Directors Report 1

The directors present their strategic report for Tikit TFB Limited (the "Company") for the period ended 31 March 2014.
Significant events during the period
On 17 January 2013, the entire share capital of Tikit Group Limited, the Company's immediate parent company, was acquired by British Telecommunications plc. Consequently, the Company has changed its reporting period-end from 31 December to 31 March to align with its ultimate controlling entity, BT Group plc. These financial statements thus cover the 15 month period ended 31 March 2014. The prior period constituted the 12 months ended 31 December 2012.
Review of business
Turnover was ?6,925,000, a pro-rata increase of 2% on the prior period. This is reflected by the continued growth in our contractual base of support & service contracts as well as new business sales of our own IPR software.
Gross profit of ?4,307,000 represented 62% of revenue compared to 64% in the prior period. This change reflects increased resource to service the project management associated with the implementation of our own IPR software sales and quality assured support services provided.
Administrative expenses of ?1,988,000 were pro-rata 18% lower than the prior period. Savings in a number of areas of our overhead cost base, including share based payments, amortisation of goodwill for the Company's subsidiary entities enabled us to achieve this. The operating profit result for the period was ?2,319,000. Principal risks and uncertainties
The principal risks to which BT Group plc (the ultimate controlling entity of the Company) is exposed are also the principal matters which would create risk and uncertainty for the Company. These are managed by the directors of BT Group plc at group level rather than at an individual business unit level. They are discussed on page 50-55 of the group's 2014 annual report which does not form part of this report.
Key performance indicators ("KM")
The directors of BT Group plc manage the Group's operations on a divisional basis. For this reason, the Company's directors believe that analysis using key performance indicators for the Company is not necessary or appropriate for an understanding of the development, performance or position of the business of the Company.

By order of the board

TJ Springham 81 Newgate Street Director London EC1A 7AJ Dated: .6 Oe(111-be( 2014

4.0

Tikit TFB Limited Strategic Report, Directors' Report and financial statements 2014-03-31 00:00:00

Directors' report

The directors present their report together with the audited financial statements for the 15 month period ended 31 March 2014.

Results and dividends The profit and loss account is set out on page 9 and shows the profit for the period. Dividends of nil (2012: frill) were paid during the period.

Principal activities and future developments The principal activity of the company in the period under review was that of the development, marketing, sale and support of quality integrated IT solutions and services to the legal profession, and this remains so looking forward. However, the directors continue to review the optimum operating model for the business, both within the company itself and in the wider group of BT Group plc.

Directors The directors of the company who were in office during the period and up to the date of signing the financial statements were: S Hill M Garnish DA Hobday RP Gray TJ Springham D Lumsden

Appointed 13 May 2013 ? Resigned 31 July 2013 Appointed 13 May 2013 Appointed 13 May 2013 Resigned 15 February 2013 5.0 Tikit TFB Limited Strategic Report, Directors' Report and financial statements 2014-03-31 00:00:00

Directors' report (continued)

Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: ?select suitable accounting policies and then apply them consistently;
?make judgements and accounting estimates that are reasonable and prudent;
?state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
?prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities

Disclosure of information to auditors As far as each of the directors is aware, there is no relevant audit information of which the company's auditor is unaware and each of the directors has taken all reasonable steps that ought to have been taken to make the auditor aware of any relevant audit information and to establish that the auditor is aware of that information.

Independent auditors The company was acquired by British Telecommunications plc on 17 January 2013 and following the acquisition, PricewaterhouseCoopers LLP were appointed the company's auditors. Pursuant to Section 487 of the Companies Act 2006, the auditors will be deemed to be reappointed and PricewaterhouseCoopers LLP will therefore continue in office. By order of the board

81 Newgate Street TJ Springham London Director EC1A 7AJ Dated: 15 Oeimbef 2014

6.0

Tikit TFB Limited Strategic Report, Directors' Report and financial statements 2014-03-31 00:00:00

Independent auditors' report to the members of Tikit TFB Limited
Report on the financial statements Our opinion In our opinion the financial statements, defined below:
?give a true and fair view of the state of the company's affairs as at 31 March 2014 and of its profit for the period then ended; ?have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ?have been prepared in accordance with the requirements of the Companies Act 2006.
This opinion is to be read in the context of what we say in the remainder of this report.
What we have audited
The financial statements, which are prepared by Tikit TFB Limited, comprise:
?the balance sheet as at 31 March 2014; ?the profit and loss account for the period then ended; and ?the notes to the financial statements, which include a summary of significant accounting policies and other explanatory information.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
In applying the financial reporting framework, the directors have made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events.
What an audit of financial statements involves
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) ("ISAs (UK & Ireland)"). An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of:
?whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; ?the reasonableness of significant accounting estimates made by ,the directors; ?and the overall presentation of the financial statements.
In addition, we read all the financial and non-financial information in the Strategic Report, Directors Report and Financial Statements (the "Annual Report") to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Strategic report and the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements.

7.0 Tikit TFB Limited Strategic Report, Directors' Report and financial statements 2014-03-31 00:00:00

Independent auditors' report to the members of Tikit TFB Limited (continued)
Other matters on which we are required to report by exception
Adequacy of accounting records and information and explanations received
Under the Companies Act 2006 we are required to report to you if, in our opinion:
?we have not received all the information and explanations we require for our audit; or ?adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or ?the financial statements are not in agreement with the accounting records and returns. We have no exceptions to report arising from this resPonsibility. Directors' remuneration
Under the Companies Act 2006 we are required to report to you if, in our opinion, certain disclosures of directors' remuneration specified by law are not made. We have no exceptions to report arising from this responsibility. Responsibilities for the financial statements and the audit Our responsibilities and those of the directors
As explained more fully in the statement of directors' responsibilities set out on page 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and ISAs (UK & Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
This report, including the opinions, has been prepared for and only for the company's members as a body in accordance with Chapter 3 of Part .16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Paul Barkus (Senior Statutory Auditor) For and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London

Dated: 'S -<"--w?Cnst-/ 2014. 8.0 Tikit TFB Limited Strategic Report, Directors' Report and financial statements 2014-03-31 00:00:00

Directors Report 2

Directors' report
The directors present their report together with the audited financial statements for the year ended 31 December 2012.0

Results and dividends The profit and loss account is set out on page 5 and shows the profit for the year
Dividends of frill (2011 fml) were paid during the year

Principal activities The principal activity of the company in the period under review was that of the development, marketing, sale and support of quality integrated IT solutions and services to the legal profession

