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Arden Partners plc
Annual Report 2008
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Arden Partners plc Annual Report 2008
Arden Partners plc is an institutional stockbroking company. Its business consists 
of corporate finance, equity research, equity sales and market making activities. 
The Group provides broking services to, and advises on, a range of corporate 
finance transactions for small and medium sized companies into UK markets.
Contents
 1 Highlights
 2 Chairman’s Statement
 3 Chief Executive’s Statement
 4 Corporate Governance
 6 Board of Directors
 7 Report of the Directors
 9 Directors’ Remuneration Report
11 Statement of Directors’ Responsibilities
12 Report of the Independent Auditors
13 Consolidated Income Statement
14 Consolidated Balance Sheet
15 Company Balance Sheet
16 Consolidated Cash Flow Statement
17 Company Cash Flow Statement
18 Consolidated Statement of Changes in Equity
19 Company Statement of Changes in Equity
20 Notes to the Consolidated Financial Statements
39 Restatement of Historical Financial Information 
Under IFRS
44 Corporate Information
45 Notice of Meeting
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Highlights
 Year ended Year ended
 31 Oct 2008 31 Oct 2007
Financial
Revenue £11.4m £16.8m
Underlying profit before tax* £2.1m £5.5m
Profit before tax £1.4m £5.2m
Earnings per share:
  Basic 3.0p 14.1p
 Underlying Basic† 5.9p 15.5p
 Diluted 2.7p 13.1p
 Underlying Diluted† 5.4p 14.4p
Dividend per ordinary share:
 Interim 2.2p 2.2p
 Proposed final Nil 4.5p
Non-financial
Funds raised for clients £75m £205m
Client brokerships 30 36
Average number of staff 51 50
*  Profit before tax as adjusted for the effect of share-based payments (IFRS 2) and aborted bid costs.
†  Basic earnings per share as adjusted for the after-tax effect of share-based payments and aborted bid costs.
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Arden has performed satisfactorily despite poor markets. We 
continue to capitalise on and expand our relationship broking 
model, aiming to grow further from our already strong base. 
We have generated cash as well as making a profit such that 
our cash at the year end was £9.5 million, putting Arden in 
a strong position to grow our franchise at an opportunistic 
time. 
Earnings for the year to October 2008 are, as with other 
UK brokers, below earnings in 2007. Current conditions do 
however present opportunities for our business to grow its 
franchise. The withdrawal of many investment banks from the 
small and mid cap markets is no doubt an opportunity for 
Arden, which has both the people and the capacity to reap 
benefits from the downturn. 
We are now able to hire high-calibre staff at considerably 
lower cost than was the case twelve months ago. To this 
end we have during the course of the year hired eleven 
senior staff, with a further five joining in the two months 
since our October year end. In 2008 we also expanded our 
sector coverage, adding financials, electronics and electrical 
equipment, and healthcare.
It is the Board’s view that the current markets must represent 
an opportunity rather than a threat, given the strength of our 
balance sheet.
Trading since October has remained difficult but we are on a 
sound footing with a strong balance sheet and a pipeline of 
new business that is creditable given difficult markets. The 
Board has decided to retain cash for building the platform, 
and has therefore not declared a final dividend.
Finally, I would like to thank all concerned for their contribution 
in these very challenging times.
Sir David Rowe-Ham
Chairman
13 January 2009
Chairman’s Statement
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Introduction
Arden’s performance in the year to 31 October has been 
satisfactory, given weak markets. The FTSE All Share index 
was down 37% over the year while revenue in our equities 
division was down 12%. Arden completed twelve corporate 
finance transactions, despite the scarcity of finance available 
for deals. 
Financial Review
Revenue in the year ended 31 October 2008 was down 
by 32% to £11.4 million (2007: £16.8 million). Underlying 
profit before tax declined by 62% to £2.1 million (2007: £5.5 
million). Profit before tax — after share-based payments and 
one-off costs from adviser fees related to aborted bid talks 
— was down by 73% to £1.4 million (2007: £5.2 million). 
Cash generation was strong with balances up 20% to £9.5 
million (2007: £7.9 million). Net cash is some 430% of our 
£2.2 million regulatory capital requirements.
Underlying basic earnings per share (before aborted bid costs 
and share-based payments) fell to 5.9p from 15.5p with 
underlying diluted earnings per share down to 5.4p from 
14.4p. Basic earnings per share fell to 3.0p from 14.1p while 
diluted earnings per share declined to 2.7p from 13.1p.
Equities Division
Our equities business is proving to be very defensive with 
revenue down 12% to £6.5 million (2007: £7.4 million) 
against a decline of 37% in the FTSE All Share index over 
the same period. Since the year end, commission revenue has 
continued to be challenging, as negative sentiment magnified 
the usual seasonal decline in volumes
Corporate Finance
During the year we completed twelve corporate finance 
transactions including eight M&A and pre-IPO deals, two 
IPOs and two secondary fundraisings, raising £75 million for 
our clients, compared with £205 million in 2007. Corporate 
finance activity is weak compared with recent years. I believe, 
though, that corporate finance will drive any sustained 
recovery in the wider market and our strong team will seize 
the opportunities. 
Dividend
The Board is not proposing a final dividend for the year ended 
31 October 2008 (2007: 4.5p). Arden paid an interim dividend 
of 2.2p (2007: 2.2p) per ordinary share on 3 October 2008.
Outlook
We remain focussed on growing our business, by taking 
advantage of opportunities arising from the market downturn. 
Equities revenue remains challenging since the year end. The 
corporate finance pipeline is creditable, although as ever the 
timing of deals is uncertain.
The number of high-quality staff available to recruit continues 
to rise, and it is our intention to take full advantage of all 
opportunities arising from the market conditions.
Jonathan Keeling
Chief Executive Officer
13 January 2009
Chief Executive’s Statement
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Introduction
Whilst the Group is not obliged to comply with the Combined 
Code, the Directors have agreed to adopt the ethos of those 
regulations and to disclose information relating to corporate 
governance.
The Directors and the Board
The Board comprises six Directors, two of whom are Executive 
and four Non-Executives. The current composition is as 
follows:
Sir David Rowe-Ham* Chairman
Jonathan Keeling Chief Executive Officer
Trevor Norris Group Finance Director and 
 Company Secretary
Tony Bartlett Non-Executive
Philip Dayer* Non-Executive
Grahame Whateley Non-Executive
(* denotes Independent Non-Executive Director)
Biographical details of all the Directors are set out on page 6.
The Board currently meets monthly and at other times as 
necessary. The Board is responsible for strategic and major 
operational issues affecting the Group. It reviews financial 
performance, monitors regulatory compliance, monitors key 
performance indicators and will consider ad hoc any matters 
of significance to the Group including corporate activity. 
Attendance at meetings by members of the Board during the 
year was:
   Remuner-
  Audit ation
 Board Committee Committee
Total number of meetings 12 2 2
Sir David Rowe-Ham 12 2 2
Jonathan Keeling 12 – –
Trevor Norris 12 – –
Tony Bartlett 12 – –
Philip Dayer 12 2 2
Grahame Whateley 12 – –
Re-election of Directors
In accordance with the Company’s Articles, and to ensure 
compliance with the Combined Code, certain of the Directors 
are required to be re-elected at each Annual General Meeting 
of the Company. Sir David Rowe-Ham and Philip Dayer have 
agreed to retire by rotation at the forthcoming Annual General 
Meeting and, being eligible, offer themselves for re-election. 
The Board supports their reappointment having assessed their 
performance and value to the Board.
Remuneration Committee
The Remuneration Committee, which comprises the 
Independent Non-Executive Directors, is chaired by Sir 
David Rowe-Ham and has responsibility for determining 
remuneration aspects of Executive Directors. It makes its 
decisions in consultation with the CEO. No Director plays 
a part in any decision about their own remuneration. This 
Committee also reviews bonus and equity arrangements 
for the Group’s other senior employees and in addition has 
responsibility for supervising the Arden Partners Share Option 
Scheme and the grant of options under its terms.
The remuneration of Non-Executive Directors is fixed by the 
Board.
Audit Committee
The Audit Committee, which comprises the Independent 
Non-Executive Directors, is chaired by Philip Dayer and has 
responsibilities including the monitoring and review of:
l the Group’s internal control environment;
l financial risks (including market risk in relation to the 
Group’s market making activities);
l Financial Statements, reports and announcements;
l ensuring the Company has a policy which allows any 
member of staff to raise, in confidence, any concern about 
possible impropriety in matters of financial reporting or 
other matters, and to ensure that suitable arrangements 
are in place for a proportionate independent investigation 
of such matters including any follow-up action required.
Nominations Committee
The Board is currently of the opinion that, given the present 
size of the Group, it is inappropriate to have an independent 
Nominations Committee but will keep this matter under 
review.
Operations Board
The day-to-day business is managed by Jonathan Keeling, the 
CEO, in conjunction with the Heads of Department as follows:
l Richard Day — Corporate Finance
l David Larkam — Research
l James Reed-Daunter — Sales
l Stephen Cooper — Compliance
l Trevor Norris — Finance
Risk
The Operations Board also serves as the Operational Risk 
Committee (“the ORC”) and is charged with monitoring the 
various risk exposures including those which arise through 
trading and holding financial instruments. The ORC largely 
provides the resource for the vetting of prospective clients and 
proposed transactions.
Corporate Governance
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Corporate Governance continued
In response to difficult market conditions and the 
heightened threat of counterparty failure, the ORC formed 
a Risk Committee tasked specifically with monitoring market 
conditions and the potential impact on the business. Under 
the chairmanship of the Compliance Officer, this committee 
comprises senior members of the sales, trading and market 
making teams and initially met on a daily basis to review 
risk management information. Following a review of market 
conditions this committee now meets on a weekly basis but 
still receives key reports on a daily basis.
A further explanation of these risks, and other risks which 
are faced by the Group, is set out in note 24 to the Financial 
Statements.
Internal Control
The Board confirms that there is an ongoing process for 
identifying, evaluating and managing the significant risks 
faced by the Group, which complies with the guidance 
“Internal Control: Guidance for Directors on the Combined 
Code”. This has been in place throughout the year and up to 
the date of approval of the Financial Statements. The process 
is regularly reviewed by the Board.
The Directors are responsible for the Group’s system of 
internal control and for reviewing its effectiveness. However, 
such a system can only provide reasonable, but not absolute, 
assurance against material misstatement or loss.
Going Concern
After making enquiries, the Directors have a reasonable 
expectation that the Group will have adequate resources to 
continue in operational existence for the foreseeable future. 
For this reason, they continue to adopt the going concern 
basis in preparing the Financial Statements.
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Sir David Rowe-Ham 
(Independent Chairman and Chairman of Remuneration 
Committee)
Sir David is currently Chairman of Olayan Europe Limited, 
and the Senior Independent Non-Executive Director of Hikma 
Pharmaceuticals plc. He is a former Chairman of Brewin 
Dolphin Holdings plc and a former President of The Crown 
Agents Foundation. Sir David has served on the Boards of a 
number of companies including Chubb plc, Williams plc and 
Lloyds Bank plc (London Region) and is a former Lord Mayor 
of London. 
The Board considers Sir David to be an Independent Director.
