FRONTIER DEVELOPMENTS PLC
ANNUAL REPORT AND ACCOUNTS 2014
FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
OVERVIEW
01 Highlights
02 Our business
04 Chairman’s statement
STRATEGIC REPORT 
05  Chief Executive’s introduction 
to the strategic report
06 How we operate
07 Our strategy
07 Key performance indicators
08 Business review
12 Principal risks and uncertainties
CORPORATE GOVERNANCE
14 Directors’ biographies
15 Corporate directory
16 Report of the Directors
18 Corporate governance report
20 Remuneration report
FINANCIAL STATEMENTS
22 Independent auditor’s report
23  Consolidated income statement
23  Consol idated statement 
of comprehensive income
24  Consol idated statement 
of financial position
25  Compan y statement 
of financial position
26 Consolidated statement of cashflows
27 Company statement of cashflows
28  Consolidated statement of changes 
in equity
29  Company statement of changes 
in equity
30 Notes to the financial statements
57 Notice of meeting
59 Explanatory notes
60 Advisors and company information
FRONTIER IS LEADING 
THE GAMES INDUSTRY 
IN ITS TRANSITION TO 
THE WORLD’S PREMIERE 
FORM OF ENTERTAINMENT
We have a proven track record of progressive development 
in video games spanning several decades of rapid technological 
change. Our projects cross a wide variety of genres and platforms 
and are linked by an underlying drive for innovation, timely 
delivery and above all, quality. OVERVIEW
ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
01
2012
1.7
2012
8.6
3.2
HIGHLIGHTS
OPERATIONAL HIGHLIGHTS
• We successfully raised £4.7 million 
to assist the funding of our transition 
plan from our IPO and pre-IPO activity 
in the year, bringing the total raised to 
£5.8 million before associated costs 
since May 2013. 
• In anticipation of improved returns beginning 
in the subsequent financial year we began 
a transition towards increasing our 
proportion of self-published revenue by 
investing £4.1 million in the development 
and promotion of Elite: Dangerous and 
associated COBRA technology, which 
caused an expected and temporary 
operating loss of £1 .7 million. 
• Cash raised from self-published games 
and pre-orders of Elite: Dangerous 
represented 13% of cash received 
from revenue. Deferred income stood 
at £2.5 million at the year end 
(2013: £1.3 million).
• The proportion of non-publisher work 
recognised increased to 19% from 6%. 
• We diversified our publisher revenue 
by starting two contracts for a new 
global publishing partner in the year, 
each of which were based on original 
IP created by Frontier.
UNDERLYING REVENUE* 
(£m)
£9.2m
 23.3%
OPERATING RESULT 
(£m)
£(1.7)m
 270.0%
ADJUSTED (LPS)/EPS** 
(p)
(3.0)p
 141 .0%
ADJUSTED EBITDA*
(£m)
£0.9m
 75.0%
GROSS CASH BALANCES
(£m)
£8.6m
 19.4%
DEFERRED INCOME
(£m)
£2.5m
 92.3%
Find out more online  
at www.frontier.co.uk
12.0
2013 2012
9.2
2014
2014
10.1
2012
1.1
(1.7)
1.4
2013 2014 2012
3.6
2013 2012
7.3
(3.0)
5.8
2013 2014 2012
7.2
2013
2014
0.9
2.5
2014
1.3
2013
0.6
Read more in our  
Strategic Report  
on pages 5 to 13
*  See page 10 for reconciliation to 
reported revenue and operating 
result on income statement 
* *   S e e n o t e 2 6 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
02
OVERVIEW
OUR BUSINESS
WE PRODUCE HIGH QUALITY , INNOVATIVE 
INTERACTIVE VIDEO GAMES FOR BOTH 
OURSEL VES AND MAJOR GLOBAL PUBLISHERS 
USING OUR IN-HOUSE COBRA TECHNOLOGY .
All of our games are developed using our COBRA proprietary 
cross-platform technology along with industry standard 
software packages, allowing code and resources developed 
on PC to be compiled and run on all leading gaming platforms 
whilst offering the ability to take advantage of each platform’s 
unique capabilities.
245
Number of staff (up 8%)
20+
Established for over 
20 years in the video 
games industry
OUR GAMES
We have a reputation for developing 
high quality, innovative titles in a variety 
of game genres for a variety of platforms. 
We also have consistently excelled at 
creating compelling experiences using 
new technology, whether it be LostWinds 
and Kinectimals for the motion control 
of Wii and Kinect (and, in the case 
of LostWinds, touch screen devices), 
Zoo Tycoon for Xbox One, or now virtual 
reality, 3D and ultra high resolution 
displays with Elite: Dangerous. 
55+
games developed using 
COBRA technology
OUR TECHNOLOGY PLATFORM
COBRA is our proprietary game development technology platform and 
has undergone continual development since 1988. It allows us to deliver 
industry-leading gameplay innovations and take advantage of efficient 
multi-platform development. 
COBRA also has a sophisticated framework that enables rapid development 
of powerful tools. These tools offer the ability for all those on the development 
team including artists, animators, sound designers, musicians, modellers 
and producers to view, tweak and review changes to the resources of all 
types in-game on the target device, in a live game session that is running 
on that platform, without the intervention of a programmer. Such iteration 
is one of the keys to developing high quality games. 
Most recently, we have added significant online capability to COBRA. 
This facilitates extensive analytic features such as play through tracking, 
sophisticated A-B tests, player segmentation and friends lists as well as 
the usual leaderboard and achievement functionality, and is based on 
commodity cloud-based servers. OVERVIEW
ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
03
INCUBATING NEW IP
We have a well-established process 
for incubating new game IP that has 
already served us very well by creating 
a successful franchise with 8 million 
customers (LostWinds) which was awarded 
‘Best New IP’ at the 2008 Develop Industry 
Excellence awards; enabling two significant 
as-yet-unannounced projects that are 
currently being developed in conjunction 
with a major global publishing partner; 
and contributing to several other 
projects over the years. 
This process allows anyone in the 
Company to propose a new game idea, 
have it peer reviewed and ultimately take 
part in the development team should it 
proceed to production.
We already have a strong fund of ideas, 
and we expect to be able to use some of 
the best of these and new ideas in future 
to continue to generate compelling new 
IP releases for the Company. We find that 
the fact of such an incubation process 
helps to maximise people’s engagement 
with the Company’s projects.
INVESTED
£4.1 million in Elite: Dangerous 
and associated COBRA technology 
IMPROVED
Balance of revenue mix: self-published 
titles represent 13% of cash received 
(up from 8%)
INCREASED 
The number of global publishing 
partners we work with
Read more about our evolution in the 
Strategic Report starting on page 5
OUR EVOLUTION
With a talented team of developers 
and experienced managers we 
have successfully navigated 
three exciting decades of rapidly 
changing technology environment 
for mass-market gaming platforms.
We are now transitioning from being 
primarily a developer of video games for 
major external publishers into a business 
that leverages its proven skills via an 
increasing proportion of self-published 
projects alongside those published 
by major publishers and the further 
development and exploitation of its 
proprietary enabling technology.
To facilitate this evolution we are 
investing in our own games titles and 
building out key elements of a digital 
publishing organisation such as 
marketing and e-commerce.
OUR GROWING PUBLISHING 
CAPABILITY
To maximise our returns from 
self-publishing Elite: Dangerous 
and future titles we are growing an 
efficient digital publishing capability.
We are building a team to manage 
e-commerce, web development, 
event management, customer support, 
PR, community management and 
worldwide promotion.
Adding an effective publishing 
capability to our world-class game 
development organisation will allow 
Frontier to successfully promote its 
products to consumers in the global 
digital marketplace. FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
04
OVERVIEW
CHAIRMAN’S STATEMENT
It has been an important year for Frontier, as we have successfully 
started to execute our transition from primarily being a world-
class developer of video games for major external publishers 
into a business with an increased focus both on self-published 
projects and ongoing development and exploitation of our 
proprietary technology platform, COBRA. We have made good 
progress in the transition of Frontier, evidenced by the high 
levels of investment we have made in both Elite: Dangerous 
and also our COBRA technology platform. While carrying this 
out, we have continued to work with many of our valued 
customers for whom we create games. Two of the games we 
are now in the process of building for a new global publisher 
have come from our internally run ‘game of the week’ 
programme where any member of staff with a good game 
idea can come forward and show it. I would like to take this 
opportunity to thank all our hardworking people who have 
contributed their creativity, effort and productivity to our business. 
At the start of the financial year we floated on AIM, raising 
£4.0 million. This was preceded by a £2.8 million pre-IPO 
fundraising commenced in May 2013, which combined 
provides us with the financial means to complete the transition 
of Frontier and capitalise on the exciting growth opportunities 
ahead. David Braben sold a block of shares which were 
bought by both new institutions and institutional shareholders. 
Subsequently we acquired David’s 10% rights to Elite: Dangerous 
owned by a partnership controlled by David Braben via a share 
exchange. We are very appreciative of the support from all our 
shareholders as we continue the transition of Frontier, confident 
it will generate long-term sustainable value.
In the year ending 31 May 2015 we are looking forward to 
the delivery of three games developed for blue-chip publishers. 
We will also launch the PC version of Elite: Dangerous during 
the fourth quarter of calendar year 2014. The development 
of the game has been materially helped by the feedback and 
reactions of our enthusiastic, knowledgeable and critical Alpha, 
premium Beta and Beta backers. When I wrote last year’s 
statement we had 35,138 backers. As at the end of August 
that figure has risen to approximately 100,000 partaking in 
Elite: Dangerous’ development. I take this opportunity to 
thank all our backers.
In future years, starting with 2015, we will see the harvest 
of the seeds we have sown. Frontier is much more than just 
a developer of a well known space game franchise. We will 
continue to very selectively develop games for globally significant 
third parties – particularly if the ideas have been home grown. 
We have a number of games we are considering for future 
franchises that build on our Company’s renowned expertise. 
Finally we are continuing and will continue to invest in our 
technology platform, COBRA.
All these activities are made possible by the various stakeholders 
who work for and with Frontier. I end by thanking them again 
for their skill, aptitude and endeavour.
David Gammon
Chairman
3 September 2014
“ We are making good progress 
in our transition into a business 
which develops and licenses 
technology to support games 
for major external publishers, 
other developers and our own 
self-published games. ” ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
05
STRATEGIC REPORT
CHIEF EXECUTIVE’S INTRODUCTION 
TO THE STRATEGIC REPORT
Our investment programme in self-published titles and associated 
technology will benefit and facilitate better and more cost-effective 
results for our games. The high graphical quality and very efficient 
development we achieved with Zoo Tycoon and the high quality 
of and positive early response to Elite: Dangerous are both 
great demonstrations of this.
Elite: Dangerous will be sold directly to customers through our 
own e-commerce platform and through third parties. Indeed the 
Alpha, Premium Beta and Beta have already been made through 
this channel, as is various supporting merchandise for this 
game. At the end of August we had received approximately 
£6 million from our backers.
We are in a transitional period and we have so far not issued 
financial guidance on the business. Revenues from publishers 
are generally paid during development, whereas with self-funded 
titles, even though the expected total revenue is greater, it 
generally does not come until close to or after the release of 
the title. Taking the novel approach of going for crowd-funding 
and then paid Alpha and Beta phases has reduced this gap, but 
inevitably has resulted in a dip in revenue during the financial year 
we are reporting. The exact timing of this income will critically 
affect the revenue that falls into each accounting period, hence 
we feel the lack of guidance is reasonable.
As we continue to build up the size and number of franchises 
we would expect this critical dependence on the timing to 
become less of an issue and put us in a position to reduce 
the range of possible outcomes.
We started the current financial year as we expected and are 
now executing the transition of our business to its next stage. 
Overall, despite the expected reduction in headline revenue 
and EBITDA over the transition, I believe that the continued 
delivery of our plan will result in much greater opportunity 
and returns, which we are already beginning to see since 
the end of this financial year.
David Braben O.B.E.
Founder and CEO
3 September 2014
“ We started the current 
financial year as we expected 
and are now executing the 
transition of our business 
to its next stage. I believe 
that the continued delivery of 
our plan will result in greater 
opportunity and returns. ” FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
06
STRATEGIC REPORT
HOW WE OPERATE
FRONTIER W AS INCORPORATED IN JANUARY 1994 – 
OUR REPUTATION FOR INNOV ATION AND QUALITY IN 
THE RAPIDL Y CHANGING VIDEO GAME INDUSTRY HAS 
BEEN EARNED AND SUSTAINED FOR OVER 20 YEARS.
OUR STRENGTHS
Industry-leading multi-platform 
development technology 
Proprietary COBRA technology 
powers innovative, efficient, 
cross-platform software 
development spanning personal 
computers, tablets, smartphone 
and video game consoles and a 
wide variety of game genres.
Highly experienced and 
respected management  
The Group’s management team, led 
by David Braben, has successfully 
implemented its technology strategy 
and delivered an industry-leading 
games development capability which 
has led to the current opportunity.
Blue-chip international client base  
The Group has established relationships with the key industry players, 
e.g. Microsoft, Nintendo, Apple, Amazon and Sony.
TECHNOLOGY
Frontier’s most valuable resources are the skills, motivation 
and teamwork of our people. 
We place a great emphasis on a meritocratic environment with good career 
progression. As at 31 August 2014 the Group had 270 employees; 90% were 
in development roles, 6% in project support and 4% in administration support.
Significant IP portfolio 
The Group’s IP catalogue includes 
valuable properties including the 
exclusive rights to create sequels 
in the Elite franchise and distribution 
rights for Roller Coaster Tycoon 3.
Proven track record 
Frontier has a track record of 
successfully exploiting its software 
technology in games over a period 
spanning three decades.
MANAGEMENT
RELATIONSHIPS
PEOPLE ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
07
STRATEGIC REPORT
OUR STRATEGY KEY PERFORMANCE 
INDICATORS
We are leveraging our resources and strengths – 
including our skills as game creators, our game creation 
technology and our reputation and relationships – to 
increase the proportion of self-published revenue 
and deliver innovative, high quality games to a wide 
audience via our own and others’ distribution channels. 
This is being achieved through talented people and 
exceptional teamwork, and will allow us to retain 
and attract top talent in all areas of the Company.
By delivering innovative, high quality games to 
a wide audience we will maximise their contribution 
to our finances and increase shareholder value.
We strive to make games that will 
put Frontier and the games industry 
itself at the forefront of the world 
entertainment industry.
MEASURE OF GROWTH: 
ADJUSTED (UNDERLYING) 
REVENUE*
(£’000)
12,046
10,124
9,192
DIVERSIFYING REVENUE STREAMS
% of revenue by segment 2014 2013 2012
Publishing 81% 94% 95%
Self-published 5% 4% 2%
Royalties and other income 14% 2% 3%
INVESTMENT IN TECHNOLOGY
(£’000)
161
2012
190
2013
301
2014
2014
MEASURE OF PROFITABILITY: 
ADJUSTED EBITDA*
(£’000)
3,235
2012
3,624
2013 2014
872
INVESTMENT IN 
SELF-PUBLISHING
(£’000)
376
2013
933
2014 2012
202
*  See page 10 for reconciliation to income statement
2013 2012 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
08
STRATEGIC REPORT
reliably, as otherwise the game would not be compelling. 
It also included support for Oculus Rift – a prototype virtual reality 
headset display system made by a new crowd-funded company 
that was subsequently purchased by Facebook for $2 billion. 
‘Alpha 1’ also supported stereoscopic 3D TVs and the TrackIR 
head-tracking system.
The ‘Alpha 2’ phase added a test version of online multi-player 
play. This introduced and proved significant new code systems 
both on the game client and server using a novel hybrid server-based 
peer to peer system, now supported by COBRA. Elite: Dangerous 
was already known to work well on a local area network (LAN) 
in office conditions, but having such a multi-player system 
operate successfully in the non-optimal ‘real-world’ conditions 
of the global internet with network quality and performance 
distinctly variable across different players’ machines and 
different countries was a significantly greater achievement.
The ‘Alpha 3’ phase introduced an embryonic true ‘game loop’ 
to the game including docking in a star port, a second playable 
ship to buy with in-game money and a choice of weapons and 
other systems with which to outfit the ships. This meant that 
players could use in-game money their missions earned them 
to upgrade their ships.
The ‘Alpha 4’ phase introduced three further major pillars 
of the game: trading, travel and a simulation of the 400 billion star 
systems of the Milky Way galaxy. Trading provides an online 
server-based simulation of the economies of a number of star 
systems. Players are faced with a commodity market and try 
to buy a cargo-hold full of goods at a favourable price in one 
system and haul it safely to another system in anticipation of 
selling at a profit. The Elite: Dangerous trading system implements 
a dynamic model of the economies of many different star systems 
and allows each player trade to influence the price of the traded 
commodity using supply and demand rules – in this way 
every trade influences the experience of every other player. 
Two faster-than-light travel mechanics, super-cruise for travel 
within a star system and hyperspace travel between systems, 
were also given their debut. Travel was restricted to five star 
systems, but Alpha 4 contained an accurate simulation of the 
whole Milky Way galaxy that is built from observed astronomical 
data of over 150,000 star systems and procedural generation 
of the rest of the galaxy, which will eventually be opened up to 
players for travel too.
Each ‘Alpha’ release was well received, with commentators 
remarking on the unusually high quality of each release for 
an early access product, and the major step forward taken by 
each. Elite: Dangerous is also well-positioned with advanced 
consumer technologies such as ultra high definition/4K and 
virtual reality displays. We have continued to actively engage 
with our player community to a very high degree since the end 
of the ‘Alpha’ – in particular the super-cruise feature of the game 
was defined with substantial valuable assistance from the 
community. Such close dialogue and engagement will 
continue to the initial launch of the game and beyond.
