ANNUAL REPORT & ACCOUNTS 2010 Mallett is one of the oldest established antiques
dealers in the United Kingdom specialising in the
finest pieces of furniture and works of art, primarily
from the 18th century and Regency periods
Financial Statements
24 Consolidated Income Statement
24 Consolidated Statement of Comprehensive Income 
25 Consolidated Balance Sheet
26 Company Balance Sheet
27 Statements of Changes in Equity
28 Consolidated Cash Flow Statement
29 Company Cash Flow Statement
30 Notes to the Accounts
48 Five Year Record
Shareholder Information
49 Notice of Annual General Meeting
51 Form of Proxy 
53 Financial Calendar 
53 Company Advisers
Contents
Review
1 Highlights
2 Mallett at a Glance
5 Chairman’s Statement
6 Chief Executive’s Report
Governance
11 Board of Directors
12 Report of the Directors
15 Corporate Governance 
17 Directors’ Remuneration Report
22 Statement of Directors’ Responsibilities
23 Independent Auditors’ Report  1
Annual Report and Accounts 2010
OPERATIONS
� Little improvement in antiques 
trading environment
� Re-alignment of our cost base 
continued successfully
� Hatfields returned to profitability
� Successful launch of the Masterpiece
Fair in London
FINANCIAL
� Turnover of £13.3m similar to 2009
excluding one-off auction in that year
� Operating costs reduced by £0.6m
� Operating loss reduced by 30% to £1.3m
� Inventory level maintained at £12.1m
2010 Highlights 2
Annual Report and Accounts 2010
Mallett at a Glance
One of the world’s pre-eminent antiques houses,
specialising in English and Continental furniture and
objects from the 18th century and Regency periods.
Private collectors as well as many of the world’s great
museums, from the Victoria and Albert Museum in
London to the Metropolitan Museum in New York,
look to Mallett for exemplary pieces that represent 
an object’s design, execution and pedigree.
Contemporary objects and furniture, designed 
in the 21st century but crafted with exquisite materials
and master craftsmanship from the 18th century. 
The designers include Asymptote, Edward Barber 
and Jay Osgerby, Tord Boontje, Matali Crasset and
Wales & Wales. 
British Art from the 17th century to the present day
with an emphasis on less established names of the
18th and 19th centuries. The gallery also promotes
traditional figurative contemporary art, thus displaying
an eclectic mix of paintings that are united through
their British origin and quality.
One of the world’s longest established restorers of
furniture and works of art. With a reputation for skilled
workmanship restoring and conserving furniture and
works of art for Royal, private and museum collections
throughout the world, the business is now based in a
fine 18th century building in Clapham, London, from
where its highly experienced and skilled craftsmen
restore a wide range of items from the decorative arts.
Set up in 2009 to create and organise a new antiques
fair in London for exhibitors to display the best of the
best from a wide spectrum of art and design. From
Bugattis to bronzes, Picasso to pink diamonds, the 
fair is a forum for distinctive design and aesthetic
excellence where every exhibit is of superb quality. 3
Annual Report and Accounts 2010
NEW STOCK
THE ‘CARINA’ DINING TABLE
Designed by Klauser & Carpenter and constructed
from three pieces of interlocking Carrara marble, 
the table blends the fluid aesthetic of maritime
architecture with the sculptural purity of classic
Carrara marble. The alliance between the designers'
eye, Meta's knowledge of furniture and Kienesberger's
experience of marble, gives Carina the strongest yet
the lightest marble structure possible.
English, 2010 4
Annual Report and Accounts 2010
SOLD IN 2010
REGENCY MAHOGANY PATENT DRUM TABLE
The centre of the table is inlaid with ebony anthemia
and reveals a rising satinwood cylindrical secret drawer
section with four drawers on each side with a diamond
of mahogany bordered in satinwood separating the
drawer sections. This particular design is very rare, the
sprung mechanism that holds the central drawers has
few precedents on a table of this size. 
England, circa 1810 Chairman’s Statement
As expected, the trading environment for antique furniture showed little
improvement in 2010. We have, therefore, continued our policy of tight cost
control, pro-active inventory management and cash focus, which has led to 
an encouraging 30% reduction in our operating losses and a small net debt
funding position at the year end.
Our operating loss decreased by £0.6m from the prior
year to £1.3m in 2010 on a small reduction in turnover
to £13.3m. This was the product of further reductions
in our operating costs, continuing the process started
at the beginning of 2009 of re-aligning our cost base
with the evolving marketplace for antique furniture
and objets d’art. The majority of the savings in 2010
related to staff costs. Property costs remain the last
significant cost to be re-aligned and this will happen
when appropriate value for our lease on the Bond
Street showroom is achieved.
Our balance sheet remains strong with net assets 
of £15.0m. We looked to maintain our inventory 
level at a similar level to the prior year following 
two years of significant reductions. Reducing our
capital invested in stock and replacing such stock 
with stock on consignment has been an integral part
of our successful tight cash management policy.
However, greater flexibility in marketing to achieve
greatest profit is available with owned items of stock
and hence we are keen to maintain a strong level of
owned stock which will be one of the key drivers 
to returning the Group to profitability.
We are delighted to have been one of the founding
members that created the Masterpiece Fair in London
in June 2010. The fair was extremely well received by
exhibitors and visitors and the success of the 2010 
fair is shown by the increase in applicants for the 2011
fair which is now expected to have over 30% more
exhibitors. The fair was loss-making in 2010, as 
was expected in the first year of operations, but 
the operating experience gained, together with 
the increase in the size of the fair, is expected to 
turn this around in 2011.
Thomas Woodham-Smith has played a major part 
in setting up the Masterpiece Fair and creating this
exciting new business. At the end of 2010 he resigned
from Mallett and stepped down from the Board in
order to concentrate more fully on the Masterpiece
project. I would like to thank Thomas for his enormous
contribution to the Company over 25 years. I am also
pleased that he will continue as a consultant to Mallett
in the purchase of continental and 20th century
furniture which is his particular sphere of expertise.
Whilst the company is loss-making, the Board do 
not feel it is financially prudent for the company 
to pay a dividend. The Board did not declare an
interim dividend for 2010 and it is not recommending
a final dividend for the year.
Lord Daresbury
Chairman
5
Annual Report and Accounts 2010 6
Annual Report and Accounts 2010
Mallett enjoyed a similar trading experience during
the year. It was a quiet year of trading interspersed
with a few high value sales of exceptional pieces,
including two sales over £1m. This confirms my
comment from last year that purchasers are now
tending to focus on single exceptional, individual
pieces and reinforces our inventory strategy of taking
in exceptional, high value pieces on consignment.
Trading performance
The Group made an operating loss for the year 
to 31 December 2010 of £1.3m (2009: £1.8m). This
represents a 30% improvement from the previous 
year and is primarily the result of further reductions 
in operating costs. 
