Annual Report 30 June 2007 - One Horizon Group

Annual Report
30 June 2007
SatCom Group Holdings plc
www.satcomgroup.com

SatCom Group
• A world leader in providing reliable satellite communications
equipment and airtime for those working and travelling in remote
areas
• Global company with offices in the UK, USA, Middle East,
Australia and Asia
• Strong dealer network and essential market knowledge covering
all 5 continents
• Provide all customers with worldwide support, all day, every day
on our 24x7 helpdesk
• Suppliers of Inmarsat, Iridium, Thuraya and VSAT systems
• Extensive website www.satcomgroup.com features detailed
information of products, accessories, specifications, news and
Investor relations updates
• Knowledge base which is accessible through our website
containing information on technical issues and support online
• Specialised bespoke website www.satcomglobal.net for the
provisioning of airtime services, online activation requests,
contract amendments and purchasing additional prepaid airtime
top-ups
• Truly one stop shopping, providing a single point of contact for all
satellite hardware, airtime and software applications

CONTENTS
Chairman’s statement 2
Chief executive’s statement 3
Board of directors 4
Directors, officers and advisers 5
Report of the directors 6 - 10
Independent auditors’ report 11
Group profit and loss account 12
Group balance sheet 13
Company balance sheet 14
Group cash flow statement 15
Notes to the financial statements 16 - 32
“
Our results show further growth in profits
for the Group and an increase in turnover of
12.6% to $58 million
Mark White
Chief Executive
”
1

2
CHAIRMAN’S STATEMENT
“
The Group is now
well-positioned to take
advantage of the anticipated
strong growth in Mobile
Satellite services
”
The last 12 months have seen the Group complete its
integration of the two acquisitions made during the previous
year. We have rationalised our North American operations;
established a new service and logistics centre in Dubai (UAE),
providing 24/7 operational capability; and upgraded our
class-leading billing and customer support facilities.
The Group also gained Distribution Partner status for
Inmarsat’s high-speed data service BGAN and SatCom’s focus
this year has been on developing sales of this product. The
Group has now also been granted Distribution status for
Inmarsat’s handheld voice services and we expect these to
make a good contribution to earnings in the year ahead. We
have made good progress in appointing wholesale customers
around the world to augment the Group’s sales capability for
these products and so benefit the Group with an additional
revenue stream to diversify SatCom’s earnings. BGAN sales
have taken more time than anticipated to develop, but are
now performing to expectations.
The Group’s investment in upgrading its billing and Pre-Paid
platforms, together with a sophisticated service activation,
business monitoring and support package, is aimed at
positioning the Group to deliver its customers with a
“Best-in-Class” service. Additionally, the Group has improved
its global logistics and servicing capability, and has been
appointed a Global Master Distributor for Thrane & Thrane,
a leading manufacturer of MSS equipment.
These developments have been accompanied by further
investment in training of both Service Providers and staff.
I would like to take this opportunity to thank them for their
enthusiastic response to the various challenges that they
have met over the past year, and for their contribution to
the Group’s successes.
The Group is now well-positioned to take advantage of the
anticipated strong growth in Mobile Satellite services,
generated in particular by the new Inmarsat services. The
Board expects the Group’s growth to continue and will look
at strategic acquisition opportunities as they arise.
Richard Vos
Chairman
8 October 2007

CHIEF EXECUTIVE’S STATEMENT
Highlights
The attached accounts of SatCom Group Holdings Plc
(“SatCom” or the “Group”), for the year ended 30 June 2007,
represent the third set of audited accounts since joining AIM
in July 2005. The results show further growth in profits for the
Group. The Group reports its financial statements in US dollars
as the majority of its sales and cost of sales are denominated
in this currency.
As reported in last year’s annual report, the Group gained
Distribution Partner status with Inmarsat for the high speed
data BGAN service on 1 October 2006. We are pleased to
report that this service has provided significant growth
although the delay in being able to supply this service was not
as originally anticipated. We expect this service to increase
further as worldwide demand continues to grow.
In July 2006, the Group acquired World Communication
Center, Inc. (“WCC”), a satellite equipment and airtime reseller
company, based in Phoenix, Arizona, USA. In the 12 months
to December 2005, WCC had sales of $10 million and pre
tax profits of $450,000. I am pleased to say that WCC
performance in the first twelve months within the Group was
to increase turnover to $11.4 million and contribution before
management charges to Group Operating profits of $586,000.
These results reflect a 30% increase in profits over the year
ended December 2005. We have also commenced the
rationalisation of our North American business and made the
Phoenix location the main administration and inventory
holding location for the businesses located in North America.
During the year the Group has announced success in winning
new US Government business. Whilst the margin will be small
the size of the anticipated business and the quality of the
customer will enhance our global position in the Mobile
Satellite Services (“MSS”) sector.
In August the Group announced the signing of a Global Master
Distribution with Thrane & Thrane, a major manufacturer of
Satellite Equipment for the MSS market.
Financial Performance
The Group’s results show an increase in turnover of 12.6% to
$58 million, including $11.4 million arising from the acquisition
of WCC. This takes account of a reduction in the Middle East
land based business, due to the continued withdrawal of
military and security personnel. The Group had expected a
reduced demand for land based services, which fluctuates
significantly in line with conflicts and large scale disasters.
The maritime business continued to expand and our turnover
from this division reached $14.5 million (2006: $9.6 million).
Gross margin earned increased to 23% (2006: 20%) and
profit before tax increased by 31% to $3.6 million
(2006: $2.8 million). As our reporting currency and the
majority of our trading income is in US Dollars our operating
costs in the UK have been increased by the weakness of the
dollar as it affects our UK head office, Convertible Bond
Interest and our public company costs which are all Sterling
based by an average of 9%. The effect has been to increase
our overheads by $270,000 compared to the average rate
applicable in the previous year.
The basic earnings per share have risen by 36% to 5.26 cents
(2006: 3.87 cents) and as previously stated in line with our stated
progressive dividend policy it is the Board’s intention to propose
a final dividend of 0.33 cents per share (2006: 0.25 cents). This
dividend when added to the interim dividend paid in April 2007
will provide a total income to shareholders of 0.50 cents per
share for the year (2006: 0.40 cents).
The Group has invested in the new billing system and in
Inventory levels to take account of the new BGAN terminals
in the Group warehousing around the world.
Strategy and Prospects
The Group has developed an excellent wholesale customer
base for hardware equipment and airtime services using the
airtime portal website and billing systems which it has heavily
invested into in the last year. We will continue to look at
strategic acquisition opportunities as they arise.
Accordingly, the Board remains confident of the outcome
for the year.
Finally, I would like to take this opportunity to thank all
SatCom Group employees around the world for their
continuing hard work and dedication during the last year.
Mark White
Chief Executive
8 October 2007
3

