Arden Partners plc
Annual Report 2010 Arden Partners plc Annual Report 2010
Arden Partners plc is an established stockbroker which provides a range of 
financial services to corporate and institutional clients. Based in the United 
Kingdom and with strong international links, Arden Partners plc’s shares trade 
on London’s AIM market, part of the London Stock Exchange.
Contents
 1 Highlights
 2 Chairman’s Statement
 3 Chief Executive’s Statement
 4 Corporate Governance
 6 Board of Directors
 7 Report of the Directors
 9 Directors’ Remuneration Report
12 Statement of Directors’ Responsibilities
13 Independent Auditor’s Report
14 Consolidated Statement of Comprehensive Income
15 Consolidated Statement of Financial Position
16 Company Statement of Financial Position
17 Consolidated Statement of Cash Flows
18 Company Statement of Cash Flows
19 Consolidated Statement of Changes in Equity
20 Company Statement of Changes in Equity
21 Notes to the Consolidated Financial Statements
41 Corporate Information
42 Notice of Meeting Arden Partners plc Annual Report 2010
1
Highlights
 Year ended Year ended
 31 Oct 2010 31 Oct 2009
Financial
Revenue £13.0m £13.1m
(Loss)/Profit before tax (£0.5m) £1.5m
Share based payments and reorganisation costs £1.8m £0.7m
Underlying profit before tax* £1.3m £2.2m
(Loss)/earnings per share:
  Basic (4.2p) 5.1p
 Underlying Basic
†
 2.4p 8.0p
 Diluted (4.2p) 4.8p
 Underlying Diluted
‡
 1.6p 7.5p
 
Dividend per ordinary share:
 Interim Nil Nil
 Proposed final Nil Nil
Non-financial
Funds raised for clients £183m £73m
Client brokerships 41 39
Average number of staff 58 55
*  Profit before tax as adjusted for the effect of share based payments and reorganisation costs
†  Basic earnings per share as adjusted for the after-tax effect of share based payments and reorganisation costs
‡  Diluted earnings per share as adjusted for the after-tax effect of share-based payments and reorganisation costs Arden Partners plc Annual Report 2010
2
The year’s results are satisfactory and have been delivered 
against a background of challenging conditions and subdued 
equity markets.  Despite this, I am pleased to have seen the 
Group deliver an underlying profit and positive operating cash 
flows before changes in working capital.  These results should 
also be read in the context of the trading update which the 
Board released on 10 September 2010 then advising that the 
Group was unlikely to meet market expectations.  At that stage 
there was no clarity that certain transactions in the pipeline 
would be delivered by the year end so it was deemed prudent 
to issue the update.  Subsequently two large transactions 
occurred by the year end as announced on 2 November 2010.
Arden operates in a highly competitive market place and 
to succeed a broking business needs to have either scale 
or specialist products.  The Board has considered potential 
acquisitions and merger opportunities but none were 
considered suitable.  In the latter months of 2010 Arden has 
sought to reorganise and position itself to compete in what 
could be continued difficult markets.  To this end the Group 
has made changes at both Board and operating levels.
On 22 December 2010 we announced a number of Board 
changes with the appointment of two new independent Non 
Executive Directors with expertise in the Group’s two main 
revenue generating areas, Mark Ansell and Peter Moon.  At 
the same time the Group also announced the appointment 
of its Chief Operating Officer, Steve Wassell, as an Executive 
Director.  This appointment was designed to assist our Chief 
Executive Officer, Jonathan Keeling, to continue to focus on 
our growing Indian franchise.
At an operational level, the Board is overseeing changes 
designed to focus coverage and resource on core UK sectors 
and those with reach into India.  Following the departure of a 
number of staff earlier in the year, and with tight management 
of fixed overhead costs, the Board believes the Group is well 
placed to deliver profitability in the current financial year.  
Our closing balance sheet is strong with a healthy regulatory 
capital position.
On behalf of all of Arden’s stakeholders I would like to thank 
both Sir David Rowe-Ham and Tony Bartlett following their 
retirement from the Board at the end of December 2010.  Sir 
David has been Chairman since Arden’s admission to AIM in 
July 2006 and Tony has carried out various roles, including 
that of CEO, having been involved with Arden almost since its 
inception in 2002.
Finally, I would like to thank all staff and clients for their 
commitment to the business.
Lord Flight
Interim Chairman
18 January 2011
Chairman’s Statement Arden Partners plc Annual Report 2010
3
Introduction
I am pleased to report that the Group has had a satisfactory 
year in a challenging market.  The Group made an underlying 
profit of £1.3m before charging £1.8m for both share-based 
payments (IFRS 2) and one-off reorganisation costs giving 
rise to a loss before taxation of £0.5m (2009: profit £1.5m).  
The Group also generated cash from operations, before 
adjustment for movements in working capital, of £0.6m 
(2009: £2.3m).
Total revenues at £13.0m are on a par with the previous year 
(£13.1m) but based on a different mix with 53% derived from 
corporate finance fees and retainers (2009: 34%).  In the 
last few weeks of the financial year the Group secured two 
large corporate placings which raised some £98m for clients.  
Revenues generated by our Equities Division were down by 
29% to £6.1m from £8.6m.  This statistic was the result of a 
number of factors including reduced trading volumes in the 
London markets, lower returns from Institutions and increased 
competition from other exchange venues.
During the year the Group carried out a reorganisation which 
involved a number of staff leaving giving rise to costs for the 
Group of £0.7m.  We also revisited other overheads and some 
of these have also been rationalised.  This leaves the Group 
with a lower fixed overhead going forward and a refocused 
strategy at both Group and operating levels which is designed 
to deliver higher revenue per head. 
Financial Review
Revenue in the year ended 31 October 2010 was £13.0m 
compared to £13.1m in 2009.  The underlying profit before 
tax was £1.3m compared to £2.2m.  The loss before taxation, 
which is stated after charging share-based payments and 
reorganisation costs, was £0.5m and compares to a profit 
before taxation in 2009 of £1.5m.  Cash generation was 
strong with balances at the year end of £9.0m (2009: £10.5m) 
together with long market making positions of £3.0m (2009: 
£2.5m).  During the year the Company migrated settlement 
services from Pershing to BNP Paribas Securities Services and 
this necessitated a deposit of £0.6m to cover base collateral 
requirements.  Cash balances at the year end represented 
some 283% of our regulatory capital requirement.
The underlying earnings per share (before charging share 
based payments and reorganisation costs) was 2.4p compared 
to 8.0p in 2009.  The basic loss per share was 4.2p compared 
to earnings per share of 5.1p in 2009.
During the period between 5 November and 9 November 
2010 the Company purchased 1,933,521 ordinary shares of 
10p each at a price of 49p per share.  All of these shares will 
be held in Treasury.
Equities Division
Our Equities Division revenue decreased by 29% to £6.1m 
from £8.6m.  Whilst underlying commission levels fell by only 
4%, income from share placings and market making returns 
were lower than anticipated.
Corporate Finance
During the year we completed fifteen corporate finance 
transactions (2009: twelve) including ten M&A mandates, 
four secondary fundraisings and one IPO.  Including retainer 
income, total corporate finance revenues increased by some 
57% to £6.9m from £4.4m.
Outlook
The current year has started satisfactorily and Arden has 
completed one fundraising to date.  The Equities Division 
continues to see pressure on margins, as in the previous year, 
and the corporate finance pipeline whilst satisfactory, remains 
market dependent.  With tight cost control and a strong 
balance sheet a positive result for the full year is anticipated.
Finally, I would like to take this opportunity to thank our staff 
for their commitment through challenging conditions.
Jonathan Keeling
Chief Executive Officer
18 January 2011
Chief Executive’s Statement Arden Partners plc Annual Report 2010
4
Introduction
Whilst the Group is not obliged to comply with the Combined 
Code (June 2008), the Directors have agreed to adopt the 
ethos of those regulations and to disclose information relating 
to corporate governance.
The Directors and the Board
The Board comprises of seven Directors, three of whom are 
Executive, three Independent Non-Executive and one Non-
Executive.  The current composition is as follows:
Lord Flight*  Interim Chairman  
(Appointed 29/6/2010)
Jonathan Keeling Chief Executive Officer
Trevor Norris Group Finance Director and 
 Company Secretary
Steve Wassell  Chief Operating Officer
 (Appointed 22/12/2010)
Mark Ansell* (Appointed 31/12/2010)
Peter Moon* (Appointed 31/12/2010) 
Grahame Whateley Non-Executive
(* denotes Independent Non-Executive Director)
Biographical details of all the Directors are set out on page 6.
The Board has regular scheduled full meetings and will meet 
at other times as necessary.  The Board is responsible for 
strategic and major operational issues affecting the Group.  
It reviews financial performance, regulatory compliance, and 
monitors key performance indicators.  It will consider ad hoc 
any matters of significance to the Group including corporate 
activity.  Attendance at meetings by members of the Board 
during the year ended 31 October 2010 was as follows:
   Remu-
  Audit neration
 Board Committee Committee
Total number of meetings 10 2 1
Lord Flight
1
 2  n/a  n/a
Jonathan Keeling  9  n/a  n/a
Trevor Norris  10  n/a  n/a
Steve Wassell
2
  n/a  n/a  n/a
Mark Ansell
2
  n/a  n/a  n/a
Peter Moon
2
  n/a  n/a  n/a
Grahame Whateley  10  n/a  n/a
Sir David Rowe-Ham 
   (Resigned 31/12/2010)  10  2  1
Tony Bartlett 
   (Resigned 31/12/2010)  8  n/a  n/a
Philip Dayer
3
 
