ANNUAL REPORTANNUAL REPORT fOR ThE yEAR

ENdEd 31 dEcEmbER 2012(iNcORPORATiNg ThE fiNANciAL sTATEmENTs

fOR ThE NiNE mONThs ENdEd 31 dEcEmbER 2012)

JdR cAbLE sysTEms (hOLdiNgs) LimiTEd

JdR is a leading provider of technology connecting the global energy industry. Our products and services enable vital control and power delivery to offshore oil, gas and renewable energy systems.

The world’s major energy companies and subsea service providers depend on high performance subsea control umbilicals and subsea power cables that operate in the world’s harshest offshore environments. JdR invests in state-of-the-art manufacturing facilities, technology and people to deliver these world-class subsea products.

We have a proven track record of delivering client expectations and are totally committed to lifecycle customer service. We achieve this through our specialist engineering teams, experienced project management, integrated safety systems and a global service network that ensures 24/7 aftermarket support.

INTRODUCTION

The JdR team is focussed on being• A world leading supplier of

IWOCS (Intervention Workover Control Systems), subsea production umbilicals and subsea power cables for global oil, gas and renewable energy markets

• A global supplier with regional, sales, engineering, operations, project management and service capabilities

• Customer focussed, driven by strategic customer relationships, product management, technology leadership, performance measurement and delivery of solutions

• An industry leader in quality, on-time performance, environmental, health and safety compliance and cost effectiveness

• Recognised as one of the best places to work in the oil and gas and renewables industries

Our values drive us to • Develop and work in world class

facilities where we innovate, adapt and embrace change to produce products that we are proud of

• Work together within a safe, communicative and transparent organisation

• Invest in our team to encourage personal responsibility, development, leadership and equality

cONTENTsThE JdR missiON sTATEmENT ANd VALUEs

Our business and strategy 3

JdR’s Oil & gas Products 7

chairman’s Report 9

chief Executive Officer’s Report 11

health, safety and the Environment 14

chief financial Officer’s Report 15

JdR board and Executive management Team 19

directors’ Report 21

corporate governance Report 23

Risk management Report 27

independent Auditor’s Report 29

financial statements 30

Notes to the financial statements 36

Appendix – 57 Unaudited Pro forma summary financial statements

Advisers 60

having delivered a record performance in 2012, we are continuing the momentum into 2013 and beyond.

Pat Herbert | Executive chairman

ANNUAL REPORT 31 December 2012 4highLighTs

sATTAhiP, ThAiLANd, bANgkOk, ThAiLANd

siNgAPORE

hAmbURg, gERmANy

hOUsTON, UsA

AbERdEEN,NEWcAsTLE,

hARTLEPOOL,LiTTLEPORT,

Uk

bUsiNEss highLighTs fiNANciAL hisTORy

OUR gLObAL PREsENcE

• Significantrevenuegrowthacrossallmarketsegmentsinoil&gas,renewablesandaftermarketservices

• Recordorderintake,withexpectationoffurthergrowthin2013

• Recordrevenuesof£130m(2011:£83m),anincreaseof56%

• Recordoperatingcashinflowof£20mandenhancedfinancialflexibilityfollowingrepaymentofallseniorbankdebtin2011

• Strongcashflowgenerationandenhancedfinancialflexibilityfollowingrepaymentofallseniorbankdebtin2011

• Achangeinfinancialyear-endto31December,fromDecember2012

OPERATiONAL highLighTs

• Strongproductdemandcontinued,inparticulardemandforlongerandlargersubseaumbilicalandpowercables

• Improvedproductivityacrossthebusinessduetoon-goingbenefitsoflong-terminvestmentinmanufacturingfacilities,businessprocessesandpeople

• ImportantnewsupplydealsannouncedwithSwiberOffshoreConstructionPteLtdfortheBruneiShellPetroleumChampionField,GermanoffshorewindenergycompanyWindMWGmbHandthecompletionofmajoroilandgasprojectsforSantosinAustraliaandChinaNationalOffshoreOilCorporation(CNOOC)

• Continuetogrowfull-servicecapabilitywithdiverseproductportfoliofromdesignservices,toproductsolutionstoaftermarketsupport

• Favourablemarketconditionsasoffshoremarketscontinuedtogrow

Order INTAKe reVeNUe

eBITdA SeNIOr deBT

0

20

40

60

80

100

120

46

62

9470

113

(£’M

)

CY08

CY09

CY10

CY11

CY12

0

20

40

60

80

100

120

4451

83

130(£

’M)

CY08

CY09

CY10

CY11

CY12

54

-5

0

5

10

15

20

46

-4

2625

(£’M

)

CY08

CY09

CY10

CY11

CY12

0 0

5

10

15

12

17

23

00

20

25

(£’M

)

CY08

CY09

CY10

CY11

CY12

The JDR Group of companies has changed its financial year end from 31 March to 31 December. The performance figures included within this report are unaudited 12 month pro forma figures, which include three months of profit and loss account and cash flow data from the final quarter of the year ended 31 March 2012. The financial statements on pages 31 to 56 show the financial period of nine months to 31 December 2012 (with comparative figures for the year ended 31 March 2012).

JdR’s sTRATEgy

Ourbusinessmodelisdesignedtosupportcustomersinachievingtheirbusinessgoalsanddeliverlong-termsustainablegrowthforJDR.Weserveabroad-basedandglobalbluechipcustomerbaseandourproductsandservicesplayafundamentalroleinoffshoreenergydelivery.Weareattheforefrontoffutureenergysupplytechnologiesfortheoilandgasandrenewableenergyindustries.

Majorenergycompaniesandsubseaserviceprovidersrelyonourproductsandservicestosupportprojectsinsomeoftheworld’sharshestoffshoreenvironments.TheJDRteamisfocussedonthedesignanddevelopmentofproductsolutionsthatmeettherequirementsofindividualcustomerprojects,high-qualitymanufactureandlong-termcustomersupportthroughouttheproductlife-cycle.

bUsiNEss mOdEL

Oil & Gas

JDRisaleadingsupplierofengineeredproductsfortheoffshoreoilandgasindustry.Wehavedevelopedtechnologiesthatmaximisetheefficientdeliveryofpower,controlandcommunicationsthroughumbilicalsandpowercables.Usingourstate-of-the-artengineeringandmanufacturingcapabilities,wedevelopanddelivercustombuiltsystemsforsubseainstallationsateverincreasingwaterdepths.

renewables

Wehaveembracedthegrowinginternationalmarketforalternativeandsustainableenergydelivery.TheGroup’sUKeastcoastlocationmakesitideallylocatedtoprovide,engineering,manufacturingandinstallationservicesfortheevolvingrenewablesmarket,whichisparticularlystronginEurope.

Aftermarket, Installation and Maintenance Services (AIMS)

Globalaftermarket,installationandmaintenanceservicesareprovidedbyourAIMServicesgroup.AIMShasanetworkofexperiencedandcertifiedtechniciansandservicesupportfacilities,available24/7tomanagecustomerprojects,forJDRandnon-JDRproducts,onoroffshore.Theteamhascreatedperiodicmaintenanceandinspectionroutinesthatincludeproductlifecyclepreventativemaintenanceandassuranceprogrammes.

OUR mARkETs

A LEAdiNg PROVidER Of TEchNOLOgy cONNEcTiNg ThE gLObAL OffshORE ENERgy iNdUsTRy

ANNUAL REPORT 31 December 2012 6JdR’s sTRATEgy

Ourstrategyisbasedongrowth,fundedbyproductivityanddeliveredbyaflexibleorganisationthatactsresponsiblyatalltimes.JDRiscommittedtoprovidingalifecyclecustomerserviceincludingthedesign,buildandmaintenanceofourproducts.Ourstrategyisfocussedonsixkeyareas:

1. Providing a world-class, full-service offering:Ourreputationisfoundedonourup-frontdesignskills,thetechnicalperformanceofourproducts,aworld-classfocusonsafety,qualityandreliableexecution.Weworkcloselywithcustomerstosolvecomplextechnologicalchallengesandincreasinglyoffercompleteturnkeysystempackages.Ourexperiencedengineering,projectmanagement,manufacturingandserviceteamsprovidecustomerswithafulllife-cycleproductandserviceoffering.Ourtechnologyfocusensuresproductsarereliableinharsh,deepwaterenvironmentsandcomplywithinternationalstandards.

2. Investment in innovation: JDRcontinuestoinvestinworld-classtechnologytosupportnewdevelopmentsinoffshoreenergyexploration;fromproductiontechniquesandnewequipmentdesigntoimprovementsincost-efficiency.Forexample,ourself-supportingopenwaterIWOCumbilicalsignificantlyreducesoffshoreoperatingcostsasthedesignpushestheboundariesofconventionalapplicationanddeploymenttechniques.

3. excellence in manufacturing:Ourglobalmanufacturingoperationsareledbythestate-of-the-artfacilityinHartlepool,whichhasbeenakeyenablerofJDR’sgrowth.

4. Growing global Aftermarket services: JDR’sAftermarketInstallationandMaintenanceServices(AIMS)supportsourcustomersfromprojectinstallationtopre-commissioningwithfullproductlifecyclesupport.OurapproachenhancesinvestmentinaJDRproductandsupportsclientsinloweringthetotallifetimecostofequipmentownership.

5. Commitment to Health and Safety: JDRiscommittedtoraisingthebarinoperationalsafetyandminimisingadverseenvironmentalimpactsbycontinuallyreviewingproductdesignandmanufacturingmethodologies.

6. Financial growth:2012wasasuccessfulyearforJDRandthecompanyisabletoreportanincreaseinrevenue,operatingprofitandorderintake.Weexpectadditionalgrowthin2013andremainconfidentinourproductdeliveringcapabilities.

OUR sTRATEgy

JDRhasachievedanimpressivelevelofgrowthoverthelastdecade,drivenbyitsdeepknowledgeofoffshoretechnologyandservices,anditsapproachtoformingclosepartnershipswithitscustomers.

SincetheacquisitionofJDRin2007byVisionCapital,GoldmanSachsandManagement,JDRhasbeendrivenbyrecognitionofthesignificantpotentialinoffshoreenergyservices.Tocapitaliseonthestrengthofitsoffering,JDRestablishedastrategyfocussedonitsdeepknowledgeofoffshoretechnologyandservices.JDRdevelopedcapabilityandcapacitytodeliverlong-length,customengineeredsubseaproductionumbilicals,subseapowercables(foroil&gasoperators)and

bUiLdiNg A gROWTh PLATfORm

Overthelastyear,JDRhasdeliverednumeroushighprofileprojectsforcustomersglobally,workingcloselywiththemtosolvecomplextechnologicalchallenges.Asdemandinitsoffshoreenergymarketscontinuestoexpand,JDRiswell-positionedtomaintainitsstronggrowthandachievesustainableprofitability.

RecentprojectawardsincludetheLondonArrayoffshorewindproject,theMeerwindoffshorewindprojectforWindMW,SwiberOffshoreConstructionfortheBruneiShellPetroleumChampionField,theFletcherFinucaneprojectforSantos,theLiuhua4-1projectforChinaNationalOffshoreOilCorporation(CNOOC)andtheOfonprojectforTotalinNigeria.

sUccEssfUL PROJEcT dELiVERy

JDRisoperatingfromanadvantageouspositioninamarketwithsignificantgrowthopportunity.InitsnextstageofgrowthJDRwillseekto:

• Outperformthehigh-growthmarketforsubseaproductsandtechnology

• Developasasupplierofchoice;continuingtobuildstrongcustomerrelationshipsandongoinginvestmentinnewproductsandoperationalefficiency.

• Achieveleadershipinindustrybestpracticefromproductdeliverytohealthandsafetyperformance

ThE NExT dEVELOPmENT PhAsE

Thesuccessofourstrategyhasbeensupportedbyimportantinvestmentdecisions.TheopeningoftheHartlepool(UK)andSattahip(Thailand)plantsmarkedatremendousstepchangeinJDR‘scapabilities.Thishasbeencomplementedbyanumberoftargetedinvestmentsinfactorythroughputandcapacity,withadditionalcapitalinvestmentinplantlayoutandequipment.Wealsooverhauledourbusinesssystemsandprocesses,whichdrasticallyimprovedproductivity,businessplanningandcostvisibility.

JDRhasalsoinvestedinitspeopleandleadershiptosupportitsgrowth.Anewexecutivemanagementteamwasappointedin2011,includingChiefExecutiveOfficer,AndrewNorman,ChiefOperationsOfficer,PeterSayles,andChiefFinancialOfficer,MartinBoden,supportedbyanewexecutiveteamwhichcontinuestostrengthenJDR‘sabilitytodeliveritsstrategictargets.Thiswassupportedbytheadditionofnewemployeesacrossanumberofkeyroles,andcomprehensiveemployeetraininganddevelopmentprogrammestobringskillstotherequisitelevelfortheup-scalingofthebusiness.

imPORTANT iNVEsTmENT iN mANUfAcTURiNg, sysTEms ANd skiLLs

inter-arraycables(fortheoffshoreRenewablesmarket).Wesubsequentlyexpandedourofferingwithdevelopmentsthatextendedtheproductportfolioandwidenedsupportservicesfromstabilitytestingtolifecycleproductsupport.

OffsHOre Oil & Gas PlatfOrm

[23] Electric and hydraulic Junction boxes

[19 & 20] hang-off and Pull in head

[8] hydraulic flying Leads

[17] J-Tube

[9] Electrical flying Leads manifold

[13] Vertebrae bend Restrictor (VbR)

[25] subsea distribution Unit (sdU)

[18] J-Tube seals

[14] Tie-back clamp and anchor base

[10] gas lift jumper

subsea Tree

JdR’s OiL & gAs sUbsEA cAPAbiLiTy

1. DynamicsubseacableDesignedtooperatewithindynamicsubseaenvironments.

2. StaticsubseacableAcabledesigntypicallyusedforcablesrestingorburiedontheseabed.

3. DynamictodynamicsubseacableAcabledesignedforoperationbetweenfloatingstructures.

4. SubseaUmbilicalTermination(SUT)Enablesmultiplewellstobecontrolledviaoneumbilicalorconnectsanddistributesumbilicalfunctionallinestoothersubseaequipment,manifoldsandtrees.

5. StabplatesConnectorplateattheendofaflyingleadwithmountedhydrauliccouplersand/orelectricalconnectorsandintendedforROVplug-intoengagethehydraulicandelectricalfunctions.

6. MudmatSubseastructureprovidingstabilitytoanSUTwhereseabedconditionsrequiretheloadtobespreadacrossalargeareatoensureseabedstability.

7. UmbilicalTerminationHead(UTH)orCobraheadARemotelyOperatedVehicle(ROV)operatedstabplateattachedtoanumbilicalorHFL.

8. HydraulicFlyingLeads(HFL)ConnectsanSUTwithothersubseaequipmenttoprovidehydrauliccontrolandchemicalinjectiondistribution.

9. ElectricalFlyingLeads(EFL)ConnectsanSUTwithothersubseaequipmenttoprovideelectricalsignalandpowerdistribution.

10. GasliftjumperAsinglelineROVmono-coupler.

11. ExtendedinfieldjumpersAnadditionallongerlengthjumperorumbilicalthatties-backtotheoriginalinfrastructure.

12. BuoyancymoduleAnumbilicalattachmentthatprovidespositivebuoyancyandminimisesmovementofadynamicumbilicalinstalledbetweenafloatingfacilityandtheseabed.

