ANNUAL REPORT & ACCOUNTS 2009 MALLETT IS ONE OF THE OLDEST ESTABLISHED ANTIQUES
DEALERS IN THE UNITED KINGDOM SPECIALISING IN THE
FINEST PIECES OF FURNITURE AND WORKS OF ART, PRIMARILY
FROM THE 18TH CENTURY AND REGENCY PERIODS
Governance
9 Board of Directors
10 Report of the Directors
14 Corporate Governance 
16 Directors’ Remuneration Report
21 Statement of Directors’ Responsibilities
22 Independent Auditors’ Report 
Financial Statements
23 Consolidated Income Statement
23 Consolidated Statement of Comprehensive Income 
24 Consolidated Balance Sheet
25 Company Balance Sheet
26 Statements of Changes in Equity
27 Consolidated Cash Flow Statement
28 Company Cash Flow Statement
29 Notes to the Accounts
48 Five Year Record
Shareholder Information
49 Notice of Annual General Meeting
51 Form of Proxy 
53 Financial Calendar 
53 Company Advisers
Contents
Review
1 Highlights
2 Mallett at a Glance
4 Chairman’s Statement
7 Chief Executive’s Report
NEW STOCK
A PAIR OF TERRACOTTA LIONS 
These two lions, one sleeping, the
other vigilant, are modelled after 
the famous lions at the base of the
monumental tomb of Clement XIII in
Saint Peter’s Basilica in Rome, made
by Antonio Canova, between 1783
and 1792.
Italy, circa 1890 1
Annual Report and Accounts 2009
Operational Highlights
� Business stabilised following extensive reorganisation in 2009
� Strategic and operational progress made despite difficult market conditions
� Costs significantly reduced through minimal spend on Meta, reduced marketing spend
and staff reductions.
Financial Highlights
� Turnover increased by 15% to £14.0m
� Operating costs reduced by £2.0m
� Operating loss decreased by £4.2m to £1.8m
� Cash position significantly improved from net debt of £2.3m to net cash surplus of £0.8m
� Balance sheet remains strong with net assets of £18.6m. 2
Annual Report and Accounts 2009
Mallett at a Glance
One of the world’s pre-eminent antiques houses,
specialising in English and Continental furniture and
objects from the 18th century and Regency periods.
Private collectors as well as many of the world’s great
museums, from the Victoria and Albert Museum in
London to the Metropolitan Museum in New York,
look to Mallett for exemplary pieces that represent 
an object’s design, execution and pedigree.
� Located in London and New York, established 1865
� Sales contribution to Group 84%
� Exhibits at fairs in London, New York, Palm Beach,
and Maastricht.
Contemporary objects and furniture, designed 
in the 21st century but crafted with exquisite materials
and master craftsmanship from the 18th century. 
The designers include Asymptote, Edward Barber 
and Jay Osgerby, Tord Boontje, Matali Crasset and
Wales & Wales. 
� Located in London and New York, established 2008
� Sales contribution to Group 3%
� Launched in April 2008 at the Salone del Mobile 
in Milan
� Fig Leaf wardrobe selected as Design of the Year
for 2008 by the Financial Times.
ONE OF A PAIR OF GEORGE II WALNUT OPEN ARMCHAIRS
These heraldic banqueting chairs, designed in the George II
'antique' manner, display ermine banded and acanthus wrapped
cartouches with the legs headed by the Astley family crest of
feathers and a ducal coronet, standing on carved paw feet.
England, circa 1730
DIAMONDS ARE A GIRLS BEST FRIEND 2
Matali Crasset has beautifully re-invented the cheval mirror of
the 19th century, to create a contemporary masterpiece. The
three bevelled glass panels act as both mirror and dressing
screen. The back of the mirror is as perfectly finished as the
front. It is upholstered in red Moroccan leather, cut and
stitched by an atelier in Paris.  3
Annual Report and Accounts 2009
British Art from the 17th century to the present day with
an emphasis on less established names of the 18th and
19th centuries. The gallery also promotes traditional
figurative contemporary art, thus displaying an eclectic
mix of paintings that are united through their British
origin and quality.
� New gallery launched in Chelsea, London, April 2008
� Sales contribution to Group 11%
� Held two exhibitions in the gallery during the year.
One of the world’s longest established restorers of
furniture and works of art. With a reputation for skilled
workmanship restoring and conserving furniture and
works of art for Royal, private and museum collections
throughout the world, the business is now based in a
fine 18th century building in Clapham, London, from
where its highly experienced and skilled craftsmen
restore a wide range of items from the decorative arts.
� Located in London, established 1834
� Sales contribution to Group 2%.
SAWREY GILPIN (1733-1807)
An English Springer Spaniel in a landscape (oil on canvas)
Sawrey Gilpin was a member of an old Cumberland family who
chose a career in sporting painting. He suffered from being
under the shadow of his incomparable contemporary George
Stubbs, but he has emerged as a leading horse and animal
painter of a competence which is always reliable and
occasionally inspired.  4
Annual Report and Accounts 2009
Against the background of one of the most difficult years for the UK retail sector in
generations, Mallett made strategic and operational progress. We had anticipated
a very tough year. We planned our business on lower sales and focused on cash
management. We reduced our cost base significantly and managed our inventory
more pro-actively to decrease the amount of capital invested in inventory while
retaining the outstanding quality and range that the Mallett brand represents.
Chairman’s Statement
Our operating loss decreased by £4.2m from the prior
year to £1.8m in 2009, and our cash position improved 
by £3.1m, from net debt of £2.3m at the start of the year
to a net cash surplus of £0.8m at the end of the year. 
We said in March 2009 that establishing an appropriate
cost base was a strategic priority, and we made good
progress towards achieving this aim by reducing our
operating costs by £2m in the year. We are as yet 
only part of the way through the task of re-engineering
Mallett’s business model in order to align its proposition
and organisational structure with the demands of a
rapidly evolving marketplace. We are committed to
pursuing this process during 2010.
Our balance sheet remains strong with net assets of
£18.6m. Our inventory level reduced from £16.1m at 
the start of the year to £12.3m at the end of the year.
However, we are now accepting many more items on
consignment to sell on behalf of the owner, rather than
purchasing the item ourselves. At the end of the year we
had approximately £8m of items in our showrooms which
we are selling on consignment. This strategy has been
very successful in maintaining a freshness and high
quality to our stock whilst at the same time reducing
capital investment.
Whilst we successfully stabilised the business after 
the sharp decline in sales and market confidence in 
the last quarter of 2008, we recognise that 2009 was 
still a loss-making year and further progress needs to 
be made. The Board did not declare an interim dividend
for 2009 and it is not recommending a final dividend for
the year. We are, however, committed to returning to
paying a dividend once it is financially prudent to do so.
We are cautious about expecting any significant growth
in 2010. The collapse of confidence in the banking sector
at the end of 2008 made our clients a great deal more
cautious in their spending and the pace at which that
confidence can be rebuilt remains uncertain. We will
continue to focus on costs and cash management whilst
reinforcing our reputation for having the finest 18th and
19th century English and Continental furniture and objets
d’art through selected marketing and well-chosen items
of stock, both purchased and taken on consignment.
Lord Daresbury
Chairman 5
Annual Report and Accounts 2009
THE WARRENGHEIM CHANDELIER
An extremely rare Louis XIV ormolu eight-light chandelier
attributed to André-Charles Boulle, royal cabinet maker and
sculptor to King Louis XIV of France and one of the most
celebrated craftsmen of late 17th century Europe. This
magnificent chandelier is designed in the Louis XIV ‘antique’
manner, with its caryatids of the huntress Diana and busts
of Pan along with its acanthus wrapped baluster vase stem.
Several distinguishing features of this chandelier can also be
found in other chandeliers attributed to Boulle in important
museum, noble and private collections.
France, circa 1680
NEW STOCK 6
Annual Report and Accounts 2009
SOLD IN 2009
ADAM PERIOD MARQUETRY COMMODE
This commode, in satinwood crossbanded in
tulipwood, was almost certainly made by the
London cabinet makers John Mayhew and
William Ince who ranked the King and the 4th
Duke of Marlborough among their distinguished
aristocratic clients. The decoration on this
cabinet relates to Mayhew and Ince’s marquetry
style in the 1770s and 1780s. The illusion of
depth is created by delicate surface pen work
engraving on the exotic inlaid woods that
contrasts against the pale satinwood ground.
England, circa 1770 7
Annual Report and Accounts 2009
Market conditions
The decorative arts market was, as expected, a 
difficult market to operate in during 2009. According to
independent research commissioned by TEFAF , the market
for fine and decorative art fell by 26%, with auction sales
slipping even further, down 32% on 2008. The high point 
of the year came early, when Yves Saint Laurent’s furniture
and furnishings were auctioned in Paris in February,
achieving the highest ever total sale value of furniture sold
at auction. This included the world’s most expensive chair,
Eileen Gray’s “dragon chair”, sold at £19.6m. The changing
nature of the market was highlighted by the announcement
in June that the Grosvenor House Art and Antiques Fair,
the world-renowned fair for English antique furniture, was
closing after 75 years, and the announcement in July that
Partridge Fine Art, a direct competitor of Mallett, was
being placed in administration. 
Against this background, Mallett outperformed
expectations, increasing turnover, significantly improving
its cash position and moving to a more stable financial
base from which to trade during these constrained times
and grow when the opportunity arises.
Trading performance
The Group made an operating loss for the year to 31
December 2009 of £1.8m (2008 - £6.0m). This represents a
£4.2m improvement from the previous year and is primarily
the result of £3.0m lower inventory provisions charged this
year compared to the prior year and a decrease of £2.0m
in operating costs this year compared to the prior year,
offset by a reduction in margins. 
Group turnover increased by 15% to £14.0m (2008 -
£12.1m). The US continues to be our largest market 
for sales, with 47% (2008 - 53%) of our sales being to 
US clients. UK clients are our next largest market, at 
29% (2008 - 27%), and clients from Continental Europe
represent 18% (2008 - 16%). Total turnover included the
proceeds of the sale of 59 items at a Christie’s auction 
in July (£0.7m, in line with book value). 
We continued to experience increasing pressure on
margins, due both to market conditions and to a
consciously different approach to stock management. 
We believe that it is essential to reinforce Mallett’s
reputation for excellence in a market that is becoming
more specialised, with purchasers now tending to focus
increasingly on exceptional, individual pieces rather than
on furnishing entire houses from one source. During the
year we therefore accepted many more items on
consignment to sell on behalf of the owner, rather than
purchasing the items ourselves. This has the benefit of
enabling us to offer our clients exceptional pieces of
furniture and objets d’art without having to invest any
further cash. Sales of these items are generally at lower
margins, reflecting the significantly lower risk attributed 
to Mallett from pursuing this strategy. 
Costs
One of our stated aims for 2009 was to establish an
appropriate cost base for the business for the future. 
In pursuit of this objective, we reduced our operating
costs by £2m in the year through a combination of 
minimal additional spend on Meta, reduced marketing
spend and staff reductions. Average staff numbers 
have reduced by 10 employees from the prior year 
to 43 employees (2008 - 53); this included a number 
of redundancies made in the first quarter of the year.
Another of our stated aims for 2009 was to put in place 
a better remuneration structure linked to performance
against expectations. I feel that the successful
implementation of this objective was a key driver 
of performance and I am delighted that we were 
able to pay a small level of bonus to staff as a result. 
We reduced our marketing spend in order to focus 
more closely on the key fairs of the year. Our sales mix
was reflected in our marketing campaign: during the year 
we exhibited at 3 fairs in the US, 1 fair in the UK and 1 in
Continental Europe. We also held specialist exhibitions 
in our showrooms of jewellery, wallpaper and Willy Rizzo
ballet photographs, all of which generated significantly
increased footfall, and we published one catalogue. 
We made a number of improvements to our website,
bearing in mind that, as the speed and quality of images
sent over the internet increases, pre-selection of items 
to view becomes easier and footfall in showrooms
decreases. We plan to continue to align our marketing
spend with market conditions.
We continue to work on improving our cost base in order
to return Mallett to profitability on a sustainable basis. In
line with this strategy and as previously stated, we remain
committed to reducing our rental costs by relocating; we
will take action to do so as soon as the net cash
cost/benefit is acceptable.
Subsidiary businesses
James Harvey British Art had a successful year, increasing
turnover by 27% to £1.6m (2008 - £1.2m) and achieving a
small operating profit (2008 - £0.2m loss). I am pleased to
report that since the year end James Harvey has agreed
to purchase a 40% stake in James Harvey British Art from
Mallett, underlining his commitment to the business and
ensuring that Mallett’s pictures continue to be marketed
by a respected expert in the field of British paintings.
Chief Executive’s Report
Mallett outperformed expectations,
increasing turnover and significantly
improving its cash position. Meta costs were scaled back significantly in 2009, with its
products being sold through the Mallett showrooms and its
marketing included within the Mallett marketing. This has
resulted in an increase in turnover to £0.4m (2008 - £0.3m)
and a small operating profit (2008 - £1.9m loss). Hatfields,
however, had a disappointing year. Third party turnover
remained flat but the level of work from Mallett decreased,
and this led to a small operating profit in 2008 becoming
an operating loss of £0.1m in 2009. Staff numbers have
been reduced and the management structure re-organised
to better reflect the level of work anticipated in 2010 and
hence improve operating performance.
This year, Mallett will be a founder member, with 
four equal partners, of Masterpiece 2010, a new fair 
in London in June that aims to showcase the “best 
of the best” from around the world. 
Balance sheet
Shareholders’ equity at 31 December 2009 was 
£18.6m (2008 - £21.2m). The £2.6m reduction in the 
year represents the loss for the year, adverse exchange 
rate movements and actuarial losses from the Group’s
defined benefit pension scheme.
Inventory value reduced to £12.3m at 31 December 
2009 (2008 - £16.1m). This reflects our focus on cash
management during the year and our expectation 
of lower sales in the year, which meant that we purchased
significantly fewer items than in previous years. Our
strategy of accepting more items on consignment,
however, has maintained the number and quality of items
for sale, and at 31 December 2009 we had approximately
£8m worth of consignment stock items in our showrooms.
This amount is not included in our inventory value as we
do not have any ownership over the items and have no
significant risk attached to the items.
The deficit in the Group’s defined benefit pension
scheme has increased slightly to £1.6m (2008 - £1.5m).
£0.7m of actuarial losses were incurred in the year due to
the worsening market conditions but these were offset by
contributions made in the year. In addition, a number of
members transferred their benefits out of the scheme
during the year which has helped reduce the present
value of the liabilities in the scheme by £2.6m to £5.4m
(2008 - £8.1m). The scheme was closed to future accrual 
in 2008 and we are comfortable that the liability of the
scheme is contained.
Cashflow
Our cash position has improved significantly during the
year to a cash surplus of £0.8m at 31 December 2009
(2008 - £2.3m net debt). The primary driver behind this
improvement of £3.1m was the reduced level of inventory
purchases we made during the year. Due to our improved
cash position we decided not to renew the additional
£1m overdraft facility we obtained from Coutts & Co at
the end of 2008 and have reverted to an overdraft facility
of £2.5m. This was renewed with Coutts & Co in March
2010 for 12 months with a fixed and floating charge over
the Group’s UK assets, which reflects the more cautious
approach of banks to offering lending facilities following
the banking crisis.
Outlook
We are cautious about the prospect of growth in 
2010 as concerns remain about the strength of the
economy in both the UK and the US. Our strategy will
continue to focus on optimising our cost base whilst
carefully targeting our marketing in order to highlight
Mallett’s unique strengths in selecting and offering the
very best 18th and 19th century English and Continental
furniture and objets d’art.
