Annual Report and Accounts 2005
plc GoIndustry plc (formerly “Grasshopper Investments plc”)
GoIndustry plc is a global market leader in the valuation
and sale of surplus industrial machinery and equipment.
The company combines traditional asset sales experience
with innovative eCommerce technology and advanced direct
marketing to service the needs of corporations, insolvency
practitioners, dealers and asset based lenders around
the world.
GoIndustry plc Annual report and accounts 2005
Contents
Financial & Group Highlights 01
Chairman’s Statement 02
Chief Executive’s Review 04
Board of Directors 06
Directors’ Report 07
Statement of Directors‘ Responsibilities 10
Independent Auditor’s Report 11
Consolidated Income Statement 12
Consolidated and Company Balance Sheets 13
Consolidated Statement of Cash Flows 14
Consolidated Statement of Changes in Equity 15
Principal Accounting Policies 16
Notes to the Financial Statements 21 01
GoIndustry plc Annual report and accounts 2005
Financial & Group Highlights
■ Loss before taxation and exceptional items significantly reduced by €2.6 million to €2.0 million 
(see table below)
■ Cash of €7.5 million at 5 January 2006, further enhanced after the balance sheet date by a placing of
€7.5 million in equity and redeemable, convertible debt
■ Number of online auctions increased 90% from 205 to 390 for the group worldwide
■ More than 25% of equipment sales realised online for the first time
■ New Board and Executive appointments
■ Final acquisition payments made on all group subsidiaries
■ Balance sheet strengthened by conversion of €7.7 million of debt into equity
■ AIM listing on 5 January 2006 through the reverse takeover of Grasshopper Investments plc
Revenues by geography* Revenues by business service*
* For the period ended 5 January 2006
Summary Results
Period ended Year ended
In thousands of Euro 5 January 2006 31 December 2004
Revenue 44,626 50,342
Loss before taxation and exceptional items (1,988) (4,585)
Exceptional items (8,653) (12,536)
Loss before taxation (10,641) (17,121)
Loss per share before exceptional items (€0.02) (€0.05)
Loss per share (basic) (€0.10) (€0.17) Chairman’s Statement
02
GoIndustry plc Annual report and accounts 2005
I am extremely pleased to introduce the first Annual
Report of GoIndustry plc as a public company
following its Admission to AIM on 5 January 2006.
Admission to AIM
The company had a successful debut on AIM through
the reverse takeover of Grasshopper Investments plc
(“Grasshopper”), a cash shell, which was formed for
the purpose of investing in strategic and special
situations and providing the opportunity for financing
unquoted companies seeking a public quotation.
Grasshopper raised €4.4 million (£3.0 million) and
was admitted to AIM on 7 April 2005. Following the
reverse, Grasshopper was renamed GoIndustry plc.
I would like to thank our new and existing
shareholders for supporting the company through this
significant chapter in GoIndustry’s history. Admission
to the public markets was well received and enabled
the company to strengthen its balance sheet by
converting €7.7 million of debt into equity. On 9 May
2006 we raised a further €7.5 million (£5.1 million)
through the placing of 12 million new ordinary shares
at 17.5p per share with UK institutions and the issue
of redeemable, convertible loan notes.
Results for the period to 5 January 2006
The transaction with Grasshopper has been
accounted for using reverse acquisition accounting.
The year-end has been extended by 5 days and the
accounts have been prepared for the period to
5 January 2006 to reflect this in the consolidated
results; as a consequence the comparative figures for
2004 are those of GoIndustry AG. The company has
changed the accounting reference date to
31 December, effective from 2005. The financial
statements are reported in Euros, which is the
functional currency of GoIndustry AG. From 2006, the
financial statements will be reported in Sterling, the
functional currency of GoIndustry plc.
Overall, the period to 5 January 2006 was a positive
one for GoIndustry plc. It was, however, somewhat
disappointing in terms of total revenues, which were
down 11% at the group level compared with 2004.
This was primarily due to the performance of our
business in North America, where net revenues
declined by €8.7 million, due to a very competitive
market environment. On the positive side, revenues
improved in all other geographies and the company
succeeded in reducing loss before taxation and
exceptional items to €2.0 million (year ended
31 December 2004: €4.6 million) signalling a
successful reduction in expenses and improved
management within each business unit. Loss before
taxation was €10.6 million (year ended 31 December
2004: €17.1 million). The Chief Executive’s review of
operations is set out on pages 4 and 5 of this report.
Appointments to the board
In our AIM admission document, we stated that the
company intended to change the members of the
Grasshopper board following completion of the
transaction to reflect the company’s new status.
Malcolm Burne and Richard Lockwood resigned on
9 December 2005 and Nathan Steinberg resigned on
5 January 2006. David Bailey, the former Chairman of
Grasshopper remains a director, while on 5 January
2006 John Allbrook, M. Alexander Hoye, Kamal
Advani, David MacNamara and I were elected to the
Board. The directors have a great deal to offer the
company including public company board level
experience and knowledge of the industrial asset
disposal business. A further significant board
appointment was made on 26 June 2006, when 
David Horne was appointed to the Board, following
the decision of co-founder, M. Alexander Hoye, to
step down. Alex’s contribution to the company since
its inception in 1999 has been outstanding, and on
behalf of the entire board I would like to thank him
for his vision, passion and commitment during the
past seven years.
I am pleased to announce that 2005 was a very successful
year for your company in many ways. We relocated our head
office from Munich to London and made significant new Board
and Executive appointments to lay a strong foundation for
future growth. Remaining acquisition payments were made
enabling our four primary business units in the UK, Continental
Europe, North America and Asia to be completely integrated
under one global leadership team. We completed our listing of
the company on AIM through the reverse takeover of
Grasshopper Investments plc on 5 January 2006 and have
therefore extended the financial year-end to that date. 3
GoIndustry plc Annual report and accounts 2005
People
Our company critically depends on the commitment
of our employees in all of its geographies and I
would like to thank each and every one for their
dedication and loyalty over the years. GoIndustry
would not be what or where it is today, were it not
for the enthusiasm, commitment and vision of our
hard-working people.
Growth
The company has made a positive start to 2006 and
is well positioned to take advantage of the
accelerating trend of the movement of industrial
manufacturing from North America and Western
Europe to China, India and the emerging economies
of Eastern Europe. Profitable growth will be achieved
through an appropriate combination of organic
execution and carefully targeted acquisitions.
Foundations for growth were shaped during 2005
through initiatives to align sales efforts with the most
significant growth opportunities, to drive the
penetration of online auction sales and the full
integration of each geographic business unit. Results
so far this year show these initiatives delivering in
line with our expectations. Our strong technology
platform, multinational reach and experienced
employee base leave us well positioned to deliver
significant growth in 2006 and beyond.
Signature
William Z Fox
Chairman
4 July 2006
■ 1+ million buyer records
■ 688 auctions held in 205, up 7% over 2004
■ Equipment sold into more than 75 countries
■ 5+ million page views per month
03 04
GoIndustry plc Annual report and accounts 2005
Chief Executive’s Review
Operationally during the period ended 5 January 2006, we focused on four key initiatives, which collectively
have positioned the company for future profitable growth:
■ Sales alignment with the most significant and profitable growth opportunities
■ Increased online auction penetration
■ Expanding the global buyer database
■ Improving operating margins
These initiatives are already delivering improved results and operating margins in 2006 and are enabling the
company to maintain its leadership position and enhance its reputation as the global destination web site for
buyers and sellers of surplus industrial assets.
As the final acquisition payments were made, so we launched another initiative, to complete the integration of
the businesses acquired in each geography by means of defined cultural and systems projects. The leadership
team has focused on creating a networked global entity with:
■ A learning and performance culture
■ Transparent priorities for effective technology integration
■ The sales force aligned to key client channels
In addition several key appointments have been made, from both within and outside the company, to
strengthen the leadership team, including:
■ Global HR Director
■ Global Marketing & Technology Director
■ Group Legal Counsel
■ CEO North America
Along with the recent appointment of new Chief Financial Officer, David Horne, the company is well placed to
optimise its position in 2006 and beyond.
Geographic overview
GoIndustry auctioned over €140 million worth of surplus industrial assets in the period ended 5 January 2006
to buyers in over 75 countries, continuing to expand our market penetration throughout our four primary
business units.
United Kingdom
The UK is the group’s largest division and represents 50% of total group sales. Total revenues increased in the
period ended 5 January 2006 to €21.9 million. Online Gross Asset Sales increased to €14.6 million in the period
ended 5 January 2006 (31 December 2004: €5.8 million), marking a tremendous shift for the business. This
excellent result reflected strong improvements in sales efforts and international marketing, as this division
significantly increased its activities outside the UK, winning transactions in the Czech Republic, Finland,
Denmark, France, Ireland, Spain and South Africa.
Continental Europe
With total sales of €10.0 million in the period ended 5 January 2006, Continental Europe was up 3% on the
year ended 31 December 2004. Revenues improved despite a decline in the number of insolvencies in Germany
During the past year we have enhanced our position by
expanding the reach of our global buyer database, increasing
the penetration of online auctions and aligning our sales force
with the most significant opportunities. 390 online auctions
were executed in the period ended 5 January 2006, up 90%
on 2004, confirming the scalability and reliability of a platform
we believe to be unmatched in the industry. 05
GoIndustry plc Annual report and accounts 2005
as overall economic conditions improved. Revenues in Belgium significantly increased to €884,000 thanks
mainly to new contracts secured with Coca Cola, Inalfa and Houthalen.
North America
Sales in North America declined in the period ended 5 January 2006 to €9.8 million, representing 22% of total
group revenues. This substantial decrease can primarily be attributed to intensely competitive market
conditions, and a reduction in the number of instructions from asset based lenders. Furthermore, aged
inventory was written down in the period. In January 2006 a new CEO for this region was appointed. Results so
far in 2006 have improved in line with our expectations.