13. VertebraeBendRestrictor(VBR)Acableprotectiondeviceofinter-lockingsectionswhich,whensubjectedtocertainbendradius,willlockandpreventfurtherbendingofthecableorumbilicalinsideit.

14. Tie-backclampandanchorbaseAclampontheseabedtoholdanumbilicalorcableinpositionandpreventexcessivemovementatthetouch-downpoint.

15. TouchdownprotectorPreventsabrasionofacableatapointofdynamicmovement.

16. TransitionalorrepairjointConnectstwoumbilicalsorrepairsadamagedumbilical.

17. J-TubeProtectsacableduringthetransitionfromsubseatotopside.

JdR’s OiL & gAs PROdUcTs iN sUbsEA fiELd dEVELOPmENTs

ANNUAL REPORT 31 December 2012 8

flOatinG PrOductiOn, stOraGe and OfflOadinG

vessel (fPsO)

fPsO

[21] bend strain Reliever (bsR)

[22] bsR latching mechanism

[19] hang-off

[24] mid-Water arch clamps

[16] Transitional or repair joint

[4] subsea Umbilical Termination (sUT)

[4] subsea Umbilical Termination (sUT)

[12] buoyancy module[1] dynamic

subsea cabling

[14] Tie-back clamp and anchor base[2] static subsea cabling

[3] dynamic to dynamic subsea cable

[7] Umbilical Termination head (UTh) or cobra head

[11] Extended infield jumpers

[5] stab plates

Pipeline

subsea isolation valve (ssiV)

[15] Touchdown protector

[15] Touchdown protector [6] mud mat

JdR’s OiL & gAs sUbsEA cAPAbiLiTy

18. J-TubesealAsealtopreventlossofacorrosioninhibitor.

19. Hang-offThemechanicalconnectionpointforaterminatedumbilicalontothehostplatformorvessel.

20. PullinheadUsedduringinstallationtohandle,liftandpositionanumbilicalthroughaJ-tubetothetopsideplatform.

21. BendStrainReliever(BSR)Controlsbendingstrainintheumbilicalbyprovidingalocalisedincreaseinstiffness.

22. BSRlatchingmechanismConnectsaDynamicBendStrainRelievertothebaseofanIorJ-tubeorFPSO.

23. ElectricandhydraulicjunctionboxesTopsideconnectioninterfacecabinets.

24. Mid-waterarchclampAclamptolocatetheumbilicalbetweenupperandlowercatenaries.

25. SubseaDistributionUnit(SDU)Receiveselectricalpowerandcommunications,fibreopticcommunicationsandhydraulicandchemicalservicesfromtheUTAanddistributestomultipleuserssuchastrees,manifolds,pumpingandboostingstationsandinfieldtieins.

chAiRmAN’s REPORT

chAiRmAN’s REPORT

Iamproudtosaythat2012wastheyearinwhichJDRshoweditstruepotential.Iamalsoproudofthefactthatwehavedevelopedamodelthatgivesusversatilityandoptionstotakeadvantageofthepipelineoftheopportunitiesaheadofus.

ANNUAL REPORT 31 December 2012 10chAiRmAN’s REPORT

Wehavelongbelievedinourabilitytobecomealeadingprovideroftechnologyconnectingtheoffshoreenergyindustry.Thisisafast-growingglobalmarketthatneedsincreasinglyexpertsolutionsasmajorenergyfirmsfurtherdeveloptheirdeepwaterresourcesandoffshorewindandwaveprojectsmature.

Overthelastfiveyearsinparticular,wehaveinvestedindevelopingtechnologiesandmanufacturinginfrastructure.Ourresultsin2012areaculminationofimprovementsinourdeliveryperformanceanddrasticallyloweredcostofqualityacrossouroperations.Theseimprovementsaredirectlyreflectedinthenatureofthecontractswehavebeenawardedbymajorglobalcompanies,allofwhomrecognisethehighstandardsofreliabilityandlong-termqualityweofferourcustomers.

Ourinvestmentinworld-classfacilitieshasbeensupplementedbytheintroductionofanewleadershipteamwhobringawealthofexperienceofrunninglargerbusinesses.Ourbenchstrengthissecondtonone,withtheadditionofseniordirectorsandmanagersalongwithourhighlyexperiencedemploymentcorewhohavebenefittedfromoursignificantgrowth.

Havingdeliveredarecordperformancein2012,wearecontinuingthemomentuminto2013andbeyond.We’vedonethelearning,thegrowingandarenowinprimeshapetotakeJDRontogreaterheights.Ourfuturecouldnotbebetter.

Noneofthiswouldhavebeenpossiblewithoutthecommitment,enthusiasmandhardworkofourcolleaguesthroughoutwhathasbeenaremarkableyearinthedevelopmentofourbusiness.Iwouldalsoliketothankourshareholdersfortheirunwaveringsupportandwisecounseloverthecourseoftheyear.AndtoourcustomersweowethelargestdebtofgratitudeforthetrustandconvictionthatJDRdoesindeedprovidetheirVitalConnections.

Pat HerbertExecutiveChairman,JDR

5April2013

A LEAdiNg PROVidER Of TEchNOLOgy

cEO’s REPORT

chiEf ExEcUTiVE OfficER’s REPORT

IamdelightedtoreportthatJDRhasdeliveredarecordperformancein2012,layingaplatformthatIfirmlybelievewillenablethecompanytoachieveevengreatersuccessinthefuture.

Ourrecordrevenuesof£129.9mandrecordEBITDAof£25.8mforthetwelvemonthsto31December2012clearlydemonstratehowthetargetedinvestmentswemadeinrecentyearsarenowcontributingtoJDR’soutstandingperformance.

Ourexecutioncapabilities,combinedwithagrowing‘full-service’installationsupportandaftermarketoffering,placesusinapowerfulpositionfromwhichtodrivesustainableandprofitablefuturegrowth.

ANNUAL REPORT 31 December 2012 12cEO’s REPORT

AtJDR,wearefirmlycommittedtoworkingcloselywithourcustomersinordertounderstandhowwecanbestcontributetotheirsuccessbydeliveringthehighestqualityproductsandserviceson-timeandtotheexactingtechnicalspecificationstheyrequire.

Weachievedarecordorderintakeoverthecourseoftheyear,includingimportantnewbusinesswinsinallofourtargetmarketsectors.Asaresult,wehavedevelopedanddeliveredawiderangeofproductsformajoroffshoreenergyprojectsaroundtheworld.ThishasincludedtheChinaNationalOffshoreOilCorporation’sLiuhua4-1fieldtiebackproject,SwiberOffshoreConstructionintheShellBrunei’sChampionFieldandacomplexscopeofworkfortheAustralianoilandgasoperatorSantostonameafew.Inaddition,wearealsoveryproudtohavebeenselectedbyWindMWastheirpartnerfortheMeerwindSud/OstOffshoreWindfarm–ourfirstwindenergyprojectinGermanwaters.

Oursuccessfulworkontheseprojectsshowcasesoursubseadesign,engineeringanddeliverycapabilities.Furthermore,ourcustomisedtechnologiesinumbilicals,powercablesandsubseaequipmenthaveallowedustodeliveroptimalpower,controlandcommunicationsinsomeoftheharshestandmostdemandingoffshoreenvironments.

Wehaveimplementedclearandrobustplanningsystemsthatgiveusexcellentvisibilityintoourmanufacturingprocesses,resultinginreducedleadtimesandincreasedproductivity.Thisfocusonefficiencyandflexibilityhasenabledustoachieverecordlevelsofcustomerdeliveryperformance.

Lookingahead,wehavesetourselvesclearchallengesfor2013,andweareconfidentthatourfocusonhighgrowthglobalmarkets–offshoreoil,gasandrenewables–willenableustocontinuetodriveorderintakegrowth.Asia’sthrivingoilandgasmarketsareparticularlyappealingprospectsforus,asaretheMiddleEastandEuropeanrenewablessector,notablyGermanyandtheNorthSea.

Wewillcontinuetoextendthebreadthofourproductrangebeyondourcoreumbilicalbusiness.Aspartofthisstrategy,weplantoexpandtherangeofourthermoplasticumbilicalproductsanddevelopsubseapowercableofferingswithincreasedvoltagecapability,applyingnewmaterialsandtechnologiestoreduceinstallationandhandlingtimeaswellascostforbothsubseaoilandgasandoffshorerenewablepowergeneration.

Wearealsotransitioningourselling,engineering,projectmanagementandaftermarketservicestobeclosertoourend-customers.Thisisintendedtohelpstrengthenourpositionasapreferredinternationalsuppliertothemajoroilandgasproducersandrenewableenergyoperatorsaroundtheworld.

Buildingontheinvestmentsinourworld-classmanufacturingfacilitiesinHartlepool,LittleportandSattahip,wearenow

workingtowardsdeliveringreturnsonthesecommitmentsandmaximisingcapacityutilisation.Theproductcomponentstandardisationwehaveimplementedthusfarsupportsautomationand‘configurationtoorder’whilstmaintainingflexibility.WealsoseeadditionalopportunitieswithenhancedITcapability,andhaveinitiatedprojectstofurtherincreaseproductivityandperformancetosupportengineering,planninganddocumentationautomation.

Wewillalsocontinuetodevelopour‘one-stop-shop’offeringofanalysis,projectexecution,installationsupportandaftermarketservices.Whilstwehavemadesignificantprogress,werecognisethatwestillhavefurthertogoandareworkinghardondeliveringtheseimprovements.

Mostimportantly,werecognisethatourpeopleareourcoreassets.Wehavedonemuchtostrengthenourmanagementteamandhavesignificantlyupgradedourcapabilityinengineering,technologydevelopment,manufacturing,humanresources,ITandcommunications.Withagreatteamofpeoplenowonboard,wecontinuetoinvestintraininganddevelopmenttomaximisetheiropportunitiesandpotential.

Wehavesetourselvesaninternalobjectiveofbecomingapreferredemployerinthesector.Inordertoachievethis,wehaveincreasedourinvestmentintrainingandpeopledevelopment,movedtobestinclasshealthandsafetyperformancethroughourSTOPprogramme,andmadesignificantprogresstowardsimprovingemployeecommunicationsandincentiveandrewardprogrammes.

2012hasseentheinvestmentsmadeinrecentyearsstarttodeliver.

Wenowhaveworld-classfacilitiesandastrongteamdeterminedtotakeadvantageofagrowingglobalmarketforoffshoreenergy.ThiscreatesastrongoutlookforJDRandIamconfidentinourabilitytodeliverrenewedgrowthin2013andbeyond.

andrew normanChiefExecutiveOfficer,JDR

5April2013

This focus on efficiency and flexibility enabled us to achieve record customer delivery last year.

INTRODUCTION

fULLy iNTEgRATEd

sysTEms & PROcEdUREs

ANNUAL REPORT 31 December 2012 14hEALTh, sAfETy ANd ThE ENViRONmENT

hEALTh, sAfETy ANd ThE ENViRONmENTJDRistotallycommittedtoensuringallemployees,visitorsandcontractors,wherevertheymaybeinourglobalorganisation,returnfromworkuninjured.Wearefocussedonminimisinganyadverseenvironmentalimpactsofourbusinessactivitiesbycontinuallyreviewingproductdesignandmanufacturingmethodologies.

ApreventativehealthandsafetystrategyisatopprioritywithintheJDRbusiness,workingfromtheprinciplethatallincidents–bothlargeandsmall–canbeprevented.Ourapproachisintegratedintoourculture,managementsystemsandpractices.Asaresult,allemployees‘own’HSEandareempoweredtopreventunsafeactivity.

SincetheintroductionofourSafetyManagementSystemin2008,thenumberofaccidentshasdeclineddramaticallyandhascontinuedtodoso.InourworktoimproveourSafetyManagementSystem,weareinvolvingouremployees,clientsandsupplierstoidentifyandimplementindustrybestpractice.Wehavealsocontinuedtoinvestinstructuredemployeetrainingprogrammes.RecentinitiativesincludeworktoidentifyandaddressgapsinaccidenttrainingandintroductionoftheIOSHManagingSafelycourseforourmanagersandsupervisors.

Weensurethatourpracticesareindependentlyverified.Forexample,ourSafetyManagementSystemisregularly

verifiedbyLloyd’sRegisterQualityAssurance(LRQA),aUKAS-accreditedproviderofmanagementsystemcertification,verificationandtraining.

AllourglobalfacilitieshavetheirmanagementsystemscertifiedtoOHSAS18001(healthandsafetymanagementsystemstandard).WehaverolledoutISO14001(environmentalmanagementsystemstandard)followingsuccessfulverificationofourLittleportfacilityandarepreparingforrolloutsatourotherglobalsites.WealsoparticipateinindustryorganisationssuchastheUmbilicalManufacturersFederation(UMF)wherewehavechairedtheHealthandSafetyCommitteeforthelastthreeyears.

sAfETy mANAgEmENT

In2012,JDRcarriedoutanenvironmentalandkeyhealthandsafetyassessmentatallofitsmainmanufacturingsites:LittleportandHartlepoolintheUK,SattahipinThailandandtheHoustonServiceCenter.TheprojectwasdesignedtoreviewJDR’scompliancewiththekeyenvironmental,healthandsafety(EHS)legislationateachlocation,identifyanymaterialbreachesandwherenecessarymakerecommendationsforfurtheractiontoclarifyanyliabilities.

Fullreportswereprovidedforeachsitevisitedandactionplansareinplacetoaddressanumberofminorrecommendations.AlltheJDRsitesvisitedrepresentedalowtomediumriskofcontaminatedlandliabilities.Inaddition,nomaterialEHSissueswereidentifiedandmanagementatallofJDR’sfacilitieswereawareofallEHSaspectsandimpactsaffectingthesite,andareproactivelymanagingthese.

ENViRONmENTAL AssEssmENT

cfO’s REPORT

chiEf fiNANciAL OfficER’s REPORT

JDRdeliveredarecord-breakingfinancialperformanceoverthecourseoftheyear,witha56%increaseinrevenuehelpingtheGrouptoachievearecordEBITDAof£25.8minthe12monthsto31December2012.ThiswasdrivenbyanincreasinglybuoyantmarketandtheresultinggrowthindemandforJDR’sproducts,withtheGroupbenefittingfromthesubstantialinvestmentsithasmadeinitspeople,processes,systemsandfacilitiesinrecentyears.

ANNUAL REPORT 31 December 2012 16cfO’s REPORT

TheGroupchangeditsaccountingyear-enddateintheperiodfrom31Marchto31DecembertobringtheGroupintolinewithindustrypractice.Thefinancialstatementsattachedarethereforefortheninemonthsto31December2012(comparativesareforthe12monthsto31March2012).Tocomparesimilarperiodsinthisannualreport,thedirectorsarereportingonanunauditedproformacalendaryearbasisforboth2012and2011.Thedirectorsbelievethatthisgivesamoretransparentandcomparablepresentationforthereader.

Revenuerosefrom£83.2minthe12monthsto31December2011to£129.9minthe12monthsto31December2012which,combinedwithimprovedbusinessprocesses,resultedinarecordEBITDAof£25.8mfortheyear.Thisrepresentedanincreaseof£29.9mcomparedwith2011,whentheGroupdeliverednegativeEBITDAof£4.1m.

Operatingcashflowincreasedfromanetoutflowof£10.5minthe12monthsto31December2011toanetinflowof£19.6minthe12monthsto31December2012,allowingtheGrouptosubstantiallystrengthenitsbalancesheetovertheyear.JDRrenegotiateditsbankingfacilitiesandrepaid£13.3mofshareholderloansandbankdebts.Netassets,attheyearend,stoodat£31.6m.