Giles Hutchinson Smith 
Chief Executive
8
Annual Report and Accounts 2009
Chief Executive’s Report continued
SOLD IN 2009
SIR ALFRED MUNNINGS (1878-1959)
THE WHITE CANOE
Munnings had a strong desire to draw and paint
from an early age and painting mainly in the open
air, his subjects came to embrace horses, ponies,
cattle, local race meetings and country fairs, each
with a sense of light and free handling of paint
which today classes him as an important exponent
of English Impressionism. 9
Annual Report and Accounts 2009
Lord Daresbury
Non-Executive Chairman, aged 56
Lord Daresbury joined the Company as a Non-
Executive Director in 2007 and was appointed Non-
Executive Chairman of the Company on 1 January
2009. He is currently Non-Executive Director of Jockey
Club Racecourses, Non-Executive Chairman of Nastar
plc and Non-Executive Chairman of Stellar Diamonds
plc. Formerly, he was Chief Executive of The Greenalls
Group plc and following the sale of the Pubs and
Restaurant Division to Scottish & Newcastle at the 
end of 1999, he became Non-Executive Chairman 
of the Company, which was re-named De Vere Group
plc. He retired from De Vere Group in April 2006.
Giles H. Hutchinson Smith 
Chief Executive, aged 47
Giles joined the Company in 1983 before leaving 
in 1987 to spend time in America and at Aspreys 
in London. He re-joined the Company in 1993, and
became a director of the Company in 1999. He was
appointed Chief Executive in January 2009 and is
actively involved in the buying and selling of stock 
for the Group. He is currently Vice Chairman of the
British Antique Dealers Association and also serves 
on numerous vetting committees of international art
and antique fairs. 
Michael A. Smyth-Osbourne 
Finance Director and Company Secretary, aged 43
Michael joined the Company, as Finance Director, in
2006. Previously he was Head of Corporate Finance 
at National Grid plc and Lattice Group plc, having
qualified as a chartered accountant with Deloitte &
Touche in 1992.
M. Henry G. Neville 
Sales & Marketing Director, aged 50
Henry joined the Company in 1984 and became 
a director of the Company in 1999. He is currently
President of Mallett, Inc. with responsibility for the
Group’s New York showroom having moved to New
York in 2006, as well as being responsible for the
Group's sales and marketing. He has been Chairman 
of the British Antique Dealers Association and
President of the International Trade Federation 
CINOA. He has published a number of articles on 
the decorative arts, particularly with reference to 
food and dining in the 18th and 19th centuries. 
Thomas E. Woodham–Smith 
Operations Director, aged 48
Thomas joined the Company in 1985 and became a
director of the Company in 1999. He has specialised 
for many years in continental furniture and is
responsible for the Company’s buying in that area. 
He is also responsible for the Bond Street showroom
and is the Company's representative on the Board of
Masterpiece London Limited. He currently serves on
the vetting committee of five art and antiques fairs in
London and America. 
James Heneage
Independent Non-Executive Director and Chairman 
of the Audit and Remuneration Committees, aged 52
James was the founder of the Ottakar’s chain of
bookshops which he created in 1987, floated on 
the London Stock Exchange in 1998 and sold to
Waterstone’s, part of HMV UK, in 2006. Prior to 
that he spent five years in the advertising industry,
ending as an Account Director at Ogilvy and Mather.
Board of Directors Report of the Directors 
Year ended 31 December 2009
The directors of Mallett plc have pleasure in submitting
their annual report together with the audited financial
statements for the year ended 31 December 2009.
Activities and Business and Financial Review
The principal activities of the Group during the year were
dealing in high quality antique furniture and works of art. 
A review of the activities of the Group is given in the
Chairman’s Statement on page 4 and the Chief Executive’s
Report on pages 7 and 8.
Results
The results for the year are set out in full on page 23. The
operating loss, before interest, amounts to £1,823,000 (2008
- £5,987,000). After receiving net interest of £82,000 (2008 -
£14,000) the loss on ordinary activities before taxation
amounts to £1,774,000 (2008 - £5,973,000). After crediting
taxation of £166,000 (2008 - £1,694,000), there remains a 
loss of £1,608,000 (2008 - £4,279,000).
Principal Risk and Uncertainties
The Group’s operating results and liquidity are significantly
influenced by a number of risk factors, many of which are
not within its control. These factors, which are not ranked 
in any particular order, include:
The strength of the UK and US economies and 
financial markets
The antique and fine art market in which the Group
operates is centred on London and New York and is
influenced by the overall strength of the UK and US
economies. Historically, over 70% of the Group’s sales 
are to UK and US clients.
The demand for antique furniture and works of art
The demand for antique furniture and works of art is
influenced not only by the economic conditions but also 
by changing trends in the art market as to which kinds of
property are most sought after and by the collecting
preferences of individual collectors, all of which can be
unpredictable.
Key personnel
The knowledge and expertise of the Group’s buyers in
acquiring pieces of high quality and good value is critical to
maintaining the Company brand and to the success of the
Group. The ability of the Group’s sales team to develop and
maintain relationships with potential buyers of antique
furniture and works of art is critical to the success of the
Group. Accordingly, the Group is highly dependent upon
attracting and retaining appropriately qualified personnel.
Competition
The art market is highly competitive, including competition
with other art dealers and with auctioneers.
Value of artworks
The antique furniture and works of art market is not a highly
liquid trading market, as a result of which the realisable
value of inventory is relatively subjective and often
fluctuates over time.
Foreign currency exchange rate movements
A significant proportion of the Group’s sales are in US
Dollars and a number are in Euros. Accordingly, fluctuations
in exchange rates can have a significant impact on the
Group’s results.
Retirement benefit pension obligations
Future costs and obligations relating to the Group’s defined
benefit pension scheme are significantly influenced by
changes in interest rates, investment performance in the
debt and equity markets and acturial assumptions, each 
of which is unpredictable.
Financial Risk Management
The main financial risks to the Group relate to the
availability of funds to meet its business needs. Further
disclosure on the Group’s financial risk management can 
be found in note 3 and note 18 to the accounts.
Key Performance Indicators
The directors consider the following to be key performance
indicators of the Group:
Financial 2009 2008
Turnover (£’000) £13,980 £12,109
Gross margin 0.2% (32.92)%
Operating loss (£’000) (£1,823) (£5,987)
Net cash/(debt) (£’000) £819 (£2,264)
Net assets per share £1.35 £1.54
Non financial
Customer satisfaction
We strive to improve our service to new and existing
customers, ensuring high standards of customer satisfaction.
Employee development and turnover
We are committed to attracting and retaining the highest
calibre of employees and developing their professional
careers.
Dividends
There was no interim dividend paid in 2009 (2008 – nil) and
the directors do not recommend a final dividend for 2009
(2008 – nil).
Directors
The names of the directors who served the Company during
the year are shown below. Details of their biographies are
on page 9.
Lord Daresbury*
J.A. Heneage*
G.H. Hutchinson Smith
M.H.G. Neville
M.A. Smyth-Osbourne
L.M. Synge (retired 13 January 2009)
T.E. Woodham-Smith
* non-executive
10
Annual Report and Accounts 2009 Directors’ Interests
Details of the directors’ interests in the Company’s share
capital are included in the Directors’ Remuneration Report
on pages 19 and 20.
Apart from service contracts, none of the directors had a
material beneficial interest in any contract in which the
Company or any of its subsidiaries was a party during the year.
There were no changes in the interests of the directors
between 31 December 2009 and 19 April 2010.
Share Capital and Control
The issued share capital of the Company consists of
13,800,060 ordinary shares of 5 pence each. On 29 June
2009 and pursuant to the return of cash to shareholders
approved by shareholders on 6 June 2007, the Company
repurchased 67,217 non-cumulative non-voting preference
shares of 37.45 pence each in the capital of the Company
(“B Shares”) for an aggregate amount of £38,985, following
which the B Shares were cancelled. At the time of the
repurchase, the B Shares represented 0.8% of the called 
up share capital of the Company. On 12 November 2009, 
in accordance with the Company’s Articles, the Company
cancelled 6,815,812 deferred shares which had been
created as part of the return of cash to shareholders
approved by shareholders on 6 June 2007, for no
consideration. Further details of the share capital of 
the Company are set out in note 22 to the accounts.
There are no restrictions on the transfer of securities in the
Company other than those imposed by law and regulations
and pursuant to the Listing Rules of the Financial Services
Authority whereby directors and senior employees of the
Group may require the approval of the Company to deal.
The Company is not aware of any agreements between
holders of securities that may result in restrictions on the
transfer of securities in the Company.
The full rights and obligations attached to each class of
share, in addition to those conferred on their holders by
law, are set out in the Company’s Articles of Association, a
copy of which can be obtained by writing to the Company
Secretary. The Articles of Association also set out the rules
governing the appointment and replacement of the board
members. Any changes to the Articles of Association must
be approved by special resolution of the Company.
The Group operates a Share Incentive Plan for the benefit
of all its employees. The shares are held in a trust on behalf
of the employees. As at 31 December 2009 the trust held
381,032 ordinary shares and any voting or other similar
decisions relating to those shares would be taken by the
trustees, who may take account of the recommendations 
of the Company and the employees.
The Group also operates a Long Term Incentive Plan for 
the benefit of its directors. The shares are held in a trust on
behalf of the directors. As at 31 December 2009 the trust
held 111,308 ordinary shares and any voting or other similar
decisions relating to those shares would be taken by the
trustees, who may take account of the recommendations 
of the Company and the employees.
At the Company’s 2009 Annual General Meeting
shareholder authority was given to purchase up to 10% 
of the Company’s ordinary shares. The directors intend 
to seek shareholder approval to renew this authority at 
this year’s Annual General Meeting. 
There are no significant agreements to which the Company
is a party which take effect, alter or terminate in the event 
of a change of control of the Company. There are also no
agreements providing for compensation for directors or
employees on change of control.
Substantial Shareholdings
As at 19 April 2010, the Company has received notification
of the following substantial shareholdings amounting in
each case to more than 3 per cent of the issued share
capital of the Company:
5p Ordinary Shares %
The Weinstock Trust Additional Fund 4,130,000 29.93
Delta Deelnemingen Fonds 1,250,000 9.06
Church House Investments 1,150,000 8.33
P .M. Maitland 700,000 5.07
VPV Bankers NV 668,200 4.92
Mrs. S. Fenwick 534,000 3.87
H.M. Van Heijst 506,600 3.67
L.M. Synge 465,018 3.37
Close Company Status
The company is not a close company within the meaning 
of the Income and Corporation Taxes Act 1988.
Creditor Payment Policy
Whilst the Group does not follow any published code 
or standard on payment practice, it continues to be the
Group’s policy to pay its suppliers in the middle of the
month following receipt of the invoice except in certain
cases where the Group agrees special terms, in which case
it is the Group’s policy to ensure the supplier is aware of
them and to abide by those terms provided the supplier 
has performed in accordance with the relevant terms and
conditions. As at the financial year end the number of 
days purchases outstanding was thirty days, excluding
transactions with special credit terms.
Approval of Directors’ Remuneration Report
In accordance with the Companies Act 2006, directors of
quoted companies are required to prepare a remuneration
report which must be approved by the members of the
company at the meeting at which the company’s annual
accounts are to be laid.
The Directors’ Remuneration Report contains inter alia
details of the directors, a forward looking statement of 
the Company’s policy on directors’ remuneration for
subsequent financial years, a performance graph showing
the Company’s total shareholder return and the return on 
a hypothetical holding of similar shares to those on which 
a broad equity market index is calculated, details of the
directors’ service contracts and specific disclosures relating
to each director’s remuneration.
Report of the Directors continued
Year ended 31 December 2009
11
Annual Report and Accounts 2009 Report of the Directors continued
Year ended 31 December 2009
Resolution 2 will be proposed at the 2010 Annual General
Meeting as an ordinary resolution to approve the directors’
remuneration report for the year ended 31 December 2009
as set out on pages 16 to 20 of these accounts.
Auditors and disclosure of information to Auditors
Each of the directors confirms that, so far as he is aware, 
there is no relevant audit information of which the Company’s
auditors are unaware and that he has taken all steps that he
ought to have taken as a director in order to make himself
aware of any relevant audit information and to establish that
the Company’s auditors are aware of that information.
Annual General Meeting
The 2010 Annual General Meeting will be held at 141 New
Bond Street, London W1S 2BS on 27 May 2010 at 4.00 pm
The notice for the 2010 Annual General Meeting is included
in these accounts on page 49. The business to be transacted
at the Annual General Meeting includes the following:
Resolutions 3 and 4 – Election of Directors (ordinary
resolutions)
The Articles of Association of the Company state that 
those directors who have held office for more than 30
months since appointment or re-appointment shall retire
but be eligible for re-appointment. Accordingly, Henry
Neville and Michael Smyth-Osbourne, who were both re-
appointed as directors in June 2007, have again offered
themselves for re-appointment. Please refer to page 9 
for further details of these directors.
Resolution 6 – Authority to allot shares or grant
subscription or conversion rights (ordinary resolution)
Resolution 6 seeks authority from shareholders under
section 551 Companies Act 2006 (the “2006 Act”) 
for the directors to allot shares or grant such subscription 
or conversion rights as are contemplated by sections
551(1)(a) and (b) respectively of the 2006 Act up to a
maximum aggregate nominal value of £230,001, being
approximately one-third of the nominal value of the issued
ordinary share capital of the Company as at 19 April 2010.
The authority will expire five years from the date of the
passing of the resolution (unless previously revoked or
varied by the Company in general meeting). The resolution
replaces a resolution passed under section 80 of the
Companies Act 1985 (the “1985 Act”) at the Annual 
General Meeting of the Company held on 28 May 2009. 
The directors have no present intention of exercising 
such general authority.
Resolution 7 – Purchase of own shares by the Company
(special resolution)
Resolution 7 seeks authority from shareholders for the
Company to make market purchases of ordinary shares 
of 5p in the capital of the Company (“Ordinary Shares”),
such authority being limited to the purchase of 10% of the
Ordinary Shares in issue as at 19 April 2010. The maximum
price (exclusive of expenses) payable for the purchase by
the Company of its own Ordinary Shares will be limited to
5% above the average price at which deals are done in the
Ordinary Shares taken from the Appendix to The London
Stock Exchange Daily Official List for the five business days
before the purchase is made. The minimum price payable
by the Company for the purchase of its own Ordinary
Shares will be 5p per share (being the amount equal to 
the nominal value of an Ordinary Share). The authority to
purchase the Company’s own Ordinary Shares will only be
exercised if the Directors consider that there is likely to be 
a beneficial impact on earnings per Ordinary Share and 
that it is in the best interests of the Company at the time.
There were no options to subscribe for Ordinary Shares
outstanding as at 19 April 2010 (being the latest practicable
date prior to publication of this document).
Resolution 8 – Adoption of new Articles of Association
(special resolution)
On 8 November 2006, the 2006 Act received Royal Assent. 
At that time it was announced that all of the provisions of 
the 2006 Act, which overhaul the 1985 Act, would be in force
by October 2008. This date was then postponed until
October 2009. In order to reflect those provisions of the 
2006 Act that had already or were coming into force in 2007
and 2008 certain changes were made to the Company’s
Articles of Association at the Annual General Meeting of 
the Company held on 3 June 2008 (the “Existing Articles”).
Further changes came into force in 2009 and, consequently, 
a number of further changes are required or recommended
to the Existing Articles to reflect these developments.
Resolution 8 proposes the adoption of new Articles of
Association (the “New Articles”) in substitution for the
Existing Articles which will incorporate the following changes:
The Company's Objects
The provisions regulating the operations of the Company
are currently set out in the Existing Articles and the
Company's memorandum. The Company's memorandum
contains, among other things, the objects clause which sets
out the scope of the activities the Company is authorised to
undertake. This is drafted to give a wide scope.
The 2006 Act significantly reduces the constitutional
significance of a company's memorandum. The 2006 Act
provides that a memorandum will record only the names of
subscribers and the number of shares each subscriber has
agreed to take in the Company. Under the 2006 Act the
objects clause and all other provisions which are currently
contained in a company's memorandum, for existing
companies at 1 October 2009, will be deemed to be
contained in a company's articles of association but the
company can remove some of these provisions by special
resolution.