Further COBRA technology developments
We completed the adaption of our COBRA software technology 
to work with Nintendo’s WiiU and Google’s Android smartphone 
and tablet OS, which continues to extend our coverage of the 
major gaming devices. Coaster Crazy was the game used to drive 
the port, and this game was subsequently released on Nintendo’s 
WiiU and Amazon’s Kindle tablets (which run an Android variant 
called FireOS) under the name Coaster Crazy Deluxe. This new 
Deluxe variant was also released on Apple’s iOS.
This was a noteworthy achievement as Coaster Crazy makes 
heavy use of COBRA’s own physics system, and delivering the 
required high mathematical precision in a consistent manner is 
a significant undertaking on such different processing devices. 
Each of the three versions of the game also used the same 
COBRA server system running on our commodity servers. 
This enabled players from the Nintendo, Amazon (Android) 
and Apple ecosystems to share data between players 
within the same game, providing another proof point 
of the cross-ecosystem abilities of COBRA.
We also extended COBRA’s networking capabilities to support the 
Microsoft Xbox One Zoo Tycoon project, allowing co-operative 
play where one player can edit a zoo, even while another player’s 
game character is standing in the zoo, watching it happen.
Elite: Dangerous
Alpha process
Development of the self-published Elite: Dangerous title continued 
during the year, which included the successful start and completion 
of the ‘Alpha’ section of the process. The process was designed 
to front-load the key development risks in order to minimise the 
overall risk on the project. Hence ‘Alpha’ was split into four phases, 
each one addressing an important development risk:
The ‘Alpha 1’ phase covered the key requirement of  
moment-to-moment gameplay fun, by providing a single-player 
combat test – whereby the player flew missions against computer 
controlled/simulated opponents – which used several novel 
mechanics including heat-based gameplay. It was vital that this 
‘moment-to-moment’ gameplay was satisfying and worked 
BUSINESS REVIEW
“ The board believes the 
Group to be well placed to 
emerge from its transition 
period as a stronger and 
better balanced business. ” ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
09
STRATEGIC REPORT
Premium Beta starts
The Alpha phase ended on 30 May 2014, with the release of 
Premium Beta 1. The Alpha access price was £200 per player, 
Premium Beta £100 per player. Premium Beta 1 welcomed 
around 10,000 more players to the game, drawn from those 
who had backed at the appropriate level in the crowd-funding 
campaign and those who subsequently purchased early access, 
thus providing a further significant test of our network and 
server code.
Tie-in novels announced with Gollancz
We also announced a three-novel tie-in deal with the well known 
book publisher Gollancz (an imprint of the Orion Publishing 
Company) set in the world of Elite: Dangerous. Frontier received 
crowd-sourced funding for Elite: Dangerous via a successful 
campaign on the Kickstarter website, and Gollancz contributed 
three of the 22 book-related pledges, for over £13,000, to secure 
the rights to publish the three related books. All authors 
collaborated closely with Frontier to ensure continuity and 
reflect the evolving game world, which in turn aided the 
development of aspects of the game’s fiction.
Elite sequel rights
On 6 May 2014 we acquired the assets of Professional Practice 
Automation LLP (PPA), a limited liability partnership in which 
David Braben is a controlling member, for £5.15 million through 
the allotment and issue to PPA, credited as fully paid, of 
2,001,573 new ordinary 0.5 pence shares. The assets included 
the remaining franchise rights in respect of the Elite video 
game franchise. David Braben assigned these rights to the 
Company in June 2008 in return for a royalty based on Frontier’s 
profits from the Elite video game franchise, the benefit of which 
was held by PPA.
Key industry partnerships
Zoo T ycoon
We continued our close working relationship with Microsoft by 
delivering an Xbox One launch title based on Microsoft’s popular 
Zoo Tycoon franchise. This gave us early access to new console 
generation 64-bit processing hardware, and once again proved 
the benefits of our proprietary multi-platform COBRA technology, 
which facilitated a very efficient development and simultaneous 
delivery of both an Xbox One and an Xbox 360 version.
Contract extension
We also signed an agreement to undertake additional work 
under an existing development agreement with Microsoft.
The contract amendment has a value of US$1.75 million, 
bringing the total contract value to US$5.67 million. 
The additional amount will be earned and recognised 
over development milestones spanning the financial years 
ending 31 May 2014 and 31 May 2015. In the year to 
31 May 2014 US$2.1 million of revenue was recognised.
T wo contracts with a major new publisher partner
We also signed two new development agreements with a 
major new global publishing partner. Both games are as yet 
unannounced and are original new concepts generated through 
our company-wide ‘game of the week’ incubation programme.
Under the contracts, Frontier will deliver two exclusive original 
games using its proprietary COBRA technology which will 
drive support for the partner’s own hardware and technology 
ecosystem. The contracts have a combined value of £3.75 million, 
which will be earned and recognised over development milestones 
spanning the financial years ending 31 May 2014 and 31 May 2015. 
In the year to 31 May 2014 £1.8 million of revenue was recognised.
This new relationship further diversifies our revenue streams.
Rights from Atari
We announced a new relationship with Atari, whereby our 
e-commerce strategy is accelerated. We now have non-exclusive 
rights to distribute Atari games, as well as the rights to publish 
our RollerCoaster Tycoon 3 game on new platforms. 
Management and staff
Over the last 16 months we have added over 50 staff to our 
organisation at all levels. We have focused on building capacity 
in server/online development, marketing and publishing as well 
as game development. We work closely with a number of 
universities both in the UK and Canada including the offering of 
intern positions and project mentoring for second-year students.
Outlook
The Board believes the Group to be well placed to emerge from 
its transition period as a stronger and better-balanced business. 
We are planning to launch Elite: Dangerous in the fourth calendar 
quarter of 2014. The current feedback to the game is such that 
we expect to continue with a planned development roadmap for 
further expansions to incrementally add major new features 
such as landing on planets and player-character based gameplay 
within and outside spaceships.
We will also start development on other projects to further 
build our revenue pipeline that make full use of our established 
expertise and pool of IP.
Deliveries of our contractual milestones to external publishers 
continue to be met. 
T rading results
In the financial year ended 31 May 2014, Frontier Developments 
was undergoing a planned transitional period during which we only 
saw a 24% decline in underlying revenue to £9.2 million, adjusted 
EBITDA fell from £3.6 million to £0.9 million, we incurred 
an operating loss of £1.7 million versus an operating profit in 
the prior year of £1.1 million, and adjusted basic loss per share 
of 3.0 pence was set against adjusted earnings per share 
of 7.3 pence.
Group trading performance
The Group entered a planned transitional investment phase after 
its IPO to develop and launch Elite: Dangerous (expected Q4 
calendar 2014), its first major large budget self-published title, 
and associated technology development. FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
10
STRATEGIC REPORT
Revenue 
Moving resources to Elite: Dangerous self-published work 
in progress had consequence of exchanging early revenue 
from publisher work for expected revenue from future sales, 
as a result there was a 24% reduction in underlying revenue 
after excluding subcontract costs recharged to customers 
at nil margin, reconciled as follows:
Underlying revenue £’000 2014 2013 % 2012
Headline revenue 9,541 12,072 (21%) 14,157
Subcontract 
pass through (349) (26) 1,242% (4,033)
Underlying revenue 9,192 12,046 (24%) 10,124
We continued to recognise an element of revenue for 
Elite: Dangerous on release of ‘Alpha’ and ‘Beta’ phases from 
the early backers, and to receive new revenue by additional 
players paying to enter in the year. Our earlier LostWinds 
and Coaster Crazy iOS titles continued to sell. We released 
Coaster Crazy Deluxe versions on a number of platforms after 
using it as a test vehicle for COBRA platform coverage expansion 
and cross-platform data sharing via servers running COBRA code.
Publishing revenue was lower. We worked on five projects of 
varying sizes for our two key clients, and two of these games 
were released in the financial year 2013–14. 
Royalty income was positively impacted by Atari Interactive Inc. 
(Atari) coming out of Chapter 11 in December 2013 and thus 
releasing an element of pre-petition funds (to January 2013) 
not recorded in the prior year. These income streams from 
Atari originate from our Roller Coaster Tycoon 3 development and 
IP licence agreement. We received £0.6 million of royalty income 
from sales to 31 May 2014 of Kinect Disneyland Adventures post 
year end. This was our first royalty receipt from this title.
Revenue mix £’000 2014 2013 % 2012
Publishing 7,707 11,355 (32%) 13,499
Self-published 465 511 (9%) 323
Royalties 1,366 203 573% 335
Other 3 3 — —
 9,541 12,072 (21%) 14,157
Gross margin and contribution
The overall gross margin slipped from 31% to 17%. This reduction 
stemmed from lower margins in the publication business and 
negative margins in the self-published business impacted by an 
impairment charge offsetting gains from higher royalty income, 
where gross margins received are in excess of 65%. Frontier took 
an impairment charge of £0.3 million on the Coaster Crazy 
franchise. The Group gained valuable experience and proved 
its technology with the game, but the monetisation level of the 
free-to-play game has not been as quick and successful as had 
been expected and subsequent versions were released later 
than planned. Additionally marketing spend is expensed within 
cost of sales – our publication and marketing function was 
established in the financial year 2014.
Profitability and adjusted EBITDA
Frontier is in a state of planned transition, following its listing 
of the Group’s shares on AIM in July 2013. As a consequence 
the Board monitors performance on an adjusted EBITDA basis. 
The adjusting items were primarily share-based compensation, 
intangible asset impairment and funding costs associated 
with the IPO. It has also been decided to include fair value 
adjustments as a separate item.
As expected in our transitional period we incurred a significant 
temporary shift in profitability. Operating result was a loss of 
(£1.7 million) compared to an operating profit of £1.1 million. 
EBITDA was £0.3 million compared with £2.9 million in the prior 
year. Adjusted EBITDA reduced to £0.9 million from £3.6 million.
The reconciliation is as follows:
2014 2013 2012
£’000 £’000 % £’000
Operating result (1,705) 1,052 (262%) 1,390
Depreciation 225 151 185
Amortisation 
and impairment 1,802 1,650 1,623
EBITDA 322 2,853 (89%) 3,198
Share-based 
compensation 286 416 —
Fair value 
adjustments 32 — —
Gain on sale 
of investment (21) — —
Funding costs/ 
listing expenses 217 308 —
Dilapidations 
provision 36 37 37
Canada set-up fees — 10 —
EBITDA adjusted 872 3,624 (76%) 3,235
Finance income
Interest receivable from the Group’s cash resources increased 
to £0.06 million from £0.02 million as a result of increased cash 
balances from the equity raise, but remains at low levels due 
to the current interest rate environment worldwide.
Income tax
The Group recorded a current tax charge in its Canada operation 
of £0.04 million plus a deferred tax liability of £0.07 million for tax 
due to the timing difference over which R&D tax relief and a local 
digital media tax rate operate. The parent company continues 
to hold unused tax losses of £6.7 million to set against future 
taxable profits generated in the UK.
Earnings per share
The basic loss for 2014 per share was (5.8) pence compared to 
earnings per share of 4.2 pence for 2013 based on a weighted 
average number of shares of 33.3 million (2013: 25.0 million).
BUSINESS REVIEW
CONTINUED ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
11
STRATEGIC REPORT
On a diluted basis the loss per share is reported as the same 
amount at (5.8) pence compared to diluted earnings per share 
in the prior year of 4.1 pence based on a weighted average 
number of shares of 33.3 million (2013: 25.5 million).
The adjusted loss per share was (3.0) pence compared to the 
prior period’s adjusted earnings per share of 5.8 pence. 
Dividend
The Directors are not recommending the payment of a 
dividend (2013: £nil).
Intangible assets and research and development expenditure
Investment in our own IP capitalised in the year was up 136% 
in line with our transition plans at £4.0 million reflecting Frontier’s 
commitment to a strategic software development programme 
in respect of Elite: Dangerous and our COBRA technology. 
Including the acquired rights the £8.3 million of self-published 
net book value is represented by the Elite: Dangerous title. 
A good proportion of our investment is in research and 
development, representing £0.79 million (2013: £0.76 million) 
an increase of 4%. Research and development expensed 
was lower at £0.4 million from £0.6 million. 
Share issues
A convertible loan was issued towards the end of the prior year 
granting shares at a discount of 15% to the IPO flotation price. The 
amount received in June 2014 was £1.6 million (2013: £1.1 million). 
Upon listing in July 2013 the convertibles converted into 2.5 million 
shares at £1.0795 per share. A further 0.1 million shares were 
issued pre-IPO in June 2013 at £0.95 per share.
3.2 million shares were issued under the IPO at £1.27 per 
share. The Company also issued 0.4 million of warrants as 
part of the process.
Employees converted 0.3 million share options into ordinary 
shares post-IPO up to the end of May 2014; exercise proceeds 
were £0.3 million. The Group granted 0.4 million share options 
in the year (2013: 1.6 million).
A further 2.0 million shares were issued as non-cash 
consideration for the purchase of the assets of Professional 
Practice Automation LLP, a limited liability partnership under 
the control of David Braben, in May 2014.
Non-current assets
Investment in intangibles was focused on developing 
self-published titles (mainly Elite: Dangerous, scheduled for 
release Q4 2014) and further multi-platform work on COBRA.
The Group maintained prudent amortisation rates to reflect the 
dynamic changing nature of the video games sector.
Current assets
Trade and other receivables increased by £0.9 million to 
£3.0 million mainly as a result of deferred royalty income due 
from Atari SA as part of the distribution agreement signed in 
October 2013 and Microsoft for Kinect Disneyland Adventures. 
Investments held for sale include shares in Atari SA provided 
as part of the Chapter 11 creditor agreement for pre-petition 
balances; these were sold post year end.
Current liabilities
Trade and other payables decreased by £1.9 million to 
£1.2 million, £1.1 million was due to convertible loan notes 
being converted to equity. The Group’s Canadian subsidiary 
received an interest-free loan from the federal-backed 
Atlantic Canada Opportunities Agency of £0.2 million.
Deferred income was £2.5 million (2013: £1.3 million in 
non-current liabilities). Deferred income constituted both 
crowd-funding ‘pledges’ and pre-orders on our e-commerce 
site expected to be delivered within one year for Elite: Dangerous 
and publication contract revenue, computed under revenue 
recognition rules.
Non-current liabilities
The Group fully offset UK deferred tax liabilities with deferred 
tax assets that were available. An overseas deferred tax liability 
of £0.1 million was provided against federal investment tax 
credits due. Prior year balances for deferred income were 
moved to current liabilities. 
Cash and cashflow
The Group’s operating cashflow was £0.3 million, driven by 
increase in deferred income for Elite: Dangerous. Share capital 
proceeds from pre-IPO and IPO raised £5.7 million. The Group 
invested £4.4 million in non-current assets. The Group incurred 
£0.3 million of unrealised foreign currency losses as it held 
currency balances in anticipation of increased worldwide 
marketing activity.
The overall impact was an increase of £1.8 million in cash 
and cash equivalents to £8.6 million, continuing to support 
the Group’s investment and growth plan.
David Walsh
Chief Operating Officer
Neil Armstrong
Company Secretary and Chief Finance Officer
3 September 2014 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
12
STRATEGIC REPORT
PRINCIPAL RISKS AND UNCERTAINTIES
Description Mitigation Status
Staff availability
If the Group does not have the correct numbers 
of people with the correct skills available, the 
execution of its business plan will be compromised.
The Group continues to prioritise direct recruitment and outreach. 
We have visibility of our future needs via a regularly reviewed plan 
of record, and undertake analysis of potential bottlenecks. We seek 
to minimise days lost to sickness via healthcare benefits, general 
morale and wellbeing initiatives.
New
Staff retention
Staff departures could create staff and key skill/
experience shortages and compromise the 
execution of the Group’s business plan.
Whilst there will unavoidably be some level of staff turnover, the 
Group believes that its attractive project portfolio, talented staff and 
good quality leadership make Frontier a place where talented people 
want to build their careers. We use our business success to deliver 
benefits to our people, and the Group is in the middle of a three-year 
programme of improving incentives and leadership skills which is 
intended to further enhance its attractiveness as an employer.
New
Cybersecurity
A breach of security could take many 
forms, and could significantly impair our  
self-publishing plans. 
We review our security provisions regularly and believe them 
to be in accordance with industry best practices.
New
Strategic focus
The Group is in the process of diversifying its 
business base to a balanced mix of technology, 
self-published and published-based revenue 
streams. Inherently in such a strategic shift of focus 
creates execution risk, whilst perhaps reducing 
financial risk based on a small customer base.
The Group is already seeing a shift in revenue balance as evidenced by 
its pre-orders of Elite: Dangerous. The Group remains confident that it 
can deliver on the product, technology, commercial and operational 
aspects that support this strategy.

Liquidity
Liquidity risk arises from the Group not being 
able to meet its obligations as they fall due, 
which would mean we are not able successfully 
to execute our business plan.
The Group seeks to manage this risk by ensuring sufficient liquidity 
is available to meet the foreseeable needs and to invest cash assets 
safely and profitably. The Group’s policy throughout the year has 
been to place surplus funds on short-term treasury deposits based 
on its detailed cashflow forecasting. The Group prudently manages 
its liquidity needs by carefully monitoring forecast cash inflows and 
outflows both in the short and medium term. The group also has 
access to its £3 million revolving credit facility.

Customer dependency
The Group recognises that it is currently dependent 
on a small number of sources of revenue from 
publishing customers, and this has the potential 
to cause financial stress should these relationships 
break down.
The Group remains confident that it could undertake work for other 
publishing customers whilst it builds up a diversified revenue base if 
necessary. The Group has added another (as yet unannounced) major 
global publishing partner as a customer this financial year.

The Group faces competitive, strategic and financial risks that are inherent in a rapidly growing emerging 
market. The Executive team maintains the risk register and escalates the key risks for further consideration 
at full Board level on a regular basis. 
The key business and finance risks for the Group are set out below: ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
13
STRATEGIC REPORT
Description Mitigation Status
Currency risk
The Group’s reporting currency is Pounds Sterling 
(GBP). Exposure to currency exchange rates arises 
where transactions are in a currency other than 
the functional currency of the entity, primarily 
US Dollars (USD), Canadian Dollars (CAD) 
and Euro (EUR).