Jonathan Keeling 
(Chief Executive Officer)
Jonathan is one of the founder members of Arden. A graduate 
in economics, he joined Albert E Sharp as an Equity Salesman 
in 1985, was made a Director in 1989 and Head of Small Cap 
Sales in the early 1990s. Jonathan left Albert E Sharp in 2001 
and then briefly worked for Harris Allday and Old Mutual 
Securities before joining the team to form Arden Partners. 
Jonathan stepped up to become Chief Executive Officer on 
1 January 2008.
Trevor Norris 
(Group Finance Director and Company Secretary)
Trevor is a Chartered Accountant. Having spent several 
years with KPMG and a brief period as a sole practitioner, 
Trevor joined Midlands Electricity plc in 1995 as a Financial 
Consultant in establishing their embryonic energy services 
company, where he became Managing Director. Trevor left in 
2000 to act as a consultant to a number of public companies 
before becoming involved in the early stage formation of 
Arden Partners and was appointed Group Finance Director in 
June 2002.
Tony Bartlett 
(Non-Executive Director)
Tony was for many years a Senior Director of Beeson Gregory. 
Initially responsible as Head of Corporate Finance, he was 
promoted to be the Managing Director of the investment 
banking business. On the flotation of Beeson Gregory he 
became a Main Board Director. Tony’s background is one 
of corporate finance having been a Partner at Coopers & 
Lybrand where he had responsibility for UK plc activities. He 
also represented Coopers & Lybrand as a Far East and Indian 
Liaison Partner and was a member of the Council of Partners. 
Tony joined Arden in January 2004 as Chairman of Corporate 
Finance and was appointed Chief Executive Officer in May 
2006. Having overseen the IPO and subsequent management 
actions, Tony stepped down as CEO on 1 January 2008 and 
remains as a Non-Executive Director.
Philip Dayer 
(Independent Director and Chairman of Audit 
Committee)
On qualifying as a Chartered Accountant with Peat, Marwick, 
Mitchell & Co, Philip pursued a career in investment banking 
as a Corporate Financier specialising in advising small and 
mid-market UK companies. He was appointed Advisory 
Director of Barclays Merchant Bank Limited in 1983 and since 
then has held the position of Corporate Finance Director with 
a number of banks including Old Mutual Securities and Hoare 
Govett Limited. He retired from Hoare Govett Limited in 2004. 
During 2005 and 2006, Philip was a Financial Consultant 
to OJSC Rosneft Oil Company, the Russian state-owned oil 
and gas company, ending on their successful flotation. He is 
Non-Executive Chairman of IP Plus plc and is a Non-Executive 
Director of Dana Petroleum plc, Aveva Group PLC and 
Cadogan Petroleum plc.
The Board considers Philip to be an Independent Director 
with recent relevant financial experience as he is a Chartered 
Accountant.
Grahame Whateley 
(Non-Executive Director)
After qualifying as a surveyor, Grahame formed Castlemore 
Securities plc over 36 years ago. In addition, he is also 
Chairman of the Cedar Group of companies which he started 
over 37 years ago. Grahame is Non-Executive Chairman of 
Liquidity Limited, The Local Shopping REIT plc and of RDM 
Group Limited. Formerly the Chairman of Arden Partners, he 
has been involved with the business since its formation.
Board of Directors
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The Directors present their Annual Report and audited 
Financial Statements for the financial year ended 31 October 
2008.
Principal Activities
The principal activity is that of an institutional stockbroking 
firm. Arden Partners offers institutional agency broking, 
market making services and research in small and mid cap 
stocks together with extensive corporate finance advice to 
this sector of the stock market.
Business Review and Future Developments
A review of the Group’s operations and performance during 
the financial year, setting out the position at the year end, 
significant changes during the year and providing an 
indication of the outlook for the future, is contained in the 
Chief Executive’s Statement.
Principal Risks and Uncertainties
By far the major risk the business faces is stock market 
conditions. Adverse market conditions may have a significant 
negative effect on revenues and profitability. The Group 
mitigates some of this risk by targeting revenues across a 
number of sectors of the market and by careful control of 
overheads.
Other risks include credit risk and liquidity risk and an 
explanation of these is set out in note 24 on page 35.
Results and Dividends
The Consolidated Income Statement for the year is set out on 
page 13.
The Directors are not proposing to pay a final ordinary dividend 
(2007: 4.5p). This, when taken with the interim dividend 
of 2.2p per ordinary share (2007: 2.2p) which was paid on 
3 October 2008, gives a total dividend of 2.2p per share in 
respect of the year ended 31 October 2008 (2007: 6.7p).
Directors
The Directors of the Company who held office since 
1 November 2007 were:
Sir David Rowe-Ham Chairman
Jonathan Keeling Chief Executive Officer
Trevor Norris Group Finance Director and 
 Company Secretary
Tony Bartlett Non-Executive
Philip Dayer Non-Executive
Grahame Whateley Non-Executive
Directors’ Interests
The interests of current Directors in shares and options are 
disclosed in the Directors’ Remuneration Report set out on 
pages 9 and 10.
Significant Shareholdings
In addition to the current Directors’ interests shown on 
page 10, the Directors have been notified that the following 
shareholders had interests in 3% or more of the Company’s 
ordinary share capital at 12 January 2009.
Individuals %
Alasdair Locke 5.28
Richard Day 5.26
James Reed-Daunter 4.75
Robert Griffiths 4.75
Mark Braddock 4.41
John Goold 4.05
David Larkam 4.05
Ben Thefaut 3.46
Tim Richmond 3.44
John Cassie 3.39
Institutional Holders
Universities Superannuation Scheme 8.32
Scottish Widows 7.01
Aegon 5.52
Standard Life Investments 3.75
Share Capital
Information relating to the Company’s ordinary share capital is 
shown in note 19 to the Financial Statements.
Employee Share Trusts
The Group currently operates one Employee Benefit Share 
Trust, Arden Partners EBT Limited, which administers the 
Arden Partners plc share schemes as corporate Trustee. At 
31 October 2008 the Trust held 669,600 (2007: 669,600) 
shares at a carrying cost of £0.2 million and a market value 
of £0.3 million (2007: £1.1 million). The Trustees have agreed 
to hold these shares to satisfy options granted under a share 
option scheme (the Arden Partners Old Scheme — see page 
33) prior to the Company’s admission on to AIM.
Employment Policies
Employees are encouraged to participate in the success of 
the Group through a performance based incentive scheme 
incorporating bonus and share option arrangements. 
Employees are kept informed of progress at regular review 
meetings.
Charitable and Political Donations
The Group made charitable donations amounting to £1,925 
(2007: £5,198) during the year. The Group did not make any 
political donations (2007: £Nil).
Supplier Payment Policy
It is the Group’s policy to settle debts with its creditors on 
a timely basis, taking into consideration the terms and 
conditions offered by each supplier. The number of supplier 
days outstanding at the year end, based on the average 
monthly outstanding creditor balances, was 36 days (2007: 
25 days).
Directors’ and Officers’ Liability Insurance
The Company purchases and maintains liability insurance for 
its Directors and Officers as permitted by the Companies Act 
Report of the Directors
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1985. The insurance was in force throughout the year ended 
31 October 2008 and remains in force at the date of this 
report.
Financial Instruments
Details of the use of financial instruments by the Group and 
Company and its subsidiary undertakings are contained in 
note 24 to the Financial Statements.
Auditors
All of the current Directors have taken all the steps that 
they ought to have taken to make themselves aware of 
any information needed by the Company’s auditors for the 
purposes of their audit and to establish that the auditors are 
aware of that information. The Directors are not aware of any 
relevant audit information of which the auditors are unaware.
The Audit Committee reviews and approves the appointment 
of external auditors and monitors their independence. BDO 
Stoy Hayward LLP have expressed their willingness to continue 
in office and an ordinary resolution reappointing them as 
auditors and authorising the Directors to determine their 
remuneration will be proposed at the forthcoming Annual 
General Meeting. 
By order of the Board
Trevor Norris 
Company Secretary
13 January 2009
Report of the Directors continued
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Introduction
Whilst the Group is not obliged to comply with the Directors’ 
Remuneration Report Regulations 2002, the Directors have 
agreed to adopt the ethos of those regulations and to 
disclose information relating to the current Directors. The 
Directors are not intending to comply fully with Schedule VIIA 
to the Companies Act 1985, but are providing the following 
disclosures on a voluntary basis. The Report also describes 
how the Board has applied the Principles of Good Governance 
relating to Directors’ remuneration. This Report is not subject 
to audit and a resolution to approve it will be proposed at 
the Annual General Meeting of the Company at which the 
Financial Statements are to be approved.
Remuneration Policy
Arden Partners has a policy to attract, motivate and reward 
individuals of the highest calibre who are committed to 
grow the value of the business and to maximise returns to 
shareholders.
This policy is as relevant to Executive Directors as it is to 
employees and the rewards of Executive Directors are aligned 
with those of shareholders in reflecting the performance of 
the Group. 
The Group operates in the investment banking and equities 
arena where it is common practice to pay bonuses. This 
compensates for basic salaries which are capped and for 
the risk of little or no bonus in the event of difficult market 
conditions.
For the year ended 31 October 2008, the incentive accrual 
for Directors and staff was reduced to £666,000 (2007: 
£2,677,000).
Directors’ Service Contracts
No Director has a service contract for longer than twelve 
months and no contract contains provisions for sums to be 
paid on termination. Copies of Directors’ service contracts will 
be available for inspection at the Annual General Meeting.
Pension Arrangements
The Group does not operate a final salary pension scheme. 
Executive Directors who are entitled to receive pension 
contributions may nominate a defined contribution pension 
scheme into which the Company makes payments on their 
behalf.
Share Options
Details of the Arden Partners plc Share Option Scheme are 
given in note 19 to the Financial Statements. The Remuneration 
Committee has responsibility for supervising the scheme and 
the grant of options under its terms.
The Company’s policy is to use the Share Option Scheme to 
attract and retain key senior employees including the Executive 
Directors. Any grant of options is at the discretion of the 
Remuneration Committee and will take into account individual 
performance and responsibilities. Where appropriate, a grant 
of options may incorporate performance criteria.
Directors’ Remuneration Report
Directors’ Remuneration
A summary of the total remuneration paid to current Directors is set out below:
 Salary/ Pension con- Incentive Benefits Total Total
 Fees tributions payments in kind 2008 2007
 £’000 £’000 £’000 £’000 £’000 £’000
Executive Directors
Jonathan Keeling 142 112 – 2 256 376
Trevor Norris 100 12 5 2 119 191
Non-Executive Directors
Sir David Rowe-Ham 54 – – – 54 50
Tony Bartlett 45 – – – 45 175
Philip Dayer 32 – – – 32 30
Grahame Whateley 27 – – – 27 25
Total 400 124 5 4 533 847
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Directors’ Interests in Ordinary Shares of Arden Partners plc
The Directors in office at the year end had interests in the ordinary share capital of the Company (all of which were beneficial) 
as shown below:
 31 October   31 October
 2008 Percentage 2007
 Number Interest Number
Executive Directors
Jonathan Keeling 1,173,990 4.75% 1,173,990
Trevor Norris 627,750 2.54% 627,750
Non-Executive Directors
Sir David Rowe-Ham 30,864 0.13% 30,864
Tony Bartlett 837,000 3.39% 837,000
Philip Dayer 30,864 0.13% 30,864
Grahame Whateley 1,174,010 4.75% 1,174,010
Directors’ Interests in Share Options
The following Directors had interests in options over ordinary shares of the Company as shown below:
   Options
  31 October granted 31 October
  2007 in year 2008
 Notes Number Number Number
Executive Directors
Jonathan Keeling 1 – 490,000 490,000
Trevor Norris 2 167,399 – 167,399
Non-Executive Directors
Tony Bartlett 2 334,798 – 334,798
Totals  502,197 490,000 992,197
Note:
1. These options were granted on 6 February 2008 under the Arden Partners Share Plan 2007 and are exercisable subject 
to the achievement of Company performance related conditions. The options have an exercise price of 10.0p per share, 
cannot normally be exercised until 6 February 2011, and have an expiry date of 6 February 2018. 
