Professional Documents
Culture Documents
A Positive Outlook
09
R&A09-10-cover.indd 1 2/3/10 11:40 AM
CONTENTS
01 Chairman’s statement
04 Director’s report
08 Statement of director’s responsibilities
09 Group board of directors
10 Independent auditors report
12 Results
13 Group statement of total recognised gains and losses
13 Reconciliation of shareholders’ funds
14 Group balance sheet
15 Company balance sheet
16 Group statement of cashflows
18 Notes to the financial statements
Overview Consolidation
I am proud to present our results for the year as these reflect a Paragon remains committed to its strategy of consolidation and
great deal of good work and the building of an even stronger during the financial year we continued to integrate previously
foundation for the Paragon Group. In the year we made acquired businesses, while investigating further acquisition targets
particular progress on reshaping our French business following for consolidation onto our platform.
the acquisition of Lithotech in the prior year whilst continuing
During 2009 we completed the integration of the profitable
to respond positively to our customers’ needs across Europe. I
businesses rescued from Lithotech into our French businesses and
look forward with optimism to a future which will present many
the closure of the remaining. We have now successfully salvaged
opportunities which our Group is very well placed to respond to
a profitable business and valuable real estate assets.
in an effective and value enhancing way.
While none of the other businesses reviewed during 2009 met our
Challenging times acquisition criteria, we did make one further successful acquisition
just after the year end. On 4 August 2009 Paragon announced
Like most businesses across the globe, the 12 months ending the acquisition out of administration of Ward Knowles, a specialist
30 June 2009 were a very challenging year for all, including business forms supplier in the UK. The Ward Knowles brand has
the Paragon Group. Conditions in both our own market and over 100 years of expertise within the print industry and long
the broader macro-economic environment placed considerable standing relationships with major print management companies
pressure on some of our operating divisions. We are satisfied, making it a suitable investment for Paragon. This acquisition
however, with our performance across the Group in the face of further strengthens our position in the market and adds another
these challenges and wish to record the Board’s gratitude to all manufacturing facility to our portfolio. As part of the investment,
stakeholders in achieving this outcome. Paragon was able to rescue 70 jobs in the facility and is looking
forward to growing the business with the help of the existing
Financial results management team.
Despite the increased pressure on pricing and falling demand
in our markets, Paragon has maintained revenue, in constant PeP - Paragon e-commerce Platform
currency terms, in excess of €167 million. This represents a fall During the year we further expanded the functionality of our
of just under 3.5% and should be viewed in the context of our proprietary e-commerce platform (PEP), with powerful document
ongoing strategy of discontinuing unprofitable business lines. and image generation, enabling integrated cross-media
Of far greater focus for the Board is our underlying profitability campaigns of email, SMS, personalised web and digital print
and we are pleased to report that this has been maintained images. This was complemented by the on-going focus on cost,
with a continuing operating margin of 5.5% and cash flow efficiency and enhancing our customers' experience in the use of
from operations in excess of €9.6 million. This in turn has seen this plug and play, multi-lingual management system that continues
Paragon reduce Net Debt by 14% and maintain its robust balance to secure more customers and provide greater efficiency. During
sheet. Critical to this progress has been our tight working capital the year we further expanded our ERP systems, directly integrating
management and return-on-investment driven capital expenditure presses at our larger production sites. This enhanced our
policies. performance management and cost reduction programmes.
Outlook
The current trading environment is not easy and we do not expect
it to improve in the near term. While this puts pressure on our
operating businesses, we are confident in our proven management
team's ability to profitably manage businesses through the down
cycle and industry contraction. From a strategic perspective, this
challenging environment is favourable to Paragon as it will result in
further opportunities for consolidation and value extraction.
The climate in which we find ourselves permits only one direction
- that is forward. It requires all levels of management and staff
to pull together and deliver the best service to our customers,
extracting the best support from our suppliers and thus ensuring we
remain strong and even more robust as we exit this challenging
economic environment.