Asia
The Asian division grew revenues by 62% to €2.9 million, representing 6% of total group sales. This strong
result reflected improvements in sales origination activities, increases in the buyers premium charged and close
cost control. The highlight of the year was the online auction of an Annealing and Pickling line for €1.3 million,
the group’s largest single lot sold online at that time; in March 2006 this record was broken when a textile mill
was sold for €2.1 million. Additionally a joint venture was established in India, which broke even in its first
6 months of operation. This entity was established not only to begin asset disposals within one of the world’s
fastest growing economies but also to drive sales of equipment from Europe and North America.
Corporate Accounts
GoIndustry has a dedicated global sales team responsible for originating long-term asset management and
disposal contracts with multi-national corporations. This portfolio of customers now includes General Motors
Corporation, Alcoa Limited, Parker Hannifin Corporation and Campbells Soup. In the period ended 5 January
2006 this sales team has grown its share to 7% of GoIndustry’s global revenues. Encouragingly, in June 2006
the company secured an exclusive global contract with Dana Corporation, which positions this sales team for
continued profitable growth in 2006.
Outlook
The period ended 5 January 2006 was a period in which the company laid significant foundations for the future.
Already these changes are yielding improved results in line with our expectations for 2006. As GoIndustry
enters the next exciting phase of its development, as a company listed on AIM, we are set to make more
investments in our core technology and systems, expand our sales force in key geographies and client channels,
and leverage our global leadership position. The company has a solid base from which to build in 2006.
John Allbrook
Chief Executive Officer
4 July 2006 Board of Directors
06
GoIndustry plc Annual report and accounts 2005
William Z. Fox (64)
Chairman
William has been in the auction business since 1961
and has conducted real estate and machinery and
equipment auctions throughout the United States and
around the world. He is currently the Chairman of the
Board of Trustees of the National Auctioneers
Association Education Institute and is serving a
second term on the National Auctioneers Association
Board of Directors. An attorney, his business career
also includes experience as a stockbroker as well as
senior executive positions with several New York
Stock Exchange firms.
John Allbrook (44)
Chief Executive Officer
John Allbrook has been involved in equipment
financing, logistics and dispositions for over 15 years.
He has extensive involvement and experience
particularly in corporate and strategic planning,
acquisitions and in growing businesses organically in
a multi-cultural environment. He spent nine years at
General Electric, during which time he was the
Managing Director of GE – European Financing
Solutions, and the Commercial Director of GE
Commercial Finance – Fleet Services.
David Horne (44)
Chief Financial Officer
David Horne was previously Group Finance Director
of Huveaux PLC, the AIM-listed media and publishing
group. He has run his own consultancy practice and
was formerly European Finance Director of BSMG
Worldwide, the international PR agency. After
qualifying as a Chartered Accountant with Price
Waterhouse (now part of PricewaterhouseCoopers
LLP) in Canada he moved with them to Zurich. He
then held senior financial positions with AT&T in
Zurich and London, and with the BBC. He is also a
non-executive director and Chairman of the Audit
Committee of The Centre International Limited, a
privately held European public policy and
communications enterprise.
David Bailey (57)
Non-Executive Director
David Bailey was a stockbroker with Phillips and Drew
for 18 years from 1970, specialising in equity and
derivative markets. Since 1988, he has been a
non-executive director of a number of public and
private companies, including Appleyard Group plc,
Hay & Robertson Group plc, Finsbury Asset
Management Limited and Sutherlands (Stockbrokers)
Limited. He is currently deputy Chairman of DataCash
Group plc, the AIM-listed payment service provider.
David MacNamara (49)
Non-Executive Director
David MacNamara was a stockbroker for 25 years
specialising in market making in UK smaller
companies. He was a director of NatWest Investment
Bank and a founding director of Winterflood
Securities, a wholly owned subsidiary of Close
Brothers Group plc. Until his retirement in 2004 
he was Joint Chief Executive of Winterflood 
Securities and an executive director of Close 
Brothers Group plc.
Kamal Advani (45)
Non-Executive Director
Kamal Advani is currently a Managing Director at
Internet Capital Group, Inc. (NASDAQ: ICGE). In this
capacity, Kamal holds directorships with Freeborders,
Inc., eCredit.com, Inc., Marketron International, Inc.
and Qcorps Residential, Inc. Prior to this Kamal was
with Advanta Corporation Inc. (NASDAQ: ADVNA)
where he held several positions including Senior Vice
President and Chief Financial Officer of Advanta
Business Cards, a leading issuer of credit cards to
small businesses. Earlier in his career, Kamal was a
senior manager in the financial advisory services
group at Coopers & Lybrand (now part of
PricewaterhouseCoopers LLP), where he provided
financial consulting services to a broad range of
companies in connection with mergers, acquisitions,
financing transactions and business reorganizations. Directors’ Report
for the period ended 5 January 2006
07
GoIndustry plc Annual report and accounts 2005
The results for the group are shown on page 12 and show a loss for the period ended 5 January 2006 of
€10.6 million before taxation. The company was incorporated on 3 March 2005 as Grasshopper Investments
plc. On 5 January 2006, the reverse takeover of Grasshopper by GoIndustry AG was completed, and the
company changed its name to GoIndustry plc and its shares were re-admitted to AIM. As indicated in the
re-admission document, the company has changed its accounting reference date to 31 December, effective
from 2005.
As explained in the principal accounting policies the group accounts have been prepared using reverse
acquisition accounting and therefore show the trading results of the GoIndustry AG group. The goodwill arising
on the reverse acquisition of €4.3 million has been added to the group goodwill balance (see note 10).
Principal activities and review of the business
The principal activity of the group is the provision of valuation services and sale of used industrial assets. The
Chairman’s Statement and Chief Executive’s Review that accompany this report give a more detailed description
of the group’s activity during the period together with likely future developments.
Directors
The following were directors of the company during the financial period under review and up to the date of
signing these financial statements:
Appointed on Resigned on
David Bailey 4 March 2005 —0
Malcolm Burne 4 March 2005 9 December 2005
Richard Lockwood 4 March 2005 9 December 2005
Nathan Steinberg 4 March 2005 5 January 2006
Kamal Advani 5 January 2006 —0
John Allbrook 5 January 2006 —0
M. Alexander Hoye 5 January 2006 26 June 2006
David MacNamara 5 January 2006 —0
William Z. Fox 5 January 2006 —0
David Horne 26 June 2006 —0
Directors’ Interests
On the dates given, the interests of directors and their beneficial interests in the issued ordinary shares of the
company were as follows:
As at 3 March 2005 As at 5 January 2006
Number of shares or date of appointment if later
David Bailey 750,000 750,000
John Allbrook 469,570 469,570
M. Alexander Hoye 3,923,850 3,923,850
David MacNamara 1,464,520 1,464,520
William Z. Fox 840,623 840,623
Options over ordinary shares
GoIndustry AG created its first unapproved Executive Share Option Scheme on 28 October 1996 (as amended)
to provide incentive to the group’s management and certain key employees. There are over 17 million options
over ordinary shares held by key employees and directors in GoIndustry AG.
Options over shares of GoIndustry AG held by executive directors at 5 January 2006 are as follows:
At 5 January 2006 Exercise price Date from which Expiry date
Number of shares exercisable
M. Alexander Hoye 110,000 €1 30 December 2004 31 December 2014
During the period 3 million options over ordinary shares were granted to directors and former directors of
Grasshopper Investments plc. All interests of directors shown below were held beneficially. The Directors hold
options over the company’s ordinary shares at 5 January 2006 as follows:
At 5 January 2006 Exercise price Date from which Expiry date
Number of shares exercisable
David Bailey 750,000 10p 1 April 2005 6 April 2012 Directors’ Report
for the period ended 5 January 2006
08
GoIndustry plc Annual report and accounts 2005
Substantial shareholdings
The following individual shareholdings, other than directors, represented 3% or more of the issued share capital
of the company as at 27 June 2006:
Internet Capital Group, Inc. 34.7%
Atlas Fund IV 18.4%
Framlington Investment Management Limited 6.8%
Artemis Investment Management Limited 4.4%
Corporate Governance
The company is listed on the Alternative Investment Market and is therefore not required to comply with the
provisions of the Combined Code. However, the Board is committed to ensuring that proper standards of
corporate governance operate and has established governance procedures and policies that are considered
appropriate to the nature and size of the group. The Board considers that at this stage in the company’s
development, the expense of full compliance with the Combined Code is not appropriate although it intends, as
the company grows, to ensure that it observes the provisions of the Code, so far as is practicable.
The directors are responsible for the group’s and the company’s system of internal financial control,
safeguarding the assets of the group and the company and for taking reasonable steps for the prevention and
detection of fraud and other irregularities. In carrying out their responsibilities the directors have put in place a
framework of controls to ensure ongoing financial performance is monitored in a timely and corrective manner
and risk is identified as early as practicably possible. Clear lines of authority, responsibility and financial
accounting exist between the relevant heads of department and the directors. The directors have reviewed the
effectiveness of the system of internal control. Such a system can only provide reasonable and not absolute
assurance against material misstatement or loss.
The Audit Committee is comprised of David Bailey, William Fox, Kamal Advani and David MacNamara, and is
chaired by David Bailey. The committee meets not less than three times annually and provides a link between
the board and the group’s auditors on matters falling within the scope of the group’s audit. These matters
include accounting standards and policies, internal financial control procedures and the group’s financial
statutory reports, which are intended for publication. A formal statement of independence is received from the
external auditors each year.
The Remuneration Committee consists of David Bailey, William Fox, Kamal Advani and David MacNamara and is
chaired by William Fox. The Remuneration Committee takes the following into account in determining the
salaries and benefits of executive directors:
■ The need to pay salaries comparable to those of competitor companies
■ The provision of related benefits which include medical insurance and insurance related to the directors’
duties
■ The need to link individuals to the long-term success of the group through the award of share options with
amounts allocated determined by importance of the role and performance of the executive concerned
■ The use of a profit-related incentive scheme to reward individual contribution to attainment of profit targets
The board reviews the salaries and benefits of executive directors each year by considering the
recommendations of the Remuneration Committee and having regard to personal performance, affordability and
comparable pay levels in the market.
Going Concern
The directors are of the opinion that at the time of approving the financial statements, the company and the
group as a whole have adequate resources to continue in operational existence for the foreseeable future. For
this reason, they continue to adopt the going concern basis in preparing the financial statements.
