EuropE
London
Cottons Centre 
Hays Lane
London SE1 2QP 
Tel +44 (0)20 7940 0490 
Fax +44 (0)20 7940 0499 
uSA
CHiCago 
175 West Jackson Boulevard 
Suite #2260 
Chicago, iL 60604 
Tel +1 312 922 7600 
Fax +1 312 922 7625 
nEW York
80 Broad Street
5th Floor, Suite #507
new York, nY 10004
Tel +1 212 837 7843
Fax +1 212 837 7792
ASiA pAcific
SingaPorE 
137 Telok a yer Street
#07-07
Singapore 068602
Tel +65 6216 0452
Fax +65 6536 4167
TokYo 
2nd Floor, kakigara-Cho Bldg
10-7, nihon-bashi kakigara-Cho 1-chome
Chuo-ku
Tokyo 103-0014 
Tel +81 (0) 3 3668 9372
Fax +81 (0) 3 2664 7594 
SYdnEY 
Level 6
Underwood House
37 Pitt Street
Sydney nSW 2000
Tel +61 (0) 2 8987 9600
Fax +61 (0) 2 8252 7640
Hong kong 
Unit 2004, kinwick Centre 
no 32 Hollywood road Central
Hong kong Sar
Tel +852 3180 9512 
Fax +852 3180 9399
global growth
Solid returns
annual report & accounts 2008
patsystems plc  annual report & accounts 2008 Patsystems plc i annual report & accounts 2008
Patsystems was established in 1994 
as one of the original independent 
software vendors to provide a 
complete suite of modular products  
to support the electronic trading  
of futures and options.
Today we enable over 10,000 traders 
to transact in the global derivatives 
market every month with extensive 
market connectivity spanning from 
Latin a merica to Japan. 
ThE comp Any
01 Business Profile
02  Who We are
04  What We do
06  Where We operate
highlighTS
08 Highlights
ThE yEAr in rEviEw 10 Chairman’s Statement
14 Chief Executive’s report
20 Finance director’s review
govErnAncE
26 our Board
28 directors’ report
31 Statement of Corporate 
governance
33 r eport of the Board on 
directors’ r emuneration and  
on group remuneration Policy
finAnciAl STATEmEnTS
37 independent auditors’ report
39 Consolidated income 
Statement
40 Consolidated Balance Sheet
41  Consolidated Cash Flow 
Statement
42 notes to the Financial 
Statements
75 independent auditors’ report
76 Company Balance Sheet 
77 notes to the Financial 
Statements
84 directors and advisors Hig Hlig Hts tH e year in r eview g Overnan Ce Finan Cial state Ments
tvv
1
HigHligHts t He COMpany tHe year in review gOvernanCe FinanCial stateMents
patsystems plc i annual report & accounts 2008
Business profile
in 2008, 87% of patsystems annual turnover was recurring rising from 86% 
in 2007 and 84% in 2006. t he predictability of our revenue has allowed the 
business to invest significant sums in new product development. in 2008, r isk 
Monitor, our low latency pre-trade risk management tool was launched to 
complement r isk informer, our post-trade risk offering.
revenue
£3.7m 0.363p £19.6m
adjusted pre-tax profit proposed full-year dividend tvv
Who We Are
2 patsystems plc i annual report & accounts 2008
oUr FoUnDation 
patsystems was founded in 1994 
by a team of derivatives traders 
and it experts who recognised 
that the derivatives industry 
was moving towards electronic 
trading and built systems that 
would lead the way as traders 
migrated away from open  
outcry trading.
since then, patsystems has 
continued to innovate and 
lead the market in electronic 
trading of derivatives by 
developing a range of scalable 
and versatile trading modules, 
risk management systems and 
exchange systems. 
proDUCt History 
patsystems’ first trading 
front-end, J-trader, is now 
a well recognised name in 
the derivatives industry with 
extensive global distribution.  
to complement J-trader,  
pro-mark and iQ-trader have 
been launched in recent years 
to provide an advanced and 
feature-rich suite of trading 
tools. a longside these well-
established front-ends, patsystems 
offers both proprietary and FiX 
apis which are currently used  
by thousands of developers. 
o ur trading solutions are 
complemented by our 
extensive network of exchange 
connectivity. patsystems offers 
direct market access to over 
50 exchanges along with 
indirect access through our 
unique Xlink network. Xlink 
allows patsystems’ customers to 
leverage one another’s exchange 
memberships. in 2008 patsystems 
launched an extension to 
our capability to support the 
broadest possible range of 
products and trading styles with 
an extension to our existing 
synthetic o rder management 
system (syoms ). t his extension 
is called algoserver and enables 
customers to develop customised 
algorithms and trade non-
exchange supported order types. 
in addition to trading platforms, 
patsystems offers an exchange 
solution that includes matching, 
clearing and settlement. t he 
exchange system is built around 
the patsystems matching Engine 
(pmE). t he pmE was acquired 
from Exchange network systems 
in 2000 and supports a number of 
exchanges across asia including 
the tokyo grain Exchange, Kansai 
Commodities Exchange, the 
agricultural Futures Exchange 
of thailand and the national 
Commodity Exchange l imited  
in pakistan.
in august of 2005, patsystems 
acquired the entire issued share 
capital of tamesis l imited. 
t he acquisition extended our 
trading and exchange offerings 
to include risk solutions with 
the r isk informer product. r isk 
informer enables the real-time 
quantitative analysis of risk 
across multiple asset classes.  
in 2008, patsystems developed  
a multi-asset class, pre-trade  
risk offering, risk monitor.
CorporatE History 
t he company floated on  
the london stock Exchange 
in march 2000 and transferred 
to the alternative investment 
market (aim) in February 
2003. patsystems plc is an aim 
listed company incorporated in 
England and w ales (registered 
under company number 
4498002) with its registered 
office at Cotton Centre,  
Hays lane, london, sE1 2Qp .
patsystems enables  
over 10,000 traders  
to transact in the  
global derivatives  
market every month. tvv
3 patsystems plc i annual report & accounts 2008
Hig Hlig Hts t HE Company tHE y Ear in rE vi Ew govE rnan CE Finan Cial stat EmEnts
identify potential 
acquisition targets 
where our global sales 
and support capability, 
combined with our 
strong working capital 
and cash generation, 
can leverage long-term 
growth and value.
Consolidate our position 
within our existing 
customer base and 
leverage the opportunity 
from their potential 
rationalisation of their 
technology platforms  
to extend our position  
as their key supplier.
Explore opportunities  
for further expansion  
in south america, 
greater China and  
the indonesia & 
singapore region.
generate new revenue 
streams from our 
range of new product 
offerings: global 
trading, risk monitor 
and algoserver.
stratEgy mission BUsinEss oBJECtivEs
to be the external partner of choice for investment banks and futures clearing merchants for  
the provision of electronic trading, trade matching and risk management technology.
identifying complementary 
products for partnership 
or acquisition.
increasing revenue 
contribution from new 
products to existing and 
new customers.
Extending patsystems’ 
coverage beyond the 
geographical centres  
we currently serve.
Continuing to develop and 
deploy new and existing 
technology investments 
both as components and 
single solutions.
increasing revenue 
contribution from new 
products to existing and 
new customers.
Extending patsystems’ 
coverage beyond the 
geographical centres  
we currently serve.
Continuing to develop and 
deploy new and existing 
technology investments 
both as components and 
single solutions.
CAse study
tHE CliEnt
newedge
tHE CHallEngE
manage risk and set position 
limits across multiple vendor 
platforms.
tHE solUtion
a platform-independent  
system that could aggregate 
trades across the entire 
business portfolio in real-time 
with the ability to monitor 
limits and trigger alerts. 
tHE rEsUlt
with the risk informer 
installation in Chicago, 
newedge has the capability 
to risk-manage its clients 
worldwide on a real-time, 
post-trade basis. t his enables 
the firm to expand by offering 
clearing services to a wider 
range of clients.
CasE stUDy
revenue
£3.7m 0.363p £19.6m
adjusted pre-tax profit proposed full-year dividend tvv
4 patsystems plc i annual report & accounts 2008
What We do
we deliver tailored solutions, 
built from modular components, 
to enhance derivatives trading 
performance and trade 
processing. o ur solutions range 
from plug-and-play modules  
that address specific issues,  
to complete high-performance 
trading systems with extensive 
global access to derivatives 
exchanges and clearers.
w e work in partnership with 
our customers to deliver robust 
systems that align with their 
business strategies – and have 
done since our foundation in 
1994. l eading banks, trading 
houses, hedge funds and 
professional traders in the 
futures industry rely on us to 
exploit the benefits of electronic 
trading in derivatives, FX,  
energy and other asset classes.
tECH nology p ro DUCt 
o F t HE yE ar 
pro-mark named 
“technology product of 
the year” at the Futures 
& o ptions w eekly (Fow ) 
2008 awards ceremony.
tHE CliEnt
Banca imi
tHE CHallEngE
Banca imi was faced with 
customers requesting access  
to a growing list of exchanges 
around the world. w hile 
providing an expanded service 
is crucial to retaining these 
customers, purchasing new 
exchange memberships is not 
always an economical way to 
keep pace with demand.
tHE solUtion
Xlink, a powerful software 
tool that enables multiple 
patsystems users to interconnect 
and utilize each other’s 
exchange memberships.
tHE rEsUlt
Banca imi customers can  
access the markets they want 
to trade and Banca imi has a 
cost-effective way to broaden 
their service offerings.
CasE stUDy tvv
5 patsystems plc i annual report & accounts 2008
Hig Hlig Hts t HE Company tHE y Ear in rE vi Ew govE rnan CE Finan Cial stat EmEnts
traDing solUtions 
Front-end systems and FiX 
connectivity to enable trading 
across all the major futures 
exchanges and liquidity pools.
Customers: 
45 customers globally •	
Customers include some of the •	
largest global futures clearing 
merchants such as morgan 
stanley, Citigroup, newedge, 
and mF global
risK solUtions
platform independent pre- and 
post-trade risk management across 
all asset classes in real-time. 
Customers: 
9 customers globally •	
newedge and mF global  •	
with global licenses 
EXCHangE solUtions
End-to-end exchange system 
automates all steps in the trade 
cycle, from front to back office.
Customers: 
tokyo grain Exchange, •	
agricultural Futures Exchange 
of t hailand, the national 
Commodity Exchange l imited 
in pakistan, and the Kansai 
Commodities Exchange
oUr solUtions
proDUCts
pro-mark
J-trader
iQ-trader
algoserver
trading api
proDUCts
risk informer
risk monitor
proDUCts
patsystems matching Engine
J-Clear
revenue
£3.7m 0.363p £19.6m
adjusted pre-tax profit proposed full-year dividend patsystems plc i annual report & accounts 2008
tvv
6
a s patsystems strives to be the 
partner of choice for investment 
banks and futures clearing 
merchants around the globe, 
we continue to develop cutting 
edge technology and expand 
our global reach. through our 
Xlink network and dedicated 
exchange gateways, patsystems 
covers all major global markets 
and liquidity pools. 
patsystems operates seven 
offices around the globe to 
serve our customer base. 
with headquarters in london, 
regional hubs are located in 
Chicago, singapore, and tokyo. 
ChiCago, USa
38% of Patsystems 
revenue is generated in 
the USa with Chicago 
serving as the birthplace 
of futures trading and 
home to the largest 
derivatives exchange in 
the world. 
New york, USA
The New york office 
is responsible for the 
ongoing support of 
large global clients such 
as Citigroup and  
Morgan Stanley.
Where We Operate 7 patsystems plc i annual report & accounts 2008
Hig Hlig Hts t HE Company tHE y Ear in rE vi Ew govE rnan CE Finan Cial stat EmEnts
tvv
london, Uk
Headquartered  
in london, 35%  
of Patsystems revenue  
is generated from  
the Uk and Europe. 
hong kong
The hong k ong o ffice 
opened in 2007 and is 
responsible for winning 
3 new clients in 2008 – 
Ascot Financial Services, 
guotai Junan Futures 
and the hong k ong 
Mercantile Exchange.
singapore
patsystems has 
experienced over 50% 
growth rate in recurring 
revenue year on year 
for the last 4 years in 
singapore and we see 
this trend continuing.
sydney, australia
Patsystems sydney office 
has been established 
for 8 years and supports 
large global clients such 
as Macquarie Bank and 
MF Global. 
tokyo, japan
patsystems tokyo office 
provides full support for 
our exchange business 
as well as support for 
our j apanese language 
front-ends. 
revenue
£3.7m 0.363p £19.6m
adjusted pre-tax profit proposed full-year dividend dividend per shAre (p)
Adjusted pre-t Ax prOfit (£m)
Finan Cial Hig Hlig Hts 
revenue increased by 15% to £19.6 million (2007: £17.0 million) 
adjusted pre-tax profit increased by 23% to £3.7 million (2007: £3.0 million) 
Cash flow from operating activities of £3.6 million (2007: £2.6 million) 
Cash balances at the year end of £5.9 million (2007: £3.2 million) 
proposed full year dividend of 0.363p per share (2007: 0.33p) 
opErational HigHligHts
Billable pro-mark trading screen user numbers increased to 571 (2007: 375) 
pro-mark awarded ‘technology product of the year’ by Futures & options w eek 
increased adoption of risk informer 
Highlights
0.35
0.30
0.25
0.20
0.15
0.10
0.05
0
0
‘05 ‘06 ‘07 ‘08
‘05 ‘06 ‘07 ‘08
*profit before tax after adjusting for share option costs, marking-to-market of derivatives used 
to hedge cash flows and amortisation of intangibles other than internally developed software
a strong set of results 
which demonstrates the 
fundamental strength  
of both our business  
and business model.
net CAsh flOWs frOm  
OperAting ACtivities (£m)
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0
‘05 ‘06 ‘07 ‘08
8 patsystems plc i annual report & accounts 2008 Patsystems plc I Annual Report & Accounts 2008
HIg Hl Ig Hts t HE Com PAny tHE y EAR In R Ev IEw govER nAn CE FInAn CIAl st At EmEnts HIg Hl Ig Hts t HE Com PAny tHE y EAR In R Ev IEw govER nAn CE FInAn CIAl st At EmEnts
9
“given the challenges currently facing the financial 
sector I am delighted to be able to report another very 
successful year for Patsystems. At the half year stage 
we stated that, despite a slow first half, we remained 
confident of meeting expectations for the full year, and 
it is testament to the management team and the quality 
of our offering that we have, in fact, exceeded them.”
“trading subsequent to the year end has progressed  
in line with our expectations and our sales pipeline  
is already delivering exciting opportunities for 
2009. w e remain confident of fulfilling our growth 
aspirations despite the tough economic climate.”
“o perating cash flows improved by 38% to £3.6m 
from £2.6m in the prior year. As a result the group 
ended the year with a cash balance of £5.9m.”
CHAIRmAn’s st AtEmEnt
CHIEF ExECutIvE’s REPoR t
FInAnCE DIRECtoR’s REvIEw
PAgE 10
PAgE 14
PAgE 20
Revenue
£3.7m 0.363p £19.6m
t his has been  
a very successful year 
both in terms of the level 
of adjusted profit and, 
more importantly in the 
current economic climate, 
the amount of cash 
generated.
Adjusted pre-tax profit Proposed full-year dividend 10 Patsystems plc I Annual Report & Accounts 2008
I am delighted to report a 
strong set of results for the 2008 
financial year which have been 
achieved against a backdrop of 
significant change in our markets 
and the overall economic turmoil. 
I believe this demonstrates the 
fundamental strength of both 
our business and business model.
At the half year results,  
I commented that sales wins 
expected in the first half of  
the year had crystallised later 
than expected. I am pleased  
to confirm that the confidence 
I expressed in our sales pipeline 
was well founded and that 
market expectations have  
been fully achieved.
t he recurring nature of a 
substantial proportion of 
our trading systems revenue 
combined with continued growth 
in demand for our post-trade 
risk product, Risk Informer, has 
delivered both revenue growth 
and a robust cash position for 
the business. we have continued 
to add new customers as well 
as developing further our 
relationships with existing clients.
Cash flows from operating activities 
amounted to £3.6 million compared 
to £2.6 million in 2007; we expect  
this level of cash generation to 
continue in the forthcoming 
year. the year end cash balance 
stood at £5.9 million (2007:  
£3.2 million) and the business 
remains debt free.
FInAnCIAl REsults
Adjusted pre-tax profit (being 
profit before tax after adjusting 
for share option costs, marking 
to market of derivatives used 
to hedge cash flows and 
amortisation of intangibles 
other than internally developed 
software) for the full year ended 
31 December 2008 increased  
to £3.7 million compared to  
£3.0 million in 2007. Adjusted 
pre-tax profit is the definition 
of profit used by analysts to 
measure the performance 
of the Company.
Adjusted diluted EPs on this 
basis and excluding the impact 
of deferred tax grew to 1.9p per 
share from 1.7p per share last 
year. Details of these calculations 
are set out in the Earnings Per 
share section of the Finance 
Director’s Review.
Pre-tax profit for the full year 
ended 31 December 2008 was 
£2.07 million compared to 
£2.19 million in 2007. Diluted 
EPs was 0.3p per share (2007: 1.0p).
Increase in cash flow from 2007
+38%
year on year growth of dividend
+10%
Chairman’s statement
Increase in adjusted pre-tax profit
+23%
“I am pleased to  
confirm that confidence 
in our sales pipeline 
was well founded 
and that market 
expectations have  
been fully achieved.”
Richard Last, 
Chairman 11 Patsystems plc I Annual Report & Accounts 2008
HIg Hl Ig Hts t HE Com PAny tHE y EAR In R Ev IEw govER nAn CE FInAn CIAl st At EmEnts
87% of revenue in 2008 was  
of a recurrent nature compared 
to 83% in 2007, demonstrating 
the inherent strength of the 
Patsystems business model. t his 
provides an excellent basis up 
on which to develop and plan 
the growth of the business. 
DIvIDEnD
Following the dividend of 
0.21p per share, approved by 
shareholders at the Annual 
general meeting on 17 April 
2008, relating to the results 
for 2007, the Board declared 
an interim dividend of 0.126p, 
payable in september 2008, 
based on the interim results 
for the year.
Patsystems is expected to 
continue to generate resilient 
positive operating cash flow in 
2009 and beyond, in light of 
this, and combined with our 
strong year end cash position, 
the Board is recommending the 
payment of a final dividend of 
0.237p based on the results for 
2008 as a whole, bringing the 
total dividend for the year to 
0.363p per share, compared to 
a total of 0.33p for 2007. this 
gives a year on year growth 
of 10% in our dividend.
News
Hong Kong mERCAntIlE
the newly formed Hong Kong 
mercantile Exchange has 
selected Patsystems to provide 
trading and risk management 
technology. 12 Patsystems plc I Annual Report & Accounts 2008
subject to confirmation at the 
Annual general meeting the 
final dividend will be paid on 
29 may 2009 to shareholders on 
the register as at 1 may 2009. the 
shares are expected to be quoted 
ex dividend on 29 April 2009. 
mAnAgEmEnt AnD st AFF
o n behalf of the non-executive 
Directors I would like to 
congratulate David w ebber, 
martin thorneycroft and the 
senior Patsystems management 
team for their stewardship of 
the Company during one of the 
most challenging periods since 
its foundation. t he operational 
structure, developed over the 
time since David’s appointment, 
has contributed significantly to 
the growth of the business and 
will, I am sure, provide a solid 
foundation during what is likely 
to be a challenging 2009. 
o n behalf of the Board,  
I would like to congratulate 
Kieron o ’toole on his 
appointment as o perations 
Director in september 2008. 
Kieron has now added the 
product development and 
quality assurance functions  
to his existing remit of customer 
support and implementations. 
Kieron is looking to strengthen 
further the management of 
the product and development 
functions during 2009 as well  
as pursuing opportunities  
for efficiency gains.
BoARD
As he set out in last year’s Annual 
Report, stewart millman stood 
down as Chairman and retired 
from the Board of Patsystems at the 
Annual general meeting last year. 
I should like to thank stewart on 
behalf of the Board and personally 
for his substantial contribution to 
the growth and development of 
Patsystems; he left the business 
profitable, cash generative and 
well-placed to take advantage of 
the many business opportunities 
available. I greatly respect stewart’s 
advice and guidance and wish 
him every success with the many 
other ventures I know he intends 
to be involving himself with.
I should also like to thank steve 
sparke and John Priestley for 
their support during my first 
period as Chairman of Patsystems. 
their business experience and 
wise counsel has been particularly 
beneficial during a challenging 
business period.
v isibilty
Chairman’s statement continued
strong sales pipeline for 2009
Positive
“Despite the general 
economic outlook,  
we expect business  
to grow in 2009.”
