contents page - portasol report 2007.pdfcontents page financial highlights 3 directors and other...

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Contents Page

Financial highlights 3

Directors and other information 4

Directors' biographies 5

Chairman's statement 8

Operating and financial review 9

Directors' report 11

Statement of Directors' responsibilities 18

Independent Auditor’s report 19

Statement of accounting policies 21

Group income statement 25

Group balance sheet 26

Group cash flow statement 27

Group statement of changes in equity 28

Company balance sheet 29

Company cashflow statement 30

Company statement of changes in equity 30

Notes forming part of the financial statements 31

Five Year Summary 42

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The Financial Statementsand Annual Report of

Oglesby & Butler Group plcfor the year ended 31 March 2007

Manufacturers and exporters ofthe Portasol gas-powered

soldering iron product range

www.portasol.com

3

2007 2006

000’s 000’s

Revenue 5,413 5,130

Profit/(loss)beforetaxation 216 (202)

Taxcreditonprofit/(loss) 6 21

Profit/(loss)forthefinancialyear 222 (181)

Profit/(loss)pershare 1.81c (1.47)c

Netassetspershare 46.49c 44.68c

FinancialHighlights

4

DirectorsN.O.Dowling(Chairman)A.P.Oglesby(Chief Executive)J.P.Oglesby(Research and Development)T.P.Byrne (Non-Executive)

SecretaryM.N.Boran

AuditorKPMGCharteredAccountantsRegisteredAuditor1StokesPlaceSt.Stephen’sGreenDublin2

SolicitorsArthurCoxSolicitorsEarlsfortCentreEarlsfortTerraceDublin2

StockbrokersBloxhamStockbrokers2/3ExchangePlaceI.F.S.C.Dublin1

DavyStockbrokersDavyHouse49DawsonStreetDublin2

BankersAlliedIrishBanks,plcBankcentreBallsbridgeDublin4

RegistrarandTransferOfficeComputershareServices(Ireland)LimitedHeronHouseCorrigRoadSandyfordDublin18

RegisteredOfficeIndustrialEstateO'BrienRoadCarlow

RegisteredNumber124871

DirectorsandOtherinformation

5

N.O.DowlingChairman (non-executive)

Charteredaccountant,aged69,isabusinessconsultantandwasformerlyChiefExecutiveofBordGaisEireann,andisadirectorofanumberofprivatecompanies.Inadditiontohisdutiesasnon-executiveChairman,NevinisChairmanoftheAuditCommitteeandamemberoftheRemunerationCommittee.

J.P.OglesbyResearch and Development Director

Designengineer,aged61,wasoneofthefoundersofOglesby&Butler.PaulhasworkedinengineeringcompaniesintheUnitedKingdomandalsoinBraunIrelandLimited.

T.P.ByrneNon-Executive Director

TomByrne,aged57,istheformerManagingDirectorofDavyCorporateFinanceLimited,partofDavyStockbrokers.HejoinedDavyin1987andretiredin2001topursueindividualinterestsandassignments.Hecurrentlymanageshisowncorporateadvisorycompanyandisadirectorofanumberofprivatecompanies.HeisaCharteredAccountantbyprofessionandisaformerpartnerinArthurAndersen.

A.P.OglesbyChief Executive

Designengineer,aged61,wasoneofthefoundersofOglesby&Butler.PeterworkedpreviouslyintheGeneralElectricCo.Group,theThornElectronicsGroupandBraunIrelandLimited.PeterisamemberoftheRemunerationCommittee.

Directors’Biographies

6

SuperPro Single

SuperPro Kit

AgriVetProductRange

Dehorner MKII

BlowTorchRange

Gas Torch 220

Professional Iron

Weller Kit

Technic Iron

Pro II Kit

Portasol 50 - (DIY)

ProPiezo Kit

CordlessGasPoweredSolderingIronRange

7

G200(Professional)

G125 (DIY)

G150

CordlessGasPoweredGlueGunRange

8

Chairman’sstatement

Iampleasedtoreportthatthegroupachievedaprofitbeforetaxof216,251fortheyearto31March2007whichcomparestoalossinthepreviousyearof201,618.Thisturnaroundinprofitabilitywasachievedinverydifficulttradingcircumstancesandreflectsthesuccessofstringenteffortsmadetoreducestaffinglevels,controlmanufacturingcostsandtoincreaseproductivity.

Wecontinuetoupgradeandenhanceexistingproductsthroughtheworkofthedevelopmentteamandinadditiontheteamisworkingonthealternativeusesforourexistinganddevelopingtechnologyinsearchofnewmarketsinwhichtosellourproducts.

BusinessreviewThefinancialstatementshavebeenpreparedinaccordancewiththeGroup’saccountingpoliciesunderIFRSasadoptedbytheE.U.assetoutinpages21to24.

Groupsalesfortheyearwere5.4m.Theprofitfortheyearbeforetaxationwas216,251(222,508aftertaxcreditof6,257)comparedwithalossof201,618lastyear.Earningspersharewere1.81c(2006loss-1.47c).

Researchison-goinginthedevelopmentofnewproductsbasedonexistingtechnology.

DividendsInlightofthecontinuedadversetradingconditionsitisnotintendedtoproposeadividendfortheyear.

OutlookTradingconditionscontinuetobedifficultparticularlyintheU.S.largelyduetomarketuncertaintyandtheweaknessoftheU.S.dollar.TheBoardbelievesthatwiththerigorouscostcontrolswhichhavebeenputinplacethattheGroup’sproductswillcontinuetobecompetitive.

Ithankmyfellowdirectorsandthestafffortheircommitmentandcontinuedsupport.

NevinO.DowlingChairman

20 September 2007

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Reviewofoperations

IntroductionWecontinuetooperateindifficulttradingconditionswhichhavebeenexacerbatedbytheweaknessoftheUSdollaragainsttheEuro.Despitetheseadversecircumstances,theGrouphastradedprofitablyandhasreturnedtoprofitfortheyear.Wecontinuetokeepunderreviewallelementsofouroperationsandaregearedtotakeimmediatecorrectiveactiontomaintainthecompetitivenessofourproducts.

ProductionStaffinglevelshavebeenmaintainedatreducedlevelstoprioryears,nevertheless,duelargelytonationalawards,ourwagescostscontinuetorise.Manufacturingprocesses,workpracticesandproductdesignarekeptunderreviewandwecontinuetoseektoimproveproductivityandreducemanufacturingcosts.

ResearchanddevelopmentWecontinuetoupgradeandimprovedesignofexistingproductstoensuretheircontinuedcompetitivenessinthemarket.Wealsocontinuetoinvestigateseveralpossibleareasofusebasedonourexistingpatentedknowledgeanddevelopinggastechnologymarkets.

MarketingWecontinuetoseekwiderexposureforourproductsinseveralinternationalmarketsandactivelypromoteallourproductsbyattendingandparticipatingintradefairsandsalesconferencesofmajordistributors.

FinanceDetailsoftheGroup’scashflowfor2007aresetoutintheconsolidatedcashflowstatementonpage27,andshowanincreaseincashof200,173ascomparedto89,342for2006.

ThetablebelowsummarisestheGroup’scashflowfor2007and2006

2007 2006

Inflows Operatingprofit/(loss) 243,850 (152,570)Workingcapitalreductionanddepreciation 216,974 547,269

460,824 394,699OutflowsInterestpaid (27,599) (25,308)Purchaseofpatents,property,plantandequipment(net) (197,057) (182,469)Financeleaserepayments (86,786) (97,580)Proceedsfrommaturityofinvestments 50,791 -

(260,651) (305,357)

Netcashinflow 200,173 89,342

Cashgenerationfromoperationsandworkingcapitalmanagementamountedto460,824intheyearandthesefundswereprimarilyusedforinvestmentinongoingproductdevelopmentandupgradingofmanufacturingprocesses.

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Operatingandfinancialreview(continued)

EnvironmentTheGroupendeavoursatalltimestocomplywithallapplicableenvironmentalregulations.

FutureWeanticipatethatdifficulttradingconditionsandtheweaknessoftheUSdollarwillcontinuetoadverselyaffectsalesofourproductsinthecomingyear.Weconsiderthatthecontrolsputinplacetoensurethatimmediatecorrectiveactionistakentominimisecostswillassistusintradingcompetitivelyinthecomingyear.

Ithankmanagementandstafffortheircommitmentandcontinuedsupport.

A.P.Oglesby(Chief Executive)

20September2007

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Directors’report

TheDirectorshavepleasureinsubmittingtheirAnnualReporttotheShareholders,togetherwiththeauditedfinancialstatementsfortheyearended31March2007.

Principalactivities,reviewofbusinessandfuturedevelopmentsTheCompanyisanindustrialholdingcompany.Theprincipalactivitiesofthegroupcontinuestobethemanufactureandexportofgaspoweredhandtools.Therehavebeennosignificantchangesintheseactivitiesduringtheyear,andtheDirectorshavenoplanstochangethemsignificantlyintheforeseeablefuture.Keyperformanceindicatorsthatarefocusedonbymanagementinclude:•marketshare•revenue,salesordersvalueandvolumes•dealernetworkrepresentationAdetailedreviewoftheoperationsfortheyear,andoffuturedevelopments,issetoutonpages9and10.

GroupundertakingsAlistingoftheCompany'sgroupundertakingsissetoutinnote27tothefinancialstatements.

ResultsDetailsoftheresultsfortheyeararesetoutintheGroupincomestatementandrelatednotes.

ResearchanddevelopmentDuringtheyear,164,841(2006:208,638)wasinvestedinresearchanddevelopment,whichhasbeenexpensedwithintheincomestatementfortheyear.Inadditionafurther88,395(2006:82,853)wasexpendedinsecuringpatents.Themainthrustoftheseactivitiesistofurtherdevelopthepotentialofourcordlessgaspoweredcatalyticrangeofsolderingirons,whileatthesametimedevelopingtheGlueGun/Agri-Productlineswiththeparticularapplicationofthermostatictemperaturecontrol.

DividendsNodividendsweredeclaredduringthefinancialyearended31March2007(2006:Nil).

AnnualGeneralMeetingNoticeoftheAnnualGeneralMeetingwillbeissuedunderseparatecover.Shareholdersarebeingaskedtorenewtheauthoritytodisapplythestatutorypre-emptionprovisions(validuntilthenextAnnualGeneralMeeting)uptoamaximumof1,231,508OrdinarySharesof12ceach(being10%ofthenominalvalueoftheCompany’sissuedsharecapitalatthedatehereof).

ExceptfortheissueofsharespursuanttotheCompany'sshareoptionschemes(shouldoptionsbeexercised),theDirectorsdonothaveanycurrentintentiontoissueshares.

Inaddition,ShareholdersarebeingaskedtorenewtheauthorityoftheCompanyoranyofitsgroupundertakings,whichwasoriginallygivenattheAnnualGeneralMeetingheldon10November2006,topurchasetheCompany'sownsharesandtore-issuetreasuryshares.ThetermsoftheauthorityarethesameasthosegivenattheAnnualGeneralMeetingon10November2006includingthetermsrelatingtothemaximumandminimumpricesatwhichsharesmaybepurchased,andthatsuchpurchasesmaynotexceed10%oftheexistingsharecapitaloftheCompanywithinanyperiodof12months.TheDirectorsdonothaveanycurrentintentiontoexercisethesepowers.

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Directors’report(continued)

InterestsofDirectorsandSecretaryTheinterests(allofwhichwerebeneficiallyowned)oftheDirectorsandCompanySecretary,andtheirwivesandminorchildren,inthesharecapitaloftheCompanyanditsGroupundertakingsat31March2007and31March2006wereasfollows:

Oglesby&Butler Oglesby&Butler Groupplc Investments OrdinaryShares OrdinaryShares

of12ceach 31March2006and31March2007 Atbeginning Atend Class per Number ofyear ofyear Share

N.O.Dowling 210,000 210,000 A 0.03 25,000A.P.Oglesby 2,876,188 2,876,188 B 0.04 20,000J.P.Oglesby 2,344,685 2,344,685 C 0.05 12,500M.N.Boran 11,668 11,668 K 0.31 2,000

DetailsofshareoptionsgrantedtotheDirectorsandCompanySecretaryareasfollows:

Atbeginning Granted Lapsed Atend Grant Dateof ofyear inyear inyear ofyear price Grant centM.N.Boran 30,000 - 30,000 - 33.00 1996

Alloftheaboveoptionswereexercisableforaperiodof10yearsfromtheanniversaryofthedatesonwhichtheyweregranted.Alloptionsoutstandinglapsedduringtheyear.

Themarketpriceofthesharesat31March2007was20candtherangefortheyear31March2007was19cto26c.

TherewerenochangesintheinterestsofDirectorsandSecretarysince31March2007.

TherehasnotbeenanycontractorarrangementinrelationtothebusinessoftheCompanyoranyGroupundertakingduringtheyearinwhichaDirectorortheSecretaryoftheCompanywasmateriallyinterestedandwhichwassignificantinrelationtotheCompany'sbusiness.