Post balance sheet event On 17 January 2013, the entire share capital of Tikit Group Limited the Company's ultimate parent company was acquired by British Telecommunications plc

Directors The directors who held office throughout the period were as follows S Hill M Garnish DA Hobday Appointed 13 May 2013 RP Gray Appointed 13 May 2013 Ti Springham Appointed 13 May 2013 D Lumsden Resigned 15 February 2013

Disclosure of information to auditors The directors who held office at the date of approval of this directors' report confirm that, so far as they are each aware, there is no relevant audit information of which the Company's auditors are unaware, and each director has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information

Auditors The company was taken over by British Telecommunications plc on 17 January 2013 and it is the intention that in due course British Telecommunications plc's group auditors, PricewaterhouseCoopers LLP, will be appointed for the next reporting period

By order of the board
Z TJ Springham Ci?./? 81 Newgate Street London Director EC I A 7A1
Dated 7 June 2013 2.0 Tilat TFB Limited Directors report and financial statements 2012-12-31 00:00:00

Statement of directors' responsibilities in respect of the directors' report and the financial statements

The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations Company law requires the directors to prepare financial statements for each financial year Under that law they have elected to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice) Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period In preparing these financial statements, the directors are required to
?select suitable accounting policies and then apply them consistently,
?make judgments and estimates that are reasonable and prudent, ?state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, and ?prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006 They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities

Independent auditors' report to the members of Tikit TFB Limited
We have audited the financial statements of Tdat TFB Limited for the year ended 31 December 2012 set out on pages 5 to 16 The financial reporting framework that has been applied in their preparation is applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice) This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 ot the Companies Act 2006 Our audit work has been undertaken so that we might state to the company's members those matters we are required 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, tor our audit work, for this report, or for the opinions we have formed Respective responsibilities of directors and auditors As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and lair view Our responsibility is to audit, and express an opinion on, the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the Financial Reporting Council's web- site at www Ire org uk/audiiscopeukrinvate. Opinion on financial statements In our opinion the financial statements ?give a true and fair view of the state of the company's affairs as at 31 December 2012 and of its profit for the year then ended, ?have been properly prepared in accordance with UK Generally Accepted Accounting Practice, and ?have been prepared in accordance with the requirements of the Companies Act 2006 Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you it, in our opinion ?adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us, or ?the financial statements are not in agreement with the accounting records and returns, or ?certain disclosures of directors' remuneration specified by law are not made, or ?we havemo .ived all the information and explanations we require for our audit

Philip Charles (Senior Statutory Auditor) for and on behalf of KPMG Audit Plc, Statutory Auditor Chartered Accountants St Nicholas House Park Row Nottingham NG I 6FQ

Dated 1- Tit n-t_ 2c13

4.0 Tslat TFB Limited Directors report and financial statements 2012-12-31 00:00:00

Directors Report 3

Directors' report
The directors present their report together with the audited financial statements for the year ended 31 December 2011.0 Principal activities The principal activity of the company in the period under review was that of the development, marketing, sale and support of quality integrated IT solutions and services to the legal profession Results and dividends The profit and loss account is set out on page 5 and shows the profit for the year Dividends of frill (2010 Thi0 were paid during the year Directors The directors who held office throughout the period were as follows S Hill M Garnish D Lumsden Disclosure of information to auditors The directors who held office at the date of approval of this directors' report confirm that, so far as they are each aware, there is no relevant audit information of which the Company's auditors are unaware, and each director has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information Auditors Pursuant to Section 487 of the Companies Act 2006, the auditors will be deemed to be reappointed and KPMG Audit Plc will therefore continue in office

S Hill Director 12 Gough Square London EC4A 3DW 2012-09-26 00:00:00

By order f the board 2.0 Taut TI'S Limited Directors report and financial statements 2011-12-31 00:00:00

Statement of directors' responsibilities in respect of the directors' report and the financial statements
The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations Company law requires the directors to prepare financial statements for each financial year Under that law they have elected to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice) Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period In preparing these financial statements, the directors are required to ?select suitable accounting policies and then apply them consistently, ?make judgments and estimates that are reasonable and prudent, ?state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, and ?prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006 They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities

3.0

Independent auditors' report to the members of Tikit TFB Limited
We have audited the financial statements of That 1P13 Limited for the year ended 31 December 2011 set out on pages 5 to 16 The financial reporting framework that has been applied in their preparation is applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice) This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 Our audit work has been undertaken so that we might state to the company's members those matters we are required 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 explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view Our responsibility is to audit, and express an opinion on, the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors Scope of the audit of the fmancial statements A descnption of the scope of an audit of financial statements is provided on the APB's web-site at www frc org uk/apb/scope/pnvate cfm. Opinion on financial statements In our opinion the financial statements ?give a true and fair view of the state of the company's affairs as at 31 December 2011 and of its profit for the year then ended, ?have been properly prepared in accordance with UK Generally Accepted Accounting Practice, and ?have been prepared in accordance with the requirements of the Compames Act 2006 Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion ?adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us, or ?the financial statements are not in agreement with the accounting records and returns, or ?certain disclosures of directors' remuneration specified by law are not made, or ?we have not received all the information and explanations we require for our audit

Philip Charles (Senior Statutory Auditor) for and on behalf of KPMG Audit Plc, Statutory Auditor Chartered Accountants St Nicholas House Park Row Nottingham NG1 6FQ

2012-09-26 00:00:00

4.0
Tait TFB Limited Directors report and financial statements 2011-12-31 00:00:00

Directors Report 4

Directors' report
1 he directors present their report together with the audited financial statements for the year ended 31 December 2010.0 Principal activities Me principal activity of the company in the period under review was that of the development marketing, sale and support of qUallIN integrated II solutions and services to the legal profession Results and dividends the profit and loss account is set out on page 5 and shows the profit for the year Dividends of End (2009 (nil) ere paid during the year Directors [he directors who held of lice throughout the period were as follows ?i Gill M Garnish D Lumsden Disclosure of information to auditors 1 hc directors who held ol lice at the date of approval of this directors report conlirm that so far as they are each aware there is no relevant audit information of which the Company s auditors are unaware, and each director has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit inlormation and to establish that the company s auditors are aware of that information A Uditors Pursuant to Section 487 of the Companies Act 2006 the auditors will be deemed to be reappointed and KPMG Audit Plc will there lore continue in office

