed 
and it has subsequently 
performed ahead of 
expectations
operating profit margin
14
revenue increased
102
business review financial review
overview
the year ended 29 february 2008 was another 
year of significant achievement for tangent 
within a month of the beginning of the year the 
acquisition of r avensworth was completed and it 
has subsequently performed ahead of expectations 
with further organic growth in our existing 
business and a high operating cash conversion 
rate the board has taken steps to enable tangent 
to pay a dividend and we will propose a maiden 
dividend at the annual general meeting on 
24 july 2008
key performance indicators kpis
we manage tangent’s business using kpis which 
measure underlying performance for the year 
under review and the prior year underlying 
performance excludes only the sharebased 
payment charge
we believe that our focus on the kpis as set out 
below will in the medium and long term deliver 
value for shareholders
 revenue doubled to £1736m 2007 £861m
   underlying operating profit increased by 128 
to £244m 2007 £107m
  underlying operating margin improved to 140 
2007 124
  underlying basic earnings per share grew 
by 31 to 124p 2007 095p and
  operating cash generation increased by 117 
to £255m 2007 £118m representing a cash 
conversion rate of 105 2007 110 
of underlying operating profit
trading performance
t he acquisition of r avensworth in march 2007 
made a significant contribution to the more than 
doubling of revenue and underlying operating 
profit nevertheless excluding this acquisition 
revenue increased by 16 and underlying 
operating profit grew by 22
share‑based	payment	charge
the sharebased payment charge of £040m 
2007 £039m is for the fair value of options 
granted and mostly relates to those granted 
in 2005 t his charge has been excluded from 
underlying operating profit as there is no related 
cash flow and it results in no reduction in equity 
attributable to shareholders
t axation
the tax charge of £055m 2007 £009m 
equates to 264 of profit before tax after 
adding back the sharebased payment charge 
which is excluded from the calculation of taxable 
profits the underlying tax rate was 221 
2007 80 the tax charge is significantly 
lower than the standard corporation tax rate 
of 30 because the group has the benefit of past 
tax losses the increase in the underlying tax rate 
compared with the prior year arose because 
profits from acquisitions do not benefit from 
these tax losses at the year end the group had 
£07m of tax losses available to offset against 
future profits
earnings
underlying profit before tax increased to £25m 
2007 £108m underlying profit after tax 
increased to £194m 2007 £099m which 
equates to underlying basic earnings per share 
of 124p 2007 095p and underlying diluted 
earnings per share 111p 2007 086p tangent communica tions plc  annual report and accounts 2008  15
net funds
£243m
operating cash
£255m
acquisitions
on 27 march 2007 tangent acquired r avensworth 
a digital marketing business for £604m including 
expenses the acquisition was completed without 
any contingent or deferred consideration to fund 
the acquisition tangent issued 50m new shares 
mostly placed with institutional fund managers 
that invested in tangent for the first time
in the period since acquisition r avensworth 
contributed £113m to underlying operating profit 
which is a 153 margin on sales of £74m cash 
generation has also been strong with a contribution 
of £088m to net funds since acquisition
during the year the directors’ estimate of the 
future consideration payable for c360 which 
was acquired in july 2006 increased by £1m our 
estimate reflected in the financial statements 
is that the maximum contingent consideration will 
be payable
cash	flow
operating cash flow of £255m 2007 £118m 
was strong and tracked closely to underlying 
operating profit tax payments of £059m 
2007 £003m were a significant cash 
outflow for the first time
capital expenditure of £064m 2007 £050m 
was mostly spent on new digital equipment
over the year net funds improved by £138m 
to £243m 2007 £105m
balance sheet
the year end net assets were £1938m compared 
with £1023m for the prior year the main change 
arises from the consolidation of the r avensworth 
balance sheet for the first time and goodwill arising 
from acquisitions the £647m increase in goodwill 
includes £547m for ravensworth and £1m for 
additional future consideration payable for c360 
in january 2008 the capital structure 
of tangent was changed at a general meeting 
and subsequently confirmed by the high court 
to enable the payment of dividends the net effect 
was to increase retained earnings by £206m and 
reduce the share premium reserve by £1317m and 
the merger reserve by £743m net assets were not 
affected the cost of the restructuring has been 
recognised within operating expenses
dividends
the board believes that paying a dividend is 
an important part of providing total shareholder 
return we will propose a maiden dividend of 
02p per share at the annual general meeting 
on 24 july 2008 if approved the dividend will 
be paid on 22 a ugust 2008 to shareholders on 
the register on 25 july 2008 the proposed dividend 
is covered 58 times by underlying earnings
international financial reporting standards ifrs
as required by aim the alternative investment 
market of the london stock exchange t angent 
has fully adopted ifrs from 1 march 2007 the 
prior year comparative numbers are restated as 
required under ifrs 
the main adjustment on transition to ifrs arose 
from the revised treatment of goodwill for which 
a goodwill amortisation charge of £039m has 
been reversed and reinstated on the balance sheet
t reasury 	funding	and	exchange	risk
the group finances its operations through funds 
raised from shareholders retained earnings and 
finance lease borrowings the funding structure 
comprises variable rate borrowings and cash 
balances to maintain a high level of financial 
flexibility for potential acquisitions and investments 
r egular reports on cash balances and borrowings 
are provided to the board 
the majority of trade is conducted in sterling 
although a material amount is denominated in 
euro the directors monitor exposure and where 
possible match eurodenominated revenue and 
expenditure or hedge some of the exposure to 
mitigate the foreign exchange risk
graeme harris
finance director
14 may 2008
underlying basic eps
p
underlying operating profit
£000
revenue
£000
17361
8605
6608
08 07 06
2438
1070
626
08 07 06
124
095
082
08 07 06 16  tangent communica tions plc  annual report and accounts 2008
board of directors
1
3
2
5 6
4 tangent communica tions plc  annual report and accounts 2008  17
secretary
graeme harris
registered	office	
truscott house  
32–42 east road  
london n1 6ad
company registration number
3967805
nominated adviser and broker
collins stewart limited
88 wood street 
london ec2v 7qr 
bankers
hsbc bank plc
60 queen victoria street 
london ec4n 4tr
auditors
uhy hacker young llp
quadrant house 
17 thomas more street 
thomas more square 
london e1w 1yw
registrar
capita registrars 
northern house  
woodsome park 
fenay bridge 
huddersfield 
west yorkshire hd8 0la
solicitors
pinsent masons llp
citypoint 
one ropemaker street 
london ec2y 9ah
rosenblatt 
9–13 st andrew street 
london ec4a 3af
advisers
1  piers caldecote 
nonexecutive chairman age 61
piers was an associate director 
at carlton communications plc 
between 1990 and 2004 covering 
strategy and mergers and acquisitions 
prior to that he worked in the city 
as an investment analyst latterly 
for chase manhattan securities 
3 timothy green
joint chief executive officer age 32
prior to joining tangent timothy was 
a founding partner at unanimis which 
specialises in internet commercial services 
for clients such as ebay and the bbc prior 
to this timothy worked at ask jeeves in the 
commercial team
5 greg jackson
executive director age 36
greg cofounded the datadriven agency c360 
in 2003 which was acquired by tangent in 2006 
he is a graduate of cambridge university and his 
career prior to c360 included running a database 
business being a brand manager at procter 
and gamble and writing high performance 
software greg is responsible for tangent’s 
online strategy
2 nicholas green
joint chief executive officer age 35
prior to joining tangent nicholas worked 
at advertisingcom as european sales and 
marketing director the company specialises 
in performance based marketing and was 
successfully sold to aol in 2004 for 439m 
prior to advertisingcom nicholas worked 
at teletext for seven years in the 
commercial department
4	graeme	harris
finance director age 41
graeme was finance director of coutts holdings plc 
where he worked on its initial flotation and on 
a series of acquisitions in the marketing services’ 
sector he oversaw the successful sale of coutts 
to media square plc for £225m graeme is an 
economics graduate of manchester university 
and qualified as a chartered accountant with 
ernst  young in london
6 paul murray
nonexecutive director age 46
paul was group finance director 
at carlton commuications plc between 
2001 and 2004 prior to that he was 
group finance director at lasmo plc 
he currently sits on the boards of 
market researcher taylor nelson 
sofres plc where he is the senior 
independent director and 
t homson sa  the french 
media technology company 18  tangent communica tions plc  annual report and accounts 2008
the directors present their report and audited financial statements of the group for the year ended 29 february 2008
principal activity and review of the business
the principal activity of the group is the provision of customised marketing services a review of the business its future development and its key performance 
indicators can be found in the chief executives’ review and the financial review
results and dividends
the consolidated profit for the year amounted to £1542000 the directors recommend the payment of a dividend of 02p per ordinary share to be paid on 
22 august 2008 to shareholders on the register at the close of business on 25 july 2008 further information on the group’s results and financial position 
is included in the financial review
company listing
tangent is listed on the alternative investment market aim of the london stock exchange the market code for the company is tng 
information required by aim rule 26 is available in the investor relations’ section of tangent’s website at wwwtangentukcom
acquisitions
on 27 march 2007 tangent acquired the entire share capital of ravensworth digital services limited total consideration before costs was £585m 
of which £541m was paid in cash and £044m was paid in shares valued at 13p each there is no deferred or contingent consideration payable 
on this acquisition
changes in share capital
on 23 march 2007 the authorised share capital of the company was increased to £225m the acquisition of ravensworth digital services limited 
was funded by the issue of 50011828 ordinary shares at 13p per share over 26 and 27 march 2007 of which 46615385 shares were placed
tangent undertook a capital reorganisation during the year in order to be able to pay dividends as part of this procedure at a general meeting 
on 17 january 2008 the authorised share capital was increased from £225m to £968m and the merger reserve was capitalised by the creation 
of 743015600 deferred shares of 1p each at the same general meeting the deferred shares were all cancelled a balance of £1317m on the share 
premium was cancelled and the authorised share capital was then reduced to £225m the resolutions required the approval of the high court before 
taking effect and this approval was granted on 6 february 2008 the overall effect of the reorganisation was to increase the distributable reserves of the 
company by £206m and reduce the share premium account and merger reserve by the same amount in aggregate thus eliminating the company’s 
retained losses of £858m at the beginning of the year net assets of the company were not affected
on 19 february 2008 the company issued 4175000 ordinary shares as part of the contingent consideration for c360 uk limited
at 29 february 2008 and at the date of this report the number of issued ordinary shares is 165966835
directors
during the financial year the following directors held office
piers caldecote  
nicholas green  
timothy green  
graeme harris  
paul murray appointed on 26 march 2007
greg jackson was appointed as a director after the year end on 14 may 2008
directors’ interests 
at 29 february 2008 the directors’ shareholdings were as follows
        ordinary shares of 1p each
        29 february 28 february 
        2008 2007
piers caldecote       1250000 —
nicholas green       2730770 2500000
timothy green       2730770 2500000
graeme harris       500000 500000
greg jackson       8597188 6875000
paul murray       2924998 2155767
 appointed to the board on 14 may 2008 
 shareholding at appointment to the board
directors’ interests in share options are set out in the directors’ remuneration report
directors’ report
for the year ended 29 february 2008 tangent communica tions plc  annual report and accounts 2008  19
substantial shareholdings
the directors are aware of the following shareholdings of 3 or more of the issued share capital of the company at 6 may 2008
          of issued 
        ordinary ordinary 
        shares of  share 
beneficial holder       1p each capital
michael green        53076924 320
hargreave hale       11323680 68
nicholas gillett

       8597188  52
merrill lynch  co inc       5038000 30
 a vendor of c360 uk limited and senior employee within the group
institutional shareholders with an interest of between 1 and 3 of the issued share capital of the company at 6 may 2008 were as follows
aberdeen asset management 
axa framlington investment management 
bluehone investors 
discretionary unit fund 
herald investment management 
invesco asset management 
isis equity partners 
savoy investment management 
singer  friedlander investment management 
unicorn asset management
suppliers payment policy 
it is the group’s policy that payments to suppliers are made in accordance with those terms and conditions agreed between the group and its suppliers 
provided that all trading terms and conditions have been complied with at 29 february 2008 the group had an average of 58 days 2007 72 days 
purchases outstanding in trade creditors
employees