Dialogue with Shareholders
The company reports formally to shareholders twice a year, when its half-year and full-year results are
announced and an Interim Report and Annual Report are sent to its shareholders. The Annual Report includes
notice of the Annual General Meeting of the company at which a presentation is given and directors are
available to take questions both formally during the meeting and informally after the meeting. Management is
available for dialogue with major shareholders on the company’s plans and objectives and meets with them
periodically.
Political and charitable contributions
During the period, the company and its subsidiaries made a charitable contribution of €15,000 
(31 December 2004: nil). The company and its subsidiaries made no political contributions during the period
(31 December 2004: nil). 09
GoIndustry plc Annual report and accounts 2005
Creditor payment policy
The group agrees the terms and conditions under which business transactions with suppliers are conducted. It
complies with these payment terms, provided that it is satisfied that the supplier has provided the goods or
services in accordance with agreed terms and conditions. The number of days taken to pay suppliers based on
trade creditors as at 5 January 2006, is 67 (31 December 2004: 76).
Financial Instruments
Note 26 to the financial statements sets out the risk in respect of financial instruments. The Board reviews and
agrees overall treasury policies, delegating appropriate authority to the Chief Executive and Chief Financial
Officer. Financial instruments are used to manage the financial risks facing the group – speculative transactions
are not permitted. Treasury operations are reported at each Board meeting and are subject to weekly internal
reporting.
Auditors
Baker Tilly were appointed as auditors of the company on 12 January 2006. A resolution to reappoint Baker
Tilly will be proposed at the Annual General Meeting.
By order of the Board
Cargil Management Services Limited
Company Secretary
4 July 2006 10
GoIndustry plc Annual report and accounts 2005
The directors are responsible for preparing the Annual Report and the financial statements in accordance with
applicable law and United Kingdom Generally Accepted Accounting Practice.
Company law requires the directors to prepare financial statements for each financial year, which give a true
and fair view of the state of affairs of the company and the group as at the end of the financial year and of the
profit and loss of the group for that year. In preparing those financial statements, the directors are required to:
■ select suitable accounting policies and then apply them consistently;
■ make judgements and estimates that are reasonable and prudent;
■ state whether applicable accounting standards have been followed;
■ prepare the financial statements on a going concern basis unless it is inappropriate to presume that the
group will continue in business.
The directors are responsible for keeping proper accounting records, which disclose with reasonable accuracy at
any time the financial position of the company and the group and to enable them to ensure the financial
statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the
group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of Directors’ Responsibilities
for the period ended 5 January 2006 11
GoIndustry plc Annual report and accounts 2005
We have audited the group and parent company financial statements on pages 12 to 32. This report is made
solely to the company’s members, as a body, in accordance with section 235 of the Companies Act 1985. 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
The directors’ responsibilities for preparing the Annual Report and the financial statements in accordance with
applicable law and International Financial Reporting Standards (IFRS) as adopted for use in the European Union
are set out in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory
requirements and International Standards on Auditing (UK and Ireland). We report to you our opinion as to
whether the financial statements give a true and fair view and whether the financial statements have been
properly prepared in accordance with the Companies Act 1985 and Article 4 of the IAS Regulation. We also
report to you if, in our opinion, the Directors’ Report is not consistent with the financial statements, if the
company has not kept proper accounting records, if we have not received all the information and explanations
we require for our audit, or if information specified by law regarding directors’ remuneration and other
transactions is not disclosed.
We read other information contained in the Annual Report and consider whether it is consistent with the
audited financial statements. The other information comprises only the Chairman’s Statement, Chief Executive’s
Review and the Directors’ Report. We consider the implications for our report if we become aware of any
apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not
extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the
Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts
and disclosures in the financial statements. It also includes an assessment of the significant estimates and
judgements made by the directors in the preparation of the financial statements, and of whether the accounting
policies are appropriate to the group’s and company’s circumstances, consistently applied and adequately
disclosed. We planned and performed our audit so as to obtain all the information and explanations which we
considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the
financial statements are free from material misstatement, whether caused by fraud or other irregularity or error.
In forming our opinion we also evaluated the overall adequacy of the presentation of information in the
financial statements.
Opinion
In our opinion:
The group financial statements give a true and fair view, in accordance with IFRS as adopted for use in the
European Union, of the state of the group’s affairs as at 5 January 2006 and of its loss for the period then
ended.
The parent company financial statements give a true and fair view, in accordance with IFRS as adopted for use
in the European Union as applied in accordance with the provisions of the Companies Act 1985, of the state of
the parent company’s affairs as at 5 January 2006.
BAKER TILLY
Registered Auditor
Chartered Accountants
2 Bloomsbury Street
London WC1B 3ST
4 July 2006
Independent Auditor’s Report
for the period ended 5 January 2006 12
GoIndustry plc Annual report and accounts 2005
Consolidated Income Statement
for the period ended 5 January 2006
Period ended Year ended
In thousands of Euro Notes 5 January 2006 31 December 2004
Revenue 1 44,626 50,342
Cost of Sales (21,366) (24,340)
Gross profit 23,260 26,002
Administrative expenses (23,080) (29,400)
Share based payments 24 (735) —0
Exceptional items 2 (5,889) (12,536)
Total administrative expenses (29,704) (41,936)
Loss from operating activities (6,444) (15,934)
Net finance costs 3 (1,433) (1,187)
Exceptional finance charges 2 (2,764) —0
Total net finance costs (4,197) (1,187)
Loss before income tax 4 (10,641) (17,121)
Income tax expense 7 (186) (317)
Loss for the period/year (10,827) (17,438)
Attributable to:
Equity holders of the company (10,851) (17,422)
Minority interest 8 24 (16)
(10,827) (17,438)
Loss per share attributable to equity holders of 
the company
Basic 9 (€0.10) (€0.17)
Fully diluted 9 (€0.10) (€0.17)
The accompanying notes form an integral part to these consolidated and company financial statements. 13
GoIndustry plc Annual report and accounts 2005
Group Company
As at As at As at
In thousands of Euro Notes 5 January 2006 31 December 2004 5 January 2006
Non-current assets
Intangible assets 10 36,199 32,057 —0
Property, plant and equipment 11 1,441 1,565 —0
Investments 13 —0 —0 15,328
Total non-current assets 37,640 33,622 15,328
Current assets
Inventories 3,485 3,611 —0
Accounts receivable 14 8,822 8,779 3,381
Cash and cash equivalents 15 7,547 3,180 2,427
Total current assets 19,854 15,570 5,808
Total assets 57,494 49,192 21,136
Current liabilities
Accounts payable 16 11,818 14,412 —0
Current tax liabilities 218 100 —0
Provisions 17 1,064 837 —0
Bank loans and overdrafts 18 9,089 4,289 —0
Total current liabilities 22,189 19,638 —0
Non-current liabilities
Loans and borrowings 19 274 2,019 —0
Provision for pension liabilities 20 7,734 7,336 —0
Other non-current payables 21 —0 140 —0
Total non-current liabilities 8,008 9,495 —0
Total liabilities 30,197 29,133 —0
Net assets 27,297 20,059 21,136
Capital and Reserves
Called-up equity share capital 22 13,848 7,589 13,848
Share premium 22 4,022 2,113 5,124
Shares to be issued 22 5,847 4,210 2,362
Treasury shares 22 (551) —0 —0
Acquisition reserve 68,783 59,958 —0
Foreign currency translation 302 293 29
Accumulated losses (65,131) (54,280) (227)
Equity shareholders’ funds 27,120 19,883 21,136
Minority interests 8 177 176 —0
Total equity 27,297 20,059 21,136
The financial statements were approved and authorised for issue by the board on 4 July 2006.
John Allbrook David Horne
Chief Executive Officer Chief Financial Officer
The accompanying notes form an integral part to these consolidated and company financial statements.
Consolidated and Company Balance Sheets
as at 5 January 2006 14
GoIndustry plc Annual report and accounts 2005
Period ended Year ended
In thousands of Euro 5 January 2006 31 December 2004
Cash flows from operating activities
Loss before income tax (10,641) (17,121)
Depreciation, amortisation and impairment 518 11,208
Net interest expense 1,433 1,187
Share based payments 735 —0
Write down of inventory 4,044 —0
Bad debt provision 791 —0
Actuarial losses on defined benefit scheme 668 3,221
Premium on loan note conversion 2,764 —0
Cash inflow/(outflow) before working capital changes 312 (1,505)
(Increase)/decrease in inventories (3,918) 4,807
(Increase)/decrease in accounts receivable (836) 1,243
Decrease in accounts payable (293) (9,922)
(Decrease)/increase in provisions (183) 931
Cash used in operations (4,918) (4,446)
Interest paid (1,601) (1,127)
Income and corporation taxes paid (7) (348)
Interest received 168 140
Net cash used in operating activities (6,358) (5,781)
Cash flow from investing activities
Purchase of property, plant and equipment (315) (499)
Proceeds from disposals of property, plant and equipment —0 199
Purchase of intangible assets (27) (135)
Net cash used in investing activities (342) (435)
Cash flow from financing activities
Proceeds from issue of share capital 2,526 4,008
Proceeds from loan notes 3,860 —0
Costs related to fund raising —0 (475)
Increase/(decrease) in bank loans and overdrafts 4,800 (2,614)
Repayment of loans and borrowings (128) (82)
Net cash from financing activities 11,058 837
Net increase/(decrease) in cash and cash equivalents 4,358 (5,379)
Cash and cash equivalents at beginning of period/year 3,180 8,789
Foreign exchange differences 9 (230)
Cash and cash equivalents at end of period/year 7,547 3,180
The company had nil cash flow from operations; it raised €4.3 million from financing activities, being proceeds
from issue of share capital; it invested €1.9 million, being a €1.0 million investment in GoIndustry AG and
€0.9 million of costs associated with the reverse takeover. Cash and cash equivalents at the end of the period
were therefore €2.4 million.
The accompanying notes form an integral part to these consolidated and company financial statements.
