Assetco PLC

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Annual Report & Accounts 2009

AssetCo
Registered office
800 Field End Road
South Ruislip
Middlesex
HA4 0QH

Telephone: +44 (0) 20 8515 3999
www.assetco.com

 
 
 
 
 
 
 
AssetCo has pioneered the development of integrated 
support services for emergency response and homeland 
security organisations in the UK and Internationally. 

AssetCo has a 20-year PFI contract providing London Fire 
Brigade, with a comprehensive suite of Integrated Support 
Services, including the supply and operational availability of 
over 500 vehicles and 50,000 items of operational equipment.

“The integrated working relationship we have established with AssetCo, and the valuable 
services they provide on a day-to-day basis as part of our PFI contract, allows us to focus 
resources on our core business of providing an excellent fire and rescue service to London.”

Ron Dobson – Commissioner, London Fire and Emergency Planning Authority

ComPAny InFormAtIon

AssetCo plc
Company registration number #4966347 
Registered office
800 Field End Road
South Ruislip
Middlesex
HA4 0QH

Directors 
Tim wightman (Chairman)
John shannon
Frank Flynn
Adrian bradshaw
Peter manning (appointed 1 September 2008)

Company secretary 
michael Lavender

website
www.assetco.com 

AssetCo plc Annual Report & Accounts 2009

bankers
bank of scotland (Ireland) Limited
Donegall Square North
Belfast 
BT1 5GB

solicitors
nabarro
Lacon House
84 Theobald’s Road 
London
WC1X 8RW

Auditor
grant Thornton UK LLP
Churchill House
Chalvey Road East
Slough
Berkshire
SL1 2LS

nominated adviser, financial adviser 
and corporate broker
Arden Partners 
Nicholas House
3 Laurence Poutney Hill
London
EC4R 0EU

Financial public relations 
Pelham Public Relations
12 Arthur Street
London
EC4R 9AB

Registrar
Computershare Investor services PLC
PO Box 1075
The Pavilions
Bridgewater Road
Bristol
BS99 3FA

93

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AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

01

01

highlights

 25% 

profit before tax: 

£11.3m

 33% 

earnings per share: 

14.0p

swift water and flood rescue 
training contract won for the 
south east region

£500,000

Providing the training at our 
dedicated Swift Water and Flood 
Rescue Centre in Nene. The 
contract is for three years with 
opportunity to extend.

foreign commonwealth office 
3 year contract won

£2,800,000

Providing mailroom and conveyor 
scanners, installation and user training 
to British Embassies and Consulates 
in 144 countries around the world. 
The contract is for three years. 
AssetCo will also provide extended 
maintenance for the scanners over 
a period of eight years as part of an 
additional contract.

london ambulance  
2 year contract won

£7,000,000

To provide ‘frontline ambulances’ 
to the London Ambulance Service 
NHS Trust worth circa £7 million in 
the first year.

malaysian fire and rescue  
contract won

£460,000

The contract to supply over 250 
units, including ladders and gantries 
and illustrates the strength of our 
reputation internationally.

Business Profile

Who we are

What we do

How we do it

How we got here

Year in review

Chairman’s Statement

Chief Executive’s Report

Chief Financial Officer’s Report

governance

Board of Directors

Report of The Directors

Corporate Governance Report

consolidated financial 
statements

Report of the Independent Auditor

Consolidated Income Statement

Consolidated Balance Sheet

Consolidated Statement of 
Changes in Equity

Consolidated Cash Flow Statement

Notes to the Consolidated 
Financial Statements

comPanY financial 
statements

Report of the Independent Auditor

Company Balance Sheet

Notes to the Company  
Financial Statements

04

06

08

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14

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24

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31

36

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82

83

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shareholder information

Notice of  
Annual General Meeting

Financial Calendar

Company Information

90

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02

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

operations & 
infractructure 
support

AssetCo has an established track record in 
providing integrated operational support services, 
including those provided direct by the AssetCo 
team and management of those provided by other 
third party support service organisations.

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

03

in this section:

Who we are

What we do

How we do it

How we have done

04 

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04

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

who we are

assetco has pioneered the development of one of the most 
extensive ranges of integrated support services available to 
the emergency response and homeland security organisations 
in the uK and internationally.

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

05

Our services are structured around our client needs, with the experience of an 
AssetCo team that has led the market in providing a unique menu of products, 
training and integrated support services. 

We have a reputation built on innovation, partnering and best value solutions, 
with an understanding of the ever-changing challenges that our clients face. 

Our approach involves matching specific clients needs, people, processes and 
systems with our support service options, and then integrating these to deliver 
value for money solutions. 

Our services are structured around 3 main areas of business operation:

• 

integrated support services

• 

specialist equipment

• 

vehicle assembly

20 years 

Private Finance Initiative contract

20 years 

£500,000 

Public Private Partnership contract

Training contract

AssetCo has a 20-year PFI  
contract with London Fire and 
Emergency Planning Authority 
(LFEPA) to provide London Fire 
Brigade (LFB) with a full suite of 
Integrated Support Services.

AssetCo has a 20-year Public 
Private Partnership contract to 
provide a full suite of Integrated 
Support Services to Lincolnshire 
Fire and Rescue Service. 

In 2008, AssetCo secured  
contracts from LFB for Swift Water 
and Flood Rescue Training. This 
contract, worth up to £500,000, will 
cover the largest corporate swift 
water training programme in the UK. 

market 
leader

only uK 
supplier

144 
countries

AssetCo is the UK market leader 
in build management and vehicle 
assembly for Ambulance and 
Emergency vehicles to the UK 
Ambulance Service.

AssetCo is the only UK supplier to 
be awarded Government Framework 
Agreements for appliances, 
platforms and emergency response 
equipment.

AssetCo is the leading supplier of 
detection and security equipment 
support services into the UK, and to 
British Embassies and Consulates in 
144 countries around the world.

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06

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

what we do

integrated support services 
Our Integrated Support Services business has been 
established to bring our clients maximum value from the 
integration of private and public resources. Our consultative 
approach is designed to understand our clients existing 
skills, knowledge and resources, and then combine this with 
innovative solutions that includes the provision of people, 
training, technology and support services.

specialist equipment 
Based at our facility in Cambridge, our Specialist Equipment 
business supplies both the UK and international markets 
with leading branded products such as AS Ladders and 
Gantries, Collins Youldon Hose Reels, Holmatro Hydraulic 
Rescue Equipment and Todd Research Security and 
Detection Equipment.

operations & 
infrastructure support

technical rescue 
training

resourcing & 
emergency crews

AssetCo has an established track 
record in providing integrated 
operational support services, 
including those provided direct by 
the AssetCo team and management 
of those provided by other third 
party support service organisations. 
Our support has extended to areas 
such as call centre management, 
vehicle and equipment fleet and 
asset management, specialist 
procurement, equipment audit 
and compliance, facilities and 
premises management. 

AssetCo has an established 
reputation as one of the leading 
international suppliers of integrated 
technical rescue training, specialist 
emergency support crews and 
recruitment management. We train 
staff from both the emergency 
services and private industry sectors 
in the UK, the Middle East and Asia. 

Our professional development 
philosophy is based on the delivery of 
challenging, realistic and progressive 
training solutions. AssetCo is also a 
leading supplier of specialist rescue 
equipment to both private and public 
sector rescue teams.

Working with the emergency 
services and private sectors, in the 
UK and Internationally, AssetCo has 
an established reputation as one of 
the leading international suppliers 
of specialist rescue and emergency 
crews, and resource management 
advisors. Our resourcing 
management solution includes 
integrated risk management 
planning, resource planning and 
crew pre-selection, and if required 
recruitment and crew management.

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

07

vehicle assembly 
Our Vehicle Assembly business, based in Leeds, is  
the UK market leader in build management and vehicle 
assembly for Ambulance and Emergency vehicles to 
the UK Ambulance Service. 

technology & 
communications

build 
management

specialist 
equipment

AssetCo designs, installs and 
maintains integrated communication 
and operational systems across 
each of the emergency services 
and is the design authority for 
electrical communication systems 
for a specific range of the UK’s 
civil resilience fleet. Included in our 
options of operational management 
systems is M~Flow. M~Flow brings 
improved efficiencies and assists our 
clients in reducing their operational 
impact on the environment through 
a reduction in fuel usage and carbon 
emissions. M~Flow is now installed 
in many emergency services 
agencies around the UK.

AssetCo is a leading supplier of 
specialist vehicles and platforms to 
the emergency and other mission 
critical services. With a heritage 
built on over 60 years of vehicle 
build management, AssetCo uses 
the latest design technology and 
manufacturer information to deliver 
vehicles and platforms to meet the 
specific needs of our clients. Our 
skills and experience in procurement 
and supply chain management have 
been fully integrated to ensure our 
clients obtain the best value from 
their investment.

AssetCo is a UK leading supplier 
of specialist equipment to the 
emergency and mission-critical 
services. With the investments we 
have made in some of the latest 
integrated design and manufacturing 
technologies at our dedicated 
facilities in Cambridge, AssetCo’s 
specialist equipment business 
is able to offer one of the most 
efficient and comprehensive ranges 
of equipment from a single supplier. 

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AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

how we do it

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resourcing & 
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integrated 
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specialist equipment

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operations & asset management

“our experience in working with assetco under our 20-year ppp contract, is that they 
continually innovate their support services. this assists us in meeting the changing 
demands placed upon us fulfilling our integrated risk management plan (irmp) and those 
placed upon us by central government. the benefits of this integrated relationship are that 
whilst we maximises the value of the current integrated support services, we are jointly 
developing new initiatives that can bring additional resilience and robustness to lincolnshire 
fire and rescue service.”

mike thomas mbe – chief fire officer, lincolnshire fire and rescue service

 
 
 
 
 
 
 
 
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

09

we plan to grow by building on our existing integrated 
support service relationships, and by expanding and 
extending the reach of services into new client areas.

We have restructured our offering into a unique services menu that provides our clients with improved 
flexibility when selecting the type of product or level of support they need. This approach enables our 
clients to buy in discreet bundles, and allows them to avoid potentially long, complex and expensive 
procurement processes.

rising to the challenge

• 

• 

Fire services have a target to save £110 million 
by 2011. This is equivalent to 5 per cent of their 
2007/08 expenditure.

But they could save up to £200 million a year  
if all fire services adopted good practice from 
pioneering fire services.

• 

• 

• 

Most of the above average savings have come from 
making changes to crewing and shift arrangement.

They could save more by sharing good practice 
and collaborating on training, procurement and 
other back office services.

They should adopt good ideas for improving 
efficiency from other fire services, or adapt  
them to their own circumstances.

uK fire & rescue authorities – total expenditure

 Employees and training £2.2bn
 Premise related £120.1m
 Transport £109.1m
 Supply and services £185.1m
 Third party payments £12.7m
 Support Services £67m
 Other £13m
Total = £2,707bn

outlook

• 

• 

• 

The continuing difficult economic outlook creates 
the ideal opportunity to demonstrate the economic 
and operational benefits of our integrated support 
services capabilities.

We are better placed than ever to support our 
clients face the challenges brought about by 
new statutory duties placed upon them and the 
increasing financial pressures applied through cuts 
in public spending.

Our continuing integrated relationship with both 
London and Lincoln has led to mutually beneficial 
support in terms of broadening our capabilities, 
developing new support services and increasing 
AssetCo’s share of their spend.

• 

• 

• 

Our support services are extending into new areas, 
including employee costs which currently represent 
around 82% of all FRA spend, and identified by 
the Government as where the real opportunity for 
savings reside.

We continue to support our business development 
activity in the Middle East, having secured 
investment to facilitate this.

Our long-term contracts continue to deliver robust, 
stable profits and remains resilient to the current 
economic climate.

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10

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

how we got here

the assetco road map

october 2003
AssetCo buys 
Papworth Specialist 
Vehicles

october 2003
John Shannon 
sells his fleet 
management 
business (FMI) 
to AssetCo

october 2002
TLG acquired 
by what is now 
known as Brook 
Henderson and the 
group is renamed 
AssetCo

2002

2003

2004

2005

february 2001
TLG plc wins £400m 
20 year PFI contract 
with the London Fire 
Brigade

2001

July 2003
Asfare Group 
admitted on to the 
AIM market

september 2003
AssetCo buys  
SVO (conversion  
of police cars)

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

11

11

november 2008
1.26m shares issued for 
the acquisition of AES

december 2008
TVAC placed into 
administration

november 2007
Acquired 25% of Miquest (equipment 
database management solutions)

november 2007
Acquisition of AES &  
 M~flow (emergency related  
technology systems)

november 2008
Acquired operating 
licence for Nene (fast 
water centre)

october 2005
John Shannon 
leads BIMBO 
of AssetCo’s 
emergency and 
fleet business

april 2007
Acquisition of Simentra 
(emergency services 
planning)

april 2006
AssetCo wins £60m 
20 year PPP with 
Lincolnshire Fire 
Service

may 2008
Disposal of 
Legacy fleet 
management 
business

march 2008
Acquisition  
of RIG 
(specialist 
rescue  
training)

January 2009
AssetCo win 
£4m North West 
Ambulance contract

January 2009
AssetCo wins 
£500,000 swift 
water and flood 
rescue contract

January 2009
Issues £15m 
convertibles to support 
business development 
in Abu Dhabi 

march 2009
AssetCo wins 
Malaysian Fire 
and Rescue 
ladder contract

2006

2007

2008

2009

2010

february 2008
£6.3m share 
issue

feburary 2009
AssetCo wins £7m 
London ambulance 
contract

feburary 2009
AssetCo wins 
Northumbrian 
Police contract

december 2007
Acquires TVAC 
(fire appliance 
assembly)

december 2007
Acquisition of  
UV Modular  
(ambulance 
assembly)

december 2006
AssetCo buys 
FSE (distributor 
of hydraulic 
equipment)

march 2007
Asfare buys AssetCo,  
takes name and reverses  
into AIM listing

march 2007
The enlarged AssetCo issues 
shares to raise £20m

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12

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

technical rescue 
training

AssetCo has an established reputation as one of the 
leading international suppliers of integrated technical 
rescue training, specialist emergency support crews  
and recruitment management. We train staff from both 
the emergency services and private industry sectors  
in the UK, the Middle East and Asia. 

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

13

in this section:

Chairman’s Statement

Chief Executive’s Report

Chief Financial Officer’s Report

14 

16

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14

AssetCo plc Annual Report & Accounts 2009
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AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

chairman’s statement

“it has been a year of progress for the group on many fronts 
during which we have seen an increase in profit before 
tax of 25%”.

It has been a year of progress for the Group on many fronts, 
during which we have seen an increase in profit before tax 
of 25 per cent to £11.3million and EPS of 33 per cent to 
14.0 pence. In what has been a very challenging economic 
environment, we have continued to grow our long-term PFI 
contracts with the London and Lincolnshire Fire and Rescue 
Authorities by further increasing the scope of our offering. 
We have developed a more integrated approach which 
draws on the wider skills and experience now available 
within the Group. Whilst some fire authorities want all their 
support needs catered for them on a large scale, others 
wish to avail themselves of support services and products in 
more discrete bundles, and, accordingly, we have increased 
our flexibility to offer a menu of options to meet different 
customers’ needs in this regard.

Another major focus for the year has been the re-organisation 
and rationalisation of our manufacturing operations. Six 
subsidiaries have been brought together to create an 
integrated equipment centre in Cambridge which now 
designs and supplies a range of fire-fighting equipment, 
including ladders and gantries, hose-reels, rescue and lighting 
equipment and, if our client requires it, the assembly of fire 
vehicles. The design and supply of ambulances is now solely 
carried out in Leeds. The management challenges involved 
in this re-organisation were significant and it undoubtedly 
disrupted parts of the Group for significant periods during 
the year. Our original objective was two-fold; to strengthen 
and secure the supply chain for vehicles and equipment on 
behalf of our integrated support services customers in the 
fire service, in what was a fragmented and uncompetitive 
market-place; and to improve internal operational efficiencies. 
Although there are still improvements that we intend to make, 
we are pleased that we have achieved our original objective.

We have also continued to pursue the opportunities 
we believe exist for our integrated support services in 
Abu Dhabi. We have always been conscious that these 
opportunities would develop over a medium rather than 
short-term time-frame. We have an established presence  
on the ground there and have gained valuable experience 
and contacts. We have every reason to believe that our  
initial assessments will be borne out.

profit before tax

25%

£11.3m (2008: £9.4m)

dividend increase

25%

1.25p (2008: 1.0p)

eps from continuing operations

33%

14.0p (2008: 11.8p)

ebitda before exceptionals and discontinued

14%

£25.5m (2008: £23.1m)

fall in net debt

9.4%

£76.0m (2008: £83.9m)

fall in net recourse debt

52%

£12.5m

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

15

On the financial management front we have been 
concentrating on improving working capital and cash 
management and rationalising our debt structure and this 
focus will continue in the current financial year. 

results
Profit before tax and restructuring costs has increased by 
22 per cent in 2009 to £12.8 million (2008: £10.5 million) 
with earnings per share improving by 33 per cent to 14.0 
pence (2008: 10.5 pence). EBITDA before restructuring  
has increased by £3.5 million to £25.5 million. Operating 
cash conversion (as defined in the report of the Chief 
Financial Officer) prior to restructuring payments from 
continuing operations during the period was 100 per cent 
(2008: 84 percent). Net debt at the year end stood at 
£76 million (2008: £83.9 million) a reduction of 9.5 per cent. 
Of this amount, £62.8 million (83 per cent) was non-recourse 
asset backed debt that relates to our long-term emergency 
services contracts.

dividend
The directors are recommending an increased dividend 
of 1.25 pence a share (2008: 1.0 pence). This increase 
reflects the higher earnings for 2009 and the board’s 
confidence in the Group’s prospects. 

board
I would like to take this opportunity to formally welcome 
Peter Manning, who joined the board as a Non-executive 
Director on 2 September 2008. Peter has extensive 
international experience in senior operating and customer 
focused roles in business process outsourcing and in service 
and technology industries. He is a Fellow of the Institute of 
Electrical Engineers, a Fellow of the Institute of Directors 
and a Liveryman of the City of London. 

staff 
We now have 540 people working for AssetCo and they 
are motivated to do their very best to deliver high quality 
integrated support services and products to our existing 
and future clients. This is central to our success and without 
the diligence and spirit shown by our staff, working as a 
team, we would not have been able to deliver this year’s 
performance. On behalf of the board, I would like to thank 
them all sincerely for their hard work.

current trading
Trading in the first two months of the new financial year  
is in line with the Board’s expectations. We currently have 
75% of the current year’s forecast revenues secured.  
Our vehicle assembly business in Leeds is at full capacity  
for the next two years and our Abu Dhabi office is fully 
embedded and staffed. Looking forward, we will look to 
improve working capital management and also increase 
cash generation and retention.

outlook
We have restructured and reorganised our businesses 
significantly in 2008/2009 and despite this have shown  
a significant increase in profitability. We see the continuing 
difficult economic outlook as an ideal opportunity to 
demonstrate the economic and operational benefits  
of our integrated support services capabilities. 

We are better placed than ever to support our clients 
in facing the challenges presented by new statutory  
duties placed upon them and increasing financial  
pressures through cuts in public spending.

Our markets continue to generate opportunities  
and our sales prospects nationally and internationally  
are exciting. AssetCo is well positioned to benefit from  
a changing market, offering good opportunities for delivering 
exceptional long-term value to shareholders. The Board, 
therefore, looks forward to the current year with confidence.

tim wightman
Chairman

15 June 2009

“assetco is well positioned to benefit 
from a changing market, offering 
good opportunities for delivering 
exceptional long-term value to 
shareholders.”

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AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

chief executive officer’s rePort

“our integrated support services business, which has been 
“our long-term contract activity delivers robust, stable profits 
shaped and nurtured as our engine for growth, delivered an 
and remains resilient to the current economic climate.”
increase in profit of 68% on 2008.”

As we enter a period of unprecedented UK Public Sector 
fiscal pressure, the expansion and extension of our 
integrated support services offering continues to position 
the business for long-term sustainable growth. During the 
past year we have focused our efforts in broadening our 
capabilities and support services to meet the medium and 
long-term requirements of our two key clients, London 
Fire Brigade (London) and Lincolnshire Fire and Rescue 
Service (Lincoln). Our Integrated Support Services business 
performance reflects the range of services now offered to 
those clients. This business, which has been shaped and 
nurtured as our engine for growth, delivered an increase 
in profit of 68% on 2008.

My congratulations go to the Commissioner, Ron Dobson, 
and his Team at London Fire Brigade, who earlier this 
year, were given the top “excellent” rating by the Audit 
Commission and to Chief Fire Officer, Mike Thomas and his 
Team at Lincolnshire Fire and Rescue Service, who made 
a virtually unprecedented move of three categories up the 
ratings ladder. As budgetary pressures increase, and with 
service performance being closely scrutinised, other senior 
colleagues will be looking at how well these support service 
models are performing and I believe this has enormous 
potential for AssetCo.

As well as a value proposition built around long-term 
contracts and the provision of a comprehensive suite of 
integrated support services, we are now also able to offer 
our support services in a menu of discrete bundles. This 
menu has been structured around our client needs with 
the experience of an AssetCo team that has pioneered the 
approach of matching people, processes and systems with 
an extensive and brand independent range of products and 
support services to deliver innovative integrated solutions.

With a reputation built on partnering and bringing best value, 
and with an unrivalled understanding of the challenges that 
our clients face, we have developed our services so they 
can be tailored to meet the specific needs of individual Fire 
and Rescue Services. Our menu approach also reduces 
the requirement for our clients to enter long, complex and 
expensive tendering processes. 

During 2007, we decided that to ensure the provision of 
reliable support services for our clients we had to expand and 
strengthen our equipment supply chain; not to do so could 
have made us vulnerable to missed performance targets. 

segmental analysis

revenue 
2009

revenue  
2008

15%

21%

36%

49%

28%

51%

profit before tax 
2009

profit before tax 
2008

11% 4%

13%

20%

85%

67%

 Vehicle Assembly
 Integrated Support Services
 Specialist Equipment

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

17

“our strategy is to prioritise our efforts on those essential 
support services accountable for high proportions of our 
clients’ cost base.”

During the year, we have re-organised and rationalised the 
manufacturing operations we acquired in December 2007 
and the manufacturing businesses that were already in the 
Group. We have created a specialist integrated equipment 
centre in Cambridge which designs and supplies a range of 
fire-fighting equipment including ladders and gantries, hose-
reels, and rescue equipment and, if our clients require it, the 
fitting-out of fire vehicles and specialist platforms. The design 
and supply of ambulances is now solely carried out at our 
vehicle assembly facility in Leeds. 

The impact of the disruption caused during the year has been 
painful for the personnel affected by re-location and redundancy 
and also financially for the Group. This involved the closure of 
TVAC, a business acquired in December 2007. Although there 
are still improvements to make, we have achieved what we set 
out to do, namely to strengthen and secure the supply chain 
for vehicles and equipment on behalf of our integrated support 
services clients in the fire service, in what was a fragmented 
market-place and to improve internal operational efficiencies. 

strategy
The combination of the 2009 April Budget Report and the 
recommendations of the 2007/8 Comprehensive Spending 
Review increases the requirement on UK Fire and Rescue 
Authorities to deliver efficiency savings from continuing 
modernisation at a greater pace than initially planned.

Our strategy is to prioritise our efforts on those essential 
support services accountable for high proportions of our 
clients’ cost base. Our approach is to offer integrated 
solutions that assist our clients in delivering these savings, 
either directly through economies of scale or efficiency 
savings, or indirectly through shared services or long-term 
gain-share arrangements. 