Richard Last, 
Chairman
Recurring revenue base 13 Patsystems plc I Annual Report & Accounts 2008
HIg Hl Ig Hts t HE Com PAny tHE y EAR In R Ev IEw govER nAn CE FInAn CIAl st At EmEnts
CustomERs AnD sHAREHolDERs
t he ongoing support of our 
customers is fundamental to the 
success and growth of the business. 
I am delighted that in addition 
to existing customers extending 
their use of Patsystems’ products 
and services during the year 
we have also added a breadth 
of new customers across all the 
markets in which we operate. 
I would also like to thank our 
shareholders for their continued 
support particularly when equity 
valuations have been subject to 
the vagaries of volatile market 
sentiment. I believe the result 
for 2008 and the prospects for 
the business in 2009 justify their 
confidence and support  
in Patsystems.
FutuRE
Patsystems enters 2009 with 
a strong sales pipeline with 
a number of major business 
opportunities that are expected 
to be signed during the first half 
of 2009 and will benefit the result 
for this current financial year.
with the high visibility that 
results from our recurring 
revenue base, combined with 
a strong well qualified sales 
pipeline, we remain positive 
that despite the general 
economic outlook we expect 
the business to continue to 
grow in 2009. 
the business is also expected 
to continue to be strongly 
cash generative during 2009 
and the Board believes we are 
well positioned to weather the 
present economic uncertainties.
RICHARD lAst
Chairman, non-executive Director
9 February 2009
News
InCREAsED ADoPtIon  
oF RIsK InFoRmER
Considerable success for the 
Risk Informer product with 
new sales at gH Financials  
and Royal Bank of Canada 
Capital markets. 14 Patsystems plc I Annual Report & Accounts 2008
Revenue has risen 15% to  
£19.6 million compared to  
£17.0 million in 2007 with 
improved contributions from  
all three product segments.
Earlier in the year it was necessary 
to advise shareholders that the 
business had experienced a delay 
in the closure of new business 
opportunities and the result for 
the first half of the financial year 
would be impacted by those 
delays. I am delighted to report 
that, as was forecast at the time 
of the announcement, those 
delayed sales have been 
concluded during the second 
half of the year.
the conclusion of those sales 
opportunities has meant that the 
second half performance of the 
business was substantially ahead 
of the first half. t he adjusted 
profit for the second half of the 
year was £3.3 million compared 
to £0.4 million in the first half.
operating expenses were 18.6% 
higher at £17.2 million when 
compared to £14.5 million in 2007.
t here are three significant 
components to this increase in 
costs; £2 million due to planned 
increased staff costs compared 
to 2007, £0.35 million due to 
the increase in amortisation of 
intangible assets and a net foreign 
exchange loss of £0.2 million.
During the year, the number of 
third party contractors has been 
reduced from a peak of 15 in the 
first half to 3 at the end of the year. 
o verall operating costs in 2009 are 
planned to be broadly in line with 
2008 so that anticipated increases 
in revenue will benefit the overall 
profitability. should there be 
an unanticipated contraction in 
revenue then contingency plans 
exist to reduce the cost base.
tRADIng systEms AnD  
mARKEt ConnECtIvIty
trading systems revenue increased 
by 15% to £16.4 million for the 
year compared to £14.3 million 
in 2007.
During the year there have been 
new customer wins with the 
Hong Kong mercantile Exchange, 
Advantage Futures in north 
America, gK goh Financial services 
in singapore and Ascot Financial 
services and guotai Junan Futures, 
both in Hong Kong.
t he performance of the Hong 
Kong office, in its first full year  
of operation, has been particularly 
pleasing and we look forward 
Rise in revenue
+15%
Billable users of Pro-mark
571
Chief Executive’s Report
“Revenue has risen 15% to 
£19.6 million compared 
to £17.0 million in 
2007 with improved 
contributions from all 
three product segments.”
David w ebber,  
Chief Executive 15 Patsystems plc I Annual Report & Accounts 2008
HIg Hl Ig Hts t HE Com PAny tHE y EAR In R Ev IEw govER nAn CE FInAn CIAl st At EmEnts
to further opportunities in Hong 
Kong, mainland China and taiwan.
I am delighted to report a further 
and ongoing increase in the 
number of users for the Pro-mark 
professional trading tool. At the 
end of the financial year there 
were 571 billable users compared 
to 375 at the start of the year. 
Adoption of the Pro-mark 
tool at mF global, morgan 
stanley and newedge has been 
particularly strong during the 
year. two of our major customers 
have forward purchased their 
2009 trading screen requirement 
which is a clear demonstration of 
their commitment to both their 
businesses and Patsystems; this 
revenue will be recognised  
during 2009.
As a recognition of the 
significant product investment 
we have made in the Pro-mark 
product in 2008, it was awarded 
the “technology Product of the 
year” by Futures and o ptions 
w eek magazine.
Pro-mark 5.0 was released 
in July 2008 and this release 
contained a host of new 
functionality as well as an 
improved log-on capability 
improving download speeds  
for the start of the day’s  
trading by over 60%.
o ther functional improvements 
included an enhanced microsoft 
Excel plug-in capability to enable 
a broader population to use 
the functionality and Pro-mark 
Control, which enables an 
appropriately mandated super 
user or administrator to monitor 
or intervene on any order or 
trade account.
t he existing core system was 
improved by the release of 
version 4.0 for the software in 
september 2008; the release 
included a substantial extension 
to the data capacity of the 
order routing capability and 
further improvements to 
the transaction handling to 
ensure the product’s operating 
performance remains ahead of 
our customers’ requirements.
xlink is Patsystems’ 
proprietary network that 
enables Patsystems users 
to leverage both exchange 
memberships and operations 
within territories where they 
are not present, by way of 
utilising the installations and 
exchange memberships of other 
customers. xl ink adoption 
continued to grow in 2008.
Deployment of global trading, 
our new core offering, was 
delayed during the year due 
to integration issues and, as 
was reported at the half year, 
is not expected to contribute 
to revenue materially until the 
second half of 2009.
t he latest version of global 
trading, version 1.1, is functionally 
equivalent to the current core of 
the existing system and is fully 
compatible with the current 
trading screen versions of J-trader 
and Pro-mark, as well as all of our 
existing exchange connectivity.
pRo-maRk biLLabLe useRs News
PRo-mARK gRowtH 
the number of billable  
Pro-mark users grew to  
571 compared to 375 at  
the start of the year.
600
500
400
300
200
100
0
‘05 ‘06 ‘07 ‘08 16 Patsystems plc I Annual Report & Accounts 2008
Deployments of global trading 
are scheduled with existing 
customers during 2009 and 
macquarie Bank l imited and 
morgan stanley have contracts 
for its deployment in place.
t here have been continued 
extensions to our market 
connectivity in 2008 with 
connectivity to the Indian 
national stock Exchange and the 
Bombay stock Exchange with mF 
global, the turkish derivative 
exchange turkDEx , the tokyo 
stock Exchange and, the major 
connectivity project in 2008, 
the upgrade to the FIx FAst 
communication protocol for the 
CmE group, replacing their long 
standing market data protocol.
Connectivity to exchanges in 
Brazil and malaysia is under 
development with planned 
release in the first half of 2009.
RIsK systEms
Revenue from our risk systems 
business grew by 21% to £1.7 
million from £1.4 million in 2007 
and £0.7 million in 2006. 
During the year there was 
considerable success for the Risk 
Informer product with new sales 
of the product to gH Financials 
and Royal Bank of Canada 
Capital markets to support the 
management of their post-
trade risk on exchange traded 
derivatives business.
there were further sales of 
extension licences to newedge 
and mF global during the year to 
support their additional business 
use of Risk Informer and a 
significant Risk Informer sale to a 
major investment bank to manage 
the trading of their clients for 
exchange traded derivatives.
It is firmly our belief that Risk 
Informer is the market leading 
product for the management 
and control of post-trade risk for 
exchange traded derivatives and its 
proven capability to risk other asset 
classes’ means that we continue to 
have great optimism for the growth 
in opportunities from this product.
I am pleased to announce 
that we have just concluded a 
successful beta of our new pre-
trade product, Risk monitor. 
As I stated last year, Risk monitor 
is a low latency pre-trade risk 
management tool designed to 
monitor trades ahead of them 
being traded on an exchange. t his 
provides the customer with the 
opportunity to be alerted or even 
to intervene before a trade occurs. 
w e have had considerable 
interest within our customer 
base for this type of capability 
and we expect Risk monitor to 
commence generating licence 
revenue in 2009.
ExCHAngE systEms
Revenue from the exchange 
systems business was £1.5 million 
for the year compared to 
£1.3 million in 2007, and was 
primarily from the provision 
of support, maintenance and 
associated consultancy services.
o n 4 January 2008, tokyo grain 
Exchange successfully launched 
three futures products, namely 
Arabica and Robusta bean coffee 
contracts and raw sugar, on the 
new continuous exchange system 
provided by Patsystems.
o n the 5 January, 2009 tokyo 
grain Exchange launched a non-
gmo soybean contract on the 
continuous exchange system.
In contrast to previous years 
there have been a number of 
sales opportunities to provide 
our matching engine capability 
in conjunction with our trading 
and risk offerings, though as yet 
none of these opportunities have 
materialised in sales. 
Chief Executive’s Report continued
“Revenue from our risk 
systems business grew 
by 21% to £1.7 million 
from £1.4 million in 
2007 and £0.7 million  
in 2006.”
David w ebber,  
Chief Executive 17 Patsystems plc I Annual Report & Accounts 2008
HIg Hl Ig Hts t HE Com PAny tHE y EAR In R Ev IEw govER nAn CE FInAn CIAl st At EmEnts
the availability of the matching 
engine capability within our product 
portfolio continues to open up sales 
opportunities for the rest of our 
product range, with the Chinese 
Futures Exchange trading system 
and the Hong Kong mercantile 
Exchange being prime examples 
of this. these opportunities may 
not have been available without 
the dialogue about the matching 
and clearing product set as a first 
basis for engagement.
though we remain optimistic about 
the opportunity to successfully sell 
our exchange solution we have 
not factored any contribution from 
matching engine sales within our 
business plan for 2009.
BRAnD AnD mARKEtIng
w e continuously challenge  
and scrutinise the value that 
we get from our marketing 
expenditure and, in 2008, we 
invested £0.2 million. I am 
very satisfied as to how well 
established the key brand 
message we introduced in 2008 
has become. “powers trades. 
builds exchanges. manages 
risk.” neatly epitomises our 
core proposition and has been 
consistently reinforced in our 
marketing activities in 2008.
In 2008, we decided to withdraw 
from a number of trade shows 
that we felt had not delivered 
value, by way of foot fall, 
senior prospect or customer 
engagement, and have invested 
more extensively in the shows 
that we believe enable us to 
communicate our message  
most effectively.
In late 2008, we tested the use 
of an on-line marketing 
approach rather than the 
mixture of trade press adverts 
and advertorial we have used 
in the past. t his was highly 
successful and delivered 
a measurable return on 
investment. For 2009, we have 
appointed a us agency to 
support our Head of marketing 
based in Chicago in extending 
the on-line marketing strategy.
stRA tEgy AnD  
PRoDuCt DEvEloPmEnt
o ur strategy remains unchanged 
in that we aspire to be the 
trusted technology partner of 
choice for our customers and 
prospects within our area of 
domain expertise; electronic 
trading systems, exchange 
systems and risk.
o ur internal product investment 
and continued ongoing search 
for potential targets for 
acquisition is focused at present 
on complementing the existing 
product capability and strategy.
As I reported above, we have 
continued to invest across the 
existing product range as well 
as continuing the development 
of new product offerings such 
as Risk monitor.
ReVeNue
trading systems revenue Risk systems revenue Exchange systems revenue 
£16.4m £1.7m £1.5m
trading systems – 83.7%
Risk systems – 7.6%
Exchange systems – 8.7% 18 Patsystems plc I Annual Report & Accounts 2008
within 2008, we launched an 
extension to our capability to 
support the broadest possible 
range of products and trading 
styles with an extension module 
to our existing syoms system.
syoms is a Patsystems tool 
that enables traders to execute 
products that do not exist on an 
exchange, such as a stop, time 
triggered or limit orders, by 
simulating their existence.
the new extension module to 
syoms is called Algoserver and 
enables syoms to support a range 
of algorithms. t he first release has 
a selection of algorithms provided 
by Patsystems but subsequent 
versions will enable users to 
introduce their own algorithms  
by way of our proprietary API.
In 2009, our focus will be 
to conclude the first live 
deployments of both global 
trading and Risk monitor and 
to commence the first beta 
deployment of Algoserver to one 
of our existing syoms customers.
t he other significant investment 
that we will be making in 
2009 is the establishment of a 
technical framework to reduce 
the ongoing development 
and support costs of exchange 
connectivity for the future. 
we have recruited a new product 
head for the connectivity team 
and removed the fragmentation 
that existed with our connectivity 
team members being based in 
both london and Chicago.
the instigation of new processes 
and the change in individuals 
within the team will mean 
there will be a lower level 
of productivity within the 
connectivity team in the first half 
of 2009, but we expect to see the 
return on improved productivity 
and shorter development lead  
times in future periods.
ExECutIvE mAnAgEmEnt 
CommIttEE
the Executive management team 
of Patsystems is comprised of the 
two Executive Directors, martin 
t horneycroft and I, Barry w hite 
and Patrick Kenny, Heads of Asia 
and north America respectively, 
graeme neilly, Head of European 
sales, lorna Blane, Head of Human 
Resources and Kieron o’t oole, 
operations Director.
In september 2008, 
Kieron o’t oole extended his 
responsibility from support 
and implementations across 
all areas of o perations for the 
Patsystems business globally.
Pat and Barry have continued 
to develop their regions during 
the year and graeme has further 
developed his European sales and 
account management team.
In march 2008, Jon Regan left 
Patsystems to join a customer 
and in september 2008 Andy 
Edwards left the business after 
many years’ service as Head of 
Development. I would like to 
thank Andy and Jon for their 
contribution to the business 
during my tenure as CEo. 
I would like to thank all my 
Executive management team 
members for their support and 
efforts during the last year.
BusInEss EvolutIon 
AnD st AFF
though the compliment of staff has 
changed during the year, overall 
staff numbers are broadly the same 
as the start of the year at 156.
Headcount increases within the 
singapore support and technical 
analyst teams have been 
compensated for by efficiencies 
and head count reductions 
elsewhere in the business. we have 
continued our policy of offering the 
opportunity for our staff to develop 
their careers within the business 
with the option to relocate to other 
countries; during the year we have 
had two staff from london relocate 
“I am delighted to  
report a further and 
ongoing increase in the 
number of users for the 
Pro-mark professional 
trading tool.”
David w ebber,  
Chief Executive
Chief Executive’s Report continued 19 Patsystems plc I Annual Report & Accounts 2008
HIg Hl Ig Hts t HE Com PAny tHE y EAR In R Ev IEw govER nAn CE FInAn CIAl st At EmEnts
to singapore and one member  
of staff relocate to Chicago. 
I would also like to particularly 
congratulate the l ondon technical 
and support staff for their 
handling of a disaster recovery 
event in April 2008. t he building 
in which Patsystems operates 
in london lost all electrical 
power for 48 hours when the 
local electricity substation was 
flooded. our disaster recovery 
plans were instigated and, not 
only did no customers suffer any 
service interruption, but none 
of our customers were even 
aware that key support and 
development services had moved 
to our disaster recovery site.
I would like to thank all of our 
staff for their hard work during 
2008 and they can feel justifiably 
proud of their performance and 
our results for the year.
BusInEss oBJECtIvEs  
AnD outlooK
our key objectives for 2009 
are as follows:
• 	 C o n s o l i d a t e 	 o u r 	 p o s i t i o n 	 w i t h i n	
our existing customer base and 
leverage the opportunity from 
their potential rationalisation 
of their technology platforms 
to extend our position as their 
key supplier.
• 	 Generate	new	revenue	streams	
from our range of new product 
offerings; global t rading, Risk 
monitor and Algoserver.
•	 Identify 	 potential 	 acquisition	
targets where our global 
sales and support capability, 
combined with our strong 
working capital and cash 
generation, can leverage long-
term growth and value.
• 	 E x p l o r e 	 o p p o r t u n i t i e s 	 f o r	
further expansion in south 
America, greater China and the 
Indonesia & singapore region.
trading subsequent to the year 
end has progressed in line with 
our expectations and our sales 
pipeline is already delivering 
exciting opportunities for 2009. 
w e remain confident of fulfilling 
our growth aspirations despite 
the tough economic climate.
DAvID wEBBER
Chief Executive 
9 February 2009 20 Patsystems plc I Annual Report & Accounts 2008
As both Richard and David have 
already reported, this has been 
a very successful year both in 
terms of the level of adjusted 
profit and more importantly in 
the current economic climate the 
amount of cash generated.
Adjusted profit increased 23% 
to £3.7 million from £3.0 million 
in 2007 and operating cash 
flow also improved by 38% to 
£3.6 million from £2.6 million in 
the prior year. As a result of the 
net cash increase of £2.7 million 
the group ended the year with 
a cash balance of £5.9 million. 
Adjusted profit is a measure 
used by the analysts that 
cover the group including the 
analyst from our House Broker, 
seymour Pierce. Adjusted profit 
removes volatile non-cash items 
to show an underlying level of 
profitability that enables the 
results for the business to be 
compared on a consistent basis 
for each accounting period. 
the adjustments made to the 
reported pre-tax profit on 
ordinary activities are to add 
back the charge or credit for; 
(i) share option costs; (ii) the 
marking-to-market of derivatives 
that are used to hedge overseas 
foreign currency cash flows; and 
(iii) amortisation of intangibles 
other than those charges for 
internally developed software. 
t he table in the Earnings 
per share section details the 
adjustments made to operating 
profit in both this current and 
the prior year.
During 2008, the group has seen 
sterling fall to levels against 
both the us Dollar and the 
Japanese yen that have not 
been experienced previously by 
Patsystems. the average rates 
used to translate the Dollar and 
yen currencies in our profit and 
loss account in 2008 were 1.84 and 
190.76 respectively against rates 
of 2.01 and 235.50 in 2007. t he 
weakness of sterling is even starker 
when the rates used to translate 
our year end balance sheet are 
compared. the 2008 year end rates 
for the Dollar and yen were 1.44 
and 130.86 compared to 2.00 and 
224.00 in 2007.
the group revenues for 2008 
have benefited by approximately 
£1 million as a result of the 
exchange rate movements. 
Conversely operating costs that 
are denominated in Dollars and 
yen, namely salaries and property 
costs have also increased. this 
exchange rate movement has 
resulted in an additional cost of 
approximately £400k and hence 
“Cash and cash 
equivalents increased 
to £5.9m from £3.2m 
last year.”
m artin Thorneycroft,  
Finance Director
Finance Director’s Review
operating cash flow: £3.6m
+38%
+23%
Adjusted profit: £3.7m 21 Patsystems plc I Annual Report & Accounts 2008
HIg Hl Ig Hts t HE Com PAny tHE y EAR In R Ev IEw govER nAn CE FInAn CIAl st At EmEnts
the net contribution to adjusted 
profit is approximately £600k. 
other foreign exchange gains 
and losses are shown in note 5  
to the accounts.
the group’s balance sheet 
has also benefited from the 
movement in exchange rates with 
opening net assets denominated 
in foreign currencies benefiting 
from the significant movements 
in year end rates. the year end 
cash balance benefited by £700k 
as a result of the exchange  
rate movements.
REvEnuE
total group revenue grew by 
£2.6 million to £19.6 million 
from £17.0 million last year. 
Adjusting for the effect of the 
movements in foreign exchange 
the underlying growth in total 
group revenue was 10%.
trading systems
trading systems revenue grew 
from £14.3 million in 2007 to 
£16.4 million in 2008; an  
increase of 15%.
Exchange systems
Exchange systems revenue 
increased by £0.2 million to  
£1.5 million from £1.3 million  
in 2007.
Risk systems
Revenues from the Risk  
systems business grew by 21%  
to £1.7 million from £1.4 million 
in 2007.
oPERAtIng ExPEnsEs
o perating expenses increased 
by £2.7 million to £17.2 million 
from £14.5 million in 2007. 
Approximately £0.4 million 
of this increase was due to 
the weakening of sterling 
against the Dollar and yen.
t he majority of the increase 
in overheads is attributable 
to staff costs which increased 
by £2.0 million as a result of a 
combination of salary increases 
in January 2008, new recruits, 
less time being capitalised into 
development projects and an 
increased level of contracted 
resource during the first half  
of 2008. the number of 
contractors peaked at 15 in 
February 2008 and was reduced 
to 3 by the end of 2008. t his 
number is expected to remain 
the same during 2009.
At 31 December 2008 the group 
had 156 permanent staff (2007: 
150) and 3 contractors (2007: 12).