There was a 5% reduction in Group turnover to
£13.3m (2009: £14.0m). 2009 included £0.7m from 
the proceeds of a sale of 59 items in an auction at
Christies, which was not repeated in 2010. Excluding
this one-off event from 2009 results in flat turnover
year on year. The US and UK continue to be our
largest markets for sales, with 39% (2009: 47%) 
and 33% (2009: 29%) of our sales being into those
countries respectively. The majority of the rest of our
sales are to Continental Europe, but we are seeing
more visitors to our showrooms from the emerging
markets and we hope that this will translate into
increased sales into those regions in the future.
Our marketing strategy continues to focus on
exhibiting at fairs and the distribution of our
catalogues, as well as maintaining appealing and
eclectic displays of all our pieces throughout the 
year in our showrooms in Bond Street, London 
and Madison Avenue, New York.
We believe the major art and antiques fairs around 
the world represent the best and most effective form
of targeted marketing with up to 30,000 visitors
attending a fair over the course of a week. In 2010 we
exhibited at four fairs – the American International
Fine Art Fair in Palm Beach in February; the European
Fine Art Fair in Maastricht in March; the Masterpiece
Fair in London in June; and the International Fine 
Art and Antique Dealers Fair in New York in October.
We made sales at all these fairs, but the exposure to 
a large audience focusing on art and antiques is as
important in order to maintain the visibility of our
brand as exhibiting the finest antique furniture and
objets d’art in the world.
We also sent out two catalogues in the year, in the
Spring and Autumn, displaying over 200 items and 
had four exhibitions of specific artists or specific
themes in our showrooms covering watercolours,
drawings, jewellery and tribal art.
Subsidiaries and associates
James Harvey British Art Limited (“JHBA”) had
another active and profitable year. Although turnover
fell to £1.1m (2009: £1.6m), operating profit was
maintained at a similar level to 2009. JHBA held five
exhibitions of specific artists in its gallery in Chelsea
during the year, and also exhibited at the Masterpiece
Chief Executive’s Report
Purchasers are tending to focus 
on exceptional, individual pieces
reinforcing our inventory strategy
of taking in exceptional, high value
pieces on consignment
The global art market proved to be strong in 2010 with Christie’s recording its highest
annual sales total in its history and Sotheby’s recording significant improvements on
2009. However, the main focus of collectors remains on Impressionist and Modern 
Art and on Contemporary Art. The interest in antique furniture and the decorative 
arts remained low, although one highlight was the highest price ever achieved at
auction for the sale of a piece of English antique furniture – a George III commode,
attributed to Thomas Chippendale, for £3.8m. 7
Annual Report and Accounts 2010
SOLD IN 2010
A MAGNIFICENT PAIR OF LOUIS XV GILT BRONZE
WALL LIGHTS ATTRIBUTED TO JACQUES CAFFIERI 
These fabulous wall-lights are originally from the Casa
Reale Colorno, the summer palace of the Dukes of Parma.
As part of a set of four, they decorated a grand salon at
the centre of which hung a chandelier which corresponds
to one of the two in the Wallace Collection.
France, circa 1752 8
Annual Report and Accounts 2010
NEW STOCK
A PAIR OF LOUIS XV PAINTED COMMODES
A pair of Louis XV bombe vernis martin single door
commodes decorated on a white ground with coral
floral vignettes framed by interlocking scrolls and
retaining their original breche violette tops. They
are in the manner of Gilles Joubert, a Parisian
ébéniste who worked for the Garde-Meuble of Louis
XV for two and a half decades, earning the title of
ébéniste du roi ("royal cabinet-maker") in 1763. 
France, circa 1760 9
Annual Report and Accounts 2010
Chief Executive’s Report continued
The new premises will still showcase Mallett as the finest antique
dealer in London but with a more exclusive approach 
Fair. At the start of the year Mallett sold a 40% stake in
JHBA to James Harvey, with the sale of up to a further
10% dependent on JHBA profits in 2010 and 2011, for
a total consideration of £54,000. This did not include
any picture stock which was all owned by Mallett. The
majority of this stock is now consigned to JHBA to sell
on Mallett’s behalf. During the year JHBA purchased
some pictures from the revenues it had generated 
in the year and it will look to strengthen its balance 
sheet in this way going forward. 
I am pleased to report that Hatfields returned to
profitability in 2010. Turnover increased by 19% to
£1.0m (2009: £0.8m) with, most encouragingly, all 
of the increase attributable to third party sales.
Management has looked to reduce its fixed staff cost
during the year and rely on a core of high quality full
time craftsmen supplemented by freelance craftsmen
as and when business dictates. Now the Hatfields
business has been stabilised, we can look to grow 
the business as opportunities in the market appear.
Meta costs were scaled back significantly in 2009, 
with its products being sold through the Mallett
showrooms and its marketing included within the
Mallett marketing. In 2010 it attended the
Masterpiece Fair where it launched a new product 
– Carina, a very elegant Carrara marble dining table.
Otherwise, costs were kept to a minimum which has
allowed it to make a small profit in 2010 on a low level
of sales.
In June 2010 Masterpiece London Limited, of 
which Mallett is a founding member, put on the first
Masterpiece Fair in London. The fair was extremely
well received by exhibitors and visitors, with over
18,000 visitors to the fair over six days viewing
products from 116 exhibitors ranging from classic cars
to contemporary art to watches to antique furniture.
Mallett has, to date, injected £150,000 into the venture
but it is not expected that Masterpiece London will
require any further funding.
On 23 December 2010 one of the five founding
shareholders, Asprey Holdings Limited, sold its 20%
stake in Masterpiece London Limited to the other four
shareholders equally, for £5,000. Therefore, Mallett
acquired a 5% shareholding from Asprey Holding
Limited for £1,250, increasing its shareholding
Masterpiece London Limited to 25%.
Costs
Following the severe economic downturn at the 
end of 2008, we stated that we would re-look at all 
our costs to establish an appropriate cost base for 
the business for the future. In 2009 we reduced 
our operating costs by £2.0m and in 2010 we have
continued this process by reducing operating 
costs by a further £0.6m. It is encouraging that 
our turnover has remained relatively constant
throughout this overhaul.
The majority of the cost savings in 2010 have been 
to staff costs. Average staff numbers have reduced 
by seven employees, including four at Hatfields, 
and have generated costs savings of £0.5m. 
In addition, our annual assessment of the carrying
value of our non-current assets has concluded that 
the carrying values are reasonable, whilst the same
exercise in 2009 led to an impairment of the value 
of our freehold property in Clapham by £0.2m which
was charged to the Income Statement in 2009. 
Against these savings, the costs of exhibiting at the
four fairs we attended in 2010 increased. As well as 
an increase in shipping costs, we spent more on the
presentation of our stands at all the fairs in order to
increase our visibility and showcase the brand to
maximum effect in the current marketplace.
