Acal Final Results

Date : 06/01/2009 @ 2:00AM
Source : UK Regulatory (RNS and others)
Stock : Acal (ACL)
Quote : 126.5  0.0 (0.00%) @ 3:09AM
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Acal Final Results

 
TIDMACL 
 
RNS Number : 0877T 
Acal PLC 
01 June 2009 
 
? 
 
 
 
 
FOR RELEASE 
7:00AM 
1 JUNE 2009 
 
 
 
 
ACAL plc 
 
 
 
 
Preliminary Results 
for the Year Ended 31 March 2009 
+----------------------------------------------------------------------------+ 
| Acal plc, a specialist provider of technology products and services, today | 
| announces its results for the year ended 31 March 2009.                    | 
| Financial highlights                                                       | 
| *                                                                          | 
| Total revenue up 3.7% at GBP165.4m (2008: GBP159.5m)                       | 
| *                                                                          | 
| Profit before tax and exceptional items GBP0.5m (2008: GBP6.1m)            | 
| *                                                                          | 
| Loss per share before exceptional items (3.8)p (2008: earnings 14.5p)      | 
| *                                                                          | 
| Loss before tax of GBP32.6m from continuing operations (2008: profit       | 
| GBP2.6m) after:*                                                           | 
| Impairment of goodwill GBP41.8m and associate investments GBP5.4m*         | 
| Profit on disposal of investment in MessageLabsGroup GBP15.9m              | 
| *                                                                          | 
| Dividends 7.0p (2008: 21.9p)                                               | 
| *                                                                          | 
| Net cash at year end GBP24.5m (2008: GBP25.6m)                             | 
| Operational highlights                                                     | 
| *                                                                          | 
| Restructured Board with new Group Chief Executive and Group Finance        | 
| Director                                                                   | 
| *                                                                          | 
| Continued focus on cost and working capital reduction programmes           | 
| *                                                                          | 
| Acquisition of Service Source Europe Limited in January 2009 - established | 
| management team bringing immediate benefits                                | 
| *                                                                          | 
| Cash resources ensure that the Group is well-placed to take advantage of   | 
| opportunities as markets recover                                           | 
|                                                                            | 
+----------------------------------------------------------------------------+ 
 
Nick Jefferies, Chief Executive, commented: 
 
 
"With the significant deterioration in market conditions in the second half, we 
have been focused on reducing costs and tight management of working capital. 
This was reflected in a strong net cash balance of GBP24.5 million at the year 
end. 
 
The Board has conducted a strategic review and following this we are confident 
that opportunities exist for us to develop each of our businesses, both 
organically and by acquisition." 
 
 
 
 
Enquiries 
+---------------------------------------------------------+---------------+ 
| Acal plc                                                | 01483 544500  | 
| Nick Jefferies  Chief Executive                        | 01483 544500  | 
| Malcolm Cooper  Finance Director                       | 020 7367 5100 | 
| Cubitt Consulting                                       |               | 
| Brian Coleman-Smith                                     |               | 
| James Verstringhe                                       |               | 
| Nicola Krafft                                           |               | 
|                                                         |               | 
+---------------------------------------------------------+---------------+ 
 
 
There will be a presentation today at 9.30am to analysts at JP Morgan 
Cazenove, 20 Moorgate, London, EC2R 6DA. The supporting slides will be available 
on the Acal website (www.acalplc.co.uk). 
 
 
Acal will update on trading on 24 July 2009 when it will issue its Interim 
Management Statement in respect of the first quarter. The AGM will also be held 
on that date. 
 
 
 
 
 
 
Notes to Editors: 
 
 
Acal is a specialist provider of technology products and services with three 
divisions: Electronics, Supply Chain (formerly Parts Services) and Medical. Acal 
has 17 principal trading companies of which 8 are in mainland Europe, 8 in the 
United Kingdom and one in South Africa. The Group employed on average 736 people 
during 2008/9. 
 
 
ACAL plc 
 
 
Announcement of Preliminary Results 
for the Year Ended 31 March 2009 
 
 
CHAIRMAN'S STATEMENT 
 
 
 
 
The past year has been one of challenge and change for the company. At the 
corporate level we have seen the appointment of Nick Jefferies as Group Chief 
Executive and Malcolm Cooper as Group Finance Director. 
 
 
The Supply Chain (formerly Parts Services) division suffered from a loss of 
management and from losses on a major new contract that started in May 2008. 
However, in January 2009, we completed the acquisition of 75% of Service Source 
Europe Limited ("SSE") a key benefit of which was the strength of their 
management team.  The management of SSE have taken over management of the 
enlarged division and have established a business plan for the stabilisation and 
growth of the business.  I am pleased to say that the actions initiated by the 
team and the synergies with our existing businesses are already benefiting our 
Group results. We completed the acquisition of the remaining 25% of SSE on 9 
April 2009. 
 
Within the Electronics division, the deteriorating economic conditions have had 
an increasing impact on order levels and reported margins have been reduced by 
the abrupt strengthening of the US dollar. Whilst we anticipate recovery in our 
Electronics margins as exchange rates stabilise and we focus on higher margin 
business, we continue to review operating costs. 
 
 
For the year, the Group's revenue was GBP165.4 million (2008: GBP159.5 million), 
with the increase due to foreign exchange and acquisitions, producing an 
operating profit before exceptional items of GBP0.3 million compared with GBP6.1 
million in 2008. 
 
 
Profit before tax and exceptional items from continuing operations was GBP0.5 
million (2008: GBP6.1 million). The taxation charge of GBP1.4 million (2008: 
GBP2.3 million) reflects the tax charge on our UK profits that cannot be offset 
against tax losses in mainland Europe. 
 
 
The loss after tax and exceptional items from continuing operations was GBP37.0 
million (2008: profit GBP0.5 million). 
 
 
Exceptional items 
 
 
We highlighted in our interim report that we had impaired goodwill of GBP4.2 
million and that we would be carrying out a review of remaining goodwill in the 
light of current economic conditions. This review has resulted in a further 
impairment resulting in a total impairment charge of GBP41.8 million for the 
year. 
 
 
During the year costs were incurred in reducing headcount to cater for the 
reduced trading in the Electronics division and to realise synergies from our 
acquisition of SSE. Further exceptional costs relate to the costs associated 
with the departure of the previous executive directors and the impairment of 
investments in associates. Exceptional profits resulted from the disposal of the 
investment in MessageLabsGroup and the release of unutilised provisions relating 
to the prior year disposal of our IT Solutions business. 
 
 
Despite the impairments, the Group retains net assets of GBP58.6 million at 31 
March 2009 (2008: GBP100.7 million). 
 
 
Net cash 
 
 
At 31 March 2009, the Group's net cash was GBP24.5 million compared with GBP25.6 
million at the previous year end. The cash balance has been affected by the 
proceeds from the sale of our investment in MessageLabsGroup offset by the 
acquisition of Service Source Europe Limited, the settlement of prior year 
provisions, the impact of the fall in sterling against the US dollar and the 
Euro, the payment of GBP1.3 million into the pension scheme as well as dividends 
totalling GBP4.8 million 
 
Dividend 
 
 
At the half year, the Directors declared a rebased interim dividend of 3.5 pence 
per share.  In light of the continuing economic uncertainties and difficult 
trading conditions, the Board is recommending a final dividend of 3.5 pence per 
share payable to shareholders on the register as at 19 June 2009.  This will 
make a total of 7.0 pence for the year. As the year's dividend is not covered by 
earnings, the Board will keep the dividend policy under review recognising that 
distributions are only sustainable if earnings are sufficient to provide 
adequate dividend cover. 
 
 
Board and Employees 
 
 
Malcolm Cooper was appointed as Group Finance Director in August 2008 and Nick 
Jefferies joined the Group as Chief Executive Officer in January 2009. I am 
delighted with the fresh approach, positive impact and experience they have 
brought to the Board. 
 
 
Acal announces that Steve Sydes, head of the Electronics division, will be 
leaving the Group during June 2009. After many years with the Group, I would 
like to thank Steve for his positive contribution and wish him well for the 
future. Nick Jefferies will assume responsibility for the Electronics division 
in the short-term. 
 
The challenges of the current market environment place large demands on 
everybody in the Group.  We are fortunate in having a dedicated workforce who 
are committed to the business and I thank them personally and on behalf of the 
Board for their continued hard work and support. 
 
 
Strategy and Outlook 
 
 
Since taking on the role of Chief Executive, Nick Jefferies and the Board have 
been carrying out a strategic review of our businesses. Comments on each of our 
businesses are set out in the Strategic and Operational review. 
 
 
We believe we have opportunities to grow each of our businesses which are now 
reported as three divisions. Our future lies as a specialist provider of 
technology products and services which will, over time, generate higher returns. 
 
 
The conditions being experienced by our Electronics businesses at this time are 
as difficult as at any time in the Group's history and we are unable to predict 
when there will be an improvement. Nevertheless, the strength of our cash 
balance will enable us to manage the business through the recession and give us 
the opportunity to come out of it as a stronger Group.   The performance of our 
Supply Chain division has been transformed by our acquisition of SSE and we are 
focusing on further actions around the Group that will create long-term value 
for shareholders. 
 
 
 
 
Richard Moon 
1 June 2009 
 
 
 
 
 
 
 
ACAL plc 
 
 
STRATEGIC AND OPERATIONAL REVIEW 
 
 
Overview of Group performance 
 
 
+---------------------+-----------------------+-------------------------+-----------------------+-------------------------+ 
|                     |                                      Year ended |                                   Year ended 31 | 
|                     |                                        31 March |                                      March 2008 | 
|                     |                                            2009 |                                                 | 
+---------------------+-------------------------------------------------+-------------------------------------------------+ 
|                     |               Revenue |               Operating |               Revenue |               Operating | 
|                     |                   GBP |                 profit* |                   GBP |                 profit* | 
|                     |               million |                     GBP |               million |                     GBP | 
|                     |                       |                 million |                       |                 million | 
+---------------------+-----------------------+-------------------------+-----------------------+-------------------------+ 
|    Electronics      |                 103.7 |                     0.9 |                 103.1 |                     3.2 | 
+---------------------+-----------------------+-------------------------+-----------------------+-------------------------+ 
|    Supply Chain     |                  54.2 |                     1.0 |                  48.3 |                     3.3 | 
+---------------------+-----------------------+-------------------------+-----------------------+-------------------------+ 
|    Medical          |                   7.5 |                     1.0 |                   8.1 |                     1.3 | 
+---------------------+-----------------------+-------------------------+-----------------------+-------------------------+ 
|    Unallocated      |                     - |                   (2.6) |                     - |                   (1.7) | 
|    costs            |                       |                         |                       |                         | 
+---------------------+-----------------------+-------------------------+-----------------------+-------------------------+ 
|                     |                 165.4 |                     0.3 |                 159.5 |                     6.1 | 
+---------------------+-----------------------+-------------------------+-----------------------+-------------------------+ 
*Throughout this review operating profit is stated before exceptional items. 
 