Conor J Donnelly
Executive Chairman of the Board
Date: 11th September 2009
DIRECTORS' REPORT
€160m
and the broader macro-economic environment placing
pressure on our operations. Paragon's demonstrated
capacity to deal with costs in a difficult economic
environment, has allowed it to emerge stronger, projecting
the Group towards new and higher added-value products
and services.
EBITDA
Over the last 12 months, Paragon has demonstrated
€10m
its capability to adapt its offering and move further up
the supply chain providing its customers with bespoke
technology-led solutions.
From call centre operations, marketing campaigns and
mailings management to the development of tailored
dynamic publishing web portals, we have put our Net Assets
€36m
customers’ needs first. Our objective has always been to
concentrate on what is best for our customers’ business;
creating further efficiencies and reducing costs.
“The further development of our “We have been true partners to our
e-commerce offering through the customers at a time which was very
introduction of dynamic publishing, difficult for them. They needed more
has given our customers access to an than ever to work with a company
invaluable marketing communications that was financially strong and that
tool allowing them to control their understood their business challenges.“
budget and get superior value from
Iain BlacK
their marketing campaigns.“ Group Sales & Marketing Director
Conor Donnelly
Executive Chairman
The directors present their report and the Group financial Whilst operating profits (EBIT) from continuing operations declined,
statements for the year to 30 June 2009. The financial statements they were satisfactory in light of these conditions.
are stated in Euros (€000) as this is the functional currency
The discontinued operations include all activities that were exited
of the Group.
during the year as a result of the fundamental reorganisation in
France. These activities did not meet our criteria for profitability.
Results and dividends This process has cost the Group €3,772,000. This includes
The operating profit on continuing activities was €8,697,000 employee redundancy, closure of one production facility,
(2008: €10,813,000) while an operating loss of €2,828,000 downsizing of our Parisian operations, converting the Bailleul
(2008: €970,000) was suffered on discontinued activities. facility from industrial to a state of the art warehouse, service
and distribution centre, relocation of machinery and equipment,
The profit on ordinary activities after tax amounted to associated charges, integration of the Paragon Lithotech Services
€1,528,000 (2008: €5,353,000). SA trade into our existing French operations and radically
EBITDA was €9,408,000 (2008: €14,907,000). reshaping and redirecting the remaining activities.
Operating cashflow from operations was €9,671,000 The operations in Romania and the UK traded well and provide
(2008: €7,485,000) much optimism for the future. The French operations have now
been placed on a sound footing and together with all companies
The cash position at the end of the year was €11,594,000 in the group we believe that they have exciting prospects in the
(2008: €12,813,000). coming years.
Net debt was reduced in the year by €3,607,000 Our cash and debt balances have been carefully husbanded
(2008: €52,000) in light of tight credit markets. Net debt was reduced by 14%
The directors do not recommend the payment of a dividend. during the year as a result of cash generated from operations and
through careful and tight management of working capital across
all companies.
Principal activities and review
of the business Our credit facilities contain a sensible balance of borrowings
that combine medium and long term repayment schedules. No
The Group is engaged in the provision of solutions to their clients' facilities are due to end or be renegotiated for several years and
printing, document management, tickets, labels and related the Group has comfortably met its financial covenant targets with
fulfilment and transaction needs. considerable headroom to spare.
The performance of the Group reflects the impact of very different
Market risk
economic forces in the past year.
Overcapacity continues to be a factor in the market. The
The results for the year can be distinguished between continuing prevailing economic downturn has accelerated the number of
activities and those that were exited and discontinued. business failures particularly those with high levels of gearing
that have been unable to refinance in the current challenging
Sales from continuing activities have declined during the year as: credit environment. The Group expects these conditions to persist
• the UK operation's sales that are translated to euro for reporting throughout the year ending 30 June 2010.
purposes have suffered an adverse currency hit of €7,000,000
due to the continued decline in sterling.
• the global recession and credit crunch took its toll on our
operations from quarter 2.