The remaining significant cost to be re-aligned is our
property cost. We remain committed to reducing our
rental cost by relocating our showroom in London but 10
Annual Report and Accounts 2010
Chief Executive’s Report continued
we will only do this when we can realise appropriate
value for the lease on our current premises. We are
now solely a destination business with almost none 
of the casual footfall that created sales from the 
earlier business model which was dependent on a 
high profile retail presence. The new premises will 
still showcase Mallett as the finest antique dealer in
London but with a more exclusive approach. There 
has been an encouraging increase in interest in large
Bond Street premises in recent months and it is hoped
this will enable us to realise the value of our lease
during the course of the year.
Balance sheet
Shareholders’ equity at 31 December 2010 was
£15.0m (2009: £18.6m). The £3.6m reduction in the
year represents the loss for the year, actuarial losses
from the Group’s defined benefit pension scheme 
and a write-off of the deferred tax asset in respect 
of the actuarial losses, offset by favourable exchange
rate movements. The loss for the year includes a 
tax charge of £1.2m in respect of a write-off of the
deferred tax asset relating to unutilised tax losses 
and the costs of the Group’s defined benefit pension
scheme. The directors have decided to no longer
carry forward a deferred tax asset due to the uncertain
nature of the antique furniture and decorative art
market and the timing of its recovery.
Inventory value has reduced slightly to £12.1m 
at 31 December 2010 (2009: £12.3m). We have
reduced the amount of capital invested in our
inventory significantly since 2007 and successfully
supplemented it with consignment stock in order 
to maintain the level, range and quality of stock 
for which Mallett is renowned. Ownership of the 
item does, however, allow much greater flexibility 
in marketing the piece for greatest profit and we are
aware it is the most important area in which the Group
must invest, as cash dictates, in order to drive Mallett
back to profitability and growth.
Cashflow
Our cash position has worsened during the year to a
net debt of £0.7m at 31 December 2010 (2009: £0.8m
cash surplus). The negative cash movement reflects
the operating loss for the year as we have looked to
maintain the group’s inventory level at a similar level
to the previous year. We have renewed our £2.5m
overdraft limit with Coutts & Co and we remain very
focused on cash management to ensure we have
resources available when good buying opportunities
materialise.
Outlook
We remain cautious about the prospect of growth,
although we do sense a greater level of energy in the
market and more interest being shown by clients than
this time last year. We will continue to focus on our
core markets in the UK and US but we are also very
aware of the growing number of collectors in the
emerging markets and will look at opportunities to
access these markets and increase the awareness of
Mallett in them.
Giles Hutchinson Smith 
Chief Executive 11
Annual Report and Accounts 2010
Lord Daresbury
Non-Executive Chairman, aged 57
Lord Daresbury joined the Company as a Non-Executive
Director in 2007 and was appointed Non-Executive
Chairman of the Company on 1 January 2009. He is
currently Non-Executive Director of Jockey Club
Racecourses, Non-Executive Chairman of Nastar plc
and non-executive Chairman of Stellar Diamonds plc.
Formerly, he was Chief Executive of The Greenalls
Group plc and following the sale of the Pubs and
Restaurant Division to Scottish & Newcastle at the end
of 1999, he became Non-Executive Chairman of the
Company, which was re-named De Vere Group plc. 
He retired from De Vere Group in April 2006.
Giles H. Hutchinson Smith
Chief Executive, aged 48
Giles joined the Company in 1983 before leaving in
1987 to spend time in America and at Aspreys in
London. He re-joined the Company in 1993 and became
a director of the Company in 1999. He was appointed
Chief Executive in January 2009 and is actively involved
in the buying and selling of stock for the Group. He is
currently Vice Chairman of the British Antique Dealers
Association and also serves on numerous vetting
committees of international art and antique fairs. 
Michael A. Smyth-Osbourne
Finance Director and Company Secretary, aged 44
Michael joined the Company, as Finance Director, in
2006. Previously he was Head of Corporate Finance 
at National Grid plc and Lattice Group plc, having
qualified as a chartered accountant with Deloitte &
Touche in 1992.
M. Henry G. Neville
Sales & Marketing Director, aged 51
Henry joined the Company in 1984 and became a
director of the Company in 1999. He is currently
President of Mallett, Inc. with responsibility for the
Group’s New York showroom having moved to New
York in 2006, as well as being responsible for the
Group's sales and marketing. He has been Chairman of
the British Antique Dealers Association and President
of the International Trade Federation CINOA. He has
published a number of articles on the decorative arts,
particularly with reference to food and dining in the
18th and 19th centuries. 
James Heneage
Independent Non-Executive Director and Chairman 
of the Audit and Remuneration Committees, aged 53
James was the founder of the Ottakar’s chain of
bookshops which he created in 1987, floated on 
the London Stock Exchange in 1998 and sold to
Waterstone’s, part of HMV UK, in 2006. Prior to that 
he spent five years in the advertising industry, ending
as an Account Director at Ogilvy and Mather.
Board of Directors The directors of Mallett plc have pleasure in submitting
their annual report together with the audited financial
statements for the year ended 31 December 2010.
Activities and Business and Financial Review
The principal activities of the Group during the year were
dealing in high quality antique furniture and works of art. 
A review of the activities of the Group is given in the
Chairman’s Statement on page 5 and the Chief Executive’s
Report on pages 6 to 10.
Results
The results for the year are set out in full on page 24. 
The operating loss, before interest and tax, amounts to
£1,269,000 (2009 - loss of £1,823,000). After incurring net
interest payable of £18,000 (2009 - net receipt of £82,000)
the loss on ordinary activities before taxation amounts to
£1,418,000 (2009 - loss of £1,774,000). After taxation of
£1,137,000 (2009 - credit £166,000), there remains a loss 
of £2,555,000 (2009 - loss of £1,608,000).
Principal Risk and Uncertainties
The Group’s operating results and liquidity are significantly
influenced by a number of risk factors, many of which are
not within its control. These factors, which are not ranked 
in any particular order, include:
The strength of the UK and US economies and 
financial markets
The antique and fine art market in which the Group operates
is centred on London and New York and is influenced by the
overall strength of the UK and US economies. Historically,
over 70% of the Group’s sales are to UK and US clients.
Banking crisis/financial shock to the global system
Loss of confidence in the banking sector by our clients will
make them much less likely to spend on high value luxury
items such as our goods.
The demand for antique furniture and works of art
The demand for antique furniture and works of art is
influenced not only by the economic conditions but also 
by changing trends in the art market as to which kinds 
of property are most sought after and by the collecting
preferences of individual collectors, all of which can be
unpredictable.
Key personnel
The knowledge and expertise of the Group’s buyers in
acquiring pieces of high quality and good value is critical 
to maintaining the Company brand and to the success of
the Group.
The ability of the Group’s sales team to develop and
maintain relationships with potential buyers of antique
furniture and works of art is critical to the success of the
Group. Accordingly, the Group is highly dependent upon
attracting and retaining appropriately qualified personnel.
Competition
The art market is highly competitive, including competition
with other art dealers and with auctioneers.
