focused on delivering
revolutionising eye care
optos plc annual report  accounts 2007 optos at a glance 
optos plc is a leading and rapidly growing medical technology company 
for the design development manufacturing and marketing of devices 
that image the retina the lightsensitive area at the back of the eye eye and 
noneye diseases often first exhibit in the periphery of the retina and can 
go undetected in routine eye examinations
optos’ platform technology is the panoramic200 scanning laser 
ophthalmoscope device – known as the p200 in a quarter of a second 
the p200 device produces a high resolution ultra widefield image of up 
to 200 degrees or approximately 82 of the retina in a single capture 
compared to routine examinations which typically provide a narrowfield 
view of approximately 5 of the retina
the optomap® retinal exam image provides eye care practitioners 
operating in primary eye and healthcare with clinically useful information 
that facilitates the early detection of disorders and diseases evidenced 
in the retina such as glaucoma diabetic retinopathy and agerelated 
macular degeneration retinal imaging can also indicate evidence of 
noneye or systemic diseases such as diabetes hypertension and certain 
cancers the company has regulatory clearance ce and fda 510k 
to market a second device – the p200ma this is a new imaging platform 
that will be used in the secondary and medical care markets and 
provides ophthalmologists and retinal specialists with advanced image 
capture and image review capabilities in disease diagnosis and treatment 
monitoring optos’ technology provides an unequalled combination 
of widefield retinal imaging speed and convenience for both 
practitioner and patient and can help save sight and save lives 
optos is incorporated in scotland under the companies act 1985 with 
registered number sc139953 optos’ shares trade on the main market 
of the london stock exchange under the symbol opts the company 
maintains its registered office at queensferry house carnegie business 
campus dunfermline scotland ky1 1 8gr united kingdom
contents
group highlights 1
a closer look at optos 2
chief executive qa 4
chairman’s statement 6
operational review 8
financial review 12
board of directors 14
corporate social responsibility 16
corporate governance 1 7
directors’ remuneration report 22
directors’ report 30
shareholder information 32
statement of directors’ responsibilities 39
independent auditors’ report 40
consolidated income statement 41
consolidated balance sheet 42
consolidated statement of changes in equity 43
consolidated cash flow statement 44
notes to the consolidated financial statements 45
independent auditors’ report 65
company balance sheet 66
notes to the company financial statements 67
glossary of terms 74 group highlights
“ 2 0 0 7 w a sa n o t h e r o u t s t a n d i n gy e a r f o ro p t o s p l cw i t hr e v e n u e
up by 28 on the year to 868 million 28 growth in our
totalinstalledbaseto3367medicaldevicesandacontinuing
strong rate of contract renewals at 89 for the year”
dr john m padfield chairman 
28
increase in global revenue to
868 million
52
increase in operating profit before
sharebased payments
 16m
profit before tax versus
a loss of 11 million in 2006
continued financial growth
28 growth in revenue to 868m
52 growth in operating profit before sharebased 
payments to 98m
16 million full year profit before tax versus a loss 
of 11 million in 2006
rapid geographical expansion
27 growth in north american revenues
57 growth in european revenues
28 increase in devices installed worldwide to 3367 
robust business model
90 of revenue on payperpatient business model
97 of customers delivering the optomap® retinal 
exam through recurring revenue contracts
89 contract renewal rate
major investment in future growth 
23 increase in average headcount 
19 increase in customerfacing field staff
67 increase in rd investment