4
BOARD OF DIRECTORS
Richard Vos,
Non-Executive Chairman
Richard has extensive knowledge of the satellite and
international telecommunications world with over 35 years
experience of working in the industry. Current positions include
Non-Executive Director of Avanti Screenmedia Group Plc,
Avanti Communications Group Plc and of the National Space
Science Centre Operations Ltd and Chairman of the British
National Space Centre Telecommunications and Navigation
Advisory Board. Previously Richard was Chairman of Inmarsat
Ventures Plc and Inmedia Communications Limited.
Richard is Chairman of the Remuneration Committee and a
member of the Audit Committee.
Mark White,
Chief Executive Officer
Mark is the CEO and founder of SatCom. He has been in the
satellite communications business since 1995 and has been
involved in the distribution of electronic equipment since 1990.
Mark joined Cetrek Limited, a maritime autopilot manufacturer
as sales manager, in 1984 and became sales director in 1988.
In 1990 he left Cetrek to form Euro Marine Group Limited, a
European distributor of US electronic marine equipment,
including Garmin GPS products. In 1992, Mark was appointed
Chief Executive of Garmin (Europe) Limited, bringing with
him Euro Marine’s distribution business. Having successfully
established Garmin’s distribution network, he then left Garmin
to form Next Destination Limited, the European distributor of
Magellen GPS and satellite communication products. In 1997
Mark sold Next Destination, but continued to work in the
satellite communications industry and in 2001 established
SatCom with Alexandra Johnson and Adam Thompson.
Martin Ward,
Chief Financial Officer
Martin qualified as a Chartered Accountant in 1983 before
joining PricewaterhouseCoopers (“PwC”) where he progressed
to audit manager. In 1987, he left PwC to become a partner
in Langdowns DFK a midsize professional firm based in
Southampton. In 1990 he started acting for Mark White,
advising him in the areas of business development and
acquisition strategy. In 2004 Martin joined SatCom to oversee
the financial aspects of running a global business and to
assist with acquisitions.
Alexandra (Sandy) Johnson,
Chief Operations Officer
Sandy is a co-founder of SatCom with Mark White and
has been in the industry since 1995 when she joined Next
Destination Limited as Finance and Operations Manager.
Sandy has played a key role in the implementation of
SatCom’s proprietary billing system, online technical support
and airtime services websites. She has responsibility for the
Sales performance and Operations in the Group.
Stephen Austin,
Non-Executive Director
Stephen practised corporate law for ten years prior to moving
into corporate finance in 2001. He was a Director of Corporate
Finance at Teather & Greenwood Limited before moving to
Libertas Capital Group plc, where he was Head of Corporate
Broking. Stephen has now formed a specialist corporate broker
called Hybridan LLP.
Stephen is Chairman of the Audit Committee and a member
of the Remuneration Committee.

DIRECTORS, OFFICERS AND ADVISERS
Directors Richard Vos (Non-Executive Chairman)
Mark White (Chief Executive Officer)
Martin Ward FCA (Chief Financial Officer)
Alexandra Johnson (Chief Operations Officer)
Stephen Austin (Non-Executive Director)
Secretary Martin Ward FCA
Registered number 5066838
Registered office Unit 3, The Woodford Centre
Old Sarum Park
Lysander Way
Old Sarum
Salisbury
Wiltshire SP4 6BU
Principal trading Unit 3, The Woodford Centre
address Old Sarum Park
Lysander Way
Old Sarum
Salisbury
Wiltshire SP4 6BU
Corporate finance Ernst & Young LLP
adviser 1 More London Place
London SE1 2AF
Nominated adviser Landsbanki Securities UK Limited
and broker Beaufort House
15 St Botolph Street
London EC3A 7QR
Auditors Chantrey Vellacott DFK LLP
Russell Square House
10 – 12 Russell Square
London WC1B 5LF
Principal bankers HSBC Bank Plc
Southern Corporate Banking Centre
Nelson Gate
Commercial Road
Southampton SO15 1GX
Solicitors to the Shoosmiths
Company (UK) Apex Plaza
Forbury Road
Reading
RG1 1SH
Attorneys to the Farrell Fritz P.C.
Company (US) 1320 Reckson Plaza
West Tower
Uniondale
New York 11556
Financial press Abchurch Communications Limited
relations 100 Cannon St
London EC4N 6EU
Registrars Capita IRG plc
Northern House
Woodsome Park
Fenay Bridge
Huddersfield HD8 0LA
5

6
REPORT OF THE DIRECTORS
The Directors present their report and the audited accounts of the Group and Company for the year ended 30 June 2007.
Principal activity
The principal activity of the Company is that of a holding company, and the principal activity of the Group during the year was
distributing satellite communication equipment and airtime.
Results and dividends
The retained profit for the year of $2,959,000 (2005: $1,981,000) was transferred to reserves. During the year dividends of
$235,000 were paid (2006: $78,000). A final dividend of 0.33 cents per ordinary share (2006: 0.25 cents) will be proposed at the
forthcoming Annual General Meeting to be held on 19 December 2007. Subject to approval at the Annual General Meeting, the
dividend will be payable on 21 December 2007 to those shareholders on the register of members on 30 November 2007.
Review of the business and future developments
The Directors are required to present an extended business review, reporting on the development and performance of the Group
and the Company during the year and their positions at the end of the year. The requirement is met by the Chairman’s and Chief
Executive’s Statements on pages 2 and 3.
Directors and their interests
The Directors of the Company who held office at the date of this report are shown on page 4. The following changes to the
composition of the Board were made during the year:
Director Date of resignation Date of appointment
David Hickey 31 October 2006 –
Stephen Austin – 8 January 2007
The interests of the Directors in office, at 30 June 2007 in the issued share capital of the Company, were as follows:
Number of shares Number of shares
2007 2006 2007 2006
Ordinary shares Ordinary shares Deferred shares Deferred shares
Mark White 16,473,000 16,473,000 17,000 17,000
Martin Ward 10,659,000 10,659,000 11,000 11,000
Alexandra Johnson 10,659,000 10,659,000 11,000 11,000
Richard Vos 33,334 33,334 – –