Currency risk is managed by ensuring, where possible, that financial 
revenues and operating costs are denominated in GBP or, where 
subcontract costs have been recharged, they have been recharged  
in the same currency. The operating costs of the Canadian entity are 
matched to USD revenue flows where possible, as this exchange 
rate has been more stable than via GBP . The Group does not enter 
into forward exchange contracts to mitigate the exposure to foreign 
currency risk as the Group’s currency transactions are not considered 
significant enough to warrant this. However, the Group does seek 
to maintain the same level of working capital in both its Canadian 
subsidiary and in the UK parent, measured in calendar months. 
As the Group expands its revenue sources the amount of revenue 
originating in non-GBP currencies will increase. The cost base of the 
Canadian operation might also become material. The Company currently 
holds contracts in USD which is seen as a natural hedge for the 
Canadian operational costs over the next two years. The currency 
exposure is monitored closely.

Growth management
The Group’s future success will depend on its ability 
to manage anticipated expansion. This now includes 
the management of an overseas-based subsidiary 
and may include acquisitions. Such expansion is 
expected to place demands on management and 
support functions. If the Group is unable to manage 
its expansion effectively, its business and financial 
results could suffer.
In order to mitigate the risk, the Group is investing in suitable 
training for key staff and key internal systems. The Group continues 
to consult with our Non-Executive Directors to ensure these risks 
are managed objectively.

Market disruption
The Group operates in a fast moving industry 
where market trends or disruptive technology 
may emerge which reduce its ability to compete 
and execute its business plan.
Investing in its own COBRA technology and self-published games 
allows the Group to continue to innovate, and we believe our 
processes and business decisions are agile and well informed so 
we can anticipate and exploit such changes. We believe this risk 
is mitigated by our track record of execution on new platforms and 
the flexibility demonstrated by the diverse range of video games 
we have successfully developed in the past.

Credit
Credit risk is the risk that a third party might fail 
to fulfil its performance obligations under the 
terms of a financial instrument.
The Group’s exposure is limited to the carrying value of financial 
assets and cash and cash equivalents recognised at the year end 
date (as summarised in notes 16 and 30).
The Group’s management considers all financial assets, not 
impaired, for each reporting date are of good credit quality, including 
those past due. In respect of trade and other receivables the Group 
is exposed to significant risk for two counterparties; however, given 
the identity of each and their financial performance, we believe the 
likelihood of such risk to be low.

Interest rate sensitivity
Interest rate risk is the current or prospective risk 
that earnings and/ or capital are negatively affected 
by interest rate changes in the financial markets.
The Group’s only current borrowing is interest free.

Approved by the Board and signed on behalf of the Board
David Walsh Neil Armstrong
Chief Operations Officer Company Secretary and Chief Finance Officer
3 September 2014 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
14
CORPORATE GOVERNANCE
DIRECTORS’ BIOGRAPHIES
DA VID GAMMON
Non-Executive Chairman
Joined February 2012
David has widespread experience in 
developing and building technology based 
businesses. Since 2001, David has focused 
on finding, advising and investing in UK 
technology companies. David founded 
Rockspring, an advisory and investment 
firm, which focuses on early stage 
technology companies and where 
David continues as CEO today. Other 
current positions include non-executive 
directorship at Accesso Technologies 
plc, and he is Group Strategic Advisor to 
Marshall of Cambridge (Holdings) Limited.
Previous experience includes Non-Executive 
Director (NED) and advisor at artificial 
general intelligence company DeepMind 
Technologies Limited, advisor to 
Hawkwood Capital LLP, NED at real-time 
location technology specialist Ubisense 
Trading Limited, NED at internet TV 
specialist Amino Technologies plc, NED at 
smart metering and software company 
BGlobal plc and acting CFO at internet 
specialist Envisional Solutions Limited. 
Earlier in his career David worked as an 
investment banker for over 15 years.
Committees Audit, Remuneration, 
Nominations
DA VID BRABEN O.B.E.
Founder and CEO
Joined David was the founding 
shareholder of Frontier in January 1994
David was the founding shareholder 
of Frontier in January 1994 and is the 
co-author of Elite. David has over 
30 years’ experience in the gaming 
industry. David is also a founding trustee 
of the Raspberry Pi Foundation. David 
was formerly a NED at Phonetic Arts 
Limited, before it was acquired by 
Google in December 2010. David is a 
BAFTA games judge and is a Fellow 
of the Royal Academy of Engineering. 
In 2013 David won ‘Technology Personality 
of the Year’ at the UK tech awards 
(formerly techMARK) and was given 
an honorary doctorate from Abertay 
University in Dundee. In 2014 he 
was given an O.B.E. for services to 
the computer games industry and a 
further honorary doctorate from the 
Open University.
Committees Nominations
DA VID W ALSH
Chief Operating Officer
Joined September 2001
David has over 25 years’ experience of 
engineering and commercial management 
roles in high-growth technology companies. 
In 2001 David joined Frontier from ARM, 
the FTSE/NASDAQ listed microprocessor 
IP licensing company where he served for 
six years, helping to grow the company 
and, as Director of Software Systems, 
setting up a division of the company to 
facilitate adoption of the architecture in 
key target market segments. In 2012 
David established and became President 
of Frontier Developments Inc., Frontier’s 
wholly owned Canadian subsidiary, and 
he also serves as a board member of 
the Entertainment Software Association 
of Canada.
Committees Remuneration ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
15
CORPORATE GOVERNANCE
JONNY W ATTS
Chief Creative Officer
Joined November 1998
Jonny has over 26 years’ experience in 
gaming. He joined the Company in 1998 
from Sensible Software, and over the 
course of his career has been involved in 
all aspects of the creation of 23 published 
games such as Sensible Soccer and 
Cannon Fodder, along with Frontier’s 
suite of games. Jonny’s titles span the 
full range from independent development 
to 400-person projects, encompass a 
diverse range of genres, and together have 
been enjoyed by over 34 million people 
worldwide. Jonny holds zoology and 
computer science degrees, is an active 
member of BAFTA, including serving as 
a judge for five years, and on the BAFTA 
Young Designer committee. Jonathan 
joined the Board in February 2012.
JONATHAN MILNER
Non-Executive Director 
Joined November 2012
Jonathan is an experienced entrepreneur 
and business leader with a background 
in genetic research. In 1998, he founded 
Abcam with David Cleevely and Professor 
Tony Kouzarides, to supply the rapidly 
growing market for antibodies and other 
life science reagents. As CEO, Jonathan 
was instrumental in building Abcam, 
which now has a market capitalisation 
of c.£850 million. Jonathan is an active 
supporter of the Cambridge, UK, 
business community. He is also 
Chairman of Axol Bioscience Limited 
and a Non-Executive Director of 
Horizon Discovery, a personalised 
genomics company.
Committees Remuneration
NEIL ARMSTRONG
Company Secretary and CFO
Joined June 2010
Neil qualified with Ernst & Whinney 
(now Ernst & Young) as a chartered 
accountant in 1989. He has previously 
held various senior finance positions 
in the SME space with experience of 
media, manufacturing and international 
charities as well as secondments to 
a London enterprise agency.
Committees supported Audit, 
Nominations, Remuneration
CORPORATE DIRECTORY
Directors
Mr D R Gammon 
Mr D J Braben 
Mr D J Walsh 
Mr J F Watts 
Dr J S Milner 
Company Secretary and CFO
Mr N R Armstrong
Registered office
306 Science Park 
Milton Road 
Cambridge CB4 0WG
Company number
02892559
For a full list of advisors 
and company information 
see page 60 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
16
CORPORATE GOVERNANCE
REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MA Y 2014
The Directors present their report for the Group and Company 
together with the financial statements for the year to 31 May 2014. 
The financial statements are prepared under International 
Financial Reporting Standards (EU adopted IFRS). 
Business review
A review of the Group’s development and performance is 
provided in the Strategic Report (page 5). Information on the 
financial risk management strategy is given within that report 
and in Note 30 to the financial statements.
Going concern
The Group’s forecasts lead to a reasonable expectation that 
the Group has adequate resources to continue in its business 
for the foreseeable future. 
Share issues
Details of shares issued during the year are detailed in note 17 
to the financial statements. The Company has one class of ordinary 
share which carries no right to fixed income. Each share carries 
the right to one vote at general meetings of the Company.
Directors’ remuneration and share options 
Details of Directors’ remuneration and share options are provided 
within the Remuneration Report and are in addition to the 
interests in shares shown above.
During the year David Braben sold 1,600,000 shares at a price 
of 250 pence per share, and also received 2,001,573 shares 
stemming from his controlling interest in Professional Practice 
Automation LLP whose business and assets were acquired by 
the Group.
David Gammon had an interest in the purchase of 42,000 shares 
at a price of 250 pence per share in two separate transactions, 
and also purchased 5,000 shares at 99 pence per share, both 
being acquired via Rockspring, a company which he controls.
Jonathan Milner purchased 90,000 shares at a price of 99.4 pence 
per share and received 347,384 shares upon conversion of 
a convertible loan note upon Admission to AIM at a price 
of 107.95 pence.
Jonathan Watts sold 8,500 shares at a price of 95 pence 
to Neil Armstrong, prior to the IPO.
Directors’ responsibilities for the financial statements
The Directors are responsible for preparing the Report of the 
Directors and the financial statements in accordance with 
applicable law and regulations. 
Company law requires the Directors to prepare such financial 
statements for each financial year. Under that law, the Directors 
have elected to prepare the Company financial statements in 
accordance with International Financial Reporting Standards 
(IFRSs) as adopted by the European Union. Under company 
law the Directors must not approve the financial statements 
unless they are satisfied that they give a true and fair view of 
the state of affairs and of the profit or loss of the Company for 
that year. In preparing these financial statements, the Directors 
are required to:
• select suitable accounting policies and then apply them 
consistently;
• make judgements and accounting estimates that are 
reasonable and prudent;
• state whether the applicable IFRSs have been followed, 
subject to any material departures disclosed and explained 
in the Company’s financial statements; and
• prepare the financial statements on a going concern basis 
unless it is inappropriate to presume that the Company will 
continue in business.
The Directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the Company’s 
transactions and disclose with reasonable accuracy at any time 
the financial position of the Company and to enable them to 
ensure that the financial statements comply with the Companies 
Act 2006. They are also responsible for safeguarding the assets 
of the Company and hence for taking reasonable steps for the 
prevention and detection of fraud and other irregularities.
The Directors confirm that:
• so far as each Director is aware, there is no relevant audit 
information of which the Company’s auditor is unaware; and
• the Directors have taken all steps that they ought to have 
taken as Directors to make themselves aware of any relevant 
audit information and to establish that the auditor is aware of 
that information.
Directors
The Directors who held office at 31 May 2014 and their interest in the share capital of the Company were as follows:
Name 2014 Number 2014 % 2013 Number 2013 %
David Gammon* 271,720 0.9 224,720 0.9
David Braben 17,895,953 53.6 17,494,380 69.3
David Walsh* 1,245,820 3.7 1,245,820 4.9
Jonathan Watts 23,500 0.0 32,000 0.1
Jonathan Milner* 662,104 2.0 224,720 0.9
Total 20,099,097 60.2 19,221,040 76.1
*Including direct family holdings ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
17
CORPORATE GOVERNANCE
The Directors are responsible for the maintenance and integrity 
of the corporate and financial information included on the 
Company’s website. Legislation in the United Kingdom 
governing the preparation and dissemination of financial 
statements may differ from legislation in other jurisdictions.
Directors’ indemnity arrangements
During the year the Company purchased directors’ and officers’ 
liability insurance in respect of itself and its Directors.
Intellectual property and research and development
The Group actively protects its intellectual property via trademark 
registrations. Whilst the Directors consider these to be of 
significant value, the costs associated with registrations 
are expensed.
The Group invests heavily in research and development through 
the COBRA engine and associated development tools. Costs 
that meet the criteria for capitalisation are included in intangible 
assets (see note 7 of the financial statements). The Group‘s 
total spend in research and development to support its strategy 
was £1.2 million in the year (2013: £1.4 million).
Employee involvement
The Group seeks to encourage and promote an agile, open, fair 
and meritocratic culture of engagement, achievement and fun.
The Group is committed to the principle of equal opportunities 
in employment. Its aim is to ensure that no job applicant or 
employee receives less favourable treatment or is placed at a 
disadvantage by requirements or conditions that cannot be shown 
to be justifiable and thereby promote equality of opportunity 
for employment within the Group on grounds such as sex, 
disability, marital status, religion, colour, race, nationality, 
ethnic or national grounds, age or sexual orientation.
The Group’s policies and procedures are created and administered 
in such a way that they do not tolerate or foster such discrimination.
The Group has an Employee Consultation group that meets 
regularly with senior management.
The Group encourages employee involvement in the Group’s 
performance by using a contractual bonus scheme for all 
non‑Director level staff. In addition it seeks to issue share 
options at relevant times. 
Employment policies
The Group is committed to following UK employment law for 
its Cambridge‑based operations and the Canada Labour Code 
for its Halifax, Nova Scotia, operation. Where possible the Group 
strives for similar employment and benefit arrangements 
between territories.
Health and safety and environment
The aim of the Directors is to provide healthy, safe and 
congenial working conditions, equipment and systems 
of work for all employees.
The Directors further intend to provide sufficient information, 
training and supervision to enable employees to do their work 
safely, effectively and without risk to themselves or to others.
We acknowledge that we are responsible for the safety of 
visitors, both professional and social, who enter the premises.
Frontier Developments plc recognises its duty to comply and 
operate within the requirements of statutory environmental 
legislation and is committed to minimising the environmental 
impacts of its business operations. The Directors of the Group 
will support this policy with this commitment in mind. 
Substantial shareholders
At 3 September 2014 the following, other than the Directors 
whose shareholdings are listed on page 16, had notified the 
Company of disclosable interests in 3% or more of the nominal 
value of Frontier Developments plc of 0.5 pence each:
Name Shareholding %
Lansdowne Partners 3,263,089 9.8%
Chris Sawyer 2,505,726 7.5%
Amati Venture Capital 1,070,185 3.2%
Herald Investment Management 987,402 3.0%
Auditor
A resolution to re‑ appoint Grant Thornton UK LLP as the 
Company’s auditor will be proposed at the forthcoming 
Annual General Meeting. In accordance with normal 
practice, the Directors will be authorised to determine 
the auditor’s remuneration.
Approved by the Board of Directors and signed on behalf 
of the Board
Neil Armstrong
Company Secretary
3 September 2014 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
18
CORPORATE GOVERNANCE
The Board
The Board of Frontier Developments plc is responsible for 
the long‑ term financial success of the business. We do not 
comply with the UK Corporate Governance Code. However, 
we have reported on our Corporate Governance arrangements 
by drawing upon best practice available, including those 
aspects of the UK Corporate Governance Code we consider 
to be relevant to the company and best practice.
The following statements set out the principles and methods 
to which it adheres. The Statement of Directors’ Responsibilities 
is set out on page 16.
Board meetings and practices
The Board seeks to meet formally at least nine times a year 
including two ‘offsite’ strategic review days. All members of 
the Board are invited to attend all meetings. In the financial 
year to 31 May 2014 the Board met on 15 occasions, the 
additional meetings being required as part of the IPO process.
The Chairman and the Company Secretary plan the agenda for 
each Board meeting in consultation with all other Directors. 
That agenda is issued with supporting papers ahead of the 
Board meetings providing the appropriate information required 
to enable the Board to discharge its duties.
The matters reserved for the attention of the Board include:
• overall business strategy of the Group;
• review of key operational and commercial matters;
• review of key finance matters, including approval of financial 
plans, changes to capital structure, acquisitions and disposals 
of businesses and material capital expenditure, and dividends;
• governance: Board membership and powers including the 
appointment and removal of Board members, set up and 
delegation of matters to appropriate Committees, and the 
reviewing of reporting back thereof;
• approval of financial statements both interim and year end;
• stock exchange related issues including the approval of 
communications to the stock exchange and communications 
with shareholders in conjunction with any financial public 
relations firm;
• subsidiary Board appointments, as the 100% shareholder, 
and review of key decisions at their Board meetings;
• approval of acquisitions, disposals, borrowing facilities, 
premises and matters proposed by the corporate lawyer 
(Bird and Bird) and nominated advisor and broker 
(Canaccord Genuity); and
• appointment and performance review of key advisors.
Board composition
The Board of Frontier Developments plc comprises the 
Non‑ Executive Chairman, the Chief Executive Officer 
and two other Executive officers, the Company Secretary 
and one further Non‑ Executive Director. As can be deduced 
from the individual biographies, the Directors have a range 
of experience and provide a balance of skills, experience 
and knowledge to the Board. 
All Directors are subject to election at the first Annual General 
Meeting following their appointment and to re‑ election thereafter 
at intervals of no more than four years.
Board Committees 
Audit Committee
The Audit Committee determines the terms of engagement 
of the Company’s auditor and, in consultation with the Company’s 
auditor, the scope of the audit. It will receive and review reports 
from management and the Company’s auditor relating to the 
interim and annual accounts and the accounting and internal 
control systems in use by the Company and Group. The Audit 
Committee has unrestricted access to the Company’s auditor. 
The Audit Committee also reviews accounting and treasury 
policies, financial reporting including key performance indicators 
and supporting key areas of management judgements, and 
corporate governance standards. The Audit Committee is open 
to attendance by any Director and reports its key issues at 
Board meetings.
The Audit Committee comprises David Gammon, 
Neil Armstrong and Amanda Heslam (the Group Accountant).
In the financial year to 31 May 2014 the Audit Committee 
met on three occasions, including two meetings with the 
auditor present.
Remuneration Committee
The Remuneration Committee reviews the scale and structure 
of the Executive Directors’ future remuneration and the terms 
of the service agreements with due regard to the interests 
of shareholders. No Director is permitted to participate in 
discussions or decisions concerning their own remuneration. 