Havingreapedthebenefitsofitsinvestmentindevelopingtechnologiesandmanufacturinginfrastructure,theGroupinvested£4.3minitscapitalexpenditureprogrammefortheyear,with£2.5mofthisgoingtowardscontinuedenhancementsatJDR’sstate-of-the-artHartlepoolplant.

Wemeasurearangeofoperationalandfinancialmetricstohelpusmanageourperformanceandachieveourbusinessplans:Revenue,EarningsBeforeInterest,Tax,DepreciationandAmortisation(EBITDA),orderintakeandcashflow.

fiNANciAL kEy PERfORmANcE iNdicATORs

Wealsotracknon-financialmetricsacrossthebusiness.Asourpeoplehavebeenattheheartofoursuccessasabusiness,wefocusontrackingthesafetyandsatisfactionofouremployees.

Revenue

EBITDA

Orderintake

Operatingcashflow

129.9

25.8

112.5

19.6

83.2

(4.1)

69.4

(10.5)

56%

£29.9m

62%

£30.1m

iNcREAsE

REVENUE

Year-on-yearrevenuesincreasedby56%from£83.2min2011to£129.9min2012.ThisisprimarilyduetotheGroup’senhancedproductmixandincreasingmarketdemand,whichhasseenJDRwidenitsexistingoilandgasmarketandmakeasuccessfulmoveintotherenewablesmarket.Therevenuemixintheyearisshowninthetablebelow.

While2012hasbeenanexceptionalyear,theGroup’sCompoundAnnualGrowthRateCAGRofproformarevenuehasbeenanimpressive24%overthepastfiveyears,demonstratingastrongtrackrecordofgrowth.

SPU

SPC

IWOCS

AIMS

OiL&GaS

REC

TOTaL

32.5

24.7

25.6

10.8

93.6

36.3

129.9

2012 £’m2012 £’m

16.5

12.1

14.9

6.1

49.6

33.6

83.2

2011 £’m2011 £’m

97

104

72

77

89

8

56

iNcREAsE %

cfO’s REPORT

JDRsawrecorddemandforitsproductsin2012,withaCAGRofapproximately20%since2008.TheGroupexpectsthislevelofgrowthtocontinueandisconfidentabouttheorderintakefor2013andbeyond.

ORdER iNTAkE

Grouptradinglossescarriedforwardfromprioryearsarebeingusedtooffsetthecorporationtaxchargefortheyear.Whiletradinglosseswillcontinuetobeavailableinto2013,thegroupisexpectedtofullyutilisetheseandbecomeliableforthepaymentofcorporationtaxinthe2013calendaryear.

TAxATiON

Asinpreviousyears,theGroupcontinuestouseEBITDAastheprimarymeasureofitsfinancialperformance,particularlyinmeasuringunderlyingperformance.

TheGroupdeliveredatransformationalincreaseinEBITDA,whichrosefromnegative£4.1min2011torecord£25.8min2012,withaCAGRofapproximately47%overthepastfiveyears.

Thissubstantialincreasewasdrivenbytherevenueincrease,productmixandmajorproductivityimprovements.ExamplesofthelatterareevidentinthesignificantreductionsinliquidateddamagestheGrouppaidtocustomers,andinthecostofqualitythatwesometimessufferduetocableshavingtobereworked.

InadditiontotheupsidethesegeneratefortheGroup’sresults,thetwofactorsareareflectionofJDR’sleadingpositionasatechnologyprovidertotheglobaloffshoreenergyindustry.

Overheadshavealsobeentightlycontrolledandwereflatovertheyear.

EARNiNgs

Thedirectorsarenotrecommendingthepaymentofadividendintheyear(2011:nil)astheincreaseinoperatingcashflowhaslargelybeenusedtoreducetheGroup’sdebtandstrengthenthebalancesheet.

diVidENds

Profitbeforetaxation(PBT)forthetwelvemonthsto31December2012was£18.1m,reflectingtheexcellentperformancedeliveredbytheGroupovertheyear.Withinthe2012calendaryear,£13.3mofPBThasbeenrecordedinthefinancialstatementsfortheninemonthperiodended31December2012(seepages30-56).

PROfiT bEfORE TAxATiON (PbT)

Profitbeforetaxationfortheninemonthsto31December2012

Addback:Interestpayable

Depreciation

Amortisationofgoodwill

Amortisationofdevelopmentcosts

Exceptionaladministrativeexpenses

EBiTDafortheninemonthsto31December2012

Add: EBITDAforthethreemonthsto31March2012

EBiTDafortheyear

13.3

0.2

3.4

0.3

0.1

0.3

17.6

8.2

25.8

REcONciLiATiON Of sTATUTORy PbT TO REPORTEd EbiTdA:

£’m

Operatingcashflowamountedto£19.6minthecalendaryear2012,with£13.3mofthisbeingusedtorepaydebt,consistingofbanklendingandshareholderloans.Thishassignificantlystrengthenedthegroupbalancesheet,sothatnetassetstotalled£31.6mat31December2012(2011:£13.5m).Theaccumulateddeficitintheprofitandlossaccounthasbeeneliminated.

cAsh fLOW ANd NET dEbT

25.8

(6.2)

19.6

(4.3)

(0.1)

(2.4)

(1.5)

-

(11.8)

(0.5)

(4.1)

(6.4)

(10.5)

(8.7)

-

(1.2)

(17.7)

27.2

10.2

(0.6)

2011 £’m

EBITDA

Changeinworkingcapital

Operatingcashflow

Capitalexpenditure

Taxation

Netinterest

Revolvingcreditfacilityloansrepaid

Disposalproceeds

Loanfromparent(repaid)/borrowed

Net cash flow

2012 £’m

REcONciLiATiON Of EbiTdA TO NET cAsh fLOW:

ANNUAL REPORT 31 December 2012 18cfO’s REPORT

TheGroupispleasedtoreportthattheconversionofsignificantlygreaterfreecashhasenabledittopaysuppliersmorepromptly,withtheageingprofilesignificantlyimprovedasaresult.Allcreditorsarenowpaidtoterms.

PAymENTs TO sUPPLiERs

Capitalexpenditureinthecalendaryearamountedto£4.3m,ofwhich£2.5mrelatedtocontinuedenhancementstotheHartlepoolplant.

Onecashindicatorisworthparticularcomment.In2012ourcashflowconversion,measuredasoperatingcashflowlesscapitalexpendituredividedbyEBITDA,was60%.Goingforward,whileweexpectEBITDAtoincreasesignificantly,workingcapitalchangesandcapitalexpenditurewillincreaseataslowerrate.Thiswillresultinariseinfreecashflow,andanincreaseincashconversionrates,whichwillbenefitthebusinessandallowtheGroupmoreoptionsastohowitusesthiscash.

cAPiTAL ExPENdiTURE

TheGroupoperatesinanumberofdifferentcountries.However,theimpactofforeignexchangeratesonconsolidatedEBITDAisnegligibleasaresultoftherelativelylowamountofincomeandcostsrecognisedintheforeignentities.Wherejustified,Groupcompaniesseektocoveranyforeignexchangeexposureoncustomercontractsbyuseofforwardcontractstakenoutoncontractacceptance.

ExchANgE RATEs

Duringtheyear,theGrouprenegotiateditsbankingfacilitieswithHSBCtotakeadvantageofthesignificantincreaseingenerationofcashflows.Consentwasobtainedtorepay£12mofshareholderloans,andbondingcostsandcovenantrequirementswerereduced.

Attheyear-end,theGrouphada£15mrevolvingcreditfacilitywithitsbankers,ofwhich£3.5mhadbeenutilised(2011:£5m).Twofacilitiestotalling£26mwereavailableforbondingpurposes,ofwhich£18.3mhadbeenutilisedattheyear-end.From1January2013,£5moftherevolvingcreditfacilitywasre-designatedtothebondingfacility,reflectingthereducedneedfordebtfundingandenhancedneedfortradefinance,asthegroup’sprospectshaveimproved.

bANk fAciLiTiEs

UnlikemanyUKcompaniescurrently,theGrouphasnodefinedbenefitretirementschemenoranyrelatedsignificantpensiondeficitandliability.TheGrouphasaGroupPersonalPension(GPP),whichisadefinedcontributionscheme.AstheschemeisaGPP,therearenotrusteesandthecompanyisnotliableforbenefitsinanyway.Thepensionisalsoacommission-basedscheme,soallthecompanypaysistheemployercontribution.272employeesintheUKaremembersofthescheme,contributingaminimumof4%ofannualbasesalaryintothescheme.Thecompanycontributioniscurrently6%.

PENsiON ObLigATiONs

martin BodenChiefFinancial&ComplianceOfficer

5April2013ECGD=ExportCreditsGuaranteeDepartment(theUK’sExportCreditAgency)

Headroom

Drawn

bANkiNg fAciLiTiEs AT 31 dEcEmbER 2012

0

RCF MAIN BONDING ECGD BONDING

2

4

6

8

10

12

14

16

(£’M

)

bOARd Of diREcTORs

Pat HerbertExEcUTiVE chAiRmAN

JoHan van de SteeniNVEsTOR diREcTOR

andrew normanchiEf ExEcUTiVE OfficER

martin bodenchiEf fiNANciAL & cOmPLiANcE OfficER

Peter SayleSchiEf OPERATiONs OfficER

PatjoinedJDRin2002asChiefExecutiveOfficerandbecameExecutiveChairmanin2011.AsCEO,hehasoverseentheGroup’smostdramaticgrowthperiod.Hiscareerbeganin1976atSmithInternational,becominganOfficerofthecorporationin1986.HejoinedBakerHughesasanExecutiveOfficerin1988withglobalP&Lresponsibility,leadingmarketandtechnologydevelopmentandcorporategovernanceactivity.

JohanisanOperatingPartneratVisionCapital,responsiblefortheglobalportfolio.HejoinedVisionCapitalin2009andalsositsontheboardsofBormioliRoccoandUnitedInitiators.PreviouslyhewasanOperatingPartneratKKRwhereheworkedonanumberofportfoliocompanies,CEOofatechnologycompanyandhasworkedatMcKinsey&CompanyandSiemensCommunications.

AndrewjoinedJDRin2011following15yearsintheenergyindustrywithDresserIncasDivisionPresidentControlValvesandRegionalPresident,Europe.Andrew’scareerhasfocussedoninternationalbusinessdevelopmentintechnology-drivenmanufacturingandengineeringcompanies,withleadershiprolesinMarconiSpaceandDefenceSystems(UK),MARSElectronics(UK),PhilipsElectronics(NL)andSchindlerElevatorCorp,Switzerland.

bob Solberg NON-ExEcUTiVE diREcTOR

andrew ricHiNVEsTOR diREcTOR

BobjoinedJDRasNon-ExecutiveChairmanin2004,steppingdowntobecomeaNon-Executivedirectorin2012.Forover30yearsBobheldincreasinglyresponsiblepositionswithTexaco,becomingpresidentofTexacoInc’sWorldwideDevelopmentdivisionfrom1998untilhisretirementin2002.SincethenhehasservedonanumberofboardsincludingPioneerNaturalResources,helpingthecompanytripleitsmarketcapitalisation,ScorpionOffshoreLtdandHyperdynamics,bothofwhichhetooktosuccessfulIPOs.

AndrewisaPartneratVisionCapitalhavingjoinedin2007.InadditiontoJDRhesitsonboardsatNordaxFinans,EliotManagementServicesLLP(holdingcompanyforParkCake,PorkFarmsandFletchersBakeries)andtheAdvisoryBoardofTrioLLP(holdingcompanyforABL,MGandSwissHaus).PreviouslyhespentthreeyearsatLazardandfiveyearsatArthurAnderson/DeloittewherehequalifiedasaCharteredAccountant.

MartinjoinedJDRin2011fromBetty’s&TaylorswherehewasChiefFinancialOfficerfor18months.MartinpreviouslyworkedasGroupFinanceDirectoratGenusplc,andforGreatUniversalStores,ZurichFinancialServices(UKISA),NatWestUKandWHSmith.

PeterjoinedJDRin2011after12yearsinbusinessturnaroundrolesincludingworkwithOceaneeringinBrazilandassignmentsinChinaandtheUSA.Hewasinstrumentalinthe1992managementbuyoutofSignatureIndustriesLtd,servingasDirectorandGeneralManager,andbeforethishewasManagingDirectorofVBandplcandGroupOperationsManagerforTCCplc.HiscareerbeganintheRoyalNavy.

JdR bOARd Of diREcTORs

ANNUAL REPORT 31 December 2012 20

Pat HerbertExEcUTiVE chAiRmAN

andrew normanchiEf ExEcUTiVE OfficER

martin bodenchiEf fiNANciAL & cOmPLiANcE OfficER

Peter SayleSchiEf OPERATiONs OfficER

ExEcUTiVE mANAgEmENT TEAm

louiSe cliftongROUP hEAd Of hR

Paul gaHmExEcUTiVE VicE-PREsidENT sALEs & mARkETiNg

craig ewing bUsiNEss sysTEms diREcTOR

PauljoinedJDRin2005withresponsibilityforbusinessdevelopment,marketingandstrategicplanning.FormerlywithOceaneering’sMultiflexDivision,PaulhasheldvariousseniormanagementpositionsthroughoutEuropeandtheUS.

CraigjoinedJDRin2011fromTNTPostUKwherehewasITDirector.Craig’sITexperiencespansanumberofworldclassorganisationsintheB2B,logisticsandconstructionsectorsandhasincludedroleswithParcelforceWorldwide,WalleniusWilhelmsenLogisticsandtheMillerGroup.

LouisejoinedJDRfromPPGIndustrieswheresheheldanumberofrolesincludingHRDirector,IndustrialCoatings,EMEAandHROperationsDirector,EMEA.PriortoPPG,LouiseheldkeyHRpositionsinRandomHouse,GrampianFoods,BritishSteelandBosch.

JameS youngENgiNEERiNg diREcTOR

martin cHarleSdiREcTOR, Aims sERVicEs

JamesjoinedJDRinApril2000asaseniordesignengineerfornewproductdevelopment.HewasappointedEngineeringDirectorinNovember2011afteraseriesoftechnicalmanagementroleswithinthebusiness.PriortoJDR,JamesworkedforBICCandDowty.Jameshasadegreeinmechanicalengineering,isacharteredengineerandhasanMBAfromCranfield.

MartinjoinedJDRin2008astheGroup’sfirstaftermarketservicesdirector,leadingaglobalserviceandsupportteam.BeforeJDRhewasAftermarketDirectorfortheSubseaControlsgroupofGEOil&Gas.Martinhasbeenactiveintheoilandgasindustryforover28years,includingroleswithABBandBakerHughes.

JdR ExEcUTiVE mANAgEmENTTEAm

sEE bOARdOf diREcTORs

OPPOsiTE

diREcTORs’ REPORT

diREcTORs’ REPORT

ThedirectorspresenttheirreportandtheauditedfinancialstatementsoftheGroupandofthecompanyfortheninemonthsended31December2012.

TheprincipalactivityoftheGroupisthedesignandmanufactureofumbilicalsystemsandsubseapowercablesfortheoffshoreoilandgasandrenewableenergyindustries.Theseproductsaresomeoftheessentialcomponentsforthedevelopmentandproductionofoffshoreoilandgasandthedeliveryofenergyderivedfromoffshorewindfarms.ThegrouphasaninternationalmanufacturingfootprintwithfacilitiesinLittleport(Cambridgeshire)andHartlepoolintheUK,andSattahipinThailand.