Share options
No Directors had interests in options over the share capital of the Company as at the year end.
Political and charitable contributions
The amount paid by the Group to charitable bodies was $1,000 (2006: $Nil). The Group made no political contributions during the
year (2006: $Nil).
Third party indemnity provision for directors
Qualifying third party indemnity provision for all Directors was in force during the year.
Creditor payment policy
It is the Group’s policy that payments to suppliers are made in accordance with all relevant terms and conditions. Creditor days for
the Group have been calculated at 56 days (2006: 69 days).
Risk factors
Details of financial risks are as set out in note 32 to the accounts.
Substantial shareholdings
As at the date of these Accounts, the Company is aware of the following material interests, representing 3% or more of the issued
ordinary share capital of the Company.
Percentage
Number of issued share
Shareholder of shares capital
Mark White 16,490,000 27.6%
Martin Ward 10,670,000 17.9%
Alexandra Johnson 10,670,000 17.9%
Adam Thompson 10,670,000 17.9%
Going concern
The Board, after making suitable enquiries, is satisfied that the Company has adequate resources to continue in operational existence
for the foreseeable future. Accordingly, the Board continues to adopt the going concern basis in preparing the financial statements.
Subsequent events
There have been no reportable events subsequent to the year end.
7

8
REPORT OF THE DIRECTORS (continued)
Corporate governance
Although the Group is not obliged to comply with the revised Combined Code on Corporate Governance issued in July 2003
(the “Code”), the Board is committed to ensuring good standards of corporate governance and has taken steps to comply with
the Code’s principles in so far as practicable for a Group of this size.
Board of directors
The Board meets regularly to determine the policy and business strategy of the Group and has adopted a schedule of those matters that
are reserved as the responsibility of the Board. The Chief Executive Officer leads the development of business strategies within the Group’s
operations. The Board consists of three Executive Directors and two non-Executive Directors, including the non-Executive Chairman.
Both non-executive directors are considered to be independent. The Board considers that there is an appropriate balance between the
Executives and non-Executives, and that no individual or small Group dominates the Board’s decision taking. The Board’s members have
a wide range of expertise and experience and it is felt that concerns may be addressed to any of the non-Executive Directors.
Notice of the Group’s Annual General Meeting is to be sent to shareholders with a copy of this Report and Accounts.
Reappointment of directors
One third of the Directors are required to retire by rotation at each Annual General Meeting, under the Company’s Articles of
Association. The following Directors will retire at the Annual General Meeting 2007 and put themselves forward for re election.
● Mark White
● Martin Ward
Stephen Austin having been appointed during the year and being eligible offers himself for election by the Shareholders at the
forthcoming Annual General Meeting.
Board committees
The Board has delegated certain authorities to committees, each with formal terms of reference, which are available on written
request to the Company’s Registered Office.
Audit committee
The Audit Committee consists of the two non-Executive Directors and meets at least twice a year to consider the scope of the
annual audit, interim reviews, to assess the auditors, to assess effectiveness of the Group’s systems of internal control and to
review the requirement for internal audit (which the Committee believes is not currently justified, given the current size of the
Group). The Committee has access to the Group’s auditors. The Chief Executive Officer and Finance Director may be invited to
attend Committee meetings, but are not members.
Remuneration committee
The Remuneration Committee consists of the two non-Executive Directors and meets at least twice a year to determine Company
policy on senior executive remuneration, to make detailed recommendations to the Board regarding the remuneration packages
of the Executive Directors and consider awards under the Group’s option schemes. The Chief Executive Officer is consulted on
remuneration packages and policy, but does not attend discussions regarding his own package. The remuneration and terms and
conditions of appointment of the non-Executive Directors are determined by the Board.
Internal control and risk management
The Board has implemented a formal system of controls which accords with the guidance given in the Turnbull Report and
acknowledges its responsibility for reviewing the effectiveness of the systems in place to manage risk and provide reasonable,

ut not absolute, assurance with regard to the safeguarding of Group assets against misstatement or loss. The key elements of
the system of internal control are:
● Clear definition of delegated authorities and preparation of annual budgets for Board approval.
● Close involvement by operating management in the day to day business of the Group, facilitating prompt identification of
risks and action, both financial and operational.
● Regular reporting of individual business performance to the Board and the review of results against planned performance.
● Regular assessment and review of risks and controls and specific annual assessment by the Audit Committee of the
effectiveness of the systems in place. The Audit Committee reports to the Board on its findings.
Statement of directors’ responsibilities
The following statement, which should be read in conjunction with the auditors’ report regarding the respective responsibilities of
Directors and auditors, set out on page 11, is made with a view to distinguishing for shareholders those respective responsibilities
in relation to the accounts.
Company law requires the Directors to prepare financial statements for each financial year, which give a true and fair view of the
state of affairs of the Company and Group and of the profit or loss of the Group for that period. In preparing those financial
statements, the Directors are required to:
● select suitable accounting policies and then apply them consistently;
● make judgements and estimates that are reasonable and prudent;
● state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
● prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will
continue in business.
The Directors confirm that they have complied with the above requirements in preparing the financial statements.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the
financial position of the Group and to enable them to ensure that the financial statements comply with the Companies Act 1985.
They are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the satcomgroup.com website. Uncertainty regarding legal
requirements is compounded as information published on the internet is accessible in many countries with different legal
requirements relating to the preparation and dissemination of financial statements.
Each of the Directors has confirmed:
(1) that so far as the Director is aware there is no relevant audit information of which the Company’s Auditors are unaware;
and
(2) the Director has taken all the steps that he/she should have taken as a Director to make himself/herself aware of any
relevant audit information and to establish that the Company’s Auditors are aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of section 234ZA of the Companies
Act 1985.
9

10
REPORT OF THE DIRECTORS (continued)
Auditors
A resolution to re-appoint Chantrey Vellacott DFK LLP, as auditors for the ensuing year will be proposed at the Annual General
Meeting in accordance with section 385 of the Companies Act 1985.
Approved by the Board of Directors on 8 October 2007
Registered Office:
Unit 3, The Woodford Centre
Lysander Way
Old Sarum
Salisbury
SP4 6BU
Martin Ward
Company Secretary

