tangent communications plc
truscott house 
32–42 east road 
london n1 6ad 
wwwtangentukcom
tangent communications plc
annual report 2007
tangent communications plc annual report 2007
1coverindd   1 20062007   101857 our services
toolkit – local level marketing
toolkit is t angent’s proprietary marketing tool developed 
for marketeers seeking to empower local level branch 
managers while retaining central core brand values
the system runs completely online and is hosted 
developed and owned by tangent 
customers tend to be large organisations that recognise 
that throughout the uk their customers’ habits and buying 
preferences differ from town to town however the people 
who are best positioned to know which product to offer 
a local audience are often the local managers
toolkit allows the central marketing department to retain 
control around the brand and even the different messages 
the branch manager can choose from but ultimately it 
is the branch manager who chooses from the options 
available which promotion to run at a local level 
in the year ended february 2007 the volume of orders 
generated through toolkit increased by 65 against the 
same period in the prior year orders included point of 
sale direct mail merchandise and email 
customers include greene king next procter and gamble 
and wolseley
 01 highlights
 02 chairman’s statement
 04 chief executives’ review
 08 technology review
 10 ﬁnancial review
 12 directors and advisers
 14 directors’ report
 16 corporate governance statement
 18 remuneration report
 20  statement of directors’ responsibilities
 20 statement of disclosures to the auditors
 21 independent auditors’ report
 22 consolidated proﬁt and loss account
 22 consolidated statement of recognised 
  gains and losses
 23 consolidated balance sheet
 24 company balance sheet
 25 consolidated cash ﬂow statement
 26 notes to the ﬁnancial statements
 36 notice of annual general meeting
 37 form of proxy
tangent’s vision is to provide our clients with the 
marketing tools to engage more efficiently and effectively 
with their customers
corporate statement
taobase – web and technology solutions
t angent labs is a creator of database marketing technology 
websites and webbased business applications
taobase its core technology is hosted developed and 
owned by tangent 
services encompass specialists in design project 
management client handling database management 
and software development
the business operates under two divisions marketing 
programmes and project development the marketing 
programmes division conceives implements and measures 
marketing plans for clients whilst the project development 
team work to solve complex issues surrounding database 
applications and construct sophisticated web and email 
systems to meet specific client needs
taobase is designed to make marketing measurable and 
the marketing programmes team is able to use taobase’s 
analytics to provide detailed insight
every project is built on the evergrowing taobase core 
meaning that we are able to deliver with dramatically 
lower costs and shorter timelines than our competitors 
as taobase reduces the implementation workload for 
specific projects
clients include harper collins the labour party sap 
and ted baker
1coverindd   2 20062007   100941 01 tangent communications plc annual report 2007
our services
tangent marketing services – direct marketing
tangent harnesses together multiple digital platforms 
to offer a complete targeted marketing solution to its clients 
t angent aims to turn insight into more effective campaigns
our delivery involves a piece of customised and personalised 
marketing collateral ranging from an email a web 
page a sms message to a digitally printed mail piece
the creative element is optimised to take the customer 
data into consideration and varies in content and imagery 
on a person by person basis this ensures the campaign 
is aligned to customer behaviour and is more likely to 
result in higher conversion and response rates
each response can be measured independently providing 
insight for future communications for sainsbury’s 
the redemption rate increased from 17 to 54 for 
one campaign when data on previous buying habits 
was used to optimise the creative process
customers include creston sainsbury’s tbwa and 
virgin mobile
tangent marketing services – campaign
tangent has one of the largest suites of digital devices 
in the uk we have invested in equipment and knowhow 
in order to provide our clients with optimum quality 
and range of services 
our bespoke sales and account management team work 
with a range of clients to deliver marketing material 
all of which is produced digitally and exactly according 
to client requirements often in very short timeframes 
for the retail market space tangent provides point 
of sale digital production distribution and installation 
across the uk and republic of ireland for the financial 
services sector we are providing listing documentation 
proposal documents for global organisations on a 
24 hours a day service for the property sector we are 
providing development materials for presentation at 
design build and construction stages
customers include kpmg monsoon and canary wharf
financial highlights operational highlights
turnover up 30 to £861m 
2006 £661m
ebitda up 58 to £141m 
2006 £09m 
operating profit up 71 to £107m 
2006 £063m
operating margin up 29 points 
to 124
earnings per share up 16 to 095p 
2006 082p
net funds of £105m 2006 £08m
before goodwill amortisation and exceptional items
sales and integration of ravensworth 
ahead of budget and schedule
toolkit launches site for ftse 100 company
tangent labs launches new web 
creator tool
new client wins continue in current year
1tanar07frontindd   3 20062007   101024 02 tangent communications plc annual report 2007
chairman’s statement
tangent labs’ sales run rate increased 
100 post acquisition
ravensworth had the busiest month 
in the company’s history in april 2007 
the first full month of ownership
tangent’s financial performance in the year ended 28 february 2007 
showed strong growth in all the key performance indicators adjusted 
basic earnings per share before exceptional items increased by 16 to 
095p and net cash inflow from operations more than doubled to £118m 
we acquired c360 uk ltd now renamed tangent labs in july 2006 
which greatly enhanced our ability to provide customised marketing 
services across the internet mobile and print media since taking 
ownership tangent labs’ sales run rate has increased by over 100 
by developing and selling its proprietary technology to an increasing 
customer base including t angent clients the company now plays a central 
role in creating the group’s valueadd and in differentiating our 
client proposition
in march 2007 subsequent to the year end we acquired 
ravensworth digital services for £585m mainly funded by the issue 
of 466m shares placed at 13p ravensworth is a digital marketing 
business serving the property sector and has focused on installing its 
software and web based ordering system within estate agents and 
providing them with an overnight print and delivery service for their 
marketing materials in its financial year ended 31 december 2006 
turnover was £69m with adjusted operating profits of £11m based 
in newcastle in a modern purpose built facility the ravensworth 
management team is quickly demonstrating how its customers 
and the plant utilisation can benefit from tangent’s technology and 
marketing we are currently ahead of budget in achieving anticipated 
phase one cost savings 
the positive momentum has continued into the current 
financial year and each area of our business has started the 
year ahead of budget
1tanar07frontindd   4 20062007   101027 03 tangent communications plc annual report 2007
chairman’s statement
tangent marketing services continued to grow and in november 2006 
we announced the launch of the wolseley branch marketing toolkit 
site which immediately exceeded our usage expectations and continues 
to expand across a number of other individual brands which use the site 
prospects
the positive momentum has continued into the current financial year 
and each area of our business has started the year ahead of budget
as it is the executives and all our employees who deliver the revenues 
and profits that drive shareholder value i feel able to congratulate 
and thank them for a year of excellent achievements and for a lot 
more hard work below the surface working on potential opportunities 
finally following his appointment in march 2007 i would also like to 
welcome paul murray to the board paul brings significant corporate 
experience coupled with a great understanding of the marketing 
services and technology sectors
piers caldecote
nonexecutive chairman
16 may 2007 
menu builder
the menu builder project enables 
greene king pubs to build bespoke menus 
from a database of menu choices populated 
by cyberchef 
the data includes the menu title description 
cost price suggested retail price and the 
corresponding gross profit margin constructed 
within the tool is an online recipe card 
illustrating how products should be cooked 
and what equipment is needed during 
the process of building a menu the tool 
automatically generates hints which offer 
the publican choices which complement 
their proposed menu
menu builder also provides a detailed online 
analysis of the selected menu covering gross 
profit which aids the publican when forecasting 
profits from food sales
1tanar07frontindd   5 20062007   101035 04 tangent communications plc annual report 2007
the fastest growing team within tangent 
is our programming resource now with 
over 20 full time people
toolkit saw a 65 increase in order 
volume during the year
in the year ended 28 february 2007 tangent increased its 
performance in each of its internal key performance indicators 
turnover increased by 30 to £861m adjusted operating margin 
increased by 29 points to 124 adjusted operating profits 
increased by 71 to £107m and cash flow from operations for the 
year increased from  £054m to £118m 
technology
marketing departments are increasingly looking to technology to 
improve the effectiveness of their campaigns however they often 
do not have the tools to extract information from their databases 
this is where tangent’s services come in to play 
technology sits at the heart of our business strategy and last year we 
took a significant step in increasing our capabilities through the acquisition 
of c360 uk now tangent labs with its proprietary engine taobase 
furthermore we continued our investment into toolkit our proprietary 
web tool today through taobase and toolkit we can offer our clients 
a range of technologydriven services which include
• database management construction and integration
• website design and build
• build of local marketing applications
• targeted email marketing with optimising tracking capabilities
• sms and mms marketing services and
• display point of sale and direct mail communications
the group currently employs over 20 full time programmers 
focused on client requirements and increasing the scope of 
tangent’s digital services 
chief executives’ review
1tanar07frontindd   6 20062007   101042 05 tangent communications plc annual report 2007
market development
orders generated via toolkit tangent’s proprietary online ordering 
system increased by 65 year on year and by 225 over a three year 
period this is in part due to the increased functionality but primarily 
due to the increase in customer numbers and willingness to change the 
way in which marketing collateral is created and used the retail market 
is the primary target sector for tangent’s online marketing tool 
online marketing continues to grow at significant rates tangent is 
now firmly established as a company capable of building complex 
and innovative web solutions which culminated in april 2007 with 
tangent being selected via a competitive pitch to build the new 
website for the labour party tangent won against competition 
with larger more developed agencies within larger network groups 
tangent believes that its success derives from being a younger more 
innovative business well positioned to participate in technological 
developments in the market including the introduction of web 20 
the directors believe that this firmly sets the foundation for tangent 
to grow this side of our business
market researchers predict that marketing applications are one of 
the fastest growing customer relationship management crm 
areas in the it sector and t angent expects to benefit from the continued 
migration of marketing budgets from offline to online
financial control
margins have now improved each year since tangent was formed 