Consolidated Statement of Cash Flows
for the period ended 5 January 2006 15
GoIndustry plc Annual report and accounts 2005
Issued Shares Foreign Equity
share Share to be Acquisition Treasury currency Accumulated shareholders’
In thousands of Euro capital premium issued reserve shares translation losses funds
Equity as at 7,589 2,113 4,210 59,958 —0 293 (54,280) 19,883
1 January 2005
Exchange difference —0 —0 —0 —0 —0 9—0 9
on foreign currency 
translation
Loss for period —0 —0 —0 —0 —0 —0 (10,851) (10,851)
Shares issued to satisfy 4,015 1,909 —0 1,909 (551) —0 —0 7,282
liabilities (note 22)
Shares to be issued —0 —0 1,637 —0 —0 —0 —0 1,637
Shares issued for 2,244 —0 —0 6,916 —0 —0 —0 9,160
acquisition
At 5 January 2006 13,848 4,022 5,847 68,783 (551) 302 (65,131) 27,120
Consolidated Statement of Changes in Equity
for the year ended 31 December 2004
Issued Shares Foreign Equity
share Share to be Acquisition currency Accumulated shareholders’
In thousands of Euro capital premium issued reserve translation losses funds
Equity as at 7,589 2,113 4,210 59,958 444 (36,858) 37,456
1 January 2004
Exchange difference on 
foreign currency translation —0 —0 —0 —0 (151) —0 (151)
Loss for year —0 —0 —0 —0 —0 (17,422) (17,422)
Equity as at 7,589 2,113 4,210 59,958 293 (54,280) 19,883
31 December 2004
Minority interests in total equity have increased by €1,000 in the period ended 5 January 2006 (year ended
31 December 2004: decreased by €16,000) as disclosed in note 8.
The accompanying notes form an integral part of these consolidated and company financial statements.
Consolidated Statement of Changes in Equity
for the period ended 5 January 2006 Basis of preparation
The financial statements have been prepared to comply with International Financial Reporting Standards (IFRS)
issued by the International Accounting Standards Board (IASB) and with the standing interpretations issued by
the International Financial Reporting Interpretations Committee (IFRIC) of the IASB.
The financial statements have been prepared on a going concern basis under the historical cost convention. In
addition, in accordance with IFRS 3 “Business Combinations”, fair value adjustments are made as part of the
purchase accounting for corporate acquisitions. The group’s and company’s principal accounting policies under
IFRS are as follows:
At the date of authorisation of these financial statements the following Standards and Interpretations which
have not been applied in these financial statements were in issue but not yet effective:
IFRS 6 Exploration for and Evaluation of Mineral Resources
IFRS 7 Financial instruments: Disclosures; and the related amendment to IAS 1 on capital disclosures
IFRIC 4 Determining whether an Arrangement contains a Lease
IFRIC 5 Rights to Interest Arising from Decommissioning, Restoration and Environmental Rehabilitation Funds
IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies
IFRIC 8 Scope of IFRS 2 Share-based Payment
IFRIC 9 Reassessment of Embedded Derivatives
The directors anticipate that the adoption of these Standards and Interpretations in future periods will have no
material impact on the financial statements of the group when the relevant standards and interpretations come
into effect.
Use of Estimates
The preparation of financial statements requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, as well as disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. Significant items subject to such estimates and judgments include the recoverability of the long-lived
assets, the realisability of deferred income tax assets and inventories, and the fair value of share-based
employee compensation awards. Actual results may differ from those estimates.
Basis of consolidation
The consolidated accounts comprise the accounts of GoIndustry plc and its subsidiaries. Control is achieved
when the company has the power to govern the financial and operating policies of an investee entity so as to
obtain benefits from its activities.
With effect from 5 January 2006, the company, then named Grasshopper Investments plc, became the legal
parent company of GoIndustry AG and its subsidiary undertakings in a share-for-share transaction. Due to the
relative value of the companies, the former GoIndustry AG shareholders became the majority shareholders with
86% of the share capital of the enlarged group. Therefore the substance for the combination is that GoIndustry
AG acquired Grasshopper Investments plc in a reverse acquisition. As part of the business combination,
Grasshopper Investments plc changed its name to GoIndustry plc.
The financial statements of all subsidiaries are consolidated from the date on which control is transferred to the
group until the date control ceases. Where necessary, adjustments are made to the results of acquired
subsidiaries to bring their accounting policies into line with those used by other members of the group.
Minority interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity
and consist of the amount of those interests at the date of the original business combination plus their share of
changes in equity since that date.
Revenue recognition
Revenue is measured at the fair value of consideration received or receivable and represents amounts
receivable for goods and services provided in the normal course of business, net of discounts, VAT and other
sales-related taxes, and provisions for returns and cancellations.
The primary business of the group is the provision of services associated with the valuation and sale of used
industrial equipment. In such circumstances group companies act as an agent on behalf of their clients, and
revenues represent commissions or fees charged to clients in connection with the provision of these services.
group companies may also take a position as a principal whereby they purchase and sell equipment on their
own behalf. On these occasions revenues represent the percentage ownership of the value of the equipment
Principal Accounting Policies
for the period ended 5 January 2006
16
GoIndustry plc Annual report and accounts 2005 17
GoIndustry plc Annual report and accounts 2005
being sold with the cost of such equipment being reported within inventory at the time of purchase and as cost
of sales at the time of sale.
Revenue is recognised when it is probable that the economic benefits will flow to the group, when the revenues
and associated costs can be reliably measured and when the stage of completion of the transaction at the
balance sheet date can also be reliably measured. In addition in the case of principal sales of equipment the
group company must have transferred to the buyer the significant risks and rewards of ownership of those
goods, and must retain no significant managerial involvement with, nor control over, those goods.
In the case of agency sales a buyer will usually be identified, the sale price agreed and the buyer invoiced on
behalf of the client before the group invoices the client. Accrued income receivable represents an accrual for
such work completed on behalf of clients but not yet invoiced to the client. Accruals are estimated based on the
expected proceeds from the sale of client owned equipment, agreed commission rates and other contractual
terms.
Finance income and finance costs
Finance income comprises the return generated on cash and cash equivalents and is recognised as it accrues.
Finance costs comprise the interest on external borrowings and are recognised to provide a constant effective
interest rate.
Business combinations
The acquisition of subsidiaries is accounted for using the purchase method. The cost of acquisition is measured
at the aggregate of fair values, at the date of exchange, of assets given, liabilities incurred or assumed and
equity instruments issued by the group in exchange for control of the acquiree, plus any costs directly
attributable to the business combination. The acquiree’s identifiable assets, liabilities and contingent liabilities
that meet the conditions for recognition under IFRS 3 “Business Combinations” are recognised at their fair value
at the acquisition date.
For each acquisition, IFRS 3 requires the identification of the acquirer. In a reverse acquisition, the acquirer is
deemed to be the entity whose equity interests have been acquired and the entity that issued equity, debt or
paid cash to finance the acquisition is deemed to be the acquiree. Although legally the issuing company is the
parent, the legal subsidiary is deemed to be the acquirer if it has the power to govern the financial and
operating policies of the legal parent so as to obtain benefits from its activities.
In accordance with IFRS 3:
■ The pre-combination results of the new group are those of the GoIndustry AG group.
■ The reserves of the group are based on the pre-combination reserves of the GoIndustry AG group.
■ Grasshopper Investments plc has been brought into the consolidation from the date of its reverse acquisition
at fair values at that date.
■ Goodwill arising on the reverse acquisition is the difference between the fair value of the consideration
effectively given by the GoIndustry AG group to acquire Grasshopper Investments plc and the aggregate of
the fair values of the separable net assets of Grasshopper Investments plc.
Intangible assets
The group recognises three types of intangible assets: goodwill arising from the acquisition of a subsidiary
company, external systems development expenses and external software licence expenses.
Goodwill arising from the acquisition of a subsidiary company is calculated as the excess of purchase
consideration over the fair value of net identifiable assets and liabilities at the date of acquisition. On 1 January
2005, the company adopted the new provisions of IAS 38 “Intangible Assets” and as such goodwill arising on
acquisitions is no longer amortised. It is recognised as an asset at cost, assessed for impairment at least
annually and subsequently measured at cost less accumulated amortisation prior to 2005 and less accumulated
impairment losses.
For the purpose of impairment testing, goodwill is allocated to each of the group’s cash-generating units
expected to benefit from a business combination. Goodwill is tested for impairment at each balance sheet date
and when events or changes in circumstances indicate that the carrying value may not be recoverable. If any
such indication of impairment exists the assets are written down to their recoverable amount, being the greater
of net selling price or value in use. In assessing value in use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate of 10% that reflects current market assessments of the time
value of money and risks specific to the asset. Impairment losses are charged against profits in the period in
which the loss is recognised.
Systems development costs and software licences are capitalised at the cost paid to the external suppliers.
Systems development costs and software licences are all stated at historical cost less accumulated amortisation
and less any impairment in value. 18
GoIndustry plc Annual report and accounts 2005
Amortisation is calculated on a straight-line basis over the estimated useful life of the asset as follows:
Systems development costs 2 – 3 years
Software licences 2 – 3 years
The group does not capitalise costs incurred internally in connection with the development of the group’s
systems infrastructure and software services. Capitalisation of such costs is recommended under IAS 38 but
management consider that such costs cannot be measured with sufficient reliability and accuracy. Additionally,
in line with IFRS, the group does not recognise internally generated goodwill arising from expenditures such as
research, branding or the creation of its customer and equipment databases. Expenditures associated with
internal systems development and with internally generated goodwill are instead charged against profit in the
period in which they are incurred.
Property, plant and equipment
Property, plant and equipment are stated at historical cost less accumulated depreciation and less any
impairment in value. Depreciation is provided to write off the cost less the estimated residual value of tangible
fixed assets on a straight-line basis over the estimated useful lives of the assets as follows:
Buildings Period of lease
Vehicles 4 years
Furniture and fittings 3 years
Computer equipment 3 years
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in
circumstances indicate the carrying value may not be recoverable. If any such indication of impairment exists
the assets are written down to their recoverable amount, being the greater of net selling price or value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and risks specific to the
asset. Impairment losses are charged against profits in the period in which the loss is recognised.