Theprincipalactivityofthecompanyistoactasaholdingcompany.ThesubsidiaryundertakingsprincipallyaffectingtheprofitsornetassetsoftheGroupintheperiodarelistedinnote10tothefinancialstatements.

PRiNciPAL AcTiViTiEs

TheGroup’sprofitfortheninemonthperiodto31December2012amountedto£12,236,000(yearto31March2012:£17,480,000)andhasbeentransferredtoreserves.Thecompany’sprofitforthetheninemonthperiodto31December2012amountedto£756,000(yearto31March2012:£15,621,000)andhasbeentransferredtoreserves.Thedirectorsdonotrecommendthepaymentofadividend(2011/2012:£nil).Theproformacalendarresultsfor2012and2011areshownintheChiefFinancialOfficer’sreportandonpages57to59.

REsULTs ANd diVidENds

AreviewofthebusinessoftheGroupduringtheyearended31December2012(incorporatingtheninemonthsofthestatutoryaccountspresentedonpages31to56),thepositionoftheGroupasat31DecemberandadescriptionoftheprincipalrisksanduncertaintiesfacingtheGroupcanbefoundonpages27to28.

TheGroupcontinuestoinvestinresearchanddevelopment,andmoredetailscanbefoundintheChiefExecutiveOfficer’sreportonpages11to12.Thedirectorsregardinvestmentinthisareaasaprerequisiteforsuccessinthemediumtolong-termfuture.

bUsiNEss REViEW

TheGroup’sactivitiesexposeittoanumberoffinancialrisksincludingcreditrisk,cashflowandforeignexchangerisk,andliquidityrisk.TheuseoffinancialderivativesiscontrolledbytheBoardandfinancefunction.TheGroupdoesnotusederivativefinancialinstrumentsforspeculativepurposes.

(a) Cashflow and foreign exchange riskTheGroup’sactivitiesexposeitprimarilytothefinancialrisksofchangestoforeigncurrencyexchangerates,althoughrevenuesandcostsarematchedwherepossible.TheGroupusesforeignexchangeforwardcontractswherenecessarytohedgeresidualmaterialexposures.

(b) Credit risk TheGroup’sprincipalfinancialassetsarebankbalancesandcash,

andtradeandotherreceivables.TheGroup’screditriskisprimarilyattributabletoitstradereceivables.Theamountspresentedinthebalancesheetarenetofallowancesfordoubtfulreceivables.TheGrouphasnosignificantconcentrationofcreditrisk,withexposurespreadoveralargenumberofcounterpartiesandcustomers,mostofwhichhavehighcreditratings.

(c) Liquidity risk TheGroupusesamixtureoflong-termandshort-termdebtfinance

toensurethatsufficientfundsareavailableforongoingoperationsandfuturedevelopments.

fiNANciAL Risk mANAgEmENT

Intheperiod,theGroupandcompanychangedtheaccountingyearendfrom31Marchto31Decembertobringthecompanyinlinewithindustrypractice.

yEAR ENd chANgE

ANNUAL REPORT 31 December 2012 22diREcTORs’ REPORT

ThesharecapitaloftheultimateholdingcompanyisownedbyfundsadvisedbyVisionCapitalLLP,GoldmanSachsandmanagement.sUbsTANTiAL

shAREhOLdERs

TheBoardbelievesthatthegroup’ssuccessisduetothequalityandcommitmentofitsworkforce.TheGroup’semployeemanagementpriorities,includingitsremunerationstrategies,arebasedonrecruitingandretainingthebestpeopleintheindustryandencouragingworkingpracticesthatimproveproductivity,reducecosts,developtalentandprovidejobsatisfaction.Further,theBoardrecognisestheneedforcommunicationwithemployeesateverylevelandiscommittedtoongoinginteractionwithallitsemployees.Thisisachievedinanumberofways,includingregularnewslettersfromtheChiefExecutiveOfficer,andfrequent“allhands”presentationsbytheExecutiveManagementTeamtogroupsofstaffatallcompanylocations.Duringtheperiod,JDRemployed,onaverage,434employees,excludingcontractors,whowerebasedinUK,Houston,Thailand,GermanyandSingapore.

TheGroupiscommittedtoapolicyofequalopportunityinmattersrelatingtoemployment,trainingandcareerdevelopment,andisopposedtoanyformoflessfavourabletreatmentaffordedonthegroundsofage,disability,sex,maritalstatus,sexualorientation,nationality,raceorreligion.

EmPLOymENT POLicy ANd iNVOLVEmENT

Applicationsforemploymentfordisabledpersonsarealwaysfullyconsidered,bearinginmindtheabilitiesoftheapplicantconcerned.Intheeventofmembersofstaffbecomingdisabled,everyeffortismadetoensurethattheiremploymentwiththeGroupcontinuesandthatappropriatetrainingisarranged.ItisthepolicyoftheGroupthatthetraining,careerdevelopmentandpromotionofdisabledpersonsshould,asfarasispossible,beidenticaltothatofotheremployees.

disAbLEd EmPLOyEEs

Theauditors,GrantThorntonUKLLP,haveindicatedtheirwillingnesstocontinueinofficeandappropriatearrangementshavebeenputinplaceforthemtobedeemedreappointedasauditorsintheabsenceofanannualgeneralmeeting.

AUdiTORs

Thisreporthasbeenpreparedinthecontextofthereportdated20November2007,GuidelinesforDisclosureandTransparencyinPrivateEquity.WALkER REPORT

Thedirectorswhoheldofficeduringtheperiodandatthedateofthisreportwereasfollows:

Pat Herbert ExecutiveChairman

robert Solberg Non-executiveDirector

Johan Van de Steen InvestorDirector

Andrew rich InvestorDirector

Andrew Norman ChiefExecutiveOfficer(appointedtotheboardOctober2012)

Peter Sayles ChiefOperationsOfficer

Martin Boden ChiefFinancial&ComplianceOfficer

Alistair Mackie CompanySecretaryAlistairMackieresignedasadirectorofthecompanyon3April2013

diREcTORs

ByorderoftheBoard

martin BodenDirector

5April2013

cORPORATE gOVERNANcE REPORT

cORPORATE gOVERNANcE REPORT

“TheBoardisfirmlycommittedtoachievingthehigheststandardsofcorporategovernance.Wetakeseriouslyourresponsibilityindemonstratingleadershipingoodgovernancepracticesthatultimatelyinformsthedecisionsandactionsofourstaffduringtheirday-to-daywork.TheBoardisambitiousingrowingthecompanyandisactivelyimprovingitsgovernancetoolsandtrainingforourpeople.Thiswillinturnenableustoachieveourstrategicobjectives,createvalueforourshareholdersandbuildasustainablebusinessforthelong-term.”PatHerbert,ExecutiveChairman

Asaprivately-ownedcompany,JDRisnotrequiredtocomplywiththeCodebutseekstoabidebythespiritofitsprinciples.Inthesecondhalfof2012weappointedaHeadofInternalAudittosupportthegroupinimprovingitsgovernanceandthiswillcontinueinto2013.TheUKCodeisbeingusedtoguidetheseimprovements.

ThE Uk cORPORATE gOVERNANcE cOdE

AsExecutiveChairman,PatHerbertisultimatelyresponsibleforappraisingtheBoardofallmattersaffectingtheGroupanditsperformance.HeisalsoresponsiblefortheeffectiveoperationandchairingoftheBoardandensuringthatalldirectorsareabletoplayafullpartinitsactivities.TheChairmanensureseffectivecommunicationwithshareholdersandthatalltheBoardmembersareawareoftheviewsoftheshareholders.

ROLE Of ThE ExEcUTiVE chAiRmAN

AsChiefExecutiveOfficer,AndrewNormanisresponsibleforleadingtheExecutiveManagementTeaminrunningtheGroup’sbusiness,includingformulatingstrategyproposalsforBoardapprovalandensuringthattheagreedstrategyisimplementedinatimelyandeffectivemanner.

ROLE Of ThE chiEf ExEcUTiVE OfficER

ANNUAL REPORT 31 December 2012 24cORPORATE gOVERNANcE REPORT

JDR’sBoardconsistsofanExecutiveChairman,ChiefExecutiveOfficer,ChiefFinancial&ComplianceOfficer,ChiefOperationsOfficer,onenon-executivedirectorandtwoinvestordirectors.TheBoardbelievesthatithastheappropriatebalanceofskills,experience,independenceandknowledgeofthecompanytoenableittodischargeitsdutiesandresponsibilitieseffectively.

Thedirectorsupdatetheirskills,knowledgeandfamiliaritywiththecompanybyattendingappropriateexternalseminarsandtrainingcourses,meetingwithseniormanagementandvisitingtheregionalofficesandmanufacturingplants.

TheBoardisresponsibletotheshareholdersforthesuccessoftheGroupanddeterminestheGroup’slong-termdirection,businessobjectives,keypoliciesandstrategy.TheBoardalsomonitorsbusinessperformanceandreviewsriskcontrols.TheBoardhasdelegatedauthorityforallday-to-daymanagementoftheGroup’saffairstotheExecutiveManagementTeam,detailsofwhichcanbefoundonpage20.

TheBoardhadaprogrammeofnineboardmeetingsinthenine-monthperiod,plusanadditionalstrategyday.TheBoardisprovidedwithmonthlyandtimelyinformationonthefinancialperformanceofthebusiness,togetherwithreportsonoperationalmatters,marketconditions,competitorenvironmentandotherrelevantissues.Thedirectorshaveequalvotingrightswhenmakingdecisions,excepttheExecutiveChairmanwhohasacastingvote.Alldirectorshaveaccesstotheadviceandservicesofthecompanysecretaryandmay,iftheywish,takeprofessionaladviceattheGroup’sexpense.

bOARd Of diREcTORs

during the year, the Board approved and endorsed:• TheAnnualReportandAccounts

• Groupbudgets

• Strategicplansandpriorities,includingrepaymentofdebtandinvestor’sloans

• Capitalallocationandinvestmentpriorities

• Theacceptanceofhigh-valueorhigh-riskorders

AcTiViTiEs Of ThE bOARd iN 2012

Note:Adashindicatesadirectorisnotamemberofaboardcommittee.()Bracketsmeanattendancebyinvitation,notasamember.

Numberofmeetingsheldin9monthperiod

Numberofmeetingsattendedby:

Pat HerbertExecutive Chairman

Andrew NormanChief Executive Officer

Martin BodenChief Financial & Compliance Officer

Peter SaylesChief Operations Officer

robert SolbergNon-Executive Director

Johan Van de SteenInvestor Director

Andrew richInvestor Director

9

9

8

9

8

9

8

9

1

1

0

(1)

-

1

1

1

2

2

2

(2)

-

-

-

2

1

-

-

(1)

1

1

1

1

TyPE Of mEETiNg bOARd AUdiT cOmmiTTEE

REmUNERATiON cOmmiTTEE

hsE cOmmiTTEE

cORPORATE gOVERNANcE REPORT

“TheglobaleconomicenvironmentcontinuestoremainuncertainwhiletheGroup’saspirationforgrowthremainshigh.The Audit Committeemustthereforemonitor,interrogateandchallengemanagementonitsriskmitigation,financialperformanceandtheeffectivenessofitsinternalcontrols.TheCommitteelookstoitsauditorstoensurethattheiractivitiesremainfocusedintherightareasandthatManagementrespondtotheauditors’keyfindingsinatimelymanner.”andrewRich,ChairmanoftheauditCommittee

“The remuneration Committee’s objectiveistoprovidearemunerationpolicywhichenablesthebusinesstoattract,retainandmotivatethequalityofseniormanagementrequiredtodelivertheGroup’sstrategicambitionandcreatesustainableshareholdervalue.”PatHerbert,ExecutiveChairman

“The HSe Committeehasitsprimefocusonthewelfareofourpeopleandthecommunitiesinwhichweoperate.Ouraimistodeliversaferworkingforallbychangingbehaviour,embeddingexistingbestpracticesandinvestingfurtherinprogrammesandprocessesthatwillencouragesafeworkingineveryJDRfacilityandincustomerlocationswhereourpeoplemaywork.”RobertSolberg,Non-ExecutiveDirector

“The eMTisaccountableforexecutingtheGroup’sstrategyandforrunningthebusinessday-to-dayinawaythatisrightforallourstakeholders.”andrewNorman,ChiefExecutiveOfficer

TheBoarddelegatescertaingovernanceresponsibilitiestoBoardCommitteesandthesearedetailedbelow.

Audit Committee

TheAuditCommitteeischairedbyAndrewRich,investordirectorandacharteredaccountant,andincludesPatHerbert,ExecutiveChairman,andAndrewNorman,ChiefExecutiveOfficer.TheBoardremainssatisfiedthattherecentandrelevantfinancialexperienceoftheAuditCommitteeChairman,togetherwithmembersPatHerbertandAndrewNorman,enablestheCommitteetodischargeitsduties.

TheCommitteemettwiceintheperiodandreporteditsconclusionstotheBoardaftereverymeeting.TheChiefFinancial&ComplianceOfficerattendedeverymeeting.TheCommitteehasfullydefinedtermsofreference,whicharereviewedannually.ThetermsofreferenceoutlinetheCommittee’sobjectivesandresponsibilitiesrelatingtofinancialreporting,internalcontrols,riskmanagement,andtheapplicationofappropriateaccountingstandardsandprocedures.Specificresponsibilitiesincludereviewingandrecommendingforapprovaltheannualfinancialstatements,reviewingtheGroup’saccountingpolicies,reviewingtheeffectivenessofinternalcontrols,andreviewingthescopeandresultsoftheexternalaudit.

TheCommitteeappointedaHeadofInternalAuditin2012,whoseroletodatehasincludedimprovingthesuiteofcorporategovernancepoliciesandprocedures,includingacodeofethics,anti-briberyandcorruptionandestablishingaconfidentialreportinghotline.

TheCommitteealsomonitorstheindependenceandobjectivityofGrantThornton,theexternalauditors,byagreeingtheleveloftheirremunerationandtheextentoftheirnon-auditservices.

remuneration Committee

TheRemunerationCommitteecomprisesfivedirectors,includingRobertSolberg,JohanVandeSteen,AndrewRichandAndrewNorman,andischairedbyPatHerbert,theExecutiveChairman.TheCommitteehasdefinedtermsofreference,whicharereviewedannually.TheCommitteeisresponsibleformakingrecommendationstotheBoardconcerningtheremunerationstrategy,recruitmentframeworkandlong-termincentiveplansforthebusiness.

during 2012, the Committee:

• Approvedbonuses

• Reviewedthesalarylevelsandincreasesforallstaff

Health, Safety and environmental (HSe) Committee

TheHealth,SafetyandEnvironmentalCommitteeischairedbyRobertSolbergandincludesAndrewNorman,JohanVandeSteenandPeterSayles.TheCommitteehasamandatetomaintainacomprehensiveoverviewofthepolicies,practicesandperformanceofthegroupinrespectofhealth,safetyandtheenvironment.ConclusionsandrecommendationsfromthecommitteearereporteddirectlytotheBoard.