2 These options were granted under the Arden Partners Limited Share Option Scheme (“the Old Scheme”) on 24 April 2006 
in their capacity as Executive Directors and no performance criteria are attached to the exercise of these options. These 
options can not normally be exercised until 24 April 2009 at a price of 47.8p per share and have an expiry date of 24 April 
2016. 
Further details of option schemes are set out in note 19 to the Financial Statements.
Approval
This Report was approved by the Remuneration Committee and signed on its behalf by:
Sir David Rowe-Ham
Chairman of the Remuneration Committee
13 January 2009
Directors’ Remuneration Report continued
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Directors’ responsibilities
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time 
the financial position of the Company, for safeguarding the assets of the Company, for taking reasonable steps for the 
prevention and detection of fraud and other irregularities and for the preparation of a Directors’ Report which complies with 
the requirements of the Companies Act 1985.
The Directors are responsible for preparing the annual report and the financial statements in accordance with the Companies 
Act 1985. The Directors are also required to prepare financial statements for the Group in accordance with International 
Financial Reporting Standards as adopted by the European Union (IFRSs) and the rules of the London Stock Exchange for 
companies trading securities on the Alternative Investment Market. The Directors have chosen to prepare financial statements 
for the Company in accordance with IFRSs.
International Accounting Standard 1 requires that financial statements present fairly for each financial year the Company’s 
financial position, financial performance and cash flows. This requires the faithful representation of the effects of transactions, 
other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and 
expenses set out in the International Accounting Standards Board’s ‘Framework for the preparation and presentation of 
financial statements’. In virtually all circumstances, a fair presentation will be achieved by compliance with all applicable IFRSs. 
A fair presentation also requires the Directors to:
l consistently select and apply appropriate accounting policies;
l present information, including accounting policies, in a manner that provides relevant, reliable, comparable and 
understandable information; and
l provide additional disclosures when compliance with the specific requirements in IFRSs is insufficient to enable users to 
understand the impact of particular transactions, other events and conditions on the entity’s financial position and financial 
performance. 
Financial statements are published on the Group’s website in accordance with legislation in the United Kingdom governing the 
preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance 
and integrity of the Group’s website is the responsibility of the Directors. The Directors’ responsibility also extends to the 
ongoing integrity of the financial statements contained therein.
Statement of Directors’ Responsibilities in Respect of the Annual 
Report and the Financial Statements
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We have audited the Group and parent Company financial statements (the ‘’financial statements’’) of Arden Partners plc for 
the year ended 31 October 2008 which comprise the consolidated income statement, the consolidated and Company balance 
sheets, the consolidated and Company cash flow statements, the consolidated and Company statements of changes in equity 
and the related notes. These financial statements have been prepared under the accounting policies set out therein.
Respective responsibilities of Directors and auditors
The Directors’ responsibilities for preparing the annual report and financial statements in accordance with applicable law and 
International Financial Reporting Standards (IFRSs) as adopted by the European Union are set out in the statement of Directors’ 
responsibilities. 
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and 
International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and have been properly prepared 
in accordance with the Companies Act 1985 and whether the information given in the Directors’ report is consistent with 
those financial statements. We also report to you if, in our opinion, the Company has not kept proper accounting records, if 
we have not received all the information and explanations we require for our audit, or if information specified by law regarding 
Directors’ remuneration and other transactions is not disclosed.
We read other information contained in the annual report, and consider whether it is consistent with the audited financial 
statements. This other information comprises only the Highlights, the Directors’ Report, the Chairman’s Statement, the Chief 
Executive’s Statement, the Corporate Governance Statement, the Directors’ Biographies and the Directors’ Remuneration Report. 
We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with 
the financial statements. Our responsibilities do not extend to any other information.
Our report has been prepared pursuant to the requirements of the Companies Act 1985 and for no other purpose. No person 
is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose 
of the Companies Act 1985 or has been expressly authorised to do so by our prior written consent. Save as above, we do not 
accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all 
such liability.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing 
Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the 
financial statements. It also includes an assessment of the significant estimates and judgements made by the Directors in the 
preparation of the financial statements, and of whether the accounting policies are appropriate to the Group’s and Company’s 
circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in 
order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material 
misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall 
adequacy of the presentation of information in the financial statements.
Opinion
In our opinion:
l the Group financial statements give a true and fair view, in accordance with IFRSs as adopted by the European Union, of 
the state of the Group’s affairs as at 31 October 2008 and of its profit for the year then ended;
l the parent Company financial statements give a true and fair view, in accordance with IFRSs as adopted by the European 
Union as applied in accordance with the provisions of the Companies Act 1985, of the state of the parent Company’s affairs 
as at 31 October 2008;
l the financial statements have been properly prepared in accordance with the Companies Act 1985; and
l the information given in the Directors’ Report is consistent with the financial statements.
BDO Stoy Hayward LLP
Chartered Accountants and Registered Auditors
London
13 January 2009
Report of the Independent Auditors to the shareholders of 
Arden Partners plc
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  2008 2007
 Note £’000 £’000
Revenue 2 11,431 16,819
Administrative expenses   10,541 12,071
Profit from operations 3 890 4,748
Finance income  7 509 461
Finance costs 8 – 3
Profit before taxation  1,399 5,206
Income tax expense 9 652 1,717
Profit on ordinary activities after taxation  747 3,489
Earnings per share
Basic 10 3.0p 14.1p
Diluted 10 2.7p 13.1p
Consolidated Income Statement
For the year ended 31 October 2008
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  2008 2008 2007 2007
 Note £’000 £’000 £’000 £’000
Assets
Non-current assets
Property, plant and equipment 11  323  512
Deferred tax 13  88  507
Total non-current assets   411  1,019
Current assets
Financial assets — held for trading 14 215  1,652
Financial assets — available for sale 15 5  443
Trade and other receivables 16 3,146  9,701
Cash and cash equivalents 17 9,481  7,855
Total current assets   12,847  19,651
Total assets   13,258  20,670
Current liabilities
Trade and other payables 18 2,943  8,992
Corporation tax liability  197  806
Total current liabilities   3,140  9,798
Non-current liabilities
Deferred tax  13  –  28
Total non-current liabilities   –  28
Total liabilities   3,140  9,826
Net assets    10,118  10,844
Equity
Called up share capital 19  2,470  2,470
Share premium account   2,646  2,646
Employee Benefit Trust Reserve   (200)   (200)
Available for sale reserve   (2)  35
Retained earnings   5,204  5,893
Total equity   10,118  10,844
The Financial Statements were approved by the Board of Directors and authorised for issue on 13 January 2009.
Trevor Norris Philip Dayer
Group Finance Director Chairman of Audit Committee
The notes on pages 20 to 38 form part of these financial statements.
Consolidated Balance Sheet
At 31 October 2008
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  2008 2008 2007 2007
 Note £’000 £’000 £’000 £’000
Assets
Non-current assets
Property, plant and equipment 11  323  512
Investments 12  –  –
Deferred tax 13  88  507
Total non-current assets   411  1,019
Current assets
Financial assets — held for trading  14 215  1,652
Financial assets — available for sale 15 5  443
Trade and other receivables 16 3,346  9,901
Cash and cash equivalents 17 9,396  7,815
Total current assets   12,962  19,811
Total assets   13,373  20,830
Current liabilities
Trade and other payables 18 2,943  8,992
Corporation tax liability  197  806
Total current liabilities   3,140  9,798
Non-current liabilities
Deferred tax  13  –  28
Total non-current liabilities   –  28
Total liabilities   3,140  9,826
Net assets    10,233  11,004
Equity
Called up share capital 19  2,470  2,470
Share premium account   2,646  2,646
Available for sale reserve   (2)  35
Retained earnings   5,119  5,853
Total equity   10,233  11,004
The Financial Statements were approved by the Board of Directors and authorised for issue on 13 January 2009.
Trevor Norris Philip Dayer
Group Finance Director Chairman of Audit Committee
The notes on pages 20 to 38 form part of these financial statements.
Company Balance Sheet
At 31 October 2008
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  2008 2007
 Note £’000 £’000
Operating activities before taxation
Net profit from ordinary activities before tax  1,399 5,206
Adjustments for:
Fair value adjustments  (38) 45
Depreciation  278 236
Profit on disposal of available for sale investments  (218) –
Impairment of available for sale investments  342 500
Net interest receivable  (509) (458)
Share-based payments  584 34
Operating cash flow before changes in working capital  1,838 5,563
Decrease/(increase) in trade and other receivables  6,564 (2,629)
Decrease/(increase) in financial assets  1,520 (444)
Decrease in trade and other payables  (6,079) (159)
Purchases of available for sale investments  (108) (310)
Proceeds from disposal of available for sale investments  368 –
Cash generated from operations  4,103 2,021
Income taxes paid  (1,277) (1,575)
Cash flows from operating activities  2,826 446
Investing activities
Purchases of property, plant and equipment  (89) (360)
Interest received  499 458
Net cash from investing activities  410 98
Financing activities
Dividends paid to equity shareholders  (1,610) (949)
Increase/(decrease) in cash and cash equivalents  1,626 (405)
Cash and cash equivalents at the beginning of the year  7,855 8,260
Cash and cash equivalents at the end of the year 17 9,481 7,855
The notes on pages 20 to 38 form part of these financial statements.
Consolidated Cash Flow Statement
For the year ended 31 October 2008
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  2008 2007
 Note £’000 £’000
Operating activities before taxation
Net profit from ordinary activities before tax  1,399 5,206
Adjustments for:
Fair value adjustments  (38) 45
Depreciation  278 236
Profit on disposal of available for sale investments  (218) –
Impairment of available for sale investments  342 500
Net interest receivable  (509) (458)
Share-based payments  584 34
Operating cash flow before changes in working capital  1,838 5,563
Decrease/(increase) in trade and other receivables  6,564 (2,629)
Decrease/(increase) in financial assets  1,520 (444)
Decrease in trade and other payables  (6,079) (159)
Purchases of available for sale investments  (108) (310)
Proceeds from disposal of available for sale investments  368 –
Cash generated from operations  4,103 2,021
Income taxes paid  (1,277) (1,575)
Cash flows from operating activities  2,826 446
Investing activities
Purchases of property, plant and equipment  (89) (360)
Interest received  499 458
Net cash from investing activities  410 98
Financing activities
Dividends paid to equity shareholders  (1,655) (976)
Increase/(decrease) in cash and cash equivalents  1,581 (432)
Cash and cash equivalents at the beginning of the year  7,815 8,247
Cash and cash equivalents at the end of the year 17 9,396 7,815
The notes on pages 20 to 38 form part of these financial statements.