INDEPENDENT AUDITORS’ REPORT
to the shareholders of SatCom Group Holdings plc
We have audited the financial statements of SatCom Group Holdings plc for the year ended 30 June 2007 which comprise the
Group profit and loss account, Group and Company balance sheets, Group cash flow statement, and related notes. These financial
statements have been prepared under the historical cost convention and the accounting policies set out therein.
This report is made solely to the Company’s members, as a body, in accordance with section 235 of the Companies Act 1985. Our
audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them
in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions
we have formed.
Respective responsibilities of Directors and auditors
As described in the Statement of Directors’ Responsibilities the Company’s Directors are responsible for the preparation of the
financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally
Accepted Accounting Practice).
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and
International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in
accordance with the Companies Act 1985.
We also report to you if, in our opinion, the Directors’ Report is not consistent with the financial statements, if the Company has
not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if
information specified by law regarding Directors’ remuneration and other transactions is not disclosed.
We read other information contained in the financial statements and consider whether it is consistent with the audited financial
statements. This other information comprises only the Report of the Directors, Chairman’s statement and the Chief Executive’s
statement. We consider the implications for our report if we become aware of any apparent misstatements or material
inconsistencies with the financial statements.
Basis of opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices
Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial
statements. It also includes an assessment of the significant estimates and judgements made by the Directors in the preparation
of the financial statements, and of whether the accounting policies are appropriate to the Company’s circumstances, consistently
applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in
order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material
misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the financial statements.
Opinion
In our opinion the financial statements:
● give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of the
Company’s and Group’s affairs as at 30 June 2007 and of its results for the year then ended; and
● have been properly prepared in accordance with the Companies Act 1985; and
● the information given in the Directors’ Report is consistent with the financial statements.
Chantrey Vellacott DFK LLP
Chartered Accountants
Registered Auditors
London
8 October 2007
11

12
GROUP PROFIT AND LOSS ACCOUNT
Year ended 30 June 2007
30 June 2007 30 June 2006
Note $000’s $000’s $000’s
Turnover
Continuing operations 46,517 51,018
Acquisitions 11,496 –
58,013 51,018
Discontinued operations – 540
Group turnover 2 58,013 51,558
Cost of sales 3 (44,212) (41,412)
Gross profit 13,801 10,146
Net operating expenses 3 (9,240) (6,775)
Operating profit 4
Continuing operations 4,155 3,491
Acquisitions 406 –
4,561 3,491
Discontinued operations (–) (120)
Group operating profit 4,561 3,371
Loss on disposal of fixed asset investments (–) (10)
Profit on ordinary activities before interest 4,561 3,361
Interest receivable 346 303
Finance costs 7
Interest payable and similar charges (1,106) (748)
Amortisation of issue costs on convertible loan stock (122) (114)
(1,228) (862)
Profit on ordinary activities before taxation 2 3,679 2,802
Tax on profit on ordinary activities 9 (794) (890)
Profit on ordinary activities after taxation 2,885 1,912
Minority interests 74 69
Profit attributable to members of the Parent Company
(carried forward) 10 2,959 1,981
Profit attributable to members of the Parent Company
(brought forward) 10 2,959 1,981
Dividends 11 (235) (78)
Retained profit 2,724 1,903
Earnings per share
Basic earnings per ordinary share 8 $0.0526 $0.0387
Diluted earnings per ordinary share 8 $0.0512 $0.0385
The Group has no recognised gains or losses other than the results for the period as set out above.
There is no difference between the profits shown above and their historical cost equivalents.
The notes on pages 16 to 32 form part of these financial statements.

GROUP BALANCE SHEET
As at 30 June 2007
30 June 2007 30 June 2006
Note $000’s $000’s $000’s
Fixed assets
Intangible assets 12 13,008 5,869
Tangible assets 13 975 746
13,983 6,615
Current assets
Stocks 15 5,588 3,216
Debtors 16 17,582 11,357
Cash at bank and in hand 17 959 1,901
24,129 16,474
Creditors: Amounts falling due within
one year 18 20,513 15,907
Net current assets 3,616 567
Total assets less current liabilities 17,599 7,182
Creditors: Amounts falling due after
more than one year 19 8,174 5,141
9,425 2,041
Provisions for liabilities and charges
Deferred taxation 21 – –
9,425 2,041
Minority interests 69 18
9,494 2,059
Capital and reserves
Called up share capital 24 6,053 5,250
Share premium account 25 4,845 723
Merger reserve 25 (10,884) (10,884)
Contingent share capital 26 500 714
Profit and loss account 25 8,980 6,256
Equity shareholders’ funds 27 9,494 2,059
These financial statements were approved by the Board and authorised for issue on 8 October 2007 and were signed on its
behalf by:
Mark White Martin Ward
Chief Executive Officer Chief Financial Officer
The notes on pages 16 to 32 form part of these financial statements.
13

14
COMPANY BALANCE SHEET
As at 30 June 2007
30 June 2007 30 June 2006
Note $000’s $000’s $000’s
Fixed assets
Investments 14 17,852 17,641
Current assets
Debtors 16 4,097 505
Cash at bank and in hand 17 8,173 5,348
12,270 5,853
Creditors: Amounts falling due within
one year 18 8,774 8,291
Net current assets/(liabilities) 3,496 (2,438)
Total assets less current liabilities 21,348 15,203
Creditors: Amounts falling due after
more than one year 19 7,237 5,141
14,111 10,062
Capital and reserves
Called up share capital 24 6,053 5,250
Share premium account 25 4,845 723
Contingent share capital 26 500 714
Profit and loss account 25 2,713 3,375
Equity shareholder’s funds 14,111 10,062
These financial statements were approved by the Board and authorised for issue on 8 October 2007 and were signed on its
behalf by:
Mark White Martin Ward
Chief Executive Officer Chief Financial Officer
The notes on pages 16 to 32 form part of these financial statements.

GROUP CASH FLOW STATEMENT
Year ended 30 June 2007
30 June 2007 30 June 2006
Note $000’s $000’s $000’s
Net cash inflow/(outflow) from operating activities 28 1,660 (1,048)
Returns on investments and servicing of finance
Interest received 346 303
Interest paid (1,096) (740)
Interest element of hire purchase (10) (8)
Net cash outflow from returns on investments
and servicing of finance (760) (445)
Taxation (931) (751)
Capital expenditure
Payments to acquire intangible fixed assets (58) (657)
Payments to acquire tangible fixed assets (1,144) (154)
Net cash outflow from capital expenditure (1,202) (811)
Acquisitions and disposals
Cash paid to acquire subsidiary undertakings (2,223) (4,947)
Net cash acquired with subsidiary undertakings (244) 867
Sale of subsidiary undertakings – 120
Net cash disposed of with subsidiary undertakings – (55)
Net cash outflow from acquisitions and disposals (2,467) (4,015)
Equity dividends paid (235) (78)
Cash outflow before financing (3,935) (7,148)
Financing
Decrease in short term borrowing (356) (2,243)
Issue of ordinary share capital (net of costs) 2,529 1,038
Issue of Convertible Unsecured Loan Stock (net of costs) 874 5,141
Capital element of hire purchase (54) (48)
Net cash inflow from financing 2,993 3,888
Decrease in cash 30 (942) (3,260)
The notes on pages 16 to 32 form part of these financial statements.
15