During2012,theCommitteereviewedtheaccidentandincidentfigures,encouragedthecontinuedsuccessofvarioushealthandsafetyinitiatives,consideredresourcingneedsandcommissionedcomprehensiveenvironmentalreportsforeachmajorsiteinDecember2012.

executive Management Team (eMT)

TheExecutiveManagementTeamhasresponsibilityfortheday-to-dayrunningoftheGroupandmeetsweekly.Atthismeeting,allmembersoftheteamgiveabriefreportovertheirindividualareasofresponsibility.

cOmmiTTEEs ANd ThEiR AcTiViTiEs iN 2012

ANNUAL REPORT 31 December 2012 26cORPORATE gOVERNANcE REPORT

FundsadvisedbyVisionCapitalLLParethelargestshareholderintheGroupandtwoinvestordirectorshavenon-executivepositionsontheBoard.TheExecutiveChairman,ChiefExecutiveOfficerandChiefFinancial&ComplianceOfficerhaveacontinuingdialoguewiththeshareholders.Inaddition,GoldmanSachs,asaminorityshareholder,alsohasanobserverwhoattendsboardmeetings.

hOW WE cOmmUNicATE WiTh OUR shAREhOLdERs

Asdescribedabove,thedirectorshaveareasonableexpectationthattheGrouphasadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.Forthisreason,theycontinuetoadoptthegoingconcernbasisinpreparingthefinancialstatements.Informingthisview,thedirectorshavereviewedtheGroup’sbudgets,plansandcashflowforecasts,andtheexistingbankingfacilities.

gOiNg cONcERN

TheBoardtakesultimateresponsibilityfortheGroup’ssystemsofriskmanagementandinternalcontrolsandforreviewingtheireffectiveness.TheGroup’sprincipalrisksanduncertaintiesandhowtheyaremitigatedaresummarisedonpages27to28.

TheGroup’ssystemsandcontrolsaredesignedtomanage,ratherthaneliminate,theriskoffailuretoachievebusinessobjectives,andcanonlyprovidereasonableandnotabsoluteassuranceagainstmaterialmisstatementorloss.

ThekeyfeaturesoftheGroup’ssystemofinternalcontrolsare:• Anestablishedmanagementstructureoperatingthroughoutthegroupwithdefinedlevelsof responsibilityanddelegationofauthorities

• Operatingguidelinesandsystemswithauthorisationlimitssetatappropriatelevels

• Acomprehensivebudgetingandforecastingsystem,whichisregularlyreviewedandupdated

• Monthlymanagementreportingincludingregularcomparisonofactualresultsagainst latestforecasts

• Regularreportingfromprojectmanagersontheperformanceandongoingrisksofeveryproject

• Approvalofinvestmentandcapitalexpendituredecisions

• Regularmonitoring,reviewandreportingofhealth,safetyandenvironmentalmatters.

hOW WE mANAgE iNTERNAL cONTROLs

Thedirectorsareresponsibleforpreparingtheannualreportandthefinancialstatementsinaccordancewithapplicablelawandregulations.

Companylawrequiresthedirectorstopreparefinancialstatementsforeachfinancialyear.Underthatlaw,thedirectorshaveelectedtopreparefinancialstatementsinaccordancewithUnitedKingdomGenerallyAcceptedAccountingPractice(UKAccountingStandardsandapplicablelaw).ThefinancialstatementsarerequiredbylawtogiveatrueandfairviewofthestateofaffairsoftheGroupandParentCompanyandoftheprofitorlossoftheGroupforthatperiod.Inpreparingthesefinancialstatements,thedirectorsarerequiredto:

• Selectsuitableaccountingpoliciesandthenapplythemconsistently

• Makejudgementsandestimatesthatarereasonableandprudent

• StatewhetherapplicableUKAccountingStandardshavebeenfollowed,subjecttoanymaterialdeparturesdisclosedandexplainedinthefinancialstatements,and

• PreparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethattheGroupwillcontinueinbusiness.

ThedirectorsareresponsibleforkeepingadequateaccountingrecordsthatdisclosewithreasonableaccuracyatanytimethefinancialpositionoftheGroupandenablethemtoensurethatthefinancialstatementscomplywiththeCompaniesAct2006.TheyarealsoresponsibleforsafeguardingtheassetsoftheGroupandhencefortakingreasonablestepsforthepreventionanddetectionoffraudandotherirregularities.

Insofaraseachofthedirectorsisaware:• ThereisnorelevantauditinformationofwhichtheGroup’sauditorsareunaware;and

• Thedirectorshavetakenallstepsthattheyoughttohavetakentomakethemselvesawareofanyrelevantauditinformationandtoestablishthattheauditorsareawareofthatinformation.

ThedirectorsareresponsibleforthemaintenanceandintegrityofthecorporateandfinancialinformationincludedontheGroup’swebsite.LegislationintheUKgoverningthepreparationanddisseminationoffinancialstatementsmaydifferfromlegislationinotherjurisdictions.

sTATEmENT Of diREcTORs’ REsPONsibiLiTiEs

Risk mANAgEmENT REPORT

Risk mANAgEmENT REPORT

“TheeffectivemanagementofriskswithintheGroupisessentialinhelpingusachieveourvisionofgrowthandcustomerservice.”MartinBoden,ChiefFinancial&ComplianceOfficer

Riskmanagementiskeytodeliveringprojectsuccessforourcustomersanddrivingsustainablegrowthforourstakeholders.Ourcustomersrequireustoprovidesolutions,andwemustovercomeanumberofriskstodothissafely,on-timeandon-budget.

ThediagramaboveshowstheriskmanagementprocesswithintheGroup.TheBoardleadsthediscussionsrelatingtoriskandprovidesdirection.ThisapproachiscascadeddowntheGroupthroughtheExecutiveManagementTeam,linemanagersandindividualprojectteams.

Risk mANAgEmENT is fUNdAmENTAL TO sUsTAiNAbLE gROWTh

JDRinvolvesourcustomersandpartnersinagreeingriskmattersandhowthesearebestmitigated.Althoughriskismanagedconstantlyoneveryoneofourprojects,wealsohaveriskmanagementdiscussionsacrosstheGroupatthefollowingkeycheckpointswhen:

• Discussingandagreeingthebusinessstrategy

• Biddingfornewwork

• Planningforprojects

• Monitoringexistingprojects

• Reviewingbusinessperformance

AtJDR,riskmanagementisanessentialpartofourbusinessoperations.Riskisnotoutsourcedtoaspecialistteambutisintegratedintoourprocessesandownedbyeveryone.However,thebusinessisnotcomplacentandwearemakingeffortstoimprovecertainareas,suchascorporateriskreporting,businesscontinuityandcompliance.

ONgOiNg Risk mANAgEmENT

define bUsiNEss ObJEcTiVEs

identify OPPORTUNiTiEs ANd Risks

assess and quantify bENEfiTs ANd Risks

develOP AcTiON PLAN TO miTigATE Risk

OnGOinG review Of Risk

ANNUAL REPORT 31 December 2012 28Risk mANAgEmENT REPORT

Thebusinesshasexperiencedsignificantgrowthoverthepasttwoyears,andthisbringsitsownchallengestoensurewehavethecapacitytodelivertoourhighstandards.Wehavefocusedondevelopingandstandardisingourinternalprocessesandsystems,aswellasexpandingandstreamliningourproductioncapacity.

Theimportanceoftheorderbookiskeyandwehaveinvestedindevelopingourusageofourcustomerrelationshipmanagementsystemandimprovingcommunicationsbetweenthesalesandoperationsfunctions.Theincreasingsizeofthebusinessalsorequiresmorefocusoncorporategovernanceandmatterssuchastrainingonanti-briberyandcorruptionandcompetitionlaw.

sPEcific Risk mANAgEmENT

PRiNciPAL Risks

EconomicEnvironment

Ourcustomersmaycancel,postponeorreduceexistingorfutureprojectsduetotheeffectsofglobaleconomicconditionsandthepriceofoil.

Orderintake

Wemaynotbesuccessfulatwinningbidsfornewwork,orbiderrors/decisionsadverselyaffectperformance.

ProjectDelivery

Projectsmaynotbedeliveredtoourhighstandardsofsafety,ontime,onbudgetandtotherequiredquality.

People

Wemaynotbeabletoattractorretainemployeeswiththerightqualification,skills,experience,competenceandvaluestomeetourcurrentandfutureneeds.

FinanceandLiquidity

Cashandlonger-termfinancingmayreduceifcashisnotcollected,capitalexpenditurenotmanaged,andcostsnotcontrolled

informationTechnology

Wemaynothavetherightsystemstomanageourbusinessinacontrolledandefficientway,orthesesystemsmayfail.

Significantchangesincustomerspendingorinvestmentplansmayadverselyaffectourorderbook,andultimatelyrevenueandprofit.

Notwinningwork,orwinningworkatlowmargins,soadverselyaffectingorderbookandmargins.

MayaffecttheprofitabilityandreputationoftheGroupandabilitytosecurerepeatwork.

Failuretomeetourcustomers’expectationsandcontractualcommitmentsandlimitourcapabilitytomeetfuturegrowthplans.

Reducedgrowthandexpansionopportunities.

Workflowsareinefficientorareinterrupted.

Focusonrepeatbusinessandstrategicclients.Broadenproducttype.Explorationofnewmarkets.Strengthenaftercareoffer.

Significantattentionisgiventobiddingtoensurewemeetcustomerneedsandmanagetherisks.Definedauthoritylevelsforbidapprovalandorderacceptance.

Mitigatedbyallocatingtherightpeople,operatingcontrolledprocessesandrigorousandregularprojectreviews.

Weusevigorousselectiontechniquesandabespokecompetencyframeworktosupportourhiringdecisions.Allemployeesundertakeperformanceanddevelopmentreviews,supportedbyrobustLearning&Developmentplanstoensurethattheyhavetherightskillstomeetbothcurrentandfutureneedsanddemonstratedesirablebehaviours.Wehaveamarket-basedcompensationandbenefitsstructuretohelpusattractandretainkeyvaluedemployees.

BalancesheetandcashmanagementiscloselycontrolledbyourFinanceteam,includingweeklyreporting,cashforecasting,andinvestmentanalysis.Bankingfacilitiesprovideheadroomshoulditbeneeded.

StrongmanagementoffunctionandcontroloverapplicationsandERPsystem.ITrecoveryplans.Capitalexpenditureplans.

RISK POTENTIALIMPACT MITIGATION

iNdEPENdENT AUdiTOR’s REPORT

REPORT Of ThE iNdEPENdENT AUdiTOR TO ThE mEmbERs Of JdR cAbLE sysTEms (hOLdiNgs) LimiTEd

WehaveauditedthefinancialstatementsofJDRCableSystems(Holdings)Limitedfortheninemonthsended31December2012whichcomprisetheGroupandcompanyprofitandlossaccount,theGroupandparentcompanybalancesheets,theGroupcashflowstatement,theGroupstatementoftotalrecognisedgainsandlosses,andtherelatednotesonpages31to56.

ThefinancialreportingframeworkthathasbeenappliedintheirpreparationisapplicablelawandUnitedKingdomAccountingStandards(UnitedKingdomGenerallyAcceptedAccountingPractice).

Thisreportismadesolelytothecompany’smembers,asabody,inaccordancewithChapter3ofPart16oftheCompaniesAct2006.Ourauditworkhasbeenundertakensothatwemightstatetothecompany’smembersthosematterswearerequiredtostatetotheminanauditor’sreportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthanthecompanyandthecompany’smembersasabody,forourauditwork,forthisreport,orfortheopinionswehaveformed.

respective responsibilities of directors and auditors

AsexplainedmorefullyintheDirectors’ResponsibilitiesStatementonpage26,thedirectorsareresponsibleforthepreparationofthefinancialstatementsandforbeingsatisfiedthattheygiveatrueandfairview.OurresponsibilityistoauditandexpressanopiniononthefinancialstatementsinaccordancewithapplicablelawandInternationalStandardsonAuditing(UKandIreland).ThosestandardsrequireustocomplywiththeAuditingPracticesBoard’s(APB’s)EthicalStandardsforAuditors.

Scope of the audit of the financial statements

AdescriptionofthescopeofanauditoffinancialstatementsisprovidedontheAPB’swebsiteatwww.frc.org.uk/apb/scope/UKNP.

Opinion on financial statements

Inouropinionthefinancialstatements:

• giveatrueandfairviewofthestateoftheGroup’sandtheparentcompany’saffairsasat31December2012andoftheGroup’sandCompany’sprofitfortheperiodthenended;

• havebeenproperlypreparedinaccordancewithUnitedKingdomGenerallyAcceptedAccountingPractice;and

• havebeenpreparedinaccordancewiththerequirementsoftheCompaniesAct2006.

Opinion on other matters prescribed by the Companies Act 2006

InouropiniontheinformationgivenintheDirectors’Reportonpages21and22fortheninemonthsended31December2012forwhichthefinancialstatementsarepreparedisconsistentwiththefinancialstatements.

Matters on which we are required to report by exception

WehavenothingtoreportinrespectofthefollowingmatterswheretheCompaniesAct2006requiresustoreporttoyouif,inouropinion:

• adequateaccountingrecordshavenotbeenkeptbytheparentcompany,orreturnsadequateforouraudithavenotbeenreceivedfrombranchesnotvisitedbyus;or

• theparentcompanyfinancialstatementsarenotinagreementwiththeaccountingrecordsandreturns;or

• certaindisclosuresofdirectors’remunerationspecifiedbylawarenotmade;or

• wehavenotreceivedalltheinformationandexplanationswerequireforouraudit.

Paul naylorSeniorStatutoryAuditor

for and on behalf of Grant Thornton UK LLP Statutory Auditor Chartered Accountants Cambridge

5April2013

ANNUAL REPORT 31 December 2012 30

Profit and Loss Account 31

balance sheet 33

cash flow statement 35

Notes to the financial statements 36

Appendix – 57 Unaudited Pro forma summary financial statements

fiNANciAL sTATEmENTs ANd NOTEs TO ThE fiNANciAL sTATEmENTs

financial statements gROUP P&L

gROUP PROfiT ANd LOss AccOUNT fOR ThE 9 mONThs ENdEd 31 dEcEmbER 2012

Revenue

Costofsales

Grossprofit

Administrativeexpenses

Administrativeexpenses-exceptional

Operatingprofit/(loss)beforegoodwillamortisation

Goodwillamortisation

Operatingprofit/(loss)

Profitonsaleofsubsidiary

Interestpayableandsimilarcharges

Profitonordinaryactivitiesbeforetaxation

Tax(charge)/creditonprofitonordinaryactivities

Profitforthefinancialperiod

Alloperationsarecontinuing.Theaccompanyingaccountingpoliciesandnotesformanintegralpartofthesefinancialstatements.

2,4

4

4

4

8

4

3

6

7

20

NOTE

83,628

(52,082)

31,546

(17,410)

(300)

13,836

(306)

13,530

-

(231)

13,299

(1,063)

12,236

9MTHSTO31DEC2012

£’000

111,092

(87,963)

23,129

(21,523)

(2,238)

(632)

(364)

(996)

19,865

(2,407)

16,462

1,018

17,480

12MTHSTO31MAR2012

£’000

gROUP sTATEmENT Of TOTAL REcOgNisEd gAiNs ANd LOssEs fOR ThE 9 mONThs ENdEd 31 dEcEmbER 2012

Retainedprofitforthefinancialperiod

Exchangerategain

Totalgainsandlossesrecognisedsincethelastfinancialstatements

12,236

11

12,247

9MTHSTO31DEC2012

£’000

17,480

6

17,486

12MTHSTO31MAR2012

£’000

ANNUAL REPORT 31 December 2012 32financial statements cOmPANy P&L

cOmPANy PROfiT ANd LOss AccOUNT fOR ThE 9 mONThs ENdEd 31 dEcEmbER 2012

Netoperatingincome/(payments)

Administrativeexpenses-exceptional

Interestpayable/(receivable)andsimilarcharges

Operatingprofit/(loss)

Profitonsaleofsubsidiary

Profitonordinaryactivitiesbeforetaxation

Tax(charge)/creditonprofitonordinaryactivities

Profitforthefinancialperiod

Alloperationsarecontinuing.