In addition to the increase in staff 
costs, amortisation of capitalised 
development costs increased by 
£0.44 million to £0.62 million 
and the mark-to-market charge 
for future years dollar forward 
contracts purchased to hedge 
future cash flows increased to 
£0.88 million from £0.10 million 
in 2007.
aDjusTeD eps (pence)
2.0
1.5
1.0
0.5
0
‘05 ‘06 ‘07 ‘08 22 Patsystems plc I Annual Report & Accounts 2008
the above cost increases were 
offset to some extent by an 
increase in other exchange gains 
of £0.59 million to £0.68 million 
(comprised of realised gains of 
£0.59 million and unrealised gains 
of £0.09 million) and a reduction 
in expenditure on marketing, 
travel and entertaining costs  
of £0.15 million.
PRoFIt on oRDInAR y  
ACtIvItIEs BEFoRE t AxAtIon
the profit on ordinary activities 
before taxation was £2.1 million 
(2007: £2.2 million).
tAxAtIon
t he group has tax losses carried 
forward of £21 million and will 
not be paying tax on its profits 
in most taxation jurisdictions 
for a number of years. small 
amounts of withholding tax 
may or may not arise from 
time-to-time depending on 
the geographical locations of 
customers with whom the group 
does business. 
t he current tax charge shown on 
the face of the income statement 
of £0.15 million comprises of a 
corporation tax charge in Japan 
of £0.14 million and withholding 
tax of £0.01 million. t he 
deferred taxation charge of  
£1.3 million arises largely in 
respect of the usage of trading 
losses in the year and the impact 
of the movement in exchange 
rates on the us and Japanese 
deferred tax assets.
PRoFIt FoR tHE yEAR
Profit for the year fell to 
£0.6 million (2007: £1.8 million). 
After adjusting for the deferred 
tax charge, profit for the year 
decreased to £1.9 million from 
£2.1 million in 2007.
EARnIngs PER sHARE
Basic EPs has fallen to 0.3p from 
1.1p and diluted EPs has fallen 
to 0.3p from 1.0p last year.
the Board monitors the 
Company’s EPs performance  
by reference to adjusted pre-tax 
profit less current tax. Deferred 
tax is excluded from this measure 
because of its potential volatility. 
the adjusted EPs calculations on 
this basis are shown opposite. 
Int AngIBlE AnD  
tAngIBlE FIxED AssEts
goodwill
goodwill at the year end 
amounts to £3.25m. t his 
incorporates an increase  
in the year of £14k in  
relation to the difference 
between the estimated 
contingent consideration  
at 31 December 2007 and  
the final settlement made  
in the year.
£3 million of the goodwill 
balance relates to the acquisition 
of tamesis in 2005. As previously 
commented, the Risk systems 
element of our business continues 
to see strong growth.
Intangible Assets
During the year, the group 
expended £0.86 million on 
intangible assets (2007:  
£1.80 million). t his spend 
included £0.81 million of 
capitalised development costs in 
respect of new products that will 
generate revenues in future years. 
t hese costs will be amortised over 
three to five years from the date 
of completion. t he amortisation 
period reflects the expected life  
of the particular asset capitalised.
tangible Assets
During the year, the group 
purchased fixed assets totalling 
£0.13 million (2007: £0.42 
million). t he majority of this 
consisted of computer hardware.
Finance Director’s Review continued
“Adjusted fully diluted 
EPs has grown by 12% 
to 1.9p from 1.7p in 
2007.”
m artin Thorneycroft,  
Finance Director 23 Patsystems plc I Annual Report & Accounts 2008
HIg Hl Ig Hts t HE Com PAny tHE y EAR In R Ev IEw govER nAn CE FInAn CIAl st At EmEnts
CuRREnt AssEts
trade Receivables
trade receivables have increased 
by £1.7 million to £4.4 million 
from £2.7 million in 2007. the 
strengthening of the us Dollar 
and Japanese yen against sterling 
accounted for £525k of the 
increase. the remainder of the 
increase is due to the increase in 
sales in the final quarter of  
the year. During the year, the 
group has not suffered any 
significant bad debt write-offs.
Pre-payments and accrued income 
have increased by £0.55 million. 
£0.3 million of this is due to the 
increase in the accrued income  
on the Risk Informer sales.
Financial Assets/l iabilities – 
Derivative Financial Instruments
Financial assets represent the 
“marked-to-market“ value of 
derivatives used to hedge the 
group currency exposures. the 
derivatives used are forward 
contracts and currency options. 
t hese derivatives are marked 
to market monthly and the 
resulting “profit or loss” is taken 
to the income statement.
ADJustED EARnIngs PER sHARE CAlCulA tIons
2008
£’000
2007
£’000
Profit for the year attributable to equity holders of the company 616,000 1,844,000
taxation 1,450,000 344,000
Profit on ordinary activities before taxation 2,066,000 2,188,000
share option costs 329,000 210,000
movement in fair value of hedging instruments 883,000 97,000
Amortisation of intangibles 391,000 483,000
Pre-tax adjusted profit on ordinary activities 3,669,000 2,978,000
Current taxation (152,000) (36,000)
Post-tax adjusted Profit 3,517,000 2,942,000
weighted average number of shares 178,982,340 168,090,000
Effect of dilutive share options 4,462,772 6,529,743
Effect of contingent share consideration – 1,092,000
183,445,112 175,711,743
Adjusted EPs 2.0p 1.8p
Adjusted diluted EPs 1.9p 1.7p 24 Patsystems plc I Annual Report & Accounts 2008
CuRREnt lIABIlItIEs
trade payables have fallen 
slightly to £0.29 million from 
£0.32 million in 2007. other tax 
and social security has increased by 
£0.37 million as a result of vAt and 
sales tax due on the higher level 
of sales made in the final quarter 
of 2008. Accruals have grown to 
£1.6 million from £1.1 million in 
the previous year mainly as a result 
of an increase in sales commission 
pertaining to the final quarter sales. 
Deferred Income has increased 
by £0.89 million as a result of the 
growth in the level of block licenses 
purchased by clients. the revenue 
from these block licences will be 
released to the income statement 
on a monthly basis during 2009.
BusInEss RIsKs
t he principal business risks remain 
the same as in previous years, 
however in the current economic 
climate the group has added a 
further business risk which in previous 
years the group did not consider 
significant; namely bad debts.
Competition
t he group operates in a growing 
but competitive market. there are 
three major software suppliers 
in the global electronic trading 
systems market for futures and 
options, of which Patsystems is one. 
there are many smaller companies 
who supply screens but not market 
connectivity. In such a market there 
is always a risk that customers could 
move to other competitors and 
there is always downward pressure 
on margins. Patsystems mitigates 
this risk by supporting its brands 
with appropriate marketing activity 
and by consistently extending its 
market connectivity as well as 
improving its software, customer 
support and customer care.
Bad debts
As has been seen by the demise 
of many well known financial 
institutions over the last 9 months, 
the deterioration in the global 
economic climate has been 
particularly painful in the financial 
services sector. As the majority of 
our clients are financial services 
organisations the group considers 
that the potential for a client to 
get into financial difficulties and 
not to be able to pay its debts has 
increased. In order to mitigate this 
risk Patsystems reviews all client 
accounts on a monthly basis and 
takes appropriate action to keep 
accounts within payment terms.
During the year, l ehman Brothers, 
a client for many years, entered 
into Chapter 11 in the us and was 
subsequently sold. All debts due 
from lehman were recovered in full.
Customer consolidation
Consolidation within the financial 
services industry has occurred 
over the past few years and 
further consolidation remains 
a risk. where consolidation 
takes place the risk to the 
group’s business is typically to 
the revenues associated with 
market connectivity and support 
and maintenance. we mitigate 
this risk by actively adding new 
customers, products and asset 
categories to our portfolio. 
Revenue profile
87% of Patsystems revenue is 
recurring in nature and, in stark 
contrast to many technology 
companies, this gives a level 
of guarantee for a minimum 
level of operating profit for the 
business on an annual basis.
However, with products such as 
Risk Informer playing an integral 
role in the group’s future growth 
expectations and the significant 
revenues from these opportunities 
being non-recurring in nature, the 
propensity for organisations such 
as the investment banks to defer 
Finance Director’s Review continued
“87% of Patsystems 
revenue is recurring 
in nature and, in 
stark contrast to 
many technology 
companies, this gives 
a level of guarantee 
for a minimum level of 
operating profit.” 25 Patsystems plc I Annual Report & Accounts 2008
HIg Hl Ig Hts t HE Com PAny tHE y EAR In R Ev IEw govER nAn CE FInAn CIAl st At EmEnts
technology investments during 
tougher economic climates is a 
risk to our business. It remains too 
early for us to assess what impact 
the credit crisis will have on 2009 
purchasing decisions but our strong, 
well-qualified sales pipeline 
leads us to be optimistic. 
CAsH AnD tREAsuR y 
the group generated net 
cash inflows from operating 
activities of £3.6 million (2007: 
£2.6 million) and £0.99 million 
(2007: £2.22 million) was invested 
in intangible and tangible assets. 
Dividends of £0.6 million (2007: 
£0.7 million) were paid during the 
year. Cash and cash equivalents 
increased to £5.9 million from 
£3.2 million last year.
t he group is exposed to foreign 
currency risk on sales, purchases 
and cash balances that are 
denominated in a currency 
other than sterling. t he principal 
currency giving rise to this risk is 
the us Dollar. group policy is to 
carry forward cover for 75% of 
us $/£ net anticipated exposure for 
12 months forward. that level of 
cover is in place and is comprised 
of a mixture of forward contracts 
and options. t he average us $/£ 
exchange rate used in the 2008 
income statement was 1.84. t he 
average rate of the hedges in 
place for 2009 is 1.77.
KEy PERFoRmAnCE InDICA toRs
2008 2007 2006
Revenue £19.6m £17.0m £15.3m
operating profit as a percentage of sales 9.9% 12.3% 10.3%
Adjusted pre-tax profit £3.7m £3.0m £2.1m
operating profit £1.9m £2.1m £1.6m
operating cash flow £3.6m £2.6m £2.7m
Diluted EPs 0.3p 1.0p 4.1p
Diluted adjusted EPs 1.9p 1.7p 1.1p
Pro-mark screens deployed at year end 571 375 129
Average number of professional J-trader screens 
deployed during the year 1,163 1,360 1,462
mARtIn tHoRnEyCRoFt
Finance Director
9 February 2009  26 Patsystems plc I Annual Report & Accounts 2008
RICHARD lAst
CHAIRmAn, non-ExECutIvE DIRECtoR, AgE 51
Richard is Chairman and non-executive Director of AIm listed  
Knowledge technology solutions plc, a financial software business  
and a non-executive Director of the British smaller Companies oCt plc, 
t he British smaller technology Companies v Ct 2 plc, where he is also 
Chairman, both of which are listed on the london stock Exchange.  
He is also a non-executive Director of AIm listed companies lighthouse 
group plc and Corero plc and Director of a number of private companies 
including sphinx Cst limited, APD Communications and CsE global 
uK limited; both It companies. Richard, a Fellow of the Institute of 
Chartered Accountants, holds a BA (Hons) from sheffield university.
DAvID wEBBER 
CHIEF ExECutIvE, AgE 43
David was appointed Chief Executive of Patsystems in January 2006.  
He was formerly Chief Executive of Attentiv systems group, where  
his business leadership saw the company through significant expansion 
by both organic growth and acquisition. He led the management buyout, 
subsequent AIm flotation of the business and was retained as Chief 
Executive when Attentiv systems group plc was acquired by t ietoEnator in 
may 2005. David, a member of the Institute of Chartered Accountants since 
1989, holds a Bsc (Economics) from the london school of Economics.
mARtIn tHoRnEyCRoFt
FInAnCE DIRECtoR, AgE 47
martin joined Patsystems as Finance Director in July 2004.  
He was previously Finance Director of Profile media group plc.  
martin, a member of the Institute of Chartered Accountants having 
qualified with Ernst and young in 1986, holds a B. Com. from 
Birmingham university.
our Board
“t he operational 
structure has 
contributed 
significantly to the 
growth of the business 
and will provide a solid 
foundation during 
what is likely to be  
a challenging 2009.” HIg Hl Ig Hts t HE Com PAny tHE y EAR In R Ev IEw govER nAn CE FInAn CIAl st At EmEnts
27 Patsystems plc I Annual Report & Accounts 2008
JoHn PRIEstlEy
non-ExECutIvE DIRECtoR, CHAIRmAn oF tHE AuDIt CommIttEE, 
AgE 59
John has over 30 years experience in the software and  
services sector and in 2003 concluded a 13 year career with  
British telecommunications as Director of Business Development  
for syntegra. Previously, he was a Director of Kapiti and a Divisional 
Director with Hoskyns. 
 
stEvE sPARKE
non-ExECutIvE DIRECtoR, CHAIRmAn oF tHE REmunERA tIon 
AnD nomInA tIon CommIttEE, AgE 50
steve has had a 28 year career in the City spanning interest rate  
trading and futures and options broking and is currently Chairman  
of the Futures and options Association. He was global Head of uBs 
Exchange traded Derivatives business until April 2006 and has driven 
a number of the technology-led changes within the FCm industry. 
steve was a non-executive Director of Euronext.liffe and chaired the 
Exchange’s Audit and Risk Committee until november 2007. Currently 
steve holds the position of group Coo of marex Financial limited. steve 
graduated with a law degree from nottingham university in 1979. 28 Patsystems plc I Annual Report & Accounts 2008
The Directors present their report for Patsystems plc and the audited financial statements for the year ended  
31 December 2008.
PRINCIPAL ACTIVITIES
The principal activities of the Group are the development, distribution and support of software enabling:
the electronic trading of financial products on global trading exchanges; 
real time trade capture, valuation and risk management for the structured finance market. 
RESULTS AND DIVIDENDS
The profit on ordinary activities attributable to shareholders after taxation amounted to £616,000. (2007: £1,844,000). 
The proposed dividend for the year is detailed in the Chairman’s Statement on page 11.
REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS
The Directors are pleased with the Group’s performance during the year and its position at 31 December 2008.  
The Directors are confident that performance will continue to improve in 2009 and beyond. 
The review section of this report contains a detailed assessment of the business and future projects. 
Reviews of the risks faced by the business are detailed in the Chief Executive’s Report and the Finance Director’s 
Review. The Finance Director’s Review also details the Key Performance Indicators (KPIs) for the year.
PROCEEDS FROM SHARES ISSUED DURING THE YEAR
£86,000 was received in proceeds from the exercise of share options during the year ended 31 December 2008 
(2007: £112,000).
SUBSTANTIAL SHAREHOLDINGS
On 4 February 2009, the following holdings of 3% or more of the issued share capital of Patsystems plc were 
known Company: 
Beneficial owner, as notified to the Company Number of shares %
ION Trading UK Limited 52,851,191 29.44
Brandes Investment Partners LP 13,687,500 7.62
Brewin Dolphin Limited 12,982,122 7.23
Sedaf Holdings SA 10,064,600 5.61
Herald Investment Management Limited 6,900,000 3.84
Rathbone Investment Management Limited 5,375,000 3.00
DIRECTORS
The Directors of the Company, together with those who served during the year, are as follows:
Executive Directors  Non-executive Directors 
D Webber  R Last 
M Thorneycroft   J Priestley
   S Sparke 
   S Millman (resigned 17 April 2008)
Directors’ Report HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
29 Patsystems plc I Annual Report & Accounts 2008
DIRECTORS AND THEIR INTERESTS
Ordinary shares of 1p each in Patsystems plc 4 February 2009 31 December 2008 31 December 2007
D Webber 825,000 825,000 600,000
M Thorneycroft 40,000 40,000 40,000
R Last 786,886 786,886 786,886
J Priestley 91,017 91,017 91,017
S Sparke 250,000 250,000 250,000
S Millman (resigned 17 April 2008) 192,282 192,282 1,192,282
Details of the Directors who have an interest in share options are disclosed in the Remuneration report.
Save as disclosed in this report and note 28, there were no other contracts subsisting during or at the end of the 
financial year in which a Director of the Company is or was materially interested.
EMPLOYEE INVOLVEMENT
The Directors recognise the importance of employee involvement established by good communications and working 
relationships. The decentralised nature of the Group’s activities necessitates that the practical application of this 
policy is the responsibility of local management in a manner appropriate to their circumstances.
EMPLOYMENT POLICIES
The Group is committed to the terms of the Codes of Practice for the elimination of all or any discrimination and to 
the promotion of equality of opportunities in employment. 
It is Group policy to afford equal opportunities to all employees and job applicants. No employee or job applicant 
is less favourably treated than another on the grounds of their sex, sexual orientation, age, marital status, religion, 
race, nationality, ethnic or national origin, colour or disability and all appointments and promotions are determined 
solely by merit.
It is also Group policy to encourage and assist in the employment, training, re-training and career development  
of disabled persons where possible, having regard to their suitability for a particular vacancy and the nature of  
the Group’s activities. In the event that employees become disabled during employment the Group will where 
possible continue their employment and arrange appropriate training.
Responsibility for monitoring the effective working of these policies is vested in Martin Thorneycroft,  
the Finance Director.
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT
The Group’s activities expose it to a variety of financial risks and it has developed and operates an overall risk 
management programme that recognises the unpredictability of financial markets and seeks to minimise potential 
adverse effects on the Group’s financial performance. 
Financial risk management is under the control of the Finance Director and is carried out centrally for the Group  
in compliance with policies approved and monitored by the full Board. The Board regularly reviews the effectiveness 
of these policies examining specific areas including foreign exchange risk, interest rate risk, credit risk and the 
extent to which financial instruments are being used to hedge certain risk exposures. 
Details of the Group’s exposures to market, credit and liquidity risks are set out in note 3 to the financial statements.
RESEARCH AND DEVELOPMENT
During the year the Company continued to invest in research and development (R&D). All expenditure, whether incurred 
through internal staff costs or through third party suppliers, relating to R&D that satisfies the criteria for capitalisation 
under IAS 38, ‘Intangible assets’, is capitalised. Otherwise it is written off to the income statement in the period incurred.
CREDITOR PAYMENT POLICY
Given the international nature of the Group’s operations, there is no standard code for the Group in respect 
of payments to suppliers. Operating subsidiaries are responsible for agreeing terms and conditions for their 
business transactions when orders for goods and services are placed, ensuring that suppliers are aware of the 
terms of payment and including the relevant terms in contracts where appropriate. These arrangements are 
adhered to provided that suppliers meet their contractual commitments. 30 Patsystems plc I Annual Report & Accounts 2008
Creditor days have not been calculated for the Company as it is an investment holding company.
CHARITABLE AND POLITICAL DONATIONS
The Group made charitable contributions of £500 during the year (2007: £500). The donations were  
made to Macmillan Cancer Support. No political donations were made in 2008 or 2007.
DISCLOSURE OF INFORMATION TO AUDITORS
For each of the persons who were Directors at the time this report was prepared, the following applies:
So far as the Directors are aware, there is no relevant information of which the Company’s auditors are unaware; and 
The Directors have taken all the steps that they ought to have taken as Directors in order to make themselves aware  
of any relevant audit information and to establish that the Company’s auditors are aware of that information.
DISCLOSURE AND TRANSPARENCY RULES (DTR)
The Company has complied with the DTR so far as they are applicable to AIM listed companies.
ANNUAL GENERAL MEETING
The Notice convening the Annual General Meeting (AGM) together with the proposed resolutions is being sent 
to shareholders. The AGM will be held on 28 April 2009.
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 the Group, as at the end of the year, and of the profit  
or loss of the Group for the year. In preparing those financial statements, the Directors are required to:
Select suitable accounting policies and then apply them consistently; 1. 
Make judgements and estimates that are reasonable and prudent; 2. 
State whether applicable accounting standards have been followed, subject to any material departures disclosed 3. 
and explained in the financial statements;
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 4. 
will continue in business.
The Directors confirm that the financial statements comply with the above requirements.
The Directors are responsible for the maintenance and integrity of the Patsystems website. Information published 
on the Internet is accessible in many countries with different legal requirements. Legislation in the United Kingdom 
governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The Directors are responsible for maintaining proper accounting records which disclose with reasonable accuracy  
at any time the financial position of the Company and the Group and enable them to ensure that the financial 
statements comply with the Companies Act 1985 (as amended from time to time). The Directors 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.
For and on behalf of the Board of Patsystems plc.
MARTIN THORNEYCROFT  Registered office: 
Company Secretary   Cottons Centre, 
    Hays Lane,
9 February 2009   London SE1 2QP
continued
Directors’ Report HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
31 Patsystems plc I Annual Report & Accounts 2008
The following statement of corporate governance reflects the position of the Group as at 31 December 2008.
The Board is responsible for the Group’s corporate governance policy and recognises the importance of high 
standards of integrity, and consistently seeks to apply the principles set out in the Combined Code on Corporate 
Governance (the “Code”) to the extent that they are appropriate for, and applicable to, a company of Patsystems’ 
size quoted on the Alternative Investment Market (“AIM”).
DIRECTORS
Details of the dates of appointment and resignation of Directors within the year are shown in the Directors’ Report. 