Value of artworks
The antique furniture and works of art market is not 
a highly liquid trading market, as a result of which the
realisable value of inventory is relatively subjective and
often fluctuates over time.
Availability and access to good buying opportunities
The availability of high quality items for Mallett to purchase
is very important in being able to maintain Mallett’s
reputation for exhibiting the best.
Foreign Currency exchange rate movements
A significant proportion of the Group’s sales are in US
Dollars and a number are in Euros. Accordingly, fluctuations
in exchange rates can have a significant impact on the
Group’s results.
Retirement benefit pension obligations
Future costs and obligations relating to the Group’s defined
benefit pension scheme are significantly influenced by
changes in interest rates, investment performance in the
debt and equity markets and acturial assumptions, each 
of which is unpredictable.
Financial Risk Management
The main financial risks to the Group relate to the availability
of funds to meet its business needs. Further disclosure on
the Group’s financial risk management can be found in note
3 and note 18 to the accounts.
Key Performance Indicators
The directors consider the following to be key performance
indicators of the Group:
Financial 2010 2009
Turnover (£’000) £13,255 £13,980
Gross margin 1.83% 0.20%
Operating loss (£’000) (£1,269) (£1,823)
Net (debt)/cash (£’000) (£650) £819
Net assets per share £1.09 £1.35
Non financial
Customer satisfaction
We strive to improve our service to new and existing
customers, ensuring high standards of customer satisfaction.
Employee development and turnover
We are committed to attracting and retaining the highest
calibre of employees and developing their professional
careers.
Dividends
There was no interim dividend paid in 2010 (2009 – nil) and
the directors do not recommend a final dividend for 2010
(2009 – nil).
Directors
The names of the directors who served the Company during
the year are shown below. Details of their biographies are
on page 11.
12
Annual Report and Accounts 2010
Report of the Directors
Year ended 31 December 2010 13
Annual Report and Accounts 2010
Lord Daresbury*
J.A. Heneage*
G.H. Hutchinson Smith
M.H.G. Neville
M.A. Smyth-Osbourne
T.E. Woodham-Smith (resigned 31 December 2010)
* non-executive
Directors’ Interests
Details of the directors’ interests in the Company’s share
capital are included in the Directors Remuneration Report
on page 17 and 21.
Apart from service contracts, none of the directors had 
a material beneficial interest in any contract in which 
the Company or any of its subsidiaries was a party during
the year.
There were no changes in the interests of the directors
between 31 December 2010 and 13 April 2011.
Share Capital and Control
The issued share capital of the Company consists of
13,800,060 ordinary shares of 5 pence each. There are no
restrictions on the transfer of securities in the Company
other than those imposed by law and regulations and
pursuant to the Listing Rules of the Financial Services
Authority whereby directors and senior employees of the
Group may require the approval of the Company to deal.
The Company is not aware of any agreements between
holders of securities that may result in restrictions on the
transfer of securities in the Company. 
The full rights and obligations attached to each class of
share, in addition to those conferred on their holders by
law, are set out in the Company’s Articles of Association, a
copy of which can be obtained by writing to the Company
Secretary. The Articles of Association also set out the rules
governing the appointment and replacement of the board
members. Any changes to the Articles of Association must
be approved by special resolution of the Company. Further
details of the share capital of the Company are set out in
note 22 to the accounts.
The Group operates a Share Incentive Plan for the benefit
of all its employees. The shares are held in a trust on behalf
of the employees. As at 31 December 2010 the trust held
469,793 ordinary shares and any voting or other similar
decisions relating to those shares would be taken by the
trustees, who may take account of the recommendations 
of the Company and the employees.
The Group also operates a Long Term Incentive Plan for 
the benefit of its directors. The shares are held in a trust on
behalf of the directors. As at 31 December 2010 the trust
held 111,308 ordinary shares and any voting or other similar
decisions relating to those shares would be taken by the
trustees, who may take account of the recommendations 
of the Company and the employees.
At the Company’s 2010 Annual General Meeting shareholder
authority was given to purchase up to 10% of the Company’s
ordinary shares. The Directors intend to seek shareholder
approval to renew this authority at this year’s Annual
General Meeting. 
There are no significant agreements to which the Company
is a party which take effect, alter or terminate in the event 
of a change of control of the Company. There are also no
agreements providing for compensation for directors or
employees on change of control.
Substantial Shareholdings
As at 13 April 2011, the Company has received notification 
of the following substantial shareholdings amounting in
each case to more than 3 per cent of the issued share
capital of the Company:
5p Ordinary Shares %
The Weinstock Trust Additional Fund 4,130,000 29.93
Peter Gyllenhammar 2,861,000 20.73
Church House Investments 1,150,000 8.33
Mrs. S. Fenwick 534,000 3.87
H.M. Van Heijst 506,600 3.67
L.M. Synge 465,018 3.37
Close Company Status
The company is not a close company within the meaning 
of the Income and Corporation Taxes Act 1988.
Creditor Payment Policy
Whilst the Group does not follow any published code 
or standard on payment practice, it continues to be the
Group’s policy to pay its suppliers in the middle of the
month following receipt of the invoice except in certain
cases where the Group agrees special terms, in which case
it is the Group’s policy to ensure the supplier is aware of
them and to abide by those terms provided the supplier 
has performed in accordance with the relevant terms and
conditions. As at the financial year end the number of 
days purchases outstanding was thirty days, excluding
transactions with special credit terms.
Approval of Directors’ Remuneration Report
In accordance with the Companies Act 2006, directors of
quoted companies are required to prepare a remuneration
report which must be approved by the members of the
company at the meeting at which the company’s annual
accounts are to be laid.
The Directors’ Remuneration Report contains inter alia
details of the directors, a forward looking statement of the
Company’s policy on directors’ remuneration for subsequent
financial years, a performance graph showing the
Company’s total shareholder return and the return on a
hypothetical holding of similar shares to those on which 
a broad equity market index is calculated, details of the
directors’ service contracts and specific disclosures relating
to each director’s remuneration. 14
Annual Report and Accounts 2010
Resolution 2 will be proposed at the 2011 Annual General
Meeting as an ordinary resolution to approve the directors’
remuneration report for the year ended 31 December 2010
as set out on pages 17 to 21 of the these accounts.
Corporate Governance
The Group’s statement on corporate governance can be
found in the Corporate Governance Report on pages 15 to
16 of these financial statements. The Corporate Governance
Report forms part of the directors report and is incorporated
by cross reference.
Auditors and Disclosure of Information to Auditors
Each of the directors confirms that so far as he is aware, there
is no relevant audit information of which the Company’s
auditors are unaware and that he has taken all steps that he
ought to have taken as a director in order to make himself
aware of any relevant audit information and to establish that
the Company’s auditors are aware of that information.
Annual General Meeting
The 2011 Annual General Meeting will be held at 141 New
Bond Street, London W1S 2BS on 24 May 2011 at 4.30 pm.