The 2006 Act states that unless a company's articles provide
otherwise, a company's objects are unrestricted. This
abolishes the need for companies to have objects clauses.
For this reason the Company is proposing to remove its
objects clause which, by virtue of the 2006 Act, has been
treated as forming part of the Existing Articles since 1
October 2009. Resolution 8 confirms the removal of these
provisions for the Company. As the effect of this resolution
will be to remove the statement currently in the Company's
memorandum regarding limited liability and the location of
the Company's registered office, the New Articles also
contain express provisions reflecting these statements.
Change of name
Under the 1985 Act, a company could only change its name
by special resolution. Under the 2006 Act a company will be
able to change its name by other means provided for by its
12
Annual Report and Accounts 2009 articles. To take advantage of this provision, the New
Articles enable the directors to pass a resolution to change
the Company's name.
Authorised Share Capital
The 2006 Act abolishes the requirement for a company 
to have an authorised share capital and the New Articles
reflect this. Directors will still be limited as to the number 
of shares they can at any time allot because allotment
authority continues to be required under the 2006 Act, 
save in respect of employee share schemes.
Redeemable Shares
Under the 1985 Act if a company wished to issue
redeemable shares, it had to include in its articles the terms
and manner of redemption. The 2006 Act enables directors
to determine such matters instead provided they are so
authorised by the articles. The New Articles contain such 
an authorisation. The Company has no plans to issue
redeemable shares but if it did so the directors would need
shareholders' authority to issue new shares in the usual way.
Authority to purchase own shares, consolidate and sub-
divide shares, and reduce share capital
Under the 1985 Act a company required specific enabling
provisions in its articles to purchase its own shares, to
consolidate or sub-divide its shares and to reduce its 
share capital or other undistributable reserves as well as
shareholder authority to undertake the relevant action. 
The New Articles include these enabling provisions. 
Under the 2006 Act a company will only require shareholder
authority to do any of these things and it will no longer 
be necessary for articles to contain enabling provisions.
Accordingly, the relevant enabling provisions have been
amended in the New Articles.
Use of seals
Under the 1985 Act a company required authority in its
articles to have an official seal for use abroad. Under the 
2006 Act such authority will no longer be required.
Accordingly, the relevant authorisation has been amended in
the New Articles to reflect the approach taken in the model
articles for public companies set out in secondary legislation.
Suspension of registration of share transfers
The Existing Articles permit the directors to suspend the
registration of transfers. Under the 2006 Act share transfers
must be registered as soon as practicable. The power in the
Existing Articles to suspend the registration of transfers is
inconsistent with this requirement, and so this power has
been removed accordingly in the New Articles.
Vacation of office by Directors
The Existing Articles specify the circumstances in which 
a director must vacate office. The New Articles update
these provisions to reflect the approach taken on mental
and physical incapacity in the model articles for public
companies set out in secondary legislation.
Directors' indemnities
The 2006 Act has in some areas widened the scope of the
powers of a company to indemnify directors and to fund
expenditure incurred in connection with certain actions. 
In particular, a company that is a trustee of an occupational
pension scheme can now indemnify a director against liability
incurred in connection with the company's activities as trustee
of the scheme. The New Articles set out this widened scope. 
Adjournments for lack of quorum
Under the 2006 Act as amended by the Shareholders'
Rights Regulations, general meetings adjourned for lack 
of quorum must be held at least 10 clear days after the
original meeting. The New Articles have been changed 
to reflect this requirement.
General
Generally the opportunity has been taken to bring clearer
language into the New Articles, remove provisions which
are redundant, and in some areas to conform the language
of the New Articles with that used in the model articles 
for public companies set out in secondary legislation. All
provisions relating to the B shares and the deferred shares
have also been removed.
Resolution 9 – Calling of general meetings (special
resolution)
Resolution 9 seeks authority from shareholders to hold
general meetings (other than Annual General Meetings) 
on 14 days' clear notice. This is permissible under the
Existing Articles and the 2006 Act. However, pursuant to 
the Shareholders' Rights Regulations, specific shareholder
approval is required annually in order to retain this ability.
The directors believe that there may be circumstances 
in which it will be important for the Company to be able 
to call meetings at such short notice. Accordingly, the
directors believe that it is important for the Company 
to retain this flexibility.
The Board believes that the resolutions to be put to the
Annual General Meeting are in the best interests of the
shareholders as a whole and accordingly recommends 
that shareholders vote in favour of the resolutions, as the
directors intend to do in respect, where applicable, of 
their beneficial holdings in the Company.
Auditors’ Independence and Objectivity
The Board recognises the importance of ensuring the
independence and objectivity of the Company’s auditors. 
It reviews the nature and extent of the services provided by
them, the level of their fees and the element comprising
non-audit fees. Details of these are disclosed in note 6 to
the accounts. The Board also receives annual confirmation
from the auditors of their independence. 
A resolution will be proposed at the 2010 Annual General
Meeting to re-appoint Menzies LLP as auditors to the
Company for the ensuing year and authorising the directors
to fix their remuneration.
By order of the Board
M.A. Smyth-Osbourne ACA
Secretary
19 April 2010
Report of the Directors continued
Year ended 31 December 2009
13
Annual Report and Accounts 2009 Corporate Governance
Year ended 31 December 2009
Application Of Combined Code Principles
Throughout the year, except where indicated in this 
report, the Company complied with the provisions of the
Combined Code on Corporate Governance  (2008 edition)
issued by the Financial Reporting Council (the “Combined
Code”). The Company is committed to the principles of
corporate governance contained in the Combined Code
and aims to comply with established best practice
whenever possible and when it is in the Company’s best
interests. Further information on the Combined Code can
be found at the Financial Reporting Council’s website at
www.frc.org.uk.
The Board
Throughout the year the Board consisted of a non-
executive Chairman, separate Chief Executive, one
independent non-executive director and at least three 
other executive directors. Until 13 January 2009 the Board
included five executive directors, at which point Lanto
Synge retired from the Board and Giles Hutchinson Smith
was appointed Chief Executive, reducing the number of
executive directors to four. 
The Board considers the non-executive director to be
independent of management and free from any business 
or other relationship which could interfere with the exercise
of his independent judgement. He has not previously been
employed by the Company and the Board believes that his
interest in receiving fees as a director does not prejudice 
his independence. He brings an independent judgement 
to bear on issues of strategy, performance, resources, 
the appointment of executive directors and other key
appointments, and standards of conduct. He is also the
senior independent non-executive director. The Board
recognises that having only one independent non-
executive director throughout the period under review 
is not in compliance with A.3.1 of the Combined Code
which requires the Company to have two independent 
non-executive directors. However, the Board believes the
current make-up of the Board is appropriate for Mallett
given its size and operational characteristics.
The Board met twelve times during the year and 
all directors attended all the meetings except Giles
Hutchinson Smith who was absent for one of the meetings. 
The Board has a formal schedule of matters specifically
reserved to it for decisions. This includes the determination
of strategy, the approval of business plans and budgets, 
the approval of acquisitions, disposal and major capital
purchases, and the approval of the annual and interim
reports of the Company, including the interim dividend 
and recommendation of the final dividend to shareholders,
and the appointment of directors.
The directors have the right to obtain external independent
professional advice at the Company’s expense. The
Company Secretary is responsible to the Board, inter alia,
for ensuring that Board procedures are followed and for
compliance with applicable rules and regulations, including
the Combined Code.
The Board has formal and informal procedures to monitor
its peformance both as individuals at annual appraisals and
as a Board or Committee.
Full details of the directors’ service contracts and
remuneration are given in the Directors’ Remuneration
Report on pages 16 to 20.
Relations With Shareholders
The Board is responsible for ensuring the Company
maintains a satisfactory dialogue with shareholders. A
number of meetings were held during the year between
members of the Board and the major shareholders of the
Company, including a presentation of the Group’s 2008
results in March 2009.
The Board welcomes as many shareholders as possible 
to attend the Annual General Meeting and encourages
discussion on issues of concern or areas of uncertainty.
Questions from shareholders are welcomed. A separate
resolution will be proposed at the Annual General Meeting
in respect of each substantially separate issue. There will
also be a separate resolution proposed in respect of the
report and financial statements.
Audit Committee
The Audit Committee is made up of all the non-executive
directors and is chaired by James Heneage. Two Audit
Committee meetings were held during the year which were
attended by all the members of the Audit Committee.
Those meetings were also attended by the Chief Executive,
the Finance Director and the external auditors.
The Audit Committee has written terms of reference, which
deal clearly with its authority and duties. The duties of the
Audit Committee include keeping under review the scope
and results of the audit, its cost effectiveness and the
independence and objectivity of the auditors.
Nominations Committee
No formal Nominations Committee has been set up by the
Board. All matters regarding the appointment of directors
are made by the Board as a whole. In view of the size of the
Company the Board considers it appropriate to undertake
this function as a whole. This is not in compliance with the
Combined Code which requires a nominations committee,
with the majority of members being independent non-
executive directors, to lead the process of Board
appointments.
Directors’ Conflicts Of Interest
On 1 October 2008 the new conflicts of interest regime 
for directors contained in the Companies Act 2006 came
into force. In compliance with the new conflicts of interest
regime, the Company’s Articles of Association contain
procedures to deal with directors’ conflicts of interest which
the Board fully implement. The Board considers that these
have operated effectively throughout the year.
Internal Control And Financial Reporting
The Company complies with the current requirements for
reporting and controls and has had an Audit Committee
14
Annual Report and Accounts 2009 throughout the year which is made up of all the non-
executive directors.
The Board has overall responsibility for the Group’s system
of internal control and has reviewed the effectiveness of 
the Group’s system of financial control during the year. 
The system is designed to provide reasonable but not
absolute assurance against material misstatement or loss.
The Group operates a comprehensive annual reporting 
and financial operating system which involves a review of
the results with projections on a monthly basis. At each 
of its meetings the Board reviews the performance of 
the major business units across the Group.
The Group has put in place an operational structure 
with clearly defined lines of authority and accountability,
particularly in the areas of capital and stock expenditure.
The effectiveness of the Group’s systems of internal control
is monitored by the Audit Committee and is reviewed on 
a regular basis. The review covers all controls, including
financial, operational and compliance controls and risk
management.
Going Concern
In consideration of going concern, the directors have
reviewed the Group’s future cashflow forecasts and revenue
projections which they believe are based on a realistic
assessment of future business performance. 
The Group’s forecasts and projections, taking account of
reasonable possible changes in trading performance, show
that the Group should be able to operate within the level 
of its agreed facilities. Therefore, the directors have a
reasonable expectation that the Group has adequate
resources to continue in operational existence for the
foreseeable future. For this reason, they continue to 
adopt the going concern basis in preparing the accounts.
Corporate Social Responsibility
The Company adopts a responsible attitude to Social
Environmental and Ethical (SEE) issues. The Board has
concentrated on suitable training and health and safety
measures to ensure compliance with best practice.
Corporate Governance continued
Year ended 31 December 2009
15
Annual Report and Accounts 2009 Directors’ Remuneration Report
Year ended 31 December 2009
This report has been prepared in accordance with the
Companies Act 2006. The report also meets the relevant
requirements of the Listing Rules of the Financial Services
Authority and describes how the Board has applied the
principles relating to the directors’ remuneration in the
Combined Code. As required by the Act, a resolution to
approve the report will be proposed at the Annual General
Meeting of the Company at which the financial statements
will be approved.
The Companies Act 2006 requires the auditors to report to
the Company’s members on certain parts of the Directors’
Remuneration Report and to state whether in their opinion
those parts of the report have been properly prepared in
accordance with the Companies Act 2006. This report has
therefore been divided into separate sections for audited 
and unaudited information.
PART 1 – UNAUDITED INFORMATION
The Remuneration Committee
The role of the Remuneration Committee is to establish
Board policy in respect of terms of employment, including
remuneration packages, for each executive director and
certain senior managers, and to monitor their development
programmes. The Remuneration Committee seeks to
encourage the enhancement of the Group’s performance
and to ensure that directors are fairly, and responsibly,
rewarded for their individual contributions. Accordingly, it
can confirm that it has taken into account the provisions of
the Combined Code in framing its remuneration policy. The
Remuneration Committee consults with the Chief Executive
and Finance Director, who may be invited to attend some
meetings, and it has access to professional advice from both
internal and external sources in order to determine and
develop its policies.
During the year the Remuneration Committee comprised
James Heneage as Chairman and Lord Daresbury, being
both the non-executive directors, who are not paid for 
their services relative to the amount of work undertaken 
and do not receive any share options, bonuses or pension
entitlements. It met three times in the year and both
members attended the meetings.
Directors’ Remuneration Policy
The Company’s current and ongoing policy on remuneration
is to ensure that the remuneration packages for executive
directors are competitive and designed to attract, retain and
motivate individuals of the highest calibre, whilst at the same
time having regard to the pay and employment conditions
of employees throughout the Group.
The Remuneration Committee’s policy is that remuneration
packages should be competitive but not extravagant, and
should be broadly in line with the average packages in the
market in which the Company operates. In addition, there
should be a clear link between performance and
remuneration.
Reward Package
The remuneration policy is applied in respect of each
component part of the total remuneration package as follows:
Basic Salary
Basic salaries, including benefits, are set at levels consistent
with individual performance, and the market rate applicable
to jobs of similar complexity and responsibility. To measure
this, the Remuneration Committee reviews the basic salaries
of the executive directors annually.
Benefits
The term “benefits” includes the payment of a car allowance,
private health insurance and other non-cash taxable benefits.
Bonuses
All executive directors are eligible to receive performance
bonuses based on the profitability of the Group.
Performance bonuses are at the sole discretion of the
Remuneration Committee.
Pensions
The executive directors, except M. A. Smyth-Osbourne, are
members of the Group’s defined benefits pension scheme,
which will provide them, at normal retirement age (of 65
years old), with a pension of up to two thirds of their salary,
subject to length of service, HM Revenue and Customs
limits and other statutory rules. Spouses become entitled 
to 50% of the director’s pension entitlement following the
death of the director. This scheme is closed to new entrants
and was closed to future accrual from 30 June 2008.
On 1 July 2008 the Group set up a defined contribution
scheme, the Mallett Group Personal Pension Plan, for 
all employees, including directors, and the Group to
contribute into. The Group contributes up to 10% of salary
into the scheme dependent on the level of contribution 
by the employee. The company contributes to a separate
defined contribution scheme for M. A. Smyth-Osbourne.
Share Incentive Plan
The Group operates a share incentive plan to benefit all
employees. Under this plan each director has been awarded
Mallett plc ordinary shares (“Shares”) with a value of £3,000
in 2009. These Shares are held in trust and the directors only
become entitled to them if they remain in employment for
at least three years from the date of the award.
The plan also entitles employees, including directors, to
acquire at their own expense up to £1,500 worth of Shares
(Partnership Shares) in any one year to be held in trust
under a partnership agreement. The Company has agreed
to provide two matching Shares (Matching Shares) for every
Partnership Share purchased on behalf of the employee.
Any dividends received by the trustees on behalf of
employee shares held under the Share Incentive Plan 
are reinvested as Dividend Shares.
Details of the Directors’ interests held under the Share
Incentive Plan are shown on pages 19 and 20.
The entitlement of the directors under the Share Incentive
Plan is not subject to any performance conditions (though
they are subject to service conditions). This is because the
Share Incentive Plan is a plan for all employees of the
Company and no employees’ entitlement under it is subject
to performance conditions. Additionally, the aim of the plan
is to encourage employee shareholding in the Company.
16
Annual Report and Accounts 2009 Long Term Incentive Plan (“LTIP”)
The LTIP provides for the Remuneration Committee to grant
conditional awards over Shares to executive directors and
other employees of the Group, selected at the discretion 
of the Remuneration Committee.