16
NOTES TO THE FINANCIAL STATEMENTS
1. Accounting policies
Basis of accounting
The financial statements have been prepared, in US Dollars ($), under the historical cost convention and in accordance with
applicable accounting standards under United Kingdom Generally Accepted Accounting Practice.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and all subsidiary undertakings.
These are adjusted, where appropriate, to conform to Group accounting policies. Acquisitions are accounted for under the
acquisition method and goodwill on consolidation is capitalised and written off over twenty years from the year of
acquisition. The results of companies acquired or disposed of are included in the Group profit and loss account after or up
to the date that control passes respectively. Group reconstructions are accounted for under the merger method, with any
merger difference arising being shown as a movement on other reserves.
As a consolidated Group profit and loss account is published, a separate profit and loss account for the Parent Company is
omitted from the Group financial statements by virtue of section 230 of the Companies Act 1985.
Entities in which the Group holds an interest on a long term basis and are jointly controlled by the Group and one or more
other ventures under a contractual agreement are treated as joint ventures. In the Group financial statements, joint ventures
are accounted for using the gross equity method.
Turnover
The turnover shown in the Group profit and loss account represents amounts invoiced during the period, exclusive of Value
Added Tax.
Goodwill
Goodwill arising on acquisitions is classified as an asset on the balance sheet and amortised on a straight line basis over its
estimated useful economic life of 20 years. It is reviewed for impairment when any events or changes in circumstances
indicate that the carrying value may not be recoverable.
Other intangible assets
Other intangible assets acquired are capitalised at cost. Other intangible assets are amortised on a straight line basis over
their estimated useful lives up to a maximum of 20 years. The carrying value of intangible assets is reviewed for impairment
when any events or changes in circumstances indicate the carrying value may not be recoverable.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic
life of that asset as follows:
Goodwill: 5% per annum
Other intangible assets: 5% per annum
Fixed assets
All fixed assets are initially recorded at cost.
Depreciation
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic
life of that asset as follows:
Leasehold improvements over remaining lease term straight line
Equipment 20-33% per annum straight line

1. Accounting policies (continued)
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow
moving items.
Hire purchase agreements
Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value.
The capital element of future payments is treated as a liability and the interest is charged to the Group profit and loss
account on a straight line basis.
Operating lease agreements
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor
are charged against profits on a straight line basis over the period of the lease.
Foreign currencies
Assets and liabilities in other currencies are translated into U.S. Dollars at the rates of exchange ruling at the balance sheet
date. Transactions in other currencies are translated into U.S. Dollars at the rate of exchange ruling at the date of the
transaction. Exchange differences are taken into account in arriving at the operating profit.
Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet
date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to
pay less or to receive more tax, with the following exceptions:
● Provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets,
and gains on disposal of fixed assets that have been rolled over into replacement assets only to the extent that at
the balance sheet date, there is a binding agreement to dispose of the assets concerned. However, no provision is
made where, on the basis of all available evidence at the balance sheet date, it is more likely than not that the
taxable gain will be rolled over into replacement assets and charged to tax only where the replacement assets
are sold;
● Deferred tax assets are recognised only to the extent that the Directors consider that it is more likely than not
that there will be suitable taxable profits from which the future reversal of the underlying timing differences can
be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which
timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either
financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual
interest in the assets of the Company after deducting all of its liabilities.
17

18
NOTES TO THE FINANCIAL STATEMENTS (continued)
2. Segmental information
Segmental information on a Group basis is set out below:
European Union United States Asia Rest of World Group
2007 2006 2007 2006 2007 2006 2007 2006 2007 2006
$000’s $000’s $000’s $000’s $000’s $000’s $000’s $000’s $000’s $000’s
Turnover
Turnover by Destination
Sales to third parties 6,605 5,951 31,495 31,980 14,387 9,966 5,526 3,661 58,013 51,558
Turnover by origin
Total sales 17,620 29,647 25,055 15,385 18,042 9,966 9,510 – 70,227 54,998
Inter-segment sales (3,757) (3,440) (1,814) – (2,290) – (4,353) – (12,214) (3,440)
Sales to third parties 13,863 26,207 23,241 15,385 15,752 9,966 5,157 – 58,013 51,558
Profit before taxation
Segment profit 833 1,539 631 927 2,740 1,104 598 – 4,802 3,570
Common costs (241) (209)
Operating profit 4,561 3,361
Net interest (882) (559)
Group profit before taxation 3,679 2,802
Net assets
Segment net assets 1,255 1,105 1,941 1,492 4,508 1,842 608 101 8,312 4,540
Unallocated
Assets/(Liabilities) 1,113 (2,499)
Minority interests 69 18
Total net assets 9,494 2,059
3. Analysis of cost of sales and net operating expenses
Continuing Acquired Discontinued
Operations Operations Operations Total
$000’s $000’s $000’s $000’s
Year ended 30 June 2007
Cost of sales 35,488 8,724 – 44,212
Distribution costs 589 98 – 687
Administrative expenses 6,285 2,268 – 8,553
Net operating expenses 6,874 2,366 – 9,240
Year ended 30 June 2006
Cost of sales 41,044 – 368 41,412
Distribution costs 466 – – 466
Administrative expenses 6,017 – 292 6,309
Net operating expenses 6,483 – 292 6,775

4. Operating profit
30 June 2007 30 June 2006
Operating profit is stated after charging: $000’s $000’s
Amortisation 411 255
Depreciation of owned fixed assets 403 222
Depreciation of assets held under hire purchase agreements 21 33
Auditors’ remuneration
– as Auditors 131 104
– other work 54 80
Operating lease costs: land and buildings 228 147
Net (profit)/loss on foreign currency translation (24) 79
30 June 2007 30 June 2006
Auditor’s remuneration – as Auditors: $000’s $000’s
– Audit of the financial statements 70 58
– Audit of accounts of subsidiaries of the Company 61 46
131 104
Auditor’s remuneration – other fees:
– Corporate finance transactions 39 65
– Other 15 15
54 80
5. Particulars of employees
30 June 2007 30 June 2006
The average number of staff employed by the Group was: No. No.
Distribution 40 13
Administrative 65 52
Management 11 19
116 84
30 June 2007 30 June 2006
The aggregate payroll costs of the above were: $000’s $000’s
Wages and salaries 3,847 3,214
Social security costs 381 255
4,228 3,469
19