The Group's strong financial footing, supported by its balance Employee involvement
sheet and coupled with its operational experience of market
downturns, means Paragon is confident it will take advantage The Group is committed to involving its employees in the decisions
of the current competitive market conditions. The Group expects that affect them. Regular meetings take place between local
further consolidation opportunities to present themselves during management and employees to allow a free flow of information
the coming year. In addition, Paragon's scale and diversity and ideas. In addition, where practicable, the Group seeks to
enables the Group to maintain investment in product and service keep employees informed through regular meetings or newsletters.
enhancements despite competitive trading conditions.
Directors
Future developments The directors who served during the year were as follows:
Paragon continues to evolve the scope and sophistication of Conor J Donnelly
the products and services offered in its market. This is driven by Patrick J Crean
investment in technology solutions to allow the Group to operate
Iain S Black
more efficiently and to integrate closer with its customer base.
On 4 August 2009, Paragon acquired Ward Knowles out of Laurent T Salmon
administration. A specialist business forms supplier in the UK, the
Ward Knowles brand has over 100 years of expertise within Financial risk management policy
the print industry and long standing relationships with major print The main risks associated with the Group's assets and liabilities
management companies. are set out below. Any other financial risks from a Paragon Group
perspective are addressed on a case-by-case basis at Group
Paragon remains well positioned to take advantage of any further
level.
consolidation in its market.
Exchange rate risk
Research and development The Group investments and activities are mainly located within
the Euro zone as well as the UK. External currency exposures are
The Group carries out Research and Development both internally closely managed to provide a material level of cover on external
and through a number of international arrangements and foreign exchange fluctuations.
collaborations.
Cover is arranged through a combination of internal hedging
Political and charitable contributions of risks by matching sales and purchases where practical and
forward contracts where considered necessary. In this current
There were no charitable or political contributions made during financial year the Group has recorded a non-cash exchange gain
the year. on full settlement of intra-group loans with a UK subsidiary. The
directors do not expect this gain to arise again.
Disabled employees Price risk
The Group gives full consideration to applications for employment There is no significant exposure to changes in the carrying
from disabled persons where disabled persons can adequately value of assets and liabilities due to agreed pricing. Most price
fulfil the requirements of the job. increases would be considered transferable as indicated within
the trade terms agreements.
Where existing employees become disabled, it is the Group's
policy wherever practicable to provide continuing employment
under normal terms and conditions and provide training, career
development and promotion wherever appropriate.
Credit risk Such qualifying third party indemnity provision remains in force as
Group policies are aimed at minimising losses from credit risk at the date of approving the directors' report.
and require that deferred terms are granted only to customers
who demonstrate an appropriate payment history and satisfy Creditor’s payment policy and practice
creditworthiness procedures.
It is the Group's policy that payments to suppliers are made in
Individual exposures are monitored with customers subject to accordance with those terms and conditions agreed between
credit limits to ensure that the Group's exposure to bad debts is the Group and its suppliers, provided that all trading terms and
not significant. Goods may be sold on a cash-with-order basis to conditions have been complied with. At 30 June 2009, the Group
mitigate credit risk. had an average of 93 days (2008: 110 days) of purchases
outstanding in trade creditors.
An appropriate level of credit insurance cover has been arranged
in the UK to ensure that we have a cost effective means of
protection against increased credit risks in the current economic Disclosure of information to the auditors
environment. So far as each person who was a director at the date of
The Group receives credit from funders and suppliers. Group approving this report is aware, there is no relevant audit
policies are aimed at ensuring this credit is maintained at information, being information needed by the auditor in
adequate levels for the purpose of funding the business operations. connection with preparing its report, of which the auditor is
unaware. Having made enquiries of fellow directors and the
Liquidity risk Group's auditor, each director has taken all the steps that he is
The Group aims to mitigate liquidity risk by managing cash obliged to take as a director in order to make himself aware of
generated by its operations and ensuring that adequate credit/ any relevant audit information and to establish that the auditor is
borrowing facilities are in place. Capital expenditures and aware of that information.
related financing of investments are approved at Group level.