Inventories
Inventories represent used capital equipment (and on rare occasions real estate) acquired by group companies
for resale and capitalised costs incurred on resale projects that are in progress and are valued at the lower of
cost and net realisable value.
The cost of goods purchased for resale is normally limited to the amounts paid to third parties to acquire legal
title to the goods. Occasionally additional costs are incurred in the repair, refurbishment, transportation and
storage of the equipment and are added to the cost of inventory.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of
completion and estimated costs necessary to make the sale.
Accounts receivable
Accounts receivable comprise trade accounts receivable, accrued income receivable, auction expenses
receivable, and other receivables. Trade accounts receivable are recognised at fair value and carried at
amortised cost using the effective interest method less an allowance for any bad or doubtful debts if necessary.
An estimate for bad and doubtful debts is made when collection of a portion or all of the receivable is no longer
probable. Bad and doubtful debts are charged against profits in the period in which they are identified. Accrued
income receivable represents an accrual for work completed on behalf of clients but not yet invoiced. Auction
expenses represent costs incurred on behalf of and recoverable from clients but not yet invoiced. Other
receivables are stated at amortised cost including any impairment losses or, in the case of prepayments and
deferred expenses, at historical cost.
Cash and cash equivalents
Cash and cash equivalents comprise own cash on hand and at bank, client money, short-term deposits and
monies held under guarantee.
Group companies routinely collect cash from auction sales, the proceeds of which are ultimately payable to the
client whose assets are being sold. In certain circumstances, group companies enjoy the full economic benefits
of holding this cash (“client money owing”) and accordingly it is reflected on the consolidated balance sheet
with a corresponding liability reported as amounts due to clients within accounts payable. In other cases group
companies do not enjoy such benefits and accordingly both the cash and associated liability are excluded from
the consolidated balance sheet. Short-term deposits are liquid investments that are convertible to known
amounts of cash and which are subject to insignificant risk of change in value. Monies held under guarantee is
cash held in an account to which the group enjoys legal title, but there are restrictions over access.
Principal Accounting Policies
for the period ended 5 January 2006 19
GoIndustry plc Annual report and accounts 2005
Foreign currency translation
Foreign currency transactions within the local accounts of any group company are recorded at the rate ruling at
the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated 
at the rate of exchange ruling at the balance sheet date, and any gains or losses arising are reflected in the
income statement for the period.
The consolidated financial statements are reported in Euros, which is the functional currency of GoIndustry AG.
From 2006, the financial statements will be reported in sterling, the functional currency of GoIndustry plc. The
assets and liabilities of subsidiaries reporting in a currency other than the Euro are translated at the exchange
rate ruling at the balance sheet date. The income statements of such subsidiaries (none of which has the
currency of a hyperinflationary economy) are translated at the weighted average exchange rates for the period.
Exchange rate differences arising on consolidation are reflected in the Consolidated Balance Sheet within foreign
currency translation, a component of total equity. Exchange gains and losses on the net investment in a
subsidiary, including long-term loans to subsidiaries for which settlement is neither planned nor likely to occur in
the foreseeable future, are also classified as equity in the consolidated accounts.
Under IAS 21 “The Effects of Changes in Foreign Exchange Rates” goodwill arising on the acquisition of a
foreign entity is treated as an asset of the acquired company, and therefore it is re-valued using the exchange
rate prevailing at each subsequent balance sheet date.
Segment reporting
The group’s primary reporting format is geographic segments and its secondary format is business segments. A
geographic segment is a component of the group that reflects the underlying legal, political and economic
environment in which the group and its clients operate and is subject to risks and returns that are different
from those of other legal, political and economic environments. A business segment is a component of the
group that is engaged in providing related products and services and is subject to risks and returns that are
different from those of other business segments.
Financial Instruments
Financial assets are subdivided into the following categories in accordance with IAS 39 “Financial Instruments:
Recognition and Measurement”:
■ Loans and receivables granted by the group
■ Financial assets held for commercial purposes
■ Financial instruments available for sale
■ Financial investments held to maturity
Loans and receivables granted by the group are valued at the lower of their amortised cost or at their value at
the balance sheet date. The group does not currently hold financial assets for commercial purposes or financial
instruments available for sale and has no immediate intention of acquiring them. All financial assets are
reviewed for impairment.
Financial liabilities are subdivided into the following categories in accordance with IAS 39:
■ Financial liabilities held for trading
■ Borrowings
■ Accounts payable and other short-term monetary liabilities
The group does not currently hold financial liabilities for trading and has no immediate intention of acquiring
them. Borrowings are initially recognised at the amount advanced net of any transaction costs directly
attributable to the issue of the instrument. Interest bearing liabilities are subsequently measured at amortised
cost using the effective interest rate method. Trade payables and other short-term monetary liabilities are
initially measured at fair value and subsequently measured at amortised cost, using the effect interest method.
The group does not currently enter into any derivative financial instruments and therefore does not apply the
principles of hedge accounting.
Provisions
Provisions are recognised when the group has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the obligation. If the effect of the time value of money is
material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money and, where appropriate, the risks specific to the
liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as an
interest expense. 20
GoIndustry plc Annual report and accounts 2005
Pension schemes
Contributions to defined contribution pension schemes are charged to expenses on an accruals basis.
One group company, Henry Butcher International Limited, operates a defined benefit pension and life assurance
scheme (“the Scheme”) under which it is obliged to make sufficient contributions towards an externally
administered fund in order to satisfy future pension obligations. The Scheme was closed to new members with
effect from 1 January 2002, and with effect from 31 December 2004 accrual of benefits in the Scheme ceased
and active members contributed to a defined contribution scheme. The cost of providing the Scheme is
determined using the projected unit credit method.
The group adopted the amendment to IAS 19 “Employee Benefits” early, which allows the recognition of
defined actuarial gains and losses through the income statement.
The Scheme assets and liabilities are not reflected separately on the consolidated balance sheet. Instead, the
deficit or excess of the fair value of plan assets over the present value of the defined benefit obligation is
recognised as a liability or an asset in the balance sheet.
Employee stock option plans
The group has a number of employee stock option plans for the granting of options to management and
employees. The cost of providing share-based payments to employees is charged to the income statement over
the vesting period of the related share options or share allocations. The cost is based on the fair value of the
options and shares allocated determined using the Black-Scholes option pricing model, which is appropriate
given the vesting and other conditions attached to the options. The value of the charge is adjusted at each
balance sheet date to reflect expected and actual levels of vesting.
In accordance with the transitional arrangements of IFRS 2 “Share-based Payment” the group has elected to
apply IFRS2 to grants, options and other equity instruments granted after 7 November 2002 and not vested at
1 January 2005.
Leases
The group does not operate any assets under finance lease arrangements.
Leases where the lessor retains substantially all of the risks and benefits of ownership of the asset are classified
as operating leases. Operating lease payments are recognised as an expense in the Consolidated Income
Statement on a straight-line basis over the lease term.
Deferred Income tax
Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability differs to its
tax base, except for: differences arising on the initial recognition of goodwill; goodwill for which amortisation is
not tax deductible; the initial recognition of an asset or liability in a transaction which is not a business
combination and at the time of the transaction affects neither accounting nor taxable profit; and investments in
subsidiaries where the group is able to control the timing of the reversal of the difference and it is probable that
the difference will not reverse in the foreseeable future.
Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be
available against which the difference can be utilised.
The amount of the asset or liability is determined using tax rates enacted or substantially enacted at the
balance sheet date that are expected to apply when the assets or liabilities are realised or settled. Notes to the Financial Statements
for the period ended 5 January 2006
21
GoIndustry plc Annual report and accounts 2005
1. Segment information
Primary reporting format – Geographic segments
In thousands of Euro Revenue (Loss)/profit before income tax
Period ended Year ended Period ended Year ended
5 January 2006 31 December 2004 5 January 2006 31 December 2004
UK 21,949 20,430 (2,508) (4,860)
Continental Europe 10,037 9,666 (4,380) (3,401)
North America 9,777 18,480 (4,153) (8,510)
Asia 2,863 1,766 400 (350)
Group 44,626 50,342 (10,641) (17,121)
In thousands of Euro Total assets Total liabilities
Period ended Year ended Period ended Year ended
5 January 2006 31 December 2004 5 January 2006 31 December 2004
UK 12,277 13,937 (14,300) (10,650)
Continental Europe 30,571 27,356 (7,693) (10,065)
North America 11,115 5,993 (7,426) (7,540)
Asia 3,531 1,906 (778) (878)
Group 57,494 49,192 (30,197) (29,133)
Depreciation Amortisation
In thousands of Euro Capital expenditure and Impairment
Period ended Year ended Period ended Year ended
5 January 2006 31 December 2004 5 January 2006 31 December 2004
UK (4,422) (199) (161) (752)
Continental Europe (156) (316) (280) (2,122)
North America (96) (81) (2) (8,261)
Asia (46) (38) (75) (73)
Group (4,720) (634) (518) (11,208)
Secondary reporting format – Business segment
In thousands of Euro Revenue Segment assets
Period ended Year ended Period ended Year ended
5 January 2006 31 December 2004 5 January 2006 31 December 2004
Professional Services 6,030 6,098 7,768 5,554
Commissions 23,030 27,930 29,672 25,693
Principal 15,566 16,314 20,054 17,945
Group 44,626 50,342 57,494 49,192
In thousands of Euro Capital expenditures
Tangible assets Intangible assets
Period ended Year ended Period ended Year ended
5 January 2006 31 December 2004 5 January 2006 31 December 2004
Professional Services (46) (66) (590) (17)
Commissions (217) (269) (2,251) (73)
Principal (95) (164) (1,521) (45)
Group (358) (499) (4,362) (135) Notes to the Financial Statements
for the period ended 5 January 2006
22
GoIndustry plc Annual report and accounts 2005
2. Exceptional items
Exceptional items on operating activities
Period ended Year ended
In thousands of Euro 5 January 2006 31 December 2004
Inventory write-downs 4,044 —0
Bad debts 791 —0
Actuarial losses on defined benefit scheme 668 3,221
Reorganisation costs 279 322
Legal proceedings (see note 17) 107 790
Unsuccessful fund raising —0 194
Goodwill impairment —0 8,009
Total 5,889 12,536
Exceptional items on non-operating activities
Period ended Year ended
In thousands of Euro 5 January 2006 31 December 2004
Premium on conversion of loan notes (see note 22) 2,764 —0
3. Net finance costs
Period ended Year ended
In thousands of Euro 5 January 2006 31 December 2004
Interest payable and other similar charges 1,601 1,327
Interest receivable and other similar income (168) (140)
Premium on convertible loan notes (see note 22) 2,764 —0
Total 4,197 1,187
4. Loss before income tax
Period ended Year ended
In thousands of Euro 5 January 2006 31 December 2004
Loss before income tax and minority interests is stated 
after charging:
Rent under operating leases 1,165 1,128
Depreciation of property plant and equipment 440 484
Goodwill amortisation —0 2,715
Goodwill impairment —0 8,009
Auditors’ remuneration
Audit services current auditor 330 —0
Audit services prior auditor 174 443
Non-audit: prior auditor tax compliance and advisory fees 356 180
Foreign exchange charge 818 1,028
The company has taken advantage of section 230 of the Companies Act 1985 and consequently has not
presented a profit and loss account for the company alone. The company made a loss of €227,000 in the
period. Unless specifically stated the notes to the accounts refer to the results of the group.