By leveraging off our established track record in being a key 
operational support partner to our two long-term clients and 
the wider UK Fire and Rescue Service, it is our intention to 

develop solutions that enable our clients to have access  
to alternative delivery models for operational training and 
front-line operational services.

Overseas, we will continue to develop relationships with Fire 
Authorities who look to UK Fire and Rescue and London 
Fire Brigade in particular as operating templates to deliver 
change and improvement.

We have initiated a strategic review of both our Specialist 
Equipment and Vehicle Assembly businesses, to ensure 
each is correctly positioned, structured and supported to 
deliver the long-term growth from their current positions 
as market leaders in their respective sectors.

operating performance
As the business has evolved to meet the current and future 
needs of our client base, we have established three distinct 
operating units – Integrated Support Services, Specialist 
Equipment and Vehicle Assembly.

integrated support services 
Our Integrated Support Services business contains our long-
term contract, specialist training and technology activities. We 
continue to deliver strong growth through this business, with 
the benefits of our early investment in improved systems and 
people now coming through. The scope of our activities with 
both London and Lincoln continues to broaden.

specialist equipment 
The performance of our Specialist Equipment business reflects 
the re-organisation and integration programme initiated and 
completed during FY09. We relocated all our equipment 
businesses to one single site in Cambridge with a corresponding 
disruption in revenue for the businesses but improved 
margin as the benefit of integration began to come through. 
We are now positioned as one integrated business offering a 
range of market leading products to our Clients, which clearly 
differentiates us both in scale and product development.

integrated
support services

2009 
£m

% change 
on 2008

32.2

14.4

9.6

+29%

+48%

+68%

specialist
equipment

vehicle
assembly

2009 
£m

13.2

1.4

1.3

% change 
on 2008

2009 
£m

% change 
on 2008

 -28%

+15%

+15%

43

1.5

0.7

-4%

-30%

-61%

revenue

operating profit

profit before tax

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AssetCo plc Annual Report & Accounts 2009
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AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

chief executive officer’s rePort continued

“our long-term contracts deliver robust, stable profits 
and remain resilient to the current economic climate.”

vehicle assembly 
The performance of our Vehicle Assembly business reflects 
the exceptional level of build activity in FY08, and the lack of 
order book in place at our facility in Leeds when we acquired 
the business in December 2008. Significant success has been 
made in not only correcting the cost base in this business but 
critically in winning new business. This facility is now running  
a record order book with revenue visibility through to 2012.

current trading
Trading in the first two months of the new financial year 
is in line with the Board’s expectations. 

The key focus across the business for 2010 is cash 
generation and retention, with significant efforts being  
made to improve working capital management. Each 
operating entity is now managed as an autonomous 
business and is self sufficient for funding.

We continue to actively support our business development 
activity in the Middle East, having secured investment to 
facilitate this.

outlook
We are well placed to benefit from the macro-economic 
pressures facing our core home market, and consider our 
Integrated Support Services business to be a compelling 
proposition for both existing and potential long-term clients 
both at home and overseas.

Our long-term contract activity delivers robust, stable profits 
and remains resilient to the current economic climate. 

John shannon
Chief Executive Office

15 June 2009 

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

19

chief financial officer’s rePort

“the debt has fallen from £89.9m in fy08 to £76m in fy09.”

business review
I am pleased to report an excellent set of results for  
the year ended 31 March 2009 (FY09) which has been  
a year of consolidation following the acquisitions made 
in FY08. The backdrop to FY09 was the turmoil in the  
financial markets, which has seen the fundamentals of 
 the banking structure in the UK changed radically and 
creates challenges for all businesses in the UK. 

Key performance indicators
The Board monitors the Group’s Key Performance Indicators 
which are summarized to the left for FY08 and FY09.

profit before tax from continuing operations
Profit before tax from continuing operations of £11.3m has 
increased by 26% from £9m. The increase in profit is due 
to the continued growth of our long-term contracts. FY08 
numbers have also been adjusted for TVAC, which is now 
included in discontinued operations.

ebitda
Earnings before interest, tax, depreciation and amortisation 
have increased by 10% to £25.5m. 

basic eps
Basic earnings per share from continuing operations have 
increased by 33% to 14.0p.

net debt
The debt has fallen from £83.9m in FY08 to £76m in FY09 
and this is analysed in the table below:

Asset finance – 
emergency

Asset finance –  
non emergency

Acquisition and other 
medium term loans

Short term loans  
and overdrafts

Less cash

Net debt

2009

2008

61.6m

55.3m

1.2m

2.8m

32.0m

25.6m

3.7m

(22.5)m

76m

13.1m

(12.9)m

83.9m

£62.8m (83%) of our net debt is non-recourse asset backed 
debt which relates to our long term integrated support 
services contracts. As is mentioned in the Chairman’s 
and CEO’s reports these contracts continue to grow and 
accordingly the levels of asset finance required reflect this. 

Key performance indicators

2009

2008 variance

variance
%

profit before tax 
from continuing 
operations

11.3m

9.0m

ebitda

25.5m 23.1m

2.3m

2.4m

26%

10%

basic earnings 
per share from 
continuing 
operations

14.0p

10.5p

3.5p

net debt

76m 83.9m (7.9)m

cash 
conversion

100%

staff turnover

5.1%

84%

9.1%

16%

(4)

33%

9.5%

19%

44%

breakdown of net debt

£62.8m: 83%

£21.1m: 17%

non-recourse, asset 
finance debt

group debt

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AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

chief financial officer’s rePort continued

“cash conversion, the ratio of cash generated from operating 
activities to operating profit before exceptional items and 
discontinued operations, has increased significantly from 
84% in fy08 to 100% in fy09.”

historical performance

2009
£m

79,659

36,154

45

2008
£m

2007
£m

64,546

90,628

32,925

22,190

51

24

revenue

gross profit

gross profit %

admin expenses

(17,208)

(17,450)

(16,136)

restructuring 
costs

(1,516)

(1,549)

–

operating profit

17,430

13,926

6,056

operating profit 
%

22%

22%

7%

finance costs

(6,152)

(4,944)

(2,780)

profit before tax

11,278

8,982

4,336

taxation

profit

(1,135)

(1,860)

(2,211)

4,954

8,037

2,125

assetco site locations

2008

2009

• 
• 

• 

• 
• 

• 
• 
• 
• 

• 

• 

• 
• 
• 
• 
• 
• 
• 
• 

AssetCo HQ – London                                                                                     
Marine Maintenance – 
London
Barking Maintenance 
Facility
AssetCo Lincolnshire                                              
Papworth Specialist 
Vehicles – Cambridge        
FSE – Nottingham
Collins Youldon – Harlow
AS Fire – Southampton
Todd Research – 
Chelmsford
AssetCo Vehicle 
Assembly – Leeds 
AssetCo Managed 
Services – ROI   
Mallusk
Craigavon
Omagh
Derry
Cornwall                                                    
Manchester 
TVAC – Leyland 
TVAC – Leyland*

• 
• 

AssetCo HQ Ruislip                                             
Marine Maintenance – 
London

• 
• 

AssetCo Lincolnshire 
Equipment centre – 
Cambridge

• 

• 

• 

AssetCo Vehicle 
Assembly – Leeds
AssetCo Managed 
Services – ROI
Mallusk

• 
• 
• 

Cornwall                                                   
Manchester
Leyland

19

*Second site

11

We are continually reviewing our debt structures to enable 
the business to meet the debt requirements of our core long 
term contracts – London Fire and Lincoln Fire.

During the last 12 months, as we have proactively worked 
on our “cash optimisation plans”, a number of new debt 
structures were put in place which resulted in an increase 
in our medium term debt from £25.6m to £32m and we  
also were able to reduce our dependence on short term  
debt from £13.1m to £3.7m.

cash conversion
Cash conversion, the ratio of cash generated from operating 
activities to operating profit before exceptional items and 
discontinued operations, has increased significantly from 84% 
in FY08 to 100% in FY09. In absolute terms this equates 
to cash generated from operating activities of £23.3m in 
FY09 (before restructuring payments of £3.1m and earn 
out payments of £1.8m) compared to £1.6m in FY08. This 
growth is reflective of the increased working capital focus 
of the Group and also the streamlining of cash generation 
processes across the acquired subsidiary businesses.

staff turnover
This is calculated excluding redundancy programmes  
and at 5% is 45% lower than the FY08 figure of 9.1%.

historical performance
See table to the left.

Revenues decreased from FY07 to FY08 as we exited from 
non-emergency activity which has continued in FY09. FY09 
revenues increased as we had the benefit of a full year’s 
activity from our acquisitions in FY08.

Gross profit decreased slightly as the full year revenues from 
the acquired businesses was related largely to lower margin 
vehicle assembly.

Admin expenses, though relatively unchanged  
in FY09 compared to FY08, benefited from our  
continuous improvement projects and the synergies  
from our site rationalisation programme. We expect  
them to reduce further. 

As part of our acquisition strategy in FY08 we acquired a 
number of businesses and we planned to deliver synergies 
from these acquisitions by reducing head count and site 
locations. In January 2008 we were employing directly and 
indirectly (temporary workers) 1,100 people and the plan 
was to reduce this number to 700. This has been achieved 

 
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

21

and with the closure of TVAC – In Administration head 
count was reduced further to 600. On an ongoing basis 
we are aligning our head count and cost base with the 
prevailing order books of our respective businesses and 
the plan is to reduce the head count to 500 by the end of 
September 2009. Our staff costs are our largest cost and 
we continually review these to ensure they are flexed in line 
with our revenues.

north atlantic value llp (nav) investment 
As part of our ongoing investment in Abu Dhabi, we were 
delighted to be able to raise £15m in January 2009 at a 
20% premium to the prevailing share price. The funding was 
to assist us with our contract negotiations in Abu Dhabi and 
with our ongoing development of business relationships in 
this territory and is a strong endorsement of our business 
model in the region.

The investment was in zero coupon preference shares 
which are repayable in 5 years time although there are 
warrants associated with the shares which can be converted 
into AssetCo plc shares at 61.2p. AssetCo can repay the 
preference shares, under certain conditions on the first 
and second anniversary and one third and two thirds of the 
warrants vest on these dates. After this date,100% of the 
warrants are available to JO Hambro.

frank flynn
Chief Financial Officer

15 June 2009

The substantial reduction in staff number and locations  
has resulted in a further one off restructuring charge in 
FY09 of £1.5m. 

acquisition update
The material acquisitions made in FY08 were TVAC, 
UVM and AES.

tvac
In the interim statement, we reported that TVAC had 
continued to make losses and absorb cash and that the 
Board had instigated a strategic review of the business.  
The outcome of this review was that TVAC showed no  
signs of being viable and accordingly the company was  
put into administration on 18 December 2008. This 
resulted in a £5.2m loss which is detailed in the Income 
Statement and also caused a considerable drain on the 
group’s cash resources. TVAC, which was in distress at  
the time of its acquisition, was acquired because it was  
a large supplier to AssetCo London supplying fire 
appliances for the largest build programme undertaken in 
UK Fire in FY07 and FY08. Failure to deliver to vehicles 
on time could have resulted in substantial penalties for 
AssetCo. Following the acquisition of TVAC, the deliveries 
were completed on time, however the business continued 
to need ongoing cash support from the parent company. 

uvm 
On a more positive note, UVM, the ambulance assembly 
business has been returned to profitability and has a record 
order book including the previously announced orders from 
the Scottish and North West Ambulance Trusts. It also 
required substantial Group support. 

aes 
AES was acquired because of the potential of its “M~Flow” 
telemetry product which has been enthusiastically received 
by the Police and Fire authorities and is currently being 
rolled out across London and Lincoln Fire’s fleet. There  
are great opportunities for this technology. 

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AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

resourcing 
& emergency 
crews

Working with the emergency services and 
private sectors in the UK and Internationally, 
AssetCo has an established reputation as one 
of the leading international suppliers of specialist 
rescue and emergency crews, and resource 
management advisors.

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

23

resourcing 

& emergency 

crews

in this section:

Board of Directors

Report of the Directors

Corporate Governance Report

24

26

31

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24

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

we are better placed then ever to support our clients in facing 
the challenge of increasing financial pressure applied through 
through cuts in public spending.

timothy redmayne wightman 
chairman
Tim Wightman (aged 61) is currently 
Non-executive Chairman of Petards 
Group plc, an AIM quoted company 
and was Non-executive Chairman of 
Digica Group Holdings Limited, an 
IT outsourcing company backed by 
Bridgepoint Capital, until its sale to 
Computacentre plc in January 2007. 
In 2000, as Chief Executive Officer, 
he led a management buy-in of 
Knurr A.G., a German manufacturing 
business listed on the Munich Stock 
Exchange. Prior to that, he was Chief 
Executive of Rubicon Group plc, a 
company listed on the London Stock 
Exchange, from 1992 until its sale 
to Applied Power Inc. in 1998 when 
he became Senior Vice President of 
Applied Power Inc. and President of 
APW Enclosure Systems Division. 
From 1988, he was Chief Executive of 
CAS Group plc, a 3i backed business, 
until its sale to Intrum Justitia BV 
in 1992. Prior to that he worked at 
Yule Catto & Co. Ltd, Chloride Group 
plc and Lloyds Bowmaker plc, where 
he became Managing Director of the 
Personal Lending Division. He holds an 
engineering degree and an MBA. 

John shannon
chief executive officer
John Shannon (aged 43) led the 
reverse takeover of AssetCo Group 
Limited of Asfare Group plc (now 
AssetCo plc) in March 2007. Prior  
to this, he led the BIMBO of AssetCo 
Group Limited in October 2005. 
He acquired Star Rentals Limited 
in 1997 and by January 2000, 
following the acquisition of the Lex 
Transfleet subsidiary in Northern 
Ireland, Chart Hire Services Limited, 
had formed Northern Ireland’s largest 
independent commercial vehicle hire 
company, FMI. Upon selling FMI to 
AssetCo he became a board member 
of AssetCo and managing director of 
AssetCo (Ireland) Limited, AssetCo 
Emergency Limited and AssetCo 
Vehicles Limited. Until 1996, he 
worked in Bank of Ireland’s Corporate 
and International Banking division, 
prior to which he worked at KPMG. He 
holds a BSc (Hons) in Marine Biology, 
is a fellow of the Institute of Chartered 
Accountants in Ireland, a fellow of the 
Institute of Logistics and Transport, a 
member of the Institute of Bankers  
and holds an MBA. 

frank flynn 
chief financial officer
Frank Flynn (aged 45) was part of the 
team that acquired the AssetCo Group 
Limited (now AssetCo plc) in October 
2005. In the four years leading up to the 
BIMBO, he was an associate partner at 
PricewaterhouseCoopers (‘‘PwC’’) with 
specific focus on realising shareholder 
value. He was responsible for activities 
in PwC’s Omagh and Derry offices 
and managed human resources for 
Northern Ireland Assurance, a division 
of PwC employing over 300 people. 
He also managed a portfolio of audit 
clients. Prior to this, he worked for three 
years within the corporate finance 
division of the Industrial Development 
Board for Northern Ireland. He also 
spent six years with Crescent Capital/
Hambro Northern Ireland Venture 
Capital Fund as an investment 
manager and was a non-executive 
director of UP Holdings Limited and 
Toughglass Limited. He holds a BSc 
(Hons) in Business and Accountancy; is 
a fellow of the Institute of Chartered 
Accountants in Ireland and was 
a licensed Insolvency Practitioner. 

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

25

adrian effland bradshaw
non-executive director
Adrian Bradshaw (aged 50) is 
currently and has been a Director 
of a number of public and private 
companies. He previously worked for 
Citicorp Scrimgeour Vickers, NatWest 
Markets and Guidehouse Limited 
and in 1989 he was appointed Head 
of Corporate Finance at Arbuthnot 
Latham Bank. In 1991, he became 
Chief Executive of Incepta Group 
plc before establishing Bradmount 
Investments Limited in 1993 as a 
private investment company where 
he has been involved in a number of 
flotations, notably GW Pharmaceuticals 
plc, RWS Group plc, Medical Solutions 
plc and Atlantic Global plc. He holds a 
BA (Hons) in law. 

5. peter david manning 
non-executive director
Peter David Manning (age 53), 
has extensive international  
experience in senior operating  
and customer focused roles in 
business process outsourcing and  
in service and technology industries. 

Between 2004 -2007, he was 
Chief Executive of HBS Ltd, a 
business owned by Terra Firma 
Capital Partners providing business 
process outsourcing to the Local 
Government sector in the UK, which 
was subsequently sold to Mouchel 
Group plc. Before joining HBS Ltd, 
from 1999-2003, Peter was President 
and Chief Executive Officer of COLT 
Telecom PLC, the Pan-European 
telecom operator and from 1996-
1999, President and Chief Executive 
Officer of the US-based telecoms 
group Concert Communication Inc. 
based in Virginia, USA. His early career 
was at British Telecom where, between 
1994 1996, he was Chief Operating 
Officer of BT Europe. 

Peter has a BSC (Hons) Computer 
Science, is a Fellow of the Institute 
of Electrical Engineers, a Fellow of  
the Institute of Directors and a 
liveryman of the City of London.

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26

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

rePort of the directors

The directors present their annual report and the audited 
financial statements of the Company, and its subsidiary 
undertakings included in the consolidation (together “the 
Group”), for the year ended 31 March 2009.

principal activities
The principal activity of the Group is the provision of 
management services to the emergency services market. 
Other Group companies are engaged in automotive 
engineering, the provision of asset management services 
and the supply of specialist equipment and other services to 
the emergency services market.

There have been no significant changes to the principal 
activities of the Group companies during the year.

The subsidiaries, associated undertakings and joint ventures 
affecting the profits or net assets of the Group during the 
year are listed in Notes 30 and 31 to the financial statements.

review of business and future developments
Further information relating to the performance of the 
business, and an indication of likely future developments, 
is given in the Chairman’s Statement and the reports of the 
Chief Executive Officer and Chief Financial Officer.

The directors use various Key Performance Indicators 
(“KPIs”) to measure the performance of the business.  
The principal financial and non-financial indicators include 
EBITDA, earnings per share, net debt, conversion of profit 
before tax to cash and staff turnover. As outlined in the 
Report of the Chief Financial Officer, the directors are 
pleased with the Group’s performance against both the 
financial and non-financial KPIs.

results and dividend
The results for the year are set out in the consolidated 
income statement. This shows a Group profit after taxation 
of £4.954 million (2008: £8.037 million). 

The directors recommend a final dividend of 1.25 pence per 
share which, if approved, will be paid on 25 September 2009 
to eligible shareholders on the register at 28 August 2009.

capital structure
Details of the authorised and issued share capital, together 
with details of the movements in the Company’s issued 
share capital during the year, are shown in Note 24.

The Company has one class of ordinary share which carries 
no right to fixed income. Each share carries the right to one 
vote at general meetings of the Company.

There are no specific restrictions on the size of holding 
nor the transfer of shares, which are both governed by 
the general provisions of the Articles of Association and 
prevailing legislation. The directors are not aware of any 
agreements between holders of the Company’s shares that 
may result in restrictions on the transfer of securities or 
voting rights.

Details of employee share schemes are set out in Note 24.

The directors are not aware of any agreements between 
the Company and its directors or employees that provide for 
compensation for loss of office or employment that occurs 
because of a takeover bid.

Under its Articles of Association, the Company has the 
authority to issue 95,000,000 ordinary shares.

directors
The directors who held office during the year were 
as follows:

tim wightman 

(non-executive Chairman)

adrian bradshaw  (non-executive)

peter manning 

(non-executive – appointed 
 2 September 2008)

John shannon 

(Chief Executive Officer)

frank flynn 

(Chief Financial Officer)

Tim Wightman, Adrian Bradshaw and Peter Manning each 
serve on the Audit Committee, Remuneration Committee 
and Nominations Committee. The responsibilities of these 
committees are outlined in the “Corporate Governance” 
section of the Annual Report.

In accordance with the Articles of Association, Peter 
Manning was appointed a director during the year by 
the Board, will retire and, being eligible, seek election 
by shareholders.

Tim Wightman and Frank Flynn retire by rotation and 
each will being eligible, offer himself for re-election 
at the Annual General Meeting in accordance with 
the Articles of Association.

 
 
 
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

27

directors’ shareholdings
The interests of the directors in the shares of the Company 
were as follows:

at 31 march
2009

At 1 April
2008

executive directors

John Shannon (1)

26,963,327

26,963,327

Frank Flynn

7,175,000

7,175,000

non-executive directors

Tim Wightman (2)

Adrian Bradshaw (3)

Peter Manning

532,083

267,917

28,846

532,083

267,917

–

(1) 

John Shannon is interested in 26,963,327 of the ordinary 
shares set out against his name by reason of his interest 
in the Shannon Trust and Shannon Heritage Trust.

(2) 

 Tim Wightman is interested in 158,333 of the ordinary 
shares set out against his name by reason of his wife’s 
beneficial ownership of those shares.

(3) 

 Adrian Bradshaw is interested in 16,667 ordinary shares 
set out against his name, held in the Bradmount SSAS 
pension scheme.

On 2 September 2008 Peter Manning purchased 28,846 
ordinary shares.

Otherwise no changes took place in the interests  
of directors between 31 March 2008 and the date  
of approval of these financial statements.

The market price of the ordinary shares at 31 March 2009 
was 28.5 pence (2008: 176 pence) and the range during 
the year was 27.75 pence to 197.5 pence.

No director has or had a material interest in any contract  
or arrangement to which the Company, or any subsidiary,  
is or was a party.

changes to concert party
Immediately following the re-admission of the Company’s 
Ordinary Shares to trading on AIM in March 2007,  
a concert party led by John Shannon and Frank Flynn  
(the “Original Concert Party”) owned 42,427,589 Ordinary 
Shares in AssetCo, which at that time carried 63.2 per 
cent of the Company’s voting rights. Full details of the six 
members of the Original Concert Party and their respective 
shareholdings and percentage interests were set out in the 
Company’s Admission Document dated 6 March 2007.

Since then certain members have left the Original Concert 
Party and its membership is now considered to comprise only 
John Shannon and Frank Flynn (the “Revised Concert Party”). 
The Revised Concert Party currently holds 34,188,327 
Ordinary Shares in AssetCo, which carry 46.6 per cent of the 
Company’s voting rights. The current respective shareholdings 
and percentage interests of John Shannon and Frank Flynn 
are set out in the Directors’ Report on page 27.

As a result of the fall in the Revised Concert Party’s 
shareholding to below 50% of voting rights in the Company, 
the Revised Concert Party is no longer generally able to 
increase its aggregate interests in AssetCo ordinary shares, 
nor may the remaining members increase their individual 
interests, without the Revised Concert Party incurring an 
obligation under Rule 9 of the Takeover Code to make a 
general offer for the Company. 

directors’ indemnities
There are no third party indemnity provisions for directors in 
place during the year or at the date this report is approved.

service contracts
The executive directors, John Shannon and Frank Flynn, 
were awarded service contracts on 5 March 2007 of 
unlimited duration which are terminable, at any time by either 
party, by giving written notice of six months.

Two of the non-executive directors, Tim Wightman  
and Adrian Bradshaw, were awarded service contracts  
on 5 March 2007 for two years and thereafter terminable  
on written notice of three months by either party. Peter  
Manning joined the Group as a non executive director on  
2 September 2008 and as with Tim and Adrian has a service  
contract terminable by three months notice by either party.

The terms and conditions of appointment of the  
non-executive directors are available from the  
Company Secretary.