Thecompanyhasnorecognisedgainsandlossesotherthantheprofitaboveandthereforenoseparatestatementoftotalrecognisedgainsandlosseshasbeenpresented.

Theaccompanyingaccountingpoliciesandnotesformanintegralpartofthesefinancialstatements.

4

6

4

3

7

20

NOTE

617

-

139

756

-

756

-

756

9MTHSTO31DEC2012

£’000

(925)

(822)

(1,869)

(3,616)

19,237

15,621

-

15,621

12MTHSTO31MAR2012

£’000

financial statements gROUP bALANcE shEET

gROUP bALANcE shEET AT 31 dEcEmbER 2012

Fixedassets

Intangibleassets

Tangibleassets

Currentassets

Stock

Debtors

Cashatbankandinhand

Creditors–amountsfallingduewithinoneyear

Netcurrentassets

Totalassetslesscurrentliabilities

Creditors–amountsfallingdueaftermorethanoneyear

Provisionsforliabilities

Netassets

Capitalandreserves

Calledupsharecapital

Sharepremiumaccount

Profitandlossaccount

Totalequityshareholders’funds

Thefinancialstatementsonpages31to56wereapprovedbytheboardofdirectorson5April2013andweresignedonitsbehalfby:

martin BodenDirectorRegisteredNumberSC186919

Theaccompanyingaccountingpoliciesandnotesformanintegralpartofthesefinancialstatements.

8

9

11

12

13

14

17

18

19

20

21

NOTE

2,954

34,264

37,218

15,146

33,463

2,701

51,310

(40,531)

10,779

47,997

(13,878)

(2,472)

31,647

28,360

904

2,383

31,647

31DEC2012£’000

2,891

34,943

37,834

11,443

37,755

2,471

51,669

(36,372)

15,297

53,131

(30,895)

(2,836)

19,400

28,360

904

(9,864)

19,400

31MAR2012£’000

ANNUAL REPORT 31 December 2012 34financial statements cOmPANy ONLy bALANcE shEET

cOmPANy bALANcE shEET As AT 31 dEcEmbER 2012

Fixedassets

Tangibleassets

Investments

Currentassets

Debtors–amountsfallingduewithinoneyear

Debtors–amountsfallingdueafteroneyear

CashatBank

Creditors–amountsfallingduewithinoneyear

Netcurrentassets

Totalassetslesscurrentliabilities

Creditors–amountsfallingdueaftermorethanoneyear

Netassets

Capitalandreserves

Calledupsharecapital

Sharepremiumaccount

Profitandlossaccount

Totalequityshareholders’funds

Theaccompanyingaccountingpoliciesandnotesformanintegralpartofthesefinancialstatements.

Thefinancialstatementsonpages31to56wereapprovedbytheboardofdirectorson5April2013andweresignedonitsbehalfby:

martin BodenDirectorRegisteredNumberSC186919

9

10

12

12

13

14

18

19

20

21

NOTE

-

21,242

21,242

30,847

4,437

10

35,294

(4,808)

30,486

51,728

(11,480)

40,248

28,360

904

10,984

40,248

31DEC2012£’000

-

21,222

21,222

8,552

45,537

72

54,161

(7,343)

46,818

68,040

(28,548)

39,492

28,360

904

10,228

39,492

31MAR2012£’000

financial statements gROUP cAsh fLOW

gROUP cAsh fLOW sTATEmENT fOR 9 mONThs ENdEd 31 dEcEmbER 2012

Netcashinflow/(outflow)fromoperatingactivities

Returnsoninvestmentsandservicingoffinance

Interestpaid

Interestreceived

Netcashoutflowfromreturnsoninvestmentsandservicingoffinance

Taxation

Capitalexpenditureandfinancialinvestments

Purchaseofintangibleassets

Disposaloftangiblefixedassets

Purchaseoftangiblefixedassets

Netcash(outflow)/inflowfromcapitalexpenditureandfinancialinvestments

Financing

Decreaseinborrowings

Governmentgrantreceived

Saleofsubsidiary

Repaymentoffinanceleases

Netcash(outflow)/inflowfromfinancing

increase/(decrease)innetcash

22

NOTE

NOTE

22,018

(231)

-

(231)

(52)

(446)

8

(2,702)

(3,140)

(18,568)

203

-

-

(18,365)

230

9MTHSTO31DEC2012

£’000

31DEC2012£’000

(15,164)

(2,407)

-

(2,407)

309

(92)

7,405

(6,616)

697

(11,689)

380

28,424

(3,071)

14,044

(2,521)

REcONciLiATiON TO NET dEbT

Netdebtat1April

Increase/(decrease)innetcashintheperiod

Movementinborrowings

Othernon-cashchanges

Netdebtat31Decemberand31March

23

23

23

(31,077)

230

18,568

-

(12,279)

(43,316)

(2,521)

14,760

-

(31,077)

12MTHSTO31MAR2012

£’000

31MAR2012£’000

ANNUAL REPORT 31 December 2012 36financial statements NOTEs - 9 mONThs ENdEd 31 dEcEmbER 2012

ThefinancialstatementshavebeenpreparedunderthehistoricalcostconventionandinaccordancewiththeCompaniesAct2006andinaccordancewithapplicableaccountingstandards.Theprincipalaccountingpoliciesaresetoutbelow.

Going concern basisThecompany’sbusinessactivities,togetherwiththefactorslikelytoaffectitsfuturedevelopment,performanceandpositionaresetoutintheDirectors’Report.Thefinancialpositionofthecompany,itscashflows,liquiditypositionandborrowingfacilitiesaredescribedintheChiefFinancialOfficer’sReport.Inaddition,notes(a)to(c)oftheFinancialRiskManagementsectionoftheDirectors’Reportincludesthecompany’sobjectives,policiesandprocessesformanagingitscapital;itsfinancialriskmanagementobjectives;detailsofitsfinancialinstrumentsandhedgingactivities;anditsexposurestocreditriskandliquidityrisk.

Thecompanyhasconsiderablefinancialresourcestogetherwithlong-termcontractswithanumberofcustomersandsuppliersacrossdifferentgeographicalareasandindustries.ThecompanyhasalsobenefittedfromthecontinuedsupportofbothVisionCapitalLLPandHSBCandthedirectorsareconfidentthatthissupportwillcontinueinthefuture.Asaconsequence,thedirectorsbelievethatthecompanyiswellplacedtomanageitsbusinessriskssuccessfullydespitethecurrentuncertaineconomicoutlook.

Thedirectorshaveareasonableexpectationthatthecompanyhasadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.Thustheycontinuetoadoptthegoingconcernbasisofaccountinginthepreparingtheannualfinancialstatements.

Basis of consolidationTheGroupfinancialstatementsincorporatethefinancialstatementsofthecompanyandallofitssubsidiaryundertakingsuptotheendofthefinancialperiod.Theresultsofthesubsidiariesacquiredordisposedofintheperiodareincludedintheconsolidatedprofitandlossaccountfromthedateofacquisitionoruptothedateofdisposal.

revenueRevenueismeasuredatthefairvalueoftheconsiderationreceivedorreceivableandrepresentsamountsreceivableforgoodsandservicesprovidedinthenormalcourseofbusiness.

Significantcablesandumbilicalsareaccountedforusingthepercentage-of-completionmethod.Underthepercentage-of-completionmethod,werecogniseestimatedcontractrevenuebasedoncostsincurredtodateasapercentageoftotalestimatedcosts.

Whentheoutcomeofasignificantcableordercannotbeestimatedreliably,contractrevenueisrecognisedtotheextentofcontractcostsincurredthatareexpectedtoberecoverable.Contractcostsarerecognisedasexpensesintheperiodinwhichtheyareincurred.Whenitisprobablethatthetotalcontractcostswillexceedtotalcontractrevenue,theexpectedlossisrecognisedasanexpenseimmediately.

Thepreconditionsforrevenuerecognitionfornon-significantumbilicalsare:

(i) Acompletedeliverableproductorserviceexistsandcorrespondswithapriceditemonthecustomercontractorpurchaseorder;

(ii) Theproducthaspassedthecontractualfinalfactoryacceptancetestagreedwiththeclientortheservicedeliverablehasbeencompletedtotheclient’ssatisfaction;

(iii) Theproductorserviceisavailableforclientuplift,orhasbeendispatchedifthisiswithinJDR’sscopeofsupply;and

(iv) Collectabilityoftherevenueisreasonablyassured.

Revenueisstatednetofassociatedsalestax.

1 AccOUNTiNg POLiciEs

NOTEs TO ThE fiNANciAL sTATEmENTs fOR ThE 9 mONThs ENdEd 31 dEcEmbER 2012

financial statements NOTEs - 9 mONThs ENdEd 31 dEcEmbER 2012

Goodwill

Goodwillisdisclosedasanintangibleassetstatedatcostlessaccumulatedamortisation.Amortisationisprovidedinequalinstalmentsover20years.Goodwillbalancesareassessedforpossibleimpairmentwhenevereventsorchangesincircumstancesindicateimpairmentmayhavearisenandarewrittendowntothedirectors’estimatesoftheirfairvaluesaccordingly.

research and development

Expenditureonnewproductdevelopmentiscapitalisedwherethecostincurredhasresultedinaproductthatthedirectorsbelievehasacommerciallyviablefuture.Capitaliseddevelopmentcostsaredisclosedasintangibleassetsstatedatcostlessaccumulatedamortisation.Amortisationisprovidedinequalinstalmentsover5years,theexpectedeconomiclifeofthenewproducts.

Government grants

GovernmentgrantsareofacapitalnatureandarereleasedtotheprofitandlossaccountovertheexpectedusefullifeoftherelatedassetinaccordancewithSSAP4.

Tangible assets

Tangibleassetsarestatedatcostlessaccumulateddepreciation.Depreciationisprovidedinequalinstalmentsovertheirestimatedusefullivesbyusingthefollowingrates:

Landandbuildings 0-50%

Plantandequipment 5-50%

Computerequipment 5-100%

Officefurnitureandequipment 10-50%

Assetsinthecourseofconstruction 0%

Thecompanyundertakesareviewforimpairmentoffixedassetsifeventsorchangesincircumstancesindicatethatthecarryingamountmaynotberecoverable.Totheextentthatthecarryingamountexceedstherecoverableamount,thatisthehigherofnetrealisablevalueandvalueinuse,thefixedassetiswrittendowntoitsrecoverableamount.

Stock

Stockisstatedatthelowerofcostandnetrealisablevalue.

Financial instruments

Financialliabilitiesandequityinstrumentsareclassifiedaccordingtothesubstanceofthecontractualarrangementsenteredinto.Anequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsoftheentityafterdeductingallofitsfinancialliabilities.

Wherethecontractualobligationsoffinancialinstruments(includingsharecapital)areequivalenttoasimilardebtinstrument,thosefinancialinstrumentsareclassedasfinancialliabilities.Financialliabilitiesarepresentedassuchinthebalancesheet.Financecostsandgainsorlossesrelatingtofinancialliabilitiesareincludedintheprofitandlossaccount.Financecostsarecalculatedsoastoproduceaconstantrateofreturnontheoutstandingliability.

Wherethecontractualtermsofsharecapitaldonothaveanytermsmeetingthedefinitionofafinancialliabilitythenthisisclassifiedasanequityinstrument.Dividendsanddistributionsrelatingtoequityinstrumentsaredebiteddirecttoequity.

Investments

Investmentsarestatedatcostlessprovisionforimpairmentwherenecessarytoreducebookvaluetorecoverableamount.Costispurchasepriceincludingacquisitionexpenses.

Finance leases and hire purchase agreements

Assetspurchasedunderfinanceleasesorhirepurchaseagreementsarecapitalisedinthebalancesheetandaredepreciatedoverthelesseroftheirestimatedusefullivesandtheperiodoftheagreement.Theinterestelementoftherentalobligationsischargedtotheprofitandlossaccountovertheperiodofthecontractonastraightlinebasisandthecapitalelementoffuturerentalsistreatedasaliability.

Operating leases

Expenditureonoperatingleasesischargedtotheprofitandlossaccountonabasisrepresentativeofthebenefitderivedfromtheasset,normallyonastraight-linebasisovertheleaseperiod.

1 AccOUNTiNg POLiciEs (cONT.)

ANNUAL REPORT 31 December 2012 38financial statements NOTEs - 9 mONThs ENdEd 31 dEcEmbER 2012

Foreign currencies

Assetsandliabilitiesofoverseassubsidiariesandassociatedundertakingshavebeenexpressedinsterlingatthemarketraterulingattheendofeachfinancialyear.Tradingresultsaretranslatedattheaverageratesfortheyear.Exchangedifferencesarisingontranslationofthefinancialstatementsofoverseassubsidiariesaretakentoreserves.

Tradingactivitiesdenominatedinforeigncurrenciesaretranslatedattheaverageratefortheperiod.Monetaryassetsandliabilitiesdenominatedinforeigncurrenciesaretranslatedattherateofexchangerulingatthebalancesheetdateanddifferencesonexchangeareincludedintheprofitandlossaccount.

Employee Benefit Trust

AsrequiredinUITF38,thefinancialstatementsincludetheEmployeeBenefitTrustsincethedirectorsconsiderthatthecompanycontrolstheTrustandbearsthebenefitsandrisksassociatedwiththeTrust.SharesheldbytheTrustaredeductedfromshareholders’funds.

Pension costs

Contributionsmadetopersonalpensionschemes,whichareadministeredindependentlyofthecompany,arechargedtotheprofitandlossaccountasincurred.

related party disclosures

ThecompanyisexemptunderthetermsofFinancialReportingStandard8fromdisclosingrelatedpartytransactionswithentitiesthatarepartoftheGroup.

Taxation

Currenttax,includingUKcorporationtaxandforeigntax,isprovidedontaxableprofitsatcurrentratesintherespectivetaxationjurisdictions.

Deferredtaxisrecognisedinrespectofalltimingdifferencesthathaveoriginatedbutnotreversedatthebalancesheetdatewheretransactionsoreventsthatresultinanobligationtopaymoretaxinthefutureorarighttopaylesstaxinthefuturehaveoccurredatthebalancesheetdate.Timingdifferencesaredifferencesbetweenthecompany’staxableprofitsanditsresultsasstatedinthefinancialstatementsthatarisefromtheinclusionofgainsandlossesintaxassessmentsinperiodsdifferentfromthoseinwhichtheyarerecognisedinthefinancialstatements.

Adeferredtaxassetisregardedasrecoverableandthereforerecognisedonlywhen,onthebasisofallavailableevidence,itcanberegardedasmorelikelythannotthattherewillbesuitabletaxableprofitsfromwhichthefuturereversaloftheunderlyingtimingdifferencecanbededucted.Deferredtaxismeasuredonanon-discountedbasis.

Deferredtaxismeasuredatthetaxratesthatareexpectedtoapplyintheperiodsinwhichthetimingdifferencesareexpectedtoreverse.

