thus group plc
12 berkeley square
99 berkeley street
glasgow g3 7hr
wwwthusnet
thus group plc annual report 2008
thus group plc 
annual 
report
2008 thus group plc delivers advanced 
telecommunication services to large 
business customers and public sector 
organisations throughout the uk  
it tailors these services to suit small  
and midsized businesses through  
its demon branded product range
our objective is to be the preeminent 
alternative telecommunication provider  
for business customers in the uk
1  financial highlights
2  our strategy structure and markets
4  thus at a glance
29  corporate governance report
32  directors’ remuneration report
6 what makes thus different
8 new business won
10 our journey to profit
37   independent auditors’ report to  
the members of thus group plc 
38  consolidated income statement
39   consolidated statement of recognised 
income and expense
40   group and parent company  
balance sheets
41   consolidated and parent company 
statement of cash flows
42   notes to the consolidated and parent 
company financial statements 
68  five year financial summary
12  chairman’s statement
13 chief executive’s review
14 financial review
16 measuring our success
18 other financial issues
20 principal risks and uncertainties
22 employees
24 environment and community
26  board of directors
28 other information
69  notice of annual general meeting
72   general information for shareholders 
attending the annual general meeting
73  shareholder and contact information
1–5
overview
61 1
strategic progress  
and success
1228
directors’ report
2936
corporate governance
3768
financial statements
6973
ancillary information
find out more at wwwthusnetannualreport2008

thus group plc annual report 2008
73
ancillary information
shareholder and contact information
analysis of shareholders as at 31 march 2008
 number of  numbers
range of holdings shareholders of shares
1–100 287 526 5402914 
101–200 12694 1790592
201–600 8003 2793030
601–1000 1950 1601597
1001–5000 2208 4475093
5001–100000 479 9227 462
100001 and above 120 157 741679
financial calendar
31 july 2008 annual general meeting
november 2008  interim results for the six months ended 30 september 2008
may 2009  preliminary results for the year ended 31 march 2009
annual general meeting
the annual general meeting will be held at the radisson sas hotel 301 argyle 
street glasgow g2 8dl on thursday 31 july 2008 at 1 100 am details of the 
resolutions to be proposed at the annual general meeting are contained in the 
notice of annual general meeting on pages 69 to 71
dividend
the directors have not recommended the payment of a dividend for the year ended 
31 march 2008
listing
ordinary shares of thus group plc have been admitted to the official list of the  
uk listing authority and are traded on the london stock exchange
share price
the share price is available from the thus website at wwwthusnet and in national 
newspapers
shareholder administration
any queries relating to the administration of shareholdings such as change of 
address change of ownership and amalgamation of multiple accounts should be 
referred to the registrar
equiniti
the causeway
worthing
west sussex
bn99 6da
tel 0871 384 2124 
tel 0871 384 2255 for textelhard of hearing
fax 0871 384 2100
 calls to this number are charged at 8p per minute from a bt landline 
other telephony providers costs may vary
share dealing 
thus group’s shares may be bought or sold at competitive rates for further details 
please contact stocktrade on 0845 601 0995 quoting lowc0078 alternatively 
please contact equiniti on 0871 384 2020 or at wwwshareviewcouk
sharegift
sharegift is an independent registered charity which provides a free service for 
shareholders wishing to give small holdings of shares to benefit charitable causes  
it may be especially useful for those who wish to dispose of a small parcel of shares 
which would cost more to sell than they are worth there are no capital gains tax 
implications on gifts of shares to charity and it is also possible to obtain income tax 
relief further information can be obtained at wwwsharegiftorg or from the thus 
shareholder helpline on 0871 384 2124
contact information
secretary and registered office
david macleod
thus group plc
12 berkeley square
99 berkeley street
glasgow
g3 7hr
registered number sc 226738
for enquiries relating to the company’s operations and performance please contact 
either
investor relations  corporate communications
thus group plc  thus group plc
12 berkeley square  12 berkeley square
99 berkeley street  99 berkeley street
glasgow  glasgow
g3 7hr  g3 7hr
tel 0141 566 3176  tel 0141 566 3642
thus’ services
information about thus’ services can be found on the thus website at wwwthusnet overview
financial highlights
1
£40m  £1 3  5 m
operating profit
3
£

60

m  £1 9  7 m
free cash flow
4
£ 5 7 0 m 33
ebitda
2
£5 76  2 m 8
revenue
revenue £m
1  represents continuing operations and excludes demon netherlands  
and contact centre
2  earnings before interest tax depreciation including impairment  
amortisation and restructuring costs  
see note 9 to the consolidated financial statements
3  operating profitloss before restructuring costs
4  operating cash after interest taxation and capital expenditure
5762
5327
3500
ebitda
2
 £m
5 7 0
429
3 76
2008
2007
2006
operating profitloss
3
 £m
free cash flow
4
 £m
40
95
257
 11 6
11  1
2008
2007
2006
2007
2006
2008 60
2007
2006
2008
thus group plc annual report 2008

1 overview
our strategy structure and markets
our objective is to be the preeminent 
alternative telecommunication provider  
for business customers in the uk
our market
market structure
twentyfive years after liberalisation the fixed  
line business market in the uk remains dominated 
by the incumbent provider bt 
although many infrastructurebased market 
entrants have emerged none has yet developed 
sufficiently to deliver sustained growth and 
meaningful returns in particular an overinvestment 
in legacy networks has resulted in an oversupply 
of legacy services and inhibited competitors from 
developing sufficient scale to thrive 
the transition to nextgeneration services has put 
additional pressure on established revenue and 
margin from legacy services for all operators 
most suppliers now face significant network 
investment to enable them to offer nextgeneration 
services thus made this investment when it put 
in place a nextgeneration network as part of  
its national network rollout in the early part of  
the decade
thus continues to invest judiciously to increase 
its capabilities further maximise the leverage 
of its assets and deliver future growth and 
operating efficiencies thus is therefore well 
positioned to benefit as demand consolidates 
around market participants with nextgeneration 
capability over the longer term
our principal strategies to achieve this objective have 
focused around
 deployment of an advanced national nextgeneration 
telecommunications network this allows us to improve 
our control over the quality of our service delivery 
lower our ongoing traffic delivery costs and control 
the rate of service evolution
 development and sale of a comprehensive service 
portfolio capable of supporting business customers 
through the transition from legacy to ipbased and 
converged telecommunications
 attainment of consistently high levels of quality in our  
service delivery
 achievement of scale and operating leverage across 
our network and supporting systems
focused
organisation structure
thus is structured along functional lines to support the business segments with staff organised into 
sales product operations and support services in addition thus maintains a central capability  
for management of finance human resources and government and regulatory affairs
stuart sutton operations director nigel stevens product director  richard sweet government affairs director 

2
thus group plc annual report 2008 regulation
in 2005 communications regulator 
ofcom completed its strategic review of 
telecommunications culminating in a new 
regulatory settlement for the industry the new 
settlement continues to support infrastructure
based competition but seeks to promote  
equality of access to those parts of the bt 
network where investment in competing 
infrastructure is not sustainable
a new bt division called openreach was 
created to provide access to these regulated 
services although bt’s customers suffered 
significant disruption following the creation  
of openreach ofcom is now taking action  
to impose a service level guarantee regime  
on openreach which should lead to improved 
service performance
thus remains optimistic that the regulatory 
settlement will eventually enhance competition 
but continued vigilance will be required to  
ensure bt does not foreclose competition as  
it implements its nextgeneration network
financial targets
following heavy upfront investment in network 
rollout our financial plan is focused on delivering
a return on capital employed greater than our 
weighted average cost of capital key longterm 
financial targets for the group include
the group has achieved three important financial 
milestones moving ebitda
4
 positive in 200102 
free cash flow
5
 positive in 200405 and 
delivering our first operating profit in 2007 08
 1  5 2x
asset turnover 
3
c 1 0
capital investment revenue
 20
ebitda
4 
 revenue
gillian campbell hr director ian armour support services director david macleod company secretary
market size and service transition
the total uk business telecoms market is 
estimated at £123b
1
 or excluding business 
spending on mobile services is estimated 
at £65b
1
 down from £68b
1
 the previous 
year the fixed line segment is experiencing 
a transition in demand patterns in particular 
demand is moving away from traditional or 
legacy telecommunication services including 
fixed switched voice frame relay and atm 
data as well as narrowband internet access 
towards nextgeneration ipbased services such 
as broadband ethernet mpls ip virtual private 
networks and voice over ip
market share
thus must continue to build market share 
successfully in order to meet our longerterm 
objectives based on continuing operations
2
 
revenue growth thus improved its estimated 
market share to 87 during the year reflecting 
our success in winning new business and 
extending relationships with existing customers
1 source ofcom ‘the communications market 2007’  
figures have been restated from the 2006 communications 
market report by ofcom to reflect more accurate data
2 excludes demon netherlands
3 ratio of revenue to property plant equipment and  
intangible assets
4 earnings before interest tax depreciation including 
impairment and amortisation
5 operating cash after interest taxation and capital expenditure
fixed voice internet noncorporate corporate data services mobile
business spending on telecom services
1
 £b
58 27 03
51 26 04
45 25 06
2006
2005
2004
41 23 07 2003
37 22 07
35
38
42
46
49 2002
gerry duffy sales director
thus group plc annual report 2008

3 overview
thus at a glance
managed 
solutions
data and 
telecoms
internet
mobile
thus is focused on the provision of  
fixed line telecommunication services 
to large business customers and public 
sector organisations while tailoring 
services to suit small and midsized 
businesses under the demon brand
business model
thus’ business model is focused on the  
provision of primarily infrastructurebased  
services to business customers and public  
sector organisations in the uk 
our addressable market is not focused on  
the highly competitive consumer market in the  
uk nor very large multinational corporations 
demon’s service offerings are targeted at small 
and midsized businesses and complement 
thus’ capabilities for larger organisations 
continuing operations
thus has four established business segments 
comprising managed solutions data and 
telecoms internet and mobile
managed solutions are run as a separate unit 
within thus they comprise large corporate 
accounts with complex service needs typically 
combining delivery of several different standard 
services an element of outsource to thus  
and longer than average contract duration 
in contrast the data and telecoms internet and 
mobile segments record revenue and results 
for more standard product sales to a wider 
customer base including corporate small and 
midsized customers channel resellers and other 
telecommunication companies
within each segment the principal costs 
comprise payments to other telecommunication
companies for interconnect and use of their 
network to collect and deliver services to thus 
customers other directly variable costs directly 
attributable selling distribution and administrative 
costs and depreciation on assets directly 
attributable to that segment
however as the majority of services are sold 
provisioned and run from a unified infrastructure 
thus maintains a large pool of central costs  
in 2008 these costs reduced by 7 to £1087m
1
 
2007 £1 17 2m
1
 and comprised £412m  
of depreciation impairment and amortisation 
2007 £434m £294m of network operations 
and maintenance costs 2007 £27 3m and 
£381m of corporate overheads 2007 £465m
1  excludes £16m of restructuring costs in 2007 
2  segmental operating profit excludes central costs not allocated 
to individual segments
non uk
uk
infrastructure
reseller
residential
business
reseller
business
uk
infrastructure
residential
nonuk

4
thus group plc annual report 2008
sme large companies
very large 
corporations 
usually multi
nationals consumer summary of services
our managed solutions portfolio gives 
customers access to the knowledge skills  
and experience that we offer as an operator  
of a stateoftheart network without the need 
for them to maintain these resources inhouse  
our experts can help customers to plan  
deploy optimise manage and run their network 
infrastructure allowing them to focus on their 
core business improve operational efficiency 
and reduce operating and capital expenditure
highlights of the year
revenue grew 17 to £1112m   
the growth has been largely driven by  
the inclusion of revenue for hsbc and  
the pathfinder north and pathfinder  
south projects
segmental operating profit 
2
 increased  
from £189m to £287m with margins
2
 
improving to 26  2008  2007  
 £m  £m
revenue  111 2 950
operating profit
 2
  287 189
operating profit margin
 2
  26 20
19
of total revenue
summary of services
thus’ comprehensive portfolio of voice and 
data services is backed by our advanced  
nextgeneration network these services  
are often businesscritical and as a result  
are supported by stringent service level 
agreements thus offers a wide range of  
high quality and flexible services designed to 
meet the needs of our diverse customer base  
our portfolio includes switched voice call 
recording and conferencing mpls ip vpn 
leased lines and citynational ethernet services 
highlights of the year
revenue grew 11 to £347 0m   
data revenue grew by 11 to £1007m  
and voice revenue also grew by 11  
to £2463m
segmental operating profit 
2
 was  
£609m 2007 £615m with margins
2
  
of 18 2007 20 
additional business for lower margin   
cps services resulted in revenue for  
these services increasing to £1015m  
2007 £621m excluding the impact 
of the strong growth in cps revenue the 
underlying margin
2
 was 21 2007 22
 2008  2007  
 £m  £m
revenue  3470  3125
operating profit
 2
  609  615 
operating profit margin
 2
  18  20 
60
of total revenue
summary of services
thus has many years experience in providing 
quality internet solutions and provides a 
comprehensive portfolio of services through 
demon one of the uk’s longestestablished  
and most recognisable internet brands  
with our experience and expertise to deliver 
manage and support these services we are well 
equipped to understand our customers’ needs 
and offer solutions right for them our portfolio 
includes high performance premier broadband 
hosting colocation and security services
highlights of the year
revenue declined by 6 to £795m   
hosting and other internet services 
increased by 5 to £302m dialup 
internet revenue fell to £57m  
2007 £100m and broadband 
revenue declined by 5 to £436m
segmental operating profit 
2
 fell from 
£231m to £184m with margins
2
 of 
23 2007 27 
broadband customers at 31 march  
2008 were 115000 31 march 2007 
130700
 2008  2007  
 £m  £m
revenue  795  847
operating profit
 2
  184  23 1
operating profit margin
 2
  23 27
14
of total revenue
summary of services
thus provides standard and bespoke mobile 
solutions tailored to our business customers’ 
requirements and has the capability to supply 
integrated voice data and messaging solutions 
products and services range from mobile 
phones and blackberrys
®
 to a comprehensive 
range of vehicle and asset tracking and field 
worker solutions our field worker solutions 
utilise both 3g and gprs technology  
enabling our customers to realise significant 
productivity gains
highlights of the year
revenue for the year was £385m  
compared to £405m last year
segmental operating profit 
2
 rose to 
£47m 2007 £42m representing  
a 12 margin
2 
up from 10 last year 
the division continues to be  
vodafone’s largest independent uk 
businesstobusiness service provider 
and had 89455 active connections 
at the year end 31 march 2007 
90000 
 2008  2007  
 £m  £m
revenue  385  405
operating profit
 2
  47  42
operating profit margin
 2
  12 10
7
of total revenue
thus group plc annual report 2008

5 capability
consultation
quality
strategic progress and success
what makes thus different
capability
our unique capability comes from an extensive 
knowledge of the telecommunications industry 
and many years of experience working with  
our customers to ensure that we provide the  
right solutions
our stateoftheart nextgeneration network 
ngn coupled with our technical capability  
is crucial in delivering innovative compelling  
and flexible communication solutions to a  
broad range of customers
our network is one of the most technically 
advanced in the uk and allows us to harness 
new opportunities for our customers it provides  
a single platform for the deployment of advanced 
business applications allowing both voice and 
data to exist on the same advanced network 
the result is a simplified communications 
infrastructure that delivers both performance gains 
and cost savings for our customers our ngn is 
configured to ensure maximum performance and 
reliability at all times
the worldclass thus backbone network uses 
mpls technology to deliver the highest possible 
performance mpls is the ideal platform to  
carry ip voice video and data traffic across  
a converged network as well as giving added 
flexibility and functionality 
consultation
at thus we add value to our customers’ 
operations through our consultative approach 
our goal is to drive success through indepth 
customer and market knowledge this has 
resulted in notable success and is recognised  
by our customers as a key differentiator we lead 
on thorough consultative engagement supported 
by our extensive sector knowledge and an 
indepth understanding of both our customers’ 
requirements and their key drivers
we have extensive experience across multiple 
sectors nationwide new business won this 
year is testament to this approach and included 
contract wins in the fields of education utilities 
retail media and the public sector
thus believes in strong client engagement 
which succeeds in building relationships with  
our customers based on trust and understanding 
and allows us to identify their real requirements 
and challenges through this process we are 
able to demonstrate a thorough understanding  
of the customers’ situation enabling us to tailor 
and deliver the right solution for them that will 
meet their needs today and in the future
thus group plc annual report 2008

6 with a broad range of 
capabilities a reputation for  
topquality service extensive 
sectoral coverage and a strong 
consultative approach thus 
is truly a distinctive leader in 
communications provision
quality
providing the highest level of quality is essential  
to our business we constantly strive to improve 
on our already high standards of service 
and quality underpins everything we do as a 
company it is only through delivering quality 
solutions to customers that we are able to drive 
the execution and growth of our business and 
build strong and committed relationships with  
our customers
we fervently believe in delivering the highest 
levels of quality of service to our customers 
we utilise external measurement to support  
and ensure that we deliver consistent quality 
across all our products and solutions our quality 
control can be measured by the fact that we  
have achieved full iso 90012000 quality 
certification for all of our internal processes  
and certification for the international information 
security standard isoiec 270012005 for  
our mpls network this certification formerly 
known as bs 7799 is regarded as the 
benchmark for information security management
service and quality are the cornerstones of  
our business and the differentiators by which  
we are judged we do not limit our continual 
focus on quality to products and services as  
we believe that improvement in business strategy 
business results and customer employee and 
supplier relationships should also be subject  
to continual improvement our commitment to  
our employees is endorsed by our investors in 
people accreditation
in essence we strive to continuously improve all 
aspects of our company performance to ensure 
we exceed the expectations of our customers 
thus group plc annual report 2008

7 1 
2 3 
4 
strategic progress and success
new business won
trusted by our
1 vodat international
thus and vodat international are working 
together to deliver ngn solutions to retailers 
such as cosmetics retailer lush white stuff and 
mosaic fashions parent company of coast 
karen millen oasis whistles the thus ngn 
network combined with vodat internationals 
applications provides a set of business class 
solutions which increase productivity in the retail 
enterprise thereby reducing costs and improving 
customer service to increase sales
this year thus won new business nationwide 
across multiple sectors demonstrating the 
success of our consultative approach and 
proven capability to deliver bespoke  
solutions tailored to our customers’ needs

8
thus group plc annual report 2008 5 
6 
2 imperial college london ‘icl’
thus secured new business with icl for an 
ethernet solution to provide highbandwidth 
connectivity across nine of its sites and network 
connectivity to all other campus locations  
this scalable solution enhances reliability  
and has the capability to converge voice  
data and multimedia applications 
3 global radio
thus renewed and extended its contract with 
leading uk broadcaster global radio for the 
provision of live audio broadcasts voice and 
data traffic over an mpls network the tailored 
solution is resilient reliable and scalable to meet 
the needs of a dynamic growing broadcaster
4 scottishpower energy networks ‘spen’
thus will deploy a new ngn infrastructure 
to provide business critical voice and data 
applications to spen’s transmission substations 
– extending to 130 sites in central and southern 
scotland scottishpower is one of our longest 
standing customers and securing this contract  
is testament to our capabilities and track record 
for service and reliability 
5 thresher group
thus extended its contract with thresher  
group the uk’s leading independent specialist 
drinks retailer thresher group will use our calls 
 lines service at its head office and across 
1800 branches nationwide and selected  
thus for our extensive experience in the retail 
sector and our ability to deliver a high quality 
reliable costeffective solution tailored to each 
branch location
6 johnston press
the renewal and extension of our contract with 
johnston press is testament to our consultative 
approach and ability to provide a secure  
fully managed bespoke nextgeneration solution 
involving large scale hosting and high capacity 
wavelength services coupled with high levels 
of resilience and reliability for the delivery of 
businesscritical information to over 230 sites
1 represents major corporate and public sector contracts 
typically covering higher value bespoke sales

70
of contracts
1
 signed this year were for  
nextgeneration services
customers
thus group plc annual report 2008

9 strategic progress and success
our journey to profit
vision
presence
profit
vision
our vision for the future provision of 
telecommunication solutions led to the 
construction of our nextgeneration network  
at the beginning of the decade this has enabled 
us to differentiate ourselves from our competitors 
and ensures we are strongly positioned within  
the marketplace
the current marketplace transition away from 
legacy services towards nextgeneration 
telecommunication services continues to 
accelerate as our customers realise the benefits  
of adopting these advanced solutions compared 
to the more commoditised legacy services 
presence
we have successfully grown our business every 
year since our flotation in 1999 this organic 
growth strategy was complemented by our first 
acquisitions in 2006 – your communications  
and legend communications 
the acquisitions accelerated our achievement 
of increased scale whilst also improving our 
geographical reach in the north of england  
by complementing thus’ existing market 
presence as a result thus has achieved  
a truly nationwide presence in the uk
as we successfully grow our enlarged business 
organically we continue to take market share
2
 
and estimate that it is now 87 up from 7 6 
last year we must continue to successfully build 
our market share in order to achieve our long
term financial objectives 
over 70 of our new business won
1
 this year 
was for nextgeneration services as a result 
thus has now passed the inflexion point with 
over 60 of our variable gross margin now 
derived from these nextgeneration services 
thus is committed to delivering visionary 
innovative solutions that allow our customers to 
achieve their aspirations and provide them with  
a competitive edge we continue to look beyond 
today’s needs to the nextgeneration of advanced 
telecommunication solutions that will best serve 
the needs of our customers
thus group plc annual report 2008

10
 gdp
total
legacy
time
nextgeneration thus’ visionary solutions for 
customers ensure we are strongly 
positioned in the marketplace where 
we have achieved a truly nationwide 
presence and momentum within our 
business enabled us to deliver our  
first full year of operating profit
profit
the strong growth of our higher margin next
generation services together with the benefits 
from our increased scale and the successful 
delivery of the planned savings from the 
integration of your communications and legend 
communications enabled us to achieve our first 
full year of operating profit this year
momentum within our business is evidenced  
by winning new business nationwide across 
multiple sectors and financial performance for 
the second half of the year accelerated with 
revenue up 5 and ebitda
3
 up 15 compared 
to the first half of the year
the achievement of our first operating profit is 
another important milestone for thus our next 
financial goal is to deliver for our stakeholders 
a return on capital employed greater than our 
weighted average cost of capital
to achieve this goal we must continue to  
win business from new customers and extend 
relationships with existing customers whilst 
maintaining our disciplines of operational 
productivity sound cash management and  
a capital investment programme focused  
on driving future growth 
1  represents major corporate and public sector contracts 
typically covering higher value bespoke sales
2 thus market share is based on continuing operations 
revenue excluding mobile for a financial year 2007  
market share is for the financial year ended 31 march 2008 
200206 is based upon ofcom’s ‘the communications 
market 2007’ 2007 is based upon a thus estimate
3 earnings before interest tax depreciation including 
impairment amortisation and restructuring costs 
thus market share 
thus market share
31  2002
44 2004
52 2005
87 2007
76  2006
2003 38
thus group plc annual report 2008

11 i am pleased to report that this has been 
another year of strong growth and achievement 
for your company with revenue up by 8 to 
£5762 million and the achievement of our 
first operating profit of £40 million compared 
with an operating loss
1
 of £95 million last year 
it has been a busy year with major project 
implementations growth in new services and 
the refinancing of our balance sheet providing 
greater borrowing facilities on better terms  
than previously 
i take great pride in your company’s ability to 
win and successfully implement large managed 
solutions contracts for our customers and to 
continue to grow our nextgeneration services 
against the backdrop of a tough and challenging 
uk business services market thus has improved 
its competitive position and once again 
increased its market share 
in addition to achieving the important milestone  
of operating profit we returned to positive free 
cash flow
2
 in the second half of the year  
after the heavy investment in integration costs  
and the capital investment in the three major 
customer projects we announced last year 
indeed 83 of capital investment this year was 
focused on customer related activity up from the 
77 i announced last year all of this bodes well 
for the future
in july 2007 we refinanced our balance sheet 
with a new £1 10 million five year facility on 
favourable terms our balance sheet strength 
with net gearing at only 69 gives our 
customers confidence and we maintain a  
healthy cash balance
in june 2007 our largest shareholder united 
utilities successfully disposed of its shareholding 
in your company as a consequence martin 
beesley the nonexecutive director representing 
united utilities resigned from your board 
in december 2007  jo connell resigned from  
your board after seven years of service jo was 
an active and lively member of your board  
who took a keen interest in many facets of  
your company her insights and experience  
in technology and customer service were  
greatly valued
we offer both jo and martin our thanks and best 
wishes for the future
in november 2007  we were pleased to welcome 
alison wood to your board alison brings a 
wealth of experience in corporate strategy 
government relations and mergers and acquisition 
activity and will significantly reinforce our 
knowledge and expertise in these areas
it is the energy and initiative of our staff in thus 
that provides the fuel for our growth and many 
achievements we recognise the challenge in 
our market and the uncertainty about the uk 
economy but we are proud to have committed 
staff full of enterprise who share our optimism for 
the future i offer them all my sincere thanks and 
congratulations for another successful year
philip rogerson
chairman
1 operating loss stated before restructuring costs of  
£16m last year
2 operating cash after interest taxation and capital 
expenditure 
philip rogerson chairman left 
and william allan chief executive right
directors’ report
chairman’s statement
it is the energy and initiative of our staff in  
thus that provides the fuel for our growth  
and many achievements 

12
thus group plc annual report 2008 i was particularly pleased to announce our 
maiden operating profit for the year at our 
preliminary results in may our growth in profits 
has been achieved from our increased market 
share and improved productivity validating our 
strategy to focus on nextgeneration services  
in the uk business services market
the transition from legacy to nextgeneration 
services continues and has improved our  
overall revenue mix over 70 of all new major 
corporate and public sector contracts
1
 this year 
were for nextgeneration services these services 
offer our customers greater efficiency features 
and functionality within their businesses 
managed solutions revenue increased by 17 
and data services revenue increased by 1 1 
although revenue from voice services grew by 
1 1 we do not expect continued growth in 
carrier preselect cps services since these 
services will lose traction in the market as 
customers increasingly embrace internet  
protocol ip services and converged solutions 
thus is strongly positioned our consultative 
engagement with our customers our understanding 
of their business and telecommunication needs 
and our innovative approach to convergence  
and service evolution allows us to sustain a 
competitive edge thus has a strong track 
record of service innovation and this year has 
been no exception with fifteen new service 
enhancements launched to benefit our customers 
and improve our competitive position
our capital investment continues at almost 10  
of revenue with 83 focused directly on customer 
related activity this is a higher percentage than 
last year reflecting our success in winning larger 
and more complex managed solutions customers 
nevertheless we do not neglect our back office 
or core network and we have improved the 
availability on our core mpls network and the 
consistently high levels of service quality we offer 
in addition we have received isoiec 
270012005 accreditation for the information 
security management system supporting our 
mpls network this complements our longer 
standing iso 90012000 accreditation  
these standards give confidence to our customers 
about the quality standards in our business and 
allow us to compete in new business areas
as we have grown our business our increased 
scale has offered new opportunities to improve 
our operating efficiency and productivity 
revenue grew by 8 this year but our 
operating costs
2
 reduced by 8 at 144 of 
revenue our operating costs
2
 are now below 
the level achieved before we made our two 
acquisitions in 2006 reinforcing the successful 
integration of your communications and legend 
communications into thus all of this improves 
our competitiveness and our ability to further 
scale our business from new revenue growth
our business strategy is sound we have the 
scale and capability to compete and successfully 
implement large and complex bespoke customer 
applications we are strongly positioned to 
benefit as our customers and our industry makes 
the transition to nextgeneration services  
we have a talented and committed workforce 
with an enviable track record on service 
innovation and enterprise although there is 
uncertainty about the uk economy the outlook 
for this financial year is in line with the board’s 
expectations
william allan
chief executive
1 contracts typically covering higher value bespoke sales
2 operating costs exclude depreciation and amortisation 
including impairment restructuring costs and other  
operating income 
3 operating cash after interest taxation and capital 
expenditure
directors’ report
chief executive’s review
we have the scale and capability to compete 
and successfully implement large and complex 
bespoke customer applications 
key achievements in 2008
  70 of contracts signed
1
 this year  
were for nextgeneration services
revenue up 8 with improved mix 
maiden operating profit delivered 
significantly improved free   
cash flow
3
successfully refinanced bank facility   
to 2012 on more favourable terms
increased our market share  
thus group plc annual report 2008

13 results 
the focus of our performance review is on our 
continuing operations
1
 which are based solely  
in the uk unless otherwise stated comparatives 
are against the prior year
continuing operations
 1
revenue increased by 8 to £5762m  
2007 £5327m demand for nextgeneration 
services accelerated with revenue for these 
services increasing by 1 1 whilst revenue from 
our legacy services increased by 6
gross profit increased 6 to £956m  
2007 £897m and gross profit margins were 
166 2007 168 over 60 of variable 
gross margin is now derived from nextgeneration 
services up 7 on the prior year
ebitda
2
 increased by 33 to £57 0m  
2007 £429m representing the third 
consecutive year of expansion and ebitda
2
 
margins improved to 99 2007 80 
growth in nextgeneration services variable gross 
margin contributed £188m of the improvement 
in ebitda
2
 and combined with cost savings net 
of other operating income of £43m more than 
compensated for the decline in legacy variable 
gross margin of £90m 
after depreciation and amortisation charges  
of £530m 2007 £524m the group  
delivered its first operating profit of £40m for 
the full year this compared to an operating loss 
before restructuring costs of £95m last year 
net financing expenses increased by £28m  
to £68m 2007 £40m
a tax charge of £34m was reported for the 
year last year a tax credit of £696m arose  
due to recognition of the deferred tax asset as a 
result the loss for the year was £62m compared 
to a profit of £545m last year
the deferred tax asset at 31 march 2008  
was £564m 31 march 2007 £606m  
the reduction of £42m was primarily due to the 
change in corporation tax rate from 30 to 28
update on integration plan
the integration of your communications and 
legend communications has been substantially 
completed the remaining activities continue to 
proceed ahead of original expectations and the 
company achieved as previously advised 90 
of the £30m forecast annual synergy savings 
exiting this year on a run rate basis
financial position and capital structure
thus is funded by equity together with an 
element of bank debt and a small amount of 
finance leases
cash flows
ebitda
2
 less capital expenditure was £05m  
2007 negative £164m 
working capital outflows were £36m 2007 
outflows £58m and together with £43m  
of net interest payments and other movements of 
£14m resulted in a free cash outflow
3
 of £60m 
2007 outflow £257m free cash flow
3
 for the 
second half of the year improved significantly 
resulting in an inflow of £69m compared to an 
outflow of £129m for the first half 
other movements in net debt totalled £01m 
as a result net debt increased by £61m from 
£258m at 1 april 2007 to £319m at 31 march 
2008 with net gearing of 69 compared to 
55 at 31 march 2007  
credit metrics
  2008 2007
gross debt ebitda
2  
18 times 13 times
net debt ebitda
2
  06 times 06 times
net gearing  69 55
ebitda net interest
24
  83 times 1 15 times
with the capital structure representing the 
financial foundations of the business thus  
has taken a conservative stance to funding 
net gearing was 69 at 31 march 2008  
31 march 2007 55 our financial position 
remains strong with net debt to ebitda
2
 of 06 
times and ebitda
2
 net interest
 4 
 cover of 83 
times for continuing operations
directors’ report
financial review
basic loss per share for continuing operations
1
 
was 340p compared to basic earnings per 
share of 3029p last year
discontinued operations
discontinued operations represent the results  
of demon netherlands in the current year and 
prior year 
this year discontinued operations reported a 
profit of £20m principally due to the receipt  
of a tax refund from the dutch tax authorities
last year discontinued operations’ revenue was 
£32m and operating profit was £04m reflecting 
the sale of demon netherlands in june 2006 
the consideration received for the sale of demon 
netherlands gave rise to a posttax gain on sale 
of £290m and resulted in a profit for the year  
of £294m
basic earnings per share for discontinued 
operations was 109p down from 1634p  
last year 
dividend
the company has not declared or paid a 
dividend on its share capital 2007 £nil 
given the company’s stage of development 
and the accumulated losses from the network 
deployment the board is not yet able to declare 
a dividend
capital expenditure
capital expenditure including expenditure  
on intangible assets for continuing operations
1
 
was £565m compared with £593m last year 
this is equivalent to 10 of revenue compared 
with 1 1 last year and is inline with our stated 
longterm financial target of approximately 10 
of revenue
growth related expenditure increased to 83 
or £47 0m of the total with £37 5m spent on 
connecting customers to our network principally 
to receive nextgeneration services and a further 
£47m spent to enhance the capacity of our 
network other expenditure was £95m and 
included £49m related to the integration of your 
communications and legend communications
5 7 0
429
2008
2007
2006
2005
3 76
367
2004 41 6
ebitda
12
 £m
5762
5327
2008
2007
2006
2005
3500
3202
2004 2836
revenue
1
 £m
key achievements in 2008
operating profit delivered 
third consecutive year of ebitda 
2
 expansion
revenue up 8 with improved   
nextgeneration services’ revenue mix
free cash flow 
3
 significantly improved

14
thus group plc annual report 2008 equity
thus had approximately 18303m ordinary 
shares in issue at 31 march 2008 31 march 
2007 18303m and a market capitalisation  
of £218m 31 march 2007 £337m
in june 2007  united utilities sold its entire 
2263 holding in thus 
at 31 december 2007  the contingent 
consideration that was potentially payable 
to united utilities for the purchase of your 
communications in february 2006 expired 
this was payable in shares dependant on the 
level of the thus share price no additional 
contingent consideration became payable 
between 1 april 2007 and 31 december 2007 
and consequently the value of goodwill recorded 
on the balance sheet was reduced by £7 3 million 
to reflect the lower than estimated overall cost of 
the acquisition with a corresponding adjustment  
to balance sheet reserves
the employee share trust purchased £12m of 
thus shares during the year the number of own 
shares held by the trust at 31 march 2008 was 
16m 2007 09m 
further details on the issued share capital and 
shares held by the trust is included in notes 27 
and 28 to the consolidated financial statements
cash balance 
the cash balance at the end of the year was 
£716m the balance is more than adequate  
to meet working capital needs for the 
foreseeable future
bank debt 
following an extensive evaluation of financing 
options the group refinanced its existing bank 
facility in july 2007 with a new five year 
facility the renegotiation of the facility on more 
favourable terms than the existing arrangements 
demonstrated the increased strength and 
capability of our business
as at 31 march 2008 thus had total 
indebtedness of £1035m 31 march 2007 
£57 1m comprising £1000m of bank debt  
and £35m of finance leases
thus’ main bank debt is governed by standard 
banking covenants relating to the ratio of total net 
debt to ebitda and interest cover with interest 
charged in a range from libor plus 075 to 
175 depending on the ratio of total debt  
to ebitda the bank debt is repayable in full  
in 2012 further detail is included in note 23  
to the consolidated financial statements
working capital
thus has a strong track record in management 
of working capital and successfully integrating 
the two acquisitions presented further 
opportunities to reduce debtor days of 44 at  
31 march 2007 to 40 at 31 march 2008
john maguire chief financial officer 
with the capital structure representing the financial 
foundations of the business thus has taken a 
conservative stance to funding net gearing at the year  
end was below 7
1 continuing operations exclude the results of demon 
netherlands contact centre and interactive for all years
2 earnings before interest tax depreciation including 
impairment and amortisation ebitda is stated before 
restructuring costs of £16m in 2007 and £88m in 2006 
3 operating cash after interest taxation and capital 
expenditure
4  interest excludes loan costs written off loan amortisation costs 
and net interest associated with the thus pension scheme
financial data for the charts on page 14 is prepared under ifrs 
for 2005–2008 and uk gaap for 2004
summary
demand for our nextgeneration services 
accelerated this year and resulted in an  
improved revenue mix our third consecutive year 
of ebitda
2
 expansion and our first full year of 
operating profit we retain a strong balance 
sheet with low levels of net gearing and 
returned to positive free cash flow
 3
 in the second 
half of the year the outlook for this financial year 
is in line with the board’s expectations 
thus group plc annual report 2008

15 directors’ report
measuring our success
longterm targets
 1  5 2x
revenue asset turnover
actual performance 2008
1 2 9x
 20
profitability ebitda as  of revenue
10
 1 520
efficiency 0perating costs as  of revenue
14 
c  10 
investment capital investment as  of revenue
10
9 9 9 5  9 9 9 5
achieving a successful 
financial performance relies 
on the business achieving 
growth minimising cost 
of sales driving scale 
efficiencies targeting 
incremental investment to 
support growth over the 
core backbone network 
and maintaining high 
standards of quality  
to ensure overall progress 
thus targets initiatives  
in each of these key areas 
and tracks performance  
to measure success
network performance availability
performing

16
thus group plc annual report 2008 1 operating costs exclude depreciation and amortisation 
including impairment restructuring costs and other  
operating income
growth
thus must continue to build market share 
successfully in order to meet our longerterm 
objectives based on continuing operations
1
 
revenue growth thus improved its estimated 
market share from approximately 7 6 to 
approximately 87 during the year reflecting  
our success in winning new business this resulted 
in an increase in the ratio of continuing operations
1
 
revenue to assets
2
 from 119 to 129 times 
compared with our longterm target of 15 to  
20 times
cost of sales
although network reach is extensive it is not 
economically feasible to carry all customers’ 
traffic endtoend and payments to other 
operators for customer connection and service 
interconnect are the largest component of our 
cost of sales
since flotation thus has made successive 
improvements to contain the increase in payments 
by increasing interconnect points with other 
operators improving traffic routing across the 
network and participating in a wholesale market 
for the provision of last mile access 
the integration of the thus network with those 
of the companies acquired in 2006 particularly 
that of your communications has delivered 
further network efficiencies
scale efficiencies
this year in continuing operations
1
 ebitda 
revenue improved to 10 2007 8 reflecting 
the benefits achieved from our increased scale 
and the successful delivery of the planned 
savings from the integration activities surrounding 
the acquisition of your communications and 
legend communications the successful 
integration has also resulted in an improvement in 
our operating costs
3
 expressed as a percentage 
of revenue which fell to 14 of revenue
investment 
capital investment was 10 of continuing 
operations
1
 revenue 2007 1 1 broadly  
in line with our longterm target of approximately 
10 of revenue 
in the year under review growthrelated 
expenditure was £47 0m or 83 of the total and 
was primarily focused on customer connections 
and further capacity enhancements to our 
network other expenditure was £95m and 
included £49m related to the integration of your 
communications and legend communications
efficiency – operating costs
 1
 
14
17
17
2008
2007
2006
19 2005
21 2004
profitability – ebitda  margin
10
8
11
2008
2007
1
2006
1
11 2005
15 2004
1   excludes £88m for restructuring costs in 2006 and £16m in 
2007
capital investment –  of revenue
10
11
9
2008
2007
2006
11 2005
14 2004
asset
 1
 turnover
129
1 1 9
079
2008
2007
2006
2
086 2005
069 2004
1   represents property plant equipment and intangible  
asset balances
2   2006 included only one month of revenue for the 
acquisitions
quality
during the year we received the isoiec 
270012005 certification for our information 
security management system supporting our 
mpls network achievement of this accreditation 
demonstrates that robust and adequate 
controls to address confidentiality integrity 
and availability of information are in place 
to safeguard the information of customers 
stakeholders and trading counterparties 
in 2003 thus also achieved iso 90012000 
accreditation which certifies our processes to 
international quality standards and is subject to 
independent audit twice a year 
customer satisfaction 
our existing customer satisfaction programme 
has continued to be extended over the past year 
and now covers all of our products and services 
our ongoing rollout of surveys will enable us 
to give all of our customers the opportunity to 
provide feedback on the products and services 
we provide
network performance
availability on the core multiprotocol label 
switching mpls network was consistently above 
our 9995 target throughout the year enabling 
thus to manage sharply increasing volumes  
of mpls traffic securely for our customers
1 continuing operations exclude demon netherlands  
contact centre and interactive for all years 
2 represents property plant equipment and intangible  
asset balances
3 operating costs exclude depreciation and amortisation 
including impairment restructuring costs and other  
operating income
financial data for the charts above is prepared under ifrs  
for 2005–2008 and uk gaap for 2004 all data relates to 
continuing operations
1   excludes restructuring costs
thus group plc annual report 2008

17 directors’ report
other financial issues
accounting estimates and judgements 
critical accounting judgements in applying the 
group’s accounting policies and key sources  
of estimation uncertainty
the preparation of financial statements in 
conformity with ifrs as adopted by the eu 
requires the use of accounting estimates and 
assumptions it also requires the directors to 
exercise their judgement in the process of 
applying the group’s accounting policies 
estimates assumptions and judgements are 
evaluated based on available information and 
experience as the use of estimates is inherent in 
financial reporting actual results could differ from 
these estimates the areas involving a higher 
degree of judgement or complexity which have  
a significant risk of causing material adjustments  
to the carrying amounts of assets and liabilities 
are described below
revenue
the group earns revenue from a number of 
different products and services some of which 
are delivered under bespoke contracts  
in applying the group’s accounting policies 
in respect of revenue recognition a significant 
degree of judgement and estimation may be 
required in interpreting contracts and estimating 
values to be used in calculating revenue and 
associated costs in each accounting period
interconnect income and payments to other 
telecommunications operators
in certain instances thus relies on other 
operators to measure the traffic flows 
interconnecting with our networks estimates  
are used in these cases to determine the amount 
of income receivable from or payments we  
need to make to these other operators the 
prices at which these services are charged are 
often regulated and are subject to retrospective 
adjustment and estimates are used in assessing 
the likely effect of these adjustments
property arrangements 
our property rationalisation programme has 
continued to mitigate surplus property liabilities 
over the last 12 months with some notable 
successes the programme is ongoing  
however in the current economic environment 
it is recognised that it will take further time to 
mitigate the surplus liabilities in addition vacant 
property empty rates relief in england and 
wales will also be more limited from april 2008 
onwards estimates have been made as to the 
cost of vacant properties and any shortfalls 
arising from the sublease rental income being 
lower than the principal lease liability borne by 
thus any such costs or shortfalls have been 
recognised as a balance sheet provision
deferred tax
management judgement is required when 
assessing the extent to which deferred tax assets 
should be recognised with consideration given 
to the timing and level of future taxable income 
the recognition of the deferred tax asset on the 
balance sheet in 2007 reflected the increased 
momentum in the operating performance of the 
business and the delivery of the majority of the 
integration programme relating to the acquisitions 
in 2006 further details are contained within 
notes 13 and 26 to the consolidated  
financial statements
postretirement benefits
the group’s defined benefit pension scheme 
is assessed annually in accordance with ias 
19 an independent actuarial valuation of the 
defined benefit pension scheme funding was 
completed in the previous financial year  
the size of any surplus or deficit is sensitive to  
the market value of the assets held by the scheme 
and to actuarial assumptions which include 
price inflation pension and salary increases 
the discount rate used in assessing actuarial 
liabilities mortality and other demographic 
assumptions and the levels of contributions  
with reference to the discount rate used ifrs  
as adopted by the eu requires this to relate  
to highquality bond yields
providing for doubtful debts
thus provides services to substantially all 
customers on credit terms certain debts will not 
be paid through the default of a small number 
of customers estimates based on our historical 
experience are used in determining the level of 
debts that will not in the opinion of the directors 
be collected these estimates include such factors 
as the current state of the uk economy and 
particular industry issues
useful lives for property plant and equipment
the plant and equipment in thus’ networks are 
longlived with cables and switching equipment 
operating for over ten years and underground 
ducts being used for decades the annual 
depreciation charge is sensitive to the estimated 
service lives allocated to each type of asset 
asset lives are assessed annually and changed 
when necessary to reflect current thinking on their 
remaining lives in light of technological change 
prospective economic utilisation and physical 
condition of the assets concerned 
asset impairment
goodwill is tested annually for impairment  
in addition impairment tests are performed  
on an annual basis where there is an indication 
that impairment may exist in performing these 
impairment tests management’s judgement is 
required in preparing future cash flow projections 
and then assessing an appropriate discount rate 
to be applied to these cash flows
the cost of capital used to discount pretax  
cash flows can have a significant effect on  
the calculation of the recoverable amount 
the cost of capital which is expressed as a 
percentage is derived from the group’s posttax 
weighted average cost of capital
future cash flows are based on cash flow 
projections for ten years with cash flows in the 
first five years based on approved forecasts 
which are then extrapolated in perpetuity using 
a nominal longterm growth rate as future 
cash flows may deviate to some degree from 
forecasts the results of the impairment review 
are sensitive to such changes further details are 
contained within note 3 to the consolidated 
financial statements – ‘impairment’
the preparation of the group’s financial 
statements requires the directors to exercise  
their judgement accounting estimates 
assumptions and judgements are evaluated  
to ensure they remain appropriate