the group recognises the benefit of keeping its employees informed of all relevant matters on a regular basis the group is an equal opportunities 
employer and all applications for employment are considered fully on the basis of the suitability for the job 
use of financial instruments
tangent’s financial risk management objectives are to minimise debt to fund acquisitions through a mixture of equity financing and cash and to ensure 
sufficient working capital for the group’s overhead and capital expenditure commitments this is achieved by prudent financial management and careful 
management of the group’s cash balances both short and long term the financial risk management objectives and policies of the group set out in note 21 
of the financial statements include the group’s exposure to currency credit liquidity and credit risk
key risks and uncertainties
the key risks and uncertainties for the group are identified as exposure to further declines in the residential property market currency rate risk from 
significant payments to suppliers in euro and the effect of larger technology companies replicating some of tangent’s technical innovations
donations
during the year the group made charitable donations of £9000 2007 £1000 and a political donation to the labour party of £6000 2007 nil 20  tangent communica tions plc  annual report and accounts 2008
directors’ report continued
for the year ended 29 february 2008
statement of directors’ responsibilities
company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the 
company and of the group and of the profit or loss of the group for that period in preparing those financial statements the directors are required to
 select suitable accounting policies and then apply them consistently
 make judgements and estimates that are reasonable and prudent
  state whether applicable accounting standards have been followed subject to any material departures disclosed and explained in the financial 
statements and
 prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business
the directors confirm that the financial statements comply with the above requirements
the directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the 
group and which enable them to ensure that the financial statements comply with 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
auditors
so far as the directors are aware
 there is no relevant audit information of which the company’s auditors are unaware and
  each director has taken steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the 
auditors are aware of that information 
a resolution that uhy hacker y oung llp be reappointed as auditors of the company will be put to the annual general meeting
by order of the board
graeme harris
secretary
14 may 2008
  tangent communica tions plc  annual report and accounts 2008  21
corporate governance statement 
for the year ended 29 february 2008
statement of compliance
although aim listed companies are not required to report on the combined code the directors are committed to proper standards of corporate 
governance and will continue to keep procedures under review 
board and board committees
for most of the year the board of directors comprised two nonexecutive directors and three executive directors the second nonexecutive director was 
appointed on 26 march 2007 the full board manages overall control of the group’s affairs by the schedule of matters reserved for its decision 
these include the approval of financial statements acquisitions and disposals authority levels for expenditure and review of monthly and other 
management reports the chairman will continue to review the skills and balance of the board as the group grows
the directors are able to take independent professional advice in the furtherance of their duties at the company’s expense and all directors have access 
to the advice and services of the company secretary
the board considers its nonexecutive directors to be independent an independent director is one who has no relationship with the company or its 
management which may undermine independence and who is not dependent on the company or its management for his primary source of income was not 
within the last three years a senior manager of the company and does not participate in the company’s incentive bonus scheme or pension schemes
the board delegates daytoday and business management control to the executive directors who are in regular contact with each other formal decisions 
are communicated throughout the group the executive directors are responsible for implementing group policy the monitoring and performance of the 
business and reporting to the full board thereon
the company has an audit committee whose terms of reference cover the points recommended by the code its duties include monitoring internal 
financial control throughout the group approving the group’s accounting policies and reviewing the interim and annual financial statements before 
submission to the board on 26 march 2007 the audit committee was reconstituted to include nonexecutive directors only paul murray joined the audit 
committee as its chairman and piers caldecote is the other member
the company has a remuneration committee which on 26 march 2007 was reconstituted to include nonexecutive directors only paul murray joined the 
remuneration committee as its chairman and piers caldecote is the other member
all executive directors have rolling service contracts with the company terminable on twelve months’ notice from the company and by six months’ notice 
by the director nonexecutive directors agree a letter of appointment terminable on six months’ notice by each party 
following their first appointment to the board the terms of the articles of association require all directors to retire and stand for reelection at the earliest 
opportunity under the articles of association all directors are required to retire once every three years 
the nominations committee comprises all directors and is chaired by piers caldecote
relationship with shareholders
the directors consider the clear and timely communication of information to shareholders as an important part of their duties the chief executives’ 
review and financial review provide a summary of the group’s trading performance and future outlook the group’s website wwwtangentukcom also 
gives shareholders access to additional information furthermore twice a year the group’s financial results are published in conjunction with briefings 
for investment managers and institutional analysts following the company’s interim and preliminary full year announcements and at other ad hoc visits
the board views the annual general meeting as an opportunity to communicate with both institutional and private investors alike and aims to comply 
with all the provisions of the code relating to the constructive uses of annual general meetings the directors intend to be present and available to 
answer questions at this year’s annual general meeting 22  tangent communica tions plc  annual report and accounts 2008
corporate governance statement continued
for the year ended 29 february 2008
accountability and financial control
the board has overall responsibility for the systems of financial control implementation and maintenance of the financial control systems is the responsibility 
of executive management the board through the audit committee has reviewed the effectiveness of the systems of internal financial control for the 
accounting year and the period to the date of approval of the financial statements it should be understood however that such systems are designed 
to provide reasonable but not absolute assurance against material misstatement or loss
the company has an established framework of internal financial controls the key features of which are as follows
control environment
there are clearly defined organisational responsibilities and the board is committed to employing suitably qualified staff so that the appropriate level 
of authority can be delegated with regard to accountability and acceptable levels of risk
information systems
the group operates a number of separate systems of financial and operational reporting to the board and senior management based upon an annual 
budget and regular forecasts monthly weekly and other periodic reports of actual results financial and nonfinancial together with key performance 
indicators are produced and discussed by the directors
identification and evaluation of business risks and controls
management control is exercised at all levels of the group and is regulated by appropriate limits of authority the directors have considered various areas 
of business risks and have developed appropriate policies to manage and diffuse those risks these policies are reviewed in the light of known and 
perceived changes to the risks
quality and integrity of personnel
the group attaches high importance to the values of trust honesty and integrity of personnel in responsible positions and operates a policy 
of recruitment and promoting suitably experienced personnel with clearly defined accountabilities 
investment appraisal
all major capital expenditure is included in the annual budget and is reported on to the board in addition all potential and actual acquisition 
opportunities are regularly reviewed by the board both in meetings and by ad hoc reports
monitoring
given the size of the group and the close daytoday involvement of the executive directors in all of the group’s locations no formal internal audit 
is considered necessary
piers caldecote graeme harris 
director director
14 may 2008 tangent communica tions plc  annual report and accounts 2008  23
remuneration report 
for the year ended 29 february 2008
introduction
the policy of the group is to offer competitive remuneration packages that will attract retain and motivate experienced and talented individuals who will 
enhance the value of the group the remuneration packages of the executive directors are reviewed and approved by the remuneration committee on an 
annual basis the remuneration policies aim to incentivise and reward both short term financial performance and also shareholder value creation 
the remuneration of other employees is the responsibility of the joint chief executives
remuneration of the directors
executive directors are paid a basic salary and receive benefits in kind the remuneration of nonexecutive directors requires approval by the board 
individual directors are not permitted to participate in decisions concerning their own remuneration
the structure of executive directors’ remuneration was reviewed at the beginning of the year and the remuneration elements are as follows
  a base salary pension and benefits in kind are set at a competitive level and reflect the remuneration packages paid by companies of a similar size and 
in similar sectors 
  an annual cash bonus of up to 50 of basic salary is payable depending upon achievement of challenging financial performance targets set at the 
beginning of each financial year the purpose is to incentivise on the short term financial performance of the group and
  a long term incentive plan ltip under which share options with an intrinsic value up to 50 of basic salary per year are awarded to directors over a three 
year period depending upon the achievement of challenging goals based on total shareholder return over the period the purpose is to incentivise delivery 
of long term value and to align interests with shareholders
audited remuneration of directors for the year under review was as follows
        2008 2007 
     salary bonus benefits total total 
     £000 £000 £000 £000 £000
piers caldecote    20  —  —  20  20 
nicholas green    100  48   9 157 124 
timothy green    100  48   9  157 124 
graeme harris    95  46   9  150 111 
paul murray    19  —  —   19  — 
     334  142  27  503 379 
in addition to the remuneration stated in the table above pension contributions of £8000 2007 nil were made to defined contribution schemes for 
the benefit of each of the executive directors nicholas green timothy green and graeme harris
the bonus earned by directors equates to 48 of annual salary against a maximum potential of 50 of annual salary the bonus calculation is entirely 
based on the achievement of diluted earnings per share measured against a target and range set at the beginning of the financial year
the audited directors’ remuneration is all classified as short term employment benefits under international accounting standard 24 
share options
the company operates three share option schemes by which employees including executive directors are able to acquire shares comprising an inland 
revenue approved scheme the approved scheme an unapproved scheme the unapproved scheme and an enterprise management incentive 
scheme the emi scheme at 29 february 2008 5000 2007 5000 options had been granted to employees under the approved scheme 9450488 
2007 9057066 under the unapproved scheme and 5415934 2007 4462934 under the emi scheme
under the 2007 ltip  operating through the unapproved scheme graeme harris was granted options over 393422 shares with an exercise price of 
1p per ordinary share the options will vest over three years conditional upon tangent generating a minimum total shareholder return of 10 per 
annum based on a share price of 1301p being the volume weighted average share price for the four weeks prior to 1 march 2007 regulatory restrictions 
prevented the grant of options to nicholas green and timothy green so each was awarded 415279 phantom options the phantom options will vest 
over three years conditional upon a minimum total shareholder return of 10 per annum as above on 1 march 2010 each phantom option that has 
vested will entitle the holders to a cash bonus equivalent to the volume weighted average share price for the four weeks prior to that date of a tangent 
ordinary share less 1p per share 24  tangent communica tions plc  annual report and accounts 2008
remuneration report continued
for the year ended 29 february 2008
share options continued
the share options held by directors who served during the year were as follows
       at  at 
      exercise 1 march granted 29 february 
     note price 2007 in year 2008
nicholas green     a 1p 2500000 — 2500000
     b  5p 2500000 — 2500000
timothy green     a  1p 2500000 — 2500000
     b  5p 2500000 — 2500000
graeme harris     a  5p 1100000 — 1100000
     b   1175p 500000 — 500000
     c 1p — 393422 393422