An individual may not be granted awards in any financial
year over Shares having a market value at the award date in
excess of 100 per cent of the individual’s annual base salary.
On the grant of an award the Remuneration Committee shall
impose performance conditions and any further conditions
on vesting which it determines to be appropriate.
Awards will normally vest at the end of a performance period
of three years, as soon as the Remuneration Committee has
determined the extent to which the applicable performance
conditions have been met. The Remuneration Committee
may review the performance conditions for each grant of
awards and may vary the conditions of such awards,
provided they remain challenging and are aligned with 
the interests of shareholders.
The Remuneration Committee believes that earnings per
share adjusted to exclude exceptional items (“EPS”) is the
most appropriate performance measure on which to set the
conditions for vesting. Two awards existed during the year,
the 2007 Award and 2009 Award and the performance
conditions for each are as follows:
2007 Award
Proportion of  Annual EPS growth above RPI for the
award vesting period 1 January 2007 to 31 December 2009
0% Less than 3%
25% 3%
25%-100% pro-rata Greater than 3% but less than 6%
100% 6% or more
2009 Award
Proportion of  
award vesting EPS for the year ended 31 December 2011
0% Less than 3.0 pence
25% 3.0 pence
25%-100% pro-rata Greater than 3 .0 pence but less 
than 10.0 pence
100% 10.0 pence or more
The performance period for the 2007 Award ended on 
31 December 2009. The minimum performance conditions
for the 2007 Award were not met and therefore none of 
the awards have vested. It is currently intended that market
purchased Shares are used to fulfil the 2009 Award,
although there is flexibility to issue new Shares, subject 
to institutional guidelines.
Fees For Non–Executive Directors
The Board as a whole determines the remuneration of 
the non–executive directors.
Service Agreements
The Remuneration Committee reviews the position in
respect of the length of notice of termination under
directors’ service agreements and it is current policy for 
the Company to appoint executive directors subject to 
a service agreement requiring not more than 12 months’
notice to be given by either party. The Remuneration
Committee considers that the period of notice of
termination under directors’ service agreements is
appropriate in order to retain and recruit directors of a
suitable calibre. These appointments are subject to election
and re-election at the relevant annual general meeting
according to the Company’s Articles of Association.
G. H. Hutchinson Smith, M. H. G. Neville and T. E. Woodham-
Smith entered into director’s service contracts on 31 August
1999 and each has a notice period of 12 months. M. A.
Smyth-Osbourne entered into a director’s service agreement
on 6 November 2006 and it has a notice period of 6 months.
The executive directors have no contractual provisions for
compensation upon early termination (with notice) of the
contract. There is an entitlement to receive salary and benefits
during the period of notice, which may be paid ‘in lieu’ of 
all or part of any period of notice. There are no entitlements
to payments of any sort in the event that the Company
summarily terminates an executive director’s employment.
Independent non-executive directors do not have service
agreements and, in accordance with the Company’s
Articles of Association, their appointment may be
terminated at any time without compensation.
Performance Graph
As required by legislation regarding the Directors’
Remuneration Report, this graph illustrates the performance
of the Company measured by total shareholder return
(share price growth plus dividend paid) against a “broad
equity market index” over the past 5 years. The Company
has been a constituent of the FTSE Fledgling index
throughout this period, therefore this is considered to be
the most appropriate benchmark.
Notes: 1) The graph shows total shareholder return of a nominal
holding of £100 of Mallett plc shares measured against the total
shareholder return of an initial nominal holding £100 in the FTSE
Fledgling index over a 5 year period.
2) Dividends have been reinvested.
17
Annual Report and Accounts 2009
Directors’ Remuneration Report continued
Year ended 31 December 2009
180
160
140
120
100
80
60
40
20
0
Jan 2005 Jan 2006 Jan 2007 Jan 2008 Jan 2009 Jan 2010
Value of investment £
Mallett
Mallett TR
FTSE Fledgling
FTSE Fledgling TR 18
Annual Report and Accounts 2009
Directors’ Remuneration Report continued
Year ended 31 December 2009
PART 2 - AUDITED INFORMATION
Directors’ Emoluments
The emoluments of the directors were as follows:
2009 2008
£’000 £’000
Salaries and benefits 764 761 
Compensation for loss of office 234 - 
Payments made to non-executive directors 79 87 
1,077 848 
Company pension contributions and payments 62 194 
1,139 1,042 
2009 2009 2009 2009 2008 2009 2008
Basic salary Performance Pension Pension
and fees related bonus Benefits Total Total contributions contributions
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Executive Directors
L.M. Synge* 7 - 2 9 193 1 60 
G.H. Hutchinson Smith 129 33 20 182 120 13 36 
M.H.G. Neville 152 34 64 250 198 10 35 
M.A. Smyth-Osbourne 121 30 11 162 131 28 28 
T.E. Woodham-Smith 101 26 18 145 119 10 35 
Non–Executive Directors
Lord Daresbury 40 - - 40 20 - - 
J. Heneage 30 - - 30 20 - - 
* In addition to the above L.M. Synge received £234,000 on leaving the Company.
£9,167 (2008 - £5,000) was paid to Daresbury Properties Limited, a company controlled by Lord Daresbury, for office expenses
incurred in his role as non-executive director of the Company.
Directors’ Pensions
The Group’s defined benefit pension scheme was closed to future accrual on 30 June 2008. G.H. Hutchinson Smith, M.H.G.
Neville and T.E. Woodham Smith are deferred members of that scheme and the table below shows their accrued pension at the
year end.
Current age Director Accumulated total annual Transfer Value as at Increase in
contributions benefit on leaving service 31st December Transfer Value
during year Increase in year At end of year 2009 2008
£’000 £’000 £’000 £’000 £’000 £’000
G.H. Hutchinson Smith 47 - - 27 275 255 20 
M.H.G. Neville 50 - - 40 442 415 27 
T.E. Woodham-Smith 48 - - 35 358 336 22  Directors’ Remuneration Report continued
Year ended 31 December 2009
19
Annual Report and Accounts 2009
Directors’ Interests
At 31 December 2009 the directors of the company and persons connected to them had the following interests in the
company’s share capital:
31 December 2009 31 December 2008
5p ordinary shares 5p ordinary shares
Non-beneficial Beneficial Non-beneficial Beneficial
Lord Daresbury - - - - 
James Heneage - 10,000 - 10,000 
G.H. Hutchinson Smith - 7,546 - 4,112 
M.H.G. Neville - 17,546 - 14,112 
M.A. Smyth-Osbourne - 4,200 - 4,200 
T.E. Woodham-Smith - 8,766 - 5,332 
Directors’ Interests in the Share Incentive Plan
The table below gives details of the directors’ holdings of shares awarded under the Share Incentive Plan.
G.H. Hutchinson Smith M.H.G. Neville M.A. Smyth-Osbourne T.E. Woodham-Smith
T otal interest as at 1 Jan 2009 No. shares 23,364 13,761 6,992 23,364 
Number of shares acquired/(awarded) during the year
Free Shares granted 5,455 5,455 5,455 5,455 
exercised (1,105) (1,105) - (1,105) 
Partnership Shares granted 2,211 - 2,211 2,211 
exercised (644) (644) - (644) 
Matching Shares granted 4,422 - 4,422 4,422 
exercised (1,287) (1,287) - (1,287) 
Dividend Shares granted ---- 
exercised (398) (398) - (398) 
T otal interest as at 31 Dec 2009 No. shares 32,018 15,782 19,080 32,018 
End of the period of latest 
qualifying conditions 1 May 2013 1 May 2013 1 May 2013 1 May 2013 Directors’ Interests in the Long Term Incentive Plan
The table below gives details of the directors’ holdings of shares awarded under the Long Term Incentive Plan.
Conditional Awards Awards Awards Market Conditional
Date of awards as at lapsed vested granted price at awards as at Release
award 31 Dec 2008 during year during year during year award 31 Dec 2009 date
G.H. Hutchinson Smith Sep-07 49,989 - - - 2.000 49,989 Sep-10
Feb-09 - - - 105,691 0.615 105,691 Mar-12
68,847 - - 105,691 155,680 
M.H.G. Neville Sep-07 49,716 - - - 2.000 49,716 Sep-10
Feb-09 - - - 82,859 0.615 82,859 Mar-12
68,478 - - 82,859 132,575 
M.A. Smyth-Osbourne Sep-07 58,875 - - - 2.000 58,875 Sep-10
Feb-09 - - - 98,125 0.615 98,125 Mar-12
81,646 - - 98,125 157,000 
T.E. Woodham-Smith Sep-07 49,716 - - - 2.000 49,716 Sep-10
Feb-09 - - - 82,859 0.615 82,859 Mar-12
68,478 - - 82,859 132,575 
Approved by the board on 19 April 2010 and signed on its behalf:
M.A. Smyth-Osbourne ACA Secretary
Directors’ Remuneration Report continued
Year ended 31 December 2009
20
Annual Report and Accounts 2009 21
Annual Report and Accounts 2009
Statement of Directors’ Responsibilities
Year ended 31 December 2009
The directors are responsible for preparing the annual
report, the Directors’ Remuneration Report and the
Financial Statements in accordance with applicable law 
and regulations.
Company law requires the directors to prepare financial
statements for each financial year. Under that law the
directors have elected to prepare the Group and Company
Financial Statements in accordance with International
Financial Reporting Standards (IFRSs) as adopted by the
European Union. Under company law the directors must not
approve the Financial Statements unless they are satisfied
that they give a true and fair view of the state of affairs of
the Group and the Company and of the profit or loss of the
Group for that period. In preparing these Financial
Statements, the directors are required to:
� select suitable accounting policies and then apply 
them consistently;
� make judgements and accounting estimates that are
reasonable and prudent;
� state whether IFRSs as adopted by the European Union
have been followed, subject to any material departures
disclosed and explained in the Group and parent
company Financial Statements respectively; and
� prepare the Financial Statements on the going concern
basis unless it is inappropriate to presume that the
Company will continue in business.
The directors are responsible for keeping adequate
accounting records that are sufficient to show and explain
the Company’s transactions and disclose with reasonable
accuracy at any time the financial position of the Company
and the Group and enable them to ensure that the Financial
Statements and the Directors’ Remuneration Report comply
with the Companies Act 2006 and, as regards the Group
Financial Statements, Article 4 of the IAS Regulation. They
are also responsible for safeguarding the assets of the
Company and the Group and hence for taking reasonable
steps for the prevention and detection of fraud and other
irregularities.
The directors are responsible for the maintenance 
and integrity of the Company’s website. Legislation in 
the United Kingdom governing the preparation and
dissemination of financial statements may differ from
legislation in other jurisdictions.
Directors’ Responsibility Statement Pursuant 
To Disclosure And Transparency Rule 4.1.12
The directors whose names and functions are detailed 
on page 9 confirm that, to the best of their knowledge:
� the Group Financial Statements, which have been
prepared in accordance with IFRSs as adopted by the
EU, give a true and fair view of the assets, liabilities,
financial position and profit of the Group; and
� the Directors’ Report contained in this report includes 
a fair review of the development and performance of 
the business and the position of the Company and the
Group, together with a description of the principal risks
and uncertainties that it faces. 22
Annual Report and Accounts 2009
Independent Auditor’s Report to the Members of Mallett plc
Year ended 31 December 2009
We have audited the financial statements of Mallett plc 
for the year ended 31 December 2009 which comprise 
the Consolidated Income Statement, the Consolidated 
and Parent Company Balance Sheet, the Consolidated
Statement of Comprehensive Income, the Consolidated
and Parent Company Cash Flow Statements, the
Consolidated and Parent Company Statements of 
Changes in Equity and the related notes. The financial
reporting framework that has been applied in their
preparation is applicable law and International Financial
Reporting Standards (IFRSs) as adopted by the European
Union and, as regards the parent company financial
statements, as applied in accordance with the provisions 
of the Companies Act 2006.
This report is made solely to the company’s members, 
as a body, in accordance with Chapter 3 Part 16 of the
Companies Act 2006. Our audit work has been undertaken
so that we might state to the company’s members those
matters we are required to state to them in an auditor’s
report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility
to anyone other than the company and the company’s
members as a body, for our audit work, for this report, 
or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the Statement of Directors’
Responsibilities set out on page 21, the directors are
responsible for the preparation of the financial statements
and for being satisfied that they give a true and fair view.
Our responsibility is to audit the financial statements in
accordance with applicable law and International Standards
on Auditing (UK and Ireland). Those standards require us to
comply with the Auditing Practices Board’s Ethical
Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts
and disclosures in the financial statements sufficient to 
give reasonable assurance that the financial statements are
free from material misstatement, whether caused by fraud
or error. This includes an assessment of: whether the
accounting policies are appropriate to the group’s and 
the parent company’s circumstances and have been
consistently applied and adequately disclosed; the
reasonableness of significant accounting estimates made 
by the directors; and the overall presentation of the
financial statements.
Opinion on financial statements
In our opinion:
� the financial statements give a true and fair view of the
state of the group’s and of the parent company’s affairs
as at 31 December 2009 and of the group’s loss for the
year then ended;
� the group financial statements have been properly
prepared in accordance with IFRSs as adopted by the
European Union;
� the parent company financial statements have been
properly prepared in accordance with IFRSs as adopted
by the European Union and as applied in accordance
with the provisions of the Companies Act 2006; and 
� the financial statements have been prepared in
accordance with the requirements of the Companies 
Act 2006 and, as regards the group financial statements,
Article 4 of the IAS Regulation.
Opinion on other matters prescribed by the 
Companies Act 2006
In our opinion:
� the part of the Directors’ Remuneration Report to be
audited has been properly prepared in accordance with
the Companies Act 2006;
� the information given in the Report of the Directors for
the financial year for which the financial statements are
prepared is consistent with the financial statements; and
� the information given in the Corporate Governance
Statement set out on pages 14 and 15 with respect to
internal controls and risk management systems in
relation to financial reporting processes and about share
capital structures is consistent with the financial
statements.
Matters on which we are required to report by
exception
We have nothing to report in respect of the following:
Under the Companies Act 2006 we are required to report 
to you if, in our opinion:
� adequate accounting records have not been kept by the
parent company, or returns adequate for our audit have
not been received from branches not visited by us; or
� the parent company financial statements and the part 
of the Directors’ Remuneration Report to be audited 
are not in agreement with the accounting records and
returns; or
� certain disclosures of directors’ remuneration specified
by law are not made; or 
� we have not received all the information and
explanations we require for our audit; or
� a Corporate Governance Statement has not been
prepared by the company.
Under the Listing Rules we are required to review: 
� the directors’ statement, set out on page 15, in relation 
to going concern; and 
� the part of the Corporate Governance Statement
relating to the company’s compliance with the nine
provisions of the June 2008 Combined Code specified
for our review.
Andrew Cook FCA (Senior Statutory Auditor)
For and on behalf of 
MENZIES LLP
Chartered Accountants and Statutory Auditors
Kingston upon Thames
19 April 2010 23
Annual Report and Accounts 2009
Consolidated Income Statement 
Year ended 31 December 2009
2009 2008
Notes £’000 £’000
Revenue 5 13,980 12,109 
Cost of sales (13,952) (16,095) 
Gross profit/(loss) 28 (3,986) 
Other operating income 40 1 
Distribution costs (214) (300) 
Administrative expenses (1,677) (1,702) 
Operating loss 6 (1,823) (5,987)
Share of operating loss in associate (33) -  
Investment income 8 126 89 
Finance costs 8 (44) (75) 
Loss before income tax (1,774) (5,973) 
Income tax expense 9 166 1,694 
Loss for the year (1,608) (4,279) 
Loss attributable to:
Owners of the parent company (1,649) (4,273) 
Minority interests 41 (6) 
(1,608) (4,279) 
Basic and diluted earnings per share 11 (11.92)p (31.47)p
All of the activities of the Group are classed as continuing.