18
thus group plc annual report 2008 the defined benefit pension scheme possessed 
assets of £791m and liabilities of £753m 
resulting in a surplus of £38m at 31 march 
2008 31 march 2007 £08m the defined 
benefit pension scheme sensitivities table below 
highlights the impact that changes in longevity 
assumptions and discount rates may have on 
the reported surplus further details are included 
in note 31 to the consolidated financial 
statements
   £m
1 year change in longevity assumptions 14
01 change in discount rate   18
source company’s independent pension advisors
treasury policies and objectives
thus’ treasury policy aims to minimise the use  
of complex financial instruments and manage 
cash to meet the needs of a tightly managed 
trading company and conservative balance 
sheet within this framework specific 
consideration is given to managing financial  
risks arising from limited foreign currency exposure 
with supplier payments in us dollars and euros 
and exposure to changes in interest rates on 
our bank loans with respect to the bank loans 
further detail is contained within note 24 to the 
consolidated financial statements – ‘interest  
rate risk’
tight control exists over treasury activities  
with any nonstandard instruments requiring 
approval from the chief financial officer or 
board depending on their nature thus has  
no offbalance sheet financing or special purpose 
vehicles and treasury activities are not run as  
a profit centre 
creditor payment policy and practice
the group’s current policy concerning the 
payment of the majority of its trade creditors  
is to follow the better payment practice code 
copies are available upon request from the 
company secretary for other suppliers the 
group’s policy and practice is to settle terms  
of payment when agreeing the terms of the 
transaction to include the terms in contracts  
and to pay in accordance with its contractual 
and legal obligations the group’s ‘creditor  
days’ at 31 march 2008 were 44 days  
the company did not have any trade  
creditors at 31 march 2008
repurchase of shares
resolution 9 to be proposed at the annual 
general meeting seeks authority for the 
company to repurchase its own shares  
any such repurchase will have to be financed  
out of distributable reserves
currently the company has a deficit on its 
distributable reserves the company is in the 
course of examining whether or not through 
an internal reorganisation the deficit can be 
eliminated 
any such reorganisation will require the consent 
or approval of certain third parties including the 
court and the company’s banks currently  
it is not possible to state with complete certainty 
whether or not the proposed internal  
reorganisation will be completed
thus group plc annual report 2008

19 directors’ report
principal risks and uncertainties
directors’ policies for  
managing principal risks
there is a process for identifying evaluating  
and managing significant risks faced by 
the business through ‘acertus governance’ 
software risk reviews are undertaken regularly  
by the respective business areas throughout the 
year to identify and assess key risks associated 
with the achievement of our business objective 
this software requires risk owners to regularly 
monitor and review risks and associated controls 
and action plans to evidence the management 
of principal risks within the group 
quarterly reviews have been carried out by  
the risk management group to ensure this is  
a continuous process which is embedded in  
our business culture all aspects of business 
risk such as strategic operational commercial 
financial compliance and business continuity risk 
are covered by the risk assessments the internal 
audit function provides independent assurance  
to the directors on the controls applied to 
mitigate key business risks the quarterly  
reviews are reported to the audit committee  
and consequently to the board 
the risks identified and discussed within this 
section are not an exhaustive list of the risks 
faced by the business but are considered by 
management to be some of the principal risks 
our aim is to manage and control identified  
risk through our established processes but risk 
cannot be eliminated completely 
bt’s nextgeneration network
bt is consulting on access and interconnect 
arrangements between itself and other operators 
in relation to its ‘21st century network’ 
programme the migration of existing multiple 
servicespecific networks to a single converged 
nextgeneration network as bt is by far the 
largest fixed line operator in the uk this move 
impacts all other operators and brings potential 
operational and commercial risks we are 
actively involved in various working groups on 
this topic such as the consult21 steering board 
and the ofcom body ngnuk we anticipate 
that in respect of many of the new interconnection 
products bt will be designated by ofcom as 
having ‘significant market power’ and therefore  
be subject to regulation the programme 
however continues to experience delays 
notably we already have our own next
generation network in place having invested  
in network and service capability to evolve  
our services and so maximise the opportunities 
from this development 
 
bt 
we continue to monitor the performance  
of bt as our main supplier and in particular  
bt openreach there is a potential risk that 
service delivery to our customers is impacted  
by poor supplier performance control measures 
include continual supplier engagement and 
active lobbying of the regulator in order to 
mitigate this risk 
the main identified  
strategic risks are
market structure industry economics  
and investor confidence
the uk fixed line telecommunication market 
is characterised by overinvestment in 
infrastructure and networks to supply traditional 
telecommunication services this has created 
a challenging and competitive landscape in 
which price competition for traditional fixed 
line telecommunication services has been 
intense making it difficult for any individual 
provider to gain scale and deliver meaningful 
returns more generally unfavourable economic 
conditions in 2007 08 have also impacted 
telecommunications along with other sectors 
several risks can arise as a consequence 
including possible reductions in share price 
thus has a limited ability to control these risks 
directly however we have an active programme 
of engaging with key stakeholders and the city  
our focus on creating value for customers through 
early investment in a nextgeneration network  
and our product and service portfolio has 
positioned us to deliver growth in a challenging 
market and economy 
regulation
the group operates in a highly regulated 
environment although the focus of much of  
the regulation is on companies with ‘significant 
market power’ such as bt ofcom holds powers 
to set and amend regulations for the industry and 
to impose sanctions including financial penalties 
ofcom has laid down a number of ‘general 
conditions of entitlement’ which apply to all 
companies providing publicly available electronic 
communications services in the uk our business 
operates within this regulatory environment and 
we actively work with the regulator contributing 
to various industry and government forums and 
debates in order to influence regulatory outcomes 
quarterly reviews have been carried  
out by the risk management group to 
ensure this is a continuous process which 
is embedded in our business culture 

20
thus group plc annual report 2008 the main identified  
commercial risk is
delivering growth
there is always an element of risk associated 
with growing a business within a market 
undergoing profound change sales management 
monitors the effectiveness of leads into our sales 
pipeline and corresponding conversion rates  
the forecast level of sales and other factors 
required to achieve targets are also examined 
regularly regular reporting within the group 
identifies levels of margin at risk in order that 
appropriate action can be taken 
the main identified  
operational risks are
maintaining access to the network
we are reliant on our it systems and maintenance 
of network integrity quality and availability is a 
significant operational risk due to the impact on 
our customer delivery for this reason business 
continuity is of major importance to thus and 
our customers our platform availability is closely 
monitored on an ongoing basis
meeting customer expectations
the business strives to continually meet and 
exceed agreed levels of service failure to do 
so could impact customer satisfaction levels 
affecting future sales financial performance and 
possibly brand reputation customer satisfaction 
levels are regularly measured and reported on 
by our customer services function moreover 
in demonstrating our commitment to quality the 
business has been certified for a number of years 
to the iso 90012000 standard in 2007 08 
the business has increased its portfolio of 
recognised accreditations with the addition of  
the international information security standard 
isoiec 270012005 for its mpls network 
the main identified  
people risk is
recruiting retaining and training employees
recruiting and retaining appropriate employees 
can also impact business performance  
the human resources department implements 
policy and procedures in this respect including 
familyfriendly policies employee benefit 
initiatives and salary benchmarking our 2007 
employee survey results were very encouraging 
particularly in the areas of employee retention 
and satisfaction 
we must also ensure that our employees  
receive appropriate training to safeguard 
excellent service and delivery to our customers 
training requirements are identified through 
regular appraisals carried out by line managers 
and our training processes are assessed as  
part of our investors in people accreditation
the main identified  
financial risks are
bank covenants
thus has a £1 10m bank facility the loan is 
used for general corporate purposes including 
working capital requirements our bank debt 
is subject to two standard ebitdarelated 
covenants while headroom in reporting 
against these covenants is considered more than 
adequate the risk and corresponding cash levels 
are closely monitored and reported on to ensure 
that any risk of covenant breach is mitigated
billing
the risk of inaccurate billing is heightened in 
the telecommunications industry due to complex 
pricing structures thus management has 
implemented several controls to minimise this 
risk our commitment to accurate billing can 
be demonstrated via our ofcom metering and 
billing scheme approval for our thus branded 
switched telephony products 
pensions
current legislation requires pension shortfalls  
in respect of final salary pensions to be funded 
fully in cash there is a risk that due to economic 
and social factors which are largely outside 
the control of the company pension liabilities 
increase asset and liability levels are therefore 
closely monitored by both the company and 
pension trustees to ensure proactive decision 
making is implemented as required 
thus group plc annual report 2008

21 directors’ report
employees
talent management
in 2007  we launched our ‘talent spotting’ 
programme which involved a rigorous 
application process internal and thirdparty 
recommendations and a series of assessment 
exercises the programme successfully  
identified high potential employees who  
have now embarked on personalised 
development programmes 
our talent spotting programme is designed  
to help high calibre employees make a valued 
and lasting contribution to the company’s 
success whilst enhancing their personal  
and leadership skills
investors in people
our commitment to our employees is endorsed 
by our investors in people accreditation
we value this accreditation as it is a highly 
effective tool which focuses on training and 
developing our employees to achieve our 
business objectives
reward
the performance of managers and senior 
professional staff is linked to the group’s financial 
results by way of a bonus scheme which has 
targets linked to revenue ebitda and cash flow 
reward has an important role to play with regard 
to employee retention and we continue to carry 
out annual benchmarking comparing employee 
salaries against the market to allow flexibility 
and the ability to react to changing market 
conditions salaries are reviewed quarterly to 
ensure remuneration is appropriate to retain  
highquality employees 
for sales staff commission schemes are based 
on billed revenue with a weighting to increase 
reward for the sale of services with higher  
profit margins and nextgeneration services  
this commission scheme is designed to focus 
sales staff on value creation for our customers 
and shareholders
our culture
we place a strong emphasis on creating a 
positive working culture encouraging a clear 
understanding of our objectives and key business 
imperatives our talented and skilled employees 
underpin our ability to deliver innovative 
telecommunication services that bring value  
to our customers’ business operations 
the enthusiasm flexibility and continued 
development of our employees remain vital 
to achieving our overall objectives and we 
continue to invest in training and development to 
enhance their skillbase providing our employees 
with the resources they require to maximise 
their performance and drive business growth 
remains a priority our objective is to ensure 
measures are in place to retain and develop our 
employees while at the same time attracting 
talented individuals to join our organisation
maximising our people performance
at thus we encourage value and reward 
superior performance the performance of 
employees is measured against clear business
focused objectives and through our ‘windmills’ 
performance appraisal process this is supported 
by an ongoing programme of twoway 
communication including a quarterly onetoone 
process which ensures that qualitative discussions 
are taking place with employees at regular 
intervals throughout the year 
developing our people
we are focused on developing employee skill 
levels and a strong corporate culture which best 
facilitate growth superb customer service and 
cost competitiveness all aimed at enhancing 
sustainable growth in shareholder value  
the capability performance and commitment  
of our employees remain key factors in our ability 
to grow our business in the competitive market in 
which we operate we have a highly qualified 
workforce with our recent employee survey 
indicating that over 60 of our employees have 
degrees andor professional qualifications 
investment in training and development of our 
employees continues and our open learning 
facility which is available to both employees  
and their families continues to be well used
at thus we are keen to develop the careers  
of our employees during the past financial year 
35 of new positions within the company have 
been filled by internal applicants giving many 
employees the opportunity to broaden their  
skills and further develop their careers within  
our company
growing our talent
we place a strong emphasis on continuous 
professional development we believe that this  
is vital to attracting and retaining the highest 
calibre people we have a number of ways  
of doing this
graduate  apprenticeship programme
we have an established graduate programme 
which provides participants with experience 
exposure and education through a series of 
placements work experience rotations and 
further education this programme is aimed  
at continually growing our talent pool
during 2008 we are launching a new initiative 
to introduce apprentices to our company 
the successful candidates will be given the 
opportunity to learn ‘on the job’ across a number 
of business areas and will be mentored by our 
own employees
undergraduate sponsorships
this year in addition to recruiting graduate 
trainees into our business we are also sponsoring 
ten undergraduate students from the university 
of greenwich this sponsorship allows these 
students to undertake their chosen studies without 
the financial pressures which might impede their 
effective learning
in addition we also have a number of other 
educational programmes in place including 
sponsoring university placement students for 
cisco course graduates to undertake six week 
placements within our organisation helping the 
students to develop their skills and our company 
to develop potential talent we are delighted that 
several of these students have subsequently been 
employed by the company

22
thus group plc annual report 2008 the group has offered all employees access to 
an annual sharesave scheme during 2007 08 
which allows them to save and buy shares 
in the company at a discounted rate thereby 
sharing in any increase in the share price over 
the savings period the group personal pension 
gpp plan matches employee contributions up to 
6 affording employees the opportunity to build 
meaningful pension provisions for the future while 
strengthening our ability to attract and retain 
quality employees
during 2007 08 we launched uthus 
reward an online benefits programme for all 
thus employees this programme affords 
employees the opportunity to purchase additional 
benefits to suit their lifestyle wherever possible 
taking advantage of the inland revenue 
approved ‘salary sacrifice’ scheme which results 
in tax and national insurance savings for both 
employees and the group examples of benefits 
on offer under the scheme include childcare 
vouchers health screening and tax free bicycles 
communication and consultation
at thus we encourage communication and 
employee involvement through our elected 
employee forum xchange this forum allows 
thus to share business information with 
employees encouraging an awareness of 
the financial and economic factors affecting 
the group and importantly takes account of 
employee views and feedback when planning 
change this employee forum which meets every 
two months is integral to facilitating the smooth 
path of business development and evolution
equal opportunities
thus is committed to promoting equal 
opportunities for all of our employees our policy 
in respect of employment of disabled persons is 
the same as that relating to all other employees 
in matters of training and career development 
where employees become disabled during 
the course of their employment we make every 
effort to make reasonable adjustments to their 
working environment to enable their continued 
employment 
talented
our talented and skilled employees 
underpin our ability to deliver 
innovative telecommunication services 
that bring value to our customers’  
business operations
thus group plc annual report 2008

23 directors’ report
environment and community
we have also committed to achieving the 
international organisation for standardisation 
iso 140012004 accreditation for our 
environmental management system  
the implementation of the two standards  
will enable thus to control its occupational  
health safety and environmental risks and 
improve on our performance
community relations
across the group we place strong emphasis  
on our charitable and community activities  
we are keen to play an active role in the 
communities in which we are based and we 
actively encourage employees to participate  
in community relations activities 
charitable and political donations 
following the share consolidation in march 
2006 the fractional share entitlements were 
sold raising net proceeds of approximately 
£274000 the directors’ aim was to apply 
these proceeds for gifts or donations to a range 
of worthy causes and a number of initiatives 
are underway throughout the uk during the 
year the group made the following charitable 
donations £2500 to the victim support sunrise 
appeal £3000 to the scottish outward bound 
association £4400 to manchester children’s 
hospital and £30000 to the university of 
greenwich the group made no donations  
for political purposes 
outward bound trust
the outward bound trust is an educational 
charity which inspires young people from all 
walks of life to fulfil their potential through 
challenging outdoor experiences raising  
selfesteem and preparing them to face the 
future with confidence thus provides financial 
assistance in the form of bursaries for young 
people from disadvantaged backgrounds who 
would not normally have access to or be able  
to afford an outward bound course during 
2007 08 we helped over 150 children from 
schools across scotland manchester and london
during this year our employees also took part in 
the scottish outward bound association soba 
challenge soba is an educational charity 
offering professional teambuilding courses  
which also helps to further fund the outward 
bound trust courses for disadvantaged young  
people while developing the teambuilding 
and leadership skills of our employees
corporate social responsibility
at thus we are committed to corporate  
social responsibility csr and we have policies 
in place to ensure that we operate in a safe 
ethical and responsible manner which protects 
the environment as well as safeguarding the 
health and safety of our employees customers 
and the communities in which we operate
 
our csr steering group manages our activities 
and is drawn from several disciplines across 
the group the committee meets regularly and 
reports to the management board on progress
we are a member of scottish business  
in the community and benchmark ourselves 
against other companies
safety health and environment 
the commitment and participation of all 
employees is vital to the efficient and effective 
implementation and control of our safety  
health and environmental management systems 
in order to meet our responsibility to protect  
the environment employees and the business  
thus continues to focus on enhancing our 
existing safe working practices and the 
production of a robust risk management  
strategy that will eliminate operational hazards  
or minimise the risks incurred our performance 
reflects the success of this approach the total 
number of internally recorded accidents remains 
very low with a monthly average of 11  
one accident has been reported to the  
enforcing authority as a ’3 day accident’ 
improvements have been introduced to report 
key health and safety performance indicators 
to the board with both reactive and proactive 
information being provided this ensures 
the timely identification and prioritisation of 
performance trends 
significant elements of our safety health 
and environmental management systems’ 
documentation have been revised to ensure  
that a single set of policies and procedures  
is adopted a range of supporting documents 
and templates has been produced to assist 
managers with assessment planning and 
monitoring activities
the communication of safety health and 
environment information to managers and 
employees continues to improve with the 
addition of a designated environmental  
forum that complements the existing safety  
and health forums this provides a basis  
upon which to develop our high standards 
environmental management 
to enhance our environmental management 
systems a set of standards has been produced 
we continue to work on ways to reduce our 
impact on the environment the main focus being 
on energy conservation and the use of renewable 
resources the reuse and recycling of waste 
electrical equipment a reduction in general 
waste going to landfill and the effects on the 
environment from travel this year we generated 
60008kg of waste electrical equipment  
98 of which was reused or recycled
energy
with a commitment to reducing our impact on 
the environment 98 of the electricity supply 
points were provided with a source of renewable 
energy this year 
achievements
in recognition of our commitment to the 
management of safety and health we have 
been awarded the royal society for the 
prevention of accidents rospa bronze award 
this is the first phase of a 5 year plan to obtain  
a rospa gold award this achievement forms an 
integral part of a phased approach to gaining 
the occupational health and safety assessment 
series ohsas 180012007 accreditation 

24
thus group plc annual report 2008 respect
thus is committed to ensuring we  
are a ‘good neighbour’ and making a 
genuine contribution to the communities 
we serve
the emmaus foundation
thus has a longestablished relationship with 
emmaus which is a selfhelp and selfsupporting 
enterprise offering unemployed and homeless 
people opportunities for work companionship 
and the chance to regain selfrespect through 
their own efforts the charity enables people  
to move on from their homelessness providing 
work and a home in a supportive family 
environment companions as residents are 
known work fulltime collecting renovating and 
reselling donated furniture this work supports  
the community financially and enables residents 
to develop skills and rebuild their selfrespect  
all companions share a commitment to 
rebuilding their lives and participating in the  
life and work of the communities around them
other charities
during the year thus continued to support  
a number of other charitable and educational 
causes including the united kingdom 
telecommunications academy ukta  
a charity which helps to support and  
educate students from the developing world  
on how to create and regulate successful 
telecommunications we also give financial 
assistance in the form of providing free  
telephone lines in support of women’s aid  
and their domestic abuse campaigns
 
the company also operates a charity matching 
scheme for employees’ personal charitable and 
community relations activities this included 
donations to cancer research macmillan 
cancer support and marie curie cancer care 
of £250 each
thus group plc annual report 2008

25 directors’ report
board of directors
nonexecutive directors
1 philip rogerson
philip rogerson 63 was appointed chairman  
of thus on 1 september 2004 mr rogerson  
is also chairman of aggreko plc carillion 
plc and northgate plc and a nonexecutive 
director of davis service group plc from 
1992 to 1998 he was finance director and 
subsequently deputy chairman of bg plc  
he spent his early career with ici in a variety  
of roles latterly as general manager finance
2 ian chippendale
ian chippendale 59 was appointed as a  
nonexecutive director of thus on 15 october 
1999 mr chippendale was chairman of 
rbs insurance until december 2006 having 
previously been chief executive of direct line 
group limited prior to joining direct line in 
1996 mr chippendale was chief executive  
of privilege insurance from 1994 and before  
that he was a director of provident financial 
plc he is also a nonexecutive director of 
homeserve plc and transatlantic holdings inc
3 rick medlock
rick medlock 47 was appointed as a  
nonexecutive director of thus on 7 november 
2006 he is chief financial officer of inmarsat 
plc the mobile satellite services company 
providing voice and data communications 
to industrial government military and aid 
organisations worldwide prior to joining the 
board of inmarsat in september 2004 he 
served as chief financial officer and company 
secretary of nds group plc for eight years  
mr medlock previously served as chief financial 
officer of several private equitybacked 
technology companies in the uk and the usa 
he is a fellow of the institute of chartered 
accountants of england and wales 
4 alison wood
alison wood 44 was appointed as a  
nonexecutive director of thus on 1 november 
2007  she joins national grid as global 
director of strategy  business development in 
june 2008 prior to this she was group strategic 
development director at bae systems reporting 
to the chief executive and responsible for 
corporate strategy and mergers and acquisitions 
including supporting the board’s annual strategic 
review of the group she joined bae in 1991 
and has held a range of strategy mergers and 
acquisitions and government interface roles 
most recently as group managing director of 
niteworks a joint programme with the ministry 
of defence and nine defence companies to set 
up new battlefield simulation capabilities  
her career prior to bae was in consulting at 
outram cullinam  company from 1989 to 1991 
and booz allen  hamilton from 1985 to 1987   
she is also a nonexecutive director of btg plc

26
thus group plc annual report 2008
1 2 3 4 executive directors
5 william allan
william allan 54 is chief executive of thus 
he joined a predecessor company in december 
1998 as chief operating officer and was 
appointed managing director in february 1999 
mr allan has more than 25 years’ experience  
in the telecommunications industry in 1997  
mr allan was appointed chief executive 
of cable  wireless regional businesses 
he was a director of telecommunications 
of jamaica entel panama the barbados 
telephone company and the barbados external 
telecommunications company between 1995 
and 1997  mr allan was regional director for 
cable  wireless north east asia region 
president and representative director of cable 
 wireless japan and chairman of cable 
 wireless communications services limited 
japan he was also a director of international 
digital communications idc japan sakhalin 
electrosvyaz sakhalin telecom sakhalin 
telecom mobile and nakhodka telecom
6 philip male
philip male 41 is chief operating officer  
he joined a predecessor company originally as 
technical director of demon internet limited in 
october 1997  mr male has previous experience 
as technical director of computer newspaper 
services and pa data design part of the press 
association group and has held the positions 
of head of research and development and 
prior to joining demon director of strategic 
research with the press association group 
with advanced knowledge of data networking 
technologies programming languages and 
operating systems mr male has been involved  
in the development of internet services in the  
uk since 1990 
7 john maguire 
john maguire 42 a chartered accountant 
joined thus as chief financial officer in 
december 2000 prior to joining thus  
mr maguire was vice president finance  
japan and asia for cable  wireless global 
this included leading the finance team in 
cable  wireless idc japan’s secondlargest 
international carrier mr maguire has extensive 
financial and international telecommunications 
experience having held a number of other key 
financial positions within the cable  wireless 
group since 1991 including that of regional 
finance director of cable  wireless asia 
pacific based in singapore
audit committee
rick medlock chairman 
ian chippendale 
jo connell resigned 31 december 2007
alison wood appointed 16 november 2007
remuneration committee
ian chippendale chairman 
jo connell resigned 31 december 2007
rick medlock
alison wood appointed 16 november 2007
nomination committee
philip rogerson chairman
william allan
ian chippendale
jo connell resigned 31 december 2007
rick medlock
alison wood appointed 16 november 2007
senior independent  
nonexecutive director
ian chippendale
thus group plc annual report 2008

27
6 7 5 directors’ report
other information
names and details of directors
the names and details of the directors of the company who served  
during the year are shown on pages 26 and 27  jo connell and martin 
beesley also served as directors during the year resigning as directors  
with effect from 31 december 2007 and 25 june 2007 respectively
directors’ interests
details of the directors’ service contracts letters of appointment and 
remuneration are set out in the directors’ remuneration report on pages  
32 to 36 other than as disclosed therein or in the corporate governance 
report on page 29 in relation to martin beesley or in note 35 to the 
consolidated financial statements on pages 65 and 66 in relation to 
related party transactions none of the directors had a material interest in 
any contract of significance with the company and its subsidiaries during 
or at the end of the financial year the directors’ interests in the shares of 
the company at the year end are contained in the directors’ remuneration 
report on pages 32 to 36
indemnification arrangements for directors and officers
article 158 of the company’s articles of association grants subject to the 
provisions of the companies acts but without prejudice to any indemnity  
to which a director might otherwise be entitled an indemnity to any director 
or other officer of the company against any liability incurred by him in 
defending any proceedings relating to the affairs of the company in which 
judgement is given in his favour
in addition the company may purchase and maintain for any director 
or other officer or auditor insurance against any liability incurred in the 
execution of his duties and the company does maintain appropriate 
insurance cover against legal action brought against its directors and 
officers and the directors and officers of its subsidiaries 
auditors
a resolution to reappoint kpmg audit plc as auditors to the company 
and to authorise the directors to fix their remuneration will be put to the 
shareholders at the annual general meeting
statement as to disclosure of information to auditors
the directors who held office at the date of the approved directors’  
report confirm that so far as they are each aware there is no relevant 
audit information of which the company’s auditors are unaware and each 
director has taken all the steps that he or she ought to have taken as a 
director to make himself or herself aware of any relevant audit information 
and to establish that the company’s auditors are aware of that information
annual general meeting
the annual general meeting will be held at the radisson sas hotel  
301 argyle street glasgow g2 8dl on thursday 31 july 2008 at  
1 100 am details of the resolutions to be proposed at the annual general 
meeting are contained in the notice of the annual general meeting on 
pages 69 to 71
this directors’ report on pages 12 to 28 was approved by the board  
of directors on 20 may 2008 and was signed on its behalf by
david macleod
secretary
20 may 2008
thus group plc annual report 2008

28 corporate governance
corporate governance report
the board sets the policy to be followed by the group and continues to be committed 
to high standards of corporate governance the group has complied with the 
requirements of the combined code in respect of the financial year ended 31 march 
2008 except that the senior independent nonexecutive director has not during the 
year attended in accordance with the combined code provision d11 meetings 
with a range of major shareholders of the group as explained in the section headed 
‘relations with shareholders’ on page 30
board of directors
the separation of the roles of the nonexecutive chairman and the chief executive 
ensures that there is a well established division of authority and responsibility at the 
most senior level within the group the chairman leads the board in the determination 
of its strategy and achievement of its objectives the chief executive has direct charge 
of the group on a daytoday basis and is accountable to the board for the financial 
and operational performance of the group the division of responsibilities between the 
chairman and chief executive is set out in writing and has been agreed by the board 
during the year the board comprised a nonexecutive chairman three executive 
directors and four nonexecutive directors until the resignation with effect from 25 june 
2007  of martin beesley as a nonindependent nonexecutive director in accordance 
with the terms of the relationship agreement between the company and united utilities 
plc following the disposal by united utilities of its shareholding in the company  
the board then comprised three nonexecutive directors all of whom were considered 
to be independent by the board in addition to the chairman and the three executive 
directors alison wood was then appointed to the board as an independent  
nonexecutive director with effect from 1 november 2007 and jo connell retired  
from the board as an independent nonexecutive director her resignation from the 
board being effective from 31 december 2007 
the nonexecutive directors are from varied business and other backgrounds 
biographies of all the directors are set out on pages 26 and 27  including details of 
professional and business commitments of a significant nature induction is provided 
for all new directors which is tailored to their specific requirements and includes 
meetings with senior management site visits to business locations and provision of 
key documentation and information continuing development is provided through 
presentations and briefing materials in relation to the group in the course of regular 
board and committee meetings and also by external sources such as attendance by 
directors at seminars conducted by the company’s professional advisors and other 
recognised bodies
the nonexecutive directors are considered by the board to be independent and free 
from any business or other relationship which could materially interfere with the exercise 
of their independent judgement
all of the nonexecutive directors have held office throughout the year with the 
exception of martin beesley who resigned from the board on 25 june 2007   
jo connell who resigned from the board on 31 december 2007 and alison wood 
who was appointed to the board on 1 november 2007  executive directors normally 
retire at age 63 in terms of their service contracts nonexecutive directors are 
appointed for a specified term of three years which may be renewed the group 
maintains liability insurance for its directors and officers
ian chippendale has been identified as the senior independent nonexecutive 
director who is available to shareholders for concerns not resolved through the existing 
mechanisms for investor communication
directors must stand for election by the shareholders at the first agm following their 
appointment all directors also retire by rotation such that approximately onethird of 
the board retires and seeks reelection each year each director must retire and seek 
reelection at least every three years at the forthcoming agm to be held on 31 july 
2008 alison wood offers herself for election and philip rogerson and john maguire 
will retire as directors and offer themselves for reelection to the board following 
evaluation of the performance of each of those directors it is confirmed that each 
individual performs effectively in the role and demonstrates commitment to the role 
their continued appointment as board members is therefore recommended by  
the board 
details of directors’ remuneration together with the group’s remuneration policy and  
the principles under which these have been formulated and applied are described in 
the directors’ remuneration report as set out on pages 32 to 36
control of the group is through the board of directors the board’s main roles are to 
promote the success of the company for the benefit of its members create shareholder 
value provide leadership of the group approve the group’s strategic objectives and 
promote the highest standards of ethics and integrity in all of the group’s business 
activities
the board met ten times during the year and has a schedule of matters concerning 
key aspects of the group’s activities which are specifically referred to it for its collective 
decision the matters reserved to the board for decision include the approval of the 
annual report and any other financial statements the longterm objectives of the 
group and the strategy necessary to achieve these objectives the group’s budgets 
and plans significant capital expenditure and allocation of resources significant 
investments and disposals the arrangements for ensuring the group manages risks 
effectively any significant change in accounting policies and the appointment of the 
company’s main professional advisors
the types of decision delegated to the chief executive relate principally to 
implementation of the business plan and annual budget competitive positioning  
and relationships with employees customers and suppliers
the board evaluates its performance and that of its committees and individual 
directors the process adopted in respect of the board is by means of a board review 
of responses to a questionnaire completed by each director which encourages the 
directors to draw on their experience to endeavour to ensure that the group follows 
best practice and to suggest how the group’s procedures may be improved  
the committees also assess their respective terms of reference and effectiveness and 
report the conclusions to the board with recommendations for change if necessary 
the chairman has a private discussion at least once a year with each director on a 
range of issues affecting the group including an evaluation of the performance of  
the director and any matters which the director wishes individually to raise
the remuneration committee also reviews the performance of the chief executive  
and the other executive directors when considering their remuneration arrangements 
the chairman’s performance is evaluated by the nonexecutive directors at an annual 
meeting led by the senior independent nonexecutive director taking account of the 
views of the executive directors
the table below sets out the number of meetings of the board and its main committees 
during the year and the attendance of individual directors 
  audit  nomination remuneration
 board committee committee committee
number of meetings during the year 10 5 2 4
current directors 
philip rogerson 10  2 
william allan 10  2 
ian chippendale 9 4 2 4
philip male 10   
john maguire 10   
rick medlock 10 5 2 4
alison wood
1
 4 1 1 1
former directors
jo connell
 2
 7 4 1 2
martin beesley
 3
 2 
1 appointed to the board on 1 november 2007 and to the audit committee remuneration 
committee and nomination committee on 16 november 2007 
2 resigned from the board audit committee remuneration committee and nomination committee 
on 31 december 2007 
3 resigned from the board on 25 june 2007 
the chairman the chief executive the chief financial officer and the chief 
operating officer attended certain meetings of the audit committee and remuneration 
committee during the year at the invitation of the chairman of those committees
all directors have access to the advice and services of the company secretary who is 
responsible for ensuring that all board procedures are observed any director wishing 
to do so in furtherance of his duties may take independent professional advice at the 
group’s expense
board committees
the board has three principal standing committees the audit committee nomination 
committee and remuneration committee the composition purpose and function of 
each of these committees are described below 
audit committee
the audit committee comprised three independent nonexecutive directors except 
during the brief period between the appointment to the committee on 16 november 
2007 of alison wood and the resignation of jo connell from the committee on  
31 december 2007 when it comprised four independent nonexecutive directors  
the committee is chaired by rick medlock and has written terms of reference  
it met five times in the year to review the annual and interim accounts review the 
appropriateness of accounting policies review internal controls and financial reporting 
and made recommendations to the board it also considers the appointment and fees 
of the external auditors the appointment of the director of risk management as head 
of internal audit and reviews the risk management framework the internal audit plan 
and resulting reports and the group’s whistleblowing policy the audit committee 
discusses the action taken on specific areas identified by board members or in the 
internal and external audit reports the committee reviews its terms of reference 
and effectiveness annually and reports its conclusions to the board including any 
recommendations for change
the committee has also established a policy on the provision of nonaudit services by 
the external auditors which requires the committee to approve in advance the provision 
of certain kinds of those services within defined parameters the key principles which 
underpin the policy and which are designed to minimise the risk of conflict of interest 

29
thus group plc annual report 2008 arising are that the auditors should not audit their own firm’s work make management 
decisions for the group have a mutuality of financial interest with the group or be 
put in the role of advocate for the group prior approval of the audit committee is 
also required for any services provided by the external auditors where the cumulative 
annual fees in any year are likely to be in excess of the audit fee for that year in 
any case activities that may be perceived to be in conflict with the independence 
of the external auditors must be submitted to the committee for approval prior to 
engagement regardless of the amounts involved details of the nonaudit services 
performed during the year and the fees for those services are contained in note 6 to 
the financial statements on page 47  the committee in respect of the year assessed 
the effectiveness of the external audit service and independence of the external 
auditors the committee’s conclusion was that the service continued to be effective and 
that the auditors remained independent demonstrating effectiveness and commitment 
in the role a resolution to reappoint the external auditors and to authorise the directors 
to fix their remuneration will be proposed at the agm on 31 july 2008
in respect of the year the committee also had a meeting with the external auditors 
without executives present and a meeting with the director of risk management  
in his capacity as head of internal audit alone
the committee has established a policy in relation to the arrangements whereby 
employees of the group may in confidence raise concerns about possible 
improprieties in matters of financial reporting or other matters it reviews the terms  
of the policy and its operation annually
the chairman of the audit committee reports the outcome of the audit committee 
meetings to the board which receives the minutes of audit committee meetings
the board considers that the membership of the audit committee as a whole has 
sufficient and relevant experience to discharge its functions and that in particular  
rick medlock has recent and relevant financial experience the committee’s terms  
of reference are displayed on the company’s website at wwwthusnet
nomination committee
the nomination committee is chaired by the group’s nonexecutive chairman and 
comprises the chief executive the senior independent nonexecutive director and 
two other independent nonexecutive directors except for the brief period between 
the appointment to the committee of alison wood on 16 november 2007 and the 
resignation from the committee of jo connell on 31 december 2007 during which 
it included three other independent nonexecutive directors it has written terms of 
reference and its remit is to consider and make recommendations to the board on 
the appointment and reelection of directors having regard to the overall balance 
and composition of the board and to review and advise the board upon issues of 
succession planning the chairman of the nomination committee reports the outcome 
of the committee meetings to the board which receives the minutes of nomination 
committee meetings
in relation to board appointments the committee in liaison with the board prepares 
a profile of the requirements of the role in order to brief external search consultants to 
provide a list of suitable candidates both external and where appropriate internal for 
the committee to interview leading then to a shortlist and ultimate selection of the most 
suitable candidate for recommendation to the board for appointment the proposed 
candidate is provided with the opportunity to meet board members and the senior 
management team prior to acceptance of the appointment the committee reviews 
annually its terms of reference and effectiveness and reports its conclusions to the 
board including recommendations for any change the committee’s terms of reference 
are displayed on the company’s website at wwwthusnet
remuneration committee
the remuneration committee comprised exclusively three independent nonexecutive 
directors except during the brief period between the appointment to the committee 
on 16 november 2007 of alison wood and the resignation of jo connell from the 
committee on 31 december 2007 when the committee comprised four independent 
nonexecutive directors the committee meets regularly and is chaired by ian 
chippendale its remit is to make recommendations to the board on the group’s 
framework for the remuneration of the group’s executives and its cost and on behalf  
of the board to determine and review specified remuneration packages for the  
nonexecutive chairman the executive directors and the company secretary  
the committee seeks to design policies which will attract retain and motivate 
executive directors and senior managers of the required calibre the committee also 
has responsibility for reviewing the operation of the group’s bonus and incentive 
schemes the chairman of the remuneration committee reports the outcome of the 
committee meetings to the board and the board receives the minutes of remuneration 
committee meetings the directors’ remuneration report for the year is set out on 
pages 32 to 36
the committee reviews its terms of reference and effectiveness annually and reports 
its conclusions to the board including any recommendations for change the terms 
of reference and those of the committee’s remuneration consultants who are 
independent of the group are displayed on the company’s website at wwwthusnet
relations with shareholders
as at 31 march 2008 the company had 18303 million shares in issue 
approximately 90 of which were held by institutions and corporate shareholders  
with the remainder being held by private individuals the company had been notified 
of the following interests representing 3 or more of the issued share capital and 
voting rights of the company as at 20 may 2008
  number percentage of issued share
  of shares capital and voting rights
amber capital lp  200631 19  1096
columbia ventures corporation  16000000  874
aviva plc and delta lloyd nv  1564421 1  855
investec asset management limited  9345795  51 1
legal  general group plc  7 410249  405
deutsche bank ag  7 021224  384
there is a regular dialogue with shareholders through the annual and interim reports 
and through a supplementary investor relations programme focused around the group’s 
preliminary and interim results announcements and periodic trading updates the 
executive directors’ presentation of results is broadcast through webcast following 
results the executive directors undertake a series of formal presentations to existing and 
potential investors in london edinburgh glasgow and also in mainland europe and 
the usa in november 2007 the executive directors and members of the management 
team also held an investor day for analysts and investors
to develop an understanding of the views of major shareholders the board receives 
regularly an investor relations report compiled with input from the group’s brokers 
setting out key features and trends in relation to trading in the group’s shares and 
share price movements analysts’ reports on the group its competitors and the 
telecommunications sector are circulated to board members on a regular basis 
feedback from investors after the group’s results announcements and presentations are 
regularly reported to the board the nonexecutive directors are also invited to attend 
presentations of the group’s results 
the senior independent nonexecutive director has not during the year undertaken 
in accordance with the combined code a programme of meetings with a range of 
major shareholders of the group as this has not been considered necessary by the 
board it is believed that the approach described in this section provides an efficient 
method of maintaining contact with shareholders and to date the group has seen no 
evidence of demand from shareholders for such meetings the situation will be kept 
under review in the year ahead
the agm which is normally attended by all directors gives those institutional  
and private shareholders attending the opportunity for communication with the  
board shareholders present are encouraged to ask questions both during and after 
the meeting 
internal control
the board has maintained the approach adopted in previous years in establishing 
and monitoring the group’s internal control procedures and policies in following the 
requirements of the combined code a review on an annual basis of the effectiveness 
of the system of internal control is carried out by the board this review includes 
material financial operational and compliance controls and risk management  
the turnbull report internal control revised guidance for directors on the combined 
code published in october 2005 provides guidance to the directors in respect  
of this requirement
overall responsibility for the system of internal control and for reviewing the 
effectiveness of the system rests with the directors of thus group plc the internal 
audit function of the group supports the directors in assessing the operation of key 
internal controls through a structured review programme the purpose authority and 
responsibility of the group’s internal audit function is contained within a formal risk 
management charter
the system of internal control is designed to manage rather than eliminate the risk 
of failure to achieve business objectives internal control therefore can only provide 
reasonable and not absolute assurance against material misstatement or loss
during the course of the year the risk management and internal control systems have 
continued to be developed across the group the risk management framework is 
designed to ensure that the key controls are and have been embedded into business 
processes this has enabled the directors to be satisfied that the group was fully 
compliant with the revised combined code provisions including those of the turnbull 
report on internal control in the course of the financial year ended 31 march 2008 
control environment
the group is committed to ensuring that a suitable control environment exists which 
will not hinder its aim to be the preeminent alternative telecommunication provider for 
business customers in the uk
the group has a defined organisational structure and any changes are communicated 
throughout the business individual objectives and authority levels are identified and 
reviewed on an ongoing basis accountability and key responsibilities are documented 
in role profiles and reporting models are utilised to ensure that issues are escalated 
appropriately codes of conduct are also published within the business to ensure that 
employees are educated in expected standards of behaviour these include probity 
whistleblowing and disciplinary policies 
corporate governance
corporate governance report – continued
thus group plc annual report 2008