       11600000 393422 11993422
a  options granted on 27 september 2005 which have vested in full vesting criteria were the purchase and retention of matching ordinary shares in tangent achievement of 
specific business integration targets following the reverse acquisition that was completed on 11 july 2005 and continued employment the options are exercisable between 
27 september 2008 and 26 september 2015
b  options granted on 27 september 2005 which have vested in full vesting criteria were targets for earnings per share performance and total shareholder return 
performance for each of the financial years that ended in february 2006 2007 and 2008 and continued employment earnings per share targets were for earnings 
per share excluding amortisation and exceptional items to exceed 07p in the year ended 28 february 2006 and this target increased by 15 per annum over the 
following two years total shareholder return targets were that for each year total shareholder returns on tangent shares equal or exceed the total shareholder return on 
a portfolio of smaller support services companies selected from the ftse all share index the options are exercisable between 27 september 2008 and 26 september 2015
c  options granted on 25 june 2007 under the 2007 ltip which vest and become exercisable between 1 march 2012 and 25 june 2012 dependent on the achievement of 
total shareholder return performance in excess of 10 per annum from 1 march 2007 to the financial year ends in february 2008 2009 and 2010 at 29 february 2008 
no options had vested under the 2007 ltip 
the sharebased payment charge for options granted to directors was £378000 which was mostly attributable to options granted in september 2005
the 2008 ltip award has not been made as at the date of this report because of regulatory restrictions the remuneration committee expects to make the 
annual ltip awards to each executive director and tangent will announce the details when the awards are made
paul murray 
director 
14 may 2008
  tangent communica tions plc  annual report and accounts 2008  25
independent auditors’ report 
to the shareholders of tangent communications plc
we have audited the group and parent company financial statements of tangent communications plc for the year ended 29 february 2008 which 
comprise the consolidated income statement the consolidated and company statements of changes in equity the consolidated and company balance 
sheets the consolidated and company cash flow statements and the related notes these financial statements have been prepared in accordance with the 
basis and the accounting policies set out therein
this report is made solely to the company’s members as a body in accordance with section 235 of the companies act 1985 our audit work has been 
undertaken so that we might state to the company’s members those matters we are required to state to them in an auditors’ report and for no other 
purpose to the fullest extent permitted by law we do not accept or assume responsibility to anyone other than the company and the company’s 
members as a body for our audit work for this report or for the opinions we have formed
respective responsibilities of directors and auditors
the directors’ responsibilities for preparing the annual report and financial statements in accordance with applicable law and international financial 
reporting standards ifrs as adopted by the european union are set out in the statement of directors’ responsibilities in the directors’ report 
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 are 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 transactions with the 
company and other members of the group is not disclosed
we read other information contained in the annual report as described in the contents section and consider whether it is consistent with the audited 
group financial statements 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 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 financial statements give a true and fair view in accordance with ifrs as adopted by the european union of the state of group’s and the 
parent company’s affairs as at 29 february 2008 and of the group’s profit for the year then ended
  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 
uhy hacker young llp quadrant house
chartered accountants 17 thomas more street
registered auditors thomas more square
 london e1w 1yw
 14 may 2008 26  tangent communica tions plc  annual report and accounts 2008
consolidated income statement
for the year ended 29 february 2008
        2008 2007 
       notes £000 £000
revenue      3 17361 8605
cost of sales       9277 4515
gross profit       8084 4090
operating expenses       5646 3020
underlying operating profit        2438 1070
sharebased payment charge      23 402 388
operating profit      4 2036 682
finance income      7 58 8
profit before tax       2094 690
tax       8 552 86
profit for the year       1542 604
earnings per share pence      9  
basic       098 058
diluted       088 052
 earnings per sharebased on underlying profit is shown in note 9 to the financial statements 
the results shown above relate entirely to continuing and acquired operations and are attributable to equity shareholders of the company tangent communica tions plc  annual report and accounts 2008  27
consolidated statement of changes in equity
for the year ended 29 february 2008
        retained  
    share share merger other  earnings total 
    capital premium reserve reserves losses equity 
   note £000 £000 £000 £000 £000 £000
at 1 march 2006   951 7860 5189 1319 8593 6726
sharebased payment charge   — — — 388 — 388
issue of shares   167 — 1833 — — 2000
contingent consideration   — — — 500 — 500
release of funds on share distribution   — — — 1 9 10
retained profit for the year   — — — — 604 604
at 28 february 2007   1118 7860 7022 2208 7980 10228
sharebased payment charge   — — — 402 — 402
issue of shares   542 5594 867 501 — 6502
share issue costs   — 289 — — — 289
contingent consideration  14 — — — 999 — 999
capital restructuring   — 13165 7430 — 20595 —
retained profit for the year   — — — — 1542 1542
at 29 february 2008   1660 — 459 3108 14157 19384 28  tangent communica tions plc  annual report and accounts 2008
consolidated balance sheet
at 29 february 2008 
        2008 2007 
       notes £000 £000
assets
non‑current assets
intangible assets – goodwill      12 14961 8487
property plant and equipment      13 1638 675
          16599 9162
current assets
inventories      15 95 87
trade and other receivables      16 4324 2268
cash and cash equivalents       2664 1334
          7083 3689
total assets       23682 12851
liabilities
current liabilities
borrowings      17 90 70
trade and other payables      18 3391 1721
current tax liabilities       296 117
provisions      19 167 167
          3944 2075
non‑current liabilities
borrowings      17 149 215
provisions      19 166 333
deferred tax      20 39 —
          354 548
total liabilities       4298 2623
net assets       19384 10228
equity
share capital      22 1660 1118
share premium account       — 7860
merger reserve       459 7022
other reserves      24 3108 2208
retained earningslosses       14157 7980
total equity – attributable to equity shareholders of the company      19384 10228
these financial statements were approved by the board of directors on 14 may 2008 and were signed on its behalf by
nicholas green graeme harris
director director tangent communica tions plc  annual report and accounts 2008  29
consolidated cash flow statement
for the year ended 29 february 2008
        2008 2007 
       notes £000 £000
cash from operations
cash generated from operations      25 2552 1177
interest paid       29 19
tax paid       591 27
net cash inflow from operating activities       1932 1131
investing activities
acquisition of subsidiary net of cash acquired      27 5479 483
payment of contingent consideration       167 —
purchase of property plant and equipment      13 635 498
sale of property plant and equipment       27 61
interest received       87 27
net cash used in investing activities       6167 893
financing activities
proceeds from issue of shares net of costs       5771 —
repayment of borrowings       206 144
new borrowings raised       — 308
proceeds from exercise of share options       — 10
net cash inflow from financing activities       5565 174
increase in cash and cash equivalents       1330 412
cash and cash equivalents at beginning of year       1334 922
cash and cash equivalents at end of year      26 2664 1334 30  tangent communica tions plc  annual report and accounts 2008
company statement of changes in equity
for the year ended 29 february 2008
        retained  
    share share merger other  earnings total 
    capital premium reserve reserves losses equity 
   note £000 £000 £000 £000 £000 £000
at 1 march 2006   951 7860 5189 158 7772 6386
sharebased payment charge   — — — 388 — 388
issue of shares   167 — 1833 — — 2000
contingent consideration   — — — 500 — 500
release of funds on share distribution   — — — 1 9 10
retained loss for the year   — — — — 817 817
at 28 february 2007   1118 7860 7022 1047 8580 8467
sharebased payment charge   — — — 402 — 402
issue of shares   542 5594 867 501 — 6502
share issue costs   — 289 — — — 289
contingent consideration  14 — — — 999 — 999
capital restructuring   — 13165 7430 — 20595 —
retained loss for the year   — — — — 1146 1146
at 29 february 2008   1660 — 459 1947 10869 14935 tangent communica tions plc  annual report and accounts 2008  31
company balance sheet
at 29 february 2008
        2008 2007 
       notes £000 £000
assets
non‑current assets
investments in subsidiaries      14 17095 10055
         17095 10055
current assets
trade and other receivables      16 31 18
cash and cash equivalents       85 96
          116 114
total assets       17211 10169
liabilities
current liabilities
trade and other payables      18 1943 1202
provisions      19 167 167
          2110 1369
non‑current liabilities
provisions      19 166 333
          166 333
total liabilities       2276 1702
net assets       14935 8467
equity
share capital      22 1660 1118
share premium account       — 7860
merger reserve       459 7022
other reserves      24 1947 1047 
retained earningslosses        10869 8580
total equity – attributable to equity shareholders of the company      14935 8467
these financial statements were approved by the board of directors on 14 may 2008 and were signed on its behalf by
nicholas green graeme harris 
director director 32  tangent communica tions plc  annual report and accounts 2008
company cash flow statement
for the year ended 29 february 2008
        2008 2007 
       note £000 £000
cash from operations
cash generated from operations      25 21 594
interest paid       — —
tax paid       — —
net cash inflow from operating activities       21 594
investing activities
acquisition of subsidiary       5599 635
payment of contingent consideration       167 —
interest received       5 —
net cash used in investing activities       5761 635
financing activities
proceeds from issue of shares net of costs       5771 —
repayment of borrowings       — 25
proceeds from exercise of share options       — 9
net cash inflow from financing activities       5771 16
decrease in cash and cash equivalents       11 57
cash and cash equivalents at beginning of year       96 153
cash and cash equivalents at end of year       85 96 tangent communica tions plc  annual report and accounts 2008  33
notes to the financial statements
for the year ended 29 february 2008
1 introduction
in the year ended 28 february 2007 tangent communications plc “the company” and its subsidiaries together “tangent” prepared its consolidated 
financial statements under uk generally accepted accounting principles “uk gaap” with effect from 1 march 2007 the company is required to 
prepare its consolidated financial statements in accordance with international financial reporting standards “ifrs” tangent has therefore prepared 
both its consolidated financial statements and its parent company financial statements for the year ended 29 february 2008 in compliance with ifrs as 
adopted by the european union and those parts of the companies act 1985 applicable to companies reporting under ifrs tangent has presented one 
year of comparative ifrs information for the year ended 28 february 2007 and consequently the date of transition is 1 march 2006 “transition date” 
being the first day of the comparative year 
the comparative figures for the year ended 28 february 2007 prepared under ifrs are not tangent’s statutory accounts for that financial year those 
accounts which were prepared under uk gaap  have been reported on by tangent’s auditors and delivered to the registrar of companies the report 
of the auditors was i unqualified ii did not include a reference to any matters to which the auditors drew attention by way of emphasis without 
qualifying their report and iii did not contain a statement under section 2372 or 3 of the companies act 1985
2 summary of significant accounting policies
the principal accounting policies applied in the preparation of these consolidated financial statements are set out below these policies have been 
consistently applied to all the years presented
21 basis of preparation
these consolidated financial statements of the company and its subsidiaries are for the year ended 29 february 2008 
uk gaap differs in some areas from ifrs in preparing these consolidated financial statements the directors have amended certain accounting and valuation 
methods applied in the uk gaap financial statements to comply with ifrs the comparative figures have been restated to reflect these adjustments
reconciliations and descriptions of the effect of the transition from previously published uk gaap to ifrs on tangent’s equity net assets net income and 
cash flows are provided in note 31
the consolidated financial statements have been prepared under the historical cost convention and on a going concern basis
22 consolidation
subsidiaries are all entities which tangent has the power to govern the financial and operating policies generally accompanying a shareholding of more 
than one half of the voting rights subsidiaries are fully consolidated from the date on which control is transferred to tangent they are deconsolidated 
from the date that control ceases all active subsidiaries were held by a direct 100 shareholding by the parent company at the balance sheet date