These are funded through a combination of internally generated Auditors
cash resources and lease financing. Flexibility is maintained
by retaining surplus cash in readily accessible bank accounts. A resolution to re-appoint Ernst & Young LLP as auditors
Borrowing facilities are a combination of fixed term loan facilities will be put to the forthcoming Annual General Meeting.
with 8 years remaining and revolving facilities with no expiration
By order of the Board
date. Cash balances and forecasts are controlled at both local
and Group level on a daily basis.
Use of derivatives
The group uses forward currency contracts to reduce foreign
exchange rate exposure on significant foreign currency payments.
No other derivatives are used.
Patrick J Crean
Directors' qualifying third party Chief Executive Officer and Secretary
indemnity provisions
Date: 11th September 2009
The company has granted an indemnity to one or more of its
directors against liability in the event of proceedings being
brought by third parties, subject to the conditions set out in the
Companies Act 2006.
The directors are responsible for preparing the Directors' Report The directors are responsible for keeping adequate accounting
and the financial statements in accordance with applicable law records that are sufficient to show and explain the company's
and regulations. transactions and disclose with reasonable accuracy at any time
the financial position of the company and enable them to ensure
Company law requires the directors to prepare financial
that the financial statements comply with the Companies Act
statements for each financial year. Under that law the directors
2006. They are also responsible for safeguarding the assets of the
have elected to prepare the financial statements in accordance
company and hence for taking reasonable steps for the prevention
with United Kingdom Generally Accepted Accounting Practice
and detection of fraud and other irregularities.
(United Kingdom Accounting Standards and applicable law).
The directors are responsible for the maintenance and integrity of
Under company law the directors must not approve the financial
the corporate and financial information included on the company's
statements unless they are satisfied that they give a true and fair
website. Legislation in the United Kingdom governing the
view of the state of affairs of the company and of the profit or
preparation and dissemination of financial statements may differ
loss of the company for that period. In preparing these financial
from legislation in other jurisdictions.
statements, the directors are required to:
• select suitable accounting policies and then apply them
consistently;
• make judgments and accounting estimates that are reasonable
and prudent;
• state whether applicable UK Accounting Standards have been
followed, subject to any material departures disclosed and
explained in the financial statements;
• prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the company will
continue in business.
1. Conor J Donnelly
Executive Chairman
2. Patrick J Crean
Chief Executive Officer
3. Laurent T Salmon
Group Finance Director
1. 2. 4. Iain S Black
Group Sales Development Director
3. 4.
We have audited the Group and parent Company financial Scope of the audit
statements of Paragon Group Limited for the year ended of the financial statements
30 June 2009 which comprise the Group Consolidated Income
Statements, the Group statement of Total Recognised Gains and An audit involves obtaining evidence about the amounts and
Losses, Reconciliation of Shareholders' Funds, the Group and disclosures in the financial statements sufficient to give reasonable
Company Balance Sheets, the Group statement of Cash Flows assurance that the financial statements are free from material
and the related notes I to 27. The financial reporting framework misstatement, whether caused by fraud or error. This includes an
that has been applied in their preparation is applicable law and assessment of: whether the accounting policies are appropriate
United Kingdom Accounting Standards (United Kingdom Generally to the group's and the parent company's circumstances and
Accepted Accounting Practice). have been consistently applied and adequately disclosed; the
reasonableness of significant accounting estimates made by the
This report is made solely to the company's members, as a body, directors; and the overall presentation of the financial statements.
in accordance with Sections 495 and 496 of the Companies
Act 2006. Our audit work has been undertaken so that we might
state to the company's members those matters we are required Opinion on financial statements
to state to them in an auditor's report and for no other purpose. In our opinion the financial statements:
To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company and the • give a true and fair view of the state of the group's and the
company's members as a body, for our audit work, for this report, parent company's affairs as at 30 June 2009 and of the
or for the opinions we have formed. group's profit for the year then ended;
• have been properly prepared in accordance with United
Respective responsibilities of directors Kingdom Generally Accepted Accounting Practice; and
and auditors • have been prepared in accordance with the requirements
As explained more fully in the Directors' Responsibilities of the Companies Act 2006.