By order of the board

12 Gough Square London

2011-09-26 00:00:00 S Hill Director

2.0 TFB Limited Directors report ond financial statements 2010-12-31 00:00:00

Statement of directors' responsibilities in respect of the directors' report and the financial statements
I hc directors arc responsible for preparing the Directors Report and the financial statements in accordance with applicable lav, and regulations Company law requires the directors to prepare financial statements for each financial year Under that law they have elected to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice) Under company lass the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state ol affairs of the company and of the profit or loss of the company for that period In preparing these financial statements the directors are required to ?select suitable accounting policies and then apply them consistently ?make judgments and estimates that are reasonable and prudent. ?state s? Maher applicable UK Accounting Standards have been followed subject to any material departures disclosed and explained in thc financial statements and ?pi epan. the financial statements on the going concern basis unless it is inappropriate to presume that the compans will continue in business I he directors are responsible for keeping adequate accounting records that are sufficient to show and explain thc company s transactions and disclose %k Ith reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006 They have general responsibility Jou taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities

3.0

Independent auditors' report to the members of Tikit TFB Limited
We have audited the financial statements of Tikit TFB Limited for the year ended 31 December 2010 set out on pages 5 to 16 The financial reporting framework that has been applied in their preparation is applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice) This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 Our audit work has been undertaken so that we might state to the company's members those matters we are required 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 explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view Our responsibility is to audit, and express an opinion on, the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the APB's web-site at www fit ore uk/apb/scope/private cfm. Opinion on financial statements In our opinion the financial statements ?give a true and fair view of the state of the company's affairs as at 31 December 2010 and of its profit for the year then ended, ?have been properly prepared in accordance with UK Generally Accepted Accounting Practice, and ?have been prepared in accordance with the requirements of the Companies Act 2006 Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion ?adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us, or ?the financial statements are not in agreement with the accounting records and returns, or ?certain disclosures of directors' remuneration specified by law are not made, or ?we have not received all the information and explanations we require for our audit

Philip Charles (Senior Statutory Auditor) for and on behalf of KPMG Audit Plc, Statutory Auditor Chartered Accountants St Nicholas House Park Row Nottingham NG I 6FQ

2011-09-26 00:00:00

4.0
TiAlt TFB Limited Directors report and financial statements 2010-12-31 00:00:00

Directors Report 5

Directors' report

The directors present their report together with the audited financial statements for the year ended 31 December 2009.0 Change of name On 16 March 2010 the company changed its name to Tikit TFB Limited Principal activities The principal activity of the company in the period under review was that of the development, marketing, sale and support of quality integrated IT solutions and services to the legal profession Results and dividends The profit and loss account is set out on page 5 and shows the profit for the year Dividends of bill (2008 Ind) were paid during the year Directors The directors who held office throughout the period were as follows S Hill M Garnish D Lumsden Disclosure of information to auditors The directors who held office at the date of approval of this directors' report confirm that, so far as they are each aware, there is no relevant audit information of which the Company's auditors are unaware, and each director has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information Auditors Pursuant to Section 487 of the Companies Act 2006, the auditors will be deemed to be reappointed and KPMG Audit Plc will therefore continue in office

2.0

By order ? he board S Hill Director

12 Gough Square London EC4A 3DW
2010-08-27 00:00:00
Tikit TFB Limited (formerly TFB Group Limited)
2009-12-31 00:00:00

Statement of directors' responsibilities in respect of the directors' report and the financial statements

The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations Company law requires the directors to prepare financial statements for each financial year Under that law they have elected to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice) Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that penod In prepanng these financial statements, the directors are required to ?select suitable accounting policies and then apply them consistently,
?make judgments and estimates that are reasonable and prudent, ?state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, and ?prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006 They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities

3.0

Independent auditors' report to the members of Tikit TFB Limited (formerly TFB Group Limited)
We have audited the financial statements of Tikit TFB Group Limited for the year ended 31 December 2009 set out on pages 5 to 17 The financial reporting framework that has been applied in their preparation is applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice) This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 Our audit work has been undertaken so that we might state to the company's members those matters we are required 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 explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view Our responsibility is to audit the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the APB's web-site at www trc org uk/apb/scope/UKNP. Opinion on financial statements In our opinion the financial statements ?give a true and fair view of the state of the company's affairs as at 31 December 2009 and of its profit for the year then ended, ?have been properly prepared in accordance with UK Generally Accepted Accounting Practice, and ?have been prepared in accordance with the requirements of the Companies Act 2006 Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion ?adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us, or ?the financial statements are not in agreement with the accounting records and returns, or ?certain disclosures of directors' remuneration specified by law are not made, or ?we have not recewe4 all the information and explanations we require for our audit

Philip Charles (Senior Statutory Auditor) for and on behalf of KPMG Audit Plc. Statutory Auditor Chartered Accountants St Nicholas House Park Row Nottingham NG1 6FQ

2010-08-27 00:00:00

Tskit TFB Limited (formerly TFB Group Limited)
2009-12-31 00:00:00

Directors Report 6

Directors' report
The directors present their report together with the audited financial statements for the 15 month period ended 31 December 2008. Change of accounting date During the period the company changed its accounting date to 31 December. Principal activities The principal activity of the group in the period under review was that of the development, marketing, sale and support of quality integrated IT solutions and services to the legal profession. Results and dividends The profit and loss account is set out on page 5 and shows the profit for the year. Dividends of fnil (20074 nil) were paid during the year.
Directors The directors who held office during the period were as follows:
S Hill M Garnish D Lumsden - appointed 2 April 2008 P Giuffredi - appointed 2 April 2008, resigned 3 June 2008 D Dey - resigned 2 April 2008 T Levett - resigned 2 April 2008 Disclosure of information to auditors The directors who held office at the date of approval of this directors' report confirm that, so far as they are each aware, there is no relevant audit information of which the Company's auditors are unaware: and each director has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Auditors Rothman Pantall & Co resigned as auditors during the period and KPMG Audit Plc were appointed in their place. Pursuant to Section 487 of the Companies Act 2006, the auditors will be deemed to be reappointed and KPMG Audit Plc will therefore continue in office.