 
Note: The results for the year ended 31 March 2008 have been restated to reflect 
Vertec, a distributor of medical equipment, as a separate segment and to 
separately disclose unallocated corporate costs. Unallocated costs include head 
office staff costs, Directors' remuneration, professional and head office costs 
and non-operational costs. 
 
 
Revenue for 2009 was GBP165.4 million compared with GBP159.5 million in 2008. 
The increase was primarily due to favourable exchange rate movements of 
approximately GBP11.3 million in relation to subsidiaries based in mainland 
Europe and the acquisition of Service Source Europe Limited ("SSE") in January 
2009 which contributed GBP3.9 million to 2009 revenue. After adjusting for these 
factors, there was an underlying reduction in revenue of 5.5 per cent. 
 
 
Operating profit for the year ended 31 March 2009 decreased by GBP5.8m to 
GBP0.3 million. This decline reflected falls in each of the three divisions. The 
Electronics division suffered a reduction in margins principally due to the 
impact of the significant fall in sterling against the dollar. The Supply Chain 
division was affected by the departure of a number of senior executives and by 
losses on a new contract that commenced in May 2008.  Both of these issues have 
been addressed by the acquisition of SSE.  Vertec, Acal's medical business, saw 
some reduction in sales and a reduction in margin. 
 
 
Market conditions deteriorated progressively across all our businesses during 
the year.There was a marked decline in bookings within the Electronics division 
reflecting the impact of the credit crisis and global recession. Against this 
backdrop, we took steps to realign the cost base of our Electronics business 
through workforce reductions and we have realised headcount savings within 
Supply Chain resulting from the synergies between SSE and Acal's existing Supply 
Chain businesses. 
 
 
We completed the acquisition of 75% of SSE in January 2009 for a cash 
consideration of GBP1.85 million plus GBP0.35 million for the repayment of 
preference shares. The remaining 25% was acquired for a consideration of GBP1.0 
million in April 2009.  SSE's principal activities relate to the movement of 
service spares. Its main product sector is the PC market, including related 
products such as laptops, servers, printers and more recently mid-range and 
high-end Unix services and storage systems. The acquisition brought with it a 
strong management team, three of whom had left the Acal Supply Chain division in 
2008, and who have since taken over management of the enlarged Supply Chain 
division. The performance of the business over recent months is encouraging. 
 
 
Electronics 
Revenue up 1% from GBP103.1 million to GBP103.7 million 
Operating profit down 72% from GBP3.2 million to GBP0.9 million 
Reported revenue benefited from a strengthening in the Euro against sterling. At 
constant exchange rates, revenue declined by GBP8.3 million (7.4 per cent). The 
impact of the economic decline has been increasingly felt since the turn of the 
calendar year and the downturn in orders has been felt throughout the division. 
Nevertheless, Acal's performance continues to compare well. Industry data from 
IDEA (International Distribution of Electronics Association) showed that sales 
for the period January to March 2009 reduced by 21.4% against the prior year. 
Acal's billings for the same period were some 4% better than that. 
 
 
The decline in revenue has exacerbated a significant decline in margins 
resulting from both the strengthening of the dollar against both Sterling and 
the Euro, and margin pressure created by the economic environment. 
 
 
As announced in February, one of our major semi-conductor suppliers decided to 
terminate our contract from the end of April. This has impacted bookings since 
that date. 
 
 
Despite the actions taken over recent years to centralise operations, we have 
continued to suffer losses in mainland Europe.  Cost reduction actions have been 
implemented (headcount reduced by 19% over the course of the financial year) and 
further actions will be taken to re-align the European cost base further. 
 
 
Supply Chain 
Revenue up 12% from GBP48.3 million to GBP54.2 million 
Operating profit down 70% from GBP3.3 million to GBP1.0 million 
As well as the impact of the economic climate, Supply Chain was affected during 
the year by the departure of key management and losses arising from a major new 
contract which commenced in May 2008.  Underlying revenue, excluding the 
acquisition of SSE, fell by 1%. 
 
 
The acquisition of SSE and the assumption of control of the Supply Chain 
division by their management team has brought a renewed vigour to the business 
and results to date are encouraging.  Ongoing losses on a major contract have 
been largely eradicated as operational improvements have been implemented and 
discussions are ongoing over a way forward that will benefit both Supply Chain 
and the customer. 
 
There has been a headcount reduction of 6% since the acquisition was completed 
reflecting synergies between the businesses. Employee changes actioned to date 
will result in an annual saving of GBP0.7 million. Further savings will be 
achieved as the division's UK statutory entities are amalgamated. 
 
 
 
Medical 
Revenue down 7% from GBP8.1 million to GBP7.5 million 
Operating profit down 23% from GBP1.3 million to GBP1.0 million 
Vertec specialises in the supply of high quality radiology and bone densitometry 
equipment. The larger part of its revenue is derived in the UK with the 
remainder being derived from a subsidiary in South Africa.  The division 
delivered another robust performance albeit operating profits were lower than 
previous year, primarily due to reduced margins attributable to the 
strengthening of the US dollar. 
 
 
Unallocated corporate costs for the year totalled GBP2.6 million (2008: GBP1.7 
million) with the prior year reflecting releases of unutilised provisions. 
 
 
Strategic review 
 
 
The review of the businesses and their strategy has shown that they are well 
respected in the markets in which they operate and have experienced and 
dedicated management and employees. Each of the divisions has opportunities for 
profitable growth. 
 
 
Electronics 
We are a distributor of electronic products to industrial manufacturing and 
design companies. Our strategy is to focus entirely on specialised products and 
markets where there are fewer competitors and higher margins can be 
generated over time.  Additionally, we will create a trading model for the 
future, developing a web channel to complement our existing sales force. This 
will give our customers the ability to choose how they transact with us. 
 
 
Supply Chain 
We are a supplier of new and refurbished IT, EPOS and ATM spare parts to service 
providers. Our strategy is to realise the benefits of the recent acquisition of 
Service Source Europe by building the contracted spare parts management 
business, potentially expanding into other product areas. 
 
 
Medical 
We are a supplier of hi-tech medical equipment to public and private healthcare 
providers. Our strategy is to expand its provision of technology led 
preventative healthcare equipment by acquiring complementary distributorships. 
 
We will consider selected specialist acquisitions that will complement this 
strategy. 
 
 
Outlook 
 
 
We are dealing with an economic and market recession that is unprecedented. We 
are currently experiencing reduced order levels and it is impossible to know how 
long this situation will remain. 
 
 
Despite this, our balance sheet is strong and we are focused on implementing our 
strategy, managing our cost base and further reducing working capital to 
maximise cash generation. 
 
 
The Board is confident that opportunities exist to develop, both organically and 
by acquisition, each of our businesses. 
 
 
 
 
 
 
Nick Jefferies 
Group Chief Executive 
 
 
1 June 2009 
 
 
 
 
 
 
  ACAL plc 
 
 
FINANCE REVIEW 
 
 
 
 
Results for the year 
 
 
A review of the trading results for the year is set out in the Chairman's 
Statement and the Strategic and Operational review. 
 
 
The pre-exceptional profit before tax from continuing operations for the year is 
GBP0.5 million, compared to GBP6.1 million in the prior year. 
 
 
The total loss from continuing operations for the year is GBP37.0 million, 
compared to a profit of GBP0.5 million in the prior year reflecting the impact 
of exceptional items, in particular the  non-cash impairments of goodwill and 
associates of GBP47.2 million, other exceptional items and taxation described 
below. 
 
 
Adjusted profits 
 
 
This year we have introduced an adjusted profit measure on the face of the 
consolidated income statement. This is a measure which excludes exceptional 
items, the impact of the volatile finance costs of IAS 19 and share based 
payments. 
 
 
The Directors believe that this measure provides additional useful information 
for shareholders on the underlying trends and performance of the Group and we 
intend to include adjusted profit as a measure in future periods. 
 
 
The adjusted profit before tax for the year is GBP0.8 million compared to GBP6.1 
million last year. 
 
 
Overhead costs 
 
 
Total operating expenses relating to continuing operations and excluding 
exceptional items and share based payments were GBP43.5 million (2008: GBP39.7 
million).  Current year overheads include GBP0.9 million previously classified 
within cost of sales. The underlying reduction was GBP1.8 million after 
adjusting for SSE costs, overheads associated with the new Supply Chain contract 
and the translation impact of overseas company overheads. 
 
 
Exceptional items 
 
 
The Group presents on the face of the income statement those items which are 
separately identifiable by virtue of their size or incidence so as to allow a 
better understanding of the underlying trading performance of the Group. 
Exceptional items comprise: 
 
+-----------------------------------------+-----------------------+-----------------------+ 
|                                         |                  2009 |                  2008 | 
|                                         |                   GBP |                   GBP | 
|                                         |               million |               million | 
+-----------------------------------------+-----------------------+-----------------------+ 
|               Operating:                |                       |                       | 
+-----------------------------------------+-----------------------+-----------------------+ 
|               Sale of investment in     |                  15.9 |                     - | 
|               MessageLabsGroup          |                       |                       | 
+-----------------------------------------+-----------------------+-----------------------+ 
|               Impairment of goodwill    |                (41.8) |                     - | 
+-----------------------------------------+-----------------------+-----------------------+ 
|               Provision for retained    |                  0.8  |                 (3.5) | 
|               obligations               |                       |                       | 
+-----------------------------------------+-----------------------+-----------------------+ 
|               Termination and           |                 (2.6) |                     - | 
|               restructuring costs       |                       |                       | 
+-----------------------------------------+-----------------------+-----------------------+ 
|               Non Operating:            |                       |                       | 
+-----------------------------------------+-----------------------+-----------------------+ 
|               Impairment of associate   |                 (5.4) |                     - | 
|               investments               |                       |                       | 
+-----------------------------------------+-----------------------+-----------------------+ 
|               Net exceptional items     |                (33.1) |                 (3.5) | 
|               before tax                |                       |                       | 
+-----------------------------------------+-----------------------+-----------------------+ 
 
 
The sale of MessageLabsGroup to Symantec was completed in November 2008.  The 
total consideration receivable by Acal for its 3.95% stake is GBP16.2 million of 
which GBP15.1 million has been received to date, the balance being retained in 
escrow until November 2009 pending any warranty claims. The profit on sale of 
GBP15.9 million is subject to tax of GBP4.4m, GBP2.0m of which was paid during 
the year. 
 