The notice for the 2011 Annual General Meeting is included
in these accounts on page 49. The business to be transacted
at the Annual General Meeting includes the following:
Resolutions 3, 4 and 5 – Election of Directors 
(ordinary resolutions)
The Articles of Association of the Company state that those
directors who have held office for more than 30 months
since appointment or re-appointment shall retire but be
eligible for re-appointment. Accordingly, Giles Hutchinson
Smith, Lord Daresbury and James Heneage, who were all
re-appointed as directors in June 2008, have again offered
themselves for re-appointment. All directors undergo a
performance evaluation before being proposed for re-
appointment to ensure their performance continues to 
be effective, that where appropriate they maintain their
independence and that they are demonstrating continued
commitment to the role. Please refer to page 11 for further
details of these directors.
Resolution 7 – Authority to allot shares or grant
subscription or conversion rights (ordinary resolution)
Resolution 7 asks shareholders to grant the Directors authority
under section 551 Companies Act 2006 (the “Act”) to allot
shares or grant such subscription or conversion rights as 
are contemplated by sections 551(1)(a) and (b) respectively
of the Act up to a maximum aggregate nominal value of
£230,001, being approximately one-third of the nominal
value of the issued ordinary share capital of the Company 
as at 13 April 2011. The authority will expire five years from
the date of the passing of the resolution (unless previously
revoked or varied by the Company in general meeting). 
The resolution replaces a resolution passed at the Annual
General Meeting of the Company held on 27 May 2010. 
The directors have no present intention of exercising such
general authority.
Resolution 8 – Purchase of own shares by the Company
(special resolution)
Resolution 8 seeks authority from holders of ordinary shares
of 5p in the capital of the Company (“Ordinary Shares”) for
the Company to make market purchases of its own Ordinary
Shares, such authority being limited to the purchase of 10%
of the Ordinary Shares in issue as at 13 April 2011. The
maximum price (exclusive of expenses) payable for the
purchase by the Company of its own Ordinary Shares will 
be limited to 5% above the average price at which deals are
done in the Ordinary Shares taken from the London Stock
Exchange Daily Official List for the five business days before
the purchase is made. The minimum price payable by the
Company for the purchase of its own Ordinary Shares will
be 5p per share (being the amount equal to the nominal
value of an Ordinary Share). The authority to purchase the
Company’s own Ordinary Shares will only be exercised if 
the directors consider that there is likely to be a beneficial
impact on earnings per Ordinary Share and that it is in the
best interests of the Company at the time.
There were no options to subscribe for Ordinary Shares
outstanding as at 13 April 2011 (being the latest practicable
date prior to publication of this document).
Resolution 9 – Calling of general meetings (special resolution)
Resolution 9 to be proposed at the Annual General Meeting
seeks authority from shareholders to hold general meetings
(other than Annual General Meetings) on 14 days’ clear
notice. This is permissible under the Articles of Association
of the Company and the Act. However, pursuant to the
Shareholders’ Rights Regulations, specific shareholder
approval is required annually in order to retain this ability.
The directors believe that there may be circumstances 
in which it will be important for the Company to be able 
to call meetings at such short notice. Accordingly, the
directors believe that it is important for the Company to
retain this flexibility.
The Board believes that the resolutions to be put to the
Annual General Meeting are in the best interests of the
shareholders as a whole and accordingly recommends 
that shareholders vote in favour of the resolutions, as the
directors intend to do in respect, where applicable, of their
beneficial holdings in the Company.
Auditors’ Independence and Objectivity
The Board recognises the importance of ensuring the
independence and objectivity of the Company’s auditors. 
It reviews the nature and extent of the services provided by
them, the level of their fees and the element comprising
non-audit fees. Details of these are disclosed in note 6 to
the accounts. The Board also receives annual confirmation
from the auditors of their independence. 
A resolution will be proposed at the 2011 Annual General
Meeting to re-appoint Menzies LLP as auditors to the
Company for the ensuing year and authorising the directors
to fix their remuneration.
By order of the Board
M.A. Smyth-Osbourne A.C.A.
Secretary
13 April 2011
Report of the Directors continued
Year ended 31 December 2010 15
Annual Report and Accounts 2010
Application of Combined Code Principles
Throughout the year, except where indicated in this report,
the Company complied with the provisions of the Combined
Code on Corporate Governance (2008 edition) issued by
the Financial Reporting Council (the “Combined Code”).
Since the year end, the Company has complied with the 
UK Corporate Governance Code issued by the Financial
Reporting Council to replace the Combined Code to apply
to accounting periods beginning on or after 29 June 2010.
The Company is committed to the principles of corporate
governance contained in the Combined Code and the UK
Corporate Governance Code (as applicable) and aims to
comply with established best practice whenever possible
and when it is in the Company’s best interests. Further
information on the Combined Code and the UK Corporate
Governance Code which currently applies to the Company
can be found at the Financial Reporting Council’s website
at www.frc.org.uk.
The Board
Throughout the year the Board consisted of a non-executive
Chairman, separate Chief Executive, one independent 
non-executive director and three other executive directors.
On 31 December 2010 Thomas Woodham-Smith stepped
down from the Board and left the Company. There is no
current intention to seek a replacement on the Board.
Please refer to page 11 for further details on the remaining
directors, including their roles and for the non-executive
directors, their other commitments.
The Board considers the non-executive director to be
independent of management and free from any business 
or other relationship which could interfere with the exercise
of his independent judgement. He has not previously been
employed by the Company and the Board believes that his
interest in receiving fees as a director does not prejudice 
his independence. He brings an independent judgement 
to bear on issues of strategy, performance, resources, the
appointment of executive directors and other key
appointments, and standards of conduct. He is also the
senior independent non-executive director. The Board
recognises that having only one independent non-executive
director throughout the period under review is not in
compliance with A.3.1 of the Combined Code which requires
the Company to have two independent non-executive
directors. However, the Board believes the current make-up
of the Board is appropriate for Mallett given its size and
operational characteristics.
The Board met eleven times during the year. Lord Daresbury
and Michael Smyth-Osbourne attended all the meetings
and the other directors attended ten out of the eleven
meetings in the year.
The Board has a formal schedule of matters specifically
reserved to it for decisions. This includes the determination
of strategy, the approval of business plans and budgets, 
the approval of acquisitions, disposal and major capital
purchases, and the approval of the annual and interim
reports of the Company, including the interim dividend 
and recommendation of the final dividend to shareholders,
and the appointment of directors.
The directors have the right to obtain external independent
professional advice at the Company's expense. The
Company Secretary is responsible to the Board, inter alia,
for ensuring that Board procedures are followed and for
compliance with applicable rules and regulations including
the Combined Code.
The Board has formal and informal procedures to monitor
its peformance both as individuals at annual appraisals and
as a Board or Committee.
Full details of the directors’ service contracts and
remuneration are given in the Directors’ Remuneration
Report on pages 17 to 21.