   (Resigned 2/8/2010)  4  1  1
Jeremy Grime
4
  1  n/a  n/a
Re-election of Directors
In accordance with the Company’s Articles, and to ensure 
compliance with the UK Corporate Governance Code, certain 
of the Directors are required to be re-elected at Annual General 
Meetings of the Company.   Since their appointment occurred 
following the last Annual General Meeting, each of Lord 
Flight, Mark Ansell, Peter Moon and Steve Wassell are required 
to retire at the forthcoming Annual General Meeting and, 
being eligible, offer themselves for re-election.  In addition, 
the Articles require any Director who has not been re-elected 
at either of the last two Annual General Meetings to retire by 
rotation and, on that basis, Grahame Whateley is required to 
retire at the forthcoming Annual General Meeting and, being 
eligible, offers himself for re-election.  The Board supports all 
of these re-appointments having assessed their performance 
and value to the Board.
Remuneration Committee
The Remuneration Committee, which comprises the 
Independent Non-Executive Directors, is chaired by Peter 
Moon and has responsibility for determining remuneration of 
Executive Directors and key members of staff.  This Committee 
makes decisions in consultation with the Chief Executive 
Officer and no Director plays a part in any decision about 
their own remuneration.  This Committee also reviews bonus 
and equity arrangements for the Group’s senior employees 
and in addition has responsibility for supervising the Arden 
Partners Share Option Scheme and the grant of options under 
its terms.  
The remuneration of Non-Executive Directors is fixed by the 
Board.
Audit Committee
The Audit Committee, which comprises the Independent 
Non-Executive Directors, is chaired by Mark Ansell and has 
responsibilities including the monitoring and review of:
 ● the Group’s internal control environment; 
 ● financial risks (including market risk in relation to the 
Group’s market making activities); 
 ● financial statements, reports and announcements; 
 ● independence of auditors; 
 ● ensuring the Group has a policy which allows any member 
of staff to raise, in confidence, any concern about possible 
impropriety in matters of financial reporting or other 
matters, and to ensure that suitable arrangements are in 
place for a proportionate independent investigation of 
such matters including any follow-up action required.
Nominations Committee
Given a number of changes to the Board in recent months, the 
Corporate Governance
Notes:
1 Lord Flight attended all but one Board meeting subsequent to his appointment on 29/6/2010. There were no Audit Committee or Remuneration meetings in the 
period from 29/6/2010 to 31/10/2010.
2 Appointments were effected after the year end therefore attendance was not applicable.
3 Philip Dayer was not required to attend meetings following his resignation.
4 Jeremy Grime was appointed Chief Executive Officer designate in June 2010 and was formally appointed a Director on 22/9/2010. He left the Company during 
October 2010 and was therefore only required to attend one meeting as a Director. Arden Partners plc Annual Report 2010
5
Corporate Governance continued
Board has decided to implement a Nominations Committee.  
This Committee’s responsibilities will include; ensuring that 
the size and composition of the Board is appropriate for the 
needs of the Group, selecting the most suitable candidate or 
candidates for the Board and to oversee succession planning 
aspects for the Board.  This Committee will be chaired by 
Peter Moon.
Operations Structure
The Group is managed by an Operations Committee which has 
responsibility for implementation of strategy and monitoring 
progress of delivery against key objectives.  The Committee 
also reviews financial performance against budgets and key 
performance indicators.  This Committee is chaired by Steve 
Wassell in his role as Chief Operating Officer and has both 
Jonathan Keeling and Trevor Norris as permanent members.  
Other members of staff, including the Director of Compliance, 
are co-opted as required.
Risk
The Risk Committee is chaired by the Group Finance Director 
and has both the Chief Operating Officer and the Director 
of Compliance as permanent members.  This Committee is 
charged with monitoring risk exposures including those which 
arise through trading and holding financial instruments, 
regulatory and compliance, capital adequacy and financial 
reporting risk.  This Committee also has responsibility for 
internal audit reviews.
A further explanation of risks which are faced by the Group, is 
set out in note 23 to the Financial Statements.
Internal Control
The Board confirms that there is an ongoing process for 
identifying, evaluating and managing the significant risks 
faced by the Group, which complies with the guidance 
“Internal Control: Guidance for Directors on the Combined 
Code”.  This has been in place throughout the year and up to 
the date of approval of the Financial Statements.  The process 
is regularly reviewed by the Board.
The Directors are responsible for the Group’s system of 
internal control and for reviewing its effectiveness.  However, 
such a system can only provide reasonable, but not absolute, 
assurance against material misstatement or loss.
Going Concern
After making enquiries, the Directors have a reasonable 
expectation that the Group will have adequate resources to 
continue in operational existence for the foreseeable future. 
For this reason, they continue to believe it is appropriate to 
adopt the going concern basis in preparing the Financial 
Statements. Arden Partners plc Annual Report 2010
6
Lord Flight 
(Independent Interim Chairman)
Howard has significant experience of the investment 
management and broking sectors having held senior 
positions at Guinness Mahon, Guinness Flight, Investec 
Asset Management and more recently at Panmure Gordon. 
Howard is also a Commissioner at Guernsey Financial Services 
Commission and became a Member of the House of Lords on 
14 January 2011.
Lord Flight is the Senior Independent Director.
Jonathan Keeling 
(Chief Executive Officer)
Jonathan is one of the founder members of Arden Partners.  A 
graduate in economics, he joined Albert E Sharp as an Equity 
Salesman in 1985, was made a Director in 1989 and Head 
of Small Cap Sales in the early 1990s.  Jonathan left Albert 
E Sharp in 2001 and then briefly worked for Harris Allday 
and Old Mutual Securities before joining the team to form 
Arden Partners.  Jonathan became Chief Executive Officer on 
1 January 2008.
Trevor Norris 
(Group Finance Director and Company Secretary)
Trevor is a Chartered Accountant. Having spent several 
years with KPMG and a brief period as a sole practitioner, 
Trevor joined Midlands Electricity plc in 1995 as a Financial 
Consultant in establishing their embryonic energy services 
company, where he became Managing Director.  Trevor left in 
2000 to act as a Consultant to a number of public companies 
before becoming involved in the early stage formation of 
Arden Partners and was appointed Group Finance Director in 
June 2002.
Steve Wassell 
(Chief Operating Officer)
Having established and developed his own business in 
the outdoor leisure sector over a fifteen year period, prior 
to it being acquired by Tandem Group plc in 2000, Steve 
subsequently held a number of senior operational roles in 
private and publicly quoted companies within a diverse range 
of sectors, including Automotive, Leisure and Social Care.  
Steve joined Arden Partners as Operations Director in January 
2009.
Mark Ansell
(Independent Non-Executive Director)
Mark is a Chartered Accountant and has significant experience 
as a business consultant and director involved in strategic and 
corporate finance advice and in management and leadership 
roles.  Mark has previously held senior roles in many 
organisations including being the Deputy Chief Executive and 
Finance Director of Aston Villa plc, Interim Chief Executive of 
Marketing Birmingham and as a Senior Partner and Partner in 
charge of Corporate Finance of Deloitte in Birmingham and 
the Midlands.
Peter Moon
(Independent Non-Executive Director)
Peter has been involved in the institutional investment 
business for many years. In 2009 he retired from the 
Universities’ Superannuation Scheme Limited where he was 
Chief Investment Officer running a fund of some £27.5 
billion. Previous institutions where he has worked include 
British Airways Pensions, National Provident and Slater 
Walker Investment Management. Peter has also acted as 
adviser to a number of Councils including Lincolnshire and 
Middlesbrough. He has served as Chairman of the NAPF Stock 
Exchange Sub-Committee and as a member of the NAPF 
Investment Committee.
Grahame Whateley
(Non-Executive Director)
After qualifying as a surveyor, Grahame formed the privately 
owned Cedar Group of companies over 38 years ago. He is 
Chairman of The Local Shopping REIT plc, the first REIT to be 
floated on the main market. Grahame is also the Chairman 
of Castle Marinas, which has over 2,000 marina berths on 
8 sites throughout Great Britain.  Formerly Chairman of 
Arden Partners, he has been involved in the business since its 
formation.
Board of Directors Arden Partners plc Annual Report 2010
7
The Directors present their Annual Report and audited 
Financial Statements for the financial year ended 31 October 
2010.
Principal Activities
Arden Partners plc is an established stockbroker which 
provides a range of financial services to corporate and 
institutional clients.  Based in the United Kingdom and with 
strong international links, Arden’s shares trade on London’s 
AIM market, part of the London Stock Exchange.
Business Review and Future Developments
A review of the Group’s operations and performance during 
the financial year, setting out the position at the year end, 
significant changes during the year and an indication of the 
outlook for the future, is contained in the Chief Executive’s 
Statement.
Principal Risks and Uncertainties
By far the major risk the business faces is stock market 
conditions.  Adverse market conditions may have a significant 
negative effect on revenues and profitability.  The Group 
mitigates some of this risk by targeting revenues across a 
number of sectors of the market and by careful control of 
overheads.
Other risks include liquidity risk, credit risk and operational 
risk, and an explanation of these is set out in note 23.
Results and Dividends
The Consolidated Statement of Comprehensive Income for 
the year is set out on page 14.
The Directors are not proposing to pay a final ordinary dividend 
(2009: Nil) and did not pay an interim dividend (2009: Nil).
Directors
The Directors of the Company who held office since 
1 November 2009 were:
Current Directors as at 18 January 2011:
Lord Flight  Interim Chairman and Non-Executive 
(Appointed 29/6/2010)
Jonathan Keeling Chief Executive Officer
Trevor Norris  Group Finance Director and Company 
Secretary
Steve Wassell Chief Operating Officer
 (Appointed 22/12/2010)
Mark Ansell Non-Executive (Appointed 31/12/2010)
Peter Moon Non-Executive (Appointed 31/12/2010)
Grahame Whateley Non-Executive
Previous Directors:
Sir David Rowe-Ham  Previous Chairman and Non-Executive 
(Resigned 31/12/2010)
Tony Bartlett Non-Executive (Resigned 31/12/2010)
Philip Dayer Non-Executive (Resigned 2/8/2010)
Jeremy Grime
1
  Chief Executive Officer (Appointed 
22/9/2010 and resigned 4/1/2011)
Directors’ Interests
The interests of current Directors in shares and options are 
disclosed in the Directors’ Remuneration Report set out on 
pages 9 to 11.
Significant Shareholdings
In addition to the current Directors’ interests shown on 
page 10, the Directors have been notified that the following 
shareholders had interests in 3% or more of the Company’s 
ordinary share capital at 7 January 2011:
Institutitional Holders %
Scottish Widows 8.48
Universities Superannuation Scheme 8.34
AEGON 5.16
Others %
Alasdair Locke 5.35
Richard Day 5.10
James Reed-Daunter 4.63
Robert Griffiths 4.60
Mark Braddock 4.29
Arden Partners Employee Benefit Trust 3.03
Share Capital
Information relating to the Company’s ordinary share capital is 
shown in note 18 to the Financial Statements.
Employee Share Trust
The Group currently operates one Employee Benefit Share 
Trust, the Arden Partners Employee Benefit Trust, which 
administers the Arden Partners plc share schemes as Trustee.  
At 31 October 2010 the Trust held 774,994 (2009: 774,994) 
shares.  The Trustees have agreed to hold these shares to satisfy 
options granted under a share option scheme (the Arden 
Partners Old Scheme – see note 18) prior to the Company’s 
admission on to AIM.
Employment Policies
Employees are encouraged to participate in the success of 
the Group through a performance based incentive scheme 
incorporating bonus and share option arrangements.  Employees 
are kept informed of progress at regular review meetings.
Report of the Directors
Note:
1 Jeremy Grime was announced as Chief Executive Officer designate in June 2010 subject to Regulatory approval. Mr Grime was subsequently appointed an 
Executive Director on 22 September 2010 and it was announced on 6 October 2010 that he would be leaving the Company. His contract of employment formally 
terminated on 4 January 2011 and he resigned as a Director on that date. Arden Partners plc Annual Report 2010
8
Charitable and Political Donations
The Group made charitable donations amounting to £2,400 
(2009: £300) during the year.  The Group did not make any 
political donations (2009: £Nil).
Supplier Payment Policy
It is the Group’s policy to settle debts with its creditors on 
a timely basis, taking into consideration the terms and 
conditions offered by each supplier.  The number of supplier 
days outstanding at the year end, based on the average 
monthly outstanding creditor balances, was 39 days (2009: 