The Remuneration Committee also approves annual salary 
review limits, bonus schemes and payment limits, and 
significant employee benefits, such as pension and share 
option schemes. 
The Remuneration Committee comprises David Gammon, 
David Walsh and Jonathan Milner, supported by Neil Armstrong 
and, as required, Yvonne Dawes (HR manager).
In the financial year to 31 May 2014 the Remuneration 
Committee met on four occasions.
Nominations Committee
The Nominations Committee reviews the constituents 
of the Board and its committees to ensure appropriate 
balance representation. 
The Nominations Committee comprises David Gammon 
and David Braben, supported by Neil Armstrong. 
In the financial year to 31 May 2014 the Nominations 
Committee met on two occasions. 
CORPORATE GOVERNANCE REPORT
FOR THE YEAR ENDED 31 MA Y 2014 ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
19
CORPORATE GOVERNANCE
Company Secretary
The role of the Company Secretary is to ensure reliable and 
regular information flows to the Board and its committees 
and to ensure applicable rules and regulations are followed. 
The Company Secretary is available to all Directors to provide 
advice and assistance and is responsible for providing 
governance advice to the Board. The Company Secretary 
holds regular telephone calls with the Chairman.
Attendance at meetings
The number of meetings held and attendance by each Director and officer during the financial year to 31 May 2014 was as follows:
Board
Remuneration 
Committee
Nominations 
Committee
Audit 
Committee
Number of meetings 15 4 2 3
David Gammon 15 4 2 3
David Braben 15 2 2 —
David Walsh 14 4 — —
Jonathan Watts 15 1 — —
Jonathan Milner 13 1 — —
Neil Armstrong 15 4 2 3
Auditor independence
The external audit function provides independent review 
and audit. It is the responsibility of the Audit Committee to 
review and monitor the external auditor’s independence and 
objectivity and the effectiveness of the audit process, taking 
into consideration relevant UK professional and regulatory 
requirements and to develop and implement policy on the 
engagement of the external auditor to supply non‑ audit 
services, taking into account relevant ethical guidance.
Senior management and Group functions
The Executive Directors are supported by a number of senior 
managers; however the close involvement of the Executive 
Directors in the day‑ to‑ day activities of the business at the 
present time negates the need for a formal Executive Team. 
The Executive Directors and Company Secretary meet on a 
regular basis. Project meetings covering all projects individually, 
technology, finance, marketing, investor relations and HR meet 
on a weekly basis.
Project support is provided by the IT, customer support and 
marketing (including e‑ commerce) functions. Administration 
support is provided by a central finance, investor relations, 
HR, purchasing and site functions. All functions report to 
the Executive Team. 
Internal control and assessment of business risk
The Board took the opportunity to fully review the Group’s 
policies and procedures for internal controls to ensure an 
appropriate framework under which the business can operate 
and in line with regulations as part of its Admission to AIM.
The systems for internal control and risk management 
processes are designed to manage rather than eliminate risk 
of the achievement of strategic objectives. Such systems can 
only provide a reasonable but not absolute level of assurance 
against material misstatement or loss.
A risk assessment process is embedded within the project 
and administrative process within the Group. The strategic risks 
are regularly reviewed by the Board, a Corporate Risk Register 
is maintained by the Executive Directors to review key risks 
and the related controls and mitigation plans. 
Control environment and internal audit
The Group has established operating procedures appropriate 
to its size and structure for reporting financial and non‑ financial 
information to the Board.
These include, but are not limited to:
• operating guidelines and procedures with approval limits;
• accounting policies, controls and procedures; 
• performance monitoring systems updated monthly for 
review at Board meetings; and
• regulatory and legal changes that may materially impact 
on the business.
Due to the Executive Directors’ close involvement in the 
business activities, the Group does not currently believe that 
an internal audit function would be cost effective. The Audit 
Committee reviews this position on a regular basis.
Investor relations
The Directors, together with the Group’s advisors, held a 
number of meetings and discussions with key institutional 
shareholders, ensuring clarity around the Group’s strategic 
intent. The Executive Directors and Officers also took the 
opportunity during the year to both ‘tour with’ and hold 
‘on‑ site’ meetings to demonstrate Elite: Dangerous to both 
investors and potential investors The Group intends to use 
the Annual General Meeting to encourage attendance and 
participation by shareholders. FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
20
CORPORATE GOVERNANCE
REMUNERATION REPORT
FOR THE YEAR ENDED 31 MA Y 2014
As Frontier Developments is an AIM‑ listed company it is not 
required to disclose all the information in the Remuneration 
Report; however, in the interests of transparency the Board 
has chosen to provide the following details as a voluntary 
disclosure. The auditor is not required and has not, except 
where indicated, audited the information included in the 
Remuneration Report.
The Remuneration Committee is responsible to the Board 
for developing remuneration policy. The Report of the 
Remuneration Committee has been approved by the Board 
of Directors for submission for shareholders’ approval at the 
Annual General Meeting.
Remuneration Committee terms of reference
The Remuneration Committee comprises both Non‑ Executive 
Directors of the Company and the Chief Operations Officer, 
supported by the Company Secretary. The Remuneration 
Committee meets at least twice a year.
The Remuneration Committee is responsible for the 
following functions:
• setting of remuneration for Directors and senior managers, 
including pay, bonuses and long‑ term incentive arrangements;
• approval of the overall increase for annual pay and bonus 
levels for all other staff;
• approval of share option plans or arrangements;
• setting of overall share option issues;
• approval of any significant employee benefit arrangements; and 
• reviewing the Committee’s terms of reference and 
submitting to the Board for subsequent approval.
Remuneration policy
The Remuneration Committee approved the following policy:
“Frontier endeavours to pay salaries and benefits around the 
median level for relevant skills. Where there is a material gap 
in remuneration, it is the policy of the Group to close this over 
time and subject to affordability.”
As part of the Group’s Admission to AIM the Remuneration 
Committee, along with its legal advisors, implemented new 
service agreements to take effect from 1 July 2013. In doing 
so and in recognition of the higher public profile the Committee 
reviewed the ‘AIM Directors’ Pay 2013’ report published by 
Growth Company Investor, and identified a significant gap 
between Directors’ actual pay to the policy intent. 
Having commissioned a report from Deloitte on both Executive 
and Non‑ Executive remuneration, the Remuneration Committee 
has set out to accelerate the move to a median level of pay 
as soon as practical. In addition the Remuneration Committee 
aims to bring incentives in to place that align the Group’s 
strategic objectives and investor interests with a large 
element of the total remuneration package.
Components of Executive Directors’ remuneration
Overview
The remuneration policy is to maintain an appropriate balance 
between fixed elements of remuneration and performance 
related elements, with an increasing proportion of the latter. 
Directors and staff are all encouraged to acquire shares 
in the Company and to hold these shares for the long term. 
This participatory element is an important aspect of the 
Group’s culture and its focus on long‑ term performance.
As part of the changes the Remuneration Committee has 
plans to adopt the following:
• a move to median level pay as soon as practical;
• the set up of a new Executive share option scheme;
• the set up of a ‘stretch goal’ based bonus scheme; 
• pension provision in line with the Group’s auto enrolment 
plans; and 
• medical insurance in line with the Group’s plans for 
all employees.
Components of remuneration package
Service contracts
The service agreements adopted on 1 July 2013 for the 
Executive Directors can be terminated by either party 
provided at least six months’ notice has been given.
Basic pay
Salaries were reviewed on 1 July 2013 upon the take up of 
new service agreements, required prior to Admission on AIM. 
A further interim review was undertaken in January 2014. 
Having considered the remuneration report from Deloitte 
a further review was taken to take effect from 1 June 2014. 
Annual bonus
The bonus payment for the year to May 2013 was made in 
December 2013 of 8% of basic pay, For the year to May 2014 
and in view of the results no bonus will be paid. An interim 
scheme has been adopted for the year to 31 May 2015 whereby 
a 5% pool of profit before tax and bonus will be allocated 
between Executive Directors, officers and senior management. 
The scheme is intended to operate in the same way as the 
staff contractual scheme whereby an element is paid pro rata 
and the remainder discretionary.
Share options
The Enterprise Management Initiative Scheme was replaced by 
a revised Company Share Option Plan which will be available 
to Executive Directors until such time as a longer‑ term executive 
arrangement can be put in place. No share options were 
granted in the year to the Executive Directors.
Pension contributions and life cover
The intention of the Committee is to place the Executive Directors 
under the proposed Group’s scheme for pension auto enrolment 
and life cover arrangements. A basic life cover sum of £25,000 per 
person was adopted from 1 October 2013, Pension auto enrolment 
of a 1% employer contribution was commenced from 1 July 2014. 
These benefits are the same as adopted for all UK‑ based staff. ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
21
CORPORATE GOVERNANCE
Non-Executive Directors’ remuneration
The remuneration of Non‑ Executive Directors is determined by the Board and reflects their anticipated time commitment to 
fulfil their duties. The Non‑ Executive Directors’ remuneration is subject to the same principles of the remuneration policy for 
the Group and the same transitional phase of alignment to median market rates was undertaken. The letters of appointment 
of Non‑ Executive Directors can be terminated with six months’ notice for the Chairman and three months’ for all other Non‑ Executives 
under notice given by either party. Share option warrants were issued to the Non‑ Executive Directors in connection with the IPO 
(see note 19 to the accounts).
Directors’ remuneration (audited)
The remuneration of the Directors is as follows:
Current Directors
Salary/fee
£’000
Bonus
£’000
2014 
Total
£’000
2013 
Total
£’000
Executive
David Braben 119 9 128 93
David Walsh 119 9 128 93
Jonathan Watts 119 9 128 99
Non-Executive
David Gammon 37 — 37 24
Jonathan Milner 28 — 28 14
Total 422 27 449 323
The expense recognised in the statement of comprehensive income for the Directors’ share options including Non‑ Executive Directors’ 
was £186,055 (2013: £45,302) with the amount attributable to the highest paid Director being £64,099 (2013: £34,586).
A resolution to accept the Report of the Remuneration Committee will be put to shareholders at the Annual General Meeting.
David Gammon
Chairman, Remuneration Committee
3 September 2014 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
22
FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF FRONTIER DEVELOPMENTS PLC (REGISTERED NO: 02892559)
We have audited the financial statements of 
Frontier Developments plc for the year ended 31 May 2014 
which comprise the consolidated income statement, consolidated 
statement of comprehensive income, consolidated and company 
statement of financial position, consolidated and company 
statement of cash flows, consolidated and company statement 
of changes in equity and the related notes. The financial reporting 
framework that has been applied in their preparation is applicable 
law and International Financial Reporting Standards (IFRSs) as 
adopted by the European Union and, as regards the parent 
company financial statements, as applied in accordance with 
the provisions of the Companies Act 2006.
This report is made solely to the company’s members, 
as a body, in accordance with Chapter 3 of Part 16 of the 
Companies Act 2006. Our audit work has been undertaken so 
that we might state to the company’s members those matters 
we are required to state to them in an auditor’s report and for 
no other purpose. To the fullest extent permitted by law, we 
do not accept or assume responsibility to anyone other than 
the company and the company’s members as a body, for our 
audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditor
As explained more fully in the Directors’ Responsibilities 
Statement as set out on page 16, the directors are responsible 
for the preparation of the financial statements and for being 
satisfied that they give a true and fair view. Our responsibility 
is to audit and express an opinion on the financial statements 
in accordance with applicable law and International Standards 
on Auditing (UK and Ireland). Those standards require us 
to comply with the Auditing Practices Board’s (APB’s) 
Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements 
is provided on the Financial Reporting Council’s website at 
www.frc.org.uk/apb/scope/private.cfm.
Opinion on financial statements
In our opinion:
• the financial statements give a true and fair view of the 
state of the group’s and of the parent company’s affairs as at 
31 May 2014 and of the group’s loss for the year then ended; 
• the group financial statements have been properly prepared 
in accordance with IFRSs as adopted by the European Union; 
• the parent company financial statements have been 
properly prepared in accordance with IFRSs as adopted by 
the European Union and as applied in accordance with the 
provisions of the Companies Act 2006; and
• the financial statements have been prepared in accordance 
with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report 
and Directors’ Report for the financial year for which the 
financial statements are prepared is consistent with the 
financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters 
where the Companies Act 2006 requires us to report to you if, 
in our opinion:
• adequate accounting records have not been kept by the 
parent company, or returns adequate for our audit have 
not been received from branches not visited by us; or
• the parent company financial statements are not in 
agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by 
law are not made; or
• we have not received all the information and explanations 
we require for our audit.
Alison Seekings
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Cambridge
3 September 2014 FINANCIAL STATEMENTS
ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
23
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MA Y 2014
Notes
31 May 2014
£’000
31 May 2013
£’000
Revenue 5 9,541 12,072
Cost of sales (7,914) (8,375)
Gross profit 1,627 3,697
Administrative expenses (3,332) (2,645)
Operating (loss)/profit (1,705) 1,052
Finance income 24 63 19
(Loss)/profit before tax 6 (1,642) 1,071
Income tax 25 (112) (26)
(Loss)/profit for the period attributable to the equity holders of the parent (1,754) 1,045
All the activities of the Group are classified as continuing.
Earnings per share 26
Basic (loss)/earnings per share (5.8)p 4.2p
Diluted (loss)/earnings per share (5.8)p 4.1p
CONSOLIDATED STATEMENT 
OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MA Y 2014
31 May 2014
£’000
31 May 2013
£’000
(Loss)/profit for the period (1,754) 1,045
Other comprehensive income:
Items that will be reclassified subsequently to profit and loss
Exchange differences on translation of foreign operations (30) 3
Total comprehensive income for the period attributable to the equity holders of the parent (1,784) 1,048
The accompanying accounting policies and notes form part of this financial information. FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
24
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 31 MA Y 2014 (REGISTERED NO: 02892559)
Notes
31 May 2014
£’000
31 May 2013
£’000
Non-current assets 
Intangible assets 7 10,962 3,450
Property, plant and equipment 9 328 299
Total non‑ current assets 11,290 3,749
Current assets
Inventories 13 15 —
Trade and other receivables 14 2,964 2,082
Other short‑ term assets 15 106 —
Cash and cash equivalents 16 8,612 7,155
Total current assets 11,697 9,237
Total assets 22,987 12,986
Equity and liabilities
Equity
Share capital 17 167 127
Share premium account 13,805 1,847
Option reserve 790 643
Foreign exchange reserve (30) 3
Retained earnings 4,160 5,775
Total equity 18,892 8,395
Liabilities
Current
Trade and other payables 20 1,207 3,060
Deferred income 21 2,456 —
Other short‑ term financial liabilities 22 14 —
Current tax liabilities — 33
Total current liabilities 3,677 3,093
Non-current 
Provisions 23 223 187
Financial liabilities 22 121 —
Deferred income 21 — 1,283
Deferred tax 12 74 28
Total non‑ current liabilities 418 1,498
Total liabilities 4,095 4,591
Total equity and liabilities 22,987 12,986
These financial statements were approved by the Directors on 3 September 2014 and signed on their behalf by:
David Braben
Director
The accompanying accounting policies and notes form part of this financial information. FINANCIAL STATEMENTS
ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
25
COMPANY STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 31 MA Y 2014 (REGISTERED NO: 02892559)
Notes
31 May 2014
£’000
31 May 2013
£’000
Non-current assets 
Intangible assets 7 10,962 3,450
Investment in subsidiary undertaking 8 — —
Property, plant and equipment 9 284 227
Total non‑ current assets 11,246 3,677
Current assets
Inventories 13 15 —
Trade and other receivables 14 3,447 2,237
Other short‑ term assets 15 45 —
Cash and cash equivalents 16 7,997 6,819
Total current assets 11,504 9,056
Total assets 22,750 12,733
Equity and liabilities
Equity
Share capital 17 167 127
Share premium account 13,805 1,847
Option reserve 777 630
Retained earnings 3,668 5,648
Total equity 18,417 8,252
Liabilities
Current
Trade and other payables 20 1,654 3,010
Deferred income 21 2,456 —
Current tax liabilities — 1
Total current liabilities 4,110 3,011
Non-current 
Provisions 23 223 187
Deferred income 21 — 1,283
Total non‑ current liabilities 223 1,470
Total liabilities 4,333 4,481
Total equity and liabilities 22,750 12,733
These financial statements were approved by the Directors on 3 September 2014 and signed on their behalf by:
David Braben
Director
The accompanying accounting policies and notes form part of this financial information. FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
26
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE YEAR ENDED 31 MA Y 2014
Notes
31 May 2014
£’000
31 May 2013
£’000
Operating activities
(Loss)/profit after tax (1,754) 1,045
Adjustments 27 2,446 2,198
Net changes in working capital 27 (413) 2,923
Taxes (paid) (1) (5)
Cashflow from operating activities 278 6,161
Investing activities
Purchase of property, plant and equipment (254) (251)
Expenditure on intangible assets (4,182) (1,783)
Proceeds from disposal of non‑ derivative financial assets 21 —
Interest received 63 19
Cashflow from investing activities (4,352) (2,015)
Financing activities
Proceeds from convertible loan notes 1,580 1,129
Proceeds from interest‑ free loan 175 —
Proceeds from issue of share capital 4,145 168
Cashflow from financing activities 5,900 1,297
Net change in cash and cash equivalents from continuing operations 1,826 5,443
Cash and cash equivalents at beginning of period 7,155 1,686
Exchange differences on cash and cash equivalents (369) 26
Cash and cash equivalents at end of period 8,612 7,155
The accompanying accounting policies and notes form part of this financial information. FINANCIAL STATEMENTS
ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
27
COMPANY STATEMENT OF CASHFLOWS
FOR THE YEAR ENDED 31 MA Y 2014
Notes
31 May 2014
£’000
31 May 2013
£’000
Operating activities
(Loss)/profit after tax (2,094) 918
Adjustments 27 2,464 2,124
Net changes in working capital 27 (243) 2,677
Taxes (paid) — (5)
Cashflow from operating activities 127 5,714
Investing activities
Purchase of property, plant and equipment (246) (148)
Expenditure on intangible assets (4,182) (1,783)
Proceeds from disposal of non‑ derivative financial assets 21 —
Interest received 57 19
Cashflow from investing activities (4,350) (1,912)
Financing activities
Proceeds from convertible loan notes 1,580 1,129
Proceeds from issue of share capital 4,145 168
Cashflow from financing activities 5,725 1,297
Net change in cash and cash equivalents from continuing operations 1,502 5,099
Cash and cash equivalents at beginning of period 6,819 1,686
Exchange differences on cash and cash equivalents (324) 34
Cash and cash equivalents at end of period 7,997 6,819
The accompanying accounting policies and notes form part of this financial information. FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
28
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MA Y 2014
Share 
capital
£’000
Share 
premium 
account
£’000
Option 
reserve
£’000
Foreign 
exchange
reserve
£’000
Retained 
earnings
£’000
Total 
equity
£’000
At 31 May 2012 12 1,794 263 — 4,694 6,763
Increase in equity in relation  
to options issued — — 416 — — 416
Share‑ based payment transfer — — (36) — 36 —
Issue of share capital 1 167 — — — 168
Re‑ denomination of share capital 114 (114) — — — —
Transactions with owners 115 53 380 — 36 584
Profit for the year — — — — 1,045 1,045
Other comprehensive income:
Exchange differences on translation  
of foreign operations — — — 3 — 3
Total comprehensive income  
for the year — — — 3 1,045 1,048
At 31 May 2013 127 1,847 643 3 5,775 8,395
Increase in equity in relation  
to options issued — — 286 — — 286
Share‑ based payment transfer — — (139) — 139 —
Issue of share capital less expenses 40 11,958 — — — 11,998
Transactions with owners 40 11,958 147 — 139 12,284
Loss for the year — — — — (1,754) (1,754)
Other comprehensive income:
Exchange differences on translation  
of foreign operations — — — (33) — (33)
Total comprehensive income  
for the year — — — (33) (1,754) (1,787)
At 31 May 2014 167 13,805 790 (30) 4,160 18,892
The accompanying accounting policies and notes form part of this financial information. FINANCIAL STATEMENTS
ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
29
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MA Y 2014
Share 
capital
£’000
Share 
premium 
account
£’000
Option 
reserve
£’000
Retained 
earnings
£’000
Total 
equity
£’000
At 31 May 2012 127 1,794 263 4,694 6,763
Increase in equity in relation to options issued — — 403 — 403
Share‑ based payment transfer — — (36) 36 —
Issue of share capital 1 167 — — 168
Re‑ denomination of share capital 114 (114) — — —
Transactions with owners 115 53 367 36 571
Profit for the year — — — 918 918
Total comprehensive income for the year — — — 918 918
At 31 May 2013 127 1,847 630 5,648 8,252
Increase in equity in relation to options issued — — 260 — 260
Share‑ based payment transfer — — (113) 113 —
Issue of share capital less expenses 40 11,958 — — 11,998
Transactions with owners 40 11,958 147 113 12,258
Loss for the year — — — (2,093) (2,093)
Total comprehensive income for the year — — — (2,093) (2,093)
At 31 May 2014 167 13,805 777 3,668 18,417
The accompanying accounting policies and notes form part of this financial information. FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
30
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
1. Corporate information
Frontier Developments plc (“the Group”) develops non‑ game applications and video games for the interactive entertainment 
sector. The Company is a public limited company and is incorporated and domiciled in the United Kingdom.