All Directors are subject to re-election within a three-year period. The roles of the Chairman and Chief Executive are 
separate and have been so throughout the year.
The Non-executive Directors are considered to be ‘independent’ within the definition contained in the Code. The Non-
executive Directors meet, without the presence of the Executive Directors, whenever it is appropriate for them to do so.
All the Directors have access to the advice of the Company Secretary and may, in furtherance of their duties, take 
independent legal and financial advice at the Company’s expense. They also have access to the minutes of the 
Board, in which any concerns expressed by them regarding matters pertaining to the Group are recorded.
While there is no formal process, the performance and effectiveness of each Director, including the Non-executive 
Directors, is assessed on an on-going basis by the other members of the Board.
BOARD MEETINGS
The Board generally meets monthly and at such other times as required, and receives regular reports on a wide 
range of key issues including operational performance, risk management and corporate strategy.
The Board’s accountability is demonstrated by the adoption of a formal schedule of matters specifically reserved 
to the Board for its decision concerning all key areas across the Group’s activities, thereby ensuring that all major 
decisions affecting the Group are taken at Board level. All the Directors are free to bring any matter to the 
attention of the Board, at any time.
COMMITTEES
The Audit Committee and the combined Remuneration and Nominations Committee meet at least twice a year.
Audit Committee
The Audit Committee is chaired by John Priestley and comprises all the Non-executive Directors. Prior to 
17 April 2008 the Audit Committee was chaired by Richard Last. The external auditors, together with the  
Finance Director and other financial staff are invited to attend these meetings as and when required.
In accordance with its terms of reference the principal function of this committee is to determine the 
appropriateness of accounting policies to be used in the Group’s annual results. In addition the Committee  
is responsible for monitoring the independence of the Group auditors, assessing the Group’s audit arrangements 
and the Group’s system of internal controls, and reviewing the half-yearly and annual results before publication.
Remuneration and Nominations Committee
The Remuneration and Nominations Committee comprises all the Non-executive Directors and is chaired by  
Steve Sparke. Prior to 17 April 2008 the Committee was chaired by John Priestley.
In accordance with its terms of reference the Committee determines the level and make-up of remuneration 
(including bonuses and options) of the Executive Directors and certain senior management. This also includes 
formulation of remuneration policy throughout the Group, embracing both share options and bonuses.
The Committee also evaluates the balance of skills, knowledge and experience on the Board and considers all  
new Board appointments and re-appointments against this evaluation.
The Report of the Board on Directors’ Remuneration and on Group Remuneration Policy giving details of Company 
policy and individual Directors’ remuneration is set out on pages 33 to 36. The remuneration arrangements of the 
Non-executive Directors are determined by the Board as a whole.
The notice period provisions contained in the Directors’ service agreements are summarised on page 35 of these accounts.
Statement of Corporate Governance 32 Patsystems plc I Annual Report & Accounts 2008
Executive Management Committee
The Executive Management Committee (the “EMC”), under the Chairmanship of the Chief Executive, or in his 
absence the Finance Director, meets monthly and is responsible for the day-to-day running of the Group. The 
members of the EMC are the two Executive Directors of the Company, together with the five key business heads 
who are not Directors.
RELATIONS WITH SHAREHOLDERS
The Board welcomes the views of shareholders.
The Annual General Meeting (AGM) is used as an opportunity to communicate with shareholders. All shareholders are 
encouraged to attend the Company’s AGM, in order to take advantage of the opportunity to ask questions of the Directors.
Shareholders may also contact the Company in writing or via its website, which is regularly updated. Additional 
information is supplied through the circulation of the Interim Report and the Annual Report and Accounts. During 
the year the Company issued a series of announcements to the Stock Exchange. The Chief Executive, Finance 
Director and the Chairman from time to time meet individual and institutional shareholders and provide such 
information as is permissible in order to facilitate a better understanding of the Group’s business and operations.
INTERNAL CONTROL
The Board of Directors has overall responsibility both for the Group’s system of internal controls, which includes 
internal financial controls and for reviewing their effectiveness. The Directors recognise that no system of internal 
control can provide absolute assurance. The Group’s systems are designed to manage the risk of failure to achieve 
business objectives and therefore can only provide the Directors with reasonable assurance against material 
misstatement or loss.
The key elements of the Group’s internal control system, which have been operational for the whole of the financial 
year, are as follows:
Management structure 
The Board has overall responsibility for the Group and there is a formal schedule of matters specifically reserved for 
decision by the Board. Each executive Director has been given responsibility for specific aspects of the Group’s affairs. 
Reporting to the Chief Executive, is the EMC which is responsible for the day to day running of the Group’s affairs.
 Monitoring systems used by the Board 
The Board receives regular reports on the financial and business performance of the Group. The Board is 
regularly advised through these reports on the working capital position and financial performance relative to the 
Group’s approved budget.
Internal Audit 
The Board reviews from time to time the need for an Internal Audit function and remains of the opinion that the systems 
of internal financial control are appropriate to the Group’s present activities and that such a function is unnecessary.
GOING CONCERN
The Directors have reasonable expectation that the Company and the Group have adequate resources to continue  
in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis 
in preparing the financial statements.
COMPLIANCE STATEMENT
Corporate Governance procedures are subject to regular review by the Board. Throughout the year the Directors 
believe that the Group has complied with the provisions as set out in Section 1 of the Code, to the extent that  
they are appropriate for, and applicable to, a company of Patsystems’ size quoted on AIM.
For and on behalf of the Board of Patsystems plc.
MARTIN THORNEYCROFT
Company Secretary
9 February 2009
continued
Statement of Corporate Governance HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
33 Patsystems plc I Annual Report & Accounts 2008
REMUNERATION COMMITTEE
The Remuneration Committee, which comprises all of, and only, Non-executive Directors, determines Group 
remuneration policy and the remuneration (including bonuses and options) of Executive Directors and certain 
other senior management.
POLICY ON GROUP REMUNERATION
The Company’s policy is to set the remuneration of senior executives (including Executive Directors) at a level to 
attract and retain executives of appropriate ability and experience to manage the affairs of the Company. This 
approach contains costs, improves employee benefits and increases the Company’s competitiveness in the market 
for scarce skills. In formulating its remuneration policy, the Remuneration Committee is mindful of the competitive 
pressures inherent in a sector that straddles both the software and financial services industries. It is the Company’s 
policy that a significant element of total remuneration is related to the financial performance of the Company. 
Remuneration is reviewed annually.
THE REMUNERATION PACKAGE
The remuneration package comprises base salary and benefits, pension contributions, annual bonus and long-term 
incentive arrangements. All senior employees of the Group (including the Executive Directors) are remunerated 
using the policy described below.
Base salary and benefits
Base salary takes into account the performance of the individual and information from independent sources on 
market levels of remuneration. The Executive Directors basic salaries are reviewed by the Committee prior to the 
beginning of each year. The Executive Directors are also entitled to private medical, death in service, critical illness, 
permanent health insurance and subsidised health club membership.
Pension contributions
The Group operates a defined contribution pension scheme for eligible UK employees. Neither of the Executive 
Directors are members of this scheme; the Executive Directors receive a company contribution to their individual 
pension arrangements.
Annual bonuses
Bonus scheme arrangements are in place for all members of staff, including the Executive Directors. Bonuses for the 
Executive Directors are linked to the performance of the Group and staff bonuses are based on individual performance.
Long-term incentives
Share options
The Group operates two share option plans – an Enterprise Management Incentive Share Option Scheme (EMI) and a 
standard unapproved share option scheme. All senior staff, including the Executive Directors participate in both schemes.
Options awarded under the first of three main grants vested in full in 2006. An aggregate total of 20% of the options 
awarded under the second and third grants of both schemes vested on 14 February 2007 and 16% vested on 11 February 2008. 
Unless these options have been subject to separate vesting criteria agreed by the Remuneration Committee during the 
year, a further 40% will vest on 9 February 2009. The remaining 24% of the options will be carried forward into 
future years and the Remuneration Committee will determine what performance conditions to attach to them in 2009.
The Company has also made a number of special awards under both schemes to Directors and senior employees 
which will vest in between one and three years from the date of grant subject to certain performance conditions. 
The Board is currently reviewing the ongoing effectiveness of its incentive schemes.
Cash-based long-term incentive scheme
During 2007 the Group introduced a new cash-based long-term incentive scheme (“the Cash Scheme”). The 
maximum conditional award allowable under the three year Cash Scheme is 100% of salary with each award  
vesting no earlier than the third anniversary from date of grant and vesting being subject to achievement of 
performance conditions and continued employment (“the Awards”). When the Awards to the Directors vest, they 
will be expected to use 50% of the net of tax amount to purchase the Company’s shares in the open market until 
such time as a total personal shareholding has been achieved which is equivalent to 100% of base salary. 
Report of the Board on Directors’ Remuneration 
and on Group Remuneration Policy 34 Patsystems plc I Annual Report & Accounts 2008
In the event of a change of control (eg a take-over) the Awards will vest provided the Remuneration Committee 
is satisfied that it is fair and reasonable for them to do so (eg. that the terms of a take-over implicitly reflect 
prospective performance on a scale that would have resulted in full vesting).
The performance conditions attached to the Awards require adjusted fully diluted pre-deferred tax earnings per 
share (EPS) growth from the 2006 financial year to the 2009 financial year of between 10% compound per annum 
to 30% compound per annum for between 30% and 100% of the Award to vest. The Awards vest on a straight line 
basis between minimum and maximum thresholds. 
DIRECTORS’ EMOLUMENTS
Salary/fees
 
£
Bonus
£
Benefits in kind
£
Total 
2008
£
Total 
2007
£
Executive Directors
D Webber 236,900 225,414 4,763 467,077 292,072
M Thorneycroft 149,750 141,586 2,576 293,912 185,480
Non-executive Directors
R Last 40,842 – – 40,842 30,000
J Priestley 30,000 – – 30,000 29,167
S Sparke 30,900 – – 30,900 30,000
S Millman* 24,590 – – 24,590 45,000
S Douglas Mann** – – – – 14,167
512,982 367,000 7,339 887,321 625,886
* S Millman resigned on 17 April 2008.
** S Douglas-Mann resigned on 19 April 2007.
The increase in the bonuses paid in the year is as a result of (i) the improvement in the Group’s adjusted profit and 
(ii) the waiver of part of the 2007 bonus entitlement.
PENSIONS
The Group operates a defined contribution pension scheme for eligible UK employees. The Executive Directors that 
served during the year were not members of this scheme. The following contributions to their private pensions 
were charged to the income statement:
 
2008
£
 
2007
£
D Webber 24,600 23,000
M Thorneycroft 15,509 14,500
40,109 37,500
continued
Report of the Board on Directors’ Remuneration 
and on Group Remuneration Policy HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
35 Patsystems plc I Annual Report & Accounts 2008
DIRECTORS’ CONTRACTUAL TERMS
D Webber M Thorneycroft R Last J Priestley S Sparke
Date appointed 03-Jan-06 05-Jul-04 17-Feb-03 01-Jan-07 29-Sept-06
Service Contract * Yes Yes No No No
Notice period
– by company 12 months 6 months 3 months 3 months 3 months
– by Director 12 months 6 months 3 months 3 months 3 months
Benefits Death in service Death in service – – –
Pension 10% 10% – – –
* All the Non-executive Directors are engaged under “letters of appointment”.
In the event that an offer for the entire issued share capital of Patsystems plc becomes wholly unconditional,  
the Executive and Non-executive Directors are entitled to 12 months notice.
DIRECTORS’ SHARE OPTIONS
Scheme type Exercise price
Outstanding 
options at  
31 December 2008 
and 2007 Exercise date Expiry date
D Webber EMI 13.75p 727,272 Note 1 14.02.16
Unapproved 13.75p 3,272,728 Note 2 14.02.16
Unapproved 29.00p 1,000,000 Note 3 19.04.17
5,000,000
M Thorneycroft EMI 15.25p 655,737 Note 4 30.07.14
Unapproved 15.25p 344,263 Note 5 30.07.14
Unapproved 18.00p 500,000 Note 5 17.03.15
1,500,000
The IFRS 2 charge to the income statement in relation to these options was £171,000.
Note 1: These options were granted under a special award of the Enterprise Management Incentive (EMI) Scheme. 
These options can be exercised after a period of three years after the date of the grant. Two thirds of these 
options can be exercised after a period of three years after the date of the grant but subject to the Group 
achieving growth in adjusted fully diluted pre-deferred tax EPS from the 2005 financial year to the 2008 
financial year of 10% compound per annum.
Note 2: These options were granted under special awards of Part B (Inland Revenue Unapproved) of the Patsystems 
plc 2003 Share Option Scheme, exercise conditions are as per note 1.
Note 3: These options were granted under special awards of Part B (Inland Revenue Unapproved) of the Patsystems 
plc 2003 Share Option Scheme. These options can be exercised after a period of three years after the date 
of grant but subject to the Group achieving growth in adjusted fully diluted pre-deferred tax EPS from the 
2006 financial year to the 2009 financial year of 10% compound per annum. 36 Patsystems plc I Annual Report & Accounts 2008
Note 4: Options were granted under the second and third awards of the Enterprise Management Incentive (EMI) 
Scheme. 20% of these options awarded under the second and third grants of both schemes vested on  
14 February 2007 and 16% vested on 11 February 2008. A further 40% will vest on 9 February 2009.  
 The remaining 24% of the options will be carried forward into future years and the Remuneration 
Committee will determine what performance conditions to attach to them in 2009.
Note 5: These options were granted under the second and third awards of Part B (Inland Revenue Unapproved)  
of the Patsystems plc 2003 Share Option Scheme. These options have all vested in 2008.
The mid-market price of the Company’s shares at the end of the financial year was 15p, and the range of market 
prices during the year was 12p to 29p.
DIRECTORS’ AWARDS UNDER THE CASH-BASED LONG-TERM INCENTIVE SCHEME
Date of award Maximum amount 
of Award
£
Vesting date
D Webber 19.04.07 130,000 19.04.10
M Thorneycroft 19.04.07 85,000 19.04.10
The performance conditions attached to the Awards require adjusted fully diluted pre-deferred tax EPS growth 
from the 2006 financial year to the 2009 financial year of between 10% compound per annum to 30% compound 
per annum for between 30% and 100% of the Award to vest. The Awards vest on a straight line basis between 
minimum and maximum thresholds. 
When the Awards to the Directors vest, they will be expected, to use 50% of the net of tax amount to purchase 
the Company’s shares in the open market until such time as a total personal shareholding has been achieved which 
is equivalent to 100% of base salary. In the event of a change of control (e.g. a take-over) the Awards will vest 
provided the Remuneration Committee is satisfied that it is fair and reasonable for them to do so (e.g. that the 
terms of a take-over implicitly reflect prospective performance on a scale that would have resulted in full vesting).
The charge to the income statement for the year ended 31 December 2008 in relation to these Awards was £36,000.
STEVE SPARKE
Chairman, Remuneration Committee
9 February 2009
continued
Report of the Board on Directors’ Remuneration 
and on Group Remuneration Policy HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
37 Patsystems plc I Annual Report & Accounts 2008
We have audited the Group financial statements of Patsystems plc for the year ended 31 December 2008 which 
comprise the Consolidated income statement, the Consolidated balance sheet, the Consolidated cash flow 
statement, the Consolidated statement of recognised income and expense and the related notes. These Group 
financial statements have been prepared under the accounting policies set out therein.
We have reported separately on the parent company financial statements of Patsystems plc for the year ended 
31 December 2008.
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS
The directors’ responsibilities for preparing the Annual Report and the Group financial statements in accordance 
with applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union are 
set out in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the Group financial statements in accordance with relevant legal and regulatory requirements 
and International Standards on Auditing (UK and Ireland). This report, including the opinion, has been prepared for and 
only for the company’s members as a body in accordance with Section 235 of the Companies Act 1985 and for no other 
purpose. We do not, in giving this opinion, 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.
We report to you our opinion as to whether the Group financial statements give a true and fair view and whether 
the Group financial statements have been 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 Group 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 also report to you whether in our opinion the information given in the Directors’ report is consistent with the 
audited Group financial statements. The information given in the Directors’ report includes that specific information 
presented in the Chairman’s Statement, Chief Executive’s Report, and Finance Director’s Review that is cross referred 
from the review of business section of the Directors’ report.
We read other information contained in the Annual Report and consider whether it is consistent with the audited 
Group financial statements. The other information comprises only the Directors’ Report, the Chairman’s Statement, 
the Chief Executive’s Report, the Finance Director’s Review, the Statement of Corporate Governance and the Report 
of the Board on Directors’ Remuneration and on Group Remuneration Policy. We consider the implications for our 
report if we become aware of any apparent misstatements or material inconsistencies with the Group financial 
statements. Our responsibilities do not extend to any other information.
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 Group financial statements. It also includes an assessment of the significant estimates 
and judgments made by the directors in the preparation of the Group 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 Group 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 Group financial statements.
Independent Auditors’ Report to the Members of Patsystems plc 38 Patsystems plc I Annual Report & Accounts 2008
Independent Auditors’ Report to the Members of Patsystems plc
OPINION
In our opinion:
The Group financial statements give a true and fair view, in accordance with IFRSs as adopted by the European Union,  
of the state of the Group’s affairs as at 31 December 2008 and of its profit and cash flows for the year then ended;
the Group 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 Group financial statements. 
PRICEWATERHOUSECOOPERS LLP
Chartered Accountants and Registered Auditors
London
9 February 2009
continued HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
39 Patsystems plc I Annual Report & Accounts 2008
Notes 2008
£’000
2007
£’000
Revenue 4 19,627 16,962
Cost of sales  (485) (336)
Gross profit 19,142 16,626
Operating expenses  (17,203) (14,539)
Operating profit 5 1,939 2,087
Finance income 7 127 101
Profit on ordinary activities before taxation 2,066 2,188
Current taxation charge (152) (36)
Deferred taxation charge (1,298) (308)
Taxation – total 8 (1,450) (344)
Profit for the year attributable to equity holders of the Company  616 1,844
Earnings per ordinary share 10
 – basic 0.3p 1.1p
 – diluted 0.3p 1.0p
The income statement has been prepared on the basis that all operations are continuing operations. 
Consolidated Income Statement 
for the year ended 31 December 2008 
Consolidated Income Statement 
for the year ended 31 December 2008 
2008
£’000
2007
£’000
Profit for the year 616 1,844
Foreign exchange adjustment on foreign currency net investments 628 144
Total recognised income for the year 1,244 1,988 40 Patsystems plc I Annual Report & Accounts 2008
Consolidated Balance Sheet
Notes
2008
£’000
2007 
Restated*
£’000
ASSETS
Non-current assets
Goodwill 12 3,251 3,237
Intangible assets 13 3,527 3,674
Property, plant and equipment 14 516 752
Deferred tax assets 15 5,877 6,673
Trade and other receivables 17 519 371
  13,690 14,707
Current assets
Inventories 16 3 12
Trade and other receivables 17 6,476 4,366
Financial assets – derivative financial instruments 27 – 30
Income tax 3 40
Cash and cash equivalents 18 5,929 3,191
  12,411 7,639
LIABILITIES
Current liabilities
Trade and other payables 19 (4,923) (3,169)
Financial liabilities – derivative financial instruments 27 (853) –
Current income tax liabilities – (20)
Contingent consideration – (290)
Provisions 20 (82) –
  (5,858) (3,479)
Net current assets 6,553 4,160
Non-current liabilities
Trade and other payables 19 (50) (44)
Provisions 20 (139) (129)
  (189) (173)
Net assets 20,054 18,694
EQUITY
Capital and reserves attributable to equity holders of the Company
Share capital 22    1,795 1,775
Share premium account 24    3,869 3,792
Other reserves 24    20,862 20,570
Retained earnings 24 (6,472) (7,443)
Total equity 25    20,054 18,694
* see note 1
The financial statements on pages 39 to 74 were approved by the Board of Directors on 9 February 2009.
DAVID WEBBER    MARTIN THORNEYCROFT
Chief Executive Officer   Finance Director
at 31 December 2008  HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
41 Patsystems plc I Annual Report & Accounts 2008
2008
£’000
2007
£’000
Cash flows from operating activities
Cash flows from operations 3,556 2,647
Interest received 127 101
Tax paid (135) (157)
Net cash flows from operating activities 3,548 2,591
Cash from investing activities
Purchase of intangible assets (864) (1,792)
Purchase of property, plant and equipment (126) (423)
Net cash flows used in investing activities (990) (2,215)
Cash flows from financing activities
Net proceeds from issue of ordinary share capital 86 112
Dividends paid to company’s shareholders (602) (693)
Net cash flows used in financing activities (516) (581)
Net increase/(decrease) in cash and cash equivalents 2,042 (205)
Cash and cash equivalents at beginning of the year 3,191 3,251
Exchange gains on cash and cash equivalents 696 145
Cash and cash equivalents at end of the year 5,929 3,191
2008
£’000
2007
£’000
Net profit 616 1,844
Tax 1,450 344
Depreciation of property, plant and equipment 409 425
Amortisation of intangible assets 1,014 668
Share compensation expense 329 210
Finance income (127) (101)
Decrease in inventories 9 176
Increase in trade and other receivables (1,487) (716)
Decrease in financial assets and liabilities 883 97
Increase/(decrease) in trade and other payables 368 (395)
Increase in provisions 92 95
Cash flows from operating activities 3,556 2,647
MATERIAL NON-CASh TRANSACTIONS
During the year the Group issued 1,092,240 ordinary shares of 1p each with a market value of £303,100 in final 
settlement of the consideration for the acquisition of Tamesis Limited, a subsidiary purchased in 2005. These 
transactions do not have an effect on the cash flows of the Group.