 
The impairment of goodwill of GBP41.8 million results from the review carried 
out in the light of the current economic conditions, the deterioration in the 
performance of our businesses and the disparity between the Group's net assets 
and its market capitalisation.  The principal impairments relate to the Group's 
UK electronic business, and to ATM and Computer Parts International. 
 
 
The impairment of the associate investments principally relates to the Group's 
investment in Westech Electronics Limited, an electronics and engineering 
service provider, listed on the Singapore stock exchange. Westech announced in 
September that one of its major customers in Taiwan had defaulted on its 
payments to the company. It subsequently announced that it had entered into a 
standstill agreement with certain financial institutions. We have taken the view 
that Acal's investment is impaired and written it down to GBPnil. We have also 
fully impaired the Group's other associate investments at a cost of GBP0.4 
million. 
 
 
The termination and restructuring costs result from the rationalisation of 
headcount in the Electronics division in light of the reduced trading levels, 
headcount savings resulting from the integration of Service Source Europe 
Limited into Acal's existing Supply Chain businesses and the costs resulting 
from the termination of executive directors' contracts. 
 
 
Following the disposal of the IT Solutions division in December 2007, the Group 
made provision for certain obligations of the division which were retained by 
the Group following its disposal. These obligations represent costs relating to 
the impairment of IT systems, properties and people.  These were estimated to 
amount to GBP3.5 million. Savings of GBP0.8 million, principally relating to 
people costs, have been written back this year. 
 
 
Net finance income 
 
Net interest income for the year amounted to GBP0.5 million (before IAS19 
interest cost of GBP0.2 million (2008: nil)) compared to a net interest charge 
of GBP0.7 million for the prior year. The cash inflow resulting from the 
disposal of the IT Solutions division in December 2007 resulted in a significant 
cash surplus throughout the year. The decline in interest rates through the 
second half of the year has reduced the opportunity to earn significant interest 
income. The trend will continue through 2009/10 if interest rates remain at 
their current levels. 
 
 
Dividends and (loss)/earnings per share 
 
 
Basic and diluted loss per share before exceptional items were 3.8 pence (2008: 
earnings of 14.5 pence). Basic and diluted loss per share after exceptional 
items from continuing operations were 140.5 pence (2008: earnings of 2.0 pence). 
 
For the year ended 31 March 2009, the Board has recommended a final dividend of 
3.5 pence (2008: 14.7 pence). An interim dividend of 3.5 pence per share was 
paid in January 2009, making the total dividend for the year 7.0 pence per share 
(2008: 21.9 pence). 
 
 
Taxation 
 
 
The Group's effective tax rate for the year ended 31 March 2009, calculated on 
profit before taxation from continuing operations before exceptional items and 
the Group's share of the post-tax result from associate investments, was 300% 
(2008: 45%).   The tax charge for the year amounted to GBP1.4 million (2008: 
GBP2.3 million).  The total tax charge for the year, after exceptional items was 
GBP4.4m, including GBP3.0m relating to exceptional items. 
 
 
The increase in the rate of underlying tax reflects the deterioration in the 
overall profits of the Group and the resulting higher proportion of 
irrecoverable losses incurred in the Group's Continental European companies. The 
underlying rate also includes the impact of the write off of a deferred tax 
asset brought forward from the prior year of GBP0.5 million and disallowable 
costs. 
 
 
Cash flow and net cash 
 
 
Cash absorbed by operations was GBP2.4 million (2008: cash generated GBP6.7 
million) after payments relating to exceptional costs incurred of GBP2.1 
million.  Operating profits were significantly lower and there was a net 
increase in working capital which is explained further below. 
 
 
The sale of MessageLabsGroup realised GBP15.1 million in cash which was paid in 
November 2008.   A further GBP1.1 million is due to be received in November 2009 
subject to warranty claims. 
 
 
Acquisitions totalled GBP4.4 million, including debt acquired, relating to the 
acquisition of 75% of the ordinary share capital of Service Source Europe 
Limited. A further GBP1.0 million was paid in April 2009 to acquire the 
remaining 25%. 
 
 
Tax payments included GBP2.0 million relating to the profit on disposal of the 
investment in MessageLabsGroup. A further GBP2.4 million is payable in 2009/10. 
 
 
Positive net finance revenue reflected the cash surplus held throughout the 
year.  Net cash was GBP24.5 million at 31 March 2009 (2008: GBP25.6 million), 
the movement reflecting the net impact of the matters outlined above. 
 
 
 
 
At 31 March 2009, the Group had total working capital facilities of 
GBP33.7 million with a number of major UK and overseas banks, which in the 
ordinary course are periodically renewable.In view of its net cash position, the 
Group has no term facilities and no agreements containing any financial 
covenants. 
 
 
The Directors have reviewed cash flow forecasts for 2009 and the projections for 
2010 developed during the recent strategic review and have considered a range of 
different scenarios and the impact of these on the Group's cash flow and 
facilities.  Based on this work, the Directors are satisfied that the Group has 
adequate resources for the foreseeable future. 
 
 
Net assets and working capital 
 
 
Movements in working capital are analysed as follows: 
 
 
+---------------------------+--------------------+----------------------------+---------------------------+--------------------------+--------------------+ 
|                           |               2008 |               Acquisitions |               Translation |               Underlying |               2009 | 
|                           |               GBPm |                        and |                      GBPm |                 movement |               GBPm | 
|                           |                    |                  Disposals |                           |                     GBPm |                    | 
|                           |                    |                       GBPm |                           |                          |                    | 
+---------------------------+--------------------+----------------------------+---------------------------+--------------------------+--------------------+ 
|               Inventories |               19.3 |                        1.7 |                       3.5 |                      0.2 |               24.7 | 
+---------------------------+--------------------+----------------------------+---------------------------+--------------------------+--------------------+ 
|               Trade       |               36.0 |                        3.7 |                       2.8 |                    (3.0) |               39.5 | 
|               &           |                    |                            |                           |                          |                    | 
|               other       |                    |                            |                           |                          |                    | 
|               receivables |                    |                            |                           |                          |                    | 
+---------------------------+--------------------+----------------------------+---------------------------+--------------------------+--------------------+ 
|               Trade       |             (34.2) |                      (2.7) |                     (4.2) |                      3.6 |             (37.5) | 
|               &           |                    |                            |                           |                          |                    | 
|               other       |                    |                            |                           |                          |                    | 
|               payables    |                    |                            |                           |                          |                    | 
+---------------------------+--------------------+----------------------------+---------------------------+--------------------------+--------------------+ 
|               Net         |               21.1 |                        2.7 |                       2.1 |                      0.8 |               26.7 | 
|               working     |                    |                            |                           |                          |                    | 
|               capital     |                    |                            |                           |                          |                    | 
+---------------------------+--------------------+----------------------------+---------------------------+--------------------------+--------------------+ 
 
 
The above table highlights the impact on working capital of the acquisition of 
Service Source Europe Limited and the translation effect of the movement in Euro 
and dollar exchange rates against sterling.  Included within acquisitions and 
disposals trade and other receivables is GBP1.1m relating to the deferred 
balance receivable on the sale of the investment in MessageLabsGroup. 
 
 
The underlying movements above include inventory relating to the new Supply 
Chain contract commenced in May 2008. 
 
 
The business is focused on the reduction of working capital which is reflected 
in improvements in stock turns and debtor days outstanding over recent months. 
 
 
Pensions 
 
 
The Group operates a defined contribution pension scheme, but also has a closed 
defined benefit scheme which dated back to an acquisition in 1999. Assets of the 
defined benefit scheme were valued at GBP23.7 million at 31 March 2009 ( 2008: 
GBP27.9 million) reflecting the impact of the global economic downturn on equity 
and bond markets, which resulted in the reduction in the value of assets held by 
the scheme. 
Scheme liabilities under International Accounting Standard No 19 (IAS19) were 
valued by the actuaries at GBP29.4 million (2008: GBP31.7 million), giving a 
deficit of GBP5.7 million (2008: GBP3.8 million). 
The most recent scheme funding valuation, conducted at March 2006, showed a 
deficit of GBP6.2 million after which contributions of GBP1.3 million per annum 
through to November 2012 were agreed with the Trustees. A new scheme funding 
valuation is being carried out as at 31 March 2009 after which discussions will 
be held with the trustees regarding the level of ongoing contributions. 
 