2.0 By order/of the board

12 Gough Square S Hill London Director EC4A 3DW

2009-10-19 00:00:00 TFI3 Group Limited Directors' report and financial statements 2008-12-31 00:00:00

Statement of directors' responsibilities in respect of the directors' report and the financial statements

The directors are responsible for preparing the directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice). The financial statements are required by law to give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
?select suitable accounting policies and then apply them consistently;
?make judgments and estimates that are reasonable and prudent; ?state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and ?prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that its financial statements comply with the Companies Act 1985. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities.
KPMG Audit Plc St Nicholas House
Nottingham NG1 6F0

Independent auditors' report to the members of TFB Group Limited We have audited the financial statements of TFB Group Limited for the 15 month period ended 31 December 2008 which comprise the profit and loss account, the balance sheet and the related notes. These financial statements have been prepared under 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 auditor's 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 The directors' responsibilities for preparing the financial statements in accordance with applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice) are set out in the statement of directors' responsibilities on page 3. 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 whether in our opinion the information given in the directors' report is consistent with the financial statements. In addition we report to you if, in our opinion, 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 the directors' report and consider the implications for our report if we become aware of any apparent misstatements within it, Basis of audit 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 judgments 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 UK Generally Accepted Accounting Practice, of the state of the company's affairs as at 31 December 2008 and of its profit for the period then ended; ?the financial statements 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.
716-td ye-
Chartered Accountants Registered Auditor

4.0

TFB Group Limited Directors report and financial statements 2008-12-31 00:00:00

Directors Report 7

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 30 SEPTEMBER 2007
The directors present their report with the financial statements of the company and the group for the year ended 2007-09-30 00:00:00
PRINCIPAL ACTIVITY The principal activity of the group in the year under review was that of the development, marketing, sale and support of quality integrated IT solutions and services to the legal profession
REVIEW OF BUSINESS The results for the year and financial position of the company and the group are as shown in the annexed financial statements
The financial performance of the business this year continued to make significant progress showing good growth year on year In addition, good cash generation enabled the company's bank debt from acquisitions to be repaid early, as well as long term debt (loan stock) being reduced The business continues lobe on track for the early repayment of its debt
Sales order intake increased year on year reflecting the success of the company in sourcing new business as well as initiatives such as 'Partner Program' This programme seeks to make a wide range of third party technologies available to legal practices through the integration of 'Partner for Windows' with digital dictation, digital archiving, computer telephony integration packages and many other third party products In particular the company was pleased to announce that it would be the first to offer a version of Microsoft Dynamics CRM to the legal sector in the form of CRM4Legal
Due to strong sales the company continued to invest in its operational team with a graduate recruitment programme now well established
Version 3 of Partner for Windows was released in August 2007 and has been well received by the client base
Operationally the organisation is dedicated to providing excellent customer care, both at the time of installation and follow up customer support The Support Team will be implementing a new call control system in the new financial year in order to further enhance customer service
During the year it was pleasing that the Company's achievements have been recognised by the inclusion m the Law Society's 2007 Software Solution Guide and by TFB receiving the Institute of Legal Cashiers and Administrators Software Users Award for 2007, having come first out of 20 suppliers in the sector
This statement once again affords us the opportunity to thank our staff for their support, commitment and hard work throughout the year With their continuing efforts and the organisation's focus on product development and customer care, the company will remain at the forefront of our chosen market

DIVIDENDS No dividends will be distributed for the year ended 30 September 2007
DIRECTORS The directors during the year under review were
D Dey M Garnish S Hill T Levett
Other changes in directors holding office are as follows
N Morris ? resigned 3 Apnl 2007

Page 2

TFB GROUP LIMITED
REPORT OF THE DIRECTORS FOR THE YEAR ENDED 30 SEPTEMBER 2007

STATEMENT OF DIRECTORS' RESPONSIBILITIES The directors are responsible for preparing the financial statements in accordance with applicable law and regulations
Company law requires the directors to prepare financial statements for each financial year Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) The financial statements are required by law to give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period In preparing these 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 company will continue in business
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and 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 company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS So far as the directors are aware, there is no relevant audit information (as defined by Section 234ZA of the Companies Act 1985) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information
AUDITORS The auditors, Rothman Pantall & Co, will be proposed for re-appointment in accordance with Section 385 of the Companies Act 1985

Page 3 ., REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF TFB GROUP LIMITED
We have audited the financial statements of TFB Group Limited for the year ended 30 September 2007 on pages six to twenty four These financial statements have been prepared under 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 The directors' responsibilities for prepanng the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out on page three
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 whether in our opinion the information given in the Report of the Directors is consistent with the financial statements
In addition, we report to you if, in our opinion, 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 the Report of the Directors and consider the implications for our report if we become aware of any apparent misstatements within it
Basis of audit 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 m 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 irregulanty or error In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements

Page 4 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF TFB GROUP LIMITED

Opinion In our opinion the financial statements give a true and fair view, in accordance with Urnted Kingdom Generally Accepted Accounting Practice, of the state of affairs of the company and the group as at 30 September 2007 and of the loss of the group for the year then ended, - the financial statements have been properly prepared in accordance with the Companies Act 1985, and the information given in the Report of the Directors is consistent with the financial statements

Rothman Pantall & Co Chartered Accountants & Registered Auditors 16 Little Park Farm Road Segensworth West Fareham Hampshire P015 STD
Date gsb-tag

Page 5 TFB GROUP LIMITED

Directors Report 8

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 30 SEPTEMBER 2006
The directors present their report with the financial statements of the company and the group for the year ended 30 September 2006.
PRINCIPAL ACTIVITY The principal activity of the group in the year under review was that of the development, marketing, sale and support of quality integrated IT solutions and services to the legal profession.
REVIEW OF BUSINESS The results for the year and financial position of the company and the group are as shown in the annexed financial statements.
The financial performance of the business this year made significant progress, benefiting from the actions taken in the previous year. Operating profits returned to historic levels and are at the top end of those achieved within the market sector. In addition, good cash generation enabled long term debt to be reduced and the business is on track for early repayment of its debt.
Sales order intake increased year on year reflecting the success of the "Partner Programme". This programme seeks to make a wide range of third party technologies available to legal practices and through the integration of "Partner for Windows" with digital dictation, digital archiving, computer telephony integration packages and many other third party products, there has been a very encouraging take up from within our client base. In addition, several large new business deals have been secured as well as a significant number of smaller firms becoming clients, via the Small Practice Edition initiative.
Legal IT in Eire continues to flourish and TFB New Zealand has continued to lay solid foundations and has now established itself as a key player in its local market having won a significant number of new business orders.
Operationally the organisation is focussed on providing excellent customer care, both at the time of installation and follow up customer support. Development of "Partner for Windows" is on-going, ensuring we have appropriate platforms and robust functionality. Version 2.27 has now been taken up by a majority of the client base.
During the year it was pleasing that the Company's achievements have been recognised by the Law Society's 2006 Software Solution Guide in which TFB topped the independently assessed Client Satisfaction Index.
2006 has seen an unusually high amount of corporate activity within the sector which provides software to legal practices with a number of acquisitions. TFB has taken the view that it is better to remain independent, preferring to provide legal practices with a clear offering.
This statement once again affords us the opportunity to thank our staff for their support, commitment and hard work throughout the year. With their continuing efforts and the organisation's focus on product development and customer care, the company will remain at the forefront of our chosen market.
DIVIDENDS No dividends will be distributed for the year ended 30 September 2006.
DIRECTORS The directors during the year under review were:
D Dey M Garnish S Hill T Levett N Morris

