Report and Accounts 2007 Contents
1 Highlights
2 Chairman’s Statement 
3 Chief Executive’s Report 
11 Finance Director’s Report 
15 Property Advisor’s Report to Raven Russia Limited
18 Board of Directors 
19 Advisers
20 Directors’ Report 
23 Corporate Governance 
24 The Directors’ Remuneration Report 
26 Independent Auditors’ Report
28 Consolidated Income Statement 
28 Consolidated Statement of Recognised Income and Expenses 
29 Consolidated Balance Sheet
30 Consolidated Cash Flow Statement 
31 Notes to the Financial Statements 
56 Company Balance Sheet 
57 Notes to the Company Financial Statements  Highlights
Raven Mount plc   Report and Accounts 2007
1
•
Group loss before tax was £4.8 million (2006: proﬁt £0.2 million) on turnover 
of £68.6 million (2006: £71.8 million).
•
Property Fund Management business earns fees as at 31 December 2007 on
US$1,342 million (30 June 2007: US$969 million) committed funds by Raven
Russia Limited and generated a management fee during the year of £8.3 million
(2006: £2.9 million excludes £2.0 million performance fee).
•
Audley, our Independent Living business commenced development on four sites
comprising 408 units, ﬁrst completion due in 2008.
•
£31.9 million net debt as at 31 December 2007 and unutilised facilities of
approximately £21.7 million.
•
Final dividend of 1.4p per Ordinary share, an increase of 40% (2006: 1.0p).
•
Pension Scheme after tax surplus of £3.6 million (2006: deﬁcit £0.8 million).
•
Adjusted shareholders' funds per share of 74.3p (2006: 75.0p).
•
All remaining Swan Hill units sold.
Commenting on the results, Anton Bilton, Executive Chairman, said:
“As we expected, the economic world started to change during
2007 and I am very pleased in the strategic decisions we made
three years ago which have us strongly positioned in new, exciting,
growing markets and exiting the troubled mainstream UK
residential and commercial property scene.”
Bim Sandhu, Chief Executive, said:
“We continue to devote signiﬁcant resources to our Property Fund
Management business and now employ over 60 people (excluding
Raven Mount directors) directly in helping Raven Russia achieve
its signiﬁcant aims. From a pure property perspective we are
delighted by the enormous strides that we are making in helping 
to create a world class new-build logistics portfolio from scratch 
in such a short space of time.” Raven Mount plc   Report and Accounts 2007
2
2007 was our ﬁnal year of ‘cleaning out’. 
The remnants of the Swan Hill business 
have gone and we can now turn the corner
focusing on the new growing businesses 
that we have created.
As we expected, the economic world started 
to change during 2007 and I am very pleased 
with the strategic decisions we made three years 
ago which have us strongly positioned in new,
exciting, growing markets and exiting the 
troubled mainstream UK residential and
commercial property scene.
In addition, we have a strong balance sheet for
these new businesses to utilise.
Our Independent Living business, Audley Court,
now has 408 units under construction and 260 
in planning. Initial interest in these schemes has 
been encouraging as the UK remains very under
served for the high quality product that we are
creating. At the same time our market is growing 
strongly as the demographic improves with
increasing longevity.
Our fund management business goes from
strength to strength and we have built an excellent
team in Russia which now comprises over 60
professionals. I would go as far as to say that 
I believe we have the best internationally skilled
and multi-disciplined property team available in the
country. The substantial investment we have made
in assembling this team has ensured the success 
of Raven Russia (US$118 million pre-tax proﬁt for 
the year to 31 December 2007) and gives us an
extraordinarily well placed platform for further
expansion in Russia.
Raven Russia has grown its development portfolio
substantially to over 20 million square feet of
warehouses with an end value well in excess 
of US$2 billion and the logistics market in which 
it operates is demonstrating strong rental growth
and yield compression.
Chairman’s Statement 
Our management fee income is currently running
at an annualised rate of £13.5 million which is
starting to repay our efforts and investment of 
the last 4 years.
Our second-home joint venture, The Lakes, in 
the Cotswolds has been very well received and we
have secured 30 reservations from our soft launch.
We expect further exciting news once the formal
advertising campaign begins after Easter.
Generally, I am delighted that we had the foresight
to see the ﬁzziness of the UK market three years 
ago and the strength of conviction to turn away
from our traditional businesses and to adapt to 
the necessary changes to implement a new strategy
with new businesses in exciting areas with real
prospects for continued growth. This has been
hard work and I’d like to thank everyone in the
Group for their efforts in embracing these
challenges and making them happen.
We are now very well positioned for the future
with established businesses in exciting growth
areas and a strong balance sheet.
The job in hand is to grow these saplings into
strong, valuable and sturdy trees.
Anton Bilton
Executive Chairman
18 March 2008
“We are now very well positioned for the future
with established businesses in exciting growth
areas and a strong balance sheet.” Raven Mount plc   Report and Accounts 2007
3
Results for the Year ended 
31 December 2007
We generated a loss before tax of £4.8 million 
for the year ended 31 December 2007 (2006: 
£0.2 million proﬁt). Turnover for the year
decreased slightly from £71.8 million to £68.6
million, although, as in prior periods, comparisons
of turnover and relationship to proﬁt are not
directly relevant as the Company continues 
to evolve new business areas whilst there is a
decline in the traditional house building business.
The relative movement in proﬁtability is largely
accounted for by the fall in our gross operating
margin on the sale of our mainstream residential
property, increased overheads and holding costs 
in our Independent Living business (offset by proﬁts
in the Property Fund Management business) and
the fact that last years results were ﬂattered by 
the sale of strategic land which yielded a proﬁt 
of £3.4 million.
Despite the after tax loss for the year of 
£2.2 million, Net Assets increased by £1.7 million
from £80.3 million at the year end to £82.0 million
largely as a result of the net actuarial post tax gain
of £3.2 million in relation to the IAS 19 pension
fund surplus. It is important for shareholders to
recognise that Net Assets do not incorporate the
majority of the uplift in value of the four Audley
sites we have acquired (as inventories are stated 
at cost), the majority of the uplift on The Lakes
Chief Executive’s Report
second homes development and most importantly
the value of our Property Fund Management
division.
We moved from net cash of £8.8 million to net
debt of £31.9 million as we continued to invest
heavily in the Independent Living business and 
in completing a number of residential sites. 
Our current gearing level remains at a relatively
conservative 39%.
Operating Review
Our Company’s three principal areas of focus
continue to be Property Fund Management, 
the Development and Operation of Independent
Living facilities and Residential Development.
Property Fund Management
Our Company generated total fees of £8.3 million
(2006: £2.9 million excluding the £2.0 million
performance fee) producing an operating proﬁt of
£2.9 million (2006: a loss of £1.8 million excluding
the performance fee). As at the year end Raven
Mount was earning its core property advisory fee
of 2% on US$1,342 million (2006: US$465 million)
of gross assets purchased or committed to be
purchased by Raven Russia. We expect this ﬁgure
to increase signiﬁcantly over the next two years as
Raven Russia builds out its development portfolio
and completed investment property is revalued to
reﬂect market levels.
Inglewood, Kintbury (Audley). Raven Mount plc   Report and Accounts 2007
4
We continue to devote signiﬁcant resources to this
and now employ over 60 people (excluding Raven
Mount directors) directly in helping Raven Russia
achieve its signiﬁcant aims. From a pure property
perspective we are delighted by the enormous
strides that we are making in helping to create 
a world class new-build logistics portfolio from
scratch in such a short space of time. It is therefore
particularly disappointing that the Raven Russia
share price has been unfairly tarnished by,
amongst other things, general sentiment against
property stocks and by investor perception of
political risk caused by the intermittent war of
words between the West and Russia. This not only
impacts the value of our shareholding in Raven
Russia but also means that we have not received 
a performance fee (since this is based on total
shareholder return i.e. share price movement and
dividends paid) for the year ended 31 December
2007 which our property efforts have merited.
These efforts are however reﬂected to some extent
in Raven Russia’s results for the corresponding year
end to ours. The reason why I say ‘to some extent’
is that neither the Raven Russia balance sheet nor
the income statement reﬂect the uplifts in value of
the substantial development sites we have helped
Raven Russia acquire as these are valued at cost
until they are complete and ready for occupation.
Nor indeed do the accounts reﬂect the value of 
the pipeline of deals.
Mark Kirkland has included some key ﬁnancial
information on Raven Russia in his Finance
Director’s report and we have also included, as 
a separate extract, our Property Adviser’s Report 
to the shareholders of Raven Russia. Nevertheless, 
I would strongly encourage shareholders to view
the full ﬁnancial statements for more details 
on the progress that we and Raven Russia are 
making (www.ravenrussia.co.uk).
Whilst a signiﬁcant number of people still continue
to be suspicious of undertaking business in Russia,
we believe that the business environment is not 
Chief Executive’s Report continued
as frightening as those who are unfamiliar with it
would choose to believe and is getting progressively
better. We are also lucky (although the use of 
that word does no justice to Anton and Glyn’s
considerable efforts in identifying them) with the
quality of the local joint venture partners with
whom we are working to help Raven Russia
develop its portfolio. As with all partners there 
are always issues to be resolved but as Samuel
Johnson said ‘Marriage has many pains but
celibacy has no pleasure’. We could not have
achieved what we have without them.
The political situation is stable given the recent
election of Dmitry Medvedev as President from
May. More and more international businesses are
recognising the strong macro economic factors
which are the drivers of the Russian economy 
and the need to have a presence in the market.
We have quoted a number of facts and statistics 
in past reports and I would like to add to those
courtesy of a recent article by Liam Halligan of 
The Sunday Telegraph:
• In 2007, the Russian economy grew by 8.1%
having grown an average 7% per annum 
since 1998.
• Russia’s reserves have increased from nothing 
in 1998 to US$480 billion today, the third
largest in the world.
• Russia is now almost debt free with a budget
surplus of 6% of GDP and a trade surplus
almost twice as much again.
• Three years ago Russia overtook Saudi Arabia 
to become the world’s largest oil exporter.
• Retail sales are growing at 13% per annum 
in real terms.
• Construction is growing by 16% per annum;
domestic investment by 20% per annum.
• Russia is now the 9th largest economy in 
the world and rising fast.
All these factors bode well for the logistics
business in which we are helping Raven Russia 
to invest and for our long term involvement 
in this economy.
“We are delighted by the enormous strides that
we are making in helping to create a world class
new-build logistics portfolio from scratch in
such a short space of time.” Raven Mount plc   Report and Accounts 2007
5
Independent Living – Raven Audley Court plc
(operating as Audley)
We are still at the early stages of development 
of this business and the current year has been 
a period of consolidation with the normal
‘teething’ problems of a new business rather 
than one of spectacular progress.
Work in progress increased from £12.1 million to
£38.2 million which has been funded to date by
speciﬁc external banking facilities drawn down of
£14.0 million and the balance from internal Raven
Mount Group resources. No sales were made
during the year as we had no completed properties.
During the year we purchased Willicombe Park,
Tunbridge Wells from Nick Sanderson, CEO of
Audley, and his former business partner which 
was funded by another £4.0 million of bank debt.
As at 31 December 2007 we have four owned
development sites comprising 408 units in various
stages of construction, own one mature business
comprising 67 units and are managing two sites
comprising 101 units. We have 3 sites potentially
comprising approximately 260 units which we
have under contract on a subject to planning basis.
The exchange, on a subject to planning basis, on 
a further site comprising 67 units has been delayed
by the vendor due to difﬁculties with obtaining
vacant possession. Behind this there are a number
of potential deals in the pipeline. The market 
for land purchases in the ﬁrst half of last year 
was extremely difﬁcult because of the overheated
property market, particularly in this sector. The
market slowed in the second half of the year 
as vendors’ expectations of prices were slow 
to match the deteriorating market. However, 
I believe vendors will become more realistic as 
every passing month conﬁrms that the credit issue
is not a temporary one. Counter balancing this to 
some extent is the increasing number of players 
coming into this market competing for sites.
The construction industry overheated throughout
2007 not helped by the booming prices in raw
materials and it is only now, as residential developers
are reporting a reduction in future development
activity, that we would hope prices will stabilise.
We have had to make considerable efforts in trying
to control contractors’ costs and this, combined
with the longer time taken to put in place
construction ﬁnance, has resulted in delays on the
delivery of units. We now expect the ﬁrst delivery
of units on St Elphins and Mote Park in the third
quarter of this year and Inglewood and Ilkley 
in the ﬁrst half of next year. Audley is therefore 
not likely to be operationally proﬁtable until next
year. A lot will be dependent on sales activity.
The slowdown in general housing activity, upon
which I comment below, will have an impact on
sales to the extent that some of our residents will
need to sell their properties prior to completing
The Shushari St. Petersburg development (Raven Russia Limited). Raven Mount plc   Report and Accounts 2007
6
the purchase of our units. However, we are likely
to suffer less than the normal residential vendor.
This is partly because our buyers are typically
selling family homes (rather than ﬂats) for which
there is generally an undersupply of stock and
great demand. Secondly, our potential residents
tend to have signiﬁcant equity in their houses and
are ‘downsizing’ to cheaper property. They are
themselves less sensitive to the prices achieved for
their own units and less reliant on the mortgage
market, which facilitates transactions. Thirdly, we
are, as with all developers, one end of a housing
chain. Finally, some of our purchasers are forced 
to move on a ‘needs’ basis and may, for example,
have the potential to gear up on their existing
house to release equity to purchase one of our
units. Having said that, we must remain realistic
and recognise that the speed of sales may be
affected and we will endeavour to come up with
ideas which help potential residents facilitate the
move to our units.
Nevertheless we remain conﬁdent of this sector,
the dynamics driving it and the ability to deliver
long term returns.
Residential Development
There is no doubt in my mind that we are currently
experiencing the worst conditions in the mainstream
residential property market in the UK since the
early Nineties. A signiﬁcant reason for this is the
Chief Executive’s Report continued
increasingly tighter lending practices of the UK
banking institutions towards both end purchasers
and developers. A lack of liquidity provision 
by the banks has a huge impact on the level of
transactions in the mainstream residential market
and this was best demonstrated by the latest
statistic from the Bank of England which showed
that there had been a 40% fall in the mortgages
approved for new buyers in January 2008
compared to January 2007. Tighter lending criteria
in particular have an impact on the ﬁrst time 
buyer market and the buy to let markets which 
are perhaps the key components of the housing
food chain.
Shareholders will note that we have taken a very
negative stance on the UK Housebuilding sector
over the past few years and as a result of that 
we have not purchased any new pure residential
property sites other than those acquired through the
acquisition of Raven Property Holdings (RPH) three
years ago and we continue to maintain this stance.
All housing stock from the Swan Hill subsidiary 
has been disposed during the year, including the
sale of all the units at the last remaining site in
Swindon. This was quicker than I forecast in the
last annual report and this was as a direct result 
of a large number of investor sales at discounts to
asking prices which nevertheless were within the
provisions that we had made. Shareholders will be
The Lakes joint venture with Yoo, Coln Park, Lechlade in the Cotswolds. Raven Mount plc   Report and Accounts 2007
7
aware that Swan Hill acted as a main contractor
on most of its sites, including the Swindon site,
and therefore legacy issues will remain to be dealt
with over the next few years but we believe that
we have made appropriate provisions in respect 
of likely issues.
With respect to mainstream residential sites
acquired as part of the RPH purchase we are left
with one construction completed site, three sites
which are currently under construction and one
large site where we have been reluctant to
commence construction.
During the year we completed the construction 
of our 247-unit New England Quarter, Brighton
Station development. As at the year end 27 units
remained to be sold of which 12 have been sold
since the year end, 1 exchanged, 1 reserved and
13 remaining to be sold. Under the terms of our
JV agreement with Barratt I expect the year end
stock value of £1.5 million to be converted into
cash before the year end.
Sales interest has slowed considerably on the 
three sites that are currently under construction 
as the days of selling a substantial number of
properties off plan have diminished; this tends 
to happen when prices are perceived to be falling!
We are expecting construction completion at our 
54-unit Lewes scheme (www.theprintworkslewes.co.uk)
by the half year. Of the 40 private units we are
currently exchanged on 24 units (£8.1 million 
by value) and have a further unit (£0.3 million) 
under offer. The remaining 15 units are valued at 
£4.1 million at current asking prices. We have also
exchanged on the 14 social housing units which
will release an additional £0.5 million of cash.
There is a limited supply of housing stock in the
Lewes market and this should assist sales of our
remaining units.
The 51-unit residential and 9,000 sq ft commercial
Brackley scheme (www.collegeplacebrackley.co.uk)
is expected to be construction complete within 
the next year. All the commercial space is currently
under offer and if these offers conclude this will
yield an approximate rental income of £0.1 million
and a capital value of approximately £1.5 million.
We have undertaken limited marketing of the
residential units which are valued at £10.6 million
at current asking prices but expect this to pick up
as we near completion. As noted above there is
currently a limited demand for purchasing units 
off plan and we have taken the decision to focus
the marketing budget on this site to nearer the
expected date of practical completion. This is a 
JV with the South Northamptonshire Council and
some of our risk on this site is mitigated by the
variable site price payable to the council.
We also expect the 149-unit residential, 
12,000 sq ft commercial Shefﬁeld Phase 1 scheme
(www.kelhamriverside.com) to be construction
completed within the next year. We have currently
exchanged on 50 units valued at £6.6 million, 
have 12 units valued at £1.7 million under offer
with 87 units valued at £13.8 million remaining to
be sold. Of the commercial space we have 2,300
sq ft under offer at a rent of £21,850. We remain
cautious on residential sales rates on this site 
until the site is nearer completion.
The only site on which we have not commenced
development on is the 339-unit Shefﬁeld Phase II
site on which we received vacant possession in
January 2008. We do not currently intend to start
construction on this site and we will market this
site with a view to disposing of the site if a
reasonable price can be obtained in the market.
We have written down the value of this site by
£2.6 million in the year end ﬁgures to reﬂect our
negative outlook on the UK housing market.
We continue to hold a strategic land bank of
owned sites and sites under option which can 
be acquired at varying percentages of their 
market value. These strategic sites are carried at
£0.9 million in our balance sheet but we would
hope that with a fair wind and a lot of patience
these could be worth several times that ﬁgure over 
the medium to long term without comparatively
too much additional expenditure. Whilst we have 
no current intention to develop these sites should 
they gain planning consents we will review the
situation nearer the time.
We also have one second homes scheme, 
The Lakes joint venture with Yoo, at Coln Park,
Lechlade in the Cotswolds (www.thelakesbyyoo.com),
on which we currently have outline planning
permission for 160 second homes, of which 
52 currently have detailed consent, and a hotel.
We are pleased with the buyer response that we
have received given the limited marketing that 
we have done to date. We have exchanged on 
15 of these units at an average price of £900,000
and have a further 15 under offer at an average
price of over £1 million.
Cash and Liquidity
Whatever happened to all that liquidity? It seems
to have been disappearing since last summer 
even quicker than Gordon Brown’s ratings or 
non-domiciles! Raven Mount plc   Report and Accounts 2007
8
Liquidity, both in terms of access to capital and 
the number of transactions being undertaken, is
the life blood of the property industry. The banking
heart that circulates that liquidity is suffering from
recurring, but to date, minor heart attacks and is
having to be resuscitated each time by the US Fed
and/or various Sovereign Funds. If the banks are
scared of dealing with each other (you just have to
look at Libor rates over the last eight months) just
think how much more nervous they are of lending
to their clients!
With few exceptions, the general approach of the
banks in the property sector has been to reduce
access to debt, make it more expensive and more
restrictive and where liquidity is made available to
focus lending on quality clients. This response is to
be expected as the banks seek to rebuild their own
balance sheets but what it inevitably means is that
business life has become much tougher and, in my
opinion, will continue to do so for the foreseeable
future. This will inevitably have a huge impact on
returns on equity on those industries and sectors
that are capital intensive.