54 days).
Directors’ and Officers’ Liability Insurance
The Company purchases and maintains liability insurance 
for its Directors and Officers as permitted by the Companies 
Act 2006.  This insurance was in force throughout the year 
ended 31 October 2010 and remains in force at the date of 
this Report.
Financial Instruments
Details of the use of financial instruments by the Group and 
Company are contained in note 23 of the Financial Statements.
Post Balance Sheet Events
During the period between 5 November and 9 November 
2010 the Company purchased 1,933,521 ordinary shares of 
10p each at a price of 49p per share.  All of these shares will 
be held in Treasury.
Auditors
All of the current Directors have taken all of the steps that 
they ought to have taken to make themselves aware of 
any information needed by the Company’s auditors for the 
purposes of their audit and to establish that the auditors are 
aware of that information.  The Directors are not aware of any 
relevant audit information of which the auditors are unaware.
The Audit Committee reviews and approves the appointment 
of external auditors and monitors their independence.  BDO 
LLP have expressed their willingness to continue in office and 
an ordinary resolution re-appointing them as auditors and 
authorising the Directors to determine their remuneration will 
be proposed at the forthcoming Annual General Meeting.  
By order of the Board
Trevor Norris 
Company Secretary
18 January 2011
Report of the Directors continued Arden Partners plc Annual Report 2010
9
Introduction
Whilst the Group is not obliged to comply with The Large and 
Medium-sized Companies and Groups (Accounts and Reports) 
Regulations 2008, the Directors have agreed to adopt the 
ethos of those regulations and to disclose information relating 
to the current Directors.  The Directors are not intending to 
comply fully with Schedule VIII of the Large and Medium-sized 
Companies and Groups (Accounts and Reports) Regulations 
2008, but are providing the following disclosures on a 
voluntary basis.  The Report also describes how the Board 
has applied the Principles of Good Governance relating to 
Directors’ remuneration.  This Report is not subject to audit 
and a resolution to approve it will be proposed at the Annual 
General Meeting of the Company at which the Financial 
Statements are to be approved.
Remuneration Policy
Arden Partners plc has a policy to attract, motivate and 
reward individuals of the highest calibre who are committed 
to grow the value of the business and to maximise returns to 
shareholders.
This policy is as relevant to Executive Directors as it is to 
employees and the rewards of Executive Directors are aligned 
with those of shareholders in reflecting the performance of 
the Group.  
The Group operates in a business environment where it is 
common practice to pay bonuses.  This compensates for basic 
salaries which are capped and for the risk of little or no bonus 
in the event of difficult market conditions.
Directors’ Service Contracts
No Director has a service contract for longer than twelve 
months and no contract contains provisions for sums to be 
paid on termination.  Copies of Directors’ service contracts 
will be available for inspection at the Annual General Meeting.
Pension Arrangements
The Group does not operate a final salary pension scheme.  
Executive Directors who are entitled to receive pension 
contributions may nominate a defined contribution pension 
scheme into which the Company makes payments on their 
behalf.
Share Options
Details of the Arden Partners plc Share Option Scheme 
are given in note 18 to the Financial Statements.  The 
Remuneration Committee has responsibility for supervising 
the scheme and the grant of options under its terms.
The Company’s policy is to use the Share Option Scheme to 
attract and retain key senior employees including the Executive 
Directors.  Any grant of options is at the discretion of the 
Remuneration Committee and will take into account individual 
performance and responsibilities.  Where appropriate, a grant 
of options will incorporate performance criteria and for 
Executive Directors may incorporate earnings per share, total 
shareholder return and return on capital employed.  Some of 
these aspects will be bench-marked against a pool of similar 
competitors. 
Directors’ Remuneration Report
Directors’ Remuneration
A summary of the total remuneration paid to Directors who served during the year ended 31 October 2010 is set out below:
 Salary, fees Pension Incentive Compensation Total
 and benefits contributions payments for loss of office 2010
 £’000 £’000 £’000 £’000 £’000
Executive Directors
Jonathan Keeling  187  22  –  –  209
Trevor Norris  127  15  –  –  142
Jeremy Grime
1
  54  2  4  40  100
Non-Executive Directors
Sir David Rowe-Ham 57 – – – 57
Tony Bartlett 29 – – – 29
Philip Dayer
2
 26 – – – 26
Lord Flight
3
 14 – – – 14
Grahame Whateley 29 – – – 29
Total 523 39 4 40 606
Note:
1 Covers the period June 2010 to October 2010.
2 Covers the period to 2 August 2010.
3 Covers the period from 29 June 2010. Arden Partners plc Annual Report 2010
10
Directors’ Remuneration Report continued
A summary of the total remuneration paid to current Directors who served during the year ended 31 October 2009 is set out 
below:
 Salary, fees Pension Incentive Total
 and benefits contributions payments 2009
 £’000 £’000 £’000 £’000
Executive Directors
Jonathan Keeling  164  19  135 318
Trevor Norris  102 12  25  139
Non-Executive Directors
Sir David Rowe-Ham 55 – – 55
Tony Bartlett 27 – – 27
Philip Dayer 33 – – 33
Grahame Whateley 27 – – 27
Total 408 31 160 599
Directors’ Interests in Ordinary Shares of Arden Partners plc
The Directors in office at the year end had interests in the ordinary share capital of the Company (all of which were beneficial) 
as shown below:
 31 October   31 October
 2010 Percentage 2009
 Number Interest Number
Executive Directors
Jonathan Keeling 1,216,881 4.78% 1,201,490
Trevor Norris 630,600 2.48% 627,750
Jeremy Grime  158,266  0.62%  –
Non-Executive Directors
Sir David Rowe-Ham  30,864  0.12%  30,864
Tony Bartlett  857,000  3.36%  857,000
Howard Flight  – – –
Grahame Whateley  1,174,010  4.61%  1,174,010
Directors’ Interests in Share Options
The following Directors had interests in options over ordinary shares of the Company as shown below:
   Options
  31 October granted 31 October
  2009 in year 2010
 Notes Number Number Number
Executive Directors
Jonathan Keeling 1 490,000 – 490,000
Trevor Norris 2 167,399 – 167,399
Jeremy Grime  3  400,000  –  400,000
Non-Executive Directors
Tony Bartlett 2 334,798 – 334,798
Totals  1,392,197 – 1,392,197 Arden Partners plc Annual Report 2010
11
Directors’ Remuneration Report continued
Notes:
1.  These options were granted on 6 February 2008 under the Arden Partners Share Plan 2007 and are exercisable subject 
to the achievement of Company performance related conditions. The options have an exercise price of 10.0p per share, 
cannot normally be exercised until 6 February 2011, and have an expiry date of 6 February 2018.
2. These options were granted under the Arden Partners Limited Share Option Scheme (“the Old Scheme”) on 24 April 2006 
in their capacity as Executive Directors and no performance criteria are attached to the exercise of these options. These 
options became eligible for exercise on 24 April 2009 at a price of 47.8p per share and have an expiry date of 24 April 2016.
3. These options had been granted in two tranches on 21 September 2007 and 22 October 2009 in his capacity as a specialist 
salesman. Subsequent to the year end 67,709 options lapsed.
Further details of option schemes are set out in note 18 to the Financial Statements.
Approval
This Report was approved by the Remuneration Committee and signed on its behalf by:
Lord Flight
Interim Chairman
18 January 2011 Arden Partners plc Annual Report 2010
12
Directors’ responsibilities
The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law 
and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have 
elected to prepare the Group and Company financial statements in accordance with International Financial Reporting Standards 
(IFRSs) as adopted by the European Union. Under company law the Directors must not approve the financial statements unless 
they are satisfied that they give a true and fair view of the state of affairs of the Group and Company and of the profit or loss 
of the Group for that period. The Directors are also required to prepare financial statements in accordance with the rules of the 
London Stock Exchange for companies trading securities on the Alternative Investment Market.
In preparing these financial statements, the Directors are required to:
 ● select suitable accounting policies and then apply them consistently;
 ● make judgements and accounting estimates that are reasonable and prudent;
 ● state whether they have been prepared in accordance with IFRSs as adopted by the European Union, subject to any material 
departures disclosed and explained in the financial statements;
 ● prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and 
Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s 
transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to 
ensure that the financial statements comply with the requirements of the Companies Act 2006. They are also responsible for 
safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and 
other irregularities.
Website publication
The Directors are responsible for ensuring the annual report and the financial statements are made available on a website. 
Financial statements are published on the Company’ s website in accordance with legislation in the United Kingdom governing the 
preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance 
and integrity of the Company’s website is the responsibility of the Directors. The Directors’ responsibility also extends to the 
ongoing integrity of the financial statements contained therein.
Statement of Directors’ Responsibilities in Respect of the Annual 
Report and the Financial Statements Arden Partners plc Annual Report 2010
13
Independent Auditor’s Report to the members of  
Arden Partners plc
We have audited the ﬁnancial statements of Arden Partners plc for the year ended 31 October 2010 which comprise the 
Consolidated Statement of Comprehensive Income, the Consolidated and Company Statements of Financial Position, the 
Consolidated and Company Statements of Cash Flows, the Consolidated and Company Statements of Changes in Equity 
and the related notes.  The ﬁnancial reporting framework that has been applied in their preparation is applicable law and 
International Financial Reporting Standards (IFRSs) as adopted by the European Union and, as regards the parent company 
ﬁnancial statements, as applied in accordance with the provisions of the Companies Act 2006. 
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 
2006.  Our audit work has been undertaken so that we might state to the company’s members those matters we are required 
to state to them in an auditor’s report and for no other purpose.  To the fullest extent permitted by law, we do not accept or 
assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this 
report, or for the opinions we have formed.
Respective responsibilities of Directors and auditors
As explained more fully in the statement of directors’ responsibilities, the directors are responsible for the preparation of 
the ﬁnancial statements and for being satisﬁed that they give a true and fair view.  Our responsibility is to audit and express 
an opinion on the ﬁnancial statements in accordance with applicable law and International Standards on Auditing (UK and 
Ireland).  Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors. 
Scope of the audit of the financial statements
A description of the scope of an audit of ﬁnancial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/
private.cfm. 
Opinion on financial statements
In our opinion: 
 the ﬁnancial statements give a true and fair view of the state of the group’s and the parent company’s affairs as at 31 
October 2010 and of the group’s loss for the year then ended;
 the group ﬁnancial statements have been properly prepared in accordance with IFRSs as adopted by the European Union;
 the parent company ﬁnancial statements have been properly prepared in accordance with IFRSs as adopted by the European 
Union and as applied in accordance with the provisions of the Companies Act 2006; and
 the ﬁnancial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the directors’ report for the ﬁnancial year for which the ﬁnancial statements are 
prepared is consistent with the ﬁnancial statements. 
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, 
in our opinion:
 adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been 
received from branches not visited by us; or
 the parent company ﬁnancial statements are not in agreement with the accounting records and returns; or
 certain disclosures of directors’ remuneration speciﬁed by law are not made; or
 we have not received all the information and explanations we require for our audit.
Peter Chidgey (senior statutory auditor)
For and on behalf of BDO LLP, statutory auditor
London
United Kingdom
18 January 2011
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). Arden Partners plc Annual Report 2010
14
  2010 2009
 Note £’000 £’000
Revenue 2 13,046 13,059
Administrative expenses   (13,622) (11,622)
(Loss)/profit from operations  (576) 1,437
Finance income  7 73 86
Finance costs 8 (9) (1)
(Loss)/profit before taxation  (512) 1,522
Income tax expense 9 (519) (276)
(Loss)/profit after taxation  (1,031) 1,246
Other comprehensive income:
Movement in fair value of available for sale investments   –  2
Other comprehensive income for the year   –  2
Total comprehensive (loss)/income for the year
attributable to equity shareholders   (1,031)  1,248
   