Statement set out on page 8, the directors are responsible for
the preparation of the financial statements and for being satisfied Opinion on other matter prescribed
that they give a true and fair view. Our responsibility is to audit by the Companies Act 2006
the financial statements in accordance with applicable law and
International Standards on Auditing (UK and Ireland). Those In our opinion the information given in the Directors' Report for the
standards require us to comply with the Auditing Practices Board's financial year for which the financial statements are prepared is
(APB's) Ethical Standards for Auditors. consistent with the financial statements.
Mark Hatton
for and on behalf of Ernst & Young LLP, Registered Auditor
Date: 11th September 2009
RESULTS.
2009 2008
Notes €000 €000
Turnover
Continuing 2 157,540 165,612
Discontinued 2,607 7,055
160,147 172,667
Cost of sales
Continuing 117,634 119,076
Discontinued 4,301 6,859
121,935 125,935
Gross profit
Continuing 39,906 46,536
Discontinued (1,694) 196
38,212 46,732
Selling and distribution costs
Continuing 21,056 24,040
Discontinued 555 682
21,611 24,722
Administrative expenses
Continuing 10,153 11,683
Discontinued 579 484
10,732 12,167
Operating profit (EBIT)
Continuing 8,697 10,813
Discontinued (2,828) (970)
5,869 9,843
2009 2008
Notes €000 €000
Total recognised gains and losses relating to the year (770) 992
*Sterling has continued its decline in value with the Euro since the prior year-end consolidated financial statements were prepared.
As a result of this decline in Sterling, a non-cash exchange loss arises on consolidation of the Group's UK subsidiaries.
The directors expect this to reverse in the near future.
2009 2008
€000 €000
2009 2008
Notes €000 €000
Fixed assets
Tangible assets 12 30,493 33,953
Positive goodwill and development expenditure 28,356 30,453
Negative goodwill (2,127) (6,289)
Intangible assets 11 26,229 24,164
56,722 58,117
Current assets
Stocks 14 12,362 15,974
Debtors 15 33,037 45,215
Deferred tax asset 9 4,579 3,749
Cash at bank and in hand 11,594 12,813
61,572 77,751
Creditors: amounts falling due within one year 16 (53,975) (64,199)
Creditors: amounts falling due after more than one year 17 (23,369) (32,746)
Deferred income 18(a) (648) (728)
2009 2008
Notes €000 €000
Fixed assets
Investment 13 74,879 74,879
Current assets
Debtors 15 - 160
- 160
Creditors: amounts falling due within one year 16 (2,262) (2,732)
2009 2008
Notes €000 €000
Financing 23(b)
Loans received from shareholders - 1,000
Repayment of shareholder’s loans (705) (1,462)
Other loans and borrowings 870 3,744
Repayment of capital element of finance leases (1,826) (1,887)
Repayment of other loans (5,654) (1,524)
Net cash outflow on financing (7,315) (129)
2009 2008
Notes €000 €000
1. Accounting policies
Basis of preparation Government grants
The financial statements are prepared under the historical cost Grants relating to expenditure on tangible fixed assets are credited to
convention. The financial statements are prepared in accordance with deferred income and amortised to the profit and loss account over the
applicable accounting standards. useful economic lives of the assets to which they relate.
The Euro/Sterling exchange rate at 30 June 2009 was 1.173 Stock and work in progress
(2008: 1.264). Stock and work in progress has been valued at the lower of cost and
The directors have amended the format of the Group consolidated net realisable value. The cost of manufactured goods and work in
income statement compared to last year. They are of the opinion that progress includes direct materials and an appropriate proportion of
this summarises the results of the Group more effectively. overhead expenses.
Company
Transactions in foreign currencies are recorded at the rate ruling at
the date of the transaction or at the contracted rate if the transaction
is covered by a forward foreign currency contract. Monetary assets
and liabilities denominated in foreign currencies are retranslated at
the rate of exchange ruling at the balance sheet date or if appropriate
at the forward contract rate. All differences are taken to the profit
and loss account with the exception of differences on foreign currency
borrowings, to the extent that they are used to finance or provide
a hedge against foreign equity investments, which are taken directly
to reserves together with the exchange difference on the carrying
amount of the related investments. Tax charges and credits attributable
to exchange differences on those borrowings are also dealt with
in reserves.