  
year ended year ended year ended
m 30 sep 2005  30 sep 2006  30 sep 2007
revenue 484 677 868
operating profit before sharebased payments 45 65 98
operating profit after sharebased payments 33 43 65
lossprofit before tax 26 11 16
financial profile
2005 2006 2007
484
45
33
26
65
43
11
98
65
16
677
868
optos plc annual report  accounts 2007 1 a closer look at optos
products
primary care
the company’s core product is the optomap® retinal exam which is 
produced by the p200 device and is used in primary level eye and healthcare 
for the screening of eye and noneye diseases and disorders the optomap® 
retinal exam is a payperpatient procedure and is performed principally 
by optometrists
secondary care
optomap® plus medical retinal exam is also performed by the p200 and is 
used in secondary level care using additional capabilities in the image capture 
and review process to facilitate diagnosis and documentation of previously 
detected pathology this exam provides access to medical reimbursement 
and is performed principally by ophthalmologists
medical care
optomap® fa medical procedure is performed by the p200ma device and offers 
retinal specialists and medical doctors advanced diagnostic monitoring and 
treatment capabilities for particular eye diseases and disorders including diabetic 
retinopathy and agerelated macular degeneration the procedure provides 
access to medical reimbursement and is carried out by retinal specialists and 
medical doctors 
proprietary software
v2® vantage is a key strategic element in strengthening the partnership the 
company shares with its customers with the new features in the software 
designed to keep these practitioners on the leading edge of retinal imaging 
technology the new features include resmax™ and 3dwrap™ 
resmax™ is a capability that utilises high resolution images captured over a 
smaller field of view which has proven particularly useful for diseases affecting 
the central pole such as glaucoma and agerelated macular degeneration 
3dwrap™ allows the practitioner to create a three dimensional representation 
of the human eye onto which the patient’s optomap® retinal exam is projected 
this graphical capability allows for a complete visualisation of the shape and 
location of the disease
these new features also strengthen the practitionerpatient relationship and 
support the patient education process further enhancing the overall experience 
the patient has during a comprehensive eye examination
product positioning 
clinical value
wellness imaging
eye and health screening
diagnosis 
disease tracking 
treatment monitoring
advanced diagnosis
advanced disease tracking 
advanced treatment monitoring
application
optometrists
general ophthalmologists
retinal specialistsother medical specialists
reimbursement
patient pay
optomap®
optomap® fa
optomap® plus 
optos plc annual report  accounts 2007 2 germany
germany is one of the most advanced 
preventative healthcare markets in 
europe and is a pure ophthalmology 
market ophthalmologists largely 
operating in private practice provide 
both primary and secondary level care 
payperpatient at the point of service 
accounts for approximately 90 of the 
market the company has determined 
that germany holds the greatest 
market potential for growth in 
europe with an estimated 2500 
addressable practices
uk
routine eye examinations tend 
to be carried out in a retail setting 
by ophthalmic opticians who tend 
to focus more on retail sales and 
refraction than on preventative 
care through wellness screening 
the culture towards patient payment 
at point of service is less mature than 
in the company’s other markets 
the addressable market in the uk is 
therefore much smaller and estimated 
to be 400 optometric practices
established markets
usa
the united states is the world’s largest 
market for eye care comprehensive 
eye examinations are performed 
by either an optometrist or 
ophthalmologist and include an 
examination of the retina awareness 
levels of preventative care are high 
and there is an accepted culture of 
patient payment at point of service 
the united states offers the greatest 
potential for growth with an estimated 
20000 addressable practices
canada
canada offers many of the same 
attractive market characteristics 
as the usa both optometrists and 
ophthalmologists conduct eye 
examinations and there is a strong 
emphasis on and awareness of the 
benefits of preventative care and 
wellness screening the culture 
towards patient payment at point 
of service is less established but 
becoming more mainstream 
the addressable market is 
estimated at 1300 practices
markets
optos plc is headquartered in the united kingdom 
and has operations in north america and europe 
the company’s established markets include the usa 
canada the uk and germany at the beginning of the 2008 
financial year the company expanded its operations into four 
new european country markets – france spain switzerland 
and norway market characteristics vary from country to 
country which shape the company’s approach in entering 
and operating in each market 
new markets
france and spain
growth will initially be generated 
from within the advanced secondary 
and medical healthcare market 
with an immediate addressable 
market estimated at 320 retinal 
specialist locations the company 
will progress to an offering within 
the primary care market through 
ophthalmologists operating in private 
practice once a foothold has been 
established in the secondary and 
medical care market segment 
switzerland
switzerland is a pure ophthalmology 
market where ophthalmologists carry 
out primary secondary and medical 
care the immediate addressable 
market is estimated at 250 private 
medical practices
norway
norway represents an opportunity 
for growth in the primary care market 
carried out by optometrists 
the immediate addressable market is 
estimated at 200 optometric practices
established markets
new markets
optos plc annual report  accounts 2007 3 chief executive qa
answerstocommonquestionsabout
the performance future and strategy
of optos
1 growth
where will growth 
come from
3 products
how are your products 
differentiated
our p200ma device is a new 
imaging platform that produces 
the optomap® fa medical 
procedure it opens new global 
market segments for us within the 
medical care segment the doctor 
injects the patient with sodium 
fluorescein which rapidly works 
its way through the patient’s blood 
vessels and enables the doctor to 
dynamically and rapidly capture 
ultra widefield images of the 
fluoresced blood vessels of the 
patient’s retina in real time 
this device offers advanced image 
capture and review capabilities 
in disease diagnosis and treatment 
monitoring and is clinically 
very useful in the diagnosis and 
management of diabetic patients 
by enabling doctors to carry out 
highly targeted partial panretinal 
photocoagulation this will allow 
for new treatment paradigms 
and improved patient outcomes 
for diabetics the optomap® 
fa medical procedure provides 
practitioners with access to 
reimbursement
2 business model
how does your 
business model work
growth is always underpinned by a 
strong foundation so let me start by 
talking about the fundamentals of our 
business we are fast growing we have 
significant competitive advantage we 
have a strong recurring revenue model 
and we have proprietary technology 
fast growing is selfexplanatory 
our competitive advantage is because 
there is no other diagnostic device that 
can capture a digital ultra widefield 
image of approximately 82 of the 
retina at once with approximately 85 
of our revenue recurring each year we 
have good visibility and predictability 
and this provides for reliable growth 
and sustainable margin expansion
our technology is at the leading edge 
and enables healthcare practitioners 
to deliver a higher standard of care to 
their patients 
we have four strategic imperatives 
designed to drive growth we will 
deepen our penetration in our more 
established markets in the usa canada 
germany and the uk this will be done 
through new installations of our devices 
and working closely with our customers 
to increase the number of optomap® 
retinal exams being performed in each 
customer practice location we will 
look to gain share in our new markets 
spain france switzerland and norway 
we have broadened our product 
offering with the optomap® fa medical 
procedure and this will allow us to 
establish a presence in the secondary 
and medical care markets we will 
aggressively market this product to 
ophthalmologists in the usa germany 
switzerland spain and france finally 
we will maintain high levels of customer 
satisfaction to drive contract renewal 
rates which for the year stood at 89
we believe that our ongoing 
servicedriven relationship with 
healthcare practitioners is a key 
strength initially practitioners 
typically enter into initial minimum 
threeyear payperpatient agreements 
with the company
these agreements enable the 
practitioners to use our devices 
in their practices and offer the 
optomap® retinal exam to their 
patients optos receives revenue 
from the sale of the optomap® 
retinal exam by the practitioner to 
the patient subject to a minimum 
monthly payment over the life of 
the agreement and thus benefits 
from a recurring revenue model 
we provide ongoing clinical 
educational and marketing resources 
as well as ongoing technical 
assistance to support the practitioner 
in increasing the number of patients 
they see and to maximise adoption 
rates of the optomap® retinal exam 
as a result practices have no 
capital outlay and benefit from 
an increase in practice revenue 
we also sell a small number of our 
devices to certain specialist customers 
on a capital sales basis whose 
business practice specifies a capital 
purchase model recurring revenue 
is also generated from these customer 
locations through service and upgrade 
agreements devices installed 
on a capital sales basis represent 
approximately 3 of our total 
installed base 
our p200 device generates the 
optomap® retinal exam and is 
used in primary care and wellness 
screening it is a patient pay at 
point of service examination 
unlike conventional ways of looking 
at the retina the p200 device provides 
a highresolution ultra widefield 
digital image that encompasses 
approximately 82 of the retina in 
a single capture this enables the 
practitioner to view a substantial 
portion of the retina all at once and 
facilitate the early detection of disease 
from the centre to the periphery of 
the retina these diseases include 
agerelated macular degeneration 
diabetes hypertension retinal 
detachments and tears and certain 
cancers an image from the optomap® 
retinal exam image can be captured 
in a quarter of a second and does 
not require pupil dilation whereas 
conventional retinal imaging takes 
longer is more invasive typically 
captures about 5 of the retina 
at once and is altogether less 
patientfriendly critically the 
optomap® retinal exam image 
is digitally retained thus making 
comparisons with future examinations 
very straightforward in monitoring any 
changes to the patient’s health
optomap® plus medical retinal exam 
is also performed by the p200 and 
is used in secondary care using 
additional capabilities in the image 
capture and review process to facilitate 
diagnosis and documentation of 
previously detected pathology 
this exam provides access to medical 
reimbursement
optos plc annual report  accounts 2007 4 4 culture
is optos changing as it becomes 
a more mature company
our aim is to ensure that the 
optomap® retinal exam becomes 
the accepted standard of care 
in primary care in those patient 
examinations where pathology 
exhibits our optomap® plus medical 
retinal exam provides practitioners 
with additional capabilities in the 
image capture and review process 
this facilitates diagnosis and 
documentation this new product 
was rolled out to our customer base 
in north america in 2007 and usage 
is expected to increase substantially 
in the coming financial year we will 
launch the p200ma and the 
left melanomas circled can grow 
undetected within the retina if discovered 
early these masses can be treated before they 
cause serious damage and spread to other 
areas of the body through the bloodstream
5 outlook
what does the future 
hold for optos
optomap® fa medical procedure 
in early 2008 this is a very exciting 
new imaging platform that holds 
much promise particularly for 
diabetic patients and how doctors 
will be able to treat the disease in a 
much more targeted and efficient 
way this will result in significantly 
improved patient outcomes
we are very excited about the 
opportunities that lie ahead let’s first 
consider some data and some of the 
key business drivers 
in the united states our largest market 
the economic impact associated with 
adult vision problems is immense – 
514 billion in 2007  there are 70 million 
citizens aged 55 or over there are 
20 million diabetic patients and macular 
degeneration is the leading cause of 
blindness in adults over 55 currently 
diabetic retinopathy affects over 
5 million americans and in addition to 
the impact that the disease can have on 
quality of life diabetic retinopathy costs 
490 million annually in direct costs for 
outpatient inpatient and prescription 
drug services increased incidence of 
disease is directly associated with an 
aging population and driven by lifestyle 
choices with many downstream 
consequences general awareness 
of prevention is another driver 
which is resulting in a public health 
shift whereby patients are taking more 
interest in and greater control of their 
personal healthcare technological 
advancement aids earlier detection of 
pathology and provides new avenues 
for monitoring and managing disease 
what excites us is that our technology 
and the ultra widefield image of 
the retina that our devices capture 
respond directly and uniquely to these 
trends and to the need for earlier stage 
detection and diagnosis of both eye 
and noneye diseases we know that 
regular screening and preventative 
care plays a vital role in preventing loss 
of sight and detecting the onset of 
systemic disease 
yes change is inevitable as a company 
grows in size and expands into new 
geographic markets we are doing well 
at managing our growth but let me 
talk about the things we care about 
at optos things that will not change 
regardless of where we operate 
at all points in our development 
we keep reminding ourselves of 
the things that it takes to succeed 
integrity passion for innovation 
commitment to helping our 
customers deliver a higher standard 
of healthcare making optos a great 
place to work setting goals and 
objectives and accountability and 
delivery these are very important at 
optos and the heart of our culture 
comes from these things
traditionally we have been strong 
in some of these areas integrity 
our passion for innovation and our 
commitment to our customers have 
never been in shortage we have also 
been good at ensuring we provide 
a good working environment for 
our employees and in setting clear 
goals and objectives we work hard 
at being accountable in our delivery 
and are very focused on continuous 
improvement at every opportunity 
i remind people that we have to strive 
to improve on all of these fronts
optos plc annual report  accounts 2007 5 earlier and better detection is assuming greater importance in eye and healthcare our technology supports
healthcare practitioners in their commitment to providing stateoftheart efficient and thorough clinical
patient care and offers them enhanced diagnostic monitoring and treatment capabilities at an earlier stage
– this can help save sight and save lives
focused on delivering leading retinal imaging technology
chairman’s statement
dr john m padfield
2007 was another outstanding year 
for optos plc with revenue up by 
28 on the year to 868 million 
28 growth in our total installed 
base to 3367 medical devices and 
a continuing strong rate of contract 
renewals at 89 for the year we are 
delighted to deliver a 16 million 
profit before tax compared to a loss 
of 11 million last year 
retinal disease
retinal disease is growing rapidly 
macular degeneration and diabetes 
are at the epidemic stage in the usa 
macular degeneration is the leading 
cause of blindness in adults over 
55 and over 20 million americans 
have diabetes another 6 million are 
unaware they have diabetes 
the current ability to conduct a 
medical examination of the inside 
of the eye is severely limited 
conventional examinations 
use devices such as a direct 
ophthalmoscope or fundus camera 
these devices are limited in what they 
can capture and typically only a very 
small area of the retina can be seen at 
any one time this inability to inspect 
a greater area of the retina without 
excessive manipulation raises the 
possibility of missing the early signs 
of retinal disease 
diagnostics
medical diagnostics has developed 
in its importance in recent years 
more and more practitioners 
and patients are looking to earlier 
diagnosis to detect disease and to 
monitor treatment optos has been 
able to establish a unique position 
in the diagnostics space through its 
patented scanning laser technology 
which enables healthcare practitioners 
to capture an ultra widefield view 
of the retina this assists with the 
earlier detection and diagnosis of 
both eye and noneye diseases 
evidenced in the retina in tracking 
and monitoring the development of 
diseases and in optimising treatment 
plans through ongoing evaluation 
keeping patients healthier longer 
reduces hospitalisations and avoids 
the increased costs associated with 
chronic care 
focus on the future
optos continued to invest for 
the future in 2007 through the 
development of new products and 
strengthening our infrastructure 
for expansion into new geographic 
markets this along with our ever
present focus on delivering the 
highest levels of customer service 
is what will drive our growth
products
during the year approximately 
4 million optomap® retinal exams 
were conducted by our customers in 
the primary care market secondary 
and medical care offer exciting new 
opportunities in disease management 
which opens new global market 
segments we completed the 
integration of the optomap® plus
medical retinal exam into our 
customer base retinal specialists 
comprise a subspecialty in the 
medical market which we started 
addressing with our p200ma device 
this is a new ultra widefield imaging 
platform on which retinal specialists 
can perform the optomap® fa medical 
procedure it will be particularly useful 
in the diagnosis and management 
of diabetic patients enabling new 
treatment paradigms and improved 
patient outcomes endocrinologists 
also treat diabetes with diet and 
medications including insulin 
they work closely with patients to 
control blood sugar and monitor 
them so that they can prevent health 
problems endocrinology offers 
optos another medical subspeciality 
opportunity for the p200ma device 
markets
we completed our market research 
and trial placements of our retinal 
imaging devices in france spain 
switzerland and norway expanding 
into these markets fits with the 
company’s strategic plan and will 
augment the growth that is being 
generated by our more established 
european business in germany and 
the uk we are extremely excited 
about the opportunity in each of 
these new markets which offer 
growth potential in primary 
secondary and medical care 
corporate governance
i am very focused on ensuring that 
the board defines the best strategic 
value for the company and its 
shareholders while boards will always 
be required to spend time and energy 
on the compliance and due diligence 
functions this should not be at the 
expense of the time devoted to the 
advisory assistance that boards can 
provide to management while these 
oversight functions are being fully 
carried out by the board we continue 
to place emphasis on engaging our 
directors in strategic dialogue to 
ensure that the company benefits 
from our collective experience 
our approach of striking the absolute 
right balance of oversight and 
strategic counsel will continue
the board
the board welcomed thomas w 
butts saad h hammad and 
rosalyn s wilton as directors this year 
the board was delighted to have 
recruited an executive of tom butts’ 
calibre as chief executive officer 
tom has a very strong understanding 
of the global healthcare marketplace 
and direct experience in the united 
states our largest market as non
executive directors saad and ros 
bring extensive commercial operating 
and strategic international business 
experience to the company they are 
very important additions to optos and 
their combined experience is already 
proving to be of considerable value 
to the company as it grows into new 
market segments and geographies 
during the year ian stevens stepped 
down from the board following 
the completion of his international 
assignment as general manager of our 
business operation in north america
our people 
the board thanks tom 
his management team and all 
of our employees for another 
tremendous year the results the 
company produced in 2007 rely 
upon the dedication and commitment 
of an exceptional group of people 
who work hard every day to make us 
a better medical devices company 
one that is making a real difference 
by helping healthcare professionals 
deliver a higher standard of clinical 
care to their patients
optos has a very exciting future
we are looking forward to 2008
dr john m padfield
chairman
“ opt o s h a s b e en able t o establi s h
auniquepositioninthediagnostics
spacethroughitspatented
scanning laser technology
which enables healthcare
practitioners to capture an ultra
widefield view of the retina”
optos plc annual report  accounts 2007 6 malignant choroidal melanoma 
and retinal detachment
the optomap® retinal exam was instrumental in 
detecting the detachment and the subsequent detection 
and diagnosis of the cancer the child’s mother credits the 
optomap® retinal exam for discovering the melanoma 
which if left undetected could have resulted in her 
daughter losing her life
“theoptomap® retinal exam
is an integral diagnostic tool
and would be beneficial to
anymodalityofpractice”
dr scott thiele jacksonville fl
an 8year old girl presented with a slight blur in the vision 
of her right eye there were no other symptoms to perform 
a thorough dilated examination on a child is extremely 
difficult this was her first eye examination and her parents 
were reluctant to have her eyes dilated 
dr thiele ordered the optomap® retinal exam as part of 
his protocol for conducting a comprehensive examination 
he discovered a large retinal detachment based on her age 
and the size of the detachment dr thiele thought cancer 
was a possibility he immediately referred her to wills eye 
hospital for further assessment the differential diagnosis 
was a retinal detachment caused by a malignant choroidal 
melanoma unfortunately her eye had to be enucleated to 
remove the tumour the young girl now visits her medical 
doctor twice a year and this doctor has confirmed that 
while it is 99 certain that the eye was the primary lesion 
she will need to be free of any cancer cells for a good 
number of years before being considered in full remission 
case study 1
dr scott thiele
optos plc annual report  accounts 2007 7 operational review
thomas w butts chief executive officer
time last year in the united states 
we installed 571 devices in new 
customer practice locations during 
the year taking our installed base 
from 2324 to 2895 devices and 
representing 25 year over year 
growth this represents approximately 
14 penetration of the total us 
addressable market in primary 
care optometry 
our national accounts group 
continued focus on developing 
new business within the corporate 
customer retail chain segment 
at both the regional and national 
levels we developed a stronger 
commercial relationship with pearle 
vision a leading national usbased 
chain and whollyowned subsidiary 
of luxottica spa pearle vision 
maintains a strong clinical focus in the 
primary care segment throughout 
its network of owned and franchised 
customer locations to support its 
clinical focus pearle vision launched 
direct consumer television and 
printbased advertising campaigns 
in several of its designated marketing 
areas throughout the united states 
these campaigns were rolled out to 
coincide with the installation of the 
p200 device in pearle vision locations 
within these defined geographic areas 
and promoted the importance of 
the optomap® retinal exam as a key 
component of every comprehensive 
eye examination we look forward to 
strengthening our presence within 
pearle vision and other corporate 
customer locations in 2008
primary care optometry offers the 
largest commercial opportunity in 
the united states and during the year 
optos continued to work closely 
with the national governing body 
the american optometric association 
aoa on a number of outreach and 
educational initiatives this included 
partnering with the aoa on two major 
campaigns ‘be wise about your eyes’
national programme which targeted 
schools schoolaged children and 
parents and reached over 15000 
teachers 500000 students and 
over one million family members 
and the eye disease awareness and 
management campaign to raise 
patient awareness of the importance 
of prevention through early detection 
the company was also invited to 
address the aoa house of delegates 
at the 2007 optometry meeting™ 
which is comprised of approximately 
400 thoughtleaders in optometry 
from around the united states
“ o v erall o ur result s f or 2 0 0 7 e x t e nd
our track record of executing on our
stated growth plan and provide a
considerably stronger foundation
onwhichtobuildin2008”
overview
strong levels of new business in all 
of our markets with sustained growth 
in north america and excellent levels 
of underlying growth in europe 
underlined an excellent performance 
in 2007 revenue for the year was 
868 million up from 677 million 
or by 28 over last year revenue is 
generated primarily on a payper
patient examination basis from the 
sale of the optomap® retinal exam 
by the practitioner to the patient 
with an agreed minimum monthly 
usage level we delivered a full year 
profit before tax on ordinary activities 
of 16 million for the year versus 
a loss of 11 million last year profit 
before tax has now been reported 
in each of the last three consecutive 
sixmonth reporting periods an 89 
contract renewal rate demonstrated 
continued high levels of customer 
satisfaction and provides confirmation 
of the reliability of our revenue model 
overall our results for 2007 extend 
our track record of executing on our 
stated growth plan and provide a 
considerably stronger foundation on 
which to build in 2008
868m
global revenues in 2007
65m
operating profit after sharebased
payments
growth in established markets
we continued to generate strong 
returns in our established markets 
in north america and europe within 
the primary care customer segment 
with very good returns in the usa 
and germany total installs on a 
payperpatient basis was 673 devices 
for the year growing the payper
patient customer number to 3266 
across the group up from 2593 at 
the end of the same period last year 
and representing 26 year over year 
growth an additional 58 devices 
were installed on a capital sales basis 
during the year this brings the total 
number of devices that have been 
installed on a capital sales basis to 101 
representing 3 of the group’s total 
installed base of 3367 devices at the 
end of the financial year recurring 
revenue continues to be generated 
from the devices installed on a capital 
basis through service and upgrade 
agreements the continued growth in 
our installed base demonstrates the 
high level of confidence healthcare 
practitioners have in our technology 
to assist them in delivering stateof
theart efficient and thorough patient 
care during the year approximately 
4 million payperpatient eye exams 
were performed by our devices this 
was largely made up of the optomap® 
retinal exam and augmented slightly 
by our newer optomap® plus medical 
retinal exam which we introduced to 
the customer base over the course of 
the year year over year growth in the 
total number of payperpatient eye 
exams was 19 
north america
north america continues to present 
the largest opportunity for sustained 
growth within the primary care 
customer segment we estimate that 
there are 20000 addressable practices 
in the united states and 1300 
addressable practices in canada 
once again our results in north 
america for the year were strong 
revenue was up by 27 on the year 
from 647 million to 822 million 
we generated 759 million in the 
united states up from 593 million 
last year and representing 28 growth 
in what is our largest country market 
canada which has a much smaller 
addressable market recorded 
62 million in revenue representing 
modest year over year growth of 
15 from 54 million last year 
our payperpatient installed base in 
north america grew by 24 to 3072 
devices up from 2475 at the same 
optos plc annual report  accounts 2007 8 focused on delivering improved patient outcomes
we increased our institutional 
presence in a number of different 
ways during the year within schools 
of optometry through developing 
new channels for diabetic screening 
and within the us military and the 
us olympic committee
installing our device in schools of 
optometry where the optomap® 
retinal exam becomes part of the 
curriculum and educational training 
programme ensures that all students 
entering the profession will have had 
extensive exposure to what we offer 
before being admitted professionally 
to practice our device is being used 
in these institutions to facilitate patient 
care and to assist students in the 
recognition of retinal conditions and 
abnormalities we advocate targeted 
ophthalmoscopy where the schools 
of optometry use the optomap® 
retinal exam as a reliable confirmation 
of findings when teaching the use 
of other methods of examining the 
retina using conventional manual 
instrumentation we also recommend 
this approach in our private practice 
and corporate customer locations
there are an estimated 20 million 
diabetic patients in the united states 
diabetes is a chronic disease that can 
lead to blindness and requires regular 
screening our technology is 
supporting diabetic screening 
programmes including at the 
university of virginia uva health 
system the university of virginia 
health system is a nationally 
renowned academic medical centre 
committed to providing outstanding 
patient care educating tomorrow’s 
healthcare leaders and discovering 
new and better ways to treat 
diseases diabetes is a prevalent 
condition amongst the clinic’s 
patients with approximately 2000 
diabetic patients served by the 
outpatient clinic 
our p200 device is now being used 
at a number of us military air force 
usaf bases – these include in 
the states of ohio florida arizona 
california and arkansas it has been 
estimated by the usaf that upwards 
of 60000 personhours have been 
saved from lost flying time by using 
the optomap® retinal exam as 
opposed to a dilatedonly examination 
process the us military operates a 
capital purchase programme and 
our devices were sold on a capital 
basis as opposed to being installed 
on our core payperpatient model 
the optomap® retinal exam has also 
been integrated by the united states 
olympic committee in its health and 
wellness screening programme for us 
olympic athletes at the committee’s 
national training centre in colorado 
springs
our strong relationships with existing 
customers and the sustainable 
initiatives we have in place to drive 
new installs and increase the number 
of payperpatient examinations will 
provide us with a stronger platform for 
continued growth in north america 
in primary care we also expect to 
capture share in the secondary care 
segment through the optomap® 
plus medical retinal exam and in 
the medical care market with the 
optomap® fa medical procedure
europe
market characteristics in europe vary 
from country to country and are 
considerably different from north 
america the vast majority of eye 
examinations in the uk are carried 
out in a retail setting by ophthalmic 
opticians who tend to focus heavily on 
retail sales and refraction as opposed 
to preventative eye and healthcare 
germany is a pure ophthalmology 
market where ophthalmologists carry 
out both primary and secondary eye 
and healthcare in a clinical setting 
on this basis we estimate that there 
are approximately 400 addressable 
practices in the uk and 2500 
addressable practices in germany 
the business had an exceptional 
year in europe driven by accelerated 
growth in the uk and aggressive 
growth in germany we recorded 
47 million in revenue from our 
european operations for the year 
up from 30 million last year and 
representing 57 growth our uk 
business unit returned 26 million 
in revenue for the year up by 18 
from 22 million last year germany 
generated 21 million in revenue 
compared to 07 million last year 
representing 183 year over year 
growth our payperpatient installed 
base in europe grew by 64 to 194 
devices up from 1 18 at the same time 
last year we grew our uk installed 
base by 25 and closed the year 
with 96 devices up from 77 at the 
end of our last financial year this 
represents approximately 25 of the 
uk addressable market germany 
delivered tremendous growth for the 
year with installs up by 139 to close 
the year with 98 devices compared to 
41 devices at the same time last year 
a significant development in germany 
during the year was entering into 
a cooperation agreement with 
bundesverband der augenärztlicher 
diagnostik centren badc which 
is the federal association of eye 
diagnostic centres badc is the most 
influential body in eye care in germany 
and is comprised of approximately 
1 10 ophthalmic diagnostic centres 
adc which together are staffed by 
approximately 1200 ophthalmologists 
badc works on the basis of evidence
based medicine and acts as a 
“buying group” with the objective of 
purchasing and integrating the most 
innovative diagnostic devices into its 
shared network of ophthalmologists 
to provide the best medical treatment 
possible for its patients our objective 
with the badc is to have our device 
in each individual badc member 
ophthalmology practice and have the 
optomap® retinal exam offered as the 
first part of every eye examination that 
is performed patients with pathology 
would then be referred to one of 
the adcs for advanced diagnostic 
assessment and procedures optos has 
a comarketing agreement with the 
badc where the optomap® retinal 
exam is promoted to all of its member 
ophthalmologists
our progress overall in europe was to 
plan looking ahead we will continue 
to grow our penetration in the uk 
by targeting primary care customer 
locations that are sufficiently clinically 
focused and large enough to integrate 
our device and the optomap® retinal 
exam into the practice germany 
however is our core european market 
for growth germany presents the 
business with an opportunity to 
deliver our ultra widefield exam in 
the primary secondary and medical 
care markets our agreement with 
badc accords us a unique position 
with thoughtleaders in the german 
ophthalmology marketplace 
examination on payperpatient basis 
accounts for approximately 90 of the 
german market which is aligned with 
and supports our business model
new markets
market research and trial placements 
of our devices were completed in a 
number of new geographic markets 
during the year after which we 
announced our plans to expand into 
four new european country markets 
– france spain switzerland and 
norway these are four very different 
but exciting new markets in terms 
of growing our presence and share 
of the eye and healthcare market 
across europe we estimate that the 
combined immediate addressable 
market for these new country markets 
is 770 practice locations to add to 
the estimated addressable market of 
2900 practice locations in the uk and 
germany we will continue to market 
and distribute direct to customers and 
will install our retinal imaging devices 
primarily using our payperpatient 
model in the new markets
practitioners in france and spain 
are made up primarily of 
ophthalmologists as in germany 
practitioners operate in private 
practice and carry out both primary 
and secondary care growth will 
initially be generated from within the 
advanced secondary and medical 
care market which we estimate has 
a combined immediate addressable 
market of 320 retinal specialist 
locations we will look to progress to 
an offering within the primary care 
market through ophthalmologists 
operating in private practice once 
a foothold has been established 
in the secondary and medical care 
market segment switzerland is a 
pure ophthalmology market with 
ophthalmologists carrying out primary 
to secondary and medical care the 
immediate addressable market has 
been estimated at 250 private medical 
practices norway represents an 
opportunity for growth in the primary 
and preventative care market carried 
out by optometrists the immediate 
addressable market is approximately 
200 optometric practice locations 
“ id i s c o v e r e dar e t i n a lh o l ei nay o u n g p a t i e n tt h r o u g ht h e optomap®
retinal exam and was able to carry out laser surgery that afternoon to
ensure that it did not progress into a retinal detachment the optomap®
retinal exam is a clinically effective screening tool which enables non
symptomatic diseases to be identified and treated early ultimately
providing better patient outcomes”
dr jeanlouis legrand deauville france
optos plc annual report  accounts 2007 9 japan is the secondlargest market in 
the world for ophthalmic equipment 
after the united states our market 
research continued during the 
year and a full regulatory filing and 
company registration has been 
completed premarket evaluation 
was initiated in 2007 and a decision 
on commercial launch will be taken 
in 2008
new product development
innovation drives our business 
we expanded our product range into 
the secondary care market by rolling 
out the optomap® plus medical retinal 
exam during the year this exam offers 
practitioners additional capabilities 
in the image capture and review 
process to facilitate diagnosis and 
documentation of previously detected 
pathology the premarket evaluation 
of our p200ma device at evaluation 
sites in the usa and germany was 
completed the p200ma is a new 
imaging platform that will generate 
the optomap® fa medical procedure 
full commercial launch of our p200ma 
device and the optomap® fa medical 
procedure is scheduled for the second 
quarter of the 2008 financial year 
we invested in establishing a clinical 
trials team during the year to support 
existing and new products this team 
will allow us to generate highquality 
clinical data to leverage growth in 
sales and expand into new therapeutic 
areas it will also allow us to generate 
evidence in ophthalmology to 
support the clinical benefits and 
value statement of our optomap® fa
medical procedure publications in 
peerreviewed journals to support 
and expand our product life cycle are 
another priority for this new team
customer satisfaction
satisfied customers are an excellent 
source for referrals and new customer 
leads an 89 contract renewal for 
the full year is unchanged from 2006 
working towards delivering world
class levels of customer service is 
a strategic business imperative 
as more eye care practitioners 
integrate the optomap® retinal 
exam into their practices we knew 
that in order to continue to meet this 
imperative we needed to strengthen 
our customer service capabilities we 
did this in north america during the 
year by reorganising our clinical 
sales and customer service functions 
with the objective of delivering 
worldclass customer service 
we created a structure of highly skilled 
dedicated teams that will help drive 
satisfaction and performance among 
our customer base the changes will 
ensure our operational efficiencies are 
capable of meeting the demands of 
a growing customer base
operations
our technical operations team is 
responsible for sourcing and procuring 
components and subassemblies 
managing the supply chain globally 
providing engineering support for our 
products manufacturing modules 
of our devices and improving the 
reliability and life of our devices 
over the last year we worked to 
establish high levels of repeatability 
in all of our operational processes 
from managing stock to schedule 
adherence to ontime delivery 
performance results for schedule 
adherence ontime delivery 
performance and stock accuracy 
were near 100 developing our 
supply base to minimise quality and 
supply risk and reduce cost remains a 
priority and very good progress was 
made during the year by establishing 
stronger supplier disciplines and 
sourcing and qualifying new suppliers 
in other geographies 
operational review
continued
outlook
preventative eye and healthcare 
regimes are not simply a matter 
of avoiding emergency problems 
they are an essential tool in the 
earlier detection treatment and 
management of disease our aim is 
to ensure that the optomap® retinal 
exam becomes the accepted standard 
of care in primary care in those patient 
examinations where pathology 
exhibits our optomap® plus medical 
retinal exam provides practitioners 
with additional capabilities in the 
image capture and review process 
this facilitates diagnosis and 
documentation this new product 
was rolled out to our customer base 
in north america in 2007 and usage 
is expected to increase substantially 
in the coming financial year a full 
commercial launch of the p200ma and 
the optomap® fa medical procedure 
is planned in early 2008 this is a very 
exciting new imaging platform that 
holds much promise particularly for 
diabetic patients and how doctors 
will be able to treat the disease in a 
much more targeted and efficient way 
this will result in significantly improved 
patient outcomes we are very pleased 
that our technology is used as a 
standard of care measure in primary 
care and that the prospects for our 
new p200ma device in the medical 
care market are so promising 
2008 will be another exciting year 
for optos
thomas w butts 
chief executive officer
we completed the rollout of the 
latest version of our proprietary 
software – v2® vantage – to our 
existing customer base during 
the year the new features offer 
innovative clinical advancements 
and enhancements for both the 
practitioner and the patient resmax™ 
is a highresolution enhancement of 
the central pole over a smaller field of 
view this feature has been extremely 
useful for diseases affecting the 
central pole such as glaucoma and 
agerelated macular degeneration 
3dwrap™ is a patient orientation tool 
that allows the practitioner to create 
a threedimensional representation 
of the human eye on to which the 
patient’s image from the optomap® 
retinal exam is projected this 
graphical capability allows for a 
complete visualisation of the shape 
and location of disease our new 
software and its core features are 
proving particularly helpful to our 
customers carrying out secondary 
care with our optomap® plus medical 
retinal exam which provides access 
to reimbursement and enables 
practitioners to monitor known 
disease conditions v2® vantage
delivers on our promise within our 
customer partnership agreements to 
keep our customers on the leading 
edge of retinal imaging technology
“ o v e r t h el a s ty e a r w ew o r k e dt o
establishhighlevelsofrepeatability
into all of our operational processes
from managing stock to schedule
adherence to ontime delivery
performance”
57
increase in revenue in europe
18 3 
maintaining high levels of customer satisfaction is a core component of our business model what we offer
assists healthcare practitioners in detecting disease and enhances the experience their patients have while
having a comprehensive eye examination it also saves practitioners time and builds practice revenue
an 89 contract renewal rate confirms our continued progress on this strategic objective
focused on delivering excellent customer service
increase in revenue in germany
optos plc annual report  accounts 2007 10 disc edema reveals 
frontal lobe tumour
recent image which was crucial in the diagnostic process 
additionally optos’ v2® vantage software allowed separation 
of the retinal layers which helped the doctor determine the 
depth of the pathology the patient is following a treatment 
regime for the smaller tumour
 “ i t r yt od oa noptomap® retinal
exam on every patient every
year and in this case comparing
last year’s image to this year’s
image enabled me to pick up
the subtle disc edema”
dr andy m hawari
mineolaeyecaremineolatx
a 33year old male presented with occasional and short 
duration visual disturbances that were nondescriptive 
he also complained of headaches floaters and mood 
swings dr hawari performed the optomap® retinal exam 
on the patient and compared it to the image taken a year 
earlier he diagnosed subtle disc edema dr hawari referred 
the patient for neurological evaluation and the patient 
subsequently had a cat scan and mri which revealed 
a large frontal lobe tumour and one smaller tumour 
the patient was at immediate risk of blackouts andor 
seizures due to the inflammation around the tumour
the optomap® retinal exam allowed for the earlier detection 
and enabled surgical intervention at an earlier stage on the 
larger tumour it also provided the patient with a better 
chance to follow a treatment regime on the smaller tumour 
which could not be surgically removed previous optomap® 
retinal exam images allowed dr hawari to compare the most 
case study 2
dr andy m hawari
optos plc annual report  accounts 2007 11 revenues
revenue increased by 28 from 
677 million in 2006 to 868 million 
in 2007  representing continued 
growth across the business north 
america generated revenue of 822 
million which represented growth of 
27 over last year europe generated 
revenue of 47 million up by 57 
over the previous year and driven by 
a 183 year over year uplift 
in germany to 21 million 
approximately 90 of revenue was 
generated through payperpatient 
customer contracts which provide 
a high rate of recurring revenue the 
balance of revenue generated during 
the year was derived from capital sales
gross margins
gross margins weakened slightly from 
656 to 651 reflecting a modest 
reduction in operating margins
operating costs and 
operating profits
the company continued to invest 
in its field and administrative 
infrastructure in north america 
and europe by growing headcount 
this is designed to develop and 
capture new business and strengthen 
back office support which will 
enhance customer service and 
satisfaction levels and support 
business expansion a 67 year 
over year increase in rd investment 
to 37 million will support a 
broadened product offering in the 
company’s markets the majority 
of this investment met the recognition 
criteria for capitalisation as an 
intangible under ias 38 as well as 
further investments in longerterm 
research which was fully expensed 
average headcount grew by 23 from 
214 to 264 investment in fieldrelated 
expenditures increased by 37 to 
187 million and in administrative 
expenses by 16 to 280 million 
operating profit before sharebased 
payments increased by 52 from 
65 million to 98 million 
sharebased payments increased 
from 22 million to 34 million 
largely as a result of the award to 
thomas w butts in january 2007 
following his appointment as chief 
executive officer the company also 
made a number of awards in may 2007  
following the announcement of its 
interim results under its shareholder
approved longterm incentive and 
share option plans operating profit 
after sharebased payments increased 
by 50 from 43 million to 
65 million
profit on ordinary 
activities before tax
the group made a profit on ordinary 
activities before tax of 16 million 
versus a loss of 11 million during the 
prior year and has now delivered three 
consecutive sixmonth periods of 
profit before tax
taxation
following the recognition of 1 19 
million deferred tax asset in 2006 
the group has recognised a 18 
million charge in respect of us profits 
during the period in cash terms the 
group incurred only 01 million of 
taxes levied from certain minimum 
federal and state taxes in the us 
losses for the company and its two 
other overseas subsidiaries were not 
deemed to meet the recognition 
criteria of ias 12 and therefore remain 
unrecognised
lossprofit for the financial year
the group recorded a loss for the 
financial year after taxation of 
02 million versus a profit in the 
previous year of 108 million this 
profit reflects the impact of deferred 
tax recognition policies and masks 
the underlying improvement in profit 
demonstrated by the 16 million profit 
before tax described above
cash flow
net cash flow from operating activities 
increased by 19 versus prior year at 
316 million this was delivered by 
the increased scale and operating 
profitability of the business 
offset by shortterm investments 
in working capital cash flow used 
in investing activities increased from 
334 million to 411 million largely 
due to investments in property plant 
and equipment the majority of this 
investment represents the costs of 
new p200 devices installed in the field 
under payperpatient agreements 
which will deliver revenues in future 
periods in addition to this part of 
this increase also reflected higher 
inventory levels of major spares related 
to the group’s p200 assets which due 
to ias 16 are classified as fixed assets as 
opposed to inventory net cash flows 
from financing activities resulted in a 
55 million outflow of cash consistent 
with the group’s strategy following 
its initial public offering of making 
net repayments in vendor finance 
obligations during the year net cash 
decreased by 151 million during the 
year to a yearend cash balance of 
211 million reflecting the group’s 
continued investment in growing the 
business since its initial public offering 
in february 2006
balance sheet
the group balance sheet 
strengthened during the year 
from 513 million to 576 million 
the increase in total assets was partly 
due to the continued expansion of the 
group’s installed base of p200 devices 
along with investments in product 
development and working capital 
the group’s asset of 1 19 million in 
respect of deferred tax assets reduced 
as the item was part expensed 
through profit total liabilities 
remained flat versus prior year at 
939 million and within that 
outstanding vendor finance liabilities 
were reduced from 812 million to 
780 million total shareholders’ funds 
increased from 513 million to 
576 million of which 44 million 
relates to the issue of share capital 
on the exercise of options
financial review
allan m watson chief financial officer
“ t h eg r o u p m a d eap r o fi t o n
ordinary activities before tax of
 16 million versus a loss of
 1 1 million during the prior year
and has now delivered three
consecutive sixmonth periods
of profit before tax”
optos plc annual report  accounts 2007 12 “ u n t i l t h e optomap® retinal exam eye examinations only took a onedimensional look at the eye and
required pupil dilation which could be uncomfortable and timeconsuming now the optomap® retinal
exam provides professionals with a three dimensional look at the inner workings of the eye with the simple
clickofabuttonpluspatientslikeitbecauseitisnoninvasiveandmostoftentheycanresumetheirdaily
activity immediately following the exam”
dr robert clark pearle vision detroit michigan
net installs on payperpatient 
agreements relate to installs of 
the group’s medical devices with 
healthcare professionals
number of eye exams sold related 
to actual eye exams undertaken by 
healthcare professionals and billed for 
under payperpatient agreements 
these include the optomap® retinal 
exam the optomap® plus medical 
retinal exam and the optomap® fa
medical procedure
contract renewal rate relates to the 
number of healthcare professionals 
who extend the term of their 
existing payperpatient agreements 
divided by the sum of the number of 
healthcare professionals who either 
extend or cancel their payperpatient 
agreements
revenue growth versus prior year is 
the total revenue for the year divided 
by the total revenue for the prior year
operating profit before sharebased 
payments is the gross profit less 
selling distribution and administrative 
expenses excluding costs associated 
with sharebased payments
profitloss before taxation per 
ordinary share is calculated by dividing 
the profitloss from continuing 
operations before tax for the financial 
year by the weighted average number 
of ordinary shares outstanding during 
the period
principal risks and uncertainties
there are a number of potential risks 
and uncertainties which have been 
identified within the business which 
could have a material impact on the 
company’s longterm performance 
these are not all of the risks which the 
directors have identified but those 
that the directors currently consider 
likely to be material
the company depends heavily
on the success of its technology
platform the p200
the company is heavily reliant on 
the p200 device which produces the 
company’s optomap® retinal exam 
products these products together 
with related services accounted for 
all of the company’s revenues for the 
year ended 30 september 2007 if any 
third party produces a more advanced 
device with improved functionality 
to the p200 or a similar device with 
significantly lower build costs this 
could have a material adverse effect 
on the company’s business financial 
condition and results of operations
the company operates in a
highly regulated industry
the company’s p200 is subject 
to strict us food and drug 
administration fda regulations 
and the requirements of similar 
foreign regulatory bodies although 
the p200 is fda cleared to market 
if the company or its thirdparty 
manufacturers fail to satisfy 
regulatory requirements this could 
result in the imposition of sanctions 
on the company 
intellectual property suits
that are brought against the
company may significantly harm
the company’s business
the medical technology industry is 
subject to periodic litigation regarding 
patent and other intellectual property 
rights any litigation to determine the 
validity of thirdparty infringement 
claims whether or not determined in 
the company’s favour or settled by it 
could at a minimum be costly
litigation could significantly
harm the company’s business
the company’s business exposes 
it to the risk of certain litigation 
for example a patient suffering harm 
during the image process or the 
company’s retinal image system 
not identifying an underlying 
medical problem 
the company’s operating results
couldbeaffectedbyeconomiccycles
any significant downturn in economic 
markets would be likely to impact 
adversely on disposable incomes 
which may in turn result in reduced 
public demand for the product and 
thereby materially and adversely 
affect the company’s business and 
financial position 
financial risk management policy
the treasury function is managed 
both centrally and locally to support 
the operating activities of the group 
its primary role is to ensure that 
adequate resources are available to 
meet the funding requirements of the 
group on a daytoday basis and that 
financial risks arising from the group’s 
underlying operations are effectively 
identified and managed key risks 
within the financial management 
of the company include
the company relies on third
partyvendorfinancetofundthe
capital costs of its equipment
the company’s business model 
primarily uses finance houses to 
advance optos funds in return for 
title to the devices such funds being 
based on the minimum monthly 
payment that each healthcare 
professional is contractually bound 
to pay over the course of typically 
an initial threeyear contract 
optos therefore receives an 
“up front” payment with the 
healthcare professional then leasing 
the device from the finance company 
if the company loses the benefit of 
this thirdparty finance it may not be 
able to source alternative financing 
on similar terms 
allan mwatson
chief financial officer
26
increase in group pay per
patient installed base
9 8m
operating profit before sharebased
payments
2007 2006
commercial
net installs on payperpatient agreements 673 584
number of eye exams sold million 40 34
operational 
contract renewal rate 89 89
financial
revenue growth versus prior year 28 40
operating profit before sharebased payments 98m 65m
profitloss before taxation per ordinary share 24c 19c
focused on delivering a higher standard of care
key performance indicators
performance is monitored against strategy by means of the following 
key performance indicators
optos plc annual report  accounts 2007 13 board of directors
1 dr john malcolm padfield 60
nonexecutive chairman
dr john m padfield joined the company 
as a nonexecutive director in november 
2005 and was appointed chairman of the 
board in january 2006 dr padfield has been 
an executive director and nonexecutive 
director of a number of public and private 
companies in europe the united states 
and japan and is currently chairman of 
nextpharma technologies holdings ltd 
and cambridge laboratories ltd from 1999 
to 2002 he was chief executive officer of 
amersham health and a director of amersham 
plc and from 1994 to 1999 he was chief 
executive officer of chiroscience group plc 
his experience includes 30 years working 
in the pharmaceutical biotechnology and 
diagnostic imaging industries including glaxo 
manufacturing services between 1990 and 
1994 and glaxo group research between 
1979 and 1990 dr padfield holds a doctor of 
philosophy and a bachelor of pharmacy degree 
from the university of nottingham
2 thomas william butts 47
chief executive officer
thomas w butts joined the company as 
chief executive officer in december 2006 
and is responsible for the overall leadership 
and direction of the group mr butts has 
over twenty years of progressively senior 
internationallevel experience within the 
healthcare sector prior to joining optos 
he was the president and chief operating 
officer of idx systems corporation a public 
healthcare information technology company 
with 600 million in annual sales which he 
oversaw before it was subsequently acquired 
by ge healthcare for 15 billion mr butts led 
the successful expansion of the idx business 
achieving over 200 million in growth prior 
to his appointment to this position in january 
2004 he was president and general manager 
of idx flowcast the largest operating unit 
a position he held since january 2002 prior 
to joining idx mr butts spent 17 years with 
ge healthcare where he held a number of 
leadership positions in sales and marketing 
mr butts holds a degree in business 
administration from western new 
england college
3
1
2
4
5
3 allan mark watson 40
chief financial officer 
allan m watson is chief financial officer 
and company secretary mr watson 
joined the company in december 2003 
and is responsible for the overall financial 
management of the group between late 2000 
and 2003 mr watson was part of the senior 
management team at udatecom inc 
a us publiclylisted internet business 
between 1998 and 2000 mr watson was 
a member of the corporate finance team at 
williams holdings plc working on transactions 
in europe north america south america and 
africa previously between 1990 and 1998 
he was with reckitt  colman plc in various 
financial roles throughout the uk and in 
france mr watson is a professionally qualified 
accountant and a member of the chartered 
institute of management accountants and 
also holds a bsc hons in pharmacy from 
the robert gordon university in aberdeen 
4 douglas crombie anderson obe 56
founder
douglas c anderson founded the company 
in 1992 and is an executive director 
mr anderson is the chairman of crombie 
anderson associates ltd a multidisciplinary 
design consulting firm specialising in 
technologybased product development and 
is a former director of creos international plc 
he has held previous positions with fortronic 
limited and aberglen industrial design 
a division of aberglen holdings limited 
mr anderson holds a higher national diploma 
in industrial design engineering from napier 
university in edinburgh and is a member of 
the association for research in vision and 
ophthalmology arvo bethesda in 2007  
mr anderson was awarded an obe for services 
to life sciences and elected a fellow of the 
royal society of arts
5 barry michael rose 62
nonexecutive director
barry m rose joined the company as a 
nonexecutive director in december 2005 
mr rose serves as the senior independent 
director to the board and is chairman of the 
audit committee mr rose was chief executive 
of scottish provident uk from 1993 to 2001 
mr rose is also a nonexecutive director of 
liverpool victoria friendly society wolfson 
microelectronics plc and baillie gifford shin 
nippon plc mr rose has an honours degree 
in mathematics from manchester university
optos plc annual report  accounts 2007 14 6 anne margaret glover cbe 53
nonexecutive director
anne m glover has been a director since 1996 
ms glover is cofounder and chief executive 
of amadeus capital partners limited a uk
based venture capital fund her background 
in venture capital includes positions with 
apax partners  company ventures and later 
calderstone capital previously she served 
as chief operating officer with the virtuality 
group plc and has worked with cummins 
engine and bain  co in boston ms glover 
holds an ma in metallurgy and materials 
science from clare college cambridge and 
a master’s in public and private management 
from yale school of management she also 
serves as a nonexecutive director on the uk 
technology strategy board glysure ltd and 
teraview ltd in 2007  ms glover was awarded 
a cbe for services to business
7 david robert guyer md 47
nonexecutive director
dr david r guyer joined the company 
as a nonexecutive director in may 
2006 he is a venture partner at sv life 
sciences advisers llc svls previously 
he was the cofounder and ceo of eyetech 
pharmaceuticals at eyetech he developed and 
commercialised macugen the first antivegf 
drug for the eye dr guyer is an internationally 
recognized authority on macular diseases 
particularly the use of antiangiogenic drugs 
for the treatment of amd and diabetic 
macular edema dme he received his md 
from the johns hopkins university school of 
medicine and his undergraduate degree from 
yale college
6
7
8
9
10
8 saad hassan hammad 45
nonexecutive director
saad h hammad joined the company as 
a nonexecutive director in august 2007 
mr hammad is chief commercial officer 
of easyjet plc one of the largest airlines 
in europe prior to joining easyjet plc in 
november 2005 mr hammad was managing 
director europe at tibbett  britten a third
party logistics provider where he managed 
the outsourced supply chain operations across 
europe of manufacturers and retailers that 
included pg unilever pepsico tesco 
walmart carrefour and metro previously 
mr hammad was ceo of autocascade 
a paneuropean webbased yield 
management company and before that 
was responsible for the worldwide commercial 
operation of 3710 stores at minit a multi
service retailer mr hammad has also held roles 
in consumer retailing and brand management 
at vision express thorn emi and procter  
gamble mr hammad holds an undergraduate 
degree from oxford university and an mba 
from insead
9 patrick robin david paul 61
nonexecutive director
patrick rd paul has served as a director since 
1996 and has over 30 years of experience in 
the medical device industry gained in north 
america and in europe in 1975 mr paul 
cofounded support systems international sa 
and was subsequently appointed chairman 
and chief executive officer of support 
systems international inc which became the 
group parent company before its eventual sale 
to hillenbrand industries inc he is chairman 
of tissue science laboratories plc and 