Consolidated Statement of Comprehensive Income 
Year ended 31 December 2009
2009 2008
£’000 £’000
Loss for the year (1,608) (4,279) 
Other comprehensive income:
Exchange differences on translation of foreign operations (398) 1,091 
Actuarial loss on the defined benefit pension scheme (698) (1,332) 
Movement of deferred tax on actuarial loss 195 380 
Total other comprehensive income for the year, net of tax (901) 139 
Total comprehensive income for the year (2,509) (4,140) 
Total comprehensive income attributable to:
Owners of the parent company (2,550) (4,134) 
Minority interests 41 (6) 
(2,509) (4,140)  2009 2008
Notes £’000 £’000
Non-current assets
Property, plant and equipment 13 4,412 5,126 
Investment in associate 15 --
Deferred tax 20 2,137 1,763 
6,549 6,889 
Current assets
Inventories 14 12,342 16,085 
Trade and other receivables 16 3,182 4,294 
Cash and cash equivalents 1,950 273 
17,474 20,652 
Total assets 24,023 27,541 
Equity
Share capital 22 690 3,243 
Capital redemption reserve 5,168 2,615 
Own shares (476) (442) 
Retained profits 13,172 15,795 
Minority interests 34 (7) 
Total equity 18,588 21,204 
Current liabilities
Trade and other payables 2,746 2,346 
Bank overdrafts and loans 1,131 2,537 
17 3,877 4,883 
Non current liabilities
Retirement benefit pension obligations 19 1,558 1,454 
1,558 1,454 
Total liabilities 5,435 6,337 
Total equity and liabilities 24,023 27,541 
The financial statements were approved by the board of directors and authorised for issue on 19 April 2010.
They were signed on its behalf by:
G.H. Hutchinson Smith Director M.A. Smyth-Osbourne Director
Consolidated Balance Sheet
At 31 December 2009
24
Annual Report and Accounts 2009 2009 2008
Notes £’000 £’000
Non-current assets
Investments 15 8,482 8,482 
Deferred tax 20 220 105 
8,702 8,587 
Current assets
Trade and other receivables 16 14,953 15,273 
Cash and cash equivalents 8 2 
14,961 15,275 
Total assets 23,663 23,862 
Equity
Share capital 22 690 3,243 
Special capital reserve 1,761 1,761 
Capital redemption reserve 5,168 2,615 
Own shares (100) - 
Retained profits 16,090 16,165 
Total equity 23,609 23,784 
Current liabilities
Trade and other payables 17 54 78 
23,663 23,862 
The financial statements were approved by the board of directors and authorised for issue on 19 April 2010.
They were signed on its behalf by:
G.H. Hutchinson Smith Director M.A. Smyth-Osbourne Director
Company Balance Sheet
At 31 December 2009
25
Annual Report and Accounts 2009
Company Number 1838233 Capital
Share redemption Own Retained Minority Total
capital reserve shares profits interests equity 
Group £’000 £’000 £’000 £’000 £’000 £’000
At 1 January 2008 3,243 2,615 (468) 20,761 (1) 26,150 
Retained loss for the year (4,279) (4,279) 
Minority interest 6(6) - 
Dividends paid in year (832) (832) 
Actuarial losses (1,332) (1,332) 
Deferred tax movement on actuarial loss 380 380 
Net movement in own shares 26 26 
Net exchange gain 1,091 1,091 
At 31 December 2008 3,243 2,615 (442) 15,795 (7) 21,204 
Retained loss for the year (1,608) (1,608) 
Minority interest (41) 41 -
Dividends paid in year (2) (2) 
Actuarial losses (698) (698) 
Deferred tax movement on actuarial loss 195 195 
Cancellation of B shares (2,553) 2,553 -
Net movement in own shares (34) (71) (105) 
Net exchange gain (398) (398) 
At 31 December 2009 690 5,168 (476) 13,172 34 18,588 
Special Capital
Share capital redemption Own Retained Total
capital reserve reserve Shares profits equity 
Company £’000 £’000 £’000 £’000 £’000 £’000
At 1 January 2008 3,243 1,761 2,615 - 16,297 23,916 
Retained profit for the year 700 700 
Dividends paid in year (832) (832) 
At 31 December 2008 3,243 1,761 2,615 - 16,165 23,784 
Retained loss for the year (86) (86) 
Dividends paid in year (2) (2) 
Net movement in own shares (100) 13 (87)
Cancellation of B shares (2,553) 2,553 - 
At 31 December 2009 690 1,761 5,168 (100) 16,090 23,609 
The capital redemption reserve and special capital reserve are not available for distribution.
Statements of Changes in Equity
At 31 December 2009
26
Annual Report and Accounts 2009 2009 2008
Notes £’000 £’000
Operating loss (1,823) (5,987) 
Adjustments for:
Depreciation 282 262 
Freehold property impairment 200 -
Share-based payments 73 -
Defined benefit pension adjustment (594) -
Net exchange adjustments 235 (442) 
Movements in working capital:
Decrease in inventories 3,743 2,287 
Decrease in receivables 547 26 
Decrease in payables 435 (124) 
Cash generated/(used) by operations 3,098 (3,978) 
Tax received/(paid) 505 (279) 
Net Cash from Operating Activities 3,603 (4,257) 
Investing Activities
Interest received 126 89 
Interest paid (44) (75) 
Purchase of shares in associate (5) -
Purchase of property, plant and equipment (4) (197) 
Net Cash from/(used in) Investing Activities 73 (183) 
Financing Activities
Purchases of own shares (193) (83) 
Dividends paid - (832) 
B share scheme payments (2) (47) 
Net Cash used in Financing Activities (195) (962) 
Net increase/(decrease) in Cash and Cash Equivalents 3,481 (5,402) 
Cash and Cash Equivalents at beginning of year (2,264) 2,047 
Effect of foreign exchange rate changes (398) 1,091 
Cash and Cash Equivalents at end of year 24 819 (2,264) 
Consolidated Cash Flow Statement
Year ended 31 December 2009
27
Annual Report and Accounts 2009 2009 2008
£’000 £’000
Operating loss (202) (236) 
Adjustments for:
Share-based payments 13 -
Movements in working capital:
Decrease in receivables 321 272 
(Decrease)/increase in payables (24) 8 
Net Cash from Operating Activities 108 44 
Financing Activities
Purchases of own shares (100) -
Dividends received - 832 
Dividends paid (2) (832) 
B share scheme payments - (47) 
Net Cash used in Financing Activities (102) (47) 
Net increase/(decrease) in Cash and Cash Equivalents 6 (3) 
Cash and Cash Equivalents at beginning of year 2 5 
Cash and Cash Equivalents at end of year 8 2 
Company Cash Flow Statement
Year ended 31 December 2009
28
Annual Report and Accounts 2009 1  General Information
Mallett plc (“the Company”) is a public limited company
incorporated in the United Kingdom. The address of it’s
registered office is 141 New Bond Street, London W1S 2BS.
The principal activities of the Company and its subsidiaries
(together “the Group”) are described in note 5.
2  Significant Accounting Policies
a)  Basis of accounting and consolidation
The financial statements have been prepared in accordance
with International Financial Reporting Standards (IFRS) and
International Financial Reporting Interpretations Committee
(IFRIC) interpretations endorsed by the European Union
(EU) and with those parts of the Companies Act 2006
applicable to companies reporting under IFRSs.
The Group accounts, which include the accounts of the
Company and its subsidiaries, are presented on the basis 
of the historical cost convention. All companies’ accounts
are made up to 31 December 2009.
The Group accounts are prepared on a going concern
basis which the Directors believe to be appropriate. 
The Group's forecasts and projections, taking account 
of reasonably possible changes in trading performance,
show that the Group has sufficient financial resources. As a
consequence the Directors have a reasonable expectation
that the Company and Group are well placed to manage
their business risks and to continue in operational
existence for the foreseeable future, despite the current
uncertain global economic outlook. Accordingly, the
Directors continue to adopt the going concern basis 
in preparing the consolidated financial statements.
The Group adopted IAS 1 (revised) Presentation of Financial
Statements and IFRS 8 Operating Segments in the period
and has applied them to these financial statements. These
changes in accounting policy only impact certain disclosures
in the financial statements and there is no impact on earnings
per share.
b)  New standards and interpretations not yet adopted
The following standards, amendments to standards and
interpretations have been issued by the IASB and are not
effective for 2009 and therefore have not been applied in
preparing these accounts:
Amendment to IFRS 1 Additional Exemptions for First-time
Adopters which is effective for periods commencing on or
after 1 July 2009.
Amendment to IFRS 2 – Group Cash-settled Share-based
Payment Transactions, which is effective for periods
commencing on or after 1 January 2010.
IFRS 3 Business Combinations (revised), which is effective
for periods commencing on or after 1 July 2009.
IAS 27 Consolidated and Separate Financial Statements
(revised), which is effective for periods commencing on 
or after 1 July 2009.
Amendment to IAS 39 Eligible Hedged Items, which is
effective for periods commencing on or after 1 July 2009.
IFRIC 17 Distributions of Non-cash Assets to Owners, which
is effective for periods commencing on or after 1 July 2009.
IFRIC 18 Transfers of Assets from Customers, which is
effective for periods commencing on or after 1 July 2009.
Amendment to IAS 32 - Classification of Rights Issues, which
is effective for periods commencing on or after 1 February
2010.
IAS 24 Related Party Transactions (revised), which is effective
for periods commencing on or after 1 January 2011.
Amendment to IFRIC 14 Prepayments of a Minimum
Funding Requirement, which is effective for periods
commencing on or after 1 January 2011.
The Group does not anticipate that the adoption of these
standards or interpretations will have a significant impact 
or relevance on the Group’s accounts in the period of initial
application.
c)  Revenue
Revenue represents the total amount receivable by the
Group for goods sold and services rendered during the
year, exclusive of value added tax.
For manufactured goods the Group recognises revenue when
the goods in question have finished production and passed
any applicable factory and customer acceptance tests. Where
goods remain on the Group’s premises at the year end at the
request of the customer, management consider the detailed
criteria for the recognition of revenue from the sale of goods
as set out in IAS 18. In particular, consideration is given as to
whether the significant risk and reward of ownership are
considered to have transferred to the buyer.
d)  Leased assets
Rentals under operating leases are charged to the Income
Statement as incurred.
e)  Inventories
Inventories are valued at cost except where, in the directors’
opinion as experts, the net realisable value is likely to be
lower. In such circumstances inventories are valued at
estimated net realisable value.
f)  Depreciation
Property, plant and equipment are depreciated by equal
instalments over their expected useful lives at the following
rates:
Freehold land & buildings 2%
Long leasehold property 2%
Fixtures & fittings 10%
Motor vehicles 25%
Short leasehold property over the term of the lease
Notes to the Accounts
Year ended 31 December 2009
29
Annual Report and Accounts 2009 Notes to the Accounts continued
Year ended 31 December 2009
30
Annual Report and Accounts 2009
g) Impairment of non-current assets
At each balance sheet date, the Group reviews the carrying
amounts of its non-current assets to determine whether
there is any indication that those assets have suffered 
an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order 
to determine the extent of the impairment loss, if any.
The recoverable amount is the higher of fair value less
selling costs and value in use. In assessing value in use, 
the estimated future cashflows are discounted to their
present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and
the risks specific to the asset for which estimates of future
cashflows have not been adjusted. An impairment loss is
recognised in the Income Statement whenever the carrying
amount of the asset exceeds its recoverable amount.
h)  Foreign currencies
Assets and liabilities of the overseas subsidiary undertaking
are translated at the rates of exchange ruling at the balance
sheet date. The results of the overseas subsidiary are
translated at a reasonable approximation of the date of
transaction. Differences arising on translation of the net
assets of the subsidiary undertaking are recognised in 
the Income Statement except where monetary assets are
treated as part of the net investment in a foreign operation.
i)  Deferred taxation
Deferred tax is the tax expected to be payable or
recoverable on differences between the carrying amounts 
of assets and liabilities in the financial statements and the
corresponding tax bases used in the computation of taxable
profits (“temporary differences”), and is accounted for using
the balance sheet liability method.
Deferred tax liabilities are generally recognised for all
taxable temporary differences. Where there are taxable
temporary differences arising on subsidiaries, deferred 
tax liabilities are recognised.
Deferred tax assets are generally recognised to the extent
that it is probable that taxable profits will be available
against which deductible temporary differences can be
utilised. Where there are deductible temporary differences
arising on subsidiaries, deferred tax assets are recognised
only where it is probable that they will reverse in the
foreseeable future and taxable profits will be available
against which the temporary differences can be utilised. 
The carrying amount of deferred tax assets is reviewed at
each balance sheet date and reduced to the extent that it 
is no longer probable that sufficient taxable profits will be
available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected
to apply in the period when the liability is settled or the
asset is realised.
j)  Pension costs
The Group operates a defined benefit pension scheme 
which is closed to new entrants and closed to future accrual.
The funds of the scheme are administered by trustees and
are separate from the Group. The scheme is valued by a
qualified actuary every three years and contributions are 
paid in accordance with the recommendations of the actuary.
The most recent valuation of this scheme was at 1 May 2007.
Pension costs are charged against profits in the year they
arise. Actuarial gains and losses are recognised in Other
Comprehensive Income.
The Group also operates a defined contribution pension
scheme. Pension payments to defined contribution
schemes are charged to the Income Statement as they
become due.
k)  Share based payments
The Group issues equity settled share-based payments
through a Share Incentive Plan to all employees and
through a Long Term Incentive Plan to directors. The
payments are measured at fair value at the date of grant
and the fair value is expensed on a straight line basis over
the vesting period, based on the Group’s estimate of the
shares that will eventually vest and adjusted for the effect 
of non-market based vesting conditions. The fair value of
payments under the Share Incentive Plan is measured as the
cost at the date of the award. The fair value of the payments
under the Long Term Incentive Plan is measured using the
Black Scholes model.
The investment in shares is carried at the cost of the shares
held and this investment in own shares is presented as a
deduction from shareholders funds.
l)  Accounting for financial assets
The Group has financial assets in the following categories:
- loans and receivables
- financial assets at fair value through profit or loss
Financial assets are assigned to different categories on
initial recognition, depending on the characteristics of 
the instrument and its purpose. A financial instrument’s
category is relevant for the way it is measured and whether
any resulting income and expenses are recognised in profit
or loss or directly in equity.
All financial assets are recognised when the Group becomes
a party to the contractual provisions of the instrument.
Financial assets other than those categorised as at fair value
through the profit and loss are recognised at fair value plus
transaction costs. Financial assets categorised as at fair value
through profit or loss are recognised initially at fair value with
transaction costs expensed through the Income Statement.
Loans and receivables are non-derivative financial assets
with fixed or determinable payments that are not quoted 
in an active market. After initial recognition these are measured at amortised cost using the effective interest
method, less provision for impairment. Any change in their
value is recognised in the Income Statement. Mallett plc’s
trade and other receivables fall into this category of
financial instrument. Discounting, however, is omitted 
where the effect of discounting is immaterial.
Significant receivables are considered for impairment on 
a case by case-by-case basis when they are past due at 
the balance sheet date or when objective evidence is
received that a specific counterparty will default. All other
receivables are reviewed for impairment in groups, which
are determined by reference to the industry and region 
of a counterparty and other available features of shared 
credit risk characteristics, if any. The percentage 
of the write down is then based on recent historical
counterparty default rates for each identified group.
m)  Accounting for financial liabilities
Financial liabilities represent a contractual obligation for 
the Group to deliver cash or other financial assets. Financial
liabilities are initially recognised at fair value, net of issue
costs, when the Group becomes party to the contractual
agreements of the instrument. All interest-related charges
and, if applicable, changes in an instrument’s fair value that
are reported in profit or loss are included in the Income
Statement line items “finance costs” or “finance income”.