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Substantialshareinterests

Inadditiontotheholdingsindicatedabove,thefollowingShareholdersheldinexcessof3%oftheissuedordinarysharecapitaloftheCompanyat20September2007:

Oglesby&ButlerGroupplcOrdinarySharesof12ceach

Number %HoldingVidacosNomineesLimited 652,500 5.29%Mr.K.Anderson 3,167,958 25.72%

AsfarastheDirectorsareaware,nootherpersonorcompanyheld3%ormoreoftheissuedordinarysharecapitaloftheCompanyat20September2007.

ShareOptionSchemes

At31March2007,underthetermsoftheOglesby&ButlerGroupplcshareoptionschemes,therewerenooutstandingoptionsastheoutstandingoptionsof30,000ordinaryshareshadlapsedduringtheyear(31March2006:30,000optionsoverordinaryshares).

Corporategovernance

TheDirectorsarecommittedtoachievecompliancewiththe2003CombinedCodeonCorporateGovernancewhichsetsoutprinciplesofgoodgovernanceandacodeofbestpracticeandwhichwasappendedtothelistingrulesoftheIrishStockExchange.TheDirectorshavedevelopedacodeofpracticewhichdealswithamongothermatters,issuesofcorporategovernance.ThiscodeofpracticeisdesignedtoensurethatthemainprinciplesandsupportingprinciplesofgovernancesetoutinSection1ofthe2003CombinedCodeareappliedintheGroup.

The Board and DirectorsTheBoardiscomprisedoftwoexecutiveandtwoNon-executiveDirectors.TheBoardhasnominatedN.O.DowlingastheseniorindependentNon-executiveDirector.BothNon-executiveDirectorsareconsideredindependent.TheBoardmeetsregularly,inaccordancewithapre-determinedscheduleofmeetingsandalsomeetsonotheroccasionsasnecessary.

Directors,otherthantheChairmanandChiefExecutive,aresubjecttoretirementbyrotationeverythreeyearsattheCompany’sAnnualGeneralMeeting.ProceduresareinplaceforDirectorsinfurtheranceoftheirdutiestoreceiveappropriatetrainingandtotakeindependentprofessionaladviceifnecessary,atthecompany’sexpense.AllDirectorshaveaccesstotheadviceandservicesoftheCompanySecretary,whoisresponsibleforensuringthatBoardproceduresarefollowed.Non-executiveDirectorsareappointedforspecifictermsthroughaformalselectionprocess.

TheBoardhasaformalscheduleofmattersspecificallyreservedtoitfordecision.MattersreservedfordecisionbytheBoardincludeallsignificantcommercial,tradingandstrategicmatters,approvalofcapitalandrevenuebudgets,approvalofthefinancialstatements,membershipoftheBoardandBoardCommittees,acquisitionsanddisposals,capitalexpenditure,riskmanagementandtreasurypolicies.

AllDirectorsreceivefullboardpapersinsufficienttimeinadvanceofboardmeetingsandanyfurtherbackuppapersandinformationareavailabletoDirectorsonrequest.TheChairmanofeachCommitteeoftheBoardisavailabletogiveareportontheCommittees’proceedingsatboardmeetingsifrequired.AllDirectorsreceivetheGroup’smonthlyfinancialstatementsandcomparisonstobudgets.ManagementaccountsarepresentedtotheBoardonaregularbasis.

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Board CommitteesTheBoardhasestablishedanumberofCommitteeswhichoperatewithindefinedtermsofreference.ThetermsofreferenceoftheBoardCommitteesareavailableonrequestfromtheCompanySecretary.

MeetingsTherewere7meetingsoftheBoardduringtheyear.TheChairmaninconjunctionwiththeCompanySecretarysetstheagendaforeachmeeting.MeetingsareheldonsiteatourpremisesinCarlowandatotherdesignatedvenuesduringtheyear.

DetailsofDirectors’attendanceatboardandcommitteemeetingsaresetoutonpage17.

Performance appraisalTheNon-executiveDirectorsannuallyconductareviewoftheperformanceoftheBoardanditsCommittees.TheChairmanappraisestheperformanceofDirectorsandSecretarythroughindividualdiscussions.

Terms of appointment of Non-executive DirectorsThestandardtermsofletterforappointmentofNon-executiveDirectorsisavailableonrequestfromtheCompanySecretary.

Election and appointment of DirectorsElectionofDirectorsisinaccordancewiththeCompany’sArticlesofAssociationandiscarriedoutattheAnnualGeneralMeeting.

ChairmanMr.N.O.DowlinghasbeenChairmanoftheGroupsince1991,andisresponsiblefortheefficientandeffectiveworkingoftheBoard.InthisheensuresthatallBoardagendascovermajorstrategicissuesconcerningtheGroupandalsothattheBoardevaluatesandapprovesmanagementplansfortheGroup.Mr.DowlingholdsanumberofotherdirectorshipsexternaltotheGroup.TheBoardconsidersthatthisdoesnotinterferewithhisdutiesasChairman.

TheBoardhasdelegatedauthoritytothefollowingCommitteesonanumberofspecificmattersasdetailedbelow:

Audit Committee TheAuditCommitteeconsistsoftheChairman,theNon-executiveDirectorandtheCompanySecretary.TheAuditCommitteemet4timesduringtheyear.TheChairmanandCompanySecretaryattendattheregularauditmeetingswhiletheexternalauditorattendsasrequired.

TheAuditCommitteereviewstheservicesprovidedbytheexternalauditor,inrespectofaudit,auditrelatedandnonauditservices.Auditrelatedservicesareservicescarriedoutbytheexternalauditorbyvirtueoftheirroleasexternalauditorandincludeassurancerelatedworkandaccountingadvice.Thenon-auditservicesprovidedprincipallyrelatedtotaxadviceandassistancewithcompanysecretarialmatters.Inlinewithbestpracticetheexternalauditordoesnotprovideservicessuchasfinancialinformationsystemdesignandvaluationworkwhichcouldbeconsideredtobeinconsistentwiththeauditrole.

Main functions of the Committee are:·ReviewingtheGroup’sfinancialstatementsandmonitoringfinancialreportingissues.·ReviewingtheGroup’sinternalcontrolsystems.·Advisingastotheappointmentofexternalauditor.

Remuneration CommitteeThisCommitteeiscomprisedoftheChairmanandtheChiefExecutive,howeverperiodicallytheResearchandDevelopmentDirectormaybeaskedtoattend.TheCommitteemet3timesduringtheyear.

The Committee’s main functions are :·DeterminestheGroup’spolicyonexecutiveandNon-executiveDirectorspay.·DeterminestheremunerationofexecutiveandNon-executiveDirectors.·Monitorsthelevelandstructureofremunerationforseniormanagement.·Reviewsandapprovesthedesignofallincentiveshareplans.·TheCommitteealsoreviewsandapprovesthereportonDirectors‘remunerationassetoutinnote5,onpage32ofthisreport.

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RemunerationCommitteecont’d.

TheGrouphasinplaceprocedureswhichareconsistentwithSectionAoftheIrishStockExchange'sBestPracticeProvisionsonDirectors'Remuneration,savethattheChiefExecutiveisamemberoftheRemunerationCommittee,andtheseprocedureshaveoperatedthroughouttheyear.InpreparingitsRemunerationCommitteereport,theBoardhasfollowedtheprovisionsoftheCombinedCode.

TheexecutiveDirectorsdonotholdanyexternaldirectorships.

Noshareoptionsweregrantedduringtheyearended31March2007.Performancerelatedbonuseshavenotbeenpaidinthepast.Considerationwillbegiventotheseattheappropriatetime.

Finance CommitteeTheFinanceCommitteeconsistsoftheChairman,ChiefExecutiveandtheCompanySecretary.ThisCommitteemet3timesduringtheyear.

TheFinanceCommitteehasbeenappointedbytheBoardtoadviseitonmattersrelatingtothefollowing:·FinancialrequirementsoftheGroup.·Fundingarrangementswithbanksandlendinginstitutions.

Nomination CommitteeThisCommitteesitsaspartofthefullBoardandassistswithadvicethatensuresthatthestructuresofboththeBoarditselfandthevariousCommitteesareappropriatetotheneedsoftheGroup.

Main functions are:·AssessmentofBoardrequirementsintermsofskills,experience,anddiversityneeded.·Processofidentificationforsuitablecandidates.

Relations with shareholdersTheCompanyhasregulardialoguewithinstitutionalshareholders,andencouragescommunicationwithprivateshareholders,welcomingtheirparticipationatgeneralmeetings.AllDirectorsaremadeawareofshareholderviewsthroughtheChairman,astheyarise.

AllBoardmembersattendtheAnnualGeneralMeetingandareavailabletoanswerquestions.SeparateresolutionsareproposedonsubstantiallydifferentissuesandtheagendaofbusinesstobeconductedattheAnnualGeneralMeetingincludesaresolutiontoreceiveandconsidertheannualreportandfinancialstatements.

TheDirectorscomplywiththeCombinedCodeasitrelatestothedisclosureofproxyvotes,theseparationofresolutionsandtheattendanceofDirectorsattheAnnualGeneralMeeting.TheDirectorsintendtocomplywiththeProvisionsoftheCodeconcerningthegivingoftwentyonedaysnoticeoftheAnnualGeneralMeeting.

Internal controlTheBoardofDirectorshasoverallresponsibilityfortheGroup’ssystemofinternalfinancialcontrolandforreviewingitseffectiveness.However,suchasystemisdesignedtomanageratherthaneliminatetheriskoffailuretoachievebusinessobjectivesandcanprovideonlyreasonable,butnotabsolute,assuranceagainstmaterialmis-statementorloss.

The2003CombinedCodehasarequirementthatDirectorsannuallyreviewtheeffectivenessoftheGroup’ssystemofinternalcontrols.Thisrequiresareviewofthesystemofinternalfinancialcontrolstocoverallcontrolsincludingfinancial,operational,complianceandriskmanagement.

Formalguidancefortheimplementationoftherequiremententitled“InternalControl:GuidanceforDirectorsontheCombinedCode”(theTurnbullGuidance)waspublishedinSeptember1999.

TheGroupachievedfullcompliancewiththeTurnbullGuidancethroughouttheyearended31March2007.

TheDirectorshavereviewedtheeffectivenessoftheGroup’ssystemofinternalcontrol.Thereisanongoingprocessforidentifying,evaluatingandmanagingthesignificantrisksfacedbytheGroupthathasbeeninplacefortheyearunderreviewanduptothedateofthesefinancialstatements.ThisprocessisregularlyreviewedbytheBoardin

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accordancewiththeTurnbullGuidance.ThekeyinternalcontrolproceduresintheGroupincludethefollowing:• anorganisationalstructurewithformallydefinedlinesofresponsibilityanddelegationofauthority.TheBoard

hasascheduleofmattersreferredtoitfordecision.• acomprehensivebudgetingsystem,withannualfinancialbudgetswhichareapprovedbytheBoard.• actualperformancesaremeasuredagainstbudgetonaquarterlybasis.• theBoardconductsregularassessmentsofkeybusinessrisks,includingresearchanddevelopmentandthe

productionofnewproducts.• theBoardoverseesmarketinginitiativesandsetsandmonitorssalestargets.• thereisongoingreviewofproductioncapabilities.• anextensivesystemofqualitycontrolisinplacetoensurecontinuedhighproductstandards.• thereareclearlydefinedguidelinesforinvestmentinplantandequipmentandappropriatelevelsof

authorisationforalltransactions.• theAuditCommitteereviewstheinterimandannualfinancialstatementsandthenatureandextentofexternal

audit.• theAuditCommitteealsoreviews,onbehalfoftheBoard,reportsfrommanagementandtheexternalauditor,

dealingwithinternalfinancialcontrolmatters.

GiventhesizeoftheGroup,aninternalauditfunctionhasnotbeensetup.

ServicecontractsTheCompanyandGrouphaveenteredintoservicecontractswiththeexecutiveDirectors.Eachoftheseservicecontracts,whichexistforthreeyearsto31December2008,maybeterminatedbytheGroupbygivingsixmonths'writtennotice.Provisionsincludepredeterminedcompensationpaymentsonterminationofoneyear’ssalary.

TheRemunerationCommitteeissatisfiedthatthetermsofthoseservicecontractscontinuetobeappropriateandnecessarytoretaintheservicesoftheexecutiveDirectors.

Directors'emolumentsandinterestsDetailsofDirectors'emoluments,includingpensioncontributionstothedefinedcontributionscheme,aresetoutonpage32,anddetailsoftheinterestsofDirectorsinthesharecapitaloftheGroupandoftheirholdingsofshareoptionsandinterestsincontractsaresetoutonpage12.

GoingconcernAftermakingenquiries,theDirectorshaveareasonableexpectationthattheGrouphasadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.Forthisreason,theycontinuetoadoptthegoingconcernbasisinpreparingthefinancialstatements.