20
NOTES TO THE FINANCIAL STATEMENTS (continued)
5. Particulars of employees (continued)
Share options
The following share options were granted by the Company, during the year, to employees of the Group, none of whom
were Directors:
20 December 2006 162,538 Ordinary shares of 10 cents each
As at 30 June 2007 the following options were outstanding under the Enterprise Management Incentive Scheme (“EMI”) and
the Overseas Unapproved Scheme:
Number Exercise price Exercise dates
EMI approved (UK) 28,440 9.6 pence April 2008 – 2015
Unapproved (Overseas) 10,760 9.6 pence April 2008 – 2015
EMI approved (UK) 5,110 34.0 pence October 2008 – 2015
Unapproved (Overseas) 125,278 34.0 pence October 2008 – 2015
EMI approved (UK) 21,890 36.5 pence December 2009 – 2016
Unapproved (Overseas) 129,436 36.5 pence December 2009 – 2016
6. Directors’ emoluments
The Directors’ aggregate emoluments in respect of qualifying services were:
30 June 2007 30 June 2006
$000’s $000’s
Emoluments 555 481
Emoluments of highest paid Director:
30 June 2007 30 June 2006
$000’s $000’s
Total emoluments 238 219
7. Finance costs
30 June 2007 30 June 2006
$000’s $000’s
Finance charges 10 8
Interest on Directors’ and shareholders’ loans (note 23) 64 86
Interest on convertible loan stock 548 412
Amortisation of issue costs on convertible loan stock (note 19) 122 114
Bank interest and other similar charges payable 484 242
1,228 862

8. Earnings per share
Basic earnings per share are based on the Group profit attributable to members of the Parent Company of $2,959,000
(2006: $1,981,000) and on 56,220,132 (2006: 51,132,380) being the weighted average number of shares in issue during
the year.
Diluted earnings per share are based on the profit attributable to members of the Parent Company including options held
adjusted for the interest payable to the convertible bondholders less the relevant tax relief thereon being $3,424,982
(2006: $2,269,000) and on 66,854,101 (2006: 58,909,761) being the diluted weighted average number of shares in issue
during the year.
9. Taxation on ordinary activities
(a) Analysis of charge in the period
30 June 2007 30 June 2006
$000’s $000’s
Current tax:
UK taxation
In respect of the period:
UK Corporation tax based on the results for the year 33 329
Foreign tax
Current tax on income for the year 761 580
Total current tax (note 9(b)) 794 909
Deferred tax:
Origination and reversal of timing differences (note 21) (–) (19)
Tax on profit on ordinary activities 794 890
(b) Factors affecting current tax charge
The tax assessed on the profit on ordinary activities for the period is lower than the standard rate of corporation tax in the
UK of 30% (2006: 30%).
30 June 2007 30 June 2006
$000’s $000’s
Profit on ordinary activities before taxation 3,679 2,802
Profit on ordinary activities at 30% 1,103 841
Expenses not deductible for tax purposes 2 80
Capital allowances in period less than depreciation 1 20
Tax under provided in previous years – –
Lower taxes on overseas earnings (215) (32)
Losses arising in year not relieved against current tax (97) –
Total current tax (note 9(a)) 794 909
21

22
NOTES TO THE FINANCIAL STATEMENTS (continued)
10. Profit attributable to members of the Parent Company
The loss dealt with in the accounts of the Parent Company was $427,132 (2006: profit $726,847) after including Group
dividends received of $nil (2006: $1,200,000).
11. Dividends
The dividends paid in the year were $140,000 (0.25 cents per ordinary share) and $95,000 (0.17 cents per ordinary share)
for the 2006 final dividend and the 2007 interim dividend respectively. A final dividend in respect of the year ended 30 June
2007, of 0.33 cents per ordinary share is to be proposed at the Annual General Meeting in December 2007. Under IAS 37
these financial statements do not reflect this final dividend payable.
30 June 2007 30 June 2006
Interim dividend paid per ordinary share 0.17 cents 0.15 cents
Final dividend proposed per ordinary share 0.33 cents 0.25 cents
Total dividend per ordinary share 0.50 cents 0.40 cents
12. Intangible fixed assets
Goodwill Other Total
Group $000’s $000’s $000’s
Cost
At 1 July 2006 6,380 36 6,416
Additions 6,797 753 7,550
At 30 June 2007 13,177 789 13,966
Amortisation
At 1 July 2006 536 11 547
Charge for the year 410 1 411
At 30 June 2007 946 12 958
Net book value
At 30 June 2007 12,231 777 13,008
At 30 June 2006 5,844 25 5,869

13. Tangible fixed assets
Short Leasehold
Improvements Equipment Total
Group $000’s $000’s $000’s
Cost
At 1 July 2006 154 1,022 1,176
Additions 100 547 647
At 30 June 2007 254 1,569 1,823
Depreciation
At 1 July 2006 28 402 430
Charge for the year 14 404 418
At 30 June 2007 42 806 848
Net book value
At 30 June 2007 212 763 975
At 30 June 2006 126 620 746
Hire purchase agreements
Included within the net book value of $975,606 is $341,071 (2006: $92,042) relating to assets held under hire purchase
agreements. The depreciation charged in the financial statements in the period in respect of such assets amounted to
$20,748 (2006: $33,282).
14. Investments
Subsidiary
Undertaking
Company $000’s
Cost
At 1 July 2006 17,641
Additions 211
At 30 June 2007 17,852
The additions relate to subsequent expenditure in relation to Horizon Mobile Communications Limited (“HMC”) and the
investment in the newly formed subsidiary, SatCom Global FZE.
Details of the material trading investments in which the Group holds 20% or more of the issued share capital of any
class are as set out below. All companies shown are in the business of distribution of satellite communication equipment
and airtime.
23

24
NOTES TO THE FINANCIAL STATEMENTS (continued)
14. Investments (continued)
Proportion Country of
Name of subsidiary Holding of shares held incorporation
SatCom Distribution Limited Ordinary shares 100% UK
SatCom Distribution Inc. Ordinary shares 100%* USA
O’Gara Satellite Systems Inc. Ordinary shares 100%* USA
SatCom Distribution (Asia) Limited Ordinary shares 100%* Hong Kong
SatCom Distribution Middle East FZ LLC Ordinary shares 55%* UAE
Horizon Mobile Communications Co. Limited Ordinary shares 100%* Thailand
Horizon Mobile Communications Pte Limited Ordinary shares 100%* Singapore
Horizon Mobile Communications (HK) Co. Limited Ordinary shares 100%* BVI
Horizon Mobile Communications (HK) Co. Limited Registered branch 100%* Japan
Horizon Mobile Communications (Australia) Pty Ordinary shares 100%* Australia
Horizon Mobile Communication (UK) Limited Ordinary shares 100%* UK
HMC America Limited Limited partnership 100%* USA
SatCom Global FZE Ordinary shares 100% UAE
World Communication Center Inc Ordinary shares 100%* USA
*Held by a subsidiary undertaking
The Group acquired World Communication Center Inc (“WCC”) for an initial consideration of $5,321,000 (including costs),
satisfied by a combination of cash and SatCom shares.
In addition, there is deferred consideration of $750,000, which has been included in these accounts as the conditions on
which the deferral are likely to be met. The acquisition has been accounted for using acquisition accounting and goodwill
arising on the acquisition of WCC has been capitalised and will be amortised over 20 years. The investment in WCC is
included in the balance sheet of the acquiring subsidiary at its book value at the date of acquisition.
Details of the net assets of World Communication Center Inc acquired is shown in note 31.
The Directors consider that the difference between book value and fair value is not material.
World Communication Center Inc acquired in the year, contributed a decrease of $231,000 to the Group’s operating cash
flows, paid $75,000 in respect of taxation and utilised $81,000 for capital expenditure.
World Communication Center Inc earned a profit after tax of $228,282 in the period from acquisition to 30 June 2007.