5. Personnel expenses
Period ended Year ended
In thousands of Euro 5 January 2006 31 December 2004
Wages, salaries and other short term benefits 17,045 17,424
Pension costs – defined benefit 632 4,186
Pension costs – defined contribution 354 179
Personnel expenses 18,031 21,789
The average number of employees during the period ended 5 January 2006 was 256 (year ended 31 December
2004: 274), consisting of 52 in Sales, 179 in Operations and 25 in Central services (year ended 31 December
2004: 60 in Sales, 184 in Operations and 31 in Central services). 23
GoIndustry plc Annual report and accounts 2005
Key Management Compensation
Period ended Year ended
In thousands of Euro 5 January 2006 31 December 2004
Wages, salaries and other short term benefits 1,039 888
Pension costs – defined benefit —0 16
Pension costs – defined contribution 61 24
Key management compensation 1,100 928
6. Directors’ Remuneration
The remuneration of the directors of GoIndustry AG in the period was as follows:
Period ended Year ended
In thousands of Euro 5 January 2006 31 December 2004
Wages, salaries and other short term benefits 502 271
Pension costs – defined contribution 25 8
Total directors’ emoluments 527 279
The emoluments of the highest paid director were €289,000 (year ended 31 December 2004: €183,000) and
company pension contributions of €18,000 (year ended 31 December 2004: €8,000) were made to a money
purchase scheme on the director’s behalf. The emoluments include bonus payment of €51,000 to M. Alexander
Hoye in respect of loan forgiveness in the year.
The Grasshopper directors’ remuneration in the period ended 5 January 2006 was €21,000.
Nathan Steinberg is a partner in Munslows, a firm of Chartered Certified Accountants. This firm charged fees in
the period of €18,500 (year ended 31 December 2004: nil) excluding VAT in respect of professional services.
7. Income tax expense
Major components of income tax are as follows:
Period ended Year ended
In thousands of Euro 5 January 2006 31 December 2004
Loss before tax (10,641) (17,121)
Tax at the theoretical domestic rate of the Parent company, GoIndustry plc 
of 30% (in Germany 2004: 41%) 3,192 7,020
Effect of higher income tax of other countries 944 (80)
Adjustments in respect of current income tax of previous periods (112) (39)
Unrecognised tax losses (4,102) (1,111)
Capital allowances (21) (445)
Expenditure not allowable for income tax purposes including goodwill amortisation (83) (3,600)
Short term timing differences —0 (1,974)
Franchise and other taxes (4) (88)
Income tax expense (186) (317)
At 5 January 2006, the GoIndustry Group had unutilised tax losses available for offset against future taxable
profits estimated by management to be approximately €45.3 million. A deferred tax asset has not been
recognised in respect of these tax losses as the directors do not consider that future taxable profit streams can
be measured with sufficient reliability to warrant the recognition of such an asset.
There are potential deferred tax assets totalling €18 million (31 December 2004: €17 million) that have not
been recognised on the basis that their future economic benefit is uncertain.
8. Minority interests
Period ended Year ended
In thousands of Euro 5 January 2006 31 December 2004
At beginning of year 176 192
Share of profit/(loss) for the period/year 24 (16)
Foreign exchange (23) —0
At end of period/year 177 176 Notes to the Financial Statements
for the period ended 5 January 2006
24
GoIndustry plc Annual report and accounts 2005
9. Loss per share
The basic and diluted loss per share is based on the loss on Ordinary activities after tax of €10.8 million
(31 December 2004: €17.4 million). The weighted average number of Ordinary shares outstanding during the
period used in the calculation of basic loss per share was 107,694,936 (31 December 2004: 102,559,835).
The effect of the full exercise of share options in the money and 27 million of authorised shares to be issued is
anti-dilutive as the group has made a loss for the current period and prior year.
10. Intangible assets
Purchased Systems Software
In thousands of Euro goodwill Development costs Licenses Total
Cost
At 1 January 2005 31,954 2,329 838 35,121
Additions 4,337 6 19 4,362
Adjustment to goodwill (see below) (143) —0 —0 (143)
Disposals —0 —0 (8) (8)
Exchange differences —0 (7) 3 (4)
At 5 January 2006 36,148 2,328 852 39,328
Accumulated amortisation
At 1 January 2005 2,291 773 3,064
Charge for the period 33 45 78
Disposals —0 (5) (5)
Exchange differences (8) —0 (8)
At 5 January 2006 2,316 813 3,129
Net book value
At 1 January 2005 31,954 38 65 32,057
At 5 January 2006 36,148 12 39 36,199
As a result of the reverse acquisition the IPO warrant liability to Henry Butcher International Limited sellers is
not expected to crystallise and has therefore been removed.
11. Property, plant and equipment
Furniture and Computer
In thousands of Euro Buildings Vehicles fittings equipment Total
Cost
At 1 January 2005 1,022 408 1,028 1,468 3,926
Additions 2 34 237 85 358
Disposals —0 (53) (51) (20) (124)
Exchange differences 3 17 66 4 90
At 5 January 2006 1,027 406 1,280 1,537 4,250
Accumulated depreciation
At 1 January 2005 250 175 745 1,191 2,361
Charge for the period 52 65 148 175 440
Disposals —0 (24) (49) (19) (92)
Exchange differences 2 8 85 5 100
At 5 January 2006 304 224 929 1,352 2,809
Net book value
At 1 January 2005 772 233 283 277 1,565
At 5 January 2006 723 182 351 185 1,441 25
GoIndustry plc Annual report and accounts 2005
12. Acquisition of Grasshopper Investments plc
On 5 January 2006, the GoIndustry AG group completed the reverse acquisition of Grasshopper Investments
plc. Goodwill has been calculated using reverse acquisition principles and represents Grasshopper Investments
plc’s share capital of 30.3 million shares at the placing price of 15p per share plus acquisition expenses less the
fair value of the Grasshopper Investments plc’s net assets acquired.
The following table sets out the book value and fair value of the identifiable assets and liabilities acquired:
In thousands of Euro Book value and fair value
Accounts receivable 1,959
Cash and cash equivalents 2,427
Fair value of net assets acquired 4,386
Share consideration 6,296
Acquisition costs 2,427
Total cost of acquisition 8,723
Goodwill 4,337
The share consideration was satisfied by the issue of 30,330,000 shares in GoIndustry plc, under the provisions
of reverse acquisition accounting, and the value of the shares issues is based upon a negotiated valuation of
GoIndustry AG at the acquisition date.
Acquisition costs include fees of €66,600 paid to Munslows, a firm of Chartered Certified Accountants of which
Nathan Steinberg is a partner.
13. Investment in subsidiaries
In thousands of Euro Company
Cost
At 3 March 2005 —0
Additions 15,328
At 5 January 2006 15,328
The addition represents the company’s acquisition of GoIndustry AG (see note 12), and is calculated at the
nominal value of shares issued to the former GoIndustry AG shareholders, plus acquisition costs and long term
financing. The company has taken relief under Section 131 of the Companies Act 1985 and therefore no
premium arises on the issue of these shares.
The following are the subsidiary undertakings, which are held beneficially by the group and which in the opinion
of the directors principally affect the profit or assets of the group. All subsidiaries are consolidated and are held
by wholly-owned intermediate companies, except for GoIndustry AG, which is held directly by the company. Notes to the Financial Statements
for the period ended 5 January 2006
26
GoIndustry plc Annual report and accounts 2005
Country of Proportions of Proportion of
Company name incorporation ownership voting control Principal activity
AssetTRADE.com Inc. USA 100% 100% Asset sales and services
AT Operations Inc. USA 100% 100% Asset sales and services
GoIndustry AG Germany 100% 100% Asset sales and services
GoIndustry Operations Limited England 100% 100% Asset sales and services
Henry Butcher & Co (Thailand) Ltd Thailand 100% 100% Asset sales and services
Henry Butcher (Far East) Ltd. Hong Kong 100% 100% Asset sales and services
Henry Butcher (Hong Kong) Limited Hong Kong 100% 100% Asset sales and services
Henry Butcher Industrial (M) Sdn. Bhd Malaysia 70% 70% Asset sales and services
Henry Butcher International 
Philippines Inc Philippines 100% 100% Asset sales and services
GoIndustry NV Belgium 100% 100% Holding Company
Herbert Karner Industrie-Auktionen 
GmbH Austria 100% 100% Asset sales and services
Karner & Co GmbH Germany 100% 100% Asset sales and services
Michael Fox International Inc. USA 100% 100% Asset sales and services
Michael Fox International Ltd. Canada 100% 100% Asset sales and services
Henry Butcher International Valuers 
and Auctioneers Pvt. Ltd. India 50% 50% Asset sales and services
Henry Butcher Korea Co. Ltd. South Korea 100% 100% Asset sales and services
Henry Butcher Trading Limited England 100% 100% Asset sales and services
Henry Butcher International Limited England 100% 100% Asset sales and services
Makelaarskantoor Appelboom NV Belgium 76% 76% Asset sales and services
GoIndustry S.A.S. France 100% 100% Dormant
Through GoIndustry AG the company also holds a 60% interest in the ordinary share capital of GoIndustry AS
Endustriyel Techizat Ticaret Anonim Sirketi, which is incorporated in Turkey. As a result of legal action initiated
in 2003 by the minority shareholders in that company, GoIndustry was no longer considered to be in a position
to assert control or significant influence over the subsidiary per the definitions outlined in IAS 27 and IAS 28,
respectively. The results of the Turkish investment are excluded from both the company and the group
accounts. Subsequent to the balance sheet date, as disclosed in note 28, a settlement has been reached with
the minority shareholders which results in them acquiring full ownership of the subsidiary.