serves on the boards of a number of 
private companies mr paul has a degree in 
engineering and is a chartered accountant
10 rosalyn susan wilton 55
nonexecutive director
rosalyn s wilton joined the company 
as a nonexecutive director in august 
2007 and serves as chairman of the 
remuneration committee mrs wilton is 
chairman of ipreo holdings llc the usbased 
financial data and solutions group which was 
formed following the merger of ideal llc and 
hemscott group ltd and the acquisition of 
marketpipe before the merger mrs wilton 
was chief executive officer of hemscott plc 
mrs wilton has previously served as managing 
director reuters information services 
managing director reuters transactions 
products and as a member of the reuters 
executive committee mrs wilton has held 
nonexecutive directorship positions with 
scottish widows and the london international 
financial futures exchange mrs wilton holds 
a bsc hons from the university of london
“ w h i l eb o a r d sw i l l
always be required
tospendtimeand
energy on the
compliance and due
diligence functions
this should not be
at the expense of
the time devoted
to the advisory
assistance that
boards can provide
to management”
dr john m padfield chairman 
optos plc annual report  accounts 2007 15 investing in our communities to make a difference
the safety and reliability of the company’s scanning laser technology and 
the efficacy of the images that our devices produce are of benefit to eye and 
healthcare practitioners and to patients in the earlier detection diagnosis and 
treatment of both eye and noneye disease this can help save sight and save 
lives this is what optos does on a daytoday basis 
optos also strives to make a difference in the communities where we live and 
work and during the year supported employees and partnered with customers 
and organisations in a number of worthy causes and initiatives to give back 
and make that important difference many optos employees contributed 
independently of the company to support their colleagues in their charitable 
endeavours during the year 
we believe our actions in 2007 demonstrate this commitment
here are some of the highlights
• sponsored employees in raising money for various causes including the 
leukaemia  lymphoma society breast cancer research run for the cure
inclusion and equality for employees with disabilities through momentum 
scotland sense scotland a charity that works with children and adults who 
have communication support needs because of deaf blindness sensory 
impairment learning and physical disabilities
• supported luxottica spa give the gift of sight charitable initiative where the 
optomap® retinal exam was used to screen approximately 2000 children over 
a twoweek period in two major us metropolitan areas
• partnered with the american optometric association aoa on its national 
save your vision month to raise awareness of the importance of annual eye 
examinations
• worked with the special olympics providing the optomap® retinal exam 
for its opening eyes® programme which is a joint effort between the special 
olympics and lions club international
• sponsored a back to school partner programme together with customers
to educate parents about eye and healthcare and annual eye examinations 
with the optomap® retinal exam
• implemented a oneday diabetes partner programme together with customers 
to use the optomap® retinal exam as a diabetic screening tool for patients 
visiting the customer practice
• supported the 2007 indiana juvenile diabetes research foundation 
swing for a cure programme in aid of diabetic research
the company supports the wellbeing of our environment through efforts to 
reduce energy consumption recycling and waste management initiatives and 
promotes diversity in the workplace through recruitment that is open fair and 
inclusive in its approach optos plc received a business diversity award in scotland 
in 2007 for its recruitment practices
corporate social responsibility 
back to school partner programme
optos plc annual report  accounts 2007 16 corporate governance
statement of compliance
the company since its admission to the official list of the financial services 
authority the “official list” and to trading on the london stock exchange main 
market for listed securities in february 2006 has complied with the provisions set 
out in the combined code on corporate governance published in july 2003 
the “combined code” except to the extent set out below for which an 
explanation of noncompliance is provided
the board of directors
the principal duty of the board of directors the “board” is to represent and 
protect the interests of the company’s shareholders by ensuring that the 
company is well managed in the interests of its shareholders in doing so 
the board has the legal responsibility for overseeing the affairs of the company 
the board’s oversight function is exercised through the nomination election 
and appointment of competent directors the board remains responsible for 
oversight and has an obligation to keep informed in order to assist management 
in formulating developing and implementing plans and serves as a body to 
review and provide advice to management on the operations of the company 
these duties are discharged by the full board the board’s committees and 
by individual members of the board as may be appropriate relative to the 
circumstance
the combined code
the board remains committed to ensuring that high standards of corporate 
governance are maintained and that the company manages its business and 
affairs to the extent they are deemed appropriate based on the principles and 
provisions set out in the combined code the board is committed to improving 
and strengthening its corporate governance practices to assure shareholders 
that the company continues to operate in their best interests since admission to 
the official list in february 2006 the company has raised its compliance levels in 
accordance with best practice and the combined code
composition of the board
the combined code provides that the board of directors of a uk public 
company should include a balance of executive and nonexecutive directors 
with independent nonexecutive directors excluding the chairman comprising 
at least half of the board the company does not have sufficient independent 
nonexecutive directors within the meaning of the combined code the combined 
code does provide that smaller companies outside the ftse 350 which would 
include the company should have at least two independent nonexecutive 
directors excluding the chairman the company is therefore compliant within 
the meaning of this part of the combined code 
the board is committed to reviewing its membership on a regular basis and 
was strengthened during the financial year with the appointment of thomas w 
butts as an executive director on 18 december 2006 and saad h hammad and 
rosalyn s wilton as nonexecutive directors on 1 august 2007  both of whom are 
independent within the meaning of the combined code 
the board is currently comprised of three executive directors douglas c 
anderson founder thomas w butts chief executive officer and allan m 
watson chief financial officer the nonexecutive directors include dr john m 
padfield who is chairman of the board and six other nonexecutive directors 
anne m glover dr david r guyer saad h hammad patrick rd paul barry m 
rose and rosalyn s wilton 
under the provisions of the combined code relative to nonexecutive director 
independence the independence test is deemed inappropriate for the chairman 
dr guyer mr hammad mr rose and mrs wilton are deemed independent 
ms glover and mr paul are presumed not independent because they have both 
served on the board for more than nine years since first elected and have 
or have had within the last three years a material business relationship with the 
company either directly or as a partner shareholder director or senior employee 
of a body that has such a relationship with the company 
the board considers that all directors bring independent judgement to bear 
on matters of strategy resources performance and standards of conduct 
the chairman ensures that board discussions are conducted taking all views into 
account so that no one individual director or small group of directors dominates 
the proceedings of the board the board meets on a regular basis to discuss 
and agree matters which are specifically reserved to it for review and decision 
frequent contact between designated board meeting dates is carried out by the 
directors as and when required to discuss and agree matters arising relative to 
addressing and advancing the business of the company
functions of the board
the board is committed to ensuring that it provides management with the right 
balance of oversight and strategic counsel 
the principal functions of the board include 
• encouraging the longterm success of the company by exercising sound 
and independent business judgement with respect to material strategic 
and operational issues
• evaluating the performance of the chief executive officer and reviewing 
the performance of senior management 
• selecting and setting the compensation for the chief executive officer 
approving the selection and compensation of senior management 
• periodically reviewing plans for management succession and assessing the 
company’s organisational structure
• safeguarding corporate assets by reviewing the financial policies and affairs 
of the company and overseeing the company’s financial reporting process 
and internal controls
• reviewing of the adequacy of the company’s systems for compliance with all 
applicable laws and regulations
• overseeing the company’s risk management process and ensuring that the 
company has appropriate procedures in place to manage risks
• evaluating the effectiveness of the board and its committees at least annually
• determining the structure composition and responsibilities of the committees 
of the board
the board delegates to the company’s global operating council the “goc” 
which is chaired by the chief executive officer and comprised of the company’s 
senior management team and meets on a monthly basis certain decisions 
including
• implementation of the strategies operating plans and policies of the company 
and the company’s subsidiary companies as determined by the board
• delivering the operating and financial results against budgets
• managing and controlling the allocation of capital human and technical 
resources
the board receives detailed operational and financial information to assist 
in monitoring and assessing the ongoing performance of the business on a 
monthly basis
committees of the board
noone other than the respective committee chairman and members of the 
committees is entitled to be present at the audit remuneration or nomination 
committee meetings unless specifically invited to attend written terms of 
reference for each of the audit remuneration and nomination committees can 
be accessed and downloaded from the company’s website and are also available 
from the company secretary upon written request these are reviewed annually
the combined code requires that all members of the audit committee and 
remuneration committee and a majority of the members of the nomination 
committee should be independent nonexecutive directors all members of 
the remuneration committee and a majority of the nomination committee are 
independent nonexecutive directors rendering the company fully compliant 
with the combined code in the composition of these committees the company 
is not compliant with the combined code in the composition of its audit 
committee for which an explanation is offered below
optos plc annual report  accounts 2007 17  corporate governance
continued
audit committee
the audit committee is appointed by the board and has responsibility to assist 
the board in its oversight responsibilities for the planning and review of the 
group’s interim and preliminary reports and accounts and in engaging the 
group’s auditors in that process 
the company is not compliant in its current composition of the audit committee 
the audit committee is chaired by barry m rose and its other members are 
anne m glover dr john m padfield and patrick rd paul the combined code 
states that the test of independence is inappropriate to the chairman of the 
board and therefore only mr rose is independent within the meaning of the 
combined code dr padfield was independent upon appointment to the board 
mr paul is a chartered accountant dr padfield mr paul and ms glover have 
extensive business experience knowledge and understanding of the company 
the board considers all members of the audit committee to be independent in 
character and judgement and in possession of the required financial experience 
and expertise saad h hammad was appointed to the audit committee on 
19 november 2007 in not immediately appointing mr hammad to the audit 
committee upon his appointment to the board on 1 august 2007  the board took 
the view that it was appropriate to maintain the existing committee membership 
to provide continuity through the end of the company’s full year financial 
reporting period this would provide mr hammad with sufficient time 
to familiarise himself with and gain a more complete understanding of 
the company 
the board will consider the position of dr padfield as a continuing member 
of the audit committee principally based upon the outcome of the proposed 
amendment to the combined code by the financial reporting council “frc” 
whereby chairmen of smaller listed companies will be allowed to be members 
of the audit committee provided the individual was independent upon 
appointment
the audit committee focuses on compliance with legal requirements accounting 
standards and the listing rules and on ensuring that an effective system of 
internal financial control is maintained the audit committee also maintains 
the responsibility for recommending the appointment terms of reference and 
remuneration of the company’s external auditors and tax advisers and reviewing 
the independence and effectiveness of these advisers the ultimate responsibility 
for reviewing and approving the interim and preliminary results and accounts 
remains with the board of directors and is based on a recommendation from the 
audit committee
a policy is in place that governs expenditure for nonaudit work any nonaudit 
work involving a single expenditure of more than 50000 must be assigned to 
tender the amount paid for nonaudit work during the year is set out in note 
4 to the financial statements on page 52 during the year the audit committee 
considered the amount of nonaudit work being carried out by ernst  young 
llp  the company’s appointed firm of auditors while the audit committee was 
satisfied that the nonaudit work being carried out by ernst  young llp did 
not compromise the independence of the firm as auditors for the group it was 
determined that a separate firm be appointed to provide advice on taxrelated 
work pricewaterhousecoopers llp was subsequently appointed to perform 
taxrelated work in addition to the services it currently provides in valuing the 
company share options the company believes that the separation of the audit 
and tax functions represents best practice and good governance
in fulfilling its role the audit committee met on three occasions during the 
financial year certain other directors and individuals were invited to attend 
these meetings when required and relevant to the meeting proceedings 
ernst  young llp attended meetings in its capacity as the company’s external 
auditors to present and discuss the results of the 2006 yearend audit and to 
review the company’s interim results for the sixmonth period ended 
31 march 2007 
during the financial year ended 30 september 2007  the audit committee 
reviewed and provided oversight on the following
• appropriateness and implementation of the group’s and the company’s 
accounting policies in accordance with international financial reporting 
standards “ifrs”
• group’s preliminary announcement of financial results for the year ended 
30 september 2006 the 2007 interim results for the period ended 
31 march 2007
• auditor’s detailed reports with respect to the group’s 2006 financial statements 
and the 2007 interim report
• audit plan for the group with particular respect to systems of internal controls 
and its effectiveness
• compliance with governance legal and tax requirements across the group 
and with due consideration to relevant legislation governing bodies and 
best practice
• implementation of a groupwide “whistleblowing policy” by which staff of 
the company may raise in complete confidence any concerns about possible 
or alleged wrongdoings or improprieties in matters of financial reporting 
or other matters 
• nonaudit services provided by the external auditors in accordance with the 
policy regarding the provision of these services
• independence of and performance of the external auditors
• fees for audit and nonaudit services
• reports from management on the group’s main risks and the assessment 
and management of those risks
• the external and internal audit requirements and process
• financials and notes to the accounts and
• asset and risk management
the audit committee carried out a selfassessment and evaluation of its members 
and overall performance during the year
remuneration committee
the remuneration committee is chaired by rosalyn s wilton and comprised 
exclusively of nonexecutive directors the other members of the remuneration 
committee are saad h hammad dr john m padfield and barry m rose 
mr hammad and mrs wilton replaced anne m glover and patrick rd paul as 
members of the remuneration committee on 1 august 2007 mrs wilton assumed 
the role of chairman of the committee from dr padfield on 4 september 2007 
dr padfield fulfilled the independence criteria at the time of his appointment and 
provides continuity to the committee and its proceedings the board considers 
it important that the chairman of the board participate in setting remuneration 
policy the other members of the remuneration committee are independent 
nonexecutive directors as set out in the combined code
the remuneration committee has responsibility for making recommendations 
to the board on the company’s policy on the remuneration of executive directors 
and certain members of the goc the implementation and operation of the 
company’s share option plan “sop” and performance share plan “psp” 
and for the determination within agreed terms of reference of specific 
remuneration packages for each of the executive directors including pension 
rights contracts of employment and any compensation payments
the remuneration committee will normally meet not less than twice a year 
in fulfilling its role the remuneration committee met on three occasions during 
the 2007 financial year in accordance with the remuneration committee’s terms 
of reference the chief executive officer was invited to and participated in some 
of the proceedings no director has any part in any discussion about his or 
her remuneration
optos plc annual report  accounts 2007 18  corporate governance
continued
nomination committee
the nomination committee is chaired by dr john m padfield and its other 
members are anne m glover dr david r guyer saad h hammad patrick 
rd paul barry m rose and rosalyn s wilton all members of the nomination 
committee are nonexecutive directors dr guyer mr hammad mr rose and 
mrs wilton are independent nonexecutive directors this majority renders the 
committee compliant within the meaning of the combined code dr padfield 
fulfilled the independence criteria at the time of his appointment
the nomination committee considers the composition of the board 
retirements and appointments of additional and replacement directors 
and makes appropriate recommendations in relation to the overall balance 
and structure of the board it is responsible for nominating candidates for 
appointment to the board having regard to the skills of individual members 
composition and longerterm needs this procedure was carried out in relation 
to the appointments referred to under the heading “board appointments 
and resignations” below the nomination committee used external search 
consultants to identify suitably qualified and interested candidates for the 
nonexecutive positions appointed during the year
in fulfilling its broader role described above the nomination committee 
recommended the appointment of two additional nonexecutive directors 
during the year saad h hammad and rosalyn s wilton bring extensive 
commercial operational and strategic international business experience to the 
group the appointments strengthen independent composition of the board 
relative to the combined code 
the nomination committee will normally meet not less than once during the 
financial year during the 2007 financial year it met on two occasions principally 
because of the appointments of thomas w butts as chief executive officer of 
the group and as an executive director and of mr hammad and mrs wilton as 
nonexecutive directors
senior independent director
the combined code recommends that the board should appoint one of 
its independent nonexecutive directors to serve as the company’s senior 
independent director “sid” the senior independent director is available to 
shareholders if they have concerns that have not been resolved through normal 
channels or for which contact through the normal channels is inappropriate 
employees can contact the senior independent director under the provisions 
set out in the group’s “whistleblowing policy” if they have concerns that have 
not been resolved through normal channels or for which contact through the 
normal channels is inappropriate the sid receives regular information from 
those members of executive management with responsibility for meeting 
with shareholders on the outcome of those meetings including any concerns 
barry m rose is the senior independent director for the company a meeting 
in the 2007 financial year of the company’s nonexecutive directors under 
the leadership of the senior independent director without the presence of the 
chairman and executive directors to conduct a performance evaluation of 
the chairman did not take place the senior independent director determined 
that a separate meeting was not necessary on the basis that the board had 
undertaken a selfassessment during the year this exercise required the directors 
to respond to questions specific to the performance of the chairman these 
included on his leadership of the board relationship with the chief executive 
officer performance in terms of focus use of time efficiency of board meetings 
and on following up and resolution of issues arising as matters of the board 
responses to the questions in the selfassessment were compiled anonymously 
a separate meeting of the nonexecutive directors without the presence of the 
chairman took place on 27 november 2007
chairman and chief executive officer
the offices of chairman and chief executive officer are held separately 
the chairman is responsible for the leadership of the board and the chief 
executive officer has the executive responsibility for the operation of the 
company there is a clear division of responsibility between the chairman 
and chief executive officer which has been agreed and is reviewed annually 
by the board no one individual has unfettered powers of decision
board appointments and resignations
thomas w butts joined the company as chief executive officer and the 
board as an executive director on 18 december 2006 mr butts has a proven 
ability in leading topperforming teams and driving shareholder value he has 
an exceptionally strong understanding of the global healthcare marketplace 
and extensive sales marketing and operating experience across north america
and europe 
saad h hammad and rosalyn s wilton joined the board as nonexecutive 
directors on 1 august 2007 mr hammad is chief commercial officer of easyjet 
plc and mrs wilton is chairman of ipreo holdings llc mr hammad and 
mrs wilton bring extensive commercial operational and strategic international 
business experience to the company 
ian h stevens resigned from his position with the company as general 
manager north america on 30 april 2007 following the completion of his 
international assignment mr stevens concurrently resigned his position as an 
executive director
the appointment of mr butts mr hammad and mrs wilton and the resignation 
of mr stevens brings the total number of directors to ten consisting of three 
executive and seven nonexecutive directors
role of nonexecutive directors
the company’s nonexecutive directors provide input to the business by 
contributing to the oversight function of the board each nonexecutive director 
contributes to the development of the company’s strategy and in reviewing 
and examining the performance of management nonexecutive directors are 
further required to be satisfied that the financial information is accurate and 
that the policies and procedures governing risk management are effective and 
appropriate the nonexecutive directors have the responsibility of ensuring 
that the actions proposed by the executive directors are critically probed and 
discussed in detail
the company’s nonexecutive directors are available to shareholders 
the independent contributions of the nonexecutive directors are considered 
to be a major strength and asset to the company the board considers that all 
of the nonexecutive directors are independent of management and with the 
exception of ms glover and mr paul free from any business or other relationship 
which could materially interfere with the exercise of independent judgement 
within the meaning of the combined code 
the nonexecutive directors met as a group on ten occasions during the 
year including meetings of the committees of the board without the presence 
of any of the executive directors they did not meet during the year without 
the chairman
optos plc annual report  accounts 2007 19  corporate governance
continued
attendance at meetings
below is a table showing the number of board and committee meetings held 
from 1 october 2006 to the financial year ended 30 september 2007
members full audit remuneration nomination
board committee committee committee
meetings 7332
douglas c anderson 7 – – –
thomas w butts 1 5 – – –
anne m glover 2 6322
david r guyer md 6 – – 2
saad h hammad 3 1 – 1 –
john m padfield phd 7332
patrick rd paul 4 7322
barry m rose 7332
allan m watson 7 – – –
rosalyn s wilton 5 1 – 1 –
ian h stevens 6 4 – – –
1 joined the board on 18 december 2006
2 resigned from the remuneration committee on 1 august 2007
3 joined the board on 1 august 2007 appointed member of the remuneration 
committee with effect from 1 august 2007
4 resigned from the remuneration committee with effect from 1 august 2007
5 joined the board and the remuneration committee on 1 august 2007 
appointed chairman of the remuneration committee with effect from 
4 september 2007
6 resigned from the board with effect from 30 april 2007
board process and information
the board normally meets formally not less than six times during the year 
including once over a twoday period to focus on strategy meeting agendas 
include review and approval of minutes recorded of the previous meeting 
matters arising and items for discussion items for note and any other business 
dialogue occurs regularly between directors outside of scheduled meetings
board materials are normally distributed at the end of the month and not less 
than seven days in advance of meeting dates to allow directors to adequately 
prepare for meetings minutes of board and committee meetings are distributed 
within fourteen days following each meeting 
the board receives detailed information from the company on a monthly basis 
to enable it to discharge its duties effectively separate reports from the ceo 
cfo company secretary and on human resources and risk management 
typically make up the body of the monthly materials provided to the board 
monthly management accounts detailing actual and forecast trading results 
the company’s treasury position and an analysis of the company’s shareholder 
register are also provided
the board also schedules and reviews special items covering a number of 
business critical areas the company executive with responsibility for the special 
item submits a written report covering the item which is included in the board 
materials and attends the board meeting by invitation for that part of the agenda 
to discuss the report in detail each special item is reviewed at least once annually 
in those instances when a director has been unable to attend board or 
committee meetings his or her comments on the papers for that meeting are 
communicated to the chairman in advance so that they can be duly considered
register of board policies
the board has established and adopted a number of policies ownership 
has been delegated as appropriate to the company secretary or relevant 
board committee 
these include
• corporate governance
• corporate social responsibility
• directors’ remuneration
• digital signatures
• financial reporting and control
• health and safety
• insider trading
•internal audit
• senior executive remuneration
• risk management
• whistle blowing
the board reviews these policies annually
performance evaluation
the combined code provides that the board should undertake a formal and 
rigorous annual evaluation of its own performance and that of its committees 
and individual directors individual evaluation should aim to show whether 
each director continues to contribute effectively and constructively and to 
demonstrate commitment to the role including commitment of time for board 
and committee meetings and any other duties the chairman is aware that it is 
his responsibility to select an effective process to carry out this initiative and to 
report and act on any outcome
the board carried out a performance evaluation in august 2007  which included 
an assessment of its committees and the performance contribution and 
commitment of individual directors over the 2007 financial year all directors 
participated in the performance evaluation with the exception of saad h 
hammad and rosalyn s wilton for whom the chairman determined there was 
insufficient time from their appointment on 1 august 2007 to conduct a fair 
and accurate evaluation 
in october 2007 the chairman reported the results of the board’s own 
performance to the full board results for committees to the respective 
committee chairman and the results of individual member performance 
separately to each director 
accountability and audit 
all directors have accepted a duty of care and accountability to act in the interests 
of the company the audit committee has a particular role acting independently 
from executive management to ensure that the interests of shareholders are 
properly protected relative to financial reporting and internal control 
optos plc annual report  accounts 2007 20  corporate governance
continued
risk management and internal control 
the board maintains overall responsibility for the company’s system of internal 
control and for reviewing its effectiveness its system is designed to manage 
rather than eliminate the risk of failure relative to achieving business goals and 
objectives and can only be a reasonable and not absolute assurance against 
material misstatement or loss 
a group risk and control framework has been established and adopted by 
the board this includes manuals of policies and procedures applicable to all 
material aspects of the business a budgetary control system which includes 
monitoring actual performance against predetermined plans and the 
appointment of suitably qualified and experienced staff to execute on their 
agreed responsibilities
the board considers risk management and control at every meeting and receives 
monthly updates as well as regular reports thereon from executive management 
monitoring of internal control has been delegated by the board to the chief 
executive officer risk management and control is considered monthly by 
the goc members of the goc assess the effectiveness of the internal control 
environment and procedures within their respective business units and report to 
the chief executive officer they are responsible for the operation of key internal 
controls the process covers the areas of most significant risk to the company 
external audit risk assessment and planning is in place the audit committee 
considers and determines relevant action in respect of any control issues 
raised by either the chief executive officer or the external auditors the audit 
committee determined that an internal audit function was not required for the 
year ended 30 september 2007  principally because of the size of the group 
this will continue to be reviewed annually
the board confirms that there is an ongoing process for identifying monitoring 
evaluating and managing the group’s significant risks that such a process has 
been in place for the year ended 30 september 2007 and up to the date of the 
approval of the annual report and accounts that it is regularly reviewed by the 
board and that it accords with the internal control guidance for directors relative 
to the combined code
communication with shareholders
the company believes in having an open and regular dialogue with shareholders 
to ensure that the goals objectives and overall business strategy of the group 
are communicated and understood the chairman is available to shareholders 
throughout the year the company has named its director of communications
assistant company secretary as investor and shareholder contact who is 
available to shareholders throughout the year
the chief executive officer and chief financial officer make twice yearly 
presentations following the company’s interim and preliminary results 
announcements this is followed by oneonone and group meetings with 
existing and prospective shareholders to address and discuss business progress 
and performance and issues that may be of concern similar meetings were held 
at other times throughout the year including attendance and participation at 
investment conferences hosting site visits where investors have the opportunity 
to meet with other members of senior management and participate in a tour 
of the company’s rd and european manufacturing facility also forms part 
of the company’s investor and shareholder relations programme led by the 
chief executive officer chief financial officer and director of communications
assistant company secretary the company conducted approximately 1 15 
investor meetings during the 2007 financial year the board receives regular 
reports on the investor and shareholder meetings including feedback
during the year the company issued trading updates and preclose trading 
statements relating to performance for a specified period of time and disclosed 
relevant business news through the regulatory news service in accordance with 
the financial services authority’s disclosure and transparency rules “dtr” 
the company notifies the market of its total voting rights and issued share 
capital at the beginning of every month covering the previous month 
the company is aware of the provisions in the dtr designed to enhance 
transparency by establishing minimum requirements on periodic financial 
reporting the company will issue interim management statements from the 
beginning of the 2008 financial year in compliance with the directive 
company information is available at wwwoptoscom
going concern
the directors having reviewed the group’s budget for the next financial year 
and other longerterm plans are satisfied that the group has adequate resources 
to continue in operational existence for the foreseeable future and therefore 
it is appropriate to continue to adopt the going concern basis in preparing 
the accounts
optos plc annual report  accounts 2007 21  introduction
all matters relating to executive remuneration are determined by the remuneration committee a committee of the board 
a resolution to approve the report will be proposed at the annual general meeting of the company at which the financial statements for the year ended 
30 september 2007 will be approved certain items in the remuneration report are required to be audited and are identified as such against the relevant heading
remuneration committee
the board considers that the chairman of the board should be a member of the remuneration committee as it is essential that the chairman be involved in the work 
of the remuneration committee and in particular the setting of the executive directors’ remuneration for the majority of the year the remuneration committee 
consisted of the following nonexecutive directors dr john padfield barry rose anne glover and patrick paul on 1 august 2007 ms glover and mr paul resigned from 
the committee and rosalyn wilton and saad hammad were appointed mrs wilton was appointed chairman of the remuneration committee on 4 september 2007 
the remuneration committee is required to meet at least twice a year and at such other times as the chairman of the remuneration committee shall require 
the remuneration committee is responsible for determining the remuneration of the executive directors and the senior management team together with their terms 
and conditions of employment it is also responsible for considering management recommendations for the remuneration and employment policy of the company 
staff including for example incentive arrangements for bonus payments and grant of share options
no members of the remuneration committee have any personal financial interest other than as shareholders conflicts of interest arising from crossdirectorships or 
daytoday involvement in running the business the remuneration committee makes recommendations to the board and other directors attend meetings when 
invited by the remuneration committee no director plays a part in any discussion about his or her own remuneration
remuneration policy
the remuneration committee has established a policy on the remuneration of executive directors and the board has established a policy for nonexecutive directors 
for the current and subsequent years the remuneration committee’s decisions are made on the basis of rewarding individuals for the nature of the jobs they undertake 
and their performance according to defined objectives to deliver the company’s strategy proper regard is given to the need to attract and retain highquality 
wellmotivated staff at all levels and to the remuneration being paid by similar companies
the remuneration policy is reviewed annually by the remuneration committee
policy for executive directors’ remuneration
during the financial year ended 30 september 2007  the remuneration committee consulted with new bridge street consultants llp to provide further advice on 
structuring executive directors’ remuneration packages together with a report on the proposals for a longterm incentive plan “ltip” external benchmarking 
of directors and senior executive remuneration was undertaken in conjunction with towers perrin and was used to guide the remuneration committee in their 
deliberations
the remuneration committee gives consideration to several components in respect of the executive directors’ remuneration which together comprise the total 
remuneration package these consist of the following which will apply also in the current financial year
• basic salary is determined by the remuneration committee at the beginning of each financial year and when an individual changes position or responsibility 
in deciding appropriate levels the remuneration committee considers the position in the company personal and company performance and relies on objective 
research which gives uptodate information on a comparable group of companies
• cash bonuses are paid provided that objectives established by the remuneration committee are met for each financial year for the chief executive officer and 
chief financial officer these measures are comprised entirely of financial measures reflecting group performance for other directors performance incentives are 
primarily based on financial measures reflecting group performance combined with incentives based on individual performance 
• benefits in kind which comprise company car allowance private health insurance life insurance and company sick pay 
• pension contribution the company operates a contractedout defined contribution scheme for ukbased executive directors whereby the company contributes 
10 of a director’s gross salary 
the basic salary is the only pensionable part of the remuneration package
share incentive schemes – established pre flotation
the company has operated discretionary share option arrangements and other vesting arrangements which were put in place prior to the company’s admission to 
the main market of the london stock exchange in february 2006 some of these arrangements were subject to performance conditions as summarised in note 20 to 
the financial statements the awards made under these arrangements to directors are set out in the table headed “share options granted to directors” at the end of 
this report
in addition the company operated a share save scheme under which options were granted in 2002 and matured in april 2007 the company continues to have 
a scheme in place for uk employees however at the current time there are no outstanding options under that scheme
directors’ remuneration report
optos plc annual report  accounts 2007 22  directors’ remuneration report
continued
thomas w butts share award
on 18 december 2006 mr butts was granted a share award to acquire up to 2200000 ordinary shares in the capital of the company at an exercise price of 200p 
per ordinary share the midmarket closing price on the date of grant at the annual general meeting held on 31 january 2007 a proposal to replace this award with 
an award to acquire up to 1350000 ordinary shares in the capital of the company at an exercise price of 2p per ordinary share and with certain curtailments of the 
exercise period was granted set out below is a summary of the arrangement in connection with mr butts’ award only mr butts participates in this arrangement 
and no part of the benefit from this award is pensionable
exercise of award
the exercise of this award by mr butts is dependent on meeting certain performance targets
the award will vest and become exercisable in three tranches following the end of the calendar years 2007  2008 and 2009 the vesting of each tranche is subject 
to the company achieving significant year on year increases to key performance indicators namely increasing revenues operating profit and net cash inflows 
these indicators are considered by the remuneration committee to be critical to the company’s future success the board or the remuneration committee at the 
relevant times will determine by reference to available financial information whether or not those targets are achieved in addition the ability to exercise the award 
is weighted towards the 2009 calendar year such that in excess of 50 of the award is subject to the requirement that mr butts be employed as of 1 january 2010 
absent the conditions described below
normally mr butts will only be able to exercise the award whilst he is employed by the company if he ceases employment with the group as a result of certain 
specified reasons including death disability termination of mr butts’ employment by the company without cause or mr butts resigning in certain circumstances 
such as where his salary or bonus are reduced other than where there is an acrosstheboard reduction applicable to all of the company’s senior executives 
mr butts is relocated a significant distance away from the company’s current us headquarters or if there is a material adverse change to mr butts’ position or a 
material diminution of his duties and responsibilities the award will be exercisable to the extent vested for a period of three months extended to one year for death 
or disability following termination of employment to the extent that the award is not exercised by the expiry of that period or if mr butts leaves employment with 
the company for any other reason the award will lapse if mr butts leaves partway through a year for a specified reason then the remuneration committee may 
determine taking into account progress towards the targets and prorated to reflect time served that a further part of the award shall vest
to the extent that the award has not lapsed or been exercised the award will lapse ten years after its grant
change of control
the award may be exercised to the extent vested in the event of a change of control of the company the remuneration committee may decide that the whole or such 
further part of the award as they determine shall vest in these circumstances
adjustments
the award may be adjusted following a capitalisation rights issue open offer subdivision consolidation or reduction in the capital of the company or any other 
variation of ordinary share capital or if the company is the subject of a demerger
amendments
the company and mr butts may amend the terms of this award but will not alter to mr butts’ advantage terms relating to mr butts’ maximum entitlement or the 
adjustment of the award on a variation of share capital unless such amendments are approved by shareholders or are minor amendments to benefit administration 
of the arrangement to take into account a change in legislation or to obtain or maintain favourable tax treatment for mr butts the company or any group company
optos performance share plan 2007
shareholder approval for a new sharebased longterm incentive plan the “ltip” was granted at the annual general meeting held on 31 january 2007 under the 
ltip  awards were made in may 2007 to allan watson as set out in the table headed “share options granted to directors” at the end of this report and to other senior 
executives a summary of the principal terms of the ltip is set out in note 20 to the financial statements and below
the remuneration committee will supervise the operation of the ltip  any employee including an executive director of the company and any of its subsidiaries will 
be eligible to participate in the ltip at the discretion of the remuneration committee the committee may grant awards to acquire ordinary shares within six weeks 
following the company’s announcement of its results for any period the committee may also grant awards at any other time when the committee considers there 
are exceptional circumstances which justify the granting of awards the committee may grant awards as conditional shares a nil or nominal cost option with a 
short exercise period or as forfeitable shares the committee may also decide to grant cashbased awards of an equivalent value to sharebased awards or to satisfy 
sharebased awards in cash an award may not be granted more than ten years after shareholder approval of the ltip  no payment is required for the grant of an award 
awards are not transferable except on death awards are not pensionable
an employee may not receive awards in any financial year over shares having a market value in excess of 100 per cent of hisor her annual base salary in that financial 
year it is the remuneration committee’s current intention that annual awards under the ltip will not exceed 50 per cent of base salary for the executive directors 
awards will normally vest on the third anniversary of grant other than in exceptional circumstances as outlined below to the extent that the applicable performance 
conditions see below have been satisfied and provided the participant is still employed in the company’s group
optos plc annual report  accounts 2007 23  all awards will be subject to performance conditions set by the remuneration committee each year to be measured over a single threeyear period for initial awards 
granted to senior executives in the financial year ending 30 september 2007 including the award made to mr watson in may 2007 referred to above vesting will 
be based on achieving diluted earnings per share eps growth targets for the financial year ending 30 september 2009 which were struck on the basis of expected 
performance growth for which eps was considered the most appropriate measure at the time the ltip was approved these targets based on a notional tax rate of 
33 delivered a 25 vesting outcome for a 01 1 eps result in the year ended 30 september 2009 with a linear scale applying up to a 100 vesting outcome for a 
021 eps result in the year ended 30 september 2009
awards will lapse at the end of the applicable performance period to the extent that the performance conditions have not been satisfied there will be no provision 
to retest the performance conditions whilst eps is currently considered to be the appropriate performance condition the remuneration committee can set 
different performance conditions from those described above for future awards however shareholder approval will be required if in the reasonable opinion of 
the remuneration committee the targets applying to future awards to executive directors under the ltip are materially less challenging than those approved by 
shareholders at the last annual general meeting the committee may also vary the performance conditions applying to existing awards if an event has occurred which 
causes the committee to consider that it would be appropriate to amend the performance conditions provided that the committee considers the varied conditions 
are fair and reasonable and not materially less challenging than the original conditions would have been but for the event in question
if a participant is no longer an employee or director within the company’s group an award will normally lapse however if a participant ceases to hold all employments 
or offices within the company’s group by reason of death disability illness or the sale or transfer of a participant’s employing company or business out of the 
company’s group or in other exceptional circumstances at the discretion of the remuneration committee then hisher award will normally vest when heshe leaves 
the extent to which an award will vest in these situations will depend upon the extent to which the performance conditions have in the opinion of the remuneration 
committee been satisfied as at the date of leaving the award will then normally be prorated to reflect the time between grant and cessation relative to a period of 
three years although the remuneration committee can decide not to prorate an award if it determines that it would be inappropriate to do so 
if a participant ceases to hold all employments or offices within the company’s group for one of the “good leaver” reasons specified above the remuneration 
committee can decide that hisher award will vest on the date when it would have vested if heshe had not so ceased such employments or offices subject to i the 
performance conditions measured at that time and ii prorating by reference to the time of cessation as described above 
in the event of a takeover scheme of arrangement or winding up of the company not being an internal corporate reorganisation all awards will vest early to 
the extent that the performance conditions have or would have in the opinion of the remuneration committee been satisfied at that time over the shortened 
performance period awards will then normally be prorated to reflect the shorter than normal period of time between the date of the award and the time of vesting 
although the remuneration committee can decide not to prorate awards if it regards it as inappropriate to do so in the circumstances
optos share option plan 2007
shareholder approval for a new share option plan the “option plan” was granted at the annual general meeting held on 31 january 2007 under the option plan 
awards were made in may 2007 to douglas anderson as set out in the table headed “share options granted to directors” at the end of this report and to other 
employees a summary of the principal terms of the option plan is set out in note 20 to the financial statements and below
the option plan will comprise two parts one approved by hm revenue  customs so as to provide uk tax qualified options and one not so approved this structure 
enables the company to utilise certain uk tax benefits and retain the flexibility to provide where necessary options in excess of the limits imposed by uk tax 
legislation options may also be granted as uk enterprise management incentive emi options subject to the company meeting the qualifying criteria for such emi 
options it is also intended that the option plan will be able to provide us employees with incentive stock options isos so as to achieve certain tax efficiencies in 
the us the remuneration committee will supervise the operation of the option plan any employee of the company and any of its subsidiaries will be eligible to 
participate in the option plan at the discretion of the remuneration committee however directors and employees who participate in the ltip will not participate in the 
option plan the remuneration committee may grant options within six weeks following the company’s announcement of its results for any period the committee 
may also grant options at any other time when the committee considers there are exceptional circumstances which justify the granting of options no payment is 
required for the grant of an option options may not be granted more than ten years after shareholder approval of the option plan options are not transferable 
except on death options are not pensionable
options will be granted at an exercise price which is not less than the market value of the company’s ordinary shares on or around the time of grant
an employee may not receive options under the option plan in any financial year over shares having a market value in excess of 50 per cent of hisher annual base 
salary in that financial year
the remuneration committee when granting options will set the time or times at which options will become exercisable as well as any performance conditions to 
which the options are subject 
the remuneration committee currently intends that options under the option plan where the underlying shares have a market value at grant of less than £10000 may 
not be subject to performance targets instead they normally will vest on the third anniversary of grant this vesting schedule may be altered to reflect stock market 
conditions and practice in different jurisdictions for example options provided to employees based in north america are likely to be subject to staggered vesting 
from 12 months from grant 
directors’ remuneration report
continued
optos plc annual report  accounts 2007 24  directors’ remuneration report
continued
options where the underlying shares have a market value in excess of £10000 will be subject to performance conditions based on specific business targets for the 
awards made in may 2007 including those made to mr anderson the performance conditions which apply are based on diluted earnings per share targets and are 
the same as those applying to the ltip  referred to earlier in this report those performance conditions reflected expected performance growth for which eps was 
thought to be the most appropriate measure at the time of approval of the ltip and the option plan
if a participant is no longer an employee within the company’s group options will normally lapse however if a participant ceases to hold all employments within 
the company’s group by reason of death disability illness or the sale or transfer of a participant’s employing company or business out of the company’s group or 
in other exceptional circumstances at the discretion of the remuneration committee then heshe may exercise within a period of three months following cessation 
of employment options on a pro rata basis reflecting time between grant and cessation of employment relative to the vesting period where options are subject to 
staggered vesting then options vested at the date of cessation of employment may be exercised within the three month period in relation to performancerelated 
options the remuneration committee will take into account performance from the date of grant to the date of cessation in assessing the proportion of the option 
which is exercisable the remuneration committee has a discretion to enable a greater proportion or the whole of any option to be exercised in circumstances which 
they consider appropriate
in the event of a takeover scheme of arrangement or winding up of the company not being an internal corporate reorganisation all options will be exercisable to the 
extent vested or to such greater extent as the remuneration committee decides
service contracts
the company has entered into service contracts with each of its executive directors none of which is for a fixed term it is the remuneration committee’s policy 
to offer service contracts for an indefinite term subject to termination on a maximum of one year’s notice or an equivalent severance payment save for mr butts 
who has a usstyle service agreement each of the executive directors’ service contracts can be terminated by the director giving not less than six months written 
notice of termination or by the company giving the director not less than 12 months written notice of termination the dates of the executed contracts for each 
executive director are as follows 
allan m watson   9 february 2006
douglas c anderson   9 february 2006
thomas w butts  15 december 2006
save in relation to mr butts the company has the right in its absolute discretion to terminate each of the service contracts at any time by making a payment in lieu of 
the notice period comprising basic salary car allowance if applicable bonuses based upon the bonus paid during the previous financial year benefits and pension 
contributions
mr butts is a us citizen and the company has agreed to provide him with a service contract which is consistent with market practice in the united states and is 
governed by the laws of the commonwealth of massachusetts the company has the right in its absolute discretion to terminate mr butts’ service contract at any time 
without “cause” by giving him two months written notice or making a payment in lieu of notice equal to his salary for the notice period in addition and in exchange 
for the execution by mr butts of a release of claims against the company mr butts is entitled to a severance package comprised of one year of salary bonus based on 
the bonus paid during the previous financial year and medical benefits the severance package will be reduced by the amount of any payments mr butts receives in 
lieu of his notice period if mr butts resigns in certain circumstances he is also entitled to receive the severance package referred to above 
ian stevens’ international assignment to the united states ended on 30 september 2006 at this point mr stevens entered into a transitional period whereby he 
continued to be employed by the company as general manager of its north american operations based in the uk at the end of this transitional period the company 
and mr stevens agreed to terminate mr stevens’ service contract effective 30 april 2007 mr stevens received a severance payment in line with the contractual terms 
agreed at the commencement of his international assignment which consisted of a 12 months basic salary car allowance and pension contributions b a full year 
performance bonus based on his existing incentive plan and paid per the actual achievements of target measured over the sixmonth period ended 31 march 2007 
and c £3500 in lieu of 12 months’ contractual benefits mr stevens is also entitled to exercise his share options for a period of two years following the termination date
there are no other provisions for early termination of the service contracts
optos plc annual report  accounts 2007 25  nonexecutive directors
the company’s policy is to establish and maintain a body of nonexecutive directors with a breadth of skills and experience that is relevant to the company’s business 
in this context it is the board’s policy for the nonexecutive directors to be paid a level of fee that reflects market conditions and is sufficient to attract individuals with 
appropriate knowledge and experience the board seeks to pay the market rate to reflect the time taken to carry out the role of nonexecutive director and reviews 
the rates annually
the company has entered into a letter of appointment with each of the current nonexecutive directors each letter of appointment is for a fixed threeyear 
term provided that either party may terminate the appointment at any time during the term of appointment by giving three months’ notice of termination and 
the appointment may be terminated any time in accordance with the articles of association of the company or the companies acts the dates of the letters of 
appointment and the expiry dates are
date of letter
nonexecutive director of appointment expiry date
john m padfield phd 1 1 jan 06 30 dec 08
anne m glover 27 jan 06 26 jan 09
patrick rd paul 27 jan 06 26 jan 09
barry m rose 27 jan 06 26 jan 09
david r guyer md 05 may 06 26 jan 09
rosalyn swilton 01 aug 07 31 jul 10
saad h hammad 01 aug 07 31 jul 10
directors’ interests
the beneficial and nonbeneficial interests of the directors in the ordinary shares of £002 each in the capital of the company “ordinary shares” are set out below
at 30 sep 2007 at 1 oct 2006
or at date of appointment
ordinary number of ordinary number of 
shares share options shares share options 
john m padfield phd 175000 – 175000 –
thomas w butts 23000 1350000 – –
allan m watson – 427995 – 401000
douglas c anderson 1 2765784 142155 3665784 126000
anne m glover 2 13381929 – 1 3381929 –
patrick rd paul 3 5037 410 – 5037 410 –
barry m rose 15000 – 15000 –
david r guyer md ––– –
saad h hammad ––– –
rosalyn s wilton ––– –
1 of these ordinary shares 157 750 are held in the name of mr anderson and 2608034 are held in the name of crombie anderson associates limited a company 
in which mr anderson holds 5525 of the share capital 
2 of these ordinary shares 127 176 are held in the name of ms glover and 13254753 are held in the names of seven amadeus funds as further detailed in 4 below 
of which ms glover is a director andor limited partner
3 of these ordinary shares 4657 867 are held in the name of mr paul and 379543 are held in the name of chester investments limited a company in which 
mr paul holds 100 of the share capital
4 the interests of amadeus are held amongst the following funds
amadeus i 2897 727 ordinary shares
amadeus i affiliates fund lp 152512 ordinary shares
amadeus ii a 4592031 ordinary shares
amadeus ii b 3061354 ordinary shares
amadeus ii c 2142948 ordinary shares
amadeus ii affiliates lp 102045 ordinary shares
amadeus ii d gmbh  co kg 306136 ordinary shares
5 mr anderson a director of the company is a director and majority shareholder in crombie anderson associates limited and ms glover and mr paul 
directors of the company both hold minority shareholder interests in crombie anderson associates limited
as at 28 november 2007  there have been no changes in the above shareholdings since 30 september 2007 
directors’ remuneration report
continued
optos plc annual report  accounts 2007 26  directors’ remuneration report
continued
directors’ remuneration audited
the remuneration in respect of qualifying services of each person who served as a director during the year ended 30 september 2007 was as shown below 
note that these amounts are expressed in us dollars the group’s reporting currency though all directors were paid in pounds sterling except for mr butts 
the average exchange rate used in the year ended 30 september 2007 was 198 to £1 2006 180 to £1
year to 2007 year to 2006
compensation year to year to pension pension
 salary and fees bonus benefits for loss of office sep 07 sep 06 contributions contributions
’000 ’000 ’000 ’000 ’000 ’000 ’000 ’000
chairman
john m padfield phd 1 14––– 1 14 80– –
nonexecutive directors
anne m glover 
1
52––– 52 38 – –
patrick rd paul 52––– 52 29 – –
barry m rose 55––– 55 36 – –
david r guyer md 99––– 99 38 – –
rosalyn s wilton 
2
11––– 11–– –
saad h hammad 
3
10––– 10–– –
executive directors
thomas w butts 
4
309 190 23 – 522 – – –
allan m watson 310 154 13 – 477 412 29 20
douglas c anderson 238 68 3 – 309 266 22 1 1
ian h stevens 
5
167 92 6 433 698 441 13 20
2006 retirees 
6
––––– 1284– 27
total 141 7 504 45 433 2399 2624 64 78
        