(Loss)/earnings per share   
Basic 10 (4.2p) 5.1p
Diluted 10 (4.2p) 4.8p
Consolidated Statement of Comprehensive Income
For the year ended 31 October 2010 Arden Partners plc Annual Report 2010
15
Consolidated Statement of Financial Position
At 31 October 2010
  2010 2010 2009 2009
 Note £’000 £’000 £’000 £’000
Assets     
Non-current assets     
Property, plant and equipment 11  401  258
Deferred tax asset 13  280  618
Total non-current assets   681  876
Current assets     
Trading investments 14 3,207  2,660 
Trade and other receivables 15 6,210  15,660 
Cash and cash equivalents 16 9,014  10,523 
Total current assets   18,431  28,843
Total assets   19,112  29,719
Current liabilities     
Trade and other payables 17 (6,895)  (17,182) 
Corporation tax liability  (171)  (685) 
Total current liabilities   (7,066)  (17,867)
Non-current liabilities     
Deferred tax liability 13  (53)  (44)
Total non-current liabilities   (53)  (44)
Total liabilities   (7,119)  (17,911)
Net assets    11,993  11,808
Shareholders’ equity     
Called up share capital 18  2,544  2,494
Share premium account   2,926  2,736
Employee Benefit Trust reserve   (648)  (648) 
Retained earnings   7,171  7,226
Total equity   11,993  11,808
The Financial Statements were approved by the Board of Directors and authorised for issue on 18 January 2011.
Trevor Norris Lord Flight
Group Finance Director Interim Chairman
The notes on pages 21 to 40 form part of these financial statements. Arden Partners plc Annual Report 2010
16
Company number: 4427253
  2010 2010 2009 2009
 Note £’000 £’000 £’000 £’000
Assets     
Non-current assets     
Property, plant and equipment 11  401  258
Investments 12  –  –
Deferred tax asset 13  280  618
Total non-current assets   681  876
Current assets     
Trading investments  14 3,207  2,660 
Trade and other receivables 15 6,398  15,848 
Cash and cash equivalents 16 9,010  10,519 
Total current assets   18,615  29,027
Total assets   19,296  29,903
Current liabilities     
Trade and other payables 17 (7,079)  (17,366) 
Corporation tax liability  (171)  (685) 
Total current liabilities   (7,250)  (18,051)
Non-current liabilities     
Deferred tax liability 13  (53)  (44)
Total non-current liabilities   (53)  (44)
Total liabilities   (7,303)  (18,095)
Net assets    11,993  11,808
Shareholders’ equity     
Called up share capital 18  2,544  2,494
Share premium account   2,926  2,736
Employee Benefit Trust reserve   (648)  (648)
Retained earnings   7,171  7,226
Total equity   11,993  11,808
The Financial Statements were approved by the Board of Directors and authorised for issue on 18 January 2011.
Trevor Norris Lord Flight
Group Finance Director Interim Chairman
The notes on pages 21 to 40 form part of these financial statements.
Company Statement of Financial Position
At 31 October 2010 Arden Partners plc Annual Report 2010
17
Consolidated Statement of Cash Flows
For the year ended 31 October 2010
  2010 2009
 Note £’000 £’000
Operating activities before taxation   
Net (loss)/profit before tax  (512) 1,522
Adjustments for:   
Fair value adjustments  (155) (116)
Depreciation  236 256
Impairment of available for sale investments  – 20
Net interest receivable  (64) (85)
Share-based payments  1,079 702
Operating cash flow before changes in working capital  584 2,299
Decrease/(increase) in trade and other receivables  9,439 (12,525)
Increase in financial assets  (400) (2,313)
(Decrease)/increase in trade and other payables  (10,266) 14,235
Purchases of available for sale investments  – (27)
Cash generated from operations  (643) 1,669
Income taxes paid  (790) (200)
Cash flows from operating activities  (1,433) 1,469
Investing activities   
Purchases of property, plant and equipment  (379) (191)
Interest received  63 98
Net cash from investing activities  (316) (93)
Financing activities   
Purchase of own shares  – (448)
Issue of shares  240 114
Net cash from financing activities  240 (334)
(Decrease)/increase in cash and cash equivalents  (1,509) 1,042
Cash and cash equivalents at the beginning of the year  10,523 9,481
Cash and cash equivalents at the end of the year 16 9,014 10,523
The notes on pages 21 to 40 form part of these financial statements. Arden Partners plc Annual Report 2010
18
Company Statement of Cash Flows
For the year ended 31 October 2010
  2010 2009
 Note £’000 £’000
Operating activities before taxation   
Net (loss)/profit before tax  (512) 1,522
Adjustments for:   
Fair value adjustments  (155) (116)
Depreciation  236 256
Impairment of available for sale investments  – 20
Net interest receivable  (64) (85)
Share-based payments  1,079 702
Operating cash flow before changes in working capital  584 2,299
Decrease/(increase) in trade and other receivables  9,439 (12,513)
Increase in financial assets  (400) (2,313)
(Decrease)/increase in trade and other payables  (10,266) 14,304
Purchases of available for sale investments  – (27)
Cash generated from operations  (643) 1,750
Income taxes paid  (790) (200)
Cash flows from operating activities  (1,433) 1,550
Investing activities   
Purchases of property, plant and equipment  (379) (191)
Interest received  63 98
Net cash from investing activities  (316) (93)
Financing activities   
Purchase of own shares  – (448)
Issue of shares  240 114
Net cash from financing activities  240 (334)
(Decrease)/increase in cash and cash equivalents  (1,509) 1,123
Cash and cash equivalents at the beginning of the year  10,519 9,396
Cash and cash equivalents at the end of the year 16 9,010 10,519
The notes on pages 21 to 40 form part of these financial statements. Arden Partners plc Annual Report 2010
19
Consolidated Statement of Changes in Equity
For the year ended 31 October 2010
Consolidated Statement of changes in equity for the year ended 31 October 2010
   Employee 
  Share Benefit Available
 Share premium Trust for sale Retained
 capital account  reserve reserve earnings Total
 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 31 October 2009 2,494  2,736  (648)  –  7,226  11,808
Loss for year – – – – (1,031)  (1,031)
Total comprehensive loss for the year – – – – (1,031)  (1,031)
Tax taken to equity  – – – –  (103)  (103)
Share based payments  – – – –  1,079  1,079
Issue of shares  50  190  – –  –  240
Balance at 31 October 2010 2,544  2,926  (648)  –  7,171  11,993
Consolidated Statement of changes in equity for the year ended 31 October 2009
   Employee 
  Share Benefit Available
 Share premium Trust for sale Retained
 capital account  reserve reserve earnings Total
 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 31 October 2008 2,470 2,646 (200) (2) 5,204 10,118
Profit for year – – – – 1,246  1,246
Other comprehensive income for the year – – – 2  –  2
Total comprehensive income for the year – – – 2  1,246  1,248
Tax taken to equity – – – – 74  74
Share based payments – – – – 702  702
Issue of shares  24  90   –  – – 114
Purchase of own shares  –  –  (448)  –  – (448)
Balance at 31 October 2009 2,494  2,736  (648) –   7,226  11,808
Notes
1. The Employee Benefit Trust reserve represents shares held in the parent company by the Arden Partners Employee Benefit 
Trust and which is consolidated in these financial statements in accordance with the accounting policy in note 1.
2.  The available for sale reserve represents unrealised gains and losses on available for sale investments, being the difference 
between the acquisition cost and fair value at the balance sheet date. The reserve is shown net of related deferred tax.
The notes on pages 21 to 40 form part of these financial statements. Arden Partners plc Annual Report 2010
20
Company Statement of changes in equity for the year ended 31 October 2010
   Employee
  Share Benefit Available
 Share premium Trust for sale Retained
 capital account reserve reserve earnings Total
 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 31 October 2009 2,494  2,736  (648)  –  7,226  11,808
Loss for year  –  –  – –  (1,031) (1,031)
Total comprehensive loss for the year  –  – –  –  (1,031)  (1,031)
Tax taken to equity  –  –  –  –  (103)  (103)
Share based payments –  –  –  –  1,079  1,079
Issue of shares  50  190  – –  –  240
Balance at 31 October 2010  2,544  2,926  (648)  – 7,171  11,993
Company Statement of changes in equity for the year ended 31 October 2009
   Employee
  Share Benefit Available Restated
 Share premium Trust for sale Retained
 capital account reserve reserve earnings Total
 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 31 October 2008  2,470  2,646  (200)  (2)  5,204  10,118
Profit for year – –  – –  1,246  1,246
Other comprehensive income for the year  – –  –  2  –  2
Total comprehensive income for the year  – – –  2  1,246  1,248
Tax taken to equity –  – – –  74  74
Share based payments  –  – – –  702  702
Issue of shares  24  90  –  – – 114
Purchase of own shares  –  – (448)  –  – (448)
Balance at 31 October 2009  2,494  2,736  (648)  –  7,226  11,808
The notes on pages 21 to 40 form part of these financial statements.
Company Statement of Changes in Equity
For the year ended 31 October 2010 Arden Partners plc Annual Report 2010
21
Notes to the Consolidated Financial Statements
1) Accounting policies
Arden Partners plc is a public limited company incorporated in the United Kingdom under the Companies Act. The address 
of the Company’s registered office is set out on page 41. 
Basis of preparation
The principal accounting policies adopted in the preparation of the financial statements are set out below.  The policies 
have been consistently applied to the Group and Company to all the years presented unless otherwise stated.
These policies are in accordance with International Financial Reporting Standards, International Accounting Standards 
and Interpretations (collectively, “IFRS”) issued by the International Accounting Standards Board as endorsed for use 
in the European Union.  The Group and Company Financial Statements have been prepared in accordance with IFRS.  
These financial statements have also been prepared in accordance with those parts of the Companies Act 2006 that are 
applicable to companies preparing their financial statements in accordance with IFRS.
The Consolidated and Company Financial Statements have been prepared under the historical cost convention as modified 
by the revaluation of certain financial assets, financial liabilities and derivative instruments to fair value.
Basis of consolidation
Where the Company has the power, either directly or indirectly, to govern the financial and operating policies of another 
entity or business so as to obtain benefits from its activities, it is classified as a subsidiary.  The consolidated financial 
statements present the results of the Company and its subsidiaries (the “Group”) as if they formed a single entity.  
Intercompany transactions and balances between group companies are therefore eliminated in full. 
The Company has taken advantage of Section 408 of the Companies Act 2006, and the Statement of Comprehensive 
Income of the parent company is not presented.  The parent company’s loss after taxation for the financial year amounted 
to £1,031,000 (2009: profit after taxation £1,246,000).
New standards and amendments to existing standards that have been adopted by the Group in the year ended 
31 October 2010:
During the year ended 31 October 2010, the Group adopted the following new standards and amendments to standards:
— IAS 1 (revised) ‘Presentation of Financial Statements’. Whilst the adoption of the revised standard has no effect on 
the results reported in the Group’s consolidated and Company financial statements, the Group has elected to report 
its financial performance in a single Consolidated Statement of Comprehensive Income.
— IFRS 8 ‘Operating Segments’. This standard requires operating segments to be identified on the same basis as that 
used for internal management reporting, regarding components of the Group that are regularly reviewed by the chief 
operating decision maker to allocate resources to segments and to assess their performance.  The chief operating 
decision maker is the Group’s Chief Executive.
The Group’s operating segments are considered to be the Equities and Corporate Finance divisions. Although these 
operations generate different revenue streams, additional discrete divisional information is not prepared or reviewed by 
the chief operating decision maker. Resources are allocated and performance assessed as a single business unit.
— IFRS 7 (revised) ‘Financial Instruments’: The amendment requires enhanced disclosures about fair value measurement 
and liquidity risk. In particular, the amendment requires disclosure of fair value measurements by level of hierarchy and 
further details can be found in note 23.
Standards, interpretations and amendments to published standards not yet effective
Certain new standards, amendments and interpretations to existing standards have been published that are mandatory for 
the Group’s accounting periods beginning on or after 1 November 2010 or later periods and which the Group has decided 
not to adopt early. These are:
— Improvements to IFRSs (2009) effective for accounting periods on or after 1 January 2010.  The improvements 
in this amendment clarify the requirements of IFRSs and eliminate inconsistencies within and between standards. Arden Partners plc Annual Report 2010
22
1) Accounting policies (continued)
The changes include the clarification that: The disclosure requirements of other IFRSs do not generally apply to non-current 
assets (or disposal groups) classified as held for sale; total assets for each reportable segment need only be disclosed when 
such information is regularly provided to the chief operating decision maker; that the terms of a liability that could, at the 
option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification; and, 
that only expenditures which result in a recognised asset can be classified as a cash flow from investing activities. It also 
confirms that the combination of entities or businesses under common control and the contribution of a business on the 
formation of a joint venture are outside of the scope of IFRS 2 and that IFRIC 9 also does not apply to embedded derivatives 
in contracts acquired in such transactions.
The Amendment changes IAS 38 to bring the guidance on the treatment of intangible assets acquired as part of a business 
combination in line with the requirements of IFRS 3(R) and to clarify the description of valuation techniques used in the 
absence of an active market. It removes the restriction in IFRIC 16 on the entity that can hold a hedging instrument 
used in the hedge of a net investment in a foreign operation and also introduces changes to IAS 17 that eliminate the 
inconsistencies between the general lease classification guidance and the guidance applicable to the classification of the 
land element in long-term leases of land and buildings. The latter changes may lead to an increased number of instances 
when the land element of a lease of land and buildings is classified as a finance lease.
Group Cash-settled Share-based Payment Transactions (Amendments to IFRS 2) (effective for accounting periods 
on or after 1 January 2010). This Amendment clarifies that, where a parent (or another group entity) has an obligation to 
make a cash-settled share-based payment to another group entity’s employees or suppliers, the entity receiving the goods 
or services should account for the transaction as equity-settled. The Amendment also moves the IFRIC 11 requirements in 
respect of equity-settled share-based payment transactions among group entities and the clarification of the scope of IFRS 
2 contained within IFRIC 8 into IFRS 2 itself. The Board are assessing the impact of this amendment on the Group; this is 
not expected to be significant.
Revised IAS 24 Related Party Disclosures (effective for accounting periods beginning on or after 1 January 2011). The 
revision to IAS 24 is in response to concerns that the previous disclosure requirements and the definition of a related party 
were too complex and difficult to apply in practice, especially in environments where Government control is pervasive. The 
Board are assessing the impact of this amendment on the Group; this is not expected to be significant.
IFRS 9 Financial Instruments (effective for accounting periods beginning on or after 1 January 2013). IFRS 9 will eventually 
replace IAS 39 in its entirety. However, the process has been divided into three main components: Classification and 
measurement; impairment; and, hedge accounting. As each phase is completed, it will delete the relevant portions of IAS 
39 and create new chapters in IFRS 9. The Board are assessing the impact of this amendment on the Group; this is not 
expected to be significant.
The following are also standards, interpretations and amendments to published statements not yet effective, but which are 
not considered to be relevant to the Group:
— Classification of Rights Issues (Amendment to IAS 32) (effective for accounting periods beginning on or after
 1 February 2010).
— IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments (effective for accounting periods beginning 
on or after 1 July 2010).
— Amendment to IFRS 1 First-time Adoption of International Financial Reporting Standards (effective for 
accounting periods beginning on or after 1 July 2010).
— Amendment to IFRIC 14 IAS 19 – Limit on a Defined Benefit Asset, Minimum Funding Requirements and 
their Interaction (effective for accounting periods beginning on or after 1 January 2011).
— Improvements to IFRSs (2010) (effective for accounting periods beginning on or after 1 January 2011).
— Disclosures – Transfer of Financial Assets (Amendment to IFRS 7) (effective for accounting periods beginning on 
or after 1 July 2011).
Notes to the Consolidated Financial Statements continued Arden Partners plc Annual Report 2010
23
Notes to the Consolidated Financial Statements continued
1) Accounting policies (continued)
Revenue
Revenue comprises the net trading gains or losses of shares traded on a principal basis, commissions and fees earned 
from trading shares on an agency basis, together with fees derived from corporate finance activities, broking services and 
retainers.
Revenue is recognised at the fair value of the consideration receivable, to the extent that it is probable that the economic 
benefits associated with the transaction will flow to the Group.  Where consideration includes financial instruments or 
other non cash items, revenue is measured at fair value using an appropriate valuation method. 
Corporate Finance Division
The Group recognises revenue at the point of completing an assignment to the extent that it has obtained the right to 
consideration through performance of its services to clients.
Deal fees and placing commissions are only recognised once there is an absolute contractual entitlement for the Group to 
receive them.
Corporate retainers are recognised on an accruals basis.
Equities Division
Institutional commissions are recognised on trade dates.  Net trading gains or losses are the realised and unrealised profits 
and losses from market making long and short positions on a trade date basis.
Interest receivable
Financial income, which comprises principally interest received, is recognised using the effective interest rate method.
Property, plant and equipment
Property, plant and equipment is stated at cost, net of depreciation and impairment in value.
Depreciation is provided to write off the cost, less estimated residual values, of all tangible fixed assets evenly over their 
expected useful lives on a straight line basis.  It is calculated at the following rates:
Improvements to leasehold buildings — 33.33% per annum
Fixtures, fittings and computer equipment — 33.33% per annum 
  