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28

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

rePort of the directors continued

share options
The Group currently has share options for the Company’s shares which were granted to directors and other senior 
employees. The number of share options currently in existence is 1,352,603 as detailed in the table below.

name

Tim Wightman

Adrian Bradshaw (1)

Other employees

Other employees

Other employees

Other employees

Other employees

Other employees

parties exercise price no. of shares

exercise period

Director

Director

Other

Other

Other

Other

Other

Other

100p

100p

145p

230p

300p

230p

300p

105,000

105,000

698,103

120,000

160,000

5 December 2003 to 4 December 2013

5 December 2003 to 4 December 2013

30 March 2010 to 29 March 2017

31 July 2010 to 30 July 2017

31 July 2010 to 30 July 2017

100,000

23 November 2010 to 22 November 2017

40,000

23 November 2010 to 22 November 2017

204p 

24500

29 November 2010 to 28 November 2017

1,352,603

(1) 

The options set out against the name of Adrian 
Bradshaw were granted to Bradmount Investments 
Limited acting as nominee for Adrian Bradshaw and 
Peter Mountford in equal shares. Both Adrian Bradshaw 
and Peter Mountford are directors and shareholders of 
Bradmount Investments Limited.

During the year, no share options were issued. 

No share options were exercised during the year.

A total of 466,724 share options were forfeited during the year. 

substantial shareholdings
At 15 June 2009 the Company Secretary has been 
notified, in accordance with Chapter 5 of the Disclosure 
and Transparency Rules (“DTR”) as issued by the Financial 
Services Authority, of the following interests of 3% or more 
in the issued ordinary share capital of the Company:

shareholder

Shannon Trust

no. of shares

16,177,996

Shannon Heritage Trust

10,785,331

Frank Flynn

7,175,000

Schroder Investment 
Management Limited

David Smith

Oryx International Growth 
Fund Limited

4,350,000

2,775,637

% of issued 
share capital

22.5%

15.0%

9.85%

5.93%

3.2%

2,250,000

3.07%

charitable donations
During the year, the Group made donations of £nil (2008: 
£17,892) to local charities serving the communities in which 
the Group operates.

political donations
No political donations (2008: £nil) were made during the year.

principal risks and uncertainties
The directors continuously monitor the business and 
markets within which the Group operates in order to deal 
with any significant risks or uncertainties as they arise. 

Although it is not possible to mitigate all risks, all reasonable 
steps are taken to ensure that any adverse consequences 
associated with these risks are minimised.

The Board has developed internal processes for identifying, 
evaluating and managing significant risks faced by the 
Group. The Board continues to develop a detailed risk 
register which identifies key strategic, financial and 
operating risks affecting, or potentially affecting, the Group. 
Each risk is assigned to a member of the Board who is 
responsible for monitoring that risk.

The performance of all newly acquired businesses continues 
to be monitored closely as senior management implement 
continuous improvement programmes and embark on a 
series of reorganisations. The Group is in discussions with 
lenders about re-financing its Vehicles division as it seeks to 
move away from short-term asset-based facilities towards a 
more medium-term financing solution. Should the Group be 
unsuccessful in these negotiations, the Group has adequate 
cash resources to support the businesses until its profit 
improvement programmes take effect.

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

29

The Group has recently won some significant overseas orders 
and the Board is confident that further contracts will follow, 
particularly in Europe and the Middle East. The Group is 
actively considering ways in which its anticipated increased 
exposure to exchange rate fluctuations can be managed.

In a similar vein, the Group has recently concluded 
negotiations with its providers of finance which now means 
that approximately 80% of its borrowings carry interest at 
a fixed rate. 

The Group’s exposure to credit risk is insignificant due to 
the nature of its two core Private Finance Initiative and 
Public Private Partnership contracts. Both contracts are 
government-backed and so the risk of default by customers 
is considered to be remote.

Revenue from these contracts is secured through long-term 
arrangements. Cash flows in relation to these contracts can 
be forecast with a high degree of certainty. These contracts 
and other areas of the business continue to grow improving 
the cash flows of the Group and enhancing profitability. 
Expenditure in the emergency services market is expected 
to continue to grow and, following the successful completion 
of a number of acquisitions during the year, we are well 
placed to capture revenues in all sectors of the market. The 
establishment of an Emergency Resource team, tasked 
with exploring opportunities in an area where over 80% of 
the annual budget of a typical Fire and Rescue Authority is 
spent, demonstrates the Group’s commitment to the market.

Management monitors rolling forecasts of the Group’s 
liquidity reserves and cash and cash equivalents on the basis 
of expected cash flow. This is generally carried out at a local 
level in the operating companies of the Group. 

financial instruments
Information about the use of financial instruments by the 
Group is given in Note 23 to the financial statements.

financial risk
The Group’s approach to financial risk management and  
the financial risks it faces are summarised in Note 2.10  
to the financial statements.

going concern
Management routinely plan future activities including 
forecasting future cash flows. Management have reviewed 
their plans with the directors and have collectively formed a 
judgement that the Group has adequate resources to continue 
as a going concern for at least 12 months from the date of 
signing of the financial statements. In arriving at this judgement 
the directors have reviewed the cash flow projections of the 

Group for the foreseeable future in light of the trading and 
financing uncertainties in the current economic climate and 
have considered existing commitments together with the 
financial resources available to the Group. The Group also 
benefits from the surety of two major long term contracts which 
guarantee revenue streams for the next 14 years. This, aligned 
with a significant public sector client base gives comfort over 
future income streams and thus the going concern status of 
the Group. The directors have also considered the current 
global economic downturn together with the unprecedented 
markets for debt and equity financing at this time. The directors 
have considered all significant trading exposures and do not 
consider the Group to be significantly exposed to its trading 
partners, either clients or suppliers at this time.

The detailed profit and loss and cash flow budgets prepared 
by management for the period up to 30 June 2010 have been 
subjected to various sensitivity analyses and show that the Group 
is forecast to have more than sufficient headroom in that period. 

events after the balance sheet date
Details of significant events since the balance sheet date 
can be found in Note 34 to the financial statements.

acquisitions and disposals
Details of the Group’s acquisitions and disposals can be 
found in Note 33 to these financial statements.

property, plant and equipment
There is no material difference between the book value and 
the current open market value of the Group’s interests in 
land and buildings.

insurance cover
The Group maintains appropriate insurance cover in  
respect of legal actions against the directors as well as 
against material loss or claims against the Group. The 
adequacy of cover is reviewed on a regular basis.

employment of disabled persons
It is the policy of the Group to give full and fair consideration 
to the employment of disabled persons in jobs suited to their 
individual circumstances and, as appropriate, to consider 
them for recruitment opportunities, career development and 
training. Where possible, arrangements are made for the 
continuing employment of employees who have become 
disabled whilst in the Group’s employment.

employee involvement
Employees are kept informed of the performance  
and objectives of the Group through personal briefings, 
regular meetings and e-mail. 

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30

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

rePort of the directors continued

The financial and economic factors affecting the Group’s 
performance are also communicated by senior management 
through informal team briefings.

Directors and senior management regularly discuss  
with employees, matters of current interest and concern 
to the business.

The Group has implemented two Save as You Earn (“SAYE”) 
schemes for its employees in an effort to further encourage 
share ownership and employee participation as widely as 
possible across the Group. 

equal opportunities
The Group is committed to equal opportunities from 
recruitment and selection through to training, development, 
performance monitoring and retirement.

It is the policy of the Group to promote an environment free 
from discrimination, harassment and victimisation. All decisions 
relating to employment practices will be objective, free from bias 
and based solely upon work criteria and individual merit.

creditor payment policy
The Group’s policy is to agree the terms of payments with its 
suppliers as and when a trading relationship is established. 
The Group ensures that the terms of payment are clear and 
its policy is to abide by the agreed terms, provided the supplier 
meets its obligations. At 31 March 2009, the Group had an 
average of 49 days (2008: 44 days) purchases outstanding in 
trade payables, based on the average daily amount invoiced by 
suppliers during the year.

statement of directors’ responsibilities
The directors are responsible for preparing the annual report 
and the financial statements in accordance with applicable law 
and regulations. 

Company law requires the directors to prepare financial 
statements for each financial year. Under that law, the 
directors have elected to prepare the Group financial 
statements in accordance with International Financial 
Reporting Standards as adopted by the European Union 
(“EU”) and the parent company financial statements in 
accordance with United Kingdom Accounting Standards 
(“United Kingdom Generally Accepted Accounting Practice”).

The financial statements are required by law to give a true and 
fair view of the state of affairs of the Group and Company and 
of the profit or loss of the Group for that period.

In preparing these 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 are responsible for keeping proper accounting 
records that disclose with reasonable accuracy at any time the 
financial position of the Company and the Group and enable them 
to ensure that the financial statements comply with the Companies 
Acts 1985. They are also responsible for safeguarding the assets 
of the Company and Group and hence for taking reasonable steps 
for the prevention and detection of fraud and other irregularities.

In so far as the directors are aware:

• 

• 

There is no relevant audit information of which the 
Company’s auditor is unaware; and

 The directors have taken all steps that they ought to have 
taken to make themselves aware of any relevant audit 
information and to establish that the auditor is aware of 
that information.

The directors are responsible for the maintenance and 
integrity of the corporate and financial information included 
on the Company’s website. Legislation in the United Kingdom 
governing the preparation and dissemination of financial 
statements may differ from legislation in other jurisdictions.

auditor
Grant Thornton UK LLP, having expressed their willingness 
to continue in office, will be deemed reappointed for the 
next financial year in accordance with Section 487 (2) of the 
Companies Act 2006 unless the company receives notice 
under Section 488 (1) of the Companies Act 2006.

By order of the Board

michael lavender  
Company Secretary  

15 June 2009

 
 
 
 
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

31

corPorate governance rePort

The Company is committed to high standards of corporate governance and the Board is aware that it is accountable  
to the Company’s shareholders on such matters. 

As an AIM listed company, AssetCo plc is not required to comply with all of the Listing Rules of the Financial Services 
Authority. However, the Company has chosen to disclose the following information on corporate governance.

the board
The Board consists of two executive and three non-executive directors. The executive directors provide a direct line  
of control between the Company and its operating businesses. The non-executive directors provide a balance to the  
Board and bring a wide breadth of experience.

The Board meets on a monthly basis and has a formal schedule of matters reserved for its consideration. These matters include  
the approval of the financial and commercial strategy, dividend policy, annual and interim results, review of major investments,  
internal controls and performance as well as reporting to shareholders. The schedule is reviewed on an annual basis.

Operational decisions are delegated to members of the Group’s Operating Board and senior management team.

All directors have access to the advice and services of the Company Secretary and may also seek independent professional 
advice and training, at the expense of the Company, if required to carry out their duties.

The Board carries out rigorous reviews of its own performance and that of its committees. Formal individual performance 
reviews are also conducted. In addition, the close-working nature of the Board is such that an under-performance would be 
immediately apparent. The Chairman explicitly encourages any Board member with concerns over the performance of an 
individual director to identify those to himself at any time.

committees
The Board has established an audit committee (Adrian Bradshaw, Chairman), remuneration committee (Peter Manning, 
Chairman) and nominations committee (Tim Wightman, Chairman). 

The terms of reference of each of the committees are available from the Company Secretary.

audit committee
The audit committee, which convenes every six months, has primary responsibility for monitoring the quality of internal 
controls and for ensuring that the financial performance of the Group is properly measured and reported on, as well as 
reviewing reports from the Group’s auditors relating to the Group’s accounting and internal controls, in all cases having  
due regard to protecting the interests of the shareholders. 

The committee also reviews the independence and objectivity of non-audit services supplied by the external auditors  
to the Group, seeking to balance objectivity and value for money taking into account relevant ethical guidance.

remuneration committee
The remuneration committee will determine the terms and conditions of service of the executive directors, including their 
remuneration and grant of options. 

The policy of the committee is to implement packages that are closely aligned to market standards and best practice.

Should an executive director wish to take up an external appointment, approval must be sought from the Chairman and  
Chief Executive Officer of the Group.

The non-executive directors are paid a fee for their services and do not qualify for performance bonuses.

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32

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

corPorate governance rePort continued

remuneration of the directors
The remuneration of the executive directors and fees paid to the non-executive directors during 2009 and 2008 are as follows:

salary
2009
£’000

250

125

375

benefits
in kind
 2009
£’000

total
emoluments
2009
£’000

–

–

–

250

125

375

salary
2008
£’000

250

250

500

John Shannon

Frank Flynn

total

non-executive directors’ remuneration

Tim Wightman

Adrian Bradshaw

Peter Manning

total

benefits 
in kind
 2008
£’000

total 
emoluments
2008
£’000

38

38

76

2009
£’000

55

35

18

108

288

288

576

2008
£’000

55

35

-

90

nominations committee
The nominations committee makes recommendations to the Board for the appointment or replacement of directors. It is also 
responsible for succession planning within the Group. The functions of the nomination committee were discharged by the main 
Board throughout the year and it did not meet separately.

The committee used an external search consultancy in order to seek to appoint a new non-executive director. The Group  
is pleased to welcome Peter Manning to the Board of directors during the year.

internal control
The Board is responsible for maintaining a sound system of internal controls to safeguard the investment of shareholders 
and the assets of the Group.

The directors monitor the operation of the internal controls. The objective of the system is to safeguard the assets of the 
Group, to ensure proper accounting records are maintained and to ensure that the financial information used within the 
business, and for publication, is reliable. Any such system of internal control can only provide reasonable, but not absolute 
assurance, against material misstatement or loss.

Internal control procedures implemented by the Board include:

• 

• 

• 

• 

A clearly defined organisation structure with formal lines of authority, accountability and responsibility;

Review of monthly financial reports and monitoring of performance;

Prior approval of all significant expenditure including all major investment decisions; and

Regular assessment of major business, investment and financing risks.

The Board has reviewed the operation and effectiveness of the Group’s system of internal control for the financial year and 
the period up to the date of approval of the financial statements.

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

33

During the course of its review of the system of internal control, the Board has not identified nor been advised of any failings 
or weaknesses which it has determined to be significant. Therefore, a confirmation in respect of necessary actions has not 
been considered appropriate.

internal audit function
The audit committee remains of the view that given the size and nature of the operations of the Group that the establishment 
of an internal audit function is not warranted. The audit committee continues to review this decision.

attendance at meetings
The number of Board and Committee meetings attended by each of the directors during the year was as follows:

Name

executive directors

John Shannon

Frank Flynn

non-executive directors

Tim Wightman

Adrian Bradshaw

Peter Manning

main board 
meetings

audit 
committee

remuneration 
committee

nominations 
committee

18 (19)

19 (19)

19 (19)

19 (19)

12 (12)

–

3 (3)

3 (3)

3 (3)

–

–

2 (2)

–

–

2 (2) 

–

–

–

–

–

The figures in parentheses indicate the number of meetings that each director was eligible to attend during the year.

relations with shareholders
The Board has always sought to maintain good relations with the Company’s shareholders and believe that shareholders 
should receive timely information on the performance of the Group. 

The directors acknowledge that it is important for both private and institutional shareholders to have the opportunity to raise 
concerns or discuss matters. All of the directors attend the Company’s Annual General Meeting and are available to answer 
questions at the meeting or privately. The directors are in regular contact with institutional shareholders and feedback is also 
received from the Company’s brokers and nominated advisor. 

michael lavender  
Company Secretary  

15 June 2009

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34

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

technology & 
communications

AssetCo designs, installs and maintains integrated 
communication and operational systems across 
each of the emergency services and is the design 
authority for electrical communication systems for 
a specific range of the UK’s civil resilience fleet. 

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

35

technology & 

communications

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in this section:

Independent Auditor’s Report

Consolidated Income Report

Consolidated Balance Sheet

Consolidated Statement 
of Changes in Equity

Consolidated Cash Flow 
Statement

Notes to the Consolidated 
Financial Statements

36

37

38

39

40

41

 
 
 
 
 
 
 
 
 
36

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

report to the independent auditor (consolidated financial statements)
notes to the Consolidated FinanCial statements continued

We have audited the consolidated financial statements 
of AssetCo plc for the year ended 31 March 2009 
which comprise the consolidated income statement, the 
consolidated balance sheet, the consolidated statement  
of changes in equity, the consolidated cash flow statement 
and notes 1 to 39 of the financial statements. These 
consolidated financial statements have been prepared  
under the accounting policies set out therein.

We have reported separately on the parent company 
financial statements of AssetCo plc for the year ended 
31 March 2009.

This report is made solely to the Company’s members, as 
a body, in accordance with Section 235 of the Companies 
Act 1985. Our audit work has been undertaken so that we 
might state to the Company’s members those matters we 
are required to state to them in an auditor’s report and for 
no other purpose. To the fullest extent permitted by law, we 
do not accept or assume responsibility to anyone other than 
the Company and the Company’s members as a body, for our 
audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors  
and independent auditor
The directors’ responsibilities for preparing the Annual Report 
and the consolidated financial statements in accordance with 
United Kingdom law and International Financial Reporting 
Standards (IFRSs) as adopted by the European Union are set 
out in the Statement of Directors’ Responsibilities.

Our responsibility is to audit the consolidated 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 consolidated 
financial statements give a true and fair view and whether 
the consolidated financial statements have been properly 
prepared in accordance with the Companies Act 1985. We 
also report to you whether in our opinion the information 
given in the Report of the Directors is consistent with the 
financial statements. The information given in the Report of 
the Directors includes that specific information presented 
in the Chairman’s Statement and the Reports of the Chief 
Executive Officer and Chief Financial Officer that is cross 
referenced from the “Review of business and future 
developments” section of the Report of the Directors.

In addition we report to you if, in our opinion, we have not 
received all the information and explanations we require for 
our audit, or if information specified by law regarding directors’ 
remuneration and other transactions is not disclosed.

We read other information contained in the Annual Report 
and consider whether it is consistent with the audited 
consolidated financial statements. The other information 
comprises only the Chairman’s Statement, the Reports of 
the Chief Executive Officer and Chief Financial Officer, 
the Report of the Directors and the Corporate Governance 
Report. We consider the implications for our report if we 
become aware of any apparent misstatements or material 
inconsistencies with the consolidated financial statements. 
Our responsibilities do not extend to any other information.

Basis of opinion
We conducted our audit in accordance with International 
Standards on Auditing (UK and Ireland) issued by the Auditing 
Practices Board. An audit includes examination, on a test 
basis, of evidence relevant to the amounts and disclosures 
in the consolidated financial statements. It also includes 
an assessment of the significant estimates and judgments 
made by the directors in the preparation of the consolidated 
financial statements, and of whether the accounting polices 
are appropriate to the Group’s circumstances, consistently 
applied and adequately disclosed.

We planned and performed our audit so as to obtain all 
the information and explanations which we considered 
necessary in order to provide us with sufficient evidence to 
give reasonable assurance that the consolidated 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 consolidated financial statements.

Opinion
In our opinion:

• 

• 

• 

the consolidated financial statements give a true 
and fair view, in accordance with IFRSs as adopted 
by the European Union, of the state of the Group’s 
affairs as at 31 March 2009 and of its profit for the 
year then ended;

the consolidated financial statements have been 
properly prepared in accordance with the Companies 
Act 1985; and

the information given in the Report of the Directors  
is consistent with the financial statements.

GRANT THORNTON UK LLP
REGISTERED AUDITOR
CHARTERED ACCOUNTANTS
LONDON THAMES VALLEY OFFICE
SLOUGH

15 June 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

37

Consolidated inCome statement

continuing operations

Revenue

Cost of sales

Gross profit

Administrative expenses

Other gains

Restructuring costs

Operating profit

Finance income

Finance costs

Profit before taxation

Taxation

Profit for the year from continuing operations

discontinued operations

(Loss)/Profit for the year from discontinued operations

Profit for the year

earnings per share (pence)

from continuing operations

Basic

Diluted

from continuing and discontinued operations

Basic

Diluted

year ended

Notes

31 march 2009
£’000

31 march 2008
£’000

6

13

13

9

29

7

10

10

11

30

12

12

12

12

79,659

(43,505)

36,154

(17,500)

292

(1,516)

17,430

717

(6,869)

11,278

(1,135)

10,143

(5,189)

4,954

 14.0p

13.7p

6.8p

6.7p

64,546

(31,621)

32,925

(18,466)

1,016

(1,549)

13,926

429

(5,373)

8,982

(1,860)

7,122

915

8,037

10.5p

10.1p

11.8p

11.5p

The accompanying notes form an integral part of these consolidated financial statements.

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38

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

Consolidated balanCe sheet
notes to the Consolidated FinanCial statements continued

AsseTs
Non-current assets
Property, plant and equipment
Goodwill
Other intangible assets
Investment in associates
Deferred tax asset
Retirement benefit surplus

current assets
Inventories
Trade and other receivables
Cash and cash equivalents
Non-current assets held for sale
Derivative financial instruments

Total assets

eQUiTy
Issued share capital 
Equity component of compound financial instruments
Share premium account
Reverse acquisition reserve
Hedging reserve
Translation reserve
Other reserve
Retained earnings
Total equity

LiABiLiTies
Non-current liabilities
Borrowings
Liability component of compound financial instruments
Deferred tax liabilities

current liabilities
Trade and other payables
Current income tax liabilities
Borrowings
Provisions
Liabilities associated with assets classified as held for sale
Derivative financial instruments

Total liabilities
Total equity and liabilities

Notes

31 march 2009
£’000

31 march 2008
Restated
£’000

16
17
17
30
27
18

19
20
21
22
23

24
24
24

23

24

25
24
27

28

25
29
22
24

76,877
57,081
5,666
414
4,572
429
145,039

6,607
23,997
22,498
–
–
53,102
198,141

18,345
7,917
26,115
(11,701)
(5,130)
(304)
580
15,739
51,561

81,676
7,045
6,756
95,477

26,880
255
16,843
–
–
7,125
51,103
146,580
198,141

76,727
54,060
1,576
414
1,817
429
135,023

5,910
21,513
12,896
3,370
2,190
45,879
180,902

17,958
–
25,197
(11,701)
1,577
356
384
11,506
45,277

69,970
–
5,961
75,931

27,871
330
26,825
1,549
3,119
–
59,694
135,625
180,902

These financial statements were approved by the Board of directors and authorised for issue on 15 June 2009. They were 
signed on its behalf by:

R.f.flynn
Director 

The accompanying notes form an integral part of these consolidated financial statements.

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

39

Consolidated statement oF Changes in equity

share
capital
£’000

share 
premium
account
£’000

Reverse
acquisition
reserve
 £’000

Hedging
reserve
£’000

Translation
reserve
£’000

Other
 reserve 
£’000

Retained
 earnings
 £’000

Total
 equity
 £’000

At 1 April 2007

16,800

17,890

(11,701)

–

Gain recognised on cash flow 
hedge – interest rate swap

Tax on items taken directly 
to equity

Exchange differences on 
translation of overseas 
operations

Profit for the year

Total recognised income and 
expense for the period

Movement relating to  
share-based payments

Net proceeds from issue 
of shares

–

–

–

–

–

–

–

–

–

–

–

–

1,158

7,307

–

–

–

–

–

–

–

2,190

(613)

–

–

1,577

–

–

–

–

–

356

–

356

–

–

–

–

–

–

–

–

3,413

26,402

–

–

–

2,190

(613)

356

8,093

8,093

8,093

10,026

384

–

–

–

384

8,465

At 31 march 2008

17,958

25,197

(11,701)

1,577

356

384

11,506

45,277

Loss recognised on cash flow 
hedge – interest rate swap 
(Note 23)

Tax on items taken directly 
to equity

Exchange differences 
on translation of  
overseas operations

Profit for the year

Total recognised income and 
expense for the period

Dividends paid in the year

Movement relating to share-
based payments (Note 24)

Net proceeds from issue 
of shares (Note 24)

–

–

–

–

–

–

–

–

–

–

–

–

–

–

8,304

918

–

–

–

–

–

–

–

–

(9,315)

2,608

–

–

–

–

(660)

–

(6,707)

(660)

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

(9,315)

2,608

(660)

4,954

4,954

4,954

(2,413)

(721)

(721)

196

–

–

–

196

9,222

At 31 march 2009

26,262

26,115

(11,701)

(5,130)

(304)

580

15,739

51,561

The accompanying notes form an integral part of these consolidated financial statements.