Company Cash Flow Statement
For the year ended 31 October 2008
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Consolidated Statement of changes in equity for the year ended 31 October 2008
  Share Employee Available
 Share premium benefit trust for sale Retained
 capital account reserve reserve earnings Total
 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 31 October 2007 2,470 2,646 (200) 35 5,893 10,844
Changes in equity for 2008:
Available for sale investments:
— Increase in fair value of investments – – – 156 – 156
— Gain transferred to the income 
     statement on disposal of investments  – – – (218) – (218)
— Tax taken to equity – – – 25 (410) (385)
Net income recognised directly in equity – – – (37) (410) (447)
Profit for the year – – – – 747 747
Total recognised income and 
expense for the year – – – (37) 337 300
Dividends – – – – (1,610) (1,610)
Share-based payments – – – – 584 584
Balance at 31 October 2008 2,470 2,646 (200) (2) 5,204 10,118
Consolidated Statement of changes in equity for the year ended 31 October 2007
  Share Employee Available
 Share premium benefit trust for sale Retained
 capital account reserve reserve earnings Total
 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 31 October 2006 2,470 2,646 (200) (105) 3,022 7,833
Changes in equity for 2007:
Available for sale investments:
— Increase in fair value of investments – – – 200 – 200
— Tax taken to equity – – – (60) 297 237
Net income recognised directly in equity – – – 140 297 437
Profit for the year – – – – 3,489 3,489
Total recognised income and 
expense for the year – – – 140 3,786 3,926
Dividends – – – – (949) (949)
Share-based payments – – – – 34 34
Balance at 31 October 2007 2,470 2,646 (200) 35 5,893 10,844
Notes
1 The Employee Benefit Trust reserve represents shares held in the parent Company by Arden Partners EBT Limited, a corporate 
trustee company which is consolidated in these Financial Statements in accordance with the accounting policy in note 1 to 
the Financial Statements.
2 The Available for Sale reserve represents unrealised gains and losses on available for sale investments, being the difference 
between the acquisition cost and fair value at the balance sheet date. The reserve is shown net of related deferred tax.
The notes on pages 20 to 38 form part of these financial statements.
Consolidated Statement of Changes in Equity
For the year ended 31 October 2008
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Company statement of changes in equity for the year ended 31 October 2008
   Share Available
  Share premium for sale Retained
  capital account reserve earnings Total
  £’000 £’000 £’000 £’000 £’000
Balance at 31 October 2007  2,470 2,646 35 5,853 11,004
Changes in equity for 2008:
Available for sale investments:
— Increase in fair value of investments  – – 156 – 156
— (Gain) transferred to the income statement 
     on disposal of investments   – – (218) – (218)
— Tax taken to equity  – – 25 (410) (385)
Net income recognised directly in equity  – – (37) (410) (447)
Profit for the year  – – – 747 747
Total recognised income and expense for the year – – (37) 337 300
Dividends  – – – (1,655) (1,655)
Share based payments  – – – 584 584
Balance at 31 October 2008  2,470 2,646 (2) 5,119 10,233
Company Statement of changes in equity for the year ended 31 October 2007
   Share Available
  Share premium for sale Retained
  capital account reserve earnings Total
  £’000 £’000 £’000 £’000 £’000
Balance at 31 October 2006  2,470 2,646 (105) 3,009 8,020
Changes in equity for 2007:
Available for sale investments:
— Increase in fair value of investments  – – 200 – 200
— Tax taken to equity  – – (60) 297 237
Net income recognised directly in equity  – – 140 297 437
Profit for the year  – – – 3,489 3,489
Total recognised income and expense for the year – – 140 3,786 3,926
Dividends  – – – (976) (976)
Share-based payments  – – – 34 34
Balance at 31 October 2007  2,470 2,646 35 5,853 11,004
The notes on pages 20 to 38 form part of these financial statements.
Company Statement of Changes in Equity
For the year ended 31 October 2008
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1) Accounting policies
Arden Partners plc is a public limited company incorporated in the United Kingdom under the Companies Act 1985. The 
address of the Company’s registered office is set out on page 44. 
Basis of preparation
The principal accounting policies adopted in the preparation of these Financial Statements are set out below. The policies 
have been consistently applied to the Group and the Company and to all the years presented, unless otherwise stated.
These policies are in accordance with International Financial Reporting Standards, International Accounting Standards and 
Interpretations (collectively, “IFRS”) issued by the International Accounting Standards Board as endorsed for use in the 
European Union. These Financial Statements have also been prepared in accordance with those parts of the Companies 
Act 1985 that are applicable to companies preparing their financial statements in accordance with IFRS. 
The date of transition to IFRS was 1 November 2006. This is the first year the Group and Company have prepared their 
Financial Statements in accordance with IFRS, having previously prepared their financial statements in accordance with UK 
Generally Accepted Accounting Principles (“UK GAAP”). The information for the year ended 31 October 2007 has been 
restated as necessary for the adoption of IFRS. A reconciliation of the restated financial information for the year ended 
31 October 2007 under IFRS with the originally reported results under UK GAAP is included as note 26. 
Basis of consolidation
Where the Company has the power, either directly or indirectly, to govern the financial and operating policies of another 
entity or business so as to obtain benefits from its activities, it is classified as a subsidiary. The consolidated Financial 
Statements present the results of the Company and its subsidiaries (the “Group”) as if they formed a single entity. 
Intercompany transactions and balances between Group companies are therefore eliminated in full. 
The Company has taken advantage of Section 230 of the Companies Act 1985, and the income statement of the parent 
Company is not presented. The parent Company’s profit after taxation for the financial year amounted to £747,000 (2007: 
£3,489,000).
Standards, interpretations and amendments to published standards not yet effective
Certain new standards, amendments and interpretations to existing standards have been published that are mandatory for 
the Group’s accounting periods beginning on or after 1 November 2008 or later periods and which the Group has decided 
not to adopt early. These are:
— IFRS 8, Operating segments (effective for accounting periods beginning on or after 1 January 2009). This standard 
sets out requirements for the disclosure of information about an entity’s operating segments and also about the 
entity’s products and services, the geographical areas in which it operates, and its major customers. It replaces IAS 14, 
Segmental Reporting. The Group expects to apply this standard in the period beginning on 1 November 2009. As this 
is a disclosure standard, it will not have any effect on the results or net assets of the Group.
—  IFRS 3, Business combinations and complementary amendments to IAS 27, Consolidated and separate 
financial statements (Both effective for accounting periods on or after 1 July 2009). This revised standard and 
amendments are still to be endorsed by the EU. The revised IFRS 3 and amendments to IAS 27 arise from a joint 
project with the Financial Accounting standards Board (FASB), the US standards setter, and result in IFRS being largely 
converged with the related, recently issued, US requirements. There are very significant changes to the requirements 
of IFRS, and options available, if accounting for business combinations. The Board will assess the impact of the revised 
IFRS 3 and amendments to IAS 27 on the financial statements if it becomes relevant in the future. 
— IAS 1, Presentation of Financial Statements — a revised approach (effective for accounting periods beginning 
on or after 1 January 2009). As this is a disclosure standard, it will not have any effect on the results or net assets of 
the Group. It will affect the presentation and format of the primary statements and notes and these disclosures will be 
revised accordingly in the 2010 financial statements.
— Amendment to IFRS 2, Share-based Payments: Vesting conditions and cancellations (effective for accounting 
periods beginning on or after 1 January 2009). The amendment deals with two matters. It clarifies that vesting 
conditions are service conditions and performance conditions only. Other features of a share-based payment are not 
vesting conditions. It also specifies that all cancellations, whether by the entity or by other parties, should receive the 
same accounting treatment. The Board is assessing the impact of this amendment on the Group; this is not expected 
to be significant.
Notes to the Consolidated Financial Statements
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The following are also standards, interpretations and amendments to published statements not yet effective, but which are 
not considered to be relevant to the Group:
—  IAS 39, Financial instruments: Recognition and Measurement: Eligible Hedged Items (effective for accounting 
periods beginning on or after 1 July 2009).
 
—  IAS 23, Borrowing costs (Revised) (effective for accounting periods beginning on or after 1 January 2009).
—  IFRIC 12, Service Concession Arrangements (effective for periods beginning on or after 1 January 2008).
—  IFRIC 13, Customer Loyalty Programmes (effective for periods beginning on or after 1 July 2008).
—  IFRIC 14 and IAS 9, The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their 
Interaction (effective for periods beginning on or after 1 January 2008).
— IFRIC 15, Agreements for the Construction of Real Estate (effective for periods beginning on or after 
1 January 2009).
—  IFRIC 16, Hedges of a Net Investment in a Foreign Operation (effective for periods beginning on or after 
1 October 2008).
— IFRIC 17, Distributions of Non-Cash Assets to Owners (effective for periods beginning on or after 1 July 2009).
—  Amendments to IFRS 1 and IAS 27, Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate 
(Effective for periods beginning on or after 1 January 2009).
—  Amendments to IAS 27, Consolidated and Separate Financial Statements (effective for periods beginning on or 
after 1 July 2009).
—  Amendments to IAS 32 and IAS 1, Puttable Financial Instruments and Obligations Arising on Liquidation 
(effective for periods beginning on or after 1 January 2009).
—  Amendment to IFRS 1, First time Adoption of International Financial Reporting Standards (effective for periods 
beginning on or after 1 January 2009).
Revenue
Revenue comprises the net trading gains or losses of shares traded on a principal basis, commissions and fees earned 
from trading shares on an agency basis, together with fees derived from corporate finance activities, broking services and 
retainers.
Revenue is recognised at the fair value of the consideration receivable, to the extent that it is probable that the economic 
benefits associated with the transaction will flow to the Group. Where consideration includes financial instruments or other 
non-cash items, revenue is measured at fair value using an appropriate valuation method. 
Corporate Finance Division
The Group recognises revenue at the point of completing an assignment to the extent that it has obtained the right to 
consideration through performance of its services to clients.
Deal fees and placing commissions are only recognised once there is an absolute contractual entitlement for the Group to 
receive them.
Corporate retainers are recognised on an accruals basis.
Equities Division
Institutional commissions are recognised on trade dates. Net trading gains or losses are the realised and unrealised profits 
and losses from market making long and short positions on a trade date basis.
Notes to the Consolidated Financial Statements continued
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Interest receivable
Financial income, which comprises principally interest received, is recognised using the effective interest method.
Property, plant and equipment
Property, plant and equipment is stated at cost, net of depreciation and impairment in value.
Depreciation is provided to write off the cost, less estimated residual values, of all tangible fixed assets evenly over their 
expected useful lives. It is calculated at the following rates:
Improvements to leasehold buildings — 33.33% per annum
Fixtures, fittings and equipment — 33.33% per annum
Computer equipment — 33.33% per annum 
Financial assets
Financial assets comprise assets held for trading, available for sale investments, trade receivables, other receivables, and 
cash and cash equivalents. The Group classifies its financial assets into one of the categories discussed below, depending 
on the purpose for which the asset was acquired. The Group has not classified any of its financial assets as held to maturity.