 
 
 
Malcolm Cooper 
Group Finance Director 
 
 
1 June 2009 
 
 
 
 
 
 
 
 
 
 ACAL plc 
 
                      Consolidated income statementfor year ended 31 March 2009 
+----------------------------+-------+-------------+-------------+----------+----------+--+-------------+---------+--+ 
|                            |       |                                 2009 | 2008                                | 
|                            |       |                                      |                                     | 
+----------------------------+-------+--------------------------------------+-------------------------------------+ 
|                            |       |             |             |          |          |                |         | 
+----------------------------+-------+-------------+-------------+----------+----------+----------------+---------+ 
|                            |       |             |             |    Total |      Before |             |      Total | 
|                            |       |      Before | Exceptional |          | exceptional | Exceptional |  restated* | 
|                            |       |             |       Items |          |       items |       items |            | 
|                            |       | exceptional |    (note 7) |          |             |    (note 7) |            | 
|                            |       |       items |             |          |             |             |            | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+------------+ 
|                            | Notes |             |        GBPm |          |        GBPm |        GBPm |         | 
|                            |       |        GBPm |             |     GBPm |             |             |    GBPm | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Continuing operations      |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Revenue                    |   5,6 |       165.4 |           - |    165.4 |       159.5 |           - |   159.5 | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Cost of Sales              |       |     (121.5) |           - |  (121.5) |     (113.7) |           - | (113.7) | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Gross profit               |       |        43.9 |           - |     43.9 |        45.8 |           - |    45.8 | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
|                            |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Selling and distribution   |       |      (26.8) |           - |   (26.8) |      (24.4) |           - |  (24.4) | 
| costs                      |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Administrative expenses    |       |      (16.8) |      (44.4) |   (61.2) |      (15.4) |       (3.5) |  (18.9) | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Other operating income     |       |           - |        16.7 |     16.7 |         0.1 |           - |     0.1 | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
|                            |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Operating profit/(loss)    |     5 |         0.3 |      (27.7) |   (27.4) |         6.1 |       (3.5) |     2.6 | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
|                            |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Analysed as:               |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Adjusted operating profit  |       |         0.4 |             |          |         6.2 |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Share based payments       |       |       (0.1) |             |          |       (0.1) |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
|                            |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Share of post-tax          |       |       (0.1) |           - |    (0.1) |         0.7 |           - |     0.7 | 
| (losses)/profits from      |       |             |             |          |             |             |         | 
| associates                 |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Impairment of investment   |       |           - |       (5.4) |    (5.4) |           - |           - |       - | 
| in associates              |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Finance costs              |       |       (1.1) |           - |    (1.1) |       (1.5) |           - |   (1.5) | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Finance revenue            |       |         1.4 |           - |      1.4 |         0.8 |           - |     0.8 | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Profit/(loss) before tax   |       |         0.5 |      (33.1) |   (32.6) |         6.1 |       (3.5) |     2.6 | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
|                            |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Analysed as:               |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Adjusted profit before tax |       |         0.8 |             |          |         6.2 |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Share based payments       |       |       (0.1) |             |          |       (0.1) |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| IAS 19 income statement    |       |             |             |          |             |             |         | 
| charge for pension         |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| finance cost               |       |       (0.2) |             |          |           - |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
|                            |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Tax expense                |       |       (1.4) |       (3.0) |    (4.4) |       (2.3) |         0.2 |   (2.1) | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
|                            |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
|                            |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Net (loss)/profit from     |       |       (0.9) |      (36.1) |   (37.0) |         3.8 |       (3.3) |     0.5 | 
| continuing operations      |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
|                            |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Discontinued operations    |    11 |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Profit for the year from   |       |             |             |        - |             |             |    27.4 | 
| discontinued operations    |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| (Loss)/profit for the year |       |             |             |   (37.0) |             |             |    27.9 | 
|                            |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
|                            |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Attributable to:           |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Equity holders of the      |       |             |             |   (37.1) |             |             |    27.9 | 
| parent                     |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Minority interests         |       |             |             |      0.1 |             |             |       - | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
|                            |       |             |             |   (37.0) |             |             |    27.9 | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
|                            |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| (Loss)/earnings per share  |     9 |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Continuing operations      |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Basic                      |       |      (3.8)p |    (136.7)p | (140.5)p |       14.5p |     (12.5)p |    2.0p | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Diluted                    |       |      (3.8)p |    (136.7)p | (140.5)p |       14.5p |     (12.5)p |    2.0p | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
|     Including discontinued |       |             |             |          |             |             |         | 
|                 operations |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Basic                      |       |             |             | (140.5)p |             |             |  105.7p | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Diluted                    |       |             |             | (140.5)p |             |             |  105.7p | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Dividends                  |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Dividends per share        |       |             |             |     7.0p |             |             |   21.9p | 
| declared in respect of     |       |             |             |          |             |             |         | 
| year                       |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Dividends per share paid   |       |             |             |    18.2p |             |             |   21.9p | 
| in year                    |       |             |             |          |             |             |         | 
+----------------------------+-------+-------------+-------------+----------+-------------+-------------+---------+ 
| Dividends paid in year     |       |             |             |  GBP4.8m |             |             | GBP5.8m | 
+----------------------------+-------+-------------+-------------+----------+----------+--+-------------+---------+--+ 
 
 
*restated for prior year adjustment, see note 11 
  ACAL plc 
 
 
Consolidated statement of recognised income and expense 
for the year ended 31 March 2009 
 
 
+----------------------------------------+---------+----------+------------+ 
|                                        |         |     2009 |       2008 | 
|                                        |         |     GBPm |       GBPm | 
+----------------------------------------+---------+----------+------------+ 
| Actuarial (loss)/gain on defined       |         |    (3.0) |        2.0 | 
| benefit pension scheme                 |         |          |            | 
+----------------------------------------+---------+----------+------------+ 
| Deferred tax relating to pension       |         |      0.8 |      (0.7) | 
| scheme                                 |         |          |            | 
+----------------------------------------+---------+----------+------------+ 
| Foreign currency translation           |         |      1.6 |        1.5 | 
| differences                            |         |          |            | 
+----------------------------------------+---------+----------+------------+ 
| Net (expense)/income recognised        |         |    (0.6) |        2.8 | 
| directly in equity                     |         |          |            | 
+----------------------------------------+---------+----------+------------+ 
| (Loss)/profit for the year             |         |   (37.0) |       27.9 | 
+----------------------------------------+---------+----------+------------+ 
| Total recognised (expense)/income for  |         |   (37.6) |       30.7 | 
| the year                               |         |          |            | 
+----------------------------------------+---------+----------+------------+ 
| Total recognised (expense)/income      |         |          |            | 
| attributable to:                       |         |          |            | 
+----------------------------------------+---------+----------+------------+ 
| Equity holders of the parent           |         |   (37.7) |       30.7 | 
+----------------------------------------+---------+----------+------------+ 
| Minority interest                      |         |      0.1 |          - | 
+----------------------------------------+---------+----------+------------+ 
|                                        |         |   (37.6) |       30.7 | 
+----------------------------------------+---------+----------+------------+ 
 
 
 
 
 
ACAL plc 
 
 
Consolidated balance sheet 
at 31 March 2009 
 
 
+----------------------------------+--------+---------------+----------------+ 
|                                  |  Notes |          2009 |           2008 | 
|                                  |        |          GBPm |           GBPm | 
+----------------------------------+--------+---------------+----------------+ 
| Non-current assets               |        |               |                | 
+----------------------------------+--------+---------------+----------------+ 
| Property, plant and equipment    |        |           4.7 |            4.4 | 
+----------------------------------+--------+---------------+----------------+ 
| Intangible assets - goodwill     |     13 |          13.5 |           53.4 | 
+----------------------------------+--------+---------------+----------------+ 
| Intangible assets - other        |        |           1.5 |            1.1 | 
+----------------------------------+--------+---------------+----------------+ 
| Investments in associates        |        |             - |            5.7 | 
+----------------------------------+--------+---------------+----------------+ 
| Financial assets                 |        |             - |            0.3 | 
+----------------------------------+--------+---------------+----------------+ 
| Deferred tax assets              |        |           2.6 |            3.4 | 
+----------------------------------+--------+---------------+----------------+ 
|                                  |        |          22.3 |           68.3 | 
+----------------------------------+--------+---------------+----------------+ 
| Current assets                   |        |               |                | 
+----------------------------------+--------+---------------+----------------+ 
| Inventories                      |        |          24.7 |           19.3 | 
+----------------------------------+--------+---------------+----------------+ 
| Trade and other receivables      |        |          39.5 |           36.0 | 
+----------------------------------+--------+---------------+----------------+ 
| Current tax assets               |        |           0.4 |            0.6 | 
+----------------------------------+--------+---------------+----------------+ 
| Cash and cash equivalents        |        |          33.2 |           35.6 | 
+----------------------------------+--------+---------------+----------------+ 
|                                  |        |          97.8 |           91.5 | 
+----------------------------------+--------+---------------+----------------+ 
|                                  |        |               |                | 
+----------------------------------+--------+---------------+----------------+ 
| Total assets                     |        |         120.1 |          159.8 | 
+----------------------------------+--------+---------------+----------------+ 
|                                  |        |               |                | 
+----------------------------------+--------+---------------+----------------+ 
| Current liabilities              |        |               |                | 
+----------------------------------+--------+---------------+----------------+ 
| Trade and other payables         |        |        (37.5) |         (34.2) | 
+----------------------------------+--------+---------------+----------------+ 
| Short-term borrowings            |        |         (8.6) |          (9.9) | 
+----------------------------------+--------+---------------+----------------+ 
| Current tax liabilities          |        |         (5.1) |          (5.2) | 
+----------------------------------+--------+---------------+----------------+ 
| Provisions                       |        |         (2.5) |          (3.2) | 
+----------------------------------+--------+---------------+----------------+ 
|                                  |        |        (53.7) |         (52.5) | 
+----------------------------------+--------+---------------+----------------+ 
|                                  |        |               |                | 
+----------------------------------+--------+---------------+----------------+ 
| Non-current liabilities          |        |               |                | 
+----------------------------------+--------+---------------+----------------+ 
| Long-term borrowings             |        |         (0.1) |          (0.1) | 
+----------------------------------+--------+---------------+----------------+ 
| Pension liability                |     14 |         (5.7) |          (3.8) | 
+----------------------------------+--------+---------------+----------------+ 
| Deferred tax liabilities         |        |         (0.5) |          (1.2) | 
+----------------------------------+--------+---------------+----------------+ 
| Provisions                       |        |         (1.5) |          (1.5) | 
+----------------------------------+--------+---------------+----------------+ 
|                                  |        |         (7.8) |          (6.6) | 
+----------------------------------+--------+---------------+----------------+ 
|                                  |        |               |                | 
+----------------------------------+--------+---------------+----------------+ 
| Total liabilities                |        |        (61.5) |         (59.1) | 
+----------------------------------+--------+---------------+----------------+ 
|                                  |        |               |                | 
+----------------------------------+--------+---------------+----------------+ 
| Net assets                       |        |          58.6 |          100.7 | 
+----------------------------------+--------+---------------+----------------+ 
|                                  |        |               |                | 
+----------------------------------+--------+---------------+----------------+ 
| Equity                           |        |               |                | 
+----------------------------------+--------+---------------+----------------+ 
| Share capital                    |     15 |           1.3 |            1.3 | 
+----------------------------------+--------+---------------+----------------+ 
| Share premium account            |     15 |          38.0 |           38.0 | 
+----------------------------------+--------+---------------+----------------+ 
| Translation reserve              |     15 |           3.5 |            1.9 | 
+----------------------------------+--------+---------------+----------------+ 
| Merger reserve                   |     15 |           3.0 |            3.0 | 
+----------------------------------+--------+---------------+----------------+ 
| Retained earnings                |     15 |          12.4 |           56.5 | 
+----------------------------------+--------+---------------+----------------+ 
| Equity attributable to equity    |     15 |          58.2 |          100.7 | 
| holders of the parent            |        |               |                | 
+----------------------------------+--------+---------------+----------------+ 
|                                  |        |               |                | 
+----------------------------------+--------+---------------+----------------+ 
| Equity minority Interest         |        |           0.4 |              - | 
+----------------------------------+--------+---------------+----------------+ 
| Total equity                     |        |          58.6 |          100.7 | 
+----------------------------------+--------+---------------+----------------+ 
 