PrincipalrisksanduncertaintiesTheDirectorsconsiderthattheprincipalrisksanduncertaintiesfacedbytheCompanyanditssubsidiariesareinthefollowingcategories:

Economic risk• Theriskofincreasedinterestratesandorinflationhavinganadverseimpactonservedmarkets.• Theriskofunrealisticincreasesinwagesorinfrastructuralcostimpactingadverselyoncompetitivenessofthe

Groupanditsprincipalcustomers.• Theriskofadverseexchangemovements.

Theserisksaremanagedbyinnovativeproductsourcingandstrictcontroloncosts.

Competition riskTheDirectorsoftheCompanyanditssubsidiariesmanagecompetitionriskthroughcloseattentiontocustomerservicelevelsandproductinnovation.

Financial riskEachofthecompanieswithintheGrouphasbudgetaryandfinancialreportingprocedures,supportedbyappropriatekeyperformanceindicators,tomanagecredit,liquidityandotherfinancialrisk.AfinancialriskmanagementobjectiveoftheCompanyistoprotecttheGroupfromsignificantcurrencyfluctuations.TheCompanypolicyistonegotiatesettlementtermswithsignificantsuppliersinlocalcurrencywherepossible.Intheeventthat

17


theGroupisexposedtocurrencytransactionstheGrouptendstoenterintoforwardcontracts.StatementofcomplianceTheDirectorsfullyadoptedtheprovisionsoftheCombinedCode,andhavecompliedwiththeCodethroughouttheyearended31March2007otherthaninrelationtothefollowingmatters:

• giventheconstraintsimposedbythestageofdevelopmentoftheGroup,andthelimitednumberofNon-executiveDirectors,theAudit,Remuneration,NominationandFinanceCommitteesarenotcomprisedexclusivelyofnonexecutiveDirectors.

• TheBoardconsiderstheNon-executiveChairmantobeindependent,howeverheparticipatesintheGrouppensionschemeanduntil1991hewasChiefExecutiveoftheGroup.

AttendanceatBoardandCommitteemeetingsduringthefinancialyearended31March2007

AccountingrecordsTheDirectorsbelievethattheyhavecompliedwithSection202oftheCompaniesAct,1990withregardtobooksofaccountbyemployingfinancialpersonnelwithappropriateexpertiseandbyprovidingadequateresourcestothefinancialfunction.ThebooksofaccountoftheCompanyaremaintainedattheregisteredofficeoftheCompanyatIndustrialEstate,O’BrienRoad,Carlow.

AuditorInaccordancewithSection160(2)oftheCompaniesAct,1963,theauditor,KPMG,CharteredAccountants,willcontinueinoffice.

OnbehalfoftheBoard

N.O.Dowling A.P.OglesbyDirector Director

20September2007

Board Audit Finance Remuneration

Director: A B A B A B A B

N.O.Dowling 7 7 4 4 3 3 3 3

A.P.Oglesby 7 7 - - 3 3 3 3

J.P.Oglesby 7 - - - 3 - 3 -

T.P.Byrne 7 7 4 3 - - - -

M.N.Boran 7 7 4 4 3 3 - -(Secretary)Column A - indicates the number of meetings held during the period the Director was a member of the Board and/or CommitteeColumn B - indicates the number of meetings attended during the period the Director was a member of the Board and/or Committee

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IndependentAuditor’sreporttotheMembersofOglesby&ButlerGroupplc

WehaveauditedtheGroupandCompanyfinancialstatements(the“financialstatements”)ofOglesby&ButlerGroupplcfortheyearended31March2007whichcompriseoftheGroupIncomeStatement,theGroupandCompanyBalanceSheets,theGroupandCompanyCashFlowStatements,theGroupandCompanyStatementsofChangesinEquityandtherelatednotesonpage31to41.Thesefinancialstatementshavebeenpreparedundertheaccountingpoliciessetouttherein.

ThisreportismadesolelytotheCompany’smembers,asabody,inaccordancewithsection193oftheCompaniesAct1990.OurauditworkhasbeenundertakensothatwemightstatetotheCompany’smembersthosematterswearerequiredtostatetotheminanauditor’sreportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthantheCompanyandtheCompany’smembersasabody,forourauditwork,forthisreport,orfortheopinionswehaveformed.

RespectiveresponsibilitiesofdirectorsandauditorThedirectors’responsibilitiesforpreparingtheAnnualReportandthefinancialstatementsinaccordancewithapplicablelawandInternationalFinancialReportingStandards(IFRSs)asadoptedbytheEUaresetoutintheStatementofDirectors’ResponsibilitiesonPage18.

OurresponsibilityistoauditthefinancialstatementsinaccordancewithrelevantlegalandregulatoryrequirementsandInternationalStandardsonAuditing(UKandIreland).

WereporttoyououropinionastowhetherthefinancialstatementsgiveatrueandfairviewinaccordancewithIFRSsasadoptedbytheEUand,inthecaseoftheCompanyasappliedinaccordancewiththeprovisionsoftheCompaniesActs1963to2006,andhavebeenproperlypreparedinaccordancewiththeCompaniesActs1963to2006,andArticle4oftheIASRegulation.Wealsoreporttoyououropinionasto;whetherproperbooksofaccounthavebeenkeptbytheCompany;whetheratthebalancesheetdate,thereexistsafinancialsituationrequiringtheconveningofanextraordinarygeneralmeetingoftheCompany;andwhethertheinformationgivenintheDirectors’Reportisconsistentwiththefinancialstatements.Inaddition,westatewhetherwehaveobtainedalltheinformationandexplanationsnecessaryforthepurposesofouraudit,andwhethertheCompanybalancesheetisinagreementwiththebooksofaccount.

Wealsoreporttoyouif,inouropinion,anyinformationspecifiedbylaw,ortheListingRulesoftheIrishStockExchangeregardingDirectors’remunerationandDirectors’transactionsisnotdisclosedand,wherepracticable,includesuchinformationinourreport.

WereviewwhethertheCorporateGovernanceStatementreflectstheCompany’scompliancewiththenineprovisionsofthe2003CombinedCodespecifiedforourreviewbytheListingRulesoftheIrishStockExchange,andwereportifitdoesnot.Wearenotrequiredtoconsiderwhethertheboard’sstatementsoninternalcontrolcoverallrisksandcontrols,orformanopinionontheeffectivenessoftheGroup’scorporategovernanceproceduresoritsriskandcontrolprocedures.

WereadtheotherinformationcontainedintheAnnualReportandconsiderwhetheritisconsistentwiththeauditedfinancialstatements.TheotherinformationcomprisesonlytheChairman’sStatementandtheReviewofOperations.Weconsidertheimplicationsforourreportifwebecomeawareofanyapparentmisstatementsormaterialinconsistencieswiththefinancialstatements.Ourresponsibilitiesdonotextendtoanyotherinformation.

BasisofauditopinionWeconductedourauditinaccordancewithInternationalStandardsonAuditing(UKandIreland)issuedbytheAuditingPracticesBoard.Anauditincludesexamination,onatestbasis,ofevidencerelevanttotheamountsanddisclosuresinthefinancialstatements.ItalsoincludesanassessmentofthesignificantestimatesandjudgementsmadebytheDirectorsinthepreparationofthefinancialstatements,andofwhethertheaccountingpoliciesareappropriatetotheGroup’sandCompany’scircumstances,consistentlyappliedandadequatelydisclosed.

Weplannedandperformedourauditsoastoobtainalltheinformationandexplanationswhichweconsiderednecessaryinordertoprovideuswithsufficientevidencetogivereasonableassurancethatthefinancialstatementsarefreefrommaterialmisstatement,whethercausedbyfraudorotherirregularityorerror.Informingouropinionwealsoevaluatedtheoveralladequacyofthepresentationofinformationinthefinancialstatements.

StatementofDirectors’ResponsibilitiesinrespectoftheAnnualReportandtheFinancialStatements

TheDirectorsareresponsibleforpreparingtheAnnualReportandtheGroupandCompanyfinancialstatements,inaccordancewithapplicablelawandregulations.

CompanylawrequirestheDirectorstoprepareGroupandCompanyfinancialstatementsforeachfinancialyear.UnderthatlawtheDirectorsarerequiredtopreparetheGroupfinancialstatementsinaccordancewithInternationalFinancialReportingStandards(IFRS)asadoptedbytheEUandhaveelectedtopreparetheCompanyfinancialstatementsinaccordancewithIFRSasadoptedbytheEUandasappliedinaccordancewiththeCompaniesActs1963to2006.

TheGroupfinancialstatementsarerequiredbylawandIFRSsasadoptedbytheEUtopresentfairlythefinancialpositionandperformanceoftheGroup,andtheCompanyfinancialstatementsarerequiredbyIFRS'sasadoptedbytheEUandasappliedbytheCompaniesActs1963to2006tofairlypresentthefinancialpositionoftheCompany.TheCompaniesActs1963to2006provideinrelationtosuchfinancialstatementsthatreferencesintherelevantpartofthoseActtofinancialstatementsgivingatrueandfairviewarereferencestotheirachievingafairpresentation.

InpreparingeachoftheGroupandCompanyfinancialstatements,theDirectorsarerequiredto:• selectsuitableaccountingpoliciesandthenapplythemconsistently;• makejudgementsandestimatesthatarereasonableandprudent;and• preparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethattheGroup

andtheCompanywillcontinueinbusiness.

TheDirectorsareresponsibleforkeepingproperbooksofaccountthatdisclosewithreasonableaccuracyatanytimethefinancialpositionoftheCompanyandenablethemtoensurethatitsfinancialstatementscomplywiththeCompaniesActs1963to2006.TheyarealsoresponsiblefortakingsuchstepsasarereasonablyopentothemtosafeguardtheassetsoftheGroupandtheCompanyandtopreventanddetectfraudandotherirregularities.

UnderIrishcompanylawandtherequirementsoftheListingRulesissuedbytheIrishStockExchange,thedirectorsarealsoresponsibleforpreparingaDirectors’ReportandreportsrelatingtoDirectors’remunerationandcorporategovernancethatcomplywiththatlawandthoseRules.

OnbehalfoftheBoard


20September2007

19

IndependentAuditor’sreporttotheMembersofOglesby&ButlerGroupplc

WehaveauditedtheGroupandCompanyfinancialstatements(the“financialstatements”)ofOglesby&ButlerGroupplcfortheyearended31March2007whichcompriseoftheGroupIncomeStatement,theGroupandCompanyBalanceSheets,theGroupandCompanyCashFlowStatements,theGroupandCompanyStatementsofChangesinEquityandtherelatednotesonpage31to41.Thesefinancialstatementshavebeenpreparedundertheaccountingpoliciessetouttherein.

ThisreportismadesolelytotheCompany’smembers,asabody,inaccordancewithsection193oftheCompaniesAct1990.OurauditworkhasbeenundertakensothatwemightstatetotheCompany’smembersthosematterswearerequiredtostatetotheminanauditor’sreportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthantheCompanyandtheCompany’smembersasabody,forourauditwork,forthisreport,orfortheopinionswehaveformed.

RespectiveresponsibilitiesofdirectorsandauditorThedirectors’responsibilitiesforpreparingtheAnnualReportandthefinancialstatementsinaccordancewithapplicablelawandInternationalFinancialReportingStandards(IFRSs)asadoptedbytheEUaresetoutintheStatementofDirectors’ResponsibilitiesonPage18.

OurresponsibilityistoauditthefinancialstatementsinaccordancewithrelevantlegalandregulatoryrequirementsandInternationalStandardsonAuditing(UKandIreland).

WereporttoyououropinionastowhetherthefinancialstatementsgiveatrueandfairviewinaccordancewithIFRSsasadoptedbytheEUand,inthecaseoftheCompanyasappliedinaccordancewiththeprovisionsoftheCompaniesActs1963to2006,andhavebeenproperlypreparedinaccordancewiththeCompaniesActs1963to2006,andArticle4oftheIASRegulation.Wealsoreporttoyououropinionasto;whetherproperbooksofaccounthavebeenkeptbytheCompany;whetheratthebalancesheetdate,thereexistsafinancialsituationrequiringtheconveningofanextraordinarygeneralmeetingoftheCompany;andwhethertheinformationgivenintheDirectors’Reportisconsistentwiththefinancialstatements.Inaddition,westatewhetherwehaveobtainedalltheinformationandexplanationsnecessaryforthepurposesofouraudit,andwhethertheCompanybalancesheetisinagreementwiththebooksofaccount.

Wealsoreporttoyouif,inouropinion,anyinformationspecifiedbylaw,ortheListingRulesoftheIrishStockExchangeregardingDirectors’remunerationandDirectors’transactionsisnotdisclosedand,wherepracticable,includesuchinformationinourreport.

WereviewwhethertheCorporateGovernanceStatementreflectstheCompany’scompliancewiththenineprovisionsofthe2003CombinedCodespecifiedforourreviewbytheListingRulesoftheIrishStockExchange,andwereportifitdoesnot.Wearenotrequiredtoconsiderwhethertheboard’sstatementsoninternalcontrolcoverallrisksandcontrols,orformanopinionontheeffectivenessoftheGroup’scorporategovernanceproceduresoritsriskandcontrolprocedures.