Consolidated Cash Flow Statement
for the year ended 31 December 2008 
Reconciliation of Net Profit to Net Cash Flows  
from Operating Activities Notes to the Financial Statements
42 Patsystems plc I Annual Report & Accounts 2008
1. ACCOUNTINg POLICIES
The principal accounting policies applied in the preparation of these consolidated financial statements are set 
out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Restatements:
The 2007 comparatives have been restated as the Group has now taken advantage of merger relief.  
As a result the premium on the shares, of £3,222,000, issued in respect of the acquisition of Tamesis in  
2007 have now been included in the other reserve rather than the share premium account as previously 
disclosed. This has resulted in the restatement as detailed below.
Share premium £’000
At 31 December 2007 – as previously reported 7,014
Adjustment (3,222)
At 31 December 2007 – as restated 3,792
Other reserve £’000
At 31 December 2007 – as previously reported 17,348
Adjustment 3,222
At 31 December 2007 – as restated 20,570
In addition £71,000 relating to the cash-based long-term incentive scheme has been reclassified from ‘trade and 
other payables’ to ‘provisions’ in the 2007 comparatives to more accurately reflect the nature of this balance.
1.1 Accounting convention and basis of preparation
These financial statements have been prepared in accordance with International Financial Reporting 
Standards (IFRS) and IFRIC interpretations endorsed by the European Union (EU) and with those parts of the 
Companies Act 1985/2006 applicable to companies reporting under IFRS. 
The results and net assets of subsidiary undertakings acquired are included in the consolidated income 
statement and consolidated balance sheet using the acquisition method of accounting from the effective 
date of acquisition.
These consolidated financial statements have been prepared under the historical cost convention, with 
the exception of financial instruments which are stated in accordance with IAS 39 Financial Instruments: 
Recognition and Measurement.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting 
estimates. It also requires management to exercise its judgement in the process of applying the Group’s 
accounting policies. The areas involving a high degree of judgement or complexity, or areas where 
assumptions and estimates are significant to the consolidated financial statements, are disclosed in note 2.
Standards, amendments and interpretations effective in 2008
IFRIC 11, ‘IFRS 2 – Group and treasury share transactions’, provides guidance on whether share-based  
transactions involving treasury shares or involving Group entities (for example, options over a parent’s 
shares) should be accounted for as equity-settled or cash-settled share-based payment transactions in the 
stand-alone accounts of the parent and Group companies. This interpretation does not have an impact 
on the Group’s financial statements. The company’s accounting policy for share-based compensation 
arrangements is already in compliance with the interpretation.  HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
43 Patsystems plc I Annual Report & Accounts 2008
1.1 ACCOUNTING CONVENTION AND BASIS OF PREPARATION continued Standards, amendments and interpretations effective in 2008 but not relevant for the  
Group’s operations
The following standards, amendments and interpretations to published standards are mandatory for 
accounting periods beginning on or after 1 January 2008 but they are not relevant to the Group’s operations:
IFRIC 12, ‘Service concession arrangements’;  
IFRIC 13, ‘Customer loyalty programmes; and 
IFRIC 14, ‘IAS 19 – The limit on a defined benefit asset, minimum funding requirements and  
their interaction’.
Standards, amendments and interpretations to existing standards that are not yet effective and have 
not been adopted early by the Group
The following standards, amendments and interpretations to existing standards have been published and are 
mandatory for the Group’s accounting periods beginning on or after 1 January 2009 or later periods, but the 
Group has not early adopted them:
IFRS 8, ‘Operating Segments’ is effective for accounting periods commencing on or after 1 January 2009  
and introduces new requirements for determining, quantifying and disclosing information relating to the 
business segments in which Group companies operate. A segmental analysis of the Group’s operations 
is given in Note 4 to these financial statements in accordance with the requirements of IAS 14. IFRS 8 
will replace IAS 14. The Group will apply IFRS 8 from 1 January 2009. The expected impact is still being 
assessed in detail by management, but it appears likely that the number of reportable segments, as well 
as the manner in which the segments are reported, will change to be consistent with the Group’s internal 
management reporting. 
 IAS 1 (revised), ‘Presentation of financial statements’ (effective from 1 January 2009). The standard  
is still subject to endorsement by the EU. The Group and company will apply IAS 1 (revised) from 
1 January 2009, subject to endorsement by the EU. It is likely that both the income statement and 
statement of comprehensive income will be presented as performance statements.
 IFRS 3 (revised), ‘Business combinations’ (effective from 1 July 2009). The Group will apply IFRS 3 (revised)  
prospectively to all business combinations from 1 January 2010, subject to endorsement by the EU.
 IFRS 5 (amendment), ‘Non-current assets held-for-sale and discontinued operations’, (and consequential  
amendment to IFRS 1, ‘First-time adoption’) (effective from 1 July 2009). The Group will apply the IFRS 5 
(amendment) prospectively to all partial disposals of subsidiaries from 1 January 2010, subject  
to endorsement by the EU.
 IAS 36 (amendment), ‘Impairment of assets’, (effective from 1 January 2009). The Group and company will  
apply the IAS 36 (amendment) and provide the required disclosure where applicable for impairment tests 
from 1 January 2009, subject to endorsement by the EU.
 IAS 38 (amendment), ‘Intangible assets’, (effective from 1 January 2009). The Group will apply the IAS 38  
(amendment) from 1 January 2009, subject to endorsement by the EU.
The following amendments are not expected to have a material impact on the Group’s financial statements:
 IFRS 2 (amendment), ‘Share-based payment’  
 IFRS 1 (amendment), ‘First time adoption of IFRS’, and IAS 27, ‘Consolidated and separate   
financial statements’, 
 IAS 19 (amendment), ‘Employee benefits’, (effective from 1 January 2009). The amendment is part of the  
IASB’s annual improvements project published in May 2008. 
 IAS 39 (amendment), ‘Financial instruments: Recognition and measurement’ (effective from 1 January 2009).   Notes to the Financial Statements
44 Patsystems plc I Annual Report & Accounts 2008
1. ACCOUNTINg POLICIES continued 1.1 ACCOUNTING CONVENTION AND BASIS OF PREPARATION continued IAS 1 (amendment), ‘Presentation of financial statements’, (effective from 1 January 2009). The  
amendment is part of the IASB’s annual improvements project published in May 2008. 
IFRIC 16, ‘Hedges of a net investment in a foreign operation’ (effective from 1 October 2008).  
 There are a number of further minor amendments to IFRS 7, ‘Financial instruments: Disclosures’, IAS 8,  
‘Accounting policies, changes in accounting estimates and errors’, IAS 10, ‘Events after the reporting 
period’, IAS 18, ‘Revenue’, and IAS 34, ‘Interim financial reporting’, which are part of the IASB’s annual 
improvements project published in May 2008 (not addressed above). The amendments are unlikely to 
have an impact on the Group’s accounts and have, therefore, not been analysed in detail.
Interpretations to existing standards that are not yet effective and not relevant for the  
Group’s operations 
The following interpretations and amendments to existing standards have been published and are 
mandatory for the Group’s accounting periods beginning on or after 1 January 2009 or later periods but are 
not relevant for the Group’s operation.
IAS 23 (amendment), ‘Borrowing costs’ (effective from 1 January 2009).  
IAS 27 (revised), ‘Consolidated and separate financial statements’, (effective from 1 July 2009). 
 IAS 28 (amendment), ‘Investments in associates’ (and consequential amendments to IAS 32, ‘Financial  
Instruments: Presentation’, and IFRS 7, ‘Financial instruments: Disclosures’) (effective from 1 January 2009). 
 IAS 32 (amendment), ‘Financial instruments: Presentation’, and IAS 1 (amendment), ‘Presentation of  
financial statements’ – ‘Puttable financial instruments and obligations arising on liquidation’ (effective 
from 1 January 2009). 
 IFRIC 13, ‘Customer loyalty programmes’ (effective from1 July 2008).  
 IAS 16 (amendment), ‘Property, plant and equipment’ (and consequential amendment to IAS 7,  
‘Statement of cash flows’) (effective from 1 January 2009). 
 IAS 28 (amendment), ‘Investments in associates’ (and consequential amendments to IAS 32, ‘Financial  
Instruments: Presentation’ and IFRS 7, ‘Financial instruments: Disclosures’) (effective from 1 January 2009). 
 IAS 29 (amendment), ‘Financial reporting in hyperinflationary economies’ (effective from 1 January 2009).  
 IAS 31 (amendment), ‘Interests in joint ventures’, (and consequential amendments to IAS 32 and IFRS 7)  
(effective from 1 January 2009). 
 IAS 38 (amendment), ‘Intangible assets’ (effective from 1 January 2009).  
 IAS 40 (amendment), ‘Investment property’ (and consequential amendments to IAS 16) (effective from  
1 January 2009.
 IAS 41 (amendment), ‘Agriculture’ (effective from 1 January 2009).  
 IAS 20 (amendment), ‘Accounting for government grants and disclosure of government assistance’  
(effective from 1 January 2009). 
 IFRIC 15, ‘Agreements for construction of real estates’ (effective from 1 January 2009). 
 Minor amendments to IAS 20 ‘Accounting for government grants and disclosure of government  
assistance’, and IAS 29, ‘Financial reporting in hyperinflationary economies’, IAS 40, ‘Investment property’, 
and IAS 41, ‘Agriculture’.
continued HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
45 Patsystems plc I Annual Report & Accounts 2008
1.2 FOREIGN CURRENCY TRANSLATION
Functional and presentation currency
Items included in the financial statements of each of the Group entities are measured using the currency of 
the primary economic environment in which the entity operates (the ‘functional currency’). The consolidated 
financial statements are presented in Pounds Sterling, which is the parent Company’s functional and 
presentation currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing 
at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of 
such transactions and from the translation at year-end exchange rates of monetary assets and liabilities 
denominated in foreign currencies are recognised in the income statement.
Group companies
The results and financial position of all Group entities (none of which has the currency of a hyper-
inflationary economy) that have a functional currency different from the presentation currency are 
translated into the presentation currency as follows:
assets and liabilities for each balance sheet presented are translated at the closing rate at the date   
of that balance sheet;
income and expenses for each income statement are translated at average exchange rates; and 
all resulting exchange differences are recognised in reserves. 
1.3 GOODWILL
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the 
net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill is tested annually 
for impairment and carried at cost less accumulated impairment losses. The carrying value of capitalised 
goodwill is also reviewed if events or changes in circumstances indicate a potential impairment. Any 
impairment is charged to the income statement. Gains and losses on the disposal of an entity include the 
carrying amount of goodwill relating to the entity sold. Goodwill is allocated to cash-generating units for 
the purpose of impairment testing.
1.4 INTANGIBLE ASSETS 
Computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the 
specific software. The software acquired in the Tamesis acquisition was capitalised at fair value. These costs 
are amortised over their estimated useful lives (three years). Costs associated with maintaining computer 
software programmes are recognised as an expense as incurred.
1.5 IMPAIRMENT OF ASSETS
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for 
impairment and whenever events or changes in circumstance indicate that the carrying value may not be 
recoverable. Assets that are subject to amortisation are tested for impairment whenever events or changes 
in circumstance indicate that the carrying value may not be recoverable. An impairment loss is recognised for 
the amount by which the assets carrying value exceeds its recoverable amount. The recoverable amount is the 
higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets 
are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units).
1.6 RESEARCH AND DEVELOPMENT
Research expenditure is recognised as an expense as incurred. Costs directly attributable to development are 
capitalised as intangible assets when it is probable that the development will provide economic benefits, 
considering its commercial and technical feasibility, resources are available for the development and costs can 
be measured reliably. Other development expenditures are recognised as costs when incurred. Capitalised 
product development is amortised from completion of development over periods of between 3 and 5 years. Notes to the Financial Statements
46 Patsystems plc I Annual Report & Accounts 2008
1.7 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is shown at cost less subsequent depreciation. Cost includes expenditure that 
is directly attributable to the acquisition of the items.
Depreciation on assets is calculated using the straight-line method to reduce the cost of each asset to its 
estimated residual value over its estimated useful life, as follows:
Leasehold improvements – over the period of the lease 
Plant and equipment – over 3 years 
Office furniture, fixtures and fittings – over 4 years 
1.8 CURRENT AND DEFERRED INCOME TAxES
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted 
at the balance sheet date in the countries in which the Company and its subsidiaries operate and generate 
taxable income. Management periodically evaluates positions taken in tax returns with respect to 
situations in which applicable tax regulations are subject to interpretation and establishes provisions where 
appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between 
the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. The 
deferred income tax is not accounted for on the initial recognition of an asset or liability in a transaction, 
other than a business combination, that at the time of the transaction affects neither accounting nor taxable 
profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or 
substantially enacted by the balance sheet date and are expected to apply when the related deferred income 
tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profits will be 
available against which the temporary differences can be utilised.
Deferred income tax is provided on temporary differences arising on investments in subsidiaries except 
where the timing of the reversal of the temporary difference is controlled by the Group and it is probable 
that the temporary difference will not reverse in the foreseeable future.
Deferred income tax balances are not discounted.
1.9 INVENTORIES
Inventories are stated at the lower of cost and net realisable value. 
1.10 FINANCIAL ASSETS
The Group classifies its financial assets between “assets at fair value through profit or loss” and “loans 
and receivables”. The classification depends on the purpose for which the financial assets were acquired. 
Management determines the classification of its financial assets at initial recognition. 
Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset 
is classified in this category if acquired principally for the purpose of selling in the short term. Derivatives 
are also categorised as held for trading unless they are designated as hedges. Assets in this category are 
classified as current assets.
Purchases and sales of financial assets are recognised on the trade-date – the date on which the Group 
commits to purchase or sell the asset. Financial assets are initially recognised at fair value and transaction 
costs are expensed in the income statement. Financial assets are derecognised when the rights to receive 
cash flows from the investments have expired or have been transferred and the Group has transferred 
substantially all risks and rewards of ownership. 
Gains or losses arising from changes in the fair value of the financial assets are presented in the income 
statement in the period in which they arise. 
The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or a 
Group of financial assets is impaired. Impairment testing of trade receivables is described in note 1.12.
continued HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
47 Patsystems plc I Annual Report & Accounts 2008
1.11 ACCOUNTING FOR DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
The Group enters into forward currency contracts and options in order to hedge against the cash flow  
risk of foreign currency exchange rate movements. Derivatives are initially recognised at fair value on  
the date the contract is entered into and subsequently re-measured in future periods at their fair value.  
The movement in fair values is taken to the income statement.
The fair value of forward contracts is determined using forward exchange market rates at the balance sheet date.
1.12 TRADE RECEIVABLES
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the 
effective interest method, less provision for impairment. A provision for impairment of trade receivables is 
established when there is objective evidence that the Group will not be able to collect all amounts due under the 
original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will 
enter bankruptcy or financial reorganisation and default or delinquency in payments are considered indicators 
that the trade receivable may be impaired. The amount of the provision is the difference between the asset’s 
carrying amount and the present value of estimated future cash flows, discounted at the original effective 
interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the 
amount of the loss is recognised in the income statement within “operating expenses”. When a trade receivable 
is uncollectible, it is written off against the allowance account for trade receivables. Subsequent recoveries 
of amounts previously written off are credited against “operating expenses” in the income statement. 
1.13 CASH AND CASH EQUIVALENTS
Cash and cash equivalents includes cash in hand, cash in transit, deposits held at call with banks, other short 
term highly liquid investments with original maturities of three months or less, and bank overdrafts.
Cash in transit represents the net amount of monies due to Group companies that have been paid to 
independent clearing agents and are pending release by overseas withholding tax authorities.
1.14 TRADE PAYABLES
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the 
effective interest method.
1.15 LEASES
Costs in respect of operating leases are charged to the income statement on a straight line basis over 
the lease term. 
1.16 PROVISIONS
Provisions are measured at the present value of the expenditures expected to be required to settle the 
obligation using a pre-tax rate that reflects current market assessments of the time value of money and the 
risks specific to the obligation. 
1.17 SEGMENT REPORTING
A business segment is a Group of assets and operations engaged in providing products or services that 
are subject to risks and returns that are different from those of other business segments. A geographical 
segment is engaged in providing products or services within a particular economic environment that are 
subject to risks and returns that are different from those of other economic environments.
All direct costs of a segment are included in that segment’s result.  Notes to the Financial Statements
48 Patsystems plc I Annual Report & Accounts 2008
1.18 REVENUE RECOGNITION
Revenue comprises the fair value of the sale of goods and services, net of value added tax.
Revenue is recognised as follows:
Non-refundable installation income, consultancy and software development projects: revenue is taken   
to the income statement in line with the performance of the work. 
Monthly end user or lot charges, monthly maintenance and income on any rentals – these are credited   
to the income statement in the period in which the service is provided.
Income from perpetual licences – this is recognised in the income statement when the Company has  
fulfilled all of its obligations in accordance with the terms for acceptance set out in the customer 
contracts and the Company has reasonable assurance over the collectability of the debt.
1.19 EMPLOYEE BENEFITS
Pension obligations
The Group operates a defined contribution scheme which is open to UK and US employees.
The Group pays contributions to publicly or privately administered pension insurance schemes on a mandatory, 
contractual or voluntary basis. The Group has no further payment obligations once the contributions have 
been paid. The contributions are recognised as employee benefit expense when they are due.
Termination benefits
Termination benefits are payable when employment is terminated before the normal retirement date,  
or when an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises 
termination benefits when it is demonstrably committed to either: terminating the employment of current 
employees according to a detailed formal plan without possibility of withdrawal; or providing termination 
benefits as a result of an offer made to encourage voluntary redundancy.
Share-based benefits
The Group operates two share options schemes; the Enterprise Management Incentive Scheme and the 2003 
Share Option Scheme (Inland Revenue unapproved). 
The fair value of options is recognised as an employee benefit expense with a corresponding increase in 
reserves over the vesting period. The proceeds received net of any directly attributable transaction costs are 
credited to share capital (nominal value) and share premium when the options are exercised. A detailed 
explanation of how the fair values have been derived can be seen in note 23.
Cash-based long-term incentive benefits
The Group has introduced a cash-based long-term incentive scheme (“the Cash Scheme”) in 2007 and 
awards were granted to the Executive Directors and to certain senior and key employees. These awards 
are conditional upon the rate of growth in fully diluted pre-deferred tax EPS over the period from 
31 December 2006 to 31 December 2009. The cost of these awards has been estimated based on projected  
EPS growth and is recognised as an employee benefit expense on a straight line basis over the period from 
grant to 31 December 2009.
Other benefits
UK employees are also entitled to private medical, death in service insurance, critical illness and  
long-term sickness insurance and subsidised health club membership. The costs of providing these  
benefits are recognised as employee benefit expense as they fall due.
This year the Group has introduced a flexible benefits scheme that enables employees to tailor their total 
remuneration packages to meet their own individual lifestyle and family requirements. 
1.20 DIVIDEND DISTRIBUTIONS 
Final dividend distributions to the Company’s shareholders are recognised as liabilities in the Group’s 
financial statements in the period in which the dividends are approved by the Company’s shareholders. 
Interim dividend distributions to the Company’s shareholders are recognised as liabilities in the Group’s 
financial statements when paid.
continued HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
49 Patsystems plc I Annual Report & Accounts 2008
2. CRITICAL ACCOUNTINg ESTIMATES AND JUDgEMENTS
Estimates and judgements are continually evaluated and are based on historical experience and other 
factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions regarding the future. The resulting accounting estimates will, 
by definition, seldom equal the related actual results. The estimates and assumptions that have a significant 
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next 
financial year are the assumptions used for recognising the deferred tax asset detailed in note 15.
The Group has also applied judgement in assessing the following areas:
IRFS 2 share based payment charge and the provision for the cash-based long-term incentive scheme,  
where judgement has been applied as to the number of awards expected to vest.
Capitalisation of research and development costs. 
Impairment reviews for intangible assets. 
3. FINANCIAL RISk MANAgEMENT
The Group’s activities expose it to a variety of financial risks and it has developed and operates an overall 
risk management programme that recognises the unpredictability of financial markets and seeks to minimise 
potential adverse effects on the Group’s financial performance. 
