2014
Electronic Data Processing PLC
Annual Report and Accounts
30 September 2014
About EDP
Electronic Data Processing PLC is a leading supplier
of advanced technology Software Solutions. These
include ERP solutions for the Merchanting/Wholesale
Distribution Industry, e-business, application hosting
and Sales Intelligence Solutions together with
a comprehensive range of customer support
and education services.
Our values
>
We believe in conducting our business
activities with integrity, building mutually
beneficial long-term relationships with all
our customers, providing the highest levels
of professional service at every stage.
>
We are committed to delivering superior value
in our products and services to our customers,
on a continuing basis.
>
We respect the individuality of each member
of our staff, fostering an environment where
creativity and productivity are encouraged,
valued and rewarded.
>
We are dedicated to creating value for
shareholders by performing in a manner
which will enhance return on investment.
Electronic Data Processing PLC is incorporated in England and Wales under Registration Number 853560
4
Electronic Data Processing PLC annual report and accounts 2011
Key Highlights
Strategic report
> Turnover £5.51 million (2013: £5.83 million)
Governance
>First half revenues impacted by delays to a number of discrete customer
orders; second half revenues were consistent with those experienced
in the second half of the previous financial year
>Contracted recurring revenues remain strong representing 80%
of total revenue (2013: 77%)
>Hosting revenues continue to increase and now represent 52%
of total revenues (2013: 48%) demonstrating the success of
our strategy to grow the hosting/cloud side of the business
Financial statements
>Adjusted operating profit £553,000 (2013: £835,000) gives
an operating margin of 10.0% (2013: 14.3%)
> Pre-tax profit £401,000 (2013: £794,000)
>Continuing commitment to R&D expenditure of £981,000 in the year
(2013: £940,000)
>Strong debt-free balance sheet; cash balances of £5.0 million
at 30 September 2014 (2013: £5.7 million) will be used
to further develop the business
Notice of meeting
>3p special interim dividend returned £379,000 to shareholders
during the year
>Final dividend maintained at 2.0p per share, making 5.0p for
the full year (2013: 7.0p)
>Future dividends will be reviewed according to acquisition
opportunities and the overall cash position at the time. However,
in view of the Company’s relatively large cash balances and as
reported at the half year results, it is the Board’s current intention
to pay an interim dividend of 2p per share and a final dividend
of 3p per share in future years
In this report
Visit us online
Strategic report
Financial statements
1 Key Highlights
23 Independent Auditor’s Report
2 Chairman’s Statement
26 Consolidated Income Statement
3 Chief Executive’s Statement
26Consolidated Statement
of Comprehensive Income
5 Key Performance Indicators
6 Principal Risks and Uncertainties
27 Consolidated Balance Sheet
8Environmental, Employee, Social, Community
and Human Rights Matters
Governance
28Consolidated Statement of Changes in Equity
29 Consolidated Cash Flow Statement
9 Directors and Advisers
47 Company Balance Sheet
10 Directors’ Report
48Notes to the Company Financial Statements
12 Corporate Governance
56 Five Year Statistical Record
30Notes to the Consolidated Financial Statements
More information
for investors,
including reports,
announcements
and notices, at
www.edp.co.uk
15 Audit Committee Report
16 Directors’ Remuneration Report
22 Statement of Directors’ Responsibilities
Electronic Data Processing PLC Annual Report and Accounts 2014
1
Chairman’s Statement
Sir Michael Heller
Summary
•Adjusted operating profit was £553,000,
compared with £835,000, reflecting the
reduced revenue in the first half
•Hosting revenues represented 52% of total
revenues during the year under review.
This is the first time they have exceeded
half of our turnover
•The Board is proposing to maintain the
final dividend at 2.0p per share giving
a total for the year of 5.0p
We have continued to
move forwards our main
products, Quantum VS
and Vecta, in terms of their
functionality, increasing
R&D expenditure during
the year to £981,000,
up from £940,000 the
previous year.
2
Turnover for the year to 30 September 2014
was £5.51 million compared with £5.83 million
the previous year. As we reported in May,
sales during the first half of the year were
impacted by delays to a number of discrete
customer orders. However, sales in the
second half returned to more normal levels
in an environment which remains competitive.
Adjusted operating profit was £553,000,
compared with £835,000, reflecting the
reduced revenue in the first half. This
underlying cash-based measure of our
performance excludes non-cash IFRS
charges and credits and represents an
operating margin of 10.0% (2013: 14.3%).
Statutory pre-tax profit for the year was
£401,000 (2013: £794,000).
We have continued to move forwards our
main products, Quantum VS and Vecta, in
terms of their functionality, increasing R&D
expenditure during the year to £981,000,
up from £940,000 the previous year.
Hosting revenues represented 52% of total
revenues during the year under review. This
is the first time they have exceeded half of
our turnover. Contracted recurring revenues,
which include annual software licence fees
and hosting charges, amounted to 80% of
total revenue compared with 77% in the
previous year.
We have previously reported that we
had accepted an offer for our property
in Milton Keynes which is surplus to
requirements. Regrettably this sale is
now looking unlikely to proceed. Whilst
we are actively exploring other opportunities
to dispose of this property it is appropriate
to transfer it from current assets back into
fixed assets. At 30 September 2014 it is
included in the Group balance sheet at
£1.39 million net of depreciation. We will
report any further progress in due course.
We have one further surplus freehold property
in Sheffield which is also included in fixed
assets in the Group balance sheet at
£303,000 and which is currently being
marketed for sale.
Electronic Data Processing PLC Annual Report and Accounts 2014
Year-end cash balances were £5.0 million
(2013: £5.7 million). This is after dividends
paid during the year of £631,000. We continue
to be interested in using our cash balances
should opportunities to acquire similar
software producing businesses arise.
Net assets at 30 September 2014 were
£5.3 million compared to £6.1 million.
The difference principally reflects a £619,000
actuarial loss on the defined benefit pension
scheme following a decrease in the discount
rate used to value liabilities under IAS 19.
This is explained more fully in the Chief
Executive’s Statement.
The Board is proposing to maintain the
final dividend at 2.0p per share giving a total
for the year of 5.0p (2013: 7.0p). The total
dividend paid to shareholders will therefore
be £631,000. If approved by shareholders,
the final dividend will be paid on 7 April 2015
to those shareholders on the register at
6 March 2015. The shares will be ex-dividend
on 5 March 2015.
We will review future dividends according
to the acquisition opportunities that arise
and our overall cash position at the time.
However, in view of our relatively large cash
balances and as reported at the time of our
half year results, it is our current intention to
pay an interim dividend of 2p per share and
a final dividend of 3p per share in future years.
I would like to thank all our members of
staff and my colleagues on the Board for
their contribution during the year.
Whilst we expect to face a number of
challenges in the coming year, which are
addressed in the Chief Executive’s Statement,
we have made appropriate changes within
the business in anticipation of this and
I remain confident about the future.
Sir Michael Heller
Chairman
16 December 2014
Chief Executive’s Statement
Summary
•Contracted recurring revenues during
the period under review represented 80%
of our total revenues
•R&D expenditure increased to £981,000
from £940,000
The upgrade of our existing customers to
Quantum VS, our latest ERP solution for
distributors, has continued during the year
under review. Pleasingly we have also signed
a number of new business customers for
Quantum. Whilst Quantum provides an
excellent choice for the majority of the
existing users of our legacy applications it
is unrealistic to expect that all of them will
migrate. We therefore expect to see higher
“churn” of customers in coming years than
has traditionally been the case. It is therefore
important that we increase our new business
sales efforts to address this. Accordingly
we have recently strengthened our lead
generation and new business sales teams.
In common with many other software
vendors, we continue to see a move away
from upfront revenues towards stronger
ongoing subscription revenues, particularly
with Vecta, as the Cloud/SaaS business model
continues to gain traction. Whilst the impact
of this has again been modest during the year,
we expect the trend to continue.
We are continuing to see keen price
competition in the markets for both Quantum
VS and Vecta and it is important therefore
that we continue to invest in R&D to ensure
that our products remain attractive. During
the year under review R&D expenditure
increased to £981,000 from £940,000.
We reported at the half year that
one of our major customers acquired a
competitor software business. They have
recently completed their transition to that
business’s product which will impact our
revenues in the current financial year by
approximately £300,000.
Whilst these factors combined will undoubtedly
put some pressure on our revenues in the
coming year, we have identified annual cost
savings (after strengthening our new business
sales team) within the business amounting to
£200,000 which have already been implemented
after the period end. These relate to personnel
and property/establishment costs. We expect
to achieve further annual cost savings of
circa £75,000 in 12 to 24 months’ time as
we reduce the property costs associated
Business model
Our business model revolves around
supplying our software products under
long-term contracts either in the form of
traditional on-site licencing arrangements or
cloud-based, hosted service level agreements.
These long-term agreements provide us with
good visibility of revenues from our existing
customers for up to 5 years. Contracted
recurring revenues during the period under
review represented 80% of our total revenues.
The rest of our revenues have traditionally
been derived from our initial software
licence fees, hosting joining fees and the
provision of implementation, training and
consultancy services. In addition, we supply
a small amount of computer hardware and
maintenance to certain customers which
is generally low margin.
Our business model is strong. We continue
to manage our cost base prudently and
monitor working capital carefully.
Strategy
Our strategy is to deliver software solutions
that offer clear business benefits, assisting
our customers to generate sales growth or
to create efficiencies and drive down costs
in their business.
We have aimed to increase the number
of customers who receive their software
through the Cloud, and we have been doing
so for 14 years from our hosting centre in
Milton Keynes, thereby strengthening our
commitment to our customers and vice versa.
We have two main product groups –
software applications for distributors and
merchants, where Quantum VS is our latest
product; and Vecta, our award-winning
CRM and Business Intelligence (BI) product.
The products are complementary with many
of our customers using both. Whilst Quantum
focusses on a number of discrete sectors
within distribution, Vecta has a wider target
market across a broader range of verticals.
Quantum VS provides the core of our
customers’ business. The product and
market are characterised by long relationships
with customers but also lengthy sales cycles
which typically, and in common with other
suppliers of similar applications, can be
over 12 months.
Vecta balances this with much shorter sales
cycles, sometimes measured in weeks, and
shorter implementation times.
Electronic Data Processing PLC Annual Report and Accounts 2014
3
Notice of meeting
Our strategy is to deliver
software solutions that
offer clear business
benefits, assisting our
customers to generate
sales growth or to
create efficiencies
and drive down costs
in their business.
It is pleasing to note that the proportion of our
revenues delivered through our hosting centre
has exceeded 50% for the first time. This
reflects our strategy to grow the hosting/cloud
computing side of the business.
with operating our current satellite office
locations. We will continue to manage our
cost base prudently and seek opportunities
to reduce costs wherever possible without
affecting our ability to deliver our products
and services to our customers.
Financial statements
•Our cash balances at 30 September 2014
were £5.0 million (2013: £5.67 million)
Our turnover for the year to 30 September 2014
was £5.51 million, a 5% reduction from last
year’s £5.83 million. As we noted when we
reported our interim results, turnover in the
first half was impacted by delays to a number
of discrete customer orders during February
and March. Second half revenues were
consistent with those experienced in the
second half of the previous financial year.
Governance
•Turnover in the first half was impacted by
delays to a number of discrete customer
orders during February and March. Second
half revenues were consistent with those
experienced in the second half of the
previous financial year
Strategic report
Julian Wassell
Chief Executive’s Statement continued
Julian Wassell
“We have significantly strengthened our development and
product management resource during the year to further
accelerate the delivery of new functionality.”
Quantum VS
Quantum VS is a graphical software application
focussed on a number of vertical markets
within the distribution sector including:
•builders and timber merchants
•suppliers of fixings and fastenings
•industrial and security products
•electrical wholesalers
•food distributors
Our strategy has been and remains to develop
a single software application which provides:
•primarily, a clear upgrade path for our
existing customers by bringing into this
single product the key functionality from
our established distribution applications
– Merchant, Charisma, Esprit and The
Business Programme;
•a software application to exploit new
business opportunities in the markets
we address; and
•a platform for continued enhancements
in functionality.
We have significantly strengthened our
development and product management
resource during the year to further accelerate
the delivery of new functionality.
New functionality delivered during the year
includes integrated telephony (TAPI), improved
credit card handling, new signature pad
functionality and the introduction of mega
menus to improve navigation throughout
the product. Quantum has also recently
been released on an SQL database which
will improve access to data and
reporting capabilities.
Looking ahead, in 2015 we will be releasing
a new document scanning and archiving
solution together with a completely new
e-business solution for our customers.
Vecta
Vecta is a powerful, combined CRM and
Business Intelligence (BI) product which
assists businesses to drive sales. It is
positioned between the major CRM
products, which typically do not deliver
sales analysis, and traditional BI tools.
Our aim is to provide an essential tool that
will fulfil all the CRM and sales intelligence
requirements of a broad range of businesses
without the need for a separate third-party
CRM solution.
Vecta is optimised for the latest internet
browsers which facilitate its use on a wide
range of devices whether desktop or mobile.
Vecta is now exclusively delivered though
the cloud. We have continued to add new
features during the year and I am delighted
to report that Vecta won the “Software
Innovation Solution of the Year” and “SME
Solution of the Year” categories at the
industry renowned European IT & Software
Excellence Awards for 2014.
We have a major new release of Vecta
planned for the first half of 2015. This will use
the latest technologies to deliver an improved
look and feel and provide a platform to ensure
that Vecta remains an essential tool for our
customers’ management and sales teams
into the future.
Hosting/cloud computing
We have offered our customers the facility
to have their software hosted at our own
purpose-built facility in Milton Keynes for
many years. This gives our customers a
single IT provider for their software, hardware
and operating system requirements.
For the first time, hosting now represents
more than half of our revenues, at 52%
(2013: 48%). The number of hosted customers
has also increased to 184 at 30 September
2014 from 172 a year earlier. The following
graph illustrates the growth in recent years
in the proportion of our revenues which
are delivered in this way.
Financial review
Turnover for the year was £5.5 million
compared with £5.8 million in the previous
year. Revenues in the first and second halves
were £2.6 million and £2.9 million respectively
(2013: £2.9 million and £2.9 million respectively).
Recurring revenues increased to 80% of
total revenues from 77% last year.
Adjusted operating profit for the year was
£553,000 compared with £835,000 last year.
Our operating margin therefore was 10.0%
compared with 14.3%.
Adjusted operating profit is calculated
after adding back a net charge of £198,000
(2013: £126,000) relating to a number of
non-cash items which arise under IFRS,
principally amortisation of intangible assets,
defined benefit pension scheme charges
and the capitalisation and amortisation
of development costs.
Statutory pre-tax profit was £401,000
compared to £794,000 last year. This reflects
the impact of reduced turnover during the
year together with a one-off IFRS charge of
£60,000 resulting from our decision to close
the defined benefit pension scheme to future
accrual, and a £95,000 increase in the level
of R&D charged in the income statement
under IFRS.
R&D expenditure, which relates principally
to the continued enhancement of Quantum
VS and Vecta, increased to £981,000 from
£940,000 last year. Of this £79,000 (2013:
£118,000) was capitalised as required by
IAS 38. Amortisation of previously capitalised
R&D amounted to £36,000 (2013: £21,000).