The Group’s financial liabilities include borrowings, trade
and other payables (including finance lease liabilities), which
are measured at amortised cost using the effective interest
rate method.
n)  Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and
demand deposits, together with other short-term, highly
liquid investments that are readily convertible into known
amounts of cash and which are subject to an insignificant
risk of changes in value, and bank overdrafts, where they
form an integral part of the Group’s cash management.
o)  Equity instrument
An equity instrument is any contract that evidences a
residual interest in the assets of the Group after deducting
all of its liabilities. Equity instruments issued by the the
Group are recorded at the proceeds received, net of direct
issue costs. The only equity instrument applicable to the
Group is its issued share capital.
p)  Interest
Interest is recognised using the effective interest method
which calculates the amortised cost of a financial asset or
liability and allocates the interest income over the relevant
period. The effective interest rate is the rate that exactly
discounts estimated future cash receipts through the
expected life of the financial asset to the net carrying
amount of the financial asset.
3  Financial Risk Management
The Group’s activities expose it to a variety of financial 
risks: foreign exchange risk, credit risk and liquidity risk. 
Risk management is carried out by the board, who review
the exposures of the Group on an ongoing basis and put 
in specific procedures to mitigate this risk where it is felt
appropriate to do so. 
a)  Foreign exchange risk
The Group operates internationally and is exposed to
foreign exchange risk arising from currency exposures,
primarily with respect to the US dollar and the UK pound.
Foreign exchange risk arises from commercial transactions,
recognised assets and liabilities and net investments in
foreign operations.
The Group manages its holding of foreign currency,
specifically US Dollars, to ensure that the impact of currency
fluctuations on the Group are reduced. The use of forward
contracts has been considered, as a further measure to
mitigate this risk. However the Group has not entered into
any contracts of this nature during the year.
b)  Credit risk
The Group considers that there is low credit risk exposure.
The majority of the Group’s sales are made to high 
net worth individuals with good credit worthiness. 
The combination of this factor and the repeat sales to
regular customers limit the amount of credit exposure 
of the Group.
c)  Liquidity risk
The Group maintains sufficient cash and availability of
funding through an adequate amount of committed credit
facilities to ensure that resources are available to take
advantage of new business opportunities as they arise.
d)  Capital management risk
The Group policy is to maintain a strong capital base so 
as to maintain investor, creditor and market confidence 
and to sustain future development of the business.
4  Critical Accounting Estimates and
Judgements
The Group makes estimates and assumptions concerning
the future. The resulting accounting estimates will, by
definition, seldom equal the related actual result. Estimates
and judgements are continually evaluated and are based 
on historical experience and other factors, including
expectations of future events that are believed to be
reasonable under the circumstances. The estimates and
judgements that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities
within the financial period are discussed below.
31
Annual Report and Accounts 2009 a)  Retirement benefit pension obligations
The Group’s defined benefit pension scheme liability is
based on key assumptions including return on scheme
assets, discount rates, mortality rates, inflation, future salary
and pension costs. Details of the key assumptions are set
out in note 19. The Group takes advice from independent
actuaries as to the appropriateness of the assumptions, 
but these assumptions may, individually or collectively, 
be different to actual outcomes.
b)  Inventory valuation
Inventory is valued at the lower of cost and net realisable
value. The directors regularly review the carrying value of 
all items in inventory and where their estimate of the market
value of the item, based on market conditions at the time
and trends in customer demand, is lower than the cost of
the item, a provision is made to reduce the carrying value 
of the item to the estimated market value.
c) Value of non-current assets
Non-current assets are valued at the lower of cost and the
estimated recoverable amount. The estimated recoverable
amount is the higher of fair value less selling costs and the
value in use. The value in use calculation requires an
estimate of the present value of future cashflows expected
to arise from the asset, by applying an appropriate discount
rate to the timing and amount of future cashflows.
The Directors are required to make judgements regarding
the timing and amount of future cashflows applicable to 
the asset, based on current budgets and forecasts and
extrapolated for an appropriate period taking into account
growth rates and expected changes in prices and costs. The
Directors estimate the appropriate discount rate using pre-
tax rates that reflect current market assessments of the time
value of money and the risks specific to the individual asset.
d) Taxation
The Group is subject to income taxes in the UK and US. 
At each financial period end judgement is required in
determining the provision for income taxes. The Group
recognises liabilities for anticipated tax issues based on the
best estimates at the balance sheet date. Where the final
tax outcome of these matters is different from the amounts
that were initially recorded, such differences will impact the
corporation tax and deferred tax provisions in the period in
which such determination is made.
The amount of the deferred tax asset included in the
balance sheet is recognised only to the extent that it is
probable that future taxable profits will be available against
which the asset can be utilised. In estimating the amount of
the deferred tax asset that may be recognised, the Directors
make judgements, based on current budgets and forecasts,
about the amount of future taxable profits and the timings
of when these will be realised. The Directors consider the
Group will become tax paying in the future at which time
the asset will begin to unwind. 
5  Segmental Analysis
The Group’s operating segments have been determined
based on the management accounts reviewed by the Board
of Directors (the Chief Operating Decision Maker). The
Group’s activities are split into four business segments:
dealing in antique furniture and objets d’art through
Mallett, dealing in fine art through James Harvey British 
Art (JHBA), designing and manufacturing contemporary
furniture and works of art through Meta, and providing
restoration services through Hatfields. The operations of
Mallett are further split into two geographical regions, UK
and US, reflecting the location of a Mallett showroom in
each of those regions. 
The Board assesses the performance of the operating
segments based on turnover and EBITDA. Sales are
reported by location of sales outlet. The accounting 
policies of the reportable segments are the same as
described in note 2 and no segment is reliant on any 
one major external customer.
Transfer pricing between segments are set on an arm’s
length basis. Segmental assets and liabilities consist of
property, plant and equipment, trade receivables, 
payables, cash at bank and inventories.
Notes to the Accounts continued
Year ended 31 December 2009
32
Annual Report and Accounts 2009 5  Segmental Analysis continued
Segmental analysis – continuing operations
Mallett Mallett Intra
UK USA JHBA Meta Hatfields Other group Total
2009 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Income & expenses information
External revenue by sales outlet 6,748 5,004 1,572 429 227 - - 13,980
Inter segment revenue 4,058 21 - - 523 - (4,602) -
EBITDA (1,078) (385) 87 26 (142) - 151 (1,341) 
Depreciation and amortisation (84) (154) - - - (44) - (282)
Freehold property impairment ----- (200) - (200)
Share of operating loss in associate ----- (33) - (33)
Interest revenue & expense 192 (110) ----- 82
Loss before tax (970) (649) 87 26 (142) (277) 151 (1,774)
Balance Sheet information
Capital expenditure - 4 ----- 4
Total assets 12,020 9,221 176 188 564 1,854 - 24,023
Total liabilities, excluding tax liabilities 4,844 338 103 48 102 - - 5,435
Investment in associate ---- -- -
Mallett Mallett Intra
UK USA JHBA Meta Hatfields Other group Total
2008 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Income & expenses information
External revenue by sales outlet 6,247 4,088 1,239 305 230 - - 12,109
Inter segment revenue 1,580 50 - - 851 - (2,481) - 
EBITDA (3,304) (340) (168) (1,941) 21 - 7 (5,725) 
Depreciation and amortisation (84) (134) - - - (44) - (262) 
Interest revenue & expense 11 3 ----- 14 
Loss before tax (3,377) (471) (168) (1,941) 21 (44) 7 (5,973)
Balance Sheet information
Capital expenditure 135 57 - - - 5 - 197 
Total assets 15,657 9,240 146 179 221 2,098 - 27,541 
Total liabilities, excluding tax liabilities 5,894 231 21 137 54 - - 6,337 
33
Annual Report and Accounts 2009 5  Segmental Analysis continued
The sales by destination of goods is as follows:
Mallett JHBA Meta Hatfields Total
2009 £’000 £’000 £’000 £’000 £’000
United Kingdom 2,705 869 249 216 4,039
Rest of Europe 2,328 132 - 10 2,470
United States of America 5,840 572 180 1 6,593
Other 878 - - - 878
11,751 1,573 429 227 13,980
Mallett JHBA Meta Hatfields Total
2008 £’000 £’000 £’000 £’000 £’000
United Kingdom 2,426 467 120 199 3,212 
Rest of Europe 1,864 53 33 29 1,979 
United States of America 5,573 719 152 - 6,444 
Other 472 - - 2 474 
10,335 1,239 305 230 12,109 
6  Loss from Operations
Operating loss has been arrived at after charging/(crediting): 2009 2008
£’000 £’000
Depreciation of property, plant and equipment 282 262
Freehold property impairment 200 - 
Auditors’ remuneration
- Audit fees 16 10 
- Other non-audit services
- Tax services (advisory and compliance) 21 14 
- Other services* 12 13 
- Audit of group undertakings 40 30 
- Review of interim accounts 2 1 
Net foreign exchange losses/(gains) 26 (268) 
Lease payments 1,684 1,528 
Inventory provision 352 3,340 
* Other services includes work relating to a pension scheme audit work and general consultancy work.
Notes to the Accounts continued
Year ended 31 December 2009
34
Annual Report and Accounts 2009 7  Staff Costs
2009 2008
£’000 £’000
Staff costs
- wages and salaries 2,025 2,038 
- compensation for loss of office 293 - 
- social security costs 201 177 
- share based payments 73 125 
- pension scheme costs* (note 19) 174 40 
2,766 2,380 
*Includes £128,000 (2008 - £82,000) in respect of contributions to the defined contribution pension scheme.
Number Number
Average number of persons (including directors and part-time employees) employed by the company
- restoration 11 13
- selling and distribution 26 32
- administration 4 4
- non-executive directors 2 4
43 53
Details of directors’ emoluments are given in the Directors’ Remuneration Report on page 18. The Group believes that the
Directors of Mallett plc are the only key management personnel under the definition of IAS 24 “Related party disclosures”.
8  Net Interest
2009 2008
£’000 £’000
Bank interest receivable 126 89 
Interest payable on bank loan and overdrafts within five years not by instalments (44) (75) 
82 14 
9  Tax
2009 2008
£’000 £’000
Current taxation
UK corporation taxation 14 (341) 
Foreign tax (1) 12 
13 (329) 
Deferred tax (note 20):
Current year (179) (1,365) 
(166) (1,694) 
UK corporation tax is calculated at 28.0% (2008 – 28.5%) of the estimated assessable profit for the year. Tax for other jurisdictions 
is calculated at the rates prevailing in the respective jurisdictions.
35
Annual Report and Accounts 2009 9  Tax continued
The credit for the year can be reconciled to the loss per the Income Statement as follows:
2009 2008
£’000 £’000
Loss before tax (1,774) (5,973) 
Tax at the UK corporation tax rate of 28.0% (2008 – 28.5%) (497) (1,702) 
Effected by the tax impact of the following items:
Income not taxable (150) (43) 
Expenses not deductible for tax purposes 43 106 
Capital allowances in excess of depreciation 56 50 
Tax losses carried forward 556 1,241
Utilisation of tax losses (30) - 
Utilisation of tax losses (carried back) - 212 
Other timing differences 35 (193) 
13 (329) 
Deferred tax (note 20):
Current year (179) (1,365) 
Total current tax (166) (1,694) 
In addition to the amount credited to the Income Statement, deferred tax relating to actuarial gains and losses of the pension
scheme amounting to £195,000 (2008 - £380,000 credit) has been credited directly to the equity reserve.
10  Dividends
2009 2008
£’000 £’000
Amounts recognised as distributions to Owners in the period:
B share continuing dividend 2 4
Further interim dividend for the year ended 31 December 2008 of nil (2007 - 2.2p) per share - 304
Final dividend for the year ended 31 December 2008 of nil (2007 - 3.8p) per share - 524
2 832
No final dividend is proposed for the year ended 31 December 2009 (2008 - nil).
11  Basic and Diluted Earnings per Share
Basic and diluted earnings per share are based on the loss after tax of £1,608,000 (2008 - loss of £4,279,000) divided by the
weighted average number of shares in issue during the year of 13,496,538 (2008 - 13,593,840).
12  Profit for the Financial Year
The loss dealt with in the accounts of the Company, which includes dividends received from subsidiaries, was £86,000 (2008
profit - £700,000). As permitted by section 408 of the Companies Act 2006 an Income Statement of the Company is not
presented with these accounts.
Notes to the Accounts continued
Year ended 31 December 2009
36
Annual Report and Accounts 2009 13  Property, Plant and Equipment
Short Furniture,
Freehold Leasehold fixtures & 
Property Property motor vehicles Total
£’000 £’000 £’000 £’000
Cost or valuation:
At 1 January 2008 2,181 3,953 262 6,396 
Additions 4 102 91 197 
Disposals - - - - 
Exchange adjustments - 580 11 591 
At 31 December 2008 2,185 4,635 364 7,184 
Additions - 2 2 4 
Disposals - - (2) (2) 
Exchange adjustments - (316) (6) (322) 
At 31 December 2009 2,185 4,321 358 6,864 
Depreciation:
At 1 January 2008 44 1,479 124 1,647 
Charged 44 190 28 262 
Released - - - - 
Exchange adjustments - 144 5 149 
At 31 December 2008 88 1,813 157 2,058 
Charged 44 208 30 282 
Impairment 200 - - 200
Released - - - - 
Exchange adjustments - (85) (3) (88) 
At 31 December 2009 332 1,936 184 2,452 
Net book value:
At 31 December 2009 1,853 2,385 174 4,412 
At 31 December 2008 2,097 2,822 207 5,126 
The Directors assessed the carrying value of each of the Group’s non-current assets at the balance sheet date by estimating 
the recoverable amount of each asset in accordance with the accounting policy in note 2. Based on the value in use, using a
discount rate of 6%, the Directors have impaired the value of the freehold property by £200,000 (2008 - £nil) which reflects the
significant deterioration in the commercial property sector in 2009. This amount is included in administrative expenses in the
Income Statement.
14  Inventories
Group Company
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Goods for resale 12,342 16,085 - - 
During the year the Group made inventory provisions of £352,000 (2008 - £3,340,000). During the year £8,444,000 (2008 -
£8,982,000) was recognised as a cost of sales expense in the Income Statement.
37
Annual Report and Accounts 2009 15  Investments
Investment in subsidiaries 2009 2008
£’000 £’000
Company
Shares in Group undertakings (at cost)
At 1 January 2008 and 31 December 2009 8,482 8,482
Nature of business Percentage of ordinary shares held
The subsidiary undertakings are as follows:
Mallett & Son (Antiques) Limited Antique dealers 100%
Mallett Overseas Limited Antique dealers 100%
Mallett, Inc. Antique dealers 100%
Mallett at Bourdon House Limited Dormant 100%
James Harvey British Art Limited Fine Art dealers 100%
MadebyMeta Limited Dormant 100%
MadebyMeta, Inc. Contemporary design 100%
H.J. Hatfield & Sons Limited Restorers 60%
Subsidiary undertakings are registered and operate in England with the exception of Mallett, Inc. and MadebyMeta, Inc., which
are incorporated and operate in the United States of America.
Gurr Johns Limited own 40% of H.J. Hatfield & Sons Limited.
Investment in associates 2009 2008
£’000 £’000
Group
At 1 January - - 
Investment in associate 5 - 
Share of costs (5) - 
At 31 December - - 
On 25 September 2009 Mallett & Son (Antiques) Limited entered into a shareholders’ agreement with 4 partners, Apter Fredricks
Limited, Asprey Holdings Limited, Ronald Phillips Limited and Stabilo Management BV , to set up Masterpiece London Limited, a
company registered and operating in England which will provide an antiques, fine art and luxury goods fair in London in June each year . 