The address of its registered office is 306 Science Park, Milton Road, Cambridge CB4 0WG.
The Group’s operations are based in the UK and a subsidiary, Frontier Developments Inc, based in Canada.
2. Basis of preparation and statement of compliance 
The principal accounting policies applied in the preparation of this financial information are set out below. These policies have 
been consistently applied to all the periods presented, unless otherwise stated.
Basis of preparation
The financial information of Frontier Developments plc has been prepared in accordance with International Financial Reporting 
Standards as adopted by the European Union (IFRSs as adopted by the EU) and the Companies Act 2006 applicable to companies 
reporting under IFRS. 
The financial information has been prepared under the historical cost convention. The financial information is presented in 
Sterling, the presentation currency for the Group and Company, and all values are rounded to the nearest thousand pounds 
(£’000) except when otherwise indicated.
The preparation of this financial information requires the Directors to make critical accounting estimates and judgements that 
affect the amounts reported in the financial statements and accompanying notes. The areas involving a higher degree of judgement 
or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 4.
Going concern basis
The Group’s forecasts and projections, taking account of reasonably possible changes in trading performance, support the conclusion 
that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable 
future, a period of not less than twelve months from the date of approval of these financial statements. The Group therefore continues 
to adopt the going concern basis in preparing its financial statements. Having listed on AIM in the financial year and acquired a 
revolving credit facility to support its plans, the Group remains cash positive.
3. Principal accounting policies
Basis of consolidation and business combinations
Basis of consolidation
The consolidated financial statements incorporate those of the Group and all entities controlled by it, after eliminating internal 
transactions. Control is achieved where the Group has the power to control the financial and operating policies through its share 
ownership. Subsidiaries are consolidated from the date on which control is obtained by the Group and cease to be consolidated 
from the date on which control is transferred out of the Group. The entities’ results are adjusted, where appropriate, to conform 
to Group accounting policies.
a) Business combinations
Business combinations are accounted for using the acquisition method under the revised IFRS 3 “Business Combinations” (IFRS 3R). 
The consideration transferred by the Group to obtain control of a subsidiary is calculated as the sum of the acquisition‑ date fair 
value of assets transferred, liabilities incurred and the equity interests issued by the Group, which includes the fair value of any 
asset or liability arising from a contingent consideration agreement. Acquisition costs are expensed as incurred. 
The Group recognises identifiable assets acquired and liabilities assumed, including contingent liabilities, in a business combination 
regardless of whether they have been previously recognised in the acquiree’s financial statements prior to the acquisition. 
Assets acquired and liabilities assumed are generally measured at their acquisition‑ date fair values.
Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the sum of a) fair value 
of consideration transferred, b) the recognised amount of any non‑ controlling interest in the acquiree and c) acquisition‑ date fair 
value of any existing equity interest in the acquiree, over the acquisition‑ date fair values of identifiable net assets. If the fair values 
of identifiable net assets exceed the sum calculated above, the excess amount (i.e. gain on a bargain purchase) is recognised 
in profit or loss immediately. FINANCIAL STATEMENTS
ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
31
3. Principal accounting policies continued
b) Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and any recognised impairment loss. 
Depreciation is charged to the income statement so as to write off the cost less estimated residual values over their 
expected useful lives on a straight line basis over the following periods:
Fixtures and fittings 5 years 
Computer equipment 2½ years – 5 years
Leasehold improvements Length of the lease
Residual values and useful economic lives are assessed annually. The gain or loss on the disposal or retirement of an asset 
is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in 
administrative expenses.
c) Intangible assets 
Intangible assets are measured at historic cost and are amortised on a straight line basis over their expected useful economic 
life. They comprise three categories:
• development tools;
• software (self‑ published games) and royalty rights acquired in connection with jointly held IP; and
• software (third party).
An internally generated intangible asset arising from the Group’s development activities is recognised only if all of the following 
conditions are met:
• completion of the intangible asset is technically feasible so that it will be available for use in developing games (in respect 
of development tools) or for sale of games (in respect of self‑ published software);
• the Group intends to complete the intangible asset and has the ability to use or licence it as indicated above, thus generating 
probable future economic benefits;
• the expenditure attributable to the intangible asset during its development, mainly salary costs, can be measured reliably; and
• the Group has adequate technical, financial and other resources to complete the development and to use or sell the intangible asset.
Internally generated intangible assets, consisting of direct labour costs, other specific direct project costs and attributable project 
support costs, are amortised on a straight line basis over their useful economic lives. The estimated useful lives of current 
development projects are between two and five years. When a self‑ published game is intended for release on multiple platforms 
without material content change, amortisation is based on the aggregated number of months expected on each platform prior 
to any planned substantive sequel with a limit of up to four years. The limit of four years is a prudent estimate of the expected 
active selling lifetime of the platforms, for example consoles. Until completion the assets are subject to annual impairment testing. 
In most circumstances amortisation commences upon completion of the asset and is shown within cost of sales in the income 
statement. For certain projects that include a pre‑ funded element, a significant accounting estimate is made (see note 4). 
Where no internally generated intangible asset can be recognised, development expenditure is recognised as an expense in the 
period in which it is incurred.
d) Research activities
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
e) Impairment of property, plant and equipment and intangible assets
At each balance sheet date, the Group reviews the carrying amounts of its property, plant and equipment and individual intangible 
assets for any indication that these assets have suffered an impairment loss. If any such indication exists, the recoverable amount 
of the asset is estimated in order to determine the extent of the impairment loss, if any. The recoverable amount is the higher 
of the fair value less costs to sell or value in use. 
Fair value is measured for self‑ published games by discounting future cashflows. For all other assets a review of the expected 
useful economic life is undertaken and compared to that implied in the amortisation rate. FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
32
NOTES TO THE FINANCIAL STATEMENTS 
CONTINUED
FINANCIAL STATEMENTS
3. Principal accounting policies continued
f) Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is based on the total accumulated project cost less the 
amount expensed as cost of sales, being an allocation to match sales revenue, subject to an economic benefit test of milestone 
delivery for long‑ term contracts. Economic benefit tests are measured by reference to contractual terms such as acceptance and 
approval of a milestone by the customer. Net realisable value is based on estimated selling value less additional cost to completion 
and distribution. Provisions are made for obsolete or defective elements (which do not meet quality criteria and have to be replaced 
in full) of cost where appropriate and are recognised as an expense in the period in which the write down or loss occurs.
Inventory also comprises stock of merchandise items held at a third party distribution location, these are reviewed at the balance 
sheet date for an indication of slow moving and defective items. Where such an indication exists a suitable provision is made. 
g) Financial instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered 
into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its 
financial liabilities. Equity instruments do not include a contractual obligation to deliver cash or other financial assets to another 
entity. Any instrument that does have the obligation to deliver cash or another financial asset to another entity is classified as a 
financial liability. 
Financial liabilities are presented under liabilities on the statement of financial position.
Financial assets
Financial assets comprise assets trade receivables, other receivables and cash and cash equivalents.
Trade and other receivables are recognised initially at fair value and measured subsequent to initial recognition at amortised cost 
using the effective interest method, less provision for impairment. Any change in their value through impairment or reversal of 
impairment is recognised in the income statement.
Provision against trade receivables is made when there is objective evidence that the Group will not be able to collect all amounts 
due to it in accordance with the original terms of those receivables. The amount of the write down is determined as the difference 
between the assets carrying amount and the present value of estimated future cashflows discounted at the financial assets 
original effective interest rate.
Financial liabilities
The Group’s financial liabilities include trade and other payables and convertible loan notes.
Financial liabilities are initially measured at fair value and are subsequently measured at amortised cost, using the effective interest 
rate method, except for financial liabilities designated at fair value through profit and loss (FVTPL). All derivative financial instruments 
that are not designated and effective as hedging instruments are accounted for at FVTPL.
The convertible loan notes issued in the year are recognised as financial liabilities rather than equity as their characteristics are 
more akin to debt rather than equity. All the convertible loan notes converted to ordinary shares upon listing on AIM. 
Fair value measurements recognised in the balance sheet
Financial instruments that are measured subsequent to initial recognition at fair value have been classified using a fair value 
hierarchy that reflects the significance of the inputs used in measuring the fair value of those instruments. The fair value 
hierarchy has the following levels:
• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets 
or liabilities;
• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are 
observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that 
are not based on observable market data (unobservable market inputs). FINANCIAL STATEMENTS
ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
33
3. Principal accounting policies continued
g) Financial instruments continued
Share capital and reserves
Share capital represents the nominal value of the shares that have been issued.
Share premium – Share premium represents the excess over nominal value of the fair value of consideration received for equity 
shares, net of expenses of the share issue.
Option reserve – This reserve represents equity‑ settled share‑ based employee remuneration until such share options are exercised.
Foreign exchange reserve – This represents the exchange difference on consolidation of overseas subsidiaries.
Retained earnings – Retained earnings include all current and prior period retained earnings.
h) Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and bank deposits available on demand.
i) Income taxes
Income tax expense comprises the current and deferred tax. 
Current income tax liabilities comprise those obligations to fiscal authorities relating to the current or prior reporting period 
that are unpaid at the statement of financial position date. They are calculated according to the tax rates and tax laws applicable 
to the fiscal periods to which they relate, based on the taxable profit for the year. All changes to current tax assets or liabilities 
are recognised as a component of tax expense in the income statement, except where it relates to items outside profit or loss. 
Tax relating to items in other comprehensive income is recognised in other comprehensive income and tax relating to items 
directly in equity is recognised directly in equity.
Deferred income taxes are calculated using the liability method on temporary differences. This involves the comparison of 
the carrying amounts of assets and liabilities in the financial statements with their respective tax bases. In addition, tax losses 
available to be carried forward as well as other income tax credits to the Group are assessed for recognition as deferred tax 
assets. However, deferred tax is not provided on the initial recognition of an asset or liability, unless the related transaction 
is a business combination or affects tax or accounting profit. 
Deferred tax liabilities are always provided in full. Deferred tax assets are recognised to the extent that it is probable that the 
underlying deductible temporary differences will be able to be offset against future taxable income. Deferred tax assets and 
liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective period of realisation, 
provided they are enacted or substantively enacted at the reporting date.
Deferred tax is recognised as a component of tax expense in the income statement. Deferred tax relating to items directly in 
equity is recognised directly in equity and deferred tax relating to items recognised in other comprehensive income is recognised 
in other comprehensive income.
j) Operating lease agreements
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are 
charged to the income statement net of any incentives received from the lessor on a straight line basis over the period of the lease. 
k) Revenue recognition
Revenue represents amounts derived from the design, production and sale of computer games software and related technology 
which fall within the Group’s ordinary activities, exclusive of value added tax and other similar sales taxes. Revenue is measured 
by reference to the fair value of consideration received or receivable.
Revenue includes income from the design and production of computer software contracted for customers, royalties from 
published games, income from the release of self‑ published games, and crowd‑ sourced funding pledges.
Revenues on project contracts are mapped against the expected profile of costs. In most circumstances these are closely correlated.
Where there is close correlation between the revenue and cost profile, the milestones within the project contracts are considered 
to approximate the stage of completion of the obligations under the contract and therefore recognition of revenue based on these 
milestones provides a sufficiently accurate approximation of recognition of revenue on a stage of completion basis, except for 
where there are significant acceptance requirements. Under such arrangements, revenue is recognised when the Group has 
substantially met all its performance obligations and the customer has approved the relevant milestone. FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
34
NOTES TO THE FINANCIAL STATEMENTS 
CONTINUED
FINANCIAL STATEMENTS
3. Principal accounting policies continued
k) Revenue recognition continued
Where there is less correlation between the revenue and cost profile, revenue from customer specific contracts are recognised 
on the stage of completion of each assignment (milestone) at the period end date compared to the total estimated service based 
on the estimate of labour and other costs to be provided over the entire contract where the outcome can be estimated reliably. 
If a contract outcome cannot be estimated reliably, revenues are recognised equal to costs incurred, to the extent that costs are 
expected to be recovered. An expected loss on a contract is recognised immediately in the income statement.
Additionally project contracts may contain provision for the pass through of subcontract costs, these are recharged on a matching 
basis in the same period as the underlying cost.
Revenue earned from royalties under distribution agreements are recognised in the period that the sales to the end customer 
are made, estimated on an accruals basis as royalty reports are generally per calendar quarter. 
Revenue from released self‑ published titles is recognised on download of the game or part thereof (micro transaction) from the 
sales channel and/or distribution platform.
Revenue from crowd‑ funding for self‑ published titles is normally recognised when the Group meets its performance obligations. 
Where there is no clear performance obligation, for example, membership of a development forum, this is taken as revenue over 
the expected development period of the game on a straight line basis.
l) Employee benefits
All accumulating employee compensated absences that are unused at the balance sheet date are recognised as a liability. 
The parent company operates a defined contribution retirement benefit scheme which was commenced on 1 January 2014 
ahead of the Company’s expected auto enrolment date. Payments to defined contribution retirement benefit schemes are 
charged as an expense in the period to which they relate. 
m) Share-based payment transactions
Share options are periodically granted to staff. Share options are measured at fair value at the date of issue and recognised over 
the vesting period of the option. Fair value is measured using the Black‑ Scholes option pricing model. The expected life used in 
the model is an estimate of the likely average expiry date of the options by reference to the current rate of exercise by employees. 
The share‑ based payment is recognised as an expense in profit or loss, together with a corresponding credit to a share‑ based 
payment reserve in equity. This expense is recognised on a straight line basis based on the Group’s estimate of the number of 
shares that will vest. Estimates are subsequently revised if there is any indication that the number of share options expected to 
vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period. No adjustment 
is made to any expense recognised in prior periods if share options ultimately exercised are different to that estimated on vesting. 
Upon exercise of share options, the proceeds received up to the nominal value of the shares issued are allocated to share capital 
with any excess being recorded as share premium.
n) Foreign currencies
Transactions denominated in a foreign currency are translated at the rate of exchange ruling at a month‑ end rate in order to 
approximate to actual rate for the relevant transaction date. Monetary assets and liabilities denominated in foreign currencies 
are translated at the rate of exchange ruling at the statement of financial position date.
Foreign exchange differences are charged to the income statement in the period in which they arise.