notes to the table
1
ms glover’s fees are paid to amadeus capital partners
2
mrs wilton was appointed on 1 august 2007
3
mr hammad was appointed on 1 august 2007
4
mr butts was appointed on 18 december 2006
5
mr stevens resigned on 30 april 2007
6
includes compensation for loss of office of 643000
future nonexecutive directors’ remuneration
following a benchmarking review of nonexecutive directors’ remuneration in public companies on 24 may 2007 the board resolved to increase the fees payable to 
certain nonexecutive directors effective 1 july 2007 under the revised fees dr padfield receives £80000 per annum ms glover and mr paul each receive £29000 
per annum and mr rose receives £35000 per annum dr padfield’s increased fees include additional remuneration which the board has determined is appropriate in 
accordance with article 1 15 of the company’s articles of association in recognition of dr padfield’s role as chairman as well as chair of the nomination committee and 
seat on the audit and remuneration committees
dr david guyer receives £25000 per annum as a director’s fee and an additional £25000 per annum as chairman of the medical advisory board mrs wilton receives 
£33000 per annum and mr hammad receives £30000 per annum
no director took part in discussions or decisions relating to his or her own remuneration
longterm incentive plans
shareholder approval was granted for a new sharebased performance share plan the optos performance share plan 2007 and a discretionary share option scheme 
the optos share option plan 2007 at the annual general meeting held on 31 january 2007 summaries of the principal features of the new plans are outlined above 
optos plc annual report  accounts 2007 27  share options granted to directors audited
details of share options of those directors who served during the financial year ended 30 september 2007 are set out in the table below no amounts were payable for 
the award of the share options
at 30 sep 07 earliest date
at 1 oct granted lapsed exercised or date ceased exercise date from which
2006 during year during year during year to be a director price of grant exercisable expiry date
thomas w butts – 2200000 2200000 – – £200 18 dec 06 01 jan 08 31 dec 1 1
– 1350000 – – 1350000 £002 31 jan 07 01 jan 08 31 dec 1 1
– 3550000 2200000 – 1350000
allan m watson 150000 – – – 150000 £100 01 dec 03 01 dec 03 30 nov 13
1000 – – – 1000 £100 01 oct 04 01 oct 04 30 sep 14
150000 – – – 150000 £100 21 sep 05 21 sep 05 20 sep 15
100000 – – – 100000 £100 09 dec 05 09 dec 06 08 dec 15
– 26995 – – 26995 £002 29 may 07 01 jun 10 30 nov 1 1
401000 26995 – – 427995
douglas c anderson 1000 – – – 1000 £100 01 oct 04 01 oct 04 30 sep 14
25000 – – – 25000 £100 21 sep 05 21 sep 05 20 sep 15
100000 – – – 100000 £100 09 dec 05 09 dec 06 08 dec 15
– 16155 – – 16155 £248 29 may 07 01 jun 10 28 may 17
126000 16155 – – 142155
ian h stevens 1 50000 – – – 50000 £100 03 mar 99 03 mar 99 29 apr 09
50000 – – – 50000 £130 01 mar 00 01 mar 00 29 apr 09
100000 – – – 100000 £145 01 sep 00 01 sep 00 29 apr 09
50000 – – – 50000 £080 01 oct 01 01 oct 01 29 apr 09
50000 – – – 50000 £100 01 oct 02 01 oct 02 29 apr 09
100000 – – – 100000 £100 01 jul 03 01 jul 03 29 apr 09
1000 – – – 1000 £100 01 oct 04 01 oct 04 29 apr 09
100000 – – – 100000 £100 21 sep 05 21 sep 05 29 apr 09
44000 – – – 44000 £100 21 sep 05 21 sep 05 29 apr 09
50000 – 33333 – 16667 £100 09 dec 05 09 dec 06 29 apr 09
595000 – 33333 – 561667
1 ceased to be a director on 30 april 2007
all the above awards were issued to directors prior to the company’s admission to the main market of the london stock exchange in february 2006 with the 
exception of awards made to mr butts in january 2007 described earlier in this report the award to mr watson in may 2007 which was made under the ltip referred to 
above and the award made to mr anderson in may 2007 under the share option plan referred to above
the options numbers listed above exclude options reserved under the 2002 share save scheme matured in april 2007 mr stevens subsequently exercised 
12413 options 
aggregate gains made by serving directors on the exercise of share options amounted to nil 2006 979837
the market price of the shares at 30 september 2007 was £197 the highest and lowest market prices during the year to 30 september 2007 were £265 and 
£172 respectively
directors’ remuneration report
continued
optos plc annual report  accounts 2007 28  directors’ remuneration report
continued
performance graph
the following graph shows the company’s performance measured by the total shareholder return compared with the performance of the ftse small cap and the 
ftse all share and healthcare equipment and services rebased indices the board believes these comparisons are the most relevant for a company of optos’ size
rosalyn s wilton
chairman of the remuneration committee
signed and approved for and on behalf of the board
28 november 2007
130
120
110
100
90
80
70
60
 f m a m j j a s o n d j f m a m j j a s
optos
ftse small cap – price index
ftse share hc eq  svs £ – price index 
source datastream
optos plc annual report  accounts 2007 29  the directors present their report and the audited financial statements for the year ended 30 september 2007
principal activities and business review
the group is principally engaged in the design development manufacture and marketing of retinal imaging devices the directors’ report should be read in 
conjunction with the chairman’s statement on page 6 the operational review on pages 8 to 10 and the financial review on pages 12 and 13 which are incorporated 
into this report by reference which together contain details of the principal activities of the group a review of the business during the year and an indication of 
expected progress disclosure of the key performance indicators for the group disclosure of the principal risks and uncertainties affecting the business and disclosure 
of the group financial risk management policy in addition to this note 22 of the financial statements also contains disclosure relating to the group’s principal financial 
instruments
financial results and dividend
the group’s consolidated net loss for the year after taxation was 02 million 2006 108 million profit the directors do not recommend the payment of a dividend 
for the year the loss for the year has been transferred to the reserves
research and development
the group continues to invest in research and development details of activities on research and development are set out in the operational review and the 
financial review
share capital
details of the company’s share capital can be found on page 32 of this annual report in the section entitled shareholder information
substantial shareholders
details of the substantial interests in the company’s ordinary share capital can be found on page 33 of this annual report in the section entitled 
shareholder information
directors
details of the current directors are set out on pages 14 to 15
details of board appointments and resignations are set out on page 19
directors’ interests
details of directors’ interests are set out on page 26
qualifying thirdparty indemnity
the company’s articles of association contain a provision indemnifying the directors in connection with their duties to the company more detail on which can be 
found on page 35 of this annual report in the section entitled shareholder information
material contracts
none of the directors had any material interest in any contract of significance with the company or its subsidiaries other than their service contracts
creditor payment policy
optos’ policy for all suppliers is to fix terms of payment when agreeing the terms of the credit account to ensure that the supplier is aware of the terms and to abide by 
the agreed terms of payment trade payables are paid on the 20th of the month following the month of invoice equivalent to an average of 35 days
charitable contributions
the company made a number of charitable contributions totalling 4000 as described in the corporate social responsibility report on page 16
financial instruments
the group’s financial risk management objectives and policies are discussed in note 22
directors’ statement as to disclosure of information to auditors
in accordance with section 234za of the companies act 1985 the directors declare that they are not aware of any relevant audit information of which the company’s 
auditors are unaware the directors have taken all steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information 
and to establish that the company’s auditors are aware of that information
takeovers directive
the information required by part vii of schedule 7 to the companies act 1985 following implementation in the uk of the european union takeovers directive is set 
out in the section of this annual report headed “shareholder information” on pages 32 to 38
directors’ report
optos plc annual report  accounts 2007 30  directors’ report
continued
annual general meeting
the annual general meeting will be held on 28 february 2008 a notice of annual general meeting will be sent to shareholders separately containing the resolutions 
to be proposed at the annual general meeting
auditors
a resolution to reappoint ernst  young llp as auditors will be put to the forthcoming annual general meeting
by order of the board
allan m watson
director
28 november 2007
optos plc annual report  accounts 2007 31  share capital and shareholders
as at 1 october 2006 the company had 66178338 ordinary shares in issue during the year ended 30 september 2007  2518839 ordinary shares were issued to staff 
and other holders of share options as at 30 september 2007  the company had 68697 177 ordinary shares in issue
details of the options outstanding under each of the company’s share option schemes at the end of the year are set out in note 20 to the group financial statements
the company has only one class of share ordinary shares of £002 each each ordinary share carries one vote therefore the total number of voting rights in the 
company as at 30 september 2007 was 68697 177
the authorised share capital of the company as at this date was £1800000 comprising 90000000 ordinary shares 
no share in the capital of the company may be allotted at a discount and save as permitted by the companies act 1985 the “1985 act” and the companies act 2006 
the “2006 act” together the “acts” no share may be allotted except as paid up at least as to onequarter of its nominal value and the whole of any premium on it
voting
subject to the rights and restrictions attached to any class of shares
i on a show of hands every shareholder present in person shall have one vote and
ii  on a poll every shareholder present in person or by proxy shall have one vote for every share of which they are the holder
provided that no shareholder shall be entitled to vote in relation to shares held by them unless all moneys presently payable by them in respect of those shares have 
been paid
the voting rights of shareholders are restricted where a notice pursuant to section 793 of the 2006 act which section replaces section 212 of the 1985 act has been 
given in respect of shares held by such shareholder and the information required by such notice has not been given to the company
transfer of shares
a shareholder may transfer all or any of hisher certificated shares by an instrument of transfer in any usual form or in any other form which the board of directors 
each a “director” of the company the “board” may approve an instrument of transfer shall be signed by or on behalf of the transferor and unless the share is fully 
paid by or on behalf of the transferee an instrument of transfer need not be under seal
the board may in its absolute discretion and without giving any reason refuse to register the transfer of a certificated share which
i is not a fully paid share provided that the refusal does not prevent dealings in shares of that class in the company from taking place on an open and proper basis
ii is in respect of more than one class of shares
iii is not lodged duly stamped if stampable with the company and except where the shares are registered in the name of a recognised person as defined in the 
articles of association of the company the “articles” and no certificate shall have been issued thereof accompanied by the relevant share certificate and such 
other evidence of the right to transfer as the board may require or
iv is in favour of more than four persons
the board may refuse to register a transfer of shares in the company by a person if the shares represent at least one quarter of one per cent interest in the company’s 
shares or any class thereof and if in respect of those shares such person has been served with a notice pursuant to section 793 of the 2006 act which section replaces 
section 212 of the 1985 act after failure whether by such person or by another to provide the company with information concerning interests in those shares 
required to be provided under the acts unless i the transfer is an excepted transfer as defined in the articles ii the relevant shareholder is not himherself in default 
as regards supplying the information required and heshe proves to the satisfaction of the board that no person in default as regards supplying such information is 
interested in any of the shares which are the subject of the transfer or iii the transfer of the shares is required to be registered by the uncertified securities regulations 
2001 si 2001 no 3755 “crest regulations”
notice of refusal to register a transfer must be sent to the transferee within two months after the date on which the instrument of transfer was lodged with the 
company or the instruction to transfer shares was received by the company from the operator of a relevant system in each case as defined in the crest regulations 
as the case may be
no fee shall be charged for the registration of any instrument of transfer or other document relating to or affecting the title to any share every transfer of shares 
which are in uncertificated form must be made by means of a relevant system including the relevant system of which crestco limited is the operator in each case 
as defined in the crest regulations
other than as provided by part 28 chapter 3 of the 2006 act which restates sections 428 to 430 of the 1985 act and implements the takeovers directive interim 
implementation regulations 2006 si 1 1832006 the regulations and the city code on takeovers and mergers there are no rules or provisions relating to mandatory 
takeover bids andor squeezeout and sellout rules in relation to the ordinary shares
variation of rights
subject to the provisions of the acts rights attached to any class of shares may be varied or abrogated in such manner if any as may be provided by those rights 
or in the absence of any provision either with the written consent of the holders of not less than threequarters in nominal value of the issued shares of that class 
excluding shares of that class held by the company as treasury shares or the sanction of an extraordinary resolution passed at a separate general meeting of the 
holders of those shares
shareholder information
optos plc annual report  accounts 2007 32  shareholder information
continued
alteration of share capital
the company may from time to time by ordinary resolution increase consolidate and divide or subject to the acts subdivide all or any part of its share capital 
the company may by ordinary resolution also cancel any shares that have not at the date of passing the resolution been taken or agreed to be taken by any person 
and diminish the amount of its authorised share capital by the amount of the shares so cancelled subject to the provisions of the acts the company may by special 
resolution reduce its share capital capital redemption reserve and share premium account in any way
allotmentandissueofshares
subject to the provisions of the acts and the articles and without prejudice to any rights attached to any existing shares or class of shares any share may be issued with 
such rights or restrictions as the company may by ordinary resolution determine or subject to and in the default of such determination as the board shall determine 
subject to the provisions of the acts and the articles the unissued shares of the company whether forming part of the original or any increased capital are at the 
disposal of the board
the directors are by shareholder resolution passed at the company’s annual general meeting “agm” on 31 january 2007  generally and unconditionally authorised 
pursuant to section 80 of the 1985 act to exercise all the powers of the company to allot relevant securities within the meaning of section 802 of the 1985 act up to 
a maximum nominal amount of £371497 this authority expires on the earlier of 31 april 2008 or on the conclusion of the 2008 agm of the company unless previously 
revoked varied or renewed
the directors are by shareholder resolution also passed at the company’s agm on 31 january 2007  generally empowered to allot equity securities within the 
meaning of section 942 of the 1985 act of the company for cash as if section 891 of the 1985 act or any preemption provisions contained in the articles did not 
apply this power is limited to i any allotment where equity securities have been offered to holders of equity securities in proportion as nearly as may be to their then 
holdings of such securities and ii any other allotment of equity securities up to an aggregate nominal value of £133180 such authorities and powers expire on the 
earlier of 31 april 2008 or on the conclusion of the next agm of the company unless previously revoked varied or renewed
redeemable shares and purchase of own shares
subject to the acts and without prejudice to any rights attaching to any existing shares or class of shares in such manner as is provided in the articles shares may be 
issued that are to be redeemed or which at the option of the company or the holder are liable to be redeemed
subject to the acts and to chapter 12 of the rules relating to admission to the official list in accordance with section 73a2 of the financial services and markets act 
2000 the “listing rules” and without prejudice to any relevant special rights attached to any class of shares the company may purchase any of its own shares of any 
class in any way and at any price whether at par or above or below par
the company is by shareholder resolution passed at the company’s agm on 31 january 2007  generally and unconditionally authorised to make market purchases 
within the meaning of section 1633 of the 1985 act of any of its ordinary shares on such terms and in such manner as the directors of the company may from time 
to time determine provided that i the maximum number of ordinary shares authorised to be purchased is 6659033 ii the minimum price which may be paid for 
any such ordinary share is £002 exclusive of the expenses of purchase if any payable by the company iii the maximum price exclusive of the expenses of purchase 
if any payable by the company which may be paid for any such ordinary share is an amount equal to 105 of the average of the middle market closing quotations 
for an ordinary share as derived from the daily official list of the london stock exchange for the five business days immediately preceding the day of purchase 
this authority expires on the earlier of 15 months after the passing of the resolution or on the conclusion of the 2008 agm of the company
distribution of assets on winding up
except as provided by the rights and restrictions attached to any class of shares the holders of the company’s shares will under general law be entitled to shares in any 
surplus assets in a winding up in proportion to their shareholdings a liquidator may with the sanction of an extraordinary resolution and any other sanction required 
by the insolvency act 1986 divide among the shareholders in specie the whole or any part of the assets of the company and may for that purpose value any assets 
and determine how the division shall be carried out as between the shareholders or different classes of shareholders
substantial shareholders
as at 22 november 2007  the company had been notified in accordance with dtr 5 of the financial service authority’s disclosure and transparency rules of the 
following interests in the company’s ordinary share capital 
number percentage
 of ordinary of ordinary
shares shares issued shares
straumur buraaras investment bank hf  2797000 41
the goldman sachs group inc 2565154 37
royal london asset management ltd  2441405 36
powe capital management llp 2250000 33
legal and general investment management ltd  2236213 33
optos plc annual report  accounts 2007 33  the company is not aware of any other significant direct or indirect holding of securities in the company except for directors’ holdings which are disclosed on page 26 
in the directors’ remuneration report
the company is not aware of any agreements between holders of securities which may result in restrictions on the transfer of securities or on voting rights
significant agreements
there are no agreements which the company considers to be significant and to which the company is a party that take effect alter or terminate upon a change of 
control of the company following a takeover bid
compensation for loss of office
the articles provide that the board may resolve to exercise any power conferred on the company by the acts to make provision as may seem appropriate for the 
benefit of any persons employed or formerly employed by the company or any of its subsidiaries or any member of their family including a spouse or any person who 
is or was dependent on them in connection with the cessation or the transfer to any person of the whole or part of the undertaking of the company or any subsidiary
thomas butts’ service agreement provides that immediately preceding a change in control all thenoutstanding but unvested portions of the equity compensation in 
the form of awards for ordinary shares shall immediately become fully vested subject to achievement of the targets set out in the service agreement
no such terms are included in the service agreements of allan m watson and douglas c anderson however pursuant to the terms of certain options issued prior to 
the company’s flotation all unvested options outstanding at the time of a change in control become vested in addition the terms of the performance share plan 2007 
and share option plan 2007 contain certain provisions related to change in control described in the directors’ remuneration report on pages 23 and 24
appointment and retirement of directors
unless otherwise determined by ordinary resolution the number of directors may not be less than two and is not subject to any maximum directors may be 
appointed by the company by an ordinary resolution of shareholders the board may appoint a director either to fill a vacancy or as an additional director and in 
either case whether or not for a fixed term any director so appointed will hold office only until the next following general meeting and will not be taken into account 
in determining the directors who are to retire by rotation at such meeting if not reappointed at such meeting such a director will vacate office at its conclusion 
a director is not required to hold shares in the capital of the company
on joining the board the directors are provided with documentation on the company and its activities new directors are provided with an appropriate induction 
programme and where appropriate site visits are arranged to business facilities ongoing training is provided as necessary
appointment of alternate directors
any director other than an alternate director may by notice delivered to the secretary of the company as such term is defined in the articles the “secretary” at the 
registered office of the company or in any other manner approved by the board appoint any other director or any other person who is approved by the board and is 
willing to act to be hisher alternate no appointment of an alternate director who is not already a director may be effective until hisher consent to act as a director 
has been received at the registered office of the company and hisher appointment has been approved by the board
retirement by rotation
at the first general meeting after the date of adoption of the articles and at each subsequent annual general meeting of the company as near as possible to but not 
exceeding onethird of the directors but at least one in any case must retire from office by rotation the directors to retire will be firstly those who wish to retire and 
not offer themselves for reelection and secondly those who have been longest in office since their last appointment or reappointment
replacement of directors
section 168 of the 2006 act provides that a company may remove a director by ordinary resolution but requires that it be at a meeting and not by written resolution 
so as to ensure the director’s right to be heard special notice is required
in addition to any powers in the acts the articles provide that the company may by ordinary resolution remove any director before the expiration of hisher period 
of office subject to the provisions of the acts the company may by ordinary resolution appoint a person to be a director either to fill a vacancy or as an additional 
member of the board
subject to the provisions of the acts the board may appoint a person to be a director either to fill a vacancy or as an additional member of the board
the company may by ordinary resolution subject the number of directors to a maximum
shareholder information
continued
optos plc annual report  accounts 2007 34  directors’ interests
subject to the provisions of the acts and provided that heshe has disclosed to the board the nature and extent of any material interest of his a director 
notwithstanding his office
i may be a party to or otherwise interested in any transaction or arrangement with the company or in which the company is otherwise interested
ii may act by himherself or hisher firm in a professional capacity for the company otherwise than as auditor and heshe or hisher firm shall be entitled to 
remuneration for professional services as if heshe were not a director
iii may be a director or other officer of or employed by or a party to any transaction or arrangement with or otherwise interested in any body corporate promoted 
by the company or in which the company is otherwise interested and
iv shall not by reason of hisher office be accountable to the company for any benefit which heshe derives from any such office or employment or from any such 
transaction or arrangement or from any interests in any such body corporate and no such transaction or arrangement shall be liable to be avoided on the ground 
of any such interest or benefit
votes
questions arising at a meeting of the board shall be decided by a majority of votes in the case of an equality of votes the chairman shall have a second or casting vote
voting restrictions
a director shall not vote at a meeting of the board or a committee of the board on any resolution of the board concerning hisher appointment or concerning a matter 
in which heshe has an interest other than by virtue of hisher interests in shares or debentures or other securities of or otherwise in or through the company which 
together with any interest of any person connected with himher is to hisher knowledge material unless hisher interest arises only because the resolution concerns 
one or more of the following matters
i the giving of a guarantee security or indemnity in respect of money lent or obligations incurred by himher or any other person at the request of or the benefit of 
the company or any of its subsidiary undertakings
ii the giving of a guarantee security or indemnity in respect of a debt or obligation of the company or any of its subsidiary undertakings for which the director has 
assumed responsibility in whole or part and whether alone or jointly with others under a guarantee or indemnity or by the giving of security
iii a contract arrangement transaction or proposal concerning an offer of shares debentures or other securities of the company or any of its subsidiary undertakings 
for subscription or purchase in which offer heshe is or may be entitled to participate as a holder of securities or in the underwriting or subunderwriting of which 
heshe is to participate
iv a contract arrangement transaction or proposal concerning any other body corporate in which heshe or any person connected with himher is interested 
directly or indirectly and whether as an officer shareholder creditor or otherwise if heshe and any persons connected with himher do not to hisher knowledge 
hold an interest as that term is used in part 6 of the financial services and markets act 2000 representing one per cent or more of either any class of the equity 
share capital of such body corporate or of any other body corporate through which hisher interest is derived or of the voting rights available to shareholders of 
the relevant body corporate any such interest being deemed to be a material interest in all circumstances
v a contract arrangement transaction or proposal for the benefit of employees of the company or of any of its subsidiary undertakings which does not award him
her any privilege or benefit not generally accorded to the employees to whom the arrangement relates and 
vi a contract arrangement transaction or proposal concerning any insurance which the company is empowered to purchase or maintain for or for the benefit of 
any directors of the company or for persons who include directors of the company
indemnification
subject to the acts but without prejudice to any indemnity to which heshe may otherwise be entitled every person who is or was a director of the company or of 
an associated company is entitled to be indemnified out of the assets of the company against all costs charges losses and liabilities together “liabilities” incurred by 
himher from time to time whether in connection with any negligence default breach of duty or breach of trust by himher or otherwise in relation to the affairs of 
the company provided that such indemnity shall not apply in respect of any liability by himher
i to the company or to any associated company or
ii to pay a fine imposed in criminal proceedings or
iii to pay a sum payable to a regulatory authority by way of a penalty in respect of noncompliance with any requirement of a regulatory nature howsoever arising 
or
iv in defending any criminal proceedings in which heshe is convicted or
v in defending any civil proceedings brought by the company or an associated company in which judgement is given against himher or
vi in connection with any application under any of the following provisions in which the court refuses to grant himher relief namely
a section 1443 or 4 acquisition of shares by innocent nominee of the 1985 act or
b section 727 general power to grant relief in case of honest and reasonable conduct of the 1985 act
this provision has been in force through the articles since 27 january 2006
shareholder information
continued
optos plc annual report  accounts 2007 35  remuneration and expenses
unless otherwise determined by the company by ordinary resolution a director other than an alternate director who does not hold executive office shall be paid 
for hisher services as a director fees at such rate as may from time to time be determined by the board the maximum aggregate level of fees shall be increased on 
each anniversary of the date of the adoption of the articles or if appropriate the date upon which the maximum was last fixed by ordinary resolution by the same 
percentage increase in the general index of retail prices for all items or such other comparable index as may be substituted for it from time to time before such 
anniversary in the 12 months immediately preceding such date any fee payable shall be deemed to accrue from day to day and shall be distinct from any salary 
remuneration or other amounts payable to a director pursuant to other provisions of the articles
any director who does not hold executive office and who serves on any committee or who devotes special attention to the business of the company or who 
otherwise performs any services on behalf of the company or its business which in the opinion of the board are outside the scope of the ordinary duties of a director 
may be paid such reasonable additional remuneration for such services whether by way of additional fees salary percentage of profits or otherwise as the board may 
from time to time determine
the salary or remuneration of any director appointed to hold any employment or executive office in accordance with the provisions of the articles shall be such as 
the board may from time to time determine and may be either a fixed sum of money or may be of any description including without limitation admission to 
or continuance of membership or any scheme including any share acquisition scheme or fund instituted or established or financed or contributed to by the 
company for the provision of pensions life assurance or other benefits for employees or their dependants or the payment of a pension or other benefits to himher 
or hisher dependants on or after retirement or death apart from membership of any such scheme or fund
in addition to any remuneration to which the directors are entitled under the articles they shall be entitled to be repaid all reasonable travelling hotel and other 
expenses properly incurred by them in the performance of their duties as directors including any expenses incurred in attending meetings of the board or of any 
committees general meetings or separate meetings of the holders of any class of shares or debentures of the company or otherwise in connection with the discharge 
of their duties 
the board may provide pensions or other retirement or superannuation benefits death or disability benefits or other allowances or gratuities by insurance or 
otherwise for any person who is or has been at any time a director or employed by or in the service of the company or any subsidiary of the company or is allied to or 
associated with the company or any such subsidiary or any predecessor in business of the company or any such subsidiary these arrangements may be extended to 
any family member or any person who is or was dependent on such director
directors’ powers – general
subject to the provisions of the acts to the memorandum of association of the company the “memorandum” and the articles and to any powers given by special 
resolution of the company the business of the company shall be managed by the board which may exercise all the powers of the company whether relating to the 
management of the business or not
reserves
the board may before recommending any dividend whether preferential or otherwise set aside out of the profits of the company such sums as it thinks fit as a 
reserve or reserves which may at the discretion of the board be applicable for any purpose to which the profits of the company may be properly applied the board 
may also without placing the same to reserve carry forward any profits which it may think prudent not to distribute
general meetings
the board may convene a general meeting of the company whenever it thinks fit
if the board in its absolute discretion considers that it is impractical or undesirable for any reason to hold a general meeting on the date or at the time or place 
specified in the notice calling the general meeting it may postpone the meeting to another date time and place when a meeting is so postponed notice of the date 
time and place of the postponed meeting may be placed in at least one national newspaper in the united kingdom notice of the business to be transacted at such 
postponed meeting is not required
notice of the annual general meeting is sent to shareholders at least 20 working days before the meeting the company conducts the vote at the annual general 
meeting by manual count
directors’ right to attend and speak
a director is entitled even though heshe is not a shareholder to attend and speak at any general meeting and at any separate meeting of the holders of any class of 
shares or debentures of the company
chairman’s power to adjourn
the chairman may with the consent of a meeting at which a quorum is present and may if so directed by the meeting adjourn any meeting to another date 
time andor place for an indefinite period
shareholder information
continued
optos plc annual report  accounts 2007 36  exercise of voting rights
the board may exercise or cause to be exercised the voting rights conferred by shares in any other company held or owned by the company or any power of 
appointment to be exercised by the company in such manner and in all respects as it thinks fit including the exercise of the voting rights or power of appointment 
in favour of the appointment of any director as a director or other officer or employee of such company or in favour of the payment of remuneration to the directors 
officers or employees of such company
delegation of powers to executive directors
the board may from time to time delegate or entrust to and confer upon any director holding executive office including a managing director such of its powers 
authorities and discretions with power to subdelegate for such time on such terms and subject to such conditions as it thinks fit it may confer such powers either 
collaterally with or to the exclusion of and in substitution for all or any of the powers of the board in that respect and may from time to time revoke withdraw alter or 
vary all or any of such powers
delegation to committees
the board may delegate any of its powers authorities and discretions with power to subdelegate including powers or discretions relating to the remuneration of 
or benefits given to the directors for such time on such terms and subject to such conditions as it thinks fit to any committee consisting of one or more directors 
and if thought fit one or more other persons provided that a majority of the members of a committee may be directors or alternate directors and no resolution of 
a committee may be effective unless a majority of those present when it was passed are directors or alternate directors the board may confer such powers either 
collaterally with or to the exclusion of and in substitution for all or any of the powers of the board in that respect and may from time to time revoke withdraw or alter 
or vary all or any of such powers and discharge any such committee in whole or in part
appointment of attorney
the board may by power of attorney or otherwise appoint any person or persons to be the agent of the company and may delegate to any such person or persons 
any of its powers authorities and discretions not exceeding those vested in the board but with power to subdelegate in each case for such purposes and for 
such time on such terms including but not limited to remuneration and the protection and convenience of persons dealing with the agent and subject to such 
conditions as it thinks fit the board may confer such powers either collaterally with or to the exclusion of and in substitution for all or any of the powers of the board 
in that respect and may from time to time revoke withdraw alter or vary all or any of such powers
authentication of documents
any director or the secretary or any person appointed by the board for the purpose has power to authenticate
a any documents comprising or affecting the constitution of the company whether in physical form or electronic form including its memorandum and articles
b any resolutions passed by the company the holders of any class of shares in the capital of the company or the board or a committee whether in physical form 
or electronic form and
c any books records documents and accounts relating to the business of the company whether in physical form or electronic form including without limitation 
the accounts
and to certify copies of them or extracts from them as true copies or extracts and any such authentication or certification may be conclusive and binding on 
all concerned
if certified in this way a document purporting to be a copy of a resolution or the minutes or an extract from the minutes of a meeting of the company the holders of 
any class of shares in the capital of the company the board or a committee of the board whether in physical form or electronic form may be conclusive evidence in 
favour of all persons dealing with the company in reliance on it or them that the resolution was duly passed or that the minutes are or the extract from the minutes is 
a true and accurate record of proceedings at a duly constituted meeting
cheques bills and notes
the directors may draw make accept or endorse or authorise any other person or persons to draw make accept or endorse any cheques bills of exchange 
promissory notes or other negotiable instruments provided that every cheque bill of exchange promissory note or other negotiable instrument drawn made 
accepted or endorsed may be signed by such person or persons as the directors may appoint for the purpose
dividend reinvestment
the board may implement and maintain one or more share dividend or distribution reinvestment plans including or instead of offering scrip dividends any such 
plan may be suspended or terminated at any time by the board in its absolute discretion
capitalisation
the board may with the authority of an ordinary resolution of the company resolve to capitalise any amount
a standing to the credit of the company’s reserves including any share premium account capital redemption reserve or other undistributable reserve or
b standing to the credit of the profit and loss account which is not required for paying any preferential dividend whether or not such amount is available 
for distribution
shareholder information
continued
optos plc annual report  accounts 2007 37  power to petition for winding up
the board may present a petition to the court in the name and on behalf of the company for the company to be wound up
powers to issue shares
the board have unconditional authority to allot with or without conferring rights of renunciation grant options over offer or otherwise deal with or dispose of any 
unissued shares of the company whether forming part of the original or any increase capital or rights to subscribe for or convert any security into shares of the 
company to such persons including directors at such times and generally on such terms and conditions as the board may decide
power to pay dividends
subject to the provisions of the acts the company may by ordinary resolution declare dividends in accordance with the respective rights of the shareholders but no 
dividend shall exceed the amount recommended by the board subject to the provisions of the acts the board may pay interim dividends if it appears to the board 
that they are justified by the profits of the company available for distribution the board may also pay at intervals determined by it any dividend at a fixed rate if it 
appears to the board that the profits available for distribution justify the payment if the board acts in good faith it shall not incur any liability to the holders of shares 
conferring preferred rights for any loss they may suffer by the lawful payment of an interim dividend on any shares having deferred or nonpreferred rights 
no dividend or other moneys payable in respect of a share shall bear interest against the company unless otherwise provided by the rights attached to the share
the board may withhold payment from a person of any dividend or scrip dividend in respect of shares in the company if those shares represent at least one quarter 
of one per cent interest in the company’s shares or any class thereof and if in respect of those shares such person has been served with a direction notice after failure 
whether by such person or by another to provide the company with information concerning the interests in those shares required to be provided under the acts 
except as otherwise provided by the rights attached to any class of shares all dividends will be declared and paid according to the amounts paidup on the shares 
during any portion of the period in respect of which the dividend is paid but if any share is allotted or issued in terms providing that it shall rank for dividend as from 
a particular date that share shall rank for dividend accordingly
the board may if authorised by an ordinary resolution of the company offer any holder of shares the right to elect to receive shares by way of scrip dividend instead 
of cash in respect of the whole or some part to be determined by the board of any dividend any dividend which has remained unclaimed for 12 years from the date 
when it becomes due for payment shall if the board so resolves be forfeited and cease to remain owing by the company
borrowing powers
the board may exercise all the powers of the company to borrow money to mortgage or charge its undertaking property assets present and future and uncalled 
capital and to issue debentures and other securities and to give security whether outright or as collateral security for any debt liability or obligation of the company 
or of any third party
the board is required to restrict the borrowings of the company and exercise all voting and other rights or powers of control exercisable by the company in relation 
to its subsidiary undertakings so as to secure that the aggregate principal amount outstanding at any time in respect of all borrowings by the group exclusive of any 
intragroup borrowings and after deducting cash deposited will not without the previous authority of the company in general meeting exceed
i before the publication of the first audited consolidated accounts of the company after 15 february 2006 the sum of two times the adjusted total of capital and 
reserves and
ii thereafter an amount equal to three times the adjusted total of capital and reserves
alteration of articles
section 21 of the 2006 act provides that the articles of association of a company may be altered by special resolution and section 22 of the 2006 act provides that 
companies may entrench provisions of their articles of association either on formation or subsequently by unanimous agreement of the shareholders the result of 
which is that such entrenched articles may only be altered by the unanimous consent of its shareholders
shareholder information
continued
optos plc annual report  accounts 2007 38  in respect of the consolidated financial statements the directors are responsible for
• ensuring the maintenance of proper accounting records which disclose with reasonable accuracy the financial position of the group at any time and from which 
financial statements can be prepared to comply with the companies act 1985 and article 4 of the ias regulation
• preparing financial statements for each financial period which give a true and fair view in accordance with ifrs as adopted for use in the european union of the 
state of affairs of the group as at the end of the financial period and of the profit or loss for that period
• ensuring the operation of systems of internal control and for taking reasonable steps to safeguard the assets of the group and for preventing and detecting fraud 
and other irregularities
in respect of the company financial statements the directors are
• responsible for ensuring the maintenance of proper accounting records which disclose with reasonable accuracy the financial position of the company at any time 
and from which financial statements can be prepared to comply with the companies act 1985
• required by law to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the company as at the end of the 
financial period and of the profit or loss for that period
• responsible also for ensuring the operation of systems of internal control and for taking reasonable steps to safeguard the assets of the company and for preventing 
and detecting fraud and other irregularities
the directors have elected to prepare the parent financial statements in accordance with applicable united kingdom accounting standards united kingdom 
generally accepted accounting practice
the financial statements for the year ended 30 september 2007 are included in the annual report for 2007  which is published in hardcopy printed form and made 
available on the website the directors are responsible for the maintenance and integrity of the annual report on the website in accordance with uk legislation 
governing the preparation and dissemination of financial statements access to the website is available from outside the uk where comparable legislation may 
be different
under applicable law and regulations the directors are also responsible for preparing a directors’ report directors’ remuneration report and the corporate 
governance statement that comply with that law and those regulations
statement of directors’ responsibilities
optos plc annual report  accounts 2007 39  we have audited the group financial statements of optos plc for the year ended 30 september 2007 which comprises the consolidated income statement
 the consolidated balance sheet the consolidated statement of change in equity and the consolidated cash flow statement and the related notes 1 to 22 
these group financial statements have been prepared under the accounting policies set out therein
we have reported separately on the parent company financial statements of optos plc for the year ended 30 september 2007 and on the information in the directors’ 
remuneration report that is described as having been audited 
this report is made solely to the company’s members as a body in accordance with section 235 of the companies act 1985 our audit work has been undertaken 
so that we might state to the company’s members those matters we are required to state to them in an auditors’ report and for no other purpose to the fullest extent 
permitted by law we do not accept or assume responsibility to anyone other than the company and the company’s members as a body for our audit work for this 
report or for the opinions we have formed
respective responsibilities of directors and auditors
the directors’ responsibilities for preparing the annual report and the group financial statements in accordance with applicable united kingdom law and international 
financial reporting standards ifrss as adopted by the european union are set out in the statement of directors’ responsibilities
our responsibility is to audit the group financial statements in accordance with relevant legal and regulatory requirements and international standards on auditing 
uk and ireland
we report to you our opinion as to whether the group financial statements give a true and fair view and whether the group financial statements have been properly 
prepared in accordance with the companies act 1985 and 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 the information given in the directors’ report includes that specific information presented in the chairman’s 
statement the operational review and the financial review that is cross referred from the business review section of the directors’ report 
in addition we report to you if in our opinion we have not received all the information and explanations we require for our audit or if information specified by law 
regarding director’s 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 2003 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 other information contained in the annual report and consider whether it is consistent with the audited group financial statements the other information 
comprises only the group highlights a closer look at optos chief executive qa the chairman’s statement the operational review the financial review board of 
directors corporate social responsibility corporate governance the unaudited part of the directors’ remuneration report the directors’ report and shareholder’s 
information we consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the group 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 group financial statements it also includes an assessment of the significant 
estimates and judgments made by the directors in the preparation of the group financial statements and of whether the accounting policies are appropriate to the 
group’s circumstances consistently applied and adequately disclosed
we planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient 
evidence to give reasonable assurance that the group financial statements are free from material misstatement whether caused by fraud or other irregularity or error 
in forming our opinion we also evaluated the overall adequacy of the presentation of information in the group financial statements
opinion
in our opinion
• the group financial statements give a true and fair view in accordance with ifrss as adopted by the european union of the state of the group’s affairs as at 
30 september 2007 and of its loss for the year then ended 
• the group financial statements have been properly prepared in accordance with the companies act 1985 and article 4 of the ias regulation and
• the information given in the directors’ report is consistent with the group financial statements
ernst  young llp
registered auditor
glasgow
28 november 2007
independent auditors’ report
to the members of optos plc
optos plc annual report  accounts 2007 40  2007 2006
notes ’000 ’000
revenue 4 86831 67720
cost of sales  30297 23304
gross profit 56534 44416
selling and distribution costs 18716 13714
administrative expenses 4 27 969 24216
operating profit before sharebased payments 9849 6486
sharebased payments 20 3350 2163
operating profit after sharebased payments  6499 4323
finance revenue 5 1182 11 18
finance costs 5 6058 6541
profitloss from continuing operations before taxation  4 1623 1100
income tax chargecredit 7 1849 1 1907
net lossprofit for the year 
attributable to equity holders of the parent  226 10807
profitloss before taxation per ordinary share
basic 8 24c 19c
diluted 8 23c 19c
lossprofit after taxation per ordinary share  
basic 8 03c 185c
diluted 8 03c 176c
consolidated income statement 
for the year ended 30 september 2007
optos plc annual report  accounts 2007 41  consolidated balance sheet 
as at 30 september 2007
2007 2006
notes ’000 ’000
noncurrent assets
property plant and equipment 9 911 16 77 643
intangible assets 10 10616 7 844
deferred tax asset 7 10337 1 1907
total noncurrent assets 11 2069 97394
current assets
inventories 11 7348 3693
trade and other receivables 12 11 008 7362
cash and cash equivalents 13 21060 36152
total current assets 39416 47 207
total assets 151485 144601
current liabilities
trade and other payables 14 13581 10252
financial liabilities 15 40460 40940
provisions 17 173 1 14
government grants 18 94 –
income tax payable 7 147 –
total current liabilities 54455 51306
total assets less current liabilities 97 030 93295
noncurrent liabilities
financial liabilities 15 37 569 40220
provisions 17 910 1025
government grants 18 923 714
total noncurrent liabilities 39402 41959
net assets 57 628 51336
equity attributable to equity holders of the parent
issued capital 2453 2361
share premium 11 5682 111 375
retained earnings 59884 62271
other reserves 623 129
total equity 57 628 51336
approved by the board of directors on 28 november 2007 and signed on its behalf by
allan watson
director
optos plc annual report  accounts 2007 42  share share equity retained foreign
capital premium reserve earnings exchange total
’000 ’000 ’000 ’000 ’000 ’000
at 1 october 2005 1665 52472 2744 76441 29 19589
exchange differences on foreign operations  –––– 100 100
profit for the year – – – 10807 – 10807
total income and expenses for year – – – 10807 100 10707
1665 52472 2744 65634 129 8882
conversion of loan 217 10213 2744 1543 – 9229
issue of ordinary share capital 479 54295 – – – 54774
cost of issue of ordinary share capital  – 5605 – – – 5605
sharebased payments – – – 1820 – 1820
at 30 september 2006 2361 1 1 1375 – 62271 129 51336
exchange differences on foreign operations  –––– 494 494
loss for the year –  – –  226 –  226
total income and expenses for year – – – 226 494 720
issue of ordinary share capital 92 4307––– 4399
sharebased payments – – – 2613 –  2613
at 30 september 2007 2453 1 15682 – 59884 623 57 628
share premium
share premium comprises the difference between the net proceeds and nominal value on issue of the company’s equity share capital
foreign exchange reserve
this reserve includes all cumulative differences on the translation of the group’s net investment in foreign operations optos has elected to deem the cumulative 
differences on the retranslation into us dollars of the group’s net investment in foreign operations to be nil as at 1 october 2004 as a result in the event of the 
subsequent disposal of a foreign operation any gain or loss on disposal will include cumulative translation differences arising only on or after 1 october 2004
consolidated statement of changes in equity 
for the year ended 30 september 2007
optos plc annual report  accounts 2007 43  consolidated cash flow statement 
for the year ended 30 september 2007
2007 2006
note ’000 ’000
operating activities
lossprofit for the year 226 10807
adjustments to reconcile profit for the year to net cash inflow from operating activities  
income tax chargecredit 1849 1 1907
net finance costs 4876 5423
depreciation and amortisation 25633 21273
loss on disposal of property plant equipment and intangibles  151 1 756
sharebased payments 2613 1820
increase in trade and other receivables  3549 2475
government grants amortisation 47 –
increase in inventories 3613 985
increase in trade and other payables 2632 1651
decreaseincrease in provisions 56 296
cash flow from operating activities 31623 26659
tax on continuing operations 132 –
net cash flow from operating activities  31491 26659
cash flows used in investing activities  
interest received 1182 11 18
purchases of property plant and equipment ppe 39502 32015
expenditure on intangible assets 3148 2463
government grant receipt 350 –
net cash flows used in investing activities  411 18 33360
cash flows from financing activities  
proceeds from finance leases 43063 45240
payment of finance leases 46903 40163
proceeds from share issues 4399 49169
interest paid 6058 6287
net cash flows from financing activities  5499 47 959
net decreaseincrease in cash and cash equivalents 15126 41258
effect of exchange on cash and cash equivalents  34 416
cash and cash equivalents at beginning of period 36152 4690
cash and cash equivalents at end of period  13 21060 36152
optos plc annual report  accounts 2007 44  1 authorisation of financial statements  statements of compliance
the consolidated financial statements of optos plc for the year ended 30 september 2007 were approved and authorised for issue by the directors on 
28 november 2007 optos plc is a limited company incorporated in scotland and is listed on the london stock exchange
the consolidated financial statements of optos plc have been prepared in accordance with international financial reporting standards “ifrs” as adopted by the 
european union and applied in accordance with the provisions of the companies act 1985 
2 accounting policies
the principal accounting policies adopted in the preparation of these financial statements are set out below these policies have been consistently applied to the 
years presented unless otherwise stated to be consistent with current interpretation of ias 7  the starting point for the cash flow statement has been changed from 
operating profit to lossprofit for the year
a basis of preparation
the financial statements have been prepared in accordance with the accounting policies based on international financial reporting standards “ifrs” and ifric 
interpretations endorsed by the european union and with those parts of the companies act 1985 applicable to companies reporting under ifrs 
the consolidated financial statements are presented in us dollars and all values are rounded to the nearest thousand ’000 except when otherwise indicated
b basis of consolidation
the financial statements of the subsidiaries are prepared for the same reporting year as those of the parent company using consistent accounting policies 
all intercompany balances and transactions including unrealised profits arising from intragroup transactions have been eliminated in full 
c foreign currency translation
the consolidated financial statements are presented in us dollars which is the company’s functional and presentation currency each entity in the group determines 
its own functional currency and items included in the financial statements of each entity are measured using that functional currency transactions in foreign 
currencies are initially recorded in the functional currency rate ruling at the date of the transaction monetary assets and liabilities denominated in foreign currencies 
are retranslated at the functional currency rate of exchange ruling at the balance sheet date all differences are taken to profit or loss with the exception of differences 
on foreign currency borrowings that provide a hedge against a net investment in a foreign entity these are taken directly to equity until the disposal of the net 
investment at which time they are recognised in profit or loss tax charges and credits attributable to exchange differences on those borrowings are also dealt with 
in equity nonmonetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial 
transactions nonmonetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined
the functional currencies of the foreign operations optos canada inc and optos gmbh are the canadian dollar and the euro respectively as at the reporting date the 
assets and liabilities of these subsidiaries are translated into the presentation currency of optos plc the us dollar at the rate of exchange ruling at the balance sheet 
date and their income statements are translated at the weighted average exchange rates for the year the exchange differences arising on the translation are taken 
directly to a separate component of equity on disposal of a foreign entity the deferred cumulative amount recognised in equity relating to that particular foreign 
operation is recognised in the income statement the company’s share capital and share premium account are denominated in £ sterling and are translated at the 
historical rates of exchange
optos has elected to deem the cumulative differences on the retranslation into us dollars of the group’s net investment in foreign operations to be nil as at 
1 october 2004 as a result in the event of the subsequent disposal of a foreign operation any gain or loss on disposal will only include cumulative translation 
differences arising on or after 1 october 2004
d property plant and equipment
property plant and equipment is stated at cost excluding the costs of daytoday servicing less accumulated depreciation and accumulated impairment in value
depreciation is provided on all property plant and equipment at rates calculated to write off the cost less estimated residual values based on prices prevailing at the 
balance sheet date of each asset evenly over its expected useful life as follows
leasehold improvements 10 years
p200 equipment 5 years
other plant  equipment 3 to 10 years
p200 equipment refers to retinal examination equipment located at healthcare professional sites and being used on a payperexamination basis and significant 
component parts and major spares p200 equipment is depreciated upon activation at the relevant healthcare professional site
the carrying values of plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not 
be recoverable 
an item of property plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal any gain or loss 
arising on derecognition of the asset calculated as the difference between the net disposal proceeds and the carrying amount of the asset is included in the income 
statement in the year in which the asset is derecognised 
the assets’ residual values useful lives and methods are reviewed and adjusted if appropriate at each financial year end 
notes to the consolidated financial statements 
for the year ended 30 september 2007
optos plc annual report  accounts 2007 45  e leases
assets held under finance leases which transfer to the group substantially all the risks and benefits incidental to ownership of the leased item are capitalised at the 
inception of the lease at the fair value or if lower at the present value of the minimum lease payments or in respect of p200 equipment at the cost of manufacture 
lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance 
of the liability finance charges are charged directly against income
capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease term if there is no reasonable certainty that the group 
will obtain ownership by the end of the lease term
operating lease payments are recognised as an expense in the income statement on a straightline basis over the lease term
upon placement of p200 equipment at a healthcare professional site the group enters into a financing agreement with thirdparty providers of vendor finance 
involving the sale of p200 equipment with legal title being transferred back at the end of the period as the significant risks and rewards of ownership are retained by 
the group the proceeds received from the thirdparty providers of vendor finance are recorded as fixedrate obligations which are repayable by instalments and are 
secured over the related p200 assets 
f intangible assets
intangible assets are carried at cost less accumulated amortisation and accumulated impairment loss internally generated intangible assets excluding capitalised 
development costs are not capitalised and expenditure is charged against profits in the year in which the expenditure is incurred
research and development costs
research costs are expensed as incurred development expenditure incurred on an individual project is carried forward when its future recoverability can reasonably 
be regarded as assured following the initial recognition of the development expenditure the cost model is applied requiring the asset to be carried at cost less any 
accumulated amortisation and accumulated impairment losses any expenditure carried forward is amortised over the period of expected future revenues from the 
related project
the carrying value of development costs is reviewed for impairment annually when the asset is not yet in use or more frequently when an indication of impairment 
arises during the reporting year
computer software
computer software that is not integral to an item of property plant and equipment is recognised separately as an intangible asset amortisation is provided on a 
straightline basis so as to charge the cost of the software to the income statement over its expected useful life which is in the range three to five years
g impairment of assets
the group assesses at each reporting date whether there is an indication that an asset may be impaired if any such indication of impairment exists or when annual 
impairment testing for an asset is required the group makes an estimate of the asset’s recoverable amount an asset’s recoverable amount is the higher of an asset’s 
or cashgenerating unit’s fair value less costs to sell and its value in use and is determined for an individual asset unless the asset does not generate cash inflows that 
are largely independent of those from other assets or groups of assets where the carrying amount of an asset exceeds its recoverable amount the asset is considered 
impaired and is written down to its recoverable amount in assessing value in use the estimated future cash flows are discounted to their present value using a pretax 
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset impairment losses of continuing operations are 
recognised in the income statement in those expense categories consistent with the function of the impaired asset 
an assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have 
decreased if such indication exists the recoverable amount is estimated a previously recognised impairment loss is reversed only if there has been a change in 
the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised if that is the case the carrying amount of the asset 
is increased to its recoverable amount that increased amount cannot exceed the carrying amount that would have been determined net of depreciation had no 
impairment loss been recognised for the asset in prior years such reversal is recognised in profit or loss after such a reversal the depreciation charge is adjusted in 
future periods to allocate the asset’s revised carrying amount less any residual value on a systematic basis over its remaining useful life 
h inventories
inventories primarily comprise spares components related to p200 equipment inventories are valued at the lower of cost and net realisable value costs incurred in 
bringing each product to its present location and condition are accounted for as follows
• raw materials spares and consumables – purchase cost on a firstin firstout basis
• net realisable value is the estimated selling price in the ordinary course of business less estimated costs of completion and the estimated costs necessary to 
make the sale
i trade and other receivables
trade receivables which generally have 3090 days’ terms are recognised and carried at original invoice amount less an allowance for any uncollectable amounts 
provision is made when there is objective evidence that the group will not be able to collect the debts balances are written off when the probability of recovery is 
assessed as being remote
j cash and cash equivalents 
cash and shortterm deposits in the balance sheet comprise cash at banks and in hand and shortterm deposits with an original maturity of three months or less
for the purpose of the consolidated cash flow statement cash and cash equivalents consist of cash and cash equivalents as defined above net of outstanding 
bank overdrafts
notes to the consolidated financial statements 
continued
optos plc annual report  accounts 2007 46  k interestbearing loans and borrowings 
all loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs after initial recognition 
interestbearing loans and borrowings are subsequently measured at amortised cost using the effective interest method 
l income taxes
current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities 
the tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet date
deferred income tax is recognised for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial 
statements with the following exceptions
• where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and 
at the time of the transaction affects neither the accounting profit nor taxable profit or loss and
• in respect of taxable temporary differences associated with investments in subsidiaries where the timing of the reversal of the temporary differences can be 
controlled and it is probable that the temporary differences will not reverse in the foreseeable future
deferred income tax assets are recognised for all deductible temporary differences carryforward of unused tax credits and unused tax losses only to the extent 
that it is probable that taxable profit will be available against which the deductible temporary differences and the carryforward of unused tax credits and unused tax 
losses can be utilised
the carrying amount of deferred income tax assets will be reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient 
taxable profit will be available to allow all or part of the deferred income tax asset to be utilised unrecognised deferred income tax assets are reassessed at each 
balance sheet date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered
deferred income tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply to the year when the asset is realised or 
the liability is settled based on tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date
income tax relating to items recognised directly in equity is recognised in equity and not in the income statement otherwise income tax is recognised in the 
income statement 
deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred 
taxes are related to the same taxable entity and the same taxation authority
revenues expenses and assets are recognised net of the amount of sales tax except
• where the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority in which case the sales tax is recognised as part 
of the cost of acquisition of the asset or as part of the expense item as applicable and
• receivables and payables that are stated with the amount of sales tax included
the net amount of sales tax recoverable from or payable to the taxation authority is included as part of receivables or payables in the balance sheet
m sharebased payment transactions 
employees including senior executives of the group receive remuneration in the form of sharebased payment transactions whereby employees render services 
as consideration for equity instruments “equitysettled transactions”
the cost of equitysettled transactions with employees is measured by reference to the fair value at the date at which they are granted and is recognised as an 
expense over the vesting period which ends on the date on which the relevant employees become fully entitled to the award in valuing equitysettled transactions 
no account is taken of any performance conditions other than conditions linked to the price of the shares of the company “market conditions” if applicable
no expense is recognised for awards that do not ultimately vest except for awards where vesting is conditional upon a market condition which are treated as vesting 
irrespective of whether or not the market condition is satisfied provided that all other performance conditions are satisfied the cost of equitysettled transactions 
is recognised together with a corresponding increase in equity over the period in which the performance andor service conditions are fulfilled ending on the date 
on which the relevant employees become fully entitled to the award “the vesting date” the cumulative expense recognised for equitysettled transactions at each 
reporting date until the vesting date reflects the extent to which the vesting period has expired and the group’s best estimate of the number of equity instruments 
that will ultimately vest the income statement charge or credit for a period represents the movement in cumulative expense recognised as at the beginning and 
end of that period
where the terms of an equitysettled award are modified or a new award is designated as replacing a cancelled or settled award the cost based on the original 
award terms continues to be recognised over the original vesting period in addition an expense is recognised over the remainder of the new vesting period for 
the incremental fair value of any modification based on the difference between the fair value of the original award and the fair value of the modified award 
both as measured on the date of modification no reduction is recognised if this difference is negative
where an equitysettled award is cancelled it is treated as if it had vested on the date of cancellation and any cost not yet recognised in the income statement for 
the award is expensed immediately any compensation paid up to the fair value of the award at the cancellation or settlement date is deducted from equity with any 
excess over fair value being treated as an expense in the income statement 
the group has taken advantage of the transitional provisions of ifrs 2 in respect of equitysettled awards and has applied ifrs 2 only to equitysettled awards granted 
after 7 november 2002 that had not vested on 1 january 2005
notes to the consolidated financial statements 
continued
optos plc annual report  accounts 2007 47  n revenue recognition
revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured revenue is 
measured at the fair value of the consideration received excluding discounts rebates vat and other sales tax or duties the following specific recognition criteria must 
also be met before revenue is recognised
sale of goods
revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer usually on dispatch
rendering of services
revenue from the provision of retinal examinations to the healthcare sector is recognised once the service has been provided such examinations are undertaken by 
healthcare professionals who generally enter into “payperpatient” agreements
revenue is recognised on a payperexamination basis usually with a minimum monthly usage level being agreed with the local healthcare professional
interest income
revenue is recognised as interest accrues on cash deposits
o borrowing costs
borrowing costs are recognised as an expense when incurred
p government grants
government grants are recognised where there is reasonable assurance that the grant will be received and all attaching conditions will be complied with 
when the grant relates to an expense item it is recognised as income over the period necessary to match the grant on a systematic basis to the costs that it is intended 
to compensate where the grant relates to an asset the fair value is credited to a deferred income account and is released to the income statement over the expected 
useful life of the relevant assets
q postemployment benefits
postemployment benefits comprise pension benefits provided to employees throughout the world
the group operates a number of defined contribution pension schemes the assets of the schemes are invested and managed independently of the finances of the 
relevant company the contributions payable are recognised in the income statement in the period in which they become payable 
r financial instruments
compound financial instruments
optos had in issue secured loan notes 2006 and unsecured loan notes 2007  both of which were convertible at the holder’s option into ordinary shares of 1p each 
under ias 32 from 1 october 2005 convertible bonds were split into a liability and a conversion option on issue the fair value of the liability component was 
determined using a market rate for an equivalent nonconvertible bond and recognised in noncurrent liabilities as part of borrowings on an amortised cost basis 
until extinguished on conversion or redemption the remainder of the proceeds is allocated to the conversion option if the conversion option meets the definition 
of an equity instrument no subsequent changes in the value are recognised in the financial statements however where settlement is in a currency other than the 
functional currency of optos the remainder of the proceeds are recognised as a financial liability with the change in value of the conversion option in subsequent 
accounting periods being recognised in the income statement at the date of issue the compound financial instruments were denominated in the functional currency 
of optos and accordingly the remainder of the proceeds were treated as an equity instrument
at 1 october 2005 the carrying value of the secured loan stock 2006 and unsecured loan stock 2007 was reduced by 1439000 of which 2744000 reflected the 
removal of the original value of the conversion options which was taken to equity and the balance of 1305000 represented the imputed interest calculated on an 
amortised costs basis from date of issue to 1 october 2005 which was taken to retained earnings the impact on 2006 up to the point of conversion was to increase 
finance costs by 253000 for imputed interest and decrease administrative expenses by 162000 related to foreign exchange movements 
share warrants
optos had in issue a number of share warrants entitling the holders to subscribe for ordinary shares of 1p each at set prices under certain conditions
under ifrs a nonderivative contract involving the delivery of a fixed number of own equity instruments in exchange for a fixed amount of cash is classified as an 
equity instrument any consideration received such as a premium on issues is added directly to equity subsequent changes in the fair value of the instrument are not 
recognised in the financial statements however where settlement is in a currency other than the functional currency of optos the net proceeds are recognised as a 
financial liability with the change in value of the conversion option in subsequent accounting periods being recognised in the income statement at the date of issue 
the warrants were denominated in the functional currency of optos and accordingly were treated as an equity instrument
notes to the consolidated financial statements 
continued
optos plc annual report  accounts 2007 48  s derecognition of financial assets  liabilities 
financial assets 
a financial asset or where applicable a part of a financial asset or part of a group of similar financial assets is derecognised where the rights to receive cash flows from 
the asset have expired the company retains the right to receive cash flows from the asset but has assumed an obligation to pay them in full without material delay to 
a third party under a ‘passthrough’ arrangement 
financial liabilities 
a financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires 
t significant judgements made
in the process of applying the group’s accounting policies management has made the following judgements apart from those involving estimations which have the 
most significant effect on the amounts recognised in the financial statements
p200 financing arrangements
upon placement of p200 equipment at the healthcare professional site the group enters into a threeyear financing arrangement with thirdparty providers of vendor 
finance involving the sale of the p200 equipment with legal title being transferred back at the end of the arrangement period the thirdparty providers of vendor 
finance enter into a threeyear lease agreement with the healthcare professional as the significant risks and rewards of ownership are retained by the group the 
proceeds received from the thirdparty providers of vendor finance are recorded as fixedrate obligations which are repayable by instalments and are secured over the 
related p200 assets
u key sources of estimation uncertainty
the key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date that have a significant risk of causing a material 
adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below
useful lives of p200 equipment
the group depreciates p200 equipment over its estimated useful life the p200 equipment is still relatively new to market and management annually assesses the 
appropriateness of the current estimate of useful life
sharebased payments 
the assumptions underlying the calculation of sharebased payments are important and based on independent advice changes in these assumptions could have a 
material impact on the measurement of the group’s sharebased payment charge
development costs
the group amortises its capitalised development costs over the anticipated number of units expected to be manufactured in the first five years of operations 
management assesses the appropriateness of the period taking into account latest market expectations
v new standards and interpretations
the iasb and ifric have issued the following standards and interpretations with an effective date for periods after the date of these financial statements
effective date for
international accounting standards ifrsias periods commencing
ifrs 7 financial instruments disclosures 01012007
ifrs 8 operating segments 01012009
ias 1 amendments to ias 1 – presentation of financial statements capital disclosures  01012007
ias 1 amendments to ias 1 – presentation of financial statements  01012009
ias 23 amendments to ias 23 – borrowing costs  01012009
ifric 10 interim financial reporting and impairment  011 12006
ifric 1 1 ifrs 2 group and treasury share transactions  01032007
ifric 12 service concession arrangements 01012008
ifric 13 customer loyalty programmes  01072008
ifric 14 ias 19 – the limit on a defined benefit asset minimum funding requirements and their interaction 01012008
   