1 AccOUNTiNg POLiciEs (cONT.)

financial statements NOTEs - 9 mONThs ENdEd 31 dEcEmbER 2012

2 sEgmENTAL REPORTiNg

Revenuebyorigin

ContinentalEurope

UnitedKingdom

NorthAmerica

RestoftheWorld

Revenuebydestination

ContinentalEurope

UnitedKingdom

NorthAmerica

RestoftheWorld

-

81,703

1,893

32

83,628

25,082

9,546

6,210

42,790

83,628

GROUP

403

106,191

4,348

150

111,092

15,228

48,066

9,064

38,734

111,092

Additionalsegmentaldisclosureshavenotbeenprovidedasthedirectorsconsiderthattheprovisionofsuchinformationcouldbeprejudicialtothebusiness.

Theprofitonsaleofasubsidiaryintheyearto31March2012relatestothedisposaloftheGroup’sinterestintheordinarysharecapitalofJDRHoldingsBV.

3 ExcEPTiONAL iTEms REPORTEd AfTER OPERATiNg PROfiT

9MTHSTO31DEC2012

£’000

12MTHSTO31MAR2012

£’000

ANNUAL REPORT 31 December 2012 40financial statements NOTEs - 9 mONThs ENdEd 31 dEcEmbER 2012

4 OPERATiNg PROfiT/(LOss)

Operatingprofit/(loss)isstatedaftercharging

Goodwillamortisation

Amortisationofdevelopmentcosts

Depreciation

-ownedassets

Operatingleasecharges

-plantandmachinery

-other

Lossonthesaleoffixedassets

Foreignexchangeloss

auditors’remuneration

ServicestotheGroupanditssubsidiaries

- feespayabletotheCompany’sauditorfortheauditofthefinancialstatements

- auditofthefinancialstatementsoftheCompany’ssubsidiaries(associates)pursuanttolegislation

- otherservicessuppliedpursuanttolegislation

306

77

3,386

235

2,396

8

66

21

23

8

9MTHSTO31DEC2012

£’000

-

-

-

-

-

-

-

-

-

-

12MTHSTO31MAR2012

£’000

COMPANY

364

166

3,690

180

2,270

114

64

18

20

6

12MTHSTO31MAR2012

£’000

GROUP

-

-

-

-

-

-

-

-

-

-

9MTHSTO31DEC2012

£’000

TheGroup’sUKsubsidiaryincurredexceptionaladministrationexpensesof£300,000inthe9monthsto31December2012relatingtoalegalclaim.

TheGroup’sUKsubsidiaryincurredexceptionaladministrationexpensesof£2,238,000(Company£822,000)inthe12monthsto31March2012relatingtothewrite-offofsurplusstocks,consultingcostsassociatedwithare-engineeringoftheERPsystemsandredundancycosts.

financial statements NOTEs - 9 mONThs ENdEd 31 dEcEmbER 2012

5 EmPLOyEE cOsTs

Wagesandsalaries

Socialsecuritycosts

Otherpensioncosts(Seenote29)

12,623

1,251

562

14,436

9MTHSTO31DEC2012

£’000

978

48

17

1,043

12MTHSTO31MAR2012

£’000

COMPANY

16,399

1,784

473

18,656

12MTHSTO31MAR2012

£’000

GROUP

919

51

16

986

9MTHSTO31DEC2012

£’000

ThE AVERAgE NUmbER Of EmPLOyEEs (iNcLUdiNg ExEcUTiVE diREcTORs) dURiNg ThE PERiOd WAs

Byactivity

Production

Sellinganddistribution

Administration

373

24

37

434

9MTHSTO31DEC2012

£’000

9MTHSTO31DEC2012

£’000

-

-

6

6

12MTHSTO31MAR2012

£’000

12MTHSTO31MAR2012

£’000

COMPANY

COMPANY

361

15

57

433

12MTHSTO31MAR2012

£’000

12MTHSTO31MAR2012

£’000

GROUP

GROUP

-

-

6

6

9MTHSTO31DEC2012

£’000

9MTHSTO31DEC2012

£’000

764

22

786

205

517

14

531

277

1,176

45

1,221

277

645

16

661

205

dETAiLs Of diREcTORs’ EmOLUmENTs ARE As fOLLOWs

Aggregateemoluments

Companycontributionstodefinedcontributionpensionschemes

Highest paid director

Totalamountofemolumentsandamounts(excludingshares)receivableunderlongtermincentiveschemes

Thereareretirementbenefitsaccruingtofour(31March2012:four)directorsunderdefinedcontributionpersonalpensionschemes.

ANNUAL REPORT 31 December 2012 42financial statements NOTEs - 9 mONThs ENdEd 31 dEcEmbER 2012

6 NET iNTEREsT PAyAbLE

Bankloaninterest

Bankinterest

Otherinterest&charges

Netexchangedifferenceonforeigncurrencyborrowings

Total interest payable and similar charges

InterestduefromGroupundertakings

Otherinterest

Total interest receivable and similar income

Net interest (payable)/receivable

(114)

(5)

(46)

(66)

(231)

-

-

-

(231)

9MTHSTO31DEC2012

£’000

(331)

(146)

(1,850)

(86)

(2,413)

544

-

544

(1,869)

12MTHSTO31MAR2012

£’000

COMPANY

(331)

(9)

(2,067)

-

(2,407)

-

-

-

(2,407)

12MTHSTO31MAR2012

£’000

GROUP

(114)

-

(9)

-

(123)

262

-

262

139

9MTHSTO31DEC2012

£’000

financial statements NOTEs - 9 mONThs ENdEd 31 dEcEmbER 2012

7 TAx ON PROfiT ON ORdiNARy AcTiViTiEs

Currenttax

UKtax

Foreigntax

Totalcurrenttaxcharge

Deferredtax

Currentperiod

Priorperiod

Taxcharge/(credit)fortheperiod

-

13

13

1,583

(533)

1,063

9MTHSTO31DEC2012

£’000

-

-

-

-

-

-

12MTHSTO31MAR2012

£’000

COMPANY

-

2

2

(1,020)

-

(1,018)

12MTHSTO31MAR2012

£’000

GROUP

-

-

-

-

-

-

9MTHSTO31DEC2012

£’000

ThE TAx AssEssEd fOR ThE PERiOd VARiEs fROm ThE sTANdARd RATE Of cORPORATiON TAx iN ThE Uk (24%). ThE diffERENcEs ARE ExPLAiNEd bELOW:

Profitonordinaryactivitiesbeforetaxation

Profit/(loss)onordinaryactivitiesmultipliedbystandardrateintheUK24%(2012:26%)

Effectsof:

Transferpricingadjustments

Groupreliefclaimed

(Income)/expensesnotdeductiblefortaxpurposes

Foreigntax

Utilisationofbroughtforwardlosses

Acceleratedcapitalallowances/othertimingdifferences

Totalcurrenttaxchargefortheperiod

13,299

3,192

(95)

(1,265)

847

13

(2,771)

92

13

9MTHSTO31DEC2012

£’000

15,621

4,062

-

-

(4,983)

-

922

(1)

-

12MTHSTO31MAR2012

£’000

COMPANY

16,462

4,280

-

-

(4,618)

2

1,021

(683)

2

12MTHSTO31MAR2012

£’000

GROUP

756

181

131

-

3

-

(315)

-

-

9MTHSTO31DEC2012

£’000

ANNUAL REPORT 31 December 2012 44financial statements NOTEs - 9 mONThs ENdEd 31 dEcEmbER 2012

8 iNTANgibLE AssETs

Cost

At1April2012

Additions

Foreignexchangerevaluation

at31December2012

accumulatedamortisation

At1April2012

Chargefortheperiod

Foreignexchangerevaluation

at31December2012

Netbookvalue

at31December2012

At31March2012

10,193

446

-

10,639

(7,302)

(383)

-

(7,685)

2,954

2,891

TOTAL

£’000

9,260

-

-

9,260

(6,699)

(306)

-

(7,005)

2,255

2,561

GOODWILL

£’000

933

446

-

1,379

(603)

(77)

-

(680)

699

330

DEVELOPMENTCOST£’000

Thecompanyhasnointangiblefixedassets(31March2012:nil).

financial statements NOTEs - 9 mONThs ENdEd 31 dEcEmbER 2012

9 TANgibLE fixEd AssETs

Cost

At1April2012

Additions

Disposal

Transfers

Foreignexchangerevaluation

at31December2012

accumulateddepreciation

At1April2012

Chargefortheperiod

Disposal

Foreignexchangerevaluation

at31December2012

Netbookvalue

at31December2012

At31March2012

49,453

2,702

(169)

-

(141)

51,845

(14,510)

(3,386)

161

154

(17,581)

34,264

34,943

TOTAL

£’000

46,049

2,491

(169)

3,214

(141)

51,444

(14,320)

(3,386)

161

154

(17,391)

34,053

31,729

PLANTANDMACHINERY

£’000

3,214

211

-

(3,214)

-

211

-

-

-

-

-

211

3,214

ASSETSINTHECOURSEOFCONSTRUCTION

£’000

GROUP

190

-

-

-

-

190

(190)

-

-

-

(190)

-

-

OFFICEEQUIPMENT

£’000

Noassetsheldunderfinanceleasesareincludedwithintangiblefixedassets.

ANNUAL REPORT 31 December 2012 46financial statements NOTEs - 9 mONThs ENdEd 31 dEcEmbER 2012

9 TANgibLE fixEd AssETs (cONTiNUEd)

Cost

At1April2012

Additions

at31December2012

accumulateddepreciation

At1April2012

Chargefortheperiod

at31December2012

Netbookvalue

at31December2012

At31March2012

COMPANY

53

-

53

(53)

-

(53)

-

-

OFFICEEQUIPMENT

£’000

financial statements NOTEs - 9 mONThs ENdEd 31 dEcEmbER 2012

10 iNVEsTmENTs

Sharesinsubsidiaryundertakings

Cost

At1April

Disposals

Additions

At31Decemberand31March

Provisionsforimpairment

At1April

Disposals

At31Decemberand31March

NetBookValue

At1April

At31Decemberand31March

30,893

(9,671)

-

21,222

-

-

-

30,893

21,222

21,222

-

20

21,242

-

-

-

21,222

21,242

COMPANY31MAR2012

£’000

COMPANY31DEC2012

£’000

ThE cOmPANy’s PRiNciPAL TRAdiNg sUbsidiARy OPERATiNg UNdERTAkiNgs AT 31 dEcEmbER 2012 WERE As fOLLOWs

JDRCableSystemsLtd

JDRCableSystemsInc

JDRCableSystems(Thailand)Ltd

JDRCableSystemsAS

JDRCableSystemsGmbH

100%

100%

100%

100%

100%

Scotland

UnitedStates

Thailand

Norway

Germany

Offshoreoil&gasservices

Offshoreoil&gasservices

Offshoreoil&gasservices

Offshoreoil&gasservices

Offshoreoil&gasservices

PERCENTAGEOF NOMINALSHARE CAPITAL

NAMEOFSUBSIDIARY

NATUREOFBUSINESS

COUNTRYOFREGISTRATION/INCORPORATION

ThesharesinJDRCableSystemsIncareheldbyJDRCableSystems(Holdings)Inc.

ANNUAL REPORT 31 December 2012 48financial statements NOTEs - 9 mONThs ENdEd 31 dEcEmbER 2012

11 sTOck

Rawmaterials

Workinprogress

Finishedgoods

4,939

6,504

-

11,443

6,493

8,653

-

15,146

31MAR2012£’000

31DEC2012£’000

GROUP

12 dEbTORs

Tradedebtors

Prepaymentsandaccruedincome

Deferredtaxasset(note16)

AmountsowedbyGroupundertakings

Otherdebtors

-

98

-

8,405

49

8,552

31MAR2012£’000

27,333

8,919

867

-

533

37,652

31MAR2012£’000

-

16

-

38,808

23

30,847

31DEC2012£’000

31,190

993

-

-

1,177

33,360

31DEC2012£’000

GROUP COMPANYAMOUNTSFALLINGDUEWITHINONEYEAR

Prepaymentsandaccruedincome

AmountsowedbyGroupundertakings

-

45,537

45,537

31MAR2012£’000

103

-

103

31MAR2012£’000

-

4,437

4,437

31DEC2012£’000

103

-

103

31DEC2012£’000

GROUP COMPANYAMOUNTSFALLINGDUEAFTERONEYEAR

AmountsowedbyGroupundertakingsareunsecuredandhavenofixeddateofrepayment.Thedirectorsdonotintendtodemandrepaymentoftheseamountswithin12monthsofthebalancesheetdate.

financial statements NOTEs - 9 mONThs ENdEd 31 dEcEmbER 2012

13 cREdiTORs – AmOUNTs fALLiNg dUE WiThiN ONE yEAR

RevolvingCreditFacility(RCF)(note15)

Tradecreditors

Accrualsanddeferredincome

Othertaxandsocialsecurity

Paymentsonaccount

AmountsduetoGroupundertakings

5,000

121

1,098

-

-

1,124

7,343

31MAR2012£’000

5,000

14,957

7,373

126

8,916

-

36,372

31MAR2012£’000

3,500

-

440

-

-

868

4,808

31DEC2012£’000

3,500

17,280

4,741

639

14,371

-

40,531

31DEC2012£’000

GROUP COMPANY

AmountsduetoGroupundertakingsareunsecured,andarerepayableondemand.

ANNUAL REPORT 31 December 2012 50financial statements NOTEs - 9 mONThs ENdEd 31 dEcEmbER 2012

14 cREdiTORs – AmOUNTs fALLiNg dUE AfTER mORE ThAN ONE yEAR

Bankloanandaccruedinterest(note15)

Amountduetoparentcompany(note15)

Governmentgrant

Other

5,000

23,548

-

-

28,548

31MAR2012£’000

5,000

23,548

2,340

7

30,895

31MAR2012£’000

-

11,480

-

-

11,480

31DEC2012£’000

-

11,480

2,398

-

13,878

31DEC2012£’000

GROUP COMPANY

Amountsduetoparentcompanyarenotpayableuntiltheexpiryofbankdebtin2015.

2,625

210

2,835

285

152

437

2,398

2,340

gOVERNmENT gRANTs ARE As fOLLOWs

At1April2012

Receivedduringtheperiod

At31December2012

Amortisation

At1April2012

Chargeduringtheperiod

At31December2012

Carryingvalue

at31December2012

At31March2012

£’000

financial statements NOTEs - 9 mONThs ENdEd 31 dEcEmbER 2012

15 bORROWiNgs

Borrowingsarerepayableasfollows

Withinoneyear

Bankloansandaccruedinterest(a)

Within2–5years

Bankloan(a)

After5years

Bankloan(a)

Loanduetoparentundertaking(b)

Totalborrowings

5,000

5,000

5,000

5,000

-

23,548

23,548

33,548

31MAR2012£’000

5,000

5,000

5,000

5,000

-

23,548

23,548

33,548

31MAR2012£’000

3,500

3,500

-

-

-

11,480

11,480

14,980

31DEC2012£’000

3,500

3,500

-

-

-

11,480

11,480

14,980

31DEC2012£’000

GROUP COMPANY

(a) HSBCisthesolebanklendertoJDR.BankloanscompriseaRevolvingCreditFacility(RCF)(£15.0m).TheloansaredenominatedinSterling.TheRCFexpireson31March2015.HSBCchargeafeefornon-utilisationoftheRCFandinterestischargedatafixedratewhenthefacilityisutilised.TheGroupbankloansatbalancesheetdateweresecuredbyabondandfloatingchargeovertheassetsoftheGroup.