in july 2005 despite parts of the business operating in what is sometimes 
perceived as a competitive market place tangent’s valueadd and focus 
on technology services have allowed the group to increase its margin 
year on year 
cash conversion also remains at the heart of our business practice and 
this year operating cash more than doubled the group’s strong cash 
position allows it to retain a strong negotiating stance with suppliers 
clients and acquisition targets and cash generation will continue to 
remain a core focus going forward 
chief executives’ review new look
in january 2007 tangent launched a 
toolkit site for new look which provides 
over 700 stores with an online environment 
for recruitment
emma conway new look recruitment 
manager explains “toolkit is a fantastic 
resource that allows us to be more consistent 
and uptodate with our advertising and 
recruitment materials it is easy to use 
allowing us to send materials to stores 
at the click of a button – essential when 
working in the fast paced environment 
of new look”
in january 2007 tangent launched a 
1tanar07frontindd   7 20062007   101044 06 tangent communications plc annual report 2007
ravensworth
the acquisition of ravensworth was completed in march 2007 and 
brings a significant number of different opportunities to the group 
as a stand alone business ravensworth’s sales grew by 15 last year 
on a net margin of 16 over 365 new clients were won in the last 
six months of 2006 
ravensworth is the leading supplier of full colour marketing literature 
to the uk property sector the company operates from a purpose 
built 23000 sq ft digital production facility housing the latest 
in digital printing equipment from a client list of over 2500 estate 
agency branches ravensworth receives over 2000 orders per day 
producing over 7m full colour a4 pages a month
ravensworth’s experience and unique understanding of its core 
market have led to the continued growth in all areas of business 
with customer numbers increasing by 24 in the last twelve 
months it now accounts for approximately 20 of the uk market 
and is more than three times the size of its closest competitor 
having established a market leading position we are confident 
in its ability to continue expanding its core market together with 
offering further value added services to its current customer base
tangent’s expertise in direct mail represents a great opportunity 
when applied to the ravensworth client base within tangent’s 
existing business we have witnessed a great takeup from property 
clients looking to increase new customers via targeted direct mail 
this new approach will be sold by the ravensworth team to its client 
base which has not previously used ravensworth for this service 
it is also our intention to launch a web portal which will enable every 
estate agent in the uk to create personalise proof and order online 
a targeted direct mail campaign
it is probable that new government legislation will mean that a 
home information pack hip will have to be created and produced by 
the vendor with each property sold via the estate agent ravensworth 
took part in the trials for the creation of hips if the legislation is enacted 
we expect ravensworth to benefit having signed indicative agreements 
with most of the hip providers in the uk the directors have not 
included any contribution from this opportunity into the management 
budget however if legislation is enacted we believe the opportunity 
will be significant
chief executives’ review continued
ravensworth has over 2500 individual branches using its 
software to generate digital orders on a daily basis
ravensworth
from left to right kevin cameron 
suzie pattison and ian gordon
1tanar07frontindd   8 20062007   101048 07 tangent communications plc annual report 2007
outlook
the new financial year beginning march 2007 has begun with all group 
areas ahead of budget the integration of ravensworth and transfer 
of work from london to newcastle are currently ahead of schedule 
and the company is on track to realise annual savings of in excess 
of £100000 this leaves the company in a strong position to begin 
examining phase two of the work transfer process ravensworth 
experienced its strongest ever months in march and april 2007 
with new client revenue from the wins in 2006 coming through 
in the coming year we will integrate taobase with toolkit creating a 
unified technology platform within tangent which will provide clients 
with increased functionality within a central operating environment 
finally we would like to thank the team for working so hard to 
help us achieve our objectives it is their passion creativity and ability 
to deliver client exceeding results that continues to fuel tangent’s 
growth we look forward to building on tangent’s strong 
performance in the year ahead 
nicholas green timothy green
joint chief executive joint chief executive
16 may 2007
chief executives’ review continued labour party
tangent provides the labour party with 
a wide range of services all powered by 
taobase and toolkit the services range 
from labour’s national website to a system 
for reporting loans and donations from 
around 700 accounting units to head office 
we provide a secure intranet system which 
allows labour members to converse in a 
closed environment or publish their own 
blogs and websites to the general public 
this system integrates with labour’s 
membership database to allow members 
to manage their personal details online 
and to allow the party to deliver tailored 
communications to each member
tangent created personalised digitally 
printed postcards which were sent to 
voters ‘from’ their local candidates inviting 
the voters to give their views on local issues 
the candidates each had a login to taobase 
where they could directly follow up with the 
voters taobase automatically selected those 
voters who had not responded and sent 
them follow up materialsthis enabled the 
labour party at a national level to provide 
local campaigners with a customisable 
campaign which could be driven both 
locally and centrally at a much lower cost 
than traditional campaigns
1tanar07frontindd   9 20062007   101055 08 tangent communications plc annual report 2007
technology review
tangent labs
marketing departments continue to face the problem of data being 
in many places disconnected and unusable typically it departments 
are stretched with the needs of the finance and operations departments 
as well as fighting off viruses and making sure everyone’s pc works 
tangent labs’ mission is to provide smart technology to solve these 
problems more specifically to deliver quickly and at lower cost the 
solutions we provide are most valuable to clients when they solve 
‘impossible’ problems – when the it department or another supplier 
has told the client that something cannot be done or will take many 
months and large sums of money
tangent labs has been developing taobase since 2003 it provides 
a highly flexible database system which
•  connects with other databases easily
•  connects databases to websites
•  handles inbound and outbound email
•  provides inbound and outbound sms
•  generates personalised digital direct mail through tangent’s toolkit
•  generates complex websites including blogging ecommerce 
dynamic content and search optimisation
•  delivers podcasts news feeds and email bulletins
•  integrates with microsoft outlook microsoft word and adobe
•  provides realtime reporting and analytics and
•  is highly customisable with bespoke modules eg web spiders 
microformats communications planning etc
all this allows tangent labs to provide technology meeting the widest 
range of needs of a marketing or communications department quicker 
than other providers and usually at lower cost this enables us to focus 
effort on actually achieving the client objectives to help deliver 
breakthrough results
from left to right james eddison greg jackson and nick gillet
customers of tangent labs include sap  
the labour party and ted baker
the solutions we provide are most 
valuable to clients when they solve 
‘impossible’ problems
tangent labs develops webdelivered applications and 
supplies personalised websites email and mobile content 
using its propriety taobase technology blending strategic 
marketing knowhow and technical innovation the labs 
team helps clients from coca cola to the labour party
1tanar07frontindd   10 20062007   101057 09 tangent communications plc annual report 2007
technology review
local level marketing and t oolkit – a perfect partnership
developed inhouse and wholly owned by tangent is our local level 
marketing platform toolkit last year we witnessed a 65 increase in 
order volume against the prior year tangent employs over 20 developers 
and designers who are responsible for the innovations within toolkit 
we have a dedicated customer service team that supports the 
thousands of users of our system 
tangent identified an opportunity to use the internet to create a 
tool which would empower marketeers to create proof and order 
marketing collateral which was tailored to a local audience today 
toolkit has expanded its role within marketing departments and 
outlined below are just a selection of the key services it provides 
to its users
•  a complete solution to provide all marketing products for point 
of sale direct mail local press advertising
•  fully integrated database services to profile select and filter data 
selections which improve the quality and accuracy of customer 
communications from multiple locations
•  merchandise pages for retail channel partners to communicate 
offers direct through to store level this allows the tangent 
customer to use toolkit as a market place for suppliers to push 
products directly to the retail outlet retail partners fund these 
propositions and have direct information on the display and 
distribution of items sold by the retail partner
•  platform integration to supply partners for real time pricing 
of offers with the added benefit of margin and profit analysis 
via suggested retail prices
•  a complete reporting and tracking interface allowing senior 
members of marketing departments to monitor and optimise 
branch marketing spend against sales performance and
•  additional site functionality for search blogging and internal 
communication point for best practice management between 
branch managers
toolkit has become the de facto intranet for some retailers allowing 
branch communication and branch marketing within one website
customers of toolkit include greene king peugeot citroën 
procter and gamble and wolseley
tangent identified an opportunity to use the internet 
to create a tool which empowers marketeers to create 
proof and order marketing collateral which is tailored 
to a local audience
1tanar07frontindd   11 20062007   101057 tangent communications plc annual report 2007
the tangent labs business acquired in july 2006 was 
integrated quickly and its profits have grown substantially 
since acquisition
overview
tangent achieved growth in turnover profits earnings per share and 
cash balances for the year ended 28 february 2007 the tangent labs 
business acquired in july 2006 was integrated quickly and its profits 
have grown substantially since acquisition 
trading performance
we run the tangent business with a focus on turnover adjusted 
operating profit adjusted earnings per share and operating cash 
generation adjustments to operating profits and earnings per share 
are to exclude amortisation of goodwill and exceptional items we 
believe that our focus on these key performance indicators kpis 
will deliver value for shareholders in the medium and long term
tangent performed well against each kpi
• turnover grew by 30 to £861m 2006 £661m
•  adjusted operating profit improved by 71 to £107m 
2006 £063m to give an adjusted operating profit margin 
of 124 2006 95
•  adjusted basic earnings per share increased by 16 to 095p 
2006 082p and
•  operating cash generation more than doubled to £118m 2006 £054m 
representing 110 2005 85 of adjusted operating profit
goodwill amortisation and exceptional items
goodwill amortisation increased by £02m to £039m the increase 
arose equally from the acquisition of tangent labs during the year 
and a full year of amortisation for the prior year acquisition
the operating exceptional item is a £039m charge for the fair value 
of share options in accordance with frs 20 there is no underlying 
cash flow or financial liability associated with the charge and it 
does not reduce shareholders’ funds
the costs associated with tangent’s proposal during the year to make 
an offer for st ives have been included within normal administrative 
expenses because the directors do not consider them to be sufficiently 