 not yet adopted for use in the european union  
the above standards and interpretations will be adopted in accordance with their effective dates the directors do not anticipate that the adoption of these standards 
and interpretations will have a material impact on the group’s financial statements in the period of initial application upon adoption of ifrs 7  the group will have to 
disclose additional information about its financial instruments their significance and the nature and extent of risks that they give rise to more specifically the group 
will need to disclose the fair value of its financial instruments and its risk exposure in greater detail there will be no effect on reported income or net assets
notes to the consolidated financial statements 
continued
optos plc annual report  accounts 2007 49  3 segmental analysis
the primary segment reporting format is determined to be geographic segments as the group’s risks and rates of return are affected predominantly by differences in 
the geographic locations of the markets served the group’s principal area of activity is the design development manufacture and marketing of retinal examination 
equipment p200s at healthcare professional sites these sites are fully supported by the group’s employees revenue is primarily generated on a payperexamination 
basis usually with a minimum monthly usage level being agreed for the year ended 30 september 2007  “payperpatient” agreements accounted for approximately 
90 of sales 2006 96 additional revenue is generated from the sale of retinal examination equipment in which case revenue is recognised when the significant 
risks and rewards of ownership of the goods have passed to the buyer based upon this split of revenues the directors have determined that a geographical analysis 
of operations is most appropriate and accordingly the group only has one class of business
the operating businesses are organised and managed separately according to the geographic location of the operations with each segment representing a strategic 
business unit that offers the same products to different markets the group’s geographical segments are based on the location of the group’s customers sales to 
external customers disclosed in geographical segments are based on the geographical location of the group’s customers
transfer prices between segments are set at cost segment revenue segment expense and segment result include transfers between geographical segments 
those transfers are eliminated on consolidation
an analysis by geographical market is given below for the year ended 30 september 2007
north america europe eliminations total
2007 2007 2007 2007
’000 ’000 ’000 ’000
    