The assets and liabilities in the financial statements of foreign subsidiaries are translated at the rate of exchange ruling at the 
statement of financial position date. Income and expenses are translated at the actual exchange rate. The exchange differences 
arising from the retranslation of the opening net investment in subsidiaries are recognised in other comprehensive income and 
are accumulated in the foreign currency reserve in equity. On disposal of a foreign operation, the cumulative translation differences 
are transferred to the profit and loss as a reclassification adjustment as part of the gain or loss on disposal.
o) Segment reporting
The Group identifies only one operating segment as the business is managed as a whole. For management purposes the chief 
operating decision maker reviews the financial information which is consistent with that reported in its financial statements, 
with financial performance measured on the basis of earnings before interest, tax, depreciation and amortisation. Assets are 
not directly attributable to any separable activity.  FINANCIAL STATEMENTS
ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
35
3. Principal accounting policies continued
p) Provisions
Provisions for dilapidations are recognised when the Group has a present legal or constructive obligation as a result of a past event, 
it is probable that an outflow of economic resources will be required from the Group and amounts can be estimated reliably. 
Timing or amount of the outflow may be uncertain.
Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable 
evidence available at the reporting date, including the risks and uncertainties associated with the present obligation.
q) Standards and interpretations not yet applied
The following new standards, which are yet to become mandatory, have not been applied in the financial statements:
• IFRS 9 “Financial Instruments” (effective 1 January 2014)
• IFRS 10 “Consolidated Financial Statements” (effective 1 January 2014)
• IFRS 11 “Joint Arrangements” (effective January 2014)
• IFRS 12 “Disclosure of Interests in Other Entities” (effective 1 January 2014)
• IAS 27 (Revised) “Separate Financial Statements” (effective 1 January 2014)
• IAS 28 (Revised) “Investments in Associates and Joint Ventures” (effective 1 January 2014)
• Investment Entities – Amendments to IFRS 10, IFRS 12 and IAS 27 (effective 1 January 2014)
• Offsetting Financial Assets and Financial Liabilities – Amendments to IAS 32 (effective 1 January 2014)
• Recoverable Amount Disclosures for Non‑ Financial Assets (Amendments to IAS 36) (effective 1 January 2014)
• Novation of Derivatives and Continuation of Hedge Accounting (Amendments to IAS 39) (effective 1 January 2014)
Based on the Group’s current business model and accounting policies, management does not expect material impacts on the 
financial information when the standards become effective. The Group does not intend to apply these pronouncements early.
4. Significant accounting estimates and key judgements
The key assumptions concerning the future and other key sources of estimation uncertainty 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:
a) Intangible assets
The Group invests heavily in research and development. The identification of development costs that meet the criteria for 
capitalisation is dependent on management’s judgement and knowledge of the work done. Development costs of software 
tools within a project that can be utilised generically are separately identified. Judgements are based on the information available 
at each period end. Economic success of any development is assessed on a reasonable basis but remains uncertain at the time 
of recognition as it may be subject to future technical problems and therefore a review for indicators of impairment is completed 
by product at each period end date. The net book values of the Group and Company intangible assets including rights acquired 
at 31 May 2014 are £10,961,795 (2013: £3,449,515).
Intangible assets are subject to amortisation and reviewed for impairment whenever events or changes in circumstances indicate 
that the carrying amount may not be recoverable, for example, a decision to suspend a self‑ published title under development. 
An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. 
The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing 
impairment, assets are reviewed by project for which there are separately identifiable cashflows.
Games developed to be self‑ published are reviewed for impairment based on the status at the end of each financial year and at 
the half year against a prudent level of the projected net earnings. 
In respect to amortisation, normally self‑ published titles are amortised on completion of the game, however an exception to this 
occurs when project funding is obtained via innovative crowd‑ funded platforms, such as Kickstarter. Such funding is generally seen 
as ‘contributing to make the game happen’ and requires the Company to set up a number of pledge levels which include a donation 
element. When ‘donation and intangible’ elements of pledge levels are recognised as revenue, an equivalent amount of amortisation 
charged reflecting this ‘contribution element’. The pledge levels also include delivery of a number of ‘early versions’ of the game, 
an estimated and prudent cost of sale is applied as amortisation. In the case of Elite: Dangerous 75% was used. In the financial 
year to May 2014 £271,143 of amortisation was recognised for these elements of Elite: Dangerous (May 2013: £145,280). FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
36
NOTES TO THE FINANCIAL STATEMENTS 
CONTINUED
FINANCIAL STATEMENTS
4. Significant accounting estimates and key judgements continued
b) T rade receivables and recovery of work in progress
Trade receivables are stated net of any impairment for bad and doubtful debts, based on the Group’s best estimate of the 
likelihood of recovery on a specific basis. Recovery of work in progress is dependent on the successful completion of projects. 
Judgement is therefore needed to be applied for projects which are in progress regarding the ability of the Group to complete 
and deliver the project in accordance with contractual terms.
Where trade receivables rely on non cash‑ based methods of recoupment such as an offset of commission from Frontier selling 
jointly held IP, these balances are assessed for fair values against separately identifiable cashflows.
c) Deferred tax
A deferred tax asset is recognised where the Group considers it probable that future tax profits will be available against which 
the tax credit will be utilised in the future. This specifically applies to tax losses and to outstanding vested share options at the 
statement of financial position date. In estimating the amount of the deferred tax asset that should be recognised, the Directors 
make judgements based on current forecasts about the amount of future taxable profits and the timings of when these will be realised. 
A deferred tax asset is currently not being recognised in full due to the unpredictability of future taxable trading profits.
d) Revenue recognition
Significant management judgement is applied in determining the allocation and timing of the recognition of revenue on contracts. 
In this process management takes into account milestones, actual work performed and further obligations and costs expected to 
complete the work. Management monitors the progress and has regular dialogue with customers to confirm the project status.
Where self‑ published titles have an element of pre‑ funded development costs obtained through crowd‑ funding sources, recognition 
is made by reference to delivery of individual pledge levels. Revenue stemming from the sale of ‘early versions’ of a game are 
recognised from the date of release of the ‘early version’ to the expected date of full game release on a straight line basis.
e) Acquisition of Professional Practice Automation LLP (PPA)
The acquisition of PPA LLP is not considered to be a business combination as the purpose of the transaction was to acquire the 
franchise rights held by PPA LLP. 
5. Segment information
The Group identifies operating segments based on internal management reporting that is regularly reviewed by the chief operating 
decision maker and reported to the Board. The chief operating decision maker is the Chief Executive Officer.
Management information is reported as a single operating segment being the design and production of computer software 
irrespective of platform or route to market. Resources are managed on the basis of the Group as a whole. 
The Group’s revenues from external customers are divided into the following geographical areas:
31 May 2014
£’000
31 May 2013
£’000
United Kingdom (country of domicile) 1,807 113
United States of America 7,470 11,684
Rest of the world 264 275
9,541 12,072
At 31 May 2014 £43,342 of non‑ current assets are based in Canada (2013: £72,574), with the remainder in the UK. 
In 2014 there were two customers whose revenue accounted for more than 10% of the Group and Company’s total revenue. 
Both customers are based in the United States of America; one of these customers accounts for 70% of revenue (2013: 94%) 
and the other customer accounts for 18% of revenue (2013: 0%).
All material revenue is categorised as either ‘self‑ published’, ‘publishing’ or royalties. 
31 May 2014
£’000
31 May 2013
£’000
Publishing 7,707 11,355
Self‑ published 469 511
Royalties 1,362 203
Other 3 3
9,541 12,072 FINANCIAL STATEMENTS
ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
37
5. Segment information continued
Adjusted EBITDA before material exceptional items is a key performance indicator for the Group and is also used by the 
Chief Executive Officer and is calculated as follows:
31 May 2014
£’000
31 May 2013
£’000
Operating (loss)/profit (1,705) 1,052
Depreciation 225 151
Amortisation and impairment 1,802 1,650
EBITDA 322 2,853
Share‑ based compensation 286 416
Funding costs/listing expenses 217 308
Dilapidation provision 37 37
Fair value adjustments 32 —
Gain on investment (21) —
Canada set‑ up fees — 10
Adjusted EBITDA 872 3,624
6. (Loss)/profit before tax
31 May 2014
£’000
31 May 2013
£’000
This is stated after charging/(crediting):
Amortisation and impairment on intangibles 1,802 1,650
Depreciation of owned property, plant and equipment: 225 151
Research and development costs expensed 371 603
Auditor remuneration:
Audit services – statutory audit 30 37
Non‑ audit services – tax services 6 4
 – other services 67 133
Operating leases – land and buildings 527 495
Foreign exchange loss/(gain) 336 (26) FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
38
NOTES TO THE FINANCIAL STATEMENTS 
CONTINUED
FINANCIAL STATEMENTS
7 . Intangible assets
Group and Company 
The Group and Company intangible assets comprise capitalised development tools and self‑ published software from internal 
development activities and acquired software licences. The carrying amounts for the reporting periods under review can be 
analysed as follows:
Development 
tools and licences
£’000
Self‑ published 
software
£’000
Third party 
software
£’000
Total
£’000
Cost 
At 31 May 2012 5,023 854 737 6,614
Additions 695 1,013 75 1,783
Disposals (768) — — (768)
Transfer to tangibles — — (17) (17)
Transfer from tangibles — — 14 14
Adjustment — (78) — (78)
At 31 May 2013 4,950 1,789 809 7,548
Additions – arising from internal development 1,214 2,821 147 4,182
Additions – acquired separately — 5,148 — 5,148
Disposals (1,637) — — (1,637)
Adjustment — (16) — (16)
Impairment — (276) — (276)
At 31 May 2014 4,527 9,466 956 14,949
Amortisation and impairment
At 31 May 2012 2,454 292 537 3,283
Charge for the period 1,093 446 111 1,650
Disposals (768) — — (768)
Transfer to tangibles — — (1) (1)
Transfer from tangibles — — 12 12
Adjustment — (78) — (78)
At 31 May 2013 2,779 660 659 4,098
Charge for the period 883 506 137 1,526
Disposals (1,637) — — (1,637)
At 31 May 2014 2,025 1,166 796 3,987
Net book value at 31 May 2014 2,502 8,300 160 10,962
Net book value at 31 May 2013 2,171 1,129 150 3,450
All amortisation charges, impairments or reversals (if any) are included within cost of sales.
The impairment arose from a review of the monetisation profile of the Coaster Crazy franchise.
The additions acquired separately were the Elite rights acquired from Professional Practice Automation LLP.
8. Investment in subsidiary undertaking
The Company holds a £66 investment in Frontier Developments Inc, a company registered in Canada. This represents 100% 
of the ordinary share capital of the company which is engaged in non‑ game applications and video games for the interactive 
entertainment sector. FINANCIAL STATEMENTS
ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
39
9. Property, plant and equipment
Group 
Fixtures 
and fittings
£’000
Computer 
equipment
£’000
Leasehold 
improvements
£’000
Total
£’000
Cost 
At 31 May 2012 221 955 4 1,180
Additions 19 226 6 251
Disposals — (5) — (5)
Transfer from intangibles — 17 — 17
Transfer to intangibles — (14) — (14)
At 31 May 2013 240 1,179 10 1,429
Additions 34 220 — 254
Disposals (1) — — (1)
At 31 May 2014 273 1,399 10 1,682
Depreciation
At 31 May 2012 153 838 4 995
Charge for the period 33 117 1 151
Disposals — (5) — (5)
Transfer from intangibles — 1 — 1
Transfer to intangibles — (12) — (12)
At 31 May 2013 186 939 5 1,130
Charge for the period 45 179 1 225
Disposals (1) — — (1)
At 31 May 2014 230 1,118 6 1,354
Net book value at 31 May 2014 43 281 4 328
Net book value at 31 May 2013 54 240 5 299 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
40
NOTES TO THE FINANCIAL STATEMENTS 
CONTINUED
FINANCIAL STATEMENTS
9. Property, plant and equipment continued
Company 
Fixtures 
and fittings
£’000
Computer 
equipment
£’000
Leasehold 
improvements
£’000
Total
£’000
Cost 
At 31 May 2012 221 955 4 1,180
Additions 11 137 — 148
Disposals — (5) — (5)
Transfer from intangibles — 17 — 17
Transfer to intangibles — (14) — (14)
At 31 May 2013 232 1,090 4 1,326
Additions 27 209 — 236
Disposals (1) — — (1)
At 31 May 2014 258 1,299 4 1,561
Depreciation
At 31 May 2012 153 838 4 995
Charge for the period 31 89 — 120
Disposals — (5) — (5)
Transfer from intangibles — 1 — 1
Transfer to intangibles — (12) — (12)
At 31 May 2013 184 911 4 1,099
Charge for the period 40 139 — 179
Disposals (1) — — (1)
At 31 May 2014 223 1,050 4 1,277
Net book value at 31 May 2014 35 249 — 284
Net book value at 31 May 2013 48 179 — 227
Depreciation charges are apportioned to the income statement as follows:
Consolidated year ended Company year ended
31 May 2014
£’000
31 May 2013
£’000
31 May 2014
£’000
31 May 2013
£’000
Charge 
Cost of sales 196 89 150 88
Administration expenses 29 62 29 32
Total 225 151 179 120 FINANCIAL STATEMENTS
ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
41
10. Operating leases as lessee
At each period end the future minimum operating lease payments were as follows:
Consolidated year ended Company year ended
31 May 2014
£’000
31 May 2013
£’000
31 May 2014
£’000
31 May 2013
£’000
Minimum lease payments due within one year 487 535 372 415
Minimum lease payments due within one to five years 271 801 28 400
Total 758 1,336 400 815
Group lease payments recognised as an expense during the year ended 31 May 2014: £526,599 (2013: £495,269).
The lease payments relate to the rental contracts for the office buildings, which expire April 2015 and August 2015; negotiation 
for new leases to replace these has commenced. The lease signed in October 2012 for the Canadian subsidiary expires 
September 2017.
Company lease payments recognised as an expense during the year ended 31 May 2014: £415,983 (2013: £415,983).
The lease payments relate to the rental contracts for the office buildings, which expire April 2015 and August 2015. The Group’s 
and Company’s operating lease agreements do not contain any contingent rent clauses. None of the operating lease agreements 
contain renewal or purchase options or escalation clauses or any restrictions regarding dividends, further leasing or additional debt.
11. Financial assets and liabilities
The carrying amounts presented in the statement of financial position relate to the following categories of financial assets and liabilities:
Consolidated year ended Company year ended
31 May 2014
£’000
31 May 2013
£’000
31 May 2014
£’000
31 May 2013
£’000
Financial assets
Loans and receivables
Trade and other receivables 2,259 1,808 2,904 2,046
Cash and cash equivalents 8,612 7,155 7,997 6,819
Total 10,871 8,963 10,901 8,865
Consolidated year ended Company year ended
31 May 2014
£’000
31 May 2013
£’000
31 May 2014
£’000
31 May 2013
£’000
Financial liabilities
Financial liabilities measured at amortised cost:
Trade and other payables 951 1,122 1,398 1,050
Designated at fair value through profit and loss:
Interest‑ free loan 135 — — —
Convertible loan notes — 1,129 — 1,129
Total 1,086 8,963 1,398 8,865
The financial liability associated with the convertible loan notes comprised interest cashflows payable at 8% and an embedded 
derivative liability to convert to a variable number of shares. The loan notes converted to equity on the admission to AIM. 
During the year the Company received CD$301,530 in 0% interest funding from the Atlantic Canada Opportunities Agency (ACOA). 
Further funding can be claimed next financial year up to a maximum of borrowing of CD$500,000. The funding is scheduled 
to be repaid over 60 months beginning in March 2015 at a stated monthly payment of CD$8,334. FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
42
NOTES TO THE FINANCIAL STATEMENTS 
CONTINUED
FINANCIAL STATEMENTS
12. Deferred tax assets and liabilities
Deferred taxes arising from temporary differences can be summarised as follows:
Consolidated year ended Company year ended
31 May 2014
£’000
31 May 2013
£’000
31 May 2014
£’000
31 May 2013
£’000
Accelerated capital allowances 503 520 505 522
Short‑ term temporary differences (restricted) (429) (39) (505) (69)
Tax losses (restricted) — (453) — (453)
Total liability 74 28 — —
Balance brought forward 28 — — —
Effect of tax rate change on opening balance — — — —
Effect of exchange rate change on opening balance 1 — — —
Movement in year 45 28 — —
Balance carried forward liability 74 28 — —
No deferred tax asset at 31 May 2014 has been recognised in the statement of financial position for the Group. The deferred tax 
liability at 31 May 2014 is £73,781 (2013: £27,793), being wholly attributable to the Canadian entity.
The table below summarises the deferred tax assets for the Group and Company which have not been recognised in the financial 
statements as only a proportion of the tax losses are anticipated to crystallise or be able to be used in the foreseeable future. 
Total UK tax losses available at 31 May 2014 amount to £6.7 million (2013: £3.7 million). Total UK based short‑ term temporary 
differences available at 31 May 2014 amount to £632,210 (2013: £69,000).
Consolidated year ended Company year ended
31 May 2014
£’000
31 May 2013
£’000
31 May 2014
£’000
31 May 2013
£’000
Deferred tax asset not provided
Short‑ term temporary differences (125) — (127) —
Losses (996) (397) (996) (397)
Total (1,121) (397) (1,123) (397)
13. Inventories
Inventories recognised in the statement of financial position can be analysed as follows:
Consolidated year ended Company year ended
31 May 2014
£’000
31 May 2013
£’000
31 May 2014
£’000
31 May 2013
£’000
Work in progress 3 — 3 —
Merchandise 12 — 12 —
Total inventory 15 — 15 —
There is no material difference between the replacement cost of inventory and the amounts stated above.
For the year ended 31 May 2014 a total of £16,061 was expensed for merchandise (2013: £nil); for work in progress an amount 
of (£3,339) was (credited) in profit and loss cost of sales (2013: £94,366 expensed).  FINANCIAL STATEMENTS
ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
43
14. T rade and other receivables
Trade and other receivables recognised in the statement of financial position can be analysed as follows: 
Consolidated year ended Company year ended
31 May 2014
£’000
31 May 2013
£’000
31 May 2014
£’000
31 May 2013
£’000
Trade receivables, gross 953 1,580 953 1,580
Intercompany receivable — — 706 325
Trade receivables, net 953 1,580 1,659 1,905
Other receivables 1,306 228 1,245 141
Financial assets 2,259 1,808 2,904 2,046
Prepayments 532 230 515 191
VAT and other taxes 173 44 28 —
Non-financial assets 705 274 543 191
Trade and other receivables 2,964 2,082 3,447 2,237
All amounts are short term. The net carrying value of trade receivables is considered a reasonable approximation of fair value. 