the purchase method of accounting is used to account for the acquisition of subsidiaries the cost of an acquisition is measured as the fair value of the 
assets given equity instruments issued and liabilities incurred or assumed at the date of exchange plus costs directly attributable to the acquisition 
identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair value at the date 
of acquisition the excess of the cost of acquisition over the fair value of tangent’s share of the identifiable net assets acquired is recorded as goodwill
intragroup transactions balances and unrealised gains on transactions between group companies are eliminated accounting policies of subsidiaries 
have been changed where necessary to ensure consistency with the policies adopted by tangent
23 revenue recognition
revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of tangent’s activities 
revenue is shown net of valueadded tax returns rebates and discounts and after eliminating intragroup sales
tangent recognises revenue when the amount of revenue can be reliably measured it is probable that future economic benefits will flow to tangent 
and specific delivery criteria have been met 
24 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 that are different from those of segments operating in other economic environments in the directors’ opinion 
tangent operates in one business segment which cannot be subdivided in a meaningful way
25 foreign currency translation
a functional and presentational currency
items included in the financial statements of each of tangent’s entities are measured in sterling which is the company’s and the group’s functional 
and presentation currency
b transactions and balances
foreign currency transactions are translated into sterling using the exchange rates prevailing at the dates of the transactions exchange differences arising from 
the translation at the year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement 34  tangent communica tions plc  annual report and accounts 2008
notes to the financial statements continued
for the year ended 29 february 2008
2 summary of significant accounting policies continued
26 employee benefits
a pension obligations
tangent has defined contribution plans under which tangent pays fixed contributions into a separate entity tangent has no legal or constructive 
obligations to pay further contributions relating to employee service in the current and prior years the contributions are recognised as an employee 
benefit expense when they are due
b share‑based compensation
tangent operates a number of equitysettled sharebased compensation plans the fair value of the employee services received in exchange for the 
grant of the options is recognised as an expense the total amount to be expensed over the period until the option can be exercised is determined by 
reference to the fair value of the options granted excluding the impact of any nonmarket vesting conditions eg profitability and revenue growth 
targets nonmarket vesting conditions are included in the assumptions about the number of options that are expected to vest at each balance sheet 
date tangent revises its estimates of the number of options that are expected to vest it recognises the impact of the revision to original estimates if any 
in the income statement with a corresponding adjustment to equity
the proceeds received net of any directly attributable transaction costs are credited to share capital nominal value and share premium when the options 
are exercised 
27 intangible assets – goodwill
goodwill represents the excess of the cost of an acquisition over the fair value of tangent’s share of the net identifiable assets of the acquired subsidiary 
at the date of acquisition goodwill on acquisition of subsidiaries is included in intangible assets goodwill is tested annually for impairment and carried 
at cost less accumulated impairment losses any impairment on goodwill is recognised immediately in the income statement and is not subsequently 
reversed gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold
goodwill is allocated to cashgenerating units for the purpose of impairment testing the allocation is made to those cashgenerating units or groups 
of cashgenerating units that are expected to benefit from the business combination in which the goodwill arose tangent currently allocates goodwill 
to a single business segment
28 investments in subsidiaries
the parent company’s investments in subsidiary undertakings are included in the company balance sheet at cost less provision for any impairments in value
29 property plant and equipment
property plant and equipment are stated at historic cost less subsequent depreciation and impairment historic cost includes expenditure that is directly 
attributable to the acquisition of the items
depreciation on assets is calculated using the straight line method to allocate their cost less their residual values over their estimated useful lives as follows
 buildings   over the term of the lease 
 plant and equipment two to ten years
the assets’ residual values and useful lives are reviewed and adjusted if appropriate at each balance sheet date
subsequent costs are included in an asset’s carrying amount or recognised as a separate asset as appropriate only when it is probable that future 
economic benefits associated with the item will flow to tangent and the cost of the item can be measured reliably the carrying amount of a replaced 
part is derecognised all other repairs and maintenance are charged to the income statement during the financial year in which they are incurred
an asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount
gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the income statement 
210 inventories
inventories are stated at the lower of cost and net realisable value 
211 trade receivables
trade receivables are recognised initially at fair value a provision for impairment of trade receivables is established when there is objective 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 asset’s carrying amount and the present value of estimated future cash flows the carrying amount of the asset is reduced through the 
use of an allowance account and the amount of the loss is recognised in the income statement within operating expenses when a trade receivable is 
uncollectible it is written off against the allowance account for trade receivables subsequent recoveries of amounts previously written off are credited 
against operating expenses in the income statement 
212 cash and cash equivalents
cash and cash equivalents on the balance sheet include cash in hand short term deposits held with banks bank overdrafts are shown within borrowings 
in current liabilities on the balance sheet for the purposes of the cash flow statement cash and cash equivalents also include the bank overdrafts tangent communica tions plc  annual report and accounts 2008  35
2 summary of significant accounting policies continued
213 leases
leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases payments under 
operating leases net of any incentives received from the lessor are charged to the income statement on a straight line basis over the period of the lease
tangent leases certain plant and equipment where tangent has substantially all the risks and rewards of ownership these leases are classified as finance 
leases finance leases are capitalised at the lease commencement at the lower of the fair value of the leased property and the present value of the 
minimum lease payments
each finance lease payment is allocated between the liability and finance charges so as to achieve the explicit or implicit interest rate on the finance 
balance outstanding the corresponding rental obligations net of finance charges are included in other short term and other long term borrowings 
the interest element of the finance cost is charged to the income statement over the lease period the property plant and equipment acquired under 
finance leases is depreciated over the shorter of the useful life of the asset and the lease term
214 provisions
provisions are recognised when tangent 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 the amount has been reliably estimated provisions are not recognised for future operating losses
provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pretax rate that reflects current 
market assessments of the time value of money and the risks specific to the obligation the increase in the provision due to the passage of time is recognised 
as interest expense
215 deferred tax
deferred tax is provided in full using the liability method on temporary differences arising between the tax bases of assets and liabilities and their 
carrying amounts in the consolidated financial statements deferred tax is not accounted for if it arises from initial recognition of an asset or liability in 
a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss deferred tax 
is determined using tax rates that are expected to apply when the related deferred tax asset is realised or when the deferred tax liability is settled
deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences 
can be utilised
216 equity instruments
ordinary shares are classified as equity costs directly attributable to the issue of new shares are shown as equity as a deduction from the proceeds
217 new standards and interpretations not applied
at the date of authorisation of these financial statements ifrs 8 operating segments was in issue but not yet effective so has not been applied 
the directors anticipate that the adoption of the ifrs standards and interpretations that are currently in issue but not yet effective will have no material 
impact on the financial statements of the group except for possible additional disclosures on operating segments when ifrs 8 comes into effect for the 
year commencing on 1 march 2009
218 accounting estimates and judgements
estimates and judgements are continually evaluated and are based on historical experience and other factors including expectations of future events that 
are believed to be reasonable under the circumstances
tangent makes estimates and assumptions concerning the future the resulting accounting estimates will by definition rarely equal the related actual 
results the estimates and assumptions that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within 
the next financial year are outlined below
a intangible fixed assets
tangent tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated in note 27 the recoverable 
amounts from cashgenerating units are determined based on valueinuse calculations these calculations require the use of estimates in arriving at the 
fair value of goodwill tangent estimates the future consideration payable for acquisitions where the final consideration is contingent upon future events 
or performance estimated future consideration is reviewed and accrued at each balance sheet date if recoverable amounts of cashgenerating units are 
below the estimated levels or if the future consideration payable on acquisitions is higher than estimated an impairment loss may be triggered
b deferred tax
tangent estimates future profitability in arriving at the fair value of the deferred tax assets and liabilities if the final tax outcome is different to the 
estimated deferred tax amount the resulting changes will be reflected in the income statement unless the tax relates to an item charged to equity 
in which case the changes in tax estimates will also be reflected in equity 36  tangent communica tions plc  annual report and accounts 2008
notes to the financial statements continued
for the year ended 29 february 2008
3 continuing and acquired operations
      2008 2008 2008 2007 
      continuing acquired total total 
      £000 £000 £000 £000
revenue     9959 7402 17361 8605
cost of sales     5058 4219 9277 4515
gross profit     4901 3183 8084 4090
operating expenses     3594 2052 5646 3020
underlying operating profit      1307 1131 2438 1070
sharebased payment charge     402 — 402 388
operating profit     905 1131 2036 682
on 27 march 2007 tangent acquired ravensworth digital services limited and further details are set out in note 27
4 operating costs
the operating costs which are deducted from revenue in arriving at operating profit are analysed as follows
        2008 2007 
       note £000 £000
employee benefits      6 6159 3680
direct purchases for goods and services provided       6385 2859
depreciation       488 342
other expenses       2293 1042
         15325 7923
5 auditors’ remuneration
        2008 2007 
        £000 £000
audit       50 35
tax services       12 5
other services       57 24
         119 64
the other services were £28000 2007 £16000 for due diligence work on the acquisition of subsidiaries £19000 2007 £nil for ifrs advisory work 
and £10000 2007 £8000 for reviewing the group interim report
6 employee information
        2008 2007 
       note £000 £000
wages and salaries       5230 2940
social security costs       481 315
pension contributions       46 37
sharebased payment charge      23 402 388
        6159 3680
the average number of employees including directors by location was
        2008 2007 
        number number
london       88 74
newcastle       66 —
cheltenham       20 20
        174 94
details of directors’ emoluments including details of share option schemes are given in the report of the remuneration committee on pages 23 and 24 
these disclosures form part of the audited financial statements of the group tangent communica tions plc  annual report and accounts 2008  37
7 finance income 
        2008 2007 
        £000 £000
interest receivable on deposits       87 27
interest payable on finance leases       29 19
        58 8
8 taxation
        2008 2007 
current year       £000 £000
uk corporation tax       552 86
uk corporation tax is calculated at 30 of the estimated assessable profit for the period
        2008 2007 
reconciliation of the tax charge in the income statement       £000 £000
profit before tax       2094 690
tax at the weighted average tax rate of 30 2007 30       628 207
tax effects of
deferred tax assets not recognised       203 252
expenditure not deductible for tax purposes       135 131
other adjustments       8 —
tax charge for the year       552 86
deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which losses can be 
utilised the carrying value of deferred tax assets recognised at 29 february 2008 is £nil 2007 £nil 