It is worth considering the impact of this on our
main areas of operation.
The level of gearing is particularly important 
to our fund management business as we receive
our property advisory fees based on the level of
Raven Russia’s gross assets and not net assets.
There is no doubt that the credit crunch has
reduced the appetite of Western banks to lend 
in their ‘secondary’ markets and to syndicate.
Having said that, an increasing number of Western
banks are entering the Russian banking market
(e.g. Barclays announcement of a few weeks 
ago of the purchase of Expobank) realising the
potential of a Russian market showing average
GDP growth of 7% per annum since 1998,
although many of them have yet to transact
anything substantial. They are attracted by margins
on lending which yield them substantially greater
proﬁts than in more mature economies. When
they do decide to lend, Raven Russia will inevitably
be near the top of the queue as it is seen to be 
a quality client with a strong balance sheet. An
indication of this is the recent announcement by
Raven Russia that it had secured reﬁnancing on
four of its properties at a weighted average cost 
of debt of 6.6% in US Dollars with the yield to
cost on the properties of 13% and gearing of
82.5% on cost. Although margins on lending 
have widened this has been more than offset by
the fall in US Libor. We therefore take the view
Chief Executive’s Report continued
that, to the extent that it is available, credit will
continue to be available for Raven Russia prior 
to most of its competitors to enable it to fulﬁl its
business plan although it will take more time to
implement as the banks will remain cautious in their
approach, particularly in the syndication market.
What is more likely to limit the growth of Raven
Russia in the short term is the ability to raise
additional equity when the shares are trading at a
substantial discount to NAV. It is therefore likely that
once Raven Russia’s funds are fully invested Raven
Mount will seek to leverage the extensive and costly
platform that we have established in this area by
seeking joint ventures with major third party investors
who are seeking exposure to the Russian property
market and more generally other former CIS countries.
The banks are also very much attracted by the
Independent Living sector because of the expected
growth supported by strong demographic trends
and the huge under provision in this sector 
(one major Investment Bank who have made a
huge investment in this sector in Australia and
New Zealand recently informed me that we were 
15-20 years behind them). Once again they are
keen to lend and once again they see our Audley
business as a quality client. Nevertheless, they have
been much quicker to change their recommended
terms, make them more onerous and take much
longer in providing debt. There is no doubt that
this has slowed us down more than we would have
liked and has meant that we will have to devote
more equity to the business than we would wish.
We have therefore taken the view that, given the
more restrictive gearing available, the size of the
opportunity in this sector and the need to maintain
momentum, we will consider seeking a ﬁnancial
joint venture partner for this business.
The biggest impact of the credit crisis and the
general malaise in the housing market has been 
in our approach to the development of a potential
international second home niche area within
Residential Development. In general, we have
taken the approach to retrench and to focus on
one major site in the Caribbean, which we are
hoping to buy subject to planning (and which is
still in the early stages of master planning).
Our other activities are currently funded out of
equity and a group level overdraft. We are fortunate
that our gearing is relatively low and our fund
management cash ﬂow is strong and getting
stronger but whenever I try to take solace from
that I am reminded of that old adage that in these
sort of circumstances if you owe the banks a lot  Raven Mount plc   Report and Accounts 2007
9
of money they are the ones who have a problem
but if you owe the banks a small amount of money
you are the one with the problem!
For those who have been following the US
Presidential election process, let’s hope the liquidity
markets make a John McCain style comeback!
Swan Hill Pension Scheme
Under International Accounting Standard 19 the
2006 scheme deﬁcit of £1.1 million on a pre-tax
basis had become a ‘surplus’ of £5.0 million. The
main factors behind this are detailed in the Finance
Director’s Report. Sounds good doesn’t it?
Unfortunately, I do not think we are standing on
ﬁrm footings as the accounting for pension schemes
is like standing on shifting sand and hoping, nay
praying, you are not about to be sucked into quick
sand. The UK Accounting Standards Board (‘ASB’)
has recently proposed changes which makes me
think that we are about to be. The ASB is proposing
two major changes which will have a fundamental
impact on the accounting of schemes. Firstly, they
are proposing that the present value of future
liabilities should be discounted using the ‘risk-free
rate’, which basically means that the rate should
be based on the relatively low returns on
government bonds, rather than double A-rated
bonds, and would therefore make liabilities
signiﬁcantly bigger. I do not agree with this when
the underlying assets are in fact invested in a range
of investments which carry varying rates of return
and risk – it only makes sense to me if schemes
were forced to invest in such ‘risk-free’ assets. We
can all guess what is coming next! Such accounting
does not change the actual pension liability itself,
which is the actual amount which will be paid to
pensioners over the next seventy odd years, merely
the recording of it today. Secondly, the ASB is
proposing removing the current provisions which
allow for averaging of the discount rate which
means that there will be bigger swings in pension
scheme values. Pension liabilities are long term
liabilities payable over several decades and should
not be subject to the vagaries of such adjustments.
Further pressure is being applied by the pensions
regulator increasingly dictating to schemes the
minimum longevity assumptions to be used in
actuarial valuations; a highly relevant issue to us 
as the next actuarial valuation is due as at 5 April
2008. Recent draft guidance from the regulator
indicates that it would take a closer look at scheme
funding plans which use assumed mortality
improvements less prudent than the PA92 Long
Cohort assumptions, which currently would be
almost all of them! The PA92 Long Cohort
assumptions would add around 4 years to the life
expectancy of our Scheme’s membership compared
to the PMA92/PFA92 standard tables used in the 
2005 actuarial valuation. Each additional year of
life expectancy adds about 5% to pension liabilities.
The net result of all these changes will be to
increase pension scheme funding and lead to
increased volatility in reporting earnings and 
net asset values. This will only add further 
pressure on those schemes which have not 
already closed to new members to do so 
and for those that have, such as ours, to pay
insurance companies to take them over. That is 
the position we as a Company ﬁnd ourselves in. 
In my 2005 Chief Executive’s Report, I indicated
that we would await developments in the
‘insurance industry which may come up with
products whereby the risk and volatility can be
passed on to third parties with stronger balance
sheets than ours’. The time is with us as a number
of players (Aegon, Norwich Union, Paternoster,
Pension Insurance Corporation, Synesis Life, etc)
have entered the UK deﬁned beneﬁt pension buy-
out market in competition to the more established
incumbents Legal & General and the Prudential.
This has made the market signiﬁcantly more
competitive and we, along with most other
companies in a similar position, are considering 
our options accordingly.
In the meantime, it is worth emphasising 
again that our Independent Living business
provides some ‘hedge’ against the residual 
pension fund risk that we carry because, for
example, the very demographic trends that work
against us on the pension fund also work for 
us in the Independent Living business. But, and 
it’s a big but, that comment only applies in the
long run.
Acquisition of Raven Property 
Holdings plc (‘RPH’)
Shareholders will be aware that the Company
purchased RPH in December 2004 for a total
consideration of up to £39.9 million, all payable 
in shares depending upon the value of assets it
acquired (as and when they received detailed
planning permission) providing that such permission
was received within the period to 31 December
2007. During the year the Company issued
3,919,323 shares at an average price of 142p
representing £5.6 million by value, being the
balance of the maximum consideration.  Raven Mount plc   Report and Accounts 2007
10
Chief Executive’s Report continued
ending 31 December 2006 of 1.6 pence (excluding
the 5 pence Special Dividend). This will be payable
to shareholders whose name appears on the
Register of Members as at 18 April 2008 and
payable on 16 May 2008.
Prospects
We live in uncertain and volatile economic times 
in an increasingly inter-linked world which makes
any forecasting hazardous. I have talked about 
the wonderful prospects of our two new business
areas in recent reports and whilst the current
business environment might delay the realisation
of these prospects I continue to believe that we
will be able to deliver in terms of hard numbers
before our self imposed 5 year ‘re-invention’
period which commenced at the end of 
December 2004.
The movement in our share price over the last 
year has been very disappointing, even for those 
of us that do not attach much value to it in the
short term, but it has to be put in the context of a
general malaise in the market – we also have been
tarnished more speciﬁcally with the commercial
property brush, the housebuilding brush, the
Russian brush, the AIM brush and probably Basil
Brush when the share price fell to 70 pence! There
is some small comfort to be gained from a recent
edition of the Investors Chronicle which included
us in their list of the 6 most under valued stocks
out of the 3,000 they looked at.
As always I should like to conclude by thanking 
my fellow Directors, our staff, our advisers and 
our partners for their guidance, efforts and
perseverance during the year.
Bim Sandhu
Chief Executive
18 March 2008
Essentially, this means that any residual value
generated by those assets is for the beneﬁt of all
Raven Mount shareholders under the terms of the
Acquisition Agreement.
Overall, the consideration of £39.9 million has
been paid for by the issue of 49,140,984 shares 
at an average price of approximately 81p, which
coincidentally is the share price of the Company as
I write the ﬁrst draft of my Report. £7.5 million of
the consideration of £39.9 million was goodwill
which was effectively written off on consolidation
on the acquisition of RPH. This goodwill has more
than been repaid in the setting up of our fund
management business (never mind the goodwill 
on Audley) whose value is not reﬂected in the net
assets of the Company.
I thought it would be useful to provide a broad
reconciliation of the Net Assets we acquired on the
takeover of Swan Hill in December 2003 versus the
Net Assets as at 31 December 2007 as this has
been raised by a number of shareholders:
£’m
Net Assets as at 31 December 2003 
(including £2m capital introduced by RM) 72.5
Consideration paid for RPH 39.9
Subtotal 112.4
Goodwill on RPH written off on acquisition (7.5)
Losses in the period 2004-2007 (8.6)
Dividends paid (including 2006 5p Special) (10.4)
Payments to Pension Scheme (8.9)
Pension fund asset net of deferred tax 3.9
Other movements 1.1
Net Assets as at 31 December 2007 82.0
Of course, we now have 2 businesses which have
a substantial goodwill value which is not reﬂected
in the year end Net Asset position. I should also
note that Net Assets includes £2.7 million of losses
attributable to Minority Shareholders and therefore
Shareholders Funds are actually £84.7 million.
Dividends
The Directors continue to adopt a progressive
dividend policy reﬂecting our faith in the Company’s
business models. The Directors therefore propose
to pay a Final Dividend of 1.4 pence per ordinary
share, making the total dividend paid in respect 
of the year to 31 December 2007, 2.2 pence per
ordinary share, an increase of 37.5 % compared 
to the Ordinary dividend relating to the year Raven Mount plc   Report and Accounts 2007
11
Overview of Results
The Group generated a loss on ordinary activities
before taxation of £4.8 million (2006: proﬁt £0.2
million) for the year to 31 December 2007, based
on turnover of £68.6 million (2006: £71.8 million).
Accounting Policies
The Group’s ﬁnancial statements have been
prepared in accordance with International Financial
Reporting Standards (IFRS). The table in note 2
shows the transition from UK GAAP to IFRS.
This is the ﬁrst accounting period that the Group
has been required to prepare accounts under IFRS.
The impact of this change, in terms of the ﬁgures,
has been primarily in respect of deferred taxation
where full recognition of deferred tax assets and
liabilities is required under International Accounting
Standard 12: Income Taxes. The effect on the
Group has been to recognise a deferred tax liability
in respect of the fair value uplift of inventories
arising from the deferred consideration payable in
connection with the RPH acquisition. In addition, a
liability has been recognised on the fair value uplift
on the Raven Russia Limited shares and an asset
has been recognised as a result of writing off the
sales and marketing costs, as a tax deduction will
only be obtained for these when expensed under
UK GAAP .
In addition, the Group has fair valued its shares
and warrants in Raven Russia Limited and Oriel
Securities Limited.
Pension Fund
Under IAS 19 ‘Employment Beneﬁts’, the surplus 
in respect of the ﬁnal salary pension scheme as 
at 31 December 2007 was £5.0 million (2006:
deﬁcit £1.1 million). The total market value of the
pension scheme assets as at 31 December 2007
was £67.2 million and the present value of its
liabilities was £62.2 million.
The main factors have been contributions during
the year of £1.8 million including £0.2 million
towards administrative expenses and the actuarial
gain of £3.2 million principally comprising 
actual returns for the year on the scheme assets 
in excess of expected returns and changes in
assumptions underlying the present value of 
the scheme liabilities.
There is a net credit to the proﬁt and loss account
of £1.2 million representing the difference between
the expected return on the scheme assets and
interest liabilities.
Capital Structure / Deferred Shares
A total of 3,919,323 Ordinary shares were issued
during the year. In respect of the RPH acquisition,
2,744,021 and 1,175,302 Ordinary shares were
issued in April and December 2007 respectively. 
No further consideration is payable in respect 
of RPH acquisition.
As at 31 December 2007, the Company had
112,021,317 Ordinary shares in issue.
Finance Director’s Report
Clevedon Hall, Ilkley (Audley). Raven Mount plc   Report and Accounts 2007
12
Finance Director’s Report continued
Finance Income
Dividend income of £0.7 million was received in
respect of our Raven Russia Limited and Oriel
Securities Limited shares.
Taxation
There is no UK corporation tax liability for 2007
due to the availability of losses within the Group.
The main element of the deferred tax credit of
£2.7 million is the recognition of a £2.0 million
asset in respect of unutilised losses.
Dividends
In 2007, shareholders received dividend 
payments totalling 1.8 pence per Ordinary share
(2006: 6.35 pence). It should be noted that last
year’s ﬁgure included a 5.0 pence per Ordinary
share Special Dividend.
It is proposed to pay a ﬁnal 2007 dividend of 
1.4 pence per Ordinary share (2006: 1.0 pence).
Loss per Share
Basic loss per Ordinary share was 2.0 pence 
(2006: loss 1.1 pence) based on the loss after 
tax of £2.2 million (2006: £1.2 million) and on
110.1 million (2006: 106.9 million) Ordinary shares
being the weighted average number of Ordinary
shares in issue during the year.
Balance Sheet
Non Current Assets
During the year the Group purchased the share
capital of Audley Court Willicombe Park Limited
and the trade and assets of Audley Court Estates
for a total consideration of £4.1 million.
Inventories
Total inventories as at the year end were 
£83.6 million (2006: £65.1 million).
During the year the Group sold out of all its
remaining Swan Hill developments, hence a fall 
in inventories of £11.5 million in relation to 
these developments.
Prior year provisions of £3.6 million were released
during the year following sales completion at the
Paramount (Swindon) development.
As at the year end there is a provision on the
Clifton project in respect of an ongoing dispute
with the contractor, which was made as part of
the Interim ﬁgures.
Group Bank Facilities
The Group has unsecured committed bank facilities
totalling £40.0 million, subject to fulﬁlling certain
criteria, of which £18.3 million was drawn down
at the year end. These facilities are due for 
renewal in August 2008.
Systems and Controls
The growth of our Property Fund Management
activities has lead to a signiﬁcant operation in
Russia. We have ensured that sufﬁcient processes
and controls are in place to monitor these activities
and in particular the relationship with Raven Russia
Limited. The agreement of fees due between the
two companies is governed by our Property
Advisory Agreement and is subject to independent
assessment and veriﬁcation by Walbrook Fund
Managers Limited, Administrator and Secretary 
to Raven Russia Limited.
Financial Review
Income Statement
Revenue
During 2007, the Group had revenue of 
£68.6 million (2006: £71.8 million).
Revenue from Residential development amounted
to £60.1 million (2006: £66.8 million) of which
£Nil million (2006: £3.8 million) related to land
sales. The main contributors to revenue during the
year being Brighton, £33.8 million and Paramount
(Swindon), £21.3 million, neither of which, however,
contribute to net proﬁts. In respect of our Property
Fund Management activities, the Group received
management fee income of £8.5 million 
(2006: £2.9 million, excluding the £2.0 million
performance fee). Independent Living is an early
stage business and is not anticipating having new
stock available to sell until later in 2008.
As at 31 December 2007, the Group was earning
management fees based on US$1,342 million of
funds committed by Raven Russia Limited.
Administrative Expenses
Administrative expenses have increased
signiﬁcantly during 2007 to £16.1 million 
(2006: £12.9 million) as both our Property Fund
Management and Independent Living activities
continue to grow. Direct costs relating to the old
Swan Hill business have been signiﬁcantly reduced
in line with the wind down of those remaining
assets and where appropriate, incorporated into
other Group activities. Raven Mount plc   Report and Accounts 2007
13
Shareholder Return
The share price decreased from 161.0 pence 
to 83.25 pence per Ordinary share over the year, 
a decrease of 48%, and taking into account
receiving total dividends of 1.8 pence during 
the year, this giving a total shareholder return 
of -47.2%.
Raven Russia Limited
In 2005 Raven Russia Limited (Raven Russia) was
ﬂoated on AIM. At ﬂotation the Group purchased
£10.0 million of shares in the company and entered
into a 5 year property advisory agreement to provide
property advisory, management and development
monitoring services to Raven Russia. In 2006, the
agreement was extended to 31 December 2015.
The Group will receive an annual fee of 2% of
gross assets in consideration for its services. In
addition, the Group is entitled to a performance
fee which is calculated by reference to excess
returns achieved by the shareholders of Raven
Russia. Fees to the Group would range from 
20% to 35% based on shareholder returns in
excess of 12% to 25% per annum. In the year 
to 31 December 2007 the Group received
management fees of £8,305,375. As at the 
year end, the Group has a balance of £2,834,333
due in management fees which has been received
post year end.
Raven Russia Property Management Limited, a
subsidiary of the Company, has been granted the
right to subscribe for 7,650,000 Ordinary shares 
in Raven Russia at the placing price of 100 pence
per share, exercisable until 25 July 2010.
Raven Russia has granted various options to 
Raven Mount Employee Beneﬁt Trust, to acquire
up to 7.5% of the issued ordinary share capital 
of Raven Russia, on behalf of Raven Mount
employees, including Directors in three equal
tranches at an exercise price of the Placing Price 
in respect of the ﬁrst tranche and the average
closing mid-market price for the 20 trading days
preceding the ﬁrst and second anniversaries of
Admission for the second and third tranches
respectively. The options are performance 
related and exercisable between 3 and 12 years
from the date of grant. Options are exercisable 
in full if compound shareholder returns exceed
12% per annum over the respective 3 year vesting
periods; no options are exercisable if compound
returns do not exceed 9% per annum over the 
vesting period.
The Group has taken a provision of £2.6 million
against the Shefﬁeld II project. The Group
continues to assess its options with regard to this
development and has taken this provision in light
of current market conditions.
Inventories in relation to RPH totalled £38.5 
million (2006: £40.5 million), the major items
being Brighton (£1.5 million), Shefﬁeld I and II
(£21.2 million) and Lewes (£9.2 million).
Inventories in respect of Audley at the year end
totalled £44.5 million (2006: £12.1 million).
The Group has not reﬂected signiﬁcant uplifts in
value following independent valuations, notably 
on Coln and the Audley sites, other than Mote.
Available for Sale Investments
As at the year end, the Group held 12.4 million
Raven Russia Limited shares, at a cost of £12.9
million. Based on a year end Raven Russia Limited
share price of 89.75 pence per share, the market
value of these shares totals £11.2 million (2006:
£12.3 million). In addition, the value of the 7.65
million warrants over Raven Russia Limited shares
as at 31 December 2007 was calculated using the
Black-Scholes model as £0.4 million, a reduction 
of £0.7 million from the prior year as a result of
the fall in Raven Russia Limited share price.
The Group continued to hold its minority stake in
Oriel Securities Limited (‘Oriel’), an independent
stockbroking and advisory business at cost. Since
we bought our stake the business has performed
well and become more established and respected.