30 each of the executive directors has responsibility for specific aspects of the group’s 
business the management board is chaired by the chief executive and is the 
principal forum at senior management level in the group which supports decision
making by the chief executive and the executive directors within the authorities 
delegated to them by the board of thus group plc the management board focuses 
on business plan implementation competitive positioning and customer requirements 
and meets on a monthly basis in advance of the thus group plc main board 
the management board receives reports on corporate performance from various 
management groups which meet regularly the implementation of the year’s annual 
budget remains its focus
the earnings update committee meets regularly and reviews detailed revenue and 
margin data from group level down to individual product lines the committee consists 
of various operational and financial business representatives including product sales 
and finance during committee meetings a number of presentations are given by 
product managers to the business directors on actual and forecasted revenue and 
margins in addition a detailed operating cost forecast is also produced allowing 
subsequent production of an updated group ebitda forecast the committee meetings 
end with a review by the executive directors of the aggregated group position the 
chief financial officer also carries out a detailed monthly review of the financial results
the chief operating officer chairs business operations which manages the dayto
day operation of the business ensuring cohesion in marketing sales provisioning and 
through to operational delivery
capital investment major bids facilities and major project implementation within 
the group are tracked by capital planning and programme management which is 
chaired by the support services director
identification and assessment of business risk and evaluation  
of controls
there is an ongoing process for identifying evaluating and managing the significant 
risks faced by the business this process has been in place for the year under review 
and up to the date of approval of the annual report the process is regularly reviewed 
by the board via the audit committee and is guided by the content of the turnbull 
report 
risk assessments are completed on key processes and quarterly reviews have been 
carried out by the risk management group to ensure this is a continuous process 
which is embedded into the business all aspects of business risk such as financial 
operational strategic compliance and business continuity risk are covered by the  
risk assessments 
risk reviews are also undertaken regularly by the respective business areas throughout 
the year to identify and assess the key business risks associated with the achievement 
of strategic objectives the reviews are supported by governance software which 
enables and requires risk owners to regularly monitor and review risks within the 
group the reviews include consideration of the nature and extent of risks facing the 
group the likelihood of risks materialising and review of controls and action plans 
associated with the risks 
as a result of our risk management process and monitoring thereof we have been 
successful in securing a reduction for the past two years in our corporate insurance 
premiums 
revenue assurance software continues to be employed by the group and is designed 
to assure revenue streams and reduce the potential for fraud against the company 
during the year the software has been further integrated into risk management 
processes with activity expanding to cover additional revenue streams
monitoring
the group’s risk management functions consist of internal audit quality management 
revenue assurance business continuity corporate security and health  safety 
professionals their activities include verification of core processes significant risks and 
reviewing compliance with company policies and business accreditations
the internal audit function continues to independently assess and audit the 
effectiveness of internal control similarly the revenue assurance function carries out a 
programme of review and assurance of the group’s revenue streams
the group safety health and environment team manages develops and assesses 
compliance against the group’s health safety and environmental management 
systems the company applies the standards set out in hsg65 ‘successful 
health and safety management’ in addition thus has committed to achieving 
ohsas18001 this will allow the company to consistently identify and control its 
health and safety risks reduce the potential for accidents aid legislative compliance 
and improve overall performance
the business continuity unit ensures that all business continuity plans and disaster 
recovery processes are maintained audited and regularly tested in accordance with 
company policy
corporate security is responsible for company security policies and management 
of the information security management system which maintains our compliance to 
the international information security standard isoiec 270012005 thus was 
awarded certification to the exacting standard for our mpls network during the year 
under review
an assessment of residual risk and of significant risks across the business resulting 
from the reviews of the risks of the group is presented to the audit committee on a 
quarterly basis control failings or weaknesses assessed as significant are included 
within these quarterly reviews by the audit committee including discussion on actions 
taken by the business to address them this ensures that necessary actions have been 
or are being taken to remedy any significant control failings or weaknesses
finally an additional annual review of the effectiveness of the system of internal control 
and risk management processes is carried out by the board 
going concern
after making enquiries the directors have a reasonable expectation that thus group 
plc has adequate resources to continue in operational existence for the foreseeable 
future for this reason it continues to adopt the going concern basis in preparing the 
financial statements on pages 38 to 67 
statement of directors’ responsibilities in respect of the annual report 
and financial statements
the directors are responsible for preparing the annual report and the group and 
parent company financial statements in accordance with applicable law and 
regulations
company law requires the directors to prepare group and parent company financial 
statements for each financial year under that law they are required to prepare the 
group financial statements in accordance with ifrss as adopted by the eu and 
applicable law and have elected to prepare the parent company financial statements 
on the same basis
the group and parent company financial statements are required by law and ifrss 
as adopted by the eu to present fairly the financial position of the group and the 
parent company and the performance for that period the companies act 1985 
provides in relation to such financial statements that references in the relevant part 
of that act to financial statements giving a true and fair view are references to their 
achieving a fair presentation
in preparing each of the group and parent company 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 they have been prepared in accordance with ifrss as adopted   
by the eu and
prepare the financial statements on the going concern basis unless it is  
inappropriate to presume that the group and the parent company will continue  
in business
the directors are responsible for keeping proper accounting records that disclose with 
reasonable accuracy at any time the financial position of the parent company and 
the group and enable them to ensure that its financial statements comply with the 
companies act 1985 they have general responsibility for taking such steps as are 
reasonably open to them to safeguard the assets of the group and to prevent and 
detect fraud and other irregularities
under applicable law and regulations the directors are also responsible for preparing 
a directors’ report directors’ remuneration report and corporate governance report 
that comply with that law and those regulations
the directors are responsible for the maintenance and integrity of the corporate 
and financial information included on the company’s website legislation in the uk 
governing the preparation and dissemination of financial statements may differ from 
legislation in other jurisdictions
responsibility statement of the directors in respect of the annual report 
and financial statements
we confirm that to the best of our knowledge
the financial statements prepared in accordance with the applicable set of  
accounting standards and set out on pages 38 to 67  give a true and fair view of 
the assets liabilities financial position and profit or loss of the company and the 
undertakings included in the consolidation taken as a whole and
the directors’ report set out on pages 12 to 28 includes a fair review of the  
development and performance of the business and the position of the issuer and 
the undertakings included in the consolidation taken as a whole together with a 
description of the principal risks and uncertainties that they face
by order of the board
william allan john maguire
chief executive chief financial officer
20 may 2008 20 may 2008

31
thus group plc annual report 2008 corporate governance
directors’ remuneration report
remuneration committee
constitution membership and advisors
at the date of this report the remuneration committee comprises the following 
independent nonexecutive directors ian chippendale chairman and rick 
medlock both of whom served throughout the year and alison wood appointed 
16 november 2007 during the year jo connell served on the committee until her 
retirement on 31 december 2007  during the course of the year the board accepted 
the recommendations made by the committee without substantial amendment
during the year the committee received advice and input from the chairman  
the chief executive and the director of human resources who are from time to time 
invited to attend committee meetings no individuals are involved in the determination 
of their own remuneration
towers perrin have been the committee’s independent remuneration advisors since 
october 2003 from march 2008 hewitt new bridge street hnbs were 
appointed to be the committee’s independent advisors following a competitive tender 
process hnbs provide no other services to the company hnbs report directly to the 
committee and have not undertaken any significant work for the company outside the 
area of executive remuneration any such additional work would need to be approved 
by the chairman of the committee the terms of engagement of the remuneration 
advisors are available at wwwthusnet and form part of the committee’s terms of 
reference
the committee’s overall objectives and remit
the committee’s terms of reference are also available at wwwthusnet the committee 
is responsible for making recommendations to the board on the company’s executive 
remuneration policy and for determining each executive director’s remuneration 
package in deciding the company’s broad policy for executive remuneration  
the committee aims to provide remuneration which is both competitive and 
appropriate the committee has always sought to pay no more than is necessary to 
motivate and retain highly skilled executives and seeks to ensure that its decisions take 
into account pay and conditions elsewhere in the company
remuneration policy
during the year the committee has continued its decision making on the basis of  
a number of underlying principles which can be summarised as follows 
executive directors and other senior executives should be paid market competitive  
levels of remuneration and receive significant incentives for performance which 
significantly exceeds challenging and objective targets
in setting base salary levels the committee has regard to both individual  
performance and external market information prepared by its advisors from a 
number of comparable companies both within and outside the telecommunications 
sector the aim is to set salaries which are generally around the midmarket 
level salaries will be above midmarket where both individual experience and 
performance and market comparables justify it
the committee remains strongly committed to ensuring there is an appropriate  
balance between fixed and performance pay it also seeks to ensure alignment with 
shareholders’ interests a significant proportion of executive directors’ remuneration 
is performancerelated through annual bonus and longterm incentives as set out 
below
the committee’s primary goal is to ensure that executive remuneration continues to  
be sufficiently attractive to retain executive directors in a highly competitive market 
and to motivate them to deliver results and to enhance shareholder value
the arrangements described below are likely to continue to apply in future years unless 
there are specific reasons for change the committee will continue to regularly review 
arrangements to ensure that they remain effective and appropriate to the company’s 
circumstances and prospects and to monitor the level of potential awards
the remuneration package
basic salary
following an increase of 36 the base salary levels for executive directors in 
2007 08 were as follows william allan £435120 john maguire £310800 
philip male £310800 the committee has considered salaries in relation to market 
data performance and pay settlements elsewhere in the business and has agreed an 
increase of 39 to base salaries with effect from 1 april 2008
annual bonus
executive directors and senior executives participate in the company’s annual 
corporate bonus plan
the committee remains committed to ensuring that bonus targets are challenging and 
only reward demonstrably superior performance
the annual bonus plan for executive directors is based on a mix of financial and 
nonfinancial performance conditions on an 8020 ratio and provides a maximum total 
payment of up to 100 of salary following a review of remuneration for the executive 
directors the committee has agreed to raise the maximum bonus potential for the 
chief financial officer and chief operating officer from 85 to 100 of salary with 
effect from 1 april 2008 further strengthening the performance related element of their 
remuneration package
the achievement of predetermined targets determines the levels of payout under the 
plan for the year ended 31 march 2008 there were three distinct financial measures 
which were weighted as follows
25 was determined by reference to cash flow after interest and capital expenditure 
50 was determined by reference to ebitda earnings before interest tax  
depreciation and amortisation performance
25 was determined by reference to revenue 
based on the company’s performance for 2007 08 the plan made a payment of 
4805 of maximum entitlement 
in respect of 80 of the bonus potential the same financial measures will be used for 
200809 weighted as follows
30 determined by reference to cash flow after interest and capital expenditure 
50 determined by reference to ebitda 
20 determined by reference to revenue 
longterm incentives
performance shares
the company operates the thus group performance share plan under which an 
award of shares can be granted at the discretion of the committee to executive 
directors and selected senior executives grants made during a year will only become 
exercisable after three years if demanding performance targets set by the committee 
are met 
the two performance criteria which apply to the vesting of performance share awards 
are group ebitda in respect of 50 of an award and group ebit return on capital 
employed with respect to the remaining 50 performance is measured against targets 
set with reference to internal forecasts and the extent to which they are satisfied is 
confirmed by the committee 
calculations are made internally on the same basis as reported in the financial 
statements and are verified by the auditors
the two performance criteria are recognised both internally and by analysts as key 
measures of the success of the fixed line telecommunications business model and the 
drivers of shareholder value and as such are recognised by the participants and 
we believe following the support of shareholders in 2006 by shareholders as being 
directly linked to the success of the business 
it is currently anticipated that awards to executive directors in 200809 will be made 
over shares worth 100 of salary
the performance conditions will require annual compound growth in ebitda of 
between 12 to 25 over three years and ebit return on capital for the final year in 
the performance period to be between 5 and 10 30 of the respective part of the 
award will vest for threshold performance these performance ranges are considered 
to be appropriately stretching taking into account the outlook for the business for the 
ebitda condition it is recognised that the numbers are lower than for prior years’ 
ranges however as they are referenced off higher base figures they represent a clear 
progression on the ranges set in previous years furthermore they remain relatively high 
by market standards conversely the ebit return on capital range is higher than prior 
years’ awards overall the ranges are considered to be equally challenging to those 
set in prior years
matching shares
under the coinvestment plan executive directors are allowed to invest up to a 
maximum of 25 of their base salary in company shares the offer is typically made 
to them each year shortly after bonuses are declared this means that executive 
directors can use their net bonus to acquire shares at market price although there is 
no direct link to the bonus paid provided that the executive director continues to hold 
these shares for three years the company makes an award of matching shares the 
minimum level of match is one share for every two the individual acquires the level of 
match can increase up to a maximum of four shares for every two shares the individual 
acquires dependent on performance against the same performance targets that apply 
for awards under the performance share plan participation in the plan has been 
extended to selected senior executives below board level
the rules of the various longterm incentive plans provide that the aggregate of all 
sharebased awards does not exceed the guidelines laid down by the association 
of british insurers that recommend i that the number of awards granted over new 
issue shares in respect of all sharebased schemes should not exceed 10 of the 
current issued share capital in any rolling tenyear period and ii that the number of 
awards granted over new issue shares in respect of discretionary schemes should not 
exceed 5 of the current issued share capital in the same period as at 31 march 
the percentage of share capital used in relation to these two limits was nil all awards 
granted to date have utilised shares held within the employee share trust
thus group plc annual report 2008

32 pension and other benefits
pension benefits are provided under the thus group plc pension scheme this scheme 
is a contributory definedbenefit scheme that provides 160th of final pensionable 
salary from age 60 for each year of pensionable service up to 31 march 2007 and 
175th of final pensionable salary from age 65 for each year of pensionable service 
after 31 march 2007  final pensionable salary is defined as the highest pensionable 
salary averaged over any 12month period in the last five years of membership or the 
highest threeyear average in the last 10 years if higher pensionable salary is defined 
as basic salary only
in line with market practice a cash supplement is provided for executive directors who 
continue to participate in thus’ pension arrangements to provide a market competitive 
level of pension benefit overall
executive directors are eligible for a range of benefits the value of which is contained 
within the directors’ emoluments table on page 34 these include the provision of 
a company car or car allowance fuel private medical life permanent health and 
critical illness insurances
service contracts
reflecting current market practice the executive directors have service contracts that 
are terminable on one year’s notice by either the individual or the company it is not 
the committee’s intention to appoint any new executive directors with contracts that 
provide for a longer notice period
the committee endorses the principle of mitigation of loss on early termination of a 
service contract and generally seeks to achieve that objective where possible and 
appropriate 
in the event that thus wished to terminate an executive director’s contract other than in 
circumstances where the company is entitled to summarily dismiss an executive director 
it would need to either give 12 months’ notice or make a payment in lieu of twelve 
months’ worth of salary and benefits including pension
there are no special provisions which apply in the event of a change of control
the dates terms and notice periods of the service contracts for executive directors  
are as follows
  date of initial
 commencement appointment  normal
 date of current with thus plc  retirement
 term of office if applicable notice period date
william allan 010404 221099 12 months 290416
john maguire 010404 181200 12 months 07 07 28
philip male 010404 221099 12 months 130929
share ownership guidelines
formal guidelines provide that executive directors should retain at least 25 of the 
aftertax gain arising from any awards vesting pursuant to the company’s share 
incentive plans until such time as a shareholding equivalent in value to one times basic 
salary has been achieved the committee reviews the guidelines not less than every 
two years including updating to reflect any changes in share price and salary
policy on outside directorships
currently no executive director holds any outside directorship the nomination 
committee will consider the appropriate policy at such time as a request is made  
by an executive director
chairman and nonexecutive directors
the appointment of the chairman and nonexecutive directors is subject to the 
articles of association of the company in particular the usual provisions relating to 
reelection by shareholders the chairman and nonexecutive directors have letters 
of appointment which are available at wwwthusnet they were all appointed for an 
initial term of three years terminable at the request of the board which may be renewed 
for a further period subject to approval by the board current terms of office began on 
the following dates 
   date of initial
  commencement   appointment
  date of current  with thus plc end of
  term of office  if applicable current term
philip rogerson chairman  010904  310810
ian chippendale  1 10102 151099 141008
jo connell resigned from board  1 10102 010101 311207 
rick medlock  07 1 106  061 109
martin beesley resigned from board  221 106  250607
alison wood appointed to board  011 107  311010 
the remuneration of the chairman is determined by the remuneration committee  
the fees of the nonexecutive directors are determined by the board full details of the 
remuneration of the directors are contained in the directors’ emoluments table on page 
34 with effect from 1 april 2008 the chairman’s fees were increased to £100000 
per annum and the fees of the nonexecutive directors were increased to £35000 
per annum with an additional fee of £5500 per annum payable to the chairman 
of the audit committee an additional fee of £2750 per annum payable to the 
chairman of the remuneration committee and an additional fee of £2750 per annum 
payable to the senior independent nonexecutive director the chairman and non
executive directors are not entitled to compensation on early termination of their term  
of office no individuals are involved in the determination of their own remuneration
performance graph
legislation introduced by the government requires this report to contain a graph 
showing the performance of the company compared with a ‘broad equity market 
index’ over a fiveyear period the committee has chosen the ftse allshare 
telecommunications index of which thus is a constituent this index was chosen 
because it shows the performance of the company relative to its industry peer group 
and is therefore particularly relevant to shareholders
400
350
300
200
100
250
150
50
0
 march 2003 march 2004 march 2005 march 2006 march 2007 march 2008
thus group plc
ftse allshare telecommunications index
this graph shows the value by 31 march 2008 of £100 invested in thus group plc on  
31 march 2003 compared with the value of £100 invested in the ftse allshare 
telecommunications index the other points plotted are the values at intervening financial yearends
total shareholder return source thomson financial

33
thus group plc annual report 2008 corporate governance
directors’ remuneration report – continued
directors’ emoluments
the following table provides a breakdown of the total emoluments of the directors of the company in office during the year ended 31 march 2008 the information and 
explanatory notes on pages 34 directors’ emoluments table to 36 directors’ interests in ordinary sharesentitlements to shares has been audited by the company’s auditors in 
line with the relevant legislation 
     compensation
 basic  benefits supplementary for loss total total
 salaryfees bonuses in kind allowances of office 2008 2007
 £ £ £  £ £  £  £
executive directors
william allan 435120 209075 21147 77 016 – 742358 886697
john maguire 310800 126938 17 454 36674 – 491866 577 715
philip male 310800 126938 20645 36674 – 495057 580148
nonexecutive directors fees and expenses
philip rogerson 95000 – – – – 95000 80000
ian chippendale 38000 – – – – 38000 30000
jo connell resigned 311207 24750 – – – – 24750 30000
rick medlock 38000 – – – – 38000 12000
alison wood appointed 011 107 13750 – – – – 13750 –
michael de karesilver resigned 080906 – – – – – – 13167
total 1266220 462951 59246 150364 – 1938781 2209727
i benefits in kind include car allowance in lieu of company car health care life assurance critical illness insurance and permanent health insurance
ii the supplementary allowance paid to the executive directors is in lieu of either formal pension provision or pension benefits above a notional inland revenue earnings cap 
as appropriate
iii aggregate emoluments in respect of qualifying services amounted to £1938781 2007 £2209727 
the emoluments of the highest paid director william allan including gains on the exercise of entitlements to shares and share options but excluding pension contributions are 
£742358 2007 £918518 pension contributions made by the company under approved pension arrangements for william allan amounted to £18155 2007 £16833 
directors’ pension benefits
an overview of the pension benefits provided to all executive directors is set out in the policy section earlier
details of pension benefits earned by the executive directors during the year ended 31 march 2008 are shown below
  increase in increase in transfer transfer transfer increase  
  accrued accrued value value value decrease in  
 accrued benefits  benefits of a less of accrued  of accrued transfer value  
 benefits at excluding  including directors’ benefits at benefits at less directors’
 31 march 2008 inflation a inflation contributions 31 march 2007 31 march 2008 contributions 
defined benefit pension scheme as at 31 march 2008 £ £ £ £ £ £ £
william allan 46745 5669 7 249 62905 545744 566140 14756
john maguire 31294 4047 5095 17 268 187 769 177 140 16269
philip male 34271 4043 5206 15927 195533 18281 1 18362
i  the pension entitlement shown is that which would be paid annually on retirement based on service to the end of the year or end of service assuming benefits are taken at 
the normal retirement ages shown above members of the scheme have the option to pay additional voluntary contributions neither the contributions nor the resulting benefits 
are included in the above table
ii the executive directors are subject to the earnings cap introduced in the finance act 1989 in respect of pensionable service before 1 august 2002
iii the increase in accrued pension during the year allows for an increase in inflation of rpi as measured at 40
iv  the transfer value has been calculated on the basis of actuarial advice in accordance with actuarial guidance note gn1 1 the transfer value represents a liability of the 
pension scheme not a sum due to or paid to the director
thus group plc annual report 2008

34 directors’ interests in shares and share options
           market price
           at date date  
 at 1 april    at 31 march date date   exercise price of exercise from which
executive director 2007 granted exercised lapsed 2008 granted exercised  £ £ exercisable expiry date
thus plc discretionary executive share option scheme
 1
         
william allan 135449 – – – 135449 may04 – 258 – may07 may1 1
john maguire 63334 – – 63334 – dec00 – 7 20 – dec03 dec07
 96749 – – – 96749 may04 – 258 – may07 may1 1
philip male 96749 – – – 96749 may04 – 258 – may07 may1 1
           
thus group performance share plan
 2
           
william allan 135449 – – 135449 – may04 – £1 total consideration – may07 may07
 – 239933 – – 239933 jun07 – £1 total consideration – jun10 jun10
john maguire 96749 – – 96749 – may04 – £1 total consideration – may07 may07
 – 171381 – – 171381 jun07 – £1 total consideration – jun10 jun10
philip male 96749 – – 96749 – may04 – £1 total consideration – may07 may07
 – 171381 – – 171381 jun07 – £1 total consideration – jun10 jun10
thus group plc coinvestment plan
 3
          
william allan 1 18380 – – – 118380 sep06 – £nil consideration – sep09 sep09
 – 64815 – – 64815 jun07 – £nil consideration – jun10 jun10
 – 33801 – – 33801 dec07 – £nil consideration – dec10 dec10
john maguire 53232 – – – 53232 sep06 – £nil consideration – sep09 sep09
 – 36921 – – 36921 jun07 – £nil consideration – jun10 jun10
 – 22143 – – 22143 dec07 – £nil consideration – dec10 dec10
philip male 84468 – – – 84468 sep06 – £nil consideration – sep09 sep09
 – 42663 – – 42663 jun07 – £nil consideration – jun10 jun10
 – 22731 – – 22731 dec07 – £nil consideration – dec10 dec10
thus group plc sharesave scheme
4
          
john maguire 1998 – – 1998 – jun04 – 215 – aug07 jan08
 1584 – – – 1584 jun05 – 110 – aug08 jan09
 – 2226 – – 2226 jun07 – 153 – aug10 jan1 1
philip male 1998 – – 1998 – jun04 – 215 – aug07 jan08 
 1584 – – – 1584 jun05 – 110 – aug08 jan09
the exercise prices above except the nominal exercise prices applicable to grants 
under the thus group performance share plan have been appropriately adjusted 
following the 10 to 1 consolidation of ordinary shares the number of shares and 
share options has also been adjusted accordingly
the aggregate of the gains made by the executive directors on the exercise of share 
options during the year was £nil 2007 £80796
1  exercise of options is subject to a total shareholder return tsr performance 
condition measuring the company’s tsr against two comparator groups for 
two thirds of the award the comparator group is the companies comprising the 
ftse telecoms sector for the remaining one third of the award the comparator 
group is the companies comprising the ftse 250 index excluding telecoms 
companies and investment trusts in both cases 50 of options are exercisable 
for median tsr performance rising on a straightline basis so that 100 of 
options are exercisable for upper quartile performance if performance conditions 
have not been met in full after three years there are two opportunities to retest 
performance from the same base measurement point after four and five years
2  awards granted under the performance share plan for the year ended 31 march 
2008 are subject to the following performance conditions measured over a fixed 
period of three financial years beginning in the financial year in which an award 
is made
  50 of an award is subject to ebitda growth of 15 to 35 per annum 
compound the remaining 50 is subject to ebit return on capital of 4 to 8 
for the final year of the performance period in both cases 30 of that part of the 
award vests at the threshold increasing on a straightline basis so that there is full 
vesting at the maximum threshold
3  for awards made under the coinvestment plan the minimum level of match is one 
share for every two purchased irrespective of performance additional matching 
shares vest from the one for two level up to a maximum of three for two subject 
to a range of ebitda and ebit return on capital targets
  awards granted for the year ended 31 march 2008 are subject to the same 
performance criteria as apply to the awards of performance shares set out in 
footnote 2 for awards granted for the year ended 31 march 2007 the ebitda 
growth range is 20 to 35 the ebit return on capital range is the same as set 
out in footnote 2
4  as required by the relevant legislation no performance conditions apply to 
options under the sharesave scheme
the market price of a share at 31 march 2008 was 1 19p and the range during the 
year ended 31 march 2008 was 107p to 200p the figures relating to events prior to 
10 march 2006 have been restated to reflect the consolidation of the ordinary shares 
of 25p each into 25p shares that took place on that date
no terms of any awards were varied during this year

35
thus group plc annual report 2008 directors’ interests in ordinary sharesentitlements to shares
the interests of the directors in office at the end of the year in the shares of thus 
group plc at the beginning of the year or date of appointment if later and at the end 
of the year were as follows
   ordinary ordinary  
   shares  shares  
   31 march 2008 1 april 2007
chairman and executive directors
philip rogerson   31470 16470
william allan   153385 78 921
john maguire   83583 35488
philip male   99 911 56315
nonexecutive directors   
ian chippendale   5322 5322
rick medlock    11 782 –
alison wood appointed 011 107   8000 –
as potential beneficiaries under the employee share trust the executive directors are 
deemed to be interested in the shares held by the trust which as at 31 march 2008 
amounted to 1629985 ordinary shares
no changes took place to the interests of the directors between 31 march 2008 and 
20 may 2008
approved by the board on 20 may 2008 and signed on its behalf by
ian chippendale
chairman of the remuneration committee
corporate governance
directors’ remuneration report – continued
thus group plc annual report 2008

36 financial statements
independent auditors’ report to the members of thus group plc
we have audited the group and parent company financial statements the 
’financial statements’ of thus group plc for the year ended 31 march 2008 
which comprise the consolidated income statement the consolidated statement of 
recognised income and expense the group and parent company balance sheets 
the consolidated and parent company statement of cash flows and the related notes 
these financial statements have been prepared under the accounting policies set out 
therein we have also audited the information in the directors’ remuneration report 
that is described as having been audited 
this report is made solely to the company’s members as a body in accordance with 
section 235 of the companies act 1985 our audit work has been undertaken so 
that we might state to the company’s members those matters we are required to state 
to them in an auditor’s report and for no other purpose to the fullest extent permitted 
by law we do not accept or assume responsibility to anyone other than the company 
and the company’s members as a body for our audit work for this report or for the 
opinions we have formed
respective responsibilities of directors and auditors
the directors’ responsibilities for preparing the annual report the directors’ 
remuneration report and the financial statements in accordance with applicable law 
and international financial reporting standards ifrss as adopted by the eu are set 
out in the statement of directors’ responsibilities on page 31
our responsibility is to audit the financial statements and the part of the directors’ 
remuneration report to be audited in accordance with relevant legal and regulatory 
requirements and international standards on auditing uk and ireland
we report to you our opinion as to whether the financial statements give a true 
and fair view and whether the financial statements and the part of the directors’ 
remuneration report to be audited have been properly prepared in accordance  
with the companies act 1985 and as regards the group financial statements article 
4 of the ias regulation we also report to you whether in our opinion the information 
given in the directors’ report is consistent with the financial statements 
in addition we report to you if in our opinion the company has not kept proper 
accounting records if we have not received all the information and explanations 
we require for our audit or if information specified by law regarding directors’ 
remuneration and other transactions is not disclosed 
we review whether the corporate governance statement reflects the company’s 
compliance with the nine provisions of the 2006 combined code specified for our 
review by the listing rules of the financial services authority and we report if it does 
not we are not required to consider whether the board’s statements on internal control 
cover all risks and controls or form an opinion on the effectiveness of the group’s 
corporate governance procedures or its risk and control procedures
we read the other information contained in the annual report and consider  
whether it is consistent with the audited 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 audit opinion
we conducted our audit in accordance with international standards on auditing  
uk and ireland issued by the auditing practices board an audit includes examination 
on a test basis of evidence relevant to the amounts and disclosures in the financial 
statements and the part of the directors’ remuneration report to be audited 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 and the part of 
the directors’ remuneration report to be audited are free from material misstatement 
whether caused by fraud or other irregularity or error in forming our opinion we also 
evaluated the overall adequacy of the presentation of information in the financial 
statements and the part of the directors’ remuneration report to be audited
opinion
in our opinion
the group financial statements give a true and fair view in accordance with ifrss  
as adopted by the eu of the state of the group’s affairs as at 31 march 2008 and 
of its loss for the year then ended 
the parent company financial statements give a true and fair view in accordance  
with ifrss as adopted by the eu as applied in accordance with the provisions of 
the companies act 1985 of the state of the parent company’s affairs as at  
31 march 2008
the financial statements and the part of the directors’ remuneration report to  
be audited have been properly prepared in accordance with the companies 
act 1985 and as regards the group financial statements article 4 of the ias 
regulation and
the information given in the directors’ report is consistent with the financial  
statements
kpmg audit plc 
chartered accountants  8 salisbury square 
registered auditor  london 
 ec4y 8bb
20 may 2008

37
thus group plc annual report 2008 financial statements
consolidated income statement 
for the year ended 31 march 2008
    2008 2007
 notes    £’000  £’000
continuing operations
revenue  4    576200  532693 
cost of sales  8 11    480637 442986
gross profit     95563  89707
selling and distribution expenses 8    26793  27 1 1 4
administrative expenses 8 11    66707  7 61 82
other operating income  7    1927   2479 
operating profitloss before restructuring costs    3990 9540
restructuring costs 8   –  1570
operating profitloss 6   3990    1 1  1 1 0
financial income 12    6512   5451 
financial expenses 12    13276  9426
net financing expenses  12     6764   3975
loss before income tax       2774 15085
income tax expensecredit  13    3416  69599 
lossprofit from continuing operations      6190  54514 
discontinued operations 
profit from discontinued operations net of tax  5    1986   29414 
lossprofit for the year attributable to the equity holders of the parent  28    4204  83928 
earnings per share 
basic lossearnings per share pence  14    231  4663 
diluted lossearnings per share pence  14    231  461 6 
continuing operations
basic lossearnings per share pence  14    340  3029 
diluted lossearnings per share pence  14    340  29 98 
the notes on pages 42 to 67 form an integral part of these consolidated financial statements   
thus group plc annual report 2008

38 financial statements
consolidated statement of recognised income and expense
for the year ended 31 march 2008
     group
   –––––––––––––––––––––––––––––––
    2008 2007
 notes    £’000  £’000
foreign exchange translation differences  28   –  15
actuarial gains on defined benefit pension plan  28   2757  2978 
income tax on income and expense recognised directly in equity  26 28    772 893
net income and expense recognised directly in equity    1985  2070 
lossprofit for the year     4204 83928
total recognised income and expense for the year attributable to the equity holders of the parent     2219  85998
movements in equity for the group are disclosed in note 28 to the consolidated financial statements
the parent company loss for the year is £594000 2007 profit £141000 no income or expense has been recognised directly in equity for either 31 march 2008 or  
31 march 2007 
the notes on pages 42 to 67 form an integral part of these consolidated financial statements

39
thus group plc annual report 2008 financial statements
group and parent company balance sheets
as at 31 march 2008
   group  company
  –––––––––––––––––––––––––––––– –––––––––––––––––––––––––––––
  2008 2007   2008   2007 
 notes  £’000   £’000   £’000   £’000
assets       
noncurrent assets       
property plant and equipment  15  386210 381 334 – –
intangible assets  16 58738 67577 –  –
investments  17  – –  56963   56963 
retirement benefit obligations  31 377 4   805   –  –
deferred tax assets 26 56384 60643  –  –
trade and other receivables  19  –  –  70188   78095 
total noncurrent assets    505106   510359  127 151   135058
current assets 
inventories  18 8615   4213  –  –
trade and other receivables  19  119 559   108481   –  –
cash and cash equivalents  20  71643   31724  87  87 
total current assets   199817  144418   87   87 
total assets   704923   654777   127 238   1 351 45 
liabilities 
current liabilities 
interestbearing loans and borrowings  23  230  651 1  –  –
trade and other payables  21  140548  123533  228   241
current tax liabilities  22 –  537  –  –
provisions  25  551   1534  –  –
total current liabilities    141329  1321 15  228  241 
noncurrent liabilities 
interestbearing loans and borrowings  23  101923  49871  –  –
provisions  25  470  1572  –  –
total noncurrent liabilities    102393  51443  –  –
total liabilities    243722  183558  228   241
net assets    461201   471219  127 010   134904 
equity 
issued capital  27 45758 45758   45758   45758 
shares to be issued reserve  28 –  7 300   –   7 300 
share premium account  28 39001  39001   39001  3900 1 
merger reserve  28  586556   586556  19996   19996 
capital redemption reserve  28  23248   23248 23248   23248 
other reserves  28  –  – – –
cumulative loss reserve  28 233362  230644  993 399
total equity attributable to the equity holders of the parent  28  461201   471219   127 010   134 904
the notes on pages 42 to 67 form an integral part of these consolidated financial statements
approved by the board on 20 may 2008 and signed on its behalf by
william allan john maguire
chief executive chief financial officer
thus group plc annual report 2008

40    group  company
  –––––––––––––––––––––––––––––– –––––––––––––––––––––––––––––
  2008 2007   2008   2007 
 notes  £’000   £’000   £’000   £’000
cash flows from operating activities 
lossprofit for the year    4204  83928  594  141
adjustments for 
depreciation and impairment  11  51120   48645  – –
amortisation and impairment  16  1909   3758  –  –
financial income  12c  6541  5459 – –
financial expenses  12c  13430   9426  5 –
movement relating to defined benefit pension scheme    351   1917   –  –
equity settled sharebased payment expenses  33  478   1164  – –
taxation  13  3416   69599 64 –
gain on sale of property plant and equipment   364 – – –
gain on sale of discontinued operations net of tax  4a 2 111  29032 – –
cash inflowoutflow before changes in working capital and provisions    57 484   44748  525 141
increasedecrease in trade and other receivables    10955  7 915  607  21 96
increase in inventories   4402  404 – –
increasedecrease in trade and other payables    13812   6091 13 2337
decrease in provisions   2086  7 209 – –
cash generated from operations    53853   38959   69 –
income tax receivedpaid    71   321 64 –
additional contribution to defined benefit pension scheme fund  31b –  7 500 – –
net cash from operating activities    53924   31138  5 –
cash flows from investing activities 
disposal of discontinued operations net of cash disposed of  5 5 11  41466  – –
income tax receivedpaid from disposal of discontinued operations 5 1559 9500 – –
interest received    1096   1385  – –
proceeds from the sale of property plant and equipment    424  – – –
acquisition of subsidiary net of cash acquired    –   3431 –  –
acquisition of property plant and equipment    55417  51949 – –
acquisition of intangible assets    210   974 – –
net cash used in investing activities    52037  23003 – –
cash flows from financing activities 
receipts from exercise of share options    230   419  – –
issue costs paid during the year    –   1564 – –
purchase of treasury shares    1207 – – –
proceeds from borrowings    100000  – – –
repayment of borrowings    53242  32472 – –
payment of expenses in connection with borrowings    1605  769 – –
payment of finance lease liabilities    349  324 – –
interest paid   5395  5358 5 –
net cash fromused in financing activities    38432   40068 5 –
net increasedecrease in cash and cash equivalents    40319   31933 – –
cash and cash equivalents at the start of the year    31324   63257   87   87 
cash and cash equivalents at the end of the year  20  71643   31324   87   87 
the notes on pages 42 to 67 form an integral part of these consolidated financial statements
financial statements
consolidated and parent company statement of cash flows
for the year ended 31 march 2008 

41
thus group plc annual report 2008 financial statements
notes to the consolidated and parent company financial statements
for the year ended 31 march 2008
1 reporting entity 
thus group plc is a company domiciled in the united kingdom the address of the 
company’s registered office is 12 berkeley square 99 berkeley street glasgow 
g3 7hr the consolidated financial statements of the company for the year ended 
31 march 2008 comprise the company and its subsidiaries together referred to as 
the ’group’ the parent company financial statements present information about 
the company as a separate entity and not about its group the group is primarily 
involved in the provision of telecommunication services
2 basis of preparation
a statement of compliance 
both the consolidated financial statements and the parent company financial 
statements have been prepared and approved by the directors in accordance with 
international financial reporting standards ifrss as adopted by the european union 
eu ’adopted ifrss’
on publishing the parent company financial statements here together with the 
consolidated financial statements the parent company is taking advantage of the 
exemption in section 230 of the companies act 1985 not to present its individual 
income statement and related notes that form a part of these approved financial 
statements 
the financial statements were authorised for issue by the directors on 20 may 2008
b basis of measurement
the financial information has been prepared in accordance with ifrss as adopted by 
the eu ’adopted ifrss’
the financial information is prepared on the historical cost basis
c functional and presentation currency
these consolidated financial statements are presented in pounds sterling which is the 
group and company’s functional currency the financial information is presented in 
pounds sterling rounded to the nearest thousand
d use of estimates and judgements
the preparation of the financial information in conformity with ifrss as adopted by the 
eu requires the directors to make judgements estimates and assumptions that affect 
the application of policies and reported amounts of assets and liabilities income 
and expenses the estimates and associated assumptions are based on historical 
experience and various other factors that are believed to be reasonable under the 
circumstances the results of which form the basis of making the judgements about 
carrying values of assets and liabilities that are not readily apparent from other sources 
actual results may differ from these estimates
the estimates and underlying assumptions are reviewed on an ongoing basis revisions 
to accounting estimates are recognised in the period in which the estimate is revised if 
the revision only affects that period or in the period of revision and future periods if the 
revision affects both current and future periods
judgements made by management in the application of ifrss that have a significant effect 
on the financial statements and estimates with a significant risk of material adjustment in the 
next year are disclosed in note 36 to the consolidated financial statements
3 significant accounting policies
the accounting policies set out below have been applied consistently to all periods 
presented in these consolidated financial statements and parent company financial 
statements
basis of consolidation
the consolidated financial statements include the financial statements of the 
company and the entities controlled by the group control exists when the company 
has the power directly or indirectly to govern the financial and operating policies of 
an entity so as to obtain benefits from its activities in assessing control potential voting 
rights that presently are exercisable or convertible are taken into account the financial 
statements of subsidiaries are included in the consolidated financial statements from 
the date that control commences until the date that control ceases
all intragroup transactions balances income and expenses are eliminated on 
consolidation
prior year adjustment
the company has adopted the requirements of ifric 8 ‘scope of ifrs 2’ and 
ifric 1 1 ‘ifrs 2 – group and treasury share transactions‘ for the first time in these 
financial statements this change in accounting policy has had no impact on the 
income statement and balance sheet of the company for the reasons set out in  
notes 17 and 28b to the consolidated financial statements
revenue 
revenue represents the value of goods and services supplied to customers during the 
year net of value added tax the group’s revenue comprises revenue from voice 
telephony services data services internet services mobile services and managed 
solutions of a variety of telecommunication services revenue recognition occurs when 
persuasive evidence of an arrangement exists delivery has occurred the fee is fixed 
and determinable and collectability is probable
voice telephony services
revenue from voice telephony services comprises call charges and associated line 
rentals to customers connected directly to the thus network indirectly connected 
customers customers utilising ’carrier preselect’ services voice over internet protocol 
voip and wholesale customers call charges comprise charges for geographical and 
nongeographical numbers revenue for call charges is recognised when the service 
is provided rental charges are recognised on a straightline basis over the length of the 
supply contract
data services
data services comprise installation and provision of ongoing data supply products 
including leased lines virtual private networks ethernet services and provision of 
open fibre services installation charges are recognised where there is a contractually 
identified installation charge reflecting the arm’s length value of the cost of the 
installation and the fair value of the work done in limited cases installation work 
straddles an accounting period end whilst such contracts do not meet the definition 
of construction contracts under ias 1 1 ’construction contracts’ ias 1 1 where the 
outcome of the contract and stage of completion can be assessed reliably sales and 
cost of sales are recognised using the percentage completion method in accordance 
with ias 18 ’revenue’ ias 18 completion is generally measured by reference to 
costs incurred to date as a percentage of estimated total installation costs connection 
fees are recognised on commencement of a customer contract only where incremental 
costs are incurred in connection all other connection fees are recognised over the life 
of the customer contract rental charges are recognised on a straightline basis over the 
length of the supply contract 
internet services
revenue from internet services comprises monthly access fees for business access 
services including the provision of leased lines and ecommerce services revenue 
from wholesale internet services provided to virtual internet service providers 
access fees paid by internet subscribers and ingress receipts installation revenue 
is recognised for the design and building of bespoke solutions reflecting the arm’s 
length value of the goods supplied in limited cases installation work straddles an 
accounting period end whilst such contracts do not meet the definition of construction 
contracts under ias 1 1 where the outcome of the contract and stage of completion 
can be assessed reliably sales and cost of sales are recognised using the percentage 
completion method in accordance with ias 18 completion is generally measured by 
reference to costs incurred to date as a percentage of estimated total installation costs 
connection fees are recognised on commencement of a customer contract only where 
incremental costs are incurred in connection all other connection fees are recognised 
over the life of the customer contract rental revenue is recognised on a straightline 
basis over the contract term
mobile services
mobile revenue comprises revenue from the provision of the supply of airtime for 
mobile communications equipment and the provision of such equipment revenue for 
airtime is recognised when the service is provided
managed solutions
managed solutions revenue comprises revenue from the provision of voice telephony 
data and internet services as part of bespoke contractual arrangements installation 
revenue is recognised for the design and building of bespoke solutions reflecting the 
arm’s length value of the goods supplied in limited cases installation work straddles an 
accounting period end whilst such contracts do not meet the definition of construction 
contracts under ias 1 1 where the outcome of the contract and stage of completion 
can be assessed reliably sales and cost of sales are recognised using the percentage 
completion method in accordance with ias 18 completion is generally measured by 
reference to costs incurred to date as a percentage of estimated total installation costs 
connection fees are recognised on commencement of a customer contract only where 
incremental costs are incurred in connection all other connection fees are recognised 
over the life of the customer contract rental revenue is recognised on a straightline 
basis over the contract term
indefeasible rights of use ’iru’ sales
as part of its service offering the group and company periodically sell dark fibre to 
other network operators seeking to extend their own networks under iru agreements 
these agreements extend for all of the assets’ expected useful lives and transfer 
substantially all of the risks and benefits of ownership to the buyer in a number of 
cases the group and company have acquired dark fibre under iru agreements from 
the same counterparties in order to complete its own network
the profit on iru sales is shown in the financial statements as a gain on the disposal 
of fixed assets   
other operating income
rents received from the sublet of properties unoccupied by the group but for which 
a commitment remains are recognised in the consolidated income statement on a 
straightline basis over the sublease term
cost definitions
the group and company’s costs comprise of cost of sales selling and distribution and 
administrative expenses 
thus group plc annual report 2008