the group has tax losses available to carry forward against future profits amounting to £700000 2007 £1158000 and the unrecognised deferred tax 
asset at 29 february 2008 is £210000 2007 £347000
9 earnings per share
the calculation of the basic and diluted earnings per share is based on the following
        2008 2007 
        £000 £000
profit attributable to shareholders       1542 604
sharebased payments       402 388
underlying profit attributable to shareholders       1944 992
        number number 
weighted average number of shares       000 000
for basic earnings per share       156996 104278
adjustment for options outstanding       9417 8972
adjustment for contingent shares       8325 2665
for diluted earnings per share       174738 115915
        pence per pence per 
earnings per share       share share
basic       098 058
underlying basic       124 095
diluted       088 052
underlying diluted       111 086
diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive 
potential ordinary shares tangent has two categories of dilutive potential ordinary shares share options and shares contingently issuable as consideration 
for an acquisition
a calculation is performed for the share options to determine the number of shares that could have been acquired at fair value based on the monetary 
value of the subscription rights attached to the outstanding share options the number of shares from this calculation is compared with the number of 
shares that would have been issued assuming the exercise of the options and the difference is deemed to be the number of dilutive shares attributable 
to share options
the estimated number of shares that will be issued in the future as purchase consideration for current subsidiaries is deemed to be the number of dilutive shares 
issuable as consideration for acquisitions 38  tangent communica tions plc  annual report and accounts 2008
notes to the financial statements continued
for the year ended 29 february 2008
10 dividends
        2008 2007 
        £000 £000
proposed final dividend for the year of 02p per share       337 —
the proposed final dividend is subject to approval by shareholders at the 2008 annual general meeting and has not been included as a liability in these 
financial statements if approved it will be the first dividend payable by the company
the tangent employee share ownership trust which holds a total of 1428340 ordinary shares has agreed to waive all dividends the directors 
estimate that a further 4166666 new shares will be issued before the record date for the dividend and so the dividend will be payable on approximately 
1687m ordinary shares
11 income statement for the parent company
in accordance with section 230 of the companies act 1985 the parent company has not published an income statement the loss dealt with 
in the financial statements of the parent company of £1146000 2007 £817000 has been included in the consolidated income statement
12 intangible assets – goodwill
        2008 2007 
group       £000 £000
cost and net book value
at 1 march       8487 5051
additions        6474 3436
at 29 february       14961 8487
additions to goodwill in the year ended 28 february 2007 arose on the acquisition of c360 uk limited in july 2006 additions to goodwill in the 
year ended 29 february 2008 comprise £5474000 on the acquisition of ravensworth digital services limited note 27 and an additional £999000 
of contingent equity consideration that the directors estimate will be payable on the acquisition of c360 uk limited 
no further consideration is payable for the acquisition of ravensworth digital services limited the financial statements provide for the payment of the 
maximum contingent consideration under the agreement to purchase c360 uk limited
the group tests goodwill annually for impairment or more frequently if there are indications that goodwill might be impaired the recoverable amount 
for impairment testing is determined based on valueinuse calculations using cash flow projections based on budgets and forecasts approved by the 
board cash flows beyond five years are extrapolated using a growth rate of 3 a discount rate of 10 has been applied to the projected cash flows 
the directors have concluded that the value of goodwill has not been impaired
13 property plant and equipment
       short    
       leasehold    
       land and plant and  
       buildings equipment total  
group      £000 £000 £000
cost
at 1 march 2006      41 1757 1798
additions      18 480 498
acquired with subsidiary      — 8 8
disposals      — 284 284
at 28 february 2007       59 1961 2020
additions      10 625 635
acquired with subsidiary       389 978 1367
disposals      — 73 73
at 29 february 2008       458 3491 3949
depreciation
at 1 march 2006      21 1261 1282
charge for the year      11 331 342
disposals      — 279 279
at 28 february 2007      32 1313 1345
charge for the year      37 450 487
acquired with subsidiary      40 503 543
disposals      — 64 64
at 29 february 2008       109 2202 2311
net book value
at 29 february 2008      349 1289 1638
at 28 february 2007       27 648 675
included within net book value of plant and equipment is £272000 2007 £298000 in respect of assets held under finance leases included within the 
depreciation charge for the year is £107000 2007 £68000 in respect of assets held under finance leases tangent communica tions plc  annual report and accounts 2008  39
14 investments in subsidiaries
        2008 2007 
company       £000 £000
cost
at 1 march       10319 6683
additions       7040 3636
at 29 february       17359 10319
provision for impairment
at 1 march and 29 february       264 264
net book value
at 29 february       17095 10055
additions to investments in the year ended 28 february 2007 arose on the acquisition of c360 uk limited in july 2006 additions to investments in the 
year ended 29 february 2008 comprise £6041000 on the acquisition of ravensworth digital services limited note 27 and an additional £999000 
of contingent equity consideration that the directors estimate will be payable on the acquisition of c360 uk limited 
in the opinion of the directors the aggregate value of the investment in subsidiary undertakings is not less than the amount at which it is stated in the 
balance sheet
subsidiary undertakings
the company’s trading subsidiaries are as follows
         interest in 
        principal  ordinary  
name      activity  share capital
ravensworth digital services ltd      marketing services  100
tangent labs ltd formerly c360 uk ltd      marketing services  100
tangent marketing services ltd      marketing services  100
the subsidiary companies are all incorporated in england and their results have been consolidated in these financial statements
15 inventories
  group  company
      2008 2007 2008 2007  
      £000 £000 £000 £000
consumables     89 72 — —
work in progress     6 15 — —
      95 87 — —
16 trade and other receivables
  group  company
      2008 2007 2008 2007  
      £000 £000 £000 £000
trade receivables     3935 2063 — —
other receivables     6 13 31 18
prepayments and accrued income     383 192 — —
      4324 2268 31 18
17 borrowings
group borrowings comprise finance leases with repayments due as follows
    present value 
  minimum lease  of minimum lease 
  payments   payments 
      2008 2007 2008 2007  
      £000 £000 £000 £000
within one year      101 86 90 70
after one but not more than five years     159 235 149 215
      260 321
less finance charges allocated to future years     21 36
present value of finance lease borrowings     239 285 239 285 40  tangent communica tions plc  annual report and accounts 2008
notes to the financial statements continued
for the year ended 29 february 2008
18 trade and other payables
  group  company
      2008 2007 2008 2007  
      £000 £000 £000 £000
trade payables     1548 949 — 8
other taxes and social security     346 377 — —
other creditors     233 59 — 2
accruals     1264 336 133 —
owed to group companies     — — 1810 1192
      3391 1721 1943 1202
19 provisions
  group  company
      2008 2007 2008 2007  
      £000 £000 £000 £000
at 1 march     500 32 500 25
contingent acquisition consideration     — 500 — 500
settled in the year     167 21 167 14
released in the year     — 11 — 11
at 29 february     333 500 333 500
  group  company
      2008 2007 2008 2007  
analysed as     £000 £000 £000 £000
current liabilities     167 167 167 167
noncurrent liabilities     166 333 166 333
      333 500 333 500
provisions are for the estimated cash consideration that the directors expect to be paid for the acquisition of c360 uk limited the amount provided 
is the maximum amount payable under the purchase agreement
20 deferred tax
  group  company
      2008 2007 2008 2007  
      £000 £000 £000 £000
at 1 march     — — — —
on acquisition     39 — — —
at 29 february     39 — — —
the deferred tax liability is from accelerated capital allowances in ravensworth digital services limited tangent communica tions plc  annual report and accounts 2008  41
21 financial instruments 
the group’s financial instruments comprise cash liquid resources and various items such as debtors and creditors that arise directly from its operations 
the main risk arising from the group’s financial instruments is interest rate risk the group monitors its interest rate risk primarily through monthly cash 
flow forecasting 
short term debtors and creditors
short term debtors and creditors have been excluded from the financial instruments disclosures
interest rate risk
the group finances its operations through funds raised from shareholders retained earnings and finance lease borrowings throughout the year the 
group’s exposure to interest rate fluctuations was on its cash deposits and finance leases
foreign currency risk
the group policy is to match foreign currency payments and receipts where possible and to ensure by hedging if necessary to avoid a material foreign 
currency risk
credit risk
the group’s policy is that customers who wish to trade on credit terms are subject to credit verification procedures in addition receivable balances are 
monitored on an ongoing basis with the result that the group’s exposure to bad debts has not been significant credit risk arising from other financial assets 
which comprise only cash deposits the group’s exposure has been minimised by only placing deposits with banks with high credit ratings
liquidity risk
the group operates a cashgenerative business holds net funds has an undrawn overdraft facility of £1m the risk of a shortage of funds is therefore low
capital management
the group ensures that the capital structure maintains a strong credit rating a low reliance on debt and resources that enable the group to make small 
scale acquisitions quickly if desired
interest rate risk profile of financial assets and liabilities
the interest rate profile of the group’s financial assets and liabilities was
       floating rate  floating rate 
      fixed rate financial fixed rate financial  
      financial assets financial assets 
      liabilities liabilities liabilities liabilities 
      2008 2008 2007 2007  
      £000 £000 £000 £000
cash balances     — 2664 — 1334
finance leases     23 216 — 285
      23 2448 — 1049
interest on cash is based on short term floating rates linked to money market rates the average rate of interest on floating rate liabilities is 088 above 
bank base rate the average rate of interest on fixed rate liabilities is 458
fair value of financial instruments
the group’s financial instruments which comprise cash and short term deposits and variable rate finance leases are carried at amortised cost which 
is also considered to be equivalent to their fair value
borrowing facilities
on 6 march 2007 tangent agreed a £1m overdraft facility at a rate of 125 over base rate secured by cross guarantees and debentures the overdraft 
facility has never been drawn but having the facility improves the financial flexibility of the group the finance lease liabilities as set out in note 17 are all 
secured on the assets against which the borrowings were provided 42  tangent communica tions plc  annual report and accounts 2008
notes to the financial statements continued
for the year ended 29 february 2008
22 share capital
  number of shares  nominal value
      2008 2007 2008 2007  
      £000 £000 £000 £000
authorised
at 1 march      142670 142670 1427 1427
increase on 23 march 2007     82330 — 823 —
increase on 17 january 2008     743016 — 7430 —
decrease on 17 january 2008     743016 — 7430 —
at 29 february     225000 142670 2250 1427
allotted and fully paid
  number of   
  ordinary 1p shares  nominal value
      2008 2007 2008 2007  
a      £000 £000 £000 £000
at 1 march      111780 95113 1118 951
issued in the year     54187 16667 542 167
at 29 february     165967 111780 1660 1118
  number of   
  deferred 1p shares  nominal value
      2008 2007 2008 2007  
b      £000 £000 £000 £000
at 1 march      — — — —
issued on 17 january 2008      743016 — 7430 —
cancelled on 17 january 2008     743016 — 7430 —
at 29 february     — — — —
on 26 and 27 march 2007 a total of 50011828 ordinary shares of 1p each were allotted at 13p per share of which 46615385 shares were placed for 
cash and 3396443 were allotted as part consideration for the acquisition of ravensworth digital services limited
on 17 january 2008 tangent undertook a capital restructuring to enable it to pay dividends at a general meeting held on that date the authorised 
capital was increased deferred shares were issued and then immediately cancelled and the authorised capital was reduced so it was the same as at the 
beginning of the meeting the share capital of the company was thus changed for less than an hour before reverting to the same as it had been at the 
beginning of the meeting details of the changes are set out in the directors’ report
on 19 february 2008 4175000 ordinary shares of 1p each were allotted at 12p per share as part of the contingent consideration for the acquisition 
of c360 uk limited tangent communica tions plc  annual report and accounts 2008  43
23 share options
the movements in share options and corresponding weighted average exercise prices waep are summarised below
  2008  2007
      number waep number waep 
      000 pence 000 pence
at 1 march      13525 444 13810 434
granted     1540 963 265 1175
exercised for cash     — — 200 467
lapsed     194 1198 350 489
at 29 february     14871 519 13525 444