15. Stocks
Group Company
30 June 2007 30 June 2006 30 June 2007 30 June 2006
$000’s $000’s $000’s $000’s
Finished goods 5,588 3,216 – –
The difference between the cost of stocks and their replacement cost is not material.
16. Debtors
Group Company
30 June 2007 30 June 2006 30 June 2007 30 June 2006
$000’s $000’s $000’s $000’s
Trade debtors 12,888 7,610 – –
Amounts owed from Group undertakings – – 3,617 91
Other debtors 350 1,118 247 381
Taxation and social security costs 522 126 2 27
Prepayments and accrued income 3,822 2,503 231 6
17. Cash at bank and in hand
17,582 11,357 4,097 505
The Group has banking facilities with HSBC Bank Plc, which are supported by guarantees from main trading subsidiaries of
the Group together with a debenture over the cash and assets of SatCom Group Holdings Plc. The principal facility is an
overdraft of $7.5m in SatCom Distribution Limited, which is set-off in these accounts against cash balances with the same
bank in SatCom Group Holdings Plc.
18. Creditors: Amounts falling due within one year
Group Company
30 June 2007 30 June 2006 30 June 2007 30 June 2006
$000’s $000’s $000’s $000’s
Trade creditors 7,490 8,423 14 107
Amounts owed to Group undertakings – – 6,289 5,733
Hire purchase agreements (note 20) 118 18 – –
Directors’ loan accounts (note 23) 925 1,281 925 1,281
Other creditors 2,600 610 1,202 402
Taxation and social security costs 1,412 936 10 3
Accruals and deferred income 7,968 4,639 334 765
Hire purchase and finance leases obligations are secured over the asset acquired.
20,513 15,907 8,774 8,291
25

26
NOTES TO THE FINANCIAL STATEMENTS (continued)
19. Creditors: Amounts falling due after more than one year
Group Company
30 June 2007 30 June 2006 30 June 2007 30 June 2006
$000’s $000’s $000’s $000’s
Hire purchase agreements (note 20) 187 – – –
Deferred liability 750 – – –
Convertible unsecured loan stock 7,237 5,141 7,237 5,141
Hire purchase and finance leases obligations are secured over the asset acquired.
8,174 5,141 7,237 5,141
The amounts falling due after more than one year include the following convertible unsecured loan stock (“CULS”):–
A. Redeemable/Convertible June 2009 with interest rate of 8% – £3,000,000 issued on 15 July 2005
B. Redeemable/Convertible June 2010 – £450,000 issued on 7 July 2006
C. Redeemable/Convertible June 2009 – $600,000 issued on 7 July 2006
The CULS can be converted, at the option of the holder, into ordinary shares at 39p per share at any time during the
conversion period, which is the period from admission to three business days prior to the final maturity date of (A&C)
30 June 2009 and (B) 30 June 2010.
The Company incurred costs of $505,000 in relation to the issue of the CULS and is amortising these costs over the
conversion period of the CULS. The unamortised balance of $268,000 has been deducted from the CULS balance of
$7,505,000 resulting in a net balance at 30 June 2007 of $7,237,000.
The Group has an earn out liability of $750,000 payable in the event that WCC achieves a profit before tax of $1 million
in the year ended 30 June 2008. A provision for this amount has been provided.
20. Commitments under hire purchase agreements
Future commitments under hire purchase agreements are as follows:
Group Company
30 June 2007 30 June 2006 30 June 2007 30 June 2006
$000’s $000’s $000’s $000’s
Amounts payable within 1 year 118 18 – –
Amounts payable between
1 and 2 years 114 – – –
2 and 5 years 73 – – –
305 18 – –

21. Deferred taxation
The movement in the deferred taxation provision during the period was:
Group Company
30 June 2007 30 June 2006 30 June 2007 30 June 2006
$000’s $000’s $000’s $000’s
Provision brought forward – 19 – –
Decrease in provision (note 9 (a)) – (19) – –
Provision carried forward – – – –
No deferred tax is recognised on unremitted earnings of overseas subsidiaries as no earnings are expected to be remitted in
the foreseeable future.
22. Commitments under operating leases
At 30 June 2007, the Group had annual commitments under non-cancellable operating leases as set out below.
Land and buildings
30 June 2007 30 June 2006
$000’s $000’s
Operating leases which expire:
Within 1 year 148 107
Within 2 to 5 years 130 50
After more than 5 years 52 48
330 205
27

28
NOTES TO THE FINANCIAL STATEMENTS (continued)
23. Related party transactions
During the current and previous year no individual had overall control of the Parent Company, SatCom Group Holdings Plc.
SatCom Group Holdings Plc has taken advantage of the exemption under FRS 8 paragraph 3(a) and 3(b), not to disclose
Group entity transactions.
Amounts due to Directors during the year were as follows:
Opening
Loans
introduced/ Interest paid Closing
Balance (repaid) at 4% Balance
Name $’000’s $’000’s $’000’s $’000’s
Mark White 944 (424) 36 556
Sandy Johnson 337 6 13 356
Martin Ward – 13 – 13
1,281 (405) 49 925
The movement on the shareholder loan included in other creditors is:
Opening
Loans
introduced/ Interest paid Closing
Balance (repaid) at 4% Balance
Name $’000’s $’000’s $’000’s $’000’s
Adam Thompson 392 (5) 15 402
SatCom Distribution Limited incurred consultancy costs in the period in the amount of €297,660 (2006: €297,660) from
Satellite Communications Consultancy BVBA. Satellite Communications Consultancy BVBA is a company incorporated in
Belgium and was controlled by the director Mark White.