Financial risk management is under the control of the Finance Director and is carried out centrally for the 
Group in compliance with policies approved and monitored by the full Board. The Board regularly reviews 
the effectiveness of these policies examining specific areas including foreign exchange risk, interest rate risk, 
credit risk and the extent to which financial instruments are being used to hedge certain risk exposures. 
3.1 MARKET RISK 
The principal market risk to which the the Group is exposed is foreign currency risk on sales, purchases and 
cash balances that are denominated in a currency other than Sterling. The principal currency giving rise 
to this risk is the US dollar. Patsystems’ policy is to carry forward cover for 75% of US$/£ net anticipated 
exposure for 12 months forward. Forward cover is achieved through a mixture of forward contracts and 
options. This policy has remained unchanged throughout both 2008 and 2007 although the level of cover 
and the exposure to risks on other foreign currencies are kept under regular review.
The average US$/UK£ exchange rate used in the 2008 income statement was 1.84 (2007: 2.01). The average 
rate of the hedges in place at 31 December 2008 for 2009 was 1.77 (2007 for 2008: 1.99). The fair value of 
these hedges is recognised as a financial liability of £853,000 (2007: asset £30,000) on the Group balance 
sheet at the year end.
The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency 
translation risk. This exposure is minimised by a Group policy requiring individual subsidiaries to remit any surplus 
funds to the parent company to facilitate central management as set out above and to enable each individual 
subsidiary to match remaining assets and liabilities denominated in their specific functional currencies.
During the year ended 31 December 2008 the US$/UK£ exchange rate fluctuated between 1.45 and 1.99 
(2007 between 1.96 and 2.07). At 31 December 2008, if the US$ had weakened/strengthened by 20% against 
the UK£ with all other variables held constant, post tax profit for the year would have been £647,000 
(2007: £571,000) lower/higher, mainly as a result of foreign exchange gains/losses on translation of US$ 
denominated trade receivables.
The Group is also exposed to interest rate risks on the fair values of the hedging instruments that it holds 
and on the cash flows arising from any interest bearing cash deposits. These assets are regularly realised to 
settle trade and other payables as part of the Group’s management of its liquidity risks. The Group has no 
material borrowings and accordingly, exposures to interest rate risks are not regarded as significant. Notes to the Financial Statements
50 Patsystems plc I Annual Report & Accounts 2008
3.2  CREDIT RISK 
Credit risk arises from cash and cash equivalents and from credit exposures to the Group’s customers, 
including outstanding receivables and committed transactions. Credit risk is managed centrally with regular 
reports of exposures reviewed by the Board. The Group does not set individual credit limits but will seek 
to ensure that counterparties enter into legally enforceable contracts that include settlement terms that 
demonstrate the counterparties’ commitment to the transaction and minimise this risk exposure. 
The Board does not assess the credit quality of financial assets by reference to external credit ratings, but will 
regularly examine the ageing of financial assets and individual counterparty historic default rates. An aged 
analysis of trade receivables at 31 December 2008 is set out in note 17. 
3.3  LIQUIDITY RISK 
The Group has no borrowings or committed credit lines and its liquidity management policy is carried out 
at a local level and involves projecting cash flows in major currencies and considering the levels of liquid 
assets necessary to meet these. Requirements are overseen by the Board with Group levels of cash and cash 
equivalents reviewed on a monthly basis. A maturity analysis of trade and other payables is shown in note 19.
3.4  CAPITAL RISK MANAGEMENT
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going 
concern in order to provide returns for shareholders and benefits for other stakeholders. Consistent with others 
in the industry and of its size, the Group believes that an optimum capital structure is currently achieved entirely 
through equity and with no net debt. Total equity at 31 December 2008 was £20,054,000 (2007: £18,694,000).
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to 
shareholders, return capital to shareholders, issue new shares or raise future funds through debt.
continued HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
51 Patsystems plc I Annual Report & Accounts 2008
4. SEgMENTAL ANALYSIS
The Group operates in one business segment; that of the supply of software to financial institutions. The 
operations are monitored by the geographical regions of Europe, North America and Asia Pacific.
2008
Europe
£’000
North America
£’000
Asia Pacific
£’000
Total
£’000
Revenue by origin 6,873 7,591 5,163 19,627
Revenue by destination 6,932 7,301 5,394 19,627
Depreciation and amortisation 1,349 27 47 1,423
Operating profit 806 851 282 1,939
Finance income 97 18 12 127
Profit before tax 903 869 294 2,066
Capital expenditure on property, plant 
and equipment 87 17 22 126
Capital expenditure on intangible assets 863 1 – 864
Total assets 19,488 4,202 2,411 26,101
Total liabilities (3,666) (1,727) (654) (6,047)
2007
Europe
£’000
North America
£’000
Asia Pacific
£’000
Total
£’000
Revenue by origin 7,524 6,219 3,219 16,962
Revenue by destination 6,822 6,219 3,921 16,962
Depreciation and amortisation 1,011 33 49 1,093
Operating profit 1,980 16 91 2,087
Finance income – net 25 69 7 101
Profit before tax 2,006 84 98 2,188
Capital expenditure on property, plant 
and equipment 361 12 50 423
Capital expenditure on intangible assets 1,801 5 – 1,806
Total assets 16,942 3,460 1,944 22,346
Total liabilities (2,601) (840) (211) (3,652) Notes to the Financial Statements
52 Patsystems plc I Annual Report & Accounts 2008
5. OPERATINg PROFIT  
Operating profit is stated after charging/(crediting):
2008
£’000
2007
£’000
Staff costs 11,518 10,004
Share compensation expense 329 210
Total staff costs 11,847 10,214
Less: wages and salaries capitalised in accordance with IAS 38 (587) (936)
 11,260 9,278
Depreciation: – owned tangible assets 409 401
 – under finance lease – 24
 – total tangible assets 409 425
Amortisation: – capitalised development costs 623 185
 – other intangible assets 391 483
 – total intangible assets 1,014 668
Operating lease costs: – plant and machinery 39 24
 – other 438 357
 – total operating lease costs 477 381
Foreign exchange  
loss/(gain):
 – movement in fair value of hedging  
    instruments 883 97
 – other exchange gains and losses (678) (87)
 – total foreign exchange loss 205 10
 SERVICES PROVIDED BY THE GROUP’S AUDITOR AND NETWORK FIRMS  
2008
£’000
2007
£’000
Fees payable to the Group’s auditor for the audit of the Group’s annual 
accounts
33   30 
Fees payable to the Group’s auditor and its associates for other services:
– the audit of the Group’s subsidiaries pursuant to legislation   55    50 
– tax services    60    46 
– human resource services   6 – 
All other services   8    7 
  162   133 
continued HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
53 Patsystems plc I Annual Report & Accounts 2008
6. STAFF COSTS
2008
£’000
2007
£’000
Staff costs (including Directors’ emoluments) during the year amounted to:
Wages and salaries 9,898 8,734
Share compensation expense 329 210
Social security costs 928 914
Pension costs 692 356
11,847 10,214
Included in the above wages and salaries is £587,000 (2007: £936,000) in relation to development costs that 
were capitalised in accordance with IAS 38.
The average monthly number of persons (including Directors) employed by the Group during the year, in full 
time equivalents, was:
2008
Number
2007
Number
Sales, account management and marketing 21 19
Customer operations, testing and technical 70 64
Development and product development 44 39
Finance, administration and board 18 19
153 141
Details of the emoluments of the Directors are contained in the Report of the Board on Directors’ 
Remuneration and Group Remuneration Policy on page 34, under the heading “Directors’ Emoluments”.
Details of key management remuneration are shown in note 28.
7. FINANCE INCOME 
2008
£’000
2007
£’000
Bank interest receivable 95 101
Interest receivable on the fair value of long-term receivables 32 –
127 101 Notes to the Financial Statements
54 Patsystems plc I Annual Report & Accounts 2008
8. TAx ON PROFIT ON ORDINARY ACTIVITIES  
2008
£’000
2007
£’000
United kingdom 
Withholding tax 12 76
Foreign tax
Corporation tax – current year 46 (40)
Corporation tax – in relation to prior year 94 –
Total current tax 152 36
Deferred tax
Movement in deferred tax (note 15) 1,298 308
Taxation charge 1,450 344
The tax for the year is different from that which would result from applying the standard rate of 
Corporation Tax in the UK (28.5%) (2007: 30%). The differences are explained below:
2008
£’000
2007
£’000
Profit on ordinary activities before tax 2,066 2,188
Profit on ordinary activities multiplied by standard  
rate of Corporation Tax in the UK of 28.5% (2007: 30%) 589 656
Effects of: 
Expenses not deductible for tax purposes 15 14
Amortisation of intangibles not deductible 50 90
Effect of differing tax rates on overseas earnings 111 168
Withholding tax 12 76
Relief claimed on withholding tax – (23)
Adjustments in respect of prior years – corporation tax 94 (40)
Adjustments in respect of prior years – deferred tax 752 –
Recognition of deferred tax assets (233) (1,048)
Tax losses for which no deferred tax asset has been recognised 64 48
Remeasurement of deferred tax on change of UK rate (4) 403
Taxation charge 1,450 344
From 1 April 2008 the UK Corporation Tax rate changed from 30% to 28%. 
Factors that may affect future tax charges
The Group has unrelieved tax losses of £21,230,000 (2007: £24,492,000) that are available for offset  
against future taxable profits in their respective territories. A deferred tax asset amounting to £165,000 
(2007: £288,000) has not been recognised in respect of these losses as their future recovery is uncertain.
continued HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
55 Patsystems plc I Annual Report & Accounts 2008
9. PARENT COMPANY ACCOUNTS 
The Parent company accounts are set out in pages 75 to 83.
10. EARNINgS PER ORDINARY ShARE
In accordance with IAS 33, the calculation of earnings per ordinary share is based upon:
(a) Basic earnings per share  
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the 
weighted average number of ordinary shares in issue during the year:
2008 2007
Profit for the year attributable to equity holders of the company £616,000 £1,844,000
Weighted average number of shares 178,982,340 168,090,000
Basic earnings per share 0.3p 1.1p
(b) Diluted earnings per share  
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares 
outstanding to assume conversions of all dilutive potential ordinary shares. 
The Group has one category of dilutive potential ordinary shares: share options.
For share options a calculation is performed to determine the number of shares that could have been 
acquired at fair value (determined as the average annual market price of the Group’s shares) based  
on the monetary value of the subscription rights attached to the outstanding options. 
The number of shares calculated above is compared with the number of shares that would have been issued 
assuming the exercise of the share options.
2008 2007
Profit for the year attributable to equity holders of the Company £616,000 £1,844,000
Weighted average number of shares 178,982,340 168,090,000
Effect of dilutive share options 4,462,772 6,529,743
Effect of contingent share consideration – 1,092,000
183,445,112 175,711,743
Diluted earnings per share 0.3p 1.0p Notes to the Financial Statements
56 Patsystems plc I Annual Report & Accounts 2008
11. PRINCIPAL SUBSIDIARIES  
The principal investments in subsidiary undertakings held by the Parent Company are as follows:
A 100% investment in respect of voting rights and nominal value in Patsystems Holdings Limited,  1. 
a company incorporated in England and Wales.
The historical cost of the investment in the shares of Patsystems Holdings Limited is £11,180,000. Under 
the Scheme of Arrangement the subsidiary undertaking returned capital to the Company amounting  
to £9,865,000, and the cost of the investment has been reduced accordingly to reflect this.
The following subsidiary undertakings are wholly owned by Patsystems Holdings Limited in respect 
of voting rights and nominal value of issued shares and perform the sale and support of electronic 
trading systems:
Patsystems (UK) Ltd  – incorporated in England and Wales
Patsystems (NA) LLC – incorporated in United States of America
Patsystems Pte Ltd  – incorporated in Singapore
Patsystems Pty Ltd  – incorporated in Australia
Patsystems GmbH  – incorporated in Germany
The following subsidiary is wholly owned by Patsystems Holdings Limited in respect of voting rights and 
nominal value of issued shares and acts as a holding company:
Professional Automated Trading Systems BV (incorporated in The Netherlands)
Professional Automated Trading Systems BV owns 100% of voting rights and nominal value of issued 
shares in Patsystems (Japan) KK (incorporated in Japan), which performs the sale and support of electronic 
trading systems. 
Patsystems (Japan) KK owns 100% of voting rights and nominal value of issued shares in Patsystems 
(Ireland) Ltd (incorporated in the Republic of Ireland), which acts as a holding company.    
A 100% investment in Tamesis Limited, a company incorporated in England and Wales that develops, 2. 
distributes and supports software enabling real time trade capture, valuation and risk management for 
the structured finance market. 
All subsidiaries are included in the consolidation.
continued HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
57 Patsystems plc I Annual Report & Accounts 2008
12. gOODWILL
2008
£’000
2007
£’000
Cost and net book value
At 1 January 2008 3,237 1,745
Additions 14 1,492
At 31 December 2008 3,251 3,237
The increase in goodwill in the year is in relation to the 2005 acquisition of Tamesis and represents the 
difference between the estimated contingent consideration at 31 December 2007 and the final settlement 
made in the year.
The goodwill is all held in Europe.
Impairment review
The recoverable amount for the cash generating unit has been measured based on a value in use calculation. 
The calculations use pre-tax profits based on budgets approved by management for the year 2009. Cash 
flows beyond this are based on a growth rate of 2.25%. A pre-tax discount rate of 10% has been applied to 
the calculations.
As the value in use is greater than the carrying value there is no impairment in the period and the carrying 
value of goodwill represents the excess of the cost of acquisition over the fair value of the Group’s share of 
the net identifiable assets of the acquired subsidiary at the date of acquisition. Notes to the Financial Statements
58 Patsystems plc I Annual Report & Accounts 2008
13. INTANgIBLE ASSETS
2008
Software 
licences
£’000 
Acquired 
software
£’000
Capitalised
 development
£’000
Total
£’000
Cost
At 1 January 2008 1,273 898 3,483 5,654
Additions 53 – 811 864
Disposals (674) – – (674)
Foreign exchange 26 – – 26
At 31 December 2008 678 898 4,294 5,870
Amortisation 
At 1 January 2008 (843) (723) (414) (1,980)
Charge for the year (216) (175) (623) (1,014)
Disposals 674 – – 674
Foreign exchange (23) – – (23)
At 31 December 2008 (408) (898) (1,037) (2,343)
Net book value 
At 31 December 2008 270 – 3,257 3,527
At 31 December 2007 430 175 3,069 3,674
2007
Software 
licences
£’000 
Acquired 
software
£’000
Capitalised
 development
£’000
Total
£’000
Cost
At 1 January 2007 1,123 898 2,127 4,148
Additions 450 – 1,356 1,806
Disposals (300) – – (300)
At 31 December 2007 1,273 898 3,483 5,654
Amortisation
At 1 January 2007 (959) (424) (229) (1,612)
Charge for the year (184) (299) (185) (668)
Disposals 300 – – 300
At 31 December 2007 (843) (723) (414) (1,980)
Net book value
At 31 December 2007 430 175 3,069 3,674
At 31 December 2006 164 474 1,898 2,536
continued HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
59 Patsystems plc I Annual Report & Accounts 2008
14. PROPERTY, PLANT AND EQUIPMENT
2008
Leasehold
 improvements
£’000
Plant and
 equipment
£’000
Office furniture,
 fixtures and 
fittings
£’000
Total
£’000
Cost
At 1 January 2008 539 3,135 495 4,169
Additions – 109 17 126
Disposals – (2,222) (459) (2,681)
Foreign exchange 25 279 58 362
At 31 December 2008 564 1,301 111 1,976
Depreciation
At 1 January 2008 (332) (2,644) (441) (3,417)
Charge for the year (101) (285) (23) (409)
Disposals – 2,222 459 2,681
Foreign exchange (18) (249) (48) (315)
At 31 December 2008 (451) (956) (53) (1,460)
Net book value
At 31 December 2008 113 345 58 516
At 31 December 2007 207 491 54 752
2007
Leasehold
 improvements
£’000
Plant and
 equipment
£’000
Office furniture,
 fixtures and 
fittings
£’000
Total
£’000
Cost
At 1 January 2007 540 2,766 452 3,758
Additions – 378 45 423
Disposals – (14) – (14)
Foreign exchange (1) 5 (2) 2
31 December 2007 539 3,135 495 4,169
Depreciation
At 1 January 2007 (233) (2,351) (420) (3,004)
Charge for the year (100) (302) (23) (425)
Disposals – 14 – 14
Foreign exchange 1 (5) 2 (2)
At 31 December 2007 (332) (2,644) (441) (3,417)
Net book value
At 31 December 2007 207 491 54 752
At 31 December 2006 307 415 32 754 Notes to the Financial Statements
60 Patsystems plc I Annual Report & Accounts 2008
15. DEFERRED TAx ASSETS
2008
Trading 
losses
£’000
Capital 
allowances
£’000
Share 
options
£’000
Other timing
differences
£’000
Total
£’000
At 1 January 2008 6,665 (169) 123 54 6,673
Additional deferred tax assets in 
respect of Group companies that 
have become profitable 233 – – – 233
Utilisation of losses against current 
year profits (942) – – – (942)
Adjustments in respect of prior years (752) – – – (752)
(Charges)/credits arising in the year – (2) (82) 247 163
(Charged)/credited to income 
statement (1,461) (2) (82) 247 (1,298)
Foreign exchange 502 – – – 502
At 31 December 2008 5,706 (171) 41 301 5,877
2007
Trading 
losses
£’000
Capital 
allowances
£’000
Share 
options
£’000
Other timing
differences
£’000
Total
£’000
At 1 January 2007 6,747 200 32 – 6,979
Additional deferred tax assets in 
respect of Group companies that 
have become profitable 984 – – – 984
Adjustments in respect of prior years – 42 22 – 64
Utilisation of losses against current 
year profits (657) – – – (657)
(Charges)/credits arising in the year – (424) 78 50 (296)
Remeasurement on change  
of UK rate (411) 13 (9) 4 (403)
(Charged)/credited to income 
statement (84) (369) 91 54 (308)
Foreign exchange 2 – – – 2
At 31 December 2007 6,665 (169) 123 54 6,673
Deferred tax assets in respect of Group companies’ unrelieved trading losses are recognised when the 
specific company’s business has become profitable and to the extent that it is probable there will be future 
trading profits to utilise such losses. 
16. INVENTORIES
2008
£’000
2007
£’000
Goods for resale 3 12
continued HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
61 Patsystems plc I Annual Report & Accounts 2008
17. TRADE AND OThER RECEIVABLES  
2008
£’000
2007
£’000
Trade receivables 4,538 2,798
Less: provision for impairment of receivables (134) (83)
Trade receivables – net 4,404 2,715
Other receivables 351 327
Prepayments and accrued income 2,240 1,695
6,995 4,737
Less non-current portion – accrued income (519) (371)
Current receivables 6,476 4,366
Non-current receivables are due as follows:
Within between one and two years 193 71
Within between two and five years 239 190
After more than five but less than ten years 87 110
Non-current receivables 519 371
The carrying values less impairment provisions of trade and other receivables approximate their fair values.
The effective interest rates on non-current receivables were between the range of 3 – 6% (2007: 6%).
The ageing of trade receivables is as follows:
2008
Not past due
£’000
Up to 3 months
£’000
3 to 6 months
£’000
Over 6 months
£’000
Total
£’000
Fully performing 3,522 – – – 3,522
Past due but not 
impaired – 659 223 – 882
Impaired and 
provided for – – 10 124 134
 3,522 659 233 124 4,538 
Percentage 78% 14% 5% 3% 100%
2007
Not past due
£’000
Up to 3 months
£’000
3 to 6 months
£’000
Over 6 months
£’000
Total
£’000
Fully performing 1,909 – – – 1,909
Past due but not 
impaired – 649 89 68 806
Impaired and 
provided for – – – 83 83
 1,909 649 89 151 2,798
Percentage 68% 23% 3% 6% 100% Notes to the Financial Statements
62 Patsystems plc I Annual Report & Accounts 2008
17. TRADE AND OThER RECEIVABLES continued Trade receivables that are less that three months past due are not considered impaired. As of 31 December 2008, 
trade receivables of £882,000 (2007: £806,000) were past due but not impaired. These relate to a number 
of independent customers for whom there is no indication of financial difficulties or recent history of 
default. The Group is in contact with these customers and obtained assurances from which it believes  
that the amounts receivable will be collected in full with no additional cost to the Group.
Provisions for the portion of individually impaired trade receivables assessed to be irrecoverable at  
31 December 2008 totaled £134,000 (2007: £83,000). These relate to customers where there are indications 
of financial difficulties or disputes that are unlikely to be resolved without further costs to the Group.