 
 
 
 
 
 
ACAL plc 
 
 
Consolidated cash flow statement 
for the year ended 31 March 2009 
 
 
+--------------------------------------------+----+--+------------+--+------------+ 
|                                            |    |  |       2009 |  |       2008 | 
|                                            |    |  |       GBPm |  |       GBPm | 
+--------------------------------------------+----+--+------------+--+------------+ 
|                                            |    |  |            |  |            | 
+--------------------------------------------+----+--+------------+--+------------+ 
| (Loss)/profit for the year                 |    |  |     (37.0) |  |       27.9 | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Taxation expense (includes GBPnil (2008:   |    |  |        4.4 |  |        7.7 | 
| GBP5.6m) from discontinued operations)     |    |  |            |  |            | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Share of results of associates             |    |  |        0.1 |  |      (0.7) | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Net finance (income)/costs                 |    |  |      (0.3) |  |        1.0 | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Depreciation of property, plant and        |    |  |        1.3 |  |        1.6 | 
| equipment                                  |    |  |            |  |            | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Amortisation of intangible assets -        |    |  |        0.6 |  |        3.0 | 
| software                                   |    |  |            |  |            | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Change in provisions                       |    |  |      (0.7) |  |        0.3 | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Gain on disposal of investments and        |    |  |     (15.9) |  |     (31.3) | 
| businesses                                 |    |  |            |  |            | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Loss on disposal of property, plant and    |    |  |         -  |  |        0.1 | 
| equipment                                  |    |  |            |  |            | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Impairment of goodwill and associates      |    |  |       47.2 |  |          - | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Pension scheme funding                     |    |  |      (1.3) |  |      (1.6) | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Equity-settled share-based payment expense |    |  |          - |  |        0.1 | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Operating cash flows before changes in     |    |  |      (1.6) |  |        8.1 | 
| working capital                            |    |  |            |  |            | 
|                                            |    |  |            |  |            | 
+--------------------------------------------+----+--+------------+--+------------+ 
| (Increase)/decrease in inventories         |    |  |      (0.2) |  |        0.8 | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Decrease in trade and other receivables    |    |  |        3.0 |  |        3.7 | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Decrease in trade and other payables       |    |  |      (3.6) |  |      (5.9) | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Increase in working capital                |    |  |      (0.8) |  |      (1.4) | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Cash (absorbed by)/generated from          |    |  |      (2.4) |  |        6.7 | 
| operations                                 |    |  |            |  |            | 
+--------------------------------------------+----+--+------------+--+------------+ 
|                                            |    |  |            |  |            | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Interest paid                              |    |  |      (0.8) |  |      (2.1) | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Income taxes paid                          |    |  |      (3.4) |  |      (5.7) | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Net cash outflow from operating activities |    |  |      (6.6) |  |      (1.1) | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Cash flows from investing activities       |    |  |            |  |            | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Acquisition of shares in subsidiaries      |    |  |      (2.9) |  |         -  | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Net debt acquired with subsidiaries        |    |  |      (1.5) |  |          - | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Proceeds from sale of businesses (net of   |    |  |          - |  |       38.5 | 
| costs)                                     |    |  |            |  |            | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Proceeds from sale of financial assets     |    |  |       15.1 |  |          - | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Purchases of property, plant and equipment |    |  |      (1.2) |  |      (1.2) | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Proceeds from sale of property, plant and  |    |  |        0.2 |  |        0.5 | 
| equipment and intangibles                  |    |  |            |  |            | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Purchases of intangible assets - software  |    |  |      (0.2) |  |      (0.2) | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Interest received                          |    |  |        1.4 |  |        0.9 | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Dividends received from associates         |    |  |        0.2 |  |        0.2 | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Net cash inflow from investing activities  |    |  |       11.1 |  |       38.7 | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Cash flows from financing activities       |    |  |            |  |            | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Repayments of borrowings                   |    |  |      (0.1) |  |     (10.1) | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Dividends paid to company's shareholders   |    |  |      (4.8) |  |      (5.8) | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Net cash outflow from financing activities |    |  |      (4.9) |  |     (15.9) | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Net (decrease)/increase in cash and cash   |    |  |      (0.4) |  |       21.7 | 
| equivalents                                |    |  |            |  |            | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Cash and cash equivalents at 1 April       |    |  |       25.8 |  |        4.8 | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Effect of exchange rate fluctuations       |    |  |      (0.6) |  |      (0.7) | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Cash and cash equivalents at 31 March      |    |  |       24.8 |  |       25.8 | 
+--------------------------------------------+----+--+------------+--+------------+ 
 
 
+--------------------------------------------+----+--+------------+--+------------+ 
| Reconciliation to cash and cash            |    |  |            |  |            | 
| equivalents in the balance sheet           |    |  |            |  |            | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Cash and cash equivalents shown above      |    |  |       24.8 |  |       25.8 | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Add back overdrafts                        |    |  |        8.4 |  |        9.8 | 
+--------------------------------------------+----+--+------------+--+------------+ 
| Cash and cash equivalents shown within     |    |  |       33.2 |  |       35.6 | 
| current assets in the balance sheet        |    |  |            |  |            | 
+--------------------------------------------+----+--+------------+--+------------+ 
 
 
 
 
 
 
ACAL plc 
 
 
 
 
Notes to the preliminary statement 
for the year ended 31 March 2009 
 
 
1     Publication of non-statutory accounts 
 
 
The preliminary results were authorised for issue by the Board of Directors on 1 
June 2009. The financial information set out above does not constitute the 
Company's statutory accounts for the years ended 31 March 2009 or 2008, but is 
derived from those accounts. Statutory accounts for 2008 have been delivered to 
the Registrar of Companies whereas those for 2009 will be delivered following 
the Company's Annual General Meeting. The auditors have reported on those 
accounts; their reports were unqualified and did not contain a statement under 
section 237 (2) or (3) of the Companies Act 1985. 
 
 
2     Basis of preparation 
 
 
The financial information in this statement is prepared in accordance with 
International Financial Reporting Standards (IFRS) as adopted for use in the 
European Union and as applied in accordance with the provisions of the Companies 
Act 1985. 
 
 
3     Going concern 
 
 
The Group's business activities, together with the factors likely to affect its 
future development, performance and position are set out in the Strategic and 
Operational Review.  The financial position of the Group, its cash flows, 
liquidity position and borrowing facilities are described in the Finance Review. 
 
 
 
The Group has considerable financial resources, well established distribution 
contracts with a number of suppliers and a broad and stable customer base.  As a 
consequence, the Directors believe that the Group is well placed to manage its 
business risks successfully despite the current uncertain economic outlook. 
 
 
After making enquiries, the Directors have a reasonable expectation that the 
Company and the Group have adequate resources to continue in operational 
existence for the foreseeable future.  Accordingly, they continue to adopt the 
going concern basis in preparing the annual report and accounts. 
 
 
4     Accounting policies 
 
 
The accounting policies used in the year ended 31 March 2009 are consistent with 
those applied in the financial statements for the year ended 31 March 2008 
except for the adoption of the non GAAP measure described below. 
 
 
The Directors believe that there are items, additional to the exceptional items 
shown on the face of the income statement that require separate presentation in 
the financial statements to assist readers' full understanding of the underlying 
performance of the Group. The face of the income statement now presents adjusted 
operating profit and adjusted profit before tax and reconciles these to 
operating profit and profit/(loss) before tax as required to be presented under 
the applicable accounting standards.  Adjusted earnings/(loss) per share is 
calculated having adjusted profit/(loss) after tax for the same items, their tax 
effect and the effect of any exceptional tax items. The term adjusted profit is 
not defined under IFRS and may not be comparable with similarly titled profit 
measures reported by other companies. It is not intended to be a substitute for, 
or superior to, GAAP measurement of profit. The adjustments made to reported 
profit/(loss) in the income statement in order to present an adjusted 
performance measure include: 
 
 
Exceptional items 
The Group discloses as exceptional items those items which are exceptional by 
virtue of their size or incidence so as to allow a better understanding of the 
underlying trading performance of the Group. The Group includes the profit on 
disposal of property, investments or businesses, impairments and significant 
restructuring charges or credits in exceptional items. 
 
 
IAS 19 Income Statement finance charge/(credit) for pensions 
Adjusted profit excludes the volatile finance cost/revenue element of IAS 19. 
 
 
Share based payments 
Adjusted profit excludes the cost of cash and equity settled share based 
payments. 
 
 
Taxation 
The tax impact of the above items is also excluded in arriving at adjusted 
earnings. 
 
 
5     Segmental analysis 
 
 
Segmental information is presented in respect of the Group's business segments, 
which are the primary basis of segmental reporting. This format reflects the 
Group's management and internal reporting structures. Inter segment revenue is 
insignificant. 
 