The amount charged in the income statement
in respect of the current year has therefore
increased to £938,000 from £843,000
last year.
As a result of lower interest rates available
on our surplus cash balances our interest
income during the year was £46,000
compared with £85,000 last year.
The tax credit of £3,000 on pre-tax profit
of £401,000 arises due to the receipt of
additional tax relief on qualifying Research
and Development expenditure. We expect
Hosted vs non-hosted revenues
100%
80%
89%
84%
81%
77%
70%
66%
30%
34%
2010
2011
57%
52%
48%
43%
48%
52%
60%
40%
20%
0%
11%
2006
16%
19%
23%
2007
2008
2009
2012
2013
Hosted
4
Electronic Data Processing PLC Annual Report and Accounts 2014
2014
Non-hosted
Strategic report
to be able to continue to benefit from the
Government’s initiatives in this area in the
coming year.
Earnings per share was 3.21p or 3.16p on
a fully diluted basis (2013: 4.68p and 4.63p).
The most recent triennial actuarial valuation
of the scheme at 31 July 2013 has recently
been completed and this showed a small
surplus on an ongoing funding basis.
The defined benefit pension scheme
comprises a grouped funding arrangement
whose sole asset is a with-profits insurance
policy backed by corporate bonds. Under
the accounting rules prescribed by IAS 19
the scheme asset is valued at the insurance
policy’s discontinuance surrender value at
the period end. This valuation does not take
into account the guaranteed annuity rates
which have been secured by the policy and
which are included in the ongoing scheme
funding valuation.
We have previously reported that we were
consulting with members regarding closing
the scheme to future accrual. This was
completed during the year effective from
31 August 2014. This closure to future accrual
has given rise to a one-off curtailment charge
in the income statement of £60,000. The
three remaining affected members have
transferred into our group money purchase
pension scheme.
As a result of the matters described above,
net assets reduced to £5.34 million from
£6.15 million. Net assets per share amounted
to 42.4p (2013: 49.1p).
We are actively pursuing other opportunities
to dispose of this property. In the short term
we have let the property to a charitable
organisation and, whilst this doesn’t generate
significant rental income, we are currently
mitigating business rates of £52,000 per annum
effective from July this year. An eventual
disposal of this property will generate total
annual cost savings of around £87,000. This
includes, inter alia, the £52,000 business rates
referred to above and £19,000 of depreciation.
The remaining property, which is an industrial
unit in Sheffield, is included in fixed assets
at a value of £303,000. We have changed
property agents during the year and continue
to market the property. Annual cost savings of
£35,000 (including £4,000 depreciation) would
be achievable if we dispose of the property.
Outlook
We have a strong product and services
offering, a robust business model and
considerable financial strength which will
enable us to meet the challenges we will face
in the forthcoming year. Having strengthened
our sales team we expect to be well positioned
to take advantage of those new business
opportunities which do arise.
Finally, I would like to thank all of my colleagues
throughout the business for their hard work
and commitment during the year.
Level of software
and service revenues
Revenue from software and services
reduced by 5% in FY14.
Sales of software and services account
for 97% of total Group revenues in FY14,
with the remainder comprising low
margin hardware sales and hardware
maintenance.
Notice of meeting
Pension
The liability relating to the Group’s defined
benefit pension scheme increased by £931,000
(£745,000 net of deferred tax). The Group
balance sheet reflects a gross liability in
respect of this scheme of £1.975 million
(£1.580 million net of deferred tax). The
increase in the liability arises mainly from
an actuarial loss resulting from a significant
reduction in the discount rate used to value
the scheme liabilities. Under IAS 19 the
discount rate is equivalent to the yield
available on AA-rated corporate bonds.
We have previously reported that we
had accepted an offer to sell one of these
properties (which is in Milton Keynes) and,
as a result, had categorised it in the Group
balance sheet as an asset held for sale at
its expected net sale proceeds of £1.42
million. Disappointingly, it now appears
that the purchaser is unable to proceed
with the transaction and accordingly we
have transferred the property back into
fixed assets in the Group balance sheet.
At 30 September 2014 it is stated at
£1.39 million net of depreciation.
Financial statements
Cash balances at 30 September 2014 were
£5.0 million (2013: £5.67 million). Operating
cash flows were £336,000. In addition we
received £48,000 in interest on our cash
deposits. Dividends paid returned £631,000
to shareholders. Other significant cash outflows
were £144,000 corporation tax and £176,000
of capital expenditure.
Property
In addition to the hosting centre in
Milton Keynes we have two further freehold
properties, both of which are surplus to
operational requirements.
Key Performance
Indicators
The following
financial KPIs
are used by the
Board to review
the performance
of the business:
Governance
“Vecta won the ‘Software Innovation Solution
of the Year’ and ‘SME Solution of the Year’
categories at the industry renowned European
IT & Software Excellence Awards for 2014.”
Adjusted operating
profit margin
Our adjusted operating margin
was 10.0% in FY14 compared
with 14.3% in FY13.
Adjusted operating margin is
calculated using operating profit
excluding certain non-cash IFRS
adjustments relating to amortisation
of intangible assets, defined benefit
pension scheme charges and
capitalisation/amortisation
of development costs.
Level of contracted
recurring revenues
Recurring revenues represent 80%
of total revenues in FY14 up from
77% in FY13.
Recurring revenues underpin our
business model and principally
comprise contracted ongoing
software licences and hosting fees.
Level and growth
of hosted revenues
52% of our revenues were delivered
though our hosting centre in FY14
compared with 48% in FY13.
Julian Wassell
Chief Executive
16 December 2014
Electronic Data Processing PLC Annual Report and Accounts 2014
5
Principal Risks and Uncertainties
We operate in a changing economic and technological
environment that presents risks, many of which are driven
by factors that we cannot control or predict. The key risks
and uncertainties facing EDP and the measures taken
to mitigate these risks are as follows:
Systems and networks
Product technology advances
External economic factors
6
Risk
Potential impact
Mitigation
EDP’s business operations rely
significantly on the efficient and
uninterrupted operation of its
information technology systems
and networks.
Any damage or interruption
to EDP’s networks, however
caused, could have a material
adverse effect on the delivery
of our products and services.
We continually review
and test the security of internal
systems and networks and have
developed recovery plans in
the event of systems disruption.
Our computer network may
be vulnerable to unauthorised
access, viruses and other
disruptive problems.
A party that is able to override
security measures could
misappropriate proprietary
information or cause disruption
to our operations.
Where reliance is placed upon
externally provided systems
and networks we undertake
regular performance ability
reviews and ensure that
contracts provide for
an appropriate level of
service maintenance.
The markets in which EDP
operates are characterised
by evolving technology,
market practices and
industry standards.
Competitors could develop
superior products or more
cost-effective techniques
which could render our
products uncompetitive or
less acceptable to the market.
This could result in the loss
of new revenue opportunities
or the non-renewal of contracts
by existing customers.
We have an ongoing
commitment to research and
development which allows us
to identify and adapt to any
technological and market
changes that do occur thereby
ensuring that our products
continue to meet the demands
of our customers.
Restricted availability of finance
for businesses and a stagnant
or recessionary economy could
have an adverse effect on the
prospects for EDP, as potential
customers, particularly in the
builders and timber merchants
sectors may scale back their IT
plans in response to funding
difficulties and/or reduced
prospects for their businesses.
We seek to ensure that a
significant proportion of our
revenues are derived from
long-term contracts with our
customers, that our products
appeal to businesses operating
in a range of business sectors
and that payments for our
recurring fees are received
annually in advance.
As with most other businesses
in the UK, our operations can
be adversely affected by a
significant downturn in
the economy.
Electronic Data Processing PLC Annual Report and Accounts 2014
During the year ended
30 September 2014
we strengthened our
development and product
management resource.
Strategic report
Governance
Mitigation
Competitor activity
EDP operates in a
competitive environment.
New entrants to our
marketplace and actions
taken by existing competitors
could have an impact on our
levels of business activity
and product pricing in the
market generally.
We endeavour to provide
excellent customer support
together with high quality
products at a competitive
price in order to develop and
protect strong customer
relationships.
Key employees
In common with all people‑based
businesses, our success will, to
a significant extent, be dependent
on the experience of the Board and
senior management. The retention
of the services of EDP’s key
employees cannot be guaranteed.
The loss of key employees could We are continually focused
have a material adverse effect
on the need to recruit, retain,
on EDP.
reward and motivate staff
with the appropriate skills.
The failure to retain and develop
key technical skills and product
knowledge could hinder EDP’s
future prospects.
Electronic Data Processing PLC Annual Report and Accounts 2014
Notice of meeting
Potential impact
Financial statements
Risk
7
Environmental, Employee, Social, Community
and Human Rights Matters
Environmental information
The Group’s operations, which are principally software development and hosting, by their nature have a minimal impact on the environment.
Nevertheless, the Group is committed to minimising the impact of its activities on the environment through initiatives such as the
provision of fuel-efficient cars to company car drivers and encouraging waste recycling at Group locations.
Greenhouse gas emissions
During the year ended 30 September 2014 the Group purchased 599,000 kWh (2013: 603,000 kWh) of electricity, the majority of which
was used at the Group’s hosting centre in Milton Keynes. Using the 2014 conversion factor for grid electricity published by Defra this
equated to 296 tonnes (2013: 269 tonnes) of carbon dioxide equivalent emitted. This equated to approximately 4.4 tonnes (2013: 3.84
tonnes) per Group employee.
The Group also operates a fleet of 26 cars. During the year ended 30 September 2014 the total carbon dioxide equivalent emitted by the
vehicles, calculated from the manufacturers’ emissions rating for each car, was 107 tonnes (2013: 110 tonnes). This equated to an average
of 4.1 tonnes per vehicle (2013: 4.2 tonnes).
Employee information
At the end of the financial year, the Group employed 67 people. This figure includes 5 Executive and 2 Non-Executive Directors, all
of whom are male. There are 4 senior managers, three of whom are male and one female. Of the remaining 56 employees, 40 are
male and 16 are female.
Employee, social, community and human rights
Our company values are long established having been set out at the head of our annual report for many years. They are set out below:
•We believe in conducting our business activities with integrity, building mutually beneficial long-term relationships with all our
customers, providing the highest levels of professional service at every stage.
•We are committed to delivering superior value in our products and services to our customers, on a continuing basis.
•We respect the individuality of each member of our staff fostering an environment where creativity and productivity are encouraged,
valued and rewarded.
•We are dedicated to creating value for shareholders by performing in a manner which will enhance return on investment.
The Group does not have any other significant environmental, employee, social, community or human rights issues.
Approval of Strategic Report
The Strategic Report on pages 1 to 8 was approved by the Board on 16 December 2014.
Julian Wassell
Chief Executive
8
Electronic Data Processing PLC Annual Report and Accounts 2014
Directors and Advisers
Strategic report
Governance
Directors
Sir Michael Heller Chairman,
Non-Executive
Chief Executive
P. A. Davey
Sales
P. J. Davies
Application
Software Products
A. R. Heller
Non-Executive
C. R. Spicer
Network Services
J. M. Storey
Finance
Secretary
J. M. Storey
4th Floor, Fountain Precinct
Balm Green
Sheffield S1 2JA
Auditor
KPMG LLP
Chartered Accountants
1 The Embankment
Neville Street
Leeds LS1 4DW
Bankers
HSBC Bank plc
Corporate Finance
125 Colmore Row
Birmingham B3 3SD
Interim results
May 2015
Stockbrokers
Westhouse Securities Ltd
Heron Tower
110 Bishopsgate
London EC2N 4AY
Registrars and transfer office
Capita Asset Services
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Notice of meeting
Registered office
Financial Calendar
Annual General Meeting
24 March 2015
Financial statements
J. H. Wassell
Financial advisers
BDO LLP
Telephone
0871 664 0300
(calls cost 10p per minute + network extras,
lines are open 8.30am–5.30pm Mon–Fri)
+44 208 639 3399
for overseas callers
Website
www.capitaassetservices.com
E-mail
shareholderenquiries@capita.co.uk
Carmel House
49–63 Fargate
Sheffield S1 2HD
Solicitors
Irwin Mitchell LLP
Riverside East
2 Millsands
Sheffield S3 8DT
Wake Smith LLP
68 Clarkehouse Road
Sheffield S10 2LJ
Electronic Data Processing PLC Annual Report and Accounts 2014
9
Directors’ Report
The Directors present their annual report and financial statements for the year ended 30 September 2014.
Future developments and going concern
An indication of future developments in the Group’s business is given in the Strategic Report and is incorporated in this Directors’ Report
by reference. A review of the impact of the current economic environment on the going concern assumption is given in the Corporate
Governance Report.
Financial statements and results
The Group financial statements for the period under review have been prepared under International Financial Reporting Standards
as adopted by the EU. The Parent Company financial statements have been prepared under UK GAAP.
The Group income statement for the year to 30 September 2014 is shown on page 26. The Group profit for the year before taxation
amounted to £401,000 (2013: £794,000), with turnover of £5,508,000 (2013: £5,827,000).
After a tax credit of £3,000 (2013: charge of £207,000), the profit for the year attributable to equity shareholders was £404,000 (2013: £587,000).
Dividends
A special interim dividend of 3.0p per share was paid on 1 August 2014. The Directors propose the payment of a final dividend of 2.0p per share,
making a total of 5.0p per share (2013: 7.0p).
Subject to shareholders’ approval, the final dividend will be paid on 7 April 2015 to shareholders whose names appear on the register
at close of business on 6 March 2015.
Share capital
Details of the issued share capital and the rights attaching to those shares are contained in note 21 to the financial statements. The Company
holds 1,173,097 ordinary shares in treasury which were purchased by the Company in a previous financial year and represent 9.3% of the
called up share capital.
At the forthcoming Annual General Meeting, further to the ordinary business to be dealt with, the following resolutions will be considered:
An Ordinary Resolution will be proposed to give the Directors authority to allot ordinary shares representing 33 1/3% of the issued share
capital of the Company. In addition a Special Resolution will be proposed to disapply the statutory pre-emption provisions of Section 561
of the Companies Act 2006 in respect of any rights issues and for cash issues up to an amount of 5% of the issued share capital
of the Company.
The Directors consider that it would be advantageous for the Company to be in a position to purchase its own ordinary shares. Accordingly,
a Special Resolution will be proposed at the Annual General Meeting to renew the existing authority to purchase up to 10% of the issued
share capital of the Company. The Directors intend to seek to renew the authority at each subsequent Annual General Meeting.
Directors
The Directors at the date of this report, all of whom served throughout the year, are shown on page 9.
The Directors retiring by rotation are Mr A. R. Heller and Mr P. J. Davies and, being eligible, offer themselves for re-election.
Paul Davies has a service contract with the Company, dated 13 May 2008, which operates on a continuous basis and is terminable
on six months’ notice.
Andrew Heller does not have a service contract with the Company.
Andrew Heller was appointed to the Board as a Non-Executive Director in 2009. He is a Chartered Accountant and Managing Director
of Bisichi Mining PLC, a listed mining company.
Paul Davies has been a Director since 2001. He joined BML (Office Computers) Ltd in 1984, prior to its acquisition by the Group in 1995.