42 3 significant accounting policies – continued
cost of sales
cost of sales consists of costs directly attributable to each type of revenue stream and 
includes interconnect costs for telephony charges rental of data capacity and costs of 
equipment installed for customers other costs comprise expenditure on fixed network 
infrastructure operational properties and network depreciation together with the 
salaries and associated costs of the network maintenance function 
selling distribution and administrative expenses
selling and distribution expenses comprise expenditure on marketing advertising 
and promotions together with the salaries and associated costs of the sales and 
marketing function administrative expenses comprise expenditure on customer services 
human resources information technology legal and regulatory compliance finance 
department costs and nonoperational property together with depreciation of non
network assets
segment reporting
a segment is a distinguishable component of the group that is engaged either in 
providing products or services business segment or in providing products or services 
within a particular economic environment geographical segment which is subject to 
risks and rewards that are different from those of other segments
segment results assets and liabilities include items directly attributable to a segment as 
well as those that can be allocated on a reasonable basis unallocated items comprise 
mainly network assets and depreciation that relate to services provided by different 
business segments interestbearing loans borrowings and corporate expenses
shortterm employee benefits
shortterm employee benefits include entitlement to corporate bonus provision of 
company car and private medical insurance liabilities for company cars and private 
medical insurance are expensed as incurred provision for bonus awards is recognised 
for amounts expected to be paid where the group has a present legal or constructive 
obligation to pay this as a result of past service provided by the employee and the 
amounts concerned can be reliably estimated
financial income and expenses
financial income comprises of interest income on funds invested and assumed returns 
on pension assets on longterm actuarial assumptions
financial expenses are recognised in the consolidated income statement using the 
effective interest method interest on finance leases is recognised on a straightline 
method over the life of the lease
financial expenses also include costs relating to the secured bank loans comprising 
commitment fees legal fees connected to loan documentation and other related 
expenses the costs are released to the consolidated income statement on a straightline 
basis over the term of the loan in the event of the loan being repaid earlier or replaced 
the remaining costs are immediately charged to the consolidated income statement
changes in the fair value of the derivatives used for hedging purposes are also 
recognised as either financial income or financial expenses
taxation
income tax comprises current and deferred tax income tax is recognised in the 
consolidated income statement except to the extent that it relates to items recognised 
directly in equity in which case it is recognised in equity
current tax is the expected tax payable on the taxable income for the year using tax 
rates enacted or substantively enacted at the balance sheet date and any adjustment 
to tax payable in respect of previous years
deferred tax is recognised using the balance sheet liability method providing for 
temporary differences between the carrying amounts of assets and liabilities for 
financial reporting purposes and the amounts used for taxation purposes the 
amount of deferred tax recognised is based on the expected manner of realisation or 
settlement of the carrying amount of assets and liabilities using tax rates enacted or 
substantively enacted at the balance sheet date a deferred tax asset is recognised 
only to the extent that it is probable that future taxable profits will be available against 
which the asset can be utilised deferred tax assets are reduced to the extent that it is 
no longer probable that the related tax benefit will be realised 
earnings per share
the group discloses basic and diluted earningsloss per share eps figures for its 
ordinary shares and also discloses eps for continuing and discontinued operations 
basic eps is calculated by dividing the profit or loss for the year attributable to the 
equity holders of the parent by the weighted average number of ordinary shares in 
issue during the financial year after taking account of the shares held by the employee 
share trust the shares held by the trust are calculated on a weighted average basis 
diluted eps is calculated on the same basis as the basic eps with an adjustment being 
made to the weighted average number of ordinary shares for the impact of all dilutive 
potential ordinary shares arising from share options granted to employees
intangible assets
goodwill
subject to the transitional relief in ifrs 1 ‘firsttime adoption of international financial 
reporting standards’ ifrs 1 all business combinations are accounted for by applying 
the purchase method goodwill represents amounts arising on acquisition  
of subsidiaries for those business combinations occurring prior to 1 april 2004  
no goodwill is recognised as these business combinations were accounted for using 
merger accounting principles the group has elected to take the exemption allowed 
under ifrs 1 not to restate these business combinations 
goodwill is stated at cost less any accumulated impairment losses goodwill is 
allocated to cash generating units and tested annually for impairment
licence fees
licence fees including those for computer software are stated at cost less accumulated 
amortisation and provision for any impairment in value and amortised on a straightline 
basis over the remaining licence period of between five and ten years once the 
relevant asset to which a licence relates becomes operational and the service is utilised 
or available for use
other intangibles
other intangible assets including customer lists and trade names acquired by the 
group and company are stated at cost less accumulated amortisation and impairment 
losses and are amortised over their estimated useful lives as follows
customer lists 1–15 years 
trade names 5 years 
development 
development expenditure is capitalised as an intangible asset only when the following 
conditions are met – the technical feasibility of completing the asset that the group 
intends to complete the development and use or sell the asset future economic benefits 
are probable and that the costs of development can be reliably measured the 
expenditure capitalised includes the cost of materials direct labour and overhead costs 
that are directly attributable to preparing the asset for its intended use the intangible 
asset is measured at cost less accumulated amortisation
noncurrent assets held for sale and discontinued operations
an asset is classified as held for sale when it has been identified that the asset 
in question is no longer required for continuing use and is therefore available for 
immediate sale and that the sale is highly probable immediately before classification 
as held for sale the measurement of the assets and all assets and liabilities in a 
disposal group is brought up to date in accordance with applicable ifrss then 
on initial classification as held for sale noncurrent assets and disposal groups are 
recognised at the lower of the carrying amount and the fair value less costs to sell
impairment losses on initial classification as held for sale are included in the consolidated 
income statement the same applies to gains and losses on subsequent remeasurement
a discontinued operation is a component of the group’s business that represents a 
separate major line of business or geographical area of operations or is a subsidiary 
acquired exclusively with a view to resale
classification as a discontinued operation occurs upon disposal or when the operation 
meets the criteria to be classified as held for sale if earlier
property plant and equipment
property plant and equipment is stated at historic cost less accumulated depreciation 
and provision for impairments in value the cost of selfconstructed assets includes 
the cost of materials direct labour and other costs which are directly attributable to 
the construction of property plant and equipment depreciation is charged to the 
consolidated income statement using the straightline basis over estimated useful 
lives where parts of an item of property plant and equipment have different useful 
lives they are accounted for as separate items of property plant and equipment 
depreciation rates useful lives and residual values are reassessed at each reporting 
date the estimated useful lives are as set out below
    years
land and leasehold buildings  
alterations to leasehold premises   over lease period or useful life if shorter
plant and equipment 
underground network     40
fibre optic cable and transmission equipment    5 to 20
electronics switching equipment and base stations    5 to 15
customer connections    5 
tools     4 
other assets
fixtures and fittings     10
vehicles     4
personal computers     3 
freehold land is not depreciated 
maintenance repairs and renewals are generally charged to the consolidated 
income statement during the year in which they are incurred major refurbishments and 
renovations are capitalised and included in the carrying amount of the related asset 
when it is probable that future economic benefits in excess of the originally assessed 
standard of performance of the existing asset will flow to the group and company 
major refurbishments and renovations are depreciated over the remaining life of the 
asset
borrowing costs are not capitalised

43
thus group plc annual report 2008 3 significant accounting policies – continued
inventories
inventories are stated at the lower of cost or net realisable value cost is determined 
on a firstinfirstout fifo basis net realisable value is the amount that can be realised 
from the sale of the inventory in the normal course of business after allowing for the 
costs of realisation
an allowance is recorded for inventory obsolescence
trade receivables
trade receivables are initially stated at fair value and subsequently carried at amortised 
cost less an estimate made for impaired trade receivables based upon the periodic 
review of all outstanding amounts
cash and cash equivalents
the group and company manage their shortterm liquidity through holdings of cash 
and highly liquid interestbearing deposits for the purpose of the cash flow statement 
only deposits with a maturity period of three months from the date of acquisition or 
less are shown as cash and cash equivalents bank overdrafts that are repayable 
on demand and that form an integral part of the group and company’s cash 
management are also included as a component of cash and cash equivalents  
for the purpose of the statement of cash flows
trade and other payables
trade and other payables are initially recognised at fair value and are subsequently 
stated at amortised cost
impairment
financial assets
all financial assets are assessed at each reporting date to ascertain if there is any 
evidence that it is impaired a financial asset is considered to be impaired if evidence 
exists indicating that one or more events has had an adverse effect on the estimated 
future cash flows of that asset
individually significant financial assets are tested for impairment on an individual basis 
the remaining financial assets are assessed collectively in groups that share similar 
credit risks
nonfinancial assets
the carrying amount of the group’s nonfinancial assets are reviewed as appropriate at 
each reporting date to determine whether there is any indication of impairment if such 
an indication exists then the assets’ recoverable amount is estimated for goodwill and 
intangible assets that have indefinite lives the recoverable amount is estimated at each 
reporting date
an impairment loss is recognised if the carrying amount of an asset or its cash 
generating unit exceeds its recoverable amount a cash generating unit is the smallest 
identifiable asset group that generates cash inflows that are largely independent from 
other assets and groups the recoverable amount of an asset or cash generating unit  
is the greater of its value in use and its fair value less costs to sell in assessing value  
in use the estimated future cash flows are discounted to their present value using a  
pretax discount rate that reflects the time value of money and the risks specific to the 
asset impairment losses are recognised in the consolidated income statement
an impairment loss in respect of goodwill is not reversed in respect of other assets  
an impairment loss recognised in prior periods is reversed if there has been a change 
in the estimate used to determine the recoverable amount
finance and operating leases
leases in terms of which the group and company assume substantially all the risks 
and rewards of ownership are classified as finance leases assets held under finance 
leases are depreciated in line with the group and company’s depreciation policy or 
where shorter over the term of the relevant lease the interest element of the finance 
lease repayments is charged to the consolidated income statement in proportion to the 
balance of the capital repayments outstanding
rentals payable under operating leases are charged to the consolidated income 
statement on a straightline basis over the lease term
rentfree periods received by the group and company at the inception of new 
operating leases for properties are recognised in the consolidated income statement 
over the period of the lease 
foreign currency
transactions in foreign currencies are translated to the respective functional currency 
at the rate ruling at the date of the transaction monetary assets and liabilities 
denominated in foreign currencies are translated to the functional currency at the rate of 
exchange ruling at the balance sheet date any gain or loss arising on the restatement 
of such balances is taken to the consolidated income statement
the assets and liabilities of the overseas entity are translated at the rate of exchange 
ruling at the balance sheet date the expenses of the overseas entity are translated 
at rates approximating to the foreign exchange rates ruling at the dates of the 
transactions exchange differences arising on retranslation are recognised in the 
consolidated income statement 
pensions
the group and company participate in group pension arrangements consisting of 
both defined contribution and defined benefit plans 
defined contribution plans
contributions to defined contribution pension plans are charged to the consolidated 
income statement in the period in which they are incurred
these contributions are determined as a fixed percentage of the individual employees’ 
relevant salary and the group has no legal or constructive obligation to pay further 
amounts all contributions are paid across to an independent provider
for a small number of employees the group and company pay varying levels 
of contributions to personal pension schemes these costs are charged to the 
consolidated income statement as incurred
defined benefit plans
for defined benefit pension plans pension costs are calculated using the projected 
unit credit method the calculation is performed annually by an independent qualifed 
actuary the pension obligation is measured as the present value of the estimated future 
cash outflows using interest rates on highquality corporate bonds where the terms to 
maturity are comparable with the terms of the related liabilities actuarial gains and 
losses are recognised as incurred on an annual basis outside the consolidated income 
statement and presented in the statement of recognised income and expense in 
accordance with ias 19 ’employee benefits’ ias 19 
borrowings
borrowings are recognised initially at fair value net of transaction costs in subsequent 
periods they are stated at amortised cost and any difference between net proceeds and 
redemption amounts are recognised in the consolidated income statement over the life 
of the borrowings
sharebased payments 
group 
the share option programme allows group and company employees to acquire 
shares of the ultimate parent company thus group plc and these awards are 
granted by thus group plc the fair value of the options granted after 7 november 
2002 and those not yet vested before the date of transition to international financial 
reporting standards is recognised as an employee expense with a corresponding 
increase in equity the fair value is measured at the grant date and spread over the 
period during which the employees become unconditionally entitled to the options 
the fair value of the options granted is measured using a variety of different models 
including the blackscholes model and a binomial lattice model taking into account 
the terms and conditions upon which the options were granted the amount recognised 
as an expense is adjusted to reflect the actual number of share options that expect 
to and do vest except where forfeiture is only due to share prices not achieving the 
threshold for vesting
the group has elected to apply ifrs 2 ’share based payments’ ifrs 2 only to the 
relevant awards that were granted after 7 november 2002 the group has not 
accounted for sharebased payments granted prior to that date
company
sharebased payment awards are granted by the company to employees of the 
company’s wholly owned subsidiary thus plc the fair value of these awards  
is calculated in accordance with the requirements of ifrs 2 as detailed above  
on grant this is treated as an increase in the investment in the subsidiary company  
and recognised over the relevant vesting period in accordance with ifrs 2 there is  
a corresponding increase in equity
sharebased payment awards are satisfied through shares held in the employee 
share trust which is sponsored by the subsidiary thus plc being transferred to thus 
group plc this arrangement is considered an equity settled sharebased payment and 
accounted for as a reduction of the cost of investment and a reduction from own equity 
as own shares are received 
provisions
provision is made where the group and company have a present legal or constructive 
obligation that can be estimated reliably as a result of past events and it is probable 
that an outflow of economic benefit will be required to settle the obligation a provision 
for onerous contracts is recognised when the expected benefits to be derived by the 
group and company from a contract are lower than the unavoidable costs of meeting 
their obligations under the contract
share capital
ordinary shares
ordinary shares are classified as equity costs directly attributable to the issue of 
ordinary shares are recognised as a deduction from equity against an appropriate 
reserve account
treasury shares
own shares purchased by the group are held by an employee share trust which is 
sponsored by thus plc these shares are treated as treasury shares with the total 
cost including transactions costs being recognised as a deduction from equity against 
the cumulative loss reserve account when these treasury shares are subsequently 
transferred by way of settling outstanding share options the amount received is 
recognised as an increase in equity
financial statements
notes to the consolidated and parent company financial statements
for the year ended 31 march 2008
thus group plc annual report 2008

44 3 significant accounting policies – continued
investments in subsidiaries
investments in subsidiaries are stated at cost less any impairment losses
financial instruments
nonderivative financial instruments
nonderivative financial instruments comprise investments in equity trade and other 
receivables cash and cash equivalents trade and other payables and loans and 
other borrowings
derivative financial instruments
the group and company use derivative financial instruments to hedge their exposure 
to interest rate risks arising from financing activities in accordance with its treasury 
policy the group and company do not hold or issue derivative financial instruments 
for trading purposes 
derivative financial instruments are recognised initially at fair value subsequent to initial 
recognition derivative financial instruments are measured at fair value the gain or loss 
on remeasurement to fair value is recognised immediately in the consolidated income 
statement the fair value of interest rate swaps is the estimated amount that the group 
and company would receive or pay to terminate the swap at the balance sheet date 
taking into account market conditions
adopted ifrss not yet applied
a number of new standards amendments to existing standards and interpretations are 
not yet effective for the year ended 31 march 2008 and have not been applied in 
preparing these financial statements
the following standards have been endorsed by the eu and will require to be applied 
in subsequent periods
ifric 14 ‘ias 19 the limit on a defined benefit asset minimum funding requirements 
and their interaction’
ifric 14 clarifies the requirements of ias 19 paragraph 58 which limits the 
measurement of a defined benefit asset to the ‘present value of any economic benefits 
available in the form of refunds from the plan or reductions in future contributions to the 
plan’ plus unrecognised net actuarial losses and past service cost this is known as the 
‘asset ceiling’
the ifric addresses when refunds or reductions in future contributions should be 
regarded as available how a minimum funding requirement might affect the availability 
of reductions in future contributions and when a minimum funding requirement might 
give rise to an additional liability
ifrs 8 ’operating segments’ 
this introduces the management approach to segment reporting ifrs 8 becomes 
mandatory for the group’s 2009 financial statements but is not expected to have any 
significant impact
ifric 13 ’customer loyalty programmes’ 
this ifric will only apply where customer loyalty programmes operate and so will 
have no impact on the group
the following standards and interpretations have not yet been endorsed by the eu but 
may apply in subsequent periods if endorsed
amendments to ias 1 presentation of financial statements a revised presentation 
this standard will require the group and company to present a statement of 
comprehensive income and may require additional disclosures around changes in 
equity
revised ias 23 borrowing costs 
this removes the option to expense borrowing costs and requires that an entity 
capitalise borrowing costs directly attributable to the production of a qualifying asset as 
part of the cost of that asset the revised ias 23 will become mandatory for the group 
and company’s 2009 financial statements but will have no impact as the group and 
company currently do not have any qualifying assets
amendments to ias 32 financial instruments presentation 
the amendments provide exemptions from the requirement to classify as a liability 
financial instruments under which an entity has an unavoidable obligation to deliver 
cash the exemptions apply to two categories only of instruments issued by an entity 
they are
a puttable financial instrument or 
an instrument or components of instruments that impose on the entity an obligation  
to deliver to another party a pro rata share of the net assets of the entity only on 
liquidation
the amendments set out detailed definitions and circumstances that must be met before 
these exemptions are available 
the amendments to ias 32 lead to consequential amendments to ias 1 ifrs 7  
and ifric 2
amendments to ias 27 consolidated and separate financial statements and 
ifrs 3 revised business combinations – these amendments make some changes 
to accounting for business combinations the standard will affect the group and 
company only if they are involved in business combinations in future financial periods
amendment to ifrs 2 sharebased payment – vesting conditions and cancellations
the definition of vesting conditions in ifrs 2 has been amended to clarify that vesting 
conditions are limited to service conditions and performance conditions conditions 
other than service or performance conditions are considered nonvesting conditions
under the amendment nonvesting conditions are taken into account in measuring 
the grant date fair value of the sharebased payment and there is no trueup of 
equitysettled arrangements for differences between expected and actual outcomes 
therefore if all vesting conditions are met then the entity will recognise the grant date 
fair value of the equitysettled sharebased payment as compensation cost even if the 
counterparty does not become entitled to the sharebased payment due to a failure to 
meet a nonvesting condition 
4 segmental reporting   
segment information is presented in the financial statements in respect of the group’s 
business and geographical segments the primary format business segments reflects 
the group’s management and internal reporting structure  
segment results assets and liabilities include items directly attributable to a segment 
as well as those that can be allocated on a reasonable basis segment results include 
depreciation charges on assets directly attributable to a segment unallocated 
expenses comprise overheads that cannot be directly allocated to individual segments 
depreciation and amortisation charges on assets not directly attributable to business 
segments and restructuring costs unallocated assets include network and other 
fixed assets which are used across all business segments and other corporate assets 
unallocated liabilities include interestbearing loans and other corporate liabilities
business segments  
the group’s main business segments are
managed solutions –  the provision of voice telephony data and internet services  
as part of a bespoke contractual arrangement
data and telecoms –  the provision of voice telephony services and data supply 
products
internet –  the provision of services using internetbased products
mobile – the provision of mobile services
geographical segments
the internet segment operated in two principal geographical areas united kingdom 
and europe in europe the group had until june 2006 operations in the netherlands 
that had operational sales marketing and corporate functions 
in presenting information on the basis of geographical segments segment revenue is 
based on the geographical location of customers segment assets are based on the 
geographical location of the assets
a primary segmental reporting
   2008 2007 
business segments  notes £’000 £’000 
segment revenue 
managed solutions    111  199 95049 
data and telecoms    346955 31 2452 
internet    79 533 84726 
mobile    38513 40466 
total segment revenue from continuing operations   576200 532693 
discontinued operations   5 – 3165 
consolidated segment revenue    576200 535858 
segment result 
managed solutions    28663 18917 
data and telecoms    60933 61450 
internet    18431 23141 
mobile    4707 4192 
total segment result from continuing operations   112734 1 07700 
discontinued operations   5 – 374 
consolidated segment result    112734 108074 
unallocated expenses    108744  11 88 10
operating profitloss   3990 10736
net financing expenses   12 c 6889 3967
income tax expensecredit    3416 69599 
gain on sale of discontinued operations net of tax   2 111 29032 
lossprofit for the year   4204 83928 

45
thus group plc annual report 2008 financial statements
notes to the consolidated and parent company financial statements
for the year ended 31 march 2008
4 segmental reporting – continued
a primary segmental reporting – continued
   2008 2007 
business segments   £’000 £’000 
segment assets 
managed solutions    50420 34276 
data and telecoms    133082 123591 
internet    31745 34695 
mobile    23813 25054 
unallocated assets    465863 437 161 
total assets    704923 654777 
segment liabilities     
managed solutions    10840 1 1000
data and telecoms    72482 70753
internet    5717 8671
mobile    6967 7 1 06
unallocated liabilities    147716 86028
total liabilities    243722 183558
  
segment depreciation and amortisation    
managed solutions    3358 1356
data and telecoms    7425 6695
internet    598 550
mobile    376 394  
unallocated depreciation and amortisation   41272 43408 
total depreciation and amortisation    53029 52403 
segment impairment losses
there were no impairment losses in the year 2007 £nil
   2008 2007 
   £’000 £’000 
segment noncash expenses     
managed solutions    92 462 
data and telecoms    142 559 
internet    40 173 
unallocated noncash expenses    555 1887 
total noncash expenses    829 3081 
    
segment capital expenditure including intangible assets  
managed solutions    1 7657 1 1334 
data and telecoms    6807 6980 
internet    – 250 
mobile    70 72
discontinued operations   – 102 
unallocated capital expenditure    31990 40618 
total capital expenditure including intangible assets   56524 59356 
b secondary segmental reporting 
 united kingdom europe consolidated
 –––––––––––––––––––––––––––––– ––––––––––––––––––––––––––– –––––––––––––––––––––––––––––
 2008 2007 2008 2007 2008 2007 
geographical segments  £’000 £’000 £’000 £’000 £’000 £’000
revenue   576200   532693  –  3165   576200   535858 
segment assets   704923  654777  – –  704923   654777 
 
cash flows from operating activities   53924   3181 1  – 673 53924   3 1 1 38 
cash flows from investing activities   54107  54874 2070 31 871 52037  23003
cash flows from financing activities   38432   40068 – –  38432   40068
capital expenditure   56524   59254  –  102   56524   59356
the cash flows attributable to the discontinued business of demon netherlands have been disclosed as europe above
5 discontinued operations 
on 15 june 2006 the group completed the disposal of its operations based  
in the netherlands following the announcement made on 1 february 2006  
the dutch operations represented a separate geographical business area of the  
group and therefore were classified as a discontinued operation for the year ended 
31 march 2007  and were formerly included as part of the internet segment 
the results for the year ended 31 march 2008 represent the finalisation of the tax 
position regarding the prior year disposal 
in the prior year the gross proceeds from the sale of the demon netherlands 
operations to the dutch telecommunications company royal kpn nv amounted to 
£47 million with selling costs of £35 million and £12 million representing the net 
assets disposed of
the table below provides an analysis of the amounts disclosed in the consolidated 
income statement
   2008 2007 
  note £’000 £’000
revenue   – 3165 
cost of sales   – 1971
gross profit   – 1194 
selling and distribution expenses   – 553
administrative expenses   – 267
operating profit   – 374 
    
financial income   29 8 
financial expenses   154 –
net financing expensesincome   125 8 
lossprofit before and after income tax   125 382
gain on sale of discontinued operations   397  42295 
united kingdom income tax expense on gain on  
sale of discontinued operations deferred tax  – 3763
overseas income tax creditexpense on gain on sale  
of discontinued operations   1714  9500
profit from discontinued operations net of tax  1986  29414 
discontinued operations  
basic earnings per share pence  14 109 1634
discontinued operations  
diluted earnings per share pence  14 109 161 8
   2008 2007 
cash flows from discontinued operations   £’000 £’000 
net cash from operating activities   – 673
net cash from investing activities   2070 31871 
net cash from discontinued operations   2070 31198 
thus group plc annual report 2008

46 5 discontinued operations – continued 
    2007 
effect of disposal on the financial position of the group  £’000 
property plant and equipment    1180
inventories    172
trade and other receivables    1717
cash and cash equivalents    2036
trade and other payables    3907 
current tax liabilities    3 
net assets disposed of    1195
    
   2008  2007 
   £’000  £’000 
consideration received satisfied in cash and  
net of disposal costs   5 11 43502
cash disposed of   – 2036 
income tax receivedpaid on gain on sale of  
discontinued operations   1559 9500 
net cash inflow   2070 31  966
6 operating profitloss     
   2008  2007 
  notes £’000  £’000 
operating profitloss is stated after chargingcrediting    
 depreciation and impairment on tangible fixed assets    
– owned assets   1 1 50982 48425 
– under finance leases   1 1  1 5 138 220 
amortisation of intangible fixed assets  
including impairment provision   16 1909 3758 
other operating lease rentals payable    
– property    13097 13661 
– other assets    170 174 
– sublease receipts   7 1563 1844
other operating income – profit on disposal  
of fixed assets   7 364 635
exchange differences    1 3
fees paid to the auditors and their associates during the current and prior year are 
analysed below 
   2008 2007 
   £’000 £’000 
fees payable to the company’s auditor for the audit  
of these financial statements    250 239 
auditrelated regulatory reporting    40 29 
fees payable to the company’s auditor and its associates  
for other services     
audit of the company’s subsidiaries pursuant to legislation  42 40 
other services    10 109 
   342 417 
the work included in other services comprises £10000 for other advisory work 
2007 £5000 for other advisory work and £104000 for work relating to the 
disposal of the discontinued operations 
amounts paid to the company’s auditors in respect of services to the company other 
than the audit of the company’s financial statements have not been disclosed as the 
information is required instead to be disclosed on a consolidated basis 
7 other operating income     
   2008  2007 
  note £’000  £’000 
rents received   6 1563 1844 
profit on disposal of fixed assets   6 364 635 
   1927 2479 
8 restructuring costs     
the group has identified material oneoff or unusual items as detailed below these 
have been shown to provide a more meaningful analysis of the trading results of the 
group and are consistent with the way group management has assessed the financial 
performance for both years
   2008  2007 
   £’000  £’000 
restructuring costs    –  1570 
these costs are recognised in the following categories in the consolidated income 
statement     
cost of sales    – 94 
selling and distribution expenses    – 252 
administrative expenses    – 1224 
   – 1570 
the restructuring costs incurred in the prior year represented additional redundancy 
costs not previously provided for and other costs associated with restructuring the 
group’s operations following the integration of your communications and legend 
communications plc
9  earnings before interest tax depreciation including impairment 
and amortisation ebitda     
   2008  2007 
  notes £’000  £’000 
operating profitloss    3990   11  110
depreciation charge for the year   1 1 51120  48645 
amortisation charge for the year   16 1909  3758 
ebitda    570 1 9  41293 
     
ebitda before restructuring costs is calculated as follows   
operating profitloss    3990   11  110
restructuring costs   8 – 1570 
depreciation charge for the year   1 1 51120  48645 
amortisation charge for the year   16 1909  3758 
ebitda before restructuring costs    570 1 9  42863 
ebitda is a key measure used by the group’s management to assess the performance 
of the group as this is a nongaap measure and is not defined within international 
financial reporting standards as adopted by the eu this reconciliation has been 
provided     
10 employees 
a group employee costs
   2008  2007 
  notes £’000  £’000 
wages and salaries    70108 65167 
social security costs    7 666 7 938 
pension costs     
– defined benefit scheme   31 3857 5162 
–  contributions to defined contribution plans  
and others   31 1009  909 
benefits in kind    1788 1631 
equity settled transactions   33 478 1164 
total employee costs    84906  81971 
less capitalised within property plant and equipment   13203 1 246 1
charged to the consolidated income statement   71703  69510 
employee costs are recognised in the following categories in the consolidated income 
statement 
cost of sales   26702 23839 
selling and distribution expenses   22077 21379 
administrative expenses   22924  24292 
total employee costs   71703  69510 

47
thus group plc annual report 2008 10 employees – continued
b group employee numbers 
the year end and average number of employees fulltime and parttime employed by 
the group including executive directors were  
  at 31 march  average 
 –––––––––––––––––––––––– ––––––––––––––––––––––––––
 2008  2007  2008  2007 
operations  886 758  842 761 
selling and distribution  317 284  306 294 
administrative and customer services  646 684  635 676 
 1849 1726 1783 1731 
the number of fulltime  
equivalent staff was  1828 1705 1762 1720 
 administrative and customer services includes customer services provisioning and 
corporate functions
    average
  ––––––––––––––––––––––––––
by location     2008  2007 
united kingdom    1783 1721 
europe    – 10 
   1783 1731 
     
 for the prior year the average figure for europe represented the employees based  
in the netherlands up until the disposal of this operation in june 2006 
c group key management compensation
   2008  2007 
   £’000  £’000 
salaries and shortterm benefits   3280 3443 
postemployment benefits   175 195 
sharebased payments   196 442 
   3651 4080 
the key management figures above include executive and nonexecutive directors 
and management board members 
details of directors’ emoluments share options longterm incentives and pension 
arrangements are contained in the directors’ remuneration report on pages 32  
to 36
d company employee costs    
   2008  2007 
   £’000  £’000 
wages and salaries    2072 121 1 
social security costs    283 150 
pension costs    55 51 
charged to the income statement    2410 1 41 2 
e company employee numbers    
the year end and average number of employees fulltime and parttime employed by 
the company including executive directors were 
  at 31 march  average 
 –––––––––––––––––––––––– ––––––––––––––––––––––––––
 2008  2007  2008  2007 
administrative  3 3 3  3 
the number of fulltime  
equivalent staff was  3 3  3  3 
    average
  ––––––––––––––––––––––––––
by location    2008  2007 
united kingdom    3 3 
f company key management compensation  
   2008  2007 
   £’000  £’000 
salaries and shortterm benefits   2355 1 36 1 
postemployment benefits   55 51 
   2410 1412 
the key management figures above include executive directors only
1 1 depreciation and impairment charge  
depreciation and impairment is charged on network and nonnetwork assets and is 
included within cost of sales and administrative expenses on that basis as follows
   2008  2007 
  note  £’000  £’000 
cost of sales    42729  41063 
administrative expenses    8391  7 582 
  15 51120  48645 
    
the cost of sales depreciation charge includes asset impairment charges of £nil 
2007 £nil
12 net financing expenses  
a analysis of net financing expenses   
   2008  2007 
continuing operations  notes £’000  £’000 
interest on overdrafts and other borrowings    8955  5634 
interest on defined benefit pension plan obligations  31 4003  3431 
interest on finance leases    318  361 
financial expenses   b  13276  9426 
interest receivable    1083 1365
interest rate swaps   319 –
expected return on defined benefit pension  
plan assets   31 5 110 4086
financial income    6512 5451
net financing expenses    6764  3975 
b analysis of financial expenses 
   2008  2007 
continuing operations   £’000  £’000 
secured bank loans    6404  4465 
amortisation of loan costs    318  518 
loan costs written off    664  376
net change in fair value of cash flow hedges  561 – 
other interest payable    859  275 
unwinding of discount rate interest    149  –
interest on defined benefit pension plan obligations   4003  3431 
finance leases    318  361 
   13276  9426 
c analysis of net financing expenses between continuing and 
discontinued operations
   2008  2007 
  note £’000  £’000 
financial expenses    
continuing operations   13276  9426 
discontinued operations  5 154  –
   13430  9426 
financial income    
continuing operations   6512 5451
discontinued operations  5 29 8
   6541 5459
    
net financing expensesincome    
continuing operations   6764  3975 
discontinued operations  5 125  8
   6889  3967 
financial statements
notes to the consolidated and parent company financial statements
for the year ended 31 march 2008
thus group plc annual report 2008

48 13 income tax expensecredit 
a recognised in the consolidated income statement
   2008  2007 
current tax credit    £’000  £’000 
uk corporation tax charge at 30 2007 30   – –
adjustments in respect of prior year    71  –
   71  –
   2008  2007 
deferred tax expensecredit    £’000  £’000 
origination and reversal of temporary differences   364  4482 
reduction in tax rate    4057 –
deferred tax asset recognised in respect of prior  
year timing differences    206  65 11 7
   3487 69599 
   2008  2007 
  note £’000  £’000 
income tax expensecredit excluding tax  
on sale of discontinued operations   3416 69599 
income tax creditexpense on gain on sale  
of discontinued operations  5 1714  13263
total income tax expensecredit   1702 56336 
b reconciliation of effective tax rate
the current tax charge is higher 2007 credit – higher than the standard rate of 
corporation tax in the uk 30 applied to the lossprofit for the year due to the 
following factors 
   2008  2007 
   £’000  £’000 
lossprofit after tax for the year   4204 83928 
total income tax expensecredit   1702  56336
lossprofit excluding income tax    2502 27 592 
   2008    2007 
 –––––––––––––––––––––––– ––––––––––––––––––––––––––
   £’000    £’000 
income tax using uk standard rate of 
corporation tax of 30 2007 30  300  751 300  8278 
effects of     
nondeductible expenses  300 751 18  503 
deferred tax asset recognised in the  
current year in respect of current  
year temporary differences  145 364  – –
defered tax asset recognised  
in the current year in respect of 
prior year temporary differences – – 2360 651 17
underover provision in the prior year  11 1 277 – –
impact of change in tax on deferred 
tax asset recognised  1621 4057 – –
overseas tax – adjustments in respect  
of prior years  685 1714 – –
 680  1702 2042 56336
c income tax recognised directly in equity
   2008  2007 
  note £’000  £’000 
actuarial gains and losses  28 772 893 
14 lossearnings per share     
the basic lossearnings and diluted lossearnings per ordinary share have been 
calculated in accordance with ias 33 ’earnings per share’ ias 33 for both years  
the lossprofit for the financial year divided by the weighted average number of 
ordinary shares in issue during the financial year has been used to calculate both the 
lossearnings and diluted lossearnings per ordinary share the detailed calculations 
are as follows 
a lossprofit    
   2008  2007 
  note £’000  £’000 
lossprofit for the year from continuing operations   6190 54514 
profit for the year from discontinued operations  5 1986  29 414 
total lossprofit for the year  
attributable to equity shareholders    4204 83928 
   2008  2007 
weighted average number   no of shares no of shares
of ordinary shares  note 000’s 000’s
issued ordinary shares at 1 april    183032 180757 
effect of own shares held    867 147 6
effect of own shares purchased    231 –
effect of share options exercised    162  313 
effect of shares issued    – 379 
basic weighted average number of shares  
at 31 march    182096  179973 
effect of dilutive potential ordinary shares  
– share options   c  – 1832 
diluted weighted average number of shares  
at 31 march    182096 181805 
the basic and diluted weighted average share capital excludes 1629985  
2007 866376 ordinary shares held by the group under trust in connection  
with the employee share schemes 
the average market value of the company’s shares for the purposes of calculating the 
dilutive effect of share options was based on quoted market prices for the period that 
the options were outstanding
b lossearnings per share for continuing and discontinued 
operations
for the years ended 31 march 2008 and 31 march 2007  the lossearnings per 
share for continuing and discontinued operations has been calculated using the same 
figures as the overall lossearnings per share except that the loss for the year used in 
the calculation for the continuing operations lossearnings per share is £6190000 
2007 profit £54514000 and for discontinued operations the profit is £1986000 
2007 profit £29414000
c potentially dilutive instruments
due to their antidilutive nature for the year ended 31 march 2008 1878785 share 
options have been excluded from the diluted loss per share calculation 

49
thus group plc annual report 2008 15 property plant and equipment 
  land   
  leasehold  plant 
  buildings equipment  other assets  total 
group  notes £’000  £’000  £’000  £’000 
cost     
at 1 april 2006   5518  597 174  148387  751079 
reclassification   – 1447 1447  –
additions   1757  48712  7 228  57 697 
disposal of business   – – 102 102
at 31 march 2007   7 275  644439  156960  808674 
at 1 april 2007   7 275  644439  156960  808674 
additions   991 50187 4976  56154 
disposals   – 75 196 271
at 31 march 2008   8266  694551  161740  864557 
depreciation and impairment losses      
at 1 april 2006   3361  261978  1 13356  378695 
depreciation charge for the year  6 11  523  41058  7 064  48645 
at 31 march 2007   3884  303036  120420  427 340 
     
at 1 april 2007   3884  303036  120420  427 340 
depreciation charge for the year  6 11  619 43087 7 414 51120 
released on disposal   – 15 98 1 13
at 31 march 2008   4503  346108  127 736  478347 
     
net book value     
at 1 april 2006  2157  335196  35031  372384 
at 31 march 2007  3391  341403  36540  381334 
    
at 1 april 2007   3391  341403  36540  381334 
at 31 march 2008   3763  348443  34004  386210 
the net book value of tangible fixed assets held under finance leases by the group at 31 march 2008 was £98000 2007 £236000 the charge for depreciation against 
these assets during the year was £138000 2007 £220000 see note 6
all property plant and machinery of the group is secured by a bond and floating charge and a fixed and floating charge in favour of the royal bank of scotland for the secured 
bank loans
financial statements
notes to the consolidated and parent company financial statements
for the year ended 31 march 2008
thus group plc annual report 2008

50 16 intangible assets 
   trade   customer   computer    
 goodwill  names   lists   software   licences   other   total 
group  notes £’000  £’000   £’000   £’000   £’000   £’000   £’000 
cost       
at 1 april 2006    59532   1600   9741   4922   1530   2796   80121 
additions   – – –  1624  –  35   1659 
revisions to deferred consideration    1974 – – – – –  1974
at 31 march 2007    57 558   1600   9741   6546   1530   2831   79806 
     
at 1 april 2007    57 558   1600   9741   6546   1530   2831   79806 
additions   – – –  370  – –  370 
revisions to deferred consideration  28  7 300 – – – – –  7 300
at 31 march 2008    50258   1600   9741   6916   1530   2831   72876 
aggregate amortisation      
at 1 april 2006   –  1600   1308   2873   595   2095   8471 
amortisation charge for the year  6 –  –  2371   921   71   395   3758 
at 31 march 2007   –  1600   3679   3794   666   2490   12229 
at 1 april 2007   –  1600   3679   3794   666   2490   12229 
amortisation charge for the year  6  –  –  505   942   121   341   1909 
at 31 march 2008   –  1600   4184   4736   787   2831   14138 
carrying amounts      
at 1 april 2006   59532  –  8433   2049   935   701   71650 
at 31 march 2007   57 558  –  6062   2752   864   341   67 577 
at 1 april 2007    57 558  –  6062   2752   864   341   67 577 
at 31 march 2008    50258  –  5557   2180   743   –   58738 
all intangible assets including goodwill are secured by a bond and floating charge 
and a fixed and floating charge in favour of the royal bank of scotland for the secured  
bank loans        
 
the amortisation charge is recognised in the following line items in the consolidated 
income statement 
   2008   2007 
    £’000   £’000 
cost of sales    –  – 
administrative expenses    1909   3758 
   1909   3758 
following the acquisition of your communications the group decided not to use the 
your communications trade name and accordingly the £1600000 intangible asset 
recognised at acquisition was impaired to £nil in 2006 
impairment tests for cash generating units containing goodwill
goodwill arose on the acquisitions made in the year ended 31 march 2006 in the 
year of acquisition this goodwill was allocated to the your communications legend 
communications plc and intercell businesses which at that time were identified as 
separate cash generating units cgus following the integration of these entities within 
the existing operations during the year ended 31 march 2007  the number of cgus 
was redefined goodwill arising on acquisition has been amended in the current 
year to reflect the deferred consideration revision and has been allocated to  
the following cgus
    2008   2007 
    £’000   £’000 
managed solutions   1959  2333 
data and telecoms   23432 27 898 
internet   13853 14214 
mobile   11 014 131 13 
   50258  57 558 
the group tests goodwill annually for impairment the impairment test involves 
determining the recoverable amount of cgus to which goodwill has been allocated 
the recoverable amount is based on the present value of expected future cash flows 
value in use as the nature of the group’s business results in a significant amount of 
unallocated assets and costs the value in use of all assets has also been considered
the key assumptions underlying the cash flow projections are revenue growth 
margins the level of operating expenditure the amount of capital expenditure and 
the terminal value of the cgu the cash flow projections are based on formally 
approved management cash flow projections for a tenyear period which for the first 
five years are based on past experience and future expectations and for the next five 
years are based on growth rates consistent with uk growth forecasts these are then 
extrapolated into perpetuity using a nominal longterm growth rate based on united 
kingdom gdp of 31 2007 30 a pretax discount rate in the range of 92 to 
108 2007 98 to 1 1 has been used the cost of capital assigned to cgus 
can have a significant effect on the valuation the cost of capital reflects a number of 
financial and economic variables including the risk free interest rate and a premium 
to reflect the inherent risks these variables are established based on management 
judgement
having reviewed the key assumptions used the directors do not believe that there is 
a reasonably possible change in any of the key assumptions that would require further 
disclosure