Pensions
In the United Kingdom, the Group operates a defined benefit pension
scheme. For this scheme, the amount charged to the profit and loss
account in respect of pension costs is the service cost of providing
the benefits accrued in the period plus interest payable on pension
scheme liabilities. The amount credited to the profit and loss account is
the return on pension scheme assets. This scheme was frozen to future
accruals from 3 August 2005.
2009 2008
€000 €000
3. Operating profit
This is stated after charging/(crediting):
2009 2008
€000 €000
**UK audit fees include €5,000 (2008: €5,000) in relation to the Company.
2009 2008
€000 €000
5. Staff costs
2009 2008
€000 €000
The number of full-time, part-time and temporary employees at the year-end was:
2009 2008
No. No.
6. Directors’ emoluments
2009 2008
€000 €000
2009 2008
No. No.
The emoluments from the Company of the highest paid director were €95,000 (2008: €189,000). No contributions were paid
into money purchase pension schemes for the highest paid director (2008: €nil). An unrelated company was paid €nil (2008:
€500,000) for the provision of services of each of the directors in relation to the acquisition of Paragon Lithotech Services SA
in 2008.
2009 2008
€000 €000
The tax (credit)/charge for the year is made up as follows: 2009 2008
€000 €000
2009 2008
€000 €000
9. Deferred tax
Not Not
An analysis of the net deferred tax asset is as follows:
Recognised Recognised Recognised Recognised
Recognised
net deferred
tax asset
€000
At 1 July 2008 2,811
Credit in the year 1,801
Exchange rate differences (246)
At 30 June 2009 4,366
A deferred tax liability of €213,OOO (2008: €938,OOO) is included in creditors: amount falling due within one year (note 16).
The recognised net deferred tax asset is stated net of this.
The deferred tax asset is expected to be recovered in future periods over one year from the balance sheet date.
Cost:
At 30 June 2008 903 37,388 (8,811) 29,480
Fair value adjustment (note 13) - - 817 817
Exchange movements - (2) - (2)
Amortisation:
At 30 June 2008 867 6,971 (2,522) 5,316
Amortised in the year 33 2,062 (3,345) (1,250)
In accordance with the director’s estimate of useful lives, positive goodwill is amortised over a period of 20 years.
Cost:
At 30 June 2008 32,393 66,103 2,196 100,692
Revision of fair values (380) (183) - (563)
Additions 367 2,122 158 2,647
Disposals - (514) (3) (517)
Exchange movements (436) (1,638) (28) (2,102)
Depreciation:
At 30 June 2008 11,837 53,190 1,712 66,739
Charge for the year 1,451 3,254 112 4,817
Disposals - (479) (3) (482)
Exchange movements 70 (1,460) (20) (1,410)
The net book value of machinery and equipment above includes an amount of €5,044,000 (2008: €5,034,000) in respect of
assets held under finance leases and hire purchase contracts.
The net book value of land and buildings above includes an amount of €2,250,000 (2008: €6,907,000) in respect of assets
held under finance leases and hire purchase contracts.
13. Investments
Details of the investments in which the Group or the Company holds more than 20% of the nominal value of any class
of share capital are as follows:
Subsidiary undertakings
Proportion of
Country of voting rights
Name of Company incorporation Holding and shares held Total Nature of business
Cost:
At 1 July 2008 and 30 June 2009 74,879 74,879
Additions
The provisional fair value adjustments recorded in relation to Paragon Lithotech S.A. that was formed on 24 October 2007
to acquire the trade and assets of Lithotech SA have been finalised.
As permitted by FRS7, adjustments totaling €817,000 have been made to the provisional fair values in the 2009 financial
statements. Based on third party professional valuations, the fair value of tangible fixed assets at Marne La Vallee and Rognac
have been reduced. As a result of further information becoming available, the fair value of stocks, creditors and borrowings
have also been amended. The total adjustment of €817,000 has been reflected as a reduction of negative goodwill that arose
on acquisition.