 
Year ended 31 March 2009 
+--------------------------+-------------+----------+---------+-------------+------------+ 
|                          | Electronics |   Supply | Medical | Unallocated |      Total | 
|                          |        GBPm |    Chain |         |        GBPm | operations | 
|                          |             |     GBPm |    GBPm |             |       GBPm | 
+--------------------------+-------------+----------+---------+-------------+------------+ 
| Revenue                  |       103.7 |     54.2 |     7.5 |           - |      165.4 | 
+--------------------------+-------------+----------+---------+-------------+------------+ 
|                          |             |          |         |             |            | 
+--------------------------+-------------+----------+---------+-------------+------------+ 
| Segment profit/(loss)    |         0.9 |      1.0 |     1.0 |       (2.6) |        0.3 | 
| before exceptionals      |             |          |         |             |            | 
+--------------------------+-------------+----------+---------+-------------+------------+ 
| Exceptional items -      |      (29.7) |   (12.1) |       - |           - |     (41.8) | 
| goodwill                 |             |          |         |             |            | 
+--------------------------+-------------+----------+---------+-------------+------------+ 
| Exceptional items -      |       (1.3) |    (0.1) |       - |       (1.2) |      (2.6) | 
| restructuring            |             |          |         |             |            | 
+--------------------------+-------------+----------+---------+-------------+------------+ 
| Exceptional items -      |       (5.4) |        - |       - |        16.7 |       11.3 | 
| other                    |             |          |         |             |            | 
+--------------------------+-------------+----------+---------+-------------+------------+ 
| Net finance costs        |             |          |         |         0.3 |        0.3 | 
+--------------------------+-------------+----------+---------+-------------+------------+ 
| Share of post tax losses |       (0.1) |        - |       - |           - |      (0.1) | 
| of associates            |             |          |         |             |            | 
+--------------------------+-------------+----------+---------+-------------+------------+ 
| Loss before taxation     |      (35.6) |   (11.2) |     1.0 |        13.2 |     (32.6) | 
+--------------------------+-------------+----------+---------+-------------+------------+ 
| Taxation                 |             |          |         |             |      (4.4) | 
+--------------------------+-------------+----------+---------+-------------+------------+ 
| Loss for the year        |             |          |         |             |     (37.0) | 
+--------------------------+-------------+----------+---------+-------------+------------+ 
 
 
Year ended 31 March 2008 
+---------------------------+-------------+----------+---------+-------------+------------+ 
|                           | Electronics |   Supply | Medical | Unallocated |     Total  | 
|                           |             |    Chain |         |        GBPm |       GBPm | 
|                           |        GBPm |     GBPm |    GBPm |             |            | 
+---------------------------+-------------+----------+---------+-------------+------------+ 
| Revenue                   |       103.1 |     48.3 |     8.1 |           - |      159.5 | 
+---------------------------+-------------+----------+---------+-------------+------------+ 
|                           |             |          |         |             |            | 
+---------------------------+-------------+----------+---------+-------------+------------+ 
| Segment profit/(loss)     |         3.2 |      3.3 |     1.3 |       (1.7) |        6.1 | 
| before exceptionals       |             |          |         |             |            | 
+---------------------------+-------------+----------+---------+-------------+------------+ 
| Exceptional item -        |           - |        - |       - |       (3.5) |      (3.5) | 
| provision for retained    |             |          |         |             |            | 
| obligations               |             |          |         |             |            | 
+---------------------------+-------------+----------+---------+-------------+------------+ 
| Net finance costs         |             |          |         |       (0.7) |      (0.7) | 
+---------------------------+-------------+----------+---------+-------------+------------+ 
| Share of post-tax profits |         0.7 |        - |       - |           - |        0.7 | 
| of associates             |             |          |         |             |            | 
+---------------------------+-------------+----------+---------+-------------+------------+ 
| Profit before taxation    |         3.9 |      3.3 |     1.3 |       (5.9) |        2.6 | 
+---------------------------+-------------+----------+---------+-------------+------------+ 
| Taxation                  |             |          |         |             |      (2.1) | 
+---------------------------+-------------+----------+---------+-------------+------------+ 
| Profit for the year from  |             |          |         |             |        0.5 | 
| continuing operations     |             |          |         |             |            | 
+---------------------------+-------------+----------+---------+-------------+------------+ 
| Profit for the year from  |             |          |         |             |       27.4 | 
| discontinued operations   |             |          |         |             |            | 
+---------------------------+-------------+----------+---------+-------------+------------+ 
| Profit for the year       |             |          |         |             |       27.9 | 
+---------------------------+-------------+----------+---------+-------------+------------+ 
 
 
The results for the year ended 31 March 2008 have been restated to reflect 
Vertec, a distributor of medical equipment, as a separate segment and to 
separately disclose unallocated costs.  Vertec was previously included within 
Electronics. 
 
 
6     Geographic analysis of revenue by destination 
+----------------------------------+--------------+---------------+----------+ 
|                                  |              |          2009 |     2008 | 
|                                  |              |          GBPm |     GBPm | 
+----------------------------------+--------------+---------------+----------+ 
| Europe                           |              |         157.6 |    152.5 | 
+----------------------------------+--------------+---------------+----------+ 
| Rest of the World                |              |           7.8 |      7.0 | 
+----------------------------------+--------------+---------------+----------+ 
|                                  |              |         165.4 |    159.5 | 
+----------------------------------+--------------+---------------+----------+ 
 
 
7     Exceptional items 
+----------------------------------+--------------+----------------+----------+ 
|                                  |              |           2009 |     2008 | 
|                                  |              |           GBPm |     GBPm | 
+----------------------------------+--------------+----------------+----------+ 
| Other operating income:          |              |                |          | 
+----------------------------------+--------------+----------------+----------+ 
| Write back of unutilised provision for retained |            0.8 |        - | 
| obligations                                     |                |          | 
+-------------------------------------------------+----------------+----------+ 
| Profit on disposal of financial  |              |           15.9 |        - | 
| asset                            |              |                |          | 
+----------------------------------+--------------+----------------+----------+ 
|                                  |              |           16.7 |        - | 
+----------------------------------+--------------+----------------+----------+ 
| Administration expenses:         |              |                |          | 
+----------------------------------+--------------+----------------+----------+ 
| Impairment of goodwill           |              |         (41.8) |        - | 
+----------------------------------+--------------+----------------+----------+ 
| Termination and restructuring    |              |          (2.6) |        - | 
| costs                            |              |                |          | 
+----------------------------------+--------------+----------------+----------+ 
| Provision for retained           |              |              - |    (3.5) | 
| obligations                      |              |                |          | 
+----------------------------------+--------------+----------------+----------+ 
|                                  |              |         (44.4) |    (3.5) | 
+----------------------------------+--------------+----------------+----------+ 
| Net operating exceptional items  |              |         (27.7) |    (3.5) | 
+----------------------------------+--------------+----------------+----------+ 
| Non operating items:             |              |                |          | 
+----------------------------------+--------------+----------------+----------+ 
| Impairment of associate          |              |          (5.4) |        - | 
| investments                      |              |                |          | 
+----------------------------------+--------------+----------------+----------+ 
|                                  |              |         (33.1) |    (3.5) | 
+----------------------------------+--------------+----------------+----------+ 
| Tax on exceptional items         |              |          (3.0) |      0.2 | 
+----------------------------------+--------------+----------------+----------+ 
| Total continuing exceptional     |              |         (36.1) |    (3.3) | 
| items                            |              |                |          | 
+----------------------------------+--------------+----------------+----------+ 
Provisions for retained obligations were set up in 2008 in relation to the sale 
of the IT Solutions business. The unutilised provision relates to savings on 
restructuring costs. 
 
 
The sale of MessageLabsGroup Limited to Symantec was completed in November 2008. 
The total consideration receivable by Acal for its 3.95% investment is GBP16.2 
million of which GBP15.1 million was received on completion. An amount of GBP1.1 
million has been retained in escrow and will be paid to Acal if there are no 
warranty claims within a 12 month period.  The profit on disposal is GBP15.9 
million. 
 
 
The Group has impaired goodwill relating to a number of its Electronics and 
Supply Chain businesses. This has resulted in an impairment charge of GBP41.8m 
in the year to 31 March 2009. 
 
 
Termination and restructuring costs relating to the reorganisation of the Group 
have been incurred during the year and a provision created for additional costs. 
These consist of redundancy and legal costs. 
 
 
The Group has impaired the carrying value of its associate investments. These 
investments are no longer considered to have any equity value. 
 
 
8     Dividends 
 
 
The Directors have proposed a final dividend of 3.5 pence per share, payable on 
29 July 2009 to shareholders on the register at 19 June 2009. In accordance with 
IAS 10, this dividend has not been reflected in the balance sheet at 31 March 
2009. The amount of this final dividend is GBP0.9m. An interim dividend of 3.5 
pence per share was paid in January 2009, and the cost of this dividend was 
GBP0.9 million. 
 
 
9     (Loss)/earnings per share 
 
 
Basic (loss)/earnings per share are calculated by dividing the net (loss)/profit 
for the year attributable to ordinary equity holders of the Company by the 
weighted average number of ordinary shares outstanding during the year. 
 
 
Diluted (loss)/earnings per share is the basic earnings per share after allowing 
for the dilutive effect of the conversion into ordinary shares of the weighted 
average number of options outstanding during the year. 
 
 
 (Loss)/earnings per share from continuing operations  including exceptional 
items of (140.5)p (2008 : 14.5p) and excluding exceptional items of (3.8)p 
(2008: 14.5p) have been calculated on attributable ongoing (losses)/profits of 
GBP(37.1)m (2008: GBP0.5m) and exceptional items net of tax of GBP(36.1)m (2008: 
GBP(3.3)m). 
 
 
The following reflects the income and share data used in the basic and diluted 
(loss)/earnings per share computations: 
+------------------------------------------+----------+----------+----------+ 
|                                          |          |     2009 |     2008 | 
|                                          |          |     GBPm |     GBPm | 
+------------------------------------------+----------+----------+----------+ 
| (Loss)/profit for the year from          |          |    (1.0) |     3.8  | 
| continuing operations attributable to    |          |          |          | 
| equity holders of the parent - before    |          |          |          | 
| exceptionals                             |          |          |          | 
+------------------------------------------+----------+----------+----------+ 
| Exceptional items net of tax             |          |   (36.1) |    (3.3) | 
+------------------------------------------+----------+----------+----------+ 
| (Loss)/profit for the year from          |          |   (37.1) |      0.5 | 
| continuing operations attributable to    |          |          |          | 
| equity holders of the parent             |          |          |          | 
+------------------------------------------+----------+----------+----------+ 
| Profit for the year from discontinued    |          |        - |     27.4 | 
| operations attributable to equity        |          |          |          | 
| holders of the parent                    |          |          |          | 
+------------------------------------------+----------+----------+----------+ 
| (Loss)/profit for the year attributable  |          |   (37.1) |     27.9 | 
| to equity holders of the parent          |          |          |          | 
+------------------------------------------+----------+----------+----------+ 
 
 
 
 
+------------------------------------------+----------+----------+----------+ 
|                                          |          |     2009 |     2008 | 
|                                          |          |  million |  million | 
+------------------------------------------+----------+----------+----------+ 
| Weighted average number of shares for    |          |     26.4 |     26.4 | 
| basic earnings per share                 |          |          |          | 
+------------------------------------------+----------+----------+----------+ 
| Effect of dilution - share options       |          |        - |        - | 
+------------------------------------------+----------+----------+----------+ 
| Adjusted weighted average number of      |          |     26.4 |     26.4 | 
| shares for diluted earnings per share    |          |          |          | 
+------------------------------------------+----------+----------+----------+ 
 
 
At the year end there were 0.6 million ordinary share options in issue that 
could potentially dilute earnings per share in the future but are not included 
in the calculation at the year end because they are currently non-dilutive 
(2008: 1.1 million). 
 