Each partner acquired a 20% shareholding for £5,000. Each partner has also provided interest free loans totalling £15,000 to
Masterpiece London Limited. In addition, Mallett provided further short-term funding of £73,000 at 31 December 2009, prior 
to the other partners providing a further interest free loan of £30,000 each shortly after the year end. £43,000 of these loans 
was paid to Mallett to reduce Mallett’s further funding to £30,000, in line with the other partners. 
The Group’s share of costs of Masterpiece London Limited to 31 December 2009 was £33,000 which, in accordance with IAS28,
has been offset against the value of the investment and the value of the loans.
Notes to the Accounts continued
Year ended 31 December 2009
38
Annual Report and Accounts 2009 16  Trade and Other Receivables
Group Company
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Trade receivables 1,859 2,848 - - 
Loan to associate 60 - - - 
Other receivables 281 53 - -
Tax and social security recoverable - 619 1 10 
Prepayments and accrued income 982 774 - -
Amounts due from subsidiary undertakings - - 14,952 15,263
3,182 4,294 14,953 15,273
Included in the Group’s trade receivables balance are debtors with a carrying value of £617,000 (2008 - £760,000) which are past
due at the balance sheet date for which the Group has not provided as the amounts are still considered recoverable. The ageing
of these debtors is as follows:
2009 2008
Days past due: £’000 £’000
0 - 60 days 196 198 
61 - 120 days 135 167 
121+ days 286 395 
Total 617 760 
In addition, trade receivable balances totalling £85,000 (2008 - £nil), which are over 120 days past their due date, have been
provided for. This amount is included in cost of sales in the Income Statement.
17  Current Liabilities
Group Company
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Amounts falling due within one year:
Bank overdraft 1,131 2,537 - - 
Trade payables 2,014 1,764 - 21 
Taxation and social security 26 - - - 
Other payables 48 48 - 38 
Accruals and deferred income 658 534 54 19 
3,877 4,883 54 78 
The bank overdraft is repayable on demand. The overdraft facility at the balance sheet date was £3,500,000. Due to the improved
cash position of the Group, the Directors decided not to renew the additional £1,000,000 overdraft facility obtained from Coutts &
Co. at the end of 2008 and have reverted to an overdraft facility of £2,500,000 from March 2010. The facility is now secured with a
fixed and floating charge on the Group’s UK assets. The average effective interest rate on the bank overdraft approximated to
2.13%, which is determined based on 1.5% above the Coutts & Co. base rate.
39
Annual Report and Accounts 2009 18  Financial Instruments
Capital risk management
The Group’s capital management objectives are to ensure the Group’s ability to continue as a going concern and to provide 
an adequate return to shareholders.
The Group manages its capital through the optimisation of the debt and equity balance and by pricing products and services
commensurately with the level of risk. The capital structure of the Group consists of debt, which includes the borrowings
disclosed in note 17, cash and cash equivalents and equity attributable to Owners of the parent, comprising issued capital,
reserves and retained earnings.
2009 2008
£’000 £’000
Debt (1,131) (2,537) 
Cash and cash equivalents 1,950 273 
Net debt 819 (2,264) 
Equity 18,588 21,204 
The Group is not subject to externally imposed capital requirements, other than the minimum capital requirements and duties
regarding a serious reduction in capital, as imposed by the Companies Act 2006 on all public limited companies.
The Group held the following categories of financial instruments:
2009 2008
£’000 £’000
Financial Assets
Loans and receivables:
Trade receivables 1,859 2,848
Loan to associate 60 -
Other receivables 281 53
Accrued income 572 284 
Cash and cash equivalents 1,950 273 
4,722 3,458 
Financial liabilities
Trade and other payables - held at amortised cost
Trade payables 2,014 1,764
Other payables 48 48 
Accruals 658 546 
Borrowings 1,131 2,537 
3,851 4,895 
The fair value of the financial instruments set out above is not materially different from their book value.
Financial risk management objectives
Management monitor and manage the financial risks relating to the operations of the Group through regular reports to the
Board. These risks include liquidity risk, credit risk and currency risk. The Group does not enter into or trade financial instruments.
Credit risk
The Group’s credit risk is primarily attributable to its trade receivables. Credit risk is managed by monitoring the aggregate
amount and duration of exposure to any one customer. The Group’s management estimate the level of allowances required for
doubtful debts based on prior experience and their assessment of the current economic environment.
Liquidity risk
The Group manages liquidity risk by maintaining adequate reserves and banking facilities, by continuously monitoring forecast
and actual cash flows and by matching the maturity profiles of financial assets and liabilities.
Notes to the Accounts continued
Year ended 31 December 2009
40
Annual Report and Accounts 2009 18  Financial Instruments continued
At 31 December 2009, all the Group’s liabilities had contractual maturities of less than six months (2008 - less than six months)
and the Group had undrawn borrowing facilities available of £1,369,000 (2008 - £963,000). The Group also maintains foreign
currency denominated bank accounts that earn interest based on Coutts & Co. base rate applicable to that currency.
Interest rate risk
The Group finances its operations where necessary through bank overdrafts.
If interest rates had been 1.0% higher/lower and all other variables were held constant, the impact on the results in the Income
Statement and equity would be an increase/decrease of £21,000 (2008 - £14,000).
Foreign currency risk
The Group receives payment for its products and incurs costs and inventory purchases in Pounds Sterling, US Dollars and Euros.
After netting off foreign currency receipts and payments there is a net exposure to the risk of currency movements in both US
Dollars and Euros.
The carrying amounts of the Group’s foreign currency denominated monetary financial liabilities at the reporting date are as
follows:
Financial Financial Financial Financial
assets assets liabilities liabilities 
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Euro 3 1 - - 
US Dollar 2,823 2,013 748 231 
2,826 2,014 748 231 
Foreign currency sensitivity
The Group is principally exposed to the US Dollar and Euro currency movements.
The following table details the Group’s sensitivity to a 5% decrease in Pound Sterling against the relevant foreign currencies:
Euro Euro US Dollar US Dollar 
currency currency currency currency
impact impact impact impact 
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Profit - - 108 198 
The use of a 5% weakening in exchange rates is considered appropriate given recent movements in exchange rates.
The above analysis represents the Group’s exposure to foreign currency risk based financial assets and liabilities outstanding at
the year end. A significant amount of the Group’s sales and purchases are made in foreign currencies. The exposure to foreign
exchange rates varies throughout the year depending on the volume and timing of transactions in foreign currencies.
19  Retirement Benefit Pension Obligations 
The Group operates a defined benefit pension scheme, providing benefits based on final pensionable salary. This scheme is
closed to new entrants and, on the 30 June 2008 was closed to future accrual, with effect from that date. The assets of the
scheme are held separately from those of the Group and are administered by the pension scheme trustees. The pension cost
relating to the scheme is assessed in accordance with the advice of an independent qualified actuary using the projected unit
method. Actuarial valuations of the scheme are carried out tri-annually with the latest actuarial valuation of the scheme as at 
1 May 2007.
41
Annual Report and Accounts 2009 19  Retirement Benefit Pension Obligations continued
The principal actuarial assumptions at the balance sheet date were as follows:
2009 2008 2007
per annum per annum per annum
Rate of increase in salaries n/a n/a 3.00%
Rate of increase of pensions: 
LPI 5% 3.40 2.80 3.00
LPI 2.5% 2.50 2.50 2.50
Rate of revaluation of deferred pensions in excess of the GMP 3.40% 2.80% 3.00%
Discount rate 5.70% 6.00% 5.80%
Inflation assumption 3.40% 2.80% 3.00%
The assumed life expectancy for a retiree at age 65 is:
2009 2008
Male years Female years Male years Female years
Today 22.1 24.7 22.0 24.6 
In 20 years 23.3 25.8 23.3 25.7 
The 2009 and 2008 rates are based in the SAPS tables adjusted for each individual’s year of birth and allowing for long cohort
future mortality improvements (i.e. the S1PMA YOB LC/S1PFA YOB LC tables for male and female members respectively).
The market value of the pension scheme assets and the expected rate of return were:
2009 2008 2007
Expected Expected Expected
long term value long term value long term value
rate of return £’000 rate of return £’000 rate of return £’000
Equities n/a - 7.50% 2,452 8.50% 3,413 
Bonds 5.70% 1,813 6.60% 1,926 5.80% 1,832 
Insurance policies 5.70% 1,909 6.00% 1,869 n/a 1,942
Cash 0.50% 160 2.00% 377 4.75% 496 
Weighted Average Return 5.49% 6.46% 7.31%
Total market value of assets 3,882 6,624 7,683 
The expected return on scheme assets is based on market expectations at the beginning of the year for return over the entire
life of the defined benefit obligation.
2009 2008 2007
£’000 £’000 £’000
Actual return on scheme assets 243 (943) 368
The value of the defined benefit obligations are 2009 2008 2007
analysed as follows: £’000 £’000 £’000 
Actuarial value of financial obligations 5,440 8,078 7,887 
Actuarial value of unfunded obligations - -- 
5,440 8,078 7,887 
Notes to the Accounts continued
Year ended 31 December 2009
42
Annual Report and Accounts 2009 19  Retirement Benefit Pension Obligations continued
2009 2008
Income Statement impact: £’000 £’000
Employer’s current service cost - 97
Interest on obligation 377 347
Expected return on pension scheme assets (331) (420)
Curtailment gains - (66)
Total included in pension scheme costs (see note 7) 46 (42)
Actuarial loss which arose in the year have been recognised immediately in the Statement of Comprehensive Income.
2009 2008
Statement of Comprehensive Income impact: £’000 £’000
Difference between expected and actual return on scheme assets (88) (1,472)
Experience gains on scheme liabilities (102) 109
Changes in assumptions (508) 31
Actuarial loss (698) (1,332)
Cumulative actuarial gains and losses recognised in equity at start of year 822 2,154
Cumulative actuarial gains and losses recognised in equity at end of year 124 822
2009 2008 2007
Balance Sheet impact: £’000 £’000 £’000 
Present value of defined benefit obligation 5,440 8,078 7,887 
Fair value of scheme assets (3,882) (6,624) (7,683) 
Deficit in scheme at 31 December 1,558 1,454 204 
2009 2008 2007
Movement in scheme’s deficit for the year: £’000 £’000 £’000 
Deficit in scheme at 1 January (1,454) (204) (1,126) 
Movement in year:
Current service cost - (97) (125) 
Contributions 640 40 299 
Net return on investments (46) 73 8 
Curtailment gains - 66 -
Actuarial (loss)/gain (698) (1,332) 740 
Deficit in scheme at 31 December (1,558) (1,454) (204) 
43
Annual Report and Accounts 2009 19  Retirement Benefit Pension Obligations continued
2009 2008 2007
Change in present value of defined benefit obligation: £’000 £’000 £’000 
Present value of defined benefit obligation at start of year 8,078 7,887 8,225 
Employer’s current service cost - 97 125 
Interest on obligation 377 456 322 
Contributions by plan participants - 17 43 
Curtailment gains - (66) -
Actuarial losses/(gains) on obligations 610 (140) (702) 
Benefits paid (3,625) (173) (126) 
Present values of defined benefit obligation at end of year 5,440 8,078 7,887 
2009 2008 2007
Change in fair value of plan assets: £’000 £’000 £’000 
Fair value of plan assets at start of year 6,624 7,683 7,099 
Expected return of plan assets 331 529 330 
Actuarial (losses)/gains on plan assets (88) (1,472) 38 
Contributions by employer 640 40 299 
Contributions by plan participants - 17 43 
Benefits paid (3,625) (173) (126) 
Fair values of plan assets at end of year 3,882 6,624 7,683 
The five year history of experience adjustments is as follows:
2009 2008 2007 2006 2005
£’000 £’000 £’000 £’000 £’000
Present value of defined benefit obligations 5,440 8,078 7,887 6,283 6,888 
Fair value of scheme assets 3,882 6,624 7,683 5,157 4,680 
Deficit in the scheme 1,558 1,454 204 1,126 2,208 
Experience adjustments on scheme liabilities:
Amount (£) (102) 109 97 184 (140) 
Percentage of scheme liabilities (%) 1.9% 1.3% 1.2% 2.9% 2.0%
Actual return less expected return on plan assets:
Amount (£) (88) (1,472) 38 110 670 
Percentage of scheme assets (%) 2.3% 22.2% 0.5% 2.1% 14.3%
The contributions that are expected to be paid into the scheme during the current financial year are £288,000 by the Group. 
The current arrangements as regards to contribution levels are in accordance with the Schedule of Contributions agreed
between the Group and the trustees dated 14 July 2008.
Notes to the Accounts continued
Year ended 31 December 2009
44
Annual Report and Accounts 2009 45
Annual Report and Accounts 2009
20  Deferred Tax
The following are the major deferred tax liabilities and assets recognised by the Group and movements thereon during the
current and prior reporting period.
Other Accelerated Accelerated Retirement
timing tax tax benefit
differences depreciation losses obligations Total
£’000 £’000 £’000 £’000 £’000
At 1 January 2008 - 44 - (62) (18) 
Charge/(released) to income (note 9) (93) (90) (1,217) 35 (1,365) 
Debit to equity - - - (380) (380) 
At 31 December 2008 (93) (46) (1,217) (407) (1,763) 
Charge/(released) to income (note 9) 19 27 (391) 166 (179) 
Credit to equity - - - (195) (195) 
At 31 December 2009 (74) (19) (1,608) (436) (2,137) 
Deferred tax assets relating to accelerated tax depreciation, accelerated tax losses and other timing differences have been
recognised as there is sufficient available evidence that suitable taxable profits will arise in the future against which these assets
are expected to reverse. All deferred tax assets and liabilities are provided for at the future rate of corporation tax of 28% (2008 -
28.5%). 
Certain deferred tax assets and liabilities have been offset. The following is the analysis of the deferred tax balances (after offset)
for financial reporting purposes.
Group Company
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Deferred tax liabilities - - - - 
Deferred tax assets (2,137) (1,763) (220) (105) 
(2,137) (1,763) (220) (105) 
21  Share Based Payments
The Group operates two share based plans - a Share Incentive Plan (“SIP”) and a Long Term Incentive Plan (“LTIP”). Details of
these plans are given in the Directors’ Remuneration Report on pages 16 to 20.
Share Incentive Plan
Ordinary shares in Mallett plc are held by the trustees of the SIP to provide long-term benefits to employees. The costs
associated with the purchase of own shares for the trust are deducted from equity.
Long Term Incentive Plan
Two awards, the 2007 Award and the 2009 Award, under the LTIP were outstanding at 31 December 2009. The performance
conditions relating to the 2007 Award were not met so that Award has lapsed. No fair value was placed on the shares awarded
under the 2007 Award due to there being no likelihood of the performance conditions being met and there is therefore no
impact on the Income Statement.  21  Share Based Payments continued
The fair value of shares awarded under the 2009 Award has been calculated using the Black Scholes model. This gave a fair
value of 51p per share based on the following assumptions:
2009 Award
Share price at grant date 61.5p
Exercise price n/a
Expected volatility 35%
Risk free rate 3%
Expected term (years) 3
Expected dividend yield 0%
Fair value 51.0p
The assumption on expected volatility has been made on the basis of historical share price performance. Based on the fair value
calculated and the level of non-market related performance condition expected to be achieved, a charge of £13,000 (2008 - nil)
has been included in the Income Statement.