for the share options outstanding at 29 february 2008 exercise prices ranged between 1p and 1325p per share and the weighted average remaining 
contractual life was 75 years 
for the options exercised in the prior year the weighted average share price at exercise was 11p
fair values
the fair value of share options granted in the year was calculated using a blackscholes option pricing model with the following inputs 
weighted average share price  1327p 
weighted average exercise price 963p 
expected volatility   20 
expected life   5–10 years 
risk free rate   53 
expected dividend yield  15
the expected volatility measured as the standard deviation of expected share price return is based on a statistical analysis of the t angent share price since july 2005 
the total share option charge for the year was £402000 2007 £388000 in accordance with the requirements of ifrs 2 on sharebased payments 
the charge relates principally to the share options granted to directors in september 2005 as disclosed in the remuneration report on pages 23 to 24
24 other reserves
  group  company
      2008 2007 2008 2007 
      £000 £000 £000 £000
esop reserve     3 3 3 3
sharebased payments reserve     951 550 951 550
capital reserve     999 500 999 500
restructure reserve     1161 1161 — —
      3108 2208 1947 1047
the esop reserve represents the cost of tangent shares held by the employee share ownership trust at 29 february 2008 the employee share ownership 
trust held a total of 1428340 2007 1448340 ordinary shares with a market value of £168000 2007 £192000 
the sharebased payment reserve represents the value of sharebased payments recognised in the income statement to date less any transfers to retained 
earnings that arise from the shares issue on the exercise of options
the capital reserve represents the future share capital and the associated merger reserve that is expected to result from the proposed issue of 8325000 
ordinary shares at 12p each as contingent share consideration note 14
the restructure reserve represents the consolidated capital reserve which arose when the group restructured and floated on aim in may 2000 44  tangent communica tions plc  annual report and accounts 2008
notes to the financial statements continued
for the year ended 29 february 2008
25 cash generated from operations
        2008 2007 
a group       £000 £000
profit before tax for the year        2094 690
depreciation       487 342
profit on sale of plant and equipment       18 56
net interest income       58 8
sharebased payment charge       402 388
decrease in inventories       24 11
increase in trade and other receivables       243 464
decreaseincrease in trade and other payables       136 274
cash generated from operations       2552 1177
        2008 2007 
b company       £000 £000
loss before tax for the year        1146 817
sharebased payment charge       402 388
increase in trade and other receivables       13 —
increase in trade and other payables       736 1023
cash generated from operations       21 594
26 analysis of net funds
         at 
      at 1 march  cash 29 february 
      2007  acquisition flows   2008  
      £000  £000  £000   £000 
cash     1334 120 1210 2664
bank borrowings     — 52 52 —
finance leases     285 108 154 239
net funds     1049 40 1416 2425
27 acquisition
on 27 march 2007 tangent acquired the entire share capital of ravensworth digital services limited ravensworth a digital marketing business based 
in newcastle principally serving the property sector the assets and liabilities arising from the acquisition are as follows
       book fair value fair 
       values adjustments values 
       £000  £000   £000 
property plant and equipment      963 139 824
inventories      32 — 32
trade and other receivables      1867 56 1811
cash and cash equivalents      120 — 120
borrowings      159 — 159
provisions for liabilities and charges      39 — 39
trade and other payables      1805 — 1805
current tax liabilities      234 17 217
net assets      745 178 567
goodwill        5474
total consideration        6041
total consideration was paid as follows
cash        5408
issue of shares 3396443 shares at 13p        442
acquisition costs        191
         6041
net cash outflow arising from the acquisition was as follows
purchase consideration settled in cash        5408
acquisition costs        191
cash paid for acquisition        5599
cash and cash equivalents in subsidiary acquired        120
cash paid net of cash and cash equivalents in subsidiary acquired       5479
no deferred or contingent consideration is payable as part of the acquisition of ravensworth the fair value of the equity consideration was determined 
by reference to the price of the placings of tangent shares on 26 and 27 march 2007 tangent communica tions plc  annual report and accounts 2008  45
27 acquisition continued
from 1 march 2007 until its acquisition on 27 march 2007 ravensworth operated under a higher cost structure which included costs for directors who 
departed on acquisition if the results of ravensworth had been consolidated from the beginning of tangent’s financial year instead of from the date of 
acquisition group revenue would have increased by £678000 and group profit before tax would have increased by £6000
28 operating lease commitments
        2008 2007 
        £000 £000
minimum lease payments under operating leases recognised as an expense in the year     1927 171
future minimum lease payments under noncancellable operating leases are as follows
        2008 2007 
        £000 £000
within one year       2164 23
after one but not more than five years       5230 139
after five years       1805 —
        9199 162
the increase in operating lease commitments arose from the acquisition of ravensworth digital services limited which had two significant operating 
lease commitments these related to the supply and maintenance of print engines and the lease of its current premises
29 related party transactions
compensation of key management personnel
key management personnel of the group are defined as those persons having authority and responsibility for the planning directing and controlling the 
activities of the group directly or indirectly key management of the group are therefore considered to be the directors of tangent communications plc 
there were no transactions with the key management other than their emoluments which are set out in the report of the remuneration committee on 
pages 23 to 24
30 post balance sheet events
on 14 may 2008 the directors recommended payment of a dividend which is subject to approval at the 2008 annual general meeting details are set out 
in note 10
31 transition from uk gaap to ifrs
tangent’s first financial statements which have been prepared on an ifrs basis are these for the year ended 29 february 2008 which include comparative 
ifrs financial statements for the year ended 28 february 2007
set out in this note is a reconciliation between uk gaap and ifrs for the following
 balance sheet at the date of transition of 1 march 2006
 balance sheet at the date of the prior year financial statements of 28 february 2007 and
 income statement for the prior year ended 28 february 2007
cash flow statements have not been prepared as there are no adjustments
there are no changes to the parent company’s financial statements resulting from the transition from uk gaap to ifrs at the transition date of 1 march 2006 
and for the year ended 28 february 2007 therefore no financial statements are shown below for the company
the changes on the transition to ifrs arise from the following principal factors
i presentation of financial statements
presentation has been changed to be in compliance with ias 1 “presentation of financial statements” and terminology has also been changed to reflect 
headings used in ifrs 
the cash flow statements are presented in accordance with ias 7 “cash flow statements” cash flows have been grouped under three main headings 
cash flows from operating investing and financing activities these headings differ from those presented under uk gaap 
ii ifrs 3 “business combinations”
under ifrs goodwill arising on acquisition is capitalised and subject to an annual impairment review under uk gaap  goodwill was amortised over its 
estimated useful life consequently under ifrs this amortisation charge has been reversed from the consolidated income statement and added back to 
the net book value of goodwill
ifrs 1 “firsttime adoption of international financial reporting standards” permits companies adopting ifrs for the first time to take certain exemptions 
from the full requirements of ifrs in the transition year the financial statements have been prepared on the basis of the following material exemptions
net book value as deemed cost
ifrs 1 does not require a company to recreate cost information for property plant and equipment and goodwill the group’s net book value of goodwill 
at 1 march 2006 is the deemed cost under ifrs going forward this cost is therefore used as the basis for subsequent impairment tests for goodwill 
accounting estimates
ifrs 1 prohibits the use of hindsight to correct estimates made under previous gaap unless there is objective evidence of error the group used the same 
estimates made under uk gaap for the opening ifrs balance sheet at 1 march 2006  46  tangent communica tions plc  annual report and accounts 2008
notes to the financial statements continued
for the year ended 29 february 2008
31 transition from uk gaap to ifrs continued
reconciliation of the group balance sheet at the transition date of 1 march 2006
        effect of   
        transition  
       uk gaap to ifrs ifrs 
       £000 £000 £000
assets 
non‑current assets
intangible assets – goodwill      5051 — 5051
property plant and equipment      516 — 516
         5567 — 5567
current assets
inventories      98 — 98
trade and other receivables      1656 — 1656
cash and cash equivalents      922 — 922
         2676 — 2676
total assets      8243 — 8243
liabilities
current liabilities
borrowings      108 — 108
trade and other payables      1362 — 1362
current tax liabilities      2 — 2
         1472 — 1472
non‑current liabilities
borrowings      13 — 13
provisions      32 — 32
         45 — 45
total liabilities      1517 — 1517
net assets      6726 — 6726
equity
share capital      951 — 951
share premium account      7860 — 7860
merger reserve      5189 — 5189
other reserves      1319 — 1319
revenue reserve      8593 — 8593
total equity and reserves      6726 — 6726 tangent communica tions plc  annual report and accounts 2008  47
31 transition from uk gaap to ifrs continued
reconciliation of the group balance sheet at the comparative date of 28 february 2007
        effect of   
        transition  
       uk gaap to ifrs ifrs 
       £000 £000 £000
assets 
non‑current assets
intangible assets – goodwill      8102 385 8487
property plant and equipment      675 — 675
         8777 385 9162
current assets
inventories      87 — 87
trade and other receivables      2268 — 2268
cash and cash equivalents      1334 — 1334
        3689 — 3689
total assets      12466 385 12851
liabilities
current liabilities
borrowings      70 — 70
trade and other payables      1721 — 1721
current tax liabilities      117 — 117
provisions      167 — 167
         2075 — 2075
non‑current liabilities
borrowings      215 — 215
provisions      333 — 333
         548 — 548
total liabilities      2623 — 2623
net assets      9843 385 10228
equity
share capital      1118 — 1118
share premium account      7860 — 7860
merger reserve      7022 — 7022
other reserves      2208 — 2208
revenue reserve      8365 385 7980
total equity and reserves      9843 385 10228
reconciliation of the group income statement for comparative year ended 28 february 2007
         effect of   
         transition  
       uk gaap to ifrs  ifrs 
       £000  £000  £000
revenue      8605 — 8605
cost of sales      4515 — 4515
gross profit      4090 — 4090
operating expenses      3020 — 3020
underlying operating profit       1070 — 1070
amortisation of goodwill      385 385 —
sharebased payments      388 — 388
operating profit      297 385 682
finance costs – net      8 — 8
profit before tax      305 385 690
tax       86 — 86
profit for the year      219 385 604 48  tangent communica tions plc  annual report and accounts 2008
notice of annual general meeting
tangent communications plc
notice is hereby given that the 2008 annual general meeting of the company will be held at the offices of pinsent masons llp  citypoint one ropemaker street 
london ec2y 9ah on thursday 24 july 2008 at 10am for the following purposes
ordinary business
1 to receive the accounts and the reports of the directors and the auditors for the financial year ended 29 february 2008
2 to declare a final dividend for the financial year ended 29 february 2008 of 02p per ordinary share
3 to reelect nicholas green as a director who is retiring by rotation in accordance with the company’s articles of association 
4  to reappoint greg jackson as a director who was appointed since the last annual general meeting and who is retiring in accordance with 
the company’s articles of association 
5  to reappoint uhy hacker y oung llp as auditors of the company from the conclusion of this meeting until the conclusion of the next general 
meeting at which accounts are laid before the shareholders and to authorise the directors to fix the auditors’ remuneration 
special business
to consider and if thought fit pass the following resolutions which will be proposed as to resolution numbered 6 as an ordinary resolution and 
as to resolutions numbered 7 and 8 as special resolutions
6  that as an ordinary resolution in substitution for all subsisting authorities the directors be and they are hereby generally and unconditionally 
authorised to exercise all powers of the company to allot relevant securities within the meaning of section 80 of the companies act 1985 up to 
an aggregate nominal amount of £553222 for the period expiring on 23 july 2013 unless previously renewed varied or revoked by the company 
in general meeting but the company may before such expiry make an offer or agreement which would or might require relevant securities to be 
allotted after such expiry 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 
7  that as a special resolution subject to the passing of resolution 6 the directors be and they are hereby generally empowered pursuant to section 95 