Investments
Investments in subsidiaries are stated at cost less, where appropriate, provision for impairment.
Financial assets
Financial assets comprise trading investments, trade receivables, other receivables, and cash and cash equivalents.  The 
Group classifies its financial assets into one of the categories discussed below, depending on the purpose for which the 
asset was acquired.  The Group has not classified any of its financial assets as held to maturity.
The Group’s accounting policy for each category is as follows:
 ● Trading investments: Trading investments comprise available for sale investments and held for trading investments:
 ● Available for sale: This category comprises the Group’s investments in entities not qualifying as subsidiaries, 
associates or jointly controlled entities.  They are carried at fair value with changes in fair value recognised directly 
in a separate component of equity, the available for sale reserve.  Where there is a significant or prolonged decline 
in the fair value of an available for sale financial asset (which constitutes objective evidence of impairment), the full 
amount of the impairment, including any amount previously charged to equity, is recognised in the Statement of 
Comprehensive Income.  Purchases and sales of available for sale financial assets are recognised on contract date 
with any change in fair value between trade date and the balance sheet date being recognised in the available for 
sale reserve.  On sale, the amount held in the available for sale reserve associated with that asset is removed from 
equity and recognised in the Statement of Comprehensive Income. Arden Partners plc Annual Report 2010
24
1) Accounting policies (continued)
 ● Held for trading: Held for trading investments represent long market making positions and other investments 
held for resale in the near term and are stated at fair value with gains and losses from changes in fair value being 
taken to the Statement of Comprehensive Income.  For trading investments which are quoted in active markets, fair 
values are determined by reference to the current quoted bid price.  Other trading investments may include options 
and warrants which are valued using the Black-Scholes model.   
 ● Loans and receivables: These assets are non-derivative financial assets with fixed or determinable payments that are 
not quoted in an active market.  They arise principally through the provision of goods and services to customers (e.g. 
trade receivables), but also incorporate other types of contractual monetary asset.  They are initially recognised at fair 
value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at 
amortised cost using the effective interest rate method, less provision for impairment.  
Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on the part 
of the counterparty or default or significant delay in payment) that the Group will be unable to collect all of the amounts 
due under the terms receivable, the amount of such a provision being the difference between the net carrying amount 
and the present value of the future expected cash flows associated with the impaired receivable.  For trade receivables, 
which are reported net, such provisions are recorded in a separate allowance account with the loss being recognised within 
administrative expenses in the Statement of Comprehensive Income.  On confirmation that the trade receivable will not be 
collectable, the gross carrying value of the asset is written off against the associated provision.
The Group’s loans and receivables comprise trade and other receivables and cash and cash equivalents in the balance sheet.
 ● Market receivables: comprise sold security transactions awaiting settlement at the year end.  These balances are 
shown gross and are recognised by trade date.
 ● Cash and cash equivalents: Cash and cash equivalents comprise cash in hand, bank balances and call deposits that are 
readily convertible to a known amount of cash and are not subject to a significant risk of changes in value.  Cash and 
cash equivalents all have original dates to maturity of three months or less.
Financial liabilities 
The Group classifies its financial liabilities into one of the categories discussed below, depending on the purpose for which 
the liability was acquired.  The Group’s accounting policy for each category is as follows:
 ● Held for trading: Held for trading liabilities represent short market-making positions and are stated at fair value.  Gains 
and losses from changes in fair value are taken to the Statement of Comprehensive Income.
For trading liabilities which are quoted in active markets, fair values are determined by reference to the current quoted 
offer price. 
 