revenue
sales to external customers 82151 4680 – 86831
intersegment sales –  27956 27956 –
segment revenue 82151 32636 27 956 86831
result
segment result before sharebased payments  13072 3223 – 9849
sharebased payments 1891 1459 – 3350
operating profit after sharebased payments  1 1181 4682 – 6499
net interest 4876
profit from continuing operations before taxation  1623
taxation 1849
net loss for the year 226
assets and liabilities
segment assets 98976 85800 64688 120088
unallocated assets 31397
total assets 98976 85800 64688 151485
segment liabilities 59868 19803 64688 14983
unallocated liabilities 78874
total liabilities 59868 19803 64688 93857
other segment information
capital expenditure
property plant and equipment 33376 6559 39935
intangible assets 40 3108 3148
depreciation 23247 2239 25486
amortisation 53 309 362
loss on disposal 1464 33 1497
unallocated net liabilities comprise net debt and taxation
notes to the consolidated financial statements 
continued
optos plc annual report  accounts 2007 50  an analysis by geographical market is given below for the year ended 30 september 2006
north america europe eliminations total
2006 2006 2006 2006
’000 ’000 ’000 ’000
    
revenue
sales to external customers 64733 2987 – 67 720
intersegment sales –23959 23959 –
segment revenue 64733 26946 23959 67 720
result
segment result before sharebased payments  9783 3297 – 6486
sharebased payments 480 1683 – 2163
operating profit after sharebased payments  9303 4980 – 4323
net interest 5423
loss from continuing operations before taxation 1100
taxation 11 907
net profit for the year 10807
assets and liabilities
segment assets 77 571 50706 31735 96542
unallocated assets 48059
total assets 77 571 50706 31735 144601
segment liabilities 36227 7 613 31735 12105
unallocated liabilities 81160
total liabilities 36227 7 613 31735 93265
other segment information
capital expenditure
property plant and equipment 27 300 5398 32698
intangible assets –2463 2463
depreciation 18295 2624 20919
amortisation 45 309 354
loss on disposal 756 – 756
unallocated net liabilities comprise cash finance leases and taxation
4 revenue and expenses
   
2007 2006
’000 ’000
   
revenue
sales of goods 8190 3059
rendering of services 78641 64661
revenue 86831 67720
finance revenue 1182 11 18
total revenue 88013 68838
no revenue was derived from exchanges of goods or services
administrative expenses for the purposes of ias 188 comprise administrative expenses and sharebased payments
notes to the consolidated financial statements 
continued
optos plc annual report  accounts 2007 51  2007 2006
’000 ’000
  
expenses
the profitloss from continuing operations before taxation is stated after chargingcrediting  
depreciation charge for the period 25271 20919
research and development expenditure 1  888 51
amortisation of software note 10 290 354
cost of inventories recognised as an expense  2320 781
operating leases 672 601
foreign exchange differences 11 19 1 17
  