material to be classified as exceptional the proposal was withdrawn in 
november 2006
taxation
the taxation charge of £009m 2006 £002m represents 282 of 
profit before tax after adding back amortisation of goodwill and 
the share option charge both are excluded from taxable profits the 
taxation rate is 8 2006 36 the taxation charge is low because 
the group has the benefit of past tax losses the increased tax rate 
over the prior year is because profits from the businesses acquired 
during the last two years do not benefit from these tax losses 
so profits from these businesses are taxed without the same relief 
at the year end the group had £116m of tax losses available 
to offset against future profits
acquisitions
in july 2006 tangent acquired a marketing technology business 
c360 uk now named tangent labs for an initial cost of £264m 
including expenses the initial cost was funded by issuing 1667m 
new shares to the vendors and £064m from internally generated 
cash a further maximum amount of £2m could be due depending on 
profit performance and continuing employment of the vendors over 
the three years following the acquisition the directors have estimated 
that £1m of this will become due and have accrued this further amount
in the period since acquisition tangent labs contributed £026m 
to adjusted operating profit which is a 278 margin on sales of 
£093m the run rates for sales and operating profit are just over 
three times the levels reported in the last audited accounts prior 
to acquisition
financial review
adjusted operating profit and operating cash £000
2005 2006 2007
 operating profit
 operating cash
10
1200
1000
800
600
400
200
0
200
2007 operating profit
£107m
2007 operating cash
£112m
1tanar07frontindd   12 20062007   101101 tangent communications plc annual report 2007
cash flow and net funds
operating cash generation was strong and after insignificant interest 
and taxation cash flows there was a net inflow of £116m which was 
applied to £044m of net capital expenditure and £048 of net payments 
in respect of the acquisition net funds improved by £025m to £105m 
2006 £08m
balance sheet
the year end net assets were £984m compared with £673m for the 
prior year the main change arises from the £305m net increase in 
goodwill resulting from the acquisition of tangent labs
accounting standards
for the year under review tangent adopted frs 20 which deals with 
sharebased payments the fair value of share options granted is spread 
over the period from grant until the date it is anticipated the options 
will become exercisable the prior year comparative figures have been 
restated in accordance with the new standard the effect of frs 20 
was to increase administrative expenses for the prior year by £29000 
the group’s net assets and cash flow statement were unaffected 
for the year ending 28 february 2008 tangent will adopt 
international financial reporting standards ifrs in accordance with 
the aim guidelines the most significant change will be that goodwill 
will not be amortised under ifrs
treasury funding and exchange risk
the group finances its operations through shareholders’ funds 
finance lease borrowings and working capital management the 
funding structure comprises variable rate borrowings and cash 
balances to maintain a high level of financial flexibility for potential 
acquisitions and investments regular reports on cash balances and 
borrowings are provided to the board 
the majority of trade is conducted in sterling the directors monitor 
exposure to ensure that foreign currency risk is not material to the group
subsequent events
on 6 march 2007 tangent agreed a £1m overdraft facility at a rate 
of 125 over base rate secured by cross guarantees and debentures 
the overdraft remains undrawn but improves the financial flexibility 
of the group
on 27 march 2007 tangent acquired a digital marketing business 
ravensworth digital services for consideration of £585m plus costs 
completion accounts have not been finalised although we expect 
that the net assets acquired exceed £06m and net debt on acquisition 
was below £01m which is significantly lower than the £085m limit 
under the purchase agreement 
to fund the acquisition t angent issued 50m new shares mostly placed 
with institutional fund managers that invested in tangent for the first 
time we consider that the overall broadening of the shareholder 
base which has resulted in a 60 free float of t angent shares is 
beneficial for all shareholders
graeme harris
finance director
16 may 2007
financial review
turnover £m and operating profit margin 
2005 2006 2007
adjusted basic eps p
2005 2006 2007
11
10
8
6
4
2
0
14
12
10
8
6
4
2
0
2
10
08
06
04
02
0
02
 turnover
operating profit margin
2007 adjusted basic eps
095p
up 16 
2007 turnover
£86m 
2007 operating profit margin
124 
1tanar07frontindd   13 20062007   101102 tangent communications plc annual report 2007
piers caldecote
nonexecutive chairman age 60
piers was an associate director at carlton communications plc 
between 1990 and 2004 covering strategy and mergers and 
acquisitions prior to that he worked in the city as an investment 
analyst latterly for chase manhattan securities
nicholas green
joint chief executive age 34
prior to joining tangent nicholas worked at advertisingcom as 
european sales and marketing director the company specialises 
in performance based marketing and was successfully sold to aol 
in 2004 for 439m prior to advertisingcom nicholas worked at 
teletext for seven years in the commercial department
timothy green
joint chief executive age 31
prior to joining tangent timothy was a founding partner at unanimis 
which specialises in internet commercial services for clients such 
as ebay and the bbc prior to this timothy worked at ask jeeves 
in the commercial team
directors and advisers
12
1tanar07frontindd   14 20062007   101111 tangent communications plc annual report 2007
graeme harris
finance director age 40
prior to joining tangent graeme was finance director of 
coutts holdings plc at coutts he worked on its initial flotation and 
on a series of acquisitions in the marketing services sector he oversaw 
the successful sale of coutts to media square plc for £22m graeme 
qualified as a chartered accountant with ernst  young in london
paul murray
nonexecutive director age 45
paul was group finance director at carlton communications plc 
between 2001 and 2004 prior to that he was group finance director 
at lasmo plc he currently sits on the boards of market researcher 
taylor nelson sofres plc where he is the senior independent director 
and thomson sa  the cac40 media technology company
secretary
graeme harris
registered office
truscott house
32–42 east road
london n1 6ad
company registration number
3967805
nominated adviser and broker
collins stewart europe limited
88 wood street
london ec2v 7qr 
auditors
uhy hacker young llp
st alphage house
2 fore street
london ec2y 5dh
registrar
capita registrars
northern house
woodsome park
fenay bridge
huddersfield
west yorkshire hd8 0la
bankers
hsbc bank plc
27–32 poultry
london ec2p 2bx
solicitors
rosenblatt
st andrew house
18–20 st andrew street
london ec4a 3af
directors and advisers
13
1tanar07frontindd   15 20062007   101114 14 tangent communications plc annual report 2007
the directors present their report and audited financial statements of the group for the year ended 28 february 2007
principal activity and review of the business
the principal activity of the group is the provision of customised marketing services a review of the business and its future development can 
be found in the chief executives’ review and the financial review
results and dividends
the consolidated profit for the year amounted to £219000 the directors do not recommend the payment of a dividend the company 
is currently unable to pay a dividend due to the deficit in its distributable reserves in the medium to long term the board intends to pursue 
a progressive dividend policy further information on the group’s results and financial position is included in the financial review
company listing
the company continues to be listed on the alternative investment market aim of the london stock exchange the market code for the company is tng
acquisitions
on 11 july 2006 the company acquired 100 of the share capital of c360 uk limited now named tangent labs limited maximum total 
consideration is £45m payable in cash and shares the initial consideration paid was £2m in shares and £05m in cash further consideration 
to a maximum of £2m is payable dependent upon meeting profits targets and continued employment over three years the directors estimate 
that £1m of the further consideration will be payable
changes in share capital
on 11 july 2006 16666667 ordinary shares of 1p each were allotted at 12p per share as part of the consideration for the acquisition 
of tangent labs limited
subsequent events
on 6 march 2007 tangent agreed a £1m overdraft facility at a rate of 125 over base rate secured by cross guarantees and debentures 
on 27 march 2007 the company completed the acquisition of ravensworth digital services limited for a maximum consideration before 
costs of £585m payable as £541m in cash and £044m in shares the acquisition was funded by the issue of 50011828 shares of which 
46615385 shares were placed at 13p per share
at the date of this report the number of issued ordinary shares is 161791835
employees
the group recognises the benefit of keeping its employees informed of all relevant matters on a regular basis the group is an equal 
opportunities employer and all applications for employment are considered fully on the basis of the suitability for the job
supplier payment policy 
it is the group’s policy that payments to suppliers are made in accordance with those terms and conditions agreed between the group and its 
suppliers provided that all trading terms and conditions have been complied with at 28 february 2007 the group had an average of 72 days’ 
2006 87 days purchases outstanding in trade creditors
use of financial instruments
tangent’s financial risk management objectives are to minimise debt to fund acquisitions through a mixture of equity financing and cash 
and to ensure sufficient working capital for the group’s overhead and capital expenditure commitments this is achieved by prudent financial 
management and careful management of the group’s cash balances both short and long term the financial risk management objectives and 
policies of the group set out in note 20 of the financial statements include the group’s exposure to currency credit liquidity and credit risk
key risks and uncertainties
outlined below are the key risks to tangent’s business
home information pack hip
the government is currently planning to introduce home information packs but the legislation has not yet been finalised there are risks 
around this product which may influence the performance of ravensworth short term if the legislation is passed unamended then in the short 
term the number of residential properties that are newly listed on the market may be reduced whilst hips are introduced this may during this 
period affect the contribution to the group from ravensworth however in this circumstance we expect most of the revenue to be delayed 
rather than lost the revenue from hips long term is expected outweigh any potential shortfall because the group has agreements in place 
with the major hip providers 
technology
technology continues to play an increasing role in tangent’s positioning and client offering we continue to invest in the programming and 
development teams but as the business continues to grow and more high profile account work is won there is a risk that larger companies 
will become more aware of the innovations that tangent delivers and apply greater resources to tangent’s market
paper market
the paper market is concentrated into a few major players and prices have increased in the last twelve months more price increases may occur 
and if it cannot be passed on to clients this will affect margins to date most price increases have been passed on to clients 
donations
during the year the group made charitable donations of £1000 2006 £1000 and no political donations
directors’ report for the year ended 28 february 2007
1tanar07backindd   2 20062007   101316 15 tangent communications plc annual report 2007
directors
during the financial year the following directors held office
piers caldecote 
nicholas green 
timothy green 
graeme harris 
paul murray was appointed as a nonexecutive director on 26 march 2007
directors’ interests 
subsequent to the year end paul murray was appointed to the board and directors participated in a placing of new shares the directors’ 
shareholdings were as follows
 ordinary shares of 1p each
    16 may 28 feb  28 feb 