For the year ended 31 December 2007, it made a
pre tax proﬁt (post bonuses) of £5.0 million and
had cash at bank at the year end of £9.6 million.
Although market conditions are not ideal for 
an imminent exit, Oriel’s strong market position
makes it an attractive company within the sector
and we will continue to monitor our options.
Cash and Bank 
Net debt as at the year end was £31.9 million
(2006: cash £8.8 million).
Shareholders’ Funds
Shareholders’ funds at the year end increased to
£82.0 million (2006: £80.3 million). The principal
movements were the dividends paid of £2.0 million
and the actuarial gains of £2.3 million on the pension
scheme. The table below illustrates our view of the
proforma shareholders’ funds of the Group. Raven Mount plc   Report and Accounts 2007
14
Finance Director’s Report continued
• Investment properties valued at US$346 million, 
a 34% increase on cost.
• Four investment properties reﬁnanced,
generating US$179 million at a weighted cost 
of debt to the Group of 6.6% and gearing levels
of 83% loan to cost and 64% loan to value.
• Signiﬁcant tenant demand resulting in rental
levels well above expectation.
• Development projects underway with potential
to produce 2.2 million sq m for all phases.
• Board intends to move from AIM to the 
Ofﬁcial List.
Mark Kirkland
Finance Director
18 March 2008
2007 2006
£m £m
Proforma shareholders’ funds
Shareholders’ funds 82.0 80.3
RPH acquisition deferred consideration add-back – 5.6
Cash receivable from exercise of Share Options 5.1 6.5
Minority interest removed under IAS 27 2.7 1.3
Proforma shareholders’ funds 89.8 93.7
Diluted Ordinary shares (see note 10) 120.8m 124.9m
Proforma shareholders’ funds per diluted Ordinary share 74.3p 75.0p
The above table does not reﬂect the excess over book value of certain stock items.
The following represents the highlights of the
results of Raven Russia Limited for the year ended
31 December 2007, for information to Raven
Mount shareholders.
• Pre tax proﬁt of US$118 million 
(2006: US$37 million) including revaluation 
gains of US$80 million (2006: US$7 million).
• EPS – basic 11.20p (22.36 US cents) 
(2006: 4.80p (9.65 US cents)).
• EPS – diluted 11.18p (22.32 US cents) 
(2006: 4.79p (9.62 US cents)).
• Final dividend proposed of 4p (2006: 2p) 
giving total dividends for the year of 6.5p 
(2006: 4p) an increase of 55.6%.
• Adjusted NAV per share of 115p (US$2.30) 
(2006: 107p (US$2.14) after dividends, an
increase of 7.5%.
• Fully let properties comprising 221,800 sq m
generating US$34.7 million annualised net
income at an ungeared yield on cost of 13%. Raven Mount plc   Report and Accounts 2007
15
The following is the Property Advisor’s Report for the
year ended 31 December 2007 given to Raven Russia
Limited shareholders, for the information of Raven
Mount shareholders.
Property Review
In the twelve months ending 31 December 2007
Raven Russia signed four property acquisitions
excluding Megalogix. The total end value of these
projects once built and let is circa US$344 million.
In total since inception the Company has committed
to projects with a potential end value of over 
US$2.3 billion.
Our focus is now on building out the development
portfolio and leasing it to high quality tenants.
Investment Portfolio
The Company owns three multi let warehouse and
ofﬁce buildings in Moscow (Southern, Baltia and
Krekshino) and the Constanta ofﬁce building in 
St Petersburg which are all fully let and producing 
a yield on cost on an ungeared basis of 13%. The
ﬁrst phase of Istra has also been completed and is
fully let. Our annualised rent roll at the year end
stood at US$34.7 million.
Contracted rents on all of the Company’s properties
total US$64.4 million per annum, represented by
US$34.7 million from the investment portfolio and
US$29.7 million per annum due under pre lettings,
excluding Megalogix. A further US$8.8 million per
annum is currently under negotiation where letters
of intent (‘LOI’) have been signed with prospective
tenants on the development portfolio.
The weighted average unexpired lease term on 
the investment portfolio is 6.5 years although we
anticipate this will rise as prelets on mainly 10 year
leases complete. The majority of the leases allow 
for the annual increase in rents based on US 
CPI providing attractive incremental cashﬂows.
In total these properties comprise 221,800 square
meters (2.39 million square feet) of Gross Lettable
Area (‘GLA’) and produce an annual income of
approximately US$34.7 million on an investment 
of US$260.3 million.
The investment properties were valued at the period
end by JLL in accordance with the RICS Valuation
and Appraisal guidelines. The valuations show an
uplift of US$80 million from 31 December 2006 
(or completion if later), reﬂecting positive yield
compression from the date of acquisition. The
Company continues to hold its development stock
at cost until each building is complete and ready 
for occupation. We believe this approach, whilst 
more cautious than some other Russian developers, is
appropriate given the risks of development. However
we are conﬁdent of creating substantial valuation
uplifts for investors from the development portfolio.
Property Advisor’s Report to Raven Russia Limited
Property Sq m Type Invested Total Annual Project Raven
to date investment rent status Russia
(US$m)* (US$m)* (US$m) share
#
Investment
Baltia, Moscow 28,000 Warehouse 29.1 29.1 3.5 Fully let 100%
Southern, Moscow 14,000 Warehouse 15.6 15.6 2.1 Fully let 100%
Krekshino, Moscow 114,000 Warehouse 106 115 13.6 Fully let 100%
Istra Phase 1 50,000 Warehouse 36.7 43.6 6.5 Fully let 100%
Constanta,
St Petersburg 15,800 Ofﬁce 57 57 9.0 Fully let 100%
Next phase
Development completed
Shushari, St Petersburg 143,000 Warehouse 94 126 16.4 Q1 2008 100%
Pulkovo 1 St Petersburg 34,800 Warehouse 2.6 40 4.8 Q3 2008 100%
Pulkovo 2 St Petersburg 67,000 Warehouse 5.6 65 8.5 Q2 2009 100%
Noginsk, Moscow 275,000 Warehouse 9.5 278 33.4 Q4 2008 100%
Istra, Moscow 156,000 Warehouse 47.7 158 18.6 Q4 2008 100%
Rostov on Don 230,000 Warehouse 12.9 211 27.8 Q4 2008 50%
EG Logistics, Moscow 55,000 Warehouse 14 56 6.7 Q3 2008 100%
Klimovsk 108,044 Warehouse 24.8 112 13.2 Q4 2008 100%
Novosibirsk 116 820 Warehouse 18.4 101 13.2 Q4 2008 50%
Kalinovka 117,963 Warehouse 9.2 95 12.8 Q3 2009 100%
Total 1,525,427 483.1 1,502.3 190.1
* Total Investment is net of VAT and before Raven Russia proﬁt share and Mezzanine interest on development properties.
#
Raven Russia share on completion of the development. Raven Mount plc   Report and Accounts 2007
16
Property Advisor’s Report continued
The rent payable on the investment portfolio is
US$34.7 million compared to a market level of
US$37.0 million, as estimated by Jones Lang
Lasalle (JLL). Not only does this give us a very
stable and reliable income stream, it also means
the portfolio has a reversionary potential of 
US$2.3 million.
In addition to the above properties where
investment has commenced, the Group has
committed to projects with a potential area of
900,000 square meters and an end value of
US$800 million, anticipating a yield on cost of 
over 13% after proﬁt share and interest. In total
therefore we are creating a portfolio of over 
US$2.3 billion at yield on cost of 14%.
Development Portfolio
The Company has continued to progress building
out its development portfolio. Each of these
development projects involves the construction of
multi let warehouse and ofﬁce buildings. Except
for Megalogix, the Company has structured these
as forward funded projects with local development
partners, combined with an investment
commitment on completion.
In total we are now on site building 1.5 million
square meters as shown in the table above. Of this
approximately 650,000 square meters is due for
delivery in 2008 and the balance in 2009/2010 is
subject to tenant demand.
All our projects are being constructed to Grade A
standards and we have ensured that our design
allows maximum ﬂexibility to phase development
to meet the requirements of occupiers.
The Company has contracted to commit an initial
amount of approximately US$1.2 billion to the
forward funded projects. A further US$800 million,
net of VAT, has been conditionally committed to
fund further phases of development and the
acquisition of partners’ interests in these same
projects, including Megalogix.
We anticipate these projects will produce total net
rental income of approximately US$229 million on
an anticipated end value of US$1.86 billion, net of
VAT, when built and let. We estimate the yield on
investment from these projects is expected to be in
the region of 14% after accounting for forward
funding ﬁnancing income and the Company’s
share of potential development proﬁts.
At Shushari, St Petersburg the ﬁrst phase of
65,000 square meters (0.7 million square feet),
which has been pre-let on a 10-year lease to
Avalon Logistics (LLC), is physically complete and
the tenant has just commenced its ﬁt out works.
The remaining two phases are expected to be
completed by the summer and we anticipate pre-
letting these prior to completion of construction.
At Istra, Moscow the ﬁrst 50,000 square meters
(0.54 million square feet) was delivered at the end
of 2007. A long term lease has been entered into
with Interleasing and a preliminary lease for 
the remaining space has been entered into with
Bacardi. Phase 2, comprising 52,000 square meters
(0.56 million square feet), is also 100% prelet to
DSV on a 10 year lease and this phase is due for
delivery next month. Rents on both phases are 
8% above our expectations when we completed
the acquisition. The third phase is already on site
for delivery by the year end and negotiations 
with tenants are progressing well.
At Noginsk, Moscow, Phase 1 of this project,
110,000 square meters (1.18 million square feet),
started slightly later than we had hoped although
we expect delivery by the end of 2008. The
balance, up to a further 200,000 square meters
will commence once we have substantially pre-let 
the ﬁrst phase.
Our partner at EG Logistics has suffered some
minor delays re-zoning a small area of land and
this has pushed back the delivery date for the
project until Q3 2008. We have already signed a
prelet on 30,000 square meters with the partner
and we have now concluded an LOI on the
balance of the space (24,130 square meters) at a
rent 5% ahead of our expectations.
SKF, our partners on a project to develop 108,000
square meters to the south of Moscow are on site
and expect to deliver the ﬁrst 50,000 square
meters by the year end.
Work at Pulkovo 1, adjacent to St Petersburg
International Airport has started and the partner 
is in the ﬁnal stages of tendering Pulkovo 2 for 
a start on site at the start of the summer.
The conditions precedent necessary to close the
proposed JV with RDI have yet to be satisﬁed,
although we continue to work with the partner 
to ﬁnalise these.
In September we signed a development joint
venture agreement with a local partner in Kiev,
Ukraine. The 20 hectare site is well located on 
the Kiev – Odessa highway and we have already
commenced demolition of the existing buildings on
the site. With our partner we expect to deliver a
total of 118,000 square meters by the end of 2009.
Megalogix Joint Venture
The Megalogix Joint Venture has completed 
the acquisition of sites suitable for warehouse
development in 6 major regional cities, and has Raven Mount plc   Report and Accounts 2007
17
signed conditional agreements to acquire land in 
a further 3 cities. Due diligence is also ongoing 
on a number of other opportunities in other 
major cities.
In Rostov on Don, the ﬁrst phase of the project 
of 100,890 square meters (1.09 million square feet)
has already started on site and is due for delivery
by the end of 2008. Subject to tenant demand
there is the potential to develop a further 127,440
square meters (1.372 million square feet). In
Novosibirsk works have also commenced building
116,820 square meters (1.26 million square feet)
which will be delivered by the end of 2008. There
is good early interest from tenants for these projects.
Elsewhere we are ﬁnalising the design, permitting
and tendering process for a further 6 sites. Our
plan is to commence construction once full permits
and ﬁnancing facilities are in place during the
summer. In total the ﬁrst phases of these projects
will provide 361,000 square meters of Grade A
warehouse space, although in total there is the
potential to build 1.282 million square meters.
Deal Pipeline
In addition to these projects we are actively
considering or are in detailed negotiations on a
number of other projects which meet the Company’s
investment objectives. We estimate that the end
value of these projects could amount in aggregate
to approximately US$1.25 billion, net of VAT and
excluding the Company’s share of the Megalogix
joint venture.
The Market
There are three key components to the value of
property in the market: debt, investor’s perspective
and occupier demand.
Occupier demand is the most important factor in
determining the outlook for property. If tenants
require space then that demand creates stable or
increasing rents which underpin value. An investor
will buy a stable rental income stream on an
aggressive yield if they can see underlying occupier
demand and the potential for rental increase at
the expiry of the lease.
Tenant demand in Russia is still very strong, driven
by a number of factors. The consumer driven retail
boom referred to in last year’s Property Advisors
review is still in full swing. The average Russian is
spending money and the major retailers are
opening more and more stores across the country.
Ikea has opened 10 mega mall retail developments
in Russia totalling 1.67 million square meters and
has plans for 6 further stores. They are not alone
in expanding quickly: many high proﬁle European
retailers are increasing their offerings at a rapid
rate including Auchan Castorama, Media Markt
and Metro. We should of course not forget the
Russian retailers who are also in the act.
All this is good for Raven Russia as retailers and
the FMCG companies need distribution space.
The impact of the credit crunch is being felt in
Russia and although agents estimate 1.3 million
square meters of warehouse space will be delivered
in Moscow in 2008, we doubt it will actually be
more than 750,000 square meters. With demand
remaining strong we expect rents to continue 
to rise, although our focus is on securing the best
tenants on the longest term leases; security of 
cash ﬂow being paramount. It is also worth noting
tenants have income from the majority of their
clients in Roubles and the decline in the US Dollar
has made rents much more affordable.
As mentioned above rents are rising and tenant
demand is strong. This is good news for values
which we expect to continue to grow. When this
growth happens will be determined, to some
extent, by the availability of debt.
We have already seen compression from mid teen
initial yields to high single digits, continued growth
is likely due to the excellent demand dynamics.
During the ﬁrst six months of 2007 yield compression
was substantial, in the second six months of the
year much less so, unsurprisingly.
We have seen increasing investor interest in Russia
over the past year with new names entering the
market looking for stock. Now the presidential
election is over and the political outlook is clearer
we expect these investors to commit funds into
the market.
Raven Russia Property Management Limited
We have built the best and most experienced team
in the warehouse market over the past 2.5 years.
We have recruited heavily and have a team that
can source and close deals, build buildings, ﬁnd
tenants and arrange debt. In everything we do 
we are setting new standards and often creating 
a way to integrate western best practice and
Russian standards.
Outlook
This year the portfolio will change dramatically 
as we turn land into buildings with tenants and
construction projects into income producing assets.
Our focus is building on time and budget, leasing
to good tenants on long term leases, and
reﬁnancing for the long term at competitive
margins and loan to values. Raven Mount plc   Report and Accounts 2007
18
Board of Directors
A J G Bilton Executive Chairman
Anton Bilton, aged 43, was the founder,
Chief Executive and majority shareholder 
of Raven Property Holdings plc, the residential
arm of which was acquired by the Company
in December 2004. He has been a founder
and Director of three other companies that
have ﬂoated on AIM. Anton is Chairman of
Raven Russia Property Management Limited.
G V Hirsch Executive Deputy Chairman
Glyn Hirsch, aged 46, qualiﬁed as a
Chartered Accountant with Peat, Marwick
Mitchell & Co in 1985. Until 1995 he worked
in the corporate ﬁnance department of 
UBS (formerly Phillips & Drew) latterly as an
Executive Director specialising in UK smaller
companies. From 1995 until 2001 he was
Chief Executive of CLS Holdings plc, the
listed property investment company, a former
Director of Citadel Holdings plc, the specialist
French property investor and former Chairman
of Property Fund Management plc, the listed
property fund management business. Glyn 
is also a Non-Executive Director of a number
of public and private companies including
Liontrust Asset Management plc. Glyn is a
Director of the Swan Hill Pension Trust Limited.
B S Sandhu Chief Executive
Bim Sandhu, aged 46 qualiﬁed as a Chartered
Accountant with KPMG in London. Following
qualiﬁcation he was appointed Secretary 
of the KPMG UK Property and Construction
Group. Subsequently he became Financial
Director and then Managing Director of the
UK operations of Hudson Conway, a listed
Australian property developer. He was also 
a Director of The Courage Pub Company plc,
which owned the then 5,000 strong Courage
Pub Estate, representing Hudson Conway’s 
50% interest in the joint venture. Bim was
Managing Director and a major shareholder
of Raven Property Holdings plc prior to its
acquisition in December 2004. He is Chairman
of the Group’s Independent Living subsidiary,
Raven Audley Court plc. He is a graduate of
the London School of Economics and graduated
from Cass Business School at City University
joint top of his MBA class and with distinction.
He is a Fellow of the Institute of Directors, the
Institute of Chartered Accountants in England
and Wales and the Chartered Management
Institute. Bim is a Director of the Swan Hill
Pension Trust Limited.
J B Hyslop 
Non-Executive Director
James Hyslop, aged 62, joined Phillips 
& Drew in 1967, where he held various 
sales and research positions before being
appointed a partner in 1981. From 1986 to
1990 he was a Director in charge of Property
Corporate Finance at UBS Phillips & Drew
and subsequently from 1990 to 1998 he 
was Head of Property of PDFM Limited (now
UBS Global Asset Management Limited). 
He is currently a member of the Investment
Committees of Gresham Property Partners 
I & II (Schroder property investment
management funds) and Lionbrook Property
Partnership (an ING real estate investment
management fund), and, until recently, was 
a member of the Investment Committee 
of CBRE Investors and a consultant for UBS
Global Asset Management Limited. From
1998 to 2002, he served as a Non-Executive
Director at Saville Gordon Estates plc, latterly
as Chairman. James is Chairman of the
Nominations Committee, a member of the
Audit and Remuneration Committees and
Chairman of the Swan Hill Staff Pension
Trust Limited.
R P Macnamara
Non-Executive Director
Rory Macnamara, aged 53 qualiﬁed as a
Chartered Accountant with Price Waterhouse
and worked in merchant banking with
Morgan Grenfell for 17 years (during which
time it was acquired by Deutsche Bank AG).
He was a Director in Corporate Finance,
Head of Mergers and Acquisitions and Vice
Chairman of Morgan Grenfell & Co Limited.
In 1999, he joined Lehman Brothers, where
he was a Managing Director in UK Investment
Banking until 2001. He currently acts as a
corporate consultant and is Chairman of
Izodia plc and Goshawk Insurance Holdings
plc and a Director of Private Equity Investor
plc, Dunedin Income Growth Investment
Trust plc and Augean PLC. Rory is Chairman
of the Audit Committee and a member of the
Remuneration and Nominations Committees.  Raven Mount plc   Report and Accounts 2007
19
Advisers
Independent Auditors
BDO Stoy Hayward LLP
55 Baker Street
London W1U 7EU
Nominated Advisers
Shore Capital Stockbrokers Limited
Bond Street House
14 Clifford Street
London W1S 4JU
Joint Brokers
Oriel Securities Limited
125 Wood Street
London EC2V 7AN
Shore Capital & Corporate Limited
Bond Street House
14 Clifford Street
London W1S 4JU
Principal Bankers
The Royal Bank of Scotland Group
Barclays Bank
Solicitors
Steptoe & Johnson LLP
99 Gresham Street
London EC2V 7NG
Berwin Leighton Paisner LLP
Adelaide House, London Bridge
London EC4R 9HA
Registrars
Capita IRG Plc
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
M A Kirkland Finance Director
Mark Kirkland, aged 40, qualiﬁed as a
Chartered Accountant with Price Waterhouse
in London. He has signiﬁcant experience in
UK small and mid-cap company corporate
ﬁnance, gained predominately with UBS
Limited. Mark was part of the original team
that led the takeover of Swan Hill Group plc
in 2003.