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AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

Consolidated Cash Flow statement
notes to the Consolidated FinanCial statements continued

year ended

Notes

31 march 2009
£’000

31 march 2008
£’000

cash flows from operating activities

Cash generated from operations

Finance costs

Corporation tax paid

Net cash generated from operating activities

cash flows from investing activities

Acquisition of subsidiaries, net of cash acquired

Investment in associated undertaking

Purchase of intangible assets

Cash element of deferred consideration settlement

Purchases of property, plant and equipment 

Proceeds from sale of property, plant and equipment

Proceeds from sale of subsidiary undertakings

Net cash used in investing activities

cash flows from financing activities

Proceeds from issue of ordinary shares

Proceeds from issue of preference shares

Dividends paid

Net increase in/(repayments of) borrowings

Net increase in finance leases

Finance income

Net cash used in financing activities

32

10

33

30

17

16

10

Net increase/(decrease) in cash, cash equivalents  
and bank overdrafts

Cash, cash equivalents and bank overdrafts at beginning of period

cash, cash equivalents and bank overdrafts at end of period

21

13,015

(6,687)

(44)

6,284

(60)

–

(3,563)

(1,800)

(10,906)

6,229

–

14,123

(5,373)

(177)

8,573

(4,910)

(414)

(1,089)

–

(38,550)

3,518

900

(10,100)

(40,545)

–

14,780

(721)

5,842

1,609

717

22,227

18,411

394

18,805

6,378

–

–

(4,552)

27,493

429

29,748

(2,224)

2,618

394

The accompanying notes form an integral part of these consolidated financial statements.

 
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

41

notes to the Consolidated statements

1. Legal status and activities
AssetCo plc and its subsidiaries (together “the Group”) 
are principally involved with the provision of management 
services to the emergency services market. Other Group 
companies are engaged in automotive engineering, the 
provision of asset management services and the supply of 
specialist equipment to the emergency services market. 

AssetCo plc is a public limited liability company incorporated 
and domiciled in England and Wales. The address of its 
registered office is 800 Field End Road, South Ruislip, Middlesex 
HA4 0QH. The group operates from eight sites throughout 
the United Kingdom and one in the Republic of Ireland.

AssetCo plc shares are listed on the Alternative Investment 
Market (“AIM”) of the London Stock Exchange.

The financial statements of AssetCo plc for the year ended 
31 March 2008 were authorized for issue by the then Board 
of Directors on 27 May 2008 and the balance sheet was 
signed on the Board’s behalf by RF Flynn. Those financial 
statements received an unqualified audit report which did 
not contain statements under Section 237 (2) and (3) of the 
Companies Act 1985.

Due to the adoption of reverse acquisition accounting, 
references to “the Company” in the consolidated financial 
statements are to AssetCo Group Limited. Further information 
on reverse acquisition accounting is given in Note 2.2.

For greater clarity, the financial statements have been 
presesented in Sterling to the nearest thousand pounds 
(£’000) except where otherwise indicated.

These group consolidated financial statements were authorised 
for issue by the Board of Directors on 15 June 2009.

2. summary of significant accounting policies
The principal accounting policies applied in the preparation 
of these consolidated financial statements are set out below. 

2.1 Basis of preparation
The group’s financial statements comply with the AIM Rules 
and have been prepared in accordance with International 
Financial Reporting Standards (“IFRSs”) as adopted by the 
European Union as they apply to the financial statements of 
the Group for the year ended 31 March 2009 and applied 
in accordance with the Companies Act 1985. The financial 
statements are prepared using the historical cost convention 
as modified for the revaluation of certain assets. The 
accounting policies which follow set out these policies which 
apply in preparing the financial statements for the year 
ended 31 March 2009.

Going concern
Management routinely plan future activities including 
forecasting future cash flows. Management have reviewed 
their plans with the directors and have collectively formed 

a judgement that the Group has adequate resources to 
continue as a going concern for at least 12 months from 
the date of signing of the financial statements. In arriving 
at this judgement the directors have reviewed the cash 
flow projections of the Group for the foreseeable future 
in light of the trading and financing uncertainties in the 
current economic climate and have considered existing 
commitments together with the financial resources available 
to the Group. The Group also benefits from the surety of two 
major long term contracts which guarantee revenue streams 
for the next 14 years. This, aligned with a significant public 
sector client base gives comfort over future income streams 
and thus the going concern status of the Group. The 
directors have also considered the current global economic 
downturn together with the unprecedented markets for 
debt and equity financing at this time. The directors have 
considered all significant trading exposures and do not 
consider the group to be significantly exposed to its trading 
partners, either clients or suppliers at this time.

The detailed profit and loss and cash flow budgets prepared 
by management for the period up to 30 June 2010 have 
been subjected to various sensitivity analyses and show that 
the Group is forecast to have more than sufficient headroom 
in that period. 

exemptions
IFRS 3, “Business Combinations”, has not been applied to 
acquisitions of subsidiaries or interests in joint ventures 
that occurred before 1 April 2006 as these were business 
combinations effected before the date of transition to IFRSs.

The Group has elected to recognise all cumulative actuarial 
gains and losses in relation to employee benefit schemes at 
the date of transition which fall outside of the 10% corridor 
approach.

critical accounting estimates and judgements
The preparation of financial statements requires 
management to make estimates and assumptions that affect 
the amounts reported for assets and liabilities as at the 
balance sheet date and the amounts reported for revenue 
and expenses during the year. The nature of estimation 
means the actual outcomes may differ from the estimates. 
Further details on the critical accounting estimates used and 
judgements made in preparing these financial statements 
can be found in Note 4.

Accounting standards and interpretations
a) Interpretations to existing standards that are not 
yet effective
Certain new standards, amendments and interpretations 
to existing standards have been published that are not 
mandatory for the Group’s accounting periods beginning on 
or after 31 March 2008 or later periods but which the Group 
has not early adopted.

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42

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notes to the Consolidated FinanCial statements continued

2. summary of significant accounting policies
2.1 Basis of preparation continued
standards
IFRS 8, “Operating Segments” (effective for annual periods 
beginning on or after 1 January 2009). IFRS 8 sets out 
requirements for disclosure of information about an entity’s 
operating segments and also about the entity’s products and 
services, the geographical areas in which it operates, and 
its major customers. Management is currently assessing the 
impact of IFRS 8 on the Group’s operations.

IAS 1 (revised), “Presentation of Financial Statements” 
(effective for annual periods beginning on or after 
1 January 2009). IAS 1 (revised) sets out revisions to 
the presentation of financial information. Management is 
currently assessing the impact of IAS 1 (revised) on the 
financial statements of the Group.

IFRS 3 (revised), “Business Combinations”; IAS 27 
(amended), “Consolidated and Separate Financial 
Statements”; IAS 28 (amended), “Investments in 
Associates”; and IAS 31 (amended), “Interests in Joint 
Ventures” (all effective for annual periods beginning on or 
after 1 July 2009). The changes made to these accounting 
standards are designed to ensure uniformity in the 
accounting treatment for business combinations under both 
United States Generally Accepted Accounting Principles 
and IFRSs. Management is currently assessing the impact of 
these revisions and amendments on the Group’s operations.

IAS 32 (amended), “Financial Instruments: Presentation” 
(effective for annual periods beginning on or after 
1 January 2009). IAS 32 (amended) includes changes to the 
presentation of puttable instruments and obligations arising 
on a liquidation. Management is currently assessing the 
impact of IAS 32 (amended) on the financial statements of 
the Group.

IFRS 2 (amended), “Share-based Payment” (effective for 
annual periods beginning on or after 1 January 2009). 
IFRS 2 (amended) provides clarification surrounding vesting 
conditions and the cancellation of options. Management is 
currently assessing the impact of IFRS 2 (amended) on the 
financial statements of the Group.

interpretations
IFRIC 13, “Customer Loyalty Programmes” (effective for 
annual periods beginning on or after 1 July 2008). IFRIC 13 
is not relevant to the Group’s operations.

b) Revisions to existing standards that have been 
early adopted
IAS 23 (revised), “Borrowing Costs” (effective for annual 
periods beginning on or after 1 January 2009). IAS 23 
(revised) requires borrowing costs that relate to assets 
that take a substantial period of time to get ready for use 
or sale to be capitalised. The Group has chosen to early 
adopt this revised standard. The impact of early adoption 

of IAS 23 (revised) was to increase the carrying cost 
of property, plant and equipment by £282,000 in 2008 
with a corresponding reduction in borrowing costs in the 
consolidated income statement.

2.2 consolidation
The Group financial statements consolidate the financial 
statements of AssetCo Plc and the entities it controls (its 
subsidiaries) drawn up to 31 March each year.

a) Reverse acquisition accounting
Under IFRS 3 “Business Combinations”, the acquisition 
of AssetCo Group Limited (the “legal subsidiary”) by the 
Company (the “legal parent”) has been accounted for as 
a reverse acquisition and the consolidated IFRS financial 
information of the Company is therefore a continuation of 
the financial information of AssetCo Group Limited.

Under reverse acquisition accounting, the cost of a business 
combination is deemed to have been incurred by the legal 
subsidiary in the form of equity instruments issued to the 
owners of the legal parent.

The assets and liabilities of the legal subsidiary (the 
“acquirer”) are recognised and measured in the consolidated 
financial statements at their pre-combination carrying 
amounts. The assets and liabilities of the legal parent (the 
“acquiree”) are fair valued at the acquisition date.

The retained earnings and other reserves recognised in 
the consolidated financial statements should be those 
of the legal subsidiary immediately before the business 
combination. The equity structure shown in the consolidated 
financial statements should reflect the legal parent’s equity 
structure, including the equity instruments issued by the 
legal parent to effect the combination.

b) subsidiaries
Subsidiaries are all entities over which the Group has 
the power to govern the financial and operating policies 
generally accompanying a shareholding of more than one 
half of the voting rights. Subsidiaries are fully consolidated 
from the date on which control is transferred to the Group 
and continue to be consolidated until the date that control 
ceases. Control comprises the power to govern the financial 
and operating policies of the investment so as to obtain 
benefit from its activities and is achieved through direct or 
indirect ownership of voting rights or by way of contractual 
agreement. Minority interests represent the portion of profit 
or loss and net assets in subsidiaries that is not held by the 
Group and is presented separately from parent shareholders 
equity within equity in the consolidated balance sheet.

The purchase method of accounting is used to account for 
the acquisition of subsidiaries by the Group. The cost of an 
acquisition is measured as the fair value of the assets given, 
equity instruments issued and liabilities incurred or assumed 
at the date of exchange, plus costs directly attributable to 

AssetCo plc Annual Report & Accounts 2009

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43

the acquisition. Identifiable assets acquired and liabilities 
and contingent liabilities assumed in a business combination 
are measured initially at their fair values at the acquisition 
date, irrespective of the extent of any minority interest. The 
excess of the cost of acquisition over the fair value of the 
Group’s share of identifiable net assets acquired is recorded 
as goodwill. If the cost of an acquisition is less than the 
fair value of the net assets of the subsidiary acquired, the 
difference is recognised directly in the income statement.

When settlement of all or any part of the cost of a business 
combination is deferred, the fair value of that deferred 
component shall be determined by discounting the amounts 
payable to their present value at the date of exchange, 
taking into account any premium or discount likely to be 
incurred in settlement.

Inter-company transactions, balances and unrealised gains 
on transactions between Group companies are eliminated. 
Unrealised losses are also eliminated, unless there is 
evidence of impairment of the asset, but considered an 
impairment indicator of the asset transferred. Accounting 
policies of subsidiaries have been changed where necessary 
to ensure consistency with the policies adopted by the Group.

c) Associates
Associates are entities over which the Group has significant 
influence but not control, generally accompanying a 
shareholding of between 20% and 50% of the voting rights. 
Investments in associates are accounted for using the equity 
method of accounting and are initially recognised at cost. The 
Group’s investment in associates includes goodwill identified 
on acquisition, net of any accumulated impairment loss.

The Group’s share of the post-acquisition profit or loss 
of its associates is recognised in the income statement, 
and its share of post-acquisition movement in reserves is 
recognised in reserves. The cumulative post-acquisition 
movements are adjusted against the carrying amount of 
the investment. When the Group’s share of losses in an 
associate equals or exceeds its interest in the associate, 
including any other unsecured receivables, the Group 
does not recognise further losses, unless it has incurred 
obligations or made payments on behalf of the associate.

Unrealised gains on transactions between the Group and 
its associates are eliminated to the extent of the Group’s 
interest in the associates. Unrealised losses are also 
eliminated unless the transaction provides evidence of an 
impairment of the asset transferred. Accounting policies of 
associates have been changed where necessary to ensure 
consistency with the policies adopted by the Group.

d) Joint ventures
The Group’s interests in joint ventures, which are 50% 
jointly controlled with another entity, are accounted for by 
proportionate consolidation. The Group combines its share 

of the joint ventures’ individual income and expenses, assets 
and liabilities and cash flows on a line-by-line basis with 
similar items in the Group’s financial statements. The Group 
recognises the portion of gains or losses on the sale of 
assets by the Group to the joint venture that is attributable 
to the other venturers. The Group does not recognise its 
share of profits or losses from the joint venture that result 
from the Group’s purchase of assets from the joint venture 
until it resells the assets to an independent party. However, a 
loss on the transaction is recognised immediately if the loss 
provides evidence of a reduction in the net realisable value 
of current assets, or an impairment loss. 

e) Recognition of assets and liabilities as part of a 
business combination
In accordance with IFRS 3, “Business Combinations”, an 
intangible asset acquired in a business combination is 
deemed to have a cost to the Group of its fair value at 
the acquisition date. The fair value of the intangible asset 
reflects market expectations about the probability that the 
future economic benefits embodied in the asset will flow to 
the Group. Where an intangible asset might be separable, 
but only together with a related tangible or intangible 
asset, the group of assets is recognised as a single asset 
separated from goodwill where the individual fair values of 
the assets in the group are not reliably measurable. Where 
the individual fair value of the complimentary assets are 
reliably measurable, the Group recognises them as a single 
asset provided the individual assets have similar useful lives.

f) Assets held for sale
Non-current assets (and disposal groups) classified as held 
for sale are measured at the lower of carrying amount and 
fair value less costs to sell. 

Non-current assets and disposal groups are classified 
as held for sale if their carrying amount will be recovered 
through a sale transaction rather than through continuing 
use. This condition is regarded as met only when the sale is 
highly probable and the asset (or disposal group) is available 
for immediate sale in its present condition. Management 
must be committed to the sale which should be expected 
to qualify for its recognition as a completed sale within one 
year from the date of classification.

2.3 Revenue recognition
Revenue comprises the fair value of the consideration 
received or receivable from the provision of services in the 
ordinary course of the Group’s activities. Revenue is shown 
net of value-added tax, returns, rebates and discounts and 
after eliminating sales within the Group.

The Group recognises revenue when specific criteria have 
been met for each of the Group’s activities as described 
below. The amount of revenue is not considered to be 
reliably measurable until all contingencies relating to the 
sale have been resolved. 

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44

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notes to the Consolidated FinanCial statements continued

2. summary of significant accounting policies
2.3 Revenue recognition continued
a) Rendering of services
Revenue is only recognised in respect of service contracts 
when the stage of completion can be measured reliably, 
both costs incurred and cost to complete can be measured 
reliably and it is probable that economic benefits will flow to 
the Group.

b) Transactions and balances
Foreign currency transactions are translated into the 
functional currency using the exchange rates prevailing at 
the dates of the transactions. Foreign exchange gains and 
losses resulting from the settlement of such transactions 
and from the translation at year-end exchange rates of 
monetary assets and liabilities denominated in foreign 
currencies are recognised in the income statement.

b) sale of goods
Revenue from the sale of goods to the emergency services 
market is recognised when all of the following conditions 
have been satisfied:

• 

• 

• 

• 

• 

the Group has transferred to the buyer the significant 
risks and rewards of ownership of the goods which 
is generally when the goods have been successfully 
delivered to the customer and accepted;

the Group retains neither continuous managerial 
involvement to the degree usually associated with 
ownership nor effective control over the goods 
sold which is generally when the goods have been 
despatched;

the amount of revenue can be measured reliably;

it is probable that the economic benefits associated with 
the transaction will flow to the Group; and

the costs incurred or to be incurred in respect of the 
transaction can be measured reliably

c) Leasing and short-term hire
Revenue from the leasing and short-term hire of assets is 
recognised in the income statement on a straight-line basis 
over the period of the hire.

d) interest income
Interest is recognised using the effective interest method 
which calculates the amortised cost of a financial asset and 
allocates the interest income over the relevant period.

The effective interest rate is the rate that exactly discounts 
estimated future cash receipts through the expected life 
of the financial asset to the net carrying amount of the 
financial asset.

2.4 foreign currency translation
a) functional and presentation currency
Items included in the financial statements of each of the 
Group’s entities are measured using the currency of the 
primary economic environment in which the entity operates 
(“the functional currency”). The consolidated financial 
statements are presented in sterling (£), which is the 
Company’s functional and presentation currency.

There has been no change in the Company’s functional or 
presentation currency during the year under review.

c) foreign operations translation
The Group consolidation is prepared in sterling. Income 
statements of foreign operations are translated into sterling 
at the weighted average exchange rates for the period and 
balance sheets are translated into sterling at the exchange 
rate ruling on the balance sheet date. Goodwill and fair value 
adjustments arising on the acquisition of a foreign entity are 
treated as local currency assets and liabilities of the foreign 
entity and are translated at the closing rate.

2.5 Government grants
Grants from the government are recognised at their fair value 
when there is a reasonable assurance that the grant will be 
received and the Group will comply with all attached conditions.

Government grants relating to costs are deferred and 
recognised in the income statement over the period 
necessary to match them with the costs that they are 
intended to compensate.

Government grants relating to property, plant and equipment 
are included in non-current liabilities as deferred government 
grants and are credited to the income statement on a straight-
line basis over the expected lives of the related assets.

2.6 segment reporting
A business segment is a group of assets and operations 
engaged in providing products or services that are subject 
to risks and returns that are difference from those of other 
business segments. A geographical segment is engaged in 
providing products or services within a particular economic 
environment that are subject to risks and returns that are 
difference from those of segments operating in other 
economic environments.

2.7 Property, plant and equipment
All property, plant and equipment is stated at historical cost 
less depreciation. Historical cost includes expenditure that is 
directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying 
amount or recognised as a separate asset, as appropriate, 
only when it is probable that future economic benefits 
associated with the item will flow to the Group and the cost 
of the item can be measured reliably. The carrying amount 
of the replaced part is derecognised. All other repairs and 
maintenance is charged to the income statement during the 
financial period in which they are incurred.

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45

Borrowing costs incurred specifically for the construction of 
an item of property, plant and equipment are capitalised over 
the period of completion of the relevant asset.

Depreciation on assets is calculated using the straight-line 
method to allocate their cost to their residual values over 
their estimated useful lives as follows:

Leasehold buildings

Over the term of the lease

Leasehold improvements

Over the term of the lease

Fixtures and fittings

Equipment, plant and machinery

Operational equipment  
and motor vehicles

Land is not depreciated.

3 – 5 years

2 – 5 years

2 – 25 years

Operational equipment and motor vehicles that have  
been provided to customers under long-term contracts  
are grouped as “assets under long-term arrangements” 
 in Note 16 to the financial statements.

The comparative information for the year ended 
31 March 2009 has been restated for acquisition 
accounting adjustments that have been finalised in relation 
to the acquisition of TVAC made in 2008. The comparative 
information has been restated in accordance with IFRS3 
Business Combinations. The impact of the restatement is to 
increase goodwill, by £2.1m, and reduce inventories by the 
same amount.

computer software
Acquired computer software licences are capitalised on 
the basis of the costs incurred to acquire and bring to use 
the specific software. These costs are amortised over their 
estimated useful lives of three to five years.

impairment testing of goodwill, other intangible 
assets and property, plant and equipment
For the purposes of assessing impairment, assets are 
grouped at the lowest levels for which there are separately 
identifiable cash flows. As a result, some assets are tested 
individually for impairment and some are tested at cash-
generating unit level.

The residual values and useful lives of assets are reviewed, 
and adjusted if appropriate, at each balance sheet date. 
Details of revisions in the year and their related effect, are 
set out in note 16.

An asset’s carrying amount is written down immediately 
to its recoverable amount if the asset’s carrying amount is 
greater than its estimated recoverable amount.

Goodwill, other individual assets or cash-generating units 
that include goodwill, other intangible assets with an 
indefinite useful life, and those intangible assets not yet 
available for use are tested for impairment at least annually. 
All other individual assets or cash-generating units are 
tested for impairment whenever events or changes in 
circumstances indicate that the carrying amount may not 
be recoverable.

An impairment loss is recognised for the amount by which 
the carrying amount exceeds the recoverable amount of the 
asset or cash-generating unit. The recoverable amount is the 
higher of fair value, reflecting market conditions less costs to 
sell, and value in use based on an internal discounted cash 
flow evaluation. With the exception of goodwill, all assets are 
subsequently reassessed for indications that an impairment 
loss previously recognised may no longer exist.

2.9 inventories
Inventories are stated at the lower of cost and net realisable 
value. Cost is determined using the first-in first-out (“FIFO”) 
method. The cost of finished goods and work in progress 
comprises design costs, raw materials, direct labour, other 
direct costs and related production overheads based on 
normal operating capacity. Net realisable value is the 
estimated selling price in the ordinary course of business, 
less applicable variable selling expenses.

Gains and losses on disposals are determined by comparing 
the proceeds with the carrying amount and are recognised 
within “other gains” or “other losses” in the income 
statement. 

2.8 intangible assets
Goodwill
Goodwill represents the excess of the cost of an acquisition 
over the fair value of the Group’s share of the net identifiable 
assets of the acquired subsidiary at the date of acquisition. 
Goodwill on acquisitions of subsidiaries is included in 
intangible assets. Goodwill is tested annually for impairment 
and carried at cost less accumulated impairment losses. 
Impairment losses on goodwill are not reversed. Gains and 
losses on the disposal of an entity include the carrying 
amount of goodwill relating to the entity sold.

Goodwill is allocated to cash-generating units (separately 
identifiable cash flows) for the purpose of impairment 
testing. The allocation is made to those cash-generating 
units or groups of cash-generating units that are expected 
to benefit from the business combination in which the 
goodwill arose. The Group allocates goodwill to each 
contract that it operates and the underlying business to 
which the goodwill relates.

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46

AssetCo plc Annual Report & Accounts 2009
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AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notes to the Consolidated FinanCial statements continued

2. summary of significant accounting policies continued
2.10 financial instruments and hedge accounting
a) financial assets
The Group classifies its financial assets in the following 
categories: at fair value through profit or loss or loans and 
receivables. The classification depends on the purpose for 
which the financial assets were acquired. Management 
determines the classification of its financial assets at 
initial recognition.

Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are 
financial assets held for trading. A financial asset is 
classified in this category if acquired principally for the 
purpose of selling in the short-term. Derivatives are also 
categorised as held for trading unless they are designated 
as hedges. 

Loans and receivables
Loans and receivables are non-derivative financial assets 
with fixed or determinable payments that are quoted in an 
active market. They are included in current assets, except 
for maturities greater than twelve months after the balance 
sheet. These are classified as non-current assets. The 
Group’s loans and receivables comprise “trade and other 
receivables” and “cash and cash equivalents”.

Trade receivables
Trade receivables are recognised initially at fair value plus 
directly attributable transaction costs and subsequently 
measured at amortised cost using the effective interest 
method, less provision for impairment. A provision for 
impairment of trade receivables is established when there 
is objective evidence that the Group will not be able to 
collect all amounts due according to the original terms of 
the receivables. Significant financial difficulties of the debtor, 
probability that the debtor will enter bankruptcy or financial 
reorganisation, and default in payments are considered 
indicators that the trade receivable is impaired. The amount 
of the provision is the difference between the asset’s 
carrying amount and the present value of estimated future 
cash flows, discounted at the original effective interest rate. 
The carrying amount of the asset is reduced through the 
use of an allowance account, and the amount of the loss is 
recognised in the income statement within administrative 
expenses. When a trade receivable is uncollectible, it 
is written off against the allowance account for trade 
receivables. Subsequent recoveries of amounts previously 
written off are credited against administrative expenses in 
the income statement.

Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits 
held at call with banks and bank overdrafts. Bank overdrafts 
are shown within borrowings in current liabilities on the 
balance sheet.

b) financial liabilities and equity instruments
A financial liability is any liability that is a contractual 
obligation to deliver cash or another financial asset to 
another entity or to exchange financial assets or financial 
liabilities with another entity under conditions that are 
potentially unfavourable to the entity.

An equity instrument is a contract that evidences a residual 
interest in the assets of an entity after deducting all of 
its liabilities.

Financial liabilities and equity instruments are classified 
according to the substance of the contractual arrangements 
entered into. Where the contractual obligations of financial 
instruments, including share capital, are equivalent to 
a similar debt instrument, those financial instruments 
are classed as financial liabilities. Financial liabilities are 
classified as such in the balance sheet.

Finance costs and gains or losses relating to financial 
liabilities are included in the income statement. Finance 
costs are calculated so as to produce a constant rate or 
return on the outstanding liability.

Where the contractual terms of share capital do not have 
any terms meeting the definition of a financial liability then 
this is classed as an equity instrument. Dividends and 
distributions relating to equity instruments are debited direct 
to equity.

Borrowings
Borrowings are recognised initially at fair value, net of 
transaction costs incurred. Borrowings are subsequently 
stated at amortised cost; any difference between the 
proceeds (net of transaction costs) and the redemption 
value is recognised in the income statement over the period 
of the borrowings using the effective interest method.

Borrowings are classified as current liabilities unless the 
Group has an unconditional right to defer settlement of the 
liability for at least twelve months after the balance sheet date.

Any gains or losses arising from changes in the fair value 
of derivatives during the year that do not qualify for hedge 
accounting are taken directly to the income statement. The 
fair value of interest rate swap contracts is determined by 
reference to market values for similar instruments.

Trade payables
Trade payables are recognised initially at fair value and 
subsequently measured at amortised cost using the effective 
interest method.

2.11 equity
issued share capital
Ordinary shares are classified as equity.

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47

Costs directly attributable to the issue of new shares or 
options are shown in equity as a deduction, net of tax, from 
the proceeds.

share premium
The share premium account represents the excess over 
nominal value of the fair value of consideration received for 
equity shares, net of expenses of the share issue.

Reverse acquisition reserve
The reverse acquisition reserve arises on the acquisition of 
Asfare Group plc by AssetCo Group Limited and represents 
the extent to which the reserves of AssetCo Group Limited 
have been capitalised as a result of the business combination.

Hedging reserve
Under cash flow hedge accounting, movements on the 
effective portion of the hedge are recognised through the 
hedging reserve, while any ineffectiveness is taken to the 
income statement.

Translation reserve
The translation reserve represents the movement on the 
translation of the net investment in foreign operations 
recorded in foreign currencies at the balance sheet date. 
Exchange differences arising in the ordinary course of 
trading are included in the income statement.

Each lease payment is allocated between the liability and 
finance charges so as to achieve a constant rate on the 
finance balance outstanding. The corresponding rental 
obligations, net of finance charges, are included in other 
short-term and other long-term payables. The interest 
element of the finance cost is charged to the income 
statement over the lease period so as to produce a constant 
periodic rate of interest on the remaining balance of the 
liability for each period. The property, plant and equipment 
acquired under finance leases is depreciated over the 
shorter of the useful life of the asset and the lease term.

Leases other than finance leases are classified as operating 
leases and payments are charged to the income statement 
on a straight-line basis over the lease term. Lease incentives, 
if applicable, are spread over the term of the lease.

Group as a lessor
When assets are leased out under a finance lease, the 
present value of the lease payments is recognised as a 
receivable. The difference between the gross receivable 
and the present value of the receivable is recognised as 
unearned finance income.

When assets are leased out under an operating lease, the 
asset is included in the balance sheet based on the nature 
of the asset. 

Other reserve
The other reserve represents equity-settled share-based 
employee remuneration until such share options are 
exercised, forfeited, lapse or expire.

2.14 income taxes
Income tax payable is provided on taxable profits using 
tax rates enacted or substantially enacted at the balance 
sheet date.

2.12 Research and development
The Group incurs expenditure on research projects and on 
projects to apply research findings to develop new or 
substantially improved products. This expenditure is recognised 
in the income statement as an expense as incurred.

Once detailed criteria have been met that confirm that the 
product is both technically and commercially feasible, that 
there is an intention and ability to complete the asset and 
use it or sell it, that future economic benefits will be generated, 
that there is adequate technical and financial support available 
to complete the asset and expenditure can be measured 
reliably, any further expenditure incurred on the project is 
capitalised if the expenditure is expected to be material.

2.13 Leases
Group as a lessee
The Group leases certain property, plant and equipment. 
Leases of property, plant and equipment where the Group 
has substantially all the risk and rewards of ownership are 
classified as finance leases. Finance leases are capitalised 
at the commencement of the lease at the lower of the 
fair value of the leased asset and the present value of the 
minimum lease payments.

Income tax is recognised in the income statement except 
to the extent that it relates to items recognised directly in 
equity, in which case it is recognised in equity.

Deferred income tax is provided in full, using the liability 
method, on temporary differences arising between the tax 
bases of assets and liabilities and their carrying amounts 
in the consolidated financial statements. However, the 
deferred income tax is not accounted for if it arises from 
initial recognition of goodwill or of an asset or liability in 
a transaction other than a business combination that at 
the time of the transaction affects neither accounting nor 
taxable profit or loss. Deferred income tax is determined 
using tax rates (and laws) that have been enacted or 
substantially enacted by the balance sheet date and are 
expected to apply when the related deferred income tax 
asset is realised or the deferred income tax liability is settled.

Deferred income tax assets are recognised to the extent 
that is it probable that future taxable profit will be available 
against which the temporary differences can be utilised.

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48

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notes to the Consolidated FinanCial statements continued

2. summary of significant accounting policies continued
2.15 employee benefits
Pension obligations – defined benefit schemes
Group companies operate two defined benefit 
pension schemes. 

Scheme assets are measured at fair values. Scheme 
liabilities are measured on an actuarial basis using the 
projected unit method and are discounted at appropriate 
high quality corporate bond rates that have terms to 
maturity approximating to the terms of the related liability. 
Appropriate adjustments are made for unrecognised 
actuarial gains or losses and past service costs. Past service 
cost is recognised as an expense on a straight-line basis 
over the average period until the benefits become vested. 
To the extent that benefits are already vested the Group 
recognises past service cost immediately.

Actuarial gains and losses are recognised as an expense 
and charged or credited to the income statement over the 
employees’ expected average remaining working lives. The 
resulting surplus or deficit is presented with other net assets 
on the balance sheet. The related deferred tax is shown with 
other deferred tax balances. A surplus is recognised only to 
the extent that it is recoverable by the Group.

The current service cost, past service cost and costs 
from settlements and curtailments are charged against 
administrative expenses. Interest on the scheme liabilities 
and the expected return on scheme assets are included in 
other finance costs.

Pension contributions – defined contribution scheme
For defined contribution schemes, the Group pays 
contributions to publicly or privately administered pension 
insurance plans on a mandatory, contractual or voluntary 
basis. The Group has no further payment obligations once 
the contributions have been paid.

Contributions to defined contribution schemes are 
recognised in the income statement during the period in 
which they become payable. 

equity settled share-based payment
All share-based payment arrangements are recognised in 
the financial statements.

All goods and services received in exchange for the grant of 
any share-based payment are measured at their fair values 
using the Black-Scholes options pricing model. Where 
employees are rewarded using share-based payments, the 
fair values of employees’ services are determined indirectly 
by reference to the fair value of the instrument granted to 
the employee. This fair value is appraised at the grant date 
and excludes the impact of any non-market vesting conditions.

All equity-settled share-based payments are ultimately 
recognised as an expense in the income statement with a 
corresponding credit to “other reserve”.

If vesting periods or other non-market vesting conditions 
apply, the expense is allocated over the vesting period, 
based on the best available estimate of the number of 
share options expected to vest. Estimates are subsequently 
revised if there is any indication that the number of share 
options expected to vest differs from previous estimates. 
Any cumulative adjustment prior to vesting is recognised in 
the current period. No adjustment is made to any expense 
recognised in prior periods if share options ultimately 
exercised are different to that estimated on vesting.

Upon exercise of share options the proceeds received net of 
attributable transaction costs are credited to share capital, 
and where appropriate share premium.

Termination benefits
Termination benefits are payable when an employment is 
terminated by the Group before the normal retirement date, 
or whenever an employee accepts voluntary redundancy 
in exchange for these benefits. The Group recognises 
termination benefits when it is demonstrably committed to 
either: terminating the employment of current employees 
according to a detailed formal plan without possibility of 
withdrawal; or providing termination benefits as a result of 
acceptance of an offer of voluntary redundancy. Benefits 
falling due more than 12 months after the balance sheet 
date are discounted to their present value.

2.16 Provisions
Provisions are recognised when the Group has a present 
legal or constructive obligation as a result of past events, it is 
probable that an outflow of resources will be required to settle 
the obligation, and the amount has been reliably estimated. 

Where there are a number of similar obligations, the 
likelihood that an outflow will be required in settlement is 
determined by considering the class of obligations as a 
whole. A provision is recognised even if the likelihood of an 
outflow with respect to any one item included in the same 
class of obligations may be small.

Provisions are measured at the present value of the 
expenditures expected to be required to settle the 
obligation using a pre-tax rate that reflects current market 
assessments of the time value of money and the risks 
specific to the obligation. The increase in the provision due 
to passage of time is recognised as an interest expense.

2.17 cash flow hedges
Changes in the fair value of derivative financial instruments 
that are designated and effective as hedges of future cash 
flows are recognised directly in equity and any ineffective 

AssetCo plc Annual Report & Accounts 2009

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AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

49

portion is recognised immediately in the Income Statement. 
If the cash flow hedge is a firm commitment or the forecast 
transaction results in the recognition of an asset or a 
liability, then, at the time the asset or liability is recognised, 
the associated gains or losses on the derivative that had 
previously been recognised in equity are included in the initial 
measurement of the asset or liability. For hedges that do not 
result in the recognition of an asset or a liability, amounts 
deferred in equity are recognised in the Income Statement in 
the same period in which the hedged item affects net profit or 
loss. When a hedging instrument expires or is sold, or when 
a hedge no longer meets the criteria for hedge accounting, 
any cumulative gain or loss existing in equity at that time 
remains in equity and is recognised when the forecast 
transaction is ultimately recognised in the Income Statement. 
When a forecast transaction is no longer expected to occur, 
the cumulative gain or loss that was reported in equity is 
immediately transferred to the Income Statement.

3. financial risk management
The Group’s activities expose it to a variety of financial risks: 
credit risk, market risk (including currency risk, interest rate 
risk and price risk) and liquidity risk. The Group’s overall risk 
management programme focuses on the unpredictability of 
financial markets and seeks to minimise potential adverse 
effects on the Group’s financial performance.

Risk management is carried out under policies approved by 
the Board of directors. The Board provides written principles 
for overall risk management.

3.1 financial risk factors
a) credit risk
The Group’s exposure to credit risk is detailed in Notes 20 
and 21.

The Group has a policy for dealing with customers only with 
an appropriate credit history.

The Group has policies that limit the amount of credit 
exposure to any financial institution. The credit risk on 
liquid funds is limited because the counterparties are 
financial institutions with strong credit ratings assigned 
by international credit-rating agencies. The possibility of 
material loss is therefore considered to be unlikely.

b) market risk
Currency risk
The Group does not have any significant foreign currency 
exposure, as the majority of revenue, purchases and capital 
expenditure are denominated in sterling. 

Cash flow interest-rate risk
The Group’s policy on managing interest rate risk is subject 
to regular monitoring of the effect of potential changes 
in interest rates on its interest cost with a view to taking 
suitable actions should exposure reach certain levels. The 

Group seeks to limit its exposure to fluctuating interest 
rates by keeping a significant proportion of the Group’s 
borrowings at fixed interest rates.

Financial assets
The Group holds its surplus funds in short-term bank deposits. 

Financial liabilities
As described above, after entering into a two-year cash flow 
interest rate swap arrangement in April 2008, interest-rate 
risk no longer arises on the Group’s acquisition debt.

The Group’s cash flow interest rate risk arises from long-
term borrowings issued at variable rates to finance its 
Private Finance Initiative and Public Private Partnership 
contracts. In order to reduce funding risk and maintain 
interest cover, the Group manages the risk by using floating-
to-fixed interest rate swaps. Under the swaps, the Group 
agrees to exchange, at specific intervals, the difference 
between fixed contract rates and floating rate interest 
amounts, calculated by reference to the agreed notional 
principal amount. These interest rate swaps have the effect 
of converting borrowings from floating rates to fixed rates 
for a specified period of time.

The Group’s obligations under finance leases carry interest 
at a fixed rate.

Other price risk
Other price risk, such as changes in the fair value of financial 
instruments being caused by movements in commodity or 
equity prices, is not applicable to the Group’s operations. The 
Group does not hold any investments in companies listed on 
recognised Stock Exchanges and the Group’s operations are 
not directly affected by changes in commodity prices.

c) Liquidity risk
Prudent liquidity management implies maintaining sufficient 
cash and the availability of funding through an adequate 
amount of committed credit facilities. The Group maintains 
adequate bank balances to fund its operations.

3.2 capital risk management
The Group’s objectives when managing capital are to 
safeguard the Group’s ability to continue as a going concern 
in order to provide returns for shareholders and benefits 
for other stakeholders and to maintain an optimal capital 
structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Group 
may adjust the amount of dividends paid to shareholders, 
return capital to shareholders, issue new shares or sell 
assets to reduce debt.

Consistent with others in the industry, the Group monitors 
capital in relation to overall financing. Further information 
can be found in Note 37 to the financial statements.

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50

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notes to the Consolidated FinanCial statements continued

4. critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are 
based on historical experience and other factors, including 
expectations of future events that are believed to be 
reasonable under the circumstances.

a) estimates
The Group makes estimates and assumptions concerning 
the future. The resulting accounting estimates will, by 
definition, rarely equal the related actual results. The 
estimates and assumptions that have a significant risk of 
causing a material adjustment to the carrying amounts 
of assets and liabilities within the next financial year are 
outlined below.

impairment of goodwill
Determining whether goodwill is impaired requires an 
estimation of the value-in-use of the cash-generating units 
to which goodwill has been allocated. The value-in-use 
calculation requires the Group to estimate the future cash 
flows expected to arise from the cash-generating unit and a 
suitable discount rate in order to calculate the present value. 
Actual outcomes could vary significantly from these estimates.

Value in use is determined through the analysis of 
discounted cash flow forecasts based on financial forecasts 
approved by management which takes account of both past 
performance and expected future market developments. 
Management has used a pre-tax discount rate of 6.75%, 
equivalent to the weighted average cost of capital of the 
Group. This has been determined as reflecting current 
market assessments of the time value of money and risks 
specific to the industry and Group. At the balance sheet 
date, the carrying value of goodwill was £57.1 million.

Property, plant and equipment
Useful economic lives of property, plant and equipment 
have been established based on historical experience and 
an assessment of the nature of the assets involved. At the 
balance sheet date, the carrying value of property, plant and 
equipment was £76.9 million.

Pensions
The directors have employed the services of an actuary in 
assessing pension liabilities. However, the directors recognise 
that final liabilities and asset returns may differ from actuarial 
estimates. At the balance sheet date, the carrying value of the 
retirement benefit surplus was £429,000.

b) Judgements
The following critical judgements have been made in 
preparing the financial statements which have a significant 
risk of causing a material adjustment to be made to the 
carrying amounts of assets and liabilities within the next 
financial year.

Recognition of a sale under lease arrangements
Where management consider, in substance, the sale of 
assets has taken place under a leasing arrangement the 

application requires management to determine whether it is 
the lessor or the lessee who substantially enjoys the risks 
and rewards of ownership under the lease arrangement. 
In cases where management conclude that the risks and 
rewards of ownership have been substantially transferred 
to the lessor the asset is treated as if it were a finance 
lease. Where management conclude that the Group have 
substantially retained the risks and rewards of ownership the 
sale is treated as if it were an operating lease. 

Residual values
Given the nature of the Group’s business, the main asset in 
the balance sheet is the vehicle fleet. The value at the end of 
the rental life will depend on the market for those vehicles at 
the time of disposal. Judgement is therefore required in the 
estimation of disposal value of certain fleet vehicles in the 
balance sheet.

Trade and other receivables
The Group regularly assesses the recoverability of its 
trade and other receivable balances. Where there is 
definitive evidence that the Group will not be able to collect 
all amounts outstanding, a provision for impairment is 
recognised. The Group utilises previous customer history, 
debtor ageing profiles and other relevant information in 
assessing the level of provision required.

Post-employment benefits
Application of IAS 19: “Employee Benefits”, requires the 
exercise of judgement in relation to setting the assumptions 
used by the actuaries in assessing the financial position of 
each scheme. The Group determines the assumptions to 
be adopted in discussion with its actuaries, and believes 
these assumptions to be in line with UK generally accepted 
practice, but the application of different assumptions could 
have a significant effect on the amounts reflected in the 
Income Statement and Balance Sheet in respect of post-
employment benefits. The sensitivity of principal scheme 
liabilities to changes in the assumptions used by actuaries is 
set out in Note 18.

Taxation
Significant judgment is required in determining the Group’s 
provision for tax. There are many transactions and calculations 
for which the ultimate tax determination is uncertain during 
the ordinary course of business. As a result, the exercising 
of judgment is required in order to assess the exposures in 
these areas and set the appropriate level of provision.

capitalised bid costs
Directly attributable bid costs in relation to separately 
identifiable revenue generating projects are capitalised  
to the extent they can be reliably measured. The nature  
of the business’ long term contracts dictates one off  
revenue generating projects come to fruition on an  
annual basis which creates the opportunity for such  
costs to be capitalised.

AssetCo plc Annual Report & Accounts 2009

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AssetCo plc Annual Report & Accounts 2009

51

Segment operating 
profit/(loss)

Net segment 
finance costs

Segment profit/(loss) 
before tax

Depreciation and 
amortisation

5. Primary segment information
For management purposes, the Group is organised into four main business segments as follows: 

integrated support services – provision of management services to the emergency services market
specialist equipment – sale and supply of specialist equipment to emergency services and the homeland security market 
vehicle Assembly – automotive engineering to the emergency services market
Non emergency – provision of asset management services

year ended 31 march 2009

integrated 
support 
services 
£’000

specialist 
equipment 
£’000

vehicle 
assembly 
£’000

Non 
emergency 
£’000

discontinued
 operations 
£’000

consolidation 
adjustments 
£’000

Total 
£’000

Segment revenue

32,221

13,181

43,040

3,952

4,114

(12,735)

83,773

14,408

1,453

1,458

232

(5,170)

(140)

12,241

(4,854)

(142)

(791)

(154)

(19)

(192)

(6,152)

9,554

1,311

4,305

163

667

296

1,674

18,503

Segment assets

308,122

11,752

23,664

Cost of acquired 
property, plant and 
equipment

10,603

163

140

–

Segment liabilities

179,263

2,984

26,844

14,270

All internal sales are generated within the vehicle assembly division.

78

(5,189)

(332)

6,089

108

–

6,546

–

–

–

(163,800)

198,241

–

10,906

(76,781)

146,580

The consolidation adjustments affecting the segment profit before tax relate to the elimination of inter-segment sales from 
the Vehicle Assembly Division to the Integrated Services Division (£12.735 million) and a charge for share-based payments 
(£140,000). Inter-segment sales are at cost.

The disclosures above in respect of discontinued operations all relate to the TVAC entity now in administration (see Note 30).

The depreciation and amortisation charges for each segment have been reported within the segment profit before tax.

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52

AssetCo plc Annual Report & Accounts 2009
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AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notes to the Consolidated FinanCial statements continued

5. Primary segment information continued
year ended 31 march 2008

integrated 
support 
services 
£’000

specialist 
equipment 
£’000

vehicle 
assembly 
£’000

Non 
emergency 
£’000

discontinued 
operations 
£’000

consolidation 
adjustments 
£’000

Group 
£’000

continuing 
operations

Segment revenue

25,005

18,192

43,719

6,129

4,302

(25,286)

72,061

Segment operating 
profit/(loss)

Net segment 
finance costs

Segment profit/(loss) 
before tax

Depreciation and 
amortisation

9,730

1,262

2,086

1,560

643

(440)

14,841

(4,027)

(125)

(377)

(228)

(187)

–

(4,944)

5,703

1,137

1,709

1,332

456

(440)

9,897

4,615

174

236

2,217

22,686

Segment assets

195,093

23,267

24,854

Cost of acquired 
property, plant and 
equipment

36,920

–

1,300

277

Segment liabilities

159,465

4,397

23,764

12,941

220

3,370

53

3,119

–

7,462

(88,368) 180,902

–

38,550

(68,061) 135,625

The consolidation adjustments affecting the segment profit before tax relate to the elimination of inter-segment sales from 
the Vehicle Assembly Division to the Integrated Services Division (£25.286 million) and a charge for share-based payments 
(£440,000). Inter-segment sales are at cost.

The depreciation and amortisation charges for each segment have been reported within the segment profit before tax.

AssetCo plc Annual Report & Accounts 2009

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AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

53

secondary reporting format – geographical segments
The Group manages its business segments in the UK, which is the home country of the parent Company. In addition, the 
Group provides business support services from its base in the Republic of Ireland which is disclosed under “Europe” below.

The revenue analysis below is based on the location of the service provided or sale made.