    2007 2007 2006
piers caldecote    1000000 — —
nicholas green    2730770 2500000 2500000
timothy green    2730770 2500000 2500000
graeme harris    500000 500000 500000
paul murray    2924998 2155767 85000
 shareholding prior to appointment to the board
substantial shareholdings
the directors are aware of the following shareholdings of 3 or more of the issued share capital of the company at 10 may 2007
       of 
    ordinary shares   issued ordinary 
beneficial holder    of 1p each  share capital
michael green     53076924  328
hargreave hale    10675190  66
nicholas gillett     6875000  43
greg jackson     6875000  43
merrill lynch  co inc    5038000  31
vendors of tangent labs and employees of the group
the institutional shareholder base was broadened by the share placing in march 2007 shareholders that had an interest of between 
05 and 3 following the placing include 
aberdeen asset management
axa framlington investment management
basso capital management
bluehone investors
discretionary unit fund
herald investment management
invesco asset management
isis equity partners
octopus asset management
savoy investment management
singer  friedlander investment management
unicorn asset management
auditors
on 30 april 2007 the company’s auditors uhy hacker young transferred their business to a limited liability partnership uhy hacker 
young llp “the llp” and the office of auditors has passed to the llp in accordance with section 385 of the companies act 1985 
a resolution that uhy hacker young llp be reappointed as auditors of the company will be put to the annual general meeting
by order of the board
graeme harris
secretary
16 may 2007
directors’ report for the year ended 28 february 2007
1tanar07backindd   3 20062007   101317 16 tangent communications plc annual report 2007
statement of compliance
although aim listed companies are not required to report on the combined code the directors are committed to proper standards of 
corporate governance and will continue to keep procedures under review 
board and board committees
during the year the board of directors comprised one nonexecutive director and three executive directors a second nonexecutive director 
was appointed after the year end the full board manages overall control of the group’s affairs by the schedule of matters reserved for its 
decision these include the approval of financial statements acquisitions and disposals authority levels for expenditure and review of monthly 
and other management reports the chairman will continue to review the skills and balance of the board as the group grows
the directors are able to take independent professional advice in the furtherance of their duties at the company’s expense and all directors 
have access to the advice and services of the company secretary
the board considers its nonexecutive directors to be independent an independent director is one who has no relationship with the company 
or its management which may undermine independence and who is not dependent on the company or its management for his primary source of 
income was not within the last three years a senior manager of the company and does not participate in the company’s incentive bonus scheme 
or pension schemes
the board delegates daytoday and business management control to the executive directors who are in regular contact with each other 
formal decisions are communicated throughout the group the executive directors are responsible for implementing group policy 
the monitoring and performance of the business and reporting to the full board thereon
the company has an audit committee whose terms of reference cover the points recommended by the code its duties include monitoring 
internal financial control throughout the group approving the group’s accounting policies and reviewing the interim and annual financial 
statements before submission to the board during the year the committee was chaired by piers caldecote and the other members were 
timothy green and graeme harris on 26 march 2007 the audit committee was reconstituted to include nonexecutive directors only 
paul murray joined the audit committee as its chairman and piers caldecote is the other member
the company has a remuneration committee which during the year was chaired by piers caldecote and the other members were nicholas green 
and graeme harris on 26 march 2007 the remuneration committee was reconstituted to include nonexecutive directors only paul murray 
joined the remuneration committee as its chairman and piers caldecote is the other member
all executive directors have rolling service contracts with the company terminable on twelve months’ notice from the company and by 
six months notice by the director nonexecutive directors agree a letter of appointment terminable on six months’ notice by each party 
following their first appointment to the board the terms of the articles of association require all directors to retire and stand for reelection 
at the earliest opportunity under the articles of association all directors are required to retire once every three years 
the nominations committee comprises all directors and is chaired by piers caldecote
relationship with shareholders
the directors consider the clear and timely communication of information to shareholders as an important part of their duties the chief 
executives’ review and financial review provide a summary of the group’s trading performance and future outlook the group’s website  
wwwtangentukcom also gives shareholders access to additional information furthermore twice a year the group’s financial results are 
published in conjunction with briefings for investment managers and institutional analysts following the company’s interim and preliminary 
full year announcements and at other ad hoc visits
the board views the annual general meeting as an opportunity to communicate with both institutional and private investors alike and aims 
to comply with all the provisions of the code relating to the constructive uses of annual general meetings the directors plan to be present 
and available to answer questions at this year’s annual general meeting
corporate governance statement for the year ended 28 february 2007
1tanar07backindd   4 20062007   101317 17 tangent communications plc annual report 2007
heading underhead
accountability and financial control
the board has overall responsibility for the systems of financial control implementation and maintenance of the financial control systems is 
the responsibility of executive management the board through the audit committee has reviewed the effectiveness of the systems of internal 
financial control for the accounting year and the period to the date of approval of the financial statements it should be understood however 
that such systems are designed to provide reasonable but not absolute assurance against material misstatement or loss
the company has an established framework of internal financial controls the key features of which are as follows
control environment
there are clearly defined organisational responsibilities and the board is committed to employing suitably qualified staff so that the 
appropriate level of authority can be delegated with regard to accountability and acceptable levels of risk
information systems
the group operates a number of separate systems of financial and operational reporting to the board and senior management based upon 
an annual budget and regular forecasts monthly weekly and other periodic reports of actual results financial and nonfinancial together 
with key performance indicators are produced and discussed by the directors
identification and evaluation of business risks and controls
management control is exercised at all levels of the group and is regulated by appropriate limits of authority the directors have considered 
various areas of business risks and have developed appropriate policies to manage and diffuse those risks these policies are reviewed in the 
light of known and perceived changes to the risks
quality and integrity of personnel
the group attaches high importance to the values of trust honesty and integrity of personnel in responsible positions and operates a policy 
of recruitment and promoting suitably experienced personnel with clearly defined accountabilities 
investment appraisal
all major capital expenditure is included in the annual budget and is reported on to the board in addition all potential and actual acquisition 
opportunities are regularly reviewed by the board both in meetings and by ad hoc reports
monitoring
given the size of the group and the close daytoday involvement of the executive directors in all of the group’s locations no formal internal 
audit is considered necessary
piers caldecote graeme harris
director director
16 may 2007
corporate governance statement for the year ended 28 february 2007
1tanar07backindd   5 20062007   101319 18 tangent communications plc annual report 2007
introduction
the policy of the group is to offer competitive remuneration packages that will attract retain and motivate experienced and talented 
individuals who will enhance the value of the group the remuneration packages of the executive directors are reviewed and approved by the 
remuneration committee on an annual basis the remuneration policies aim to incentivise and reward both short term financial performance 
and also shareholder value creation the remuneration of other employees is the responsibility of the joint chief executives
remuneration of the directors
executive directors are paid a basic salary and receive benefits in kind the remuneration of nonexecutive directors requires approval by the 
board individual directors are not permitted to participate in decisions concerning their own remuneration
the structure of executive director remuneration was reviewed during the year and for the year that commenced on 1 march 2007 
the remuneration elements are as follows
•  a base salary and benefits in kind are set at a competitive level and reflect the remuneration packages paid by companies of a similar size 
and in similar sectors
•  an annual cash bonus of up to 50 of basic salary is payable depending upon achievement of challenging financial performance targets 
set at the beginning of each financial year the purpose is to incentivise on the short term financial performance of the group and
•  a long term incentive plan ltip under which shares with value up to 50 of basic salary per year are transferred to directors over a three 
year period depending upon the achievement of challenging goals based on total shareholder return tsr over the period the purpose 
is to incentivise delivery of long term value and to align interests with shareholders
the 2007 ltip award has not been made as at the date of this report because of regulatory restrictions the remuneration committee is 
currently determining the best method of implementing the ltip with effect from 1 march 2007 or determining an alternative scheme that 
most closely meets the objectives of the proposed ltip 
for the year under review no share options were granted to directors and a discretionary bonus was awarded to each executive director 
as reward for the increased value delivered to shareholders
audited remuneration of directors was as follows
    benefits 2007 2006 
  salary bonus in kind total total 
  £000 £000 £000 £000 £000
piers caldecote  20 — — 20 13
nicholas green  95 20 9 124 62
timothy green  95 20 9 124 62
graeme harris  90 20 1 111 52
directors who left the board before the start of the financial year  — — — — 252
  300 60 19 379 441
remuneration disclosed for the prior year is the amount for the part of the year during which each director served piers caldecote 
nicholas green and timothy green were appointed to the board on 11 july 2005 and graeme harris was appointed on 17 august 2005
remuneration report for the year ended 28 february 2007
1tanar07backindd   6 20062007   101319 19 tangent communications plc annual report 2007
share options
the company operates three share option schemes by which employees including executive directors are able to acquire shares comprising 
an inland revenue approved scheme an unapproved scheme and an enterprise management incentive emi scheme
at 28 february 2007 5000 2006 5000 options had been granted to employees under the approved scheme 9057066 2006 9057066 
under the unapproved scheme and 4462934 2006 4747934 under the emi scheme
the share options held by directors who served during the year were as follows
    exercise  at 1 mar 2006 
   note price  and 28 feb 2007
nicholas green   a 1p  2500000
   b  5p  2500000
timothy green   a  1p  2500000
   b  5p  2500000
graeme harris   a  5p   1100000
   b 1175p  500000
      11600000
all share options held by directors were granted on 27 september 2005