Page 2

TFB GROUP LIMITED
REPORT OF THE DIRECTORS FOR THE YEAR ENDED 30 SEPTEMBER 2006
The beneficial interests of the directors holding office on 30 September 2006 in the issued share capital of the company were as follows: Sheet1 STATEMENT OF DIRECTORS' RESPONSIBILITIES The directors are responsible for preparing the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these 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 company will continue in business.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and 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 company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS So far as the directors are aware, there is no relevant audit information (as defined by Section 234ZA of the Companies Act 1985) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.
AUDITORS The auditors, Rothman Pantall & Co, will be proposed for re-appointment in accordance with Section 385 of the Companies Act 1985.

ON BEHALF OF THE BOARD:

N Morris - Director
Date: 5t4..1hCLA-2-?1 72.31"

Page 3

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF TFB GROUP LIMITED
We have audited the financial statements of TFB Group Limited for the year ended 30 September 2006 on pages six to twenty three. These financial statements have been prepared under 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 The directors' responsibilities for preparing the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out on page three.
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 whether in our opinion the information given in the Report of the Directors is consistent with the financial statements.
In addition, we report to you if, in our opinion, 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 the Report of the Directors and consider the implications for our report if we become aware of any apparent misstatements within it.
Basis of audit 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 :valuated the overall adequacy of the presentation of information in the financial statements.

Page 4 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF TFB GROUP LIMITED

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 affairs of the company and the group as at 30 September 2006 and of the loss of the group for the year then ended; the fmancial statements have been properly prepared in accordance with the Companies Act 1985; and the information given in the Report of the Directors is consistent with the financial statements.
Kok Pcti-zAkC-
Rothman Pantall & Co Chartered Accountants & Registered Auditors 16 Little Park Farm Road Segensworth West Fareham Hampshire P015 5TD
Date: i

Page 5 TFB GROUP LIMITED

Directors Report 9

Directors' report The directors present their annual report and the audited financial statements for the year ended 30 September 2005. Principal activities The principal activity of the company is the development, marketing, sale and implementation of quality computer solutions (both software and hardware) to legal practices. The company also provides maintenance and support services to its clients on these systems.
Business activities In common with many others in the sector, as well as the legal profession itself, 2005 proved a challenging year for TFB but the company has taken the measures necessary and is well on course to achieve the levels of profit & cash generation recorded in previous years. The results for 2005 include the costs of reassigning the long term lease on the Sunbury property.
The acquisitions made in 2004 performed well, the development of the business in New Zealand continued satisfactorily and Legal IT maintained its strong performance in Eire. In addition, the business partnerships established in 2004 have started to flourish and our clients now have access to a wide range of third party products all of which are fully integrated into TFB's software, Partner for Windows. These include digital dictation, computer telephony integration & digital archiving.
During year the company released v2.27 of its market leading Partner for Windows practice management system following 18 months of development. Initial uptake was very encouraging and 2005/06 has seen significant numbers of clients upgrading with associated services.
As stated in previous years, the company continues to invest in its product development and customer care programmes, to widen its offering to existing clients and to increase its market penetration. Trading in the first half of 2005/06 has returned to historic levels of profitability and cash generation and the directors remain confident that the financial performance of the core business will remain strong for the foreseeable future. The board also continues to assess opportunities for further acquisitions and partnerships.
This statement once again affords us the opportunity to thank our staff for their support, commitment and hard work throughout the year. We are confident that with their continuing commitment to quality solutions and customer care, along with a clear development strategy, the company will continue to be at the forefront of its chosen market.
Proposed dividend The directors do not recommend the payment of a dividend (2004: Mil).
Research and development The company has an active programme of research and development relating both to new software products and markets, and to the improvement of existing products and methods.

1.0 TFB Group Limited Directors' report and consolidated financial statements 2005-09-30 00:00:00

Directors' report (continued)
Directors and directors' interests
The directors who held office during the period were as follows:
S J Hill
L L Hall (resigned 31 May 2005)
MR Garnish
D Dey
N A Morris
T Levert The directors who held office at the end of the financial period had the following interests in the ordinary shares of the company according to the register of directors' interests:
Class of share Interest Interest at ?ordinary at end of start of period period or date of appointment
S Hill 10p ordinary 69,365 69,365 D Dey 10p ordinary 13,182 13,182 N Morris 10p ordinary 16,470 16,470 M Garnish 10p ordinary 42,618 42,618

By order of the board

C-N
N Morris Director

Registered Office 1/2 Kingdom Close Segensworth East Farnham Hampshire P015 5TJ

2.0 TFB Group Limited Directors' report and consolidated financial statements 30 September 2005 '

Statement of directors' responsibilities

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 for that year. 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 are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 1985. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities.

3.0 TFB Group Limited Directors' report and consolidated financial statements 2005-09-30 00:00:00

Arlington Business Park Theale Reading RG7 4SD
Independent auditors' report to the members of TFB Group Limited

We have audited the financial statements on pages 5 to 27. 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 auditor's 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 The directors are responsible for preparing the directors' report and, as described on page 3, the financial statements in accordance with applicable United Kingdom law and accounting standards. Our responsibilities, as independent auditors, are established in the United Kingdom by statute, the Auditing Practices Board and by our profession's ethical guidance. 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 transactions with the group is not disclosed.
Basis of audit opinion We conducted our audit in accordance with Auditing Standards 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 group'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 of the state of affairs of the company and the group as at 30 September 2005 and of the loss of the group for the year then ended and have been properly prepared in accordance with the Companies Act 1985. kle* N/040? KPMG LLP Chartered Accountants Registered Auditor

4.0 TFB Group Limited Directors' report and consolidated financial statements 2005-09-30 00:00:00

Directors Report 10

Directors' report Statement of directors' responsibilities 3 Independent auditors' report to the members of TFB Group Limited 4