(b) TheLoansduetoparentundertakingareultimatelyprovidedbytheshareholdersofJDREnterprisesLtd.NointerestischargedonLoansduetoparentundertaking.PaymentofanyaccruedinterestontheparentcompanyloansandrepaymentofprincipalisnotpermittedundertheTerm&RevolvingFacilitiesAgreementbetweenJDRCableSystems(Holdings)Ltd,JDREnterprisesLtd,theshareholdersofJDREnterprisesandHSBC,priortothedischargeoftheBank’sdebt.TheBank’sdebtisnotfullydischargeduntil31March2015.

ANNUAL REPORT 31 December 2012 52financial statements NOTEs - 9 mONThs ENdEd 31 dEcEmbER 2012

16 dEfERREd TAxATiON

Acceleratedcapitalallowances

Losses

Othershorttermtimingdifferences

-

-

-

-

31MAR2012£’000

2,086

(2,942)

(11)

(867)

31MAR2012£’000

-

-

-

-

31DEC2012£’000

387

-

(117)

270

31DEC2012£’000

GROUPTHEDEFERREDTAXLIABILITY/(ASSET)THATHASBEENRECOGNISEDISASFOLLOWS

COMPANY

Acceleratedcapitalallowances

Losses

Othershorttermtimingdifferences

2

2,191

-

2,193

31MAR2012£’000

2

2,191

-

2,193

31MAR2012£’000

1

1,601

-

1,602

31DEC2012£’000

1

1,601

-

1,602

31DEC2012£’000

GROUPTHEPOTENTIALDEFERREDTAXASSETWHICHHASNOTBEENRECOGNISEDISASFOLLOWS

COMPANY

Thedeferredtaxliability/(asset)isbasedonacorporationtaxrateof23%(31March2012:24%).

financial statements NOTEs - 9 mONThs ENdEd 31 dEcEmbER 2012

aUTHORiSED

Equity

26,450,000Ordinarysharesof£0.10each

22,600,121,895DeferredSharesof£0.01each

4,800,000PreferenceSharesof£1.00each

aLLOTTED,CaLLEDUPaNDFULLyPaiD

Equity

9,600,000Ordinarysharesof£0.10each

22,600,121,895DeferredSharesof£0.01each

4,800,000Preferencesharesof£1.00

960

22,600

4,800

28,360

31MAR2012£’000

960

22,600

4,800

28,360

31DEC2012£’000

2,645

22,600

4,800

30,045

31MAR2012£’000

2,645

22,600

4,800

30,045

31DEC2012£’000

GROUPANDCOMPANY

18 cALLEd UP shARE cAPiTAL

GROUPANDCOMPANY

dividendsTheprofitsoftheCompanyavailablefordistributionshallbeappliedinpayingtotheholdersoftheOrdinarySharesprorata,accordingtotheamountspaiduporcreditedaspaidupontheordinarysharesheldbythemrespectively,suchamountasthedirectorsmaydecide,subjecttotheconsentofanInvestorMajorityandtheCompany’sbankers.TheDeferredSharescarrynorighttoadividend.

Voting rightsAmemberhasonevoteforeveryordinaryshareheld.Thedeferredshareshavenovotingrights.

CapitalOnareturnofassetsonliquidationorcapitalreductionorotherwise,theassetsofthecompanyremainingafterthepaymentofitsliabilitiesshallbedistributedtotheholdersoftheordinaryshares.Theholdersofthedeferredsharesarenotentitledtoanyshareofthesurplusassetsuntileachoftheordinaryshareholdershasreceived£10,000,000perordinaryshare.

17 PROVisiONs fOR LiAbiLiTiEs ANd chARgEs

At1April2012

(Utilised)/providedintheyear

at31December2012

-

300

300

LEGALCLAIM

£’000

-

270

270

DEFERREDTAXATION

£’000

2,836

(364)

2,472

TOTAL

£’000

2,836

(934)

1,902

OTHER

£’000

Theotherprovisionrelatestoanumberofexcesscontractualcostswhichthecompanybelievesitmayincuronprojectswhichhavebeendeliveredtoclients.Thesecostsarenotfullyknown,subjecttonegotiationandareunlikelytobeoffsetbyadditionalrevenue.Itisexpectedthatthemajorityofexpenditureswillbeincurred

inthenextfinancialyearandthatallwillbeincurredwithintwoyears.Theprovisionhasbeenestimatedinaccordancewiththeappropriatecontractdocuments.

Thecompanyhasnoprovisionforliabilities(31March2012:nil).

ANNUAL REPORT 31 December 2012 54financial statements NOTEs - 9 mONThs ENdEd 31 dEcEmbER 2012

19 shARE PREmiUm AccOUNT

at1april2012and31December2012 904

COMPANY31DEC2012

£’000

904

GROUP31DEC2012

£’000

20 PROfiT ANd LOss AccOUNT

At1April2012–(deficit)/surplus

Profitforthefinancialperiod

Exchangeadjustments

at31December2012

10,228

756

-

10,984

COMPANY31DEC2012

£’000

(9,864)

12,236

11

2,383

GROUP31DEC2012

£’000

21 REcONciLiATiON Of mOVEmENTs iN shAREhOLdERs’ fUNds

Profitforthefinancialperiod

Exchangeadjustments

Netadditiontoshareholders’funds

Openingshareholders’funds

Closingshareholders’funds

15,621

-

15,621

23,871

39,492

12MTHSTO31MAR2012

£’000

17,480

6

17,486

1,914

19,400

12MTHSTO31MAR2012

£’000

756

-

756

39,492

40,248

9MTHSTO31DEC2012

£’000

12,236

11

12,247

19,400

31,647

9MTHSTO31DEC2012

£’000

GROUP COMPANY

financial statements NOTEs - 9 mONThs ENdEd 31 dEcEmbER 2012

22 cAsh fLOW fROm OPERATiNg AcTiViTiEs

Operatingprofit/(loss)

Amortisationofgoodwill

Amortisationofdevelopmentcosts

Depreciationcharge

Amortisationofgrant

Lossonsaleoffixedassets

(Increase)/decreaseinstocks

Decrease/(increase)indebtors

Increase/(decrease)increditors

(Decrease)/increaseinprovisions

Prioryearadjustment

Othernon-cashmovements

Netcashinflow/(outflow)fromoperatingactivities

(996)

364

166

3,690

(196)

114

8,125

(18,711)

(10,378)

2,241

435

(18)

(15,164)

12MTHSTO31MAR2012

£’000

13,530

306

77

3,386

(152)

-

(3,703)

3,425

5,785

(634)

-

(2)

22,018

9MTHSTO31DEC2012

£’000

GROUP

23 ANALysis Of NET dEbT

Cashatbankandinhand

Debtlessthanoneyear

Debtmorethanoneyear

Netdebt

2,701

(3,500)

(11,480)

(12,279)

31DEC2012£’000

230

1,500

17,068

18,798

CASHFLOW£’000

2,471

(5,000)

(28,548)

(31,077)

31MAR2012£’000

ANNUAL REPORT 31 December 2012 56financial statements NOTEs - 9 mONThs ENdEd 31 dEcEmbER 2012

24 OPERATiNg LEAsE cOmmiTmENTs

Annualcommitmentsundernon-cancellableoperatingleasesexpiring:

Within1year

Within2to5years

After5years

81

96

-

177

31MAR2012PLANTANDEQUIPMENT

£’000

51

240

-

291

31DEC2012PLANTANDEQUIPMENT

£’000

77

856

1,922

2,855

31MAR2012

PROPERTY£’000

322

530

1,961

2,813

31DEC2012

PROPERTY£’000

GROUP

25 cAPiTAL cOmmiTmENT

Contractplacedforfuturecapitalexpenditurenotprovidedinthefinancialstatements 531

31MAR2012£’000

1,126

31DEC2012£’000

TheGroupreceivesgovernmentgrantstoassistinthefundingofcapitalexpenditure.Theaggregateamountofsuchgrantsreceivedinthe9monthsto31December2012was£210,000(12monthsto31March2012:£380,000)

Intheeventofanybreachofgrantconditionsthefullamountofthegrantreceivedwouldberepayable.TheGroupisnotawareofanyactual,orpotential,breachofconditions,noprovisionisrequiredforrepayment.

JDRCableSystems(Holdings)LtdisaguarantorforallGroupborrowingfacilitiesundertheagreementbetweenthecompanyanditsbankers.Totalsumsoutstandingunderthisagreementat31December2012were£3,500,000(31March2012:£10,000,000).

TheultimateparentcompanyandcontrollingpartyisJDREnterprisesLimited,whichistheparentcompanyofthelargestGrouptoconsolidatethesefinancialstatements.CopiesoftheGroupfinancialstatementscanbeobtainedfromtheCompanySecretaryatJDRCablesSystems(Holdings)Limited,LittleportInnovationPark,WisbechRoad,Littleport,Ely,Cambridgeshire,CB61RA.

26 ULTimATE PARENT UNdERTAkiNg

DuringthenormalcourseofbusinesstheGrouphasgivenbankguaranteestotalling£18,308,000(31March2012:£15,228,000).

28 cONTiNgENT LiAbiLiTiEs

MrRichandMrVandeSteenwererepresentativedirectorsforVisionCapitalLLP.FundsadvisedbyVisionCapitalLLParethelargestshareholderinJDREnterprisesLtd.VisionCapitalLLPchargedamonitoringfeeof£115,000intheperiod.

27 RELATEd PARTy TRANsAcTiONs

TheGroupcontributestopersonalpensionschemesonbehalfofcertainemployees.TheseschemesareadministeredindependentlyoftheGroup.ThetotalpensioncostwhichischargedagainstprofitrepresentscontributionspayablebytheGroupandamountedto£562,000(31March2012:£473,000).

29 PENsiON

APPENdix

aPPendix gROUP PROfiT ANd LOss AccOUNT (cONTiNUiNg gROUP) fOR ThE 12 mONThs ENdEd 31 dEcEmbER 2012

Revenue

Costofsales

Grossprofit

Administrativeexpenses

Administrativeexpenses-exceptional

Operatingprofit/(loss)beforegoodwillamortisation

Goodwillamortisation

Operatingprofit/(loss)

Interestpayableandsimilarcharges

Profit/(loss)onordinaryactivitiesbeforetaxation

Tax(charge)/creditonprofitonordinaryactivities

Profit/(loss)forthefinancialperiod

Retainedprofit/(loss)forthefinancialperiod

Exchangerategain

Totalgainsandlossesrecognisedsincethelastfinancialstatements

83,246

(69,472)

13,774

(21,723)

(2,229)

(10,178)

(1,810)

(11,988)

(1,158)

(13,146)

1,018

(12,128)

(12,128)

-

(12,128)

129,899

(86,014)

43,885

(22,336)

(607)

20,942

(492)

20,450

(2,387)

18,063

(45)

18,018

18,018

150

18,168

12MTHSTO31DEC2011

£’000

12MTHSTO31DEC2011

£’000

12MTHSTO31DEC2012

£’000

12MTHSTO31DEC2012

£’000

gROUP sTATEmENT Of TOTAL REcOgNisEd gAiNs ANd LOssEs fOR ThE 12 mONThs ENdEd 31 dEcEmbER 2012

UNAUdiTEd PRO fORmA sUmmARy fiNANciAL sTATEmENTs

ANNUAL REPORT 31 December 2012 58APPENdix

aPPendix gROUP bALANcE shEET As AT 31 dEcEmbER 2012

Fixedassets

Intangibleassets

Tangibleassets

Currentassets

Stock

Debtors

Cashatbankandinhand

Creditors–amountsfallingduewithinoneyear

Netcurrentassets

Totalassetslesscurrentliabilities

Creditors–amountsfallingdueaftermorethanoneyear

Provisionsforliabilities

Netassets

Capitalandreserves

Calledupsharecapital

Sharepremiumaccount

Profitandlossaccount

Totalequityshareholders’funds

2,969

34,566

37,535

22,831

24,091

3,242

50,164

(41,697)

8,467

46,002

(30,808)

(1,715)

13,479

28,360

904

(15,785)

13,479

2,954

34,264

37,218

15,146

33,463

2,701

51,310

(40,531)

10,779

47,997

(13,878)

(2,472)

31,647

28,360

904

2,383

31,647

31DEC2011£’000

31DEC2012£’000

UNAUdiTEd PRO fORmA sUmmARy fiNANciAL sTATEmENTs

APPENdix

aPPendix gROUP cAsh fLOW sTATEmENT fOR ThE 12 mONThs ENdEd 31 dEcEmbER 2012

Earnings/(loss)beforeinterest,tax,depreciationandamortisation(EBITDA)

Less:exceptionalitems

Add: movement in working capital

Decrease/(increase)instock

Increaseintradedebtors

(Increase)/decreaseincustomeradvances

(Decrease)/increaseintradecreditors

Other

Netcashinflow/(outflow)fromoperatingactivities

Returnsoninvestmentsandservicingoffinance

Interestpaid

Interestreceived

Netcashoutflowfromreturnsoninvestmentsandservicingoffinance

Taxation

Capitalexpenditureandfinancialinvestments

Increaseinfixedassets

Netcashoutflowfromcapitalexpenditureandfinancialinvestments

Financing

Decreaseinborrowings

(Decrease)/increaseinloanfromparentcompany

Saleofsubsidiary

Netcash(outflow)/inflowfromfinancing

Decreaseinnetcash

(4,111)

(2,229)

(9,555)

(10,240)

6,900

8,672

107

(10,456)

(1,158)

-

(1,158)

-

(8,706)

(8,706)

(17,698)

10,198

27,200

19,700

(620)

25,766

(607)

7,685

(9,512)

(2,956)

(5,240)

4,477

19,613

(2,387)

-

(2,387)

(139)

(4,288)

(4,288)

(1,500)

(11,840)

-

(13,340)

(541)

12MTHSTO31DEC2011

£’000

12MTHSTO31DEC2012

£’000

UNAUdiTEd PRO fORmA sUmmARy fiNANciAL sTATEmENTs

ANNUAL REPORT 31 December 2012 60

Jdr Cable Systems (Holdings) Ltd SaltireCourt20CastleTerraceEdinburghEH12ENRegisteredcompanynumber:SC186919

REgisTEREd hEAd OfficE

HSBC Bank plc Home&EasternCountiesCorporateBankingCentreLevel6MetropolitanHouse,CBX3321AveburyBoulevardMiltonKeynesMK92GA

bANkERs

eversheds LLPKettHouseStationRoadCambridgeCB12JY

Bird and Bird LLPTaunusanlage160329FrankfurtamMainGermany

Macfarlanes LLP20CursitorStreetLondonEC4A1LT

LEgAL AdVisERs

Grant Thornton UK LLP101CambridgeScienceParkMiltonRoadCambridgeCB4OFY

AUdiTORs

Lazard & Co., Limited50StrattonStreetMayfairLondonW1J8LL

fiNANciAL AdVisERs

Brunswick Group LLP16Lincoln’sInnFields,London,WC2A3ED

cOmmUNicATiONs AdVisERs

AdVisERs ANd REgisTEREd hEAd OfficE

Littleport innovation ParkWisbech Road

Littleportcambridgeshire

cb6 1RA

7906 N. sam houston Parkway Westsuite 201houstonTx 77064

LiTTLEPORT | NEWcAsTLE | hARTLEPOOL | AbERdEEN | hAmbURg | ThAiLANd | siNgAPORE | hOUsTON