14. Accounts receivable
Group Company
As at As at As at
In thousands of Euro 5 January 2006 31 December 2004 5 January 2006
Accounts receivable 1,956 5,245 3,381
Accrued income receivable 4,242 1,417 —0
Auction expenses receivable 744 809 —0
Loans to directors or shareholders 25 79 —0
VAT recoverable 582 422 —0
Prepayments and deferred expenses 484 401 —0
Other receivables 789 406 —0
Accounts receivable 8,822 8,779 3,381
Loans to directors represents the outstanding balance on a loan with an original nominal value of €90,000
granted to M. Alexander Hoye in November 2001 to enable him to repay personal loans assumed during the
incorporation and establishment of GoIndustry AG. The majority of the loan was forgiven during the period
ended 5 January 2006, and charged to bonus payment in the period.
15. Cash and cash equivalents
Group Company
As at As at As at
In thousands of Euro 5 January 2006 31 December 2004 5 January 2006
Own cash on hand and at bank 6,112 1,036 2,427
Client money owing 1,368 1,358 —0
Short term deposits 19 640 —0
Monies held under guarantee 48 146 —0
Cash and cash equivalents 7,547 3,180 2,427
Cash and cash equivalents held by the group where it does not enjoy the risks and rewards of ownership are
excluded from the consolidated balance sheet. At 5 January 2006, these amounts totalled €5.5 million
(31 December 2004: €5.5 million). 27
GoIndustry plc Annual report and accounts 2005
16. Accounts payable
As at As at
In thousands of Euro 5 January 2006 31 December 2004
Trade payables 3,705 3,138
Amounts due to clients 2,169 2,543
VAT payable 731 324
Acquisition related liabilities 1,474 3,726
Accrued director or employee profit share payable 566 525
Accrued salary, other employee payments and other accrued expenses 1,993 3,204
Other payables 1,180 952
Accounts payable 11,818 14,412
During the period ended 5 January 2006, GoIndustry AG raised €3.9 million in cash by issuing Series A and
Series B convertible loan notes. Prior to 5 January 2006, 100% of the loan notes were converted into Ordinary
shares of GoIndustry AG and subsequently into 5p Ordinary shares of GoIndustry plc as disclosed in note 22.
17. Provisions (current)
As at As at
In thousands of Euro 5 January 2006 31 December 2004
Provision for legal claims 977 750
Other 87 87
Provisions (current) 1,064 837
The provision for the legal claim made against GoIndustry AG by its Turkish joint venture partner has increased
in the period by €227,000, representing an increase in the settlement estimate and associated legal costs. This
has been settled after the balance sheet date as disclosed in note 28.
The provision for Other claims is a provision for a tax claim in the French subsidiary GoIndustry S.A.S.
18. Bank loans and overdrafts
As at As at
In thousands of Euro 5 January 2006 31 December 2004
Bank loans and overdrafts 9,089 4,289
Bank loans and overdrafts at 5 January 2006 were principally held by Michael Fox International, Inc. (€5.7
million; 2004: €2.7 million), and Henry Butcher Trading Limited (€3.4 million; 2004: €1.2 million). These loans
are primarily used to fund principal transactions. The Michael Fox International, Inc. loan is secured over the
assets of that company and bears floating interest at 0.5% above US Prime Rate. The Henry Butcher Trading
Limited loans bear floating interest at 2.5% above LIBOR and are secured by a cross guarantee over the assets
of Henry Butcher International Limited.
19. Loans and borrowings (non-current)
As at As at
In thousands of Euro 5 January 2006 31 December 2004
Mortgage secured over property 222 307
5 year loan note to the former Henry Butcher shareholders —0 1,342
Other loans 52 370
Loans and borrowings 274 2,019
The mortgage represents the outstanding balance on the €767,000 mortgage owed by Karner & Co GmbH. The
loan is repayable in monthly instalments of €8,500 including a 6% interest rate and is fully repayable by April
2008. 
20. Provision for pension liabilities
As at As at
In thousands of Euro 5 January 2006 31 December 2004
Provision for defined benefit pension scheme 7,734 7,336
The provision for the defined benefit pension scheme relates to the Henry Butcher International Limited pension
scheme as described more fully in note 25. Notes to the Financial Statements
for the period ended 5 January 2006
28
GoIndustry plc Annual report and accounts 2005
21. Other non-current payables
As at As at
In thousands of Euro 5 January 2006 31 December 2004
Acquisition related liabilities —0 127
Other —0 13
Other non-current payables —0 140
The final payment of €127,000 was made to the Makelaarskantoor Appelboom NV vendors on 21 February
2006.
22. Share capital
On 5 January 2006, the entire issued share capital of GoIndustry AG was acquired by GoIndustry plc (formerly
Grasshopper Investments plc), with each €1 ordinary share in GoIndustry AG being exchanged for 5.2874, 5p
ordinary shares in GoIndustry plc. In accordance with IFRS3 “Business Combinations” the transaction has been
recognised using reverse acquisition accounting.
The following table sets out the movement in share capital:
Group 5p GoIndustry plc issued Group Share Company Share
In thousands of Euro Ordinary shares (number) Nominal value Premium Premium
At 1 January 2005 102,559,835 7,589 2,113 2,113
Henry Butcher International Limited:
deferred consideration 7,391,226 548 —0 —0
Loan note “A” conversion 11,555,402 855 —0 —0
Loan note “B” conversion 14,949,810 1,106 —0 —0
Balance prior to reverse takeover 136,456,273 10,098 2,113 2,113
Shares issued to satisfy liabilities 20,346,761 1,506 1,909 3,011
Shares issued to acquire Grasshopper 30,330,000 2,244 —0 —0
At 5 January 2006 187,133,034 13,848 4,022 5,124
A loan note instrument dated 26 April 2005 constituting €1,360,000 convertible promissory note “A” 2005 which
carried an interest rate of 15 per cent in GoIndustry AG was converted into common shares at a rate of 1.72
common shares in GoIndustry AG for each €1 principal of notes. A second loan note instrument dated 27 June
2005 executed by GoIndustry AG constituting €2,500,000 secured promissory “B” Notes 2007 in GoIndustry AG
which carried an interest rate of 12 per cent. per annum was converted at the rate of 1.25 common shares in
GoIndustry AG for each €1 principal of the note.
Liability at Number of Share Total Premium 
In thousands of euro 5 January 2006 shares in plc value on conversion
Loan Note “A” 1,492 13,553,974 3,008 1,516
Loan Note “B” 2,645 17,535,463 3,893 1,248
Total 4,137 31,089,437 6,901 2,764
Loan Note “A” and Loan Note “B” have been converted for 31,089,437 shares of which 26,505,212 shares have
been issued and further 4,584,225 shares are to be issued.
As disclosed in the Re-admission Document dated 9 December 2005, the share capital of GoIndustry plc
(formerly Grasshopper Investments plc) immediately prior to the reverse was 30,330,000 shares, all of which
had been issued following incorporation of the company and admission to AIM on 7 April 2005. Under the terms
of the acquisition, 156,803,034 5p ordinary shares were issued on or around completion, credited as fully paid
to the vendors of GoIndustry AG and to other parties in satisfaction of certain obligations of GoIndustry AG
owed to these parties. Provided that certain statements related to GoIndustry AG and its subsidiaries contained
in the acquisition agreement do not prove to be incorrect, up to a further 27 million 5p ordinary shares will be
issued and credited as fully paid to the vendors and such other parties on the later of the date of publication of
GoIndustry plc’s accounts for the year ending 31 December 2006 and 31 March 2007.
The shares to be issued are shown in the consolidated balance sheet at a value of €5,847,000. This is a split
between 27 million shares as above and when issued they will be credited as €2.0 million to share capital and
€3.6 million to share premium. Additionally, 3 million Founder share options have vested with value of
€227,000 that will, if exercised, be issued in shares. 29
GoIndustry plc Annual report and accounts 2005
The company has issued 7,448,326 shares to satisfy the obligation to pay a bonus to three senior managers
(“FRR shares”) as detailed in note 24. These are held in trust and are included in the group balance sheet at
their nominal value of €551,000 as Treasury shares.
Authorised issued and fully paid share capital
As at As at
In thousands of Euro 5 January 2006 31 December 2004
Authorised ordinary shares of £0.05 each 330,000,000 (2004: 330,000,000) 24,420 24,420
Issued and fully paid ordinary shares of £0.05 each 187,133,034 
(2004:102,559,835) 13,848 7,589
Equity ordinary shares to be issued of £0.05 each 25,316,939 (2004: 18,962,456) 5,847 4,210
Issued and to be issued 19,695 11,799
23. Commitments and contingencies
Total operating lease commitments remaining at 5 January 2006 were €2.8 million. The table below shows the
breakdown of these obligations. (2004: €3.0 million).
In thousands of Euro Land and Buildings Vehicles Other Total
Within one year 760 269 14 1,043
More than one but less than 5 years 1,364 168 13 1,545
More than 5 years 173 —0 —0 173
Total 2,297 437 27 2,761
24. Share-based payments
As disclosed in the Re-admission Document, on 9 December 2005 the company entered into an agreement to
issue 11,414,233 5p ordinary shares on admission at a value of 15p per share to satisfy an obligation on
GoIndustry AG and its subsidiary, Michael Fox International, Inc., to pay a bonus to three senior managers
(“FRR shares”). 2,282,847 ordinary shares vested immediately resulting in a charge of €508,000 in the period.