a options have vested and are exercisable between 27 september 2008 and 26 september 2015
b  options will vest and become exercisable between 27 september 2008 and 26 september 2015 depending on the achievement of 
financial performance and total shareholder return goals and continued service
piers caldecote paul murray
director director
16 may 2007
heading underhead remuneration report for the year ended 28 february 2007
1tanar07backindd   7 20062007   101320 20 tangent communications plc annual report 2007
company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs 
of the company and of the group and of the profit or loss of the group for that period in preparing those financial statements the directors 
are required to
• select suitable accounting policies and then apply them consistently
• make judgements and estimates that are reasonable and prudent
•  state whether applicable accounting standards have been followed subject to any material departures disclosed and explained in the 
financial statements and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business
the directors confirm that the financial statements comply with the above requirements
the directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position 
of the group and which enable them to ensure that the financial statements comply with the companies act 1985 they are also responsible 
for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities
 
so far as the directors are aware at the time of approval of their directors’ report
• there is no relevant audit information of which the company’s auditors are unaware and
•  each director has taken steps that they ought to have taken to make themselves aware of any relevant audit information and to establish 
that the auditors are aware of that information 
statement of directors’ responsibilities
statement of disclosures to the auditors
1tanar07backindd   8 20062007   101320 21 tangent communications plc annual report 2007
we have audited the group and parent company financial statements of tangent communications plc for the year ended 28 february 2007 which 
comprise the consolidated profit and loss account consolidated statement of recognised gains and losses the consolidated and company 
balance sheets the consolidated cash flow statement and related notes these financial statements have been prepared under the accounting 
policies set out therein
this report is made solely to the company’s members as a body in accordance with section 235 of the companies act 1985 our audit work has 
been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditors’ report and 
for no other purpose to the fullest extent permitted by law we do not accept or assume responsibility to anyone other than the company and 
the company’s members as a body for our audit work for this report or for the opinions we have formed
respective responsibilities of directors and auditors
the directors’ responsibilities for preparing the annual report and the financial statements in accordance with applicable law and 
united kingdom accounting standards united kingdom generally accepted accounting practice are set out in the statement 
of directors’ responsibilities 
our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and international 
standards on auditing uk and ireland
we report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with 
the companies act 1985 we also report to you whether in our opinion the information given in the directors’ report is consistent with the 
financial statements in addition we report to you if in our opinion the company has not kept proper accounting records if we have not 
received all the information and explanations we require for our audit or if information specified by law regarding directors’ remuneration 
and transactions with the company is not disclosed
we read other information contained in the annual report and consider whether it is consistent with the audited financial statements 
this other information comprises the chairman’s statement chief executives’ review financial review corporate governance statement 
and the remuneration report we consider the implications for our report if we become aware of any apparent misstatements or material 
inconsistencies with the financial statements our responsibilities do not extend to any other information
basis of audit opinion
we conducted our audit in accordance with international standards on auditing uk and ireland issued by the auditing practices board 
an audit includes examination on a test basis of evidence relevant to the amounts and disclosures in the financial statements it also includes 
an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements and of whether 
the accounting policies are appropriate to the group’s and company’s circumstances consistently applied and adequately disclosed
we planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide 
us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement whether caused by 
fraud or other irregularity or error in forming our opinion we also evaluated the overall adequacy of the presentation of information in the 
financial statements
opinion
in our opinion
•  the financial statements give a true and fair view in accordance with united kingdom generally accepted accounting practice of the state 
of the group’s and the parent company’s affairs as at 28 february 2007 and of the group’s profit for the year then ended
• the financial statements have been properly prepared in accordance with the companies act 1985 and 
• the information given in the directors’ report is consistent with the financial statements 
uhy hacker young llp  st alphage house
chartered accountants  2 fore street
registered auditors  london ec2y 5dh
16 may 2007
statement of directors’ responsibilities
statement of disclosures to the auditors
independent auditors’ report to the shareholders of tangent communications plc
1tanar07backindd   9 20062007   101320 22 tangent communications plc annual report 2007
      2006 
     2007 restated 
    notes £000 £000
turnover    2  
continuing operations     7672 6608
acquisitions     933 —
     8605 6608
cost of sales    3 4515 3723
gross profit     4090 2885
administrative expenses excluding goodwill amortisation and exceptional items    3 3020 2259
operating profit before goodwill amortisation and exceptional items      
continuing operations     811 626
acquisitions     259 —
     1070 626
amortisation of goodwill    11 385 181
operating exceptional items    5 388 161
total administrative expenses    3 3793 2601
operating profit    4  
continuing operations     147 284
acquisitions     150 —
     297 284
nonoperating exceptional items    5 — 176
profit on ordinary activities before interest     297 108
net interest receivablepayable    6 8 6
profit on ordinary activities before taxation     305 102
taxation    8 86 16
profit for the financial year     219 86
basic earnings per share    10  
total operations     021p 012p
excluding goodwill amortisation and exceptional items     095p 082p
fully diluted earnings per share     10  
total operations     019p 011p
excluding goodwill amortisation and exceptional items     086p 077p
      2006 
     2007 restated 
    notes £000 £000
retained profit for the year     219 86
prior year adjustment frs 20    1 29
total recognised gains and losses since the last financial statements     190
consolidated profit and loss account for the year ended 28 february 2007
consolidated statement of recognised gains and losses for the year ended 28 february 2007
1tanar07backindd   10 20062007   101320 23 tangent communications plc annual report 2007
heading underhead
      2006 
     2007 restated 
    notes £000 £000
fixed assets
intangible assets    11 8102 5051
tangible assets    12 675 516
     8777 5567
current assets
stocks    15 87 98
debtors    16 2268 1656
cash at bank      1334 922
     3689 2676
creditors amounts falling due within one year    17 1908 1472
net current assets     1781 1204
total assets less current liabilities     10558 6771
creditors amounts falling due after more than one year    18 215 13
provisions for liabilities and charges    19 500 32
net assets     9843 6726
capital and reserves
called up share capital    21 1118 951
share premium account    23 7860 7860
merger reserve    23 7022 5189
esop reserve     23 3 4
other reserves    23 2211 1323
profit and loss account    23 8365 8593
shareholders’ funds – equity interests    24 9843 6726
these financial statements were approved by the board of directors on 16 may 2007 and were signed on its behalf by
nicholas green graeme harris
director director
16 may 2007
consolidated profit and loss account for the year ended 28 february 2007 consolidated balance sheet at 28 february 2007
1tanar07backindd   11 20062007   101322 24 tangent communications plc annual report 2007
      2006 
     2007 restated 
    notes £000 £000
fixed assets
investments    14 10055 6419
current assets
debtors    16 17 17
cash at bank      96 153
     113 170
creditors amounts falling due within one year    17 1203 180
net current liabilities     1090 10
total assets less current liabilities     8965 6409
provisions for liabilities and charges    19 500 25
net assets     8465 6384
capital and reserves
called up share capital    21 1118 951
share premium account    23 7860 7860
merger reserve    23 7022 5189
esop reserve     23 3 4
other reserve    23 1049 161
profit and loss account    23 8581 7773
shareholders’ funds – equity interests     8465 6384
these financial statements were approved by the board of directors on 16 may 2007 and were signed on its behalf by
nicholas green graeme harris 
director director
16 may 2007
company balance sheet at 28 february 2007
1tanar07backindd   12 20062007   101325 25 tangent communications plc annual report 2007
heading underhead
     2007 2006 
    notes £000 £000
net cash inflow from operating activities    25 1177 535
returns on investments and servicing of finance      
net interest receivedpaid     8 6
taxation     27 15
capital expenditure
purchase of tangible fixed assets     498 54
receipts from sale of tangible fixed assets     61 10
net cash outflow from capital expenditure     437 44
acquisitions and disposals
purchase of subsidiary including costs     636 229
cash acquired with subsidiary     153 542
net cash outflowinflow from acquisitions and disposals     483 313
net cash inflow before financing     238 783
financing      
finance lease drawdown     308 20
finance lease capital repayments      144 86
bank loan repaid     — 9
exercise of share options under esop     10 152
net cash inflow from financing     174 77
increase in cash    27 412 860
company balance sheet at 28 february 2007 consolidated cash flow statement for the year ended 28 february 2007
1tanar07backindd   13 20062007   101325 26 tangent communications plc annual report 2007
1 accounting policies
basis of preparation
the financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards 
in the united kingdom the principal accounting policies which the directors have adopted are set out below
basis of consolidation
the consolidated financial statements incorporate the financial statements of the company and all its subsidiary undertakings from the date 
of their acquisition using acquisition accounting principles 
no company profit and loss account is presented as permitted by section 230 of the companies act 1985
goodwill
goodwill is the difference between the amount paid on the acquisition of a business and the aggregate fair value of its separable net assets
goodwill is capitalised as an intangible fixed asset in the year in which it arises and amortised in equal instalments over its estimated useful 
economic life up to a maximum of 20 years the directors regard 20 years as a reasonable maximum for the estimated useful life of goodwill 
if a subsidiary undertaking is subsequently sold any goodwill arising on acquisition that has not been amortised through the profit and loss 
account is taken into account in determining the profit and loss on sale
goodwill is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes 
in circumstances indicate that the carrying value may not be recoverable
tangible fixed assets
tangible fixed assets are stated at cost less accumulated depreciation depreciation is provided on all tangible fixed assets at rates calculated 
to write off the cost less estimated residual value of each asset over its expected useful life at the following rates
leasehold land and buildings over the term of the lease
plant and machinery  three to ten years straight line
fixtures and fittings  two to ten years straight line
computer equipment  three years straight line
investment in own shares and sharebased payments