Previously Paul worked in IT within the distribution sector for a number of years.
Details of Directors’ interests in shares and share options are given in the Directors’ Remuneration Report on pages 16 to 21. There were
no changes in the Directors’ interests in shares or share options up to 16 December 2014. There were no contracts of significance
subsisting during or at the end of the financial year in which a Director of the Company is or was materially interested.
10
Electronic Data Processing PLC Annual Report and Accounts 2014
Strategic report
Substantial shareholdings
At 16 December 2014 the only institutions or persons to have notified the Company of holdings of 3% or more are Sir Michael Heller (28.30%),
Boyles Fund I, LP (17.04%), Olesen Value Fund, LP (3.03%) and Ewing Morris & Co. Investment Partners Ltd (3.37%).
Greenhouse gas emissions
Details of the Group’s emissions of greenhouse gases are given in the Strategic Report on page 8.
Governance
Research and development
Group policy is to invest in product innovation and improvement at a level designed to enable it to retain and enhance its market position.
Corporate governance
Corporate governance disclosures required to be included in the Directors’ Report can be found in the Corporate Governance Report
on pages 12 to 14.
Directors’ statement as to disclosure of information to auditor
The Directors who were members of the Board on the date the Directors’ Report was approved have confirmed the following:
•to the best of each Director’s knowledge and belief there is no information relevant to their report of which the auditor is unaware; and
•each Director has taken all the steps a Director might reasonably be expected to take to be aware of relevant audit information
and to establish that it has been communicated to the auditor.
Financial statements
Auditor
In accordance with Section 489 of the Companies Act 2006, a resolution for the re-appointment of KPMG LLP as auditor of the Company
is to be proposed at the forthcoming Annual General Meeting.
Responsibility statement of the Directors in respect of the annual financial report
We confirm that to the best of our knowledge:
•the annual report and financial statements, taken as a whole, provides the information necessary to assess the Company’s performance,
business model and strategy and is fair, balanced and understandable; and
•the Strategic Report includes a fair review of the development and performance of the business and the position of the Issuer and the
undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.
The Directors are shown on page 9.
By order of the Board
J. M. Storey
Director
16 December 2014
Electronic Data Processing PLC Annual Report and Accounts 2014
11
Notice of meeting
•the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets,
liabilities, financial position and profit of the Company and the undertakings included in the consolidation as a whole;
Corporate Governance
The Group is committed to high standards of corporate governance appropriate to its size and structure. The Board recognises its responsibility
to the Company’s shareholders for good corporate governance and in doing so has given careful consideration to the principles of the UK
Corporate Governance Code (the “Code”) (September 2012 edition) as set out below. The Board acknowledges its responsibility for ensuring
that the annual report and accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for
shareholders to assess the Company’s performance, business model and strategy.
Board structure and meetings
During the year under review the Board of Directors comprised five Executive Directors and two Non-Executive Directors.
The Non-Executive Chairman is responsible for the overall leadership of the Board and ensuring its effectiveness on all aspects of its role.
The Board is responsible for overall strategy and consideration of significant financial and operational matters including the identification
and assessment of the risks the Company faces. The Non-Executive Directors are encouraged to constructively challenge the Executive
Directors and help develop proposals on strategy.
In addition to his role as Non-Executive Chairman of the Company, Sir Michael Heller is Executive Chairman of London & Associated
Properties PLC and Bisichi Mining PLC, both of which are listed on the London Stock Exchange.
The Board met on five occasions during the year and has met on one occasion since the year end. All Directors attended the five Board
meetings held during the year with the exception of A. R. Heller who attended four.
In addition the Executive Directors met on five further occasions during the year. The meetings were attended by all Executive Directors.
These meetings allow prompt decision making and assist in the control of strategic, financial and operational issues. To enable them
to carry out their responsibilities, all Directors have full and timely access to all relevant information.
Directors are able to seek independent advice at the expense of the Company.
Internal control
The Directors are responsible for establishing and maintaining the Group’s system of internal control and have a process, which is updated
when required, for reviewing its effectiveness. Such a system is designed to manage rather than eliminate the risk of failure to achieve
business objectives and can provide reasonable, but not absolute, assurance against material misstatement or loss.
There is an organisational structure in place, with clearly defined lines of responsibility and delegated authority, which is incorporated
within the Group’s policy and procedure directives.
Board approval is required for a number of matters, the most significant of which are:
•published financial statements;
•acquisitions policy; and
•dividend policy.
The following matters require the approval of the Executive Directors:
•capital expenditure and disposals;
•treasury procedures and investment policy; and
•banking arrangements.
There is an ongoing process for identifying, evaluating and managing the significant risks faced by the Company, which has been in place
for the year under review and up to the date of the approval of the annual report and accounts. This is regularly reviewed by the Board
of Directors and accords with the revised Turnbull guidance.
A detailed budget is prepared covering all of the Group’s operations. This budget is reviewed and approved by the Board. Detailed monthly
management accounts are prepared on a timely basis comparing actual performance of the Group with budget and prior year. Any significant
variances are investigated and appropriate action taken. Management reports are produced regularly and include information on sales,
gross profit, overheads, cumulative performance, cash flow and treasury matters.
The Board has reviewed the effectiveness of the Group’s system of internal controls during the period. Together with senior management,
the Board has identified, evaluated and managed the significant risks facing the Group.
The Board will amend the specific control procedures which are put in place to reduce these risks whenever appropriate in order to meet
the demands imposed by the business sector in which the Group operates.
12
Electronic Data Processing PLC Annual Report and Accounts 2014
Strategic report
Audit committee
A description of the composition and activities of the audit committee is given in the Audit Committee Report on page 15.
The remuneration committee is responsible for determining the remuneration packages and other terms and conditions for the Executive
Directors. Mr J. H. Wassell is not involved in determining his own remuneration. The Non-Executive Directors serving on the remuneration
committee are not involved in determining their own individual remuneration. Individual Director’s remuneration is detailed in the
Directors’ Remuneration Report. The remuneration committee held one meeting during the year and was attended by all members.
The Board does not have a formal policy on diversity. Appointments to the Board are recommended by the nomination committee
on the basis of the experience and abilities of the candidate, regardless of gender or race.
Going concern
The Group’s business activities, together with the factors likely to affect its future development, performance and position along with the
financial position of the Group, its cash flows and liquidity position, are described in the Strategic Report on pages 1 to 8. In addition note
18 to the financial statements includes details of the Group’s financial instruments and its exposures to credit risk and liquidity risk.
Notice of meeting
The Group has considerable financial resources together with a significant proportion of the Group’s revenues being derived from
long-term contracts with established customers. As a consequence, the Directors believe that the Group is well placed to manage
its business risks successfully.
After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to
continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing
the annual report and accounts.
Share capital
Details of the Company’s share capital structure are given in the Directors’ Report and in note 21 to these financial statements.
Internal audit
The Board reviews from time to time whether there is a need for an internal audit function and on its last review concluded that,
due to the size of the Group and the internal controls that are currently in place, no specific function is required at the present time.
Investor relations
The Group enters into dialogue with both institutional and private shareholders at the AGM and also on an ad-hoc basis during the year.
All Directors are required to attend the AGM in order, among other things, to ensure they develop an understanding of the views of the
Company’s shareholders. A separate resolution is held for each issue at the AGM.
It is the Directors’ intention that all shareholders will receive at least 20 working days’ notice of the AGM.
The Group publishes its annual report and accounts and interim report along with other information on its website at www.edp.co.uk.
Electronic Data Processing PLC Annual Report and Accounts 2014
Financial statements
Nomination committee
The nomination committee comprises Sir Michael Heller, Mr A. R. Heller and Mr J. H. Wassell. The committee is responsible for proposing
candidates for appointment to the Board, having regard to the balance of skills, experience and knowledge of the Company on the Board,
how the Board works together as a unit and other factors relevant to its effectiveness. The committee did not formally meet during the
year as the current composition of the Board is considered by the committee to be appropriate. The Board consider the structure of the
committee to be appropriate given the size of the Company. All Directors are subject to re-election at a maximum of every three years.
Governance
Remuneration committee
The remuneration committee comprises Sir Michael Heller, Mr A. R. Heller and Mr J. H. Wassell. The Board considers the structure
of the remuneration committee to be appropriate given the size of the Company.
13
Corporate Governance continued
Compliance
The Group complied with the provisions of the Code throughout the period under review other than as detailed below:
(a)The Group’s Non-Executive Directors have not been appointed for specified terms. The Board considers that because of the
requirement for the Non-Executive Directors to stand for re-election at least every three years, specified terms are not required.
The Code prescribes that Non-Executive Directors should be appointed for specified terms (B.2.3).
(b)The Board is aware that the two Non-Executive Directors are not regarded as independent for the purposes of the Code. As a result
there is no senior independent Non-Executive Director and the Company therefore does not apply Code provisions A.4.1 and A.4.2.
The Board considers that the structure of the Board is appropriate for the size and complexity of the Company.
(c)The Board considers that it is appropriate to operate a continual, informal evaluation process given the size and complexity of the Company.
The Code prescribes that the Board should state in the annual report how the performance evaluation of the Board, its committees
and its individual Directors has been conducted (B.6.1).
(d)The audit committee and remuneration committee are both chaired by the Non-Executive Chairman and as a result the Company does
not fully comply with Code provisions C.3.1 and D.2.1. The nomination committee has no independent Non-Executive Directors serving
on it and consequently the Company does not comply fully with provision B.2.1. The Board considers that the structure of the Board
committees is appropriate for the size and complexity of the Company.
(e)The Non-Executive Chairman, who has served on the Board for over nine years, stands for election every three years rather than every
year as prescribed by provision B.7.1. The Board considers this is appropriate given the Company’s size and complexity.
By order of the Board
J. M. Storey
Director
16 December 2014
14
Electronic Data Processing PLC Annual Report and Accounts 2014
Audit Committee Report
Strategic report
The audit committee comprises the two Non-Executive Directors, Sir Michael Heller and Andrew Heller, both of whom are Chartered
Accountants. The Board considers the structure of the audit committee to be appropriate considering the size and complexity of the Group.
The committee’s terms of reference, which have been approved by the Board, are available on request from the company secretary.
Governance
The main responsibilities of the audit committee are:
•to monitor the adequacy of the Group’s internal financial controls;
•to take primary responsibility for appointing and re-appointing auditors;
•to review and monitor the scope, results and cost effectiveness of the external audit process;
•to monitor the procedures in place to safeguard the objectivity of the auditor and its independence in relation to non-audit services;
•to review the key assumptions and estimates or judgements that have been applied by management in the published financial
statements; and
The audit committee meets three times during the year. Meetings are held prior to publication of the annual results and half-year results.
A meeting is also held just after the year end to review, among other things, the significant judgements and estimates made by management
in preparing the financial statements. During this meeting the external auditor presents its strategy document. Both members of the
committee, along with the Chief Executive and Finance Director, attended all meetings. The external auditor attended two meetings.
The committee has concluded that given the size and complexity of the Group there is no current need for an internal audit function.
The committee has considered the following significant accounting issues and areas of estimation and judgement in relation to these
financial statements:
Financial statements
•to consider the need for an internal audit function.
•We considered the accounting policy, as presented by the Finance Director in a paper prepared for the committee, relating to recognition
of revenue and whether the established policy was still appropriate for the business. We were content that the current policy was still
appropriate. We were satisfied that the Group’s internal controls for ensuring that revenues were allocated to the correct period were effective.
•We considered the approach taken by management in updating the key assumptions used in the valuation of the Group’s defined benefit
pension scheme, following guidance from the independent scheme actuary, and were content that the approach was appropriate.
•We considered the processes put in place by management, as presented by the Finance Director in a paper prepared for the committee,
for the identification and recording of expenditure on software development which is capitalised and amortised under IAS 38. We were
satisfied that these processes were appropriate.
The committee has considered the effectiveness and quality of the external audit process. A key element of this is a review of the auditor’s
formal Audit Strategy Document which is presented to the committee prior to the commencement of the annual audit. This document
highlights to the committee the auditor’s assessment of audit materiality and the key audit focus areas. It also includes a formal
assessment of the auditor’s independence.
The Group’s auditors, KPMG LLP, and their legacy predecessors, have been in place since 1965. In line with the audit profession’s own
ethical guidance the audit engagement partner is rotated every five years. The committee has considered whether it is appropriate
to put the external audit contract out to tender. It has concluded that currently there is no requirement to conduct a tender process.
The committee has also reviewed the procedures that are in place to safeguard the objectivity of the auditor and its independence in relation
to non-audit services. The auditor is excluded from undertaking a range of work on behalf of the Group which includes appraisal or valuation
services, management functions, litigation support and accounting and remuneration services. An analysis of the fees paid to the auditor
in respect of non-audit work is shown in note 5, of which most relates to the preparation and submission of the Group’s corporation tax
computations. Auditor independence is safeguarded by ensuring that the auditor is not involved in the preparation of the current and
deferred tax provisions for the financial statements.
Sir Michael Heller
Chairman – Audit Committee
16 December 2014
Electronic Data Processing PLC Annual Report and Accounts 2014
15
Notice of meeting
•We considered the judgements made by management in the year end valuation of the Group’s freehold properties, in particular those
properties which were being marketed for sale. We were content that management’s estimate of residual values reflected the currently
available market evidence. We considered management’s judgement that the property formerly held as a current asset no longer met
the definition for classification as a current asset in the light of the current status of offers on the property.
Directors’ Remuneration Report
Remuneration Committee Chairman’s Statement
I am pleased to present the Directors’ Remuneration Report for the year ended 30 September 2014.
The Directors’ Remuneration Policy, which became effective on 1 October 2014, was approved by shareholders at the Company’s
Annual General Meeting (AGM) on 27 March 2014. Of those shareholders who voted on this resolution, some 99.98% voted in favour
of the policy. The policy will apply for the period commencing 1 October 2014 until the 2017 AGM unless approval for a change in the policy
is sought during this time. As described in the Policy Report, the remuneration committee concluded that the pre-existing arrangements
for remunerating the Executive Directors were an appropriate basis for framing the new policy and will be implemented accordingly.
As we will not be proposing a resolution to approve the Directors’ remuneration policy at the forthcoming AGM, and in accordance with
The Large and Medium-sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013, we have not included
a separate Directors’ Remuneration Policy Report within this Remuneration Report. A copy of the current Directors’ remuneration policy,
which can be found on pages 20 to 25 of the Group’s 2013 annual report and accounts, is on the Company’s website, www.edp.co.uk,
or can be obtained by writing to the Company Secretary.
The arrangements that were in place in the year for remunerating the Directors were substantially the same as those that have been put
in place from 1 October 2014. The remuneration committee has used its discretion not to award the Executive Directors a bonus this year.
During the year the pension arrangements that were in place for one Director, C. R. Spicer, were amended. Until 31 August 2014 Mr Spicer
was an active member of the Group’s defined benefit scheme. Following a consultation process with affected members, the scheme was closed
to future accrual on 31 August 2014 and from that date Mr Spicer will accrue no further benefits in the scheme. From 1 September 2014
Mr Spicer became a member of the Group’s defined contribution scheme. The Group will contribute to this scheme at the rates reported
in the current Directors’ remuneration policy.