51
thus group plc annual report 2008 17 investments 
    subsidiary undertakings
 ––––––––––––––––––––––––––
     2008   2007 
company    note  £’000   £’000 
cost and net book value 
at 1 april      56963   69079 
transferred to subsidiary – thus plc    35e –   1 2 11 6
at 31 march      56963  56963 
the investment in subsidiary undertakings represents an investment in shares of £56963000 2007 £56963000 
during the year the company implemented the requirements of ifric 8 ‘scope of ifrs 2’ and ifric 1 1 ‘ifrs 2 – group and treasury share transactions’ and as a result the 
value of the investments increased by £739000 2007 £1164000 representing the fair value of sharebased payments granted by the company to the employees of the 
companys wholly owned subsidiary thus plc
the shares used to satisfy the obligation arising from these options are held by the employee share trust which is sponsored by the subsidiary thus plc the increase in the cost 
of investment is matched by a reduction in the value of investments of £739000 2007 £1164000 arising from the recharge arrangement with thus plc through which shares 
are given to the company to allow it to satisfy its obligation arising from the sharebased payment arrangements accordingly no movement is disclosed above in investments in 
subsidiaries
details of the company’s significant subsidiary undertakings all of which are included in the consolidation at 31 march 2008 are as follows 
  country of    proportion of 
company incorporation class of share shares held   principal activity
thus plc   scotland  ordinary 100 voice data internet and managed solutions services provider 
  preference 100
demon internet inc  usa  ordinary 100 us internet peering management 
thus profit sharing trustees limited  scotland  ordinary 100  trustee 
your communications group limited  england  ordinary 100  investment holding company 
  preference 100 
intercell limited  england  ordinary 100  mobile airtime and equipment provider 
legend communicatons plc  england  ordinary 100 dormant
 the investment in these companies is held by a subsidiary undertaking 
18 inventories
    group    company
  –––––––––––––––––––––––– ––––––––––––––––––––––––––
   2008   2007   2008   2007 
   £’000   £’000   £’000   £’000 
raw materials – replacement parts and consumables    8615   4213  – –
  
inventories to the value of £4995000 2007 £4418000 were recognised as expenses in the year 
included in inventories is £nil expected to be recovered in more than 12 months
19 trade and other receivables 
    group    company
  –––––––––––––––––––––––– ––––––––––––––––––––––––––
   2008   2007   2008   2007 
 notes  £’000   £’000   £’000   £’000 
amounts falling due within one year       
trade receivables    73502   71882  – –
amounts owed by related parties  35e –  3064  – –
taxation and social security   2367 – – –
prepayments and accrued income    42900   31245  – –
other receivables    790   2290  – –
   119559   108481  – –
amounts falling due after one year       
amounts owed by subsidiary undertakings  a 35e – –  70188   78095 
   119559   108481   70188   78095 
a  although amounts owed by subsidiary undertakings are repayable on demand the directors believe that as the amounts are unlikely to be realised in the 12 months from the 
balance sheet date the loan is appropriately disclosed as amounts falling due after one year
financial statements
notes to the consolidated and parent company financial statements
for the year ended 31 march 2008
thus group plc annual report 2008

52 20 cash and cash equivalents 
    group    company
  –––––––––––––––––––––––– ––––––––––––––––––––––––––
   2008   2007   2008   2007 
   £’000   £’000   £’000   £’000 
cash and cash equivalents per balance sheets    71643   31724  87  87 
less deposits with a maturity period in excess of three months   –  400 – –
cash and cash equivalents per cash flow statements   71643  31324  87  87 
21 trade and other payables  
    group    company
  –––––––––––––––––––––––– ––––––––––––––––––––––––––
   2008   2007   2008   2007 
 notes  £’000   £’000   £’000   £’000 
trade payables    69 042   36991  – –
amounts due to related parties  35e –  1166  – –
taxation and social security    –  613  141  154 
capital creditors and accruals    9869   9271  – –
other payables    6978   5448  87  87
derivatives used for hedging 24e 561 – – –
accruals and deferred income    54098   70044  – –
   140548   123533  228  241 
22 current tax liabilities 
    group    company
  –––––––––––––––––––––––– ––––––––––––––––––––––––––
   2008   2007   2008   2007 
   £’000   £’000   £’000   £’000 
liabilities acquired through business combinations   –   537  – –
23 interestbearing loans and borrowings 
    group    company
  –––––––––––––––––––––––– ––––––––––––––––––––––––––
   2008   2007   2008   2007 
current notes  £’000   £’000   £’000   £’000 
other borrowings      
secured bank loans  a –  6000  – –
other loans  b –  186  – –
finance lease obligations  c  230   325  – –
   230   651 1  – –
    group    company 
  –––––––––––––––––––––––– ––––––––––––––––––––––––––
   2008   2007   2008   2007 
noncurrent notes  £’000   £’000   £’000   £’000 
other borrowings      
secured bank loans  a  98623   46261  – –
other loans  b –  56  – –
finance lease obligations  c  3300   3554  – –
  101923   49871  – –
terms and debt repayment schedule 
the terms and conditions of the outstanding loans and borrowings were as follows  
    face   carrying     face  carrying 
     value   amount     value   amount 
  nominal year of  2008   2008  nominal year of  2007   2007 
 currency interest rate maturity  £’000   £’000  interest rate maturity  £’000   £’000 
secured bank loans gbp libor1 25 2012 100000 100000  libor1 5 2010 53000  53000 
other loans gbp – – – – 575 2008 242  242 
finance lease obligations gbp 893 2019 3530  3530  893 2019 3879  3879 
    103530  103530    57 121  57 121 
 
 for the purposes of this table the secured bank loans are shown gross of unamortised issue costs

53
thus group plc annual report 2008 23 interestbearing loans and borrowings – continued
a secured bank loans   
the secured bank loans are stated net of unamortised issue costs of £1377 000 2007 £739000 the secured bank loans are secured by a bond and floating charge over the 
undertaking and all property and assets present and future of the group and by a fixed and floating charge over the properties plant and machinery securities debts bank 
accounts goodwill and uncalled capital and intellectual property rights of the group  
on 30 june 2007  the group repaid £2000000 of the final facility of the secured bank loans in line with the biannual loan repayment schedule on 12 july 2007  the group 
replaced this £15000000 revolving credit facility and £36000000 facility with a £60000000 revolving credit facility and a £50000000 term loan facility  
the repayment of both facilities falls due for full and final settlement on 12 july 2012
the purpose of the replacement bank facility is for general corporate purposes including working capital requirements the bank facilities incurred commitment fees of 
£1045000 being 095 of the facilities obtained
the group has £10000000 of committed but undrawn facilities at 31 march 2008 2007 £nil 
the interest rate applied to the loan facilities is calculated as being the aggregate of an applicable margin libor and a mandatory cost if any the mandatory cost is defined as 
an addition to the interest rate to compensate the lenders for certain compliance costs     
the average interest rate charged during the year was 7 43 2007 7 22
b other loans  
the other loans were secured by a debenture giving a fixed and floating charge over all assets of the group     
c  finance lease obligations
finance lease obligations are payable as follows         
 minimum   minimum
 lease    lease
  payments interest principal payments interest principal
  2008   2008   2008   2007   2007   2007 
  £’000   £’000   £’000   £’000   £’000   £’000 
less than one year   531   301   230   648   323   325 
between one and five years   1955   995   960   2021   1083   938 
after five years   2933   593   2340   3422   806   2616 
total   5419   1889   3530   6091   2212   3879
24 financial instruments 
financial risk management 
overview 
the group has exposure to the following risks from the use of financial instruments 
liquidity risk  
credit risk  
market risk  
interest rate risk  
currency risk  
there is an ongoing process for identifying evaluating and managing the significant risks faced by the business including those specifically listed above the board of directors 
via the audit committee regularly review this process
risk assessments are carried out on key processes and quarterly reviews are carried out by the risk management group these assessments cover all aspects of business risk such 
as financial operational strategic compliance and business continuity in addition to this risk reviews are also carried out to identify and assess the key business risks associated 
with the achievement of strategic objectives the reviews are assigned to risk owners who have a responsibility to regularly monitor and review risks within the group a review 
includes consideration of the nature and extent of the risks facing the group the likelihood of the risks materialising and a review of the controls and action plans associated with 
the risk 
a quarterly presentation is made to the audit committee on the assessment of the risk assessments and risk reviews by the internal audit function this will include control failings 
andor weaknesses assessed as significant and discussions on the actions taken by the business to address them
a liquidity risk 
liquidity risk is the risk that the group will not be able to meet its financial obligations as they fall due the groups approach to managing liquidity is to ensure that it will have 
sufficient liquid funds to meet its liabilities as they fall due 
the groups banking facilities include a £60000000 revolving credit facility and a £50000000 term loan facility with the royal bank of scotland rabobank international 
london allied irish bank halifax bank of scotland lloyds tsb bank and national australia bank all loans are subject to various financial covenants
liquidity is managed by the use of annual cash flow budgets and cash flow forecasts and monitoring of actual cash flow performance against budgets and forecasts identified 
surplus cash is either placed on deposit or used to repay existing facilities
the table below details the contractual maturities of financial liabilities including estimated interest payments
       31 march 2008
 ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
 carrying contractual 6 months    more than
 amount cash flows or less 6 – 12 months 1 – 2 years 2 – 5 years 5 years
group  £000   £000   £000   £000   £000   £000   £000 
nonderivative financial liabilities
secured bank loans  100000   129152   850   3603   3325   121374  –
finance lease liabilities  3530   5419   287   244   489   1466   2933 
trade and other payables  139987   139987   139987  – – – –
  243517   274558   141124   3847   3814   122840   2933
financial statements
notes to the consolidated and parent company financial statements
for the year ended 31 march 2008
thus group plc annual report 2008

54 24 financial instruments – continued
a liquidity risk – continued
        31 march 2007
 ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
 carrying contractual 6 months     more than
 amount cash flows or less  6 – 12 months 1 – 2 years 2 – 5 years 5 years
group  £000   £000   £000   £000   £000   £000   £000 
nonderivative financial liabilities        
secured bank loans  53000   62984   2854   5959   1351 1   40660  –
other loans  242   246   171   18   36   21  –
finance lease liabilities  3879   6091   324   324  555   1466   3422 
trade and other payables  123533   123533   123533  – – – –
  180654   192854   126882   6301   14102   42147   3422 
        31 march 2008
 ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
 carrying contractual 6 months     more than
 amount cash flows or less  6 – 12 months 1 – 2 years 2 – 5 years 5 years
company  £000   £000   £000   £000   £000   £000   £000 
nonderivative financial liabilities
trade and other payables 228  228  228  – – –  –
 228  228  228  – – –  –
        31 march 2007
 ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
 carrying contractual 6 months     more than
 amount cash flows or less  6 – 12 months 1 – 2 years 2 – 5 years 5 years
company  £000   £000   £000   £000   £000   £000   £000 
nonderivative financial liabilities     
trade and other payables 241  241  241  – – – –
 241   241  241  – – – – 
b credit risk 
credit risk is the risk of financial loss to the group and company if a customer or counterparty fails to meet its contractual obligations and arises from the group and companys 
trade receivables 
the group and company monitor the exposures and the credit rating of their counterparties regularly and carry out appropriate credit checks on potential customers before sales 
commence to mitigate the credit risk that the group and company may have with any one counterparty it is not anticipated that any existing counterparties will fail to meet their 
current obligations the maximum exposure to credit risk is represented by the carrying value of each financial asset in the balance sheet
trade and other receivables
the group and company operate ‘debt paths’ to manage credit risk for counterparties that do not honour agreed credit terms the debt paths include escalation suspension of 
services offset of amounts payable and recourse to court action to recover monies outstanding provision is made for doubtful receivables upon age of debt and experience of 
collecting overdue debts the group will obtain security from customers by way of a deposit to mitigate credit risk
guarantees 
thus group plc and thus plc have provided cross guarantees in respect of thus plcs secured borrowing arrangements 
i group
the carrying amount of financial assets represents the maximum credit exposure the maximum exposure to credit risk at the reporting date was
     carrying amount
   ––––––––––––––––––––––––––
     2008   2007 
group   notes  £000   £000 
trade and other receivables   19  119 559   108481 
cash and cash equivalents   20  71643   31324 
     191202   139805 
based on historic default rates the group believes that no impairment allowance is necessary in respect of trade receivables due up to 30 days allowances are made for 
receivables beyond that date on a specific base where debt recovery is deemed unlikely
cash and cash equivalents are held with banks which are not expected to fail
an analysis of the age of trade receivables that are past due at the reporting date is
  gross impairment  gross   impairment 
   2008   2008   2007   2007 
group trade receivables – by invoice date  £000 £000  £000   £000 
not due – 30 days   54144  –  54424  –
due 31 – 60 days   7 360  –  7 500  –
due  90 days   14665   2667  17 775   4753
   76169   2667  79699   4753
in excess of 50 of all trade receivables at the period end and during the year relate to the group’s top 50 customers 

55
thus group plc annual report 2008 financial statements
notes to the consolidated and parent company financial statements
for the year ended 31 march 2008
24 financial instruments – continued
b credit risk – continued
i group – continued
the movement in the impairment balance in respect of trade receivables during the year was
     2008   2007 
group     £000   £000 
balance at 1 april     4753   9042 
impairment loss recognised     2086  4289
balance at 31 march     2667   4753 
the maximum exposure to credit risk for trade receivables at the reporting date by geographic region was
     2008   2007 
group     £000   £000 
domestic     72815   76527 
eurozone countries     3354   2992 
     76169   79519
ii company
the carrying amount of financial assets represents the maximum credit exposure the maximum exposure to credit risk at the reporting date was
     carrying amount
   ––––––––––––––––––––––––––
     2008   2007 
company   notes  £000   £000 
trade and other receivables   19  70188   78095 
cash and cash equivalents   20  87   87 
     70275   78182 
the trade receivables balance in the company balance sheet represents an intercompany loan between thus group plc and thus plc although this loan is payable on 
demand the directors believe that the amounts are unlikely to be realised in the 12 months from the balance sheet date 
c market risk
this is defined as the risk that changes in market prices such as interest rates foreign exchange rates and equity prices will affect the group and company income or the value 
of their holdings of financial instruments the objective of market risk management is to manage and control market risk within acceptable parameters
unless approved by the board promissory notes off balance sheet financing and letters of credit are not permitted financial instruments require the approval of the chief 
financial officer and the group financial controller an instrument involving a commitment in excess of £1000000 is subject to the approval of the chief executive under the 
existing approval framework for general transactions and will be subject to a separate report to the audit committee
i  interest rate risk 
 the group is exposed to changes in interest rates on borrowings and it is the groups policy to have a floating rate interest profile with the exception of finance leases the 
groups borrowing facilities and investments are all at a sterling libor floating rate of interest only the interest flows connected to the secured bank loans are hedged and this 
policy has been applied throughout the year to comply with the groups secured bank loan facilities an interest rate hedge with a notional amount equal to a proportion of 
drawn amounts must be in place the group has a £25000000 interest rate collar in place which caps libor at 600 with a floor of 462 in addition the group has a 
£20000000 interest rate swap that fixes libor at 525 and a £5000000 interest rate swap that fixes libor at 529 
at the balance sheet date the interest rate profile of the groups interestbearing financial instruments was 
      carrying amount 
   ––––––––––––––––––––––––––
     2008   2007 
     £000   £000 
fixed rate instruments
financial assets    – –
financial liabilities     4091  3879
     4091  3879
variable rate instruments
financial assets     50400   9300 
financial liabilities     100000  53242
     49 600  43942
fair value sensitivity analysis for fixed rate instruments 
the group accounts for its interest rate hedging instruments at fair value through the consolidated income statement  
a change of 100 basis points increasing interest rates at the reporting date after taking into account hedging instruments would have decreased equity and increased the loss for 
the year by £600000 2007 £530000 

thus group plc annual report 2008

56 24 financial instruments – continued
c market risk – continued
ii currency risk 
group
the group is exposed to currency risk on sales purchases and borrowings that are denominated in a currency other than sterling wherever practical the group makes sales 
and purchases in its functional currency to minimise currency risk
thus faces currency exposure in us dollars usd from operating activities in the united states and has fixed asset expenditure in usd the group is also subject to interconnect 
charges in foreign currencies and was also subject to currency exposure in euros and incurred fixed asset expenditure in euros from its operating activities in the netherlands until 
the sale of this operation during the prior year in addition on consolidation thus is exposed to risk from the translation of net assets and profits earned in its us subsidiary
thus does not hedge either the currency exposure on the operating activities to date which are not considered to be material or the translation exposure on consolidation as this 
is considered to be an accounting rather than cash exposure
the groups policy is to engage in exchange rate hedging on a case by case basis for specific material transactions that occur at known intervals
the groups exposure to currency risk is deemed to be immaterial
company 
all transactions entered into by the company are denominated in sterling the company therefore has no exposure to currency risk 
d capital management 
the boards policy for managing capital is to use banking facilities for trading purposes and consider appropriate capital structures for nontrading requirements
from time to time the group purchases its own shares in the market through an employee share trust the decision to purchase or sell own shares is made by the trustees of the 
employee share trust the group and company do not currently have a share buyback plan any future share buyback would require the approval of the board after shareholder 
consent is obtained 
there were no changes to the group and companys approach to capital management during the year
no group companies were subject to any externally imposed capital requirements
e financial assets and liabilities at fair value through consolidated income statement
the group does not trade in derivative financial instruments all transactions in derivative financial instruments are undertaken to manage business risks the group has a 
£25000000 interest rate collar in place which caps libor at 600 with a floor of 462 in addition the group has a £20000000 interest rate swap that fixes libor at 
525 and a £5000000 interest rate swap that fixes libor at 529
the fair value is based on the value at which one party assumes the rights and duties of another party
the hedging instruments were entered into during the current year and the movement in fair value is given in the table below 
    at 1   movement   at 31 
    april 2007   in year   march 2008 
  notes  £000   £000   £000 
£25000000 cap and collar   –  356   356 
£20000000 interest rate swap at 525   –  131   131 
£5000000 interest rate swap at 529   –  74   74 
  12b 21 –  561   561
f fair values
i fair values vs carrying amounts
the fair values together with the carrying amounts shown in the balance sheet for the years ended 31 march 2008 and 2007  are as follows
    31 march 2008    31 march 2007 
  –––––––––––––––––––––––––––– –––––––––––––––––––––––––––––
   carrying amount   fair value   carrying amount   fair value 
group   notes   £000   £000   £000   £000 
trade and other receivables  19  119559   119559   108481   108481 
cash and cash equivalents  20  71643   71643   31324   31324 
trade and other payables excluding derivatives used for hedging  21  139987  139987  123533  123533
derivatives used for hedging  21  561  561 – –
secured bank loans  23  98623  98623  52261  52261
other loans  23 – –  242  242
finance lease liabilities  23  3530  2279 3879  2348
   51499  50248  401 10  38579
    31 march 2008    31 march 2007 
  –––––––––––––––––––––––––––– –––––––––––––––––––––––––––––
   carrying amount   fair value   carrying amount   fair value 
company   notes   £000   £000   £000   £000 
trade and other receivables  19  70188   70188   78095   78095 
cash and cash equivalents  20  87   87   87   87 
trade and other payables  21  228  228  241  241
   70047   70047   77 941   77 941
ii  estimation of fair values 
the following methods and assumptions were used to estimate the fair values shown above 
trade and other receivablespayables – the fair value of receivables and payables with a remaining life of less than one year is deemed to be the same as the book value
cash and cash equivalents – the fair value is deemed to be the same as the carrying amount due to the short maturity of these instruments
derivatives used for hedging – the fair value is based on quotes provided by the issuers of those instruments
secured bank loans and other loans – the fair value is considered to be the same as the book value as the loans are charged at floating rates of interest
finance lease liabilities – the fair value is based on the discounted future cash flows expected to be paid out by the group the fair values are based on cash flows discounted 
using a rate based on borrowings of 7 00 2007 7 68

57
thus group plc annual report 2008 25 provisions
a group
   customers
  restructuring   contracts   property   total 
    £’000   £’000   £’000   £’000
at 1 april 2006   5173   2044   3098   10315
provisions used during the year   5173  1100  936  7 209
at 31 march 2007  –  944   2162   3106
at 1 april 2007   –  944   2162  3106
provisions used during the year   –  944  1141 2085
at 31 march 2008   – –  1021   1021
provisions are analysed between current and noncurrent as follows 
    2008   2007 
     £’000   £’000 
current     551 1534
noncurrent     470   1572
    1021   3106 
i customer contracts
the initial customer contracts provision of £2044000 represented obligations in respect of a contract acquired as part of the your communications acquisition as anticipated 
this provision was fully utilised by the conclusion of the contract
ii property 
the property provision represents costs associated with vacant properties and dilapidations the costs principally relate to the rents due to be paid on these properties until the 
group can exit the leases at the next contracted exit dates 
b company 
the company has no provisions 
26 deferred tax assets and liabilities   
a recognised deferred tax assets and liabilities
  assets  liabilities  net
 –––––––––––––––––––––––––– –––––––––––––––––––––––––– ––––––––––––––––––––––––––––
 2008   2007   2008   2007   2008   2007
group  £’000   £’000   £’000   £’000   £’000   £’000 
property plant and equipment   45623  52586 – –  45623 52586
intangible assets  – – 1894 1951 1894  1951
iru deferred income  – – – 5019 –  5019 
sharebased payments  268  450 – – 268 450
pensions  – – 1057  242  1057  242 
provisions  2450 3040 – – 2450 3040
tax loss carryforwards  10994  1 1779 – – 10994  11 779
tax assetsliabilities   59 335  67 855 2951  7 212  56384 60643
b  movement of temporary differences during the year 
  balance at     balance at    balance at 
  31 march   recognised in   recognised 31 march   recognised in   recognised 31 march
   2006   profit or loss   in equity   2007  profit or loss   in equity  2008 
   £’000  £’000 £’000 £’000 £’000 £’000 £’000
property plant and equipment   3000   55586 –  52586 6963 – 45623
intangible assets   1300  651  –  1951 57 – 1894 
iru deferred income  –  5019  –  5019  5019 – – 
sharebased payments  –  450 –  450 182 – 268
pensions  –  651  893   242  43 772 1057
provisions  –  3040 –  3040 590 – 2450
tax loss carryforwards  –  1 1779 –  1 1779 785 – 10994
   4300   65836  893   60643 3487 772 56384
the amount recognised in the profit and loss for the prior year includes a credit of £69599000 for continuing operations and a charge of £3763000 for discontinued 
operations 
the directors have prepared longterm financial projections which highlight that the group should become tax paying in the future consequently the directors are of the view 
that recognition of the deferred tax assets is appropriate
tax losses are carried forward indefinitely the deductible temporary differences do not expire under the current tax legislation
financial statements
notes to the consolidated and parent company financial statements
for the year ended 31 march 2008
thus group plc annual report 2008

58 27 issued capital   
    group and company
  ––––––––––––––––––––––––––––––
   2008   2007 
   £’000   £’000 
authorised     
197 478862 ordinary shares of 25p each     49370   49370 
    group and company
 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––
  no of    no of 
  shares  2008  shares  2007
issued and fully paid note  000’s  £’000  000’s  £’000 
at 1 april – ordinary shares of 25p each    183032  45758  180757  45189 
ordinary shares issued during the year at 25p each  a – –  2275   569
at 31 march – ordinary shares of 25p each    183032   45758   183032   45758
a issue of shares 
on 1 february 2007  2274701 ordinary shares of 25p each with a total nominal value of £569000 were issued and allotted to united utilities plc as an additional 
consideration for the acquisition of your communications this consideration was valued at £3526000 using the share price at the date of acquisition of 155p prior to the 10 
to 1 share consolidation and £2957 000 was transferred to the share premium account
b shares to be issued 
under the terms of the acquisition of your communications united utilities plc was potentially entitled to a further allotment of consideration shares this entitlement was dependent 
upon the thus group plc share price reaching or exceeding certain strike prices from the date of completion 26 february 2006 up to and including 31 december 2007  the 
maximum number of shares that could have potentially been allotted under the terms of the acquisition were 12001006 ordinary shares of 25p each this would have represented 
a total nominal value of £3000000 if the maximum number of shares had been allotted under the terms of the agreement united utilities plc would have had a potential 
shareholding of 265 in the company at 31 december 2007  the share price had not reached the requisite strike prices therefore under the terms of the agreement no further 
allotment of consideration shares is due for the year ended 31 march 2008
c rights attaching to ordinary shares
the holders of ordinary shares are entitled to
i  dividends – the holders of ordinary shares are entitled to dividends as declared from time to time by the company
ii  voting rights – every member is entitled to one vote per share at general meetings of the company but only if the shares held by the member are fully paid
iii  distribution of assets on liquidation – in the event of a windingup of the company the whole or any part of the assets of the company may be divided amongst the 
members in specie the liquidator is also entitled to value the assets and determine how the division is to be carried out as between the members or different classes of 
members or vest the whole or any part of the assets in trust for the benefit of the members and determine the scope and terms of those trusts

59
thus group plc annual report 2008 financial statements
notes to the consolidated and parent company financial statements
for the year ended 31 march 2008
28 reconciliation of movement in capital and reserves 
a group
    shares 
     to be share  capital  cumulative
  no of  issued  issued  premium merger redemption other loss
  shares capital reserve  account reserve vi  reserve vii  reserves  reserve  total 
  notes  000’s £’000   £’000  £’000  £’000  £’000  £’000  £’000  £’000 
balance at 1 april 2006   180757  45189  12800  36091  586556  23248  3  318240 385647 
shares issued  i 2275  569  – 2910  – – – – 3479 
shares to be issued – shares issued  ii – – 3526 – – – – – 3526
shares to be issued – reduction  iii – – 1974 – – – – – 1974
profit for the year   – – – – – – – 83928  83928 
currency translation differences  
on overseas net assets  iv – – – – – – 15 – 15
translation differences released  iv – – – – – – 12  – 12 
actuarial gains on defined benefit 
pension scheme   – – – – – – – 2978  2978 
income tax on defined benefit  
plan actuarial gains  26 – – – – – – – 893 893
sharebased payment charges 33 – – – – – – – 1164 1164
proceeds from exercise of share options v – – – – – – – 419 419
balance at 31 march 2007   183032  45758  7 300  39001  586556  23248  – 230644 471219 
balance at 1 april 2007   183032  45758  7 300  39001  586556  23248  – 230644 471219 
shares to be issued – reduction  iii – – 7 300 – – – – – 7 300
loss for the year   – – – – – – – 4204 4204
actuarial gains on defined benefit  
pension scheme   – – – – – – – 2757 2757
income tax on defined benefit  
plan actuarial gains  26  –  – – – – – – 772 772
sharebased payment charges 33 – – – – – – – 478 478
proceeds from exercise of share options v – – – – – – – 230 230
treasury shares purchased v – – – – – – – 1207 1207
balance at 31 march 2008   183032  45758  – 39001  586556  23248  – 233362 461201
the cumulative loss reserve closing balance is offset by £20886000 2007 £21232000 in respect of own shares held 
i  the shares issued in the prior year were valued at a consideration of £3526000 with £2957 000 being transferred to the share premium account other costs totalling 
£47 000 were also incurred during the year ended 31 march 2007 relating to the issue of shares in the previous year
ii  the shares to be issued in respect of the acquisition of your communications were satisfied in ordinary shares see note 27a 
iii  the reduction in the shares to be issued reserve for the current year reflects the lapsing of the deferred consideration following the companys share price not reaching the 
required strike prices in the prior year the reduction reflected an update of the valuation of the remaining 9726305 shares potentially due to united utilities plc at that time 
using a ‘monte carlo’ simulation methodology and a share price volatility of 28 see note 27 b
iv  this represented net foreign exchange differences arising from the translation of the financial statements of foreign operations which were released back to the consolidated 
income statement following the disposal of the netherlands operations
v  t h e thus plc employee share trust was established at the time of thus plc’s flotation in november 1999 thus plc provided the trust with a £24 million noninterest
bearing loan to purchase shares in thus plc to satisfy the various share option schemes in existence at the time when the new holding company thus group plc was 
established and the thus plc shares were delisted all thus plc shares were converted to thus group plc shares these shares have been classified as treasury shares 
shares held by the trust are transferred to employees on payment of the option price
  the number of own shares held by the employee share trust and over which the group has de facto control as at 31 march 2008 was 1629985 2007 866376  
at 31 march 2008 6160 2007 5570 shares were under option to employees
  the market value as at 31 march 2008 of the shares held under trust and which have not yet vested unconditionally with employees is £1939682 2007 £1596298 
  the nominal value of the own shares held under trust as at 31 march 2008 was £407 496 2007 £216594
vi  the merger reserve balance consists of two elements on 12 march 2002 the company issued shares for a consideration less expenses of £566560000 at this  
time the group demerged from its former parent and this restructuring was accounted for using merger accounting principles under the then uk gaap during the year  
ended 31 march 2006 £19996000 was added to this reserve representing the element of the share issue and related costs that were assigned to the purchase of  
your communications group limited and intercell limited in accordance with section 131 of the companies act 1985 
vii  the capital redemption reserve was created when 25000000 deferred nonvoting shares of 92 
343346
p each were cancelled pursuant to a special resolution of the 
company passed on 19 march 2002
thus group plc annual report 2008

60 28 reconciliation of movement in capital and reserves – continued 
b company
     shares to  share  capital
 no of issued be issued  premium  merger redemption cumulative
 shares capital reserve account reserve reserve  loss reserve  total 
  000’s £’000  £’000  £’000  £’000  £’000  £’000  £’000 
balance at 1 april 2006  180757  45189  12800  36091  19996  23248 540 136784 
shares issued  2275  569  – 2910  – – – 3479 
shares to be issued – shares issued  – – 3526 – – – – 3526
shares to be issued – reduction  – – 1974 – – – – 1974
profit for the year  – – – – – – 141  141 
balance at 31 march 2007 183032  45758  7 300  39001  19996  23248  399 134904 
balance at 1 april 2007   183032   45758   7 300   39001   19996  23248  399  134904 
shares to be issued – reduction  – –  7 300 – –  – –  7 300
loss for the year  – – – – – –  594  594
balance at 31 march 2008  183032   45758   –   39001   19996   23248   993  127 010 
as permitted by section 230 of the companies act 1985 the company has not presented its own income statement the company’s income statement was approved by the 
board on 20 may 2008 the company made a loss of £594000 for the year ended 31 march 2008 2007 profit £141000
during the year the company implemented the requirements of ifric 8 ‘scope of ifrs 2’ and ifric 1 1 ‘ifrs 2 – group and treasury share transactions’ and as a result an 
amount of £739000 2007 £1164000 was recognised in reserves representing the fair value of sharebased payments granted by the company to the employees of the 
companys wholly owned subsidiary thus plc as the shares used to satisfy these options are held by the employee share trust which is sponsored by thus plc this was 
matched by an equal and opposite amount for the recharge from the subsidiary for shares given to the company to satisfy sharebased payments accordingly no movement is 
disclosed above in reserves
29 free cash flow    
    2008  2007 
group    £’000  £’000 
net cash from operating activities    53924  31138 
included in cash flows from investing activities
interest received    1096  1385 
acquisition of property plant and equipment    55417 51949
acquisition of intangible assets    210 974
    54531 51538
included in cash flows from financing activities
interest paid    5395 5358
free cash flow    6002 25758
free cash flow is a key measure used by the group’s management to evaluate the cash flow performance of the group free cash flow is defined as operating cash after interest 
taxation and capital expenditure as this is a nongaap measure and is not defined within international financial reporting standards as adopted by the eu this reconciliation 
has been provided
30 analysis of net debt 
net debt includes cash and cash equivalents overdrafts loans and finance leases as follows  
  at 1  other non  at 31 
  april  cash  march 
  2007  cash flow  changes  2008 
group  £’000  £’000  £’000  £’000 
cash and cash equivalents   31324  40319  – 71643 
loans – due within one year   6186 6186  – –
loans – due after one year   47 056 52944 – 100000
finance leases   3879 349  – 3530
  57 121 46409 – 103530
total   25797 6090 – 31887
the net debt figure is shown gross of unamortised issue costs of £1377 000 2007 £739000     

61
thus group plc annual report 2008 31 retirement benefit obligations 
the pension charge for the year comprises 
   2008  2007
   £’000  £’000 
defined benefit scheme    3857 5162 
defined contribution arrangements    999 773 
others    10 136 
   4866 6071 
the group operates two pension schemes   
 the thus group plc pension scheme the ’scheme’ a funded defined benefit  
scheme the assets of the scheme are held in a trust fund which is independent of 
the group’s own assets 
 the thus group personal pension plan a funded defined contribution  
arrangement   
the information disclosed below is in respect of the whole of the thus group plc 
pension scheme the company has no pension commitments
    group
  ––––––––––––––––––––––– 
   2008  2007
   £’000  £’000 
present value of funded defined benefit obligations   75300 74630
fair value of plan assets    79 07 4  75435
net assets    3774  805 
unrecognised actuarial gains and losses    – –
recognised defined benefit asset 
at the end of the year    3774  805 
    group
  ––––––––––––––––––––––– 
movements in the present value   2008  2007 
of defined benefit obligations  note £’000  £’000
at 1 april    74630 69005
current service cost    3857 5162
past service cost   a 198 1880
interest cost    4003 3431
actuarial gains   7 833 4573 
benefits paid    435 1175 
contributions by members    880 900
at 31 march    75300 74630
    group
  –––––––––––––––––––––––
   2008  2007
movements in the present value of plan assets note £’000  £’000 
at 1 april    75435  61094 
expected return on plan assets    5 110  4086  
actuarial gains    5076 1595
contributions by employer   b 3160 12125 
contributions by members    880 900 
benefits paid by the plan   435 1 1 75
at 31 march    7907 4  75435 
a  these costs were provided for as part of the restructuring provision created at  
31 march 2006     
b  during the year ended 31 march 2007 the group made a oneoff payment 
of £7 500000 into the defined benefit pension scheme to effectively eliminate 
the deficit recorded in the december 2005 valuation of this scheme further 
payments totalling £1880000 were paid into the scheme for augmentation 
payments concerning former employees
    group
  ––––––––––––––––––––––––––––
   year ended year ended
expense recognised in the   31 march 2008 31 march 2007
consolidated income statement   £’000  £’000 
current service cost    3857  5162
interest on defined benefit pension plan obligations   4003  3431 
expected return on defined benefit pension plan assets   5 110 4086
total pension expense    2750 4507 
the expense is recognised in the following line items in the consolidated income 
statement  
    group
  ––––––––––––––––––––––––––––
   year ended year ended
   31 march 2008 31 march 2007
   £’000  £’000 
cost of sales    2525 3184 
selling and distribution expenses    513 941
administrative expenses    819  1037 
financial income    5 110 4086
financial expenses    4003  3431 
   2750 4507 
cumulative actuarial gains reported in the statement of recognised income and 
expense since 1 april 2004 the transition date for adopting ifrs are £1994000 
2007 losses £763000  
the fair value of the plan assets and the return on those assets were as follows 
    group
  ––––––––––––––––––––––––––––
   2008  2007 
   fair value  fair value 
   £’000  £’000 
equities    41707 37 428 
bonds    36344 30385 
other assets    1023 7 622 
   79074 75435 
actual return on plan assets    34  2491 
the expected rates of return on plan assets are determined by reference to relevant 
indices the overall expected rate of return is calculated by weighting the individual 
rates in accordance with the anticipated balance in the plan’s investment portfolio
principal actuarial assumptions used at the measurement date were as follows 
    group
  ––––––––––––––––––––––––––––
   31 march 31 march
   2008  2007 
  note  per annum   per annum
discount rate    65 54
expected rate of return on assets   c 73 64
future salary increases    47 41
rate of increase in pensions    37 31
inflation assumption    37 31
the average life expectancy assumptions after a retirement age of 65 are 
   2008  2007 
   no of years no of years 
male    228 203
female    252 229
c  the expected return on scheme assets assumption was determined as the average 
of the expected returns on the assets held by the scheme at 31 march 2008 the 
rates of return for each class were determined as follows and are set out below 
  equities the rate adopted was derived using watson wyatt’s global asset  
model at 31 march 2008      
  bonds the overall rate has been set to reflect the yields available on the gilts and  
corporate bond holdings held as at 31 march 2008   
  other assets this class is mostly made up of cash holdings and the rate adopted  
reflects current shortterm returns on such deposits 
  longterm rate of return expected on
 ––––––––––––––––––––––––––––––––
   31 march 31 march 
   2008  2007 
    per annum   per annum 
equities    85 7 9
bonds    61 51
other assets    47 41
total assets    73 64
financial statements
notes to the consolidated and parent company financial statements
for the year ended 31 march 2008
thus group plc annual report 2008

62 31 retirement benefit obligations – continued 
history of plan 
the history of the plan for the current and prior years is as follows  
    group
 –––––––––––––––––––––––––––––––––––––––––––––––––––
 2008  2007  2006 2005
 £’000  £’000  £’000  £’000 
present value of defined  
benefit obligations  75300 74630 69005 52186
fair value of plan assets  79 07 4  75435  61094  47 290 
surplusdeficit  3774  805  7 91 1 4896
experience adjustments 
    group
 –––––––––––––––––––––––––––––––––––––––––––––––––––
 2008  2007  2006 2005
 £’000  £’000  £’000  £’000 
experience gainloss  
on plan liabilities  567 6760 97  106
experience lossgain  
on plan assets  5076 1595  7 603 1234
the group expects to contribute approximately £3200000 to its defined benefit plan 
in the next financial year     
defined contribution plans     
the group operates a number of defined contribution pension plans and has also 
made payments to other schemes during the year 
the total expense relating to these plans in the current year was £1009000  
2007 £909000      
32 financial commitments  
a group analysis of total commitments under operating leases
   2008   2007 
   £’000   £’000 
leases of land and buildings 
expiring within one year    1533 612 
expiring between two and five years inclusive   6392 9254 
expiring in over five years    106416 11 442 1 
   11434 1 124287 
other operating leases 
expiring in over five years    1954 2124 
   1954 2124 
the group leases a number of offices network sites and other assets under operating 
leases the leases have various terms and renewal options the group also leases 
towers under noncancellable operating lease agreements  
properties utilised by the group are deemed to be operating leases because the terms 
of the leases are considerably shorter than the anticipated useful life of the property 
and all leases are subject to periodic rent reviews where rental charges are updated to 
reflect prevailing market conditions 
thirtytwo of the leased properties have been sublet by the group with a further four 
subject to agency arrangements these leases and subleases expire between six 
months and 19 years and the total future minimum sublease payments expected to 
be received at 31 march 2008 are £12869000 2007 £14495000 sublet 
payments of £1614000 2007 £1525000 are expected to be received in the 
following financial year the group has recognised a provision of £101000 in respect 
of two of these properties where the income received does not cover the rent paid out 
by the group 
a further £770000 2007 £1710000 has been provided for 10 properties 
identified for closure following a rationalisation of the combined property portfolio 
subsequent to the acquisition of your communications
b group capital commitments 
    2008   2007 
    £’000   £’000
contracted but not provided    39 825 31164 
these capital commitments are expected to be settled during the following financial 
year    
c company 
the company had no obligations under operating leases or capital commitments
33 employee share schemes  
the company operates the thus group restricted scheme the thus group bonus 
plan the thus group performance share plan the thus group plc discretionary 
share option scheme and the thus group plc 2006 coinvestment plan details of 
which are explained below in addition the company also recognises the importance 
of encouraging share ownership amongst all employees and to that extent the 
company operates the thus group plc sharesave scheme which provides the 
opportunity for employees to exercise options at the end of a savings contract
thus group restricted scheme  
under this scheme awards were granted to senior employees of the group  
no performance conditions apply onethird of the award may be exercised after  
one year twothirds after two years and the full award after three years if the holder  
of the award leaves the employment of the group the award will lapse 
thus group bonus plan 
the shares awarded to the executives under this plan are of an equivalent value to 
the annual bonus payment the awards which are not subject to any performance 
conditions vest after three years but will be forfeited if the executive leaves the 
employment of the company before the end of the vesting period the company has 
the right to settle the awards in cash rather than shares 
thus group performance share plan 
awards are made under this plan to executive directors and selected employees and 
grants will only become exercisable after three years if demanding performance targets 
are met two performance criteria currently apply to the vesting of performance share 
awards for half of an award of performance shares to vest thus total shareholder 
return tsr compared to that of the constituents of the ftse allshare telecoms sector 
as at the date of the grant is measured over a threeyear period no shares vest where 
the company’s tsr is below the median the minimum proportion of shares that vest at 
the median is 30 all shares vest when the company’s tsr is at the upper decile 
performance is measured over three years with no retesting opportunities the 
remuneration committee must also be satisfied at the time the performance condition 
is met that this is consistent with the achievement of commensurate underlying financial 
performance of the company 
for the remaining half of the performance share awards to vest normalised earnings 
per share eps performance of the company is measured over a threeyear period 
the eps test is set with reference to broker forecasts covering the relevant threeyear 
period the extent to which eps targets are satisfied after three years will be confirmed 
by the remuneration committee
awards made under the performance share plan during the year ended 31 march 
2008 are subject to the following performance conditions measured over a three year 
period beginning the financial year in which the award is made
50 of an award is subject to annual compound growth in ebitda of 15 to 35 
50 is subject to an ebit return on capital of 4 to 8 for the final year of the  
performance period
in both cases 30 of that part of the award vests at the threshold increasing on a 
straightline basis so that there is full vesting at the maximum threshold
thus group plc discretionary share option scheme 
under this scheme market value options can be granted to executive directors and 
selected employees the performance criterion that currently applies to the vesting of 
options is relative tsr measured against the ftse telecommunications sector and the 
ftse mid250 excluding telecommunication companies twothirds of the options vest 
depending on the company’s tsr compared against the telecommunications index 
and onethird depending on the company’s tsr compared against the ftse mid250 
half the options become exercisable when the company’s tsr is at the median 
all the options are exercisable when the company’s tsr is at the upper quartile 
the remuneration committee must also be satisfied that the underlying financial 
performance of the company has improved during the vesting period