WereadtheotherinformationcontainedintheAnnualReportandconsiderwhetheritisconsistentwiththeauditedfinancialstatements.TheotherinformationcomprisesonlytheChairman’sStatementandtheReviewofOperations.Weconsidertheimplicationsforourreportifwebecomeawareofanyapparentmisstatementsormaterialinconsistencieswiththefinancialstatements.Ourresponsibilitiesdonotextendtoanyotherinformation.

BasisofauditopinionWeconductedourauditinaccordancewithInternationalStandardsonAuditing(UKandIreland)issuedbytheAuditingPracticesBoard.Anauditincludesexamination,onatestbasis,ofevidencerelevanttotheamountsanddisclosuresinthefinancialstatements.ItalsoincludesanassessmentofthesignificantestimatesandjudgementsmadebytheDirectorsinthepreparationofthefinancialstatements,andofwhethertheaccountingpoliciesareappropriatetotheGroup’sandCompany’scircumstances,consistentlyappliedandadequatelydisclosed.

Weplannedandperformedourauditsoastoobtainalltheinformationandexplanationswhichweconsiderednecessaryinordertoprovideuswithsufficientevidencetogivereasonableassurancethatthefinancialstatementsarefreefrommaterialmisstatement,whethercausedbyfraudorotherirregularityorerror.Informingouropinionwealsoevaluatedtheoveralladequacyofthepresentationofinformationinthefinancialstatements.

20

Statementofaccountingpolicies

Oglesby&ButlerGroupisaCompanydomiciledinIreland.TheaddressoftheCompany’sregisteredofficeisIndustrialEstate,O’BrienRoad,Carlow.TheGroupfinancialstatementsfortheyearended31March2007consolidatetheindividualfinancialstatementsoftheCompanyanditssubsidiaries(togetherreferredtoas“theGroup”).

TheCompanyandGroupfinancialstatementsoftheCompanywereauthorisedforissuebytheDirectorson20September2007.

Theaccountingpoliciesappliedinthepreparationofthefinancialstatementsfortheyearended31March2007aresetoutbelow.Thesehavebeenappliedconsistently.

StatementofComplianceAsrequiredbyEuropeanUnion(EU)lawfrom1January2005,theGroup’sfinancialstatementshavebeenpreparedinaccordancewithInternationalFinancialReportingStandards(IFRSs)andtheirinterpretationsissuedbytheInternationalAccountingStandardsBoard(IASB)asadoptedbytheEU.TheindividualfinancialstatementsoftheCompany(‘Companyfinancialstatements’)havebeenpreparedinaccordancewithIFRSsasadoptedbytheEUandasappliedinaccordancewiththeCompaniesActs1963to2006whichpermitsacompany,thatpublishesitsCompanyandGroupfinancialstatementstogether,totakeadvantageoftheexemptioninSection148(8)oftheCompaniesAct1963frompresentingtoitsmembersitscompanyincomestatementandrelatednotesthatformpartoftheapprovedcompanyfinancialstatements.

TheIFRSsadoptedbytheEUappliedbytheCompanyandtheGroupinthepreparationofthesefinancialstatementsarethosethatwereeffectiveat31March2007.

Basisofpreparation

(a) Basis of measurementThefinancialstatementshavebeenpreparedunderthehistoricalcostconvention,exceptinthecaseofderivativeswhicharecarriedatfairvalue.

(b) Use of estimates and judgementsThepreparationoffinancialstatementsrequiresmanagementtomakejudgements,estimatesandassumptionsthataffecttheapplicationofaccountingpoliciesandthereportedamountsofassets,liabilities,incomeandexpenses.Actualresultsmaydifferfromtheseestimates.

Estimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisedandinanyfutureperiodsaffected.

CurrencyThefinancialstatementsarepreparedineuro.

BasisofConsolidationSubsidiariesareentitiescontrolledbytheGroup.ControlexistswhentheGrouphasthepowertogovernthefinancialandoperatingpoliciesofanentitysoastoobtainbenefitsfromitsactivities.TheGroupfinancialstatementsincludethefinancialstatementsoftheholdingcompanyandallitsGroupundertakingsmadeuptotheendofthefinancialyear.TheGrouptodatehasnotenteredintoanybusinesscombinations.Intragroupbalancesandanyunrealisedgainsandlossesorincomeandexpensesarisingfromintragrouptransactions,areeliminatedinpreparingtheconsolidatedfinancialstatements.

RevenueRevenuecomprisesthefairvaluefromthesaleofgoods(excludingvalueaddedtax)andisrecognisedintheincomestatementwhenthesignificantrisksandrewardsofownershiphavebeentransferredtothebuyer.Thisgenerallyoccursondelivery/shipmentofgoodstothebuyer.

GovernmentgrantsAgovernmentgrantrelatingtoanon-currentassetisrecognisedinthebalancesheetinitiallyasdeferredincomewhenthereisreasonableassurancethatitwillbereceivedandthattheGroupwillcomplywiththeconditionsattachingtoit.GrantsthatcompensatetheGroupforexpensesincurredarerecognisedasrevenueintheincomestatementonasystematicbasisinthesameperiodinwhichtheexpensesareincurred.GrantsthatcompensatetheGroupforthecostoftheassetarerecognisedintheincomestatementasotheroperatingincomeonasystematicbasisovertheusefullifeoftheasset.

IndependentAuditor’sreporttotheMembersofOglesby&ButlerGroupplc(cont’d.)

OpinionInouropinion:

• theGroupfinancialstatementsgiveatrueandfairview,inaccordancewithIFRSsasadoptedbytheEU,ofthestateoftheGroup’saffairsasat31March2007andofitsprofitfortheyearthenended;

• TheCompanyfinancialstatementsgiveatrueandfairview,inaccordancewithIFRSsasadoptedbytheEUasappliedinaccordancewiththeprovisionsoftheCompaniesActs1963to2006,ofthestateoftheCompany’saffairsasat31March2007.

• thefinancialstatementshavebeenproperlypreparedinaccordancewiththeCompaniesActs1963to2006andArticle4oftheIASRegulation.

Wehaveobtainedalltheinformationandexplanationswhichweconsidernecessaryforthepurposesofouraudit.InouropinionproperbooksofaccounthavebeenkeptbytheCompany.TheCompanybalancesheetisinagreementwiththebooksofaccount.

InouropiniontheinformationgivenintheDirectors’Reportisconsistentwiththefinancialstatements.

Thenetassetsofthecompany,asstatedintheCompanybalancesheetaremorethanhalfoftheamountofitscalled-upsharecapitaland,inouropinion,onthatbasistheredidnotexistat31March2007afinancialsituationwhichunderSection40(1)oftheCompanies(Amendment)Act1983wouldrequiretheconveningofanextraordinarygeneralmeetingoftheCompany.

CharteredAccountantsRegisteredAuditor1StokesPlaceSt.Stephen’sGreenDublin2

20September2007

21

Statementofaccountingpolicies

Oglesby&ButlerGroupisaCompanydomiciledinIreland.TheaddressoftheCompany’sregisteredofficeisIndustrialEstate,O’BrienRoad,Carlow.TheGroupfinancialstatementsfortheyearended31March2007consolidatetheindividualfinancialstatementsoftheCompanyanditssubsidiaries(togetherreferredtoas“theGroup”).

TheCompanyandGroupfinancialstatementsoftheCompanywereauthorisedforissuebytheDirectorson20September2007.

Theaccountingpoliciesappliedinthepreparationofthefinancialstatementsfortheyearended31March2007aresetoutbelow.Thesehavebeenappliedconsistently.

StatementofComplianceAsrequiredbyEuropeanUnion(EU)lawfrom1January2005,theGroup’sfinancialstatementshavebeenpreparedinaccordancewithInternationalFinancialReportingStandards(IFRSs)andtheirinterpretationsissuedbytheInternationalAccountingStandardsBoard(IASB)asadoptedbytheEU.TheindividualfinancialstatementsoftheCompany(‘Companyfinancialstatements’)havebeenpreparedinaccordancewithIFRSsasadoptedbytheEUandasappliedinaccordancewiththeCompaniesActs1963to2006whichpermitsacompany,thatpublishesitsCompanyandGroupfinancialstatementstogether,totakeadvantageoftheexemptioninSection148(8)oftheCompaniesAct1963frompresentingtoitsmembersitscompanyincomestatementandrelatednotesthatformpartoftheapprovedcompanyfinancialstatements.

TheIFRSsadoptedbytheEUappliedbytheCompanyandtheGroupinthepreparationofthesefinancialstatementsarethosethatwereeffectiveat31March2007.

Basisofpreparation

(a) Basis of measurementThefinancialstatementshavebeenpreparedunderthehistoricalcostconvention,exceptinthecaseofderivativeswhicharecarriedatfairvalue.

(b) Use of estimates and judgementsThepreparationoffinancialstatementsrequiresmanagementtomakejudgements,estimatesandassumptionsthataffecttheapplicationofaccountingpoliciesandthereportedamountsofassets,liabilities,incomeandexpenses.Actualresultsmaydifferfromtheseestimates.

Estimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisedandinanyfutureperiodsaffected.

CurrencyThefinancialstatementsarepreparedineuro.

BasisofConsolidationSubsidiariesareentitiescontrolledbytheGroup.ControlexistswhentheGrouphasthepowertogovernthefinancialandoperatingpoliciesofanentitysoastoobtainbenefitsfromitsactivities.TheGroupfinancialstatementsincludethefinancialstatementsoftheholdingcompanyandallitsGroupundertakingsmadeuptotheendofthefinancialyear.TheGrouptodatehasnotenteredintoanybusinesscombinations.Intragroupbalancesandanyunrealisedgainsandlossesorincomeandexpensesarisingfromintragrouptransactions,areeliminatedinpreparingtheconsolidatedfinancialstatements.

RevenueRevenuecomprisesthefairvaluefromthesaleofgoods(excludingvalueaddedtax)andisrecognisedintheincomestatementwhenthesignificantrisksandrewardsofownershiphavebeentransferredtothebuyer.Thisgenerallyoccursondelivery/shipmentofgoodstothebuyer.

GovernmentgrantsAgovernmentgrantrelatingtoanon-currentassetisrecognisedinthebalancesheetinitiallyasdeferredincomewhenthereisreasonableassurancethatitwillbereceivedandthattheGroupwillcomplywiththeconditionsattachingtoit.GrantsthatcompensatetheGroupforexpensesincurredarerecognisedasrevenueintheincomestatementonasystematicbasisinthesameperiodinwhichtheexpensesareincurred.GrantsthatcompensatetheGroupforthecostoftheassetarerecognisedintheincomestatementasotheroperatingincomeonasystematicbasisovertheusefullifeoftheasset.

22

Statementofaccountingpolicies(cont’d.)

Leases

Finance lease paymentsLeasesunderthetermsofwhichtheGroupassumessubstantiallyalltherisksandrewardsofownershipareclassifiedasfinanceleases.Theowner-occupiedpropertyacquiredbywayofafinanceleaseisstatedatanamountequaltothelowerofitsfairvalueandthepresentvalueoftheminimumleasepaymentsatinceptionofthelease,lessaccumulateddepreciationandimpairmentlosses.Minimumleasepaymentsareapportionedbetweenthefinancechargeandthereductionoftheoutstandingliability.Thefinancechargeisallocatedtoeachperiodduringtheleasetermsoastoproduceaconstantperiodicrateofinterestontheremainingbalanceoftheliability.

Operating lease paymentsPaymentsmadeunderoperatingleasesarerecognisedintheincomestatementonastraight-linebasisoverthetermofthelease.Leaseincentivespaidarerecognisedintheincomestatementasanintegralpartofthetotalleaseexpenseoverthetermofthelease.

Property,plantandequipmentItemsofproperty,plantandequipmentarestatedatcostordeemedcostlessaccumulateddepreciationandimpairmentlosses.OntransitiontoIFRSasadoptedbytheEU,freeholdlandandbuildingspreviouslycarriedatarevaluedamount,continuedtobecarriedatthatamountastheirdeemedcostatthatdate.Thecostofself-constructedassetsincludesthecostofmaterials,directlabour,theinitialestimate,whererelevant,ofthecostsofdismantlingandremovingitemsandrestoringthesiteonwhichtheyarelocated,andanappropriateproportionofproductionoverheads.

Depreciationiscalculatedtowrite-offthecostlessestimatedresidualvalueofproperty,plantandequipmentonthestraight-linebasisovertheirexpectedusefullives.Theremainingusefullivesoftheassetsarereviewedonaregularbasis.