 ● Fair value through profit or loss: The Group does not have any financial liabilities designated as being at fair value 
through profit or loss.  
 ● Other financial liabilities: These comprise market payables, trade payables, other payables and accruals.  They are 
initially recognised at fair value and subsequently carried at amortised cost using the effective interest method.
 ● Market payables: These comprise purchased security transactions awaiting settlement at the year end.  These balances 
are shown gross and are recognised by trade date.
 
Pledged assets
The Group may enter into stock borrowing arrangements with certain institutions which are entered into on a collateralised 
basis with securities or cash advances received as collateral.
Under such arrangements a security is purchased with a commitment to return it at a future date at a future agreed price.  
The securities purchased are not recognised on the balance sheet and the transaction is treated as a secured loan made for 
the purchase price.
Notes to the Consolidated Financial Statements continued Arden Partners plc Annual Report 2010
25
Notes to the Consolidated Financial Statements continued
1) Accounting policies (continued)
Where cash has been used to effect the purchase, the cash collateral amount is recorded as a pledged asset on the 
balance sheet.
Foreign currency transactions
Transactions in foreign currencies are translated into sterling at the exchange rate ruling at the date of the transaction.  
Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated into sterling at 
the exchange rate ruling at the balance sheet date.  Foreign exchange differences arising on translation are recognised in 
the Statement of Comprehensive Income.
Taxation
Income tax on the profit or loss for the periods presented comprises current and deferred tax.  Income tax is recognised 
in the Statement of Comprehensive Income except to the extent that it relates to items recognised directly in equity, in 
which case it is recognised directly in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively 
enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the 
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.  
The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount 
of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.  
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against 
which the asset can be utilised.  Deferred tax assets are reduced to the extent that it is no longer probable that the related 
tax benefit will be realised.  
Dividends
Equity dividends are recognised when they become legally payable.  Interim equity dividends are recognised when paid.  
Final equity dividends are recognised when approved by shareholders at an Annual General Meeting.  Dividends unpaid 
at the balance sheet date are only recognised as a liability at that date to the extent that they are appropriately authorised 
and are no longer at the discretion of the Company.  
Leased assets
Assets acquired under finance leases where the Group has substantially all the risks and rewards of ownership are 
capitalised.  The outstanding future lease obligations are shown in trade and other payables.  Operating lease rentals are 
charged to the Statement of Comprehensive Income on a straight line basis over the period of the lease.   
Pension costs
Contributions to defined contribution pension schemes are charged to the Statement of Comprehensive Income in the 
period in which they become payable.
Employee Benefit Trust
Arden Partners Employee Benefit Trust is a trust established by Trust deed in 2006 and the assets and liabilities are held 
separately from the Company.  Its assets and liabilities are fully consolidated in the consolidated and company balance 
sheets, and holdings of Arden Partners plc shares by the Arden Partners Employee Benefit Trust are shown as a deduction 
from company and consolidated equity under the heading “Employee Benefit Trust reserve”.
 
Share-based payments — equity settled
All options granted are recognised as an employee expense with a corresponding increase in equity.  The fair value is 
measured at grant date and spread over the period during which the employees become unconditionally entitled to the 
options.  The fair value is measured using the Black-Scholes model, taking into account the terms and conditions upon 
which the options were granted. Arden Partners plc Annual Report 2010
26
Notes to the Consolidated Financial Statements continued
1) Accounting policies (continued)
Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at 
each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the 
number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. 
As long as all other vesting conditions are satisfied, a charge is made irrespective of whether the market conditions are 
satisfied. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
Critical accounting estimates
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect 
the reported amounts of assets, liabilities, income and expense.  The estimates and associated assumptions are based on 
historical experience and various other factors that are believed to be reasonable in the circumstances, the results of which 
form the basis of judgements about carrying values of assets and liabilities.  Actual results may differ from those amounts. 
Judgements made by management that may have a significant effect on the financial statements relate principally 
to the Group’s equity-settled share-based remuneration schemes for employees. Employee services received, and the 
corresponding increase in equity, are measured by reference to the fair value of the equity instruments at the date of grant. 
The fair value of share options is estimated by using valuation models, such as Black-Scholes, on the date of grant based 
on certain assumptions. Those assumptions are described in note 18 and include, among others, the dividend growth rate 
and expected volatility. Arden Partners plc Annual Report 2010
27
2) Revenue
Revenue is wholly attributable to the principal activity of the Group and arises solely within the United Kingdom.
  2010 2009
  £’000 £’000
Equities Division  6,113 8,613
Corporate Finance Division  6,933 4,446
Total revenue  13,046 13,059
Included within revenue of the Equities Division is an amount of £37,000 (2009: £157,000) relating to the fair value 
adjustment of derivatives held within trading investments that are fair valued through profit or loss.
The Directors are of the opinion that there are only two operating segments and while segment revenues are reviewed 
internally business resources are not allocated to segments for the purposes of deriving either profit or assets. In 2010 two 
of the Group’s customers each contributed more than 10% of the Group’s revenue. The amounts were £2,395,000 and 
£1,400,000 and are reflected in the above segment revenues. In 2009 one of the Group’s customers contributed more than 
10% of the Group’s revenue. The amount was £1,445,000 and is reflected in the above segment revenues.
3) (Loss)/profit from operations 
  2010 2009
  £’000 £’000
This is arrived at after charging/(crediting):   
Depreciation of property, plant and equipment  236 256
Operating lease costs  273 255
Aborted bid costs  33 –
Auditor’s remuneration:   
Audit services:   
Company  59 67
Subsidiaries  1 1
Tax services  20 27
Pension services  11 7
Corporate finance services:   
Included within aborted bid costs  23 –
Foreign currency (gains)/losses  1 (25)
Share-based payments   1,079 702
Impairment of available for sale investments  – 20
Reorganisation costs  693 –
4) Dividends
No dividends were recognised in the year (2009: £Nil).
 
Notes to the Consolidated Financial Statements continued Arden Partners plc Annual Report 2010
28
5) Employees
Staff costs (including Directors) of the Company and Group consist of:
  2010 2009
  £’000  £’000 
Wages and salaries  5,669 4,100
Incentive payments  365 944
Share-based payments (see note 18 for further details)  1,079 702
Social security costs  571 582
Other pension costs  474 419
  8,158 6,747
Staff costs include an amount of £693,000 (2009: £Nil) in respect of reorganisation payments. The average number of 
employees (including Directors) of the Group and Company during the year was 58 (2009: 55) of which 43 (2009: 41) are 
front-office and the remainder are administration.
6) Directors’ remuneration
  2010 2009
  £’000  £’000 
Directors’ emoluments  567 568
Company contributions to money purchase pension schemes  39 31
  606 599
There were three Directors in defined contribution pension schemes during the year (2009: two). The total amount payable 
to the highest paid Director in respect of emoluments was £209,000 (2009: £318,000). Company pension contributions 
of £22,000 (2009: £19,000) were provided towards a money purchase scheme on his behalf.
Further details of Directors’ remuneration are set out in the Report on Directors’ Remuneration on pages 9 to 11.
7) Finance income
  2010 2009
  £’000  £’000 
Bank and other interest receivable   73 86
8) Finance costs
  2010 2009
  £’000  £’000 
Bank loans and overdrafts  9 1
Notes to the Consolidated Financial Statements continued Arden Partners plc Annual Report 2010
29
9) Income tax expense
  2010 2009
  £’000  £’000
UK Corporation tax   
Current tax on (loss)/profit of the year  223 720
Adjustment in respect of previous periods  53 (32)
Total current tax  276 688
Deferred tax   
Origination and reversal of timing differences  221 (412)
Deferred tax on financial assets  10 44
Change in tax rate   12 –
Adjustment in respect of previous periods  – (44)
Total deferred tax  243 (412)
Total income tax expense   519 276
The tax assessed for the year is higher (2009: lower) than the standard rate of corporation tax in the UK. The differences 
are explained below:
  2010 2009
  £’000  £’000 
(Loss)/profit before tax  (512) 1,522
(Loss)/profit on ordinary activities at the standard rate of
corporation tax in the UK of 28% (2009: 28%)  (143) 426
Effect of:   
Expenses not deductible for tax purposes   361  256
Prior year current tax under/(over) provision   53  (32)
Prior year deferred tax under/ (over) provision  –  (44)
Change in tax rate   12  –
Marginal relief   (12)  –
Deferred tax on share options   238  (374)
Deferred tax on financial assets  10 44
Total taxation expense  519 276
Notes to the Consolidated Financial Statements continued
As a result of a change in legislation the Directors anticipate that profits for the year ending 31 October 2011 will be taxed 
at a rate of 27%. Arden Partners plc Annual Report 2010
30
10) Earnings per share
In addition to the basic earnings per share, underlying earnings per share has been shown because the Directors consider 
that this gives a more meaningful indication of the underlying performance of the Group. Where applicable, all adjustments 
are stated after taking into consideration the appropriate tax treatment.
 Year ended Year ended
 31 October 2010 31 October 2009
  Pence per  Numerator Pence per Numerator
  share £’000 share £’000
Basic (loss)/earnings per share  (4.2)  (1,031)  5.1  1,246
Add: IFRS 2 share-based payments  4.4  1,079  2.9  702
Add: Reorganisation payments and aborted bid costs  2.2  532  – –
Underlying Basic Earnings  2.4  580  8.0  1,948
    
Diluted (loss)/earnings per share*  (4.2)  (1,031)  4.8  1,246
Add: IFRS 2 share-based payments  3.9  1,079  2.7  702
Add: Reorganisation payments and aborted bid costs  1.9  532  – –
Underlying Diluted Earnings  1.6  580  7.5  1,948
 
  Year ended   Year ended
  31 October   31 October
  2010  2009
  Number  Number
Denominator
Weighted average number of shares in issue 
for Basic Earnings calculation  24,540,847   24,209,343 
Weighted average dilution for outstanding share options  3,092,296   1,828,105 
Weighted average number for Diluted Earnings calculation  27,633,143   26,037,448 
Note*: As the Group made a loss for the year ended 31 October 2010, in accordance with IAS 33 no adjustment is made 
to the basic loss per share in deriving the diluted loss/earnings per share.
The weighted average dilution for outstanding share options was 3,092,296 (2009: 1,828,105). The 774,994 (2009: 
573,243) shares held by the Arden Partners Employee Benefit Trust have been treated as cancelled and excluded from the 
denominator.
11) Property, plant and equipment
Company and Group as at 31 October 2010
  Fixtures,
 Improvements fittings and 
 to leasehold computer
 buildings equipment  Total
 £’000 £’000 £’000
Cost    
At 1 November 2009 338  1,105  1,443
Additions   156 223 379
At 31 October 2010   494 1,328 1,822
Depreciation   
At 1 November 2009 238 947 1,185
Provided for the year   72 164 236
At 31 October 2010   310 1,111 1,421
Net book value   
At 31 October 2010   184 217 401
At 31 October 2009   100 158 258
Notes to the Consolidated Financial Statements continued Arden Partners plc Annual Report 2010
31
11) Property, plant and equipment (continued)
Company and Group as at 31 October 2009
  Fixtures,
 Improvements fittings and 
 to leasehold computer
 buildings equipment  Total
 £’000 £’000 £’000
Cost    
At 1 November 2008 238 1,014 1,252
Additions   100 91 191
At 31 October 2009   338 1,105 1,443
Depreciation   
At 1 November 2008 175 754 929
Provided for the year   63 193 256
At 31 October 2009   238 947 1,185
   