63
thus group plc annual report 2008 financial statements
notes to the consolidated and parent company financial statements
for the year ended 31 march 2008
33 employee share schemes – continued 
thus group plc 2006 coinvestment plan 
this plan is a coinvestment arrangement under which eligible employees who are 
selected to participate are invited to contribute shares in the company which they 
currently own or shares for which arrangements have been made to acquire with 
funds provided by the employees to the plan ’deposited shares’ an award will then 
be granted ’matching award’ to allow the participants to acquire further shares the 
matching award will consist of one or both of ’core shares’ and ’performance shares’ 
the number of core shares subject to a matching award cannot exceed one half 
of the number of deposited shares a participant is entitled to the core shares if the 
related deposited shares are left in the plan until the end of a predetermined holding 
period the number of performance shares subject to a matching award cannot 
exceed the number of deposited shares contributed a participant will be entitled to 
some or all of the performance shares if the related deposited shares are left in the 
plan until the end of the holding period and the performance conditions are satisfied
the maximum value of deposited shares that a participant can contribute to the plan 
in any one year will be 25 of their gross annual basic salary the performance 
conditions for the performance shares are that half of each award is subject to the 
performance of group ebitda and the other half is based on group ebit return on 
capital 
for the group ebitdarelated performance condition the annual compound growth 
rate in ebitda must exceed 20 for 15 of the performance shares to vest and rises 
on a straightline basis to 50 vesting for an ebitda growth rate of 35 a year  
or above 
for awards granted during the year ended 31 march 2008 the annual compound 
growth rate for the ebitda – related performance condition is a range of 15 to 35 
for the other half of the performance shares to vest the group’s annual compound 
growth in ebit return on capital requires to exceed certain percentages for 15 of the 
performance shares to vest the annual compound growth must exceed 4 and rises 
on a straightline basis to 50 vesting for an ebit return on capital of 8 or above  
a year
thus group plc sharesave scheme 
under this scheme in normal circumstances share options are exercisable on 
completion of a three or fiveyear saveasyouearn contract as appropriate
closed schemes  
prior to the establishment of thus group plc on the demerger from its former parent 
company thus plc operated a number of share incentive plans pursuant to which 
awards over shares in thus group plc continue to subsist no further awards will be 
made under any of these schemes as the awards were granted before 7 november 
2002 the recognition and measurement principles of ifrs 2 ’sharebased payments’ 
have not been applied to these schemes
the terms and conditions of the grants are as follows
scheme name grant date employees entitled
no of shares 
granted vesting conditions
contractual life 
of options
thus group restricted scheme 010406
19  1107
senior employees
senior employees
3 1 7656
38531
three years’ service
three years’ service
3 years
3 years
thus group bonus plan 280504 executive directors 100281 three years’ service 3 years
thus group performance share plan 280504 executive directors 328947 for one half of the award the company’s tsr must rank 
above the median relative to companies in the ftse all
share telecoms sector the remaining half is determined 
by an eps test
3 years
280607 executive directors  
and selected employees
1 1 88 994 for performance shares one half of the award is subject 
to a performance condition based on the groups ebitda 
and the remaining half of the award is subject to a 
performance condition based on the groups ebit 
return on capital 
3 years
thus group plc discretionary share 
option scheme
280504 executive directors 328947 performance of company’s tsr relative to the ftse 
allshare telecoms sector and the ftse mid250 index 
excluding telecommunication companies
7 years
thus group plc 2006  
coinvestment plan
27 0906 executive directors and  
senior employees
367542
for performance shares one half of the award is  
subject to a performance condition based  
on the group’s ebitda and the remaining  
half of the award is subject to a performance  
condition based on the group’s ebit 
return on capital
3 years
280607 executive directors and  
senior employees
205815 3 years
031207 executive directors and  
senior employees
1 19 124 3 years
thus group plc sharesave scheme 1 10604
270605
170706
140607
all employees
all employees
all employees
all employees
671889
672 9 13
1258502
97480 1
three years’ service
three years’ service
three years’ service
three years’ service
3 years
3 years
3 years
3 years
the number and weighted average exercise prices of share options is as follows
  weighted average  no of weighted average no of
  exercise price £ options  exercise price £ options
  2008 2008 2007 2007
outstanding at the beginning of the year   098  3513887  121  2590361 
forfeited during the year   099 1120883 1 4 1  4 14324
exercised during the year   017 53031 069  605850
granted during the year   059 2527 265 068  1943700 
outstanding at the end of the year   079 4867238 098  3513887
exercisable at the end of the year    6160  5570
the options outstanding at 31 march 2008 have an exercise price in the range of £nil and £100 in total and £105 to £258 per share and a weighted average remaining 
contractual life of 18 years the weighted average share price at the date of exercise during the year ended 31 march 2008 was £184 2007 £142
the fair value of services received in return for share options granted is measured by reference to the fair value of share options granted the estimate of the fair value of services 
received is measured using the blackscholes model for the bonus plan restricted scheme and various sharesave schemes the remaining schemes have been valued using a 
combination of blackscholes and the binomial lattice models
thus group plc annual report 2008

64 33 employee share schemes – continued 
the assumptions used in the models are  
     performance
   restricted coinvestment  coinvestment share sharesave  restricted  coinvestment  sharesave 
  scheme d plan e  plan e  plan e scheme  scheme d   plan e   scheme 
 notes 2008 2008 2008 2008 2008  2007   2007   2007 
fair value per option   £136 £125 £181 £181 £064 £162 £044 £042
share price  £136 £125 £184 £184 £199 £1 62 £1 30 £1 35
exercise price  £1 total for £nil £nil £1 total £1528 £1 total for  £nil £105
  each   consideration  each 
  tranche     tranche 
expected volatility a – – – – 40 – – 40
option life   3 years 3 years 3 years 3 years 3 years 3 years 3 years 3 years
expected dividends b 0 0 0 0 0 0 0 0
riskfree interest rate c – – – – 59 – – 48
a  the expected volatility has been based on the daily share price movements over 
the three years preceding the granting of an award rounded to the nearest 10
b  no dividends have been payable by the company since flotation and it has 
been assumed that this will continue therefore a zero dividend yield has  
been used
c  the riskfree interest rate is the yield on zero coupon uk government bonds on 
terms consistent with the option life   
d  the fair values for the restricted scheme have been calculated to be equal to 
the face value therefore no expected volatilty or riskfree interest rate has been 
quoted in the table above  
e  the performance conditions of the coinvestment plans and performance share 
plan depend upon the performance of the group and are therefore considered 
to be nonmarketbased tests which are excluded from the fair value calculations 
the fair value of these plans has been calculated to be 100 of the face value 
and as a result no values for expected volatility or riskfree interest rate are 
quoted in the table above 
the total expenses recognised for the year arising from sharebased payments are as 
follows
   2008 2007
    £’000  £’000 
equity settled sharebased payment expense   739  1164 
cash settled sharebased payment expense   261 –
   478  1164 
34 contingencies  
a  a sum of £400000 has been placed on deposit as funds for liabilities as 
required by the regulator ofcom for reinstatement of civil construction works by 
local authorities
b under the terms of a particular customer agreement thus plc has entered into an 
on demand bond with the royal bank of scotland in the event of the insolvency 
of the company the maximum sum payable on such an event is determined by 
the date the demand is served by the customer to the royal bank of scotland and 
is detailed below the maximum sum shall not exceed £10000000
    maximum
    sum
    £000 
1 april 2007 until 31 march 2008 inclusive   5000 
1 april 2008 until 31 march 2009 inclusive   10000 
1 april 2009 until 31 march 2010 inclusive   8000 
1 april 2010 until 31 march 201 1 inclusive    6000 
1 april 201 1 until 31 march 2012 inclusive    4000 
1 april 2012 until 31 march 2014 inclusive    2000
the bond expires on 31 march 2014
35 related party transactions
a group
the group has a related party relationship with its directors and executive officers 
and major shareholders all transactions with subsidiaries are eliminated on 
consolidation in these financial statements therefore no disclosure is made concerning 
these items
b company
the company has a related party relationship with its subsidiaries its directors and 
executive officers and major shareholders
c transactions with key management personnel 
the key management personnel compensation is disclosed in note 10 above
d transactions with subsidiaries 
during the year ended 31 march 2008 the company transferred the release 
of the deferred consideration of £7 300000 relating to the acquisition of your 
communications to thus plc following the previous transfer of the cost of the your 
communications investment to the subsidiary this transfer along with other transactions 
between thus group plc and thus plc results in a total loan outstanding at  
31 march 2008 of £70188000
the intercompany loan of £70188000 2007 £78095000 due from thus plc is 
repayable on demand and is interest free however this loan is unlikely to be repaid 
by thus plc within the next 12 months 
e other related party transactions
following the acquistion of your communications in february 2006 united utilities 
plc held 217 of the company’s issued share capital and was therefore considered 
to be a related party from this date following the additional share issue in february 
2007  united utilities plc had a 2263 shareholding in thus group plc at  
31 march 2007 
on 20 june 2007  united utilities plc placed its entire shareholding in thus and from 
this date is no longer considered to be a related party of the group 

65
thus group plc annual report 2008 35 related party transactions – continued
e other related party transactions – continued
the following transactions were carried out with related parties
i sales of services
   group   company 
  ––––––––––––––––––––––––––– –––––––––––––––––––––––––––––
  2008  2007  2008  2007 
   £’000  £’000  £’000  £’000 
united utilities group  3 116 15208  – –
the figures shown for the current year represent sales up to 20 june 2007  only
ii purchases of services 
  2008  2007  2008  2007 
   £’000  £’000  £’000  £’000 
united utilities group  1028 3108  – –
the figures shown for the current year represent purchases up to 20 june 2007  only
iii year end balances arising from salespurchases of services
   group   company 
  ––––––––––––––––––––––––––– –––––––––––––––––––––––––––––
  2008  2007  2008  2007 
 notes  £’000  £’000  £’000  £’000 
receivables from related parties
united utilities group 19 – 3064  – –
payables to related parties
united utilities group 21 – 1 166 – –
these transactions and balances are all at arm’s length and the balances were settled within the group’s normal terms of settlement in relation to trade receivables and payables
iv other balances with related parties
   group   company 
  ––––––––––––––––––––––––––– –––––––––––––––––––––––––––––
  2008  2007  2008  2007 
 note £’000  £’000  £’000  £’000 
other receivables      
balance due from thus plc 19 – – 70188  78095 
v other transactions with related parties
   group   company 
  ––––––––––––––––––––––––––– –––––––––––––––––––––––––––––
  2008  2007  2008  2007 
 notes £’000  £’000  £’000  £’000 
issue of shares to united utilities plc – 2274701 ordinary shares of 25p each 27 – 569  – 569 
shares to be issued to united utilities plc – share issue and revision to estimate 28 – 5500 – 5500
release of deferred consideration to united utilities plc 27b 28 7 300 – 7 300 –
transfer of acquisition of legend communications plc to thus plc 17 – – – 1 2 11 6
transfer of release of deferred consideration for your communications to thus plc 27b 28 – – 7 300 –
transfer of costs between thus plc and thus group plc  – – 607  4047 
under the terms of a relationship agreement entered into between united utilities and thus united utilities was prevented subject to certain specific exceptions from disposing 
of the ordinary shares for a period of 12 months from completion there was also a standstill obligation that prohibited unitied utilities or any other member of its group from 
acquiring any further shares in thus or making or announcing any offer in connection with acquiring further shares for a period of 18 months from the date of completion  
this agreement expired on 26 august 2007 
vi other related party agreements
relationship agreement
in addition to the details disclosed above united utilities was entitled to nominate one nonexecutive director for appointment to the board during the period of this agreement 
on 22 november 2006 martin beesley the finance director of united utilities water plc and united utilities electricity plc was appointed as a nonexecutive director martin 
beesley resigned from the thus group plc board on 25 june 2007 following united utilities plc disposal of its shareholding in the company
the purchase of goods and services includes costs covered by certain agreements between thus plc and united utilities including telecoms and supply agreements and 
agreements to lease fibre and ducts on acquisition the group also entered into a transitional services agreement for financial and payroll processing wayleave services 
accounting software and switchboard operator agreements
vii guarantees
thus group plc has granted security by way of a deed of pledge of its shares in the capital of thus plc in favour of the royal bank of scotland plc under the terms of  
the loan agreement for the secured bank loans thus group plc has guaranteed thus plc’s obligations the amount outstanding at 31 march 2008 was £100000000 
2007 £53000000
financial statements
notes to the consolidated and parent company financial statements
for the year ended 31 march 2008
thus group plc annual report 2008

66 36 accounting estimates and judgements
critical accounting judgements in applying the group and company 
accounting policies and key sources of estimation uncertainty
the preparation of financial statements in conformity with ifrss as adopted by the eu 
requires the use of accounting estimates and assumptions it also requires the directors 
to exercise their judgement in the process of applying the group and company 
accounting policies estimates assumptions and judgements are continually evaluated 
based on available information and experience as the use of estimates is inherent  
in financial reporting actual results could differ from these estimates the areas 
involving a higher degree of judgement or complexity which have a significant risk 
of causing material adjustments to the carrying amounts of assets and liabilities are 
described below 
revenue 
the group earns revenue from a number of different products and services some of 
which are delivered under bespoke contracts in applying the group’s accounting 
policies in respect of revenue recognition a significant degree of judgement and 
estimation may be required in interpreting contracts and estimating values to be used  
in calculating revenue and associated costs in each accounting period
interconnect income and payments to other telecommunications 
operators 
in certain instances thus relies on other operators to measure the traffic flows 
interconnecting with the group’s networks estimates are used in these cases to 
determine the amount of income receivable from or payments that the group need 
to make to these other operators the prices at which these services are charged are 
often regulated and are subject to retrospective adjustment and estimates are used in 
assessing the likely effect of these adjustments
providing for doubtful debts
thus provides services to substantially all customers on credit terms certain debts 
will not be paid through the default of a small number of customers estimates based 
on the group’s historical experience are used in determining the level of debts that will 
not in the opinion of the directors be collected these estimates include such factors 
as the current state of the uk economy and particular industry issues
fair values
estimating the fair value of assets and liabilities acquired on acquisition requires 
judgement such fair values have been computed as follows 
tangible fixed assets have been valued at their direct replacement cost less an 
economic obsolescence factor in addition this valuation has been crosschecked 
against projected cash flows from cash generating units  
intangible fixed assets for customer relationships have been valued using a residual 
earnings approach which involves deducting contributory asset charges from 
discounted cash flow projections to leave a value attributable to customers
cash flow projections are based on assessments of future activities and market 
conditions and actual activities and market conditions may differ from those forecast 
resulting in actual cash flows being different from those projected tangible and 
intangible asset valuations are subjective to the extent actual cash flows differ from 
projected cash flows 
the fair value of working capital amounts is based upon estimated anticipated 
recoverable amounts
useful lives for property plant and equipment
the plant and equipment in thus’ networks is long lived with cables and switching 
equipment operating for over ten years and underground ducts being used for 
decades the annual depreciation charge is sensitive to the estimated service lives 
allocated to each type of asset asset lives are assessed annually and changed when 
necessary to reflect current thinking on their remaining lives in light of technological 
change prospective economic utilisation and physical condition of the assets 
concerned 
impairment
thus tests goodwill annually for impairment in addition thus performs impairment 
testing of assets on an annual basis where there is an indication that impairment may 
exist in performing these impairment tests management’s judgement is required in 
preparing future cash flow projections and then assessing an appropriate discount  
rate to be applied to these cash flows 
the cost of capital used to discount future pretax cash flows can have a significant 
effect on the calculation of the recoverable amount the cost of capital which is 
expressed as a percentage is derived from the group’s posttax weighted average  
cost of capital specific to that cash generating unit 
future cash flows are based on formally approved cash flow projections for a  
tenyear period which for the first five years are based on past experience and future 
expectations and for the next five years are based on growth rates consistent with uk 
growth forecasts these are then extrapolated in perpetuity using a nominal longterm 
growth rate as future cash flows may deviate to some degree from forecasts the 
results of the impairment review are sensitive to any such changes
property arrangements 
as part of the property rationalisation programme a number of surplus properties have 
been identified and during the year some of these properties have been successfully 
disposed of efforts continue to be made to sublet the remaining sites it is recognised 
that this may not be possible immediately in the current economic environment 
estimates have been made of the cost of vacant possessions and any shortfall arising 
from the sublease rental income being lower than the lease costs being borne by 
thus any such cost or shortfall has been recognised as a provision
deferred tax
deferred tax assets and liabilities require management judgement in determining the 
amounts to be recognised in particular judgement is used when assessing the extent 
to which deferred tax assets should be recognised with consideration given to the 
timing and level of future taxable income as future taxable income is likely to deviate 
to some degree from forecasts the amount of the deferred tax assets carried needs to 
be reviewed in the light of such variations 
postretirement benefits 
the group’s defined benefit pension scheme is assessed annually in accordance with 
ias 19 the accounting valuation which was based on assumptions determined with 
independent actuarial advice resulted in a surplus of £38 million being recognised 
on the balance sheet at 31 march 2008 2007 surplus £08 million the size of the 
surplusdeficit is sensitive to the market value of the assets held by the scheme and to 
actuarial assumptions which include price inflation pension and salary increases the 
discount rate used in assessing actuarial liabilities mortality and other demographic 
assumptions and the levels of contributions further details are included in note 31 to 
the consolidated financial statements
37 subsequent events
on 30 april 2008 the group completed the disposal of its interest in a number of 
customer contracts for telephony services to daisy communications plc the proceeds 
for the disposal are expected to be no less than £2300000 dependent upon 
customer churn over the period to 30 june 2008

67
thus group plc annual report 2008 five year financial summary 
    ifrs uk gaap 
 ––––––––––––––––––––––––––––––––––––––––––––––––––––––– ––––––––––––––
   year ended   year ended 
 year ended  year ended  31 march  year ended  31 march 
 31 march  31 march  2006  31 march  2004 
 2008  2007  restated  2005  restated
results  £’000  £’000  £’000  £’000  £’000 
revenue  576200  532693  349987  360016  332372 
earnings before interest tax depreciation including impairment and amortisation ebitda  570 1 9  41293  28778  37 758  43563 
restructuring and other nonrecurring costs  – 1570  10406  8126  –
exceptional items uk gaap only  – – – – 266
loss before tax and gain on sale of discontinued operations  2774 15085 28332 42101 26749
lossprofit after tax but before gain on sale of discontinued operations  6190 54514  28332 42842 26961
lossprofit for the financial year  4204 83928  26183 43156 26961
free cash flow  6002 25758 1 11 15  3749  2619
capital expenditure on tangible fixed assets  56154  57 697  28295  351 10  411 18 
net debt  31887 25797 26260 30990 35354
net assets  461201  471219  385647  332787  379973 
ratios and statistics     
basic lossearnings per ordinary share pence – restated for share consolidation  231 4663  1899 3242 2030
employees 
number of employees fulltime equivalent at 31 march     
thus group plc  1828 1705  1930  1421 2089 
the financial summary for the year ended 31 march 2004 is prepared using uk accounting uk gaap standards as it is not practicable to restate the amounts prior to the 
transition date to ifrs the main differences between ifrs and uk gaap in terms of the group’s reported numbers relate to the basis on which
– defined benefit pension schemes and sharebased payments are accounted for in all other periods
thus group plc annual report 2008

68 ancillary information
notice of annual general meeting
this notice is important and requires your immediate attention
if you are in any doubt as to the action you should take you should consult 
immediately your stockbroker bank manager solicitor accountant or other 
independent financial advisor authorised under the financial services and 
markets act 2000
if you have sold or otherwise transferred all your shares in the company 
please send this notice and the accompanying documents to the purchaser or 
transferee or to the stockbroker bank or other agent through whom the sale 
or transfer was effected for transmission to the purchaser or transferee 
notice is hereby given that the annual general meeting of the company for 2008 
will be held on thursday 31 july 2008 at 1 100 am at the radisson sas hotel  
301 argyle street glasgow g2 8dl for the following purposes
ordinary business
1  to receive and adopt the report of the directors and financial statements for the 
year ended 31 march 2008
2  to approve the directors’ remuneration report for the year ended 31 march 2008
3 to elect alison wood as a director
4 to reelect philip rogerson as a director
5 to reelect john maguire as a director
6  to reappoint kpmg audit plc as auditors of the company and to authorise the 
directors to fix their remuneration
special business
7  to consider and if thought fit to pass the following resolution which will be 
proposed as an ordinary resolution
  that the board be and it is hereby generally and unconditionally authorised in 
substitution for the authority conferred on it by all subsisting authorities 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 
£361 162375 which authority shall expire at the conclusion of the next annual 
general meeting of the company after the passing of this resolution unless 
previously revoked or varied by the company in general meeting or if earlier 30 
september 2009 save that 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 board may allot relevant securities in pursuance of such an 
offer or agreement as if the authority conferred hereby had not expired
8   to consider and if thought fit to pass the following resolution which will be 
proposed as a special resolution 
  that the board be and it is hereby empowered pursuant to section 95 of the 
companies act 1985 to allot equity securities within the meaning of section 
94 of the said act for cash pursuant to the authority conferred by the previous 
resolution as if subsection 1 of section 89 of the said act did not apply to any 
such allotment provided that this power shall be limited to
 a  the allotment of equity securities in connection with a rights issue open 
offer or any other preemptive offer in favour of ordinary shareholders and 
in favour of holders of any other class of equity security in accordance 
with the rights attached to such class where the equity securities 
respectively attributable to the interests of such persons on a fixed record 
date are proportionate as nearly as may be to the respective numbers 
of equity securities held by them or are otherwise allotted in accordance 
with the rights attaching to such equity securities subject in either case 
to such exclusions or other arrangements as the board may deem 
necessary or expedient to deal with fractional entitlements or legal or 
practical problems arising in any overseas territory the requirements of any 
regulatory body or stock exchange or any other matter whatsoever and
 b  the allotment otherwise than pursuant to subparagraph a above of 
equity securities up to an aggregate nominal value of £2287 90450  
or if less 5 of the issued ordinary share capital from time to time
  and shall expire at the conclusion of the next annual general meeting of the 
company after the passing of this resolution or if earlier 30 september 2009 
save that the company may before such expiry make an offer or agreement 
which would or might require equity securities to be allotted after such expiry and 
the board may allot equity securities in pursuance of such an offer or agreement 
as if the power conferred hereby had not expired 
9  to consider and if thought fit to pass the following resolution which will be 
proposed as a special resolution
  that the company be generally and unconditionally authorised for the purposes 
of section 166 of the companies act 1985 to make market purchases within the 
meaning of section 1633 of that act of ordinary shares of 25 pence each in the 
capital of the company upon such terms and in such manner as the directors of 
the company shall determine subject to the following restrictions and provisions 
 a   the maximum aggregate number of ordinary shares to be purchased pursuant 
to the authority granted by this resolution shall be 27 436551
 b  the minimum price exclusive of expenses which may be paid for an ordinary 
share is an amount equal to the nominal value of an ordinary share 
 c  the maximum price exclusive of expenses which may be paid for an 
ordinary share cannot be more than an amount equal to the higher of
  i  105 of the average of the closing middle market price for an ordinary 
share as derived from the london stock exchange daily official list 
for the five business days immediately prior to the day the purchase is 
made and
  ii  the price stipulated by article 51 of commission regulation ec no 
22732003 the buyback and stabilisation regulation
 d  unless previously revoked or varied this authority shall expire at the 
conclusion of the next annual general meeting of the company or if earlier 
on 31 december 2009 and
 e  the company may make a contract or contracts to purchase ordinary shares 
before the expiry of this authority which will or may be executed wholly or 
partly after the expiry of this authority and may make a purchase of ordinary 
shares pursuant to any such contract or contracts
 by order of the board registered office
 david macleod  12 berkeley square
 secretary  99 berkeley street
 4 june 2008  glasgow g3 7hr
i  pursuant to regulation 41 of the uncertificated securities regulations 2001 
members will be entitled to attend and vote at the meeting if they are registered 
on the company’s register of members by 600 pm on 29 july 2008 or by  
600 pm two days prior to the date of any adjournment of the meeting changes 
to entries on the register of members after that time shall be disregarded in 
determining the rights of any person to attend and vote at the meeting 
ii  any member entitled to attend and vote at the meeting is entitled to appoint a 
proxy or proxies to attend a proxy need not be a member of the company a 
separate form of proxy is enclosed completing and returning a form of proxy will 
not prevent any member from attending the meeting in person and voting should 
that member so wish if you are not a member of the company but you have been 
nominated by a member of the company to enjoy information rights you do not 
have a right to appoint any proxies under the procedures set out in this paragraph 
please read paragraph vii below 
iii  members may register their proxy appointments or voting directions electronically 
via the wwwshareviewcouk website where full details of the procedure are 
given members will need the reference number card id and account number set 
out on the enclosed form of proxy if more than one proxy appointment is returned 
relating to any share either by paper or by electronic communication the proxy 
received last by the registrar before the latest time for receipt of proxies will take 
precedence the company will not accept any communication that is found to 
contain a computer virus
iv   crest members who wish to appoint a proxy or proxies through the crest 
electronic proxy appointment service may do so by using the procedures described 
in the crest manual crest personal members or other crest sponsored 
members and those crest members who have appointed a voting service 
providers should refer to their crest sponsor or voting service providers who  
will be able to take the appropriate action on their behalf
  

69
thus group plc annual report 2008   in order for a proxy appointment or instruction made using the crest service 
to be valid the appropriate crest message a ’crest proxy instruction’ 
must be properly authenticated in accordance with euroclear uk and ireland 
limited’s ’eui’s’ specifications and must contain the information required for 
such instructions as described in the crest manual the message regardless 
of whether it constitutes the appointment of a proxy or an amendment to the 
instruction given to a previously appointed proxy must in order to be valid be 
transmitted so as to be received by equiniti id 7ra01 by no later than 1 100 am 
on 29 july 2008 no such message received through the crest network after 
this time will be accepted for this purpose the time of receipt will be taken to be 
the time as determined by the timestamp applied to the message by the crest 
applications host from which our registrars are able to retrieve the message by 
enquiry to crest in the manner prescribed by crest after this time any change 
of instructions to proxies appointed through crest should be communicated to the 
appointee through other means
  crest members and where applicable their crest sponsors or voting service 
providers should note that eui does not make available special procedures 
in crest for any particular messages normal system timings and limitations 
will therefore apply in relation to the input of crest proxy instructions it is the 
responsibility of the crest member concerned to take or if the crest member 
is a crest personal member or sponsored member or has appointed a voting 
service providers to procure that his crest sponsor or voting service provider 
take such action as shall be necessary to ensure that a message is transmitted 
by means of the crest system by any particular time in this connection crest 
members and where applicable their crest sponsors or voting service providers 
are referred in particular to those sections of the crest manual concerning 
practical limitations of the crest system and timings
  the company may treat as invalid a crest proxy instruction in the circumstances 
set out in regulation 355 a of the uncertificated securities regulations 2001
v  in order to facilitate voting by corporate representatives at the meeting 
arrangements will be put in place at the meeting so that a 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 b 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 a above
vi  as at 500 pm on 4 june 2008 the company’s issued share capital comprised 
183032367 ordinary shares of 25p each each ordinary share carries the right 
to one vote at a general meeting of the company and therefore the total number 
of voting rights in the company as at 500 pm on 4 june 2008 is 183032367 
vii  if you are a person who has been nominated under section 146 of the 
companies act 2006 to enjoy information rights nominated person
you may have a right under an agreement between you and the member of  
the company who has nominated you to have information rights relevant 
member to be appointed or to have someone else appointed as a proxy for 
the meeting
if you either do not have such a right or if you have such a right but do not  
wish to exercise it you may have a right under an agreement between you 
and the relevant member to give instructions to the relevant member as to 
the exercise of voting rights
your main point of contact in terms of your investment in the company  
remains the relevant member or perhaps your custodian or broker and 
you should continue to contact them and not the company regarding any 
changes or queries relating to your personal details and your interest in the 
company including any administrative matters the only exception to this is 
where the company expressly requests a response from you
notes
resolution 1
the directors are required by law to present to the meeting the financial statements 
and the report of the directors and auditors for the year ended 31 march 2008
resolution 2
the shareholders are being asked to vote on the remuneration report relating to the 
directors and senior executives the vote is advisory and the directors’ entitlement to 
remuneration is not conditional on the resolution being passed 
resolutions 3–5
the articles of association require that directors stand for election by the shareholders 
at the first annual general meeting following their appointment and also that onethird 
of the directors retire at every annual general meeting the board following its 
evaluation of the performance of those directors standing for election and reelection 
confirms that each of those directors performs effectively and demonstrates commitment 
to the role the biographical details of each of the directors who are offering 
themselves for election or reelection are shown on pages 26 and 27  the election  
and reelection of those directors shall subject to the passing of the relevant 
resolutions take effect immediately upon the conclusion of the meeting
resolution 6
the reappointment of the auditors is proposed following assessment of the audit 
service by the audit committee the board considers the auditors to be effective and 
independent in their role
resolution 7
under the companies act 1985 section 80 the directors of a company may only 
allot unissued shares if authorised to do so passing this resolution will continue the 
directors’ flexibility to act in the best interests of shareholders when opportunities arise 
by issuing new shares 
in resolution 7  the company is seeking authority to allot shares with a nominal value 
of up to £361 162375 which represents approximately 14446495 ordinary shares 
of 25 pence each or approximately 8 of the company’s issued ordinary share 
capital the directors intend to use this authority which will lapse at the conclusion of 
the next annual general meeting of the company to be held in 2009 or if earlier 
30 september 2009 for general corporate purposes 
resolution 8
if shares are to be offered for cash the companies act 1985 requires that those 
shares are offered first to the existing shareholders in proportion to the number of shares 
they hold at the time of the offer however it may sometimes be in the interests of the 
company for the directors to allot shares other than to shareholders in proportion to 
their existing holdings at last year’s annual general meeting shareholders authorised 
the board subject to specified limits
to allot shares in connection with a rights issue defined in summary as an offer  
of equity securities to shareholders which is open for a period decided by the 
board subject to any limits or restrictions which the board thinks are necessary or 
appropriate
to allot shares not in connection with a rights issue up to a specific amount so that  
the preemption requirement does not apply to the allotments of shares for cash up 
to that amount
this authority requires to be renewed annually the directors will be empowered 
by resolution 8 to allot equity securities within the meaning of section 94 of the 
companies act 1985 for cash without complying with the statutory preemption rights 
of shareholders under section 89 of the companies act 1985 up to a maximum 
nominal amount of approximately £2287 90450 this disapplication is limited to 
allotments made to ordinary shareholders and holders of any other class of equity 
security in proportion as nearly as may be to their holdings and otherwise to 
allotments up to a maximum of 9151618 ordinary shares representing approximately 
5 of the company’s issued ordinary share capital 
this means that the interests of existing shareholders are protected if a share issue is 
not a rights issue the proportionate interest of existing shareholders could not without 
their agreement be reduced by more than 5 of the value of the new shares in cash 
issued to new shareholders by reference to the issued share capital at the date of 
this notice there are no current plans to allot shares except in connection with the 
employee share schemes
ancillary information
notice of annual general meeting – continued
thus group plc annual report 2008

70 resolution 9
this resolution which is being proposed as a special resolution will give the directors 
authority to make market purchases of the company’s ordinary shares up to a 
maximum aggregate number of 27 436551 ordinary shares representing 1499 of 
the share capital of the company in issue at 4 june 2008 this resolution authorises 
the company to pay a maximum price per share of an amount equal to the higher 
of i 105 of the average closing middle market price for an ordinary share for the 
five dealing days preceding any such purchase and ii the price stipulated by article 
51 of commission regulation ec no 22732003 the buyback and stabilisation 
regulation being the higher of the last independent trade for an ordinary share or 
the highest current independent bid for an ordinary share as derived from the trading 
venue where the purchase is carried out 
any shares repurchased by the company under the authority would be cancelled 
there is currently no intention to hold such shares in treasury the company did not 
hold any ordinary shares in the capital of the company in treasury at 4 june 2008 
being the latest practicable date prior to the publication of this notice except for 
1618548 marketpurchased ordinary shares held in the employee share trust in 
connection with employee share schemes
the directors have no present intention of exercising on behalf of the company the 
authority to purchase the company’s ordinary shares the directors would only cause 
the company to purchase shares if in their opinion the expected effect would be to 
result in an increase in earnings per share and would benefit shareholders generally 
the directors are making no recommendation as to whether shareholders should sell 
their shares in the company
at 4 june 2008 being the last practicable date prior to the publication of this notice 
there were options outstanding over 4879538 ordinary shares in the capital of the 
company which represent approximately 266 of the share capital of the company 
in issue at that date if the authority to purchase the company’s ordinary shares 
was exercised in full the shares issued pursuant to these options would represent 
approximately 313 the company’s issued share capital
recommendation of the board of directors in respect of all  
items of business
the board is of the opinion that all of the proposed resolutions are in the best interests 
of shareholders as a whole and of the company accordingly the board recommends 
that you vote in favour of each resolution as the directors intend to do in respect of 
their own beneficial shareholdings held at the time of the annual general meeting

71
thus group plc annual report 2008 1  the notice of meeting is being issued to all shareholders enclosed with this 
notice you will find an attendance card and a form of proxy
2 if you are attending the meeting you should bring the attendance card
3  a shareholder is entitled to appoint one or more proxies to attend speak and vote 
on their behalf a proxy need not be a shareholder if you wish to appoint a proxy 
or proxies you must complete the enclosed form of proxy which must be deposited 
with the registrars equiniti the causeway worthing west sussex bn99 6da 
not later than 1 100 am on 29 july 2008 if you do not wish the form of proxy  
to be seen by anyone except the company and its registrars you should post it  
in an envelope to equiniti freepost the causeway worthing west sussex 
bn99 6da
  alternatively if you wish to register your proxy appointment electronically through 
the internet please use wwwsharevotecouk where details of the procedure are 
provided you will have to disclose the reference number card id and account 
number shown on the enclosed proxy form
  crest members should refer to the notice of annual general meeting on pages 69 
to 71 for instructions regarding the crest electronic proxy appointment service
4  copies of the executive directors’ service contracts letters of appointment for 
the nonexecutive directors a statement of all transactions of directors and of 
their families in the share capital of the company for the year ended 31 march 
2008 and a copy of the company’s memorandum and articles of association 
will be available for inspection at the company’s registered office during normal 
business hours on each day except saturday sunday and any public holidays 
from the date of the notice of meeting until 31 july 2008 and also at the place 
of the agm from 1030 am on the day of the meeting until the conclusion of 
the meeting copies of the same will also be available on the same days at the 
offices of the company’s solicitors biggart baillie dalmore house 310 st vincent 
street glasgow g2 5bb
introduction
after his opening remarks and following a presentation from the chief executive 
the chairman will explain in detail the procedures for the conduct of the meeting 
particularly for asking questions and voting on resolutions the resolutions which are  
set out in the notice of annual general meeting will then be put to the meeting
how to ask questions
at the meeting shareholders will be given the opportunity to ask questions from 
question points which will be clearly indicated
at each question point a member of staff will be available to help you please tell  
the member of staff the nature of your question and give your name and address  
you may be asked to wait until called upon to speak please remember to state your 
name before asking your question
how to vote
you should raise above your head your voting card which you will receive when 
you register indicating that you are voting either for or against each resolution as it 
is put to the vote by the chairman only shareholders authorised representatives of 
corporate shareholders or proxies may vote on a show of hands if you are attending 
as a corporate representative for a shareholder you will receive an appropriate 
identification card at registration
time
the doors will open at 930 am and the meeting will start promptly at 1 100 am
camerasvideo or tape recordersmobile phones
no cameras video recorders or tape recorders will be allowed into the meeting 
mobile phones must be switched off during the meeting
registration
to ensure your entrance to the meeting is dealt with promptly please bring your 
attendance card with you and register at the registration desk inside the hotel
customer enquiries
company personnel will be available if you have any questions as a customer of the 
company
shareholder information
if you have any questions concerning your shareholding please speak to the staff at 
the shareholders’ enquiry desk
disabled persons
special arrangements have been made to offer every assistance to people with 
disabilities if you have a companion to assist you they will be admitted to the meeting 
as a guest guide dogs will also be permitted the auditorium has an induction loop 
system for the deaf or hard of hearing and your hearing aid should be switched to the 
t position
first aid
first aid facilities are available ask any member of staff for assistance
emergency precautions
an announcement will be made if there is a fire warning or other emergency 
emergency exits are marked clearly around the auditorium in case of a medical 
emergency please contact a member of staff
refreshments
refreshments will be available between 930 am and 1050 am
important
if you have any questions about the meeting or if you need any assistance please 
telephone the annual general meeting enquiry line on 0141 566 3127 from monday 
30 june 2008 during normal working hours
ancillary information
general information for shareholders attending the annual general meeting
thus group plc annual report 2008

72 thus group plc delivers advanced 
telecommunication services to large 
business customers and public sector 
organisations throughout the uk  
it tailors these services to suit small  
and midsized businesses through  
its demon branded product range
our objective is to be the preeminent 
alternative telecommunication provider  
for business customers in the uk
1  financial highlights
2  our strategy structure and markets
4  thus at a glance
29  corporate governance report
32  directors’ remuneration report
6 what makes thus different
8 new business won
10 our journey to profit
37   independent auditors’ report to  
the members of thus group plc 
38  consolidated income statement
39   consolidated statement of recognised 
income and expense
40   group and parent company  
balance sheets
41   consolidated and parent company 
statement of cash flows
42   notes to the consolidated and parent 
company financial statements 
68  five year financial summary
12  chairman’s statement
13 chief executive’s review
14 financial review
16 measuring our success
18 other financial issues
20 principal risks and uncertainties
22 employees
24 environment and community
26  board of directors
28 other information
69  notice of annual general meeting
72   general information for shareholders 
attending the annual general meeting
73  shareholder and contact information
1–5
overview
61 1
strategic progress  
and success
1228
directors’ report
2936
corporate governance
3768
financial statements
6973
ancillary information
find out more at wwwthusnetannualreport2008

thus group plc annual report 2008
73
ancillary information
shareholder and contact information
analysis of shareholders as at 31 march 2008
 number of  numbers
range of holdings shareholders of shares
1–100 287 526 5402914 
101–200 12694 1790592
201–600 8003 2793030
601–1000 1950 1601597
1001–5000 2208 4475093
5001–100000 479 9227 462
100001 and above 120 157 741679
financial calendar
31 july 2008 annual general meeting
november 2008  interim results for the six months ended 30 september 2008
may 2009  preliminary results for the year ended 31 march 2009
annual general meeting
the annual general meeting will be held at the radisson sas hotel 301 argyle 
street glasgow g2 8dl on thursday 31 july 2008 at 1 100 am details of the 
resolutions to be proposed at the annual general meeting are contained in the 
notice of annual general meeting on pages 69 to 71
dividend
the directors have not recommended the payment of a dividend for the year ended 
31 march 2008
listing
ordinary shares of thus group plc have been admitted to the official list of the  
uk listing authority and are traded on the london stock exchange
share price
the share price is available from the thus website at wwwthusnet and in national 
newspapers
shareholder administration
any queries relating to the administration of shareholdings such as change of 
address change of ownership and amalgamation of multiple accounts should be 
referred to the registrar
equiniti
the causeway
worthing
west sussex
bn99 6da
tel 0871 384 2124 
tel 0871 384 2255 for textelhard of hearing
fax 0871 384 2100
 calls to this number are charged at 8p per minute from a bt landline 
other telephony providers costs may vary
share dealing 
thus group’s shares may be bought or sold at competitive rates for further details 
please contact stocktrade on 0845 601 0995 quoting lowc0078 alternatively 
please contact equiniti on 0871 384 2020 or at wwwshareviewcouk
sharegift
sharegift is an independent registered charity which provides a free service for 
shareholders wishing to give small holdings of shares to benefit charitable causes  
it may be especially useful for those who wish to dispose of a small parcel of shares 
which would cost more to sell than they are worth there are no capital gains tax 
implications on gifts of shares to charity and it is also possible to obtain income tax 
relief further information can be obtained at wwwsharegiftorg or from the thus 
shareholder helpline on 0871 384 2124
contact information
secretary and registered office
david macleod
thus group plc
12 berkeley square
99 berkeley street
glasgow
g3 7hr
registered number sc 226738
for enquiries relating to the company’s operations and performance please contact 
either
investor relations  corporate communications
thus group plc  thus group plc
12 berkeley square  12 berkeley square
99 berkeley street  99 berkeley street
glasgow  glasgow
g3 7hr  g3 7hr
tel 0141 566 3176  tel 0141 566 3642
thus’ services
information about thus’ services can be found on the thus website at wwwthusnet thus group plc
12 berkeley square
99 berkeley street
glasgow g3 7hr
wwwthusnet
thus group plc annual report 2008
thus group plc 
annual 
report
2008 thus group plc 
summary  
annual report
2008 thus group plc delivers advanced 
telecommunication services to large business 
customers and public sector organisations 
throughout the uk it tailors these services  
to suit small and midsized businesses through 
its demon branded product range
our objective is to be the preeminent 
alternative telecommunication provider  
for business customers in the uk
1  financial highlights
2  our strategy and markets
4 thus at a glance
24  summary corporate  
governance report
25   summary directors’ 
remuneration report
6 what makes thus different
8 new business won
10 our journey to profit
28   statement of the independent 
auditors to the members of 
thus group plc
29   summary consolidated  
income statement
29   summary consolidated 
statement of recognised  
income and expense
30  summary group and parent 
company balance sheets
31   summary consolidated 
statement of cash flows 
32  notes to the summary  
financial statement
12  chairman’s statement
13 chief executive’s review
14 financial review
16 measuring our success
18 employees 
20 environment and community
22  board of directors
33   notice of annual general 
meeting
36   general information for 
shareholders attending the 
annual general meeting
37   shareholder and contact 
information
1–5
overview
6–11
strategic progress  
and success
12–23
summary directors’ 
report
24–27
corporate governance
28–32
summary
financial statement
33–37
ancillary information
find out more at wwwthusnetannualreport2008 overview
financial highlights
1
£40m  £1 3 5 m
operating profit 
3
£60m  £1 9 7 m
free cash flow 
4
£ 5 7 0 m 33
ebitda
2
£576  2 m 8
revenue
1  represents continuing operations and excludes demon 
netherlands and contact centre
2  earnings before interest tax depreciation including impairment 
amortisation and restructuring costs  
see note 2 to the summary financial statement
3  operating profitloss before restructuring costs
4  operating cash after interest taxation and capital expenditure
ebitda
2
 £m
5 7 0
429
3 76
2008
2007
2006
operating profitloss
3
 £m
free cash flow 
4
 £m
40
2007
2006
2008
95
 11 6
2007 257
11  1
revenue £m
5762
5327
3500
2008
2007
2006
2008 60
2006
3500
thus group plc summary annual report 2008

1 overview
our strategy and markets
our objective is to be the preeminent 
alternative telecommunication provider  
for business customers in the uk
our principal strategies to achieve this objective have 
focused around
 deployment of an advanced national next
generation telecommunications network  
this allows us to improve our control over the 
quality of our service delivery lower our ongoing 
traffic delivery costs and control the rate of  
service evolution
 development and sale of a comprehensive 
service portfolio capable of supporting business 
customers through the transition from legacy to 
ipbased and converged telecommunications
 attainment of consistently high levels of quality  
in our service delivery
 achievement of scale and operating leverage 
across our network and supporting systems
focused
our market
market structure
twentyfive years after liberalisation 
the fixed line business market in the uk 
remains dominated by the incumbent 
provider bt 
although many infrastructurebased 
market entrants have emerged 
none has yet developed sufficiently 
to deliver sustained growth and 
meaningful returns in particular  
an overinvestment in legacy networks 
has resulted in an oversupply 
of legacy services and inhibited 
competitors from developing sufficient 
scale to thrive 
the transition to nextgeneration 
services has put additional pressure  
on established revenue and margin 
from legacy services for all operators 
most suppliers now face significant 
network investment to enable them to 
offer nextgeneration services thus 
made this investment when it put in 
place a nextgeneration network as 
part of its national network rollout in 
the early part of the decade
thus continues to invest judiciously 
to increase its capabilities further 
maximise the leverage of its assets 
and deliver future growth and 
operating efficiencies thus is 
therefore well positioned to benefit as 
demand consolidates around market 
participants with nextgeneration 
capability over the longer term