1 includes 72000 in respect of amortised intangible assets in addition 2899000 2006 2169000 was incurred in respect of research and development 
which has not been charged in arriving at the pretax loss for the period as it has been capitalised as an intangible asset further information is included in 
note 10 to the group accounts
services provided by the group’s auditor and network firms
during the year the group including its overseas subsidiaries obtained the following services from the group’s auditor at costs as detailed below
2007 2006
’000 ’000
   
fees payable to the company’s auditor for the audit of the company’s annual accounts including estimated expenses  130 128
fees payable to the company’s auditor and its associates for other services including estimated expenses  
other services pursuant to legislation  58 46
tax services 181 384
corporate finance services –670
all other services 135 –
504 1228
5 financing
2007 2006
’000 ’000
  
finance costs
bank overdraft –316
convertible loans –254
lease finance  6058 5971
6058 6541
finance income
bank interest receivable 1182 11 18
6 directors and employees
2007 2006
’000 ’000
  
staff costs for the group during the year  
wages and salaries 24975 19156
social security costs 2295 2055
defined contribution pension costs 313 259
sharebased payments 2613 1820
30196 23290
sharebased schemes and outstanding options are set out in note 20
notes to the consolidated financial statements 
continued
optos plc annual report  accounts 2007 52  the average monthly number of persons employed during the year was as follows
2007 2006
no no 
   
executive directors 34
field sales and support 128 108
manufacturing 50 37
product development 23 15
central 46 38
marketing 14 12
264 214
the above tabulation excludes the nonexecutive directors
details of the fees emoluments pension contributions and gains on exercise of share options attributable to each director during the year are given in the section 
headed “directors’ remuneration”’ in the directors’ remuneration report on page 27 
7 taxation
2007 2006
analysis of tax charge in the year ’000 ’000
tax on profit on ordinary activities
corporation tax at 30 2006 30
current year ––
overseas taxes – prior year 132 –
overseas taxes – current year 147 –
current year tax chargecredit 279 –
deferred tax 1570 1 1907
total deferred tax chargecredit 1570 1 1907
total income tax chargecredit 1849 11907
2007 2006
’000 ’000
   
corporation tax reconciliation
group profitloss on ordinary activities before taxation  1623 1100
group profitloss on ordinary activities multiplied by the standard rate of corporation tax in the uk of 30 2006 30  487 330
effects of
disallowed expenses 273 263
unrecognised deferred tax assets 987 1102
prior year tax losses utilised against current year profits  – 834
prior year tax losses now recognised – 9131
effect of higher overseas tax rates 504 2977
adjustment in respect of prior periods  402 –
total tax chargecredit for the year 1849 1 1907
notes to the consolidated financial statements 
continued
optos plc annual report  accounts 2007 53  deferred income tax at 30 september 2007 and 30 september 2006 recognised in the balance sheet related to the following
2007 2006
’000 ’000
   
deferred tax assets
accelerated capital allowances 1675 797
development costs 2825 2187
sharebased payments 942 979
other temporary differences 1048 252
losses 12847 13660
net deferred income tax asset 10337 1 1907
deferred income tax at 30 september 2007 and 30 september 2006 recognised in the income statement related to the following
2007 2006
’000 ’000
   
deferred tax assets
tax losses 813 12450
accelerated capital allowances 878 661
other temporary differences 121 118
chargecredit 1570 1 1907
tax losses
deferred tax asset balances for gross unused tax losses of approximately 41000000 2006 37 000000 arising primarily in the uk have not been recognised on 
the grounds that there is insufficient evidence that these assets will be recoverable these assets will be recovered when future tax charges are sufficient to absorb 
these tax benefits the continued availability of the tax losses is subject to certain conditions being met and the level of losses not being challenged by the relevant 
tax authority
a deferred tax asset was recognised in 2006 in respect of historic us tax losses as there was sufficient evidence to conclude that these losses will be recoverable in 
the future
8 profitloss per ordinary share
basic earnings per share amounts are calculated by dividing the profitloss before taxation and the profitloss after taxation for the financial year by the weighted 
average number of ordinary shares outstanding during the period
diluted earnings per share amounts are calculated by dividing the profitloss before taxation and the profitloss after taxation for the financial year by the weighted 
average number of ordinary shares outstanding during the period adjusted for the effects of dilutive options in the case of a loss no impact for further dilution is 
reflected as this would not have the effect of increasing the loss per share and is therefore not dilutive
the profitloss per ordinary share is calculated as follows
2007 2006
  
weighted average number of ordinary shares in issue   67 515924 58426930
effect of dilution share options 1837 840 31 13912
adjusted weighted average number of ordinary shares for diluted earnings per share  69353764 61540842
profitloss before taxation ’000s 1623 1100
basic profitloss before taxation per share cents  24c 19c
diluted profitloss before taxation per share cents 23c 19c
lossprofit after taxation ’000s 226 10807
basic lossprofit after taxation per share cents  03c 185c
diluted lossprofit after taxation per share cents 03c 176c
notes to the consolidated financial statements 
continued
optos plc annual report  accounts 2007 54  9 property plant and equipment
leasehold p200 plant and 
improvements equipment equipment total
’000 ’000 ’000 ’000
     
cost
at 1 october 2006 1518 129126 5422 136066
additions 17 37 780 21 38 39935
disposals – 2433 810 3243
exchange adjustment – 933 8 941
at 30 september 2007 1535 165406 6758 173699
depreciation
at 1 october 2006 492 54532 3399 58423
charge for year 187 241 1 7 1182 25486
disposals –955 791 1746
exchange adjustment –418 2 420
at 30 september 2007 679 781 12 3792 82583
net book value at 30 september 2007  856 87294 2966 91116
cost
at 1 october 2005 736 99366 4337 104439
additions 815 30689 1194 32698
disposals 33 1286 109 1428
exchange adjustment – 357 – 357
at 30 september 2006 1518 129126 5422 136066
depreciation
at 1 october 2005 374 35123 2587 38084
charge for year 11 8 1 9893 908 2091 9
disposals – 576 96 672
exchange adjustment –92 – 92
at 30 september 2006 492 54532 3399 58423
net book value at 30 september 2006  1026 74594 2023 77643
     
p200 equipment refers to retinal examination equipment located at healthcare professional sites and being utilised on a payperexamination basis and significant 
parts and major spares p200 equipment is depreciated upon activation at the relevant healthcare professional site
the carrying value of plant and equipment and p200 equipment held under finance leases at 30 september 2007 was 57 953000 2006 61053000 leased assets 
are pledged as security for the related finance lease and hirepurchase liabilities
notes to the consolidated financial statements 
continued
optos plc annual report  accounts 2007 55  10 intangible assets
development software
costs costs total
’000 ’000 ’000
    
cost
at 1 october 2006 7289 1 972 926 1
additions 2899 249 3148
disposals – 62 62
at 30 september 2007 10188 2159 12347
accumulated amortisation
at 1 october 2006 –1417 1417
amortisation in year 72 290 362
disposals – 48 48
at 30 september 2007 72 1659 1731
net carrying amount
at 30 september 2007 101 16 500 10616
development software
costs costs total
’000 ’000 ’000
cost
at 1 october 2005 5120 1678 6798
additions 2169 294 2463
at 30 september 2006 7289 1 972 926 1
accumulated amortisation
at 1 october 2005 –1063 1063
amortisation in year –354 354
at 30 september 2006 –1417 1417
net carrying amount
at 30 september 2006 7289 555 7844
    
development costs are capitalised as intangible assets under ias 38 to the extent that the board considers that individual projects meet the recognition criteria 
under the relevant standard as at 30 september 2007  89m 2006 68m of these costs related to the development of new medical devices including the p200ma 
designed to be manufactured across a common technology platform costs related to the p200ma commenced amortisation in 2007 and will be amortised over the 
number of units expected to be manufactured in the first five years of operations the carrying value of development costs will be reviewed for impairment annually 
when the asset is not yet in use or more frequently when an indication of impairment arises during the reporting year
11 inventories
2007 2006
’000 ’000
  
raw materials spares and consumables  7348 3693
notes to the consolidated financial statements 
continued
optos plc annual report  accounts 2007 56  12 trade and other receivables
2007 2006
’000 ’000
  
trade debtors 6904 4219
valueadded tax recoverable 1150 131 1
prepayments 2954 1832
  
11 008 7362
  
trade receivables which generally have 3090 days’ terms are recognised and carried at original invoice amount less an allowance for uncollectable amounts 
provision is made when there is objective evidence that the group will not be able to collect the debts balances are written off when the probability of recovery is 
assessed as being remote the charge to income statement recognised in respect of the allowance for uncollectable debt was 1145000 2006 243000
13 cash and cash equivalents
2007 2006
’000 ’000
cash at bank and in hand 11 067 7752
shortterm deposits 9993 28400
21060 36152
cash at bank earns interest at floating rates based on daily bank deposit rates 
14 trade and other payables 
2007 2006
’000 ’000
trade payables 3799 3548
other taxes and social security costs 716 1032
other payables 685 420
accruals 8381 5252
13581 10252
optos’ policy for the year to 30 september 2007  for all suppliers was to fix terms of payment when agreeing the terms of the credit account to ensure that the supplier 
was aware of the terms and to abide by the agreed terms of payment trade payables are paid on the 20th of the month following the month of invoice equivalent to 
an average of 35 days
other payables are noninterest bearing and have an average term of between 30 and 60 days
15 financial liabilities 
2007 2006
’000 ’000
finance leases 
current 40460 40940
noncurrent 37 569 40220
78029 81160
2007 2006
’000 ’000
amounts payable
within one year 40647 45649
between one and two years 26874 26843
between two and five years 18450 16144
85971 88636
less finance charges allocated to future periods  7 942 7 476
78029 81160
notes to the consolidated financial statements 
continued
optos plc annual report  accounts 2007 57  finance lease commitments
upon placement of p200 equipment at a customer site the healthcare professional enters into a threeyear lease agreement with a thirdparty provider of vendor 
finance optos enters into a matching financing agreement with the thirdparty provider of vendor finance involving the transfer of p200 equipment to the finance 
provider with legal title being transferred back to optos at the end of the period as the significant risks and rewards of ownership are retained by optos the proceeds 
received from the thirdparty providers of vendor finance are recorded as finance lease obligations which are repayable by instalments and are secured over the 
related p200 assets 
the weighted average outstanding lease term is 206 months 2006 208 months the weighted average effective borrowing rate for 2007 was 76 2006 84 
all leases are on a fixed repayment term and no arrangements have been entered into for contingent rental payments
future minimum rentals receivable under noncancellable operating leases are as follows
2007 2006
’000 ’000
  
not later than one year 61499 52246
after one year but not more than five years  77 437 84506
after five years 1287 231 1
140223 139063
16 operating lease commitments – minimum lease payments
at 30 september 2007  the group had commitments under noncancellable operating leases as follows
2007 2006
land and buildings ’000 ’000
  
within one year 662 580
in the second to the fifth year 1751 1814
after the fifth year 1821 1953
4234 4347
the group has entered into five commercial leases on property in june 1999 august 1999 december 2005 may 2006 and june 2007 the lease entered into on 
12 august 1999 is for a period of 20 years the june 1999 lease for 10 years the december 2005 lease for 10 years the may 2006 lease for 5 years and the june 2007 
lease for 3 years there are no renewal options or escalation costs included within the contracts there are no restrictions placed upon the lessee by entering into 
these leases
management considered the operating leases on transition and concluded that none should be considered finance leases under ifrs
17 provisions
2007 2006
’000 ’000
  
at 1 october 1139 843
arising during the year 737 343
utilised 793 47
at 30 september 1083 1139
current 173 1 14
noncurrent 910 1025
1083 1139
social security contributions on share options
social security contributions on share options are considered to fall within the scope of ifrs 2 and are measured as though a cashsettled option under ifrs 2 
the provision is calculated based on the options outstanding at the balance sheet date that are expected to be exercised and relate to the expired portion of the 
vesting period and using the fair value of the options at the balance sheet date it is expected that the costs will be incurred during the exercise period to may 2017
notes to the consolidated financial statements 
continued
optos plc annual report  accounts 2007 58  18 government grants
2007 2006
’000 ’000
  
at 1 october 714 714
received during the year 350 –
released to the income statement 47 –
at 30 september 101 7 714
current 94 –
noncurrent 923 714
101 7 714
government grants received during the year relate to a regional selective assistance grant which will be amortised in accordance with the term of the agreement 
and those received in prior years relate to development costs capitalised as intangible assets
19 called up share capital
2007 2006
equity share capital no million no million
    
authorised share capital
ordinary shares of 2p each 90 90
the company has one class of ordinary share which carries no rights to fixed income
2007 2006
    
ordinary shares of 2p each 
at 1 october 2006 1p each 661 78338 92126193
issue of shares prior to consolidation 2006 1p each – 350000
exercise of employee share options prior to consolidation 2006 1p each  – 361660
consolidation of shares 2006 1p each  – 46418927
issued on ipo – 12000000
exercise of employee share options postipo  2518839 489631
conversion of loan stock – 6683984
exercise of other options and warrants  –568297
other share issues postconsolidation   –17 500
at 30 september ordinary shares of 2p each  68697 1 77 661 78338
    
    
share share share share
 capital  premium capital premium
2007 2007 2006 2006
consideration received on issue of shares ’000 ’000 ’000 ’000
issued on ipo –– 415 51744
cost of issue of ordinary share capital  – – – 5605
exercise of employee share options 92 4307 20 765
conversion of loan stocks – – 217 10213
exercise of other options and warrants  – – 35 1554
other share issues – – 9 232
consideration received 92 4307 696 58903
following the annual general meeting of the group held on 27 january 2006 the members voted to consolidate each ordinary share of £001 in the group on 
a 21 basis consolidating two ordinary shares of £001 each into one ordinary share of £002
notes to the consolidated financial statements 
continued
optos plc annual report  accounts 2007 59  20 sharebased payments
the company has operated discretionary share option arrangements both pre and post its admission to the main market of the london stock exchange in 
february 2006 “ipo”
option movements during year
the expense recognised from equitysettled sharebased payment transactions for employee services received during the year to 30 september 2007 is 2613000 
september 2006 1820000 with an additional 737 000 2006 343000 in respect of national insurance
preipo discretionary options were granted pursuant to four different types of option agreement most terms of those options agreements are identical 
however the terms on which options vest differ between the types of agreement the four types of vesting are as follows
• timebased vesting over the three years commencing on the date on which the option was granted onethird of the options vest on grant and the remaining 
twothirds vest over the following 36 months on a monthly basis
• timebased vesting over three years as described above but with full acceleration of vesting on the admission of the company’s shares to trading on certain stock 
exchanges including the london stock exchange
• timebased vesting by reference to the flotation of the company under this form of option agreement onethird of the shares under option vest on the admission 
of the company’s shares to trading on certain stock exchanges including the london stock exchange the remaining twothirds then vest in two tranches – on the 
date six months after admission and on the date 12 months after admission
• vesting as to onethird immediately with the remaining twothirds vesting subject to satisfaction of performance targets such targets are based on the company 
achieving two successive quarters of positive operating profit and two successive quarters of positive earnings over the period from grant to 31 march 2006 and 
31 march 2007 respectively these performance periods were accelerated by 12 months due to the ipo and the conditions have been achieved 
in addition to the above two further vesting arrangements have been utilised in respect of two separate grants the first grant is subject to timebased vesting with 
onethird of the option vesting on each of the first second and third anniversaries of the date of grant the second grant is subject to performancebased vesting 
with the option vesting over four quarters dependent on the north american business attaining certain performance levels relating to net installs revenue per site 
of existing customers and control of expenditure these conditions have been achieved
all preipo option agreements contain provisions for the full acceleration of the option on a change in the control of the company option holders who cease to 
be employees of the group are entitled to exercise their vested options in full for a period of either one month or six months following cessation of employment 
depending on the reasons for that cessation other than for mr ian h stevens who has two years from the date of cessation to exercise his options all agreements 
contain provisions enabling the adjustment of the number of shares subject to option and the exercise price in the event of capitalisation issue subdivision or 
consolidation of ordinary shares all options are to be settled by way of equity with a maximum term of 10 years
in addition the company operated a share save scheme under which options were granted in 2002 and mature in 2007
postipo three new share plans were proposed to and accepted by shareholders at the annual general meeting on 31 january 2007 details of these plans are follows
the optos performance share plan 2007 a performance share plan supervised by the remuneration committee which grants awards of conditional shares a nil 
or nominal cost option with a short exercise period or as forfeitable shares awards will normally vest on the third anniversary of grant other than in exceptional 
circumstances to the extent that applicable performance conditions have been met all awards are subject to performance conditions set by the committee and 
measured over a single threeyear period awards made in the financial year ended 30 september 2007 will vest based on achieving diluted earnings per share targets 
for the financial year ended 30 september 2009 awards are required to be exercised within six months of vesting all awards normally lapse upon leaving employment 
however under certain circumstances such as death disability illness or the sale or transfer of a participants employing company then the award will normally vest 
subject to satisfaction of performance conditions and a prorata for time between the grant and a threeyear period as determined by the remuneration committee 
in the event of a takeover scheme of arrangement or winding up of the company all awards will vest early to the extent that the performance conditions have 
or would have in the opinion of the remuneration committee been satisfied awards will then be subject to prorata for time between the grant and threeyear 
period as determined by the remuneration committee unless it decides it is inappropriate to do so in the circumstances
the optos share option plan 2007 an option plan supervised by the remuneration committee structured to comprise elements approved by hm revenue and 
customs so as to provide uk tax qualified options as well as elements not so approved the plan also provides us employees with incentive stock options so as to 
achieve tax efficiencies in the us grant awards are made at an exercise price which is not less than the market value of the company’s ordinary shares on or around 
the time of grant awards will normally vest on the third anniversary of grant other than in exceptional circumstances to the extent that applicable performance 
conditions have been met all awards in excess of £10000 are subject to performance conditions set by the committee and measured over a single threeyear period 
awards made in the financial year ended 30 september 2007 will vest based on achieving diluted earnings per share targets for the financial year ended 30 september 
2009 awards are required to be exercised within 10 years of grant all awards normally lapse upon leaving employment however under certain circumstances such as 
death disability illness or the sale or transfer of a participants employing company then the award will normally vest subject to satisfaction of performance conditions 
where appropriate and a prorata for time between the grant and a threeyear period as determined by the remuneration committee in the event of a takeover 
scheme of arrangement or winding up of the company all awards will vest early to the extent that the performance conditions where appropriate have or would have 
in the opinion of the remuneration committee been satisfied awards will then be subject to prorata for time between the grant and threeyear period 
as determined by the remuneration committee unless it decides it is inappropriate to do so in the circumstances
notes to the consolidated financial statements 
continued
optos plc annual report  accounts 2007 60  the thomas w butts’ share award an individual award granted to mr butts over 135 million ordinary shares with an exercise price equal to the nominal value of the 
company’s ordinary shares the exercise of the award is dependent on meeting certain performance targets the option vests in three tranches following the end of 
the calendar years 2007  2008 and 2009 the vesting portion of each tranche is subject to the company achieving significant year on year increases to key performance 
indicators namely increases in revenue operating profit and net cash inflows vested and exercisable portions of the options have to be exercised within the calendar 
year in which they become exercisable or will expire normally mr butts will only be able to exercise the award whilst he is employed by the company if he ceases 
employment with the group as a result of certain specified reasons including death disability termination of mr butts’ employment by the company without cause 
or mr butts resigning in certain circumstances such as where his salary or bonuses are reduced other than where there is an acrosstheboard reduction applicable 
to all of the company’s senior executives mr butts is relocated a significant distance away from the company’s current us headquarters or if there is a material 
adverse change to mr butts’ position or a material diminution of his duties and responsibilities the award will be exercisable to the extent vested for a period of three 
months extended to one year for death or disability following termination of employment to the extent the award is not exercised by the expiry of that period or if 
mr butts leaves employment with the company for any other reason the award will lapse if mr butts leaves partway through a year for a specified reason then the 
remuneration committee may determine taking into account progress towards the targets and prorated to reflect time served that a further part of the award shall 
vest to the extent the award has not lapsed or been exercised the award will lapse 10 years after its grant the award may be exercised to the extent vested in the 
event of a change of control of the company the remuneration committee may decide that the whole or such further part of the award as they determine shall 
vest in these circumstances
as discussed in the directors’ remuneration report this award is a replacement award to acquire 2200000 ordinary shares at 200p each which was made with the 
same vesting conditions the total fair value of both awards at the replacement date was considered to be the same
the following table illustrates the number and weighted average exercise prices “waep” of and movements in share options during the year ended 30 september 2007 
2007 2007 2006 2006
no waep no waep
     
outstanding at the beginning of the year 1  5246806 £093 5530818 £092
granted during the year 1801671 £043 544250 £106
forfeited during the year 72560 £108 157 801 £116
exercised during the year 2518839 £087 670461 £085
outstanding at the end of the year 1  4457 078 £079 5246806 £093
exercisable at the end of the year 2309763 £102 4073493 £094
1 included within this balance are options over 533600 2p 2006 2440900 shares that have not been recognised in accordance with ifrs 2 as the options were 
granted on or before 7 november 2002 these options have not been subsequently modified and therefore do not need to be accounted for in accordance with 
ifrs 2 the weighted average share price during the year was £217 2006 £216
share options outstanding at the end of the period have the following exercise prices
price 2007 2006
expiry dates per share no no
options issued pre flotation
march 2007 £041 – 200000
april 2007 – october 2007 £100 12413 163018
november 2007 £042 – 100000
september 2008 – june 2009 £100 – 97 500
september 2009 – october 2010 £130 144600 196700
september 2010 – february 201 1 £145 105000 108700
october 201 1 £080 171750 777625
january 2012 – may 2012 £100 – 66759
june 2012 – november 2012 £100 113000 315250
january 2013 – december 2013 £100 399250 526127
february 2014 – december 2014 £100 215288 329056
january 2015 – december 2015 £100 1450106 231 7 071
january 2016 £100 15500 16500
june 2016 £207 32500 32500
thomas w butts share award
december 2008 – december 201 1 £002 1350000 –
performance share plan 2007
november 201 1 £002 151663 –
share option plan 2007
may 2017 £248 296008 –
outstanding at the end of the year 4457 078 5246806
notes to the consolidated financial statements 
continued
optos plc annual report  accounts 2007 61  the fair value of equitysettled share options granted is estimated as at the date of grant using the blackscholes formula taking into account the terms and conditions 
upon which the options were granted the following table lists the inputs to the model used for the years ended 30 september 2007 and 30 september 2006
2007 2007
thomas thomas 2007 2007
butts butts performance share
original replacement share option
award award plan plan 2006
dividend yield  nil nil nil nil nil
expected volatility  600 350 375 400 70
historical volatility  600 350 375 400 70
riskfree interest rate  469 529 557 543 480
expected life of option years 7335 5
weighted average share price £200 £221 £250 £250 £106
weighted average fair value of options granted  £128 £219 £248 £109 £124
exercise price £200 £002 £002 £248 £100
the expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur the expected volatility reflects the 
assumption that the historical volatility is indicative of future trends which may also not necessarily be the actual outcome as the company has only a limited history 
of quoted share price volatility the expected volatility has been based on the historical volatility of comparative companies no other features of options granted were 
incorporated into the measurement of fair value
other options and warrants falling outside the scope of ifrs 2 comprise
• a warrant instrument dated 17 december 1999 which entitled tbcc funding trust ii to subscribe for up to 1 14476 ordinary shares at a price of £130 per share in the 
event of a sale of the company or its admission to a recognised stock exchange prior to 22 december 2006 this warrant was not exercised during 2006 and has 
since lapsed
• two option agreements dated 17 may 2002 under which brewin dolphin securities limited had options to subscribe for up to 10500 ordinary shares at a price 
of £080 per share in the event of a sale of the company or its admission to a recognised stock exchange prior to 17 may 2009 these options were exercised 
during 2006
• an option and warrant agreement dated 26 july 2002 under which amadeus ii ‘‘a’’ amadeus ii ‘‘b’’ amadeus ii ‘‘c’’ amadeus ii affiliates llp and amadeus ii ‘‘d’’ 
gmbh  co kg had the right to subscribe for 557 797 ordinary shares at a price of £100 per share upon the earlier of 31 december 2007 and either a sale of the 
company or its admission to a recognised stock exchange this option and warrant agreement was exercised during 2006
21 related party transactions
during the year to 30 september 2007  purchases totalling 17 210 2006 92472 at normal market prices were made by group companies from crombie anderson 
limited of which d c anderson is a director and controlling shareholder of which nil was outstanding at 30 september 2007 2006 nil no guarantees have been 
given or received no provisions have been made for doubtful debts in respect of the amounts owed by related parties
compensation of key management personnel
2007 2006
’000 ’000
      
shortterm employee benefits 3706 2471
postemployment benefits 107 100
sharebased payments 2548 1301
termination benefits 433 643
6794 4515
there were 12 2006 8 key management personnel in 2007
notes to the consolidated financial statements 
continued
optos plc annual report  accounts 2007 62  22 financial instruments
the group’s principal financial instruments comprise cash and finance leases
the main purpose of these financial instruments is to manage the group’s funding and liquidity requirements the group has other financial instruments such as 
trade receivables and trade payables which arise directly from its operations the principal financial risks to which the group is exposed are those relating to foreign 
currency credit liquidity and interest rate 
foreign currency risk
the group has invested in overseas operations and also buys and sells goods and services in currencies other than in the functional currency of its relevant operations 
as a result the group’s non us dollar revenues profits assets liabilities and cash flows can be affected by movements in exchange rates 
the group monitors its foreign currency exposure and when deemed necessary by the board seeks to minimise its transaction exposure by using forward foreign 
currency contracts to eliminate exposures on any committed significant transactions the board has determined that it was not necessary to use forward foreign 
currency contracts in 2007 it is group policy not to engage in any speculative transaction of any kind the group does not hedge currency exposure in its net 
investment on overseas operations
credit risk
the credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies the group’s 
credit risk is primarily attributable to its trade receivables
the group is exposed to risk over a large number of customers and there is no significant concentration of risk creditworthiness checks are undertaken before 
entering into contracts with new customers and credit limits are set as appropriate the amounts presented in the balance sheet are net of allowance for doubtful 
receivables an allowance for impairment is made where there is an identifiable loss event which based on previous experience is evidence of a reduction in the 
recoverability of cash flows
liquidity risk
the group aims to mitigate its liquidity risk by managing its cash resources and improving its credit rating to facilitate effective fundraising the group’s funding 
objective is to maintain continuity of funding and flexibility through the use of finance leases excess cash is placed on shortterm interestbearing deposit accounts
interest rate risk
all of the group’s borrowings are at fixed rates of interest excess cash is placed on shortterm interestbearing deposit accounts
based on current levels of net debt interest rate risk is not considered to be material 
fair values of financial assets and financial liabilities
set out below is a comparison by category of carrying amounts and fair values of all of the group’s financial instruments
carrying fair carrying fair
amount value amount value
2007 2007 2006 2006
’000 ’000 ’000 ’000
financial assets
cash 21060 21060 36152 36152
financial liabilities
obligations under finance leases 78029 77 845 81160 80079
the fair value of items has been calculated by discounting the expected future cash flows at prevailing interest rates the carrying amounts of all other financial 
instruments of the group ie shortterm trade receivables and payables that are not included in the above table are a reasonable approximation of fair value 
the carrying amount recorded in the balance sheet of each financial asset represents the group’s maximum exposure to credit risk
the weighted average effective interest rate on cash balances for 2007 was 41 2006 43 
notes to the consolidated financial statements 
continued
optos plc annual report  accounts 2007 63  interest rate risk profile of financial assets and liabilities
the following tables set out the carrying amount by maturity of the group’s financial instruments that are exposed to interest rate risk
year ended 30 september 2007      
within 1–2 2–3
1 year years years total
’000 ’000 ’000 ’000
      
fixed rate
obligations under finance leases 40647 26874 10508 78029
floating rate
cash 21060 – –  21060
year ended 30 september 2006      
within 1–2 2–3
1 year years years total
’000 ’000 ’000 ’000
fixed rate
obligations under finance leases 45649 26843 8668 81160
floating rate
cash 36152 – – 36152
interest on financial instruments classified as fixed rate is fixed until the maturity of the instrument interest on financial inst ruments classified as floating rate is repriced 
at intervals of less than one year the other financial instruments of the group that are not included in the above tables are noninterest bearing and are therefore not 
subject to interest rate risk
notes to the consolidated financial statements 
continued
optos plc annual report  accounts 2007 64  we have audited the parent company financial statements of optos plc for the year ended 30 september 2007 which comprise the company balance sheet and 
the related notes 1 to 19 these parent company 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
we have reported separately on the group financial statements of optos plc for the year ended 30 september 2007
this report is made solely to the company’s members as a body in accordance with section 235 of the companies act 1985 our audit work has been undertaken so 
that we might state to the company’s members those matters we are required to state to them in an auditors’ report and for no other purpose to the fullest extent 
permitted by law we do not accept or assume responsibility to anyone other than the company and the company’s members as a body for our audit work for this 
report or for the opinions we have formed
respective responsibilities of directors and auditors
the directors’ responsibilities for preparing the annual report the directors’ remuneration report and the parent company financial statements in accordance 
with applicable united kingdom law and accounting standards united kingdom generally accepted accounting practice are set out in the statement of directors’ 
responsibilities
our responsibility is to audit the parent company 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 parent company financial statements give a true and fair view and whether the parent company financial statements 
and the part of the directors’ remuneration report to be audited have been properly prepared in accordance with the companies act 1985 we also report to 
you whether in our opinion the information given in the parent company directors’ report is consistent with the financial statements the information given in the 
directors’ report includes that specific information presented in the operating and financial review that is cross referred from the business review section of the 
directors’ report 
in addition we report to you if in our opinion the company has not kept proper accounting records if we have not received all the information and explanations we 
require for our audit or if information specified by law regarding directors’ remuneration and other transactions is not disclosed
we read other information contained in the annual report and consider whether it is consistent with the audited group financial statements the other information 
comprises only the group highlights a closer look at optos chief executive qa the chairman’s statement the operational review the financial review board of 
directors corporate social responsibility corporate governance the unaudited part of the directors’ remuneration report the directors’ report and shareholder’s 
information we consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the group 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 parent company financial statements and the part of the directors’ 
remuneration report to be audited it also includes an assessment of the significant estimates and judgments made by the directors in the preparation of the parent 
company financial statements and of whether the accounting policies are appropriate to the company’s circumstances consistently applied and adequately disclosed
we planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient 
evidence to give reasonable assurance that the parent company financial statements and the part of the director’ 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 parent company financial statements and the part of the directors’ remuneration report to be audited
opinion
in our opinion
• the parent company financial statements give a true and fair view in accordance with united kingdom generally accepted accounting practice of the state of the 
company’s affairs as at 30 september 2007
• the parent company financial statements and the other information contained in the annual report to be audited have been properly prepared in accordance with 
the companies act 1985 and
• the information given in the directors’ report is consistent with the parent company financial statements
ernst  young llp
registered auditor
glasgow
28 november 2007
independent auditors’ report
to the members of optos plc
optos plc annual report  accounts 2007 65  company balance sheet 
as at 30 september 2007
2007 2006
notes ’000 ’000
     