investment in own shares held by the employee share ownership trust is deducted from reserves in accordance with urgent issues task force 38 
uitf 38
from 1 march 2006 the group adopted frs 20 which deals with sharebased payments made for services or goods rendered the fair value of 
share options granted is calculated using the blackscholes option pricing model the expense is spread over the period from the date of grant 
to the date that options vest and are exercisable based on the company’s best estimate of the number of shares that will eventually vest
the prior year comparative figures have been restated in accordance with the new standard the effect of frs 20 was to increase 
administrative expenses for the year ended 28 february 2006 by £29000 the group’s net assets and cash flow statement were unaffected 
fixed asset investments
fixed asset investments in subsidiary companies are stated at cost less provision for impairment
stocks and work in progress
stocks and work in progress are valued at the lower of cost and net realisable value after making due allowances for any obsolete or slow 
moving items in the case of finished goods and work in progress cost comprises direct materials direct labour and an appropriate proportion 
of fixed and variable overheads
foreign currencies
monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance 
sheet date transactions denominated in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the 
transaction all exchange differences are taken to the profit and loss account as incurred
pensions
the group makes contributions to the personal pension plans of certain employees contributions are charged to the profit and loss account 
as they become payable
operating leases
operating lease rentals are charged to the profit and loss account on a straight line basis over the lease term
finance leases
assets obtained under finance leases are capitalised as tangible fixed assets and depreciated over their useful lives obligations under such 
agreements are included in creditors net of the finance charge allocated to future periods the finance element of the rental payment is 
charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period
deferred taxation
deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and 
accounting purposes the deferred tax balance is not discounted
financial instruments
frs 13 requires information to be disclosed about the impact of financial instruments on the group’s risk profile how the risks arising from 
financial instruments might affect the entity’s performance and how these risks are being managed
the group’s policies include that no trading in derivative financial instruments shall be undertaken for speculative purposes 
these disclosures have been made in note 20 to the accounts
notes to the financial statements for the year ended 28 february 2007
1tanar07backindd   14 20062007   101325 27 tangent communications plc annual report 2007
heading underhead
2 turnover
turnover represents the invoiced value of goods and services exclusive of vat the total turnover of the group for the year has been derived 
from its principal activities wholly undertaken in the united kingdom
3 cost of sales and administration expenses
    continuing  acquisitions total 
year ended 28 february 2007    £000 £000 £000
cost of sales    4364 151 4515
administrative expenses – normal    2497 523 3020
 – goodwill amortisation    276 109 385
 – exceptional charge    388 — 388
total administrative expenses    3161 632 3793
    continuing   total 
    restated  acquisitions restated 
year ended 28 february 2006    £000 £000 £000
cost of sales    3723 — 3723
administrative expenses – normal    2259 — 2259
 – goodwill amortisation    181 — 181
 – exceptional charge    161 — 161
total administrative expenses    2601 — 2601
4 operating profit
operating profit is stated after charging
     2007 2006 
     £000 £000
auditors’ remuneration – audit     35 35
 – other     5 5
depreciation on tangible fixed assets     342 270
amortisation of goodwill     385 181
operating lease rentals – land and buildings     149 149
 – other     22 37
5 exceptional items
      2006 
     2007 restated 
     £000 £000
share option charge in accordance with frs 20     388 161
restructuring and integration costs      — 176
the share option charge relates principally to the share options granted to directors in september 2005 as disclosed in the remuneration report on 
page 19
6 net interest receivablepayable
     2007 2006 
     £000 £000
interest receivable on deposits     27 15
interest payable on finance leases     19 14
other interest payable     — 7
     8 6
notes to the financial statements for the year ended 28 february 2007
1tanar07backindd   15 20062007   101325 28 tangent communications plc annual report 2007
7 information on employees
     2007 2006 
     £000 £000
wages and salaries     2940 2336
social security costs     315 256
other pension costs – defined contribution scheme     37 33
     3292 2625
the average monthly number of employees including directors during the year was
     2007 2006 
     number number
production     50 46
selling and distribution     24 25
administration     20 11
     94 82
details of directors’ emoluments including details of share option schemes are given in the report of the remuneration committee on pages 
18 and 19 these disclosures form part of the audited financial statements of the group
8 taxation
     2007 2006 
     £000 £000
uk corporation tax on profits of the year     86 2
deferred taxation     — 14
     86 16
      2006 
     2007 restated 
reconciliation of current year tax charge     £000 £000
profit on ordinary activities before taxation     305 102
profit on ordinary activities before taxation multiplied by the standard rate of uk corporation tax of 30 2006 30  91 31
factors affecting charge
nondeductible expenses     247 127
short term timing difference     3 8
depreciation in excess of capital allowances     22 24
utilisation of tax losses     233 172
current tax charge     86 2
the group has tax losses available to carry forward against future profits amounting to £1158000 2006 £1888000
9 loss attributed to parent company
the loss dealt with in the financial statements of the parent company was £817000 2006 restated £256000
10 earnings per share
earnings per share have been calculated by dividing the earnings available to ordinary shareholders by the weighted average number of shares 
in issue during the year after excluding the shares owned by the employee share ownership trust diluted earnings per share take into account 
the potentially dilutive effect of share options
      2006 
     2007 restated 
     £000 £000
earnings excluding goodwill amortisation and exceptional items     992 590
exceptional items net of tax     388 323
goodwill amortisation     385 181
basic and diluted earnings     219 86
     number number 
     000 000
weighted average number of ordinary shares in issue     104278 71561
effect of dilutive share options     11637 5211
diluted weighted average number of shares in issue     115915 76772
notes to the financial statements for the year ended 28 february 2007 continued
1tanar07backindd   16 20062007   101325 29 tangent communications plc annual report 2007
11 intangible fixed assets
      goodwill 
group      £000
cost      
at 1 march 2006      5591
addition      3436
at 28 february 2007      9027
amortisation      
at 1 march 2006      540
charge for the year      385
at 28 february 2007      925
net book value      
at 28 february 2007      8102
at 28 february 2006       5051
the additional goodwill in the year arose from the acquisition of tangent labs limited formerly c360 uk limited as set out in note 13 
this goodwill is being amortised over 20 years
the goodwill brought forward from prior years is being amortised over five and 20 years 
12 tangible fixed assets
   short 
   leasehold 
   land and plant and fixtures 
   buildings machinery and fittings total  
group   £000 £000 £000 £000
cost
at 1 march 2006   41 1650 107 1798
additions   18 480 — 498
acquired with subsidiary   — 8 — 8
disposals   — 284 — 284
at 28 february 2007    59 1854 107 2020
depreciation
at 1 march 2006   21 1197 64 1282
charge for the year   11 308 23 342
disposals   — 279 — 279
at 28 february 2007   32 1226 87 1345
net book value
at 28 february 2007   27 628 20 675
at 28 february 2006    20 453 43 516
included within net book value of plant and machinery is £298000 2006 £196000 in respect of assets held under finance leases included 
within the depreciation charge for the year is £68000 2006 £103000 in respect of assets held under finance leases
notes to the financial statements for the year ended 28 february 2007 continued
1tanar07backindd   17 20062007   101326 30 tangent communications plc annual report 2007
13 acquisitions
on 11 july 2006 the company acquired the entire issued share capital of tangent labs limited formerly c360 uk ltd details of the acquisition are 
as follows
net assets acquired      £000
tangible fixed assets      8
debtors      148
cash at bank      153
other creditors      109
book and fair value of net assets      200
goodwill note 11      3436
total consideration for acquisition      3636
satisfied by
      £000
issue of shares at market value 12p      2000
cash paid      500
costs of acquisition      136
estimated future consideration      1000
      3636
the maximum future consideration payable under the purchase agreement for tangent labs limited is £2000000 comprising £500000 in 
cash and 12500000 new ordinary shares with a contractual valuation of 12p each potential future payments are dependent on performance 
of the tangent labs business and the continuing employment of the vendors over the three years to 31 july 2009 the directors estimate that 
future consideration will be £1000000 comprising £500000 in cash and 4166667 new ordinary shares
the summarised profit and loss account for tangent labs limited from the beginning of its financial year 1 november 2005 until the date of 
acquisition 11 july 2006 is shown below
      £000
turnover      493
operating profit      164
interest receivable      2
profit before taxation      166
taxation      26
profit for the period      140
the profit after taxation for the previous financial year was £102000
14 investments
      subsidiary 
      undertakings 
company       £000
cost
at 1 march 2006      6683
additions note 13      3636
at 28 february 2007       10319
provision for impairment
at 1 march 2006 and 28 february 2007      264
net book value
at 28 february 2007       10055
at 28 february 2006      6419
in the opinion of the directors the aggregate value of the investment in subsidiary undertakings is not less than the amount at which it is 
stated in the balance sheet
notes to the financial statements for the year ended 28 february 2007 continued
1tanar07backindd   18 20062007   101326 31 tangent communications plc annual report 2007
heading underhead
14 investments continued
subsidiary undertakings
the company’s subsidiary undertakings are as follows
      interest in 
     principal ordinary  
name       activity share capital
tangent marketing services limited     marketing services 100
tangent labs limited     marketing services 100
documedia solutions limited     dormant 100 
ctrlpcom limited      dormant 100
crestlands limited     dormant 80
documedia sales limited      dormant 100
fingerprint digital limited     dormant 100
the fingerprint group limited     dormant 100
london digital printing company limited      dormant 100
london digital printing group limited     dormant 100
london digital art limited     dormant 100
sms solutions limited     dormant 100
all companies are incorporated in england and wales the results of the above companies have been consolidated in these financial statements
15 stocks
 group 
 
company
   2007 2006 2007 2006 
   £000 £000 £000 £000
raw materials   72 79 — —
work in progress   15 19 — —
   87 98 — —
16 debtors
 group 
 
company
   2007 2006 2007 2006 
   £000 £000 £000 £000
trade debtors   2063 1430 — —
other debtors   13 24 17 17
prepayments   192 202 — —
   2268 1656 17 17
17  creditors – amounts falling due within one year
 group 
 
company
   2007 2006 2007 2006 
   £000 £000 £000 £000
trade creditors   949 799 8 29
finance leases    70 108 — —
corporation tax   117 2 — —
other taxes and social security   377 210 — —
amounts owed to subsidiary undertakings   — — 1192 148
other creditors   59 45 3 3
accruals   336 308 — —
   1908 1472 1203 180
notes to the financial statements for the year ended 28 february 2007 continued
1tanar07backindd   19 20062007   101326 32 tangent communications plc annual report 2007
18 creditors – amounts falling due after more than one year
 group  
 
company
   2007 2006 2007 2006 