R T E Ware 
Non-Executive Director
Robert Ware, aged 53, served as a Director
of Development Securities plc between 1988
and 1994, ﬁlling the roles of joint Managing
Director and Finance Director in the latter
stage of his tenure. In 1994, he left to take
up the position of Managing Director of
Dunton Group plc where he stayed until
November 1996. He joined MEPC plc in June
1997 serving ﬁrst as Corporate Development
Director and then as Deputy Chief Executive
between June 1997 and June 2003. He is
Chief Executive of The Conygar Investment
Company PLC and a Non-Executive Director
of Tarsus Group plc, Marwyn Value Investors
I Limited, Marwyn Value Investors II Limited
and Gartmore Growth Opportunities plc. 
He is a Fellow of the Institute of Chartered
Accountants in England and Wales. 
Robert is Chairman of the Remuneration 
Committee and a member of the Audit 
and Nominations Committees. Raven Mount plc   Report and Accounts 2007
20
For the year ended 31 December 2007
The Directors present their report and the audited 
accounts for the year ended 31 December 2007.
Results and Dividends
The loss before tax which amounted to £4.8 million 
(2006: proﬁt £0.2 million) is shown in the Consolidated
Income Statement on page 28. A ﬁnal dividend for 2006
of 1.0 pence per Ordinary share and an interim dividend
of 0.8 pence per Ordinary share for 2007 were paid 
during the year. A ﬁnal dividend of 1.4 pence per 
Ordinary share is proposed.
Principal Activities, Business Review 
and Future Developments
The Group’s business comprises property fund management;
the operation of independent living facilities and
housebuilding and property development in the United
Kingdom and overseas. A more detailed report on the
Group’s activities and strategy is contained in the Chairman’s
Statement, the Chief Executive’s Report and the Finance
Director’s Report.
Financial Instruments
The details of the Group’s ﬁnancial instruments are
disclosed in note 18 on pages 47 to 49.
Directors
The Directors who served the Group during the year 
were as follows:
A J G Bilton (Executive Chairman)
G V Hirsch (Executive Deputy Chairman)
B S Sandhu (Chief Executive)
M A Kirkland (Finance Director)
J B Hyslop (Non-Executive)
R P Macnamara (Non-Executive)
R T E Ware (Non-Executive)
In accordance with the Articles, one third of the Directors
are required to retire by rotation at each AGM. A J G Bilton
and J B Hyslop will retire and, being eligible, offer themselves
for re-election. A J G Bilton has a service contract with the
Company terminable with a notice period of 12 months. 
J B Hyslop has no service contract with the Company.
No Director had any material interest in any contract of
signiﬁcance during the year to which the Company or its
subsidiaries was party with the exception of the acquisition
of Raven Property Holdings plc, details of which were sent
to shareholders in November 2004 and approved at an
Extraordinary General Meeting on 13 December 2004.
Interests of the Directors (including those of their families)
in the share capital of the Company are shown below. No
Director had any beneﬁcial interest in the Ordinary shares
of any subsidiary company during the year. 
Directors’ Report
Director’s Interests in Ordinary Shares
31 December 2007 1 January 2007
Number Number
Executive
A J G Bilton 36,758,422 34,145,801
G V Hirsch 250,000 250,000
B S Sandhu 22,257,562 20,950,860
M A Kirkland 16,000 Nil
Non-Executive
J B Hyslop 222,000 222,000
R P Macnamara 216,666 216,666
R T E Ware 275,000 275,000
A J G Bilton’s and B S Sandhu’s interests both include
2,125,000 (1 January 2007 – 2,125,000) Ordinary shares
held by Santon Investments Limited and 5,625,000 
(1 January 2007 – 5,625,000) Ordinary shares held by
Santon Capital plc (formerly The Raven Property Group
plc). Santon Investments Limited is wholly owned by
Santon Capital plc. A J G Bilton and B S Sandhu each own
50% of the issued share capital of Santon Capital plc and
are also directors of that company. The economic interests
of A J G Bilton is 32,883,422 shares and B S Sandhu is 
15,432,562 shares.
A J G Bilton’s and B S Sandhu’s interests also include their
interests as Trustees of various trusts which respectively
own 4,049,415 (1 January 2007 – 1,318,902) and
3,142,018 (1 January 2007 – 660,931) Ordinary shares.
All of the interests of the other directors are beneﬁcial.
Directors’ Beneﬁcial Interests 
in Convertible Ordinary Shares 
and Share Options
In addition, A J G Bilton, B S Sandhu, and G V Hirsch are
interested in 6,000 Convertible Ordinary shares held by 
the trustees of the Raven Mount Employee Beneﬁt Trust, 
a discretionary trust, as potential beneﬁciaries under the
trust. The trust was established on the Admission of 
Raven Mount plc to AIM, prior to the takeover of Swan
Hill Group plc. To the extent not previously converted,
each Convertible Ordinary share will convert into 396
Ordinary shares on the ﬁfth anniversary of the Admission
of Raven Mount to AIM, being 17 December 2008. Based
on the Raven Mount share price of 83.25 pence as at 31
December 2007, the Convertible Ordinary shares would have
converted into the minimum 2,376,000 Ordinary shares. Raven Mount plc   Report and Accounts 2007
21
The Company also operates an Unapproved Share 
Option Plan and an Approved Share Option Plan and 
the Executive Directors hold options over the following:
Unapproved plan Approved plan
Ordinary shares Ordinary shares 
at 80p at 105p
A J G Bilton 1,550,000 28,571
G V Hirsch 1,550,000 28,571
B S Sandhu 1,550,000 28,571
M A Kirkland 750,000 28,571
In addition, the three Non-Executive Directors: J B Hyslop,
R P Macnamara and R T E Ware, each hold Unapproved
plan options over 175,000 Ordinary shares at 155.1 pence
per share.
The options are exercisable subject to and in accordance
with the Rules of the Raven Mount plc Share Option Plans.
These options may not normally be exercised before the
Option Holder has been notiﬁed that, if applicable, the
Performance Conditions have been met. The details of the
plans are set out in note 22 on page 51.
Substantial Shareholders’ Interests
At 28 February 2008 the following disclosures of interest
pursuant to sections 198 to 208 of the Companies Act 1985
(as amended) in the Company’s issued Ordinary share
capital had been notiﬁed to the Company:
% of
share capital
Anton Bilton and Bim Sandhu (Combined holding) 43.8
Schroder Investment Management Ltd 12.3
Silchester International Investors Ltd 6.8
Deutsche Bank AG London (Bluecrest) 5.6
Credit Suisse First Boston Limited (Laxey Group) 3.4
The interests of each director are shown on page 20.
Employees
The Board is committed to setting the highest standards of
integrity throughout the Group. Its personnel policies are set out
in the Group’s standard terms and conditions of employment.
Great importance is placed by the Group on employee
communication and involvement. Information concerning
the Group is provided to employees through normal
management channels and brieﬁngs as well as through
regular circulars and by the distribution to employees of
the annual report and accounts and the interim statement. 
The Group is committed to the provision of appropriate
training and to help employees acquire the skills and
experience, which enable them to fulﬁl their roles and 
to develop their potential.
Raven Property Group plc (formerly Swan Hill Group plc) 
(a wholly owned subsidiary of Raven Mount plc), Raven
Audley Court plc and Raven Russia Property Management
Limited, operate a policy of equal opportunity. No job
applicant or employee is to be treated less favourably 
than another on the grounds of sex, marital status, race,
nationality, ethnic origin, colour, age or religious belief. 
Within the limitations of its trading activities, it is the
Group’s policy to make every effort to engage disabled
persons. If an employee becomes disabled during the
period of employment every effort is made, through 
re-training if necessary, to enable the employee to remain
with the Group. Opportunities for career development 
are available to all, including disabled persons.
Pensions
The Group operates a Retirement Plan which is a deﬁned
contribution plan based on a stakeholder pension contract.
New staff are invited to join this plan.
The Group previously operated a ﬁnal salary pension
scheme. The Group paid contributions to the fund in order
to provide security for existing pensions and the accrued
beneﬁts of current and former employees. With effect
from 31 December 2005, beneﬁts accruals ceased and
current employees’ beneﬁts were based on salaries at 
that date. In place of the ﬁnal salary pension scheme the
Group invited active members of the pension scheme to
join the Group’s Retirement Plan.
Creditor Payment Policy
It is the Group’s code of practice to agree payment terms
with its suppliers, along with other terms and conditions,
when it enters into binding purchase contracts. Its policy 
is to abide by the agreed payment terms provided that the
supplier has delivered the goods or services in accordance
with the terms and conditions of the contract. Group creditor
days at 31 December 2007 were 7 (2006: 25). Company
creditor days at 31 December 2007 were 32 (2006: 31).
Health and Safety
The Group’s policy is to ensure the health, safety and
welfare of everyone engaged in, or affected by, its activities.
In particular, it emphasises the need to eliminate risks before
accidents occur and before health is endangered. Health
and safety specialists carry out regular audits together 
with the Group’s insurance broker. There is a nominated
director who reports regularly to the Board on health and
safety matters.
Donations
During the ﬁnancial year the Group and its Charitable
Trust made charitable donations totalling £19,250, (£2,750
and £16,500 respectively) (2006: £63,350, £8,500 and
£54,850 respectively).
The Company encourages all of its Directors and employees
to make charitable contributions through the GAYE Payroll
Deduction Scheme. During the course of the year the
Company’s Directors and employees contributed £345,024
to charities under the Scheme (2006: £147,053). Raven Mount plc   Report and Accounts 2007
22
No political donations were made during the year.
Environmental Policy
The Group’s environmental policy is to meet statutory
requirements and to apply good environmental practices 
in its business operations and in the development of 
its properties.
Directors’ Indemnity
On 5 April 2005, the Companies (Audit Investigations and
Community Enterprise) Act (the ‘New Act’) came into
force. The New Act contained provisions expanding the
extent to which companies may indemnify their directors.
The effect of the New Act was that companies could now
indemnify directors and ofﬁcers against more forms of
liability, which include defence costs in criminal or civil
cases as they were incurred (subject to any obligation to
repay if the defence is unsuccessful). Consequently, the
Company’s Articles of Association were updated with a
new Article 138 at the AGM held on 5 June 2006.
Directors’ Responsibilities
The Directors are responsible for keeping proper accounting
records which disclose with reasonable accuracy at any
time the ﬁnancial position of the group, for safeguarding
the assets of the company, for taking reasonable steps for
the prevention and detection of fraud and other irregularities
and for the preparation of a Directors’ Report which complies
with the requirements of the Companies Act 1985.
The Directors are responsible for preparing the annual
report and the ﬁnancial statements in accordance with the
Companies Act 1985. The Directors are also required to
prepare ﬁnancial statements for the group in accordance
with International Financial Reporting Standards as adopted
by the European Union (IFRSs) and the rules of the London
Stock Exchange for companies trading securities on the
Alternative Investment Market. The Directors have chosen to
prepare ﬁnancial statements for the company in accordance
with UK Generally Accepted Accounting Practice.
Group Financial Statements
International Accounting Standard 1 requires that ﬁnancial
statements present fairly for each ﬁnancial year the Group’s
ﬁnancial position, ﬁnancial performance and cash ﬂows.
This requires the faithful representation of the effects of
transactions, other events and conditions in accordance
with the deﬁnitions and recognition criteria for assets,
liabilities, income and expenses set out in the International
Accounting Standards Board’s ‘Framework for the
preparation and presentation of ﬁnancial statements’. 
In virtually all circumstances, a fair presentation will be
achieved by compliance with all applicable IFRSs. A fair
presentation also requires the Directors to:
• consistently select and apply appropriate 
accounting policies;
• present information, including accounting policies, 
in a manner that provides relevant, reliable, 
comparable and understandable information; and
Directors’ Report continued
• provide additional disclosures when compliance with 
the speciﬁc requirements in IFRSs is insufﬁcient to
enable users to understand the impact of particular
transactions, other events and conditions on the entity’s
ﬁnancial position and ﬁnancial performance.
Parent Company Financial Statements
Company law requires the Directors to prepare ﬁnancial
statements for each ﬁnancial year which give a true and
fair view of the state of affairs of the Company and of the
proﬁt or loss of the company for that period. In preparing
these ﬁnancial statements, the Directors are required to:
• select suitable accounting policies and then apply 
them consistently;
• prepare the ﬁnancial statements on the going concern
basis unless it is inappropriate to presume that the
company will continue in business;
• make judgements and estimates that are reasonable 
and prudent; and
• state whether applicable accounting standards have
been followed, subject to any material departures
disclosed and explained in the ﬁnancial statements.
Financial statements are published on the Group’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 Group’s
website is the responsibility of the Directors. The Directors’
responsibility also extends to the ongoing integrity of the
ﬁnancial statements contained therein.
Auditors 
BDO Stoy Hayward LLP are willing to continue in ofﬁce
and a resolution to reappoint them will be proposed at 
the Annual General Meeting.
All of the current Directors have taken all 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.
Annual General Meeting
A separate circular accompanying this Report explains 
the ordinary and special business to be considered at the
Annual General Meeting which will be held at the ofﬁces
of Berwin Leighton Paisner, Adelaide House, London Bridge,
London EC4R 9HA at 10.00 am on Monday 12 May 2008.
By order of the Board
M A Kirkland
Secretary
18 March 2008 Raven Mount plc   Report and Accounts 2007
23
Corporate Governance
Compliance Statement
The Directors acknowledge the importance of the
Principles set out in The Combined Code issued by the
Committee on Corporate Governance. Although, as a
result of the Company’s listing on the Alternative Investment
Market, the Company is not required to follow The
Combined Code, the Directors set out below how the
principles that they consider to be relevant to the
Company have been applied during the year.
The Board
The Board now comprises four Executive Directors and
three independent Non-Executive Directors. The Board
includes Non-Executive Directors of sufﬁcient calibre and
number to bring independent judgement on the key issues
facing the Group. It is responsible for corporate governance
and meets regularly to review reports from the Directors
and Board committees. It determines overall Group
strategy and approves annual proﬁt and loss and cash
ﬂow budgets and, in conjunction with revised forecasts,
monitors these at regular intervals against actual
performance. It also monitors internal controls which
includes the assessment of the risks associated with the
business. It sets limits for working capital and capital
expenditure as part of the budgeting process and
authorises major new projects or contractual obligations
under the reserved powers procedures as well as
signiﬁcant ﬁnancing matters. To enable the Board to
discharge its duties, all Directors have full access to all
relevant information and to the advice and services 
of the Company Secretary. The appointment and removal 
of the Company Secretary is a matter for the Board as a
whole. In addition, the Directors may take independent
professional advice in the furtherance of their duties, if
necessary, at the Company’s expense. The Board considers
and, if appropriate, approves external appointments 
of the Directors and the terms of these.
There are three principal committees of the Board: the
Audit, Remuneration and Nominations Committees.
Audit Committee
This committee is chaired by R P Macnamara and
comprises the Non-Executive Directors with the attendance
of relevant Executive Directors. It reviews both the internal
and external accounting policies and practices adopted 
by the Group, taking into account the implications of 
any changes in accounting standards, the operation and
effectiveness of the internal ﬁnancial controls and considers
the auditors’ ﬁndings arising from their audit. The
Committee meets at least twice a year.
The Committee is also responsible for monitoring
compliance with accounting and legal requirements and
for reviewing the annual and interim ﬁnancial statements
prior to their submission for approval by the Board.
Remuneration Committee
This committee is chaired by R T E Ware and comprises 
the Non-Executive Directors. The Remuneration Committee
assesses the performance of the Executive Directors so as
to determine their annual remuneration, any bonus and
option awards.
The Directors’ Remuneration Report is set out on page 24.
Nominations Committee
This committee is chaired by J B Hyslop and comprises the
Non-Executive Directors. Changes in the membership of
the Board are considered by the Nominations Committee
prior to making recommendations to the full Board.
Going Concern
The Code requires that the Board should state in the
Report and Accounts that the business is a going concern.
It should be recognised that any consideration about the
foreseeable future involves making a judgement, at a
particular point in time, about future events which are
inherently uncertain. After making enquiries, however, 
the Board has a reasonable expectation that the Company 
and the Group have adequate resources to continue in
operational existence for the foreseeable future. For this
reason, they continue to adopt the going concern basis 
in preparing the accounts.
By order of the Board
M A Kirkland
Secretary
18 March 2008 Raven Mount plc   Report and Accounts 2007
24
Remuneration Policy 
The objective of the Group’s remuneration policy is to pay salaries and beneﬁts in line with other UK
companies of a similar size and complexity so as to attract, retain and incentivise high calibre staff,
recognising that they are key to the success of the business. Consistent with this policy, beneﬁt packages
awarded to Directors are intended to be competitive and comprise a mix of performance-related and 
non-performance-related remuneration designed to incentivise directors. Remuneration for the Executive
Directors comprises annual salaries, bonuses and share options.
A J G Bilton, G V Hirsch and B S Sandhu are entitled to a contribution towards their pension funds equivalent
to 20% of their salary up to the age of 46 when it increases to 25%.
Directors’ Remuneration 
Details of the Directors’ remuneration in respect of qualifying services are shown below. The following table
and notes have been audited.
Salary Beneﬁts Bonuses Total Total Pension Pension
and fees (i) (ii) 2007 2006 2007 2006
£’000 £’000 £’000 £’000 £’000
Executive
A J G Bilton (iii) 294 7 – 301 488 59 58
G V Hirsch 208 7 – 215 402 47 40
B S Sandhu 294 3 – 297 487 59 58
M A Kirkland (iv) 158 2 – 160 153 – –
Non-Executive
J B Hyslop 46 – – 46 45 – –
R P Macnamara 36 – – 36 35 – –
R T E Ware 36 – – 36 35 – –
1,072 19 – 1,091 1,645 165 156
(i) Beneﬁts include provision of life insurance and private health insurance.
(ii) Overall Group performance is taken into account when determining Directors’ bonuses.
(iii) Highest paid Director.
(iv) M A Kirkland was appointed as a Director on 26 April 2006 and his remuneration for 2006 
is shown from that date.
Service Contracts
The Directors’ service contracts and appointments as at the year end are as follows:
Executive Salary Contract Unexpired Notice Contractual
(Contracts) £’000 date term period termination payment
A J G Bilton 297 24.11.04 Rolling contract 12 months (Payment of 12 months
G V Hirsch 210 24.11.04 Rolling contract 12 months salary and beneﬁts
B S Sandhu 297 24.11.04 Rolling contract 12 months on summary
M A Kirkland 160 17.12.03 Rolling contract 12 months termination)
Non-Executive
(Appointment Letters)
J B Hyslop 47 10.11.03 Rolling contract 3 months (No provision
R P Macnamara 36 10.11.03 Rolling contract 3 months for payment of
R T E Ware 36 10.11.03 Rolling contract 3 months compensation)
The Directors’ Remuneration Report Raven Mount plc   Report and Accounts 2007
25
Share Options
It is the Board’s view that it is necessary to have in place means by which the Board can incentivise the
Directors of the Group and link their interests with those of the shareholders recognising that such incentives
should only be payable provided that the Company’s performance, as measured through its share price and
subject to certain performance conditions, has produced real beneﬁts for the Company and its shareholders.
An equity-settled share-based payment arrangement held by the Trustees of Raven Mount Employee Beneﬁt
Trust was established on the Admission of Raven Mount plc to AIM in December 2003. In December 2005,
the Company adopted an Unapproved Share Option Plan and an Approved Company Share Option Plan
which provide for the issue of options over Ordinary shares in the Company. Details of these schemes are
included in note 22.