noncurrent assets
tangible fixed assets 3 5564 4365
investments in subsidiaries 4 3748 1422
total noncurrent assets 9312 5787
current assets
stock 5 76 1 3 3446
debtors 6 57810 39864
cash at bank and in hand 7 14238 32283
total current assets 79661 75593
creditors falling due within one year 8 12449 9235
provisions 10 142 72
government grants 12 47 –
total current liabilities 12638 9307
total assets less current liabilities 76335 72073
creditors falling due after more than one year  9 38 160
provisions 10 824 771
government grants 12 256 –
total noncurrent liabilities 11 18 931
total assets less liabilities 75217 71142
capital and reserves
called up share capital 14 2453 2361
share premium account 15 11 5682 111 375
profit and loss account 15 42918 42594
shareholders’ funds 75217 71142
approved by the board of directors on 28 november 2007 and signed on its behalf by
allan watson
director
optos plc annual report  accounts 2007 66  1 accounting policies
basis of preparation
the company financial statements have been prepared in accordance with uk gaap and applicable accounting standards
no profit and loss account is presented for optos plc as permitted by section 230 of the companies act 1985
depreciation
depreciation is provided on all tangible fixed assets at rates calculated to write off the cost less estimated residual value of each asset evenly over its expected useful 
life as follows
leasehold improvements 10 years
plant and equipment  3–5 years
p200 equipment  5 years
p200 equipment refers to retinal examination devices located at healthcare practitioner sites and being utilised on a payperexamination basis 
government grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant 
assets by equal annual instalments grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate
leasing and hirepurchase commitments
assets held under finance leases and hirepurchase contracts are capitalised in the balance sheet and are depreciated over the lease term or useful life as appropriate 
the interest element of the rental obligations is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance 
of capital repayments outstanding rentals paid under operating leases are charged to income as they occur over the term of the lease
stock
stock primarily comprises spares components relating to p200 equipment stocks are valued at the lower of cost and net realisable value costs incurred in bringing 
each product to its present location and condition are accounted for as follows
• raw materials spares and consumables – purchase cost on a firstin firstout basis
• net realisable value is the estimated selling price in the ordinary course of business less estimated costs of completion and the estimated costs necessary to make 
the sale
foreign currencies
the company’s functional and reporting currency is the us dollar
transactions in foreign currencies are initially recorded in the functional currency rate ruling at the date of the transaction monetary assets and liabilities 
denominated in foreign currencies are retranslated at the functional currency rate of exchange ruling at the balance sheet date all differences are taken to profit 
or loss nonmonetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial 
transactions nonmonetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined
the company’s share capital and share premium account are denominated in £ sterling and are translated at the historical rates of exchange
deferred taxation
deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have 
occurred at that date that will result in an obligation to pay more or a right to pay less or to receive more tax with the following exceptions
• provision is made for deferred tax that would arise on remittance of the retained earnings of overseas subsidiaries only to the extent that at the balance sheet date 
dividends have been accrued as receivable
• deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which 
the future reversal of the underlying timing differences can be deducted
deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse based on tax rates and 
laws enacted or substantially enacted at the balance sheet date
pension schemes
the company operates a defined contribution pension scheme the assets of the scheme are invested and managed independently of the finances of the company 
the contributions payable to the scheme in respect of the accounting period are charged directly to the profit and loss account
research and development
research and development expenditure is written off as incurred
notes to the company financial statements 
for the year ended 30 september 2007
optos plc annual report  accounts 2007 67  sharebased payments 
employees including senior executives of the company receive remuneration in the form of sharebased payment transactions whereby employees render services 
as consideration for equity instruments “equitysettled transactions”
the cost of equitysettled transactions with employees is measured by reference to the fair value at the date at which they are granted and is recognised as an 
expense over the vesting period which ends on the date on which the relevant employees become fully entitled to the award in valuing equitysettled transactions 
no account is taken of any performance conditions other than conditions linked to the price of the shares of the company “market conditions” if applicable
no expense is recognised for awards that do not ultimately vest except for awards where vesting is conditional upon a market condition which are treated as vesting 
irrespective of whether or not the market condition is satisfied provided that all other performance conditions are satisfied
the cost of equitysettled transactions is recognised together with a corresponding increase in equity over the period in which the performance andor service 
conditions are fulfilled ending on the date on which the relevant employees become fully entitled to the award “the vesting date” the cumulative expense 
recognised for equitysettled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the group’s 
best estimate of the number of equity instruments that will ultimately vest the income statement charge or credit for a period represents the movement in 
cumulative expense recognised as at the beginning and end of that period
where the terms of an equitysettled award are modified or a new award is designated as replacing a cancelled or settled award the cost based on the original 
award terms continues to be recognised over the original vesting period in addition an expense is recognised over the remainder of the new vesting period for 
the incremental fair value of any modification based on the difference between the fair value of the original award and the fair value of the modified award 
both as measured on the date of modification no reduction is recognised if this difference is negative
where an equitysettled award is cancelled it is treated as if it had vested on the date of cancellation and any cost not yet recognised in the income statement 
for the award is expensed immediately any compensation paid up to the fair value of the award at the cancellation or settlement date is deducted from equity 
with any excess over fair value being treated as an expense in the income statement 
the company has taken advantage of the transitional provisions of frs 20 in respect of equitysettled awards and has applied frs 20 only to equitysettled awards 
granted after 7 november 2002 that had not vested on 1 january 2005
investments
investments in subsidiaries are held at historical cost less any applicable provision for impairment
trade and other debtors
trade debtors which generally have 30–90 days’ terms are recognised and carried at original invoice amount less an allowance for any uncollectable amounts 
provision is made when there is objective evidence that the company will not be able to collect the debts balances are written off when the probability of recovery is 
assessed as being remote
cash and cash equivalents 
cash and shortterm deposits in the balance sheet comprise cash at banks and in hand and shortterm deposits with an original maturity of three months or less
interestbearing loans and borrowings 
all loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs after initial recognition 
interestbearing loans and borrowings are subsequently measured at amortised cost using the effective interest method 
derecognition of financial assets  liabilities 
financial assets 
a financial asset or where applicable a part of a financial asset or part of a group of similar financial assets is derecognised where the rights to receive cash flows from 
the asset have expired the company retains the right to receive cash flows from the asset but has assumed an obligation to pay them in full without material delay to 
a third party under a ‘passthrough’ arrangement 
financial liabilities 
a financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires
2  loss attributable to the company
directors 
details of director remuneration pension benefits and share options are included in the directors’ remuneration report on pages 27 and 28 
auditors’ remuneration
the total fees payable by the company to ernst  young llp for work performed in respect of the audit of the company was 35000 2006 30000
notes to the company financial statements 
continued
optos plc annual report  accounts 2007 68  3 tangible fixed assets
leasehold plant and p200
improvements equipment equipment total
’000 ’000 ’000 ’000
cost
at beginning of year 11 79 5522 4845 1 1546
additions – 1843 1774 3617
disposals – 450 1332 1782
at end of year 11 79 6915 5287 13381
depreciation
at beginning of year 360 3798 3023 7 181
provided during year 118 968 645 1731
disposals – 434 661 1095
at end of year 478 4332 3007 7 817
net book value
at beginning of year 819 1724 1822 4365
at end of year 701 2583 2280 5564
included in the net book values above are the following amounts relating to assets acquired under finance lease or hirepurchase contracts
p200 total
equipment equipment
’000 ’000
     
at beginning of year 227 227
at end of year 88 88
the depreciation charged for the year on these assets was 41000 2006 72000
4 investments 
subsidiary undertakings
2007 2006
cost ’000 ’000
    
at beginning of year 30 2
additions 2326 28
at end of year 2356 30
longterm loan 1392 1392
3748 1422
details of the investments in which the group and the company unless indicated holds 20 or more of the nominal value of any class of share capital are as follows
name of company country of registration proportion
optos inc usa 100
optos canada inc canada 100
optos gmbh germany 100
notes to the company financial statements 
continued
optos plc annual report  accounts 2007 69  5 stock
2007 2006
’000 ’000
   
raw materials spares and consumables   7613 3446
   
6 debtors
2007 2006
’000 ’000
   
amounts owed by group undertakings  55435 38008
trade debtors 1034 375
value added tax recoverable 1150 131 1
prepayments 191 170
57810 39864
7 cash at bank and in hand
2007 2006
’000 ’000
   
cash at bank and in hand 9338 4283
shortterm deposits 4900 28000
14238 32283
8 creditors amounts falling within one year 
2007 2006
’000 ’000
   
obligations under finance leases and hirepurchase contracts see note 1 1  134 191
trade creditors 2310 2281
other taxes and social security costs 460 198
other creditors 185 297
accruals 2799 3048
amounts due to group undertakings   6561 3220
12449 9235
9 creditors amounts falling due after more than one year
2007 2006
’000 ’000
   
obligations under finance leases and hirepurchase contracts see note 1 1  38 160
38 160
notes to the company financial statements 
continued
optos plc annual report  accounts 2007 70  10 provisions 
2007 2006
’000 ’000
at 1 october 843 –
arising during the year 884 879
utilised 761 36
at 30 september 966 843
current 142 72
noncurrent 824 771
   
at 30 september 966 843
social security contributions on share options
social security contributions on share options are considered to fall within the scope of frs 20 and are measured as though a cashsettled option under frs 20 
the provision is calculated based on the vested proportion of options outstanding at the balance sheet date that are expected to be exercised and using the fair value 
of the options at the balance sheet date it is expected that the costs will be incurred during the exercise period to may 2017
1 1 obligations under finance leases and hirepurchase contracts
2007 2006
’000 ’000
amounts payable
 within one year 138 21 1
 between one and two years 36 129
 between two and five years –34
174 374
less finance charges allocated to future periods   2 23
172 351
 finance leases and hirepurchase contracts are shown as  
 current 134 191
 noncurrent  38 160
172 351
   
upon placement of p200 equipment at a customer site the healthcare professional enters into a threeyear lease agreement with a thirdparty provider of vendor 
finance optos enters into a matching financing agreement with the thirdparty provider of vendor finance involving the transfer of p200 equipment to the finance 
provider with legal title being transferred back to optos at the end of the period as the significant risks and rewards of ownership are retained by optos the proceeds 
received from the thirdparty providers of vendor finance are recorded as finance lease obligations which are repayable by instalments and are secured over the 
related p200 assets
12 government grants
2007 2006
’000 ’000
at 1 october ––
received during the year 350 –
released to the income statement 47 –
at 30 september 303 –
current 47 –
noncurrent 256 –
303 –
government grants received during the year relate to a regional selective assistance grant which will be amortised in accordance with the term of the agreement 
notes to the company financial statements 
continued
optos plc annual report  accounts 2007 71  13 other financial commitments
at 30 september 2007  the company had annual commitments under noncancellable operating leases as set out below
land and buildings
2007 2006
’000 ’000
operating leases which expire
in less than one year 330 293
in two to five years 1321 11 74
in over five years 1821 1952
3472 3419
14 share capital
2007 2006
authorised no million no million
    
equity shares
ordinary shares of 2p 90 90
2007 2006
allotted called up and fully paid ’000 ’000
equity shares
ordinary shares of 1p each 2453 2361
equitysettled sharebased payments
share options outstanding at the end of the year were 4457 078 2006 5246806 further details of equitysettled sharebased payments can be found in note 20 to 
the group financial statements
2007 2006
ordinary shares of 2p each 
at 1 october 2006 1p each 661 78338 92126193
issue of shares prior to consolidation 2006 1p each – 350000
exercise of employee share options prior to consolidation 2006 1p each  – 361660
consolidation of shares 2006 1p each  –46418927
issued on ipo – 12000000
exercise of employee share options post ipo  2518839 489631
conversion of loan stock – 6683984
exercise of other options and warrants post ipo  –568297
other share issues post consolidation  –17500
at 30 september ordinary shares of 2p each   68697 1 77 661 78338
share share share share
 capital premium capital premium
2007 2007 2006 2006
consideration received on issue of shares ’000 ’000 ’000 ’000
    
issued on ipo –– 415 51744
cost of issue of ordinary share capital  – – – 5605
exercise of employee share options 92 4307 20 765
conversion of loan stocks – – 217 10213
exercise of other options and warrants  – – 35 1554
other share issues – – 9 232
consideration received 92 4307 696 58903
notes to the company financial statements 
continued
optos plc annual report  accounts 2007 72  15 other equity
profit and share
loss premium equity
account account reserve
’000 ’000 ’000
    
at 1 october 2005 39650 52472 2744
conversion of loan 1543 10213 2744
issue of ordinary shares –54295 –
cost of issue of ordinary shares – 5605 –
sharebased payments 1393 – –
loss for the year 5880 – –
at 30 september 2006 42594 111 375 –
issue of ordinary shares –4307 –
cost of issue of ordinary shares –– –
sharebased payments 2613 – –
loss for the year 2937 – –
at 30 september 2007 42918 1 15682 –
under frs 20 the cost of employee share schemes including saye schemes is based on the fair value of the awards that must be assessed using an option pricing 
model and expensed on a straightline basis over the vesting period 
16 related party transactions
during the year to 30 september 2007  purchases totalling 17 210 2006 92472 at normal market prices were made by the company from crombie anderson 
limited of which d c anderson is a director and controlling shareholder of which nil was outstanding at 30 september 2007 2006 nil the amounts outstanding 
are unsecured and will be settled in cash no guarantees have been given or received no provisions have been made for doubtful debts in respect of the amounts 
owed by related parties
17 pension commitments
the company operates a defined contribution pension scheme the optos group personal pension scheme for its directors and senior employees the assets of the 
scheme are held separately from those of the company in an independently administered fund there were no outstanding contributions at the year end 2006 nil
18 financial risk management objectives and policies
a description of the group’s financial risk management objectives and policies is provided in note 22 to the group’s financial statements these financial risk 
management objectives and policies also apply to the company
19 deferred tax
deferred tax asset balances for gross unused losses of approximately 44000000 2006 39000000 have not been recognised on the grounds that there 
is insufficient evidence that these assets will be recoverable these assets will be recovered when future tax charges are sufficient to absorb these tax losses 
the continued availability of tax losses is subject to certain conditions being met and the level of losses not being challenged by the relevant tax authority
notes to the company financial statements 
continued
optos plc annual report  accounts 2007 73  glossary of t erms
510k
premarketing process under section 
510k of the us food drug and 
cosmetic act whereby manufacturers 
notify the fda of their intent to market 
a medical device
agerelated macular degeneration 
or amd
eye disease that progressively destroys 
the macula amd is the leading cause 
of severe vision loss in people over 50 
in the western world
angiographic
diagnostic test in which dye is injected 
and an image created to determine 
the blood flow in an area
binocular indirect ophthalmoscope 
or bio
an instrument designed to visualise 
the interior of the eye with the 
instrument at arm’s length from the 
subject’s eye and the observer viewing 
an inverted image through a convex 
lens located between patient and 
instrument
ce
conformité européene a product 
marking applying to products 
regulated by the european 
commission’s health safety and 
environmental protection legislation 
which indicates that a manufacturer 
has conformed with all the obligations 
required and is allowed to freely 
distribute the product
choroid
a collection of blood vessels in the 
rear of the eye which feed the retinal 
sensory layer with nutrients and 
oxygen
diabetes
a chronic health condition where the 
body is unable to produce insulin and 
break down glucose in the blood
diabetic retinopathy
a consequence of unmanaged blood 
sugar levels in a person with diabetes 
whereby the retinal blood vessels are 
damaged causing destruction of the 
retina itself
direct ophthalmoscope
ophthalmoscope that produces an 
upright or unreversed image of 
approximately 15 times magnification
ellipsoidal mirror
reflecting surface formed to the shape 
of a concave threedimensional ellipse 
that has the property of two focal 
points
fda
us federal food and drug 
administration
fluorescein angiography
procedure allowing the blood 
vessels at the back of the eye to be 
photographed as a fluorescent dye is 
injected into the patient’s bloodstream
fundus
the interior posterior surface of the 
eyeball which includes the retina and 
the macula
fundus camera
conventional device derived from 
practitioner photography that is used 
to photograph small areas of the 
fundus
glaucoma
disorder of the eye characterised by 
increased pressure within the eyeball 
resulting in damage to the optic nerve 
and retinal nerve fibres with resulting 
loss of vision
macula
highly sensitive part of the retina 
responsible for detailed central vision
ophthalmologist
medically qualified specialist in eye 
surgery and pathology
ophthalmoscope
instrument for examining the interior 
structure of the eye especially the 
retina
optician
professional in respect of which there 
are two variants dispensing optician 
– a provider of glasses and contact 
lenses ophthalmic optician – a person 
qualified to perform eye examinations 
and prescribe eye wear
optometrist
a primary level eye care provider 
who performs eye examinations and 
prescribes eye wear
panoramic200 
panoramic200 p200 scanning laser 
ophthalmoscope supplied by optos 
that delivers the optomap® retinal 
exam
pathology
manifestations of disease
posterior pole
rear hemisphere from the central 
vertical equator of the eye
primary care
point in the healthcare system that is 
responsible for the detection of health 
problems
retina
lightsensitive nerve tissue in the 
eye that converts light into electrical 
impulses for transmission to the brain 
via the retinal nerve fibre layer and the 
optic nerve
retinal detachment
separation of the retina from its 
attachments to the back of the eyeball
scanning laser ophthalmoscope
device that uses reflected laser light 
scanned into the eye to analyse 
the retina
secondary level care
that part of the healthcare system 
that diagnoses health problems and is 
often but not always concerned with 
defining treatment plans
single image capture
term used by optos to discriminate a 
single retinal image optomap® retinal 
exam from a sequence of retinal 
images used for instance in fluorescein 
angiography optomap® fa medical 
procedure
slit lamp biomicroscope
instrument that combines a 
microscope with special lights which 
allows a practitioner to view the front 
of the eye and the retina with the 
additional lens
slo
scanning laser ophthalmoscope
targeted ophthalmoscopy
use the optomap® retinal exam as 
a reliable confirmation of findings 
in support of other methods 
of examining the retina using 
conventional manual instrumentation 
virtual point scan
term used by the company to define 
the effect created by the patented 
system that gives rise to the ultra
wide field of view created by the 
panoramic200 device – it conveys 
the effect of being equivalent to 
positioning a scanning system inside 
the patient’s eye
vitreous humour
clear gellike substance that fills the 
eyeball behind the lens
optos plc annual report  accounts 2007 74  notes
optos plc annual report  accounts 2007 75  notes
optos plc annual report  accounts 2007 76  advisers
auditors
ernst  young llp
george house
50 george square
glasgow g2 1rr
wwweycom
tax advisers
pricewaterhousecoopers
erskine house
68–73 queen street
edinburgh eh2 4nh
wwwpwccom 
registrars
equiniti
orchard brae
edinburgh eh4 1pf
wwwequiniticom
bankers
bank of scotland
new uberior house
1 1 earl grey street
edinburgh eh3 9bn
wwwbankofscotlandcoukcorporate
solicitors
maclay murray  spens llp
151 st vincent street
glasgow g2 5nj
wwwmmscouk wwwoptoscom
united kingdom
optos plc
queensferry house
carnegie business campus
dunfermline fife
scotland ky1 1 8gr
united kingdom
44 0 1383 843 300
united states  canada
optos inc
199 forest street
marlborough ma 01752
united states
tollfree 
18008543039
outside of the us 
001 508 7871400
germany
optos gmbh 
gebäude 5137c
wernervonsiemensstr 26
d76646 bruchsal
49 0 7251 9294 120
revolutionising eye care


Summary:
 chief executive qa
answerstocommonquestionsabout
the performance future and strategy
of optos
1 growth
where will growth 
come from
3 products
how are your products 
differentiated
our p200ma device is a new 
imaging platform that produces 
the optomap® fa medical 
procedure it opens new global 
market segments for us within the 
medical care segment the doctor 
injects the patient with sodium 
fluorescein which rapidly works 
its way through the patient’s blood 
vessels and enables the doctor to 
dynamically and rapidly capture 
ultra widefield images of the 
fluoresced blood vessels of the 
patient’s retina in real time 
this device offers advanced image 
capture and review capabilities 
in disease diagnosis and treatment 
monitoring and is clinically 
very useful in the diagnosis and 
management of diabetic patients 
by enabling doctors to carry out 
highly targeted partial panretinal 
photocoagulation this will allow 
for new treatment paradigms 
and improved patient outcomes 
for diabetics the optomap® 
fa medical procedure provides 
practitioners with access to 
reimbursement
2 business model
how does your 
business model work
growth is always underpinned by a 
strong foundation so let me start by 
talking about the fundamentals of our 
business we are fast growing we have 
significant competitive advantage we 
have a strong recurring revenue model 
and we have proprietary technology 
fast growing is selfexplanatory 
our competitive advantage is because 
there is no other diagnostic device that 
can capture a digital ultra widefield 
image of approximately 82 of the 
retina at once with approximately 85 
of our revenue recurring each year we 
have good visibility and predictability 
and this provides for reliable growth 
and sustainable margin expansion
our technology is at the leading edge 
and enables healthcare practitioners 
to deliver a higher standard of care to 
their patients 
we have four strategic imperatives 
designed to drive growth we will 
deepen our penetration in our more 
established markets in the usa canada 
germany and the uk this will be done 
through new installations of our devices 
and working closely with our customers 
to increase the number of optomap® 
retinal exams being performed in each 
customer practice location we will 
look to gain share in our new markets 
spain france switzerland and norway 
we have broadened our product 
offering with the optomap® fa medical 
procedure and this will allow us to 
establish a presence in the secondary 
and medical care markets we will 
aggressively market this product to 
ophthalmologists in the usa germany 
switzerland spain and france finally 
we will maintain high levels of customer 
satisfaction to drive contract renewal 
rates which for the year stood at 89
we believe that our ongoing 
servicedriven relationship with 
healthcare practitioners is a key 
strength initially practitioners 
typically enter into initial minimum 
threeyear payperpatient agreements 
with the company
these agreements enable the 
practitioners to use our devices 
in their practices and offer the 
optomap® retinal exam to their 
patients optos receives revenue 
from the sale of the optomap® 
retinal exam by the practitioner to 
the patient subject to a minimum 
monthly payment over the life of 
the agreement and thus benefits 
from a recurring revenue model 
we provide ongoing clinical 
educational and marketing resources 
as well as ongoing technical 
assistance to support the practitioner 
in increasing the number of patients 
they see and to maximise adoption 
rates of the optomap® retinal exam 
as a result practices have no 
capital outlay and benefit from 
an increase in practice revenue 
we also sell a small number of our 
devices to certain specialist customers 
on a capital sales basis whose 
business practice specifies a capital 
purchase model recurring revenue 
is also generated from these customer 
locations through service and upgrade 
agreements devices installed 
on a capital sales basis represent 
approximately 3 of our total 
installed base 
our p200 device generates the 
optomap® retinal exam and is 
used in primary care and wellness 
screening it is a patient pay at 
point of service examination 
unlike conventional ways of looking 
at the retina the p200 device provides 
a highresolution ultra widefield 
digital image that encompasses 
approximately 82 of the retina in 
a single capture this enables the 
practitioner to view a substantial 
portion of the retina all at once and 
facilitate the early detection of disease 
from the centre to the periphery of 
the retina these diseases include 
agerelated macular degeneration 
diabetes hypertension retinal 
detachments and tears and certain 
cancers an image from the optomap® 
retinal exam image can be captured 
in a quarter of a second and does 
not require pupil dilation whereas 
conventional retinal imaging takes 
longer is more invasive typically 
captures about 5 of the retina 
at once and is altogether less 
patientfriendly critically the 
optomap® retinal exam image 
is digitally retained thus making 
comparisons with future examinations 
very straightforward in monitoring any 
changes to the patient’s health
optomap® plus medical retinal exam 
is also performed by the p200 and 
is used in secondary care using 
additional capabilities in the image 
capture and review process to facilitate 
diagnosis and documentation of 
previously detected pathology 
this exam provides access to medical 
reimbursement
optos plc annual report  accounts 2007 4 4 culture
is optos changing as it becomes 
a more mature company
our aim is to ensure that the 
optomap® retinal exam becomes 
the accepted standard of care 
in primary care in those patient 
examinations where pathology 
exhibits our optomap® plus medical 
retinal exam provides practitioners 
with additional capabilities in the 
image capture and review process 
this facilitates diagnosis and 
documentation this new product 
was rolled out to our customer base 
in north america in 2007 and usage 
is expected to increase substantially 
in the coming financial year we will 
launch the p200ma and the 
left melanomas circled can grow 
undetected within the retina if discovered 
early these masses can be treated before they 
cause serious damage and spread to other 
areas of the body through the bloodstream
5 outlook
what does the future 
hold for optos
optomap® fa medical procedure 
in early 2008 this is a very exciting 
new imaging platform that holds 
much promise particularly for 
diabetic patients and how doctors 
will be able to treat the disease in a 
much more targeted and efficient 
way this will result in significantly 
improved patient outcomes
we are very excited about the 
opportunities that lie ahead let’s first 
consider some data and some of the 
key business drivers 
in the united states our largest market 
the economic impact associated with 
adult vision problems is immense – 
514 billion in 2007  there are 70 million 
citizens aged 55 or over there are 
20 million diabetic patients and macular 
degeneration is the leading cause of 
blindness in adults over 55 currently 
diabetic retinopathy affects over 
5 million americans and in addition to 
the impact that the disease can have on 
quality of life diabetic retinopathy costs 
490 million annually in direct costs for 
outpatient inpatient and prescription 
drug services increased incidence of 
disease is directly associated with an 
aging population and driven by lifestyle 
choices with many downstream 
consequences general awareness 
of prevention is another driver 
which is resulting in a public health 
shift whereby patients are taking more 
interest in and greater control of their 
personal healthcare technological 
advancement aids earlier detection of 
pathology and provides new avenues 
for monitoring and managing disease 
what excites us is that our technology 
and the ultra widefield image of 
the retina that our devices capture 
respond directly and uniquely to these 
trends and to the need for earlier stage 
detection and diagnosis of both eye 
and noneye diseases we know that 
regular screening and preventative 
care plays a vital role in preventing loss 
of sight and detecting the onset of 
systemic disease 
yes change is inevitable as a company 
grows in size and expands into new 
geographic markets we are doing well 
at managing our growth but let me 
talk about the things we care about 
at optos things that will not change 
regardless of where we operate 
at all points in our development 
we keep reminding ourselves of 
the things that it takes to succeed 
integrity passion for innovation 
commitment to helping our 
customers deliver a higher standard 
of healthcare making optos a great 
place to work setting goals and 
objectives and accountability and 
delivery these are very important at 
optos and the heart of our culture 
comes from these things
traditionally we have been strong 
in some of these areas integrity 
our passion for innovation and our 
commitment to our customers have 
never been in shortage we have also 
been good at ensuring we provide 
a good working environment for 
our employees and in setting clear 
goals and objectives we work hard 
at being accountable in our delivery 
and are very focused on continuous 
improvement at every opportunity 
i remind people that we have to strive 
to improve on all of these fronts
optos plc annual report  accounts 2007 5