Revenue – continuing operations

UK

Europe

2009 
£’000

79,029

630

79,659

The majority of current assets are located in the UK where most of the capital expenditure is also incurred.

current assets

UK

Europe

capital expenditure

UK

Europe

6. Revenue
An analysis of the Group’s revenue is as follows:

continuing operations

Sale of goods

Emergency-related managed services

Leasing and contract hire

Support services

Revenue

discontinued operations

Leasing and contract hire

Sale of goods

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2008 
£’000

66,028

2,820

68,848

2008
£’000

45,699

180

45,879

2008
£’000

38,512

38

38,550

2009
£’000

52,935

167

53,102

2009
£’000

10,902

4

10,906

2009 
£’000

2008 
£’000

39,368

31,414

3,952

4,925

79,659

–

4,114

83,773

26,472

25,005

8,249

4,820

64,546

3,221

4,302

72,069

 
 
 
 
 
 
 
 
 
54

AssetCo plc Annual Report & Accounts 2009
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AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notes to the Consolidated FinanCial statements continued

7. Profit for the year
The profit for the year has been arrived at after charging/(crediting):

Net foreign exchange gains

Research and developments costs

Government grants towards employment costs

Depreciation of property, plant and equipment

Staff costs (Note 14)

Impairment loss recognised on trade receivables

8. Auditor’s remuneration

Fees payable to the Company’s auditor for the audit of the  
Company’s financial statements

Fees payable to the Company’s auditor for the audit of the  
Group’s financial statements

Fees payable to the Company’s auditor and their associates for other services to the Group:

Tax services

Corporate finance services

Other services

9. Other gains

Profit on disposal of property, plant and equipment

Profit on disposal of subsidiary undertakings 

10. finance income and finance costs

finance income

2009 
£’000

(1)

1

(205)

6,546

21,955

11

2009
£’000

73

147

220

2009
£’000

–

80

–

80

2009
£’000

292

–

292

2009
£’000

2008 
£’000

(8)

15

(301)

7,462

19,915

51

2008
£’000

70

210

280

2008
£’000

29

460

80

569

2008
£’000

16

1,000

1,016

2008
£’000

Interest income on short-term bank deposits

717

429

finance costs

Interest on bank borrowings and finance leases

Increase in valuation of shares classified as financial liabilities

6,677

192

6,869

5,373

–

5,373

Included within administrative expenses is a loss of £11,000 (2008: £51,000) in respect of the impairment of trade receivables.

 
 
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

55

11. Taxation

current tax

domestic tax

Current tax on income for the period

Adjustment in respect of prior years

foreign tax

Current tax on income for the period

current tax charge/(credit)

deferred tax

Deferred tax expense relating to the origination and
reversal of temporary differences

Deferred tax income resulting from reduction in tax rate

deferred tax charge

Taxation

2009
£’000

2008
£’000

–

–

(65)

(65)

1,200

–

1,200

1,135

172

(58)

217

331

1,734

(205)

1,529

1,860

Corporation tax is calculated at 28% (2008: 30%) of the estimated assessable profit for the year.

Taxation for other jurisdictions is calculated at the rates prevailing in those jurisdictions.

At 31 March 2009, net trading losses of approximately £9.241 million are available to be carried forward.

Tax reconciliation
The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the weighted average tax 
rate applicable to profits of the consolidated entities as follows:

Profit before tax (continuing operations)

(Loss)/Profit for the year from discontinued operations

Profit for the year

Tax calculated at domestic tax rates applicable to profits

Effect of: 

Income not subject to tax

Expenses not deductible for tax purposes

Utilisation of previously unrecognised tax losses

Amortisation of intangible assets

Rate difference on tax charge

Rate difference on deferred tax charge

Adjustment in respect of prior periods – current tax

Adjustment in respect of prior periods – deferred tax

Total tax charge for the period

2009
£’000

11,278

(5,189)

6,089

1,705

(16)

748

83

(51)

69

-

-

(1,403)

1,135

2008
£’000

8,982

915

9,897

2,969

(37)

426

373

(53)

(324)

(205)

(58)

(1,231)

1,860

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56

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notes to the Consolidated FinanCial statements continued

12. earnings per share
a) Basic
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted 
average number of ordinary shares in issue during the year.

from continuing operations

Profit attributable to equity holders of the Company

Loss/(Profit) from discontinued operations

Profit from continuing operations used to determine basic earnings per share

2009
£’000

4,954

5,189

10,143

2008
£’000

8,037

(915)

7,122

Weighted average number of ordinary shares in issue

72,528,482

68,100,097

Basic earnings per share (pence per share)

from continuing and discontinued operations

Profit attributable to equity holders of the Company

Weighted average number of ordinary shares in issue

Basic earnings per share (pence per share)

14.0

2009
£’000

4,954

10.5

2008
£’000

8,037

72,528,482

68,100,097

6.8

11.8

b) diluted
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to 
assume conversion of all dilutive potential ordinary shares. Dilutive potential ordinary shares comprise share options and 
warrants. A calculation is made to determine the number of shares that could have been acquired at fair value (determined  
as the average annual market share price of the Company’s shares) based on the monetary value of the subscription 
rights attached to outstanding share options and warrants. The number of shares calculated as above is compared with 
the number of shares that would have been issued assuming the exercise of the share options and warrants.

from continuing operations

Profit attributable to equity holders of the Company

Loss/(Profit) from discontinued operations

Profit from continuing operations used to determine diluted earnings per share

2009
£’000

4,954

5,189

10,143

2008
£’000

8,037

(915)

7,122

Weighted average number of ordinary shares in issue

72,528,482

68,100,097

Adjustments for:
 – share options and warrants

1,585,965

1,829,827

Weighted average number of ordinary shares used for diluted earnings per share

74,114,447

69,929,924

Diluted earnings per share (pence per share)

from continuing and discontinued operations

Profit attributable to equity holders of the Company

13.7

2009
£’000

4,954

10.1

2008
£’000

8,037

Weighted average number of ordinary shares in issue

72,528,482

68,100,097

Adjustments for:
 – share options and warrants

1,585,965

1,829,827

Weighted average number of ordinary shares used for diluted earnings per share

74,114,447

69,929,924

Diluted earnings per share (pence per share)

6.7

11.5

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

57

13. expenses by nature

Other direct costs

Employee benefit expense (Note 14)

Depreciation (Note 16)

Other indirect costs

Changes in inventories of finished goods and work in progress

Total cost of sales and administrative expenses

14. employee benefit expense

Wages and salaries

Social security costs

Pension costs – defined benefit plans (Note 18)

Other pension contributions

Share-based payments (Note 24)

The average monthly number of employees (excluding non-executive directors) was:

Directors

Production and operations

Sales, marketing and distribution

Administration

2009
£’000

24,352

21,955

6,546

7,935

1,441

62,229

2009
£’000

19,276

1,947

292

300

140

2008
£’000

20,474

19,915

7,462

4,041

1,493

53,385

2008
£’000

17,424

1,597

454

–

440

21,955

19,915

2009
Number

2008
Number

4

485

32

164

685

2

419

15

134

570

The increase in the average monthly number of employees during the year ended 31 March 2009 is due to the full year 
effect of employing staff previously connected with prior year acquisitions.

15. dividends
A final dividend of 1.25p (2008: 1p per share) has been recommended.

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58

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notes to the Consolidated FinanCial statements continued

16. Property, plant and equipment

Leasehold
land and
buildings
£’000

Leasehold
improvements
£’000

fixtures
and
fittings
£’000

equipment,
plant and
machinery
£’000

Assets under
long-term
arrangements
£’000

Total
£’000

Group

cost

At 1 April 2007 

Additions

Disposals

On acquisition

Assets held for sale

Exchange differences

–

–

–

1,200

–

–

2,421

49

–

150

–

61

771

10

–

617

–

34

46,565

1,952

(6,392)

887

(7,975)

34

47,606

36,539

97,363

38,550

(164)

(6,556)

–

–

–

2,854

(7,975)

129

83,981

10,462

124,365

10,906

At 31 March 2008

1,200

2,681

1,432

35,071

Additions

Disposals

On acquisition

Transfers out

Exchange differences

–

–

–

–

–

18

(23)

–

–

99

140

(28)

–

–

81

286

(11,655)

(1,259)

(12,965)

18

–

44

–

18

(1,810)

(1,810)

–

224

At 31 march 2009

1,200

2,775

1,625

23,764

91,374

120,738

depreciation

At 1 April 2007

Disposals

Charge for the year

On acquisition

Assets held for sale

Exchange differences

At 31 March 2008

Disposals

Charge for the year

On acquisition

Exchange differences

At 31 march 2009

Net book amount

At 31 march 2009

At 31 March 2008

–

–

4

27

–

–

31

–

8

–

–

39

310

–

169

109

–

7

595

(14)

192

–

13

786

469

–

103

512

–

12

29,628

(2,955)

3,386

636

(4,605)

4

16,121

46,528

(99)

(3,054)

3,800

–

–

–

7,462

1,284

(4,605)

23

1,096

26,094

19,822

47,638

(25)

132

–

45

(7,712)

2,430

–

17

(2,647)

(10,398)

3,784

6,546

–

–

–

75

1,248

20,829

20,959

43,861

1,161

1,169

1,989

2,086

377

336

2,935

8,977

70,415

64,159

76,877

76,727

The net book value of assets held under finance leases amounts to £72.9m (2008: £64.2m).

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

59

Assets held under long-term arrangements
Assets held under long-term arrangements comprise principally of items of operational equipment and motor vehicles that have 
been provided to customers under the Group’s Private Finance Initiative and Public Private Partnership long-term contracts.

During the year, as a result of management review revisions were made to the residual values and useful economic lives of certain 
assets. These revisions resulted in residual values ranging from £10,000 to £25,000 and  corresponding lives of 24 years.

This has resulted in a £1.5m reduction in the equivalent depreciation charge for the year ended 31 March 2009. It is 
anticipated the impact on future profitability will be similar over the course of the life of the assets.

depreciation
Depreciation expense of £5.4 million (2008: £6.7 million) has been charged in cost of sales and £1,093,000 (2008: 
£722,000) in administrative expenses.

security
Leasehold land and buildings with a carrying amount of £1.161 million (2008: £1.169million) have been pledged to secure 
borrowings of the Group (see Note 25) under a mortgage. The Group is not permitted to pledge these assets as security for 
other borrowings or to sell them to another entity.

In addition, the Group’s obligations under finance leases (see Note 25) are secured by the lessors’ title to the leased assets, 
which have a carrying amount of £3.881 million (2008: £6.633 million).

Assets under long-term arrangements include £72.929 million (2008: £64.159 million) in respect of assets secured by the lessor.

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60

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notes to the Consolidated FinanCial statements continued

17. intangible assets

Group

cost

At 1 April 2007

Acquisitions

Goodwill acquired with subsidiary 
undertakings

Additions

At 31 March 2008

Acquisition

Additions

Reclassified from tangible fixed assets

At 31 March 2009

Amortisation

At 1 April 2007

Charge for the year

At 31 March 2008

Charge for the year

At 31 March 2009

Net book amount

At 31 March 2009

At 31 March 2008

Goodwill
£’000

 Bid costs
£’000

software 
development 
costs
£’000

34,646

16,173

2,676

565

54,060

80

2,941

–

57,081

–

–

–

–

–

57,081

54,060

–

–

–

1,089

1,089

–

1,801

1,810

4,700

–

–

–

171

171

4,529

1,089

Total
£’000

34,695

16,639

2,676

1,654

55,664

80

5,444

1,810

62,998

5

23

28

223

251

49

466

–

–

515

–

702

–

1,217

5

23

28

52

80

1,137

487

62,747

55,636

Goodwill
The main changes in the carrying amounts of goodwill result from the finalisation of the initial accounting on prior year 
acquisitions previously carried out on a provisional basis and the differences between management estimates regarding 
deferred consideration and the amounts paid in the year.

Goodwill acquired in a business combination is allocated, at acquisition, to the cash generating units (“CGUs”) that are 
expected to benefit from that business combination. The carrying amount of goodwill has been allocated as follows:

Integrated Support Services

Specialist Equipment

Vehicle Assembly

2009
£’000

44,207

9,159

3,715

57,081

2008
£’000

43,507

6,838

3,715

54,060

The Group tests goodwill for impairment annually or more frequently if there are indications that goodwill might be impaired.

The recoverable amounts of the CGUs are determined from value in use calculations. The key assumptions for the value in 
use calculations are those regarding discount rates, growth rates and expected changes to selling prices and direct costs 
during the period. Management estimates discount rates using pre-tax rates that reflect current market assessments of the 
time value of money and the risks specific to the CGUs. The discount rate used at 31 March 2009 was 10%. The growth 
rates are based on internal growth forecasts. Changes in selling prices and direct costs are based on past practices and 
expectations of future changes in the market.

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

61

The Group prepares cash flow forecasts derived from the most recent financial budgets approved by management for the 
next ten years and extrapolates cash flows for the following ten years based on an estimated growth rate of 10%. This rate 
does not exceed the average long-term growth rate for the relevant markets.

intergrated support services
No impairment of goodwill has been recognised in respect of Emergency Services as the two contracts to which the goodwill 
relates, those with the London Fire and Emergency Planning Authority and the Lincolnshire Fire and Rescue Service, 
continue to grow in terms of revenue and profitability through the provision of additional services and improved cost control. 
These two contracts have remaining lives of 14 years and 17 years respectively.

specialist equipment and vehicle assembly
No impairment of goodwill has been recognised within the Vehicle and Emergency Equipment CGU as the directors are confident 
that continuous improvement programmes which were implemented post-acquisition will improve the underlying performance 
of the acquired businesses. Synergies with existing Group companies are also anticipated. The finalisation of acquisition 
accounting adjustments relating to certain acquisitions within the past twelve months has increased goodwill by £2.3m. 

computer software
In accordance with IAS 38, “Intangible Assets” computer software has been classified as an intangible asset.

Intangible assets recognised in respect of computer software costs are not internally generated and are considered to 
have finite lives of three years, the period over which the asset is amortised. The amortisation charge is included within 
administrative expenses in the income statement.

Bid costs
Bid costs are internally generated and are capitalised once preferred bidder status has been secured. They are considered 
 to have finite lives which equate to the length of the contract they have secured.

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62

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notes to the Consolidated FinanCial statements continued

18. Retirement benefit obligations
The Assetco Pension scheme
The AssetCo Pension Scheme (formerly The Brook Henderson Pension Scheme) commenced on 11 October 2003 as a 
defined benefit pension scheme based in the United Kingdom. The assets of the scheme are administered by trustees in a 
fund independent from those of the Group. The last full actuarial valuation was carried out as at 31 March 2009 and showed 
a surplus of £749,000.

Todd Research Limited Retirement Benefits scheme
The Todd Research Limited Retirement Benefits Scheme was originally established for the benefit of certain employees 
based in the United Kingdom. The defined benefit scheme is now closed to new members and the Group has agreed to 
make additional contributions over the next ten years in order to meet the expected obligations of the scheme. The assets 
of the scheme are administered by trustees in a fund independent from those of the Group.

Trustees in a fund independent from those of the Group 
The information set out overleaf is in respect of both The AssetCo Pension Scheme and the Todd Research Limited 
Retirement Benefit Scheme.

Balance sheet surplus for:

Group

Retirement benefits – surplus

Income statement credit for:

Retirement benefits

The amounts recognised in the balance sheet are determined as follows:

Group

Fair value of plan assets

Present value of funded obligations

Present value of over-funded obligations

Unrecognised actuarial gains

Asset in the balance sheet

2009
£’000

429

Group
2009
£’000

–

2009
£’000

5,171

(4,422)

749

(320)

429

2008
£’000

429

Group
2008
£’000

(100)

2008
£’000

6,424

(4,376)

2,048

(1,619)

429

The unrecognised actuarial gains are to be deferred over the estimated working lives of the members of The AssetCo 
Pension Scheme and the Todd Research Limited retirement pension scheme.

The movement in the fair value of scheme assets during the year is as follows:

Group

Beginning of year

Expected return on plan assets

Actuarial losses

Employer contributions

Employee contributions

Benefits paid

End of year

2009
£’000

6,424

415

(1,586)

264

43

(389)

5,171

2008
£’000

6,010

349

(464)

537

61

(69)

6,424

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

63

The movement in the fair value of the defined benefit obligation during the year is as follows:

Group

Beginning of year

Current service cost

Interest cost

Contributions by members

Actuarial losses

Benefits paid

Additional contribution by employer

Change of assumptions

Curtailment

End of year

The amounts recognised in the income statement are as follows:

Group

Current service cost

Interest cost

Expected return on plan assets

Net actuarial gains recognised during the year

Curtailment

Total

2009
£’000

(4,376)

(284)

(274)

(43)

(100)

389

–

454

(188)

(4,422)

Group
2009
£’000

324

274

(415)

(79)

188

292

2008
£’000

(5,723)

(598)

(305)

(61)

(161)

69

42

2,361

–

(4,376)

Group
2008
£’000

598

305

(349)

(100)

–

454

Of the total, £292,000 (2008: £454,000) has been included in staff costs within administrative expenses.

The actual return on plan assets was a loss of £1,171,000 (2008 loss: £115,000).

The estimated contributions expected to be paid to the two schemes during the current financial year is approximately £600,000.

The principal actuarial assumptions used were as follows:

Discount rate

Expected return on plan assets

Future salary increases

Future pension increases

Inflation

2009
%

6.7

6.5

2.25

2008
%

6.3

6.5

2.25

2.1 – 2.75

2.1 – 2.75

2.25

2.75

A range of assumptions is quoted for the year ended 31 March 2009 as the actuarial valuations for the two schemes were 
undertaken by two different actuaries. 

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64

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notes to the Consolidated FinanCial statements continued

18. Retirement benefit obligations continued
mortality rate
Assumptions regarding future mortality experience are set based on advice, published statistics and experience. 

The average life expectancy of a pensioner retiring at age 60 on the balance sheet date, is estimated using the following 
industry-standard mortality tables:

Male

Female

2009

PmA92

PfA92

2008

PMA92

PFA92

The average life expectancy in years of a pensioner retiring at age 60 twenty years after the balance sheet date, is estimated 
using the following industry-standard mortality tables: 

Male

Female

2009

PmA92

PfA92

2008

PMA92

PFA92

The analysis of the assets of the two schemes and the expected rate of return at the balance sheet date was as follows:

Equities

Government bonds

Corporate bonds

Cash and cash equivalents

 expected return

fair value of assets

2009
%

7.5

4.5

6.3

–

6.5

2008
%

7.5

4.5

6.3

–

6.5

2009
£’000

3,032

–

2,098

41

5,171

2008 
£’000

3,318

1,584

1,522

–

6,424

The overall expected rate of return is determined based on past experience and expectations regarding future market conditions.

Amounts in the current and previous years are as follows:

Defined benefit obligation

Plan assets

Surplus/(liability)

19. inventories

Group

Raw materials and consumables

Finished goods and goods for resale

2006

520

431

(62)

2007

5,723

6,010

287

2008

4,376

6,424

429

2009
£’000

2,138

4,469

6,607

2009

4,422

5,171

429

2008
£’000
Restated

1,941

3,969

5,910

The cost of inventories recognised as an expense and included in cost of sales amounted to £21.797 million (2008: £21.967 million).

Inventories with a carrying amount of £6.607 million (2008: £8.048 million) have been pledged as security for some of the 
Group’s bank loans.

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

65

20. Trade and other receivables

Group

Trade receivables

Less: impairment of receivables

Trade receivables – after impairment

Other receivables

Finance lease debtor

Prepayments and accrued income

Corporation tax recoverable

2009
£’000

8,588

(11)

8,577

1,604

4,991

8,825

–

23,997

2008
£’000

14,664

(273)

14,391

969

–

6,013

140

21,513

The Group had an insignificant concentration of credit risk at the balance sheet date with five (2008: five) of its largest 
customers accounting for 33% (2008: 26%) of trade receivables at 31 March 2009. The Group has long-standing relationships 
with two of these customers through long-term contracts, and all five are public sector bodies which are deemed to have 
no default risk. The majority of outstanding balances at the balance sheet date have been subsequently received.

The Group has impaired fully all receivables that are considered to be doubtful based on the difference between the carrying 
amount and the present value of estimated future cash flows determined by reference to past experience, the ageing of the 
debt and the financial standing of the customer.

Prior to conducting business with a new customer, appropriate credit checks are undertaken with a reputable international 
credit reference agency.

The movement in the provision for impairment of trade receivables is as follows:

Group

At the beginning of the year

Impairment losses recognised

Amounts written off as uncollectible

Amounts recovered during the year

At the end of the year

The ageing of overdue trade receivables is as follows:

Group

60 – 90 days

90 – 120 days

Total

2009
£’000

273

11

(265)

(8)

11

2009
£’000

173

273

446

2008
£’000

477

51

(195)

(60)

273

2008
£’000

21

252

273

There is no impairment in respect of other receivables.

The directors consider that the carrying amount of trade and other receivables approximates their fair value.

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66

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notes to the Consolidated FinanCial statements continued

21. cash and cash equivalents

Group

Cash and cash equivalents

Short-term deposits

2009
£’000

4,533

17,965

22,498

Cash, cash equivalents and bank overdrafts include the following for the purposes of the cash flow statement:

Group

Cash and cash equivalents

Bank overdrafts

2009
£’000

22,498

(3,693)

18,805

2008
£’000

4,219

8,677

12,896

2008
£’000

12,896

(12,502)

394

At 31 March 2009, the cash at bank and short-term deposits were held with ten different international banks (2008: nine). 
Financial assets are placed with banks at floating rates over periods ranging from overnight to three months depending upon 
forecast cash flow movements and earn interest at prevailing rates in the money market.

Included within short term deposits is an amount representing £6.5m, which is held as security against borrowings. Per the 
borrowing agreement this amount is to be held on deposit until the loan’s maturity date. The monies deposited shall be used 
to repay any residual balances on the borrowings at the maturity date. 

22. Assets held for sale
On 29 April 2008, the Group disposed of its interest of certain non-core assets and associated liabilities in respect of its 
contract with Northern Ireland Electricity for the provision of contract hire services. These assets and the corresponding 
finance lease liability were included within assets held for sale and liabilities associated with assets held for sale in the 
prior year. The operations are included within the 2008 non emergency segment in Note 5. 

The major classes of assets and liabilities comprising the operations classified as held for sale are as follows:

Group

Property, plant and equipment

Total assets classified as held for sale

Finance lease liabilities

Total liabilities associated with assets classified as held for sale

Net assets of disposal group

2009
£’000

–

–

–

–

–

2008
£’000

3,370

3,370

3,119

3,119

251

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

67

23. derivative financial instruments
interest rate swaps
At 31 March 2009, three cash flow hedge arrangements were in place covering loans of £44.5 million at a fixed rate of 
5.795% payable monthly, £7.9m million at a fixed rate of 4.63% monthly (2008: £nil) and £3.7m at a fixed rate of 3.43% 
monthly (2008: £nil).

The fair value of the hedge arrangements at 31 March 2009 represents a liability of £7.125 million (2008: asset of £2.19m) 
giving rise to a negative hedging reserve of £5.130 million. A deferred tax asset of £1.995m has been reflected in the 
hedging reserve.