Directors Report 11

Directors' report The directors present their annual report and the audited financial statements for the year ended 30 September 2003. Principal activities The principal activity of the company is the development, marketing and sale of quality computer solutions and systems and the provision of maintenance, hire and support services.
Business review
The company's position as a leading supplier of quality solutions to the legal profession was further enhanced during the year to September 2003 and reflected in a very satisfactory financial performance. Operating profits exceeded last year's record levels and cash generation was particularly pleasing. This continuing strong financial performance enables the company to invest in its product development and customer care programmes, to widen its offering to existing clients and to increase its market penetration. During the year the company entered into a partnership with CPL Bennett Brookes to allow them to distribute Partner for Windows to their client base. This introduces Partner for Windows to a new area of the legal market. Just after the start of the new financial year the company acquired Phibeta Business Systems Ltd, a leading supplier of systems in Northern Ireland. The company sees this as an opportunity to increase its geographic coverage and will complement the successful partnership arrangement already in existence with Legal IT in Eire. The directors are confident that the financial performance of the core business will remain strong for the foreseeable future and this will be supplemented by further acquisitions and partnerships both in the UK & further afield.
During the year the company welcomed Nigel Morris to the board as Finance Director & Company Secretary. This statement once again affords us the opportunity to thank our staff for their support, commitment and hard work throughout the year. We are confident that with their continuing commitment to quality solutions and customer care and a clear development strategy, the company will continue to be at the forefront of its chosen market
Proposed dividend The directors do not recommend the payment of a dividend (2002: MO.
Research and development The company has an active programme of research and development relating both to new software products and markets, and to the improvement of existing products and methods.
Directors and directors' interests The directors who held office during the period were as follows:
S .1 Hill L L Hall
M R Garnish M Wright D Dey
N A Morris (appointed 30 May 2003) TFB Group Limited Directors' report and consolidated financial statements Year ended 30 September 2003

Directors' report (continued)
Directors and directors' interests (continued) The directors who held office at the end of the financial period had the following interests in the ordinary shares of the company according to the register of directors' interests:
Class of share Interest Interest at ordinary at end of start of period period or date

S Hill 10p ordinary 69,365 65,000 L Hall 10p ordinary 69,365 65,000 M Garnish 10p ordinary 42,618 35,000 S Krefta 10p ordinary - 35,000 D Dey 10p ordinary 13,182 11,000 N Morris 10p ordinary 16,470 16,470

Auditors In accordance with Section 384 of the Companies Act, a resolution for the re-appointment of KPMG LLP as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
By order of the board

N Morris Director

Registered Office 1/2 Kingdom Close Segensworth East Fareham Hampshire P015 5TJ

2.0 TFIS Group Limited Directors' report and consolidated financial statements Year ended 30 September 2003

Statement of directors' responsibilities

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 for that year. 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 are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 1985. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities.

3.0 TFB Group Limited Directors' report and consolidated financial statements Year ended 30 September 2003

Arlington Business Park Theele Reading RG7 4SD
Independent auditors' report to the members of TFB Group Limited

We have audited the financial statements on pages 5 to 26. 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 auditor's 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 The directors are responsible for preparing the directors' report and, as described on page 3, the financial statements in accordance with applicable United Kingdom law and accounting standards. Our responsibilities, as independent auditors, are established in the United Kingdom by statute, the Auditing Practices Board and by our profession's ethical guidance. 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 transactions with the group is not disclosed.
Basis of audit opinion We conducted our audit in accordance with Auditing Standards 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 group'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 of the state of affairs of the company and the group as at 30 September 2003 and of the profit of the group for the year then ended and have been properly prepared in accordance with the Companies Act 1985.
( KPIVIG LLP Chartered Accountants Registered Auditor

4.0 TFB Group Limited Directors' report and consolidated financial statements Year ended 30 September 2003

Directors Report 12

Directors' report
The directors present their annual report and the audited financial statements for the year ended 30 September 2002. Principal activities The principal activity of the company is the development, marketing and sale of quality computer solutions and systems and the provision of maintenance and support services. Business review
The company's position as a leading supplier of quality solutions to the legal profession was confirmed during the year to September 2002 as the acquisitions made in the previous year started to make a significant contribution to the trading performance of the business. Having absorbed the costs associated with the acquisitions in the previous trading period, the benefits from the synergies of the combined businesses were realised. These benefits will continue to be visible in both operating profit and operating cash flows as the company continues to grow. The company has built strong foundations in the last two years and the directors remain confident that the future prospects for the company remain excellent. This statement once again affords us the opportunity to thank our staff for their support, commitment and hard work throughout the year. We are confident that with their continuing commitment to quality solutions, customer care and a clear development strategy the company will continue to be at the forefront of its chosen market. Proposed dividend The directors do not recommend the payment of a dividend. Research and development The company has an active programme of research and development relating both to new software products and markets, and to the improvement of existing products and methods. Directors and directors' interests The directors who held office during the period were as follows: S 3 Hill L L Hall MR Garnish M Wright 13 Dey S Krefta (Resigned 21 December 2001) M Wright was an employee of Northern Venture Managers Limited who provide venture capital funding to the group, until 5 February 2002. TFB Group Limited Directors' report and consolidated financial statements 2002-09-30 00:00:00

Directors' report (continued) Directors and directors' interests (continued) The directors who held office at the end of the financial period had the following interests the ordinary shares of the company according to the register of directors' interests:

S Hill L Hall M Garnish S Krefta D Dey Class of share Interest Interest at ordinary at end of start of period period or date

10p ordinary 65,000 65,000 10p ordinary 65,000 65,000 10p ordinary 35,000 35,000 10p ordinary 35,000 35,000 10p ordinary 11,000 11,000 Auditors KPMG were appointed auditors during the financial period. However, since that date their business was transferred to a limited liability partnership, KPMG LLP. Accordingly KPMG resigned as auditors on 10 June 2002 and the directors there upon appointed KPMG LLP to fill the vacancy arising. A resolution for the re-appointment of KPMG LLP as auditors of the company is to be proposed at the forthcoming Annual General Meeting. By order of the board

S Hill Director

2.0

I' 1.0 I I I I I I I I I I I

$ I I I I I I
TFB Group Limited Directors' report and consolidated financial statements 2002-09-30 00:00:00

Statement of directors' responsibilities

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 for that year. 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 are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 1985. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities.