Net book value   
At 31 October 2009   100 158 258
At 31 October 2008   63 260 323
At 31 October 2010, the Group and Company had capital commitments of £Nil (2009: £355,000).
12) Investments
Company
   Group 
   undertakings
   £
Cost  
At 1 November 2009   3
Additions     40
At 31 October 2010     43
The Company owns the whole of the issued share capital of Arden Partners Nominees Limited, a company registered in 
England. This company’s sole activity is the holding of investments for clients of Arden Partners plc. The company has not 
traded.
The Company also owns the whole of the issued share capital of Arden Partners EBT Limited, a company registered 
in England. The company’s sole activity is to act as payment agent for the Arden Partners Employee Benefit Trust. At 
31 October 2010, the Arden Partners Employee Benefit Trust held 774,994 ordinary shares in Arden Partners plc (2009: 
774,994 ordinary shares).
The Company also owns the whole of the issued share capital of Arden Partners Asset Management Limited, a company 
registered in England which was formed as a name protection company. The company has not traded.
During the year the Company established Arden Partners (Singapore) Private Limited as a name protection company and 
as an agent for an employee based in Singapore. The company has not traded.
Notes to the Consolidated Financial Statements continued Arden Partners plc Annual Report 2010
32
13) Deferred tax
Group and Company — 2010
  Accelerated 
  capital 
  allowances   Total
 and temporary  Share deferred Financial
  differences option tax asset assets
  £’000 £’000 £’000 £’000
At 1 November 2009 — asset/(liability)  125  493  618  (44)
(Charged)/credited to statement of comprehensive income  17  (238)  (221)  (10)
Change in tax rate – (charged)/credited to statement of
comprehensive income  (4)  (10)  (14)  1
Transferred to equity  – (95)  (95)  –
Change in tax rate - equity   –  (8)  (8)  –
At 31 October 2010  138  142  280  (53)
Deferred taxation comprises:
  2010 2009
  £’000 £’000
Accelerated capital allowances  60 50
Other timing differences  78 75
Share options    142 493
Total deferred tax asset    280 618
Deferred tax liability on financial assets    (53) (44)
  
Group and Company — 2009
  Accelerated 
  capital 
  allowances   Total
 and temporary  Share deferred Financial
  differences option tax asset assets
  £’000 £’000 £’000 £’000
At 1 November 2008 — asset/(liability)  43  45  88  –
Credited/(charged) to statement of comprehensive income  38  374  412  (44)
Adjustments in respect of prior years credited to statement of
comprehensive income  44  –  44  –
Transferred to equity  – 74 74 –
At 31 October 2009  125  493  618  (44)
14) Trading investments
Group and Company
  2010 2009
  £’000 £’000
Long market making positions  2,999 2,489
Other investments:  
Options and warrants    208 171
    3,207 2,660
At 31 October 2010 the historical cost of long market making positions was £2,963,000 (2009: £2,510,000). There are no 
long market making positions denominated in foreign currency (2009: £Nil).
At 31 October 2010 the historical cost of other investments was £77,000 (2009: £77,000). There are no other investments 
denominated in foreign currency (2009: £Nil).
Notes to the Consolidated Financial Statements continued Arden Partners plc Annual Report 2010
33
15) Trade and other receivables
Group
  2010 2009
  £’000 £’000
Market receivables  4,011 13,703
Trade receivables  624 1,012
Other receivables  1,037 340
Prepayments and accrued income    538 605
    6,210 15,660
Company
  2010 2009
  £’000 £’000
Market receivables  4,011 13,703
Trade receivables  624 1,012
Other receivables  1,225 528
Prepayments and accrued income    538 605
    6,398 15,848
There are no amounts denominated in foreign currency included within trade receivables of the Group and the Company at 
31 October 2010 (2009: £1,000 which is denominated in US$).
The fair value of market, trade and other receivables approximates to amortised cost.
An analysis of overdue trade receivables is shown in note 23. No other receivables are overdue.
16) Cash and cash equivalents
Group
  2010 2009
  £’000 £’000
Cash and bank balances  6,228 6,846
Call deposits    2,786 3,677
    9,014 10,523
Company
  2010 2009
  £’000 £’000
Cash and bank balances  6,224 6,842
Call deposits    2,786 3,677
    9,010 10,519
Included within cash and bank balances of the Group and the Company at 31 October 2010 is an amount of £75,000 
(2009: £77,000) which is denominated in US$.
Notes to the Consolidated Financial Statements continued Arden Partners plc Annual Report 2010
34
17) Trade and other payables 
Group
  2010 2009
  £’000 £’000
Held for trading liabilities   56  65
Market payables   4,050  13,958
Trade payables   634  689
Other taxation and social security   218  152
Other payables   1,093  300
Accruals and deferred income    844 2,018
    6,895 17,182
There are no differences between the fair values and the amortised cost of any of the trade and other payables. Included 
in the above are financial liabilities amounting to £5,496,000 (2009: £16,595,000).
Company
  2010 2009
  £’000 £’000
Held for trading liabilities   56  65
Market payables   4,050  13,958
Trade payables   634  689
Other taxation and social security   218  152
Other payables   1,277  484
Accruals and deferred income    844 2,018
    7,079 17,366
There are no differences between the fair values and the amortised cost of any of the trade and other payables. Included 
in the above are financial liabilities amounting to £5,680,000 (2009: £16,595,000).
18) Share capital
  Allotted, 
  called up
 Authorised and fully paid
  2010 2009 2010 2009
  £’000 £’000 £’000 £’000
Equity share capital
40,000,000 Ordinary shares of 10p each  4,000 4,000 – –
25,444,243 (2009: 24,939,976) Ordinary shares of 10p each  – – 2,544 2,494
During the year the Company issued in aggregate 504,267 (2009: 238,104) ordinary shares of 10p each to satisfy the 
exercise of share options. Gross proceeds were £240,000 (2009: £114,000) of which £50,000 (2009: £24,000) has been 
credited to share capital and £190,000 (2009: £90,000) to the Share Premium account.
Notes to the Consolidated Financial Statements continued Arden Partners plc Annual Report 2010
35
18) Share capital (continued)
 
Options over the Company’s shares outstanding
The movement and weighted average exercise prices of share options are as follows:
   Weighted  Weighted
   average  average
  Number of exercise Number of exercise
  options price (p) options price (p)
  2010 2010 2009 2009
At 1 November 2009   4,173,153  23.7  3,638,305  32.8
Exercised during the year   (504,267)  (47.8)  (238,104)  (47.8)
Granted during the year   300,000  10.0  1,216,561  10.0
Lapsed during the year  (9,561)  (10.0)  (443,609) (47.8)
At 31 October 2010  3,959,325  19.7  4,173,153  23.7
The weighted average market price of the Company’s shares at the date of exercise of options during the year was 103p 
(2009: 93p).
The share options outstanding at the year end have a weighted average exercise price and expected remaining life as 
follows:
 31 October 2010                                                31 October 2009
   Weighted   Weighted
   average   average
   expected   expected
 Number Exercise remaining Number Exercise remaining
 of share options price (p)  life (months) of share options price (p) life (months)
Arden Partners
Old Scheme 1,012,325  47.8 –  1,516,592  47.8  –
Arden Partners
Share Plan 2007 2,947,000  10.0  12.3  2,656,561  10.0 19.0
 3,959,325    4,173,153
Notes to the Consolidated Financial Statements continued Arden Partners plc Annual Report 2010
36
18) Share capital (continued)
The number of options outstanding by issue date and exercise price, together with the vesting periods, fair values, and the 
assumptions used to calculate the fair value, and the actual remaining contractual life as at 31 October 2010 are as follows:
 Arden Partners Arden Partners
 Share Plan 2007 Old Scheme
Grant dates  21/9/2007 to 4/11/2009  21/4/2006
Weighted average fair value at grant date
1
  92p to 148p  3.5p
Average exercise price  10.0p  47.8p
Weighted average share price at date of grant
2
  125.0p  30.0p
Expected volatility
3
  30%  30%
Risk free interest rate  4% to 5.75%  5%
Dividend yield  3%  3.5%
Option life (months)  12-36  36
Weighted average option life (months)  30.1  36.0
Weighted average life remaining (months) 12.3  –
Number of options outstanding  2,947,000  1,012,325
Percentage of options expected to vest  97%  100%
Number of options vested but unexercised  997,000  1,012,325
 
Share-based payments
The share options granted during the year under the Arden Partners Share Plan 2007 are equity settled options. The vesting 
condition for all options requires the option holders to still be in the employment of the Company at the exercise date; 
for certain options, performance conditions must also be satisfied. These include both market and non-market conditions.
The fair value of services received in return for share options granted are measured by reference to the fair value of share 
options granted. During the year the weighted average fair value of options granted was 97p (2009: 96p).
The total expense recognised for the year arising from share based payments is as follows:
  2010 2009
  £’000 £’000
Expensed during the year (equity-settled)
(included within employee costs as set out in note 5)  1,079 702
19) Pensions
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those 
of the Company in an independently administered fund. Where members of staff do not join the Company scheme, 
contributions are made to their own nominated schemes all of which are defined contribution. The pension charge for the 
year amounted to £474,000 (2009: £419,000). Contributions amounting to £216,000 (2009: £167,000) were payable to 
schemes and are included in payables.
Notes to the Consolidated Financial Statements continued
Notes:
1   The estimate of the fair value of the services received is measured based on the Black-Scholes model. The contractual life is the life of the option in question 
and growth in dividend yield is based on the best current estimate of future yields over the contractual period.
2 The Arden Partners Old Scheme was established in April 2006 with the stock price having been agreed with the Inland Revenue Share Valuation Office.
3 Expected volatility is based on historic information adjusted to take effect of future trends in economic conditions, behavioural considerations and exercise 
restrictions. Arden Partners plc Annual Report 2010
37
21) Related party disclosures
The key management are considered to be the Board of Directors of Arden Partners plc, whose remuneration can be seen 
in the Directors’ Remuneration Report on pages 9 to 11. The compensation in total for each category required by IAS 24 
is as follows:
  Year ended Year ended
  31 October 31 October
  2010 2009
  £’000 £’000
Salaries and short-term employee benefits  606 599
Share-based payments    211 214
    817 813
22) Post-balance sheet events
During the period between 5 November and 9 November 2010 the Company purchased 1,933,521 ordinary shares of 10 
pence at a price of 49 pence per share. All of these shares will be held in Treasury.
23) Financial Instruments and risk profile
The Group and Company’s financial instruments comprise cash and cash equivalents, trading positions, available for sale 
investments, trade receivables and trade payables arising from operations. The Group and Company have recognised the 
following risks arising from these financial instruments:
●   Equity price risk ●   Liquidity risk 
●   Credit risk ●   Operational risk
23.1 Equity price risk
The Group and Company face risk arising from holding trading investments in markets that fluctuate. The Group 
and Company manage equity price risk by establishing individual stock limits and overall investment criteria, and 
management reports are prepared daily in support of a review regime. The Board reviews trading investments on a 
monthly basis.
23.2 Liquidity risk
Liquidity risk is the risk that the Group and Company are unable to raise sufficient funding to enable them to meet 
their obligations and is managed as follows:
● maintaining a strong capital base
● forecasting future cash-flow requirements
● monitoring of cash positions on a daily basis
● monitoring of market making positions on a daily basis
● control over timely settlement of trade receivables
● control over timely settlement of market receivables and payables
Notes to the Consolidated Financial Statements continued
20) Commitments under operating leases
The Group and the Company were committed to making the following payments under non-cancellable operating leases 
as set out below:
 Land and buildings
  2010 2009
  £’000 £’000
Within one year   140  113
Between one and two years   272  105
Between two and five years   668  727
After five years    – 213
    1,080 1,158 Arden Partners plc Annual Report 2010
38
23.3 Credit risk
Credit risk represents the possibility that the Group or Company will suffer a loss from a counterparty failing to meet 
its obligations. Credit risk is managed as follows:
● robust client account opening and vetting procedures
● general policy to deal only with FSA registered counterparties
● general policy on limiting exposure to concentration risk
● control over timely settlement of market receivables
● review of daily settlement reports by the Risk Committee
Exposure to credit risk
The carrying value of financial assets represents the maximum credit exposure. The maximum exposure to credit risk 
at the reporting date was:
  Group  Company
  2010 2009 2010 2009
  £’000 £’000 £’000 £’000
Market receivables   4,011  13,703  4,011  13,703
Trade receivables   624  1,012  624  1,012
Other receivables   1,037  340  1,225  528
Cash and cash equivalents  9,014  10,523  9,010  10,519
Total loans and receivables  14,686  25,578  14,870  25,762
  