Relations with Shareholders
The Board is responsible for ensuring the Company
maintains a satisfactory dialogue with shareholders. 
A number of meetings were held during the year between
members of the Board and the major shareholders of the
Company, including a presentation of the Group's 2009
results in March 2010.
The directors consider significant shareholdings to be
holdings where an individual holds a direct or indirect
shareholding of greater than 20% of the Company’s
ordinary share capital.
To the extent that the Company is aware, the significant
shareholdings identified in the substantial shareholdings
section of the directors report are held by those individuals
for the purpose of investment potential.
The Board welcomes as many shareholders as possible 
to attend the Annual General Meeting and encourages
discussion on issues of concern or areas of uncertainty.
Questions from shareholders are welcomed. A separate
resolution will be proposed at the Annual General Meeting
in respect of each substantially separate issue. There will
also be a separate resolution proposed in respect of the
report and financial statements.
Audit Committee
The Audit Committee is made up of both the non-executive
directors and is chaired by James Heneage. Two Audit
Committee meetings were held during the year which were
attended by all the members of the Audit Committee.
Those meetings were also attended by the Chief Executive,
the Finance Director and the external auditors.
The Audit Committee has written terms of reference, which
deal clearly with its authority and duties. The duties of the
Audit Committee include keeping under review the scope
and results of the audit, its cost effectiveness and the
independence and objectivity of the auditors.
Nominations Committee
No formal Nominations Committee has been set up by 
the Board. All matters regarding the appointment of
directors are made by the Board as a whole. In view of the
size of the Company the Board considers it appropriate to
undertake this function as a whole. This is not in compliance
Corporate Governance
Year ended 31 December 2010 with the Combined Code which requires a nominations
committee, with the majority of members being independent
non-executive directors to lead the process of Board
appointments.
Directors' Conflicts of Interest
In compliance with the conflicts of interest regime under the
Companies Act 2006, the Company's Articles of Association
contain procedures to deal with directors' conflicts of interest
which the Board fully implement. The Board considers that
this have operated effectively throughout the year.
Internal Control and Financial Reporting
The Company complies with the current requirements for
reporting and controls and has had an Audit Committee
throughout the year, which is made up of all the non-
executive directors.
The Board has overall responsibility for the Group’s system
of internal control and has reviewed the effectiveness of the
Group’s system of financial control during the year. The
system is designed to provide reasonable but not absolute
assurance against material misstatement or loss.
The Group operates a comprehensive annual reporting and
financial operating system which involves a review of the
results with projections on a monthly basis. At each of its
meetings the Board reviews the performance of the major
business units across the Group.
The Group has put in place an operational structure with
clearly defined lines of authority and accountability,
particularly in the areas of capital and stock expenditure.
Due to the small size of the Group, there is no separate
internal audit function. A key control procedure is the day to
day supervision of the business by the executive directors,
supported by the senior managers with responsibility for
key operations.
The effectiveness of the Group’s systems of internal control
is monitored by the Audit Committee and is reviewed on 
a regular basis. The review covers all controls, including
financial, operational and compliance controls and risk
management.
Going Concern
In consideration of going concern, the directors have
reviewed the Group’s future cashflow forecasts and revenue
projections which they believe are based on a realistic
assessment of future business performance.
The Group’s forecasts and projections, taking account of
reasonable possible changes in trading performance, show
that the Group should be able to operate within the level 
of its agreed facilities. Therefore, the directors have a
reasonable expectation that the Group has adequate
resources to continue in operational existence for the
foreseeable future. For this reason, they continue to adopt
the going concern basis in preparing the accounts.
Corporate Social Responsibility
The Company adopts a responsible attitude to Social
Environmental and Ethical (SEE) issues. The Board has
concentrated on suitable training and health and safety
measures to ensure compliance with best practice.
16
Annual Report and Accounts 2010
Corporate Governance continued
Year ended 31 December 2010 17
Annual Report and Accounts 2010
Directors’ Remuneration Report
Year ended 31 December 2010
This report has been prepared in accordance with the
Companies Act 2006. The report also meets the relevant
requirements of the Listing Rules of the Financial Services
Authority and describes how the Board has applied the
principles relating to the directors' remuneration in the
Combined Code. As required by the Companies Act 2006, 
a resolution to approve the report will be proposed at the
Annual General Meeting of the Company at which the
financial statements will be approved.
The Companies Act 2006 requires the auditors to report to
the Company's members on certain parts of the Directors'
Remuneration Report and to state whether in their opinion
those parts of the report have been properly prepared in
accordance with the Companies Act 2006. This report has
therefore been divided into separate sections for audited
and unaudited information.
PART 1 – UNAUDITED INFORMATION
The Remuneration Committee
The role of the Remuneration Committee is to establish
Board policy in respect of terms of employment, including
remuneration packages, for each executive director and
certain senior managers, and to monitor their development
programmes. The Remuneration Committee seeks to
encourage the enhancement of the Group’s performance
and to ensure that directors are fairly, and responsibly,
rewarded for their individual contributions. Accordingly, it
can confirm that it has taken into account the provisions of
the Combined Code in framing its remuneration policy. The
Remuneration Committee consults with the Chief Executive
and Finance Director, who may be invited to attend some
meetings, and it has access to professional advice from
both internal and external sources in order to determine
and develop its policies.
During the year the Remuneration Committee comprised 
of James Heneage as Chairman and Lord Daresbury, being
both the non-executive directors, who are not paid for their
services relative to the amount of work undertaken and 
do not receive any share options, bonuses or pension
entitlements. It met three times in the year and both
members attended the meetings.
Directors’ Remuneration Policy
The Company’s current and ongoing policy on remuneration
is to ensure that the remuneration packages for executive
directors are competitive and designed to attract, retain and
motivate individuals of the highest calibre, whilst at the same
time having regard to the pay and employment conditions
of employees throughout the Group.
The Remuneration Committee's policy is that remuneration
packages should be competitive but not extravagant, and
should be broadly in line with the average packages in the
market in which the Company operates. In addition, there
should be a clear link between performance and
remuneration.
Reward Package
The remuneration policy is applied in respect of each
component part of the total remuneration package as follows:
Basic Salary
Basic salaries, including benefits, are set at levels consistent
with individual performance, and the market rate applicable
to jobs of similar complexity and responsibility. To measure
this, the Remuneration Committee reviews the basic salaries
of the executive directors annually.
Benefits
The term “benefits” includes the payment of a car allowance,
private health insurance and other non-cash taxable benefits.
Bonuses
All executive directors are eligible to receive performance
bonuses based on the profitability of the Group.
Performance bonuses are at the sole discretion of the
Remuneration Committee and may be paid partly in shares
and partly in cash.
Pensions
The executive directors, except M. A. Smyth-Osbourne, are
members of the Group's defined benefits pension scheme,
which will provide them, at normal retirement age (of 65
years old), with a pension of up to two thirds of their salary,
subject to length of service, HM Revenue and Customs
limits and other statutory rules. Spouses become entitled 
to 50% of the director’s pension entitlement following the
death of the director. This scheme is closed to new entrants
and closed to future accrual.