The number and value of the ordinary shares in Mallett plc held under the SIP and LTIP are as follows:
LTIP SIP Total
No. £’000 No. £’000 No. £’000
As 1 January 2008 - - 195,595 468 195,595 468
Purchased - - 56,806 121 56,806 121
Exercised - - (35,556) (147) (35,556) (147)
At 31 December 2008 - - 216,845 442 216,845 442
Purchased 111,308 100 196,770 93 308,078 193
Exercised - - (32,583) (159) (32,583) (159)
At 31 December 2009 111,308 100 381,032 376 492,340 476
22  Called Up Share Capital
Group Company
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Authorised:
24,000,000 Ordinary shares of 5p each 1,200 1,200 1,200 1,200 
13,800,060 non-cumulative non-voting preference 
shares of 37.45p each 5,168 5,168 5,168 5,168 
6,368 6,368 6,368 6,368 
Allotted and fully paid:
13,800,060 Ordinary shares of 5p each 690 690 690 690 
6,815,812 non-cumulative non-voting preference 
shares of 37.45p each - 2,553 - 2,553 
690 3,243 690 3,243 
On 30 June 2009 the remaining 67,217 B shares which were outstanding and classified as current liabilities as at 31 December
2008 were repurchased following a final repurchase offer made on 15 June 2009. On 12 November 2009, in accordance with the
Company’s Articles, the Company cancelled the 6,815,812 non-cumulative non-voting preference shares for no consideration.
Notes to the Accounts continued
Year ended 31 December 2009
46
Annual Report and Accounts 2009 47
Annual Report and Accounts 2009
23  Lease Commitments
2009 2008
Group £’000 £’000
Present value of the future minimum operating lease payments under non-cancellable operating leases:
Less than one year 1,625 1,665 
Between two and five years 6,950 6,929 
After more than five years 24,997 27,391 
24  Reconciliation of Net Cash Flow to Movements in Net Funds and Analysis of Net Funds
At 1 Exchange At 31
January 2009 Cash Flow Movement December 2009
£’000 £’000 £’000 £’000
Cash in hand and at bank 273 2,075 (398) 1,950
Bank overdrafts (2,537) 1,406 - (1,131) 
(2,264) 3,481 (398) 819
25  Related Party Transactions
Key Management personnel
The Group’s key management personnel comprises of the Board executive and non-executive directors. The remuneration,
benefits and share incentive plan details of these key personnel are set out in the Directors’ Remuneration Report on pages 
16 to 20.
There were no transactions between the Company and its subsidiaries, which are related parties.
At the year end the following balances were outstanding to the Company:
2009 2008
£’000 £’000
Amounts owed from Group undertakings:
Mallett & Son (Antiques) Limited 14,592 14,904 
Mallett Overseas Limited 360 360 
14,952 15,264  48
Annual Report and Accounts 2009
2009 2008 2007 2006 2005
£’000 £’000 £’000 £’000 £’000
Turnover 13,980 12,109 17,488 16,642 14,925
(Loss)/Profit Before Taxation (1,774) (5,973) 1,318 12,671 2,008
(Loss)/Profit After Taxation (1,608) (4,279) 874 9,927 1,401
Dividends 2 832 1,960 1,270 1,270
Key Ratios
Basic earnings per share (11.92p) (31.47p) 6.42p 72.78p 10.15p
Basic earnings per share before restructuring (11.92p) (31.47p) 6.42p 11.06p 10.15p
Net assets per share £1.37 £1.56 £1.89 £2.56 £1.96
Five Year Record Notice of Annual General Meeting
NOTICE is hereby given that the twenty fifth Annual General Meeting of Mallett plc (the “Company”) will be held
at 141 New Bond Street, London W1S 2BS on 27 May 2010 at 4.00p.m. when the following will be proposed:
49
Annual Report and Accounts 2009
To consider and, if thought fit, to pass the following resolutions, of
which numbers 1 to 6 will be proposed as ordinary resolutions and
numbers 7 to 9 will be proposed as special resolutions:
1. To receive and adopt the Company's audited accounts for 
the year ended 31 December 2009, together with the directors'
and auditors' reports on those accounts and on the auditable
part of the Directors’ Remuneration Report.
2. To approve the Directors’ Remuneration Report for the year
ended 31 December 2009, as set out in the 2009 Annual 
Report and Accounts.
3. To re-appoint Mr. M.H.G. Neville as a Director.
4. To re-appoint Mr. M.A. Smyth-Osbourne as a Director.
5. To re-appoint Menzies LLP as auditors to the Company until 
the conclusion of the next Annual General Meeting of the
Company and to authorise the Directors to fix their
remuneration.
6. That for the purposes of section 551 Companies Act 2006 
(the “Act”) (and so that expressions used in this resolution 
shall bear the same meanings as in the said section 551):
6.1 the Directors be and are generally and unconditionally
authorised to exercise all powers of the Company to allot
shares and to grant such subscription and conversion
rights as are contemplated by sections 551(1)(a) and (b) of
the Act respectively up to a maximum nominal amount of
£230,001 to such persons and at such times and on such
terms as they think proper during the period expiring at
the end of five years from the date of the passing of this
resolution (unless previously revoked or varied by the
Company in general meeting); and further 
6.2 the Company be and is hereby authorised to make prior
to the expiry of such period any offer of agreement which
would or might require shares to be allotted after the
expiry of the said period and the Directors may allot
relevant securities in pursuance of any such offer of
agreement notwithstanding the expiry of the authority
given by this resolution;
so that all previous authorities of the Directors pursuant
to section 80 of the Companies Act 1985 be and are
hereby revoked.
7. That the Company be and is hereby generally and
unconditionally authorised for the purpose of section 701
Companies Act 2006 to make market purchases (as defined in
section 693 of the said Act) of ordinary shares of 5p each in the
capital of the Company (“ordinary shares”) provided that:
7.1 the maximum number of ordinary shares hereby
authorised to be purchased is 10% of the issued share
capital of the Company (1,380,006 ordinary shares);
7.2 the minimum price (exclusive of expenses) which may 
be paid for such ordinary shares is 5p per share, being
the nominal amount thereof;
7.3 the maximum price (exclusive of expenses) which may 
be paid for such ordinary shares shall be an amount 
equal to the higher of (i) 5% above the average of the
middle market quotations for such shares taken from 
The London Stock Exchange Daily Official List for the five
business days immediately preceding the day on which
the purchase is made and (ii) the higher of the price of
the last independent trade of an ordinary share and the
highest current independent bid for an ordinary share as
derived from the London Stock Exchange Trading System
SETS;
7.4 the authority hereby conferred shall (unless previously
renewed or revoked) expire on the earlier of the end of
the next Annual General Meeting of the Company and
the date which is 18 months after the date on which this
resolution is passed; and
7.5 the Company may make a contract to purchase its own
ordinary shares under the authority conferred by this
resolution prior to the expiry of such authority, and such
contract will or may be executed wholly or partly after the
expiry of such authority, and the Company may make a
purchase of its own ordinary shares in pursuance of any
such contract.
8. That pursuant to section 21 Companies Act 2006 (the “Act”),
the Articles of Association of the Company submitted to the
Meeting and for the purposes of identification signed by 
the Chairman, be approved and adopted as the Articles of
Association of the Company in substitution for, and to the
exclusion of, the existing Articles of Association of the
Company as deemed to be altered by virtue of section 28 
of the Act.
9. That a general meeting of the Company other than an Annual
General Meeting may be called on not less than 14 clear days'
notice.
By Order of the Board,
M.A. Smyth-Osbourne
Director and Secretary
19 April 2010
(Incorporated in England and Wales with registered number 1838233) 50
Annual Report and Accounts 2009
1. A member entitled to attend and vote at the Meeting is entitled
to appoint a proxy to exercise all or any of the rights of the
member to attend and speak and vote on his behalf. A proxy
need not be a member of the Company. A member may
appoint more than one proxy in relation to the Meeting,
provided that each proxy is appointed to exercise the rights
attached to a different share or shares held by that member.
Completion and return of a form of proxy will not preclude a
member from attending and voting at the meeting in person.
The right to appoint a proxy does not apply to any person to
whom this notice is sent who is a person nominated under
section 146 of the Companies Act 2006 (“the Act”) to enjoy
information rights (a “Nominated Person”). 
2. A form of proxy is enclosed which shareholders of the Company
are invited to complete and return. 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). 
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. 
3. The instrument appointing a proxy, together with a power of
attorney or other authority (if any) under which it is signed, or 
a notarially certified copy of such power or authority, must be
completed, signed and received so as to reach, by hand or 
post, Capita Registrars, The Proxy Department, The Registry, 
34 Beckenham Road, Beckenham, Kent, BR3 4TU no later than
4.00 pm on 25 May 2010. Any member or his proxy has the
right to ask any question at the Meeting relating to the business
at the Meeting.
4. The Company, pursuant to section 360B of the Act and
Regulation 41 of the Uncertificated Securities Regulations 
2001 (as amended), specifies that only shareholders whose
names appear on the register of members of the Company 
as at 6.00 pm on 25 May 2010 shall be entitled to attend and
vote at the Annual General Meeting in respect of the number 
of shares registered in their name at such time. If the Meeting 
is adjourned, the time by which a person must be entered on
the register of members of the Company in order to have the
right to attend and vote at the adjourned Meeting is 6.00 pm 
on the day preceding the date fixed for the adjourned Meeting.
Changes to the register of members after the relevant times
shall be disregarded in determining the rights of any person 
to attend and vote at the Meeting.
5. Copies of the following documents will be available for
inspection at the registered office of the Company during 
usual business hours on any weekday from the date of this
Notice until the date of the Annual General Meeting and
thereafter at the place of the Meeting for at least fifteen 
minutes prior to and during the Meeting:
(a) the register of interests of the Directors and their families in 
the share capital of the Company;
(b) copies of the Directors' service contracts and the letter of
appointment for the Non-Executive Directors; and
(c) the existing Articles of Association of the Company and the 
new Articles of Association of the Company as proposed in
resolution 8 in the Notice of the Annual General Meeting.
6. As at 19 April 2010 the Company's issued share capital consists
of 13,800,060 ordinary shares, carrying one vote each. Therefore
the total voting rights in the Company as at 19 April 2010 are
13,800,060.
7. The information required to be published by section 311(A) 
of the Act (information about the contents of this Notice and
numbers of shares in the Company and voting rights exercisable
at the Meeting and details of any members' statements,
members' resolutions and members' items of business 
received after the date of this notice) may be found at
www.mallettantiques.com.
8. Members representing 5% or more of the total voting rights of
all the members or at least 100 persons (being either members
who have a right to vote at the Meeting and hold shares on
which there has been paid up an average sum, per member, 
of £100 or persons satisfying the requirements set out in section
153(2) of the Act) may require the Company, under section 527
of the Act to publish on a website a statement setting out any
matter relating to: (i) the audit of the Company's accounts
(including the auditor's report and the conduct of the audit) 
that are to be laid before the Annual General Meeting; or (ii) 
any circumstance connected with an auditor of the Company
ceasing to hold office since the previous meeting at which
annual accounts and reports were laid in accordance with
section 437 of the Act. The business which may be dealt with 
at the Annual General Meeting includes any statement that the
Company has been required under section 527 of the Act to
publish on a website.
9. A Nominated Person may under an agreement between him/her
and the member who nominated him/her, have a right to be
appointed (or to have someone else appointed) as a proxy
entitled to attend and speak and vote at the Meeting.
Nominated Persons are advised to contact the member who
nominated them for further information on this and the
procedure for appointing any such proxy.
10. If a Nominated Person does not have a right to be appointed, or
to have someone else appointed, as a proxy for the Meeting, or
does not wish to exercise such a right, he/she may still have the
right under an agreement between himself/herself and the
member who nominated him/her to give instructions to the
member as to the exercise of voting rights at the Meeting. Such
Nominated Persons are advised to contact the members who
nominated them for further information on this.
Notes Form of Proxy
For use at the Annual General Meeting of Mallett plc (the “Company”)
To be held at 4.00 pm on 27 May 2010
Please insert full name(s) and address(es)
I/We 
of 
(IN BLOCK CAPITALS)
being (a) member(s) of the above-named company HEREBY APPOINT the Chairman of the Meeting
or 
as my/our proxy to vote for me/us and on my/our behalf at the annual general meeting of the company to be held on 27 May 2010 and at
any adjournment thereof and in respect of the resolutions set out in the Notice of the Annual General Meeting to vote as indicated below.
For Against Vote Withheld
Please sign and insert date. A corporation should execute under its common seal or under the hand of a duly authorised attorney.
Dated this day of 2010
Signed
Notes
1. In the case of joint holdings the signature of any holder is sufficient but the vote of the senior holder who tenders a vote (whether in person or by proxy) shall 
be accepted to the exclusion of the other joint holders; for this purpose, seniority shall be determined by the order in which the names stand in the register 
of members.
2. If you wish to appoint one or more proxies other than the Chairman, you should delete the words “the Chairman of the Meeting or”, insert your own choice 
in the space provided and initial the amendment. A proxy need not be a member of the Company but must attend the Meeting to represent you. 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). 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. On any other business which properly comes before
the Meeting (including any motion to amend any resolution or to adjourn the meeting) the proxy will vote or abstain at his or her discretion.
3. Please indicate by marking X in the appropriate space how you wish your votes to be cast. Unless so instructed the proxy will vote or abstain as he/she thinks fit. 
4. To be valid, this Form of Proxy and the power of attorney or other authority (if any) under which it is signed or a notarially certified copy of such power or
authority must be returned to Capita Registrars, The Proxy Department, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU by no later than 48 
hours before the time fixed for the Meeting.
5. A vote witheld is not a vote in law and will not be counted in the calculation of the proportion of the votes “For” or “Against” the resolutions.
6. If you appoint as your proxy a person who is himself a member of the Company or who is already appointed by more than one member of the Company, 
such person will be able to cast your vote only on a poll, not on a show of hands.
7. Completion and return of this proxy will not prevent you attending and voting at the Meeting if you so wish.
For Company Use Only
Holding of shares
Number
1. To receive and adopt the audited accounts
2. To approve the Directors' Remuneration report
3. To re-appoint M.H.G. Neville as a Director
4. To re-appoint M.A. Smyth-Osbourne as a Director
5. To reappoint Menzies LLP as auditors and to authorise the Directors to fix
their remuneration
6. To authorise the allotment of shares
7. To authorise the Company to make market purchases of its own shares
(Special Resolution)
8. To adopt new Articles of Association of the Company (Special Resolution)
9. To permit general meetings to be called on 14 clear days' notice (Special
Resolution) PXS
34 Beckenham Road
BECKENHAM
BR3 4TU
Business Reply
Licence Number
RSBH-UXKS-LRBC
1 1
Third fold and tuck in
Second fold
First fold Secretary
Michael A. Smyth-Osbourne
Registered Office
141 New Bond Street
London W1S 2BS
Company Number
1838233
Bankers
Coutts & Co
440 Strand
London WC2R 0QS
Auditors
Menzies LLP
Kings House
12-42 Wood Street
Kingston upon Thames
Surrey KT1 1TG
Solicitors
Travers Smith LLP
10 Snow Hill
London EC1A 2AL
Registrars
Capita Registrars
Northern House
Woodsome Park
Fenay Bridge
Huddersfield
West Yorkshire HD8 0GA
Stockbrokers
Singer Capital Markets Limited
One Hanover Street
London W1S 1YZ
Financial Calendar
Interim Management Statement released May 2010
Half–year results announced August 2010
Interim Management Statement released November 2010
Preliminary announcement of results for the year to 31 December 2010 March 2011
53
Annual Report and Accounts 2009
Company Advisers
DESIGNED AND PRODUCED BY SINCLAIR COMMUNICATIONS SOLD IN 2009
THE DENHAM PLACE PIER MIRRORS 
One of a magnificent pair of George I
carved gilt gesso pier mirrors, attributed
to John Belchier and almost certainly
supplied to Sir Roger Hill (d.1729) for
Denham Place, Buckinghamshire. Later
they were acquired by Lord and Lady
Chesterfield for Beningborough Hall,
York after 1917. The shaped arch plates
are set within leaf-tip, C-scroll, pendant
and strapwork-carved corbelled sides
with Prince of Wales plumes on the
cresting above a cherub mask flanked 
by eagles heads and scrolls.
England, circa 1715
141 New Bond Street
London W1S 2BS
Telephone +44 (0)20 7499 7411
929 Madison Avenue at 74th
New York, NY 10021
Telephone +1 212 249 8783
www.mallettantiques.com