Within other receivables is an amount due from Atari S.A. for royalties arising from a distribution agreement. The terms of this 
agreement allow recoup as a commission from the Group distributing the product on its own e‑ commerce site or via non‑ PC 
platforms. This receivable has been determined to be Level 3 in the hierarchy by applying a net discounted cashflow against 
expected incomes and costs to completion. As a result of this review an expense of £62,630 has been recognised in the income 
statement. An amount of £629,502 was recorded within other receivables being royalties due from Microsoft under the game 
agreement for Kinect Disneyland Adventures; these were received in August 2014.
Group
Neither past due
Past due but not impaired
Total
£’000
nor impaired
£’000
0–90 days
£’000
>90 days
£’000
May 2014 953 953 — —
May 2013 1,580 1,580 — —
No receivables are past their due date and the balances comprise receivables from highly credit rated customers.
Company
Neither past due
Past due but not impaired
Total
£’000
nor impaired
£’000
0–90 days
£’000
>90 days
£’000
May 2014 1,659 1,659 — —
May 2013 1,905 1,905 — —
No receivables are past their due date and the balances comprise receivables from highly credit rated customers. FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
44
NOTES TO THE FINANCIAL STATEMENTS 
CONTINUED
FINANCIAL STATEMENTS
15. Other short-term assets
Other short‑ term financial assets comprise:
Consolidated year ended Company year ended
31 May 2014
£’000
31 May 2013
£’000
31 May 2014
£’000
31 May 2013
£’000
Investment in shares 33 — 33 —
Software applications 6 — 6 —
Current tax assets 67 — 6 —
Other short-term assets 106 — 45 —
The investment in shares was acquired via an agreement with Atari S.A. (quoted on the Paris Stock Exchange) in respect to 
balances owing under their Chapter 11 administration process. Fair value has been applied by using Level 1 of the hierarchy 
in respect to the share price ruling at balance sheet date, resulting in an expense to the income statement of £22,646.
Software applications were acquired under the asset acquisition from Professional Practice Automation LLP; the Group is in 
discussions to sell these applications to third parties.
16. Cash and cash equivalents
Cash and cash equivalents include the following components:
Consolidated year ended Company year ended
31 May 2014
£’000
31 May 2013
£’000
31 May 2014
£’000
31 May 2013
£’000
Cash at bank and in hand
GBP 5,410 5,411 5,411 5,411
USD 1,170 1,218 1,169 1,217
EUR 38 22 38 22
CAD 1,994 504 1,379 169
Financial assets 8,612 7,155 7,997 6,819
Cash at bank earns interest at a floating rate based on the length of deposit at standard commercial terms. The net carrying value 
of cash and cash equivalents equates to fair value.
17 . Equity
Share capital
Group and Company movements in share capital
Movements in ordinary shares are as follows:
2014 2013
Number
’000
Value
’000
Number
’000
Value
’000
At 1 June 2012 and 31 May 2013
Ordinary shares of 0.5 pence (0.1 pence) 25,234 127 12,364 12
Shares issued on option exercises 338 1 253 1
Shares issued pre‑ IPO 132 1 — —
Shares re‑ denomination December 2012 — — 12,617 114
Shares issued upon listing on AIM 5,678 28 — —
Shares issued as non‑ cash consideration 2,002 10 — —
At 31 May 2014 33,384 167 25,324 127 FINANCIAL STATEMENTS
ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
45
17 . Equity continued
Share capital continued
Group and Company movements in share capital continued
During the year to 31 May 2014 the following share issues were made:
On 6 June 2013 131,580 ordinary shares of 0.5 pence were issued as fully paid at a premium of 94.5 pence per share.
On 15 July 2013 the Group listed on AIM and issued 3,169,292 ordinary shares of 0.5 pence were issued as fully paid at 
a premium of 126.5 pence per share. At the same time 2,509,504 ordinary shares of 0.5 pence were issued as fully paid 
in respect to the convertible loan notes at a premium of 107.45 pence.
The equity issue related costs expensed to the share premium account as part of the listing to AIM were £273,888.
From 16 July 2013 to 31 May 2014 337,802 ordinary shares of 0.5 pence were allotted as fully paid at an average premium of 
76.3 pence being the exercise of share options by employees. The average market value was 201.5 pence on the days of exercise.
On 6 May 2014 2,001,573 ordinary shares of 0.5 pence were issued as fully paid as the consideration paid to Professional Practice 
Automation LLP for the acquisition of its assets. The market value on the day of approval was 257.5 pence.
18. Employee remuneration
Expenses recognised for employee benefits (including Directors) are analysed below.
Staff costs for all employees, including Directors, consist of:
31 May 2014
£’000
31 May 2013
£’000
Wages and salaries 8,577 7,517
Social security costs 876 774
Pension costs 18 —
Share‑ based compensation 180 416
9,651 8,707
Included in the above payroll costs for the year ended 31 May 2014 is £4,027,605 (2013: £1,621,571) capitalised within intangible 
fixed assets (note 7). Pension costs relate to contributions to the parent company’s new defined contribution scheme set up 
ahead of auto enrolment.
The average number of employees, including Directors, during the period was:
31 May 2014
£’000
31 May 2013
£’000
Research and development 233 212
General and administrative 12 14
245 226
Remuneration of Directors
31 May 2014
£’000
31 May 2013
£’000
Directors’ emoluments 384 318
Non‑ Executive fees 28 14
Non‑ Executive consultancy fees 34 24
Emoluments of highest paid Directors
31 May 2014
£’000
31 May 2013
£’000
Emoluments per Director 128 99 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
46
NOTES TO THE FINANCIAL STATEMENTS 
CONTINUED
FINANCIAL STATEMENTS
18. Employee remuneration continued
Remuneration of key management personnel
31 May 2014
£’000
31 May 2013
£’000
Short‑ term employee benefits
Salaries including bonuses 1,012 755
Social security 128 101
Total short‑ term employee benefits 1,140 856
Non‑ Executive fees 65 38
Share‑ based compensation charge 212 183
Key management of the Group are the Board and senior management (functional heads).
Number of key management personnel, including Directors, at the statement of financial position date 14 11
A total of 42,000 share options were issued in the year to key management under the Company’s new Company Share Option Plan. 
The number of options exercised for ordinary shares in the year ended 31 May 2014 was 89,400 from previous EMI grants.
19. Share options
The Group has a new Company Share Option plan for employees, under which options may be granted to employees (including 
Directors) to subscribe for ordinary shares in the Group. The scheme was approved in January 2014. 
Date of grant Scheme type
Period when 
exercisable
Price in 
pence
2014 
Number
2013 
Number
6 December 2005 2002 EMI scheme 2006–2015 67 675,475 843,800
30 July 2013 2013 EMI scheme 2013–2011 89 1,036,523 1,214,000
30 January 2013 Unapproved 2014–2023 89 34,000 100,000
15 May 2013 2013 EMI scheme 2014–2023 95 230,000 240,000
15 May 2013 Unapproved 2014–2023 95 — 20,000
21 March 2014 Company Share Option Plan 2017–2024 224.5 251,000 —
2,226,998 2,417,800
A number of share warrants were issued as part of the pre‑ IPO and IPO process as follows:
Date of grant Warrant type
Period when 
exercisable
Price in 
pence
2014 
Number
2013 
Number
8 July 2013 Unapproved pre‑ IPO warrants* 2013–2023 95 65,790 —
15 July 2013 Unapproved IPO warrants** 2013–2015 127 232,832 —
15 July 2013 Unapproved IPO warrants* 2013–2023 127 147,638 —
446,260 —
* These share options were issued to the Non‑ Executive Directors (including Rockspring which is a company controlled by David Gammon) at the prevailing   
 market price as follows:
Non‑ Executive
8 July 
Number
15 July 
Number
Rockspring 52,632 118,100
Jonathan Milner 13,158 29,528
**  Of these share options 217,084 were issued to Canaccord Genuity Limited for services rendered as part of the IPO process and 15,748 to Adam Glinsman for services 
rendered as part of the IPO process, a pre‑ IPO investor upon listing at the flotation price FINANCIAL STATEMENTS
ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
47
19. Share options continued
Movements in the number of employee and non‑ executive share options outstanding and their related weighted average 
exercise price are as follows:
Group and Company year ended
31 May 2014 31 May 2013
Number
Average exercise 
price in pence Number
Average exercise 
price in pence
Opening balance 2,417,800 82.0 1,869,800 50.2
Adjustment 30,000 82.0 — —
Granted 464,428 175.2 1,626,000 90.0
Exercised (337,802) 76.8 (505,382) 33.0
Forfeited (134,000) 90.0 (572,618) 44.0
Closing balance 2,440,426 100.0 2,417,800 82.0
Exercisable at the year end 2,189,426 85.6 843,800 67.0
The weighted average share price at the date of exercise of the share options was 201.5 pence.
The share options at the end of May 2014 including those for Non‑ Executive Directors have a weighted average contractual life 
as follows:
Group and Company year ended
31 May 2014 31 May 2013
Expiry date
Exercise price 
per share
Pence
Options
Number
Weighted 
average
remaining
 contractual life
Months
Options
Number
Weighted 
average 
remaining
 contractual life
Months
December 2015 67 675,475 19 843,800 31
July 2022 89 1,036,523 96 1,214,000 108
January 2023 89 34,000 104 100,000 116
May 2023 95 230,000 108 260,000 120
July 2023 95 65,790 110 — —
July 2023 127 147,638 110 — —
March 2024 224.5 251,000 118 — —
Total 2,440,426 79 2,417,800 83
Under the rules of the new Company Share Option Plan, options are not exercisable until three years from the date of the grant. 
There are no performance conditions attaching to the options. The only vesting condition is continued service in the Company.
For the warrants issued, the pre‑ IPO related options issued to Non‑ Executive Directors and the IPO options issued to third parties 
vested immediately. The IPO related options issued to Non‑ Executive Directors vest after one year. FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
48
NOTES TO THE FINANCIAL STATEMENTS 
CONTINUED
FINANCIAL STATEMENTS
19. Share options continued
Fair value assumptions of share-based payments 
The fair value of services received in return for share options is measured by reference to the fair value of share options granted. 
The estimate of fair value measured using the Black‑ Scholes model. Details of the fair value granted in the period, together with 
the assumptions used in determining the fair value are summarised below:
July 2013 
Pre‑ IPO
July 2013 
IPO March 2014
Share price at date of grant (pence) 95 127 224.5
Exercise price 95 127 224.5
Expected time to expiry (years) 10 10 7.94
Risk‑ free interest rate (%) 4.3 4.3 4.3
Expected dividend yield on shares (%) 0 0 0
Expected volatility of share price (%) 20 20 40
Fair value of options granted (pence) 68.7 53.7 122.6
The assumptions for the March 2014 are based on statistical analysis of share price data from the listing on AIM from 15 July 2014 
to the date of grant, hence the changes to volatility and expected life. 
20. T rade and other payables
Trade and other payables recognised in the statement of financial position can be analysed as follows:
Consolidated year ended Company year ended
31 May 2014
£’000
31 May 2013
£’000
31 May 2014
£’000
31 May 2013
£’000
Trade payables 463 183 463 153
Intercompany payable — — 500 30
Other taxation and social security 270 284 254 285
Accruals 474 1,464 437 1,413
Convertible loan note — 1,129 — 1,129
Total trade and other payables 1,207 3,060 1,654 3,010
Trade and other payables are due within one year and with the exception of the convertible loan note are non‑ interest bearing. 
The convertible loan note carries an interest rate of 8% per annum. The loan notes were converted into ordinary shares on the 
AIM IPO at a discount rate of 15% of the listing price. The carrying values of trade and other payables are considered to be a 
reasonable approximation of fair value. FINANCIAL STATEMENTS
ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
49
21. Deferred income
Deferred income in the statement of financial position can be analysed as follows:
Consolidated year ended Company year ended
31 May 2014
£’000
31 May 2013
£’000
31 May 2014
£’000
31 May 2013
£’000
Contractual 268 — 268 —
Self‑ published 2,188 1,283 2,188 1,283
Deferred income 2,456 1,283 2,456 1,283
Deferred income is due within one year (in the prior year due over one year from the self‑ published source). The carrying values 
of deferred income are considered to be a reasonable approximation of fair value. Self‑ published deferred income derives from 
a combination of crowd‑ sourced income raised and pre‑ orders from the sale of Elite: Dangerous planned for release within one year.
22. Other short-term liabilities and financial liabilities due over one year
These balances represent the interest‑ free loan from the Atlantic Canada Opportunities Agency; for fair value see note 11.
The Company has a £3 million revolving credit facility with Barclays Bank plc; this had not been drawn upon in the financial year.
23. Provisions for dilapidations
Consolidated year ended Company year ended
31 May 2014
£’000
31 May 2013
£’000
31 May 2014
£’000
31 May 2013
£’000
Opening balance 187 150 187 150
Provided for in period 36 37 36 37
At period end 223 187 223 187
The dilapidation provision relates to the rental contracts for two office buildings (included within note 10). These leases expire 
April 2015 and August 2015. It is likely that by the time this is agreed with the landlord that the majority of this expenditure is 
expected to be incurred after May 2015. The provision is based on the estimated costs of work to be performed to bring the 
buildings back to a state of repair and condition, similar to the start of the lease. The lease of the premises in Canada has no 
repair conditions.
24. Finance income 
Finance income may be analysed as follows for the reporting periods presented:
31 May 2014
£’000
31 May 2013
£’000
Interest income from cash and cash equivalents 63 19 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
50
NOTES TO THE FINANCIAL STATEMENTS 
CONTINUED
FINANCIAL STATEMENTS
25. T axation on ordinary activities
(a) Analysis of the charge in the period
31 May 2014
£’000
31 May 2013
£’000
UK corporation tax based on the results for the year (8) 4
Overseas tax on the results for the period 75 (6)
Deferred tax 45 28
Tax on (loss)/profit on ordinary activities 112 26
(b) Factors affecting tax expenses
The tax assessed on the profit on ordinary activities for the year differs from the effective tax rate of corporation tax 20.3% 
(2013: 24.1%) as follows:
31 May 2014
£’000
31 May 2013
£’000
(Loss)/profit on ordinary activities before taxation (1,642) 1,071
Tax on (loss)/profit on ordinary activities at standard rate (334) 258
Factors affecting tax expense for the year:
Overprovision in prior period (8) —
Expenses not deductible for tax purposes 116 215
Adjustments for opening deferred tax average rate (1) 16
Deferred tax provided 46 (1)
Research and development tax credits (498) (397)
Exercise of share options (88) (65)
Losses to carry forward 879 —
Total amount of tax 112 26
Factors that may affect future tax charges 
The Group takes advantage of the enhanced tax deductions for research and development expenditure in the UK and expects 
to continue to be able to do so. From 1 April 2014 the video games tax relief becomes available and the Group expects that some 
of its projects will qualify for this relief.
26. Earnings per share
The calculation of the basic earnings per share is based on the profits attributable to the shareholders of Frontier Developments plc 
divided by the weighted average number of shares in issue during the year. Separate calculations have been performed to a profit 
taking out the adjusted items in Note 5.
31 May 2014 31 May 2013
(Loss)/profit attributable to shareholders (£’000) (1,754) 1,045
Weighted average number of shares 30,479,942 25,014,043 
Basic (loss)/earnings per share (pence) (5.8) 4.2 FINANCIAL STATEMENTS
ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
51
26. Earnings per share continued
The calculation of the diluted earnings per share is based on the profits attributable to the shareholders of Frontier Developments plc 
divided by the weighted average number of shares in issue during the year as adjusted for dilutive share options. For May 2014, 
as the effect of options and convertible loan notes would reduce the loss per share the diluted loss per share is the same as the 
basic loss per share.
31 May 2014 31 May 2013
(Loss)/profit attributable to shareholders (£’000) (1,754) 1,045
Weighted average number of shares 30,479,942 25,495,040 
Adjusted basic (loss)/earnings per share (pence) (5.8) 4.1
The reconciliation of average number of ordinary shares used for basic and diluted earnings per share is as follows:
Weighted average number of ordinary shares 31 May 2014 31 May 2013
Ordinary shares 30,479,942 25,014,043 
Under option — 480,997 
Diluted average number of shares 30,479,942 25,495,040
The calculation of the adjusted earnings per share, as calculated by external analysts, is based on the result after tax, adjusted 
for acquired intangible assets. Separate calculations have been performed to a profit taking out the adjusted items:
31 May 2014 31 May 2013
Adjusted (loss)/profit attributable to shareholders (£’000) (948) 1,816
Weighted average number of shares 30,479,942 25,014,043 
Adjusted basic (loss)/earnings per share (pence) (3.0) 7.3
Weighted average number of shares (diluted) 30,479,942 25,495,040
Adjusted diluted earnings per share (pence) (3.0) 7.1
Adjusted (loss)/profit 
31 May 2014
£’000
31 May 2013
£’000
(Loss)/profit attributable to shareholders (1,754) 1,045
Share‑ based compensation 286 416
Funding costs 217 308
Dilapidations provision 36 37
Impairment of intangible asset 276 —
Fair value adjustment 34 —
Investment gain (21) —
Set up of Canadian subsidiary — 10
Adjusted (loss)/profit (948) 1,816 FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
52
NOTES TO THE FINANCIAL STATEMENTS 
CONTINUED
FINANCIAL STATEMENTS
27 . Cashflow adjustments and changes in working capital
The following non‑ cashflow adjustments and adjustments for changes in working capital have been made to profit before tax 
to arrive at operating cashflow:
Group adjustments and changes
Adjustments
31 May 2014
£’000
31 May 2013
£’000
Depreciation, amortisation and impairment 2,027 1,801
Finance income (63) (19)
Atari shares (33) —
Fair value adjustments (32) —
Profit on disposal of fixed assets and available for sale assets (5) —
Share‑ based payment expenses 286 416
Taxation (70) 26
Foreign exchange 336 (26)
Total adjustments 2,446 2,198
Net changes in working capital:
Change in inventories (15) 75
Change in trade and other receivables (882) 464
Change in trade and other payables 447 1,064
Change in non‑ current liabilities 37 1,320
Total changes in working capital (413) 2,923
Company adjustments and changes
Adjustments
31 May 2014
£’000
31 May 2013
£’000
Depreciation, amortisation and impairment 1,981 1,770
Finance income (57) (19)
Atari shares (33) —
(Profit)/loss on disposal of fixed assets and available for sale assets (5) —
Share‑ based payment expenses 262 403
Taxation (10) 4
Foreign exchange 326 (34)
Total adjustments 2,464 2,124
Net changes in working capital:
Change in inventories (15) 75
Change in trade and other receivables (1,210) 268
Change in trade and other payables 945 1,014
Change in non‑ current liabilities 37 1,320
Total changes in working capital (243) 2,677 FINANCIAL STATEMENTS
ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
53
28. Related-party transactions
Two shareholders receive ongoing royalties or commission as a percentage of royalty sales for some of the Group’s video games 
launched in prior periods.