R T E W are
Chairman of the Remuneration Committee
18 March 2008 Raven Mount plc   Report and Accounts 2007
26
We have audited the Group and Parent Company ﬁnancial statements (the ‘ﬁnancial statements’) of Raven
Mount plc for the year ended 31 December 2007 which comprise the consolidated income statement, the
consolidated and company balance sheets, the consolidated cash ﬂow statement, the consolidated statement
of recognised income and expense, and the related notes. These ﬁnancial statements have been prepared
under the accounting policies set out therein.
Respective Responsibilities of Directors and Auditors
The directors’ responsibilities for preparing the Annual Report and Group ﬁnancial statements in accordance
with applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European
Union, and for preparing the parent company ﬁnancial statements in accordance with applicable law and
United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set 
out in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the ﬁnancial statements in accordance with relevant legal and regulatory
requirements and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the ﬁnancial statements give a true and fair view and have 
been properly prepared in accordance with the Companies Act 1985 and whether the information given in
the Directors’ Report is consistent with those ﬁnancial statements. We also report to you if, in our opinion,
the Company has not kept proper accounting records, if we have not received all the information and
explanations we require for our audit, or if information speciﬁed by law regarding Directors’ remuneration
and other transactions is not disclosed.
We read other information contained in the annual report and consider whether it is consistent with the
audited ﬁnancial statements. This other information comprises only the Directors’ Report, the Chairman’s
Statement, the Chief Executive’s Report, the Finance Director’s Report, the Directors’ Remuneration Report
and the Corporate Governance Statement. We consider the implications for our report if we become aware
of any apparent misstatements or material inconsistencies with the ﬁnancial statements. Our responsibilities
do not extend to any other information.
Our report has been prepared pursuant to the requirements of the Companies Act 1985 and for no other
purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this
report by virtue of and for the purpose of the Companies Act 1985 or has been expressly authorised to do 
so by our prior written consent. Save as above, we do not accept responsibility for this report to any other
person or for any other purpose and we hereby expressly disclaim any and all such liability.
Basis of Audit Opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued 
by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the
amounts and disclosures in the ﬁnancial statements. It also includes an assessment of the signiﬁcant estimates
and judgments made by the Directors in the preparation of the ﬁnancial statements, and of whether the
accounting policies are appropriate to the Group’s and Company’s circumstances, consistently applied and
adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we
considered necessary in order to provide us with sufﬁcient evidence to give reasonable assurance that the
ﬁnancial statements are free from material misstatement, whether caused by fraud or other irregularity or
error. In forming our opinion we also evaluated the overall adequacy of the presentation of information 
in the ﬁnancial statements.
Independent Auditors’ Report to the shareholders of Raven Mount plc Raven Mount plc   Report and Accounts 2007
27
Opinion
In our opinion:
• the group ﬁnancial statements give a true and fair view, in accordance with IFRSs as adopted by the
European Union, of the state of the group’s affairs as at 31 December 2007 and of its loss for the year 
then ended;
• the parent company ﬁnancial statements give a true and fair view, in accordance with United Kingdom
Generally Accepted Accounting Practice, of the state of the parent company’s affairs as at 31 December
2007;
• the ﬁnancial statements have been properly prepared in accordance with the Companies Act 1985; and
• the information given in the Directors’ Report is consistent with the ﬁnancial statements.
BDO Stoy Hayward LLP
Chartered Accountants and Registered Auditors
London
18 March 2008 Raven Mount plc   Report and Accounts 2007
28
For the year ended 31 December 2007
2007 2006
Note £’000 £’000
Revenue 3 68,569 71,781
Cost of sales (59,901) (60,769)
Gross proﬁt 8,668 11,012
Administrative expenses (16,123) (12,858)
Other income 1,033 –
Group operating loss 6 (6,422) (1,846)
Finance income 7 6,375 5,302
Finance cost 7 (4,445) (3,260)
Share of (loss)/proﬁt of joint ventures (324) 48
(Loss)/proﬁt before tax (4,816) 244
Tax 8 2,652 (1,405)
Loss for the year (2,164) (1,161)
Attributable to:
Equity holders of the parent (2,164) (1,161)
Minority interest 24 – –
(2,164) (1,161)
Basic and diluted loss per Ordinary share 10 (2.0)p (1.1)p
All amounts in the current and prior periods relate to continuing activities.
Consolidated Statement of Recognised Income 
and Expenses
For the year ended 31 December 2007
2007 2006
Note £’000 £’000
Losses on revaluation of available for sale investments 23(a) (3,769) (387)
Pension scheme actuarial gain 5 3,199 3,876
Deferred tax on items taken directly to equity 8 178 (966)
(Loss) for the year (2,164) (1,161)
Total recognised income and expense in the year (2,556) 1,362
Attributable to:
Equity holders of the parent (2,556) 1,362
Minority interest 24 – –
(2,556) 1,362
Consolidated Income Statement Raven Mount plc   Report and Accounts 2007
29
Consolidated Balance Sheet
As at 31 December 2007
2007 2006
Note £’000 £’000
Non current assets
Property 11 4,229 –
Plant and equipment 11 966 363
Investment in jointly controlled entities 12 42 34
Deferred tax assets 20 2,827 552
Retirement beneﬁt surplus 5 5,027 –
13,091 949
Current assets
Inventories 13 83,586 65,105
Trade and other receivables  14 21,177 12,940
Available for sale investments 15 16,335 18,167
Cash and cash equivalents 26 4,392 16,053
Total current assets 125,490 112,265
Total assets 138,581 113,214
Current liabilities
Trade and other payables 16 (11,951) (15,172)
Bank loans and overdrafts 17 (18,330) (7,287)
Short-term provisions 19 (1,593) (1,894)
Total current liabilities (31,874) (24,353)
Non current liabilities
Bank loans 18 (17,968) –
Retirement beneﬁt liability 5 – (1,107)
Deferred tax liabilities 20 (6,767) (7,500)
Total non current liabilities (24,735) (8,607)
Total liabilities (56,609) (32,960)
Net assets 81,972 80,254 
Equity
Called up share capital 21 118 114
Share premium account 23(a) 2,418 2,418
Other reserves 23(b) 99,974 97,048
Retained earnings 23(a) (20,538) (19,326)
Equity attributable to equity holders of the parent 23(a) 81,972 80,254
Minority interests 24 – –
Total equity 81,972 80,254
The ﬁnancial statements were approved by the Board of Directors and authorised for issue on 18 March 2008.
A J G Bilton B S Sandhu
Executive Chairman Chief Executive For the year ended 31 December 2007
2007 2006
Note £’000 £’000
(Loss)/proﬁt before tax 6 (4,816) 244
Finance income (6,375) (5,302)
Finance cost 4,445 3,260
Share of loss/(proﬁt) of joint ventures 324 (48)
Group operating loss (6,422) (1,846)
Adjustments for non-cash items:
Depreciation charge 260 133
Share-based payment charge 671 554
Operating cash ﬂows before movements in working capital (5,491) (1,159)
(Decrease)/increase in provisions (301) 37
(Increase)/decrease in inventories (18,481) 24,264
Increase in receivables (4,841) (3,915)
Increase in payables 2,967 1,639
Pension contributions (1,799) (1,770)
(22,455) 20,255
Net cash ﬂows from operating activities (27,946) 19,096
Investing activities
Interest received 450 1,303
Dividends received 437 242
Purchase of available for sale investments (297) (4,718)
Amounts invested in jointly controlled entities (5,166) (5,772)
Proceeds on disposal of plant and equipment 74 –
Purchase of property (4,265) –
Purchase of plant and equipment (901) (162)
Net cash ﬂows from investing activities (9,668) (9,107)
Financing activities
Interest paid (1,067) (68)
Dividends paid (1,991) (6,821)
Issue of Ordinary shares – 420
New bank loans raised 17,968 –
Repayment of bank loans (7,287) (2,580)
Net cash ﬂows from investing activities 7,623 (9,049)
Net (decrease)/increase in cash and cash equivalents (29,991) 940
Cash and cash equivalents at beginning of year 16,053 15,113
Cash and cash equivalents at end of year 26 (13,938) 16,053
Raven Mount plc   Report and Accounts 2007
30
Consolidated Cash Flow Statement Notes to the Financial Statements
1. Accounting Policies
Basis of preparation
The Group’s ﬁnancial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) issued by the
International Accounting Standards Board as endorsed by the European Union and with those parts of the Companies Act 1985 applicable
to companies preparing their accounts under IFRS for the ﬁrst time. The disclosures required by IFRS 1 concerning the transition from 
UK GAAP to IFRS are given in the Transition to International Financial Reporting Standards table in note 2. The Company has elected to
prepare its parent company ﬁnancial statements in accordance with UK Generally Accepted Accounting Practice (UK GAAP). These are
presented on page 56.
Impact of standards and interpretations in issue but not yet effective
Certain new standards, amendments and interpretations to existing standards have been published that are mandatory for later
accounting periods and which have not been adopted early. These are:
• IFRS 8: Operating segments (effective for accounting periods beginning on or after 1 January 2009). This standard sets out
requirements for the disclosure of information about an entity’s operating segments and replaces IAS 14. As this is a disclosure
standard it will not have any impact on the results or net assets of the Company or the Group.
• IAS 1: Presentation of Financial Statements and IAS 23: Borrowing costs (revised) (effective for accounting periods beginning on 
or after 1 January 2009). The Group is currently assessing the impact of these changes on the ﬁnancial statements.
• IFRIC 11: IFRS 2 Group and treasury share transactions (effective for accounting periods beginning on or after 1 March 2007). 
The Group is currently assessing the impact of this interpretation on the ﬁnancial statements. 
• Revised IFRS 3: Business combinations and complementary amendments to IAS 27 Consolidated and separate ﬁnancial statements
(both effective for accounting periods beginning on or after 1 July 2009).
• IFRIC14: IAS19 ‘The limit on a Deﬁned Beneﬁt Asset, Minimum Funding Requirements and their interaction’. IFRIC14 states when
refunds or reductions in future contributions can be treated as available under IAS19 and how a minimum funding requirement
affects future contributions or may give rise to a liability. This interpretation will apply to the Group from the year commencing 
1 January 2008 and its impact is currently being assessed.
• Amendment to IFRS 2: Share-based payments – vesting conditions and cancellations and Amendment to IAS 32 and IAS 1: Puttable
Financial Instruments and Obligations Arising on Liquidation (effective for accounting periods beginning on or after 1 January 2009).
Amendments to IAS 27: Consolidated and separate ﬁnancial statements (effective for accounting periods beginning on or after 
1 July 2009). The Group is currently assessing the impact of these amendments on the ﬁnancial statements.
The IASB has also issued IFRIC 12 Service concession arrangements and IFRIC 13 Customer loyalty programmes which are not relevant 
to the operations of the Company or the Group.
The principal accounting policies are described below:
Consolidation
The report consolidates the ﬁnancial statements of Raven Mount plc and its subsidiaries drawn up to 31 December 2007. All intra-group
balances, income and expenses and proﬁts and losses resulting from intra-group transactions are eliminated in full. Subsidiaries are fully
consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until 
the date that such control ceases.
Jointly controlled entities
In the Group’s ﬁnancial statements, interests in jointly controlled entities (‘JCE’s’) are accounted for using the equity method of
accounting. The consolidated income statement includes the Group’s share of the JCE’s post-tax results. In the consolidated balance
sheet, the Group’s share of the identiﬁable net assets attributable to its JCE is shown separately.
Proﬁts and losses arising on transactions between the Group and JCE’s are recognised only to the extent of unrelated investors’ interests 
in the entity. The investor’s share in the JCE’s proﬁts and losses resulting from these transactions is eliminated against the assets or
liabilities of the JCE on the transaction.
Under the equity accounting method, the investment in a JCE is initially recognised at cost and the carrying amount is increased or
decreased to recognise the investor’s share of the proﬁt or loss after the date of acquisition. However, if the investor’s share of losses 
of a JCE equals or exceeds its interest in the JCE, the investor discontinues recognising its share of further losses and offsets any losses
against any amounts receivable from the JCE.
Raven Mount plc   Report and Accounts 2007
31 Notes to the Financial Statements continued
1. Accounting Policies continued
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for properties 
and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.
The sale of both properties and land are recognised on legal completion. Fee income derived from the Group’s development and asset
management agreements is stated net of VAT and represents services performed in respect of property management work during 
the period.
Any performance fees received as part of the property fund management work performed by the Group are recognised at the time 
the income is capable of being measured reliably and it is probable that the income will be received or when a contingent qualifying
event is crystallised.
Pensions
Deﬁned beneﬁt scheme surpluses and deﬁcits are measured at:
• the fair value of plan assets at the balance sheet date; less
• plan liabilities calculated using the projected unit method discounted to the present value of the projected accrued beneﬁts.
The fair value of plan assets has been determined by reference to the bid value of assets as required by IAS 19.
Beneﬁt accruals under the Group’s ﬁnal salary pension scheme ceased with effect from 31 December 2005. The scheme’s funds 
are administered by a Trustee and are independent of the Group’s ﬁnances. Contributions are paid to the scheme in accordance with 
the recommendations of independent actuaries to provide retirement beneﬁts based on beneﬁts accrued as at 31 December 2005.
A charge or credit is included in other ﬁnance income representing the difference between the increase in the liabilities from the beneﬁts
being one year closer to payment and a charge or credit is included in other ﬁnance income representing the expected return on 
the scheme assets. The difference between the value of the scheme assets and its liabilities is included in the balance sheet. Deferred tax 
in respect of the difference is recognised separately in the balance sheet. Changes in liabilities resulting from changes in assumptions,
differences between the actual and expected returns on assets and other experience gains and losses are recognised in the statement 
of total recognised income and expenses. Actuarial gains and losses are recognised in full as they arise.
Additionally the Group operates a deﬁned contribution plan for new employees and former members of its ﬁnal salary pension scheme
who are current employees. Contributions to this plan, as well as to personal pension schemes, are charged to the income statement 
in the period in which they are payable.
Dividends
In accordance with IAS 10, interim dividends are recognised when they are paid and ﬁnal dividends are recognised when they are
approved by shareholders at a general meeting.
Dividend income from investments is recognised when the shareholders’ right to receive payment have been legally declared and
deemed payable.
Property, plant and equipment
Freehold land is not depreciated. Depreciation is provided on all other items of property, plant and equipment, to write off the carrying 
value of items over their expected useful economic lives. It is applied at the following rates:
– Plant and equipment 12
1
/2-33%
– Freehold buildings over 50 years
Leased assets
Rentals paid under operating leases are charged to income on a straight-line basis over the period of the relevant lease.
Inventories
Work in progress on property developments is valued at the lower of cost and net realisable value. Costs exclude interest.
Raven Mount plc   Report and Accounts 2007
32 Raven Mount plc   Report and Accounts 2007
33
1. Accounting Policies continued
Taxation
Current taxation
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to
the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by
the balance sheet date.
Deferred tax
Deferred tax is provided using the liability method on temporary differences at the balance sheet date between the tax bases of assets
and liabilities and their carrying amounts for ﬁnancial reporting purposes.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
• where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not 
a business combination and, at the time of the transaction, affects neither the accounting proﬁt nor taxable proﬁt or loss; and
• in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, 
where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences 
will not reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, carry-forward of unused tax credits and unused tax losses, 
to the extent that it is probable that taxable proﬁt will be available against which the deductible temporary differences, and the carry-
forward of unused tax credits and unused tax losses can be utilised except:
• where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability 
in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting proﬁt nor
taxable proﬁt or loss; and
• in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures,
deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable
future and taxable proﬁt will be available against which the temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer
probable that sufﬁcient taxable proﬁt will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred
tax assets are reassessed at each balance sheet date and are recognised to the extent that it has become probable that future taxable
proﬁt will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or 
the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.
Tax relating to items recognised directly in equity is recognised in equity and not in the income statement.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current
tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
Financial liabilities and equity
Instruments issued by the entity are classiﬁed as debt or equity in accordance with IAS 32 ‘Financial instruments: Presentation’.
Principally, this classiﬁcation is based on a consideration of whether the instrument involves a contractual obligation to deliver cash 
or another ﬁnancial asset, in which case the instrument is classiﬁed as a liability. If the instrument does not contain such a contractual
obligation it is classiﬁed as equity. As the company’s Ordinary shares of 0.1p contain no such contractual obligation they have been
classiﬁed as equity.
Instruments that are to be settled through a variable number of the Company’s Ordinary shares are, in accordance with IAS 32, also
classiﬁed as a liability unless the instrument constitutes an equity-settled share-based payment transaction to which IFRS 2 ‘Share-based
Payments’ applies in which case it is classiﬁed as equity. Consequently the Company’s Convertible Ordinary shares of £1 are classiﬁed 
as equity. Notes to the Financial Statements continued
1. Accounting Policies continued
Financial assets
The Group classiﬁes its ﬁnancial assets into one of the following categories, depending on the purpose for which the asset was acquired.
The Group’s accounting policy for each category is as follows:
Loans and receivables: These assets are non-derivative ﬁnancial assets with ﬁxed or detrimental payments that are not quoted in an
active market. They arise principally through the provision of goods and services to customers (trade debtors), but also incorporate other
types of contractual monetary asset. They are initially carried at fair value and subsequently carried at amortised cost.
Available-for-sale: Non-derivative ﬁnancial assets not included in the above categories are classiﬁed as available-for-sale and comprise 
the Group’s investments in entities not qualifying as subsidiaries, associates or jointly controlled entitles. They are carried at fair value
with changes in fair value recognised directly in equity. Where a decline in the fair value of an available-for-sale ﬁnancial asset constitutes
objective evidence of impairment, the full amount of the impairment, including any previous amount charged in equity, is recognised 
in the income statement. The fair value of investments that are actively traded in organised ﬁnancial markets is determined by reference
to quoted market bid prices at the close of business on the balance sheet date. For investments where there is no active market with
external investors, fair value is assessed by using earnings multiples, calculated with reference to comparable entities.
Financial liabilities
The Group classiﬁes its ﬁnancial liabilities (as disclosed above), depending on the purpose for which the asset was acquired. 
The Group’s accounting policy is as follows:
• Trade payables and other short-term monetary liabilities, are initially recognised at fair value and subsequently at amortised cost.
• Bank borrowings, are initially recognised at the amount advanced net of any transaction costs directly attributable to the issue of 
the instrument. Such interest bearing liabilities are subsequently measured at amortised cost using the effective interest rate method,
which ensures that any interest expense over the period to repayment is at a constant rate on the balance of the liability carried 
in the balance sheet. ‘Interest expense’ in this context includes initial transaction costs, as well as any interest payable while the 
liability is outstanding.
The Group has no other classiﬁcation of ﬁnancial liability.
Share based employee remuneration
The Group has applied the requirements of IFRS 2 Share-based Payments. In accordance with the transitional provisions, IFRS 2 has 
been applied to all grants of equity instruments after 7 November 2002 that were unvested as of 1 January 2006.
Where equity settled share options are awarded to employees, the fair value of the options at the date of grant is charged to the
consolidated income statement over the vesting period. 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 vesting conditions are
satisﬁed. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
Option shares cannot usually be exercised until 3 years after grant and are subject to a performance condition that the share price
increase must exceed the RPI plus 3% per annum. This is ﬁrst measured on the third anniversary of the date of grant, thereafter half
yearly based on the prior December or June.
The Group issues equity-settled share-based payments to certain employees. Equity-settled share-based payments are measured at fair
value at the date of grant. The fair value determined at the grant date of the equity-settled, share-based payments is expensed on a
straight-line basis over the vesting period, based on the Group’s estimate of shares that will eventually vest. Fair value is measured by 
use of a Black-Scholes model.
Reserve for own shares
The reserve for own shares represent the cost of shares in Raven Mount plc purchased in the market and will be used to satisfy future
share option exercises.