Sir Michael Heller
Chairman – Remuneration Committee
16 December 2014
16
Electronic Data Processing PLC Annual Report and Accounts 2014
Strategic report
Annual Report on Remuneration
Audited information
Single figure for total remuneration
The remuneration received by the Directors who served during the year is set out below:
Notional value
of vesting
share options
£
Total
£
Salary
£
Benefits
£
95,000
76,000
76,000
76,000
70,750
11,871
13,772
13,206
12,791
8,514
—
—
—
—
—
6,650
5,320
5,320
9,691
4,953
113,521
95,092
94,526
98,482
84,217
—
—
—
—
—
113,521
95,092
94,526
98,482
84,217
50,000
10,000
12,684
—
—
—
—
—
62,684
10,000
—
—
62,684
10,000
453,750
72,838
—
31,934
558,522
—
558,522
Salary
£
Benefits
£
Bonus and
commission
£
Pension
£
Total before
share options
£
Notional value
of vesting
share options
£
Total
£
95,000
76,000
76,000
76,000
67,000
11,333
12,932
12,406
11,911
7,690
24,300
19,230
18,900
18,900
12,000
6,650
5,320
5,320
19,039
4,690
137,283
113,482
112,626
125,850
91,380
44,100
22,050
22,050
22,050
11,025
181,383
135,532
134,676
147,900
102,405
42,500
10,000
15,573
—
—
—
—
—
58,073
10,000
—
—
58,073
10,000
442,500
71,845
93,330
41,019
648,694
121,275
769,969
Financial statements
Executive
J. H. Wassell
P. A. Davey
P. J. Davies
C. R. Spicer
J. M. Storey
Non-Executive
Sir Michael Heller
A. R. Heller
Pension
£
Total before
share options
£
Bonus and
commission
£
Governance
2014
2013
Benefits comprise company car, private fuel, private healthcare and telephone costs.
All outstanding share options were granted on 30 September 2010 and vested on 30 September 2013.
The notional value of the share options vesting is calculated by multiplying the total number of options by the closing middle market price
of EDP shares at the date on which the shares vest and deducting the cash amount that the individual would be required to pay should
they exercise their option to acquire the shares.
Electronic Data Processing PLC Annual Report and Accounts 2014
17
Notice of meeting
Executive
J. H. Wassell
P. A. Davey
P. J. Davies
C. R. Spicer
J. M. Storey
Non-Executive
Sir Michael Heller
A. R. Heller
Directors’ Remuneration Report continued
Annual Report on Remuneration continued
Audited information continued
Directors’ pension entitlements
Details of the pension entitlements of the Director who participates in the Group’s defined benefit pension scheme are as follows:
C. R. Spicer
Current service period
Deferred benefits from a prior service period
Normal retirement date
Accrued
pension
entitlement at
30 September
2014
£
Accrued
pension
entitlement at
30 September
2013
£
30 September 2018
30 September 2018
18,861
12,849
17,775
12,511
31,710
30,286
No additional benefit is expected under the scheme rules on early retirement before normal retirement date.
The scheme closed to future accrual with effect from 31 August 2014 and C. R. Spicer became a deferred member from that date.
From 1 September 2014 C. R. Spicer became a member of the Group’s money purchase pension scheme with the Group contributing
13% of pensionable salary for three years. Thereafter the Group’s contribution will be 3% of pensionable salary.
The other Executive Directors are members of money purchase personal pension schemes and are entitled to have contributions paid
in by the Group at the rate of 7% of pensionable salary.
Directors’ shareholding and share interests
Directors’ interests in the issued share capital of the Company at 30 September 2014 and 30 September 2013 were as follows:
Number of shares
2014
Beneficial
Sir Michael Heller
J. H. Wassell
P. A. Davey
P. J. Davies
A. R. Heller
C. R. Spicer
J. M. Storey
* Includes 407,750 shares in which Mr A. R. Heller has a non-beneficial interest.
18
Electronic Data Processing PLC Annual Report and Accounts 2014
2,571,050
95,000
14,000
13,000
—
1,000
5,000
2013
Non-beneficial
997,500*
—
—
—
407,750
—
—
Beneficial
2,571,050
15,000
14,000
13,000
—
1,000
5,000
Non-beneficial
997,500*
—
—
—
407,750
—
—
Strategic report
Number of options
1 October
2013
Granted
in year
45.5p
45.5p
45.5p
45.5p
45.5p
180,000
90,000
90,000
90,000
45,000
—
—
—
—
—
495,000
—
Exercised
in year
30 September
2014
Exercisable
from
Exercisable
to
(80,000)
—
—
—
—
100,000
90,000
90,000
90,000
45,000
30/09/2013
30/09/2013
30/09/2013
30/09/2013
30/09/2013
29/09/2020
29/09/2020
29/09/2020
29/09/2020
29/09/2020
(80,000)
415,000
None of the Executive Directors were awarded interests in the share option plan during the year and therefore no separate table of scheme
interests awarded during the financial year has been presented. There are no other schemes in operation.
All share options had a grant date of 30 September 2010. None of the share options are subject to performance measures.
The middle market price of Electronic Data Processing PLC ordinary shares at 30 September 2014 was 76.5p. During the year the share
price ranged between 67.0p and 86.5p.
250
Notice of meeting
Unaudited information
Performance graph
The following graph shows the Group’s performance, measured by total shareholder return, compared with the FTSE Small Cap index
since 1 October 2009. The Directors have chosen this index as it gives an indication of performance compared against a large spread
of smaller quoted companies.
— FTSE Small Cap
— Electronic Data Processing PLC
200
150
100
50
0
2009
2010
2011
2012
2013
2014
The vertical axis represents an index where holdings of shares in both EDP and a representative holding of shares in the FTSE Small Cap index
are based at 100 on 1 October 2009.
Electronic Data Processing PLC Annual Report and Accounts 2014
Financial statements
J. H. Wassell
P. A. Davey
P. J. Davies
C. R. Spicer
J. M. Storey
Exercise
price
Governance
Annual Report on Remuneration continued
Audited information continued
Directors’ shareholding and share interests continued
Details of options granted to Directors who served during the year under the Company’s Enterprise Management Incentive Share Option
plan are as follows:
19
Directors’ Remuneration Report continued
Annual Report on Remuneration continued
Unaudited information continued
Chief Executive remuneration
The remuneration of the Chief Executive, J. H. Wassell, since 2009 is shown below:
Total remuneration
2009
£
2010
£
2011
£
2012
£
121,800
135,155
139,196
138,477
2013
£
181,383*
2014
£
113,521
* The total remuneration figure for 2013 includes £44,100 in respect of the notional value of share options vesting in the period.
With regard to the maximum bonus that could have been awarded in 2014, this is not set by individual Executive Director. The total amount
of bonus awarded to the Executive Directors is ordinarily set at 10% of the Group’s adjusted operating profit for the year. This is therefore
also the maximum bonus that can be awarded to the Executive Directors collectively. The allocation between individual Directors
is decided on an annual basis taking into account individual and collective performance and level of experience as a Director.
The bonus is awarded at the discretion of the remuneration committee. For the year ended 30 September 2014 no bonus has been
awarded to the Executive Directors.
The share options that vested in 2013 represented 100% of the total number that could have vested in that year.
The percentage change in the remuneration of J. H. Wassell compared to that of all employees of the Group as a whole is shown below:
J. H. Wassell
All employees
Salary
Benefits
0.0%
0.0%
4.7%
0.0%
Bonus
(100.0%)
*
* The bonus scheme is applicable to Executive Directors only.
The salaries of all Group employees excluding the Directors are reviewed on 1 November each year. At the 1 November 2013 review date
employee salaries were not changed.
In addition individual employee salaries are reviewed in cases of increased responsibility, greater experience or exceptional performance.
The salaries of the Executive Directors are reviewed on 1 December each year. At the 1 December 2013 review date the Directors’ salaries
did not change with the exception of J. M. Storey whose annual salary increased by 6.7%.
Relative importance of spend on pay
The total expenditure of the Group on remuneration to all employees compared to distributions to shareholders is shown below:
Employee remuneration
2014
£’000
2013
£’000
2,987
3,100
Distributions to shareholders
Ordinary dividends
Special dividends
252
379
251
626
Total
631
877
20
Electronic Data Processing PLC Annual Report and Accounts 2014
Strategic report
Annual Report on Remuneration continued
Unaudited information continued
Shareholder voting
Details of the votes of shareholders at the Company’s AGM on 27 March 2014 relating to remuneration are shown below:
%
of votes
against
Number
of votes
withheld
99.98%
99.98%
0.02%
0.02%
—
—
Governance
Resolution to approve the Directors’ Remuneration Report
Resolution to approve the future Directors’ Remuneration Policy
%
of votes
for
The Directors’ Remuneration Report was approved by the Board and signed on its behalf by:
Financial statements
Sir Michael Heller
Director
16 December 2014
Notice of meeting
Electronic Data Processing PLC Annual Report and Accounts 2014
21
Statement of Directors’ Responsibilities
in respect of the annual report and the financial statements
The Directors are responsible for preparing the annual report and the Group and Parent Company financial statements in accordance
with applicable law and regulations.
Company law requires the Directors to prepare Group and Parent Company financial statements for each financial year. Under that law
they are required to prepare the Group financial statements in accordance with IFRS as adopted by the EU and applicable law and have
elected to prepare the Parent Company financial statements in accordance with UK Accounting Standards.
Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view
of the state of affairs of the Group and Parent Company and of their profit or loss for that period. In preparing each of the Group and Parent
Company financial statements, the Directors are required to:
•select suitable accounting policies and then apply them consistently;
•make judgements and estimates that are reasonable and prudent;
•for the Group financial statements, state whether they have been prepared in accordance with IFRSs as adopted by the EU;
•for the Parent Company financial statements, state whether applicable UK Accounting Standards have been followed, subject to any
material departures disclosed and explained in the Parent Company financial statements; and
•prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and the Parent
Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Parent Company’s
transactions and disclose with reasonable accuracy at any time the financial position of the Parent Company and enable them to ensure
that its financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably
open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, Directors’ Report, Directors’
Remuneration Report and Corporate Governance Statement that comply with that law and those regulations.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website.
Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
22
Electronic Data Processing PLC Annual Report and Accounts 2014
Independent Auditor’s Report
Strategic report
to the members of Electronic Data Processing PLC only
Opinions and conclusions arising from our audit
1. Our opinion on the financial statements is unmodified
We have audited the financial statements of Electronic Data Processing PLC for the year ended 30 September 2014 set out on pages
26 to 55. In our opinion:
•the Group financial statements have been properly prepared in accordance with International Financial Reporting Standards as adopted
by the European Union;
Governance
•the financial statements give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at 30 September 2014
and of the Group’s profit for the year then ended;
•the Parent Company financial statements have been properly prepared in accordance with UK Accounting Standards; and
•the financial statements have been prepared in accordance with the requirements of the Companies Act 2006 and, as regards the Group
financial statements, Article 4 of the IAS Regulation.
Revenue recognition (revenue £5,508,000; deferred income £1,931,000)
Refer to page 15 (Audit Committee Report), page 32 (Accounting Policy) and page 40 (financial disclosures).
•The risk – The Group’s contracts with its customers involve the delivery of multiple services. Revenue recognition within the Group
requires the separate recognition of revenue for each service on an appropriate basis and the spreading of the revenue over the period
of service, resulting in significant deferred income balances. Although the contracts entered into by the Group are of limited complexity
and variety, there are a large number of transactions to be processed.
Financial statements
2. Our assessment of risks of material misstatement
In arriving at our audit opinion above on the financial statements the risks of material misstatement that had the greatest effect on our
audit were as follows:
•Our response – In this area our audit procedures included:
•testing of the design of controls over the allocation of revenue to separate components of the transaction and the allocation of
revenue across periods; and
•trend analysis on the amount of revenue and deferred revenue, the average life of customer contracts and the number of customers
and recalculation of the deferred revenue balances.
We also considered the adequacy of the Group’s disclosures in respect of amounts recognised as revenue and deferred revenue.
Defined benefit pension scheme (£1,975,000)
Refer to page 15 (Audit Committee Report), page 32 (Accounting Policy) and pages 42 to 44 (financial disclosures).
•The risk – The Group operates a defined benefit pension scheme. The closed scheme has an extremely small number of members
(in terms of active and deferred members, and also those currently receiving pensions). An assessment of the underlying valuation of
the scheme requires significant estimates to be applied, and, due to the small membership, a small change in certain of these estimates
could have a material effect on the Group’s results and financial position.
•Our response – In this area our audit procedures included comparing the Group’s assumptions to market data as well as, with the
support of our own actuarial specialist, our own assessments in relation to key inputs such as inflation rates, discount rates, increases
in pay, increases in pension payments, increases for deferred pensioners and, in particular, mortality rates. We also assessed the
adequacy of the Group’s disclosures in relation to the assumptions applied in determining the defined benefit liability.
Capitalised development costs (£277,000)
Refer to page 15 (Audit Committee Report), page 32 (Accounting Policy) and page 39 (financial disclosures).
•The risk – Software project development costs are required to be capitalised (and subsequently amortised) if they meet the criteria
of relevant accounting standards, which require, among other things, an assessment of the future out-turn of the project. These costs
are otherwise expensed as incurred. The capitalisation criteria are inherently judgmental and there is a risk that qualifying projects may
not be identified. There is also a risk that costs attributable to such projects may be misstated.
•Our response – Our audit procedures included analysis of the current year’s expensed costs to identify un-capitalised projects and
obtaining and corroborating, for example by reference to publicly available information, such as product and upgrade release dates, the
Group’s explanations for why such costs have not been capitalised. For qualifying projects we considered the Group’s assessment of
their future technical and financial prospects by reference to our knowledge of the Group’s business and our experience of the industry;
we re-performed the Group’s calculation of staff costs attributable to qualifying projects, and considered our analysis of un-capitalised
costs to identify any overlooked attributable costs. We also assessed the adequacy of the Group’s disclosures in respect of capitalised
development costs.
Electronic Data Processing PLC Annual Report and Accounts 2014
23
Notice of meeting
•consideration of the appropriateness and consistency of the Group’s approach to allocating revenue to each component of a
transaction. Where the Group determines the fair value of individual components by reference to costs incurred, this included making
an assessment of the level of costs incurred or to be incurred in comparison to prior periods. This included consideration of our sector
knowledge and in particular how similar companies recognise revenue across the lifetime of a software license contract;
Independent Auditor’s Report continued
to the members of Electronic Data Processing PLC only
Opinions and conclusions arising from our audit continued
2. Our assessment of risks of material misstatement continued
In our audit report for the year ended 31 December 2013 we included the valuation of property classified as held for sale as one of the
risks of material misstatement that had the greatest effect on our audit. We considered this risk to be less significant in the current year
as following a reclassification in the year to non-current assets as a result of changes in the Directors’ expectations of the probability
of disposal of the property, the Group no longer has any property classified as held for sale.
3. Our application of materiality and an overview of the scope of our audit
The materiality for the Group financial statements as a whole was set at £39,000, determined with reference to a benchmark of Group
profit before taxation (of which it represents 9.7%).
We report to the Audit Committee any corrected and uncorrected identified misstatements exceeding £2,000 in addition to other identified
misstatements that warranted reporting on qualitative grounds.