 
10     Acquisition 
 
 
On 9 January 2009, the Group acquired 75% of the issued share capital of Service 
Source Europe Limited ("SSE") for a consideration of GBP2.9 million (including 
costs). An analysis of the consideration paid, assets and liabilities acquired 
and goodwill arising is set out below. 
+--------------------------------------------+---+------------+------------+ 
|                                            |   |            |            | 
+--------------------------------------------+---+------------+------------+ 
The following table summarises the book value of the major categories of assets 
and liabilities included in the consolidated financial statements at the date of 
acquisition. 
 
+--------------------------------------------------+---------+------------+ 
|                                                  |    Book | Fair value | 
|                                                  |   value |       GBPm | 
|                                                  |    GBPm |            | 
+--------------------------------------------------+---------+------------+ 
| Property, plant & equipment                      |     0.4 |        0.4 | 
+--------------------------------------------------+---------+------------+ 
| Intangible assets - software                     |     0.1 |        0.1 | 
+--------------------------------------------------+---------+------------+ 
| Intangible assets - customer contracts           |       - |        0.7 | 
+--------------------------------------------------+---------+------------+ 
| Inventories                                      |     1.7 |        1.7 | 
+--------------------------------------------------+---------+------------+ 
| Trade and other receivables                      |     2.6 |        2.6 | 
+--------------------------------------------------+---------+------------+ 
| Bank overdrafts                                  |   (1.5) |      (1.5) | 
+--------------------------------------------------+---------+------------+ 
| Trade and other payables                         |   (2.7) |      (2.7) | 
+--------------------------------------------------+---------+------------+ 
| Net assets                                       |     0.6 |        1.3 | 
+--------------------------------------------------+---------+------------+ 
| Minority interest                                |         |      (0.3) | 
+--------------------------------------------------+---------+------------+ 
| Provisional goodwill arising on acquisition      |         |        1.9 | 
+--------------------------------------------------+---------+------------+ 
| Total investment                                 |         |        2.9 | 
+--------------------------------------------------+---------+------------+ 
|                                                  |         |            | 
+--------------------------------------------------+---------+------------+ 
| Satisfied by cash                                |         |        2.9 | 
+--------------------------------------------------+---------+------------+ 
 
 
Fair value adjustments have been made to certain customer contracts.  The fair 
values on acquisition of SSE are provisional due to the timing of the 
transaction and will be finalised during 2010 financial year. 
 
 
Net cash outflows in respect of the acquisition comprise: 
 
 
+--------------------------------------------+---+---------------+---------+ 
|                                            |   |               |   Total | 
|                                            |   |               |    GBPm | 
+--------------------------------------------+---+---------------+---------+ 
|                                            |   |               |         | 
+--------------------------------------------+---+---------------+---------+ 
| Cash consideration                         |   |               |     2.9 | 
+--------------------------------------------+---+---------------+---------+ 
| Net cash and overdrafts acquired           |   |               |     1.5 | 
+--------------------------------------------+---+---------------+---------+ 
|                                            |   |               |     4.4 | 
+--------------------------------------------+---+---------------+---------+ 
 
 
 
 
From the date of acquisition, SSE has contributed a profit of GBP0.2 million to 
the loss from continuing operations of the Group. If the acquisition had taken 
place at the beginning of the year, the loss for the year from continuing 
operations for the Group would have been GBP36.8 million and revenue from 
continuing operations would have been GBP176.1 million. 
 
 
The goodwill of GBP1.9m comprises the value of expected synergies, the 
experience and skill of the management team and the value of customer 
relationships. 
 
 
On 9 April 2009, Acal acquired the remaining 25% in SSE for a total cash 
consideration of GBP1.0 million. Additional assets acquired as a result of this 
were GBP0.2 million. 
 
 
11     Discontinued operations 
 
 
On 27 September 2007, the Company announced that it had conditionally agreed to 
sell its IT Solutions Business ("ITS") to Avnet, Inc. The sale was completed on 
17 December 2007 for a cash consideration of GBP41 million. The results of ITS 
have been presented under discontinued operations in the consolidated income 
statement. 
 
 
There were no discontinued businesses during the current year. 
 
 
Profit from discontinued operations comprises 
 
 
+--------------------------------------------+---+---------------+---------+ 
|                                            |   |          2009 |    2008 | 
|                                            |   |          GBPm |    GBPm | 
+--------------------------------------------+---+---------------+---------+ 
| Profit on disposal of IT Solutions         |   |             - |    26.5 | 
| business                                   |   |               |         | 
+--------------------------------------------+---+---------------+---------+ 
| Profit for the year from trading of IT     |   |             - |     0.9 | 
| Solutions business                         |   |               |         | 
+--------------------------------------------+---+---------------+---------+ 
| Profit for the year from discontinued      |   |             - |    27.4 | 
| operations                                 |   |               |         | 
+--------------------------------------------+---+---------------+---------+ 
 
 
 
 
+--------------------------------------------+---+---------------+----------+ 
|                                            |   |          2009 |     2008 | 
|                                            |   |          GBPm |     GBPm | 
+--------------------------------------------+---+---------------+----------+ 
| Sale proceeds                              |   |             - |     41.0 | 
+--------------------------------------------+---+---------------+----------+ 
| Sale costs                                 |   |             - |    (2.8) | 
+--------------------------------------------+---+---------------+----------+ 
| Total net assets sold                      |   |             - |    (6.9) | 
+--------------------------------------------+---+---------------+----------+ 
|                                            |   |             - |     31.3 | 
+--------------------------------------------+---+---------------+----------+ 
| Tax effect of disposal                     |   |             - |    (4.8) | 
+--------------------------------------------+---+---------------+----------+ 
| Profit on disposal of IT Solutions         |   |             - |     26.5 | 
| business                                   |   |               |          | 
+--------------------------------------------+---+---------------+----------+ 
 
 
The profit for the year from discontinued operations is derived as follows: 
 
 
+--------------------------------------------------+--------------+---------+ 
|                                                  |         2009 |    2008 | 
|                                                  |         GBPm |    GBPm | 
+--------------------------------------------------+--------------+---------+ 
| Revenue - sale of goods                          |            - |    67.0 | 
+--------------------------------------------------+--------------+---------+ 
| Expenses                                         |            - |  (65.0) | 
+--------------------------------------------------+--------------+---------+ 
| Profit before financing and tax                  |            - |     2.0 | 
+--------------------------------------------------+--------------+---------+ 
| Finance costs (net)                              |            - |   (0.3) | 
+--------------------------------------------------+--------------+---------+ 
| Profit before tax                                |            - |     1.7 | 
+--------------------------------------------------+--------------+---------+ 
| Income tax expense                               |            - |   (0.8) | 
+--------------------------------------------------+--------------+---------+ 
| Profit for the year from discontinued operations |            - |     0.9 | 
+--------------------------------------------------+--------------+---------+ 
 
 
Cash flows relating to discontinued operations are as follows: 
 
 
+--------------------------------------------------+--------------+---------+ 
|                                                  |         2009 |    2008 | 
|                                                  |         GBPm |    GBPm | 
+--------------------------------------------------+--------------+---------+ 
| Net cash inflows from operating activities       |            - |     0.7 | 
+--------------------------------------------------+--------------+---------+ 
| Net cash outflows from investing activities      |            - |       - | 
+--------------------------------------------------+--------------+---------+ 
| Net cash flows from financing activities         |            - |       - | 
+--------------------------------------------------+--------------+---------+ 
| Net increase/(decrease) in cash and cash         |            - |     0.7 | 
| equivalents                                      |              |         | 
+--------------------------------------------------+--------------+---------+ 
 
 
Prior year adjustment 
 
 
In 2008, GBP2.2 million goodwill relating to the IT Solutions business, which 
was previously written off to reserves, was incorrectly recycled through the 
income statement as an adjustment to the profit on disposal. The prior year has 
been restated to correct this error. The impact on the restatement on the 
financial statements is as follows: 
 
 
+--------------------------------------------------+--------------+---------+ 
|                                                  |         2009 |    2008 | 
|                                                  |         GBPm |    GBPm | 
+--------------------------------------------------+--------------+---------+ 
| Profit for the year from discontinued operations |            - |     2.2 | 
+--------------------------------------------------+--------------+---------+ 
| (Loss)/profit for the year                       |            - |     2.2 | 
+--------------------------------------------------+--------------+---------+ 
| Basic and diluted (loss)/ earnings per share     |            - |    7.2p | 
| including discontinued operations                |              |         | 
+--------------------------------------------------+--------------+---------+ 
 
 
 
 
12     Movements in cash and net debt 
+------------------------------------+------+---------+--------------+---------+ 
|                                    |      |         |         2009 |    2008 | 
|                                    |      |         |         GBPm |    GBPm | 
+------------------------------------+------+---------+--------------+---------+ 
| Net (decrease)/increase in cash    |      |         |        (0.4) |    21.7 | 
| and cash equivalents               |      |         |              |         | 
+------------------------------------+------+---------+--------------+---------+ 
| Cash (inflow)/outflow from         |      |         |        (0.1) |    10.1 | 
| borrowings                         |      |         |              |         | 
+------------------------------------+------+---------+--------------+---------+ 
| Effect of exchange rate            |      |         |        (0.6) |   (0.8) | 
| fluctuations                       |      |         |              |         | 
+------------------------------------+------+---------+--------------+---------+ 
|                                    |      |         |              |         | 
+------------------------------------+------+---------+--------------+---------+ 
| (Decrease)/increase in net cash    |      |         |        (1.1) |    31.0 | 
+------------------------------------+------+---------+--------------+---------+ 
|                                    |      |         |              |         | 
+------------------------------------+------+---------+--------------+---------+ 
| Net cash/(debt) at beginning of    |      |         |         25.6 |   (5.4) | 
| the year                           |      |         |              |         | 
+------------------------------------+------+---------+--------------+---------+ 
|                                    |      |         |              |         | 
+------------------------------------+------+---------+--------------+---------+ 
| Net cash at end of the year        |      |         |         24.5 |    25.6 | 
+------------------------------------+------+---------+--------------+---------+ 
 