Depreciationisprovidedonadditionswitheffectfromthefirstdayofthemonthfollowingcommissioningandondisposalsuptotheendofthemonthpriortoretirement,atthefollowingannualrates:

Land NotdepreciatedBuildings 2%Plantandmachinery 7-20%Fixturesandfittings 10-15%Motorvehicles 20%

InventoriesInventoriesarevalued,onthefirst-in,first-outbasis,atthelowerofcostandestimatednetrealisablevalue.Costincludesallexpenditurewhichhasbeenincurredinthenormalcourseofbusinessinbringingtheproductstotheirpresentlocationandcondition.Inthecaseofmanufacturedinventoriesandworkinprogress,costincludesanappropriateshareofoverheadsbasedonnormaloperatingcapacity.Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusiness(netoftradediscounts)ofinventoriesonhand,lessallfurthercoststocompletionandsellingexpenses.

ImpairmentThecarryingamountsoftheGroup’sassetsarereviewedateachbalancesheetdatetodeterminewhetherthereisanyindicationofimpairment.Ifanysuchindicationexists,theasset’srecoverableamountisestimatedandanimpairmentprovisionisrecordedintheincomestatement.

Foreigncurrencytranslation

Functional and presentation currencyItemsincludedinthefinancialstatementsofeachoftheGroup’sentitiesaremeasuredusingthecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperates(“thefunctionalcurrency”).TheGroupfinancialstatementsarepresentedineuro,whichistheCompany’sfunctionalandpresentationcurrency.

Transactions and balancesForeigncurrencytransactionsaretranslatedintothefunctionalcurrencyusingtheexchangeratesprevailingatthedatesofthetransactions.Foreignexchangegainsandlossesresultingfromthesettlementofsuchtransactionsandfromthetranslationatyear-endexchangeratesofmonetaryassetsandliabilitiesdenominatedinforeigncurrenciesarerecognisedintheincomestatement.

23


SegmentreportingAbusinesssegmentisagroupofassetsandoperationsengagedinprovidingproductsorservicesthataresubjecttorisksandreturnsthataredifferentfromthoseofotherbusinesssegments.Ageographicalsegmentisengagedinprovidingproductsorserviceswithinaparticulareconomicenvironmentthataresubjecttorisksandreturnsthataredifferentfromthoseofsegmentsoperatinginothereconomicenvironments.StemmingfromtheGroup’sinternalorganisationandmanagementstructureanditssystemofinternalfinancialreporting,segmentationbygeographicareaisregardedasbeingthepredominantsourceandnatureoftherisksandreturnsfacingthegroupandisthustheprimarysegment.Segmentationbybusinessisthereforethesecondarysegment.

SharecapitalIncrementalcostsdirectlyattributabletotheissueofordinarysharesandshareoptionsarerecognisedasareductionfromequity.

EarningspershareTheGrouppresentsbasicanddilutedearningspersharedataforitsordinaryshares,detailsofwhichcanbefoundinnote8.

TradeandotherreceivablesandpayablesTradeandotherreceivablesandpayablesareinitiallyrecordedatfairvalue,andthereafteratamortisedcost,whichapproximatestheirfairvaluegiventheshort-termnatureoftheseassetsandliabilities.AprovisionforimpairmentoftradereceivablesisestablishedwhenthereisobjectiveevidencethattheGroupwillnotbeabletocollectallamountsdueaccordingtotheoriginaltermofthereceivables.

FinanceincomeandexpenseFinanceincomeincludesinterestincomewhichisrecognisedintheincomestatementasitaccrues,usingtheeffectiveinterestratemethod.Financeexpensesincludeinterestexpenseonborrowingsandunwindingofdiscountonprovisions,andarerecognisedintheincomestatementusingtheeffectiveinterestratemethod.

InvestmentsinsubsidiariesInvestmentsinsubsidiariesarestatedatcostlessprovisionsforimpairment.

AdvertisingandpromotionalexpenditureAdvertisingandpromotionalexpenditureiswritten-offtotheincomestatementinfullinthefinancialyearinwhichthecostsareincurred.

ResearchanddevelopmentExpenditureonresearchactivities,undertakenwiththeprospectofgainingnewscientificortechnicalknowledgeandunderstanding,isrecognisedintheincomestatementasanexpenseasincurred.Expenditureondevelopmentactivities,wherebyresearchfindingsareappliedtoaplanordesignfortheproductionofneworsubstantiallyimprovedproductsorprocesses,iscapitalisediftheproductorprocessistechnicallyandcommerciallyfeasibleandtheGrouphassufficientresourcestocompletedevelopment.Theexpenditurecapitalisedincludesthecostofmaterials,directlabourandanappropriateproportionofoverheads.Otherdevelopmentexpenditureisrecognisedintheincomestatementasanexpenseincurred.Capitaliseddevelopmentexpenditureisstatedatcostlessaccumulatedamortisationandimpairmentlosses.

PatentsDirectcostsassociatedwithtakingoutpatentsarecapitalisedandareamortised,onthestraight-linebasis,overtheirexpectedusefullivesfromthedatethecostsareincurred.Provisionsforimpairmentaremadeasrequired.

PensionsThepensionobligationsoftheGrouparemetbypaymentstoadefinedcontributionpensionplan,theannualcontributionstowhicharedealtwithintheincomestatementinthefinancialyeartowhichtheyrelate.

IncometaxIncometaxexpensesontheprofitorlossfortheyearcomprisescurrentanddeferredtax.Taxationisrecognisedintheincomestatementexcepttotheextentthatitrelatestoitemsrecogniseddirectlyinequity,inwhichcasetherelatedtaxisrecognisedinequity.

Currenttaxistheexpectedtaxpayableonthetaxableincomefortheyear,usingtaxratesandlawsthathavebeenenactedorsubstantiallyenactedatthebalancesheetdate,andanyadjustmenttotaxpayableinrespectofpreviousyears.

24


Deferredtaxisprovidedusingthebalancesheetliabilitymethod,providingfortemporarydifferencesbetweenthecarryingamountsofassetsandliabilitiesforfinancialreportingpurposesandtheamountsusedfortaxationpurposes.Ifthedeferredtaxarisesfrominitialrecognitionofanassetorliabilityinatransactionotherthanabusinesscombinationthatatthetimeofthetransactiondoesnotaffectaccountingnortaxableprofitorloss,itisnotrecognised.

Deferredtaxisprovidedontemporarydifferencesarisingoninvestmentsinsubsidiaries,exceptwherethetimingofthereversalofthetemporarydifferenceiscontrolledbytheGroupanditisprobablethatthetemporarydifferencewillnotreverseintheforseeablefuture.Theamountofdeferredtaxprovidedisbasedontheexpectedmannerofrealisationorsettlementofthecarryingamountofassetsandliabilities,usingtaxratesenactedorsubstantivelyenactedatthebalancesheetdate.

Adeferredtaxassetisrecognisedonlytotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichtheassetcanbeutilised.Deferredtaxassetsarereducedtotheextentthatitisnolongerprobablethattherelatedtaxbenefitwillberealised.

DividendsDividendsarerecognisedasaliabilityintheperiodinwhichtheyaredeclared.

CashandcashequivalentsCashandcashequivalents,comprisecashbalancesandcalldeposits,includingbankdepositsoflessthanthreemonthsmaturity.BankoverdraftsthatarerepayableondemandandformanintegralpartoftheGroup’scashmanagementareincludedasacomponentofcashandcashequivalentsforthepurposeofthestatementofcashflows.

DerivativefinancialinstrumentsDerivativesareenteredintotoeconomicallyhedgerecognisedforeigncurrencymonetaryassetsorliabilitiesandarenotaccountedforunderhedgeaccountingbutratheranygainsorlossesarisingarerecognisedintheincomestatement.

NewstandardsandinterpretationsnotyetadoptedAnumberofnewstandards,amendmentstostandardsandinterpretationsarenotyeteffectivefortheyearended31March2007,andhavenotbeenappliedinpreparingtheseconsolidatedfinancialstatements.ThefollowingstandardsandinterpretationshavebeenendorsedbytheEU:• IFRS7,FinancialInstruments:DisclosuresandtheAmendmenttoIAS1PresentationofFinancialStaements:Capital

Disclosuresrequireextensivedisclosuresaboutthesignificanceoffinancialinstrumentsforanentity’sfinancialpositionandperformance,andqualitativeandquantitativedisclosuresonthenatureandextentofrisks.IFRS7andamendedIAS1,whichbecomemandatoryfortheGroupandCompany’s2008financialstatements,willrequireadditionaldisclosureswithrespecttofinancialinstrumentsandsharecapital.

• IFRIC7,ApplyingtheRestatementApproachunderIAS29FinancialReportinginHyperinflationaryEconomiesaddressestheapplicationofIAS29whenaneconomyfirstbecomeshyperinflationaryandinparticulartheaccountingfordeferredtax.IFRIC7,whichbecomesmandatoryfortheGroupandCompany’s2008financialstatements,isnotexpectedtohaveanyimpactonthefinancialstatements.

• IFRIC8,ScopeofIFRS2Share-basedPaymentsaddressestheaccountingforshare-basedpaymenttransactionsinwhichsomeorallofgoodsorservicesreceivedcannotbespecificallyidentified.IFRIC8willbecomemandatoryfortheGroup’sandCompany’s2008financialstatementsbutisnotexpectedtohaveanyimpactonthefinancialstatements.

• IFRIC9,ReassessmentofEmbeddedDerivatives,requiresthatareassessmentofwhetherembeddedderivativeshouldbeseparatedfromtheunderlyinghostcontractshouldbemadeonlywhentherearechangestothecontract.IFRIC9,whichbecomesmandatoryfortheGroup’sandCompany’s2008financialstatements,isnotexpectedtohaveanyimpactonthefinancialstatements.

• IFRIC10,InterimFinancialReportingandImpairment,prohibitsthereversalofanimpairmentlossrecognisedinapreviousinterimperiodinrespectofgoodwill,aninvestmentinanequityinstrumentorafinancialassetcarriedatcost.IFRIC10willbecomemandatoryfortheGroup’sandCompany’s2008financialstatements,andwillapplyprospectivelyfromthedatethattheGroupfirstappliedthemeasurementcriteriaofIAS36andIAS39respectively(i.e.,1April2005).Itisnotexpectedtohaveanyimpactonthefinancialstatements.

• IFRIC11,IFRS2-GroupandTreasuryShareTansactions,whichiseffectiveforannualperiodsbeginningonorafter1March2007,addresseshowshare-basedpaymentarrangementsthataffectmorethanonecompanyinagroupareaccountedforineachCompany’sfinancialstatementsandisnotexpectedtohaveanimpactonthefinancialstatements.

25

Groupincomestatementfortheyearended31March2007

Notes 2007 2006

Revenue 1 5,413,096 5,130,051

Operatingcosts (5,169,246) (5,282,621)

Operatingprofit/(loss)beforefinancecosts 243,850 (152,570)

Financeexpenses 3 (27,599) (49,048)

Profit/(loss)beforeincometax 216,251 (201,618)

Incometaxcredit 6 6,257 21,005

Profit/(loss)aftertaxfortheyear 22 222,508 (180,613)

Profit/(loss)attributabletoequityholdersofthegroup 222,508 (180,613)

Basicearnings/(loss)pershare 8 1.81c (1.47c)

Dilutedearnings/(loss)pershare 8 1.81c (1.47c)

OnbehalfoftheBoard


20September2007

26

Groupbalancesheetat31March2007

Notes 2007 2006

ASSETSNon-currentassets

Property,plantandequipment 11 3,576,735 3,870,130Intangibleassets 9 672,034 607,961

Totalnon-current 4,248,769 4,478,091

CurrentassetsInventories 12 975,805 1,104,525Tradeandotherreceivables 13 1,378,963 1,029,904Derivativesandotherfinancialinstruments 24 711 23,698Otherinvestments - 50,791Cashandcashequivalents 23 321,286 121,113

Totalcurrentassets 2,676,765 2,330,031

Totalassets 6,925,534 6,808,122

EquityCapitalandreservesattributabletothecompany’sequityholdersCalledupsharecapital 18 1,477,808 1,477,808Sharepremium 19 1,066,503 1,066,503Otherreserves 20 891,032 902,235Retainedearnings 22 2,289,680 2,055,969Totalequity 5,725,023 5,502,515 LIABILITIES Non-currentliabilitiesFinanceleaseobligations 15 86,848 166,398Deferredgovernmentgrants 16 136,707 140,821Deferredtaxliabilities 17 100,000 106,257Totalnon-currentliabilities 323,555 413,476

Currentliabilities Financeleaseobligations 15 81,550 88,786Tradeandotherpayables 14 795,406 803,345Totalcurrentliabilities 876,956 892,131Totalliabilities 1,200,511 1,305,607

Totalequityandliabilities 6,295,534 6,808,122

OnbehalfoftheBoard


27

Note 2007 2006

Cashflowsfromoperatingactivities

Profit/(loss)beforetaxation 216,251 (201,618)

Adjusting items:Amortisationofintangibleassets 24,322 19,224Depreciationofproperty,plantandequipment 402,057 418,763Amortisationofgovernmentgrants (4,114) (4,114)Financeexpenses 27,599 49,048

(Increase)/decreaseintradeandotherreceivables (349,059) 16,446

Decreaseininventories 128,720 26,668

Decreaseinothercurrentassets 22,987 741

(Decrease)/increaseintradeandotherpayables (7,939) 69,541

Totalcashflowfromoperatingactivities 460,824 394,699

Interestpaid (27,599) (25,308)