Audits for group reporting purposes were performed by the Group audit team at all 5 of the Group’s reporting components, all of which
are in the UK. These audits covered 100% of: total Group revenue, Group profit before taxation and total Group assets. Component
materiality levels were set individually for each component having regard to the mix of size and risk profile of the Group across the
components, and ranged from £11,200 to £27,000.
4. Our opinion on other matters prescribed by the Companies Act 2006 is unmodified
In our opinion:
•the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006; and
•the information given in the Strategic Report and the Directors’ Report for the financial year for which the financial statements are
prepared is consistent with the financial statements.
5. We have nothing to report in respect of matters on which we are required to report by exception
Under ISAs (UK and Ireland) we are required to report to you if, based on the knowledge we acquired during our audit, we have identified
other information in the annual report that contains a material inconsistency with either that knowledge or the financial statements, a material
misstatement of fact, or that is otherwise misleading.
In particular, we are required to report to you if:
•we have identified material inconsistencies between the knowledge we acquired during our audit and the Directors’ statement that
they consider that the annual report and financial statements taken as a whole is fair, balanced and understandable and provides
the information necessary for shareholders to assess the Group’s performance, business model and strategy; or
•the Audit Committee Report does not appropriately address matters communicated by us to the audit committee.
Under the Companies Act 2006 we are required to report to you if, in our opinion:
•adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received
from branches not visited by us; or
•the Parent Company financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement
with the accounting records and returns; or
•certain disclosures of Directors’ remuneration specified by law are not made; or
•we have not received all the information and explanations we require for our audit.
Under the Listing Rules we are required to review:
•the Directors’ statement, set out on page 13, in relation to going concern; and
•the part of the Corporate Governance Statement on pages 12 to 14 relating to the Company’s compliance with the nine provisions
of the 2010 UK Corporate Governance Code specified for our review.
We have nothing to report in respect of the above responsibilities.
24
Electronic Data Processing PLC Annual Report and Accounts 2014
Strategic report
Financial statements
David Morritt (Senior Statutory Auditor)
for and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
1 The Embankment
Neville Street
Leeds
LS1 4DW 16 December 2014
Governance
Scope and responsibilities
As explained more fully in the Directors’ Responsibilities Statement set out on page 22, the Directors are responsible for the preparation
of the financial statements and for being satisfied that they give a true and fair view. A description of the scope of an audit of financial
statements is provided on the Financial Reporting Council’s website at www.frc.org.uk/auditscopeukprivate. This report is made solely
to the Company’s members as a body and is subject to important explanations and disclaimers regarding our responsibilities, published
on our website at www.kpmg.com/uk/auditscopeukco2014a, which are incorporated into this report as if set out in full and should be read
to provide an understanding of the purpose of this report, the work we have undertaken and the basis of our opinions.
Notice of meeting
Electronic Data Processing PLC Annual Report and Accounts 2014
25
Consolidated Income Statement
for the year ended 30 September 2014
Note
2014
£’000
2013
£’000
3
5,508
5,827
Revenue
Gross profit
5,074
5,419
Administrative expenses
(4,719)
(4,710)
Operating profit
355
709
Finance income
46
85
Profit before tax
401
794
3
(207)
404
587
Income tax credit/(expense)
4
7
Profit for the period attributable to equity holders of the parent
Earnings per share
– Basic
8
3.21p
4.68p
– Diluted
8
3.16p
4.63p
2014
£’000
2013
£’000
404
587
Consolidated Statement of Comprehensive Income
for the year ended 30 September 2014
Profit for the period
Other comprehensive income
Items that will not be reclassified to profit or loss:
Remeasurement (losses)/gains on defined benefit pension scheme
(774)
169
Income tax on other comprehensive income
155
(32)
Other comprehensive income for the period, net of tax
(619)
137
Total comprehensive income for the period attributable to equity holders of the parent
(215)
724
26
Electronic Data Processing PLC Annual Report and Accounts 2014
Consolidated Balance Sheet
Strategic report
at 30 September 2014
Note
2014
£’000
2013
£’000
Property, plant and equipment
10
3,097
1,743
Deferred tax asset
20
395
209
Intangible assets
11
356
322
3,848
2,274
67
81
Non-current assets
Governance
Current assets
12
Trade and other receivables
13
1,546
1,537
Cash and cash equivalents
14
4,984
5,667
Assets held for sale
15
—
1,423
6,597
8,708
10,445
10,982
Total assets
Financial statements
Inventories
Current liabilities
Deferred income
16
Trade and other payables
17
(1,914)
(2,291)
(16)
(177)
(1,068)
(1,195)
(2,998)
(3,663)
Non-current liabilities
Deferred income
16
(17)
(57)
Employee benefits
19
(1,975)
(1,044)
Deferred tax liability
20
(113)
(70)
(2,105)
(1,171)
Total liabilities
(5,103)
(4,834)
Net assets
5,342
6,148
Equity
Share capital
689
689
Share premium
21
119
119
Capital redemption reserve
625
625
(587)
(627)
Treasury shares
21
Retained earnings
4,496
5,342
Total equity attributable to equity holders of the parent
5,342
6,148
These financial statements were approved by the Board of Directors on 16 December 2014 and were signed on its behalf by:
Sir Michael Heller
Directors
Julian Wassell
Electronic Data Processing PLC, registered number 853560
Electronic Data Processing PLC Annual Report and Accounts 2014
27
Notice of meeting
Income tax payable
Consolidated Statement of Changes in Equity
for the year ended 30 September 2014
Share
capital
£’000
Share
premium
£’000
Capital
redemption
reserve
£’000
689
119
625
—
—
– remeasurement gain on defined benefit pension
scheme net of tax
—
Total comprehensive income
Retained
earnings
£’000
Total
£’000
(627)
5,464
6,270
—
—
587
587
—
—
—
137
137
—
—
—
—
724
724
– share-based payment transactions
—
—
—
—
9
9
– deferred tax on share-based
payment transactions
—
—
—
—
22
22
– dividends paid
—
—
—
—
(877)
(877)
Total transactions with owners
—
—
—
—
(846)
(846)
689
119
625
(627)
5,342
6,148
Share
capital
£’000
Share
premium
£’000
Capital
redemption
reserve
£’000
Retained
earnings
£’000
Total
£’000
689
119
625
(627)
5,342
6,148
—
—
—
—
404
404
– remeasurement loss on defined benefit
pension scheme net of tax
—
—
—
—
(619)
(619)
Total comprehensive income
—
—
—
—
(215)
(215)
– share-based payment transactions
—
—
—
—
1
1
– deferred tax on share-based
payment transactions
—
—
—
—
2
2
– issue of shares out of treasury
—
—
—
40
(3)
37
– dividends paid
—
—
—
—
(631)
(631)
Total transactions with owners
—
—
—
40
(631)
(591)
689
119
625
4,496
5,342
Balance at 1 October 2012
Profit for the period
Treasury
shares
£’000
Other comprehensive income:
Transactions with owners:
Balance at 30 September 2013
Balance at 1 October 2013
Profit for the period
Treasury
shares
£’000
Other comprehensive income:
Transactions with owners:
Balance at 30 September 2014
28
Electronic Data Processing PLC Annual Report and Accounts 2014
(587)
Consolidated Cash Flow Statement
Strategic report
for the year ended 30 September 2014
2014
£’000
2013
£’000
404
587
Depreciation
248
193
Amortisation
126
158
—
2
Transfer of inventory (to)/from property, plant and equipment
(10)
5
Defined benefit pension charge net of employer contributions
157
93
Finance income
(46)
(85)
Income tax (credit)/expense
(3)
207
Change in inventories
14
Cash flows from operating activities
Adjustments for:
Net loss on disposal of property, plant and equipment
(11)
1
Change in payables
(127)
(116)
Change in deferred income
(417)
(162)
Equity settled share-based payment transactions
9
336
890
48
98
Income taxes paid
(144)
(173)
Net cash from operating activities
240
815
(176)
(235)
Purchase of intangible assets
(81)
(6)
Development expenditure
(79)
(118)
7
440
Cash received from operations
Interest received
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Net cash (used in)/generated by investing activities
(329)
81
37
—
Cash flows from financing activities
Issue of shares out of treasury
Dividends paid
(631)
(877)
Net cash used in financing activities
(594)
(877)
Net (decrease)/increase in cash and cash equivalents
(683)
19
Cash and cash equivalents at beginning of period
5,667
5,648
Cash and cash equivalents at end of period (note 14)
4,984
5,667
Electronic Data Processing PLC Annual Report and Accounts 2014
29
Notice of meeting
1
Financial statements
Change in receivables
(2)
Governance
Profit for the period
Notes to the Consolidated Financial Statements
(forming part of the financial statements)
1. Reporting entity
Electronic Data Processing PLC is a public limited company listed on the London Stock Exchange and incorporated and domiciled in England.
The principal activity of the Company is the provision of computer software solutions.
The address of the Company’s registered office is 4th Floor, Fountain Precinct, Balm Green, Sheffield S1 2JA.
Statement of compliance
The Group’s financial statements have been prepared and approved by the Directors in accordance with International Financial Reporting
Standards as adopted by the EU (“adopted IFRS”) as they apply to the financial statements of the Group for the year ended 30 September
2014 and applied in accordance with the provisions of the Companies Act 2006. The principal accounting policies of the Group are set out
in note 2. The Company has elected to prepare its Parent Company financial statements in accordance with UK GAAP and these are presented
on pages 47 to 55. The Company is taking advantage of the exemption in s408 of the Companies Act 2006 not to present its individual
income statement and related notes.
2. Significant accounting policies
The significant accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented
in these Group financial statements.
Basis of preparation
The financial statements have been prepared in accordance with adopted IFRS and under the historical cost basis except as described
elsewhere in note 2.
Basis of consolidation
The consolidated financial statements incorporate the accounts of Electronic Data Processing PLC and all its subsidiaries. Such accounts
are all made up to 30 September 2014.
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating
policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable
are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that
control commences until the date that control passes. Intragroup balances, and any unrealised gains and losses or income and expenses
arising from intragroup transactions, are eliminated in preparing the consolidated financial statements.
Functional and presentational currency
The financial statements are presented in sterling, which is the Group’s presentational currency. The Parent Company’s functional currency
is sterling. All financial information presented in sterling has been rounded to the nearest thousand.
Foreign currency
Sales to overseas customers which are denominated in foreign currencies are translated into sterling at the exchange rate ruling at the date
of the transaction. Monetary assets resulting from sales denominated in foreign currencies at the balance sheet date are retranslated into
sterling at the exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the income statement.
Revenue
The Group’s revenues derive from a number of sources which are described below. All revenue excludes value added tax and any sales
between Group companies. Revenue relating to future periods is deferred. Revenue is recognised to the extent that it is probable the
economic benefits will flow to the Group and the revenue can be reliably measured.
The Group’s software revenues are broken down into initial licence fees, upfront hosting charges and recurring software usage charges.
Initial licence fees are recognised as revenue in full on delivery of the software following receipt of a non-cancellable contract as the Group
considers that at this point all of the significant risks and rewards of ownership of the licence have been transferred to the customer. Upfront
hosting charges are recognised as revenue on provision of access to the Group’s servers following receipt of a signed non-cancellable contract.
Recurring software usage charges and periodic hosting service charges are recognised evenly over the period to which they relate.
Other software related revenues are mainly from the provision of professional services including implementation, training and consultancy.
This revenue is recognised when the services have been performed. Sales of computer equipment are recognised on delivery to customers
and equipment maintenance charges are recognised evenly over the period to which they relate.
Property, plant and equipment
Property, plant and equipment is stated at cost or deemed cost less accumulated depreciation and impairment losses. Land is not
depreciated. The Directors assess the residual values and useful economic lives of the properties on an annual basis. Depreciation
is provided so as to write off the cost, or deemed cost, less the estimated residual value of each asset in equal instalments over its
estimated useful life from the time it becomes operational, at the following rates:
Freehold property
– 1 to 2%
Motor vehicles
– 20 to 33%
Fixtures, fittings and equipment
– 15 to 25%
30
Electronic Data Processing PLC Annual Report and Accounts 2014
Strategic report
Research and development
Expenditure on research activities, undertaken with the prospect of gaining new technical knowledge and understanding, is recognised
in the income statement as incurred.
Capitalised development expenditure is measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is based on the cost of an asset less its residual value. Capitalised software development costs are amortised over a period
of between five and seven years on a straight line basis and amortised from the time the asset becomes available for use.
Inventories
Inventories are valued at the lower of purchase cost and net realisable value.
Trade and other receivables
Trade receivables, which generally have terms of up to thirty days, are recognised and carried at original invoice amount less an allowance
for any uncollectable amounts. Provision is made where there is objective evidence that the Group will not be able to collect part or all of a debt.
Bad debts are written off as identified.
Assets held for sale
A non-current asset is classified as held for sale if, at the balance sheet date, its carrying value will be recovered principally through sale
rather than through continuing use, it is available for immediate sale and that sale is highly probable within one year. On initial classification
as held for sale, non-current assets are measured at the lower of previous carrying amount and fair value less costs to sell, with any adjustments
taken to the income statement. The same applies to gains and losses subsequent to re-measurement.
Leasing transactions
Operating lease rentals are charged to the income statement on a straight line basis over the period of the lease.
Deferred income
Deferred income represents that portion of licence fees, hosting charges and maintenance contracts taken out by customers but which
relate to a future period.
Taxes
Tax on the Group’s profit or loss for the period comprises current and deferred tax. Tax is recognised in the income statement except
to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance
sheet date, and any adjustments to tax payable in respect of prior years.
Deferred tax is provided on the temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation
or settlement of the carrying amounts of assets and liabilities using tax rates enacted or substantively enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset
can be utilised.
Electronic Data Processing PLC Annual Report and Accounts 2014
31
Notice of meeting
Cash and cash equivalents
Cash and cash equivalents at the balance sheet date comprise cash on hand and short-term deposits, net of bank overdrafts.
Financial statements
Development activities involve a plan or design for the production of new or substantially improved products and processes. Development
expenditure is capitalised only if development costs can be measured reliably, the product or process is technically and commercially
feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to
use or sell the asset. The expenditure capitalised includes the cost of materials, direct labour and overheads that are directly attributable
to preparing the asset for its intended use. Other development expenditure not meeting these criteria is recognised in the income
statement as incurred.
Governance
2. Significant accounting policies continued
Software intellectual property rights
Assets are initially carried at cost, including any incidental expenses of acquisition. Following initial recognition, they are carried at cost
less any accumulated amortisation and accumulated impairment losses. Software intellectual property rights are amortised over a period
of between four and ten years on a straight line basis and amortised from the time the software is brought into use.
Notes to the Consolidated Financial Statements continued
(forming part of the financial statements)
2. Significant accounting policies continued
Employee benefits – pensions
The Group operates both defined contribution and defined benefit pension schemes. The premiums relating to defined contribution
schemes are charged to the income statement in the period in which they accrue.
The Group’s net obligation in respect of its defined benefit pension scheme is calculated by estimating the amount of future benefit that
employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present
value, and the fair value of the scheme assets is deducted. The calculation is performed by a qualified actuary using the projected unit credit
method.