Those executive directors now contribute into the Mallett
Group Personal Pension Plan, a defined contribution
scheme open to all employees. The Group contributes 
up to 10% of salary into the scheme dependent on the 
level of contribution by the employee.
The company contributes to a separate defined contribution
scheme for M. A. Smyth-Osbourne.
Share Incentive Plan
The Group operates a share incentive plan to benefit all
employees. Under this plan each director has been awarded
Mallett plc ordinary shares ("Shares") with a value of £3,000
in 2010. These Shares are held in trust and the directors only
become entitled to them if they remain in employment for
at least three years from the date of the award.
The plan also entitles employees, including directors, to
acquire at their own expense up to £1,500 worth of Shares
(Partnership Shares) in any one year to be held in trust
under a partnership agreement. The Company has agreed
to provide two matching Shares for every Partnership Share
purchased on behalf of the employee (Matching Shares).
Any dividends received by the trustees on behalf of
employee shares held under the Share Incentive Plan 
are reinvested as Dividend Shares.
Details of the Directors’ interests held under the Share
Incentive Plan are shown on page 20. 18
Annual Report and Accounts 2010
Directors’ Remuneration Report continued
Year ended 31 December 2010
The entitlement of the directors under the Share Incentive
Plan is not subject to any performance conditions (though
they are subject to service conditions). This is because the
Share Incentive Plan is a plan for all employees of the
Company and no employees’ entitlement under it is subject
to performance conditions. Additionally, the aim of the plan
is to encourage employee shareholding in the Company.
Long Term Incentive Plan ("LTIP")
The LTIP provides for the Remuneration Committee to grant
conditional awards over Shares to executive directors and
other employees of the Group, selected at the discretion of
the Remuneration Committee.
An individual may not be granted awards in any financial
year over Shares having a market value at the award date in
excess of 100 per cent of the individual's annual base salary.
On the grant of an award the Remuneration Committee
shall impose performance conditions and any further
conditions on vesting which it determines to be
appropriate.
Awards will normally vest at the end of a performance period
of three years, as soon as the Remuneration Committee has
determined the extent to which the applicable performance
conditions have been met. The Remuneration Committee
may review the performance conditions for each grant 
of awards and may vary the conditions of such awards,
provided they remain challenging and are aligned with 
the interests of shareholders.
The Remuneration Committee believes that earnings per
share adjusted to exclude exceptional items ("EPS") is the
most appropriate performance measure on which to set the
conditions for vesting. One award existed during the year,
the 2009 Award, and the performance conditions for this are
as follows:
2009 Award
Proportion of 
award vesting EPS for the year ended 31 December 2011
0% Less than 3.0 pence
25% 3.0 pence
25%-100% pro-rata Greater than 3 .0 pence but less than
10.0 pence
100% 10.0 pence or more
It is currently intended that market purchased Shares are
used to fulfil the 2009 Award, although there is flexibility to
issue new Shares, subject to institutional guidelines.
Fees for Non–Executive Directors
The Board as a whole determines the remuneration of the
non–executive directors.
Service Agreements
The Remuneration Committee reviews the position in
respect of the length of notice of termination under
directors’ service agreements and it is current policy for the
Company to appoint executive directors subject to a service
agreement requiring not more than 12 months’ notice to be
given by either party. The Remuneration Committee
considers that the period of notice of termination under
directors’ service agreements is appropriate in order to
retain and recruit directors of a suitable calibre. These
appointments are subject to election and re-election at 
the relevant annual general meeting according to the
Company's Articles of Association.
G. H. Hutchinson Smith, M. H. G. Neville and T. E.
Woodham-Smith entered into director's service contracts
on 31 August 1999 and each has a notice period of 12
months. M. A. Smyth-Osbourne entered into a director's
service agreement on 6 November 2006 and it has a notice
period of 6 months. T E Woodham-Smith resigned from 
the Company and left the Board with effect from 31
December 2010.
The executive directors have no contractual provisions 
for compensation upon early termination (with notice) of 
the contract. There is an entitlement to receive salary and
benefits during the period of notice, which may be paid 
‘in lieu’ of all or part of any period of notice. There are no
entitlements to payments of any sort in the event that the
Company summarily terminates an executive director’s
employment.
Independent non-executive directors do not have service
agreements and, in accordance with the Company's Articles
of Association, their appointment may be terminated at any
time without compensation.
Performance Graph
As required by legislation regarding the Directors’
Remuneration Report, this graph illustrates the performance
of the Company measured by total shareholder return
(share price growth plus dividend paid) against a “broad
equity market index” over the past 5 years. The Company
has been a constituent of the FTSE Fledgling index
throughout this period, therefore this is considered to be
the most appropriate benchmark.
Notes
1) The graph shows total shareholder return of a nominal holding of
£100 of Mallett PLC shares measured against the total shareholder
return of an initial nominal holding £100 in the FTSE Fledgling
index over a 5 year period.
2) Dividends have been reinvested.
0 
20 
40 
60 
80 
100 
120 
140 
160 
180 
200 
Jan ‘05 Jan ‘06 Jan ‘07 Jan ‘08 Jan ‘09 Jan ‘10 Jan ‘11 
Mallett 
Mallett TR 
FTSE Fledgling  
FTSE Fledgling TR  19
Annual Report and Accounts 2010
PART 2 – AUDITED INFORMATION
Directors’ Emoluments
The emoluments of the directors were as follows:
2010 2009
£’000 £’000
Salaries and benefits 581 764 
Compensation for loss of office 56 234 
Payments made to non-executive directors 85 79 
722 1,077 
Company pension contributions and payments 62 62 
784 1,139 
2010 2010 2010 2010 2009 2010 2009
Basic salary Performance Pension Pension
and fees related bonus Benefits Total Total contributions contributions
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Executive Directors
G.H. Hutchinson Smith 130 26 21 177 182 13 13 
M.H.G. Neville 136 23 1 160 250 10 10 
M.A. Smyth-Osbourne 123 25 10 158 162 29 28 
T.E. Woodham-Smith 104 21 18 143 145 10 10 
Non–Executive Directors
Lord Daresbury 40 -  -  40 40 - -  
J. Heneage 30 -  -  30 30 -  -  
T.E. Woodham-Smith received £56,000 as compensation for loss of office on leaving the company on 31 December 2010.
£15,000 (2009 - £9,167) was paid to Daresbury Properties Limited, a company controlled by Lord Daresbury, for office expenses 
incurred in his role as non-executive director of the Company.
Directors’ Pensions
G.H. Hutchinson Smith, M.H.G. Neville and T.E. Woodham Smith are deferred members of the Group's defined benefits 
pension scheme and the table below shows their accrued benefit at the year end.