Consolidated year ended Company year ended
Connected party
Expense 
paid
31 May 2014
£’000
Creditor 
balance 
31 May 2014
£’000
Expense 
paid
31 May 2013
£’000
Creditor 
balance 
31 May 2013
£’000
Expense 
paid
31 May 2014
£’000
Creditor 
balance 
31 May 2014
£’000
Expense 
paid
31 May 2013
£’000
Creditor 
balance 
31 May 2013
£’000
Chris Sawyer – royalties 40 53 53 6 40 53 53 6
Marjacq Micro Limited – 
sales commission 20 27 27 — 27 27 27 —
Professional Practice Automation LLP, controlled by David Braben, received 2,001,573 ordinary shares for the assets of that 
business including the rights to the Elite franchise being a royalty of 10% of the profits in respect of Elite sequels, including 
Elite: Dangerous.
Jonathan Milner subscribed to the convertible loan note and received £3,699 of interest before tax deduction.
29. Acquisition
On 6 May 2014 the Group acquired the assets of Professional Practice Automation LLP, controlled by David Braben, for a 
non‑ cash consideration of £5.154 million through the issuance of 2,001,573 ordinary shares. The ruling market price at the 
date of shareholder approval was 257.5 pence. The transaction has been accounted for as a share‑ based payment.
The acquisition had the following effect on the Group’s assets at the acquisition date:
£’000
Intangible assets 5,148
Other short‑ term financial assets 6
Non-cash consideration 5,154
The amounts were considered to be fair value at the time of acquisition.
30. Financial instrument risks
Risk management objectives and policies
The Group is exposed to various risks in relation to financial assets and liabilities. Financial assets and liabilities by category are 
summarised in note 11. The main types of risks are credit risk, currency risk and liquidity risk. 
The Group’s risk management is co‑ ordinated in close co‑ operation with the Board of Directors and focuses on actively securing 
the Group’s short to medium‑ term cashflows.
The Group does not actively engage in the trading of financial assets for speculative purposes. The most significant financial 
risks to which the Group is exposed are described below.
30.1 Credit risk
The Group’s exposure is limited to the carrying amount of financial assets and cash and cash equivalents recognised at the year 
end date (as summarised in note 11). 
The Group’s management consider all financial assets, not impaired, for each reporting date are of good credit quality, including 
those past due. In respect of trade and other receivables the Group is exposed to significant credit risk for a single counterparty.
The Group considers it has minimal credit risk for liquid funds and other short‑ term financial assets as cash is held with reputable 
UK and Canadian banks.
At the year end the Group’s financial assets are secured by a debenture issued in favour of Barclays Bank plc as part of its 
agreement to provide a revolving credit facility. FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
54
NOTES TO THE FINANCIAL STATEMENTS 
CONTINUED
FINANCIAL STATEMENTS
30. Financial instrument risks continued
Risk management objectives and policies continued
30.2 Foreign currency risk
The Group’s reporting currency is pounds Sterling (GBP). Exposure to currency exchange rates arises where transactions are 
in a currency other than the functional currency of the entity, primarily Canadian Dollars (CAD), US Dollars (USD) and Euro (EUR).
The Group did not enter into forward exchange contracts to mitigate the exposure to foreign currency risk in the year but is considering 
in doing so, now that it is in receipt of multi‑ currency (as above) revenue from its self‑ published activity and will have associated 
marketing expenses that are likely to be in similar currencies. The Group does seek to maintain the same level of working capital 
in both its Canadian subsidiary and in the UK parent, measured in calendar months. The carrying amounts of the Group’s Canadian 
Dollar, US Dollar and Euro denominated monetary assets outside the functional currency of the entity at the reporting date are 
as follows: 
Consolidated year ended Company year ended
31 May 2014 31 May 2013 31 May 2014 31 May 2013
CAD
£’000
USD
£’000
Euro
£’000
CAD
£’000
USD
£’000
Euro
£’000
CAD
£’000
USD
£’000
Euro
£’000
CAD
£’000
USD
£’000
Euro
£’000
Assets 1,994 1,170 38 501 1,218 22 1,379 1,169 38 169 1,218 22
In addition some of the Group’s revenue and overhead transactions are completed in a foreign currency. Transaction exposure 
is reduced through the use of currency bank accounts.
Foreign currency sensitivity analysis
The following table details the Group’s sensitivity to a 5% increase or decrease in the Sterling exchange rate against all relevant 
currencies, albeit the main exposures are USD and CAD. An increase in Sterling would lead to a decrease in income and a decrease 
in equity. 
Consolidated year ended Company year ended
May 
2014
£’000
May 
2013
£’000
May 
2014
£’000
May 
2013
£’000
Effect of a 5% change in relevant exchange rate on:
Income statement 189 100 189 100
Equity 180 105 164 123 FINANCIAL STATEMENTS
ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
55
30. Financial instrument risks continued
Risk management objectives and policies continued
30.3 Liquidity risk analysis
Liquidity risk is the risk arising from the Group not being able to meet its obligations as they fall due. The Group manages its liquidity 
needs by carefully monitoring forecast cash inflows and outflows due in day‑ to‑ day business. Net cash requirements determine 
headroom or any shortfalls over the medium term. This analysis shows if there is a need to use the revolving credit facility, seek 
external funding or the need for securing finance from its shareholder base.
The Group’s financial liabilities have contractual maturities as summarised below:
Current Non‑ current
Within 
6 months
£’000
Between 
6 and 12 months
£’000
Between 
1 and 5 years
£’000
Later than 
5 years
£’000
As at 31 May 2014
Trade and other payables 834 131 102 19
As at 31 May 2013
Trade and other payables 564 479 79 —
The Company’s financial liabilities have contractual maturities as summarised below:
Current Non‑ current
Within 
6 months
£’000
Between 
6 and 12 months
£’000
Between 
1 and 5 years
£’000
Later than 
5 years
£’000
As at 31 May 2014
Trade and other payables 1,258 124 (8) —
As at 31 May 2013
Trade and other payables 492 479 79 —
Financial assets used for managing liquidity risk
Cashflows from trade and other receivables are contractually due within six months.
Cash is generally held in accounts with immediate notice. Where surplus cash deposits are identified these are placed 
in accounts with access terms of no more than three months.
30.4 Interest rate sensitivity
The convertible loan carried a fixed rate of 8% per annum and were converted upon listing to AIM. The Group has no other 
borrowings through which it is subject to interest rate risk.
The risk associated with interest earned on cash balances is low given low level of interest currently being earned worldwide. FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
56
NOTES TO THE FINANCIAL STATEMENTS 
CONTINUED
FINANCIAL STATEMENTS
31. Capital management policies and procedures
The Group’s capital management objective is to ensure the Group’s ability to continue as a going concern by securing sufficient 
funding through equity or debt.
The Group sets the amount of capital in proportion to its overall financing structure, i.e. equity and financial liabilities. The Group 
manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the strategic plans 
of the business over a rolling three‑ year forecast. In order to maintain or adjust the capital structure and provide funds to support 
the planned growth, the Group may issue new shares or raise other funds through debt. The Group undertook a public listing on 
AIM in July 2013 to meet this objective.
The Group had an interest‑ free loan in Canada of £135k at the end of the financial period.
Capital for the reporting period under review is summarised as follows:
Consolidated year ended Company year ended
31 May 2014
£’000
31 May 2013
£’000
31 May 2014
£’000
31 May 2013
£’000
Total equity 18,892 8,395 18,417 8,252
Convertible loan — 1,129 — 1,129
Financial liability 135 — — —
Less cash and cash equivalent (8,612) (7,155) (7,997) (6,819)
10,415 2,369 10,420 2,562
32. Ultimate control
The Directors consider that David Braben has a majority control of the Group by reference to his shareholding interest. FINANCIAL STATEMENTS
ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
57
NOTICE OF MEETING
FRONTIER DEVELOPMENTS PLC
(Incorporated and registered in England and Wales with no. 02892559)
(THE ‘COMPANY’)
Notice is hereby given that the Annual General Meeting of the Company will be held at the offices of Frontier Developments plc 
at 306 Science Park, Milton Road, Cambridge CB4 0WG on Tuesday 14 October 2014 at 9.15 a.m. (London time) for the 
following purposes:
Ordinary resolutions
To consider and, if thought fit, pass the following resolutions as ordinary resolutions:
Resolution 1.  To receive and adopt the financial statements for the year ended 31 May 2014 together with the Reports of 
the Directors and Auditor thereon.
Resolution 2.  To re‑ appoint Mr David John Walsh as a Director, who has retired by rotation in accordance with Article 70 of 
the Company’s Articles of Association (the ‘Articles’) and is therefore required to stand for re‑ election pursuant 
to Article 70 of the Articles.
Resolution 3.  To re‑ appoint Dr Jonathan Simon Milner as a Non‑ Executive Director, who has retired by rotation in accordance 
with Article 70 of the Company’s Articles of Association (the ‘Articles’) and is therefore required to stand for 
re‑ election pursuant to Article 70 of the Articles.
Resolution 4.  To re‑ appoint Grant Thornton UK LLP as the Company’s auditor in accordance with Section 489 of the Companies 
Act 2006 (the ‘Act’) until the conclusion of the next Annual General Meeting.
Resolution 5. To authorise the Directors to determine the auditor’s remuneration for the ensuing year.
Resolution 6.  That in substitution for all authorities in existence immediately prior to this resolution being passed, the Directors 
of the Company (the ‘Directors’) be and are hereby generally and unconditionally authorised to exercise all powers 
of the Company, pursuant to Section 551 of the Companies Act 2006 (the ‘Act’), to allot equity securities (within 
the meaning of Section 560 of the Act) up to an aggregate nominal amount of £55,639.70, which represents one‑ third 
of the nominal value of the Company’s issued share capital at the date of this notice, provided that this authority, 
unless renewed, varied or revoked by the Company in general meeting, shall expire on the earlier of 15 months 
after the passing of this resolution or the conclusion of the Annual General Meeting of the Company to be held 
in 2015 save that the Company may before such expiry make an offer or agreement which would or might require 
equity securities to be allotted after such expiry and the Directors may allot equity securities in pursuance of such 
an offer or agreement as if the authority conferred hereby had not expired. FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
58
FINANCIAL STATEMENTS
NOTICE OF MEETING
CONTINUED
Special resolution  
To consider and, if thought fit, pass the following resolution as a special resolution:
Resolution 7.  THAT subject to the passing of resolution 6 above, the Directors be empowered in accordance with Section 570 
and Section 571 of the Act to allot equity securities (within the meaning of Section 560 of the Act) for cash 
pursuant to the authority conferred on them pursuant to resolution 6 above as if Section 561(1) of the Act did 
not apply to any such allotment provided that this power shall be limited to:
 (a)  the allotment of equity securities in connection with an open offer or otherwise in favour of ordinary 
shareholders in proportion (as nearly as possible) to the respective number of shares held, or deemed 
to be held, by them subject only to such exclusions or other arrangements as the Directors may consider 
appropriate to deal with fractional entitlements or problems arising in any territory or with the requirements 
of any recognised regulatory body or stock exchange in any territory; and
 (b)  the allotment of equity securities (otherwise than pursuant to sub‑ paragraph (a) above) up to an aggregate 
nominal amount of £16,691.90 which represents one‑ tenth of the nominal value of the Company’s issued 
share capital as at the date of this notice,
  provided that this power shall expire on the earlier of 15 months after the passing of this resolution or the 
conclusion of the Annual General Meeting of the Company to be held in 2015 save that the Company may before 
such expiry make an offer or agreement which would or might require equity securities to be allotted after such 
expiry and the Board may allot equity securities in pursuance of such an offer or agreement as if the authority 
conferred hereby had not expired.
By order of the Board
David Gammon
Chairman
3 September 2014 
Frontier Developments plc
306 Science Park
Milton Road
Cambridge CB4 0WG FINANCIAL STATEMENTS
ANNUAL REPORT AND ACCOUNTS 2014 FRONTIER DEVELOPMENTS PLC
59
EXPLANATORY NOTES
TO THE NOTICE OF ANNUAL GENERAL MEETING
Notes
1.  A member entitled to attend and vote at the meeting is also entitled to appoint one or more proxies to attend, speak and vote 
instead of him. A member may appoint more than one proxy in relation to the meeting, provided that each proxy is appointed to 
exercise the rights attached to a different share or shares held by that member. The proxy need not be a member of the Company 
but must attend the meeting to represent you.
2.  You may not appoint more than one proxy to exercise rights attached to any one share. To appoint more than one proxy, you will 
need to complete a separate Form of Proxy in relation to each appointment. To request additional Forms of Proxy, please contact 
the Company Secretary on 01223‑ 394300 or at Frontier Developments plc, 306 Science Park, Milton Road, Cambridge, CB4 0WG. 
You will need to state clearly on each Form of Proxy the number of shares in relation to which the proxy is appointed. A failure to 
specify the number of shares a proxy appointment relates to or specifying a number of shares in excess of those held by the 
member will result in the proxy appointment being invalid.
3.  If you wish your proxy to speak on your behalf at the meeting, you will need to appoint your own choice of proxy (not the 
Chairman) and give your instructions directly to them. If you wish to appoint a proxy other than the Chairman, write the full 
name of your proxy in the box provided in the Form of Proxy.
4.  A vote withheld is not a vote in law, which means that the vote will not be counted in the calculation of votes for or against the 
resolution. In the absence of instructions, the person appointed proxy may vote or abstain from voting as he/she thinks fit on 
the specified resolutions and, unless otherwise instructed, may also vote or abstain from voting on any other matter (including 
amendments to resolutions) which may properly come before the meeting.
5.  In the case of joint holders, the signature of any one of them will suffice but the names of all joint holders should be stated. 
The vote of the senior who tenders a vote (whether in person or by proxy) will be accepted to the exclusion of the votes of the 
other holders. For this purpose, seniority is determined by the order in which the names stand in the register of members in 
respect of the joint holding.
6.  To be effective, the enclosed Form of Proxy must be duly completed and deposited together with any power of attorney or other 
authority (if any) under which it is executed (or a duly certified copy of such power or authority) and lodged at the offices of the 
Company no later than 5 p.m. on Friday 10 October 2014 (being not more than 48 hours (excluding non‑ working days) prior 
to the time fixed for the meeting).
7.  Whether or not you propose to attend the Annual General Meeting, please complete, sign and submit a Form of Proxy to the 
Company Secretary, Frontier Developments plc, 306 Science Park, Milton Road, Cambridge, CB4 0WG by no later than the time 
and date specified above.
8.  Completion and return of the Form of Proxy will not preclude a shareholder from attending and voting in person at the meeting.
9.  The Company, pursuant to regulation 41 of the Uncertificated Securities Regulations 2001, specifies that only those members 
entered on the register of members of the Company at 5 p.m. UK time on Friday 10 October 2014 (being not more than 48 hours 
(excluding non‑ working days) prior to the time fixed for the meeting) shall be entitled to attend and vote at the meeting or, if the 
meeting is adjourned, 5 p.m. UK time on such date being not more than 48 hours (excluding non‑ working days) prior to the date 
fixed for the adjourned meeting. Changes to entries on the register of members after such time shall be disregarded in determining 
the right of any person to attend or vote at the meeting.
10.  The following documents will be available for inspection from the date of this notice until the meeting at the Company’s 
registered office and at the meeting convened by this notice:
(a) register of Directors’ share interests; and
(b) Directors’ service contracts and letters of appointment (as applicable).
11.  A corporation which is a member can appoint one or more corporate representatives who may exercise, on its behalf, all its 
powers as a member. FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
60
FINANCIAL STATEMENTS
ADVISORS AND COMPANY INFORMATION
Company Secretary and CFO
Mr N R Armstrong
Registered and head office
306 Science Park 
Milton Road 
Cambridge CB4 0WG
Website
www.frontier.co.uk
Broker and nominated advisor
Canaccord Genuity Limited
88 Wood Street 
London EC2V 7QR
Joint broker 
FinnCap Limited
60 New Broad Street 
London EC2M 1JJ
Auditor
Grant Thornton UK LLP
101 Cambridge Science Park 
Milton Road 
Cambridge CB4 0FY
Legal advisors to the Company
Bird & Bird LLP
15 Fetter Lane 
London EC4A 1JP
Registrars
Capita Asset Services
The Registry 
34 Beckenham Road 
Beckenham  
Kent BR3 4TU 
United Kingdom
Registered number
02892559
(Incorporated and registered in England and Wales)  FRONTIER DEVELOPMENTS PLC ANNUAL REPORT AND ACCOUNTS 2014
FRONTIER DEVELOPMENTS PLC
306 Science Park 
Milton Road 
Cambridge CB4 0WG