   £000 £000 £000 £000
finance leases   215 13 — —
all finance leases are repayable within five years 
19 provisions for liabilities and charges
group      £000
at 1 march 2006       32
paid in the year      21
provided for in the year      500
released during the year      11
at 28 february 2007       500
the nature of the provisions is as follows  
     2007 2006 
     £000 £000
provision for deferred cash consideration on the acquisition of tangent labs limited    500 —
provision for deferred consideration on the acquisition of the fingerprint group limited    — 25
provision for onerous lease on former premises of the fingerprint group limited     — 7
     500 32
company
provision for deferred consideration on acquisitions
      £000
at 1 march 2006      25
paid in year      14
provided for during the year      500
released during the year      11
at 28 february 2007      500
20 financial instruments
the group’s financial instruments comprise cash liquid resources and various items such as debtors and creditors that arise directly from 
its operations
the main risk arising from the group’s financial instruments is interest rate risk the group monitors its interest rate risk primarily through 
monthly cash flow forecasting 
short term debtors and creditors
short term debtors and creditors have been excluded from the financial instruments disclosures
interest rate risk
the group finances its operations through shareholder equity working capital finance leases and accumulated cash balances 
throughout the year the group’s exposure to interest rate fluctuations was on its cash deposits and finance leases
foreign currency risk
throughout the year the group was not exposed to a material currency risk
notes to the financial statements for the year ended 28 february 2007 continued
1tanar07backindd   20 20062007   101326 33 tangent communications plc annual report 2007
heading underhead
20 financial instruments continued
interest rate risk profile of financial assets and liabilities
the interest rate profile of the group’s financial assets and liabilities was
    floating rate  floating rate 
   fixed rate financial fixed rate financial 
   financial assets financial assets 
   liabilities liabilities liabilities liabilities 
   2007 2007 2006 2006 
   £000 £000 £000 £000
cash balances   — 1334 — 922
finance leases   — 285 103 18
   — 1049 103 904
interest on cash is based on floating rates linked to money market rates the average rate of interest on floating rate liabilities is 088 above 
bank base rate
fair value of financial instruments
the group’s financial instruments which comprise cash and short term deposits and variable rate finance leases are carried at cost which is 
also considered to be equivalent to their fair value
21 share capital
     2007 2006 
     £000 £000
authorised
142670000 2006 142670000
ordinary shares of 1p each     1427 1427
allotted and fully paid
111780007 2006 95113340
ordinary shares of 1p each     1118 951
on 11 july 2006 16666667 ordinary shares of 1p each were allotted at 12p per share as part consideration for the acquisition of 
tangent labs limited formerly c360 uk limited
22 share options
the movements in share options and corresponding weighted average exercise prices are summarised below
      weighted 
     number   average 
     000 exercise price
at 1 march 2006     13810 434p
exercised for cash     200 467p
granted     265 1175p
lapsed     350 489p
at 28 february 2007     13525 444p
for the share options outstanding at 28 february 2007 exercise prices ranged between 1p and 1175p per share and the weighted average 
remaining contractual life was 85 years
for the options exercised in the year the weighted average share price at exercise was 11p
the fair value of share options granted in the year was calculated using a blackscholes option pricing model the exercise price and share price 
of options granted in the year were 1175p the volatility measured as the standard deviation of expected share price return is based on 
statistical analysis of the ftse support services index over the past four years which resulted in an assumed volatility of 14 the risk free interest 
rate has been assumed as 455
the total share option charge for the year was £388000 2006 restated £161000 in accordance with the requirements of frs 20 
on sharebased payments the charge relates principally to the share options granted to directors in september 2005 as disclosed in the 
remuneration report on page 19
notes to the financial statements for the year ended 28 february 2007 continued
1tanar07backindd   21 20062007   101326 34 tangent communications plc annual report 2007
23 reserves
  share    profit 
  premium  merger esop other  and loss 
   account reserve reserve reserve  account 
group  £000 £000 £000 £000 £000
at 1 march 2006   7860 5189 4 1294 8564
prior year adjustment frs 20  — — — 29 29
at 1 march 2006 as restated  7860 5189 4 1323 8593
premium on issue of shares  — 1833 — — —
release of funds on distribution of shares  — — 1 — 9
share option charge frs 20  — — — 388 —
deferred consideration  — — — 500 —
retained profit for the year  — — — — 219
at 28 february 2007  7860 7022 3 2211 8365
  share    profit 
  premium merger esop other  and loss 
  account reserve reserve reserve  account 
company  £000 £000 £000 £000 £000
at 1 march 2006  7860 5189 4 132 7744
prior year adjustment frs 20  — — — 29 29
at 1 march 2006 as restated  7860 5189 4 161 7773
premium on issue of shares  — 1833 — — —
release of funds on distribution of shares  — — 1 — 9
share option charge  — — — 388 —
deferred consideration  — — — 500 —
retained loss for the year  — — — — 817
at 28 february 2007   7860  7022 3 1049 8581
employee share ownership trust
at 28 february 2007 the employee share ownership trust held a total of 1448340 2006 1648340 ordinary shares  
in tangent communications plc with a market value of £192000 2006 £165000
24 reconciliation of movements in shareholders’ funds
      2006  
     2007 restated 
group     £000 £000
profit for the financial year     219 86
issue of shares     2000 5739
deferred equity consideration     500 —
share option charge frs 20     388 161
disposal of own shares held by esop     10 152
net increase in shareholders’ funds     3117 6138
opening shareholders’ funds     6726 588
closing shareholders’ funds     9843 6726
notes to the financial statements for the year ended 28 february 2007 continued
1tanar07backindd   22 20062007   101326 35 tangent communications plc annual report 2007
heading underhead
25 reconciliation of operating profit to net cash inflow from operating activities
     2007 2006 
     £000 £000
operating profit     297 284
share option charge frs 20     388 161
nonoperating exceptional items     — 176
amortisation of goodwill     385 181
depreciation charge     342 270
profit on disposal of fixed assets     56 3
decrease in stock     11 7
increasedecrease in debtors     464 383
increasedecrease in creditors and provisions     274 572
net cash inflow from operating activities     1177 535
26 analysis of net funds
    at 1  cash  at 28 
    march 2006 flows feb 2007 
    £000 £000 £000
cash at bank    922 412 1334
finance leases    121 164 285
net funds    801 248 1049
27 reconciliation of net cash flow to movement in net funds
     2007 2006 
     £000 £000
increase in cash     412 860
cash inflowoutflow from increasedecrease in debt     164 95
change in net funds resulting from cash flows     248 955
new finance leases     — 20
finance leases acquired with subsidiary     — 110
movement in net funds in the year     248 825
opening net funds     801 24
closing net funds     1049 801
28 financial commitments
annual commitments under noncancellable operating leases are as follows
 2007  2006 
 group  group
   property other property other 
   £000 £000 £000 £000
operating leases which expire
 within one year   23 — — —
 between two and five years   110 29 149 18
   133 29 149 39
29 related party transactions
there were no related party transactions in the year or prior year
30 post balance sheet events
on 27 march 2007 the company completed the acquisition of ravensworth digital services limited a digital marketing business based 
in newcastle serving the property sector 
the consideration was £585m before costs satisfied by £541m in cash and the issue of 34m ordinary shares of 1p at 13p per share 
there is no deferred consideration to fund the acquisition the company placed a further 466m new ordinary shares at 13p per share raising 
gross proceeds of £606m
notes to the financial statements for the year ended 28 february 2007 continued
1tanar07backindd   23 20062007   101327 36 tangent communications plc annual report 2007
notice is hereby given that the 2007 annual general meeting of the company will be held at the offices of rosenblatt solicitors st andrew house  
18–20 st andrew street london ec4a 3af on 13 july 2007 at 10 am for the following purposes
as ordinary business
1 to receive the financial statements for the year ended 28 february 2007 and the report of the directors and auditors on those statements
2 to reappoint uhy hacker young llp as auditors of the company and to authorise the board to determine their remuneration
3 to reelect timothy green who retires from office pursuant to the articles of association of the company as a director of the company
4 to reelect paul murray who retires from office pursuant to the articles of association of the company as a director of the company
by order of the board
graeme harris registered office
secretary truscott house 
16 may 2007 32–42 east road 
 london n1 6ab
notes 
1  any member entitled to attend and vote at the meeting convened by the above notice is entitled to appoint one or more proxies to attend 
and on a poll to vote in his place a proxy need not be a member of the company
2  to be valid the enclosed form of proxy for the annual general meeting together with the power of attorney or other authority if any under 
which it is signed or a notarially certified or office copy thereof must be deposited by 10 am on 11 july 2007 at the offices of the 
company’s registrars capita registrars proxy processing centre telford road bicester ox26 4ld
3 returning the form of proxy will not prevent you from attending and voting in person
4  the company pursuant to regulation 41 of the uncertificated securities regulations 2001 specifies that only those shareholders registered 
in the register of members of the company as at 6 pm on 11 july 2007 or in the event that the meeting is adjourned in the register of members 
48 hours before the time of any adjourned meeting shall be entitled to attend or vote at the aforesaid general meeting in respect of the number 
of shares registered in their name at the relevant time changes to entries in the register of members after 6 pm on 11 july 2007 or in the event 
that the meeting is adjourned in the register of members less than 48 hours before the time of any adjourned meeting shall be 
disregarded in determining the rights of any person to attend or vote at the meeting
5  in the case of joint holders the vote of the senior who tenders a vote whether in person or by proxy will be accepted to the exclusion of 
the votes of the other joint holders and for this purpose seniority will be determined by the order in which the names stand in the register 
of members of the company in respect of the relevant joint holding
notice of the annual general meeting
1tanar07backindd   24 20062007   101328 37 tangent communications plc annual report 2007
heading underhead notice of the annual general meeting
i  name
of  address
being a member of tangent communications plc the “company” hereby appoint
the chairman see note 4
as my proxy to attend for me at the annual general meeting of the company and at any adjournment of such general meeting whenever held 
and to vote on my behalf on the resolutions set out in the notice of general meeting as follows and on any other resolutions as he thinks fit
annual general meeting on 13 july 2007 at 10 am at the offices of rosenblatt solicitors st andrew house 18–20 st andrew street london ec4a 3af 
 resolution for against
 1 to receive the financial statements for the year ended 28 february 2007
 2 to reappoint uhy hacker young llp as auditors
 3 to reelect timothy green as a director
 4 to reelect paul murray as a director
dated 2007
signature 
please return to the company’s registrars
capita registrars 
proxy processing centre 
telford road 
bicester ox26 4ld
notes
1  to be valid this form duly completed together with the power of attorney or other authority if any under which it is signed or a notarially 
certified or office copy thereof must be deposited at the offices of the company’s registrars capita registrars proxy processing centre 