Remeasurement gains and losses arising from changes in actuarial assumptions, plan experience and differences between the expected
and actual return on plan assets are recognised in “other comprehensive income” in the statement of comprehensive income in the year
in which they occur.
All other movements in the pension asset or liability are recognised in the income statement for the relevant period.
Share-based payment transactions
The Company operates a share option scheme for certain employees. The fair value of the share options is calculated at the date of grant
using a Black-Scholes model. The fair value is then recognised as an employee expense on a straight line basis over the vesting period
with a corresponding increase in equity.
Equity
The nature and purpose of each reserve included within equity is as follows:
Share capital
The balance classified as share capital includes the nominal value on issue of the Company’s equity share capital, comprising 5p ordinary shares.
Share premium
The balance classified as share premium represents the premium paid on the issue of the Company’s equity share capital.
Capital redemption reserve
The balance classified as capital redemption reserve represents the nominal value of issued share capital repurchased by the Company.
Treasury shares
When share capital recognised as equity is repurchased, the amount of the consideration paid, which includes directly attributable costs,
net of any tax effects, is recognised as a deduction from equity. Repurchased shares classified as treasury shares are presented as a deduction
from equity. When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase in equity, and the
resulting surplus or deficit on the transaction is transferred to or from retained earnings.
Significant judgements and estimates
Judgements and estimates made by the Directors in the application of these accounting policies may have a significant effect on the financial
statements with a significant risk of material adjustment in the next year. The main areas of estimation and accounting judgement are:
Employee benefits
The calculation of the deficit or surplus on the Group’s defined benefit pension scheme is based on a number of actuarial assumptions
including discount rate, future rate of inflation and future changes in mortality rates. These assumptions are reviewed regularly by the
Directors with the scheme actuary.
Software intellectual property rights
The Group reviews annually the carrying value of assets to determine if there has been any impairment. These reviews require the use
of estimates of the future cash flows generated by the asset.
Freehold property valuation and classification
The Group’s freehold property is stated at cost or deemed cost less accumulated depreciation and impairment losses. The Directors
make judgements annually about the carrying value of freehold property and make estimates of residual values and useful economic lives.
They also apply judgement about the likely timing of future disposals when determining which of the Group’s vacant properties should be
re-classified as an asset held for sale.
Development costs
The Directors review annually the Group’s software development projects and assess which of those projects qualify for capitalisation
under IAS 38. An assessment is made of projects capitalised in prior periods to determine if there has been any impairment.
Revenue recognition
The key area of judgement in respect of revenue recognition is the timing of recognition of software licensing and hosting revenues
which involves assessing which revenues are recognised immediately and which are deferred and recognised over time.
32
Electronic Data Processing PLC Annual Report and Accounts 2014
Strategic report
2. Significant accounting policies continued
Financial risk management
The Group has exposure to the following risks from its use of financial instruments:
•credit risk;
Governance
•liquidity risk; and
•market risk.
This note presents material information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and
procedures for measuring and managing risk, and the Group’s management of capital. Further quantitative disclosures are included
throughout these financial statements.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual
obligations and arises principally from the Group’s receivables from customers and investments. The Group’s exposure to credit risk
is influenced mainly by the individual characteristics of each customer and also the markets in which they operate.
The Group is not exposed through a significant volume of sales transactions with any single customer. All new customers are reviewed
before the Group’s standard payment and delivery terms and conditions are offered. The Group establishes an allowance for impairment
that represents its estimate of incurred losses in respect of trade and other receivables on a line by line basis.
Financial statements
The Board of Directors has overall responsibility for the establishment and overseeing of the Group’s risk management framework. The Group’s
risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls,
and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market
conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a
disciplined and constructive control environment in which all employees understand their roles and obligations.
The Group limits its exposure to credit risk by only investing surplus cash in recognised UK-based banks.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange and interest rates, will affect the Group’s income or the
value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures
within acceptable parameters, while optimising the return.
The Group has a small number of customers based in the US who are invoiced in US dollars along with a small number of European-based
customers who are invoiced in euros. As these revenues represent approximately 1.6% of total turnover, the Group does not enter into
any hedging transactions. All other Group sales to overseas customers are denominated in sterling and therefore they do not present
a foreign currency risk. The Group does not have any significant monetary assets and liabilities that are not denominated in the functional
currency of the operating unit involved.
As the Group has significant cash deposits, changes in interest rates could have a significant impact on the Group’s results.
Capital management
The Board’s policy is to maintain a strong capital base, defined as total equity, so as to maintain investor, creditor and market confidence
and to sustain future development of the business.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
Electronic Data Processing PLC Annual Report and Accounts 2014
33
Notice of meeting
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group is currently debt free and
has significant cash resources. It therefore considers the risk to be low at the present time. The Group does not trade in financial instruments.
Notes to the Consolidated Financial Statements continued
(forming part of the financial statements)
2. Significant accounting policies continued
New standards not applied
The IASB has issued the following standards with an effective date after the date of these financial statements and early adoption has not
been applied:
Effective for accounting
periods beginning on or after
International Accounting Standards (IFRS/IAS)
IFRS 9
Financial Instruments
IFRS 10 (amended October 2012)
Consolidated Financial Statements
IFRS 11 (amended May 2014)
Joint Arrangements
IFRS 12 (amended October 2012)
Disclosure of Interests in Other Entities
IFRS 14
Regulatory Deferral Accounts
IFRS 15
Revenue from Contracts with Customers
IAS 16 (amended May and June 2014)
Property, Plant and Equipment
IAS 19 (amended November 2013)
Employee Benefits
IAS 27 (amended August 2014)
Separate Financial Statements
IAS 32 (amended December 2011)
Financial Instruments: Presentation
IAS 36 (amended May 2013)
Impairment of Assets
IAS 38 (amended May 2014)
Intangible Assets
IAS 39 (amended June 2013)
Financial Instruments: Recognition and Measurement
IAS 41 (amended June 2014)
Agriculture
Amendments to various standards resulting from Annual Improvements 2010–2012 Cycle
Amendments to various standards resulting from Annual Improvements 2011–2013 Cycle
IFRIC interpretations
IFRIC 21
Levies
1 January 2018
1 January 2014
1 January 2016
1 January 2014
1 January 2016
1 January 2017
1 January 2016
1 July 2014
1 January 2016
1 January 2014
1 January 2014
1 January 2016
1 January 2014
1 January 2016
1 July 2014
1 July 2014
1 January 2014
The Directors are currently assessing the likely impact that adoption of IFRS 15 Revenue from Contracts with Customers will have on
the Group’s financial statements in the period of initial application.
It is not anticipated that application of the remaining new standards, interpretations and amendments to existing standards will have
a material effect on the Group’s financial statements when first applied.
3. Segmental analysis
The Group has identified its reportable segment based on the financial reports that internally are provided to the Group’s chief operating decision
maker (CODM). In line with its management structure, the Executive Directors collectively make the key operating decisions and review internal
monthly management accounts and budgets as part of this process. Accordingly, the Executive Directors collectively are considered to be
the CODM. The information reported regularly to the CODM presents the Group as a single segment supplying software and related services
to customers operating in similar markets. The Group’s software products share a common sales, development and implementation resource.
Consequently the Group has determined that there is one operating segment and therefore one reportable segment, Software.
Segment performance is measured based on segment profit before tax excluding IAS 19 defined benefit pension scheme adjustments
and profits or losses on property disposals or revaluations.
Revenue – external customers
Software
2014
£’000
Software
2013
£’000
5,508
5,827
Profit
Adjusted operating profit
Segment non-cash net IFRS charge
Interest revenue
553
(41)
46
835
(33)
85
Segment profit before tax
Defined benefit pension scheme charge net of employer contributions
558
(157)
887
(93)
Consolidated profit before tax
401
794
Other segment items
Interest revenue
Depreciation and amortisation
Capital expenditure
46
374
257
85
351
241
34
Electronic Data Processing PLC Annual Report and Accounts 2014
Strategic report
3. Segmental analysis continued
Geographical analysis
Geographical segment revenues, based on the geographical location of customers, are as follows:
2013
£’000
5,271
237
5,601
226
5,508
5,827
2014
£’000
2013
£’000
Depreciation
Amortisation of intangible assets
Operating lease rentals:
248
126
193
158
– plant and machinery
– property
Research and development expenditure
53
184
902
51
186
822
2014
£’000
2013
£’000
18
12
14
10
18
12
13
6
54
49
United Kingdom
Rest of the world
Governance
2014
£’000
Revenue by destination
All of the Group’s non-current assets are located in the United Kingdom.
4. Operating profit
Financial statements
This is stated after charging:
5. Auditor’s remuneration
Amounts payable to the auditor in respect of both audit and non-audit services was as follows:
6. Employee information
The average number of persons employed by the Group (including Executive Directors) during the year, analysed by category, was as follows:
Number of employees
Sales and administration
Support, development and network services
2014
2013
17
51
18
52
68
70
2014
£’000
2013
£’000
2,588
303
95
1
2,675
312
104
9
2,987
3,100
The aggregate payroll costs of these persons were as follows:
Salaries
Social security costs
Other pension costs
Equity settled share-based payment transactions
Aggregate Directors’ emoluments amounted to £526,588 (2013: £607,675). Details of Directors’ remuneration are given in the Directors’
Remuneration Report. Retirement benefits are accruing to five Directors (2013: four) under money purchase pension schemes and one
Director (2013: one) under defined benefit pension schemes. The total amount contributed by the Group in respect of the money purchase
schemes was £23,066 (2013: £21,980).
Electronic Data Processing PLC Annual Report and Accounts 2014
35
Notice of meeting
Audit of these financial statements
Audit of financial statements of subsidiaries
Taxation services
Other services
Notes to the Consolidated Financial Statements continued
(forming part of the financial statements)
7. Income tax
Income tax (credit)/expense comprises:
2014
£’000
Current tax
United Kingdom corporation tax
Tax over provided in prior years
85
(101)
176
(6)
(16)
170
6
2
5
11
22
4
Group deferred tax
13
37
Income tax (credit)/expense
(3)
207
Group current tax
Deferred tax
Origination and reversal of temporary differences
Effect of decrease in the tax rate
Adjustments in respect of prior years
2013
£’000
Factors affecting the tax charge for the year
The tax assessed for the year differs from the standard rate of corporation tax in the UK of 22% (2013: 23.5%). The differences are
explained below:
Profit before tax
Profit multiplied by standard rate of corporation tax of 22% (2013: 23.5%)
Effects of:
Expenses not deductible for tax purposes
Benefit of small companies rate of tax and marginal relief
Corporation tax – adjustment in respect of prior periods
Deferred tax – adjustment in respect of prior periods
Deferred tax – effect of rate change
Total income tax (credit)/expense
2014
£’000
2013
£’000
401
794
88
187
10
(7)
(101)
5
2
6
(6)
(6)
4
22
(3)
207
The 2014 corporation tax adjustment in respect of prior years relates to refunds received in respect of claims for R&D tax relief.
No provision has been made for a deferred tax asset in the form of future capital losses on the disposal of those of the Group’s freehold
properties that are available for sale as there is significant uncertainty as to whether such losses would be utilised in the future.
Factors affecting future tax charges
The main rate of UK corporation tax will reduce to 20% from 1 April 2015 and this will reduce the Group’s future tax charge accordingly.
The Group had no unutilised trading tax losses carried forward at 30 September 2014 (2013: £nil).
36
Electronic Data Processing PLC Annual Report and Accounts 2014
Strategic report
8. Earnings per share
Basic earnings per share
Earnings per share is calculated by dividing the profit for the period attributable to equity holders of the parent of £404,000 (2013: £587,000)
by 12,589,497 (2013: 12,530,976), being the weighted average number of shares in issue during the year.
2014
Number
2013
Number
Issued ordinary shares at 1 October excluding treasury shares
Effect of share options exercised
12,530,976
58,521
12,530,976
—
Weighted average number of ordinary shares at 30 September
12,589,497
12,530,976
Governance
The weighted average number of shares has been calculated as follows:
Basic earnings per share is 3.21p (2013: 4.68p).
Diluted earnings per share is calculated by dividing the profit after tax of £404,000 (2013: £587,000) by 12,784,690 (2013: 12,666,864),
being the weighted average number of shares in issue adjusted for the effects of all dilutive potential ordinary shares.
The weighted average number of shares has been calculated as follows:
2013
Number
Weighted average number of ordinary shares (basic)
Effect of outstanding share options
12,589,497
195,193
12,530,976
135,888
Weighted average number of ordinary shares at 30 September
12,784,690
12,666,864
2014
£’000
2013
£’000
252
379
251
626
631
877
252
251
Diluted earnings per share is 3.16p (2013: 4.63p).
9. Dividends paid and proposed
The following dividends were declared and paid during the year:
Final dividend for 2013 – 2.0p (2012: 2.0p)
Special interim dividend for 2014 – 3.0p (2013: 5.0p)
Proposed for approval by shareholders at the AGM
Final dividend for 2014 – 2.0p (2013: 2.0p)
Electronic Data Processing PLC Annual Report and Accounts 2014
37
Notice of meeting
2014
Number
Financial statements
Diluted earnings per share
For diluted earnings per share, the weighted average number of shares in issue is adjusted to assume conversion of all dilutive potential
ordinary shares. The Company has one class of dilutive potential ordinary share which is share options granted to employees under its
Enterprise Management Incentive Share Option plan. These shares have been included in the diluted earnings per share calculation.
Notes to the Consolidated Financial Statements continued
(forming part of the financial statements)
10. Property, plant and equipment
Freehold
property
£’000
Motor
vehicles
£’000
Fixtures,
fittings and
equipment
£’000
Total
£’000
Cost
At 1 October 2013
Additions
Transfer from assets held for sale
Transfers from stock
Disposals
1,388
—
1,423
—
—
266
43
—
—
(39)
1,686
133
—
24
(2)
3,340
176
1,423
24
(41)
At 30 September 2014
2,811
270
1,841
4,922
Depreciation
At 1 October 2013
Charge for the year
Transfers from stock
Disposals
273
52
—
—
107
53
—
(32)
1,217
143
14
(2)
1,597
248
14
(34)
At 30 September 2014
325
128
1,372
1,825
Net book value
At 30 September 2014
2,486
142
469
3,097
Cost
At 1 October 2012
Additions
Transfers from stock
Disposals
1,388
—
—
—
204
62
—
—
1,557
173
2
(46)
3,149
235
2
(46)
At 30 September 2013
1,388
266
1,686
3,340
Depreciation
At 1 October 2012
Charge for the year
Transfers from stock
Disposals
259
14
—
—
63
44
—
—
1,119
135
7
(44)
1,441
193
7
(44)
At 30 September 2013
273
107
1,217
1,597
Net book value
At 30 September 2013
1,115
159
469
1,743
38
Electronic Data Processing PLC Annual Report and Accounts 2014
Strategic report
11. Intangible assets
Cost
At 1 October 2013
Additions – internally developed
Additions – purchased
1,761
—
81
268
79
—
2,029
79
81
At 30 September 2014
1,842
347
2,189
Amortisation
At 1 October 2013
Charge for the year
1,673
90
34
36
1,707
126
At 30 September 2014
1,763
70
1,833
Net book value
At 30 September 2014
79
277
356
Cost
At 1 October 2012
Additions – internally developed
Additions – purchased
1,755
—
6
150
118
—
1,905
118
6
At 30 September 2013
1,761
268
2,029
Amortisation
At 1 October 2012
Charge for the year
1,536
137
13
21
1,549
158
At 30 September 2013
1,673
34
1,707
Net book value
At 30 September 2013
88
234
322
2014
£’000
2013
£’000
67
81
2014
£’000
2013
£’000
1,233
313
1,161
376
1,546
1,537
2014
£’000
2013
£’000
183
4,801
53
5,614
4,984
5,667
The amortisation charge is included within administrative expenses within the consolidated income statement.