Netcashprovidedbyoperatingactivities 433,225 369,391Cashflowsfrominvestingactivities Purchaseofproperty,plantandequipment (108,662) (99,616)

Purchaseofintangibleassets (88,395) (82,853)Proceedsfrommaturityofinvestments 50,791 -

Netcashusedininvestingactivities (146,266) (182,469)

Cashflowsfromfinancingactivities Paymentoffinanceleaseliabilities (86,786) (97,580)

Netcashusedinfinancingactivities (86,786) (97,580)

Netincreaseincashandcashequivalents 23 200,173 89,342

Cashandcashequivalentsatbeginningofyear 23 121,113 31,771

Cashandcashequivalentsatendofyear 23 321,286 121,113

Groupcashflowstatementfortheyearended31March2007

28

Groupstatementofchangesinequityfortheyearended31March2007

Capital Share Capital Share Retained redemption Revaluation Total capital reserves premium earnings reserve reserve equity

Balanceat1April2005 1,477,808 170,415 1,066,503 2,225,379 50,903 692,120 5,683,128

Lossforthefinancialyear - - (180,613) - - (180,613)

Transfers - - - 11,203 - (11,203) -

Balanceat31March2006 1,477,808 170,415 1,066,503 2,055,969 50,903 680,917 5,502,515

Profitforthefinancialyear - - 222,508 - - 222,508

Transfers - - - 11,203 - (11,203) -

Balanceat31March2007 1,477,808 170,415 1,066,503 2,289,680 50,903 669,714 5,725,023

29

Note 2007 2006

Assets

Non-currentInvestmentinsubsidiary 10 1,327,261 1,327,261

Totalnon-currentassets 1,327,261 1,327,261

CurrentTradeandotherreceivables 13 3,145,416 3,145,416Otherinvestments - 50,791Cashandcashequivalents 50,791 -

Totalcurrentassets 3,196,207 3,196,207

Totalassets 4,523,468 4,523,468

EquityCalled-upsharecapital 18 1,477,808 1,477,808Sharepremium 19 1,066,503 1,066,503Otherreserves 21 136,788 136,788Retainedearnings 186,309 186,309

Totalequityattributabletoequityshareholdersofparent 2,867,408 2,867,408

LiabilitiesCurrentTradeandotherpayables 14 1,656,060 1,656,060

Totalliabilities 1,656,060 1,656,060

Totalequityandliabilities 4,523,468 4,523,468

OnbehalfoftheBoard


Companybalancesheetat31March2007

Notesformingpartofthefinancialstatements

1 Revenue 2007 2006

TheentirerevenueoftheGroupconsistsof manufactureandsaleofhandheldtoolsandaccessories 5,413,096 5,130,051

2 Segmentinformation Analysisofrevenue,allofwhichissourcedintheRepublicofIreland,bygeographicalareaofdestinationisas

follows:

2007 2006

Ireland 98,078 79,991 UnitedKingdom 993,760 819,936 RestofEurope 1,838,931 1,614,323 NorthAmerica 1,939,911 2,018,653 RestofWorld 542,416 597,148

5,413,096 5,130,051

AlloftheGroup'sprofitsareearned,andallofitsassetsaremaintained,andallcashisgeneratedintheRepublicofIreland.

3 Financeexpenses 2007 2006

Onbankoverdrafts 18,455 16,435 Onfinanceleases 9,144 8,873 Fairvalueofderivativemovements - 23,740

27,599 49,048

Allinterestisdealtwithintheincomestatement.Nointerestwascapitalisedduringtheyear.

30

Companycashflowstatementfortheyearended31March2007

2007 2006

CashflowsfrominvestingactivitiesProceedsfromthematuringofinvestments 50,791 -

Netcashfrominvestingactivities 50,791 -

Netincreaseincashandcashequivalents 50,791 -

Cashandcashequivalentsatbeginningofyear - -

Cashandcashequivalentsatendofyear 50,791 -

Companystatementofchangesinequityfortheyearended31March2007

Capital Share Capital Share Retained redemption Total capital reserves premium earnings reserve equity

Balanceat1April2005,31March2006and31March2007 1,477,808 85,885 1,066,503 186,309 50,903 2,867,408

31

Notesformingpartofthefinancialstatements

1 Revenue 2007 2006

TheentirerevenueoftheGroupconsistsof manufactureandsaleofhandheldtoolsandaccessories 5,413,096 5,130,051

2 Segmentinformation Analysisofrevenue,allofwhichissourcedintheRepublicofIreland,bygeographicalareaofdestinationisas

follows:

2007 2006

Ireland 98,078 79,991 UnitedKingdom 993,760 819,936 RestofEurope 1,838,931 1,614,323 NorthAmerica 1,939,911 2,018,653 RestofWorld 542,416 597,148

5,413,096 5,130,051

AlloftheGroup'sprofitsareearned,andallofitsassetsaremaintained,andallcashisgeneratedintheRepublicofIreland.

3 Financeexpenses 2007 2006

Onbankoverdrafts 18,455 16,435 Onfinanceleases 9,144 8,873 Fairvalueofderivativemovements - 23,740

27,599 49,048

Allinterestisdealtwithintheincomestatement.Nointerestwascapitalisedduringtheyear.

32

Notes(continued)

4 Employeesandremuneration

TheaveragenumberofpersonsemployedbytheGroup(includingexecutivedirectors)duringtheyear,analysedbycategory,wasasfollows:

2007 2006 Numbers Numbers

Administrationandmanagement 9 9 Sellinganddistribution 2 4 Production 60 63 Researchanddevelopment 2 2

73 78

Theaggregatepayrollcostsoftheseemployeeswereasfollows: 2007 2006

Wagesandsalaries 1,871,062 1,786,007 Socialwelfarecosts 179,593 175,476 Otherpensioncosts 72,312 76,384

2,122,967 2,037,867

5 Statutoryandotherinformation

ReportonDirectors'remuneration:

Executive directors Total Salaries Benefits Pension Fees inKind Contributions

2007 2006 2007 2006 2007 2006 2007 2006 2007 2006

A.P.Oglesby 175,963 168,798 162,560 155,289 13,403 13,509 - - - - J.P.Oglesby 190,792 174,243 144,306 123,943 9,566 13,380 36,920 36,920 - -

366,755 343,041 306,866 279,232 22,969 26,889 36,920 36,920 - -

Numberof executivedirectors 2 2

Non-executive directors N.O.Dowling 27,211 28,835 20,950 20,950 - 1,265 - - 6,261 6,620 T.P.Byrne 24,000 24,000 - - - - - - 24,000 24,000 51,211 52,835 20,950 20,950 - 1,265 - - 30,261 30,620

Numberof non-executivedirectors 2 2

33

Notes(continued)

5 Statutoryandotherinformation(cont’d)

Othercharges/(credits): 2007 2006

Rawmaterialsrecognisedasanexpense 1,219,081 1,113,247 Auditor’sremuneration: 52,605 51,600 Operatingleaserentals-equipment 8,826 12,627 Amortisationofintangibleassets 24,322 19,224 Depreciationofproperty,plantandequipment 402,057 418,763 Researchanddevelopmentexpenditure 164,841 208,638 Amortisationofgovernmentcapitalgrants (4,114) (4,114) Restructuringofcontinuingoperations - 259,261

6 Incometaxcredit Analysisofcreditinperiod 2007 2006

Current tax Corporationtaxonprofits/(losses)fortheyear - -

Total current tax: - -

Deferred tax: Originationandreversaloftemporarydifferences(note17) 6,257 21,005

Taxcreditonprofit/(loss) 6,257 21,005

Factorsaffectingtaxchargeforperiod

ThetaxassessedfortheyearisdifferentthanthestandardrateofcorporationtaxintheRepublicofIreland.Thedifferencesareexplainedbelow:

2007 2006

Profit/(loss)beforetax 216,251 (201,618)

Profit/(loss)multipliedby thestandardrateoftaxof12.5% 27,031 (25,202)

Effects of: Incometaxableatlower/higherrates (5,406) 5,040 Adjustmenttostandardrates (5,264) 5,674 Incomenottaxable (22,618) (6,517)

Totaltaxcreditforyear (6,257) (21,005)

TheeffectiverateofcorporationtaxhasbeenreducedduetotheprovisionsofSection234CTA1997,relatingto

taxexemptroyaltyincomeandbecausetheGroupavailsofmanufacturingreliefwhichisduetoexpirein2010.

7 Dividends 2007 2006

Dividendspaidinyear Nil Nil

34

11 Property,plantandequipment

2007 Freehold Plant Group land& equipment& buildings motorvehicles Total

Cost Atbeginningofyear 2,460,989 6,266,199 8,727,188 Additions - 108,662 108,662 Atendofyear 2,460,989 6,374,861 8,835,850

Depreciation Atbeginningofyear 259,028 4,598,030 4,857,058 Chargedduringyear 46,057 356,000 402,057

Atendofyear 305,085 4,954,030 5,259,115

Netbookvalue At31March2007 2,155,904 1,420,831 3,576,735

At31March2006 2,201,961 1,688,169 3,870,130




Atendofyear 259,028 4,598,030 4,857,058


At31March2005 2,238,348 1,804,262 4,042,610

Security At31March2007achargewasregisteredovertheGroup’sinterestinlandbasedinCarlow.

Other Thedepreciableelementoffreeholdlandandbuildings,namelybuildings,amountedto1,728,075(2006:

1,728,075).

Assetsheldunderfinanceleases,atcostlessaccumulateddepreciation,includedinproperty,plantandequipment,amountedto643,466(2006:761,249).Thedepreciationchargeduringtheyearonsuchassetsamountedto117,783(2006:120,595).

Notes(continued)

8 Earnings/(loss)pershare 2007 2006

Profit/(loss)attributabletoordinaryshareholders 222,508 (180,613)

Weightedaveragenumberofordinaryshares inissueduringtheyear 12,315,082 12,315,082

Basicearnings/(loss)pershare 1.81c (1.47c)

Fullydilutedearnings/(loss)pershare 1.81c (1.47c)

Thecalculationoffullydilutedearnings/(loss)pershareisbasedontheprofitattributabletoordinaryshareholdersof222,508 (2006 loss: 180,613) and theweightedaveragenumberof ordinary sharesoutstanding, afteradjustingforshareoptionsoutstandingofnil(2006:30,000).Thedilutiveeffectofsuchoptionsamountedtonil(2006:16,957)shares,givinganotionalnumberof12,315,082ordinarysharesinissue.

9 Intangibleassets Patents Group

Cost Atbeginningofyear 1,001,085 Additions 88,395

Atendofyear 1,089,480

Amortisation Atbeginningofyear 393,124 Chargedduringyear 24,322

Atendofyear 417,446 Netbookvalue At31March2007 672,034

At31March2006 607,961

10 Investmentinsubsidiaries

2007 2006 Company

Sharesatcost 1,327,515 1,327,515 Less:provisionsforimpairmentinvalue (254) (254)

1,327,261 1,327,261

IntheopinionoftheDirectors,thevalueoftheinvestmentsisatleastequaltotheircarryingamount.DetailsofGroupundertakingsaresetoutinnote27.

Notes(continued)

35

11 Property,plantandequipment




Atendofyear 305,085 4,954,030 5,259,115


At31March2006 2,201,961 1,688,169 3,870,130




Atendofyear 259,028 4,598,030 4,857,058


At31March2005 2,238,348 1,804,262 4,042,610

Security At31March2007achargewasregisteredovertheGroup’sinterestinlandbasedinCarlow.

Other Thedepreciableelementoffreeholdlandandbuildings,namelybuildings,amountedto1,728,075(2006:

1,728,075).

Assetsheldunderfinanceleases,atcostlessaccumulateddepreciation,includedinproperty,plantandequipment,amountedto643,466(2006:761,249).Thedepreciationchargeduringtheyearonsuchassetsamountedto117,783(2006:120,595).