Raven Mount plc   Report and Accounts 2007
34 Raven Mount plc   Report and Accounts 2007
35
1. Accounting Policies continued
Critical accounting estimates and judgements
The Group makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on
historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
In the future, actual experience may differ from these estimates and assumptions. The estimates and assumptions that have a signiﬁcant
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next ﬁnancial year are discussed below.
Judgements
(a) Useful lives of property, plant and equipment
Property, plant and equipment are amortised or depreciated over their useful lives. Useful lives are based on the management’s estimates
of the period that the assets will generate revenue, which are periodically reviewed for continued appropriateness. Changes to estimates
can result in signiﬁcant variations in the carrying value and amounts charged to the consolidated income statements in speciﬁc periods.
More details including carrying values are included in note 11.
(b) Fair value of ﬁnancial instruments
The Group determines the fair value of ﬁnancial instruments that are not quoted, using valuation techniques. Those techniques are
signiﬁcantly affected by the assumptions used, including discount rates and estimates of future cash ﬂows. In that regard, the derived
fair value estimates cannot always be substantiated by comparison with independent markets and, in many cases, may not be capable 
of being realised immediately.
(c) Inventory
The Group holds inventories stated at the lower of cost and net realisable value. Such inventories include land, work in progress and
completed available for sale units. As residential development in particular is speculative by nature, most inventories are not covered by
forward sale contracts. Furthermore due to the nature of the Group’s activity, and in particular the size and length of the development
cycle, the Group has to allocate site wide development costs between units being built or completed in the current period and those 
for future periods. In doing this it also has to forecast the cost to complete on such developments.
In making such assessments and allocations, there is a degree of inherent estimation uncertainty. The Group has established internal
controls designed to effectively assess and review inventory carrying values and ensure the appropriateness of the estimates made.
(d) Maintenance provision
A provision is made at each year end in respect of housing sales completed in that year of 1.5% of the selling price of each unit sold.
Maintenance costs are then charged to this account. The sufﬁciency of the residual provision is reviewed at the year-end.
(e) Pension assumptions
The costs, assets and liabilities of the deﬁned beneﬁt scheme operated by the Group are determined using methods relying on actuarial
estimates and assumptions. Details of the key assumptions are set out in note 5. The Group takes advice from independent actuaries
relating to the appropriateness of the assumptions. Changes in the assumptions used may have a signiﬁcant effect on the balance sheet.
(f) Share-based payment
The Group has two types of equity-settled share-based remuneration schemes for employees. The fair value of share options is estimated
by using the Black-Scholes valuation model on the date of grant based on certain assumptions. Those assumptions are described in note
22 and include, among others, the dividend growth rate, expected volatility, expected life of the options and number of options
expected to vest.
(g) Legal proceedings
In accordance with IFRS the Group recognises a provision where there is a present obligation from a past event, a transfer of economic
beneﬁts is probable and the amount of costs of the transfer can be estimated reliably. In instances where the criteria are not met, a
contingent liability may be disclosed in the notes to the ﬁnancial statements. Obligations arising in respect of contingent liabilities that
have been disclosed, or those which are not currently recognised or disclosed in the ﬁnancial statements, could have a material effect 
on the Group’s ﬁnancial position. Application of these accounting principles to legal cases requires the Group’s management to make
determinations about various factual and legal matters beyond its control. The Group reviews outstanding legal cases following
developments in the legal proceedings and at each balance sheet date, in order to assess the need for provisions and disclosures in its
ﬁnancial statements. Among the factors considered in making decisions on provisions are the nature of litigation, claim or assessment
that has been brought, the progress of the case (including the progress after the date of the ﬁnancial statements but before those
statements are issued), the options or views of legal advisors, experience on similar cases and any decision of the Group’s management
as to how it will respond to the litigation, claim or assessments. Notes to the Financial Statements continued
2. Transition to International Financing Reporting Standards (‘IFRS’)
These are the Group’s ﬁrst consolidated ﬁnancial statements prepared in accordance with IFRS.
The accounting policies set out in note 1 have been applied in preparing the consolidated ﬁnancial statements including comparative
information for the year ended 31 December 2006 and in preparing the opening IFRS balance sheet at 1 January 2006 (the Group’s 
date of transition).
In preparing its opening IFRS balance sheet and comparative information for the year to 31 December 2006, the Group has adjusted
amounts previously reported in ﬁnancial statements prepared in accordance with UK GAAP . However, the Group has elected to apply 
the following transitional reliefs available under IFRS 1. 
Not to apply IFRS 2 ‘Share-based payments’ to equity instruments granted since the Group’s formation if those equity instruments 
vested before the date of transition to IFRS.
Not to apply IFRS 3 retrospectively to business combinations occurring prior to the date of Group’s transition.
Not to apply IAS 19 ‘Employee beneﬁts’ paragraph 120 A(p) to restate disclosures in respect to the previous periods.
The reconciliation of total equity at 31 December 2005 and 2006 is as follows:
31 December 31 December
2006 2005
£’000 £’000
Loss after tax as previously reported under UK GAAP (1,720)
IFRS adjustments:
Sales and marketing expenditure write off c (145)
Reversal of negative goodwill elimination d (132)
Related deferred tax asset arising on sales and marketing expenditure write off 43
Movement in deferred tax liability on fair value uplift on inventories a 793
Loss after tax as reported under IFRS (1,161)
Equity as previously reported under UK GAAP 87,149 89,316
IFRS adjustments:
Deferred tax arising on fair value uplift of inventories a (6,763) (7,556)
Mark to market of available for sale investments b 2,455 2,842
Related deferred tax liability on mark to market of available for sale investments b (737) (852)
Sales and marketing expenditure write off c (820) (684)
Related deferred tax asset arising on sales and marketing expenditure write off c 246 204
Negative goodwill elimination d – 132
Re-classiﬁcation of convertible shares from creditors to equity 6 6
Minority interest adjustment required by IAS 27 e (1,282) (361)
Total IFRS adjustments (6,895) (6,269)
Equity as reported under IFRS 80,254 83,047
The principal reasons for the adjustments shown in the reconciliations between UK GAAP and IFRS are set out below:
a The recognition of the deferred tax liability on the fair value uplift upon the inventory acquired as a result of the RPH acquisition 
(refer to note 28a) which was not permitted under UK GAAP.
b Under IFRS, investments classiﬁed as available for sale are carried at their fair value and any movements in fair value to be 
accounted through equity. Under UK GAAP, these were carried at the lower of cost and net realisable value.
c Under IAS 2 ‘Inventories’, costs relating to sales and marketing activities on property developments have been written off as 
incurred through cost of sales. The Group’s policy under UK GAAP was to expense the expenditure against the eventual sales 
of those developments.
Raven Mount plc   Report and Accounts 2007
36 Raven Mount plc   Report and Accounts 2007
37
2. Transition to International Financing Reporting Standards (‘IFRS’) continued
d Under IFRS 3 negative goodwill is not recognised on the consolidated balance sheet but is taken as an immediate credit to 
the income statement.
e IAS 27 stipulates that the minority share of retained losses should not be recognised unless there is a binding obligation on the 
minority to cover the deﬁcit.
3. Segmental Analysis
The Group operates in the following main business segments: residential and other property development in the UK and Property 
Fund management.
The Group’s primary format for reporting segment information is business segment.
Residential Property fund
and other management
property of Russia/
development Ukraine
– UK properties Total
2007 2007 2007
£’000 £’000 £’000
Revenue 60,052 8,517 68,569
Segment result (9,365) 2,943 (6,422)
Finance income 5,740 635 6,375
Finance cost (4,445) – (4,445)
Share of joint ventures loss (324) – (324)
(Loss)/proﬁt before tax (8,394) 3,578 (4,816)
Tax income 2,734 (82) 2,652
(Loss)/proﬁt for the year (5,660) 3,496 (2,164)
Other segment items included in the income statement are as follows:
Depreciation 206 54 260
Share-based payment 356 315 671
Residential Property fund
and other management
property of Russia/
development Ukraine
– UK properties Total
2006 2006 2006
£’000 £’000 £’000
Revenue 66,842 4,939 71,781
Segment result (2,054) 208 (1,846)
Finance income 4,916 386 5,302
Finance cost (3,260) – (3,260)
Share of joint ventures proﬁt 48 – 48
Proﬁt/(loss) before tax (350) 594 244
Tax expense (1,405) – (1,405)
(Loss)/proﬁt for the year (1,755) 594 (1,161)
Other segment items included in the income statement are as follows:
Depreciation 128 5 133
Share-based payments 276 278 554 Notes to the Financial Statements continued
3. Segmental Analysis continued
Segmental assets and liabilities at 31 December 2007 and capital expenditure for the year then ended are as follows:
Residential Property fund
and other management
property of Russia/
development Ukraine
– UK properties Total
2007 2007 2007
£’000 £’000 £’000
Total assets 119,823 18,758 138,581
Total liabilities (55,786) (823) (56,609)
64,037 17,935 81,972
Capital expenditure 4,675 491 5,166
Segmental assets and liabilities at 31 December 2006 and capital expenditure for the year then ended are as follows:
Residential Property fund
and other management
property of Russia/
development Ukraine
– UK properties Total
2006 2006 2006
£’000 £’000 £’000
Assets 97,866 15,348 113,214
Liabilities (32,009) (951) (32,960)
65,857 14,397 80,254
Capital expenditure 112 50 162
The geographical split is the same as the segmental split.
4. Employee Information
(a) The average number of persons employed by the Group during the year was 130 (2006: 95). The total number of employees of the
Group at 31 December 2007 was 145 (2006: 103).
2007 2006
£’000 £’000
(b) Group employment costs including Directors:
Gross salaries and wages 6,974 7,486
Employer’s national insurance contributions or foreign equivalents 750 866
Employer’s pension costs 225 229
7,949 8,581
Key management and personnel, as deﬁned under IAS 24 ‘Related Party Disclosures’ have been identiﬁed as the Board of Directors 
as the controls operated by the Group ensure that all key decisions are reserved for the Board.
(c) Directors’ remuneration (including non-executives) was:
Emoluments 1,091 1,645
Pension contributions 165 158
Equity settled share-based payments charge (see note 22) 421 382
Total 1,677 2,185
Gains on exercise of share options – 180
Raven Mount plc   Report and Accounts 2007
38 Raven Mount plc   Report and Accounts 2007
39
4. Employee Information continued
Details of remuneration, pension entitlements and interest in share options for each Director are set out in the Directors’ Remuneration 
on pages 24 to 25. Three Executive Directors (2006: 3) of the Group receive contributions to their own personal pension plans.
5. Employee Beneﬁts
Deﬁned contribution scheme
The Group operates a deﬁned contribution plan based on a stakeholder pension contract and contributes to certain personal pension
schemes. The Group’s contributions to these are charged to the income statement in the period in which they are payable and amounted
to £225,000 (2006: £229,000).
Deﬁned beneﬁt scheme
Beneﬁt accruals under the Group’s ﬁnal salary pension scheme ceased with effect from 31 December 2005. The Group pays contributions
to the fund in order to provide security for existing pensions and the accrued beneﬁts of current and former employees.
Group contributions to the scheme for the period totalled £1.8 million (2006: £3.4 million). Following the latest actuarial valuation as at 
5 April 2005, the Group’s contributions were ﬁxed at £1.8 million per annum (including £0.2 million towards administrative expenses) for
six years from 1 January 2006, after which they were expected to reduce to those required to meet the scheme’s administration expenses.
The next actuarial valuation of the pension scheme is at 5 April 2008.
The net credit to ﬁnance income in the income statement for the scheme was £1.2 million (2006: credit £0.2 million). (See note 7). 
As at 31 December 2007, the scheme had an IAS 19 surplus of £5.0 million (2006: £1.1 million deﬁcit), leading to the inclusion in 
the balance sheet of a net retirement beneﬁt surplus, after deferred tax, of £3.6 million (2006: £0.8 million deﬁcit after deferred tax). 
The total actuarial gain recognised in the statement of recognised income and expense is £2.3 million (2006: gain of £2.8 million) after
deferred tax. These amounts and those set out below have been determined on the advice of qualiﬁed actuaries, who are employees of 
Watson Wyatt Limited, based on the most recent full actuarial valuation at 5 April 2005 updated to 31 December 2007. The mortality
assumptions adopted were in line with standard tables PMA92/PFA92 calendar year 2005 treating members as being one year older 
than their actual ages. An allowance was made for possible future mortality improvements equivalent ﬁnancially to a reduction in the
discount rate of 0.25% per annum. This is broadly equivalent to an increase in life expectancy of one year every ten years. The mortality
assumption will be reviewed following the 2008 actuarial valuation. To give an indication of the sensitivity of the liabilities to the 
mortality assumptions, a one year increase in life expectancy would increase the liabilities by £3.1 million to £65.3 million.
The ﬁnancial assumptions used for IAS 19 purposes were:
2007 2006
% per % per
annum annum
Price inﬂation 3.3 3.1
General salary and wage inﬂation n/a n/a
Pension increases 3.3 3.1
Discount rate 6.0 5.2
The IAS 19 valuation assumes that mortality in retirement will be in the line with standard tables. The tables used are PMA92/PFA92
projected to calendar year 2005, with a + 1 year age rating. An allowance is also made for anticipated future improvements in life
expectancy by reducing the discount rate by 0.25% pa. The allowance made for future improvements in mortality is subjective and 
there are differing views on the rate and extent to which mortality improvements will continue in the future.
The scheme’s assets (excluding money purchase assets) and the expected rates of return are given below. The expected rates of return 
are based on market expectations at the beginning of the year for returns over the entire life of the liabilities.
2007 2007 2006 2006
Expected Market Expected Market
rate of return value rate of return value
% per annum £m % per annum £m
Equities 42.4 39.6
Bonds 20.6 20.3
Property 0.8 1.8
Cash 3.4 3.6
Total 7.6 67.2 7.4 65.3 Notes to the Financial Statements continued
5. Employee Beneﬁts continued
The position of the scheme (excluding money purchase assets and liabilities) can be summarised as follows:
2007 2006
£m £m
Present value of the deﬁned beneﬁt obligation (62.2) (66.4)
Assets at fair value 67.2 65.3
Retirement beneﬁt surplus/(liability) 5.0 (1.1)
Reconciliation of present value of deﬁned beneﬁt obligation for year to 31 December 2007
2007 2006
£m £m
Deﬁned beneﬁt obligation at start of year 66.4 67.9
Interest cost 3.4 3.2
Gain on change of assumptions (4.6) (2.3)
Experience loss 0.5 0.5
Actual beneﬁt payments (3.5) (2.9)
Deﬁned beneﬁt obligation at end of year 62.2 66.4
2007 2006
£m £m
Analysis of the amount charged to other ﬁnance income
Expected return on scheme assets 4.6 3.4
Interest on scheme liabilities (3.4) (3.2)
Net return 1.2 0.2
Net credit for the period 1.2 0.2
Statement of recognised income and expenses (SORIE)
Actuarial gain recognised in SORIE 3.2 3.9
Cumulative actuarial gains recognised at beginning of year 3.9 –
Cumulative actuarial gains recognised at the end of year 7.1 3.9
Reconciliation of fair value of assets for the year 31 December 2007
2007 2006
£m £m
Fair value of Scheme assets at start of year 65.3 59.2
Expected return on Scheme assets 4.6 3.5
Actuarial (loss)/gain on Scheme assets (0.9) 2.1
Company contributions 1.7 3.4
Actual beneﬁt payments (3.5) (2.9)
Fair value of Scheme assets at end of year 67.2 65.3
The Company contributions are in cash except for in 2006 the transfer of £1.6 million of available 
for sale investments into the Scheme.
Return on assets for year to 31 December 2007
2007 2006
£m £m
Expected return on Scheme assets 4.6 3.4
Actuarial (loss)/gain on Scheme assets (0.9) 2.1
Actual return on Scheme assets 3.7 5.5
Raven Mount plc   Report and Accounts 2007
40 5. Employee Beneﬁts continued
2007 2006
£m £m
History of disclosure information
Loss/(gain) on Scheme assets 0.9m 2.1m
% of Scheme assets at end of year 1.3% 3.2%
Experience loss on deﬁned beneﬁt obligations 0.5m 0.5m
% of Scheme liabilities at end of year 0.9% 0.8%
Gain on deﬁned beneﬁt obligation on change of assumptions 4.6m 2.3m
% of Scheme liabilities at end of year 7.4% 3.5%
Net balance sheet position
Deﬁned beneﬁt obligation (62.2) (66.4)
Fair value of assets 67.2 65.3
Funded status 5.0 (1.1)
2007 2006
£m £m
Reconciliation of change in funded status for the year to 31 December 2007
Deﬁned beneﬁt liability at start of year (1.1) (8.7)
Pension income 1.2 0.3
Company contributions 1.7 3.4
Gain recognised in SORIE 3.2 3.9
Deﬁned beneﬁt asset/(liability) 5.0 (1.1)
6. Group Operating Loss
2007 2006
£’000 £’000
Group operating loss is stated after charging:
Depreciation of ﬁxed assets 260 133
Auditors’ remuneration – Fees payable to the Company’s auditor for
the audit of the Group’s annual accounts 40 40
– Fees payable to the Company’s auditor for
the audit of the subsidiary accounts 103 100
– Tax services 221 223
– Audit of the pension scheme 9 9
– Other services 4 5
Total amount paid to auditors 377 377
Operating lease rentals – Land and buildings, cars 636 693
Share-based payments charge 671 554
Raven Mount plc   Report and Accounts 2007
41 Notes to the Financial Statements continued
Raven Mount plc   Report and Accounts 2007
42
7. Finance Income and Expense
2007 2006
£’000 £’000
Group
Finance income
Bank interest receivable 1,049 1,486
Return on amount charged to pension scheme 4,592 3,430
Dividend received on Raven Russia Limited shares 541 242
Dividend received on Oriel Securities Limited shares 193 –
Proﬁt on transfer of Raven Russia shares to Pension Scheme – 144
6,375 5,302
Finance expense
Bank interest payable (1,085) (56)
Interest on deﬁned beneﬁt pension plan obligation (3,360) (3,204)
(4,445) (3,260)
8. Tax Expense
2007 2006
£’000 £’000
(a) Tax recognised in the income statement comprises:
Current tax expense
UK corporation tax charge at the rate of 30% (2006: 30%)
based on the taxable result for the year – –
Over provision in respect of prior years – (114)
– (114)
Overseas tax – Current 82 –
82 (114)
Deferred tax expense (note 20)
Origination and reversal of temporary differences (734) 1,519
Recognition of deferred tax asset on trading losses – current year (1,486) –
– prior year (514) –
Total tax (credit)/expense reported in the income statement (2,652) 1,405
(b) The tax charge for the period is lower than the standard rate of corporation tax 
in the UK (30%) due to:
(Loss)/proﬁt before tax (4,816) 244
Expected tax (credit)/charge at 30% (1,445) 73
Over provision in respect of prior periods – (114)
Dividends not taxable (220) (73)
Items not deductible for tax purposes 51 39
Pension scheme income return not taxable (369) (68)
Inter-group trading proﬁts – 2,319
Utilisation of tax losses (669) (771)
Total tax (credit)/expense reported in the income statement (2,652) 1,405 8. Tax Expense continued
(c) Reconciliation of movement of deferred tax net liabilities
2007 2007 2006 2006
£‘000 £‘000 £‘000 £‘000
Net deferred tax liability at 1 January (6,948) (4,334)
Amounts credited/(charged) to income:
Sales and marketing write-off 239 15
Recognition of trading losses 2,000 (1,270)
Deferred consideration on fair value uplift of inventories 1,404 793
Pension scheme (813) (1,186)
2,830 (1,648)
Amounts (charged)/credited to equity:
Pension scheme actuarial gain (927) (1,082)
Available for sale investments 1,105 116
178 (966)
Net deferred tax liabilities (3,940) (6,948)
Deferred tax assets (note 20) 2,827 552
Deferred tax liabilities (note 20) (6,767) (7,500)
Net deferred tax liabilities (3,940) (6,948)
9. Dividends
2007 2006
£’000 £’000
On Ordinary shares of Raven Mount plc
– Final paid for 2006 1.0p per share (2005: 0.75p) 1,106 798
– Interim paid for 2007 0.8p per share (2005: 0.6p) 885 645
– Special paid for 2007 nil pence per share (2006: 5.0p) – 5,378
1,991 6,821
Proposed for approval at AGM
Final dividend for 2007 1.4 pence (2006: 1.0 pence) 1,568 1,106
10. Loss and Shareholders’ Funds per Ordinary Share
The basic loss per Ordinary share is calculated in accordance with IAS 33 on the loss for the year (before dividends on Ordinary shares) 
of £2,164,000 (2006: loss £1,161,000) and 110.1 million shares (2006: 106.9 million), being the weighted average number of Ordinary
shares in issue excluding those owned by the Employee Share Trust. Since none of the Company’s potential Ordinary shares are dilutive,
there is no difference between the basic and diluted loss per share.