The Group’s accounting policy for each category is as follows:
l Held for trading: Held for trading investments represent long market making positions and other investments held 
for resale in the near term and are stated at fair value. Gains and losses from changes in fair value are taken to the 
income statement.
 For trading investments which are quoted in active markets, fair values are determined by reference to the current 
quoted bid price. 
l Loans and receivables: These assets are non-derivative financial assets with fixed or determinable payments that are 
not quoted in an active market. They arise principally through the provision of goods and services to customers (e.g. 
trade receivables), but also incorporate other types of contractual monetary asset. They are initially recognised at fair 
value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at 
amortised cost using the effective interest rate method, less provision for impairment. 
 Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on 
the part of the counterparty or default or significant delay in payment) that the Group will be unable to collect all of 
the amounts due under the terms receivable, the amount of such a provision being the difference between the net 
carrying amount and the present value of the future expected cash flows associated with the impaired receivable. For 
trade receivables, which are reported net, such provisions are recorded in a separate allowance account with the loss 
being recognised within administrative expenses in the income statement. On confirmation that the trade receivable 
will not be collectable, the gross carrying value of the asset is written off against the associated provision.
 The Group’s loans and receivables comprise trade and other receivables and cash and cash equivalents in the 
balance sheet.
l Available for sale: Non-derivative financial assets not included in the above categories are classified as available for 
sale and comprise principally the Group’s strategic investments in entities not qualifying as subsidiaries, associates 
or jointly controlled entities as well as corporate bonds. They are carried at fair value with changes in fair value 
recognised directly in a separate component of equity (available for sale reserve) other than exchange differences on 
corporate bonds denominated in foreign currency, which are recognised in profit or loss. Where there is a significant 
or prolonged decline in the fair value of an available for sale financial asset (which constitutes objective evidence of 
impairment), the full amount of the impairment, including any amount previously charged to equity, is recognised in 
the income statement. Purchases and sales of available for sale financial assets are recognised on contract date with 
any change in fair value between trade date and the balance sheet date being recognised in the available for sale 
reserve. On sale, the amount held in the available for sale reserve associated with that asset is removed from equity 
and recognised in the income statement. 
Notes to the Consolidated Financial Statements continued
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l Cash and cash equivalents: Cash and cash equivalents comprise cash in hand, bank balances and call deposits that 
are readily convertible to a known amount of cash and are not subject to a significant risk of changes in value. Cash 
and cash equivalents all have original dates to maturity of three months or less.
Financial liabilities 
The Group classifies its financial liabilities into one of the categories discussed below, depending on the purpose for which 
the liability was acquired. The Group’s accounting policy for each category is as follows:
l Held for trading: Held for trading liabilities represent short market making positions and are stated at fair value. 
Gains and losses from changes in fair value are taken to the income statement.
 For trading liabilities which are quoted in active markets, fair values are determined by reference to the current quoted 
offer price. 
 
l Fair value through profit or loss: The Group does not have any financial liabilities designated as being at fair value 
through profit or loss. 
l Other financial liabilities: These comprise market payables, trade payables, other payables and accruals. They are 
initially recognised at fair value and subsequently carried at amortised cost using the effective interest method.
 
Pledged assets
The Group may enter into stock borrowing arrangements with certain institutions which are entered into on a collateralised 
basis with securities or cash advances received as collateral.
Under such arrangements a security is purchased with a commitment to return it at a future date at a future agreed price. 
The securities purchased are not recognised on the balance sheet and the transaction is treated as a secured loan made 
for the purchase price.
Where cash has been used to effect the purchase, the cash collateral amount is recorded as a pledged asset on the balance 
sheet.
Foreign currency transactions
Transactions in foreign currencies are translated into sterling at the exchange rate ruling at the date of the transaction. 
Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated into sterling at 
the exchange rate ruling at the balance sheet date. Foreign exchange differences arising on translation are recognised in 
the income statement.
Taxation
Income tax on the profit or loss for the periods presented comprises current and deferred tax. Income tax is recognised in 
the income statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised 
directly in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted 
at the balance sheet date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying 
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount 
of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and 
liabilities, using tax rates enacted or substantively enacted at the balance sheet date. 
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against 
which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related 
tax benefit will be realised. 
Notes to the Consolidated Financial Statements continued
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Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. 
Final equity dividends are recognised when approved by shareholders at an Annual General Meeting. Dividends unpaid at 
the balance sheet date are only recognised as a liability at that date to the extent that they are appropriately authorised 
and are no longer at the discretion of the Company. 
Leased assets
Assets acquired under finance leases where the Group has substantially all the risks and rewards of ownership are 
capitalised. The outstanding future lease obligations are shown in creditors. Operating lease rentals are charged to the 
income statement on a straight line basis over the period of the lease. 
Pension costs
Contributions to defined contribution pension schemes are charged to the income statement in the period in which they 
become payable.
Employee Benefit Trust
Arden Partners EBT Limited is a wholly owned subsidiary of the Company and its sole activity is as corporate trustee for the 
Arden Partners Employee Benefit Trust. Its assets and liabilities are fully consolidated in the Group financial statements, and 
holdings of Arden Partners plc shares by Arden Partners EBT Limited are shown as a deduction from consolidated equity 
under the heading “Employee Benefit Trust reserve”.
Share-based payments — equity-settled
All options granted are recognised as an employee expense with a corresponding increase in equity. The fair value is 
measured at grant date and spread over the period during which the employees become unconditionally entitled to the 
options. The fair value is measured using the Black–Scholes model, taking into account the terms and conditions upon 
which the options were granted.
Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at 
each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the 
number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. 
As long as all other vesting conditions are satisfied, a charge is made irrespective of whether the market conditions are 
satisfied. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
Critical accounting estimates
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect 
the reported amounts of assets, liabilities, income and expense. The estimates and associated assumptions are based on 
historical experience and various other factors that are believed to be reasonable in the circumstances, the results of which 
form the basis of judgements about carrying values of assets and liabilities. Actual results may differ from those amounts. 
Judgements made by management that may have a significant effect on the financial statements relate principally 
to the Group’s equity-settled share-based remuneration schemes for employees. Employee services received, and the 
corresponding increase in equity, are measured by reference to the fair value of the equity instruments at the date of grant. 
The fair value of share options is estimated by using valuation models, such as Black–Scholes, on the date of grant based 
on certain assumptions. Those assumptions are described in note 19 and include, among others, the dividend growth rate 
and expected volatility.
Notes to the Consolidated Financial Statements continued
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2) Revenue
Revenue is wholly attributable to the principal activity of the Group and arises solely within the United Kingdom.
  2008 2007
  £’000 £’000
Equities Division  6,547 7,444
Corporate Finance Division  4,884 9,375
Total revenue  11,431 16,819
The Directors are of the opinion that there are only two business segments and that business resources cannot be readily 
allocated to segments for the purposes of deriving either profit or net assets.
3) Profit from operations
  2008 2007
  £’000 £’000
This is arrived at after charging/(crediting):
Depreciation of property, plant and equipment  278 236
Operating lease costs  247 210
Aborted bid costs  131 318
Auditors’ remuneration:
 Audit services:
  Company  79 44
  Subsidiaries  1 1
 Tax services  25 19
 Payroll and pension services  9 12
 Corporate finance services:
  Included within aborted bid costs  31 110
Foreign currency losses  53 –
Share-based payments   584 34
Impairment of available for sale investments  342 500
Profit on disposal of available for sale assets  (218) –
4) Dividends
Dividends recognised in the year consisted of the 2007 final dividend of £1,081,000 (4.5p per share) and the 2008 interim 
dividend of £529,000 (2.2p per share), totalling £1,610,000.
Dividends recognised in the prior year consisted of the 2006 final dividend of £420,000 (1.8p per share) and the 2007 
interim dividend of £529,000 (2.2p per share), totalling £949,000.
The amounts shown above in respect of dividends paid by the Group exclude dividends paid to the Arden Partners 
Employee Benefit Trust amounting to £45,000 in 2008 (2007: £27,000). 
Notes to the Consolidated Financial Statements continued
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5) Employees
Staff costs (including Directors) of the Company and Group consist of:
  2008 2007
  £’000  £’000 
Wages and salaries  3,790 3,568
Incentive payments  610 2,150
Share-based payments (see note 19 for further details)  584 34
Social security costs  496 737
Other pension costs  349 631
  5,829 7,120
The average number of employees (including Directors) during the year in the Company and the Group was 51 (2007: 50) 
of which 40 (2007: 43) are front-office and the remainder are administration.
6) Directors’ remuneration
  2008 2007
  £’000  £’000 
Directors’ emoluments  409 599
Company contributions to money purchase pension schemes  124 248
There were 2 Directors in defined contribution pension schemes during the year (2007: 2).
The total amount payable to the highest paid Director in respect of emoluments was £256,000 (2007: £376,000). Company 
pension contributions of £112,000 (2007: £209,000) were provided towards a money purchase scheme on his behalf.
Further details of Directors’ remuneration are set out in the Report on Directors’ Remuneration on pages 9 and 10.
7) Finance income
  2008 2007
  £’000  £’000 
Bank and other interest received   509 461
8) Finance costs
  2008 2007
  £’000  £’000 
Bank loans and overdrafts  – 3
Notes to the Consolidated Financial Statements continued
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9) Taxation expense
  2008  2007
  £’000  £’000
UK corporation tax
Current tax on profits of the year  660 1,721
Adjustment in respect of previous periods  (14) 2
Total current tax  646 1,723
Deferred tax
Origination and reversal of timing differences  (7) (9)
Deferred tax on financial assets  (3) 13
Adjustment in respect of previous periods  16 (10) 
Total deferred tax  6 (6)
Total taxation expense   652 1,717
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The differences are explained 
below:
  2008 2007
  £’000  £’000 
Profit on ordinary activities before tax  1,399 5,206
Profit on ordinary activities at the standard rate of corporation tax 
in the UK of 28.8% (2007: 30%)  403 1,562
Effect of:
Expenses not deductible for tax purposes  250 150
Prior year current tax (over)/under provision  (14) 2
Prior year deferred tax under/(over) provision  16 (10)
Deferred tax on financial assets  (3) 13
Total taxation expense  652 1,717
The United Kingdom Government has enacted provisions reducing the standard rate of corporation tax from 30% to 
28% with effect from 1 April 2008. The standard rate of tax applicable to the Group is therefore 28.8% in the year ended 
31 October 2008 (2007: 30%) and will be 28% in future years.
Notes to the Consolidated Financial Statements continued
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10) Earnings per share
In addition to the basic earnings per share, underlying earnings per share has been shown because the Directors consider 
that this gives a more meaningful indication of the underlying performance of the Group. Where applicable, all adjustments 
are stated after taking into consideration the appropriate tax treatment.