Notes(continued)

36

12 Inventories 2007 2006 Group

Finishedgoods 7,160 13,831 Workinprogress 587,106 700,126 Rawmaterials 381,539 390,568

975,805 1,104,525

13 Tradeandotherreceivables 2007 2006

Group Tradedebtors 1,018,448 727,184 Prepaymentsandaccruedincome 360,515 302,720

1,378,963 1,029,904

Impairmentprovisionsarenotmaterial

Company

AmountsowedbyGroupundertakings 3,145,416 3,145,416

AmountsowedbyGroupundertakingsareinterestfreeandrepayableupondemand

14 Tradeandotherpayables 2007 2006 Group

Tradecreditors 398,716 456,171 Accrualsanddeferredincome 322,805 320,671 Othercreditorsincludingtaxandsocialwelfare 73,885 26,503

795,406 803,345 Company

AmountsowedtoGroupundertakings 1,656,060 1,656,060

AmountsowedbyGroupundertakingsareinterestfreeandrepayableupondemand

15 Financeleaseobligations Financeleaseliabilitiesarepayableasfollows: Minimum Minimum lease lease payments Interest Principal payments Interest Principal 2007 2007 2007 2006 2006 2006

Lessthanoneyear 93,272 11,722 81,550 97,999 9,213 88,786 Betweenoneandfiveyears 94,641 7,793 86,848 185,849 19,451 166,398

187,913 19,515 168,398 283,848 28,664 255,184

Notes(continued)

37

16 Deferredgovernmentgrants

2007 2006 Group

Received and receivable 524,484 524,484

Amortisation Atbeginningofyear 383,663 379,549 Releasedduringyear 4,114 4,114

Atendofyear 387,777 383,663

Netbookvalue 136,707 140,821

17 Deferredtaxation

Recogniseddeferredtaxassetsandliabilities

Group Group Net(assets)/ Net(assets)/ Assets Liabilities liabilities Assets Liabilities liabilities 2007 2007 2007 2006 2006 2006

Property,plantandequipment - 279,514 279,514 - 298,597 298,597 Deferredgovernmentgrants (17,088) - (17,088) (17,603) - (17,603) Otherpayables (3,867) - (3,867) (3,867) - (3,867) Otheritems (21,053) - (21,053) (7,338) - (7,338) Taxvalueoflosses (137,506) - (137,506) (163,532) - (163,532)

Tax(asset)/liability (179,514) 279,514 100,000 (192,340) 298,597 106,257

Analysisofdeferredtaxliability-Group

Balanceat Balanceat Balanceat Balanceat 1April Recognised 31March 1April Recognised 31March 2006 inincome 2007 2005 inincome 2006

Property,plant&equip. 298,597 (19,083) 279,514 295,514 3,083 298,597 Deferredgovt.grants (17,603) 515 (17,088) (18,140) 537 (17,603) Otherpayables (3,867) - (3,867) (19,586) 15,719 (3,867) Otheritems (7,338) (13,715) (21,053) (2,249) (5,089) (7,338) Taxvalueoflosses (163,532) 26,026 (137,506) (128,277 (35,255) (163,532)

Tax(asset)/liability (106,257) (6,257) 100,000 127,262 (21,005) 106,257

Company

ThereisnopotentialliabilityfordeferredtaxationintheCompany.

Notes(continued)

38

22 Retainedearnings

Movement on Group retained earnings 2007 2006

Balanceatbeginningofyear 2,055,969 2,225,379

Profit/(loss)fortheyear 222,508 (180,613) Transferfromrevaluationreserve 11,203 11,203

Balanceatendofyear 2,289,680 2,055,969

Company

TheCompanyreturnedaNilprofitfortheyear(2006:Nil)

23 Analysisofdebt

Atbeginning Non-cash Cash Atend ofyear movements flow ofyear

Cashatbankandinhand 121,113 - 200,173 321,286 Obligations under finance leases: duewithinoneyear (88,786) (79,550) 86,786 (81,550) dueafteroneyear (166,398) 79,550 (86,848)

(255,184) - 86,786 (168,398)

(134,071) - 286,959 (152,888)

24 Financialcommitments

Group

Capital commitments Capitalexpenditurecommitmentsexistingatthebalancesheetdatewhichwerenotprovidedforinthe

financialstatementsamountedto9,217(2006:46,989).

Currency commitments Forwardratecurrencycommitmentstohedgesalesatthebalancesheetdatewereasfollows:

2007 2006 Currency Amount Weighted Amount Weighted Average Average Rates Rates

USdollars Nil Nil 970,000 1.2128 Poundssterling 238,000 0.6769 11,750 0.7224

Thesecontractsfallduebetween1April2007and30September2007.

Finance leases Therewerenocommitmentsexistingatthebalancesheetdateinrespectoffinanceleaseswhichhadbeen

enteredintobutwhichcommencedaftertheyearend(2006:Nil).

Notes(continued)

18 Issuedcapital

GroupandCompany

Authorised 50,000,000ordinarysharesof12ceach

Atbeginningandendofyear 6,000,000 Allotted, called up and fully paid Ordinarysharesof12ceach-12,315,082ordinaryshares

Atbeginningandendofyear 1,477,808

Theholdersofordinarysharesareentitledtoreceivedividendsasdeclaredfromtimetotime,andareentitledtoonevotepershareatmeetingsoftheCompany.

19 Sharepremiumaccount 2007 2006

GroupandCompany Atbeginningandendofyear 1,066,503 1,066,503

20 Reserves

Capital reserve

Thecapitalreserveincludes84,530ofanon-distributablereservesetupbyaGroupundertaking,underthetermsofagovernmentgrantagreement.

Capitalredemptionreservefund

ThisreservearoseontheredemptionofsharesintheCompanyinprioryears.

Revaluationreservefund

Therevaluationreserverelatestotherevaluationsurplusarisingonarevaluationofproperty,plantandequipmentwhichtookplaceon31March1999.Thefreeholdandlongleaseholdlandandbuildingswerevaluedbyindependentvaluers,SothernAuctioneersLtd.M.I.A.V.I.of37DublinStreet,Carlow,usinganexistinguseopenmarketbasis.Thevaluationresultedinasurplusoverbookamountof1,383,763whichwasthencreditedtootherreserves.

21 Otherreserves-Company Capital redemption Capital reserve reserve Total

Atbeginningandendofyear 50,903 85,885 136,788

Notes(continued)

39

22 Retainedearnings

Movement on Group retained earnings 2007 2006

Balanceatbeginningofyear 2,055,969 2,225,379

Profit/(loss)fortheyear 222,508 (180,613) Transferfromrevaluationreserve 11,203 11,203

Balanceatendofyear 2,289,680 2,055,969

Company

TheCompanyreturnedaNilprofitfortheyear(2006:Nil)

23 Analysisofdebt

Atbeginning Non-cash Cash Atend ofyear movements flow ofyear

Cashatbankandinhand 121,113 - 200,173 321,286 Obligations under finance leases: duewithinoneyear (88,786) (79,550) 86,786 (81,550) dueafteroneyear (166,398) 79,550 (86,848)

(255,184) - 86,786 (168,398)

(134,071) - 286,959 (152,888)

24 Financialcommitments

Group

Capital commitments Capitalexpenditurecommitmentsexistingatthebalancesheetdatewhichwerenotprovidedforinthe

financialstatementsamountedto9,217(2006:46,989).

Currency commitments Forwardratecurrencycommitmentstohedgesalesatthebalancesheetdatewereasfollows:

2007 2006 Currency Amount Weighted Amount Weighted Average Average Rates Rates

USdollars Nil Nil 970,000 1.2128 Poundssterling 238,000 0.6769 11,750 0.7224

Thesecontractsfallduebetween1April2007and30September2007.

Finance leases Therewerenocommitmentsexistingatthebalancesheetdateinrespectoffinanceleaseswhichhadbeen

enteredintobutwhichcommencedaftertheyearend(2006:Nil).

Notes(continued)

40

27 Groupundertakings

ThefollowingaretheGroupundertakingsofOglesby&ButlerGroupplc,allofwhichareincludedintheconsolidatedfinancialstatements,andwhichareincorporatedandoperatingintheRepublicofIrelandunlessotherwisestated.

Nameand Principal Percentageheldby: registeredoffice activity Company Group undertaking

Oglesby&ButlerLimited Manufactureand 100% - IndustrialEstate,O’BrienRoad,Carlow distributionofpowertools

Oglesby&ButlerTechnologyLimited Patentlicensing 100% - IndustrialEstate,O'BrienRoad,Carlow

Oglesby&ButlerIreland Investmentholding 100% - IndustrialEstate,O’BrienRoad,Carlow

Oglesby&ButlerInvestments Investmentholding 100% - IndustrialEstate,O’BrienRoad,Carlow

PortagasLimited Non-trading - 100% IndustrialEstate,O’BrienRoad,Carlow

PortasolInc.(UnitedStatesofAmerica) Non-trading 100% - CorporationTrustCentre,1209OrangeStreet, Wilmington,NewCastle,Delaware,U.S.A.

Oglesby&ButlerResearch&DevelopmentLimited Non-trading 100% IndustrialEstate,O’BrienRoad,Carlow

AllshareholdingsinGroupundertakingsconsistofordinaryshares.

28 Relatedpartytransactions

UnderIAS24Related party disclosures,theGrouphasarelatedpartyrelationshipwithitskeymanagement.TheGroupandCompanyhasdefineditskeymanagementasitsdirectorsandseniormanagers.Detailsofthecompensationofkeymanagementissetoutbelow.

Key management remuneration including non-executives 2007 2006 Number Number Numberofindividuals 6 6

Salariesandothershort-termemployeebenefits chargedtotheincomestatement 584,492 525,532

Comprisingthefollowing Directors 417,966 395,876 Otherkeymanagementpersonnel 166,526 129,656

584,492 525,532 TheCompanydidnottradeduringtheyearanddetailsofbalanceswithrelatedpartiesaresetoutinnotes13

and14.

29 Boardapproval

Theboardofdirectorsapprovedthesefinancialstatementson20September2007.

Notes(continued)

24 Financialcommitments(cont’d.)

Operating leases Commitmentsundernon-cancellableoperatingleasesinrespectofplant,fixturesandmotorvehicleswereasfollows: 2007 2006 Expiring:

Withinoneyear 11,892 11,710 Betweentwoandfiveyears 21,776 32,644

33,668 44,354

25 Financialinstruments

Foreign currency risk

ThemajorityofgroupsalesaredenominatedinforeigncurrencieswhiletheGroupsourcesrawmaterialsfromIrelandandtheUK.TheGroup'spolicyistoeliminateanynetcurrencyexposureonitspurchasesandsalesthroughforwardcurrencycontracts.TheGrouphadnonetcurrencyexposureonitsfinancialassetsorliabilitiesat31March2007.TheGrouphastakenoutforwardcontractsinexcessofthevalueofforeigncurrencydebtorsandcreditorstohedgeagainstpostyearendpurchasesandsalesinordertoprotectprofitmarginsinthenextaccountingperiod.

Thefairvalueoftotalunrecognisedgainsonforeigncurrencyforwardcontractstranslatedatthespotrateprevailingatthebalancesheetdatewas711,(2006:23,698).Theseareexpectedtomaterialiseinthenextaccountingperiod.

Interest rate risk

TheGrouphasnofinancialassetsotherthanshort-termdebtorsandcashdeposits. Cashdepositsof321,286(2006:121,113)areatfloatingrates.

TheGroup'sfinancialliabilitiesarecomprisedoffinanceleaseobligationsamountingto168,398assetoutinNote15.Othercreditorsandaccrualsallhaveshort-termmaturitydates.

Theinterestrateprofileoffinancialliabilitiesatthebalancesheetdatewasasfollows:

2007 2006 Floating Fixedrate Floatingrate Fixedrate ratefinancial financial financial financial liabilities liabilities liabilities liabilities

Weightedaverageinterestrate n/a 10.80% n/a 11.23%

Weightedaverageperiodforwhichrateisfixed n/a 2.86years n/a 3.37years

Fairvalues

Thefairvaluesoffinancialassetsandliabilitiesasshownonthebalancesheetapproximatetheircarryingvalues.

26 Pensions

Pensionsforemployeesarisefromadefinedcontributionscheme.Thesepensionsarefundedthroughanexternalpensionschemeforthesolebenefitofqualifyingemployeesortheirdependants.Thepensionfundchargefortheperiodwas72,312(2006:76,384)andoutstandingcontributionsatthebalancesheetdateamountedto16,051(2006:8,662).

Notes(continued)

41

27 Groupundertakings

ThefollowingaretheGroupundertakingsofOglesby&ButlerGroupplc,allofwhichareincludedintheconsolidatedfinancialstatements,andwhichareincorporatedandoperatingintheRepublicofIrelandunlessotherwisestated.

Nameand Principal Percentageheldby: registeredoffice activity Company Group undertaking

Oglesby&ButlerLimited Manufactureand 100% - IndustrialEstate,O’BrienRoad,Carlow distributionofpowertools

Oglesby&ButlerTechnologyLimited Patentlicensing 100% - IndustrialEstate,O'BrienRoad,Carlow

Oglesby&ButlerIreland Investmentholding 100% - IndustrialEstate,O’BrienRoad,Carlow

Oglesby&ButlerInvestments Investmentholding 100% - IndustrialEstate,O’BrienRoad,Carlow

PortagasLimited Non-trading - 100% IndustrialEstate,O’BrienRoad,Carlow

PortasolInc.(UnitedStatesofAmerica) Non-trading 100% - CorporationTrustCentre,1209OrangeStreet, Wilmington,NewCastle,Delaware,U.S.A.

Oglesby&ButlerResearch&DevelopmentLimited Non-trading 100% IndustrialEstate,O’BrienRoad,Carlow

AllshareholdingsinGroupundertakingsconsistofordinaryshares.

28 Relatedpartytransactions

UnderIAS24Related party disclosures,theGrouphasarelatedpartyrelationshipwithitskeymanagement.TheGroupandCompanyhasdefineditskeymanagementasitsdirectorsandseniormanagers.Detailsofthecompensationofkeymanagementissetoutbelow.