3.0 TFB Group Limited Directors' report and consolidated financial statements 2002-09-30 00:00:00

Arlington Business Pak Theele Reading RG7 4SD
Independent auditors' report to the members of TFB Group Limited

We have audited the financial statements on pages 5 to 26. 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 auditor's 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 The directors are responsible for preparing the directors' report and, as described on page 3, the financial statements in accordance with applicable United Kingdom law and accounting standards. Our responsibilities, as independent auditors, are established in the United Kingdom by statute, the Auditing Practices Board and by our profession's ethical guidance. 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 fmancial 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 transactions with the group is not disclosed. Basis of audit opinion We conducted our audit in accordance with Auditing Standards 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 group'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 of the state of affairs of the company and the group as at 30 September 2002 and of the loss of the group for the year then ended and have been properly prepared in accordance with the Companies Act 1985.

le_efri 64 LE KPMG LLP Chartered Accountants Registered Auditor

4.0
I

1.0
TFB Group Limited Directors' report and consolidated financial statements 2002-09-30 00:00:00

Directors Report 13

Directors' report
The directors present their annual report and the audited financial statements for the year ended 30 September 2001. Principal activities The principal activity of the company is the development, marketing and sale of quality computer solutions and systems and the provision of maintenance and support services. Business review During the reporting period the company made two significant acquisitions which further consolidated the company's position as a leading supplier of quality solutions to the legal profession. During April 2001 the company acquired CB Systems Ltd one of the top three suppliers to the Scottish legal profession. On May 1st the company then acquired Avenue Legal Systems Ltd one of the top five suppliers in England and Wales. The reported loss for the year reflects the significant costs associated with the acquisitions. As would be expected the benefits of the combined entities have taken longer to realise but the directors are greatly encouraged by the significant progress made in the first 12 months since the acquisitions. They are confident that substantial benefits will be achieved in the medium term.
This statement therefore affords us the opportunity to thank our staff for their support, commitment and hard work throughout an exceptionally busy year. We are confident that with our continued commitment to quality solutions, customer care and a clear development strategy we will continue to be at the forefront of our chosen market.
Proposed dividend The directors do not recommend the payment of a dividend.
Research and development The company has an active programme of research and development relating both to new software products and markets, and to the improvement of existing products and methods. Directors and directors' interests The directors who held office during the period were as follows: S J Hill
L L Hall M R. Garnish
S Krefta (Resigned 21 December 2001) M Wright
D Dey M Wright was an employee of Northern Venture Managers Limited who provide venture capital funding to the group, until 5 February 2002.

1.0

1.0

TFB Group Limited Directors' report and consolidated financial statements 2001-09-30 00:00:00

Directors' report (continued) Directors and directors' interests (continued) The directors who held office at the end of the financial period had the following interests in the ordinary shares of the company according to the register of directors' interests:
Class of share Interest Interest at ordinary at end of start of period or date period or date

S Hill L Hall M Garnish S Krefta D Dey 10p ordinary
10p ordinary 10p ordinary 10p ordinary 65000.0 65000.0 35000.0 35000.0 11000.0 65000.0 65000.0 35000.0 35000.0 11000.0 Auditors KPMG were appointed auditors during the financial period. However, since that date their business was transferred to a limited liability partnership, KPMG LLP. Accordingly KPMG resigned as auditors on 10 June 2002 and the directors there upon appointed KPMG LLP to fill the vacancy arising. A resolution for the re-appointment of KPMG LLP as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
By order of the board

S Hill Director

2.0 TFB Group Limited Directors' report and consolidated financial statements 2001-09-30 00:00:00

Statement of directors' responsibilities

Company law requires the directors to prepare financial statements for each ftnancial year which give a true and fair view of the state of affairs of the company and group and of the profit or loss for that year. 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 are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 1985. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities.

3.0

U

;0;Ari Arlington Business Park Theele Reading RG7 4SD
Independent auditors' report to the members of TFB Group Limited

We have audited the fmancial statements on pages 5 to 27. 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 auditor's 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 The directors are responsible for preparing the directors' report and, as described on page 3, the financial statements in accordance with applicable United Kingdom law and accounting standards. Our responsibilities, as independent auditors, are established in the United Kingdom by statute, the Auditing Practices Board and by our profession's ethical guidance. 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 transactions with the group is not disclosed. Basis of audit opinion We conducted our audit in accordance with Auditing Standards 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 group'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 of the state of affairs of the company and the group as at 30 September 2001 and of the loss of the group for the year then ended and have been properly prepared in accordance with the Companies Act 1985. r
KPMG LLP Chartered Accountants Registered Auditor

4.0 TFB Group Limited Directors' report and consolidated financial statements 2001-09-30 00:00:00

Directors Report 14

Directors' report
The directors present their annual report and the audited financial statements for the year ended 30 September 2000. Principal activities
The principal activity of the company is the development, marketing and sale of quality computer solutions and systems and the provision of maintenance, hire and support services.
Business review In what was a difficult year for the computer industry the company continued to consolidate its position as a leading supplier of software and services to the legal profession. As part of the board's strategy for 2000, the company disengaged from supplying hardware to corporate and non-legal end users. Therefore, whilst the company's turnover has reduced the margins are increasing, thus positioning the company to lead the legal profession into the new millennium with its successful Partner for Windows application and a clear mission to dominate the legal sector. Whilst the company incurred considerable exceptional costs in the reporting period due to the closure of the General Systems Division it is now focused on its core activity with all the consummate benefits that brings to our clients and staff. We are also pleased to report that due to an extensive development programme and investment in key skills, we were able to introduce DeskNet, a browser based version of the TFB Partner for Windows suite for lawyers and corporates. This highly sophisticated yet easy to use application allows information from the Partner for Windows database to be displayed in a browser environment thus creating the opportunity for firms to provide users with a fully integrated intranet and reliable remote access. The company will continue to invest in research and development with many users now actively taking part in the process via our interactive support site p4w.co.uk. As a result the Partner for Windows suite of legal software will continue to be the leading application for the profession. For the first time in the company's history a director was appointed to lead the Customer Care Division and clients are already experiencing the many enhancements to our services that such an appointment brings. Internet call logging and professional project management are examples of the level of importance the company places in this key area of the business. During the reporting period we continued to acquire a considerable number of new clients both in private practice and legal corporate departments. The average order size has also continued increasing at a significant rate as the legal profession fully embraces the use of front office technology and e-commerce. This statement therefore affords us the opportunity to thank our staff for their support, commitment and hard work throughout an exceptionally busy year. We are confident that with our commitment to quality solutions and a clear development strategy for the new millennium we will continue to be at the forefront of our chosen markets.
Proposed dividend
The directors do not recommend the payment of a dividend. Research and development The company has an active programme of research and development relating both to new software products and markets, and to the improvement of existing products and methods.