These amounts are based on market values of equivalent instruments at the balance sheet date. The interest rate swaps are 
designated and effective as cash flow hedges and the fair value thereof has been taken to the hedging reserve. An analysis 
of the financial instruments designated as hedging instruments, their fair values at reporting date and the nature of risks 
being hedged is set out below:

Title

description

Nature of 
Risk being 
hedged

Period 
termination 
dates

Cash Flow
 Hedge

Interest Rate
 Risk

Cash Flow
 Hedge

Interest Rate
 Risk

31 March 
2021

19 April 
2026

Cash Flow
 Hedge

Interest Rate
 Risk

14 October 
2010

HBOS Swap

Co-Op Swap

Barclays Swap

Total

swap fair 
value pre 
settlement 
31 march 
2008
£’000

settlement 
paid
£’000

fair value 
movement 
in the year
£’000

swap fair 
value post 
settlement 
31 march
2009
£’000

2,001

2,083

(10,227)

(6,143)

189

318

(1,282)

(775)

–

2,190

24

2,425

(231)

(207)

(11,740)

(7,125)

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68

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notes to the Consolidated FinanCial statements continued

24. share capital

At 1 April 2008

Issue of ordinary shares

Equity element of compound financial 
instruments issued

At 31 march 2009

Number of 
shares

71,832,554

1,546,852

7,917,000

81,296,406

share capital
£’000

17,958

387

7,917

26,262

share
premium
£’000

25,197

918

–

26,115

Total
£’000

43,155

1,305

7,917

52,377

The total authorised number of ordinary shares is 95,000,000 (2008: 95,000,000) with a nominal value of 25 pence per 
share (2008: 25 pence per share). All issued shares are fully paid.

In addition, the Company issued 1,546,852 shares in part consideration for two acquisitions made in prior years, one of  
which was made by another Group company, in settlement of deferred consideration.

On 28 January 2009, 15,000,000 preference shares were issued at nominal value. The associated costs of share issue 
amounted to £230,000. In addition £7,045,000 of these shares have been classified as financial liabilities. £7,917,000  
of these shares have been classified as equity as the shares can be converted into ordinary shares of the Group.

share-based payments
The charge for the year in respect of share-based payments, comprising share options and warrants, is £196,000 (2008: £440,000).

a) share options
Share options are granted to directors and to selected employees. The Group has no legal or constructive obligation to 
repurchase or settle the options in cash.

Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:

At 1 April

Granted

Exercised

Forfeited

Lapsed

At 31 March

31 march 2009

 31 march 2008

Average
exercise price
£ per share

1.77

–

–

1.82

–

1.76

Average
exercise price
£ per share

1.36

 2.5858

2.14

1.69

1.36

1.77

Options

1,819,327

–

–

(466,724)

–

1,352,603

Options

1,736,205

689,500

(60,000)

(521,378)

(25,000)

1,819,327

Out of the 1,352,603 outstanding options (2008: 1,819,327), 290,000 (2008: 290,000) were exercisable. 

Share options outstanding at the end of the year have the following expiry date and exercise prices:

expiry date

4 December 2013

29 March 2017

30 July 2017

30 July 2007

22 November 2017

22 November 2017

28 November 2017

exercise price
£ per share

shares
31 march 2009

shares
31 march 2008

1.00

1.45

2.30

3.00

2.30

3.00

2.04

210,000

698,103

120,000

160,000

100,000

40,000

24,500

290,000

919,827

185,000

260,000

100,000

40,000

24,500

1,352,603

1,819,327

The fair value of options at grant date were determined using the Black-Scholes method.

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

69

25. Borrowings

Group

Non-current

Bank borrowings

Finance lease liabilities

Other loans

Group

current

Bank overdrafts

Bank borrowings

Finance lease liabilities

Other loans

Total borrowings

2009
£’000

27,693

53,983

–

81,676

2009
£’000

3,693

4,319

8,831

–

16,843

98,519

2008
£’000

18,961

50,002

1,007

69,970

2008
£’000

12,502

5,989

8,084

250

26,825

96,795

Total borrowings include secured liabilities of £98,519 million (2008: £96,795 million). The Group’s bank loans and 
overdrafts are secured by a debenture over the assets of the Group. 

The increase in total borrowings is due to the increase in asset-backed finance in the year. Non-recourse finance amounts 
outstanding have fallen by £3m in the year.

Finance lease liabilities principally relate to assets provided to customers under long-term arrangements.

The repayment dates of the Group’s borrowings are as follows:

Less than one year

One to two years

Two to five years

After five years

Group
2009
£’000

16,843

21,353

33,999

26,324

98,519

Group
2008
£’000

26,825

9,169

32,944

27,857

96,795

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70

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notes to the Consolidated FinanCial statements continued

25. Borrowings continued
Bank borrowings
Bank borrowings mature until November 2016.

Details of the Group’s bank borrowings at 31 March 2009 are summarised as follows:

date

November 2007

November 2007

January 2008

July 2008

September 2008

September 2008

March 2009

initial loan

£16 million

£5 million

£1.5 million

£4.5 million

£4.1 million

£0.96 million

£4 million

Term

9 years

41 months

5 years

20 months

5 years

7 years

4 years

Rate

1.75% over 1 month Libor

2% over 1 month Libor

1.6% over 3 month Libor

2.5% over 3 month Libor

2.75% over 1 month Libor

2.5% over 1 month Libor

2% over base

At 31 March 2009, the Group had seven principal loans with four different financial institutions. Loans of £16 million and  
£5 million were repayable over 9 years and 3.5 years respectively at a rate of 2% over 3-month Libor. 

The fair value of the non-current borrowings is as follows:

Group

Bank borrowings

Finance lease liabilities

Other loans

2009
£’000

27,693

53,983

–

81,676

2008
£’000

18,961

50,002

1,007

69,970

The fair value of current borrowings equals their carrying amount, as the impact of discounting is not significant. The fair 
values are based on cash flows discounted using a rate based on the borrowing rate of 6.5% (2008: 6.75%).

The carrying amounts of short-term borrowings approximate their fair value.

The facilities expiring within one year are annual facilities subject to review at various dates during 2009. The other facilities 
have been arranged to help finance the ongoing build programme for the London Fire and Emergency Planning Authority 
and the Lincolnshire Fire and Rescue Service.

finance lease liabilities
Lease liabilities are effectively secured as the rights to the leased asset revert to the lessor in the event of default.

Minimum lease payments under finance lease liabilities are as follows:

Group

No later than 1 year

Later than 1 year and no later than 5 years

Later than 5 years

Future finance charges on finance leases

Present value of minimum lease payments

2009
£’000

12,182

42,149

26,056

80,387

(17,573)

62,814

2008
£’000

11,287

37,016

25,834

74,137

(16,051)

58,086

Finance lease liabilities are secured by a first and only debenture from the Company and a subsidiary undertaking and first 
and only chattel mortgage over the assets of one of the Group companies.

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

71

The present value of finance lease liabilities is as follows:

Group

No later than 1 year

Later than 1 year and no later than 5 years

Later than 5 years

2009
£’000

9,542

33,188

20,084

62,814

2008
£’000

8,084

28,344

21,658

58,086

The average lease term is 11 years. For the year ended 31 March 2009, the average effective borrowing rate on leases was 
6.75% (2008: 6.75%). All leases are on a fixed repayment basis and no arrangements have been entered into for contingent 
rental payments.

26. financial assets and liabilities
The following tables illustrate the categorisation and carrying value of financial assets and liabilities as at 31 March 2009:

financial assets

Investments in associates and joint ventures

Trade and other receivables

Cash and cash equivalents

financial liabilities

Loans and 
receivables
£’000

Non financial 
assets
£’000

–

23,998

22,498

46,496

414

–

–

414

Held for 
trading
£’000

Other financial 
liabilities at 
amortised cost
£’000

Liabilities not 
within the scope 
of iAs 39
£’000

Trade and other payables

Bank overdraft

Borrowings – current portion

Current tax payable

Finance lease liability – current

Borrowings – non-current

Finance lease liability – non-current

Equity component of compound 
financial instruments

Derivatives – non-current

–

–

–

–

–

–

–

–

7,125

7,125

12,108

3,693

4,319

–

8,831

27,693

53,983

7,045

–

14,772

–

–

255

–

–

–

–

–

Total
£’000

414

23,998

22,498

46,910

Total
£’000

26,880

3,693

4,319

255

8,831

27,693

53,983

7,045

7,125

117,672

15,027

139,824

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72

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notes to the Consolidated FinanCial statements continued

Total
£’000

26,880

3,693

94,826

255

7,045

7,125

139,824

Total 
£’000

3,438

1,902

8

613

26. financial assets and liabilities continued
Contractual discounted cash flows in respect of financial liabilities are as follows:

Trade and other payables

Bank overdraft

Borrowings and finance lease liabilities

Current tax payable

Equity component of compound 
financial instruments

Derivatives 

Less than 
one year
£’000

One to 
two years
£’000

Two to 
five years
£’000

more than 
five years
£’000

26,880

3,693

14,651

255

–

45,479

–

–

–

–

–

–

26,353

27,499

26,323

–

–

208

26,561

–

7,045

–

34,544

–

–

6,917

33,240

Derivatives outlined above relate to future interest rate swaps secured on asset finance and borrowings.

27. deferred Tax
deferred tax liabilities

Group

At 1 April 2007

Charged/(Credited) to the income statement

Arising on acquisition

Arising on derivative financial instruments

At 31 March 2008

Charged/(Credited) to the income statement

Arising on acquisition

Arising on derivative financial instruments

deferred tax liability at 31 march 2009

deferred tax assets

Group

At 1 April 2007

Charged/(Credited) to the income statement

Arising on acquisition

At 31 March 2008

Charged/(Credited) to the income statement

Arising on acquisition

Arising on derivative financial instruments

deferred tax asset at 31 march 2009

Accelerated
tax 
depreciation
£’000

Other 
£’000

Tax losses
 £’000

3,446

2,029

5,475

2,084

–

–

7,559

–

–

613

613

171

–

(614)

170

(8)

(127)

8

(127)

5,961

(846)

–

–

(973)

1,409

–

(614)

6,756

Accelerated
tax 
depreciation
£’000

Other 
short-term
timing 
differences
 £’000

Tax losses
£’000

(149)

(803)

–

(952)

558

1

–

(393)

(56)

26

–

(30)

(269)

–

(1,995)

(2,294)

(62)

404

(1,177)

(835)

(498)

(552)

–

(1,885)

Total
£’000

(267)

(373)

(1,177)

 (1,817)

(209)

(551)

(1,995)

(4,572)

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

73

28. Trade and other payables

Group

Trade payables

Social security and other taxes

Other creditors

Accruals and deferred income

Deferred consideration

29. Provisions

Group

At 1 March 2008

Utilised in year

At 31 march 2009

2009 
£’000

8,550

4,236

450

 10,086

3,558

26,880

2008 
£’000

12,792

2,892

2,507

4,507

5,173

27,871

Total 
£’000

1,549

(1,549)

–

Restructuring
The prior year provision covered redundancy costs of approximately £1.324 million and other direct costs attributable to the 
restructuring, including lease termination costs this has been paid in full in the year.

The current year restructuring charge includes redundancy and other direct costs attributable to restructuring all of which 
have been paid in the year.

30. investments
Details of Group companies can be found in Note 31 to the financial statements.

discontinued operations
Discontinued operations include activities relating to the TVAC business which went into administration in December 2008. 
Details of entity performance in the year are outlined below:

Revenue

Expenses

Net (loss)/profit after tax

 2009 
£’000

4,114

(9,303)

(5,189)

2008 
£’000

3,221

(2,765)

456

Prior year discontinued operations include the result of the Northern Ireland Electricity contract which was disposed of in 
April 2008. This contract contributed a profit of £0.459 million in 2008.

The effect of discontinued operations on segment results is disclosed in Note 5 to the financial statements.

The net cash flows attributable to TVAC – The Vehicle Application Centre Limited are as follows:

Operating cash flows

Investing cash flows

Net cash outflow

 2009 
£’000

(3,684)

(17)

(3,701)

2008 
£’000

(1,252)

(42)

(1,294)

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AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notes to the Consolidated FinanCial statements continued

30. investments continued
Earnings per share in relation to discontinued operations are as follows:

Basic

Diluted

2009

(7.2)p

(7.0)p

2008

1.3p

1.4p

investment in associate
On 26 November 2007, the Group acquired 25% of the issued share capital of Miquest Limited, a company which provides 
integrated solutions for asset management, for consideration of £414,000. Miquest Limited was incorporated in England and 
Wales.

Group

At 31 March 2008 and 2009

investment in Associate 
£’000

414

Investment in associates at 31 March 2009 includes goodwill of £472,000.

The Group’s share of the results of its associate, which is unlisted, and its share of the assets, including goodwill, and 
liabilities, is as follows:

Group

Miquest Limited 

Assets 
£’000

139

Liabilities 
£’000

Revenue 
£’000

20

303

Profit 
£’000

10

interest 
%

25

No profit has been recognised in the consolidated financial statements.

interests in joint ventures
The Group has a 50% interest a joint venture, ADATT Limited, which undertakes vehicle conversions. The following amounts 
represent the assets and liabilities, and sales and results of the joint venture. Due to their immateriality to the financial 
statements, no amounts are included in the balance sheet and income statement. 

Group

Assets

Current assets

Liabilities

Current liabilities

Net assets

Income

Expenses

(Loss)/Profit before tax

2009 
£’000

2008 
£’000

830

851

(827)

(846)

3

5

2,634

(2,636)

(2)

5,459

(5,456)

3

There are no contingent liabilities relating to the Group’s interests in the joint ventures, and no contingent liabilities of the 
ventures themselves. 

AssetCo plc Annual Report & Accounts 2009

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AssetCo plc Annual Report & Accounts 2009

75

31. Group undertakings
The accounting parent company, AssetCo Group Limited, has a controlling interest through shares, directly or indirectly,  
in the following group undertakings:

Percentage  
of shares held

country of 

subsidiary

incorporation Group company

integrated support services

shares
 held

Nature of business

AssetCo Emergency Limited

AssetCo Engineering Limited

AssetCo Lincoln Limited

AssetCo London Limited

AssetCo Managed Services  
(ROI) Limited

MFlow Limited

AssetCo Bermuda Limited

AssetCo Resource Limited

RIG Systems Limited

Nene Whitewater Centre 

Simentra Limited

specialist equipment

AS Fire and Rescue 
Equipment Limited

AS Security BV

AssetCo Emergency  
Equipment Limited

AssetCo Specialist  
Equipment Limited

Leftfield Group Limited

England & Wales

England & Wales

N. Ireland

England & Wales

Republic of Ireland

England & Wales

Bermuda

England & Wales

England & Wales

England & Wales

N. Ireland

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

Ordinary

Holding company

–

–

–

Ordinary Management of emergency equipment

Ordinary

Ordinary

Emergency managed services

Emergency managed services

100%

Ordinary

Business support services

–

Ordinary Electrical and communications systems

100%

100%

Ordinary Consultancy and business development

Ordinary

Human resources consultancy

–

Ordinary

Specialist training provider

Ordinary

Specialist training provider

100%

Ordinary

Security consultancy

England & Wales

The Netherlands

100%

100%

–

–

Ordinary

Ordinary

Manufacture and distribution  

of safety equipment

Sales

England & Wales

87%

87%

Ordinary

Holding company

England & Wales

England & Wales

80%

100%

Todd Research Limited

England & Wales

100%

–

–

–

Ordinary

Ordinary

Ordinary

Holding company

Holding company

Manufacture and distribution  

of security equipment

Distribution of safety and  

cutting equipment

Fire Safety Equipment Limited

England & Wales

100%

100%

Ordinary

Vehicle assembly

Auto Electrical Services (Manchester) 
Limited

England & Wales

Papworth Specialist Vehicles Limited

England & Wales

AssetCo Specialist Vehicles Limited

England & Wales

UV Modular Limited

Non emergency

England & Wales

100%

100%

100%

100%

–

–

–

–

Ordinary

Electrical and communications systems

Ordinary

Ordinary

Ordinary

Assembly of emergency equipment

Holding company

Assembly of specialist vehicles

AssetCo Municipal Limited

England & Wales

100%

100%

Ordinary

Fleet and management services

dormant companies

Asfare No.1 Limited

AssetCo Contracts Limited

AssetCo Servicecare Limited

AssetCo Solutions Limited

Fire Guns Limited

Sacol Group 1990 Limited

AS America Inc

AssetCo SVO Limited

Blue Amber Red Limited

AssetCo Managed Services Limited

England & Wales

N. Ireland

N. Ireland

N. Ireland

England & Wales

England & Wales

USA

England & Wales

England & Wales

England & Wales

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

–

–

–

–

–

–

–

–

100%

100%

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

Ordinary

Common

Ordinary

Ordinary

Ordinary

Dormant

Dormant

Dormant

Dormant

Dormant

Dormant

Dormant

Dormant

Dormant

Dormant

Details of the Group’s investments in associates and interests in joint ventures are given in Note 30 to these financial statements.

The percentage of shares held equates to voting rights for all of the subsidiaries listed above.

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AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notes to the Consolidated FinanCial statements continued

32. Reconciliation of profit before tax to net cash generated from operations

Profit for the year before taxation

Adjustments for:

Depreciation

Amortisation

Profit on disposal of property, plant and equipment

Profit on disposal of subsidiary undertakings

Increase in share-based payments

Movement in restructuring provision

Decrease in retirement benefit obligations

Finance income

Finance costs

changes in working capital (excluding the effects of acquisitions)

Inventories

Trade and other receivables

Trade and other payables

cash generated from operations

2009 
£’000

6,089

6,546

223

(292)

–

140

(1,549)

–

(717)

6,869

(697)

(2,625)

(972)

13,015

2008 
£’000

9,897

7,462

23

(16)

(1,000)

440

1,549

(142)

(429)

5,373

1,493

452

(10,979)

14,123

33. Business combinations
During the year, the Group completed the acquisition of Nene Whitewater Centre for consideration of £25,000 and 
professional fees of £35,000 creating goodwill on acquisition of £80,000. A further £1.8m of goodwill has arisen due  
to a series of fair value adjustments on prior year acquisitions as follows:

a) Uvm
A further £1m deferred consideration has arisen following a detailed fair value review of the business in the year.  
This has resulted in an additional £1m of goodwill generated in relation to the acquisition of this subsidiary.

b) RiG systems
A further £0.7m in excess of the initial fair value consideration was paid in relation to the acquisition of RIG Systems Limited 
in the year. This has resulted in an additional £0.7m goodwill being created. 

c) TvAc – The vehicle Application centre Limited
As set out in note 2 the prior year balance sheet has been restated due to a final fair value adjustment made in relation to 
inventory. The effect of this has been to increase goodwill and decrease inventories by £2.1 million.

34. events after the balance sheet date
On 9 June 2009, the Board recommended a final dividend for the year to 31 March 2009 of 1.25p per share (2008 1p  
per share). This dividend has not been included as a liability at 31 March 2009.

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

77

35. Related party transactions
Related parties comprise the Company’s shareholders, subsidiaries, associated companies, joint ventures, other entities 
over which the shareholders of the Group have the ability to control or exercise significant influence over their financial and 
operating decisions and key management personnel. Transactions between the Company and its subsidiaries have been 
eliminated on consolidation and are not disclosed in this note. 

During the year, the Group entered into the following significant transactions with related parties at prices and on terms 
agreed between the related parties:

Key management compensation (excluding non-executive directors)

Group

Salaries and other short-term employee benefits

Post employment benefits

Amounts due to related parties

Group

Directors’ loan accounts

Graphic Traffic Limited

 2009 
£’000

375

–

375

 2009 
£’000

130

–

130

2008 
£’000

1,173

25

1,198

2008 
£’000

1,837

–

1,837

Graphic Traffic Limited is a related party due to John Shannon being a common director. During the year, the Group made 
purchases of £231,302 (2008: £119,000) from this company.

Amounts due from related parties

Group

Due from Star Rentals Limited

Due from Ballendere Limited

due less than
one year
£’000

due greater than
one year
£’000

128

185

313

-

500

500

Ballendere Limited and Star Rentals Limited are related parties by virtue of the fact that certain directors are considered 
to be ‘connected persons’ with John Shannon in accordance with section 346 (2) of the Companies Act 1985 and IAS 24 
‘Related Party Disclosures’.

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AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notes to the Company FinanCial statements
notes to the Consolidated FinanCial statements continued

36. commitments
capital commitments
Capital expenditure contracted for at the balance sheet date but not yet incurred is as follows:

Group

Capital expenditure

2009 
£’000

–

 2008 
£’000

–

Operating lease commitments
The Group leases various assets under non-cancellable operating lease agreements. The leases have varying terms and 
renewal rights.

The future aggregate minimum lease payments under non-cancellable operating leases are as follows:

Within one year

Within two to five years

After five years

2009 
£’000

141

-

1,457

1,598

Lease payment receivable as lessor
The future aggregate minimum lease receipts under non-cancellable operating leases are as follows:

Not later than one year

Later than one year and not later than five years

Later than five years

2009 
£’000

24,400

97,600

182,400

304,400

 2008 
£’000

1,660

6,676

595

8,931

 2008 
£’000

23,900

95,600

192,000

311,500

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

79

37. capital management policies and procedures
The Group’s capital management objectives are to ensure the Group’s ability to continue as a going concern and to provide 
an adequate return to shareholders.

The Group monitors capital on the basis of the carrying amount of the equity less cash and cash equivalents as presented on 
the face of the balance sheet.

The movement in the capital to overall financial ratio is shown below.

The Group manages the capital structure and makes adjustments in light of changes in economic conditions and the risk 
characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Group may adjust the level of 
dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Equity

Less: cash and cash equivalents

capital

Equity

Borrowings

Overall financing

capital to overall financing

2009 
£’000

51,561

(22,498)

29,063

2009 
£’000

51,561

98,519

150,080

19%

 2008 
£’000

45,277

(12,896)

32,381

 2008 
£’000

45,277

96,795

142,072

23%

38. Parent company
The financial statements of the legal parent company, AssetCo plc, can be found in a separate section of the Annual Report.

The Company has taken advantage of Section 230 of the Companies Act 1985 and has not included its own profit and loss 
account in the parent company financial statements. The loss for the year of the Company for the year was £0.86 million 
(2008: loss £0.736 million).

39. Ultimate controlling party
The Company is listed on the Alternative Investment Market of the London Stock Exchange. The Company is not under the 
control of any one individual. Significant holdings in the shares of the Company are disclosed in the Report of the Directors.

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80

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

build 
management

AssetCo is a leading supplier of specialist 
vehicles and platforms to the emergency  
and other mission critical services. With  
a heritage built on over 60 years of 
vehicle build management, AssetCo 
uses the latest design technology and 
manufacturer information to deliver 
vehicles and platforms to meet  
the specific needs of our clients.

AssetCo plc Annual Report & Accounts 2009

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81

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in this seCtion:

Independent Auditor’s Report

Company Balance Sheet

Notes to the Company  
Financial Statements

82

83

84

 
 
 
 
 
 
 
 
82

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AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

report to the independent auditor (company financial statements)
notes to the Company FinanCial statements continued

We have audited the parent company financial statements 
of AssetCo plc for the year ended 31 March 2009 which 
comprise the balance sheet and notes 1 to 15 of the 
financial statements. These parent company financial 
statements have been prepared under the accounting 
policies set out in note 2 of the financial statements. 

We have reported separately on the consolidated financial 
statements of AssetCo plc for the year ended 31 March 2009.

This report is made solely to the Company’s members, as 
a body, in accordance with Section 235 of the Companies 
Act 1985. Our audit work has been undertaken so that we 
might state to the Company’s members those matters we 
are required to state to them in an auditor’s report and for 
no other purpose. To the fullest extent permitted by law, we 
do not accept or assume responsibility to anyone other than 
the Company and the Company’s members as a body, for our 
audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and 
independent auditor
The directors’ responsibilities for preparing the Annual 
Report and parent company 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 parent company 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 parent 
company financial statements give a true and fair view 
and whether the financial statements have been properly 
prepared in accordance with the Companies Act 1985. We 
also report to you whether in our opinion the Report of the 
Directors is consistent with the financial statements. The 
information given in the Report of the Directors includes that 
specific information presented in the Chairman’s Statement 
and the Reports of the Chief Executive Officer and Chief 
Financial Officer that is cross referenced from the “Review 
of business and future developments” section of the Report 
of the Directors.