of the companies act 1985 the “act” to allot equity securities within the meaning of section 942 to section 94 3a of the act for cash pursuant 
to the authority conferred by resolution 6 as if section 891 of the act did not apply to the allotment this power is limited to
 a  the allotment of equity securities where such securities have been offered whether by way of a rights issue open offer or otherwise to holders 
of ordinary shares in the capital of the company made in proportion as nearly as may be to their existing holdings of ordinary shares but 
subject to the directors having a right to make such exclusions or other arrangements in connection with the offering as they deem necessary 
or expedient 
  i to deal with equity securities representing fractional entitlements and
  ii to deal with legal or practical problems under the laws of any territory or the requirements of any regulatory body or stock exchange and
 b  the allotment of equity securities for cash otherwise than pursuant to paragraph a up to an aggregate nominal amount of £82983 
and will expire on 23 july 2013 but 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 equity securities in pursuance of that offer or agreement as if the power 
conferred by this resolution had not expired 
   this power applies in relation to a sale of shares which is an allotment of equity securities by virtue of section 943a of the act as if in the first 
paragraph of this resolution the words “pursuant to the authority conferred by resolution 6” were omitted
8  that as a special resolution with effect from 1 october 2008 or such later date as section 175 companies act 2006 shall be brought into force articles 
177 and 178 of the articles of association of the company be deleted in their entirety and a new article 18 as set out in the document produced to the 
meeting and signed by the chairman of the meeting be substituted therefor and the remaining articles be renumbered articles 19 to 39
by order of the board 
secretary registered office
14 may 2008 truscott house
 32–42 east road 
 london n1 6ab 
  tangent communica tions plc  annual report and accounts 2008  49
notes
1  a member entitled to attend and vote at the meeting is also entitled to appoint a proxy or proxies to attend speak and vote instead of him a member 
may appoint more than one proxy in relation to the meeting provided that each proxy is appointed to exercise the rights attached to a different 
share or shares held by that member a proxy need not be a member of the company appointment of a proxy will not preclude a member from 
attending and voting in person at the meeting 
2  to be effective the instrument appointing a proxy and any power of attorney or other authority under which it is executed or a notarially certified 
copy of such power or authority must be deposited at the offices of the company’s registrars capita registrars the registry 34 beckenham road 
beckenham kent br3 4tu no later than 10am on 22 july 2008 a form of proxy is enclosed with this notice
3  in the case of joint holders of a share the vote of the senior who tenders a vote whether in person or by proxy shall be accepted to the exclusion 
of the votes of the other joint holders for this purpose seniority is determined by the order in which the names of the holders stand in the register 
of members in respect of the joint holding 
4  the following documents which are available for inspection during normal business hours at the registered office for the company public holidays 
excluded will also be available for inspection at the place of the annual general meeting from 945am until its conclusion
41 the register of interests of directors and their families in the share capital of the company 
42 copies of all directors’ service contracts and letters of appointment 
43 the articles of association of the company and
44 a copy of the amendments proposed to be made to the articles of association pursuant to resolution 8 above
5  pursuant to regulation 41 of the uncertificated securities regulations 2001 the time by which a person must be entered on the register of members in 
order to have the right to attend and vote at the annual general meeting is 6pm on 22 july 2008 being not more than 48 hours prior to the time fixed for 
the meeting or if the meeting is adjourned such time being not more than 48 hours prior to the time fixed for the adjourned meeting changes to entries 
on the register of members after that time will be disregarded in determining the right of any person to attend or vote at the meeting
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 with instructions 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 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 representation letter if the chairman is being appointed as described in i above
7 persons who are not shareholders in the company will not be admitted to the meeting unless prior arrangements are made with the company
8 explanatory notes in relation to the resolutions to be proposed at the meeting are set out in the following explanatory notes 50  tangent communica tions plc  annual report and accounts 2008
notice of annual general meeting continued
explanatory notes
resolution 1 reports and accounts
the directors are required to present to the meeting the audited accounts and the reports of the directors and the auditors for the financial year ended 
29 february 2008 
resolution 2 declaration of dividend
final dividends must be approved by shareholders but cannot exceed the amount recommended by the directors 
resolution 3 reelection of director
under the company’s articles of association directors are obliged to retire by rotation every three years this year nicholas green is retiring and seeking 
reelection his biographical details are set out on page 17 of the annual report
resolution 4 reappointment of director
under the company’s articles of association directors who have been appointed since the previous annual general meeting are obliged to retire and 
seek reappointment at the first annual general meeting after their appointment greg jackson was appointed on 14 may 2008 so he is retiring and 
seeking reappointment his biographical details are set out on page 17 of the annual report
resolution 5 reappointment of auditors
the company is required to appoint auditors at each general meeting at which accounts are laid before the company to hold office until the end of the 
next such meeting this resolution proposes the appointment and in accordance with standard practice gives authority to the directors to determine 
the remuneration to be paid to the auditors
resolution 6 authority to allot shares
this resolution authorises the directors to allot ordinary shares up to an aggregate nominal amount of £553222 this is equivalent to 33 of the issued 
ordinary share capital of the company as at 14 may 2008 the authority will expire on 23 july 2013 although the directors have no present intention 
of exercising this authority it is considered prudent to maintain the flexibility it provides
this resolution complies with institutional investor guidelines and will replace the authority given to the directors at the annual general meeting in 2007
resolution 7 disapplication of preemption rights
if equity securities are to be allotted for cash section 89 1 of the companies act 1985 requires that those equity securities are offered first to existing 
shareholders in proportion to the number held by them at the time of the offer and otherwise in compliance with the technical requirements of that act 
however there are occasions when it may be in the interests of the company for the directors to allot shares other than to shareholders in proportion 
to their existing holdings or otherwise than strictly in compliance with those requirements
this resolution would renew the authority of the directors to allot equity securities for cash without first being required to offer such securities to existing 
shareholders the authority relates to allotments in respect of rights issues and similar offerings where technical difficulties can arise in relation to fractional 
entitlements and overseas shareholders and also generally in relation to other allotments up to £82983 of nominal capital being approximately 5 of the 
issued ordinary share capital of the company as at 14 may 2008 the authority will expire on 23 july 2013
this resolution complies with institutional investor guidelines and will replace the authority given to the directors at the annual general meeting in 2007
resolution 8 amendment to the articles of association
the companies act 2006 the “2006 act” is being implemented in stages the phase that is expected to come into force on 1 october 2008 introduces 
changes relating to directors’ conflicts of interest
the new provisions mean that a director must avoid a situation where there is or might be a direct or indirect interest that conflicts with the company’s 
interests the requirement is very broad and could apply if a director becomes a director of another company or a trustee of a different organisation 
the 2006 act allows directors of public companies to authorise conflicts and potential conflicts where the articles of association contain suitable provisions 
the 2006 act also allows the articles of association of a company to include provisions for dealing with directors’ conflicts of interest to avoid any potential 
breach of duty on the part of the directors the amendments proposed to be made to the company’s articles of association the “articles” pursuant 
to resolution 8 give the directors authority to approve such situations and to allow conflicts of interest to be dealt with in a similar manner to the way 
in which they are currently handled
the new provisions include safeguards so that only directors who have no interest in the matter being considered will be able to take the decision and 
in making the decision the directors must act in a way they consider most likely to promote the success of the company the directors will also be able 
to impose limits or conditions on the authorisation that they have given
the proposed amendments also contain provisions relating to confidential information to protect a director from being in breach of duty if a conflict 
of interest arises these provisions can only apply where the situation giving rise to the conflict has already been authorised by the directors
given the staged implementation of the 2006 act a comprehensive review of the articles will be undertaken before the 2009 annual general meeting 
and it is anticipated that further amendments to the articles will be proposed at that time tangent communica tions plc  annual report and accounts 2008  51
tangent communications plc
registered number 3967805
form of pro xy
for use by ordinary shareholders for the annual general meeting to be held on 24 july 2008
iwe block capitals 
of 
being a holders of ordinary shares in the company hereby appoint the chairman of the meeting or note 1
to vote   number of shares note 1
as myour proxy to vote for meus and on myour behalf at the annual general meeting of the company to be held on 24 july 2008 and at any 
adjournment thereof
iwe direct myour proxy to vote as indicated by an x in the appropriate column note 2
if you wish to appoint multiple proxies please see note 2
     vote 
  resolutions for against withheld
 1 to receive reports of the directors and the accounts
 2 to declare a final dividend
 3 to reelect nicholas green as a director of the company
 4 to reappoint greg jackson as a director of the company
 5 to reappoint uhy hacker y oung llp as auditors of the company and to authorise  
  the directors to fix the auditors’ remuneration
 6 to authorise the directors to allot securities up to a specified amount
 7 to give the directors limited power to allot securities for cash without making  
  an offer to shareholders
 8 to amend the articles of association
signature 
date 2008
notes
1  to appoint as a proxy a person other than the chairman of the meeting cross out the words “the chairman of the meeting” and write the full name 
in the space provided if you wish your proxy to make comments on your behalf you will need to appoint someone other than the chairman and 
give them relevant instructions directly a proxy need not be a member of the company
2  you may appoint one or more proxies of your choice to attend vote and speak at the meeting and any adjournment thereof provided each proxy 
is appointed to exercise rights in respect of different shares to appoint more than one proxy an additional proxy forms may be obtained by 
contacting the registrars or you may photocopy this page indicating on each copy the name of the proxy you wish to appoint and the number 
of shares in respect of which the proxy is appointed all forms must be signed and should be returned to capita registrars in the same envelope
3 unless otherwise instructed the proxy will vote as they think fit or at their discretion abstain from voting 
4  the form of proxy must arrive not later than 48 hours before the time set for the meeting at capita registrars the registry 34 beckenham road 
beckenham kent br3 4tu you may also deliver by hand to the same address during usual business hours
5 a corporation must execute the form of proxy under either its common seal or the hand of a duly authorised officer or attorney
6 the form of proxy is only for use in respect of the shareholder account specified and should not be amended or submitted in respect of a different account
7  the “vote withheld” option is to enable you to abstain on any particular resolution such a vote is not a vote in law and will not be counted in the 
votes “for” and “against” a resolution
8 corporate representatives must make themselves known to the registrar prior to the meeting
 business reply style
business reply
licence number
mb122
capita registrars
the registry
34 beckenham road
kent br3 4br
first fold
second fold
third fold and tuck in corpora te statement
t angent helps clients foster 
closer relationships with their 
customers using targeted 
localised websites email 
direct mail and point of sale
 01 highlights 02 our business 04 chairman’s statement 06  business review 
  06 overview  10 chief executives’ review
  14 financial review 16 board of directors 
 17 advisers 18 directors’ report 21 corporate governance statement 23 remuneration report 25 independent auditors’ report
 26 consolidated income statement 27 consolidated statement of  
  changes in equity 28 consolidated balance sheet