The ageing of trade receivables at the reporting date was:
  31 October 31 October
  2010 2009
  £’000 £’000
Not past due   572  855
Past due 31-60 days   38  78
Past due 61-90 days   7  20
Past due 91-120 days   –  23
Past due 121+ days   50  89
Provisions    (43)  (53)
Total    624 1,012
Notes to the Consolidated Financial Statements continued
23) Financial Instruments and risk profile (continued) 
Capital management
The Group and Company’s policy in respect of capital adequacy is to maintain a strong capital base so as to retain 
investor, creditor and market confidence. During the years ended 31 October 2009 and 2010 capital has been 
maintained at a level above minimum FSA requirements. Such levels have been established by reference to an internal 
ICAAP assessment. The Group and Company’s capital resources consist of Tier 1 equity capital and Tier 3 retained 
earnings.
The Group and Company hold their cash with a number of reputable financial institutions. All cash and cash equivalents 
are short-term, highly liquid investments that are readily convertible into known amounts of cash. Arden Partners plc Annual Report 2010
39
23) Financial Instruments and risk profile (continued)
Movement in provision 
  31 October 31 October
  2010 2009
  £’000 £’000
Opening balance at 1 November 2009  53  191
Amounts released   (35)  (53)
Amounts written off   (18)  (144)
Increase in provision    43  59
Closing balance at 31 October 2010    43 53
23.4 Operational risk
Operational risk is the risk of loss resulting from inadequate or failed internal processes, staff or systems, or from 
external causes whether deliberate, accidental or natural. This would also include risk from changes in legislation, 
regulation, currency or interest rate risk.
Operational risk is managed by the Operations Committee with day-to-day control exercised by the Chief Operating 
Officer. The Group and Company also has contingency plans in place to cover loss of systems, property and other 
eventualities.
The Group and Company had an aggregate currency exposure at 31 October 2010 in respect of US$119,000 
(£75,000). There was a currency exposure for the Group and the Company at 31 October 2009 of US$127,000 
(£77,000). The effect of a 10% movement in the US$/£ exchange rate from the rate ruling at the balance sheet date 
would be to impact (loss)/profit and net assets by approximately £7,000 (2009: £8,000).
Fixed rate cash financial assets of £2,786,000 (2009: £3,677,000) comprise sterling cash deposits on money markets 
at an average rate of 0.60% (2009: 0.25%). Remaining cash was held on current accounts attracting interest based 
on LIBID. Other financial assets do not have maturity dates and do not currently attract interest.
If the average level of interest received on cash deposits had been 0.5% higher or lower than the level actually 
received in the year ended 31 October 2010, the loss before taxation would have been decreased or increased 
by approximately £21,000. In the year ended 31 October 2009 a 1% movement in rates would have increased or 
decreased profit before taxation by approximately £50,000.
Notes to the Consolidated Financial Statements continued Arden Partners plc Annual Report 2010
40
Notes to the Consolidated Financial Statements continued
23) Financial Instruments and risk profile (continued) 
23.5 Fair value estimation
The Company has adopted the amendment to IFRS 7 for financial instruments which are measured at fair value 
at the balance sheet date. This requires disclosure of fair value measurements by level of the following fair value 
measurement hierarchy:
● Level 1: Quoted prices unadjusted in active markets for identical assets or liabilities;
● Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,  
 observed either directly as prices or indirectly from prices; and
● Level 3: Inputs for the asset or liability that are not based on observable market data.
The following table presents the Group’s and Company’s assets and liabilities that are measured at fair value at 
31 October 2010:
 Level 1 Level 2 Level 3 Total 
 £’000 £’000 £’000 £’000
Assets
Trading investments:
        Long market making positions  2,999  –   –  2,999
        Options and warrants   –  208   –  208
 2,999  208  –  3,207
Liabilities
        Held for trading liabilities 56 – – 56  Arden Partners plc Annual Report 2010
41
Corporate Information
Company Secretary Trevor Norris
 125 Old Broad Street
 London EC2N 1AR
 Tel : 020 7614 5900
Company Number 4427253
Corporate Brokers Altium Capital Limited
 30 St James’s Square
 London
 SW1Y 4AL
Financial PR Adviser Buchanan Communications
 45 Moorfields
 London
 EC2Y 9AE
Registrar Capita IRG Plc
 The Registry
 34 Beckenham Road
 Beckenham
 Kent
 BR3 4TU
Lawyers Eversheds LLP
 115 Colmore Row
 Birmingham
 B3 3AL
Auditors BDO LLP
 55 Baker Street
 London
 W1U 7EU
Bankers HSBC Bank plc
 130 New Street
 Birmingham
 B2 4JU
Registered Office Arden House
 Highfield Road
 Edgbaston
 Birmingham
  B15 3DU Arden Partners plc Annual Report 2010
42
Notice is hereby given that the Annual General Meeting of Arden Partners plc (the “Company”) will be held at 125 Old Broad 
Street, London, EC2N 1AR on April 6th, 2011 at 11.00 a.m. for the following purposes:
 
Ordinary Business
1. To receive and adopt the Company’s Financial Statements for the year ended 31 October 2010, together with the Directors’  
 Report, Directors’ Remuneration Report and Report of the Independent Auditor on those Financial Statements.
2. To re-elect Lord Flight as a Director, who is retiring in accordance with the Company’s Articles of Association.
3. To re-elect Mark Ansell as a Director, who is retiring in accordance with the Company’s Articles of Association.
4. To re-elect Peter Moon as a Director, who is retiring in accordance with the Company’s Articles of Association.
5. To re-elect Steve Wassell as a Director, who is retiring in accordance with the Company’s Articles of Association.
6. To re-elect Grahame Whateley as a Director, who is retiring by rotation in accordance with the Company’s Articles of  
 Association.
7. To reappoint BDO LLP as auditors to the Company, to hold office from the conclusion of this meeting until  
 the conclusion of the next Annual General Meeting at which the Financial Statements are laid and to authorise the  
 Directors to fix their remuneration.
To transact any other ordinary business of the Company.
 
Special Business
As special business, to consider and, if thought fit, pass the following resolutions which will be proposed as to resolution 
number 8 as an ordinary resolution and as to resolutions numbered 9, 10 and 11 as special resolutions:
 
8. That, subject to and in accordance with Article 12 of the Articles of Association of the Company, the Directors of the 
Company be generally and unconditionally authorised in accordance with section 551 of the Companies Act 2006 (in 
substitution for any existing authority to allot relevant securities) to exercise all the powers of the Company to allot 
relevant securities (within the meaning of such section) up to a maximum aggregate nominal value of £798,277.16, 
being approximately one third of the current issued share capital (excluding treasury shares), such authority to on the 
conclusion of the next Annual General Meeting of the Company but so that the Company may before such expiry make 
offers or agreements which would or might require relevant securities of the Company to be allotted after such expiry, and 
the Directors may allot relevant securities in pursuance of such offers or agreements as if the authority conferred by this 
resolution had not expired. 
 
9. That, subject to the passing of resolution 8 as set out in the notice of this meeting, and in accordance with Article 13 of the 
Articles of Association of the Company, the Directors be empowered pursuant to section 570 of the Companies Act 2006 
to allot equity securities (as defined in section 560 of the Companies Act 2006) for cash pursuant to the general authority 
and be empowered pursuant to section 573 of the said Act to sell ordinary shares (as defined in section 560 of the said 
Act) held by the Company as treasury shares (as defined in section 724 of the said Act, for cash) as if section 561(1) of the 
Companies Act 2006 did not apply to such allotment or sale, provided that this power shall be limited to allotments of 
equity securities and the sale of treasury shares:
 
9.1  in connection with or pursuant to an offer of such securities by way of rights, open offer or other pre-emptive offer  
 to the holders of ordinary shares in the Company and other persons entitled to participate therein in proportion (as  
 nearly as practicable) to their respective holdings, subject to such exclusions or other arrangements as the Directors  
 may consider necessary or expedient to deal with fractional entitlements or any legal or practical problems under  
 the laws of any territory or the regulations or requirements of any regulatory authority or any stock exchange in any 
 territory; and
 
9.2  otherwise than pursuant to sub-paragraph (a) above, up to an aggregate nominal amount of £129,367.67, and 
 such power shall expire on the conclusion of the next Annual General Meeting of the Company provided that the 
 Company may before such expiry make an offer or agreement which would or might require equity securities to be 
 allotted after such expiry, and the Directors of the Company may allot equity securities in pursuance of such offer or  
 agreement as if the power conferred by this resolution had not expired.
Notice of Meeting Arden Partners plc Annual Report 2010
43
Notice of Meeting continued
 10. That the Articles of Association of the Company be amended as follows:
10.1 by the insertion of a new Article 106.1.1.1 as follows: “any Directors who have been appointed by the Directors  
 since the last annual general meeting; and”; and
10.2 the current Article 106.1.1 be renumbered to 106.1.1.2.
11. That, the Company be generally and unconditionally authorised, pursuant to section 701 of the Companies Act 2006, to 
make market purchases (as defined in section 693(4) of the Companies Act 2006) of up to 2,394,831 ordinary shares of 
10p each in the capital of the Company (being approximately 10 per cent of the current issued ordinary share capital of 
the Company (excluding treasury shares)) on such terms and in such manner as the Directors of the Company may from 
time to time determine, provided that:
11.1 the amount paid for each share (exclusive of expenses) shall not be more than the higher of (1) five per cent above  
 the average of the middle market quotation for ordinary shares as derived from the AIM Appendix to the Daily  
 Official List of the London Stock Exchange plc for the five business days before the date on which the contract for  
 the purchase is made, and (2) an amount equal to the higher of the price of the last independent trade and current  
 independent bid as derived from the trading venue where the purchase was carried out or less than 10p per share;  
 and
11.2 the authority herein contained shall expire on the conclusion of the Annual General Meeting of the Company to be  
 held in 2012 provided that the Company may, before such expiry, make a contract to purchase its own shares which  
 would or might be executed wholly or partly after such expiry, and the Company may make a purchase of its own 
 shares in pursuance of such contract as if the authority hereby conferred hereby had not expired.
By order of the Board Registered office:
Trevor Norris Arden House 
Company Secretary Highfield Road
7 March 2011 Edgbaston
Birmingham
B15 3DU Arden Partners plc Annual Report 2010
44  London
125 Old Broad Street
London
EC2N 1AR
Tel 020 7614 5900
Fax 020 7614 5901
Birmingham
Arden House
17 Highfield Road
Edgbaston
Birmingham
B15 3DU
Tel 0121 423 8900
Fax 0121 423 8901
Bristol
Broad Quay House
Prince Street
Bristol
BS1 4DJ
Tel 0117 905 8762
Fax 0117 905 8816
www.arden-partners.co.uk