In addition, we report to you if, in our opinion, the Company 
has not kept proper accounting records, if we have not 
received all the information and explanations we require for 
our audit, or if information specified by law regarding directors’ 
remuneration and other transactions is not disclosed.

We read other information contained in the annual report 
and consider whether it is consistent with the audited 
parent company financial statements. The other information 
comprises the Chairman’s Statement, the Reports of the Chief 
Executive Officer and Chief Financial Officer, the Report of 
the Directors and the Corporate Governance Report. We 
consider the implications for our report if we become aware of 
any apparent misstatements or material inconsistencies with 
the parent company financial statements. Our responsibilities 
do not extend to any other information.

Basis of opinion
We conducted our audit in accordance with International 
Standards on Auditing (UK and Ireland) issued by the Auditing 
Practices Board. An audit includes examination, on a test 
basis, of evidence relevant to the amounts and disclosures in 
the parent company financial statements. It also includes an 
assessment of the significant estimates and judgments made 
by the directors in the preparation of the parent company 
financial statements, and of whether the accounting polices 
are appropriate to the Company’s circumstances, consistently 
applied and adequately disclosed.

We planned and performed our audit so as to obtain all the 
information and explanations which we considered necessary in 
order to provide us with sufficient evidence to give reasonable 
assurance that the parent company financial statements 
are free from material misstatement, whether caused by 
fraud or other irregularity or error. In forming our opinion we 
also evaluated the overall adequacy of the presentation of 
information in the parent company financial statements.

Opinion
In our opinion:

• 

• 

• 

the parent company financial statements give a true and 
fair view, in accordance with United Kingdom Generally 
Accepted Accounting Practice, of the state of the 
Company’s affairs at 31 March 2009;

the parent company financial statements have been 
properly prepared in accordance with the Companies Act 
1985; and

 the information given in the Report of the Directors is 
consistent with the parent company financial statements 
for the year ended 31 March 2009.

GRANT THORNTON UK LLP
REGISTERED AUDITOR
CHARTERED ACCOUNTANTS
LONDON THAMES VALLEY OFFICE
SLOUGH

15 June 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

83

Company balanCe sheet

fixed Assets

Investment in subsidiaries

current assets

Debtors

Cash at bank and in hand

creditors: amounts falling due within one year

Net current assets

Total assets less current liabilities

Net assets

capital and reserves

Called-up share capital

Share premium account

Merger reserve

Share-based payment reserve

Profit and loss account

shareholders’ funds

Notes

31 march 2009
£’000

31 march 2008
£’000

5

6

7

8

8

9

10

11

13

98,720

98,720

8,920

7,500

16,420

16,115

–

16,115

(1,478)

(1,812)

14,942

14,303

113,662

113,662

113,023

113,023

18,345

26,115

68,293

580

329

17,958

25,197

68,293

440

1,135

113,662

113,023

These financial statements were approved by the Board of directors and authorised for issue on 15 June 2009. They were 
signed on its behalf by:

R.f.flynn
Director

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AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notes to the Company FinanCial statements

1. Legal status and activities
AssetCo plc (“the Company”) is principally a holding company for other companies within the Group. 

The separate financial statements of the Company (“parent company financial statements”) are presented as required by the 
Companies Act 1985.

The Company’s financial statements for the year ended 31 March 2008 were delivered to the Registrar of Companies on 
20 August 2008. Those financial statements received an unqualified audit report which did not contain statements under 
Section 237 (2) and (3) of the Companies Act 1985.

For greater clarity, the parent company financial statements have been presented in round thousands (£’000).

2. summary of significant accounting policies
The principal accounting policies applied in the preparation of the parent company financial statements are set out below. 

2.1 Basis of preparation
The parent company financial statements have been prepared in accordance with United Kingdom accounting standards 
under the historical cost convention. As permitted by Section 230 of the Companies Act 1985, the Company has not 
presented its own profit and loss account.

Under Financial Reporting Standard 1, the Company is exempt from the requirement to prepare a cash flow statement on the 
grounds that its consolidated financial statements, which include the Company, are publicly available.

Note 24 (“Share capital”) of the consolidated financial statements of AssetCo plc forms part of these financial statements.

2.2 investments
Investments in subsidiary undertakings are included in the balance sheet at cost less any provision for permanent diminution in value.

2.3 share-based payments
The Company has applied the requirements of FRS 20, “Share-based Payments”. The Company issues equity-settled share-
based payments to certain employees. Equity-settled share-based payments are measured at fair value at the date of grant. The 
fair value is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest.

2.4 financial liabilities and equity
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered 
into. A financial liability is a contractual obligation to deliver cash or another financial asset to another entity. An equity 
instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

2.5 Bank borrowings
Interest-bearing bank loans and overdrafts are recorded as the proceeds received, net of direct issue costs. Finance charges, 
including premiums payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis in 
profit or loss using the effective interest method and are added to the carrying amount of the instrument to the extent that 
they are not settled in the period in which they arise.

3. Auditor’s remuneration

Fees payable to the Company’s auditor for the audit  
of the Company’s financial statements

4. Particulars of employees

Number of directors

2009 
£’000

73

2009 
£’000

5

2008 
£’000

70

2008 
£’000

4

The executive directors received all of their remuneration, as disclosed in the Report of the Directors of the consolidated 
financial statements, from AssetCo Group Limited. However, it is not practicable to allocate such costs between their 
services as executives of AssetCo Group Limited and their services as directors of AssetCo plc and other Group companies. 
The remuneration of the non-executive directors, which is wholly attributable to the Company, is disclosed in the Report of 
the Directors of the consolidated financial statements.

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

85

5. investments

cost

At 1 April 2008 and 31 March 2009

shares in group
 undertakings 
£’000

98,720

impairment
The carrying value of investments is reviewed annually by the directors for potential impairment. The carrying value of the 
investments is, in the opinion of the directors, fairly stated at 31 March 2009. Sensitivity analyses have been carried out in 
relation to future income streams and cash flows using a discount rate of 10% which have allowed the directors to conclude 
there is no potential impairment.

subsidiary undertakings
The Company has a controlling interest directly through shares in the following undertakings:

country of 
incorporation

Percentage
of shares
held

shares
held

Ordinary

Ordinary

subsidiary

AS Fire and Rescue 
Equipment Limited

AssetCo Group Limited

N. Ireland

England & Wales

100%

100%

Auto Electrical Services 
(Manchester) Limited

England & Wales

100%

Ordinary

Todd Research Limited

England & Wales

100%

Ordinary

None of the above investments are listed on a recognised Stock Exchange.

6. debtors

company

Amounts owed by group undertakings

Prepayments and accrued income

7. creditors: amounts falling due within one year

company

Other taxation and social security

Accruals and deferred income

Deferred consideration

Nature of business

Manufacture and distribution  
of safety equipment

Holding company

Electrical and
communications systems

Manufacture and distribution  
of security equipment

2009 
£’000

8,872

48

8,920

2009 
£’000

1,471

7

–

1,478

2008 
£’000

16,115

–

16,115

2008 
£’000

–

12

1,800

1,812

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AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notes to the Company FinanCial statements continued

8. share capital

Number of shares
 £’000

share capital
£’000

share Premium
£’000

At 1 April 2007

Proceeds from ordinary shares issued

At 31 March 2008

71,832,554

1,546,852

73,379,406

17,958

387

18,345

25,197

918

26,115

Total
£’000

43,155

1,305

44,460

The total authorised number of ordinary shares is 95,000,000 (2008: 95,000,000) with a nominal value of 25 pence per 
share (2008: 25 pence per share). All issued shares are fully paid.

In addition, the Company issued 1,546,852 shares in part consideration for two acquisitions, one of which was made by 
another Group company, in settlement of deferred consideration.

9. merger reserve

At 1 April 2008 and 31 March 2009

10. share-based payment reserve

At 1 April 2008

Share-based payments

At 31 March 2008

11. Profit and loss account

At 1 April 2008

Loss for the financial year

Dividends paid in year

At 31 march 2009

Total 
£’000

68,293

Total 
£’000

440

140

580

Total 
£’000

1,135

(86)

(720)

329

The Company has taken advantage of Section 230 of the Companies Act 1985 and has not included its own profit and loss account 
in the parent company financial statements. The loss for the year of the Company was £0.84 million (2008: loss £0.736 million).

AssetCo plc Annual Report & Accounts 2009

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AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

87

12. share-based payments
Details of the share options granted over the Company’s shares by Group companies to employees, and that remain 
outstanding at the balance sheet date, are set out in Note 24 to the AssetCo plc consolidated financial statements. The 
amounts recognised as an expense in relation to equity-settled share-based payment transactions during the year was 
£140,000 (2008: £440,000).

13. Reconciliation of movement in shareholders’ funds

At 1 April

Loss for the financial year

New share capital subscribed 

Share-based payments 

Dividends paid

At 31 March

2009
£’000

113,023

(84)

1,303

140

(720)

 2008
£’000

104,854

(736)

8,465

440

–

113,662

113,023

14. Related party transactions
Related parties comprise the Company’s shareholders, subsidiaries and key management personnel. 

During the year, the Company entered into the following significant transactions with related parties at prices and on terms 
agreed between the related parties:

Amounts due from related parties

company

Group undertakings

2009
£’000

23,626

 2008
£’000

16,115

15. Post-balance sheet events
On 9 June 2009, the Board recommended a final dividend for the year to 31 March 2009 of 1.25p per share (2008 1.0p per 
share). This dividend has not been included as a liability at 31 March 2009.

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88

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

specialist 
equipment

AssetCo is a UK leading supplier of specialist 
equipment to the emergency and mission critical 
services. With the investments we have made 
in some of the latest integrated design and 
manufacturing technologies at our dedicated 
facilities in Cambridge, AssetCo’s specialist 
equipment business is able to offer one of the 
most efficient and comprehensive ranges of 
equipment from a single supplier. 

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

89

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in this seCtion:

Notice of  
Annual General Meeting

Financial Calendar

Company Information

90

92

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90

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AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

notiCe oF annual general meeting 

This year’s annual general meeting will be held at 800 
Field End Road, South Ruislip, Middlesex HA4 0QH on 
Wednesday, 29th July 2009 at 11:30 am. You will be asked 
to consider and pass the resolutions below. Resolutions 
8 and 9 will be proposed as special resolutions. All other 
resolutions will be proposed as ordinary resolutions. 

Ordinary resolutions 
Resolution 1:  
THAT the report of the directors and the audited accounts 
for the year ended 31st March 2009 laid before the 
meeting, be received.

Resolution 2: 
THAT the report on directors’ remuneration as set out in the 
annual report for the year to 31st March 2009 be approved.

Resolution 3: 
THAT Peter David Manning, who was appointed as a director 
of the Company by the Board since the last Annual General 
Meeting, be elected a director of the company.

Resolution 4:
THAT Raymond Francis Flynn, a director retiring by  
rotation pursuant to Article 66, be re-elected a director  
of the company.

Resolution 5: 
THAT Grant Thornton UK LLP be re-appointed auditors of 
the Company to hold office until the conclusion of the next 
general meeting at which the accounts are to be laid before 
the Company and that their remuneration be determined by 
the directors.

Resolution 6: 
That the directors be and they are hereby generally and 
unconditionally authorised to exercise all powers of the 
Company to allot relevant securities, within the meaning 
of Section 80 of the Companies Act 1985 (the ‘Act’) up to 
but not exceeding a maximum aggregate nominal amount 
of £9,155,148.50 during the period commencing on the 
date of this Resolution and expiring at the conclusion of 
the Annual General Meeting of the Company in 2010 save 
that the Company may before such expiry make offers or 
agreements which would or might require relevant securities 
to be allotted after such expiry and notwithstanding such 
expiry the Board may allot relevant securities in pursuance 
of such offers or agreements as if the authority conferred 
by this Resolution had not expired, this authority to replace 
any existing like authority which is hereby revoked with 
immediate effect.

special resolutions 
Resolution 8:
THAT the directors be and they are hereby  
empowered pursuant to that section 95 of the Act  
to allot equity securities (as defined in section 94 of the  
Act) pursuant to the authority conferred upon them by 
Resolution 6 above (as varied from time to time by the 
Company in general meeting) as if section 89(1) of the 
 Act did not apply to any such allotment PROVIDED THAT 
such power shall be limited to:

(i)  the allotment of equity securities in connection with a 
rights issue or any other pre-emptive offer in favour of 
holders of equity securities where the equity securities 
respectively attributable to the interests of all such 
holders are proportionate (as nearly as may be) to the 
respective amounts of equity securities held by them 
subject only to such exclusions or other arrangements 
as the Directors may consider appropriate to deal with 
fractional entitlements or legal or practical difficulties 
under the laws or the requirements of any recognised 
regulatory body in any territory or otherwise:

(ii)  the allotment (otherwise than pursuant to sub-paragraph 
(i) above) of equity securities up to an aggregate nominal 
amount of £917,242.50.

and the power hereby conferred shall operate in substitution 
for and to the exclusion of any previous power given to the 
directors pursuant to section 95 of the Act and shall expire 
on whichever is the earlier of the conclusion of the next 
Annual General Meeting of the Company or the date falling 
fifteen months from the date of the passing of this Resolution, 
except that the Company may, before the expiry of any power 
contained in this Resolution, make an offer or agreement 
which would, or might, require equity securities to be allotted 
after such expiry and the directors may allot equity securities 
in pursuance of any such offer or arrangement as if the 
authority conferred hereby had not expired.

Resolution 9:
That the Company be and is hereby generally and 
unconditionally authorised for the purposes of Section 166 
of the Act to make market purchases (within the meaning of 
Section 163(3) of the Act) of ordinary shares in the capital 
of the Company, provided that:

(i)  the number of ordinary shares hereby authorised to be 
purchased shall not exceed 10%. of the Company’s 
issued ordinary share capital at the date of this 
resolution;

Resolution 7:
THAT a final dividend for the year ended  
31st March 2009 of 1.25 pence per share, on the ordinary 
shares of 25 pence each of the Company, be declared 
payable on 25th September 2009 to shareholders 
registered at the close of business on 28th August 2009.

(ii)  the minimum price, exclusive of any expenses, which 

may be paid for any ordinary share shall not be less than 
its nominal value;

(iii) the maximum price, exclusive of any expenses, which 
may be paid for any such ordinary share is an amount 

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009

AssetCo plc Annual Report & Accounts 2009
AssetCo plc Annual Report & Accounts 2009

91

equal to 105%. of the average of the middle market 
quotations for an ordinary share taken from the London 
Stock Exchange Daily Official List for the 5 business 
days immediately preceding the date on which such 
share is contracted to be purchased;

(iv) this authority shall expire on the earlier of the date which 
is 18 months after the date of this resolution or the end 
of the next annual general meeting of the Company; and

(v)  the Company may make a contract for the purchase of 
ordinary shares under this authority before the expiry of 
this authority which would or might be executed wholly 
or partly after the expiry of such authority, and may make 
purchases of ordinary shares in pursuance of such a 
contract as if such authority had not expired. 

6th July 2009 

By order of the Board 

 michael Lavender
Company Secretary 

Registered Office: 
800 Field End Road 
South Ruislip 
Middlesex 
HA4 0QH 

Registered in England and Wales No. 4966347 

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Notes 
1.  Members are entitled to appoint a proxy to exercise 
all or any of their rights to attend and to speak and 
vote on their behalf at the meeting. A shareholder may 
appoint more than one proxy in relation to the Annual 
General Meeting provided that each proxy is appointed 
to exercise the rights attached to a different share or 
shares held by that shareholder. A proxy need not be a 
shareholder of the Company. A proxy form which may 
be used to make such appointment and give proxy 
instructions accompanies this notice. Please do not 
appoint the Chairman as proxy if it is your intention that 
your proxy is to speak at the Annual General Meeting; 
the Chairman will not speak in his capacity as proxy at 
the Annual General Meeting. If you do not have a proxy 
form and believe that you should have one, or if you 
require additional forms, please contact Pauline Pullin at 
AssetCo Shareholder Services on 020 8515 3801.

2.  To be valid any proxy form or other instrument appointing 

a proxy must be received by post or (during normal 
business hours only) by hand at 800 Field End Road, 
South Ruislip, Middlesex HA4 0QH no later than 11:30 
on 27th July 2009. Proxy appointments may also be 
scanned and sent to shareholderservices@assetco.com 
or sent by fax to 020 8515 3800.

3.   The return of a completed proxy form will not prevent a 
shareholder attending the Annual General Meeting and 
voting in person if he/she wishes to do so. 

4.   Any person to whom this notice is sent who is a person 

nominated under section 146 of the Companies 
Act 2006 to enjoy information rights (a “Nominated 
Person”) may, under an agreement between him/her 
and the shareholder by whom he/she was nominated, 
have a right to be appointed (or to have someone else 
appointed) as a proxy for the Annual General Meeting. 
If a Nominated Person has no such proxy appointment 
right or does not wish to exercise it, he/she may, under 
any such agreement, have a right to give instructions to 
the shareholder as to the exercise of voting rights. 

5.   The statement of the rights of shareholders in relation 
to the appointment of proxies in paragraphs 1 to 3 
above does not apply to Nominated Persons. The rights 
described in these paragraphs can only be exercised by 
shareholders of the Company. 

6.   To be entitled to attend and vote at the Annual General 
Meeting (and for the purpose of the determination by 
the Company of the votes they may cast), Shareholders 
must be registered in the Register of Members of the 
Company at 11:30 am on 27th July 2009 (if the AGM is 
adjourned, 2 working days before the time fixed for the 
adjourned AGM) shall be entitled to attend and vote at 
the AGM in respect of the number of shares registered 
in their name at that time. Changes to the Register of 
Members after the relevant deadline shall be disregarded 
in determining the rights of any person to attend and 
vote at the meeting. 

 
 
 
 
 
 
 
 
 
92

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AssetCo plc Annual Report & Accounts 2009

notiCe oF annual general meeting continued

7.   As at 4th July 2009 (being the last business day prior 
to the publication of this Notice) the Company’s issued 
share capital consists of 73,379,406 ordinary shares, 
carrying one vote each. Therefore, the total voting rights 
in the Company as at 4th July 2009 are 73,379,406. 

8.   We apologise but the appointment of proxies or the 

giving of any instruction by the CREST system will not be 
accepted for the purposes of this General Meeting. 

9.   Shareholders should note that it is possible that, 

pursuant to requests made by shareholders of the 
Company under section 527 of the Companies Act 
2006, the Company may be required to publish on  
a website a statement setting out any matter relating  
to: (i) the audit of the Company’s accounts (including  
the auditor’s report and the conduct of the audit) that  
are to be laid before the Annual General Meeting; or 
(ii) any circumstance connected with an auditor of the 
Company ceasing to hold office since the previous 
meeting at which annual accounts and reports were  
laid in accordance with section 437 of the Companies 
Act 2006. The Company may not require the 
shareholders requesting any such website publication 
to pay its expenses in complying with sections 527 or 
528 of the Companies Act 2006. Where the Company 
is required to place a statement on a website under 
section 527 of the Companies Act 2006, it must forward 
the statement to the Company’s auditor not later than 
the time when it makes the statement available on the 
website. The business which may be dealt with at the 
Annual General Meeting includes any statement that  
the Company has been required under section 527  
of the Companies Act 2006 to publish on a website. 

10. In order to facilitate voting by corporate representatives 
at the meeting, arrangements will be put in place at 
the meeting so that (i) if a corporate shareholder has 
appointed the chairman of the meeting as its corporate 
representative to vote on a poll in accordance with the 
directions of all of the other corporate representatives 
for that shareholder at the meeting, then on a poll those 
corporate representatives will give voting directions to 
the chairman and the chairman will vote (or withhold a 
vote) as corporate representative in accordance with 
those directions; and (ii) if more than one corporate 
representative for the same corporate shareholder 
attends the meeting but the corporate shareholder 
has not appointed the chairman of the meeting as 
its corporate representative, a designated corporate 
representative will be nominated, from those corporate 
representatives who attend, who will vote on a poll and 
the other corporate representatives will give voting 
directions to that designated corporate representative. 
Corporate shareholders are referred to the guidance 

issued by the Institute of Chartered Secretaries and 
Administrators on proxies and corporate representatives 
(www.icsa.org.uk) for further details of this procedure. 
The guidance includes a sample form of appointment 
letter if the chairman is being appointed as described  
in (i) above.

eXPLANATORy NOTes TO THe NOTice Of ANNUAL 
GeNeRAL meeTiNG 
Resolutions 1 to 7 are proposed as ordinary resolutions. 
This means that for each of those resolutions to be passed, 
more than half of the votes cast must be in favour of the 
resolution. Resolutions 8 and 9 are proposed as special 
resolutions. This means that for each of those resolutions 
to be passed, at least three-quarters of the votes cast must 
be in favour of the resolution. 

The authority provided by resolutions 6, 8 and 9 will expire  
at the conclusion of the next annual general meeting and it 
is anticipated that renewals of the authority will be requested 
at subsequent annual general meetings. 

Resolution 9 will authorise the company to purchase its 
own shares up to a maximum of 10% of the issued ordinary 
shares of the company. The purchase price would be subject 
to a minimum of 25p per share and a maximum equal to 5%. 
above the average middle market price for the five business 
days immediately preceding the purchase. The directors 
would only use the authority if they considered that it was 
in the best interests of the shareholders and if they were 
satisfied that a purchase of shares would be likely to  
result in an increase in earnings per share.

FinanCial Calendar

AGm

29th July 2009

dividend Record date

28th August 2009

dividend Payment date

25th September 2009

fy10 interim Results

3rd December 2009

AssetCo has pioneered the development of integrated 
support services for emergency response and homeland 
security organisations in the UK and Internationally. 

AssetCo has a 20-year PFI contract providing London Fire 
Brigade, with a comprehensive suite of Integrated Support 
Services, including the supply and operational availability of 
over 500 vehicles and 50,000 items of operational equipment.

“The integrated working relationship we have established with AssetCo, and the valuable 
services they provide on a day-to-day basis as part of our PFI contract, allows us to focus 
resources on our core business of providing an excellent fire and rescue service to London.”

Ron Dobson – Commissioner, London Fire and Emergency Planning Authority

ComPAny InFormAtIon

AssetCo plc
Company registration number #4966347 
Registered office
800 Field End Road
South Ruislip
Middlesex
HA4 0QH

Directors 
Tim wightman (Chairman)
John shannon
Frank Flynn
Adrian bradshaw
Peter manning (appointed 1 September 2008)

Company secretary 
michael Lavender

website
www.assetco.com 

AssetCo plc Annual Report & Accounts 2009

bankers
bank of scotland (Ireland) Limited
Donegall Square North
Belfast 
BT1 5GB

solicitors
nabarro
Lacon House
84 Theobald’s Road 
London
WC1X 8RW

Auditor
grant Thornton UK LLP
Churchill House
Chalvey Road East
Slough
Berkshire
SL1 2LS

nominated adviser, financial adviser 
and corporate broker
Arden Partners 
Nicholas House
3 Laurence Poutney Hill
London
EC4R 0EU

Financial public relations 
Pelham Public Relations
12 Arthur Street
London
EC4R 9AB

Registrar
Computershare Investor services PLC
PO Box 1075
The Pavilions
Bridgewater Road
Bristol
BS99 3FA

93

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Annual Report & Accounts 2009

AssetCo
Registered office
800 Field End Road
South Ruislip
Middlesex
HA4 0QH

Telephone: +44 (0) 20 8515 3999
www.assetco.com