Shareholders’ funds per Ordinary share are 73.2 pence (2006: 74.2 pence). The calculation is based on shareholders’ funds as at the 
year end of £82.0 million (2006: £80.3 million) divided by the number of shares in issue at the year end amounting to 112.0 million 
(2006: 108.1 million). The Directors consider that as a property development group with a signiﬁcant level of inventory held at fair value 
at acquisition (plus subsequent costs), along with available for sale assets held at fair value, shareholders’ funds per share is a meaningful
performance indicator.
Adjusted shareholders’ funds per share are 74.3 pence (2006: 75.0 pence) based on the adjusted shareholders’ funds and adjusted
Ordinary shares for the exercise of all outstanding options and conversion of the convertibles, are shown below.
Raven Mount plc   Report and Accounts 2007
43 Notes to the Financial Statements continued
Raven Mount plc   Report and Accounts 2007
44
10. Loss and Shareholders’ Funds per Ordinary Share continued
2007 2006
£’000 £’000
Shareholders’ funds per balance sheet 81,972 80,254
Deferred consideration payable in Ordinary shares – 5,594
Cash receivable from share options 5,140 6,517
Minority interest removed under IAS 27 2,676 1,282
Adjusted shareholders’ funds 89,788 93,647
’000 ’000
Ordinary shares in issue at 31 December 2007 112,021 108,102
Share issuable under share options 6,425 7,774
Shares issuable on conversion of Convertible Ordinary shares 2,376 5,558
Shares issuable as deferred consideration at 31 December 2007 share price of 83.25 pence
(2006: 161.0 pence) – 3,475
Diluted Ordinary shares as at 31 December 2007 120,822 124,909
In 2007, of the 8,477,797 issued options in the Unapproved and Approved Option Plan 6,425,000 were dilutive as they were options 
at 80 pence and the share price at 31 December 2007 was 83.25 pence.
In 2006 all of the issued options (7,774,522) in the Unapproved and Approved Options were dilutive as they were exercisable options
between 80-105 pence and the share price at 31 December 2006 was 161 pence.
11. Property, Plant and Equipment
Freehold Plant
land and and
buildings equipment Total
£’000 £’000 £’000
Group
Cost
At 1 January 2007 – 1,514 1,514
Additions 4,265 901 5,166
Disposals – (82) (82)
At 31 December 2007 4,265 2,333 6,598
Depreciation
At 1 January 2007 – 1,151 1,151
Charge for the year 36 224 260
Disposals – (8) (8)
At 31 December 2007 36 1,367 1,403
Net book value
At 31 December 2007 4,229 966 5,195
At 31 December 2006 – 363 363 11. Property, Plant and Equipment continued
Freehold Plant
land and and
buildings equipment Total
£’000 £’000 £’000
Group
Cost
At 1 January 2006 – 1,352 1,352
Additions – 162 162
At 31 December 2006 – 1,514 1,514
Depreciation
At 1 January 2006 – 1,018 1,018
Charge for the year – 133 133
At 31 December 2006 – 1,151 1,151
Net book value
At 31 December 2006 – 363 363
At 31 December 2005 – 334 334
12. Investments in Jointly Controlled Entities
2007 2006
£’000 £’000
(a) Group
Cost
At 1 January and 31 December – –
Share of retained proﬁts
At 1 January 34 53
Loss for the year (324) (19)
Off-set against amounts due from jointly controlled entity 332 –
At 31 December 42 34
Net book value
At 31 December 42 34
There are no recognised gains or losses in the trading joint ventures apart from the loss for the year.
The Group has off-set losses recognised in the year against amounts receivable from the jointly controlled entity in accordance with its
accounting policy and IAS 31.
(b) Investments in trading joint ventures
The Group’s investment in trading joint ventures relates to:
(i) Coln Park LLP, a limited liability partnership operating in Great Britain. Coln Park is the 50% joint venture established to develop 
second homes in Gloucestershire.
(ii) Wellington Square Development Company Limited (‘WSDC’), a company incorporated and operating in Great Britain. The 
total issued Ordinary share capital of this company is £100 of which 50% is owned by a subsidiary. WSDC is the joint venture 
company established to develop the retail town centre scheme in Stockton-on-Tees. The scheme was sold during 2004, 
however the company is still in existence.
Raven Mount plc   Report and Accounts 2007
45 Notes to the Financial Statements continued
Raven Mount plc   Report and Accounts 2007
46
12. Investments in Jointly Controlled Entities continued
(b) Investments in trading joint ventures continued
The Group’s share of the assets and liabilities of its trading joint ventures was as follows:
2007 2007 2006 2006
£‘000 £‘000 £‘000 £‘000
Share of assets
Current assets:
Inventories 5,049 2,776
Receivables 184 178
Cash and cash equivalents 231 232
5,464 3,186
Share of liabilities
Current liabilities (5,422) (3,152)
42 34
The balances with joint ventures are shown in note 14.
13. Inventories
2007 2006
£’000 £’000
Land held for development 10,409 8,480
Construction work in progress 73,177 56,625
83,586 65,105
As at 31 December 2007 borrowings of £17,968,000 (2006: £nil) were secured against inventories.
14. Trade and Other Receivables
2007 2006
£’000 £’000
Amounts falling due within one year
Trade receivables 1,511 1,292
Loan to jointly controlled entity 4,724 2,765
Loan to jointly controlled entity partner 5,892 3,007
VAT 2,197 843
Other receivables 3,006 457
Prepayments and accrued income 3,847 4,576
Total 21,177 12,940
All remaining trade and other receivables are non-interest bearing.
Loans to jointly controlled and to the jointly controlled entity partner are interest bearing and repayable on demand. The Directors 
consider that the carrying amount of these assets approximate their fair value.
Further disclosures relating to ﬁnancial instruments are set out in note 18.
15. Available for Sale Investments
2007 2006
£’000 £’000
Listed shares – Traded on AIM 11,165 12,312
Warrants in Raven Russia Limited 452 1,137
Other investment 4,718 4,718
16,335 18,167
Listed shares comprise amounts invested in Raven Russia Limited. 15. Available for Sale Investments continued
The market value of the listed shares at 31 December 2007 was £11.2 million (2006: £12.3 million).
In addition, the Group also holds warrants to subscribe for 7,650,000 Ordinary shares in Raven Russia Limited at £1. The warrants 
are exercisable at any time during the ﬁve year period commencing 29 July 2005, the date of Raven Russia Limited’s admission to AIM. 
The warrants have been valued using a Black-Scholes valuation model.
The other investment represents shares in Oriel Securities Limited, an unlisted independent UK stockbroking and advisory business. 
Fair value is assessed using earnings multiples, calculated with reference to comparable entities. There is no material difference 
between fair values and cost.
16. Trade and Other Payables
2007 2006
£’000 £’000
Deferred income 62 1,257
Trade payables 5,780 3,986
Social security and other taxation 295 357
Accruals 5,814 3,978
Deferred consideration – 5,594
11,951 15,172
The Directors consider that the carrying value of the trade and other payables included in current liabilities approximate to fair value 
as a result of the short maturity period of the amounts held at the year end.
Further disclosures relating to ﬁnancial instruments are set out in note 18.
17. Bank Loans and Overdrafts
2007 2006
£’000 £’000
Current liabilities
Bank loans – 7,287
Overdrafts 18,330 –
18,330 7,287
18. Financial Instruments
(a) The Group is exposed through its operations to the following ﬁnancial risks:
• Credit risk
• Fair value or cash ﬂow interest rate risk
• Other market price risk
• Liquidity risk
• Foreign exchange risk
In common with all other businesses, the Group is exposed to risks that arise from its use of ﬁnancial instruments. This note describes 
the Group’s objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative
information in respect of these risks is presented throughout these ﬁnancial statements.
There have been no substantive changes in the Group’s exposure to ﬁnancial instrument risks, its objectives, policies and processes 
for managing those risk or the methods used to measure them from previous periods unless otherwise stated in this note.
Raven Mount plc   Report and Accounts 2007
47 Notes to the Financial Statements continued
Raven Mount plc   Report and Accounts 2007
48
18. Financial Instruments continued
(a) The Group is exposed through its operations to the following ﬁnancial risks: continued
Principal ﬁnancial instruments
The principal ﬁnancial instruments used the by the Group, from which ﬁnancial instrument risk arises, are as follows:
• Trade and other receivables
• Cash at bank
• Bank overdrafts
• Investments in quoted and unquoted equity securities
• Trade and other payables
• Floating-rate bank loans
General objectives, policies and processes
The Board has overall responsibility for the determination of the Groups risk management objectives and policies and, whilst retaining
ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the effective
implementation of the objectives and policies to the Group’s ﬁnance function. The Board receives monthly reports through which 
it reviews the effectiveness of the processes put in place and the appropriateness of the objectives and policies it sets.
The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Group’s
competitiveness and ﬂexibility. Further details regarding these policies are set out below.
Credit risk
Credit risk arises from cash and cash equivalents and deposits with banks and ﬁnancial institutions. For banks and ﬁnancial institutions,
only independently rated parties with minimum credit rating ‘A’ are accepted.
Credit risk also arises from receivables. The Group reviews the credit-worthiness of those entities it contracts with. Principal receivables 
are loans to Joint Ventures and JV partners, secured on developments which have been independently valued at amounts signiﬁcantly
greater than the loans.
Other receivables are due in respect of fund management, and these are due from Raven Russia Limited which has substantial cash 
and property assets.
The Group does not enter into derivatives to manage credit risk, although in certain isolated cases may take steps to mitigate such risks 
if it is sufﬁciently concentrated.
Market risk
Market risk arises from the Group’s use of interest bearing, tradable and foreign currency ﬁnancial instruments. It is the risk that the 
fair value or future cash ﬂows of a ﬁnancial instrument will ﬂuctuate because of changes in interest rates (interest rate risk), foreign
exchange rates (currency risk) or other market factors (other price risk). 
During 2007 and 2006, the Group’s borrowings at variable rate were denominated in Sterling.
Other market price risk
The Group’s balance sheet is exposed to market price risk as the Group holds some equity investments in other companies (see note 15).
The Directors believe that the exposure to market price risk from these activities is acceptable in the Group’s circumstances.
Liquidity risk
Liquidity risk arises from the Group’s management of working capital and the ﬁnance charges and principal repayments on its debt
instruments. It is the risk that the Group will encounter difﬁculty in meeting its ﬁnancial obligations as they fall due.
The Board receives and monitors rolling 12 month cash ﬂow projections on a monthly basis as well as information regarding cash balances.
Interest rate risk
The Group’s loans are all at ﬂoating rates of interest. The Group has loans in respect of Audley property developments which cover the
expected period of development. If interest rates ﬂuctuate, so will the proﬁts from those developments. The Group also has committed
Group facilities which are renewed on an annual basis, when interest rate risk is considered.
A change of 1% in interest rates would increase the Group’s annual interest charge by £363,000 based on the year end balances. 18. Financial Instruments continued
(a) The Group is exposed through its operations to the following ﬁnancial risks: continued
Foreign exchange risk
The Group’s principal exchange risk is in respect of its property fund management income, which is receivable in Sterling but calculated 
as a percentage of gross assets which are denominated in US dollars.
(b) Borrowing facilities
2007 2006
£’000 £’000
The Group has borrowing facilities as follows:
Available overdraft facilities 40,000 40,000
Bank loans 17,968 7,287
57,968 47,287
Amounts drawn – Overdraft facilities (18,330) –
– Bank loans (17,968) (7,287)
Amounts undrawn 21,670 40,000
Cash at bank 4,392 16,053
Total cash and facilities available to the Group 26,062 56,053
The committed facilities are unsecured.
The bank loan facilities are secured over the assets held by the relevant subsidiaries to which the loan has been provided.
(c) Bank borrowings
Floating Fixed 2007
rate rate Total
£’000 £’000 £’000
Expiry in more than 2 year less than 5 years 17,968 – 17,968
Floating Fixed 2006 
rate rate Total 
£’000 £’000 £’000 
Expiry within 1 and 2 years 7,287 – 7,287
(d) Proﬁle of net ﬁnancial assets/(liabilities)
The net ﬁnancial assets at 31 December 2007 were as follows:
2007 2006
£’000 £’000
Available for sale investments 16,335 18,167
Cash at bank 4,392 16,053
Bank loans and overdrafts (18,330) (7,287)
Bank loans due after more than one year (17,968) –
Trade receivables 1,511 1,292
Loan to jointly controlled entity 4,724 2,765
Loan to jointly controlled entity partner 5,892 3,007
Other receivables 3,006 457
Trade payables (5,780) (3,986)
(6,218) 30,468
The above balances are all denominated in Sterling with the exception of Euro cash at bank balances of £nil (2006: £33,000).
Raven Mount plc   Report and Accounts 2007
49 Raven Mount plc   Report and Accounts 2007
50
18. Financial Instruments continued
(d) Proﬁle of net ﬁnancial assets/(liabilities) continued
The committed facilities are available for 364 days from 1 September 2007 at a rate of 1% over base rate. The weighted average 
interest rate for the period for sterling borrowings was 6.51%.
The Group did not use any ﬁnancial derivatives during the year.
The fair value of the available for sale listed investments held by the Group was £11.2 million (2006: £12.3 million). In the opinion 
of the Directors there is no signiﬁcant difference between the fair values and the book values of the other ﬁnancial assets and liabilities.
19. Short-Term Provisions
Provisions for
Maintenance
£’000
Group
At 1 January 2007 1,894
Charged to proﬁt and loss account 364
Utilised and released in the year (665)
At 31 December 2007 1,593
This housing maintenance provision arises principally from warranties and other liabilities on housing sold. Whilst such warranties extend 
to a period of ten years, payment of these costs are likely to occur within a period of two years. The provision made is the Directors’ best
estimate of the Group’s liability.
20. Deferred Tax Asset and Liabilities
Details of the deferred tax asset amounts charged to the income statement and amounts charged to reserves are as follows:
2007 2006
£’000 £’000
Deferred tax asset relating to:
Trading losses 2,000 –
Retirement beneﬁt liability – 332
Mark to market of available for sale investments 368 –
Sales and marketing write off 459 220
2,827 552
Deferred tax liability relating to:
Fair value uplift on inventories 5,359 6,763
Excess of fair value of investments – 737
Retirement beneﬁt surplus 1,408 –
6,767 7,500
The Group anticipates taxable proﬁts, based on internal forecasts of the next 18 months, will be available against which the unused 
tax losses or unused tax credits can be utilised.
Notes to the Financial Statements continued Raven Mount plc   Report and Accounts 2007
51
21. Called Up Share Capital
2007 2007 2006 2006
No ‘000 £’000 No ‘000 £’000
Authorised
Ordinary shares of 0.1 pence 244,000 244 244,000 244
£1 Convertible Ordinary shares 66 66
250 250
Allotted, called up and fully paid
Ordinary shares of 0.1 pence 112,021 112 108,102 108
£1 Convertible Ordinary shares 66 66
118 114
The £1 Convertible Ordinary shares are convertible at the option of the holders according to a pre-determined formula at any time 
in the ﬁve years from the Company’s admission to AIM, 17 December 2003, or, to the extent not converted by 17 December 2008, 
at the rate of 396 Ordinary shares for each Convertible Ordinary share held at the ﬁfth anniversary of Admission. On the basis of the 
31 December 2007 share price of 83.25 pence (2006: 161 pence), the Convertible Ordinary shares would convert into the minimum
2,376,000 (2006: 5,558,000) Ordinary shares.
The movements in issued Ordinary share capital during the period were as follows:
Ordinary shares
of 0.1pence each
No. ‘000 £’000
At 1 January 2007 108,102 108
Issued during the period 3,919 4
At 31 December 2007 112,021 112
The Ordinary shares issued during the period comprise 2,744,021 issued in April 2007 and 1,175,302 issued in December 2007 
in relation to the remaining deferred consideration payable for the acquisition of RPH. (Refer to note 27a)
In addition to the above, the Company has authorised 50,000 £1 redeemable preference shares, none of which have been allotted. 
If they were to be allotted these shares would be classiﬁed as a liability in accordance with IAS 32.
22. Share Schemes
Share options
In December 2005, the Company adopted an Unapproved share option plan and an Approved Company share option plan which 
provide for the issue of options over Ordinary shares in the Company.
The total number of Ordinary shares over which Option Shares may be granted is limited to 10% of the total number of issued 
Ordinary shares of the Company at any time. The total number of shares under option is 8,477,797 representing 7.6% of the 
issued share capital at the year end.
Unapproved share option plan (Unapproved Plan)
Option Shares under the Unapproved Plan are exercisable in 3 equal parts. For each part, exercise will be on or after the third, fourth 
and ﬁfth anniversaries of the Date of Grant at the earliest and the Performance Condition shall ﬁrst be tested for each one third part 
on these anniversaries. Unexercised options may be reviewed against the Performance Condition in subsequent periods broadly every 
6 months, but always from the Date of Grant. Options lapse if not exercised within 7 years and 3 months from the Date of Grant. 
The Performance Condition states that the share price increase must exceed the RPI plus 3% per annum and exceed the increase in 
the FTSE Small Cap Index for the relevant period. Since the grant of these options, the share price has increased by 8.1%, RPI by 
8.9% and the FTSE small cap by 6.0%.
Option Shares were issued under the Unapproved Plan on 8 December 2005 over 6,665,000 Ordinary shares in the Company at an
exercise price of 80.0 pence, being the average share price for the month of November 2005.
Further option shares were issued under the Unapproved Plan on the 21 March 2007 over 1,005,000 Ordinary shares at an exercise 
price of 155.1 pence, being the average share price for the 5 trading days prior to issue.
All options lapse if they have not been exercised within seven years and three months from the date of grant of the options. Raven Mount plc   Report and Accounts 2007
52
22. Share Schemes continued
Approved Company share option plan (CSOP)
Employees and full-time Directors of the Group have been offered Option shares subject to a maximum value at any one time per
employee of £30,000 (being the Inland Revenue limit for CSOPs). Option Shares cannot be exercised until 3 years after grant and are
subject to a performance condition that the share price increase must exceed the RPI plus 3% per annum. This is ﬁrst measured on 
the third anniversary of the date of grant, thereafter half yearly based on the prior December or June. The options lapse if they are 
not exercised within seven years and three months from the date of grant of the option.
1,223,809 option shares were issued under the CSOP on 28 April 2006 and a further 221,111 Option shares were issued on 21 March
2007. As at 31 December 2007, 397,123 options have lapsed leaving 1,047,797 Option shares in the Company in issue at exercise 
prices between 105 pence and 151.5 pence.