14. Stocks
Amounts falling due after more than one year are: 516 473
Prepayments and accrued income 33,037 45,215
16. C
reditors: amounts falling Group Company
due within one year
2009 2008 2009 2008
€000 €000 €000 €000
17. Creditors: amounts falling due after more than one year
18. Deferred income and provisions for liabilities and charges Government
(a) Deferred income grants
€000
Retirement provisions
Certain European countries in which the Group operates oblige the employer to provide lump sum termination payments.
The provisions have been calculated with reference to specified individuals who are likely to be offered this arrangement.
Restructuring provisions
This provision includes redundancy and other charges incurred on the closure and fundamental restructuring of Paragon Lithotech
Services SA.
The bank loans and other borrowings comprise both fixed term and revolving credit facilities and are secured by fixed charges
over several of the Group's fixed assets, and a floating charge over debtors.
These borrowings are shown net of unamortised issue costs of €77,000 (2008: €107,000).
€8,700,000 of the borrowings is repayable in instalments over eight years while the balance is a revolving facility with no fixed
expiration date.
The main Group borrowings are denominated in Euros at a rate of 0.55% above EURIBOR while the sterling denominated
borrowings are at a rate of 0.65% above LIBOR. Some other long term loans are also denominated in Euros and sterling at a rate
of 1.1% above both EURIBOR and LIBOR.
Amounts due under finance leases and hire purchase contracts: 2009 2008
Group €000 €000
Amounts payable:
Within one year 1,479 2,084
In one to two years 893 1,174
In two to five years 1,646 1,193
In more than five years - 329
Less: finance charges allocated to future periods (305) (267)
3,713 4,513
2009 2008
€000 €000
Group
Land and buildings Other Total
Authorised:
Ordinary shares of €1.00 each 35,000,000 35,000,000 35,000 35,000
Allotted, called up and fully paid:
Ordinary shares of €1.00 each 35,000,000 35,000,000 35,000 35,000
2009 2008
The overall expected return on assets assumption of 6.52% as at 30 June 2009 has been derived by calculating the weighted
average of the expected rate of return for each asset class. The following approach has been used to determine the expected rate
of return for each asset class:
• fixed interest securities, current market yields
• equities, allowance for an additional return of 3.25% above that available on UK government securities
• cash, current Bank of England base rate
Demographic assumptions
Year ended Year ended
30/06/2009 30/06/2008
Life expectancy for a current 65 year old 20.9 years 23.2 years 20.9 years 23.2 years
Life expectancy at age 65 for current 45 year old 22.1 years 24.3 years 22.1 years 24.3 years
(707) (501)
Analysis of changes in the value of the plan liabilities over the year 2009 2008
€000 €000
2009 2008
€000 €000
2009 2008
€000 €000
The cumulative amount of actuarial gains and losses recognised in the STRGL (since 2002) is €2,675,000.
PEP
Manufacturing
At the heart of Paragon’s offering
Critical transactional communication,
is its technology capability, led marketing collateral, personalisation,
by the Paragon eCommerce POS, direct mail, operational
Platform (PEP), which provides material, forms and packaging
extensive procurement, supply
chain, inventory, document Security & identification
creation and project management solutions
People access and control, product
services, fully integrated with
identification, technical labels, RFID
customers’ internal processes.
Data management
Cleansing, manipulation, formatting,
asset/content management, version
control
Bucharest
Multi-channel delivery
Lisbon
Transactional, digital, e-mail, MMS,
SMS, web and telephony
Principal offices
France UK
Paragon Identification SAS Paragon Group UK Ltd
Les Aubépins Pallion Trading Estate
18410 Argent sur Sauldre Sunderland, SR4 6ST
France UK
Tel: +33 (0) 2 48 81 61 00 Tel: +44 (0) 191 514 0716
Fax: +33 (0) 2 48 81 61 49 Fax: +44 (0) 191 514 6361
www.paragon-europe.com