 Year ended Year ended
 31 October 2008 31 October 2007
  Pence per  Numerator Pence per Numerator
  share £’000 share £’000
Basic Earnings  3.0 747 14.1 3,489
Add: IFRS 2 share-based payments  2.4 584 0.1 34
Add: Aborted bid costs  0.5 131 1.3 318
Underlying Basic Earnings  5.9 1,462 15.5 3,841
Diluted Earnings  2.7 747 13.1 3,489
Add: IFRS 2 share-based payments  2.2 584 0.1 34
Add: Aborted bid costs  0.5 131 1.2 318
Underlying Diluted Earnings  5.4 1,462 14.4 3,841
  Year ended   Year ended
  31 October   31 October
  2008  2007
  Number  Number
Denominator
Weighted average number of shares in issue 
for Basic Earnings calculation  24,701,872  24,701,872
Weighted average dilution for outstanding share options  2,340,528  1,941,819
Weighted average number for Diluted Earnings calculation  27,042,400  26,643,691
Notes to the Consolidated Financial Statements continued
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11) Property, plant and equipment
Company and Group as at 31 October 2008
 Improvements Fixtures, 
 to leasehold fittings and
 buildings equipment  Total
 £’000 £’000 £’000
Cost 
At 1 November 2007 233 930 1,163
Additions 5 84 89
At 31 October 2008 238 1,014 1,252
Depreciation
At 1 November 2007 129 522 651
Provided for the year 46 232 278
At 31 October 2008 175 754 929
Net book value
At 31 October 2008 63 260 323
At 31 October 2007 104 408 512
Company and Group as at 31 October 2007
 Improvements Fixtures, 
 to leasehold fittings and
 buildings equipment  Total
 £’000 £’000 £’000
Cost 
At 1 November 2006 117 686 803
Additions 116 244 360
At 31 October 2007 233 930 1,163
Depreciation
At 1 November 2006 89 326 415
Provided for the year 40 196 236
At 31 October 2007 129 522 651
Net book value
At 31 October 2007 104 408 512
At 31 October 2006 28 360 388
12) Investments
Company
   Group 
   undertakings
   £
Cost 
At 1 November 2007 and 31 October 2008   2
The Company owns the whole of the issued share capital of Arden Partners Nominees Limited, a company registered in 
England. This company’s sole activity is the holding of investments for clients of Arden Partners plc. The company has not 
traded.
The Company also owns the whole of the issued share capital of Arden Partners EBT Limited, a company registered in 
England. The company’s sole activity is as corporate trustee for the Arden Partners Employee Benefit Trust. At 31 October 
2008, it held 669,600 ordinary shares in Arden Partners plc (2007: 669,600 ordinary shares).
Notes to the Consolidated Financial Statements continued
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13) Deferred tax
Group and Company — 2008
  Accelerated 
  capital 
  allowances   Total
 and temporary  Share deferred Financial
  differences options tax asset assets
  £’000 £’000 £’000 £’000
At 1 November 2007 — (asset)/liability  (52) (455) (507) 28
Credited to income statement  (7) – (7) (3)
Adjustments in respect of prior years  16 – 16 –
Transferred to equity  – 410 410 (25)
At 31 October 2008  (43) (45) (88) –
Deferred taxation comprises:
  2008 2007
  £’000 £’000
Accelerated capital allowances  (22) 6
Other timing differences  (21) (58)
Share options  (45) (455)
Total deferred tax asset  (88) (507)
Deferred tax liability on financial assets  – 28
 
Group and Company — 2007
  Accelerated 
  capital 
  allowances   Total
 and temporary  Share deferred Financial
  differences options tax asset assets
  £’000 £’000 £’000 £’000
At 1 November 2006 — (asset)/liability  (33) (158) (191) (45)
Credited to income statement  (19) – (19) 13
Transferred to equity  – (297) (297) 60
At 31 October 2007  (52) (455) (507) 28
14) Financial assets — held for trading
Group and Company
  2008 2007
  £’000 £’000
Long market making positions  215 1,652
At 31 October 2008 the historical cost of the long market making positions was £260,000 (2007: £1,617,000). There are 
no long market making positions denominated in foreign currency (2007: £nil).
Notes to the Consolidated Financial Statements continued
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15) Financial assets — available for sale
Group and Company
  2008 2007
  £’000 £’000
Current asset investments  5 443
At 31 October 2008 the historical cost of the current asset investments was £8,000 (2007: £392,000). There are no current 
asset investments denominated in foreign currency (2007: £nil).
16) Trade and other receivables
Group
  2008 2007
  £’000 £’000
Market receivables  1,248 5,702
Trade receivables  1,215 2,180
Other receivables  211 216
Prepayments and accrued income  472 1,603
  3,146 9,701
Company
  2008 2007
  £’000 £’000
Market receivables  1,248 5,702
Trade receivables  1,215 2,180
Other receivables  211 216
Prepayments and accrued income  472 1,603
Amount due from subsidiary  200 200
  3,346 9,901
Included within trade receivables of the Group and the Company at 31 October 2008 is an amount of £579,000 which is 
denominated in US$. No amounts at 31 October 2007 were denominated in foreign currency.
There are no differences between the fair value and the amortised cost of any of the market, trade and other receivables.
The amount due from the subsidiary to the Company has no fixed repayment date and does not bear interest. An analysis 
of overdue trade receivables is shown in note 24. No other receivables are overdue.
Notes to the Consolidated Financial Statements continued
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17) Cash and cash equivalents
Group
  2008 2007
  £’000 £’000
Cash and bank balances  3,640 3,300
Call deposits  5,841 4,555
  9,481 7,855
Company
  2008 2007
  £’000 £’000
Cash and bank balances  3,555 3,260
Call deposits  5,841 4,555
  9,396 7,815
Included within cash and bank balances of the Group and the Company at 31 October 2008 is an amount of £229,000 
which is denominated in US$. No amounts at 31 October 2007 were denominated in foreign currency.
18) Trade and other payables 
Group and Company
  2008 2007
  £’000 £’000
Held for trading liabilities  46 16
Market payables  1,092 5,169
Trade payables  445 324
Other taxation and social security  171 217
Other payables  63 206
Accruals and deferred income  1,126 3,060
  2,943 8,992
There are no differences between the fair values and the amortised cost of any of the trade and other payables. Included 
in the above are financial liabilities amounting to £2,580,000 (2007: £8,540,000).
Notes to the Consolidated Financial Statements continued
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19) Share capital
  Allotted, 
  called up
 Authorised and fully paid
  2008 2007 2008 2007
  £’000 £’000 £’000 £’000
Equity share capital
40,000,000 Ordinary shares of 10p each  4,000 4,000 – –
24,701,872 Ordinary shares of 10p each  – – 2,470 2,470
Options over the Company’s shares outstanding
 31 October 2008 31 October 2007
 Number Option Number Option Date first Expiry
 of shares price (p) of shares price (p) exercisable date
Arden Partners Old Scheme 2,098,305 47.8 2,632,352 47.8 24/4/2009 24/4/2016
Arden Partners Share 
Plan 2007 — 2007 grant 600,000 10.0 800,000 10.0 20/9/2010 20/9/2017
Arden Partners Share 
Plan 2007 — 2008 grant 840,000 10.0 – – 6/2/2011 6/2/2018
Outstanding at the end 
of the year 3,538,305  3,432,352
Exercisable at the year end –  –
Not exercisable at the year end 3,538,305  3,432,352
Outstanding at the end 
of the year 3,538,305  3,432,352
The movement and weighted average exercise prices of share options are as follows:
   Weighted  Weighted
   average  average
   exercise  exercise
  Number of price Number of price
  options (p) options (p)
  2008 2008 2007 2007
At 1 November 2007  3,432,352 39.0 2,958,780 47.8
Exercised during the year  – – – –
Granted during the year  840,000 10.0 800,000 10.0
Lapsed during the year  (734,047) (37.5) (326,428) (47.8)
At 31 October 2008  3,538,305 32.4 3,432,352 39.0
Share-based payments
The share options granted during the year under the Arden Partners Share Plan 2007 are equity-settled options. The vesting 
condition for all options requires the option holders to still be in the employment of the Company at the exercise date; 
for certain options, performance conditions must also be satisfied. These include both market and non-market conditions.
The fair value of services received in return for share options granted are measured by reference to the fair value of share 
options granted. The estimate of the fair value of the services received is measured based on the Black–Scholes model. The 
contractual life is the life of the option in question and growth in dividend yield is based on the best current estimate of 
future yields over the contractual period.
Notes to the Consolidated Financial Statements continued
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19) Share capital (continued)
The assumptions underlying the calculations within the Black–Scholes model were as follows:
 Arden  Arden Arden
 Partners  Partners Partners
 Share Plan  Share Plan Share Plan
 Second 2008 First 2008 2007
 award  award   award
Fair value at measurement date 110.0p 129.0p 147.7p
Exercise price 10.0p 10.0p 10.0p
Stock price at date of grant 121.0p 142.0p 162.0p
Expected volatility 30% 30% 30%
Option life (in years) 3 3 3
Dividend yield 3% 3% 4%
Risk-free interest rate 5.75% 5.75% 5.75%
The total expenses recognised for the period arising from share-based payments are as follows:
  2008 2007
  £’000 £’000
Expensed during the year (equity-settled)
(included within employee costs as set out in note 5)  584 34
20) Pensions
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those 
of the Company in an independently administered fund. Where members of staff do not join the Company scheme, 
contributions are made to their own nominated schemes, all of which are defined contribution. The pension charge for the 
year amounted to £349,000 (2007: £631,000). Contributions amounting to £61,000 (2007: £161,000) were payable to 
schemes and are included in creditors.
21) Commitments under operating leases
The Group and the Company were committed to making the following payments under non-cancellable operating leases 
as set out below:
 Land and buildings
  2008 2007
  £’000 £’000
Within one year  240 232
Between one and two years  78 205
Between two and five years  97 176
  415 613
Notes to the Consolidated Financial Statements continued
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22) Related party disclosures
The key management are considered to be the Board of Directors of Arden Partners plc, whose remuneration can be seen 
in the Directors’ Remuneration Report on pages 9 and 10. The compensation in total for each category required by IAS 24 
is as follows:
  Year ended Year ended
  31 October 31 October
  2008 2007
  £’000 £’000
Salaries and short-term employee benefits  409 599
Share-based payments  178 2
23) Post-balance sheet events
There have been no significant events between the end of the year and the date the Financial Statements were approved.
24) Financial Instruments and risk profile
The Group and Company’s financial instruments comprise cash and cash equivalents, trading positions, available for sale 
investments, trade receivables and trade payables arising from operations. The Group and Company have recognised the 
following risks arising from these financial instruments:
l Equity price risk l Liquidity risk 
l Credit risk l Operational risk
24.1 Equity price risk
The Group and Company face risk arising from holding available for sale investments and market making positions 
in markets that fluctuate. The Group and Company manage equity price risk by establishing individual stock limits 
and overall investment criteria, and management reports are prepared daily in support of a review regime. The Board 
reviews available for sale investments on a monthly basis.
24.2 Liquidity risk
 Liquidity risk is the risk that the Group and Company are unable to raise sufficient funding to enable them to meet 
their obligations and is managed as follows:
l maintaining a strong capital base
l forecasting future cash flow requirements
l monitoring of cash positions on a daily basis
l control over timely settlement of trade debtors
l control over timely settlement of market debtors and creditors
Capital management
The Group and Company’s policy in respect of capital adequacy is to maintain a strong capital base so as to retain 
investor, creditor and market confidence. During the years ended 31 October 2007 and 2008 capital has been 
maintained at a level above minimum FSA requirements. Such levels have been established by reference to an 
internal ICAAP assessment. The Group and Company’s capital resources consist of Tier 1 equity capital and Tier 3 
retained earnings.
The Group and Company hold their cash with a number of reputable financial institutions. All cash and cash 
equivalents are short-term, highly liquid investments that are readily convertible into known amounts of cash.