2
thus group plc summary annual report 2008 regulation
in 2005 communications regulator 
ofcom completed its strategic review 
of telecommunications culminating 
in a new regulatory settlement for the 
industry the new settlement continues 
to support infrastructurebased 
competition but seeks to promote 
equality of access to those parts of 
the bt network where investment 
in competing infrastructure is not 
sustainable
a new bt division called openreach 
was created to provide access to 
these regulated services although bt’s 
customers suffered significant disruption 
following the creation of openreach 
ofcom is now taking action to impose 
a service level guarantee regime on 
openreach which should lead to 
improved service performance
thus remains optimistic that the 
regulatory settlement will eventually 
enhance competition but continued 
vigilance will be required to ensure 
bt does not foreclose competition 
as it implements its nextgeneration 
network
financial targets
following heavy upfront investment 
in network rollout our financial plan 
is focused on delivering a return on 
capital employed greater than our 
weighted average cost of capital  
key longterm financial targets for  
the group include
the group has achieved three 
important financial milestones moving 
ebitda
4
 positive in 200102 free 
cash flow
5
 positive in 200405 and 
delivering our first operating profit in 
200708
 1  5 2x
asset turnover
3
c1 0
capital investment revenue
 20
ebitda
4
 revenue
market size and service transition
the total uk business telecoms market 
is estimated at £123b
1
 or excluding 
business spending on mobile services 
is estimated at £65b
1
 down from 
£68b
1
 the previous year the 
fixed line segment is experiencing 
a transition in demand patterns 
in particular demand is moving 
away from traditional or legacy 
telecommunication services including 
fixed switched voice frame relay and 
atm data as well as narrowband 
internet access towards next
generation ipbased services such as 
broadband ethernet mpls ip virtual 
private networks and voice over ip
market share
thus must continue to build market 
share successfully in order to meet 
our longerterm objectives based 
on continuing operations
2
 revenue 
growth thus improved its estimated 
market share to 87 during the year 
reflecting our success in winning new 
business and extending relationships 
with existing customers
1 source ofcom ‘the communications market 2007’ figures have been restated from  
the 2006 communications market report by ofcom to reflect more accurate data
2 excludes demon netherlands
3 ratio of revenue to property plant equipment and intangible assets
4 earnings before interest tax depreciation including impairment and amortisation
5 operating cash after interest taxation and capital expenditure
corporate data services internet noncorporate fixed voice mobile
business spending on telecom services
1 
£b
58 27
51 26
45 25 06
2006
2005
2004
41 23 07 2003
37 22 07
35
38
42
46
49 2002
03
04
thus group plc summary annual report 2008

3 overview
thus at a glance
managed solutions
data and telecoms
internet
mobile
summary of services
our managed solutions portfolio gives customers access 
to the knowledge skills and experience that we offer as 
an operator of a stateoftheart network without the need 
for them to maintain these resources inhouse our experts 
can help customers to plan deploy optimise manage and 
run their network infrastructure allowing them to focus on 
their core business improve operational efficiency and 
reduce operating and capital expenditure 
thus is focused on the provision 
of fixed line telecommunication 
services to large business customers 
and public sector organisations 
while tailoring services to suit  
small and midsized businesses 
under the demon brand
continuing operations
thus has four established business segments  
comprising managed solutions data and telecoms 
internet and mobile
managed solutions are run as a separate unit within thus 
they comprise large corporate accounts with complex 
service needs typically combining delivery of several 
different standard services an element of outsource to 
thus and longer than average contract duration 
in contrast the data and telecoms internet and mobile 
segments record revenue and results for more standard 
product sales to a wider customer base including corporate 
small and midsized customers channel resellers and other 
telecommunication companies
within each segment the principal costs comprise 
payments to other telecommunication companies for 
interconnect and use of their network to collect and deliver 
services to thus customers other directly variable costs 
directly attributable selling distribution and administrative 
costs and depreciation on assets directly attributable to  
that segment
however as the majority of services are sold provisioned 
and run from a unified infrastructure thus maintains a 
large pool of central costs in 2008 these costs reduced  
by 7 to £1087m
1
 2007 £1 17 2m
1
 and comprised 
£412m of depreciation impairment and amortisation  
2007 £434m £294m of network operations and 
maintenance costs 2007 £27 3m and £381m of 
corporate overheads 2007 £465m
1  excludes £16m of restructuring costs in 2007 
2  segmental operating profit excludes  
central costs not allocated to individual segments
summary of services
thus’ comprehensive portfolio of voice and data 
services is backed by our advanced nextgeneration 
network these services are often businesscritical and 
as a result are supported by stringent service level 
agreements thus offers a wide range of high quality 
and flexible services designed to meet the needs of our 
diverse customer base our portfolio includes switched 
voice call recording and conferencing mpls ip vpn 
leased lines and citynational ethernet services 
summary of services
thus has many years experience in providing quality 
internet solutions and provides a comprehensive portfolio 
of services through demon one of the uk’s longest
established and most recognisable internet brands 
with our experience and expertise to deliver manage 
and support these services we are well equipped to 
understand our customers’ needs and offer solutions right 
for them our portfolio includes high performance premier 
broadband hosting colocation and security services
summary of services
thus provides standard and bespoke mobile solutions 
tailored to our business customers’ requirements and 
has the capability to supply integrated voice data and 
messaging solutions products and services range from 
mobile phones and blackberrys
®
 to a comprehensive 
range of vehicle and asset tracking and field worker 
solutions our field worker solutions utilise both 3g and 
gprs technology enabling our customers to realise 
significant productivity gains
 

4
thus group plc summary annual report 2008 highlights of the year
revenue grew 17 to £1 1 12m the growth has been  
largely driven by the inclusion of revenue for hsbc  
and the pathfinder north and pathfinder south projects
segmental operating profit 
2
 increased from £189m 
to £287m with margins
2
 improving to 26 
highlights of the year
revenue grew 11 to £347 0m data revenue grew  
by 11 to £1007m and voice revenue also grew  
by 11 to £2463m
segmental operating profit 
2
 was £609m  
2007 £615m with margins
2
 of 18 2007 20 
additional business for lower margin cps services  
resulted in revenue for these services increasing to 
£1015m 2007 £621m excluding the impact of the 
strong growth in cps revenue the underlying margin
2
 
was 21 2007 22
highlights of the year
revenue declined by 6 to £795m   hosting and 
other internet services increased by 5 to £302m 
dialup internet revenue fell to £57m 2007 £100m 
and broadband revenue declined by 5 to £436m
segmental operating profit 
2
 fell from £231m to 
£184m with margins
2
 of 23 2007 27
broadband customers at 31 march 2008 were  
115000 31 march 2007 130700
highlights of the year
revenue for the year was £385m compared to  
£405m last year segmental operating profit
2
 rose  
to £47m 2007 £42m representing a 12 margin
2
 
up from 10 last year 
the division continues to be vodafone’s largest  
independent uk businesstobusiness service  
provider and had 89455 active connections at  
the year end 31 march 2007 90000 
 2008  2007  
 £m  £m
revenue  111 2 950
operating profit
2
  287 189
operating profit margin
2
  26 20
19
of total revenue
 2008  2007  
 £m  £m
revenue  3470 3125
operating profit
2
  609 615
operating profit margin
2
  18 20
60
of total revenue
 2008  2007  
 £m  £m
revenue  795 847
operating profit
2
  184 231
operating profit margin
2
  23 27
14
of total revenue
 2008  2007  
 £m  £m
revenue  385 405
operating profit
2
  47 42
operating profit margin
2
  12 10
7
of total revenue
thus group plc summary annual report 2008

5 capability
consultation
quality
strategic progress and success
what makes thus different
capability
our unique capability comes from 
an extensive knowledge of the 
telecommunications industry and  
many years of experience working 
with our customers to ensure that  
we provide the right solutions
our stateoftheart nextgeneration 
network ngn coupled with our 
technical capability is crucial in 
delivering innovative compelling  
and flexible communication solutions  
to a broad range of customers
our network is one of the most 
technically advanced in the uk  
and allows us to harness new 
opportunities for our customers  
it provides a single platform for the 
deployment of advanced business 
applications allowing both voice and 
data to exist on the same advanced 
network the result is a simplified 
communications infrastructure that 
delivers both performance gains  
and cost savings for our customers 
we have configured our ngn to 
ensure maximum performance and 
reliability at all times
consultation
at thus we add value to our 
customers’ operations through our 
consultative approach our goal 
is to drive success through indepth 
customer and market knowledge  
this has resulted in notable success 
and is recognised by our customers 
as a key differentiator we lead on 
thorough consultative engagement 
supported by our extensive sector 
knowledge and an indepth 
understanding of both our customers’ 
requirements and their key drivers
we have extensive experience  
across multiple sectors nationwide 
new business won this year  
included contract wins in the fields  
of education utilities retail media  
and the public sector 
thus believes in strong client 
engagement which succeeds 
in building relationships with our 
customers based on trust and 
understanding and allows us to 
identify their real requirements  
and challenges 

6
thus group plc summary annual report 2008 capability
consultation
quality
with a broad range of 
capabilities a reputation for  
topquality service extensive 
sectoral coverage and a strong 
consultative approach thus 
is truly a distinctive leader in 
communications provision
this certification formerly known  
as bs 7799 is regarded as the 
benchmark for information security 
management
service and quality are the 
cornerstones of our business and 
the differentiators by which we 
are judged we do not limit our 
continual focus on quality to products 
and service as we believe that 
improvement in business strategy 
business results customer employee 
and supplier relationships should also 
be subject to continual improvement 
our commitment to our employees is 
endorsed by our investors in people 
accreditation
in essence we strive to continuously 
improve all aspects of our company 
performance to ensure we exceed the 
expectations of our customers
quality
providing the highest level of quality 
is essential to our business we 
constantly strive to improve on our 
already high standards of service 
and quality underpins everything we 
do as a company it is only through 
delivering quality solutions to customers 
that we are able to drive the execution 
and growth of our business and build 
strong and committed relationships 
with our customers
we fervently believe in delivering 
the highest levels of quality of service 
to our customers we utilise external 
measurement to support and ensure 
that we deliver consistent quality 
across all our products and solutions
our quality control can be measured 
by the fact that we have achieved full 
iso 90012000 quality certification 
for all of our internal processes and 
certification for the international 
information security standard isoiec 
270012005 for our mpls network 

7
thus group plc summary annual report 2008 strategic progress and success
new business won
trusted by  
our customers
1 
2 3 
4 
this year thus won new business nationwide 
across multiple sectors demonstrating the success  
of our consultative approach and proven capability 
to deliver bespoke solutions tailored to our 
customers’ needs

8
thus group plc summary annual report 2008 1 vodat international
thus and vodat international are 
working together to deliver ngn 
solutions to retailers such as cosmetics 
retailer lush white stuff and mosaic 
fashions parent company of coast 
karen millen oasis whistles the 
thus ngn network combined with 
vodat international’s applications 
provides a set of business class solutions 
which increase productivity in the  
retail enterprise thereby reducing  
costs and improving customer service  
to increase sales
2 imperial college london ‘icl’
thus secured new business with icl 
for an ethernet solution to provide high
bandwidth connectivity across nine of 
its sites and network connectivity to all 
other campus locations this scalable 
solution enhances reliability and has 
the capability to converge voice data 
and multimedia applications 
3 global radio
thus renewed and extended its 
contract with leading uk broadcaster 
global radio for the provision of live 
audio broadcasts voice and data 
traffic over an mpls network the 
tailored solution is resilient reliable 
and scalable to meet the needs of  
a dynamic growing broadcaster
4 scottishpower energy networks 
‘spen’
thus will deploy a new ngn 
infrastructure to provide business 
critical voice and data applications 
to spen’s transmission substations – 
extending to 130 sites in central and 
southern scotland scottishpower is 
one of our longest standing customers 
and securing this contract is testament 
to our capabilities and track record for 
service and reliability 
 70
5 
6 
5 thresher group
thus extended its contract with 
thresher group the uk’s leading 
independent specialist drinks retailer 
thresher group will use our calls  
lines service at its head office and 
across 1800 branches nationwide 
and selected thus for our extensive 
experience in the retail sector and 
our ability to deliver a high quality 
reliable costeffective solution tailored 
to each branch location
6 johnston press
the renewal and extension of 
our contract with johnston press is 
testament to our consultative approach 
and ability to provide a secure fully 
managed bespoke nextgeneration 
solution involving large scale hosting 
and high capacity wavelength 
services coupled with high levels of 
resilience and reliability for the delivery 
of businesscritical information to over 
230 sites
of contracts
1
 signed this year were  
for nextgeneration services 
1 represents major corporate and public 
sector contracts typically covering higher 
value bespoke sales
thus group plc summary annual report 2008

9 strategic progress and success
our journey to profit
vision
presence
profit
vision
our vision for the future provision of 
telecommunication solutions led to the 
construction of our nextgeneration 
network at the beginning of the decade 
this has enabled us to differentiate 
ourselves from our competitors and 
ensures we are strongly positioned 
within the marketplace
the current marketplace transition away 
from legacy services towards next
generation telecommunication services 
continues to accelerate as our customers 
realise the benefits of adopting these 
advanced solutions compared to the 
more commoditised legacy services 
over 70 of our new business won
1
 
this year was for nextgeneration services 
as a result thus has now passed the 
inflexion point with over 60 of our 
variable gross margin now derived from 
these nextgeneration services 
thus is committed to delivering 
visionary innovative solutions that allow 
our customers to achieve their aspirations 
and provide them with a competitive 
edge we continue to look beyond 
today’s needs to the nextgeneration of 
advanced telecommunication solutions 
that will best serve the needs of our 
customers
presence
we have successfully grown our 
business every year since our flotation in 
1999 this organic growth strategy was 
complemented by our first acquisitions 
in 2006 – your communications and 
legend communications 
the acquisitions accelerated our 
achievement of increased scale whilst 
also improving our geographical 
reach in the north of england by 
complementing thus’ existing market 
presence as a result thus has 
achieved a truly nationwide presence 
in the uk
1 represents major corporate and public sector contracts typically covering higher value bespoke sales 
2 thus market share is based on continuing operations revenue excluding mobile for a financial year 2007 market share is for the financial  
year ended 31 march 2008 200206 is based upon ofcom’s ‘the communications market 2007’ 2007 is based upon a thus estimate
3  earnings before interest tax depreciation including impairment amortisation and restructuring costs 
 gdp
total
legacy
nextgeneration
time

10
thus group plc summary annual report 2008 strategic progress and success
our journey to profit
thus’ visionary solutions for 
customers ensure we are strongly 
positioned in the marketplace where 
we have achieved a truly nationwide 
presence and momentum within our 
business enabled us to deliver our 
first full year of operating profit
as we successfully grow our enlarged 
business organically we continue to 
take market share
2
 and estimate that it 
is now 87 up from 7 6 last year 
we must continue to successfully build 
our market share in order to achieve our 
longterm financial objectives 
profit
the strong growth of our higher margin 
nextgeneration services together 
with the benefits from our increased 
scale and the successful delivery of the 
planned savings from the integration 
of your communications and legend 
communications enabled us to 
achieve our first full year of operating 
profit this year
momentum within our business is 
evidenced by winning new business 
nationwide across multiple sectors  
and financial performance for the 
second half of the year accelerated with 
revenue up 5 and ebitda
3
 up 15 
compared to the first half of the year
the achievement of our first operating 
profit is another important milestone 
for thus our next financial goal is to 
deliver for our stakeholders a return 
on capital employed greater than our 
weighted average cost of capital
to achieve this goal we must continue 
to win business from new customers 
and extend relationships with existing 
customers whilst maintaining our 
disciplines of operational productivity 
sound cash management and a capital 
investment programme focused on 
driving future growth 
thus market share 
thus market share
31  2002
44 2004
52 2005
87 2007
76  2006
2003 38

11
thus group plc summary annual report 2008 i am pleased to report that this  
has been another year of strong 
growth and achievement for your 
company with revenue up by  
8 to £5762 million and the 
achievement of our first operating 
profit of £40 million compared with 
an operating loss
1
 of £95 million 
last year it has been a busy year 
with major project implementations 
growth in new services and the 
refinancing of our balance sheet 
providing greater borrowing facilities 
on better terms than previously 
i take great pride in your company’s 
ability to win and successfully 
implement large managed solutions 
contracts for our customers and to 
continue to grow our nextgeneration 
services against the backdrop of a 
tough and challenging uk business 
services market thus has improved its 
competitive position and once again 
increased its market share  
philip rogerson chairman left and 
william allan chief executive right
in addition to achieving the important 
milestone of operating profit we 
returned to positive free cash flow
2
 in 
the second half of the year after the 
heavy investment in integration costs 
and the capital investment in the three 
major customer projects we announced 
last year indeed 83 of capital 
investment this year was focused on 
customer related activity up from the 
77 i announced last year all of this 
bodes well for the future
in july 2007 we refinanced our 
balance sheet with a new £1 10 million 
five year facility on favourable terms 
our balance sheet strength with 
net gearing at only 69 gives 
our customers confidence and we 
maintain a healthy cash balance
in june 2007 our largest shareholder 
united utilities successfully disposed of 
its shareholding in your company as a 
consequence martin beesley the non
executive director representing united 
utilities resigned from your board 
summary directors’ report
chairman’s statement
it is the energy and initiative of our staff in  
thus that provides the fuel for our growth  
and many achievements
in december 2007  jo connell 
resigned from your board after seven 
years of service jo was an active 
and lively member of your board 
who took a keen interest in many 
facets of your company her insights 
and experience in technology and 
customer service were greatly valued
we offer both jo and martin our 
thanks and best wishes for the future
in november 2007  we were 
pleased to welcome alison wood 
to your board alison brings a wealth 
of experience in corporate strategy 
government relations and mergers and 
acquisition activity and will significantly 
reinforce our knowledge and expertise 
in these areas
it is the energy and initiative of our  
staff in thus that provides the fuel  
for our growth and many 
achievements we recognise the 
challenge in our market and the 
uncertainty about the uk economy 
but we are proud to have committed 
staff full of enterprise who share our 
optimism for the future i offer them all 
my sincere thanks and congratulations 
for another successful year
philip rogerson
chairman
1 operating loss stated before restructuring 
costs of £16m last year
2 operating cash after interest taxation 
and capital expenditure

12
thus group plc summary annual report 2008 i was particularly pleased to 
announce our maiden operating 
profit for the year at our preliminary 
results in may our growth in 
profits has been achieved from 
our increased market share and 
improved productivity validating  
our strategy to focus on next
generation services in the uk 
business services market
the transition from legacy to next
generation services continues and 
has improved our overall revenue mix 
over 70 of all new major corporate 
and public sector contracts
1
 this year 
were for nextgeneration services 
these services offer our customers 
greater efficiency features and 
functionality within their businesses 
managed solutions revenue increased 
by 17 and data services revenue 
increased by 1 1 although revenue 
from voice services grew by 1 1 
we do not expect continued growth 
in carrier preselect cps services 
since these services will lose 
traction in the market as customers 
increasingly embrace internet protocol 
ip services and converged solutions 
thus is strongly positioned our 
consultative engagement with our 
customers our understanding of their 
business and telecommunication 
needs and our innovative approach 
to convergence and service evolution 
allows us to sustain a competitive 
edge thus has a strong track record 
of service innovation and this year 
has been no exception with fifteen 
new service enhancements launched 
to benefit our customers and improve 
our competitive position
our capital investment continues at 
almost 10 of revenue with 83 
focused directly on customer related 
activity this is a higher percentage 
than last year reflecting our success 
in winning larger and more complex 
managed solutions customers 
nevertheless we do not neglect  
our back office or core network and 
we have improved the availability  
on our core mpls network and the 
consistently high levels of service 
quality we offer in addition we  
have received isoiec 270012005 
accreditation for the information 
security management system 
supporting our mpls network  
this complements our longer standing 
iso 90012000 accreditation  
these standards give confidence  
to our customers about the quality 
standards in our business and allow 
us to compete in new business areas
as we have grown our business 
our increased scale has offered 
new opportunities to improve our 
operating efficiency and productivity 
revenue grew by 8 this year 
but our operating costs
2
 reduced 
by 8 at 144 of revenue our 
operating costs
2
 are now below 
the level achieved before we made 
our two acquisitions in 2006 
reinforcing the successful integration 
of your communications and legend 
communications into thus all of this 
improves our competitiveness and our 
ability to further scale our business 
from new revenue growth
our business strategy is sound  
we have the scale and capability to 
compete and successfully implement 
large and complex bespoke customer 
applications we are strongly 
positioned to benefit as our customers 
and our industry makes the transition 
to nextgeneration services we have 
a talented and committed workforce 
with an enviable track record on 
service innovation and enterprise 
although there is uncertainty about 
the uk economy the outlook for 
this financial year is in line with the 
board’s expectations
william allan
chief executive
1 contracts typically covering higher value 
bespoke sales
2 operating costs exclude depreciation 
and amortisation including impairment 
restructuring costs and other operating 
income
summary directors’ report 
chief executive’s review
we have the scale and capability to compete and 
successfully implement large and complex bespoke 
customer applications
thus group plc summary annual report 2008

13 results 
the focus of our performance review 
is on our continuing operations
1
 which 
are based solely in the uk unless 
otherwise stated comparatives are 
against the prior year
continuing operations
1
revenue increased by 8 to £5762m 
2007 £5327m demand for next
generation services accelerated with 
revenue for these services increasing 
by 1 1 whilst revenue from our legacy 
services increased by 6
gross profit increased 6 to £956m 
2007 £897m and gross profit 
margins were 166 2007 168 
over 60 of variable gross margin 
is now derived from nextgeneration 
services up 7 on the prior year
ebitda
2
 increased by 33 to £57 0m 
2007 £429m representing the 
third consecutive year of expansion 
and ebitda
2
 margins improved 
to 99 2007 80 growth in 
nextgeneration services variable 
gross margin contributed £188m 
of the improvement in ebitda
2
 and 
combined with cost savings net of 
other operating income of £43m 
more than compensated for the 
decline in legacy variable gross 
margin of £90m
after depreciation and amortisation 
charges of £530m 2007 £524m 
the group delivered its first operating 
profit of £40m this compared to an 
operating loss before restructuring 
costs of £95m last year
dividend
the company has not declared or 
paid a dividend on its share capital 
2007 £nil given the company’s 
stage of development and the 
accumulated losses from the network 
deployment the board is not yet able 
to declare a dividend
capital expenditure
capital expenditure including 
expenditure on intangible assets for 
continuing operations
1
 was £565m 
compared with £593m last year 
this is equivalent to 10 of revenue 
compared with 1 1 last year and is  
inline with our stated longterm 
financial target of approximately  
10 of revenue
update on integration plan
the integration of your 
communications and legend 
communications has been 
substantially completed the remaining 
activities continue to proceed ahead 
of original expectations and the 
company achieved as previously 
advised 90 of the £30m forecast 
annual synergy savings exiting this 
year on a run rate basis
summary directors’ report
financial review
net financing expenses increased by 
£28m to £68m 2007 £40m
a tax charge of £34m was reported 
for the year last year a tax credit of 
£696m arose due to recognition of 
the deferred tax asset as a result the 
loss for the year was £62m compared 
to a profit of £545m last year
basic loss per share for continuing 
operations
1
 was 340p compared to 
basic earnings per share of 3029p 
last year
discontinued operations
discontinued operations represent the 
results of demon netherlands in the 
current year and prior year 
this year discontinued operations 
reported a profit of £20m principally 
due to the receipt of a tax refund from 
the dutch tax authorities
last year discontinued operations’ 
revenue was £32m and operating 
profit was £04m reflecting the sale 
of demon netherlands in june 2006 
the consideration received for the sale 
of demon netherlands gave rise to a 
posttax gain on sale of £290m and 
resulted in a profit for the year  
of £294m
basic earnings per share for 
discontinued operations was 109p 
down from 1634p last year 
key achievements  
in 2008
operating profit delivered 
third consecutive year   
of ebitda
2
 expansion
revenue up 8 with improved   
nextgeneration services’ revenue mix
free cash flow 
3
 significantly improved
ebitda
12 
£m revenue
1 
£m
1 continuing operations exclude the results 
of demon netherlands contact centre 
and interactive for all years
2 earnings before interest tax depreciation 
including impairment and amortisation 
ebitda is stated before restructuring 
costs of £16m in 2007 and £88m  
in 2006
3 operating cash after interest taxation 
and capital expenditure
4  interest excludes loan costs written off 
loan amortisation costs and net interest 
associated with the thus pension scheme
 financial data for the charts on this page 
is prepared under ifrs for 20052008 
and uk gaap for 2004
5 7 0
429
3 76
367
41 6
5762
5327
2008 2008
2007 2007
2006 2006
2005 2005
3500
3202
2004 2004 2836

14
thus group plc summary annual report 2008 financial position  
and capital structure
thus is funded by equity together 
with an element of bank debt and  
a small amount of finance leases
cash flows
ebitda
2
 less capital expenditure was 
£05m 2007 negative £164m 
working capital outflows were  
£36m 2007 outflows £58m  
and together with £43m of net interest 
payments and other movements of 
£14m resulted in a free cash outflow
3
 
of £60m 2007 outflow £257m 
free cash flow
3
 for the second half of 
the year improved significantly resulting 
in an inflow of £69m compared to an 
outflow of £129m for the first half 
net debt increased by £61m from 
£258m at 1 april 2007 to £319m  
at 31 march 2008 the cash balance 
at the end of the year was £716m 
credit metrics
with the capital structure representing 
the financial foundations of the business 
thus has taken a conservative stance 
to funding net gearing was 69 at 
31 march 2008 31 march 2007 
55 our financial position remains 
strong with net debt to ebitda
2
 of 06 
times and ebitda
2
 net interest
 4
 cover 
of 83 times for continuing operations
equity
thus had approximately 18303m 
ordinary shares in issue at 31 march 
2008 31 march 2007 18303m 
and a market capitalisation of £218m 
31 march 2007 £337m
in june 2007  united utilities sold its 
entire 2263 holding in thus
at 31 december 2007  the contingent 
consideration that was potentially 
payable to united utilities for the 
purchase of your communications  
in february 2006 expired
bank debt 
following an extensive evaluation 
of financing options the group 
refinanced its existing bank facility 
in july 2007 with a new five year 
facility the renegotiation of the facility 
on more favourable terms than the 
existing arrangements demonstrated 
the increased strength and capability 
of our business
as at 31 march 2008 thus had 
total indebtedness of £1035m  
31 march 2007 £57 1m comprising 
£1000m of bank debt and £35m  
of finance leases
working capital
thus has a strong track record  
in management of working capital 
and successfully integrating the 
two acquisitions presented further 
opportunities to reduce debtor days  
of 44 at 31 march 2007 to 40 at  
31 march 2008
summary
demand for our nextgeneration 
services accelerated this year and 
resulted in an improved revenue mix 
our third consecutive year of ebitda
2
 
expansion and our first full year of 
operating profit we retain a strong 
balance sheet with low levels of net 
gearing and returned to positive free 
cash flow
3
 in the second half of the 
year the outlook for this financial year 
is in line with the board’s expectations 
with the capital structure representing the financial foundations  
of the business thus has taken a conservative stance to funding  
net gearing at the year end was below 7
john maguire  
chief financial officer 
thus group plc summary annual report 2008

15 summary directors’ report
measuring our success
achieving a successful 
financial performance 
relies on the business 
achieving growth 
minimising cost 
of sales driving 
scale efficiencies 
targeting incremental 
investment to support 
growth over the core 
backbone network 
and maintaining high 
standards of quality 
to ensure overall 
progress thus targets 
initiatives in each of 
these key areas and 
tracks performance to 
measure success
longterm targets actual performance 2008
1 29x 1 5 2x
revenue asset turnover
20
profitability ebitda  
as  of revenue
10
15  2 0 
efficiency operating  
costs as  of revenue
14 
 c 1 0
investment capital investment 
as  of revenue
10

9 9 9 5  9 9 9 5 
network performance availability
performing

16
thus group plc summary annual report 2008 growth
thus must continue to build market 
share successfully in order to meet 
our longerterm objectives based on 
continuing operations
1
 revenue growth 
thus improved its estimated market 
share from approximately 7 6 to 
approximately 87 during the year 
reflecting our success in winning new 
business this resulted in an increase 
in the ratio of continuing operations
1
 
revenue to assets
2
 to 129 times 
compared with our longterm target  
of 15 to 20 times
cost of sales
although network reach is extensive 
it is not economically feasible to 
carry all customers’ traffic endtoend 
and payments to other operators 
for customer connection and service 
interconnect are the largest component 
of our cost of sales
since flotation thus has made 
successive improvements to contain  
the increase in payments by increasing 
interconnect points with other 
operators improving traffic routing 
across the network and participating 
in a wholesale market for the provision 
of last mile access 
the integration of the thus network 
with those of the companies acquired 
in 2006 particularly that of your 
communications has delivered  
further network efficiencies
scale efficiencies
this year in continuing operations
1
 
ebitda revenue improved to 10 
2007 8 reflecting the benefits 
achieved from our increased scale 
and the successful delivery of the 
planned savings from the integration 
activities surrounding the acquisition 
of your communications and legend 
communications the successful 
integration has also resulted in an 
improvement in our operating costs
3
 
expressed as a percentage of revenue 
which fell to 14 of revenue
efficiency – operating costs
1
 
profitability – ebitda  margin
15
capital investment –  of revenue
asset
1
 turnover
1   represents property plant equipment 
and intangible asset balances
2   2006 included only one month  
of revenue for the acquisitions
investment 
capital investment was 10 of 
continuing operations
1
 revenue  
2007 1 1 broadly in line with  
our longterm target of approximately  
10 of revenue 
in the year under review growth
related expenditure was £47 0m or 
83 of the total other expenditure 
was £95m 
customer satisfaction 
our existing customer satisfaction 
programme has continued to be 
extended over the past year and now 
covers all of our products and services 
our ongoing rollout of surveys will 
enable us to give all of our customers 
the opportunity to provide feedback on 
the products and services we provide
network performance
availability on the core multiprotocol 
label switching mpls network was 
consistently above our 9995 target 
throughout the year enabling thus  
to manage sharply increasing volumes 
of mpls traffic securely
1 continuing operations exclude demon 
netherlands contact centre and 
interactive for all years 
2 represents property plant equipment 
and intangible asset balances
3 operating costs exclude depreciation 
and amortisation including impairment 
restructuring costs and other operating 
income
financial data for the charts above is 
prepared under ifrs for 2005–2008  
and uk gaap for 2004 all data relates  
to continuing operations
1 operating costs exclude depreciation 
and amortisation including impairment 
restructuring costs and other  
operating income
1   excludes restructuring costs
10
8
11
2008
2007
1
2006
1
11 2005
15 2004
129
1 1 9
079
2008
2007
2006
2
086 2005
069 2004
14
17
17
2008
2007
2006
19 2005
21 2004
10
11
9
11
14
2008
2007
2006
2005
2004
thus group plc summary annual report 2008

17 investors in people
our commitment to our employees 
is endorsed by our investors in 
people accreditation we value this 
accreditation as it is a highly effective 
tool which focuses on training and 
developing our employees to achieve 
our business objectives
reward
the performance of managers and 
senior professional staff is linked to the 
group’s financial results by way of a 
bonus scheme which has targets linked 
to revenue ebitda and cash flow 
to allow flexibility and the ability to 
react to changing market conditions 
salaries are reviewed quarterly to ensure 
remuneration is appropriate to retain 
highquality employees 
for sales staff commission schemes 
are based on billed revenue with a 
weighting to increase reward for the  
sale of services with higher profit 
margins and nextgeneration services
the group has offered all employees 
access to an annual sharesave scheme 
during 2007 08 the group personal 
pension gpp plan matches employee 
contributions up to 6 affording 
employees the opportunity to build 
meaningful pension provisions for the 
future while strengthening our ability  
to attract and retain quality employees
during 2007 08 we launched  
uthus reward an online benefits 
programme for all thus employees 
this programme affords employees 
the opportunity to purchase additional 
benefits to suit their lifestyle wherever 
possible taking advantage of the inland 
revenue approved ’salary sacrifice’ 
scheme which results in tax and national 
insurance savings for both employees 
and the group
our culture
we place a strong emphasis on 
creating a positive working culture 
encouraging a clear understanding 
of our objectives and key business 
imperatives our talented and skilled 
employees underpin our ability to 
deliver innovative telecommunication 
services that bring value to our 
customers’ business operations 
the enthusiasm flexibility and 
continued development of our 
employees remain vital to achieving 
our overall objectives and we continue 
to invest in training and development 
to enhance their skillbase providing 
our employees with the resources they 
require to maximise their performance 
and drive business growth remains 
a priority our objective is to ensure 
measures are in place to retain and 
develop our employees while at 
the same time attracting talented 
individuals to join our organisation
maximising our people 
performance
at thus we encourage value 
and reward superior performance 
the performance of employees is 
measured against clear business
focused objectives and through our 
‘windmills’ performance appraisal 
process this is supported by an 
ongoing programme of twoway 
communication including a quarterly 
onetoone process which ensures that 
qualitative discussions are taking place 
with employees at regular intervals 
throughout the year 
developing our people
we are focused on developing 
employee skill levels and a strong 
corporate culture which best facilitate 
growth superb customer service 
and cost competitiveness all aimed 
at enhancing sustainable growth in 
shareholder value the capability 
performance and commitment of  
our employees remain key factors  
in our ability to grow our business in 
the competitive market in which we 
operate we have a highly qualified 
workforce with our recent employee 
survey indicating that over 60  
of our employees have degrees  
andor professional qualifications 
growing our talent
at thus we place a strong 
emphasis on continuous professional 
development we believe that this is 
vital to attracting and recruiting the 
highest calibre people we have a 
number of ways of doing this
undergraduate sponsorships
and student placements
this year in addition to recruiting 
graduate trainees into our business  
we are also sponsoring ten 
undergraduate students from  
the university of greenwich this 
sponsorship allows these students  
to undertake their chosen studies 
without the financial pressures which 
might impede their effective learning
talent management
in 2007  we launched our ‘talent 
spotting’ programme which involved  
a rigorous application process internal 
and thirdparty recommendations  
and a series of assessment exercises 
the programme successfully identified 
high potential employees who have 
now embarked on personalised 
development programmes 
summary directors’ report
employees

18
thus group plc summary annual report 2008 communication  
and consultation
at thus we encourage 
communication and employee 
involvement through our elected 
employee forum xchange  
this forum allows thus to share 
business information with employees 
encouraging an awareness of the 
financial and economic factors affecting 
the group and importantly takes 
account of employee views and 
feedback when planning change 
equal opportunities
thus is committed to promoting  
equal opportunities for all of our 
employees our policy in respect  
of employment of disabled persons  
is the same as that relating to all  
other employees in matters of training 
and career development 
talented
our talented and skilled employees 
underpin our ability to deliver innovative 
telecommunication services that bring value  
to our customers’ business operations
thus group plc summary annual report 2008

19 summary directors’ report
environment and community 
charitable and political donations 
following the share consolidation in 
march 2006 the fractional share 
entitlements were sold raising net 
proceeds of approximately £274000 
the directors’ aim was to apply these 
proceeds for gifts or donations to a 
range of worthy causes and a number 
of initiatives are underway throughout 
the uk during the year the group 
made the following charitable 
donations £2500 to the victim 
support sunrise appeal £3000 to 
the scottish outward bound 
association £4400 to manchester 
children’s hospital and £30000  
to the university of greenwich  
the group made no donations  
for political purposes 
outward bound trust
the outward bound trust is an 
educational charity which inspires 
young people from all walks of life to 
fulfil their potential through challenging 
outdoor experiences thus provides 
financial assistance for young people 
from disadvantaged backgrounds 
during 2007 08 we helped over 
150 children from schools across 
scotland manchester and london
during this year our employees also 
took part in the scottish outward 
bound association soba challenge 
soba is an educational charity 
offering professional teambuilding 
courses which also helps to further 
fund the outward bound trust courses 
for disadvantaged young people 
while developing the team building 
and leadership skills of our employees
corporate social 
responsibility
at thus we are committed to 
corporate social responsibility csr 
and we have policies in place to 
ensure that we operate in a safe 
ethical and responsible manner which 
protects the environment as well as 
safeguarding the health and safety 
of our employees customers and the 
communities in which we operate
our csr steering group manages 
our activities and is drawn from 
several disciplines across the group 
the committee meets regularly and 
reports to the management board on 
progress
we are a member of scottish business 
in the community and benchmark 
ourselves against other companies
safety health and 
environment 
the commitment and participation of 
all employees is vital to the efficient 
and effective implementation and 
control of our safety health and 
environmental management systems 
in order to meet our responsibility to 
protect the environment employees 
and the business thus continues to 
focus on enhancing our existing safe 
working practices and the production 
of a robust risk management strategy 
that will eliminate operational hazards 
or minimise the risks incurred
environmental management 
to enhance our environmental 
management systems a set of 
standards has been produced  
we continue to work on ways to 
reduce our impact on the environment 
the main focus being on energy 
conservation and the use of renewable 
resources the reuse and recycling 
of waste electrical equipment a 
reduction in general waste going 
to landfill and the effects on the 
environment from travel this year 
we generated 60008kg of waste 
electrical equipment 98 of which 
was reused or recycled
achievements
in recognition of our commitment to the 
management of safety and health we 
have been awarded the royal society 
for the prevention of accidents rospa 
bronze award this achievement forms 
an integral part of a phased approach 
to gaining the occupational health 
and safety assessment series ohsas 
180012007 accreditation 
we have also committed to achieving 
the international organisation for 
standardisation iso 140012004 
accreditation for our environmental 
management system the 
implementation of the two standards 
will enable thus to control its 
occupational health safety and 
environmental risks and improve on  
our performance
community relations
across the group we place a  
strong emphasis on our charitable and 
community activities we are keen to 
play an active role in the communities 
in which we are based and we actively 
encourage employees to participate in 
community relations activities 

20
thus group plc summary annual report 2008 the emmaus foundation
thus has a longestablished 
relationship with emmaus which is a 
selfhelp and selfsupporting enterprise 
offering unemployed and homeless 
people opportunities for work 
companionship and the chance to 
regain selfrespect through their own 
efforts the charity enables people 
to move on from their homelessness 
providing work and a home in a 
supportive family environment
other charities
during the year thus continued to 
support a number of other charitable 
and educational causes including the 
united kingdom telecommunications 
academy ukta a charity which 
helps to support and educate students 
from the developing world on how 
to create and regulate successful 
telecommunications we also give 
financial assistance in the form of 
providing free telephone lines in 
support of women’s aid and their 
domestic abuse campaigns
the company also operates a charity 
matching scheme for employees’ 
personal charitable and community 
relations activities this includes 
donations to cancer research 
macmillan cancer support and 
marie curie cancer care of  
£250 each
respect
thus is committed to ensuring we are a  
‘good neighbour’ and making a genuine 
contribution to the communities we serve
thus group plc summary annual report 2008

21 summary directors’ report
board of directors
nonexecutive directors
1 philip rogerson
philip rogerson 63 was appointed 
chairman of thus on 1 september 
2004 mr rogerson is also chairman 
of aggreko plc carillion plc and 
northgate plc and a nonexecutive 
director of davis service group plc 
from 1992 to 1998 he was finance 
director and subsequently deputy 
chairman of bg plc he spent his 
early career with ici in a variety of 
roles latterly as general manager 
finance
2 ian chippendale
ian chippendale 59 was appointed 
as a nonexecutive director of  
thus on 15 october 1999  
mr chippendale was chairman 
of rbs insurance until december 
2006 having previously been chief 
executive of direct line group limited 
prior to joining direct line in 1996 
mr chippendale was chief executive 
of privilege insurance from 1994 
and before that he was a director of 
provident financial plc he is also a 
nonexecutive director of homeserve 
plc and transatlantic holdings inc
3 rick medlock
rick medlock 47 was appointed 
as a nonexecutive director of 
thus on 7 november 2006 
he is chief financial officer of 
inmarsat plc the mobile satellite 
services company providing voice 
and data communications to 
industrial government military and 
aid organisations worldwide prior 
to joining the board of inmarsat in 
september 2004 he served as chief 
financial officer and company 
secretary of nds group plc for eight 
years mr medlock previously served 
as chief financial officer of several 
private equitybacked technology 
companies in the uk and the usa  
he is a fellow of the institute of 
chartered accountants of england 
and wales 
4 alison wood
alison wood 44 was appointed 
as a nonexecutive director of thus 
on 1 november 2007  she joins 
national grid as global director 
of strategy  business development 
in june 2008 prior to this she was 
group strategic development director 
at bae systems reporting to the 
chief executive and responsible for 
corporate strategy and mergers and 
acquisitions including supporting the 
board’s annual strategic review of the 
group she joined bae in 1991 and 
has held a range of strategy mergers 
and acquisitions and government 
interface roles most recently as group 
managing director of niteworks  
a joint programme with the ministry of 
defence and nine defence companies 
to set up new battlefield simulation 
capabilities her career prior to bae 
was in consulting at outram cullinam 
 company from 1989 to 1991 and 
booz allen  hamilton from 1985 to 
1987  she is also a nonexecutive 
director of btg plc
1 2 3 5 4

22
thus group plc summary annual report 2008 executive directors
5 william allan
william allan 54 is chief executive 
of thus he joined a predecessor 
company in december 1998 as  
chief operating officer and was 
appointed managing director in 
february 1999 mr allan has more 
than 25 years’ experience in the 
telecommunications industry in 
1997  mr allan was appointed 
chief executive of cable  wireless 
regional businesses he was a 
director of telecommunications of 
jamaica entel panama the barbados 
telephone company and the 
barbados external telecommunications 
company between 1995 and 1997  
mr allan was regional director for 
cable  wireless north east asia 
region president and representative 
director of cable  wireless japan 
and chairman of cable  wireless 
communications services limited 
japan he was also a director of 
international digital communications 
idc japan sakhalin electrosvyaz 
sakhalin telecom sakhalin telecom 
mobile and nakhodka telecom
6 philip male
philip male 41 is chief operating 
officer he joined a predecessor 
company originally as technical 
director of demon internet limited in 
october 1997  mr male has previous 
experience as technical director of 
computer newspaper services and 
pa data design part of the press 
association group and has held the 
positions of head of research and 
development and prior to joining 
demon director of strategic research 
with the press association group 
with advanced knowledge of data 
networking technologies programming 
languages and operating systems 
mr male has been involved in the 
development of internet services in  
the uk since 1990 
7 john maguire 
john maguire 42 a chartered 
accountant joined thus as chief 
financial officer in december 2000 
prior to joining thus mr maguire 
was vice president finance japan and 
asia for cable  wireless global 
this included leading the finance team 
in cable  wireless idc japan’s 
secondlargest international carrier 
mr maguire has extensive financial 
and international telecommunications 
experience having held a number of 
other key financial positions within the 
cable  wireless group since 1991 
including that of regional finance 
director of cable  wireless asia 
pacific based in singapore
audit committee
rick medlock chairman 
ian chippendale 
jo connell  
resigned 31 december 2007
alison wood  
appointed 16 november 2007
remuneration committee
ian chippendale chairman 
jo connell  
resigned 31 december 2007
rick medlock
alison wood  
appointed 16 november 2007
nomination committee
philip rogerson chairman
william allan
ian chippendale
jo connell  
resigned 31 december 2007
rick medlock
alison wood  
appointed 16 november 2007
senior independent  
nonexecutive director
ian chippendale
6 7
thus group plc summary annual report 2008