12. Inventories
Computer equipment
13. Trade and other receivables
Trade receivables
Other receivables
14. Cash and cash equivalents
Bank balances
Short-term deposits
Electronic Data Processing PLC Annual Report and Accounts 2014
39
Notice of meeting
Total
£’000
Financial statements
Development
costs
£’000
Governance
Software
intellectual
property rights
£’000
Notes to the Consolidated Financial Statements continued
(forming part of the financial statements)
15. Assets held for sale
2014
£’000
At 1 October
Transferred to property, plant and equipment
Disposal
At 30 September
1,423
(1,423)
—
—
2013
£’000
1,863
—
(440)
1,423
The transfer in the current year relates to the Group’s vacant freehold property at Milton Keynes. The Directors consider that a sale of
the property within the next twelve months is no longer highly probable and accordingly have transferred it back into non-current assets.
16. Deferred income
This represents the portion of annual licence fees, hosting charges and maintenance contracts taken out by customers but which relate
to a future period.
2014
£’000
2013
£’000
1,914
17
2,291
57
1,931
2,348
2014
£’000
2013
£’000
588
480
555
640
1,068
1,195
To be recognised:
– within one year
– after more than one year
17. Trade and other payables
Trade payables
Other payables
18. Financial instruments
The Group’s financial instruments comprise cash and liquid resources, and various items, such as trade receivables, trade payables, etc.,
that arise directly from its operations. There is no material difference between book value and fair value of these financial instruments.
Bank deposits are invested at a variable interest rate based on base rate. This position is constantly monitored by the Board.
Undrawn committed facilities
At 30 September 2014 the Group had undrawn committed borrowing facilities amounting to £500,000 (2013: £500,000). Such facilities
expire within one year and are subject to review.
Credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was:
Carrying amount
Trade receivables
Cash and cash equivalents
40
Electronic Data Processing PLC Annual Report and Accounts 2014
2014
£’000
2013
£’000
1,233
4,984
1,161
5,667
6,217
6,828
Strategic report
18. Financial instruments continued
Credit risk continued
The ageing of trade receivables at the reporting date was:
2014
Gross
£’000
Impairment
£’000
607
318
205
48
140
—
—
—
1
84
623
232
180
54
162
—
—
8
—
82
1,318
85
1,251
90
2014
£’000
2013
£’000
The movement in the allowance for impairment in respect of trade receivables during the year was as follows:
Balance at 1 October
Reversal of prior year impairment losses
Previously impaired balances written off
Impairment loss recognised
Balance at 30 September
90
—
(27)
22
122
(4)
(42)
14
85
90
There is no additional risk that warrants disclosure concerning trade receivables that are neither past due nor impaired.
Liquidity risk
The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact
of netting agreements:
At 30 September 2014
Trade and other payables
Income tax payable
Deferred income
Carrying
amount
£’000
Contractual
cash flows
£’000
1,068
16
1,931
1,068
16
—
3,015
1,084
Carrying
amount
£’000
Contractual
cash flows
£’000
1,195
177
2,348
3,720
6 months
or less
£’000
6–12 months
£’000
More than
one year
£’000
1,068
(68)
1,373
—
84
541
—
—
17
2,373
625
17
6 months
or less
£’000
6–12 months
£’000
1–2 years
£’000
1,195
177
—
1,195
—
1,611
—
177
680
—
—
57
1,372
2,806
857
57
At 30 September 2013
Trade and other payables
Income tax payable
Deferred income
Interest rate risk
At the reporting date the Group’s interest bearing financial instruments were:
Carrying amount
Variable rate financial assets
2014
£’000
2013
£’000
4,984
5,667
Electronic Data Processing PLC Annual Report and Accounts 2014
41
Notice of meeting
The impairment loss for the year relates to specific customers who have purchased software solutions and management considers there
to be a risk in collecting the outstanding balances.
Financial statements
Impairment
£’000
Governance
Not past due
Past due 0–30 days
Past due 31–120 days
Past due 121–360 days
More than one year
2013
Gross
£’000
Notes to the Consolidated Financial Statements continued
(forming part of the financial statements)
18. Financial instruments continued
Interest rate risk continued
Sensitivity analysis
The majority of cash balances throughout the year are held on deposit at competitive market rates. A 1% fluctuation in interest rates
on the year end cash balance would have an approximate impact of £50,000 (2013: £57,000) on finance income with a corresponding
£10,000 (2013: £13,000) impact on income tax expense.
19. Employee benefits – pensions
The Group operates both defined benefit and defined contribution pension schemes.
Defined contribution pension schemes
The Group operates a number of defined contribution pension schemes, the principal scheme being a grouped personal pension scheme
through an insurance company. The pension costs of these arrangements were £52,000 (2013: £50,000). Outstanding contributions at the
end of the year were £11,000 (2013: £7,000).
Defined benefit pension scheme
The Group sponsors the Electronic Data Processing PLC Pension and Life Assurance Scheme which is a funded defined benefit arrangement.
This is a separate trustee administered fund holding the pension scheme assets to meet long-term pension liabilities for the members.
The scheme entitles a retired member to receive an annual pension equal to 1/60 of final salary for each year of service that the member provided.
The remaining active members left the Scheme on 31 August 2014 and consequently future service accrual ceased from that date.
The scheme exposes the Group to actuarial risks such as investment risk, interest rate risk and longevity risk. A decrease in corporate
bond yields, a rise in inflation or an increase in life expectancy would result in an increase to scheme liabilities. This would detrimentally
impact the balance sheet position and may give rise to increased charges in future income statements.
The last full actuarial valuation of the scheme was performed at 31 July 2013 by a professionally qualified actuary. This scheme funding
valuation showed a surplus of £62,000 at that date.
Members have paid contributions at a rate in line with the recommendations of the actuary over the accounting period.
The full actuarial valuation of the Scheme was updated on an IAS 19 basis at 30 September 2014 by JLT Benefit Solutions Limited using
the following assumptions:
Inflation rate
Discount rate
Expected return on assets
Rate of increase in pay
Rate of increase of pensions in payment
Rate of increase for deferred pensioners
2014
2013
2012
2.3%
3.9%
3.9%
—
5.0%
2.3%
2.5%
4.5%
4.5%
3.0%
5.0%
2.5%
1.9%
4.4%
4.4%
3.0%
5.0%
1.9%
The assumed rate of return on bonds is the yield available on AA-rated corporate bonds at 30 September 2014. The Scheme’s assets
are invested in insurance policies in which the underlying assets comprise wholly of corporate bonds and the expected return on assets
is based on the yield available on AA-rated corporate bonds.
The mortality assumptions adopted at 30 September 2014 are 100% of the standard tables S1PMA (males) and S1PFA (females).
These imply the following life expectancies:
Retiring in 2014 (aged 65 years)
– Males
– Females
Retiring in 2034 (currently aged 45 years)
– Males
– Females
42
Electronic Data Processing PLC Annual Report and Accounts 2014
2014
Years
2013
Years
22.2
24.5
22.4
24.7
24.0
26.4
24.1
26.6
Strategic report
19. Employee benefits – pensions continued
Funding status
2014
£’000
2013
£’000
2012
£’000
(9,075)
7,100
(8,124)
7,080
(7,903)
6,783
Deficit
(1,975)
(1,044)
(1,120)
Governance
Present value of Scheme obligations
Fair value of Scheme assets
Categories of assets
2013
£’000
2012
£’000
3,260
3,840
3,847
3,233
3,925
2,858
7,100
7,080
6,783
None of the fair values of the assets shown above include any of the Group’s own financial instruments or any property occupied by, or
other assets used by, the Group. As a Grouped Funding policy, there are no units, and the asset value is calculated from benefits secured
in tranches. The discontinuance surrender value of the policy is supplied by the scheme’s administrators and is assumed to be backed
100% by corporate bonds.
Financial statements
Corporate bonds
Insured pensioners
2014
£’000
Amounts recognised in the income statement
The following amounts have been included within administrative expenses within the consolidated income statement:
2013
£’000
60
14
48
60
60
14
50
—
182
124
2014
£’000
2013
£’000
Amounts recognised in other comprehensive income
Remeasurements loss/(gain):
Return on plan assets excluding interest income
Experience losses/(gains) arising on the defined benefit obligation
Actuarial (gains)/losses arising from changes in demographic assumptions
Actuarial losses/(gains) arising from changes in financial assumptions
(41)
163
(96)
748
(177)
(38)
107
(61)
774
(169)
2014
£’000
2013
£’000
Present value of obligations at 1 October
Current service cost
Expenses
Member contributions
Losses on curtailments
Interest cost
Remeasurement loss
Benefits paid
8,124
60
14
8
60
359
815
(365)
7,903
60
14
9
—
345
8
(215)
Present value of obligations at 30 September
9,075
8,124
Reconciliation of present value of Scheme obligations
Electronic Data Processing PLC Annual Report and Accounts 2014
43
Notice of meeting
Current service cost
Expenses
Net interest expense
Losses on curtailments
2014
£’000
Notes to the Consolidated Financial Statements continued
(forming part of the financial statements)
19. Employee benefits – pensions continued
Reconciliation of the fair value of Scheme assets
2014
£’000
2013
£’000
Fair value of assets at 1 October
Interest income
Remeasurement gain
Employer contributions
Member contributions
Benefits paid
7,080
311
41
25
8
(365)
6,783
295
177
31
9
(215)
Fair value of assets at 30 September
7,100
7,080
Sensitivity analysis
Changes at the balance sheet date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected
the defined benefit obligation by the percentages shown below:
Discount rate
Rate of inflation
Rate of mortality
Change in assumption
Change in liabilities
Decrease of 0.25% p.a.
Increase 0.25% p.a.
1 year increase in life expectancy
Increase by 3.9%
Increase by 0.6%
Increase by 3.4%
Estimated contribution in the financial year starting 1 October 2014
Estimated contributions to the Group Scheme for the year commencing 1 October 2014 are £nil.
20. Deferred income tax
The deferred income tax included in the Group income statement is as follows:
Origination and reversals of temporary differences
Effect of decrease in the tax rate
Adjustments in respect of prior periods
2014
£’000
2013
£’000
6
2
5
11
22
4
13
37
2014
£’000
2013
£’000
The deferred income tax included in the Group balance sheet is as follows:
Taxation deferred by capital allowances
Temporary differences – other
Taxation on pension liability
(93)
(20)
395
(60)
(10)
209
Deferred income tax
282
139
Deferred income tax asset
Deferred income tax liability
395
(113)
209
(70)
282
139
44
Electronic Data Processing PLC Annual Report and Accounts 2014
Strategic report
21. Share capital
Ordinary shares of 5p each
2014
Number
2013
Number
2014
£’000
2013
£’000
13,784,073
(1,173,097)
13,784,073
(1,253,097)
689
(59)
689
(63)
Issued share capital excluding treasury shares
12,610,976
12,530,976
630
626
Governance
Allotted, called up and fully paid:
At 1 October and 30 September
Less: held in treasury
Each holder of an ordinary share is entitled to one vote for each share held at all meetings of shareholders and will be entitled to any
dividends declared by the Board of Directors with the exception of treasury shares which do not carry any voting or dividend rights.
Treasury shares
Shares held in treasury on 1 October
Issued on exercise of EMI share options
Shares held in treasury at 30 September
2013
Number
2014
£’000
2013
£’000
1,253,097
1,253,097
627
627
(80,000)
1,173,097
—
1,253,097
(40)
—
587
627
The fair value of EMI share options calculated at the grant date was 4.5p for those options granted on 30 September 2010 and 9.6p
for those options granted on 5 February 2013. The main inputs in the calculation were:
Share price volatility
Dividend yield
Risk-free interest rate
Expected option maturity
Options
granted on
30 September
2010
Options
granted on
5 February
2013
21.91%
5.59%
2.16%
6.5 years
25.62%
4.46%
3.04%
6.5 years
There are no other share option plans in operation.
22. Lease obligations
Operating leases
At 30 September 2014 the Group had a total of future minimum commitments under non-cancellable operating leases on land and buildings
as follows:
Within one year
In the second to fifth years inclusive
2014
£’000
2013
£’000
100
67
184
139
167
323
23. Contingent liabilities
The Group is party to claims which have arisen from normal trading activities. The outcome of these disputes cannot be forecast
with certainty, but the Directors believe that the outcome will have no material effect on the Group’s net assets.
Electronic Data Processing PLC Annual Report and Accounts 2014
45
Notice of meeting
Share options
The Company operates an Enterprise Management Incentive (EMI) Share Option Plan for Directors and other senior employees. Details of
options granted to Directors on 30 September 2010 are given in the Directors’ Remuneration Report. A further 45,000 options were granted
to other employees on 30 September 2010 and 45,000 options were granted to other employees on 5 February 2013. The key terms,
exercise price and required service period for these share options are the same as those granted to the Directors.
Financial statements
Ordinary shares of 5p each
2014
Number
Notes to the Consolidated Financial Statements continued
(forming part of the financial statements)
24. Group entities
Subsidiary companies at 30 September 2014, all of which were holdings of 100% of the ordinary share capital, were:
Place of
registration
Trading
BML (Office Computers) Ltd
BCT Software Solutions Ltd
Disys Associates Ltd
Vecta Sales Solutions Ltd
Non-trading
Business Computer Services Ltd
Business Computer Systems PLC
Business Computers Ltd
fastfreenet.com Ltd
Electronic Data Processing Systems Ltd
Ibex Computer Services Ltd
All the subsidiaries’ activities are conducted in the United Kingdom.
The principal activity of all trading companies within the Group is the sale of computer software and related services.
46
Electronic Data Processing PLC Annual Report and Accounts 2014
England
England
England
England
England
England
England
England
England
Isle of Man
Company Balance Sheet
Strategic report
at 30 September 2014
Note
2014
£’000
2013
£’000
Intangible assets
3
79
10
Tangible assets
4
3,097
3,147
Investments
5
3,598
3,598
6,774
6,755
Fixed assets
Governance
Current assets
6
49
61
Debtors
7
608
518
Investments
8
3,000
—
1,912
5,629
5,569
6,208
(5,296)
(5,502)
Cash at bank and in hand
Creditors:
amounts falling due within one year
9
Net current assets
706
7,047
7,461
Provisions for liabilities and charges
10
(96)
(63)
Deferred income
11
(636)
(719)
12
(1,580)
Net assets excluding pension liability
Pension liability
6,315
Net assets including pension liability
6,679
(835)
4,735
5,844
689
689
119
119
301
305
625
625
Capital and reserves
Called up share capital
13
Share premium account
Revaluation reserve
14
Capital redemption reserve
Treasury shares
13
Profit and loss account
15
Equity shareholders’ funds
(587)
(627)
3,588
4,733
4,735
5,844
These financial statements were approved by the Board of Directors on 16 December 2014 and were signed on its behalf by:
Sir Michael Heller
Directors
Julian Wassell
Electronic Data Processing PLC, registered number 853560
Electronic Data Processing PLC Annual Report and Accounts 2014
47
Notice of meeting
Total assets less current liabilities
273
Financial statements
Stock
Notes to the Company Financial Statements
(forming part of the financial statements)
1. Accounting policies
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain land and
buildings and in accordance with applicable accounting standards. The following principal accounting policies have been applied
consistently in dealing with items that are considered material in relation to the Company’s financial statements.