28,571 Option shares under the CSOP were granted to each of the Executive Directors in 2006, in addition to the Unapproved Plan.
2007 2007 2006 2006
Weighted Weighted
average average
exercise exercise
price price
(pence) Number (pence) Number
Outstanding at the beginning of the year 83.62 7,774,522 80.00 7,190,000
Granted during the year 148.34 1,226,111 105.00 1,223,809
Exercised during the year –– 80.00 (525,000)
Lapsed during the year 97.93 (522,836) 105.00 (114,287)
Outstanding at the end of the year 92.93 8,477,797 83.62 7,774,522
As at both 31 December 2007 and 31 December 2006 none of the share options were exercisable. 
The Group uses a calculated Beta to factor in market vesting conditions.
The following information is relevant in the determination of the fair value of options granted during the year under the equity settled
share-based remuneration schemes operated by Raven Mount plc.
2007 2006
Option pricing model used Black-Scholes Black-Scholes
Weighted average share price at grant date (pence) 148.34 105.00
Weighted average exercise price (pence) 148.34 105.00
Weighted average contractual life (days) 1,123 1,096
Equity volatility 60% 60%
Expected dividend growth rate 1.69% 1.69%
Risk-free interest rate 4.5% 4.5%
2007 2006
£’000 £’000
The share-based remuneration expense comprises:
Equity-settled schemes 671 554
The volatility was calculated in accordance with the Group’s calculated Beta based on a statistical analysis of the Company’s share price.
The exercise price of options outstanding at the end of the year ranged between 80p and 155.1p (2006: 80p and 105p) and their
weighted average contractual life was 2.09 years (2006: 2.56 years).
Of the total number of options outstanding at the end of the year, nil (2006: nil) had vested and were exercisable at the end of the year.
The weighted average fair value of each option granted during the year was 148.34p (2006: 105.0p).
The expected life of the options is based on historical data.
Options that were exercised in 2006 were exercised when the Company’s average share price was 114p.
Notes to the Financial Statements continued Raven Mount plc   Report and Accounts 2007
53
22. Share Schemes continued
Convertible Ordinary shares
In addition, A J G Bilton, B S Sandhu and G V Hirsch are interested in 6,000 Convertible Ordinary shares, under an equity settled 
share-based payment arrangement, held by the trustees of the Raven Mount Employee Beneﬁt Trust, a discretionary trust, as potential
beneﬁciaries under the trust. The trust was established on the Admission of Raven Mount plc to AIM, prior to the takeover of Swan 
Hill Group plc and the share options were granted for services rendered in respect of the Group’s admission to AIM. To the extent not
previously converted, each Convertible Ordinary share will convert into 396 Ordinary shares on the ﬁfth anniversary of the Admission 
of Raven Mount to AIM, being 17 December 2008. Based on the Raven Mount share price of 83.25 pence as at 31 December 2007, 
the Convertible Ordinary shares would have converted into the minimum 2,376,000 Ordinary shares.
23a. Reserves
Available
Share Capital Reserve Reverse for sale Proﬁt
Share premium redemption for own acquisition Merger investment and loss
capital account reserve shares reserve reserve reserve account Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Group
At 1 Jan 2006 112 1,998 50 (150) 62,277 31,462 1,990 (14,692) 83,047
Issue of deferred 
consideration shares 2 –––– 1,690 – – 1,692
Share-based
payment credit ––––––– 554 554
Issue of new shares – 420–––––– 420
Dividend payments ––––––– (6,821) (6,821)
Actuarial gains net 
of deferred taxation 
on pension scheme ––––––– 2,794 2,794
Loss for the year ––––––– (1,161) (1,161)
Mark to market
of available for 
sale investments –––––– (387) – (387)
Deferred tax on 
reduction in fair value
of investments –––––– 116 – 116
As at 31 Dec 2006 114 2,418 50 (150) 62,277 33,152 1,719 (19,326) 80,254
As at 1 Jan 2007 114 2,418 50 (150) 62,277 33,152 1,719 (19,326) 80,254
Issue of deferred 
consideration shares 4–––– 5,590 – – 5,594
Share-based
payment credit ––––––– 671 671
Dividend payments ––––––– (1,991) (1,991)
Actuarial gains net 
of deferred taxation 
on pension scheme ––––––– 2,272 2,272
Loss for the year ––––––– (2,164) (2,164)
Mark to market of 
available for 
sale investments –––––– (3,769) – (3,769)
Deferred tax on 
reduction in fair value
of investments –––––– 1,105 – 1,105
At 31 Dec 2007 118 2,418 50 (150) 62,277 38,742 (945) (20,538) 81,972 Raven Mount plc   Report and Accounts 2007
54
23a. Reserves continued
Reserve Description and purpose
Share premium Amounts subscribed for share capital in excess of nominal value.
Capital redemption Amounts transferred from share capital on redemption of preference shares.
Reserve for own shares Group holding in its own shares.
Reverse acquisition reserve Amounts arising on adopting reverse acquisition accounting for the acquisition of Swan Hill Group plc 
by Raven Mount plc.
Merger reserve Amounts arising on the acquisition of Raven Property Holdings plc, value of consideration paid in shares 
in excess of nominal value of shares.
Available for sale 
investments reserve Amounts arising on the mark to market of the available for sale investments less deferred taxation.
23b. Other Reserves
2007 2006
£’000 £’000
Capital redemption reserve 50 50
Reserve for own shares (150) (150)
Reverse acquisition reserve 62,277 62,277
Merger reserve 38,742 33,152
Available for sale investments reserve (945) 1,719
99,974 97,048
24. Minority Interest
Not
Recognised recognised
in the in the
consolidated consolidated
balance balance
sheet sheet
£’000 £’000
Minority interest at 1 January 2007 – (1,282)
Share of loss for the year to 31 December 2007 – (1,894)
Minority interest at 31 December 2007 – (3,176)
IAS 27 stipulates the minority share of retained losses should not be recognised in the balance sheet unless there is a binding obligation 
on the minority to cover the deﬁcit.
25. Commitments
Commitments contracted for at 31 December 2007 but not provided for in these accounts were £nil (2006: £nil).
As at 31 December 2007, the Group has outstanding total commitments for future minimum lease payments under non-cancellable
operating leases which fall due as follows:
Operating leases-lessee
2007 2006
£’000 £’000
Not later than one year 747 765
Later than one year and not later than ﬁve years 2,494 2,807
Later than ﬁve years 810 1,209
4,051 4,781
Notes to the Financial Statements continued Raven Mount plc   Report and Accounts 2007
55
25. Commitments continued
Operating leases-lessor
The minimum rent receivables under non-cancellable operating leases are as follows:
2007 2006
£’000 £’000
Not later than one year 325 337
Later than one year and not later than ﬁve years 1,001 1,179
Later than ﬁve years – 129
1,326 1,645
26. Notes supporting the cash ﬂow statement
Cash and cash equivalents for purposes of the cash ﬂow statement comprises:
2007 2006
£’000 £’000
Cash available on demand 1,387 2,851
Short-term deposits 3,005 13,202
4,392 16,053
Overdrafts (18,330) –
Cash and cash equivalents at 31 December (13,938) 16,053
27. Related party transactions
Raven Mount plc is the parent company and ultimate controlling party of the Group. Transactions between the Company and its
subsidiaries which are related parties have been eliminated on consolidation and are not disclosed in this note.
(a) On 20 December 2004, Raven Mount plc completed the acquisition of Raven Property Holdings plc for an initial consideration of
22,362,500 Ordinary shares and an additional deferred consideration of £22,010,125 in the period until 31 December 2007 subject 
to the satisfaction of certain criteria as per the Acquisition Agreement. In the year to 31 December 2007 an additional £5,594,140 
of deferred consideration was satisﬁed by the issue of 3,919,323 Ordinary shares such that as at 31 December 2007 the maximum
consideration payable has been satisﬁed by the issue of 49,140,536 Ordinary shares.
RPH was the holding company of the residential property assets previously controlled, either directly or indirectly, by Anton Bilton 
and Bim Sandhu who are both Directors of the Company.
(b) During the period, Santon Management Limited, a company controlled by Anton Bilton and Bim Sandhu, rented space from the 
Group and was provided with ofﬁce services, on an arm’s length basis. Total amounts charged to Santon in the period were £60,773
(2006: £50,579). As at the year end £nil was outstanding (2006: £nil).
(c) The Group has a 50% interest in Coln Park LLP which has a loan due to the Group as at 31 December 2007 of £5.5 million 
(2006: £3.0 million). The Group charged Coln Park LLP a management charge of £192,000 (2006: £85,000) during the year, 
and interest of £0.6 million (2006: £0.2 million).
(d) During the year the Group purchased Audley Court Willicombe Park Limited for £4.1 million. The Company was 50% owned 
by Nick Sanderson who is a Director of Raven Audley Court plc. As at 31 December 2007 £nil was owed. Raven Mount plc   Report and Accounts 2007
56
Company Balance Sheet
As at 31 December 2007
2007 2006
Note £’000 £’000
Fixed assets
Fixed asset investments
Investment in subsidiary companies 5 88,746 88,444
88,746 88,444
Current assets
Debtors 6 55,539 32,842
Creditors: Amounts falling due within one year 7 (35,338) (17,715)
Net current assets 20,201 15,127
Total assets less current liabilities 108,947 103,571
Capital and reserves
Called up Ordinary share capital 8 118 114
Share premium account 9 2,418 2,418
Capital redemption reserve 9 50 50
Merger reserve 9 86,567 80,977
Proﬁt and loss account 9 19,794 20,012
Shareholders’ funds 9 108,947 103,571
The ﬁnancial statements were approved by the Board of Directors and authorised for issue on 18 March 2008.
A J G Bilton B S Sandhu
Executive Chairman Chief Executive Raven Mount plc   Report and Accounts 2007
57
1. Company Accounting Policies
Basis of accounting
The ﬁnancial statements have been prepared in accordance with the requirements of the Companies Act 1985 using the historical cost
basis of accounting and in accordance with applicable accounting standards in the United Kingdom.
Accounting policies
The principal accounting policies of the Company are set out below. These accounting policies have been applied consistently between
the current and prior year.
Dividends
In accordance with FRS 21, interim dividends are included in the proﬁt and loss account when they are paid and ﬁnal dividends are
recognised when they are approved by shareholders at a general meeting.
Share-based employee remuneration
When share options are awarded to employees, the fair value of the options at the date of grant is charged to the income statement
over the vesting period. 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. Marketing 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 vesting conditions are satisﬁed. The cumulative
expense is not adjusted for failure to achieve a market vesting condition.
Where the terms and conditions of options are modiﬁed before they vest, the increase in the fair value of the options, measured
immediately before and after the modiﬁcation, is also charged to the income statement over the remaining vesting period.
Where equity instruments are granted to persons other than employees, the income statement is charged with the fair value of goods
and services received.
Deferred tax
Deferred tax is recognised as a liability or asset if transactions have occurred at the balance sheet date that give rise to an obligation 
to pay more tax in the future, or a right to pay less tax in the future. An asset is not recognised to the extent that the transfer of
economic beneﬁts in the future is uncertain. Deferred tax assets and liabilities are not discounted.
Financial liabilities and equity
Financial liabilities and equity are classiﬁed according to the substance of the ﬁnancial instrument’s contracted obligations rather than 
the ﬁnancial instrument’s legal form.
Instruments issued by the entity are classiﬁed as debt or equity in accordance with FRS 25 ‘Financial Instruments: Disclosure and
Presentation’. Principally, this classiﬁcation is based on a consideration of whether the instrument involves a contractual obligation to
deliver cash or another ﬁnancial asset, in which case the instrument is classiﬁed as a liability. If the instrument does not contain such 
a contractual obligation it is classiﬁed as equity. As the Company’s Ordinary shares of 0.1p contain no such contractual obligation 
they have been classiﬁed as equity.
Instruments that are to be settled through a variable number of the Company’s Ordinary shares are, also classiﬁed as a liability unless 
the instrument constitutes an equity-settled share-based payment transaction to which FRS 20 ’Share-based Payment’ applies in which
case it is classiﬁed as equity. Consequently the Company’s Convertible Ordinary shares of £1 are classiﬁed as equity.
Investments
Investments in subsidiary undertakings are stated at cost, provision being made where appropriate to recognise a permanent diminution
in value.
2. Proﬁt after tax
As permitted by Section 230 of the Companies Act 1985 the Company has elected not to present its own proﬁt and loss account for the
year. The proﬁt after tax for the year recognised in the proﬁt and loss account for the Company was £1,102,000 (2006: £2,494,000).
Notes to the Company Financial Statements Raven Mount plc   Report and Accounts 2007
58
3. Employee information
2007 2006
£’000 £’000
Gross salaries and wages 933 1,492
Employer’s national insurance contributions 152 282
Employer’s pension costs 165 156
1,250 1,930
The average and total number of employees of the Company was 6 (2006: 6). These are three of the four Executive Directors (2006: 3)
and the three Non Executive Directors (2006: 3).
Equity settled share-based payment
The grants and related accounting treatment adopted by the Company under FRS 20 ‘Share-based payment’ are identical to that 
adopted by the Group under IFRS 2 ‘Share-based payment’. For details please refer to note 22 of the consolidated ﬁnancial statements.
The charge for the Company was £369,000 (2006: £554,000).
4. Dividends
2007 2006
£’000 £’000
On Ordinary shares of Raven Mount plc
– Final paid for 2006 1.0p per share (2005: 0.75p) 1,106 798
– Interim paid for 2007 0.8p per share (2005: 0.6p) 885 645
– Special paid for 2007 nil pence per share (2006: 5.0p) – 5,378
1,991 6,821
Proposed for approval at AGM
Final dividend for 2007 1.4 pence (2006: 1.0 pence) 1,568 1,106
5. Fixed Asset Investments
Subsidiary
companies
£’000
Cost
At 1 January 2007 88,444
Additions – capital contribution re equity-settled share-based payment charge 302
At 31 December 2007 88,746
The following are the main operating subsidiary companies of Raven Mount plc at 31 December 2007. Those companies marked with 
an asterisk (*) are owned directly by Raven Mount plc and the remainder by subsidiaries. All companies are incorporated and operate 
in Great Britain, and are 100% wholly owned (except where indicated).
Residential and other property
Raven Property Holdings plc* (‘RPH’)
Swan Hill Homes Limited
Swan Hill Swindon Limited
Swan Hill Property Holdings Limited
Swan Hill Developments Limited
Raven Property Group plc*
Raven Brighton Limited
Asset management
Raven Russia Property Advisors Limited (operates partially in Russia)*
Raven Russia Property Management Limited*
Notes to the Company Financial Statements continued Raven Mount plc   Report and Accounts 2007
59
5. Fixed Asset Investments continued
Independent living
Raven Audley Court plc (75% owned) Raven Audley Clevedon Limited (75% owned)
Raven Audley St Elphins Limited (75% owned) Raven Audley Inglewood Limited (75% owned)
Raven Devon Limited
6. Debtors
2007 2006
£’000 £’000
Amounts falling due within one year
Amounts owed by Group companies 55,056 32,379
Other debtors 405 375
Prepayments and accrued income 78 88
Total 55,539 32,842
Amounts owed by Group companies are trading balances that are repayable on demand.
7. Creditors: Amounts Falling Due Within One Year
2007 2006
£’000 £’000
Bank loans and overdrafts 6,723 –
Amount due to Group companies 28,405 11,220
Accruals and other creditors 210 901
Deferred consideration – 5,594
35,338 17,715
Amounts due to Group companies are trading balances that are repayable on demand.
8. Called Up Share Capital
The movements in issued share capital during the year were as follows:
2007 2007 2006 2006
No ‘000 £’000 No ‘000 £’000
Authorised
Ordinary shares of 0.1 pence 244,000 244 244,000 244
£1 Convertible Ordinary shares 66 66
250 250
Allotted, called up and fully paid
Ordinary shares of 0.1 pence 112,021 112 108,102 108
£1 Convertible Ordinary shares 66 66
118 114
Included in share capital are 6,000 £1 Convertible Ordinary shares. The Convertible Ordinary shares carry, in proportion to the number 
of Ordinary shares they convert into, the same rights to dividends, voting and return of capital as the Ordinary shares. They are convertible
at the option of the holders according to a pre-determined formula at any time in the ﬁve years from the Company’s admission to AIM, 
17 December 2003, or, to the extent not converted by 17 December 2008, at the rate of 396 Ordinary shares for each Convertible
Ordinary share held at the ﬁfth anniversary of Admission. On the basis of the 31 December 2007 share price of 83.25 pence, the
Convertible Ordinary shares would convert into the minimum 2,376,000 Ordinary shares. Raven Mount plc   Report and Accounts 2007
60
Notes to the Company Financial Statements continued
8. Called Up Share Capital continued
Ordinary shares
of 0.1pence each
No. ‘000 £’000
Allotted and fully paid
At 1 January 2007 108,102 108
Issued during the year 3,919 4
At 31 December 2007 112,021 112
The Ordinary shares issued during the period comprise 2,744,021 issued in April 2007 and 1,175,302 issued in December 2007 
in relation to the deferred consideration payable for the acquisition of RPH. 
In addition to the above, the Company has authorised 50,000 £1 redeemable preference shares, none of which have been allotted. 
If they were to be allotted these shares would be classiﬁed as a liability in accordance with FRS 25.
9. Reserves
Capital Proﬁt
Share Share redemption Merger and loss
capital premium reserve reserve account Total
£’000 £’000 £’000 £’000 £’000 £’000
Company
At 1 January 2006 112 1,998 50 79,287 23,785 105,232
Issue of deferred
consideration shares 2 – – 1,690 – 1,692
Share-based payment credit –––– 554 554
Issue of new shares – 420––– 420
Dividend payments –––– (6,821) (6,821)
Proﬁt for the year –––– 2,494 2,494
At 31 December 2006 114 2,418 50 80,977 20,012 103,571
At 1 January 2007 114 2,418 50 80,977 20,012 103,571
Issue of deferred
consideration shares 4 – – 5,590 – 5,594
Share-based payment credit –––– 671 671
Dividend payment –––– (1,991) (1,991)
Proﬁt for the year –––– 1,102 1,102
At 31 December 2007 118 2,418 50 86,567 19,794 108,947 RAVEN MOUNT PLC
21 Knightsbridge, London SW1X 7LY
Tel: 020 7235 0422  Fax: 020 7235 0455
www.theravengroup.co.uk
RAVEN PROPERTY GROUP PLC
Swan Court, Waterman’s Business Park, Kingsbury Crescent, Staines, Middlesex TW18 3BA
Tel: 01784 464351  Fax: 01784 462907
RAVEN AUDLEY COURT PLC
Swan Court, Waterman’s Business Park, Kingsbury Crescent, Staines, Middlesex TW18 3BA
Tel: 01784 464351  Fax: 01784 462907
www.audleylife.co.uk
RAVEN RUSSIA PROPERTY MANAGEMENT LIMITED
London
21 Knightsbridge, London SW1X 7LY
Tel: 020 7235 0422  Fax: 020 7235 0455
Russia
6th Floor, 10 Nikolskaya Street, Office Center ‘Sheremetyevsky’, Moscow 103012
Tel: +7 (495) 644 4448  Fax: +7 (495) 644 4449
www.ravenrussia.co.uk RAVEN MOUNT PLC
www.theravengroup.co.uk
Head Ofﬁce
21 Knightsbridge, London SW1X 7LY
Tel: 020 7235 0422  Fax: 020 7235 0455
Registered Ofﬁce
Swan Court, Waterman’s Business Park, Kingsbury Crescent, Staines, Middlesex TW18 3BA
Tel: 01784 464351  Fax: 01784 462907