telford road bicester ox26 4ld by 10 am on 11 july 2007 the form must be signed if someone else signed the form on your behalf 
you or that person must send the power of attorney or other written authority under which it is signed to the offices of the company’s 
registrars capita registrars
2  a corporation must execute this form either under its common seal or under the hand of two directors or one director and the secretary 
or under the hand of an officer attorney or other person duly authorised in writing
3  this form enables you to instruct your proxy how to vote in the event of a poll on the resolutions to be proposed at the general meeting 
please indicate with an ‘ x’ how you wish to vote if you do not indicate how you wish to vote the proxy will vote or abstain from voting 
as he or she thinks fit
4  the appointment of the chairman as proxy has been included for convenience if you wish to appoint any other person or persons as proxy 
or proxies delete the words “the chairman” and add the name and address of the proxy or proxies appointed a proxy need not be a member 
of the company if you do not delete such words and you appoint a proxy or proxies the chairman shall not be entitled to vote as proxy 
any alteration must be initialled if you appoint more than one person to act as proxy the number of shares in respect of which each is to 
vote must be specified in the absence of any specific direction a proxy shall be deemed to be entitled to vote in respect of all the shares 
in the relevant holding
5  in the case of joint holders the signature of any one holder will be sufficient but the names of all the joint holders should be stated and 
the vote of the senior who tenders a vote whether in person or by proxy will be accepted to the exclusion of the votes of the other joint 
holders for this purpose seniority will be determined by the order in which the names stand in the register of members in respect of 
the shares
6 returning the form of proxy will not prevent you from attending the general meeting and voting in person
7  the company pursuant to regulation 41 of the uncertificated securities regulations 2001 specifies that only those shareholders registered 
in the register of members of the company as at 6 pm on 11 july 2007 or in the event that the general meeting is adjourned in the register 
of members 48 hours before the time of any adjourned general meeting shall be entitled to attend or vote at the aforesaid general meeting 
in respect of the number of shares registered in their name at the relevant time changes to entries in the register of members after 6 pm 
on 11 july 2007 or in the event that the general meeting is adjourned in the register of members less than 48 hours before the time 
of any adjourned general meeting shall be disregarded in determining the rights of any person to attend or vote at the general meeting
form of proxy

1tanar07backindd   25 20062007   101329 business reply style
business reply
licence number
rrhbrsxjgkcy
capita registrars
proxy processing centre
telford road
bicester ox26 4ld
ﬁrst fold
second fold
third fold and tuck in
1tanar07backindd   26 20062007   101330 tangent communications plc
truscott house 
32–42 east road 
london n1 6ad 
wwwtangentukcom
tangent communications plc
annual report 2007
tangent communications plc annual report 2007
1coverindd   1 20062007   101857


Summary:
 04 tangent communications plc annual report 2007
the fastest growing team within tangent 
is our programming resource now with 
over 20 full time people
toolkit saw a 65 increase in order 
volume during the year
in the year ended 28 february 2007 tangent increased its 
performance in each of its internal key performance indicators 
turnover increased by 30 to £861m adjusted operating margin 
increased by 29 points to 124 adjusted operating profits 
increased by 71 to £107m and cash flow from operations for the 
year increased from  £054m to £118m 
technology
marketing departments are increasingly looking to technology to 
improve the effectiveness of their campaigns however they often 
do not have the tools to extract information from their databases 
this is where tangent’s services come in to play 
technology sits at the heart of our business strategy and last year we 
took a significant step in increasing our capabilities through the acquisition 
of c360 uk now tangent labs with its proprietary engine taobase 
furthermore we continued our investment into toolkit our proprietary 
web tool today through taobase and toolkit we can offer our clients 
a range of technologydriven services which include
• database management construction and integration
• website design and build
• build of local marketing applications
• targeted email marketing with optimising tracking capabilities
• sms and mms marketing services and
• display point of sale and direct mail communications
the group currently employs over 20 full time programmers 
focused on client requirements and increasing the scope of 
tangent’s digital services 
chief executives’ review
1tanar07frontindd   6 20062007   101042 05 tangent communications plc annual report 2007
market development
orders generated via toolkit tangent’s proprietary online ordering 
system increased by 65 year on year and by 225 over a three year 
period this is in part due to the increased functionality but primarily 
due to the increase in customer numbers and willingness to change the 
way in which marketing collateral is created and used the retail market 
is the primary target sector for tangent’s online marketing tool 
online marketing continues to grow at significant rates tangent is 
now firmly established as a company capable of building complex 
and innovative web solutions which culminated in april 2007 with 
tangent being selected via a competitive pitch to build the new 
website for the labour party tangent won against competition 
with larger more developed agencies within larger network groups 
tangent believes that its success derives from being a younger more 
innovative business well positioned to participate in technological 
developments in the market including the introduction of web 20 
the directors believe that this firmly sets the foundation for tangent 
to grow this side of our business
market researchers predict that marketing applications are one of 
the fastest growing customer relationship management crm 
areas in the it sector and t angent expects to benefit from the continued 
migration of marketing budgets from offline to online
financial control
margins have now improved each year since tangent was formed 
in july 2005 despite parts of the business operating in what is sometimes 
perceived as a competitive market place tangent’s valueadd and focus 
on technology services have allowed the group to increase its margin 
year on year 
cash conversion also remains at the heart of our business practice and 
this year operating cash more than doubled the group’s strong cash 
position allows it to retain a strong negotiating stance with suppliers 
clients and acquisition targets and cash generation will continue to 
remain a core focus going forward 
chief executives’ review new look
in january 2007 tangent launched a 
toolkit site for new look which provides 
over 700 stores with an online environment 
for recruitment
emma conway new look recruitment 
manager explains “toolkit is a fantastic 
resource that allows us to be more consistent 
and uptodate with our advertising and 
recruitment materials it is easy to use 
allowing us to send materials to stores 
at the click of a button – essential when 
working in the fast paced environment 
of new look”
in january 2007 tangent launched a 
1tanar07frontindd   7 20062007   101044 06 tangent communications plc annual report 2007
ravensworth
the acquisition of ravensworth was completed in march 2007 and 
brings a significant number of different opportunities to the group 
as a stand alone business ravensworth’s sales grew by 15 last year 
on a net margin of 16 over 365 new clients were won in the last 
six months of 2006 
ravensworth is the leading supplier of full colour marketing literature 
to the uk property sector the company operates from a purpose 
built 23000 sq ft digital production facility housing the latest 
in digital printing equipment from a client list of over 2500 estate 
agency branches ravensworth receives over 2000 orders per day 
producing over 7m full colour a4 pages a month
ravensworth’s experience and unique understanding of its core 
market have led to the continued growth in all areas of business 
with customer numbers increasing by 24 in the last twelve 
months it now accounts for approximately 20 of the uk market 
and is more than three times the size of its closest competitor 
having established a market leading position we are confident 
in its ability to continue expanding its core market together with 
offering further value added services to its current customer base
tangent’s expertise in direct mail represents a great opportunity 
when applied to the ravensworth client base within tangent’s 
existing business we have witnessed a great takeup from property 
clients looking to increase new customers via targeted direct mail 
this new approach will be sold by the ravensworth team to its client 
base which has not previously used ravensworth for this service 
it is also our intention to launch a web portal which will enable every 
estate agent in the uk to create personalise proof and order online 
a targeted direct mail campaign
it is probable that new government legislation will mean that a 
home information pack hip will have to be created and produced by 
the vendor with each property sold via the estate agent ravensworth 
took part in the trials for the creation of hips if the legislation is enacted 
we expect ravensworth to benefit having signed indicative agreements 
with most of the hip providers in the uk the directors have not 
included any contribution from this opportunity into the management 
budget however if legislation is enacted we believe the opportunity 
will be significant
chief executives’ review continued
ravensworth has over 2500 individual branches using its 
software to generate digital orders on a daily basis
ravensworth
from left to right kevin cameron 
suzie pattison and ian gordon
1tanar07frontindd   8 20062007   101048 07 tangent communications plc annual report 2007
outlook
the new financial year beginning march 2007 has begun with all group 
areas ahead of budget the integration of ravensworth and transfer 
of work from london to newcastle are currently ahead of schedule 
and the company is on track to realise annual savings of in excess 
of £100000 this leaves the company in a strong position to begin 
examining phase two of the work transfer process ravensworth 
experienced its strongest ever months in march and april 2007 
with new client revenue from the wins in 2006 coming through 
in the coming year we will integrate taobase with toolkit creating a 
unified technology platform within tangent which will provide clients 
with increased functionality within a central operating environment 
finally we would like to thank the team for working so hard to 
help us achieve our objectives it is their passion creativity and ability 
to deliver client exceeding results that continues to fuel tangent’s 
growth we look forward to building on tangent’s strong 
performance in the year ahead 
nicholas green timothy green
joint chief executive joint chief executive
16 may 2007
chief executives’ review continued labour party
tangent provides the labour party with 
a wide range of services all powered by 
taobase and toolkit the services range 
from labour’s national website to a system 
for reporting loans and donations from 
around 700 accounting units to head office 
we provide a secure intranet system which 
allows labour members to converse in a 
closed environment or publish their own 
blogs and websites to the general public 
this system integrates with labour’s 
membership database to allow members 
to manage their personal details online 
and to allow the party to deliver tailored 
communications to each member
tangent created personalised digitally 
printed postcards which were sent to 
voters ‘from’ their local candidates inviting 
the voters to give their views on local issues 
the candidates each had a login to taobase 
where they could directly follow up with the 
voters taobase automatically selected those 
voters who had not responded and sent 
them follow up materialsthis enabled the 
labour party at a national level to provide 
local campaigners with a customisable 
campaign which could be driven both 
locally and centrally at a much lower cost 
than traditional campaigns
1tanar07frontindd   9 20062007   101055