24. Share capital
Authorised share capital:
30 June 2007 30 June 2006
$000’s $000’s
500,000,000 Ordinary shares of $0.10 each 50,000 50,000
50,000 Deferred shares of £1 each 90 90
Allotted and called up:
50,090 50,090
30 June 2007 30 June 2006
Number 000’s $000’s Number 000’s $000’s
Ordinary shares of $0.10 each 59,629 5,963 51,599 5,160
Deferred shares of £1 each 50 90 50 90
6,053 5,250
Ordinary shares of 10 cents each issued during the year were issued for the following allotment prices in sterling (pence)
and converted into US dollars at the rate applicable on the receipt of funds by the Company:
Number Aggregate Allotment Allotted
Date of shares nominal value price fully paid up for:
Jul 2006 203,960 $20,396 9.6 pence Cash under share option scheme
Jul 2006 322,580 $32,258 31.0 pence Cash
Aug 2006 3,333,436 $333,344 35.6 pence Partial consideration for acquisition of WCC
Sep 2006 510,740 $51,074 31.825 pence Partial consideration for acquisition of HMC
Apr 2007 3,653,276 $365,328 32.0 pence Cash
May 2007 5,830 $583 9.6 pence Cash under share option scheme
Costs relating to the issue of shares during the year totalling $101,480 were debited to the Share Premium account.
29

30
NOTES TO THE FINANCIAL STATEMENTS (continued)
25. Reserves
Profit and loss
Share premium Merger reserve account
Group $000’s $000’s $000’s
Balance brought forward 723 (10,884) 6,256
Profit for the year – – 2,959
Equity dividends paid – – (235)
Arising on share issue 4,223 – –
Issue costs (101) – –
Balance carried forward 4,845 (10,884) 8,980
The acquisition by the Company of SatCom Distribution Limited and its subsidiaries in May 2004 was accounted for as a
merger. Accordingly a debit merger reserve has been recognised in the consolidated balance sheet representing the difference
between the consideration paid to acquire the Group and its net assets at the date of the transaction.
Profit and loss
Share premium account
Company $000’s $000’s
Balance brought forward 723 3,375
Profit for the year – (427)
Equity dividends paid – (235)
Arising on share issue 4,223 –
Issue costs (101) –
Balance carried forward 4,845 2,713
26. Contingent share capital
Under the terms of the acquisition of Horizon Mobile Communications Group (“HMC”), SatCom have deferred consideration
to pay, based on the gross profit achieved by HMC in the two years ended 31 December 2006. The deferred consideration is
payable 50% in cash and subject to SatCom’s share price at the time of issue, 50% by the issue of new ordinary shares in
SatCom at a 5% discount to the average closing mid-price over the previous month. Based on the forecast results, SatCom
expects to have an obligation in deferred consideration of $1,000,000 of which 50% will be settled in new shares with a
value of $500,000.
On 26 September 2006, the Company paid $608,000 of this deferred consideration of which $304,000 was settled in shares
and a provision for contingent shares brought forward of $214,000 was released. The remaining balance is expected to be
paid by 31 October 2007, based on HMC’s 2006 results.

27. Reconciliation of movements in equity shareholders’ funds
30 June 2007 30 June 2006
$000’s $000’s
Profit for the financial year 2,959 1,981
Dividends paid to equity shareholders (235) (78)
2,724 1,903
New equity share capital subscribed 4,925 1,038
7,649 2,941
Contingent share capital (note 26) (214) 714
Net movement in equity shareholders’ equity funds 7,435 3,655
Opening equity shareholders’ equity funds/(deficit) 2,059 (1,596)
Closing equity shareholders’ equity funds 9,494 2,059
28. Reconciliation of operating profit to net cash inflow/(outflow) from operating activities
30 June 2007 30 June 2006
$000’s $000’s
Operating profit 4,561 3,371
Amortisation 411 255
Depreciation 418 255
Increase in stocks (2,073) (943)
Decrease in debtors (4,693) 1,488
Decrease in creditors 3,036 (5,474)
Net cash inflow/(outflow) from operating activities 1,660 (1,048)
29. Analysis of changes in net (debt)/funds
At 1 July 2006 Cash flows At 30 June 2007
$000’s $000’s $000’s
Net cash:
Cash in hand and at bank 1,901 (942) 959
Debt:
Debt due within 1 year (1,281) 356 (925)
Hire purchase agreements (18) (287) (305)
(1,299) 69 (1,230)
Net (debt)/funds 602 (873) (271)
31

32
NOTES TO THE FINANCIAL STATEMENTS (continued)
30. Reconciliation of net cash flow to movement in net (debt)/funds
30 June 2007 30 June 2006
$000’s $000’s
Decrease in cash in the year (942) (3,260)
Net cash outflow from other loans 54 2,243
Cash outflow in respect of hire purchase 356 48
Change in net funds resulting from cash flows (532) (969)
New hire purchase (341) –
Movement in net funds in the year (873) (969)
Net funds at 1 July 2006 602 1,571
Net (debt)/funds at 30 June 2007 (271) 602
31. Purchase of World Communication Center, Inc.
30 June 2007
Net assets acquired $000’s
Fixed assets 245
Stocks 299
Debtors 1,210
Cash and bank in hand (244)
Creditors (1,638)
(128)
Goodwill 6,199
Net cash paid 2,039
Shares allotted 2,182
Convertible unsecured loan stock 1,100
Deferred consideration (note 26) 750
32. Financial instruments
The Group faces some risks not all of which are within our control. The main risk factors are outlined as follows:
● Suppliers – The Group purchases its airtime from a few main satellite operators, the majority being from Inmarsat,
Iridium and Thuraya. We are reliant on the operators maintaining their capacity to enable our customers to use
their equipment. The satellite operators have contingency plans to protect their business and we feel the risk is
not significant.
● Foreign Currency – The Group reports its results in US Dollars because the majority of the trading income and
expenditure is in that currency. The Group has some exposure to sterling/US dollar exchange rate due to the fact that
UK head office, AIM costs and some interest costs are payable in sterling. The majority of sterling debt on the balance
sheet has been hedged during the year and going forward to protect the Group from a further reduction in the
US dollar/sterling rate.
6,071
6,071

HORIZON MOBILE COMMUNICATIONS
HORIZON MOBILE COMMUNICATIONS
HORIZON MOBILE COMMUNICATIONS
WORLD COMMUNICATION CENTER
HORIZON MOBILE COMMUNICATIONS

Group Head Office
Unit 3, The Woodford Centre,
Lysander Way, Old Sarum,
Salisbury, Wiltshire, SP4 6BU,
United Kingdom
Telephone: +44 (0)1722 410800
Facsimile: +44 (0)1722 410777
Email: enquiries@satcomgroup.com
www.satcomgroup.com
Offices also located in:
USA
UAE
Thailand
Singapore
Hong Kong
Japan
Australia