The remaining shares will vest evenly through to November 2009, subject to continual employment.
In addition, GoIndustry AG has in issue 3,239,298 options over its €1 Ordinary shares. The company has
agreed to roll over these options into new options over 17,127,625 of the company’s 5p ordinary shares on
equivalent terms and conditions as to exercise price and period as the original options in GoIndustry AG
€1 Ordinary shares, based on the same conversion ratio as was used for the reverse acquisition. No options
have been rolled over as at 5 January 2006. The weighted average exercise price of these options is €2.72 per
share. There has been no movement in the number of these options during the year. There is no charge to the
income statement under IFRS2 “Share-based Payment” in respect of these potential options as they were
issued prior to 7 November 2002.
On 1 April 2005 the company (then known as Grasshopper Investments plc) granted options to its four founder
Directors of 3 million 5p ordinary shares (“Founder options”).
For the purposes of assessing the income statement charge under IFRS2, the options/awards under the
Founder options were calculated using the Black-Scholes option pricing model. 3,000,000 share options granted
were vested immediately resulting in a charge of €227,000 in the period. The fair value per option granted and
the assumptions used in the calculations are as follows:
Company Founder options
Grant date 1 April 2005
Share price at grant date (pence) 10p
Exercise price (pence) 10p
Shares under option/grant 3,000,000
Vesting period (years) Immediate
Expected volatility 42.0%
Option/grant life (years) 7
Expected life (years) 3
Risk free rate 4.5%
Expected dividend yield 0.0%
Fair value per option/share granted (pence) 0.0515p Notes to the Financial Statements
for the period ended 5 January 2006
30
GoIndustry plc Annual report and accounts 2005
The shares in the company were suspended from 28 June 2005 until 5 January 2006 so there is limited market
data to measure expected volatility. The calculation is based on the volatility of the shares for the 12 month
period following initial admission to AIM on 7 April 2005. The expected life is the average period expected to
exercise. The risk free rate of return is 4.5%, which is the Bank of England base rate.
A reconciliation of share option/grant movements over the period ended 5 January 2006 is as follows:
Group and Company Founder options Weighted average price
Outstanding at 3 March 2005 (date of incorporation) —0 —0
Granted 3,000,000 13.5p
Outstanding at 5 January 2006 3,000,000 13.5p
Exercisable at 5 January 2006 3,000,000 13.5p
25. Pensions
GoIndustry operates four pension schemes in the group. There is a defined contribution scheme for the
employees of AssetTRADE and Michael Fox International, Inc. and three pensions schemes in Henry Butcher
International Limited: two defined contribution schemes, the costs of which are disclosed within staff costs and
a defined benefit final salary scheme – the Henry Butcher Pension and Life Assurance Scheme.
The defined benefit scheme is funded, and with effect from 1 January 2005, active members ceased to accrue
benefits on a defined benefit basis and salary linkage was broken to their accrued rights. A new money
purchase section was opened with effect from 1 January 2005 in which existing defined benefit members and
new entrants were invited to join. The company continues to account for the defined benefit contribution
scheme in accordance with IAS 19 “Employee Benefits”, details of which are explained below.
An independent actuarial statement was produced effective at 1 January 2005 using the following assumptions.
Period ended Year ended
(%) Percentages 5 January 2006 31 December 2004
Discount rate 4.8% 5.3%
Expected return on Scheme assets 6.4% 6.9%
Rate of increase in salaries 0.0% 4.9%
Price inflation 2.75% 2.9%
Pension increases:
Pensions accrued before 6 April 1997 0% 0%
Pensions accrued after 6 April 1997 2.75% 2.9%
Based on the actuarial valuation the total market value of the Scheme’s assets at 31 December 2005 was
€11.2 million. This constitutes an increase in the value of assets of €2.3 million in the year 2005. The
corresponding scheme liabilities on an ongoing basis were estimated at €19.0 million. This constitutes an
increase in liabilities of €2.7 million over the year.
Based upon the assumptions in the table above, the actuary has calculated a net liability of €7.7 million for
which the group has provided €7.7 million as shown in note 20.
The reconciliation of net liability from the previous year is shown below:
As at As at
In thousands of Euro 5 January 2006 31 December 2004
Net liability at the beginning of the period/year (7,336) (3,526)
Effect of £/€ exchange rate movement (215) 12
Net expense recognised in the income statement (867) (4,563)
Contributions 684 741
Net liability at the end of the period/year (7,734) (7,336)
The calculation of the pension provision and amount recognised in the balance sheet is shown in the table
below:
Period ended Period ended
In thousands of Euro 5 January 2006 31 December 2004
Present value of funded obligations (19,027) (16,292)
Fair value of Scheme assets 11,293 8,956
Net liability in the balance sheet (7,734) (7,336) 31
GoIndustry plc Annual report and accounts 2005
The amounts recognised in the income statement are:
Period ended Period ended
In thousands of Euro 5 January 2006 31 December 2004
Current service cost (93) (662)
Net actuarial gain (loss) recognised in the year 129 (303)
Loss on curtailments and settlements (668) (3,221)
Included within personnel expenses (632) (4,186)
Interest on obligation (883) (968)
Expected return on scheme assets 648 591
Included within finance costs (235) (377)
Total charge included in the income statement (867) (4,563)
A reconciliation of the present value of funded obligation is as follows:
Period ended Period ended
In thousands of Euro 5 January 2006 31 December 2004
Present value of obligation at start of year (16,292) (17,403)
Effect of £/€ exchange rate movement (476) 56
Interest cost (883) (968)
Current service cost (93) (662)
Employee contributions —0 (148)
Benefits paid 295 316
Actuarial (loss)/gain on obligation (1,578) 936
Curtailments and settlements —0 1,581
Present value of funded obligation at end of period/year (19,027) (16,292)
A reconciliation of the fair value of Scheme assets is as follows:
Period ended Period ended
In thousands of Euro 5 January 2006 31 December 2004
Fair value of Scheme assets at start of year 8,956 8,185
Effect of £/€ exchange rate movement 261 (25)
Expected return on Scheme assets 648 591
Employer contributions 684 741
Employee contributions —0 148
Benefits paid (295) (316)
Actuarial gain/(loss) on Scheme assets 1,039 (368)
Fair value of Scheme assets at end of period/year 11,293 8,956
Actual returns on plan assets were:
Period ended Period ended
In thousands of Euro 5 January 2006 31 December 2004
Expected return on Scheme assets 648 591
Actuarial gain/(loss) on Scheme assets 1,039 (368)
Actual return on plan assets 1,687 223
26. Financial Instruments
Credit risk
The group’s credit risk is primarily attributable to trade receivables. The directors do not believe the group is
exposed to major concentrations of credit risk as it deals with a large number of counterparties throughout
various jurisdictions.
The group applies board-mandated credit limits and employs strict minimum credit worthiness criteria when
selecting counterparties.
Foreign currency risk
The group is subject to foreign currency risk due to its foreign operations and foreign trading. Exchange rate
movements recognised in the Consolidated Income Statement are detailed in note 4. Group policy, which is
reviewed on an on-going basis, is not to hedge foreign currency transactions. Notes to the Financial Statements
for the period ended 5 January 2006
32
Interest rate risk
The group is exposed to two principal sources of interest rate risk: fair value interest rate risk arises where it
has entered into fixed interest arrangements and cash flow interest rate risk arises where it has entered into
variable interest rate arrangements.
The following table sets out the carrying amount by maturity of the group’s financial instruments that are
exposed to interest rate risk:
5 January 2006 31 December 2004
In thousands of Euro <1 year <1 year
Fixed rate
5 year loan note to former Henry Butcher shareholders 5.5% —0 (1,342)
Mortgage for building in Nielder-Olm office of Karner Germany 6% fixed 
until 30 December 2007 (222) (307)
Floating rate
Cash and cash equivalents 7,547 3,180
Short Term loans (9,089) (4,289)
Interest on financial instruments classified as floating rate is re-priced at intervals of less than one year. Interest
on financial instruments classified as fixed rate is fixed until maturity of the instrument. The other financial
instruments of the group that are not included in the above tables are non-interest bearing and are therefore
not subject to interest rate risk.
Fair Values of Financial Instruments
The fair values of the financial assets and liabilities approximate to their book values due to the short term
nature of these instruments and the interest rates applicable to them.
The borrowings are denominated in the following currencies:
In thousands of Euro Euro Sterling US Dollar Total
Current borrowings —0 3,372 5,717 9,089
Non-current borrowings 226 —0 48 274
At 5 January 2006 226 3,372 5,765 9,363
Current borrowings 61 1,249 2,979 4,289
Non-current borrowings 308 —0 1,711 2,019
At 31 December 2004 369 1,249 4,690 6,308
27. Related party transactions
A loan due from M. Alexander Hoye advanced in November 2001 to enable him to repay personal loans
assumed during the incorporation and establishment of GoIndustry AG was partially repaid and a balance of
€25,000 remains outstanding, as disclosed in note 14.
28. Significant post balance sheet events
Financing
On 9 May 2006, the company raised a total of €7.5 million in new funds through the placing of 12 million new
5p Ordinary shares at 17.5p per share, which raised €3.1 million and a further €4.4 million in respect of
redeemable, convertible loan notes. The loan notes mature on 9 May 2009 and bear interest at 8% per annum,
payable quarterly in arrears. They may be redeemed by the company at par at any time after 5 May 2008. They
may also be converted into 5p Ordinary shares at a conversion price of 21p per share.
Legal proceedings
On 11 May 2006 the company and GoIndustry AG reached settlement with the minority shareholders of
GoIndustry AG’s Turkish subsidiary, GoIndustry Endustriyel Techizat Ticaret Anonim Sirketi. Pursuant to the
settlement agreement, the Turkish minority shareholders received a payment of €575,000 in May 2006. In
addition, they will receive five monthly instalments of €40,000 from August to December 2006. The company
also issued them with options in respect of 127,700 shares in the company at a strike price of £1.42.
Acquisition Payment
The final payment of €127,000 was made to the vendors of Makelaarskantoor Appelboom NV on 21 February
2006 (see note 21).
∫
50330 United Kingdom
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Auditors
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