Notes to the Consolidated Financial Statements continued
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24) Financial Instruments and risk profile (continued)
24.3 Credit risk
Credit risk represents the possibility that the Group or Company will suffer a loss from a counterparty failing to meet 
its obligations. Credit risk is managed as follows:
l robust client account opening and vetting procedures
l general policy to deal only with FSA registered counterparties
l general policy on limiting exposure to concentration risk
l control over timely settlement of market debtors
l review of daily settlement reports by the Risk Committee
Exposure to credit risk
The carrying value of financial assets represents the maximum credit exposure. The maximum exposure to credit risk 
at the reporting date was:
  Group  Company
  2008 2007 2008 2007
  £’000 £’000 £’000 £’000
Market receivables  1,248 5,702 1,248 5,702
Trade receivables  1,215 2,180 1,215 2,180
Other receivables  211 216 211 216
Cash and cash equivalents  9,481 7,855 9,396 7,815
Total loans and receivables at amortised cost  12,155 15,953 12,070 15,913
 
The ageing of trade receivables at the reporting date was:
  31 October 31 October
  2008 2007
  £’000 £’000
Not past due  976 1,367
Past due 31–60 days  37 500
Past due 61–90 days  32 54
Past due 91–120 days  11 38
Past due 121+ days  350 407
Provisions  (191) (186)
Total  1,215 2,180
Movement in provision 
  31 October 31 October
  2008 2007
  £’000 £’000
Opening balance at 1 November   186 154
Amounts released  (174) (73)
Amounts written off  (3) –
Increase in provision  182 105
Closing balance at 31 October   191 186
Notes to the Consolidated Financial Statements continued
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24) Financial Instruments and risk profile (continued)
24.4 Operational risk
Operational risk is the risk of loss resulting from inadequate or failed internal processes, staff or systems, or from 
external causes whether deliberate, accidental or natural. This would also include risk from changes in legislation, 
regulation, currency or interest rate risk.
Operational risk is managed by an Operations Board with day-to-day control exercised by the Operations Director. The 
Group and Company also has in place contingency plans to cover loss of systems, property and other eventualities.
The Group and Company had an aggregate currency exposure at 31 October 2008 in respect of US$1,286,000 
(£808,000). There was no currency exposure for the Group or the Company at 31 October 2007. The effect of a 
10% movement in the US$/£ exchange rate from the rate ruling at the balance sheet date would be to impact profit 
and net assets by approximately £80,000.
Fixed rate cash financial assets of £5,841,000 (2007: £4,555,000) comprise sterling cash deposits on money markets 
at an average rate of 3.0% (2007: 5.55%). Remaining cash was held on current accounts attracting interest based 
on LIBID. Other financial assets do not have maturity dates and do not currently attract interest. 
If the average level of interest received on cash deposits had been 1% higher or lower than the level actually 
received in the year ended 31 October 2008, the profit before taxation would have been increased or reduced by 
approximately £85,000.
25) Transition to IFRS
The financial information for the year ended 31 October 2007 and the opening balance sheet at 1 November 2006 have 
been prepared in accordance with IFRS for the first time.
The Group’s transition date to IFRS is 1 November 2006. The rules for first-time adoption of IFRS are set out in IFRS 1 ‘First 
time Adoption of International Financial Reporting Standards’. In preparing the IFRS financial information, these transition 
rules have been applied to the amounts reported previously under generally accepted accounting principles in the United 
Kingdom (‘UK GAAP’). IFRS 1 generally requires full retrospective application of the Standards and Interpretations in force 
at the first reporting date. 
However, IFRS 1 allows certain exemptions in the application of particular Standards to prior periods in order to assist 
companies with the transition process.
The Group has elected to make use of the exemptions available in IFRS 1 as follows:
l IFRS 2 ‘Share-based Payments’ has been applied to all grants of equity instruments after 7 November 2002 that were 
unvested at 1 November 2006.
The adoption of IFRS has had no impact on the cash flows of the Group. The changes in the Group cash flow statement 
prepared under IFRS and the statement previously prepared under UK GAAP are presentational. In accordance with IFRS, 
the Company has been required to present its own cash flow statement, whereas such a statement was not required 
previously under UK GAAP .
Notes to the Consolidated Financial Statements continued
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26) Reconciliation of UK GAAP to IFRS
For the year ended 31 October 2007 there are differences between the income statement and balance sheet amounts 
reported under UK GAAP and IFRS as noted on pages 39 to 43. There are also differences under UK GAAP and IFRS for the 
opening balance sheet on transition (as at 1 November 2006). 
The IFRS transition has given rise to four types of adjustments in the consolidated accounts, which are as follows:
a) Fair value adjustments for financial assets that are classified as held for trading, with movements in the fair value going 
to the income statement.
b)  Fair value adjustments for financial assets that are classified as available for sale with movements in the fair value going 
through equity.
c) Deferred tax relating to (1) fair value adjustments in respect of (a) and (b) above and (2) the intrinsic value of the 
outstanding share options at the balance sheet date.
d) Reclassification of deferred tax asset from current assets to non-current assets.
A further adjustment has arisen in the Company’s accounts as follows:
e) Adjustments to intercompany balances and cash arising from a change to the accounting treatment of Arden Partners 
EBT Limited, the trustee of the Group’s employee benefit trust. Under UK GAAP , the assets of the EBT were included in 
the Company’s balance sheet and intercompany balances were eliminated; under the treatment now being adopted, 
the assets of the EBT are excluded from the Company’s balance sheet and intercompany balances are reinstated.
Notes to the Consolidated Financial Statements continued
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Consolidated Balance Sheet at 31 October 2007
   UK GAAP  IFRS
   At  At
   31 October  IFRS 31 October
   2007 adjustments 2007
  Note £’000 £’000 £’000
Assets
Non-current assets
Plant property and equipment   512 – 512
Deferred tax  26(c) (d) – 507 507
Total non-current assets   512 507 1,019
Current assets
Financial assets — held for trading  26(a) 1,617 35 1,652
Financial assets — available for sale  26(b) 392 51 443
Trade and other receivables   9,753 (52) 9,701
Cash at bank and in hand   7,855 – 7,855
Total current assets   19,617 34  19,651
Total assets   20,129 541 20,670
Current liabilities
Trade and other payables   8,992 – 8,992
Corporation tax liability   806 – 806
Total current liabilities   9,798 – 9,798
Non-current liabilities
Deferred tax liability   26(c) – 28 28
Total non-current liabilities   – 28 28
Total liabilities   9,798 28 9,826
Net assets    10,331 513 10,844
Restatement of Historical Financial Information Under IFRS
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Consolidated Income Statement for the year ended 31 October 2007
   UK GAAP  IFRS
   Year ended  Year ended
   31 October  IFRS 31 October
   2007 adjustments 2007
  Note £’000 £’000 £’000
Revenue  26(a) 16,774 45 16,819
Administrative expenses    12,071 – 12,071
Profit from operations   4,703 45 4,748
Finance income    461 – 461
Finance costs   3 – 3
Profit before taxation   5,161 45 5,206
Income tax expense  26(c) 1,704 13 1,717 
Profit on ordinary activities after taxation   3,457 32 3,489
Earnings per share
Basic   14.0p – 14.1p
Diluted   13.0p – 13.1p
Restatement of Historical Financial Information Under IFRS
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Restatement of Historical Financial Information Under IFRS
Consolidated Balance Sheet as at 31 October 2006
   UK GAAP  IFRS
   At  At
   31 October  IFRS 31 October
   2006 adjustments 2006
  Note £’000 £’000 £’000
Assets
Non-current assets
Plant property and equipment   388 – 388
Deferred tax  26(c) (d) – 239 239
Total non-current assets   388 239 627
Current assets
Financial assets — held for trading  26(a) 1,217 (10) 1,207
Financial assets — available for sale  26(b) 583 (152) 431
Trade and other receivables    7,169 (33) 7,136
Cash and cash equivalents   8,260 – 8,260
Total current assets   17,229 (195) 17,034
Total assets   17,617 44 17,661
Current liabilities
Trade and other payables   9,151 – 9,151
Corporation tax liability   677 – 677
Total current liabilities   9,828 – 9,828
Total liabilities   9,828 – 9,828
Net assets    7,789 44 7,833
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Company Balance Sheet as at 31 October 2007
   UK GAAP  IFRS
   At  At
   31 October  IFRS 31 October
   2007 adjustments 2007
  Note £’000 £’000 £’000
Assets
Non-current assets
Plant property and equipment   512 – 512
Deferred tax  26(c) (d) – 507 507
Total non-current assets   512 507 1,019
Current assets
Financial assets — held for trading  26(a) 1,617 35 1,652
Financial assets — available for sale  26(b) 392 51 443
Trade and other receivables  26(d) (e) 9,753 148 9,901
Cash at bank and in hand  26(e) 7,855 (40) 7,815
Total current assets   19,617 194  19,811
Total assets   20,129 701 20,830
Current liabilities
Trade and other payables   8,992 – 8,992
Corporation tax liability   806 – 806
Total current liabilities   9,798 – 9,798
Non current liabilities
Deferred tax liability   26(c) – 28 28
Total non-current liabilities   – 28 28
Total liabilities   9,798 28 9,826
Net assets    10,331 673 11,004
Restatement of Historical Financial Information Under IFRS
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Company Balance Sheet as at 31 October 2006
   UK GAAP  IFRS
   At  At
   31 October  IFRS 31 October
   2006 adjustments 2006
  Note £’000 £’000 £’000
Assets
Non-current assets
Plant property and equipment   388 – 388
Deferred tax  26(c) (d) – 239 239
Total non-current assets   388 239 627
Current assets
Financial assets — held for trading  26(a) 1,217 (10) 1,207
Financial assets — available for sale  26(b) 583 (152) 431
Trade and other receivables   26(d) (e) 7,169 167 7,336
Cash and cash equivalents  26(e) 8,260 (13) 8,247
Total current assets   17,229 (8) 17,221
Total assets   17,617 231 17,848
Current liabilities
Trade and other payables   9,151 – 9,151
Corporation tax liability   677 – 677
Total current liabilities   9,828 – 9,828
Total liabilities   9,828 – 9,828
Net assets    7,789 231 8,020
Restatement of Historical Financial Information Under IFRS
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Company Secretary and Registered Office Trevor Norris
 Arden House
 Highfield Road
 Edgbaston
 Birmingham
 B15 3DU 
 Direct line: 0121 423 8990
 Fax: 0121 423 8991
Company Number 4427253
Corporate Brokers Altium Capital Limited
 30 St James’s Square
 London
 SW1Y 4AL
Financial PR Adviser Buchanan Communications
 45 Moorfields
 London
 EC2Y 9AE
Registrar Capita IRG Plc
 The Registry
 34 Beckenham Road
 Beckenham
 Kent
 BR3 4TU
Lawyers Eversheds LLP
 1 Wood Street
 London
 EC2V 7WS
Auditors BDO Stoy Hayward LLP
 55 Baker Street
 London
 W1U 3LL
Bankers Royal Bank of Scotland plc
 City of London Commercial Banking Centre
 7th Floor
 280 Bishopsgate
 London 
 EC2M 4RB
 HSBC Bank plc
 130 New Street
 Birmingham
 B2 4JU
Corporate Information
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Notice is hereby given that the Annual General Meeting of Arden Partners plc (“the Company”) will be held at 30 St James’s 
Square, London, SW1Y 4AL on 22 April 2009 at 11.00 a.m. for the following purposes:
Ordinary Business
1. To receive and adopt the Company’s Financial Statements for the year ended 31 October 2008, together with the Directors’ 
Report, Directors’ Remuneration Report and Report of the Independent Auditors on those Financial Statements.