The carrying amounts of the Group’s trade and other receivables are denominated in the following currencies:
2008
£’000
2007
£’000
UK Pound 2,118 2,215
US Dollar 4,116 1,967
Singapore Dollar 300 204
Japanese Yen 272 144
Australian Dollar 130 114
Other currencies 59 93
Total 6,995 4,737
Movements on the Group provision for impairment of trade receivables are as follows: 
2008
£’000
2007
£’000
At 1 January 83 50
Provision for receivables impairment 60 83
Receivables written off during the year as uncollectible (19) (26)
Unused amounts reversed – (24)
Foreign exchange 10 –
At 31 December 134 83
The creation and release of provisions for impaired receivables has been included in “operating expenses”  
in the income statement. Amounts charged to the allowance account are generally written off when there  
is no expectation of recovering additional cash.
The other classes within trade and other receivables do not contain impaired assets.
The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable 
mentioned above. The Group does not hold any collateral as security.
continued HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
63 Patsystems plc I Annual Report & Accounts 2008
18. CASh AND CASh EQUIVALENTS 
2008
£’000
2007
£’000
Cash at bank and on hand 4,649 1,758
Short-term deposits 1,280 1,433
5,929 3,191
The credit quality of the Group’s financial assets represented by cash and cash equivalents is not assessed by 
reference to external credit ratings but is regularly reviewed by the Board. Monies are held with international 
banking organisations and, where appropriate, with well established local bankers that are able to provide the 
levels of security, accessibility and service to meet local needs.
The interest rates on interest bearing short-term deposits are floating rates. All financial assets represented 
by cash and cash equivalents mature within one year.
The carrying values of cash and cash equivalents approximate their fair values.
The carrying amounts of the Group’s cash and cash equivalents are denominated in the following currencies:
2008
£’000
2007
£’000
UK Pound 3,762 307
US Dollar 1,230 1,749
Singapore Dollar 200 276
Japanese Yen 248 699
Australian Dollar 389 131
Other currencies 100 29
Total 5,929 3,191 Notes to the Financial Statements
64 Patsystems plc I Annual Report & Accounts 2008
19. TRADE AND OThER PAYABLES 
2008
£’000
2007
*Restated
£’000
Current liabilities
Trade payables 290 316
Other tax and social security 721 350
Other creditors 58 –
Accruals 1,573 1,116
Deferred income 2,281 1,387
4,923 3,169
Non-current liabilities
Deferred income 50 44
4,973 3,213
* see note 1
None of the payables are secured. 
Non-current liabilities mature within between one and two years. All other trade and other payables mature 
within one year.
The carrying amounts of the Group’s trade and other payables are denominated in the following currencies:
2008
£’000
2007
£’000
UK Pound 2,326 2,183
US Dollar 2,112 863
Singapore Dollar 247 13
Japanese Yen 224 100
Australian Dollar 35 30
Other currencies 29 24
Total 4,973 3,213
The carrying amounts of the Group’s trade and other payables approximate their fair values.
The Group’s intercompany receivables and payables, which are eliminated on consolidation, are recorded in 
the books of the local entities in the following currencies:
2008
£’000
Receivables
2008
£’000
Payables
2007
£’000
Receivables
2007
£’000
Payables
UK Pound 23,316 (38,829) 19,857 (39,726)
US Dollar – (5,181) – (993)
Singapore Dollar 502 (1,967) 164 (1,336)
Japanese Yen 1,056 (937) 725 (1,253)
Australian Dollar – (683) – (378)
Other currencies 185 (1,938) 139 (1,675)
25,059 (49,535) 20,885 (45,361)
The difference between the intercompany receivables and payable of £24,476,000 relates to provision made 
against intercompany receivables in prior years.
continued HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
65 Patsystems plc I Annual Report & Accounts 2008
20. PROVISIONS 
At 1 January 
2008 
*Restated
£’000
Utilised 
in year
£’000
Movement 
in year
£’000
At 31 December 
2008
£’000
No later than one year
Dilapidations provision 58 – 24 82
Later than one year and no later than 
five years
Cash-based long-term incentive scheme 71 – 68 139
129 – 92 221
* see note 1
The dilapidations provision is in respect of work to be carried out at the end of the lease on property.  
It is due to expire in 2009.
The cash-based long-term incentive scheme is described in the Remuneration report. It is due to expire in 2010.
21. COMMITMENTS UNDER OPERATINg LEASES
The Group leases various offices and plant and machinery under non-cancellable operating lease 
arrangements. The leases have varying terms, escalation clauses and renewal rights. 
The lease expenditure charged to the income statement during the year is disclosed in note 5.
The future minimum lease payments under non-cancellable operating leases are as follows:
Land and Buildings Plant and Machinery Total
2008 2007 2008 2007 2008 2007
No later than one year 452 390 34 21 486 411
Later than one year and 
no later than five years
351 528 87 18 438 546
Later than five years – – 15 – 15 –
803 918 136 39   939 957 Notes to the Financial Statements
66 Patsystems plc I Annual Report & Accounts 2008
22. CALLED UP EQUITY ShARE CAPITAL 
Authorised
2008
£’000
2007
£’000
Ordinary shares of 1p each 
At 1 January and 31 December – 250,000,000 shares 2,500 2,500
Deferred shares of 1p each
At 1 January and 31 December – 2 shares – –
Redeemable preference shares of £1 each 
At 1 January and 31 December – 49,998 shares 50 50
Allotted, called up and fully paid 
Ordinary shares of 1p each 
At 1 January – 177,496,511 shares 1,775 1,641
Allotted as consideration for acquisition  
of Tamesis Limited – 1,092,240 shares 11 122
Allotted under share option schemes – 948,550 shares 9 12
At 31 December – 179,537,301 shares 1,795 1,775
The 1p ordinary shares are listed on the AIM market. They have one voting right per share. 
Deferred shares of 1p each 
At 1 January and 31 December – 2 shares – –
The deferred 1p shares are not listed. They have no voting rights and no access to dividends. 
continued HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
67 Patsystems plc I Annual Report & Accounts 2008
23. ShARE OPTION SChEMES
The following options to purchase 1p Ordinary shares in Patsystems plc were granted, exercised, lapsed and 
outstanding during the year:
Exercise price
in pence
Outstanding at 
1 January 
2008
granted 
in year
Exercised
in year
Lapsed 
in year
Outstanding at 
31 December 
2008
Exercisable at 
31 December 
2008
Effective 
dates
5.08p 1,735,500 – (550,000) – 1,185,500 1,185,500 Note a
9.50p 97,500 – – – 97,500 97,500 Note a
13.50p 72,000 – (14,400) (57,600) – – Note b
13.75p 727,272 – – – 727,272 – Note e
14.25p 581,623 – (37,705) (46,765) 497,153 377,836 Note b
14.50p 1,186,606 – (248,276) (441,379) 496,951 377,683 Note b
15.25p 775,737 – – – 775,737 589,560 Note b
15.58p 1,416,500 – (50,400) (19,200) 1,346,900 1,023,644 Note b
17.50p 90,000 – – – 90,000 68,400 Note b
27.75p 250,000 – – – 250,000 – Note g
29.00p 444,827 – – – 444,827 – Note g
7,377,565 – (900,781) (564,944) 5,911,840 3,720,123
1.00p 582,525 – – – 582,525 582,525 Note i
13.75p 3,272,728 – – – 3,272,728 – Note f
14.25p 344,245 – (26,769) (62,982) 254,494 193,415 Note c
14.50p 144,494 – – (61,405) 83,089 71,437 Note c
15.25p 404,263 – – – 404,263 389,863 Note d
15.58p 780,500 – (21,000) (89,100) 670,400 509,504 Note c
18.00p 500,000 – – – 500,000 500,000 Note d
27.75p 1,000,000 – – – 1,000,000 – Note h
29.00p 1,655,173 – – – 1,655,173 – Note h
8,683,928 – (47,769) (213,487) 8,422,672 2,246,745
Total all
schemes 16,061,493 – (948,550) (778,431) 14,334,512 5,966,868
Note a: These options were granted under the initial award of the Enterprise Management Incentive (EMI) 
Scheme. These options are now 100% exercisable.
Note b: Options were granted under the second and third awards of the Enterprise Management Incentive 
(EMI) Scheme. 20% of these options awarded under the second and third grants of both schemes 
vested on 14 February 2007 and 16% vested on 11 February 2008. A further 40% will vest on 
9 February 2009. The remaining 24% of the options will be carried forward into future years and the 
Remuneration Committee will determine what performance conditions to attach to them in 2009.
Note c: These options were granted under the second and third awards of Part B (Inland Revenue Unapproved) 
of the Patsystems plc 2003 Share Option Scheme. The vesting status is the same as note b, with the 
exception of 34,540 unapproved options with an exercise price of 14.50p, which all vested in 2008.
Note d: These options were granted under the second and third awards of Part B (Inland Revenue 
Unapproved) of the Patsystems plc 2003 Share Option Scheme. 844,263 of these options became 
fully vested in 2008 following approval from the Remuneration Committee, the remaining options 
are subject to the same vesting status as note b. Notes to the Financial Statements
68 Patsystems plc I Annual Report & Accounts 2008
23. ShARE OPTION SChEMES continued 
Note e: These options were granted under a special award of the Enterprise Management Incentive (EMI) 
Scheme. One third of these options can be exercised after a period of three years after the date of 
the grant. Two thirds of these options can be exercised after a period of three years after the date 
of the grant but subject to achieving company performance targets.
Note f: These options were granted under a special award of Part B (Inland Revenue Unapproved) of the 
Patsystems plc 2003 Share Option Scheme, exercise conditions are as per note e.
Note g: These options were granted under a special award of the Enterprise Management Incentive (EMI) 
Scheme. These options can be exercised after a period of three years after the date of the grant but 
subject to achieving company performance targets.
Note h: These options were granted under a special award of Part B (Inland Revenue Unapproved) of the 
Patsystems plc 2003 Share Option Scheme, exercise conditions are as per note g.
Note i: These options were granted under a special award of Part B (Inland Revenue Unapproved) of the 
Patsystems plc 2003 Share Option Scheme. These options became exercisable on 31 December 2008.
The weighted average fair value per share at the measurement date of options granted during the year was 
nil p (2007:14.0p).
The weighted average share price at the date of grant of options granted during the year was nil p (2007: 28.1p). 
For the options that were exercised during the year, the weighted average share price at the date of exercise 
was 23p (2007: 26p).
The weighted average remaining contractual life of options outstanding at the year end is 6.7 years  
(2007: 7.6 years).
The total fair value that was charged to the income statement in relation to the share options was £329,000 
(2007: £210,000), all of which related to equity settled share-based payment transactions.
The fair values of the options have been calculated using the Binomial Model. The model takes into account 
the following factors in determining the fair value of an option:
(a) Share price and exercise price 
Share prices are closing share prices as at the date of grant. Exercise prices are listed in the above schedule.
(b) Expected term of the options
It is assumed that the expected life of the options under consideration is 5 years. 
(c) Volatility
Volatility of the Company’s share price has been calculated as the annualised standard deviation of daily 
continuously compounded returns on the Company’s stock, derived from the Company’s historical share 
prices, adjusted for splits, over 5 years back from each date of grant.
(d) Risk-free interest rate
The risk-free rates of interest are assumed to be the yield to maturity on a UK Gilt Strip with the term to 
maturity equal to the expected life of the option. 
(e) Dividends
The valuations take account of the expected future dividend yield at the date of each grant.
continued HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
69 Patsystems plc I Annual Report & Accounts 2008
The table below sets out the volatilities, risk-free interest rates and dividend yields applied in each valuation:
Date of grant Volatility
 (%)
Risk-free interest rate 
(%)
Dividend yield 
(%)
24 February 2003 77.8009% 4.6922% 0.00%
13 March 2003 78.3590% 4.7175% 0.00%
30 June 2003 78.4194% 4.6412% 0.00%
27 October 2003 79.8321% 5.7891% 0.00%
01 January 2004 78.6748% 5.4125% 0.00%
30 July 2004 73.6821% 5.8602% 0.00%
27 August 2004 71.7764% 5.6660% 0.00%
16 November 2004 58.9201% 5.2789% 0.00%
04 February 2005 56.6301% 5.1507% 0.00%
17 March 2005 52.4971% 5.4148% 0.00%
06 October 2005 54.9819% 4.7689% 2.00%
23 November 2005 49.8819% 4.8322% 2.00%
14 December 2005 50.0097% 4.8764% 2.00%
14 February 2006 50.1501% 4.7515% 2.00%
19 April 2007 48.4035% 5.2980% 1.00%
07 December 2007 30.0527% 4.5550% 1.00%
31 December 2007 30.9369% 5.6204% 1.00% Notes to the Financial Statements
70 Patsystems plc I Annual Report & Accounts 2008
24. ShARE CAPITAL AND RESERVES
At 
1 January 2008 
Restated*
£’000
Shares issued 
in the year
£’000
Earnings for 
the year
£’000
Dividends 
paid
£’000
Foreign 
exchange 
movement
£’000
Share
compensation 
expense 
£’000
At 
31 December 
2008
£’000
Paid up share 
capital 1,775 20 – – – – 1,795
Share premium 3,792 77 – – – – 3,869
Other reserves 20,570 292 – – – – 20,862
Retained 
earnings (7,443) – 616 (602) 628 329 (6,472)
18,694 389 616 (602) 628 329 20,054
* see note 1
Of the other reserve at 31 December 2008 £20,812,000 relates to a merger reserve.
At 
1 January 2007 
£’000
Shares issued 
in the year
£’000
Earnings for 
the year
£’000
Dividends 
paid
£’000
Foreign 
exchange 
movement
£’000
Share
compensation 
expense 
£’000
At 
31 December 
2007 
Restated*
£’000
Paid up share 
capital 1,641 134 – – – – 1,775
Share premium 3,691 101 – – – – 3,792
Other reserves 17,348 3,222 – – – – 20,570
Retained 
earnings (8,948) – 1,844 (693) 144 210 (7,443)
13,732 3,457 1,844 (693) 144 210 18,684
* see note 1
Of the other reserve at 31 December 2007 £20,520,000 relates to a merger reserve.
 INVESTMENTS IN OWN SHARES 
The Group has an investment in own shares of 71,856 shares (2007: 71,856 shares) as a result of employees 
leaving the All Employee Share Scheme. The nominal value of these shares is £719 (2007: £719). The market 
value at 31 December 2008 is £11,000 (2007: £19,000). 
continued HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
71 Patsystems plc I Annual Report & Accounts 2008
25. STATEMENT OF ChANgES IN ShAREhOLDERS’ EQUITY 
2008
£’0000
2007
£’0000
Profit on ordinary activities after taxation 616 1,844
Dividends paid (602) (693)
Foreign exchange adjustment 628 144
Share compensation expense 329 210
Shares issued in part settlement of the deferred consideration 
for the 2005 acquisition of Tamesis Limited 303 3,345
Proceeds from the issue of ordinary share capital 86 112
1,360 4,962
Shareholders’ funds at 1 January 18,694 13,732
Shareholders’ funds at 31 December 20,054 18,694
26. DIVIDENDS 
The dividends paid in the year were as follows:
 
2008
£’0000
2007
£’0000
Final dividend in respect of the year ended 31 December 2007  
at 0.21p per share 376 495
Interim dividend at 0.126p per share 226 198
602 693
A final dividend in respect of the year ended 31 December 2008 of 0.237p per share amounting to a total 
dividend of £425,000, is to be proposed at the annual general meeting on 28 April 2009. These financial 
statements do not reflect this dividend payable.  Notes to the Financial Statements
72 Patsystems plc I Annual Report & Accounts 2008
27. FINANCIAL INSTRUMENTS
27.1 FINANCIAL RISK MANAGEMENT
The Group’s financial instruments comprise cash and liquid resources, trade and other debtors and creditors 
arising directly from the operations of the Group and forward exchange contracts. The main risks arising 
from the Group’s financial instruments are interest rate risk and foreign currency risk. The Board reviews and 
agrees policies for managing each of these risks and they are summarised in note 3 above. 
27.2 ACCOUNTING POLICIES
The Group’s accounting policies for financial instruments are detailed in note 1 above and have been applied 
to the line items below.
2008
Loans and 
receivables
£’000
Assets at fair 
 value through the 
profit and loss
£’000
Total
£’000
Assets as per balance sheet 
Trade and other receivables 6,995 – 6,995
Income tax 3 – 3
Cash and cash equivalents 5,929 – 5,929
12,927 – 12,927
2008
Liabilities at fair 
value through the 
profit and loss
£’000
Other 
financial 
liabilities
£’000
Total
£’000
Liabilities as per balance sheet 
Trade and other payables 4,973 – 4,973
Derivative financial instruments 853 – 853
Provisions 221 – 221
6,047 – 6,047
2007
Loans and 
receivables
£’000
Assets at fair  
value through the 
profit and loss
£’000
Total
£’000
Assets as per balance sheet 
Trade and other receivables 4,737 – 4,737
Derivative financial instruments – 30 30
Income tax 40 – 40
Cash and cash equivalents 3,191 – 3,191
7,968 30 7,998
continued HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
73 Patsystems plc I Annual Report & Accounts 2008
27.2 ACCOUNTING POLICIES continued 2007
Liabilities at fair 
value through the 
profit and loss
£’000
Other 
financial 
liabilities
£’000
Total
£’000
Liabilities as per balance sheet 
Trade and other payables 3,213 – 3,213
Current income tax liabilities – 20 20
Contingent consideration – 290 290
Provisions 129 – 129
3,342 310 3,652
The Group had no borrowings as at 31 December 2008 or 31 December 2007.  
27.3 FOREIGN CURRENCY ExPOSURE 
The Group’s principal exposure to exchange rate fluctuations arises on the translation of overseas net assets 
and profits into Sterling for accounting purposes. 
Analyses of the Group’s financial assets and liabilities denominated in foreign currencies are given in notes 
17, 18 and 19.
The Group has a net earnings exposure to the US dollar together with an exposure to the translation of the 
balance sheet of its US subsidiary. During the year, the Board authorised the hedging of US dollar exposures. 
At 31 December 2008 the company has the following hedges in place:
Forward contracts
Forward contract value Maturity date Effective forward rate 
$350,000 29-Jan-09 1.9290
$500,000 26-Feb-09 1.9268
$350,000 31-Mar-09 1.9348
$500,000 30-Apr-09 1.9462
$1,000,000 29-May-09 1.9060
$350,000 30-Jun-09 1.9494
$650,000 31-Jul-09 1.9381
$600,000 28-Aug-09 1.7693
$800,000 30-Sep-09 1.7665
$500,000 29-Oct-09 1.5525
$500,000 27-Nov-09 1.5522
$500,000 29-Dec-09 1.5528
$500,000 29-Jan-10 1.4780
At the year end the fair value of the above contracts is a liability of £853,000 (2007: asset £30,000). The 
movement in fair values of £883,000 (2007: £97,000) has been charged to the income statement in the year. 74 Patsystems plc I Annual Report & Accounts 2008
Notes to the Financial Statements
28. RELATED PARTY TRANSACTIONS
Revenue includes £425,000 (2007: £358,000) in respect of Banca Caboto Spa (London Branch), a member  
of a Group of companies which include CAI (Suisse), a shareholder of the Company. At 31 December 2008 the 
amount owing to Group companies by Banca Caboto Spa (London Branch) was £nil (2007: £68,000).
Revenue also includes £271,000 (2007: £313,000) in respect of Marex Trading Services, a company of which 
one of the Non-executive Directors, Steve Sparke, is also a Director. At 31 December 2008 the amount owing 
to Group companies by Marex Trading Services was £26,000 (2007: £54,000).
 KEY MANAGEMENT REMUNERATION
Details of the remuneration of key management are detailed below:
2008
£’0000
2007
£’0000
Salaries and short-term employee benefits 1,660 1,648
Share-based payments 264 174
1,924 1,822
continued HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
75 Patsystems plc I Annual Report & Accounts 2008
Independent Auditors’ Report to the Members of Patsystems plc
We have audited the parent company financial statements of Patsystems plc for the year ended 31 December 2008 
which comprise the Balance sheet and the related notes. These parent company financial statements have been 
prepared under the accounting policies set out therein. 
We have reported separately on the Group financial statements of Patsystems plc for the year ended 31 December 2008.
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS
The directors’ responsibilities for preparing the Annual Report and the parent company financial statements in 
accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted 
Accounting Practice) are set out in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the parent company financial statements in accordance with relevant legal and 
regulatory requirements and International Standards on Auditing (UK and Ireland). This report, including the 
opinion, has been prepared for and only for the company’s members as a body in accordance with Section 235 of 
the Companies Act 1985 and for no other purpose. We do not, in giving this opinion, 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.