Key management remuneration including non-executives 2007 2006 Number Number Numberofindividuals 6 6

Salariesandothershort-termemployeebenefits chargedtotheincomestatement 584,492 525,532

Comprisingthefollowing Directors 417,966 395,876 Otherkeymanagementpersonnel 166,526 129,656

584,492 525,532 TheCompanydidnottradeduringtheyearanddetailsofbalanceswithrelatedpartiesaresetoutinnotes13

and14.

29 Boardapproval

Theboardofdirectorsapprovedthesefinancialstatementson20September2007.

Notes(continued)

42

Fiveyearsummary

2007 2006 2005 2004 2003 ’000 ’000 ’000 ’000 ’000

Revenue 5,413 5,130 5,121 4,907 5,549

Operatingprofit/(loss) 244 (153) (146) (85) 287

Financeexpenses (28) (49) (83) (31) (49)

Profit/(loss)beforeincometax 216 (202) (229) (116) 238

Taxcredit 6 21 31 21 26

Profit/(loss)forthefinancialyear 222 (181) (198) (95) 264

Dividendspershare(cent) Nil Nil Nil 0.25 0.57

Dividendcover(times) n/a n/a n/a n/a 3.75

Basicearnings/(loss) 1.81 (1.47) (1.60) (0.76) 2.14

Depreciation(euro) 402.1 418.8 425.9 412.6 432.9

Netassetspershare(cent) 46.48 44.68 46.14 49.47 50.49

Note: Figuresfor2003and2004arestatedunderIrishGAAPAccountingPrinciples,2005,2006,2007arestatedandpreparedinaccordancewithInternationalFinancialReportingStandards(IFRS's)asadoptedbytheEU.

Notes

43

Notes

44

Noticeofmeeting

AnnualGeneralMeeting

TheAnnualGeneralMeetingoftheGroupwillbeheldatHiltonDublinHotel,CharlemontPlace,Dublin2,at12.00noonon21November2007forthefollowingpurposes:

1. ToreceiveandconsidertheFinancialStatementsandReportsoftheDirectorsandAuditorfortheyearended31March2007.

2.

3. ToauthorisetheDirectorstoapprovetheAuditor’sremuneration.

4. Toconsiderand,ifthoughtfit,topassthefollowingasaSpecialResolution:

"Thatinaccordancewiththepowers,provisionsandlimitationsofArticle8(e)oftheCompany'sArticlesofAssociation,theDirectorsbeandareherebyauthorisedtoallotequitysecuritiesforcashandinrespectofsub-paragraph(ii)thereofuptoanaggregatenominalvalueof147,780."

SpecialBusiness

Toconsider,andifthoughtfit,topassthefollowingasSpecialResolutions:

5. “Thattheauthoritytomakemarketpurchases(withinthemeaningofSection212oftheCompaniesAct,1990(“theAct”))grantedbyResolution5passedattheAnnualGeneralMeetingoftheCompanyheldon10November2006beandisherebyrenewedandshallexpireatthecloseofbusinessontheearlierdateofthenextAnnualGeneralMeetingoftheCompanyand10March2008unlesspreviouslyrevoked,variedorrenewedinaccordancewiththeprovisionsofSection215oftheAct,buttheCompany,oranysubsidiary,mayenterintoacontractorcontractstopurchasesharesofanyclassinthecapitaloftheCompany(“Shares”)undertheauthorityherebyrenewedpriortotheexpiryofsuchauthoritywhichwouldbeormightbeexecutedwhollyorpartlyaftertheexpiryofsuchauthorityandmaymakeapurchaseofSharesinpursuanceofsuchcontractorcontracts,notwithstandingthatthisauthorityhasotherwiseexpired.”

Notes

Noticeofmeeting


TheAnnualGeneralMeetingoftheGroupwillbeheldatHiltonDublinHotel,CharlemontPlace,Dublin2,at12.00noonon21November2007forthefollowingpurposes:

1. ToreceiveandconsidertheFinancialStatementsandReportsoftheDirectorsandAuditorfortheyearended31March2007.

2.

3. ToauthorisetheDirectorstoapprovetheAuditor’sremuneration.

4. Toconsiderand,ifthoughtfit,topassthefollowingasaSpecialResolution:

"Thatinaccordancewiththepowers,provisionsandlimitationsofArticle8(e)oftheCompany'sArticlesofAssociation,theDirectorsbeandareherebyauthorisedtoallotequitysecuritiesforcashandinrespectofsub-paragraph(ii)thereofuptoanaggregatenominalvalueof147,780."

SpecialBusiness

Toconsider,andifthoughtfit,topassthefollowingasSpecialResolutions:

5. “Thattheauthoritytomakemarketpurchases(withinthemeaningofSection212oftheCompaniesAct,1990(“theAct”))grantedbyResolution5passedattheAnnualGeneralMeetingoftheCompanyheldon10November2006beandisherebyrenewedandshallexpireatthecloseofbusinessontheearlierdateofthenextAnnualGeneralMeetingoftheCompanyand10March2008unlesspreviouslyrevoked,variedorrenewedinaccordancewiththeprovisionsofSection215oftheAct,buttheCompany,oranysubsidiary,mayenterintoacontractorcontractstopurchasesharesofanyclassinthecapitaloftheCompany(“Shares”)undertheauthorityherebyrenewedpriortotheexpiryofsuchauthoritywhichwouldbeormightbeexecutedwhollyorpartlyaftertheexpiryofsuchauthorityandmaymakeapurchaseofSharesinpursuanceofsuchcontractorcontracts,notwithstandingthatthisauthorityhasotherwiseexpired.”

Formofproxy


I/Wetheundersigned,beingaShareholder(s)oftheCompany

Signature...........................................................................................

NameinFull.....................................................................................

Address............................................................................................................................................................................................................................

...................................................................................................................................................................................Date...............................................

HEREBYAPPOINTthedulyappointedChairmanoftheMeeting*

...........................................................................................................of............................................................................................................................

asmy/ourproxytovoteforme/usonmy/ourbehalfattheAnnualGeneralMeetingoftheCompanytobeheldatHiltonDublinHotel,CharlemontPlace,Dublin2,at12.00noonon21November2007andatanyadjournmentthereof.

OrdinaryBusiness For Against1. ConsiderationofFinancialStatements ❑ ❑2. Electionof ❑ ❑

3. AuthorisetheDirectorstofixtheAuditor’sremuneration ❑ ❑

4. Waiverofstatutorypre-emptionrights ❑ ❑

SpecialBusiness

5. Authoritytopurchaseownshares ❑ ❑

6. Authoritytore-issuetreasuryshares ❑ ❑

NOTES

1. *IfyouwishtoappointaproxyotherthantheChairmanoftheMeetingpleaseinsertthatperson’snameandaddressanddelete(initiallingthedeletion)"theChairmanoftheMeeting".ThecompletionoftheformofproxywillnotprecludeshareholdersfromattendingandvotingattheAGM.

2. Pleaseindicate,byinsertingXintheappropriatebox,thewayinwhichyourproxyistovoteonthespecifiedResolutions.Ifyoudonotdoso,yourproxywillvoteorabstainashe/shethinksfit.OnanyotherbusinesswhichmayproperlycomebeforetheMeeting(includinganymotiontoamendaResolutionoradjourntheMeeting),theproxywillactathis/herdiscretion.

3. Thisformofproxymustbesignedbytheappointerorhis/herattorneydulyauthorisedinwritingor,iftheappointerisacorporation,itmustbeunderitscommonsealorbesignedbysomeofficerorattorneydulyauthorisedinthatbehalf.

4. Tobevalid,thisFormofProxyandthePowerofAttorneyorotherauthority(ifany)underwhichitissignedmustbelodgedattheofficeoftheRegistraroftheCompany,ComputershareServices(Ireland)Limited,atHeronHouse,CorrigRoad,Sandyford,Dublin18atleast48hoursbeforethetimeappointedfortheholdingoftheMeeting.

5. Inthecaseofjointshareholders,seniorityshallbedeterminedbytheorderinwhichthenamesstandintheRegisterofMembers;thusthevoteoftheseniorjointshareholder,whotendersavote,whetherinpersonorbyproxy,shallbeacceptedtotheexclusionofthevote(s)oftheotherjointholder(s).

Noticeofmeeting(continued)

6. “ThatsubjecttothepassingofResolution5aboveandtotheprovisionsoftheCompaniesAct,1990,(“theAct”),forthepurposesofSection209oftheActthere-issuepricerangeatwhichanytreasuryshares(asdefinedbythesaidSection209)forthetimebeingheldbytheCompanymaybere-issuedoff-marketshallbeinaccordancewiththetermssetforthinResolution6passedattheAnnualGeneralMeetingoftheCompanyheldon10November2006andthattheauthorityherebyconferredshallexpireatthecloseofbusinessontheearlierofthedateofthenextAnnualGeneralMeetingoftheCompanyand10March2008unlesspreviouslyvaried,revokedorrenewedinaccordancewiththeprovisionsofSection209oftheAct”.

7. Totransactanyotherordinarybusinessoftheboard.

ByorderoftheBoard:

MichaelBoranSecretary RegisteredOffice: IndustrialEstate, O'BrienRoad,

20September2007 Carlow.

NOTES

1. Amemberentitledtoattendandvoteisentitledtoappointoneormoreproxiestoattendandvoteonhisorherbehalf.AproxyneednotbeamemberoftheCompany.

2. TheshareregisterandregisterofDirectors'andSecretary'sinterests,togetherwithcopiesofcontractsofservicebetweenDirectorsandtheCompanyoranyofitsgroupundertakings,willbeavailableforinspectionattheregisteredofficeoftheCompanyduringnormalbusinesshoursfromthedateofthisnoticeuntilthedateofthemeetingandonthatdateattheplaceofthemeetingfrom11.15a.m.untilitsconclusion.

Formofproxy


I/Wetheundersigned,beingaShareholder(s)oftheCompany

Signature...........................................................................................

NameinFull.....................................................................................

Address............................................................................................................................................................................................................................

...................................................................................................................................................................................Date...............................................

HEREBYAPPOINTthedulyappointedChairmanoftheMeeting*

...........................................................................................................of............................................................................................................................

asmy/ourproxytovoteforme/usonmy/ourbehalfattheAnnualGeneralMeetingoftheCompanytobeheldatHiltonDublinHotel,CharlemontPlace,Dublin2,at12.00noonon21November2007andatanyadjournmentthereof.

OrdinaryBusiness For Against1. ConsiderationofFinancialStatements ❑ ❑2. Electionof ❑ ❑

3. AuthorisetheDirectorstofixtheAuditor’sremuneration ❑ ❑

4. Waiverofstatutorypre-emptionrights ❑ ❑

SpecialBusiness

5. Authoritytopurchaseownshares ❑ ❑

6. Authoritytore-issuetreasuryshares ❑ ❑

NOTES

1. *IfyouwishtoappointaproxyotherthantheChairmanoftheMeetingpleaseinsertthatperson’snameandaddressanddelete(initiallingthedeletion)"theChairmanoftheMeeting".ThecompletionoftheformofproxywillnotprecludeshareholdersfromattendingandvotingattheAGM.

2. Pleaseindicate,byinsertingXintheappropriatebox,thewayinwhichyourproxyistovoteonthespecifiedResolutions.Ifyoudonotdoso,yourproxywillvoteorabstainashe/shethinksfit.OnanyotherbusinesswhichmayproperlycomebeforetheMeeting(includinganymotiontoamendaResolutionoradjourntheMeeting),theproxywillactathis/herdiscretion.

3. Thisformofproxymustbesignedbytheappointerorhis/herattorneydulyauthorisedinwritingor,iftheappointerisacorporation,itmustbeunderitscommonsealorbesignedbysomeofficerorattorneydulyauthorisedinthatbehalf.

4. Tobevalid,thisFormofProxyandthePowerofAttorneyorotherauthority(ifany)underwhichitissignedmustbelodgedattheofficeoftheRegistraroftheCompany,ComputershareServices(Ireland)Limited,atHeronHouse,CorrigRoad,Sandyford,Dublin18atleast48hoursbeforethetimeappointedfortheholdingoftheMeeting.

5. Inthecaseofjointshareholders,seniorityshallbedeterminedbytheorderinwhichthenamesstandintheRegisterofMembers;thusthevoteoftheseniorjointshareholder,whotendersavote,whetherinpersonorbyproxy,shallbeacceptedtotheexclusionofthevote(s)oftheotherjointholder(s).

Computershare Services (Ireland) LimitedP.O. Box 954Business Reply CentreDublin 18

Licence No. DN 4918

No Postage Stamp necessary if posted in Republic of Ireland

POSTAGE WILL BE PAIDBY LICENSEE

Please affix Postage Stamp if posted in G. Britain, Channel Islands or N. Ireland

SECOND FOLDTHIRD FOLD AND TUCK IN

FIR

ST F

OLD

✁

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