Directors' Remuneration Report

Introduction

As an ‘AIM’ listed company, Chelford Group plc are not required to comply with all of The Listing Rules. However, the Company has chosen to disclose the following information on directors’ remuneration.

Legislation requires companies to put the Remuneration Report to the vote at their annual general meeting.

Remuneration Committee

The committee consists of S R Lord (Chair), J W Birkett and T C Lewis. The committee advised the Board on the setting of directors’ remuneration and uses comparative remuneration surveys for companies of a similar size to arrive at its recommendations.

Remuneration Policy

Executive directors’ remuneration packages are contained within their service agreements with the Company. They are designed to attract and retain directors capable of managing the Company’s growth plans. The remuneration of the non-executive directors is determined by the Board after comparable research.

The Components of Remuneration

Basic Salary

The salary for each executive director is based on both individual performance and on information from comparative surveys. The annual salary review takes place in April.

Long Term Incentives

There are currently no long term incentive schemes operated by the Company other than the EMI scheme.

The directors’ remuneration is pensionable.

Directors’ Service Agreements

It is the Company’s policy that all executive directors have contracts with an indefinite term providing a maximum notice.

Non-Executive Directors

The non-executive directors have Service Contracts. The appointments of J W Birkett and S R Lord are for an indefinite term, with maximum notice periods. Their remuneration is determined by the Board and based on surveys of fees paid to non-executives of similar companies.

Directors' Shareholding

	Ordinary shares of £1 as at 12 July 2007	Ordinary of £1 as at 30 June 2006
T C Lewis	774,171 10.84%	774,171
S R Lord	763,375 10.69%	753,375
J W Birkett	578,725 8.10%	568,725

None of the directors who held office at the end of the financial year had any disclosable interest in the shares of Group companies.