23 corporate governance
summary corporate governance report
the board has maintained the approach adopted in 
previous years in establishing and monitoring the group’s 
internal control procedures and policies in following the 
requirements of the combined code a review on an 
annual basis of the effectiveness of the system of internal 
control is carried out by the board this review includes 
material financial operational and compliance controls 
and risk management the turnbull report internal control 
revised guidance for directors on the combined code 
published in october 2005 provides guidance to the 
directors in respect of this requirement
overall responsibility for the system of internal control and 
for reviewing the effectiveness of the system rests with the 
directors of thus group plc
the system of internal control is designed to manage 
rather than eliminate the risk of failure to achieve business 
objectives internal control therefore can only provide 
reasonable and not absolute assurance against material 
misstatement or loss
there is an ongoing process for identifying evaluating  
and managing the significant risks faced by the business  
this process has been in place for the year under review 
and up to the date of approval of the annual report and 
financial statements the process is regularly reviewed by 
the board via the audit committee and is guided by the 
content of the turnbull report 
the internal audit function of the group supports the 
directors in assessing the operation of key internal  
controls through a structured review programme  
the purpose authority and responsibility of the group’s 
internal audit function is contained within a formal risk 
management charter
risk assessments are completed on key processes and 
quarterly reviews have been carried out by the risk 
management group all aspects of business risk such as 
financial operational strategic compliance and business 
continuity risk are covered by the risk assessments 
risk reviews are also undertaken regularly by the respective 
business areas throughout the year to identify and assess 
the key business risks associated with the achievement 
of strategic objectives the reviews are supported by 
governance software which enables and requires risk 
owners to regularly monitor and review risks within the 
group the reviews include consideration of the nature  
and extent of risks facing the group the likelihood of  
risks materialising and review of controls and action  
plans associated with the risks
an assessment of residual risk and of significant risks 
across the business resulting from the reviews of the risks 
of the group is presented to the audit committee on a 
quarterly basis control failings or weaknesses assessed 
as significant are included within these quarterly reviews 
by the audit committee including discussion on actions 
taken by the business to address them this ensures that 
necessary actions have been or are being taken to  
remedy any significant control failings or weaknesses
during the course of the year the risk management and 
internal control systems have continued to be developed 
across the group the risk management framework is 
designed to ensure that the key controls are and have 
been embedded into business processes this has 
enabled the directors to be satisfied that the group was 
fully compliant with the revised combined code provisions 
including those of the turnbull report on internal control in 
the course of the financial year ended 31 march 2008 

24
thus group plc summary annual report 2008 corporate governance
summary directors’ remuneration report
remuneration policy
during the year the committee has continued its decision 
making on the basis of a number of underlying principles 
which can be summarised as follows 
executive directors and other senior executives should  
be paid market competitive levels of remuneration and 
receive significant incentives for performance which 
significantly exceeds challenging and objective targets
in setting base salary levels the committee has regard  
to both individual performance and external market 
information prepared by its advisors from a number  
of comparable companies both within and outside the 
telecommunications sector the aim is to set salaries 
which are generally around the midmarket level 
salaries will be above midmarket where both individual 
experience and performance and market comparables 
justify it
the committee remains strongly committed to ensuring  
there is an appropriate balance between fixed and 
performance pay it also seeks to ensure alignment 
with shareholders’ interests a significant proportion of 
executive directors’ remuneration is performancerelated 
through annual bonus and longterm incentives as set 
out below
the committee’s primary goal is to ensure that executive  
remuneration continues to be sufficiently attractive to 
retain executive directors in a highly competitive market 
and to motivate them to deliver results and to enhance 
shareholder value
the arrangements described below are likely to continue 
to apply in future years unless there are specific reasons for 
change the committee will continue to regularly review 
arrangements to ensure that they remain effective and 
appropriate to the company’s circumstances and prospects 
and to monitor the level of potential awards
the remuneration package
basic salary
following an increase of 36 the base salary levels for 
executive directors in 2007 08 were as follows william 
allan £435120 john maguire £310800 philip male 
£310800 the committee have considered salaries in 
relation to market data performance and pay settlements 
elsewhere in the business and have agreed an increase  
of 39 to base salaries with effect from 1 april 2008
annual bonus 
executive directors and senior executives participate in  
the company’s annual corporate bonus plan
the committee remains committed to ensuring that bonus 
targets are challenging and only reward demonstrably 
superior performance
the annual bonus plan for executive directors is based  
on a mix of financial and nonfinancial performance 
conditions on an 8020 ratio and provides a maximum  
total payment of up to 100 of salary following a review 
of remuneration for the executive directors the committee 
has agreed to raise the maximum bonus potential for the 
chief financial officer and chief operating officer from 
85 to 100 of salary with effect from 1 april 2008 
further strengthening the performance related element  
of their remuneration package
the achievement of predetermined targets determines  
the levels of payout under the plan for the year ended  
31 march 2008 there were three distinct financial 
measures which were weighted as follows
25 was determined by reference to cash flow after  
interest and capital expenditure
50 was determined by reference to ebitda   
earnings before interest tax depreciation and 
amortisation performance
25 was determined by reference to revenue 
based on the company’s performance for 2007 08 the 
plan made a payment of 4805 of maximum entitlement
in respect of 80 of the bonus potential the same financial 
measures will be used for 200809 weighted as follows
30 determined by reference to cash flow after interest  
and capital expenditure
50 determined by reference to ebitda 
20 determined by reference to revenue 
longterm incentives
performance shares
the company operates the thus group performance 
share plan under which an award of shares can be granted 
at the discretion of the committee to executive directors and 
selected senior executives grants made during a year will 
only become exercisable after three years if demanding 
performance targets set by the committee are met 
thus group plc summary annual report 2008

25 the two performance criteria which apply to the vesting  
of performance share awards are group ebitda in respect 
of 50 of an award and group ebit return on capital 
employed with respect to the remaining 50 performance 
is measured against targets set with reference to internal 
forecasts and the extent to which they are satisfied is 
confirmed by the committee 
calculations are made internally on the same basis as 
reported in the annual financial statements and are verified 
by the auditors
the two performance criteria are recognised both internally 
and by analysts as key measures of the success of the fixed 
line telecommunications business model and the drivers 
of shareholder value and as such are recognised by the 
participants and we believe following the support of 
shareholders in 2006 by shareholders as being directly 
linked to the success of the business 
it is currently anticipated that awards to executive directors 
in 200809 will be made over shares worth 100 of salary 
the performance conditions will require annual compound 
growth in ebitda of between 12 to 25 over three 
years and ebit return on capital for the final year in the 
performance period to be between 5 and 10 30 
of the respective part of the award will vest for threshold 
performance these performance ranges are considered to 
be appropriately stretching taking into account the outlook 
for the business for the ebitda condition it is recognised 
that the numbers are lower than for prior years’ ranges 
however as they are referenced off higher base figures 
they represent a clear progression on the ranges set in 
previous years furthermore they remain relatively high by 
market standards conversely the ebit return on capital 
range is higher than prior years’ awards overall the 
ranges are considered to be equally challenging to those 
set in prior years
matching shares
under the coinvestment plan executive directors are 
allowed to invest up to a maximum of 25 of their base 
salary in company shares the offer is typically made  
to them each year shortly after bonuses are declared  
this means that executive directors can use their net bonus 
to acquire shares at market price although there is no direct 
link to the bonus paid provided that the executive director 
continues to hold these shares for three years the company 
makes an award of matching shares the minimum level of 
match is one share for every two the individual acquires 
the level of match can increase up to a maximum of 
four shares for every two shares the individual acquires 
dependent on performance against the same performance 
targets that apply for awards under the performance share 
plan participation in the plan has been extended  
to selected senior executives below board level
the rules of the various longterm incentive plans provide 
that the aggregate of all sharebased awards does not 
exceed the guidelines laid down by the association of 
british insurers that recommend i that the number of awards 
granted over new issue shares in respect of all sharebased 
schemes should not exceed 10 of the current issued 
share capital in any rolling tenyear period and ii that 
the number of awards granted over new issue shares in 
respect of discretionary schemes should not exceed 5 of 
the current issued share capital in the same period as at 
31 march the percentage of share capital used in relation 
to these two limits was nil all awards granted to date have 
utilised shares held within the employee share trust
pension and other benefits
pension benefits are provided under the thus group plc 
pension scheme this scheme is a contributory defined
benefit scheme that provides 160th of final pensionable 
salary from age 60 for each year of pensionable service 
up to 31 march 2007 and 175th of final pensionable 
salary from age 65 for each year of pensionable service 
after 31 march 2007  final pensionable salary is defined 
as the highest pensionable salary averaged over any  
12month period in the last five years of membership or  
the highest threeyear average in the last 10 years if higher 
pensionable salary is defined as basic salary only
in line with market practice a cash supplement is provided 
for executive directors who continue to participate in thus’ 
pension arrangements to provide a market competitive level 
of pension benefit overall
executive directors are eligible for a range of benefits  
these include the provision of a company car or car 
allowance fuel private medical life permanent health  
and critical illness insurances
service contracts
reflecting current market practice the executive directors 
have service contracts that are terminable on one year’s 
notice by either the individual or the company it is not 
the committee’s intention to appoint any new executive 
directors with contracts that provide for a longer  
notice period
the committee endorses the principle of mitigation of loss 
on early termination of a service contract and generally 
seeks to achieve that objective where possible and 
appropriate 
in the event that thus wished to terminate an executive 
director’s contract other than in circumstances where the 
company is entitled to summarily dismiss an executive 
director it would need to either give twelve months’ notice 
or make a payment in lieu of twelve months’ worth of salary 
and benefits including pension
corporate governance
summary directors’ remuneration report – continued

26
thus group plc summary annual report 2008 there are no special provisions which apply in the event  
of a change of control
chairman and nonexecutive directors
the appointment of the chairman and nonexecutive 
directors is subject to the articles of association of the 
company in particular the usual provisions relating to  
reelection by shareholders the chairman and non
executive directors have letters of appointment which  
are available at wwwthusnet they were all appointed  
for an initial term of three years terminable at the request  
of the board which may be renewed for a further period 
subject to approval by the board 
the remuneration of the chairman is determined by the 
remuneration committee the fees of the nonexecutive 
directors are determined by the board summary details 
of the remuneration of the directors are contained in the 
directors’ emoluments table below with effect from  
1 april 2008 the chairman’s fees were increased to 
£100000 per annum and the fees of the nonexecutive 
directors were increased to £35000 per annum with 
an additional fee of £5500 per annum payable to 
the chairman of the audit committee an additional 
fee of £2750 per annum payable to the chairman of 
the remuneration committee and an additional fee of 
£2750 per annum payable to the senior independent 
nonexecutive director the chairman and nonexecutive 
directors are not entitled to compensation on early 
termination of their term of office no individuals are 
involved in the determination of their own remuneration
performance graph
legislation introduced by the government requires this 
report to contain a graph showing the performance of the 
company compared with a ‘broad equity market index’ 
over a fiveyear period the committee has chosen the 
ftse allshare telecommunications index of which thus  
is a constituent this index was chosen because it shows  
the performance of the company relative to its industry peer 
group and is therefore particularly relevant to shareholders
total shareholder return  
source thomson financial
summary of emoluments made to directors £’000
aggregate emoluments paid to directors 1939
aggregate notional gains made by  
directors on exercise of share options 0
aggregate value of assets receivable 
under longterm incentive schemes 0
aggregate company contributions in respect  
of directors to money purchase pension schemes 0
number of directors with retirement benefits
money purchase schemes 0
defined benefit schemes 3
this graph shows the value by 31 march 2008 of £100 
invested in thus group plc on 31 march 2003 compared 
with the value of £100 invested in the ftse allshare 
telecommunications index the other points plotted are  
the values at intervening financial yearends
400
350
300
250
200
150
100
50
0
 mar 03 mar 04 mar 05 mar 06 mar 07 mar 08
thus group plc
ftse allshare telecommunications index
thus group plc summary annual report 2008

27 we have examined the summary financial statement 
which comprises the summary consolidated income 
statement the summary consolidated statement of 
recognised income and expense the summary group 
and parent company balance sheets the summary 
consolidated statement of cash flows the notes to the 
summary financial statement and the summary directors’ 
remuneration report set out on pages 25 to 27 and 
pages 29 to 32
this statement is made solely to the company’s members 
as a body in accordance with section 251 of the 
companies act 1985 our work has been undertaken 
so that we might state to the company’s members those 
matters we are required to state to them in such a statement 
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 work for this statement or for the opinions 
we have formed
respective responsibilities of directors and auditors
the directors are responsible for preparing the summary 
annual report in accordance with applicable united 
kingdom law
our responsibility is to report to you our opinion on the 
consistency of the summary financial statement within 
the summary annual report with the full annual financial 
statements the directors’ report and the directors’ 
remuneration report and its compliance with the relevant 
requirements of section 251 of the companies act 1985 
and the regulations made thereunder 
we also read the other information contained in the 
summary annual report and consider the implications 
for our report if we become aware of any apparent 
misstatements or material inconsistencies with the summary 
financial statement
basis of opinion
we conducted our work in accordance with bulletin 
19996 ’the auditors’ statement on the summary financial 
statement’ issued by the auditing practices board  
our report on the group’s full annual financial statements 
describes the basis of our audit opinion on those financial 
statements and the directors’ remuneration report
opinion
in our opinion the summary financial statement is 
consistent with the full annual financial statements  
the directors’ report and the directors’ remuneration report 
of thus group plc for the year ended 31 march 2008 
and complies with the applicable requirements of section 
251 of the companies act 1985 and the regulations 
made thereunder
kpmg audit plc 
chartered accountants  8 salisbury square 
registered auditor  london  
  ec4y 8bb
20 may 2008 
    
summary financial statement
statement of the independent auditors  
to the members of thus group plc
notes
a  the maintenance and integrity of the thus group plc website is the responsibility of the directors the work 
carried out by the auditors does not involve consideration of these matters and accordingly the auditors accept no 
responsibility for any changes that may have occurred to the financial statements or audit report since they were 
initially presented on the website
b  legislation in the united kingdom governing the preparation and dissemination of financial statements may differ from 
legislation in other jurisdictions

28
thus group plc summary annual report 2008     2008    2007
    £’000    £’000 
continuing operations 
revenue    576200   532693 
operating profitloss before restructuring costs   3990   9540
restructuring costs    –  1570
operating profitloss    3990     11  110
net financing expenses    6764   3975
loss before income tax   2774  15085
income tax expensecredit    3416  69599 
lossprofit from continuing operations   6190  54514 
discontinued operations
profit from discontinued operations net of tax   1986  29414 
lossprofit for the year attributable to the equity holders of the parent   4204  83928 
basic lossearnings per share pence   231  4663
diluted lossearnings per share pence   231  4616
directors’ emoluments pounds   1938781  2209 727
   2008    2007
   £’000    £’000 
foreign exchange translation differences    –  15
actuarial gains on defined benefit pension plan    2757  2978
income tax on income and expense recognised directly in equity    772  893
net income and expense recognised directly in equity    1985  2070
lossprofit for the year   4204  83928 
total recognised income and expense for the year 
attributable to the equity holders of the parent     2219   85998 
the parent company loss for the year is £594000 2007 profit £141000 no income or expense has been recognised 
directly in equity for either 31 march 2008 or 31 march 2007 
summary financial statement
summary consolidated income statement 
for the year ended 31 march 2008
summary consolidated statement  
of recognised income and expense
for the year ended 31 march 2008
thus group plc summary annual report 2008

29    group  company
  2008 2007 2008 2007
  £’000  £’000 £’000 £’000
assets
total noncurrent assets  505106 510359 1 27 1 5 1 135058
total current assets   199817 1444 18 87 87
total assets   704923 654777 127 238 1 35145
liabilities
total current liabilities   141329  1 32 11 5 228 24 1
total noncurrent liabilities   102393  51443 – –
total liabilities   243722 183558 228 241
net assets   461201 471 219 1 270 10 134 904
equity
issued capital   45758 45758 45758 45758
shares to be issued reserve   – 7300 – 7300
share premium account   39001 39001 39001 39001
merger reserve   586556 586556 19996 19996
capital redemption reserve   23248 23248 23248 23248
cumulative loss reserve   233362 230644 993 399
total equity attributable to the equity holders of the parent    461201 471 219 1 270 10 134 904
summary financial statement
summary group and parent company balance sheets
as at 31 march 2008

30
thus group plc summary annual report 2008 summary financial statement
summary consolidated statement of cash flows
for the year ended 31 march 2008
   2008    2007
   £’000    £’000 
lossprofit for the year   4204  83928
cash inflow before changes in working capital and provisions    57484  44748
cash generated from operations   53853  38959
net cash from operating activities   53924  3 1 1 38
net cash used in investing activities    52037  23003
net cash fromused in financing activities    38432  40068
cash and cash equivalents at the start of the year    31324  63257
cash and cash equivalents at the end of the year   71643  31324
approved by the board on 20 may 2008 and signed on its behalf by
william allan   john maguire 
chief executive   chief financial officer 
the summary financial statement on pages 29 to 32 is only a summary of information in the company’s annual report 
and financial statements it does not contain sufficient information to allow for as full an understanding of the results of  
the group and state of affairs of the parent company or of the group and of their policies and arrangements concerning 
directors’ remuneration as would be provided by the full annual report and financial statements members requiring  
more detailed information have the right to obtain free of charge a copy of the company’s full annual report and 
financial statements
the statutory financial statements have been delivered to the registrar of companies and the auditors have reported 
on them their report was unqualified and did not contain statements under sections 235 3 237 2 or 237 3 of the 
companies act 1985
for further information the full financial statements and the independent auditors’ report on those financial statements 
should be consulted copies of the full annual report and financial statements may be obtained free of charge on request 
from the company secretary at the company’s registered office members may elect to receive the full annual report and 
financial statements in place of the summary annual report for future years by writing to the company secretary
thus group plc summary annual report 2008

31 1 basis of preparation
the financial information has been prepared in accordance with international financial reporting standards ifrss as 
adopted by the eu 
the financial information is prepared on the historical cost basis the financial information is presented in pounds sterling 
rounded to the nearest thousand
the preparation of the financial information in conformity with ifrss as adopted by the eu requires the directors to make 
judgements estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities 
income and expenses the estimates and associated assumptions are based on historical experience and various other 
factors that are believed to be reasonable under the circumstances the results of which form the basis of making the 
judgements about carrying values of assets and liabilities that are not readily apparent from other sources actual results 
may differ from these estimates
the estimates and underlying assumptions are reviewed on an ongoing basis revisions to accounting estimates are 
recognised in the period in which the estimate is revised if the revision only affects that period or in the period of revision 
and future periods if the revision affects both the current and future periods
judgements made by management in the application of ifrss that have a significant effect on the financial statements and 
estimates with a significant risk of material adjustment in the next year are disclosed in note 36 in the full annual report 
and financial statements
2 earnings before interest tax depreciation including impairment and amortisation ebitda
   2008    2007
   £’000    £’000 
operating profitloss    3990   11  110
depreciation charge for the year   51120  48645
amortisation charge for the year   1909  3758
ebitda   570 1 9  41 293
ebitda before restructuring costs is calculated as follows 
operating profitloss   3990   11  110
restructuring costs    –  1570
depreciation charge for the year    51120  48645
amortisation charge for the year   1909  3758
ebitda before restructuring costs   570 1 9  42863
ebitda is a key measure used by the group’s management to assess the performance of the group as this is a  
nongaap measure and is not defined within international financial reporting standards as adopted by the eu  
this reconciliation has been provided
the figures quoted above are for continuing operations only
3 directors’ emoluments and interests
the aggregate amount of emoluments and gains on the exercise of share options but excluding pensions of the highest
paid director was £742358 2007 £918518 the aggregate of the gains made on the exercise of share options by  
the highestpaid director was £nil 2007 £31821 – after deducting tax and ni borne by the director
the aggregate of the gains made on the exercise of share options by the directors during the year was £nil 
2007 £80796 – after deducting tax and ni borne by the directors the 2003 sharesave scheme and the 2003 
performance share plan options were exercisable in the prior year
summary financial statement
notes to the summary financial statement
for the year ended 31 march 2008

32
thus group plc summary annual report 2008 ancillary information
notice of annual general meeting
this notice is important and requires your immediate 
attention
if you are in any doubt as to the action you 
should take you should consult immediately your 
stockbroker bank manager solicitor accountant  
or other independent financial advisor authorised 
under the financial services and markets act 2000
if you have sold or otherwise transferred all your 
shares in the company please send this notice and 
the accompanying documents to the purchaser or 
transferee or to the stockbroker bank or other agent 
through whom the sale or transfer was effected for 
transmission to the purchaser or transferee 
notice is hereby given that the annual general meeting of  
the company for 2008 will be held on thursday 31 july 2008  
at 1 100 am at the radisson sas hotel 301 argyle street  
glasgow g2 8dl for the following purposes
ordinary business
1  to receive and adopt the report of the directors and financial 
statements for the year ended 31 march 2008
2  to approve the directors’ remuneration report for the year 
ended 31 march 2008
3 to elect alison wood as a director
4 to reelect philip rogerson as a director
5 to reelect john maguire as a director
6  to reappoint kpmg audit plc as auditors of the company  
and to authorise the directors to fix their remuneration
special business
7  to consider and if thought fit to pass the following resolution 
which will be proposed as an ordinary resolution
  that the board be and it is hereby generally and 
unconditionally authorised in substitution for the authority 
conferred on it by all subsisting authorities 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 £361 162375 which authority shall expire 
at the conclusion of the next annual general meeting of the 
company after the passing of this resolution unless previously 
revoked or varied by the company in general meeting or 
if earlier 30 september 2009 save that 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 board may allot relevant securities in pursuance of such 
an offer or agreement as if the authority conferred hereby had 
not expired
8   to consider and if thought fit to pass the following resolution 
which will be proposed as a special resolution 
  that the board be and it is hereby empowered pursuant to 
section 95 of the companies act 1985 to allot equity securities 
within the meaning of section 94 of the said act for cash 
pursuant to the authority conferred by the previous resolution  
as if subsection 1 of section 89 of the said act did not apply 
to any such allotment provided that this power shall be 
limited to
 a  the allotment of equity securities in connection with a  
rights issue open offer or any other preemptive offer in 
favour of ordinary shareholders and in favour of holders  
of any other class of equity security in accordance with 
the rights attached to such class where the equity securities 
respectively attributable to the interests of such persons on 
a fixed record date are proportionate as nearly as may 
be to the respective numbers of equity securities held by 
them or are otherwise allotted in accordance with the 
rights attaching to such equity securities subject in either 
case to such exclusions or other arrangements as the board 
may deem necessary or expedient to deal with fractional 
entitlements or legal or practical problems arising in any 
overseas territory the requirements of any regulatory body 
or stock exchange or any other matter whatsoever and
 b  the allotment otherwise than pursuant to subparagraph 
a above of equity securities up to an aggregate nominal 
value of £2287 90450 or if less 5 of the issued ordinary 
share capital from time to time
  and shall expire at the conclusion of the next annual general 
meeting of the company after the passing of this resolution or 
if earlier 30 september 2009 save that the company may 
before such expiry make an offer or agreement which would 
or might require equity securities to be allotted after such expiry 
and the board may allot equity securities in pursuance of such 
an offer or agreement as if the power conferred hereby had  
not expired 
9  to consider and if thought fit to pass the following resolution 
which will be proposed as a special resolution 
 
 that the company be generally and unconditionally authorised 
for the purposes of section 166 of the companies act 1985 
to make market purchases within the meaning of section 
1633 of that act of ordinary shares of 25 pence each in the 
capital of the company upon such terms and in such manner 
as the directors of the company shall determine subject to the 
following restrictions and provisions 
 a   the maximum aggregate number of ordinary shares to 
be purchased pursuant to the authority granted by this 
resolution shall be 27 436551
 b  the minimum price exclusive of expenses which may 
be paid for an ordinary share is an amount equal to the 
nominal value of an ordinary share 
 c  the maximum price exclusive of expenses which may be 
paid for an ordinary share cannot be more than an amount 
equal to the higher of
  i  105 of the average of the closing middle market 
price for an ordinary share as derived from the london 
stock exchange daily official list for the five business 
days immediately prior to the day the purchase is 
made and
  ii  the price stipulated by article 51 of commission 
regulation ec no 22732003 the buyback and 
stabilisation regulation
 d  unless previously revoked or varied this authority shall 
expire at the conclusion of the next annual general meeting 
of the company or if earlier on 31 december 2009 and
 e  the company may make a contract or contracts to purchase 
ordinary shares before the expiry of this authority which 
will or may be executed wholly or partly after the expiry of 
this authority and may make a purchase of ordinary shares 
pursuant to any such contract or contracts
 by order of the board  registered office 
 david macleod  12 berkeley square 
 secretary  99 berkeley street 
 4 june 2008  glasgow g3 7hr
thus group plc summary annual report 2008

33 ancillary information
notice of annual general meeting – continued
i  pursuant to regulation 41 of the uncertificated securities 
regulations 2001 members will be entitled to attend and vote 
at the meeting if they are registered on the company’s register 
of members by 600 pm on 29 july 2008 or by 600 pm 
two days prior to the date of any adjournment of the meeting 
changes to entries on the register of members after that time 
shall be disregarded in determining the rights of any person  
to attend and vote at the meeting 
ii  any member entitled to attend and vote at the meeting is entitled 
to appoint a proxy or proxies to attend a proxy need not be a 
member of the company a separate form of proxy is enclosed 
completing and returning a form of proxy will not prevent any 
member from attending the meeting in person and voting should 
that member so wish if you are not a member of the company 
but you have been nominated by a member of the company to 
enjoy information rights you do not have a right to appoint any 
proxies under the procedures set out in this paragraph please 
read paragraph vii below
iii  members may register their proxy appointments or voting 
directions electronically via the wwwshareviewcouk website 
where full details of the procedure are given members will 
need the reference number card id and account number set 
out on the enclosed form of proxy if more than one proxy 
appointment is returned relating to any share either by paper 
or by electronic communication the proxy received last by the 
registrar before the latest time for receipt of proxies will take 
precedence the company will not accept any communication 
that is found to contain a computer virus
iv  crest members who wish to appoint a proxy or proxies through 
the crest electronic proxy appointment service may do so by 
using the procedures described in the crest manual crest 
personal members or other crest sponsored members and 
those crest members who have appointed a voting service 
providers should refer to their crest sponsor or voting service 
providers who will be able to take the appropriate action on 
their behalf
  in order for a proxy appointment or instruction made using  
the crest service to be valid the appropriate crest message 
a ‘crest proxy instruction’ must be properly authenticated  
in accordance with euroclear uk and ireland limited’s ‘eui’s’ 
specifications and must contain the information required for 
such instructions as described in the crest manual the 
message regardless of whether it constitutes the appointment 
of a proxy or an amendment to the instruction given to a 
previously appointed proxy must in order to be valid be 
transmitted so as to be received by equiniti id 7ra01 by 
no later than 1 100 am on 29 july 2008 no such message 
received through the crest network after this time will be 
accepted for this purpose the time of receipt will be taken 
to be the time as determined by the timestamp applied to 
the message by the crest applications host from which our 
registrars are able to retrieve the message by enquiry to crest 
in the manner prescribed by crest after this time any change 
of instructions to proxies appointed through crest should be 
communicated to the appointee through other means
  crest members and where applicable their crest sponsors 
or voting service providers should note that eui does not 
make available special procedures in crest for any particular 
messages normal system timings and limitations will therefore 
apply in relation to the input of crest proxy instructions 
it is the responsibility of the crest member concerned to 
take or if the crest member is a crest personal member 
or sponsored member or has appointed a voting service 
providers to procure that his crest sponsor or voting service 
provider take such action as shall be necessary to ensure that 
a message is transmitted by means of the crest system by any 
particular time in this connection crest members and where 
applicable their crest sponsors or voting service providers 
are referred in particular to those sections of the crest 
manual concerning practical limitations of the crest system 
and timings
  the company may treat as invalid a crest proxy instruction 
in the circumstances set out in regulation 355 a of the 
uncertificated securities regulations 2001
v  in order to facilitate voting by corporate representatives at the 
meeting arrangements will be put in place at the meeting so 
that a 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 b 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 a above
vi  as at 500 pm on 4 june 2008 the company’s issued share 
capital comprised 183032367 ordinary shares of 25p each 
each ordinary share carries the right to one vote at a general 
meeting of the company and therefore the total number of 
voting rights in the company as at 500 pm on 4 june 2008  
is 183032367 
vii  if you are a person who has been nominated under section 
146 of the companies act 2006 to enjoy information rights 
nominated person
you may have a right under an agreement between you  
and the member of the company who has nominated 
you to have information rights relevant member to be 
appointed or to have someone else appointed as a  
proxy for the meeting
if you either do not have such a right or if you have such  
a right but do not wish to exercise it you may have a 
right under an agreement between you and the relevant 
member to give instructions to the relevant member as  
to the exercise of voting rights
your main point of contact in terms of your investment in  
the company remains the relevant member or perhaps 
your custodian or broker and you should continue to 
contact them and not the company regarding any 
changes or queries relating to your personal details and 
your interest in the company including any administrative 
matters the only exception to this is where the company 
expressly requests a response from you

34
thus group plc summary annual report 2008 notes
resolution 1
the directors are required by law to present to the meeting the 
financial statements and the report of the directors and auditors  
for the year ended 31 march 2008
resolution 2
the shareholders are being asked to vote on the remuneration report 
relating to the directors and senior executives the vote is advisory 
and the directors’ entitlement to remuneration is not conditional on the 
resolution being passed 
resolutions 3–5
the articles of association require that directors stand for election  
by the shareholders at the first annual general meeting following 
their appointment and also that onethird of the directors retire at 
every annual general meeting the board following its evaluation 
of the performance of those directors standing for election and 
reelection confirms that each of those directors performs effectively 
and demonstrates commitment to the role the biographical details  
of each of the directors who are offering themselves for election  
or reelection are shown on pages 22 and 23 the election and  
reelection of those directors shall subject to the passing of the 
relevant resolutions take effect immediately upon the conclusion  
of the meeting
resolution 6
the reappointment of the auditors is proposed following assessment 
of the audit service by the audit committee the board considers the 
auditors to be effective and independent in their role
resolution 7
under the companies act 1985 section 80 the directors of a 
company may only allot unissued shares if authorised to do so 
passing this resolution will continue the directors’ flexibility to act in 
the best interests of shareholders when opportunities arise by issuing 
new shares 
in resolution 7  the company is seeking authority to allot shares 
with a nominal value of up to £361 162375 which represents 
approximately 14446495 ordinary shares of 25 pence each or 
approximately 8 of the company’s issued ordinary share capital 
the directors intend to use this authority which will lapse at the 
conclusion of the next annual general meeting of the company  
to be held in 2009 or if earlier 30 september 2009 for general 
corporate purposes 
resolution 8
if shares are to be offered for cash the companies act 1985 
requires that those shares are offered first to the existing shareholders 
in proportion to the number of shares they hold at the time of the 
offer however it may sometimes be in the interests of the company 
for the directors to allot shares other than to shareholders in 
proportion to their existing holdings at last year’s annual general 
meeting shareholders authorised the board subject to specified 
limits
to allot shares in connection with a rights issue defined in  
summary as an offer of equity securities to shareholders which  
is open for a period decided by the board subject to any limits or 
restrictions which the board thinks are necessary or appropriate
to allot shares not in connection with a rights issue up to a specific  
amount so that the preemption requirement does not apply to the 
allotments of shares for cash up to that amount
this authority requires to be renewed annually the directors will 
be empowered by resolution 8 to allot equity securities within the 
meaning of section 94 of the companies act 1985 for cash without 
complying with the statutory preemption rights of shareholders under 
section 89 of the companies act 1985 up to a maximum nominal 
amount of approximately £2287 90450 this disapplication is 
limited to allotments made to ordinary shareholders and holders of 
any other class of equity security in proportion as nearly as may 
be to their holdings and otherwise to allotments up to a maximum 
of 9151618 ordinary shares representing approximately 5 of the 
company’s issued ordinary share capital 
this means that the interests of existing shareholders are protected 
if a share issue is not a rights issue the proportionate interest of 
existing shareholders could not without their agreement be reduced 
by more than 5 of the value of the new shares in cash issued to 
new shareholders by reference to the issued share capital at the date 
of this notice there are no current plans to allot shares except in 
connection with the employee share schemes
resolution 9
this resolution which is being proposed as a special resolution 
will give the directors authority to make market purchases of the 
companys ordinary shares up to a maximum aggregate number 
of 27 436551 ordinary shares representing 1499 of the share 
capital of the company in issue at 4 june 2008 this resolution 
authorises the company to pay a maximum price per share of 
an amount equal to the higher of i 105 of the average closing 
middle market price for an ordinary share for the five dealing days 
preceding any such purchase and ii the price stipulated by article 
51 of commission regulation ec no 22732003 the buyback 
and stabilisation regulation being the higher of the last independent 
trade for an ordinary share or the highest current independent bid 
for an ordinary share as derived from the trading venue where the 
purchase is carried out 
any shares repurchased by the company under the authority would 
be cancelled there is currently no intention to hold such shares 
in treasury the company did not hold any ordinary shares in the 
capital of the company in treasury at 4 june 2008 being the latest 
practicable date prior to the publication of this notice except for 
1618548 marketpurchased ordinary shares held in the employee 
share trust in connection with employee share schemes
the directors have no present intention of exercising on behalf of the 
company the authority to purchase the company’s ordinary shares 
the directors would only cause the company to purchase shares if 
in their opinion the expected effect would be to result in an increase 
in earnings per share and would benefit shareholders generally  
the directors are making no recommendation as to whether 
shareholders should sell their shares in the company 
at 4 june 2008 being the last practicable date prior to the 
publication of this notice there were options outstanding over 
4879538 ordinary shares in the capital of the company which 
represent approximately 266 of the share capital of the company 
in issue at that date if the authority to purchase the company’s 
ordinary shares was exercised in full the shares issued pursuant 
to these options would represent approximately 313 of the 
company’s issued share capital
recommendation of the board of directors  
in respect of all items of business
the board is of the opinion that all of the proposed resolutions are  
in the best interests of shareholders as a whole and of the company 
accordingly the board recommends that you vote in favour of each 
resolution as the directors intend to do in respect of their own beneficial 
shareholdings held at the time of the annual general meeting
thus group plc summary annual report 2008

35 1  the notice of meeting is being issued to all shareholders 
enclosed with this notice you will find an attendance card and  
a form of proxy
2  if you are attending the meeting you should bring the 
attendance card
3  a shareholder is entitled to appoint one or more proxies to 
attend speak and vote on their behalf a proxy need not be a 
shareholder if you wish to appoint a proxy or proxies you must 
complete the enclosed form of proxy which must be deposited 
with the registrars equiniti the causeway worthing  
west sussex bn99 6da not later than 1 100 am on  
29 july 2008 if you do not wish the form of proxy to be seen 
by anyone except the company and its registrars you should 
post it in an envelope to equiniti freepost the causeway 
worthing west sussex bn99 6da
  alternatively if you wish to register your proxy appointment 
electronically through the internet please use  
wwwsharevotecouk where details of the procedure are 
provided you will have to disclose the reference number card 
id and account number shown on the enclosed proxy form
  crest members should refer to the notice of annual general 
meeting on pages 33 to 35 for instructions regarding the crest 
electronic proxy appointment service
4  copies of the executive directors’ service contracts letters of 
appointment for the nonexecutive directors a statement of 
all transactions of directors and of their families in the share 
capital of the company for the year ended 31 march 2008 
and a copy of the company’s memorandum and articles of 
association will be available for inspection at the company’s 
registered office during normal business hours on each day 
except saturday sunday and any public holidays from the 
date of the notice of meeting until 31 july 2008 and also 
at the place of the agm from 1030 am on the day of the 
meeting until the conclusion of the meeting copies of the  
same will also be available on the same days at the offices  
of the company’s solicitors biggart baillie dalmore house  
310 st vincent street glasgow g2 5bb
introduction
after his opening remarks and following a presentation from the  
chief executive the chairman will explain in detail the procedures 
for the conduct of the meeting particularly for asking questions and 
voting on resolutions the resolutions which are set out in the notice 
of annual general meeting will then be put to the meeting
how to ask questions
at the meeting shareholders will be given the opportunity to ask 
questions from question points which will be clearly indicated
at each question point a member of staff will be available to help 
you please tell the member of staff the nature of your question and 
give your name and address you may be asked to wait until called 
upon to speak please remember to state your name before asking 
your question
how to vote
you should raise above your head your voting card which you will 
receive when you register indicating that you are voting either for or 
against each resolution as it is put to the vote by the chairman only 
shareholders authorised representatives of corporate shareholders 
or proxies may vote on a show of hands if you are attending as 
a corporate representative for a shareholder you will receive an 
appropriate identification card at registration
time
the doors will open at 930 am and the meeting will start promptly 
at 1 100 am
camerasvideo or tape recordersmobile phones
no cameras video recorders or tape recorders will be allowed into 
the meeting mobile phones must be switched off during the meeting
registration
to ensure your entrance to the meeting is dealt with promptly please 
bring your attendance card with you and register at the registration 
desk inside the hotel
customer enquiries
company personnel will be available if you have any questions as  
a customer of the company
shareholder information
if you have any questions concerning your shareholding please 
speak to the staff at the shareholders’ enquiry desk
disabled persons
special arrangements have been made to offer every assistance to 
people with disabilities if you have a companion to assist you they 
will be admitted to the meeting as a guest guide dogs will also be 
permitted the auditorium has an induction loop system for the deaf 
or hard of hearing and your hearing aid should be switched to the 
’t’ position
first aid
first aid facilities are available ask any member of staff for assistance
emergency precautions
an announcement will be made if there is a fire warning or  
other emergency emergency exits are marked clearly around  
the auditorium in case of a medical emergency please contact  
a member of staff
refreshments
refreshments will be available between 930 am and 1050 am
important
if you have any questions about the meeting or if you need any 
assistance please telephone the annual general meeting enquiry 
line on 0141 566 3127 from monday 30 june 2008 during normal 
working hours
ancillary information
general information for shareholders  
attending the annual general meeting

36
thus group plc summary annual report 2008 analysis of shareholders as at 31 march 2008
  number of  numbers
range of holdings shareholders of shares
1–100 287 526 5402914 
101–200 12694 1790592
201–600 8003 2793030
601–1000 1950 1601597
1001–5000 2208 4475093
5001–100000 479 9227 462
100001 and above 120 157 741679
financial calendar
31 july 2008  annual general meeting
november 2008  interim results for the six months ended  
 30 september 2008
may 2009  preliminary results for the year ended  
31 march 2009
annual general meeting
the annual general meeting will be held at the radisson sas hotel 
301 argyle street glasgow g2 8dl on thursday 31 july 2008 at 
1 100 am details of the resolutions to be proposed at the annual 
general meeting are contained in the notice of annual general 
meeting on pages 33 to 35
dividend
the directors have not recommended the payment of a dividend for 
the year ended 31 march 2008
listing
ordinary shares of thus group plc have been admitted to the 
official list of the uk listing authority and are traded on the  
london stock exchange
share price
the share price is available from the thus website at wwwthusnet 
and in national newspapers
shareholder administration
any queries relating to the administration of shareholdings such as 
change of address change of ownership and amalgamation of 
multiple accounts should be referred to the registrar
equiniti 
the causeway 
worthing 
west sussex 
bn99 6da
tel 0871 384 2124 
tel 0871 384 2255 for textelhard of hearing 
fax 0871 384 2100
  calls to this number are charged at 8p per minute from a  
bt landline other telephony providers costs may vary
share dealing 
thus group’s shares may be bought or sold at competitive rates 
for further details please contact stocktrade on 0845 601 0995 
quoting lowc0078 alternatively please contact equiniti on  
0871 384 2020 or at wwwshareviewcouk
sharegift
sharegift is an independent registered charity which provides a free 
service for shareholders wishing to give small holdings of shares to 
benefit charitable causes it may be especially useful for those who wish 
to dispose of a small parcel of shares which would cost more to sell than 
they are worth there are no capital gains tax implications on gifts of 
shares to charity and it is also possible to obtain income tax relief further 
information can be obtained at wwwsharegiftorg or from the thus 
shareholder helpline on 0871 384 2124
contact information
secretary and registered office
david macleod 
thus group plc 
12 berkeley square 
99 berkeley street 
glasgow 
g3 7hr
registered number sc 226738
for enquiries relating to the company’s operations and performance 
please contact either
investor relations  corporate communications 
thus group plc  thus group plc 
12 berkeley square  12 berkeley square 
99 berkeley street  99 berkeley street 
glasgow  glasgow 
g3 7hr  g3 7hr
tel 0141 566 3176  tel 0141 566 3642
thus’ services
information about thus’ services can be found on the thus website 
at wwwthusnet
ancillary information
shareholder and contact information

37
thus group plc summary annual report 2008 wwwthusnet
thus group plc
12 berkeley square 
99 berkeley street
glasgow g3 7hr


Summary:
 overview
financial highlights
1
£40m  £1 3  5 m
operating profit
3
£

60

m  £1 9  7 m
free cash flow
4
£ 5 7 0 m 33
ebitda
2
£5 76  2 m 8
revenue
revenue £m
1  represents continuing operations and excludes demon netherlands  
and contact centre
2  earnings before interest tax depreciation including impairment  
amortisation and restructuring costs  
see note 9 to the consolidated financial statements
3  operating profitloss before restructuring costs
4  operating cash after interest taxation and capital expenditure
5762
5327
3500
ebitda
2
 £m
5 7 0
429
3 76
2008
2007
2006
operating profitloss
3
 £m
free cash flow
4
 £m
40
95
257
 11 6
11  1
2008
2007
2006
2007
2006
2008 60
2007
2006
2008
thus group plc annual report 2008

1