We report to you our opinion as to whether the parent company financial statements give a true and fair view and 
whether the parent company financial statements have been properly prepared in accordance with the Companies 
Act 1985. We report to you whether in our opinion the information given in the Directors’ Report is consistent with 
the parent company 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 other information contained in the Annual Report and consider whether it is consistent with the audited 
parent company financial statements. The other information comprises only the Directors’ Report. We consider the 
implications for our report if we become aware of any apparent misstatements or material inconsistencies with the 
parent company financial statements. Our responsibilities do not extend to any other information.
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 parent company financial statements. It also includes an assessment of the significant estimates and 
judgments made by the directors in the preparation of the parent company 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 parent company 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 parent company financial statements.
OPINION
In our opinion:
the parent company financial statements give a true and fair view, in accordance with United Kingdom  
Generally Accepted Accounting Practice, of the state of the company’s affairs as at 31 December 2008;
the parent company 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 parent company financial statements. 
PRICEWATERHOUSECOOPERS LLP
Chartered Accountants and Registered Auditors
London
9 February 2009 76 Patsystems plc I Annual Report & Accounts 2008
Company Balance Sheet
Notes
2008
£’000
2007
Restated*
£’000
FIxED ASSETS
Investments 4 1,605 1,605
CURRENT ASSETS
Debtors 5 5,918 4,880
Cash at bank and in hand 5 4
  5,923 4,884
CREDITORS: AMOUNTS FALLINg DUE WIThIN ONE YEAR 6 (81) (62)
Net current assets 5,842 4,822
Net assets 7,447 6,427
CAPITAL AND RESERVES
Share capital 7 1,795 1,775
Share premium account 9 3,869 3,792
Other reserves 9 50 50
Retained earnings 9 1,733 810
Total equity 9 7,447 6,427
* see note 1
The financial statements on pages 76 to 83 were approved by the Board of Directors on 9 February 2009.
DAVID WEBBER    MARTIN THORNEYCROFT
Chief Executive Officer   Finance Director
at 31 December 2008  HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
77 Patsystems plc I Annual Report & Accounts 2008
1. ACCOUNTINg POLICIES
The financial statements have been prepared on the historical cost basis of accounting and in accordance 
with applicable accounting standards in the United Kingdom. 
The principal accounting policies applied in the preparation of these financial statements are set out below. 
These policies have been consistently applied to all the years presented, unless otherwise stated.
Restatement:
The 2007 comparatives have been restated as the Company has now taken advantage of merger relief. As a 
result the shares issued in respect of the acquisition of Tamesis in 2007 have now been included at nominal 
value rather than incorporating the share premium. This has resulted in the restatement of the investment, 
contingent consideration and share premium account as detailed below.
Investments £’000
At 31 December 2007 – as previously reported 5,106
Adjustment (3,501)
At 31 December 2007 – as restated 1,605
Contingent consideration £’000
At 31 December 2007 – as previously reported 290
Adjustment (279)
At 31 December 2007 – as restated 11
Share premium £’000
At 31 December 2007 – as previously reported 7,014
Adjustment (3,222)
At 31 December 2007 – as restated 3,792
1.1 INVESTMENTS 
Investments in subsidiaries are stated at cost less any provision for impairment. Where an acquisition 
satisfies the provisions of sections 131 to 134 of the Companies Act 1985, merger relief is available and the 
investment is stated at nominal value of shares issued plus the value of any other consideration.
1.2 OPERATING LEASES
Costs in respect of operating leases are charged to the Profit and Loss Account on a straight line basis over 
the lease term. 
1.3 CURRENT AND DEFERRED INCOME TAxES
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at 
the Balance Sheet date. Management periodically evaluates positions taken in tax returns with respect to 
situations in which applicable tax regulations are subject to interpretation and establishes provisions where 
appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred taxation is recognised in respect of timing differences that have originated but not reversed at the 
Balance Sheet date, where transactions or events that result in an obligation to pay more tax in the future or 
a right to pay less tax in the future have occurred at the Balance Sheet date.
A net deferred tax asset is regarded as recoverable and therefore recognised only when, on the basis of all 
available evidence, it can be regarded as more likely than not that there will be sufficient taxable profits to utilise 
carried forward tax losses and against which the reversal of underlying timing differences can be deducted.
Deferred tax is measured at the average tax rates that are expected to apply in the periods in which 
the timing differences are expected to reverse based on tax rates and laws that have been enacted or 
substantively enacted by the Balance Sheet date. Deferred tax is measured on a non-discounted basis.
Notes to the Financial Statements Notes to the Financial Statements
78 Patsystems plc I Annual Report & Accounts 2008
1. ACCOUNTINg POLICIES CONTINUED
1.4 RELATED PARTY TRANSACTIONS
Financial Reporting Standard (FRS) 8, “Related Party Transactions”, requires the disclosure of the details of 
material transactions between the reporting entity and related parties. The Company has taken advantage 
of exemptions under FRS 8 not to disclose transactions between Group companies.
1.5 SHARE-BASED PAYMENTS
The Group operates two share options schemes; the Enterprise Management Incentive Scheme and the 2003 
Share Option Scheme (Inland Revenue unapproved). 
The fair value of options is recognised as an employee benefit expense with a corresponding increase in 
reserves over the vesting period. The proceeds received net of any directly attributable transaction costs are 
credited to share capital (nominal value) and share premium when the options are exercised. 
1.6 CASH FLOW STATEMENT 
The Company is the Parent Company of the Patsystems plc Group and is included in the consolidated 
financial statements of Patsystems plc. Consequently, the Company has taken advantage of the exemption 
from preparing a cash flow statement under the terms of Financial Reporting Standard 1 (revised 1996).
1.7 DIVIDEND DISTRIBUTIONS
Final dividend distributions to the Company’s shareholders are recognised as liabilities in the Company’s 
financial statements in the period in which the dividends are approved by the Company’s shareholders. 
Interim dividend distributions to the Company’s shareholders are recognised as liabilities in the Company’s 
financial statements when paid.
2. DIRECTORS AND EMPLOYEES
The Parent Company does not employ any Directors or employees.
3. PROFIT AND LOSS ACCOUNT 
The profit for the year dealt with in the accounts of the Company was £1,196,000 (2007: £656,000).
The Directors have taken advantage of the exemption available under section 230(4) of the Companies Act 
1985, and have not presented a Profit and Loss Account for the Company alone. 
4. INVESTMENTS  
Investment in subsidiary undertaking £’000
At 1 January 2008 and 31 December 2008 1,605
The balance at 1 January 2008 has been restated as detailed in note 1.
continued HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
79 Patsystems plc I Annual Report & Accounts 2008
The investment in subsidiary undertakings represents:
A 100% investment in respect of voting rights and nominal value in Patsystems Holdings Limited,  1. 
a company incorporated in England and Wales.
The historical cost of the investment in the shares of Patsystems Holdings Limited is £11,180,000. Under 
the Scheme of Arrangement the subsidiary undertaking returned capital to the Company amounting to 
£9,865,000, and the cost of the investment has been reduced accordingly to reflect this.
The following subsidiary undertakings were wholly owned by Patsystems Holdings Limited in respect of voting 
rights and nominal value of issued shares and perform the sale and support of electronic trading systems:
Patsystems (UK) Ltd  –  incorporated in England and Wales
Patsystems (NA) LLC  –  incorporated in United States of America
Patsystems Pte Ltd  –  incorporated in Singapore
Patsystems Pty Ltd  –  incorporated in Australia
Patsystems GmbH  –  incorporated in Germany
The following subsidiary is wholly owned by Patsystems Holdings Limited in respect of voting rights and 
nominal value of issued shares and acted as a holding company:
Professional Automated Trading Systems BV (incorporated in The Netherlands).
Professional Automated Trading Systems BV owns 100% of voting rights and nominal value of issued 
shares in Patsystems (Japan) KK (incorporated in Japan), which performs the sale and support of electronic 
trading systems. 
Patsystems (Japan) KK owns 100% of voting rights and nominal value of issued shares in Patsystems 
(Ireland) Ltd (incorporated in the Republic of Ireland), which acts as a holding company.    
A 100% investment in Tamesis Limited, a company incorporated in England and Wales that develops, 2. 
distributes and supports software enabling real time trade capture, valuation and risk management for 
the structured finance market.
5. DEBTORS
2008
£’0000
2007
£’0000
Amounts owed by group undertakings 5,913 4,877
Other debtors 2 1
Prepayments and accrued income 3 2
5,918 4,880
6. CREDITORS: AMOUNTS FALLINg DUE WIThIN ONE YEAR 
2008
£’0000
2007
Restated*
£’0000
Trade creditors 19 1
Contingent consideration – 11
Other creditors – 2
Accruals and deferred income 62 48
81 62
* see note 1
None of the creditors are secured.  Notes to the Financial Statements
80 Patsystems plc I Annual Report & Accounts 2008
7. CALLED UP EQUITY ShARE CAPITAL     
2008
£’0000
2007
£’0000
Authorised 
Ordinary shares of 1p each 
At 1 January and 31 December – 250,000,000 shares 2,500 2,500
Deferred shares of 1p each
At 1 January and 31 December – 2 shares – –
Redeemable preference shares of £1 each 
At 1 January and 31 December – 49,998 shares 50 50
Allotted, called up and fully paid 
Ordinary shares of 1p each 
At 1 January – 177,496,511 shares 1,775 1,641
Allotted as consideration for acquisition  
of Tamesis Limited – 1,092,240 shares 11 122
Allotted under share option schemes – 948,550 shares 9 12
At 31 December – 179,537,301 shares 1,795 1,775
The 1p ordinary shares are listed on the AIM market. They have one voting right per share. 
Deferred shares of 1p each 
At 1 January and 31 December – 2 shares – –
The deferred 1p shares are not listed. They have no voting rights and no access to dividends. 
continued HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
81 Patsystems plc I Annual Report & Accounts 2008
8. ShARE OPTION SChEMES
The following options to purchase 1p Ordinary shares in Patsystems plc were granted, exercised, lapsed and 
outstanding during the year:
Exercise price  
in pence
Outstanding 
at 1 January 
2008
Granted in 
year
Exercised 
in year
Lapsed 
in year
Outstanding at 
31 December 
2008
Exercisable at 
31 December 
2008
Effective 
dates
5.08p 1,735,500 – (550,000) – 1,185,500 1,185,500 Note a
9.50p 97,500 – – – 97,500 97,500 Note a
13.50p 72,000 – (14,400) (57,600) – – Note b
13.75p 727,272 – – – 727,272 – Note e
14.25p 581,623 – (37,705) (46,765) 497,153 377,836 Note b
14.50p 1,186,606 – (248,276) (441,379) 496,951 377,683 Note b
15.25p 775,737 – – – 775,737 589,560 Note b
15.58p 1,416,500 – (50,400) (19,200) 1,346,900 1,023,644 Note b
17.50p 90,000 – – – 90,000 68,400 Note b
27.75p 250,000 – – – 250,000 – Note g
29.00p 444,827 – – – 444,827 – Note g
7,377,565 – (900,781) (564,944) 5,911,840 3,720,123
1.00p 582,525 – – – 582,525 582,525 Note i
13.75p 3,272,728 – – – 3,272,728 – Note f
14.25p 344,245 – (26,769) (62,982) 254,494 193,415 Note c
14.50p 144,494 – – (61,405) 83,089 71,437 Note c
15.25p 404,263 – – – 404,263 389,863 Note d
15.58p 780,500 – (21,000) (89,100) 670,400 509,504 Note c
18.00p 500,000 – – – 500,000 500,000 Note d
27.75p 1,000,000 – – – 1,000,000 – Note h
29.00p 1,655,173 – – – 1,655,173 – Note h
8,683,928 – (47,769) (213,487) 8,422,672 2,246,745
Total all  
schemes 16,061,493 – (948,550) (778,431) 14,334,512 5,966,868
Note a: These options were granted under the initial award of the Enterprise Management Incentive (EMI) 
Scheme. These options are now 100% exercisable.
Note b:  Options were granted under the second and third awards of the Enterprise Management Incentive 
(EMI) Scheme. 20% of these options awarded under the second and third grants of both schemes 
vested on 14 February 2007 and 16% vested on 11 February 2008. A further 40% will vest on 
9 February 2009. The remaining 24% of the options will be carried forward into future years and the 
Remuneration Committee will determine what performance conditions to attach to them in 2009.
Note c:  These options were granted under the second and third awards of Part B (Inland Revenue Unapproved) 
of the Patsystems plc 2003 Share Option Scheme. The vesting status is the same as note b, with the 
exception of 34,540 unapproved options with an exercise price of 14.50p, which all vested in 2008.
Note d:  These options were granted under the second and third awards of Part B (Inland Revenue 
Unapproved) of the Patsystems plc 2003 Share Option Scheme. 844,263 of these options became 
fully vested in 2008 following approval from the Remuneration Committee, the remaining 60,000 
options are subject to the same vesting status as note b. Notes to the Financial Statements
82 Patsystems plc I Annual Report & Accounts 2008
8. ShARE OPTION SChEMES continued Note e: These options were granted under a special award of the Enterprise Management Incentive (EMI) 
Scheme. One third of these options can be exercised after a period of three years after the date of 
the grant. Two thirds of these options can be exercised after a period of three years after the date 
of the grant but subject to achieving company performance targets.
Note f: These options were granted under a special award of Part B (Inland Revenue Unapproved)  
of the Patsystems plc 2003 Share Option Scheme, exercise conditions are as per note e.
Note g: These options were granted under a special award of the Enterprise Management Incentive (EMI) 
Scheme. These options can be exercised after a period of three years after the date of the grant but 
subject to achieving company performance targets.
Note h: These options were granted under a special award of Part B (Inland Revenue Unapproved) of the 
Patsystems plc 2003 Share Option Scheme, exercise conditions are as per note g.
Note i: These options were granted under a special award of Part B (Inland Revenue Unapproved) of the 
Patsystems plc 2003 Share Option Scheme. These options became exercisable on 31 December 2008.
The weighted average fair value per share at the measurement date of options granted during the year was 
nil p (2007:14.0p).
The weighted average share price at the date of grant of options granted during the year was nil p (2007: 28.1p). 
For the options that were exercised during the year, the weighted average share price at the date of exercise 
was 23p (2007: 26p).
The weighted average remaining contractual life of options outstanding at the year end is 6.7 years 
(2007: 7.6 years).
The total fair value that was charged to the income statement in relation to the share options was £329,000 
(2007: £210,000), all of which related to equity settled share based payment transactions.
The fair values of the options have been calculated using the Binomial Model. The model takes into account 
the following factors in determining the fair value of an option:
(a) Share Price and Exercise Price 
Share prices are closing share prices as at the date of grant. Exercise prices are listed in the above schedule.
(b) Expected Term of the Options
It is assumed that the expected life of the options under consideration is 5 years. 
(c) Volatility
Volatility of the Company’s share price has been calculated as the annualised standard deviation of daily 
continuously compounded returns on the Company’s stock, derived from the Company’s historical share 
prices, adjusted for splits, over 5 years back from each date of grant.
(d) Risk-Free Interest Rate
The risk-free rates of interest are assumed to be the yield to maturity on a UK Gilt Strip with the term 
to maturity equal to the expected life of the option. 
(e) Dividends
The valuations take account of the expected future dividend yield at the date of each grant.
 
continued HIGHLIGHTS THE COMPANY THE YEAR IN REVIEW GOVERNANCE FINANCIAL STATEMENTS
83 Patsystems plc I Annual Report & Accounts 2008
The table below sets out the volatilities, risk-free interest rates and dividend yields applied in each valuation:
Date of grant
Volatility 
(%)
Risk-free interest rate
 (%)
Dividend yield 
(%)
24 February 2003 77.8009% 4.6922% 0.00%
13 March 2003 78.3590% 4.7175% 0.00%
30 June 2003 78.4194% 4.6412% 0.00%
27 October 2003 79.8321% 5.7891% 0.00%
01 January 2004 78.6748% 5.4125% 0.00%
30 July 2004 73.6821% 5.8602% 0.00%
27 August 2004 71.7764% 5.6660% 0.00%
16 November 2004 58.9201% 5.2789% 0.00%
04 February 2005 56.6301% 5.1507% 0.00%
17 March 2005 52.4971% 5.4148% 0.00%
06 October 2005 54.9819% 4.7689% 2.00%
23 November 2005 49.8819% 4.8322% 2.00%
14 December 2005 50.0097% 4.8764% 2.00%
14 February 2006 50.1501% 4.7515% 2.00%
19 April 2007 48.4035% 5.2980% 1.00%
07 December 2007 30.0527% 4.5550% 1.00%
31 December 2007 30.9369% 5.6204% 1.00%
9. ShARE CAPITAL AND RESERVES
At 1 January 
2008
*Restated
£’000
Shares issued 
in the year
£’000
Earnings 
for the year
£’000
Dividends 
paid
£’000
Share 
compensation 
expense
£’000
At 31 December 
2008
£’000
Paid up share capital 1,775 20 – – – 1,795
Share premium 3,792 77 – – – 3,869
Other reserves 50 – – – – 50
Retained earnings 810 – 1,196 (602) 329 1,733
6,427 97 1,196 (602) 329 7,447
* see note 1
10. DIVIDENDS  
The dividends paid in the year were as follows:
2008
£’000
2007
£’000
Final dividend in respect of the year ended 31 December 2007  
at 0.21p per share 376 495
Interim dividend at 0.126p per share 226 198
602 693
A final dividend in respect of the year ended 31 December 2008 of 0.237p per share amounting to a total 
dividend of £425,000, is to be proposed at the annual general meeting on 28 April 2009. These financial 
statements do not reflect this dividend payable.  84 Patsystems plc I Annual Report & Accounts 2008
Directors and Advisers
DIRECTORS
Chairman and  
Non-executive Director 
Richard Last
Chief Executive 
David Webber
Finance Director  
Martin Thorneycroft
Non-executive Director,  
Chairman of the Audit Committee 
John Priestley
Non-executive Director,  
Chairman of the combined 
Remuneration and Nominations 
Committee 
Steve Sparke
Company Secretary 
Martin Thorneycroft
ADVISERS
Broker and Nominated adviser 
Seymour Pierce Limited
Lawyers 
DLA Pipers 
Vedder Price
Registered auditors 
PricewaterhouseCoopers LLP 
Principal bankers 
Barclays Bank plc 
Registrars 
Computershare Services plc 
PO Box 82 
The Pavillions 
Bridgewater Road 
Bristol
BS99 7NH
CORPORATE DETAILS
Registered office
Cottons Centre 
Hays Lane 
London 
SE1 2QP
Company number 
4498002
Country of incorporation 
England and Wales
Website 
www.patsystems.com
Stock Exchange symbol
pts Patsystems plc i annual report & accounts 2008
Patsystems was established in 1994 
as one of the original independent 
software vendors to provide a 
complete suite of modular products  
to support the electronic trading  
of futures and options.
Today we enable over 10,000 traders 
to transact in the global derivatives 
market every month with extensive 
market connectivity spanning from 
Latin a merica to Japan. 
ThE comp Any
01 Business Profile
02  Who We are
04  What We do
06  Where We operate
highlighTS
08 Highlights
ThE yEAr in rEviEw 10 Chairman’s Statement
14 Chief Executive’s report
20 Finance director’s review
govErnAncE
26 our Board
28 directors’ report
31 Statement of Corporate 
governance
33 r eport of the Board on 
directors’ r emuneration and  
on group remuneration Policy
finAnciAl STATEmEnTS
37 independent auditors’ report
39 Consolidated income 
Statement
40 Consolidated Balance Sheet
41  Consolidated Cash Flow 
Statement
42 notes to the Financial 
Statements
75 independent auditors’ report
76 Company Balance Sheet 
77 notes to the Financial 
Statements
84 directors and advisors EuropE
London
Cottons Centre 
Hays Lane
London SE1 2QP 
Tel +44 (0)20 7940 0490 
Fax +44 (0)20 7940 0499 
uSA
CHiCago 
175 West Jackson Boulevard 
Suite #2260 
Chicago, iL 60604 
Tel +1 312 922 7600 
Fax +1 312 922 7625 
nEW York
80 Broad Street
5th Floor, Suite #507
new York, nY 10004
Tel +1 212 837 7843
Fax +1 212 837 7792
ASiA pAcific
SingaPorE 
137 Telok a yer Street
#07-07
Singapore 068602
Tel +65 6216 0452
Fax +65 6536 4167
TokYo 
2nd Floor, kakigara-Cho Bldg
10-7, nihon-bashi kakigara-Cho 1-chome
Chuo-ku
Tokyo 103-0014 
Tel +81 (0) 3 3668 9372
Fax +81 (0) 3 2664 7594 
SYdnEY 
Level 6
Underwood House
37 Pitt Street
Sydney nSW 2000
Tel +61 (0) 2 8987 9600
Fax +61 (0) 2 8252 7640
Hong kong 
Unit 2004, kinwick Centre 
no 32 Hollywood road Central
Hong kong Sar
Tel +852 3180 9512 
Fax +852 3180 9399
global growth
Solid returns
annual report & accounts 2008
patsystems plc  annual report & accounts 2008