 
 
13     Intangibles assets - goodwill 
 
 
+--------------------------------------+------------+------------+------------+ 
|                                      |            |            |       GBPm | 
+--------------------------------------+------------+------------+------------+ 
| At 1 April 2007                      |            |            |       53.5 | 
+--------------------------------------+------------+------------+------------+ 
| Exchange adjustments                 |            |            |        0.2 | 
+--------------------------------------+------------+------------+------------+ 
| Disposal of shares in subsidiary     |            |            |      (0.3) | 
+--------------------------------------+------------+------------+------------+ 
| At 31 March 2008                     |            |            |       53.4 | 
+--------------------------------------+------------+------------+------------+ 
| Impairment                           |            |            |     (41.8) | 
+--------------------------------------+------------+------------+------------+ 
| Acquisition of shares in a           |            |            |        1.9 | 
| subsidiary                           |            |            |            | 
+--------------------------------------+------------+------------+------------+ 
| At 31 March 2009                     |            |            |       13.5 | 
+--------------------------------------+------------+------------+------------+ 
|                                      |            |            |            | 
+--------------------------------------+------------+------------+------------+ 
 
 
Goodwill is not amortised but is subject to annual impairment testing. 
 
 
Goodwill arising in the year relates to the acquisition of Service Source Europe 
Limited which is part of the Supply Chain division.  Further information is 
disclosed in Note 10. 
 
 
Impairment testing of goodwill 
 
 
The carrying amount of goodwill is analysed as follows: 
+-------------------------------------+------------+------------+------------+ 
|                                     |            |       2009 |       2008 | 
|                                     |            |       GBPm |       GBPm | 
+-------------------------------------+------------+------------+------------+ 
| ATM Parts Company Limited           |            |        0.3 |        5.4 | 
+-------------------------------------+------------+------------+------------+ 
| Computer Parts International        |            |        3.9 |        8.9 | 
| Limited                             |            |            |            | 
+-------------------------------------+------------+------------+------------+ 
| Service Source Europe Limited       |            |        1.9 |          - | 
+-------------------------------------+------------+------------+------------+ 
| UK electronics businesses           |            |        6.8 |       35.0 | 
+-------------------------------------+------------+------------+------------+ 
| Other                               |            |        0.6 |        4.1 | 
+-------------------------------------+------------+------------+------------+ 
|                                     |            |       13.5 |       53.4 | 
+-------------------------------------+------------+------------+------------+ 
 
 
During the year to 31 March 2009, a net impairment charge of GBP41.8m (2008: 
nil) was identified as part of the impairment review carried out in view of the 
challenging economic climate and the performance of the Group businesses. Of the 
total charge, GBP27.6m related to the UK electronics businesses, GBP5.1 million 
to ATM Parts Company Limited, GBP5.0 million to Computer Parts International 
Limited and GBP4.1m to other businesses. 
 
 
Goodwill acquired through business combinations is allocated to cash-generating 
units (CGUs). 
 
 
The recoverable amount of a CGU is based upon value in use calculations based 
upon budgets approved by the Board.  The key assumptions in these calculations 
relate to revenue and gross margins.  The calculation is most sensitive to 
revenue assumptions, however senior management believe that the assumptions used 
are reasonable.  Cash flows beyond the plan period are extrapolated using a 
growth rate of between 1% and 2% (2008: 2.5%). This is based upon budgets and 
management's assessment of market experience.  These rates do not exceed the 
average long-term growth rate for the relevant markets. The discount rate 
applied to cash flow projections, based upon management's expectations of the 
weighted average cost of capital, is 12.0% (2008: 11.6%). 
+-----------------------------+--------+---------+--------+----------+--------+ 
|                             |        |         |        |          |        | 
+-----------------------------+--------+---------+--------+----------+--------+ 
 
 
 
14     Pensions 
 
The pension liability relates to the Sedgemoor Group Pension Fund which was 
brought into the Group on the acquisition of the Sedgemoor Group in 1999. The 
fund, which is a defined benefit scheme, is operated as a 'paid up' pension 
scheme with only pensioners and deferred members. 
 
 
Following the actuarial valuation as at 31 March 2006, which showed a funding 
shortfall of GBP6,172,000, the Fund's Trustee, having reviewed its rights under 
the Scheme, agreed with Sedgemoor Limited ('the Company') a recovery plan based 
on extra contributions from the Company aimed at eliminating the shortfall by 
November 2012.  A new actuarial valuation is being carried out as at 31 March 
2009 after which discussions will be held with trustees regarding the level of 
ongoing contributions. 
 
 
The IAS 19 liability at 31 March 2009 was GBP5.7 million (2008: 3.8m). 
 
 
15     Equity attributable to equity holders of the parent 
 
 
+--------------+---------+---------+----------+-------------+---------+--------+----------+--------+ 
|              |   Share |   Share | Retained | Translation |  Merger | Total  | Minority |  Total | 
|              | capital | premium | earnings |     reserve | reserve |        | Interest | Equity | 
|              |         | account |          |             |         |        |          |        | 
+--------------+---------+---------+----------+-------------+---------+--------+----------+--------+ 
|              |    GBPm |    GBPm |     GBPm |        GBPm |    GBPm |   GBPm |     GBPm |   GBPm | 
+--------------+---------+---------+----------+-------------+---------+--------+----------+--------+ 
| At 1 April   |     1.3 |    38.0 |     56.5 |         1.9 |     3.0 |  100.7 |        - |  100.7 | 
| 2008         |         |         |          |             |         |        |          |        | 
+--------------+---------+---------+----------+-------------+---------+--------+----------+--------+ 
| Total        |       - |       - |   (39.3) |         1.6 |       - | (37.7) |      0.1 | (37.6) | 
| recognised   |         |         |          |             |         |        |          |        | 
| income and   |         |         |          |             |         |        |          |        | 
| expense      |         |         |          |             |         |        |          |        | 
+--------------+---------+---------+----------+-------------+---------+--------+----------+--------+ 
| Equity       |       - |       - |    (4.8) |           - |       - |  (4.8) |        - |  (4.8) | 
| dividends    |         |         |          |             |         |        |          |        | 
+--------------+---------+---------+----------+-------------+---------+--------+----------+--------+ 
| Minority     |       - |       - |        - |           - |       - |      - |      0.3 |    0.3 | 
| interests of |         |         |          |             |         |        |          |        | 
| subsidiary   |         |         |          |             |         |        |          |        | 
| acquired     |         |         |          |             |         |        |          |        | 
+--------------+---------+---------+----------+-------------+---------+--------+----------+--------+ 
| At 31 March  |     1.3 |    38.0 |     12.4 |         3.5 |     3.0 |   58.2 |      0.4 |   58.6 | 
| 2009         |         |         |          |             |         |        |          |        | 
+--------------+---------+---------+----------+-------------+---------+--------+----------+--------+ 
 
 
+--------------+---------+---------+----------+-------------+---------+--------+----------+--------+ 
|              |   Share |   Share | Retained | Translation |  Merger | Total  | Minority |  Total | 
|              | capital | premium | earnings |     reserve | reserve |        | Interest | Equity | 
|              |         | account |          |             |         |        |          |        | 
+--------------+---------+---------+----------+-------------+---------+--------+----------+--------+ 
|              |    GBPm |    GBPm |     GBPm |        GBPm |    GBPm |   GBPm |     GBPm |   GBPm | 
+--------------+---------+---------+----------+-------------+---------+--------+----------+--------+ 
| At 1 April   |     1.3 |    38.0 |     35.3 |         0.4 |     0.8 |   75.8 |        - |   75.8 | 
| 2007         |         |         |          |             |         |        |          |        | 
+--------------+---------+---------+----------+-------------+---------+--------+----------+--------+ 
| Total        |       - |       - |     29.2 |         1.5 |       - |   30.7 |        - |   30.7 | 
| recognised   |         |         |          |             |         |        |          |        | 
| income and   |         |         |          |             |         |        |          |        | 
| expense      |         |         |          |             |         |        |          |        | 
+--------------+---------+---------+----------+-------------+---------+--------+----------+--------+ 
| Share based  |       - |       - |      0.1 |           - |       - |    0.1 |        - |    0.1 | 
| payments     |         |         |          |             |         |        |          |        | 
+--------------+---------+---------+----------+-------------+---------+--------+----------+--------+ 
| Equity       |       - |       - |    (5.8) |           - |       - |  (5.8) |        - |  (5.8) | 
| dividends    |         |         |          |             |         |        |          |        | 
+--------------+---------+---------+----------+-------------+---------+--------+----------+--------+ 
| Transfer of  |       - |       - |    (2.2) |           - |     2.2 |      - |        - |      - | 
| previously   |         |         |          |             |         |        |          |        | 
| written off  |         |         |          |             |         |        |          |        | 
| goodwill     |         |         |          |             |         |        |          |        | 
+--------------+---------+---------+----------+-------------+---------+--------+----------+--------+ 
| Dilution in  |       - |       - |    (0.1) |           - |       - |  (0.1) |        - |  (0.1) | 
| associates   |         |         |          |             |         |        |          |        | 
+--------------+---------+---------+----------+-------------+---------+--------+----------+--------+ 
| At 31 March  |     1.3 |    38.0 |     56.5 |         1.9 |     3.0 |  100.7 |        - |  100.7 | 
| 2008         |         |         |          |             |         |        |          |        | 
+--------------+---------+---------+----------+-------------+---------+--------+----------+--------+ 
 
 
16     Annual Report and Accounts 
 
 
The Annual Report and Accounts will be mailed to shareholders on or before 23 
June 2009. Copies will also be available at the company's registered office: 2 
Chancellor Court, Occam Road, Surrey Research Park, Guildford. GU2 7AH. In 
addition, this report is available on the company's website: www.acalplc.co.uk. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 FR UARURKNRVOAR 
 
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