Investments in subsidiaries
Investments in subsidiary undertakings are stated at cost less any diminution in value.
Intangible fixed assets
The cost of intangible fixed assets is their purchase cost together with any incidental expenses of acquisition and is amortised over a period
of between four and ten years on a straight line basis. In the case of software intellectual property rights, amortisation commences from
the time the software is brought into use.
The Directors review the useful economic lives of the intangible fixed assets at each reporting date and revise them as necessary
in accordance with FRS 10.
Tangible fixed assets
Depreciation is provided so as to write off the cost or valuation less the estimated residual value of each tangible fixed asset in equal
instalments over its estimated useful life from the time it becomes operational at the following rates:
Freehold property – 1 to 2%
Motor vehicles – 20 to 33%
Fixtures, fittings and equipment – 15 to 25%
The Company applied the transitional provisions of FRS 15 ‘Tangible Fixed Assets’ during a previous year.
Foreign currency
Assets and liabilities expressed in foreign currencies are translated into sterling at year end rates. All trading exchange differences
are taken to the profit and loss account.
Deferred tax
Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of certain items for taxation
and accounting purposes which have arisen but not reversed by the balance sheet date, except as otherwise required by FRS 19.
Deferred tax assets are only recognised where, on the basis of all available evidence, it is more likely than not that there will be suitable
taxable profits from which they can be recovered.
Research and development
Research and development costs relating to software products are written off in the year in which they are incurred.
Leasing transactions
Operating lease rentals are charged to the profit and loss account on a straight line basis over the period of the lease.
Stock
Stock is valued at the lower of purchase cost and net realisable value.
Deferred income
Deferred income represents that portion of licence fees, hosting charges and maintenance contracts taken out by customers but which
relate to a future period.
Pensions
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company
in an independently administered fund. The amount charged to the profit and loss account represents the contributions payable to the
scheme in respect of the accounting period.
The Company also operates a pension scheme providing benefits based on final pensionable pay. The assets of the scheme are held
separately from those of the Company.
Pension scheme assets are measured using market values. Pension scheme liabilities are measured using the projected unit method
and discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liability.
The pension scheme surplus or deficit is recognised in full. The movement in the scheme surplus or deficit is split between operating
charges, other financial items and, in the statement of total recognised gains and losses, actuarial gains and losses.
48
Electronic Data Processing PLC Annual Report and Accounts 2014
Strategic report
2. Employee information
The average number of persons employed by the Company (including Executive Directors) during the year, analysed by category, was as follows:
Governance
1. Accounting policies continued
Treasury shares
When share capital recognised as equity is repurchased, the amount of the consideration paid, which includes directly attributable costs,
net of any tax effects, is recognised as a deduction from equity. Repurchased shares are classified as treasury shares and are presented
as a deduction from equity. When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase
in equity and the resulting surplus or deficit on the transaction is transferred to or from retained earnings.
Number of employees
Sales and administration
Support, development and network services
2013
12
34
13
34
46
47
2014
£’000
2013
£’000
1,702
190
56
1,764
195
65
1,948
2,024
The aggregate payroll costs of these persons were as follows:
Salaries
Social security costs
Other pension costs
3. Intangible assets
Software
intellectual
property rights
£’000
Cost
At 1 October 2013
Additions
844
81
At 30 September 2014
925
Amortisation
At 1 October 2013
Charge for the year
834
12
At 30 September 2014
846
Net book value
At 30 September 2014
79
At 30 September 2013
10
Electronic Data Processing PLC Annual Report and Accounts 2014
49
Notice of meeting
Aggregate Directors’ emoluments amounted to £526,588 (2013: £607,675). Details of Directors’ remuneration are given in the Directors’
Remuneration Report.
Financial statements
2014
Notes to the Company Financial Statements continued
(forming part of the financial statements)
4. Tangible fixed assets
Freehold
property
£’000
Motor
vehicles
£’000
Fixtures,
fittings and
equipment
£’000
Total
£’000
Cost or valuation
At 1 October 2013
Additions
Transfers from stock
Disposals
2,811
—
—
—
266
43
—
(39)
1,618
133
24
(2)
4,695
176
24
(41)
At 30 September 2014
2,811
270
1,773
4,854
Depreciation
At 1 October 2013
Charge for the year
Transfers from stock
Disposals
292
33
—
—
106
53
—
(32)
1,150
143
14
(2)
1,548
229
14
(34)
At 30 September 2014
325
127
1,305
1,757
Net book value
At 30 September 2014
2,486
143
468
3,097
At 30 September 2013
2,519
160
468
3,147
All the freehold property belonging to the Company at 30 September 1988 was professionally valued at that date on an open market
value for existing use basis. The 1988 valuation was incorporated in the financial statements with the surplus on valuation being credited
to a revaluation reserve.
The 1988 valuation was updated in 2012 to take account of the Directors’ best estimates of the net realisable value of those freehold
properties that are no longer used by the Company and that are available for sale. For those properties stated at cost the resulting
impairment loss was recognised in the profit and loss account. For those properties stated at valuation, the resulting impairment loss
was recognised against the revaluation reserve.
Freehold property may be analysed between that included at valuation and that subsequently acquired at cost, as follows:
2014
£’000
2013
£’000
1,423
1,388
1,423
1,388
2,811
2,811
2014
£’000
2013
£’000
Cost
Accumulated depreciation
2,881
(699)
2,881
(671)
Net book value
2,182
2,210
At 2012 valuation
At cost
The net historical cost of freehold property is as follows:
50
Electronic Data Processing PLC Annual Report and Accounts 2014
Strategic report
5. Investments in subsidiary undertakings
Details of the Company’s subsidiary undertakings can be found in note 24 to the Group’s financial statements.
Cost
At 1 October 2013 and 30 September 2014
3,598
Provision for diminution in value
At 1 October 2013 and 30 September 2014
—
Net book value
At 1 October 2013 and 30 September 2014
3,598
Computer equipment
2013
£’000
49
61
2014
£’000
2013
£’000
322
57
1
228
242
—
2
274
608
518
2014
£’000
2013
£’000
3,000
—
2014
£’000
2013
£’000
354
4,765
—
136
41
422
4,741
58
137
144
5,296
5,502
7. Debtors
Trade debtors
Corporation tax
Other debtors
Prepayments and accrued income
There are no debtors recoverable after more than one year (2013: nil).
8. Current asset investments
Short-term bank deposits
9. Creditors: amounts falling due within one year
Trade creditors
Amounts owed to subsidiary undertakings
Corporation tax
Other taxes and social security
Other creditors
Details of financial instruments are set out in note 18 to the Group’s financial statements.
Electronic Data Processing PLC Annual Report and Accounts 2014
51
Notice of meeting
2014
£’000
Financial statements
6. Stock
Governance
Shares in
Group
undertakings
£’000
Notes to the Company Financial Statements continued
(forming part of the financial statements)
10. Provisions for liabilities and charges
2014
£’000
2013
£’000
96
63
Deferred taxation
Accelerated
capital
allowances
£’000
At 1 October 2013
Transfer to profit and loss account
63
33
At 30 September 2014
96
The Company has, in accordance with the provisions of FRS 19, recognised deferred tax liabilities in respect of accelerated capital allowances.
11. Deferred income
This represents the portion of annual licence fees, hosting charges and maintenance contracts taken out by customers that relate
to a future period.
To be recognised:
– within one year
– after more than one year
2014
£’000
2013
£’000
636
—
718
1
636
719
12. Pensions
The Company operates both defined benefit and defined contribution pension schemes.
Defined benefit pension scheme
The Company operates a defined benefit pension scheme which is based on final pensionable pay.
The remaining active members left the Scheme on 31 August 2014 and consequently future service accrual ceased from that date.
The most recent full actuarial valuation of the scheme took place on 31 July 2013.
The assumptions used in the 2013 valuation of the scheme were as follows:
Investment return – 3.8% per annum
Increase in pensions in payment – 5.0% per annum
Increase in salaries – 2.9% per annum
The 31 July 2013 valuation was updated on an FRS 17 basis at 30 September 2014 by JLT Benefit Solutions Limited. The major
assumptions used by the actuary at 30 September 2014 were:
Financial assumptions
Inflation
Rate of salary increase
Rate of increase of pensions in payment
Rate of revaluation of deferred pensions
Discount rate
The valuation method used was the projected unit method.
52
Electronic Data Processing PLC Annual Report and Accounts 2014
2014
2013
2012
2.3%
—
5.0%
2.3%
3.9%
2.5%
3.0%
5.0%
2.5%
4.5%
1.9%
3.0%
5.0%
1.9%
4.4%
Strategic report
12. Pensions continued
Pension liability
The fair value of the scheme assets and the present value of the scheme liabilities were:
2013
£’000
2012
£’000
Fair value of scheme assets
Present value of scheme liabilities
7,100
(9,075)
7,080
(8,124)
6,783
(7,903)
Deficit in the scheme – pension liability
Related deferred tax asset
(1,975)
395
(1,044)
209
(1,120)
258
Net pension liability
(1,580)
(835)
(862)
2014
2013
2012
3.9%
4.5%
4.4%
2014
£’000
2013
£’000
Governance
2014
£’000
The scheme assets are invested in an insurance policy and are wholly comprised of bonds.
Bonds
Movement in the deficit during the year
(1,044)
(74)
(60)
25
(48)
(774)
(1,120)
(74)
—
31
(50)
169
Deficit at end of year
(1,975)
(1,044)
Analysis of other pension costs charged in arriving at operating profit
Current service cost
Losses on curtailments
2014
£’000
2013
£’000
74
60
74
—
134
74
2014
£’000
2013
£’000
311
(359)
295
(345)
(48)
(50)
Analysis of amounts included in other finance income
Expected return on pension scheme assets
Interest on pension scheme liabilities
Electronic Data Processing PLC Annual Report and Accounts 2014
53
Notice of meeting
Deficit at beginning of year
Current service cost
Losses on curtailments
Contributions
Other financial items
Actuarial (loss)/gain
Financial statements
The expected rates of return on the assets in the scheme were:
Notes to the Company Financial Statements continued
(forming part of the financial statements)
12. Pensions continued
Analysis of amounts recognised in statement of total recognised gains and losses
2014
£’000
2013
£’000
Actual return less expected return on scheme assets
Experience gains and losses arising on scheme assets
Changes in assumptions underlying the value of scheme assets
Experience gains and losses arising on scheme liabilities
Changes in assumptions underlying the present value of scheme liabilities
(111)
(54)
206
(163)
(652)
188
—
(11)
38
(46)
Actuarial (loss)/gain recognised in the statement of total recognised gains and losses
(774)
169
History of experience gains and losses
Difference between the expected and actual return on scheme assets
Amount (£’000)
Percentage of year end scheme assets
Experience gains and losses on scheme liabilities
Amount (£’000)
Percentage of year end present value of scheme liabilities
Total amount recognised in statement of total
recognised gains and losses
Amount (£’000)
Percentage of year end present value of scheme liabilities
2014
2013
2012
2011
2010
(111)
(1.6)
188
2.7
204
3.0
(188)
(2.9)
(154)
(2.4)
(163)
1.8
38
(0.5)
(88)
1.1
45
(0.6)
(74)
1.1
(774)
8.5
169
(2.1)
(844)
10.7
230
(3.5)
(535)
8.4
Defined contribution pension schemes
The Company operates a number of defined contribution pension schemes, the principal scheme being a grouped personal pension
scheme through an insurance company. The pension costs of these arrangements were £23,000 (2013: £21,000). There were outstanding
contributions of £6,000 at the end of the year (2013: £3,000).
13. Share capital
Details of the Company’s share capital and treasury shares are given in note 21 to the Group’s financial statements.
14. Revaluation reserve
2014
£’000
2013
£’000
At 1 October
Transfer to profit and loss reserve – depreciation
305
(4)
308
(3)
At 30 September
301
305
2014
£’000
2013
£’000
At 1 October
Profit for the year
Dividends
Issue of shares out of treasury
Transfer from revaluation reserve – depreciation
Actuarial (loss)/gain on pension
Tax on actuarial loss/(gain)
4,733
104
(631)
(3)
4
(774)
155
5,377
93
(877)
—
3
169
(32)
At 30 September
3,588
4,733
15. Profit and loss reserve
54
Electronic Data Processing PLC Annual Report and Accounts 2014
Strategic report
16. Commitments and contingencies
Operating leases
The commitment to payments within the next twelve months is as follows:
2013
£’000
52
52
2014
£’000
2013
£’000
Profit for the year
Dividends
104
(631)
93
(877)
Retained loss for the year
Issue of shares out of treasury
(527)
37
(784)
—
Property
Leases that expire:
– after five years
Governance
2014
£’000
17. Reconciliation of movements in shareholders’ funds (619)
137
Net decrease in shareholders’ funds
Opening shareholders’ funds
(1,109)
5,844
(647)
6,491
Closing shareholders’ funds
4,735
5,844
Financial statements
Actuarial (loss)/gain on pension net of tax
Notice of meeting
Electronic Data Processing PLC Annual Report and Accounts 2014
55
Five Year Statistical Record
Summarised financial information for the Group for the five years ended 30 September 2014 is set out below.
Year to 30 September
2014
£’000
2013
£’000
2012
£’000
2011
£’000
2010
£’000
Revenue
5,508
5,827
5,805
5,600
5,580
Gross profit
5,074
5,419
5,334
5,272
5,258
Administrative expenses
(4,719)
(4,710)
(4,646)
(4,766)
(4,705)
355
709
688
506
553
—
—
—
335
—
Operating profit
Profit on sale of property
Write-down of property values
—
—
(849)
—
—
Finance income
46
85
78
55
31
401
794
(83)
896
584
3
(207)
26
(158)
(160)
404
587
(57)
738
424
Earnings/(loss) per share
3.21p
4.68p
(0.45)p
5.89p
3.38p
Adjusted earnings per share*
3.16p
4.68p
4.66p
3.22p
3.38p
Net assets per share
42.4p
49.1p
50.0p
58.2p
53.4p
Profit/(loss) before tax
Income tax credit/(expense)
Profit/(loss) for the period
* Adjusted earnings per share excludes profits and losses on property disposals and revaluations and any related deferred tax effects.
56
Electronic Data Processing PLC Annual Report and Accounts 2014
4th Floor, Fountain Precinct, Balm Green, Sheffield S1 2JA
Telephone: 0114 262 2000
www.edp.co.uk
Electronic Data Processing PLC Annual Report and Accounts 2014