 29 consolidated cash flow statement 30 company statement of changes in equity 31 company balance sheet
 32 company cash flow statement 33 notes to the financial statements 48 notice of annual general meeting
 51 form of proxy ibc financial calendar
financial calendar 
24 july 2008 annual general meeting
22 august 2008 dividend payment subject to shareholder approval
31 august 2008 financial half year end
november 2008 interim results announcement
28 february 2009 financial year end
may 2009  annual results announcement tangent communica tions plc 
truscott house 
32–42 east road 
london n1 6ad 
wwwtangentukcom
personal
l ocal
multichannel
tangent communications plc
annual report and accounts 2008
tangent communications plc annual report and accounts 2008


Summary:
 04 		 t a ngen t	 comm u nic a t ions 	 plc  annual report and accounts 2008
t a n g e n t 	 h a s 	 h a d 	 a n 	 e x c e l l e n t 	y e a r 	 i n 	 t e r m s 	 o f 	 p r o fi t  	 c a s h	
generation and earnings per share i am delighted that we 
are now able to propose our maiden dividend of 02p per 
s h a r e  	 t h i s 	 i s 	 c o v e r e d 	 o v e r 	 fi v e 	 t i m e s 	 b y 	 u n d e r l y i n g 	 b a s i c	
earnings and we intend to have a progressive dividend policy 
the board considers that over the long term dividends will 
form an important part of total shareholder return
chairman’s statement
the management team at 
ravensworth…has diversified 
into new markets tangent communica tions plc  annual report and accounts 2008  05
nick green and tim green’s joint chief executives’ 
review explains in detail how this has been 
achieved and they and graeme harris the 
finance director and all our employees 
deserve considerable commendation
the management team at ravensworth which 
operate our large digital printing operation has 
not only continued to grow their active customer 
numbers in the residential estate agency services’ 
business but has also diversified into new markets 
thus while it is likely that sales per estate agency 
customer will be lower this year the business 
can continue to prosper
in january 2008 we made a proposal to acquire 
tmn group an aim listed company which in stock 
market terms was about twice the size of tangent 
t he combination of tangent and tmn group 
would have produced a powerful force with a full 
set of digital marketing services with the potential 
to crosssell our respective services however during 
the early part of april it became clear to us that we 
should not pursue the proposal in what appeared 
to be becoming an auction process tangent did 
not incur any material costs associated with making 
the proposal tangent will continue to look for 
appropriate acquisition opportunities whilst 
maintaining investment discipline
now looking forward we have confidence in our 
future we are a relatively small company which 
through hard work considerable innovative talent 
and a strong financial base can grow substantially 
in probably some weaker markets by taking extra 
increments of marketing budgets particularly by 
digital conversion we don’t have expensive offices 
or extravagant marketing costs and management 
is rewarded substantially from results not salaries
finally i am pleased to report that greg jackson 
a founder of c360 which is now tangent l abs 
joins the board today and he will add great insight 
into our online marketing operation where we see 
a significant opportunity for growth
piers caldecote 
nonexecutive chairman
14 may 2008 
i am delighted that we are 
now able to propose our 
maiden dividend of 02p 
per share 06  tangent communica tions plc  annual report and accounts 2008
the marketing services sector has embarked on 
a process of radical change marketing services 
companies in the future will look very different 
from those we see today and they are likely to 
be technologydriven
tangent is an innovative player our proprietary 
technologies allow us to offer services which 
other suppliers find hard to replicate we are 
applying technological solutions to redefine 
what marketing services can be about 
our business philosophy is unlike many of our 
competitors we partner with clients and engage 
with them at every stage of the marketing journey 
we develop bespoke solutions analyse their 
effectiveness and refine and enhance those 
solutions in the light of that information 
we have built a tightly integrated 
business supported by a highly efficient 
technology infrastructure the focus of the 
business is on solving business problems for 
marketing professionals 
tangent also applies data consolidation services 
we design build and maintain sophisticated 
ecommerce sites we help our customers to 
increase the effectiveness of their communications 
via direct mail emails sms and the web we 
empower local managers to launch campaigns and 
targeted communications and provide centralised 
control for brand managers
our proprietary technology platform is a key 
advantage very few competitors have the 
infrastructure in place to develop and host 
hundreds of thousands of individualised 
websites in a very short timeframe 
for tangent it’s a core competence 
our database solution taobase has the ability to 
accept data sent from a variety of sources to create 
rich multichannel content output in late 2007 
when l abour went on election alert we used 
this system to ensure the party was ready with 
dedicated websites for every mp and individualised 
mail for every constituency available for printing 
in runs from one to 100000
onetoone marketing is a holy grail for many 
businesses but frequently the absence of a single 
standardised database is a major stumbling 
block our ability to cleanse and provide access 
to customer data overcomes this problem it is 
often a starting point for additional services 
we were pioneers in digital direct marketing 
and have been active in this area for more 
than a decade toolkit our marketing management 
system empowers local managers to devise and 
manage campaigns they can use the system to 
create brandsensitive tailored communications 
that meet the needs of specific customers on 
the ground brand managers in head offices 
can control their brands while also allowing 
far greater local involvement 
recognising that value resides in usefulness for 
customers we charge for usage based on the 
number of touchpoints with our systems that 
maximises clients’ flexibility allowing anyone 
in the business to use our systems for their 
specific needs 
we have the infrastructure to handle 
largescale operations on any given day we 
may receive 10000 electronic orders from 
around the country a ll are processed and 
delivered within 24 hours our experience 
in delivering service successfully at scale 
is winning the trust of our customers and 
opening up new business opportunities
t he r avensworth acquisition added a key piece 
to the jigsaw in our quest to deliver an integrated 
comprehensive digital marketing service europe’s 
largest dedicated digital printing facility produced 
around 80m digital pages for over 3000 customers 
last year 
tangent now has a foothold in a significant 
vertical market it is the market leader in the 
uk residential property market and the number 
three uk hips supplier
since the acquisition the digital printing business 
has exceeded expectations it has introduced 
new revenue streams and is rapidly diversifying 
its client base 
more importantly the addition of an integrated 
digital facility takes us a step closer to achieving 
our goal of providing onestop marketing services 
we have gained the ability to manage major 
national datadriven mailing campaigns inhouse 
business review o verview
our proprietary technologies 
allow us to offer services 
which other suppliers find 
hard to replicate tangent communica tions plc  annual report and accounts 2008  07
when borders uk was bought from its 
american owner they decided to terminate 
their relationship with amazoncouk and 
hired tangent to create their brand new 
british web shop 
the 	 scale 	 of 	 the 	 project 	 proved 	 an 	 excellent 	 demonstration	
o f 	 t h e 	 p o w e r 	 a n d 	 fl e x i b i l i t y 	 o f 	 t a n g e n t 	 l a b s ’ 	 t a o s h o p 	 p r o d u c t 	
w h i c h 	 a c c e p t e d 	 t h e i r 	 i n v e n t o r y 	 o f 	 o v e r 	 1  3 m 	 p r o d u c t s 	 q u i c k l y	
and easily
innovation in the site’s faceted navigation is designed 
t o 	 make	it	as	easy	as	possible	for	visitors	to	filter	the	site’s	
extensive 	 range 	 of 	 books 	c ds 	 dvds 	 and 	 video 	 games 	 while 	
retaining consistency of both design and layout throughout
tangent was also retained to run borders’ digital 
marketing including personalised email pay per click 
marketing search engine optimisation and online pr 
using synergies from the site’s personalisation algorithms 
to personalise both advertising and communications creates 
a 	 startlingly 	 adaptive 	 and 	 engaging 	 experience 	 for 	 shoppers
each	borders	store	now	benefits	from	its	own	localised	
site updated by staff using tangent labs’ proprietary 
web creator system staff picks and reviews are then 
automatically uploaded to the web shop enriching 
content and providing another key point of difference 
from its competitors
finally tangent supplies borders’ localised marketing 
materials	with	point‑of ‑sale	materials	ordered	online	
using a simple interface all of which are centrally 
controlled	to	be	on‑brand	and	on‑message
case study
borders  books etc 08  tangent communica tions plc  annual report and accounts 2008
personal
t he stepchange in the scale of our business 
is enhancing our capacity to work with larger 
organisations in the past marketing departments 
expressed interest in our technologies but some 
found it difficult to allocate significant budgets 
to a relatively small company t he newcastle 
facility is helping us to make the case to clients and 
potential clients that we have the experience and 
the capabilities to handle largescale contracts
many of our customers are migrating their 
operations from nondigital to digital and they 
see us as a consultative partner increasingly 
we are being appointed on retainer to deliver 
consultancy services 
tangent is unusual in its ongoing commitment 
to client service we provide our customers 
with tools to measure the effectiveness of the 
multichannel digital solutions we develop on 
their behalf and we work closely with them to 
ensure they get the most out of our systems 
the creative dimension to the solutions we offer 
is becoming increasingly important we always 
ensure that our data reporting is attractively 
visualised and this has led to a number of 
opportunities we are able to deploy both designers 
and developers across multiple channels and can 
offer both local and national coverage
by engaging closely with clients we are developing 
our knowledge and capabilities we recently 
delivered a sophisticated ecommerce site for the 
bookseller borders as a result of this success we 
are now working with them to develop a search 
engine marketing sem solution strengthening 
our integrated offer and generating new sales 
opportunities with our existing client base 
there are clear advantages for customers 
in using multichannel services on a single 
platform at the same time we recognise that 
to gain the maximum value from our services 
customers may need to adjust their practices 
there are business transformational issues at 
stake we need to win customers’ confidence 
and that takes time 
we therefore focus on establishing client 
relationships in specific areas where our 
approach adds immediate value we compete 
against website developers for ecommerce sites 
against it service businesses for data integration 
and analysis work and against marketing service 
companies for direct mail fulfilment as we 
progressively win pitches on numerous fronts 
our profile is steadily increasing
we are strengthening our positioning 
as a tightly integrated digital marketing services 
company supported by a strong technological 
infrastructure around 25 of our revenues are 
currently generated by servicing more than one 
business area we estimate that by the end of 
2008 multiple services will account for over 50 
of total revenue
t he current trend for companies to transfer above 
the line advertising budgets to belowtheline 
activities is likely to accelerate with budgets 
constricting marketing departments want better 
information to justify their spend 
tangent’s positioning stands it in good stead 
our powerful infrastructure allows us to provide 
a bespoke service that can often be delivered 
more quickly and costeffectively than our 
competitors powerful tracking functionality 
allows customers to monitor and measure the 
effectiveness of their campaigns very precisely 
we stay with our clients to deliver a joinedup 
marketing service we provide strategic advice 
build bespoke systems and deliver personalised 
electronic and printed materials t hroughout 
the marketing journey we remain completely 
accountable to the client in turn that is helping 
us unearth new problems and allowing us to grow 
the business organically
business review o verview continued tangent communica tions plc  annual report and accounts 2008  09
case study
sap
sap is the world’s largest supplier of 
enterprise software and its customers 
rank among the largest organisations in 
the world tangent’s work with sap centres 
on design and implementation of innovative 
new interfaces that talk directly sap’s 
ubiquitous backend data structures
sap ’s application interfaces are at work in businesses 
worldwide and in use by sap itself for account and sales 
management project management and a range of internal 
processes working directly with sap ’s internal it department 
t angent has helped create new uis user interfaces that bring 
together related functionality on a single screen
as well as deep technical skill and understanding t angent’s 
information architecture and creative teams were deployed 
t o 	 e n s u r e 	 n e w 	 d e v e l o p m e n t s 	 a r e 	 c e n t r e d 	 fi r m l y 	 a r o u n d 	 t h e	
needs 	 of 	 the 	 user  	 promoting 	 efficiency 	 and 	 user 	 acceptance
tools developed by tangent are already mature enough to 
be 	 rolled ‑ out 	 globally 	 by 	s a p	 and 	 are 	 in 	 use 	 by 	 thousands 	
o f 	 u s e r s 	 i n 	 a l l 	 fi v e 	 c o n t i n e n t s 	 o n 	 a 	 d a i l y 	 b a s i s