3596348 / Year ended 30 September 2000 1

TFB Group Limited Directors' report and financial statements

Directors' report (continued)

Directors and directors' interests
The directors who held office during the period were as follows:
SiHill
L L Hall
R Garnish
S Krefta
M Wright
D Dey

The directors who held office at the end of the financial period had the following interests in the ordinary shares of the company according to the register of directors' interests:
Class of share Interest Interest at ordinary at end of start of period period or date

S Hill L Hall M Garnish S Krefta D Dry

Auditors 10p ordinary
10p ordinary 10p ordinary 10p ordinary

65000.0 65.0 35000.0 35.0 11.0

65.0 65.0 35.0 35.0

In accordance with Section 384 of the Companies Act 1985, a resolution for the re-appointment of KPMG as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
By order of the board

S Krefta Secretary

3596348 / Year ended 30 September 2000 2

TFB Group Limited Directors" report and financial statements

Statement of directors' responsibilities

Company law requires the directors to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the company and of the profit or loss 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 company will continue in business. The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 1985. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities.

3596348 / Year ended 30 September 2000 3 Arlington Business Park Thesis Reading R07 4SD

Report of the auditors to the members of TFB Group Limited
We have audited the financial statements on pages 5 to 21. Respective responsibilities of directors and auditors As described on page 3 the company's directors are responsible for the preparation of financial statements. It is our responsibility to form an independent opinion, based on our audit, on those statements and to report our opinion to you.
Basis of opinion We conducted our audit in accordance with Auditing Standards 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 of the state of the company's affairs as at 30 September 2000 and of its loss for the year then ended and have been properly prepared in accordance with the Companies Act 1985.

kei) t-lC- 11 k
KPMG Chartered Accountants Registered Auditors

3596348 / Year ended 30 September 2000 4 TFB Group Limited Directors' report and financial statements

Directors Report 15

Directors' report

The directors present their annual report and the audited financial statements for the 15 month period to 30 September 1999.
The company was incorporated on 10 July 1998. From incorporation until 4 May 1999 the company was dormant, at which time the entire share capital of TFB Holdings Limited was acquired and the funds and assets of that company were hived up. The company commenced trading on this date. Principal activities The principal activity of the company is the development, marketing and sale of quality computer solutions and systems and the provision of maintenance, hire and support services.
Business review A Management Buyout by former directors and senior management of TFB Holdings Limited took place on 4 May 1999. During the five operational months following the Management Buyout the Company achieved an excellent sales performance. As a result the Partner for Windows suite of legal software established itself as the leading application to the profession. We are also pleased to report that due to an extensive development programme and investment in key skills, we were able to introduce Web Server, an intemet application for Lawyers and Corporates. This highly sophisticated web application allows information from firm's systems to be published on the web thus allowing client access. A number of significant sales have already been made with major institutions looking forward to accessing data via the web. The year has also seen the introduction of a continuous speech module for our workflow solution thus allowing not only the input of speech to text but also the control of many of the applications features via voice commands. The Company will continue to invest in research and development and is looking forward to introducing a 'thin client' and ASP version of the Partner for Windows suite during the forthcoming year. During the reporting period we also acquired the highest number of new clients in the organisation's history with the average order size increasing at a significant rate. This statement therefore affords us the opportunity to thank our staff for their support, commitment and hard work throughout an exceptionally busy year. We are confident that with our commitment to quality solutions and a clear development strategy for the new millennium we will continue to be at the forefront of our chosen markets.
Proposed dividend
The directors do not recommend the payment of a dividend. Year 2000 The directors have considered the risks and uncertainties associated with the Year 2000 problem. The company has implemented a plan to address these issues and its relationships with customers, suppliers and other relevant parties. The costs incurred to date have been written off to the profit and loss account and these and fitture costs are not expected to be significant. The company has not experienced any problems as a result of Year 2000 issues on computer systems, applications or products and do not believe results and operations have been adversely affected. The directors' do not know of any inability of third parties to manage their Year 2000 problems which may adversely affect the company nor of any potential liability to third parties as a result of Year 2000 failures. Research and development The company has an active programme of research and development relating both to new software products and markets, and to the improvement of existing products and methods.

3596348 / 15 months ending 30 September 1999

TFB Group Limited Directors' report and financial statements 15 months ending 30 September 1999

1 Directors' report (continued)
Directors and directors' interests
The directors who held office during the period were as follows:
Oval Nominees Limited
Ova1sec Limited
S J Hill L L Hall MR Garnish S ICrefta M Wright D Dey (appointed 2 July 1998; resigned 23 July 1998)
(appointed 2 July 1998; resigned 23 July 1998)
(appointed 23 July 1998)
(appointed 23 July 1998)
(appointed 27 April 1999)
(appointed 27 April 1999)
(appointed 4 May 1999)
(appointed 19 August 1999)

The directors who held office at the end of the financial period had the following interests in the ordinary shares of the company according to the register of directors' interests:

S Hill L Hall M Garnish S Krefta Class of share

10p ordinary
10p ordinary 10p ordinary Interest at end of period
65000.0 65000.0 35000.0 35000.0 Interest at start of period or date of appointment
65000.0 65000.0 35000.0 35000.0 No directors had any beneficial interest in the shares of the company at the beginning of the period.
Auditors
KPMG were appointed as the auditors of the company during this period by the directors. In accordance with Section 384 of the Companies Act 1985, a resolution for the re-appointment of KPMG as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
By order of the board

S Krefta Secretary

3596348 / 15 months ending 30 September 1999 2

TFB Group Limited Directors' report and financial statements

Statement of directors' responsibilities

Company law requires the directors to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the company and of the profit or loss 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 company will continue in business. The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 1985. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities.

3596348 / 15 months ending 30 September 1999 3

?Wi6A?

Arlington Business Park
Reading RG7 450

Report of the auditors to the members of TFB Group Limited
We have audited the financial statements on pages 5 to 22. Respective responsibilities of directors and auditors As described on page 3 the company's directors are responsible for the preparation of financial statements. It is our responsibility to form an independent opinion, based on our audit, on those statements and to report our opinion to you. Basis of opinion We conducted our audit in accordance with Auditing Standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the the directors in the preparation of the financial statements, and of whether the accounting policies are financial statements. It also includes an assessment of the significant estimates and judgements made by 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 of the state of the company's affairs as at 30 September 1999 and of its profit for the 15 month period then ended and have been properly prepared in accordance with the Companies Act 1985.

11, hva 1400 Chartered Accountants Registered Auditors

3596348 / 15 months ending 30 September 1999 4

1.0 TFB Group Limited Directors' report and financial statements