2. To re-elect Sir David Rowe-Ham as a Director, who is retiring by rotation in accordance with the Company’s Articles of 
Association.
3. T o re-elect Mr Philip Dayer as a Director, who is retiring by rotation in accordance with the Company’s Articles of Association.
4. To reappoint BDO Stoy Hayward LLP as auditors to the Company, to hold office from the conclusion of this Meeting 
until the conclusion of the next Annual General Meeting at which the Financial Statements are laid and to authorise the 
Directors to fix their remuneration.
To transact any other ordinary business of the Company.
Special Business
As special business, to consider and, if thought fit, pass the following resolutions which will be proposed as to resolution 
number 5 as an ordinary resolution and as to resolutions numbered 6, 7 and 8 as special resolutions:
5. That, subject to and in accordance with Article 16 of the Articles of Association of the Company, the Directors of the Company 
be generally and unconditionally authorised in accordance with section 80 of the Companies Act 1985 (in substitution for 
any existing authority to allot relevant securities) to exercise all the powers of the Company to allot relevant securities (within 
the meaning of such section) up to a maximum aggregate nominal value of £823,395, such authority to expire on the earlier 
of the conclusion of the next Annual General Meeting of the Company or fifteen months from the date of the passing of 
this resolution, but so that the Company may before such expiry make offers or agreements which would or might require 
relevant securities of the Company to be allotted after such expiry, and the Directors may allot relevant securities in pursuance 
of such offers or agreements as if the authority conferred by this resolution had not expired. 
6. That, subject to the passing of resolution 5 as set out in the notice of this Meeting, and in accordance with Article 17 of the 
Articles of Association of the Company, the Directors be empowered pursuant to section 95 of the Companies Act 1985 
to allot equity securities (as defined in section 94 of the Companies Act 1985) for cash pursuant to the general authority 
as if section 89(1) of the Companies Act 1985 did not apply to such allotment, provided that this power shall be limited to 
allotments of equity securities:
(a) in connection with or pursuant to an offer of such securities by way of rights, open offer or other pre-emptive offer to 
the holders of ordinary shares in the Company and other persons entitled to participate therein in proportion (as nearly as 
practicable) to their respective holdings, subject to such exclusions or other arrangements as the Directors may consider 
necessary or expedient to deal with fractional entitlements or any legal or practical problems under the laws of any 
territory or the regulations or requirements of any regulatory authority or any stock exchange in any territory; and
(b)   otherwise than pursuant to sub-paragraph (a) above, up to an aggregate nominal amount of £123,509
 
 and such power shall expire on the earlier of the conclusion of the next Annual General Meeting of the Company or fifteen 
months from the date of the passing of this resolution, provided that the Company may before such expiry make an offer 
or agreement which would or might require equity securities to be allotted after such expiry, and the Directors of the 
Company may allot equity securities in pursuance of such offer or agreement as if the power conferred by this resolution 
had not expired.
7.  That, with effect from the passing of this resolution, the regulations contained in the document produced to this Meeting 
and for the purpose of identification signed by the Chairman of the Meeting are approved and adopted as the Articles of 
Association of the Company in substitution for and to the exclusion of all existing Articles of Association of the Company.
8.  That, the Company be generally and unconditionally authorised, pursuant to Article 9 of the Articles of Association of 
the Company and pursuant to section 166 of the Companies Act 1985, to make market purchases (as defined in section 
163 of the Companies Act 1985) of up to 2,470,180 Ordinary Shares of 10p each in the capital of the Company (being 
approximately 10% of the current issued ordinary share capital of the Company) on such terms and in such manner as the 
Directors of the Company may from time to time determine, provided that:
Notice of Meeting
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(a)  the amount paid for each share (exclusive of expenses) shall not be more than the higher of (1) 5% above the average 
of the middle market quotation for Ordinary Shares as derived from the AIM Appendix to the Daily Official List of 
the London Stock Exchange plc for the five business days before the date on which the contract for the purchase is 
made, and (2) an amount equal to the higher of the price of the last independent trade and current independent bid 
as derived from the trading venue where the purchase was carried out, or less than 10p per share; and
(b)  the authority herein contained shall expire at the conclusion of the Annual General Meeting of the Company to 
be held in 2010 or fifteen months from the date of passing this resolution, whichever is earlier, provided that the 
Company may, before such expiry, make a contract to purchase its own shares which would or might be executed 
wholly or partly after such expiry, and the Company may make a purchase of its own shares in pursuance of such 
contract as if the authority hereby conferred hereby had not expired.
By order of the Board Registered office:
Trevor Norris Arden House     
Company Secretary 17 Highfield Road
12 January 2009 Edgbaston
Birmingham
B15 3DU
Notes
1.  Under Article 94 of the Company’s Articles of Association, a member can nominate someone else to exercise the right to 
appoint a proxy. Please confirm whether you are the member or a person nominated by a member. If you are a member 
who has nominated someone else to exercise the right to appoint a proxy you should not complete this form. Any forms 
returned by such persons will be ineffective.
2.  Any member entitled to attend and vote at the AGM is entitled (unless they have, pursuant to article 94 of the Company’s 
Articles of Association, nominated someone else to enjoy such a right, in which case only the person so nominated may 
exercise the right) to appoint one or more proxies (who need not be a member of the Company) to attend and to vote 
instead of the member. Completion and return of a form of proxy will not preclude a member from attending and voting 
at the Meeting in person, should he subsequently decide to do so.
3.  If you wish to appoint some other person as your proxy please insert his/her name and address, initial and strike out the 
words “the Chairman of the Meeting”. If you do this and you, or your proxy, do not go to the Meeting, your vote cannot 
be counted. A proxy need not be a member of the Company.
4.  To appoint more than one proxy you may photocopy this form. Please indicate the proxy holder’s name and the number of 
shares in relation to which they are authorised to act as your proxy (which, in aggregate, should not exceed the number 
of shares held by you). If the total number of shares exceeds the total held by the member, all appointments may be held 
invalid. Please also indicate if the proxy instruction is one of multiple instructions being given. All forms must be signed and 
should be returned together in the same envelope.
5.  Please indicate with an “X” in the appropriate box how you wish your votes to be cast. Unless otherwise instructed the 
proxy will exercise his/her discretion as to whether, and if so how, he/she will vote. The “Withheld” option is provided to 
enable you to abstain on any particular resolution. However, a vote withheld is not a vote in law and will not be counted 
in the calculation of the proportion of votes “For” and “Against” a resolution.
6.  This Form of Proxy must, in the case of an individual, be signed by the appointer or his/her attorney or, in the case of a 
corporation must be executed under its common seal or under the hand of an officer or attorney duly authorised in writing. 
Where a duly authorised officer signs this form, the signatory should state his/her office on the form.
7.  In the case of joint holders of a share the vote of the senior who tenders a vote, whether in person or by proxy, shall be 
accepted to the exclusion of the votes of the other joint holders and for this purpose seniority shall be determined by the 
order in which the names stand in the register of members in respect of the share.
Notice of Meeting continued
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16310 11/03/2009 Proof 7
Notice of Meeting continued
8.  Any alteration in this Form of Proxy must be initialled by the person in whose hand it is signed or executed.
9.  In order to be valid, any Form of Proxy and power of attorney or other authority under which it is signed, or a notarially 
certified or office copy of such power of authority, must reach the Company’s Registrars, Capita Registrars, The Proxy 
Department, PO Box 25, Beckenham, Kent, BR3 4BR, not less than 48 hours (excluding any part of a day which is a non-
working day) before the time of the Meeting or of any adjournment of the Meeting.
10. Pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, only those shareholders registered in the 
register of members of the Company at 11.00 a.m. on 20 April 2009 or, if the Meeting is adjourned, shareholders on the 
Company’s register of members not later than 48 hours before the time fixed for the adjourned Meeting, shall be entitled 
to attend and vote at the Meeting.
11.  All members are entitled to attend and vote at the Meeting, whether or not they have returned a form of proxy.
12.  The Directors have no present intention of exercising (i) the allotment authority under resolution 5, (ii) the disapplication of 
pre-emption rights authority under resolution 6, or (iii) the authority to make market purchases under resolution 8.
13.  A copy of the Company’s existing Articles of Association (the “Existing Articles”) and a copy marked to show the differences 
between the Existing Articles and those proposed to be adopted pursuant to resolution 7 (the “Proposed Articles”) will be 
available for inspection at the Company’s registered office during usual business hours from the date of this notice until 
the date of the Annual General Meeting and at the place of the Annual General Meeting from at least 15 minutes prior to 
and until the conclusion of the Annual General Meeting. The Proposed Articles have been updated to reflect in particular 
the following and other consequential changes arising as a result of the Companies Act 2006 (the “New Act”): 
(a)  The New Act provision which came into force in October 2008 in respect of Directors’ duty to avoid conflicts of interest
 The Proposed Articles have been amended to reflect the new Directors’ duty to avoid conflicts of interest (section 
175 of the New Act) which came into force on 1 October 2008. A new article (Article 104) has been added to give 
the Board the power to authorise conflicts of other Directors and resultant changes have been made to Articles 
102 to 106.
(b)  Multiple corporate representatives — ICSA guidance on proxies and corporate representatives at general meetings
 Various amendments have been made to the Proposed Articles to reflect the ICSA recommendations and guidance 
referred to above.
 In order to facilitate voting by corporate representatives at the Meeting, arrangements will be put in place at the Meeting 
so that (i) if a corporate shareholder has appointed the Chairman of the Meeting as its corporate representative with 
instructions to vote on a poll in accordance with the directions of all of the other corporate representatives for that 
shareholder at the Meeting, then on a poll those corporate representatives will give voting directions to the Chairman 
and the Chairman will vote (or withhold a vote) as corporate representative in accordance with those directions; and (ii) 
if more than one corporate representative for the same corporate shareholder attends the Meeting but the corporate 
shareholder has not appointed the Chairman of the Meeting as its corporate representative, a designated corporate 
representative will be nominated, from those corporate representatives who attend, who will vote on a poll and the other 
corporate representatives will give voting directions to that designated corporate representative. Corporate shareholders 
are referred to the guidance issued by the Institute of Chartered Secretaries and Administrators on proxies and corporate 
representatives — www.icsa.org.uk — for further details of this procedure. The guidance includes a sample form of 
representation letter if the Chairman is being appointed as described in (i) above.
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Birmingham
Arden House
17 Highfield Road
Edgbaston
Birmingham
B15 3DU
Tel 0121 423 8900
Fax 0121 423 8901
London
Nicholas House
3 Laurence Pountney Hill
London
EC4R 0EU
Tel 020 7398 1600
Fax 020 7398 1610
Bristol
Broad Quay House
Prince Street
Bristol
BS1 4DJ
Tel 0117 905 8762
Fax 0117 905 8816
www.arden-partners.co.uk
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