Current age Director Accumulated total annual Transfer Value as at Increase
contributions benefit on leaving service 31 December in Transfer 
during year Increase in year At end of year 2010 2009 Value
£’000 £’000 £’000 £’000 £’000 £’000
G.H. Hutchinson Smith 48 -  -  27 294 275 19 
M.H.G. Neville 51 -  -  40 472 442 30 
T.E. Woodham-Smith 49 -  -  35 383 358 25 
During the year G.H. Hutchinson Smith and T.E. Woodham-Smith contributed into the Group's defined contribution scheme 
and the Company contributed £23,396 (2009 - £24,511) to that scheme in respect of those directors.
During the year M.A. Smyth-Osbourne received a pension entitlement of £29,744 (2009 - £27,760) which the Company paid 
into a separate defined contribution scheme and M.H.G. Neville received a pension entitlement of £10,119 (2009 - £10,192). 20
Annual Report and Accounts 2010
Directors’ Remuneration Report continued
Year ended 31 December 2010
Directors’ Interests
At 31 December 2010 the directors of the Company and persons connected to them had the following interests in the
Company’s share capital:
31 December 2010 31 December 2009
5p ordinary shares 5p ordinary shares
Non-beneficial Beneficial Non-beneficial Beneficial
Lord Daresbury -- - -  
James Heneage - 10,000 - 10,000 
G.H. Hutchinson Smith - 23,212 - 7,546 
M.H.G. Neville - 32,003 - 17,546 
M.A. Smyth-Osbourne - 15,375 - 4,200 
T.E. Woodham-Smith - 12,623 - 8,766 
Directors’ Interests in the Share Incentive Plan
The table below gives details of the directors’ holdings of shares awarded under the Share Incentive Plan.
G.H. Hutchinson Smith M.H.G. Neville M.A.Smyth-Osbourne T.E. Woodham-Smith
Total interest as at 01.01.10 Number of 32,018 15,782 19,080 32,018
ordinary shares
Number of shares acquired/(awarded) during the year
Free Shares granted 4,444 4,444 4,444 4,444 
exercised (1,195) (1,195) - (1,195) 
Partnership Shares granted 2,132 -  2,132 2,132 
exercised (599) (599) - (599) 
Matching Shares granted 4,263 -  4,263 4,263 
exercised (1,197) (1,197) - (1,197) 
Dividend Shares granted -  -  -  -  
exercised (639) (563) - (639) 
Total interest as at 31.12.10 Number of 39,227 16,672 29,919 39,227 
ordinary shares
End of the period of latest 
qualifying conditions 01/05/2014 01/05/2014 01/05/2014 01/05/2014 21
Annual Report and Accounts 2010
Directors’ Interests in the Long Term Incentive Plan
The table below gives details of the directors’ holdings of shares awarded under the Long Term Incentive Plan.
Conditional Awards Awards Awards Market Conditional
Date of awards as at lapsed vested granted price at awards as at Release
award 31 Dec 2009 during year during year during year award 31 Dec 2010 date
G.H. Hutchinson Smith Sep-07 49,989 (49,989) -  -  2.000 -  Sep-10
Feb-09 105,691 -  -  -  0.615 105,691 Mar-12
155,680 (49,989) -  -  105,691 
M.H.G. Neville Sep-07 49,716 (49,716) -  -  2.000 -  Sep-10
Feb-09 82,859 -  -  -  0.615 82,859 Mar-12
132,575 (49,716) -  -  82,859 
M.A. Smyth-Osbourne Sep-07 58,875 (58,875) -  -  2.000 -  Sep-10
Feb-09 98,125 -  -  -  0.615 98,125 Mar-12
157,000 (58,875) -  -  98,125 
T.E. Woodham-Smith Sep-07 49,716 (49,716) -  -  2.000 -  Sep-10
Feb-09 82,859 -  -  -  0.615 82,859 Mar-12
132,575 (49,716) -  -  82,859 
Approved by the board on 13 April 2011 and signed on its behalf:
M.A. Smyth-Osbourne A.C.A. Secretary 22
Annual Report and Accounts 2010
Statement of Directors’ Responsibilities
Year ended 31 December 2010
The directors are responsible for preparing the annual
report, the Directors’ Remuneration Report and the
Financial Statements in accordance with applicable law 
and regulations.
Company law requires the directors to prepare financial
statements for each financial year. Under that law the
directors have elected to prepare the Group Financial
Statements in accordance with International Financial
Reporting Standards (IFRSs) as adopted by the European
Union. Under company law the directors must not approve
the Financial Statements unless they are satisfied that they
give a true and fair view of the state of affairs of the Group
and the Company and of the profit or loss of the Group for
that period. In preparing these Financial Statements, the
directors are required to:
� select suitable accounting policies and then apply 
them consistently;
� make judgements and accounting estimates that 
are reasonable and prudent;
� state whether IFRSs as adopted by the European Union
have been followed, subject to any material departures
disclosed and explained in the Group and parent
company Financial Statements respectively; and
� prepare the Financial Statements on the going concern
basis unless it is inappropriate to presume that the
Company will continue in business.
The directors are responsible for keeping adequate
accounting records that are sufficient to show and explain
the Company’s transactions and disclose with reasonable
accuracy at any time the financial position of the Company
and the Group and enable them to ensure that the Financial
Statements and the Directors’ Remuneration Report comply
with the Companies Act 2006 and, as regards the Group
Financial Statements, Article 4 of the IAS Regulation. 
They are also responsible for safeguarding the assets 
of the Company and the Group and hence for taking
reasonable steps for the prevention and detection of 
fraud and other irregularities.
The directors are responsible for the maintenance and
integrity of the Company’s website. Legislation in the
United Kingdom governing the preparation and
dissemination of financial statements may differ from
legislation in other jurisdictions.
Directors’ Responsibility Statement pursuant to
Disclosure and Transparency Rule 4.1.12
Each of the directors whose names and functions are
detailed on page 11 confirm that, to the best of their
knowledge:
� the Group Financial Statements, which have been
prepared in accordance with IFRSs as adopted by the
EU, give a true and fair view of the assets, liabilities,
financial position and profit of the Group; and
� the Directors’ Report contained in this report includes 
a fair review of the development and performance of 
the business and the position of the Company and the
Group, together with a description of the principal risks
and uncertainties that it faces. We have audited the financial statements of Mallett plc 
for the year ended 31 December 2010 which comprise the
Consolidated and Parent Company Balance Sheet, the
Consolidated Income Statement, the Consolidated and
Parent Company Cash Flow Statements, the Consolidated
and Parent Company Statements of Changes in Equity and
the related notes. The financial reporting framework that
has been applied in their preparation is applicable law and
International Financial Reporting Standards (IFRSs) as
adopted by the European Union and, as regards the parent
company financial statements, as applied in accordance
with the provisions of the Companies Act 2006.
This report is made solely to the company's members, 
as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken
so that we might state to the company's members those
matters we are required to state to them in an auditor's
report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility
to anyone other than the company and the company's
members as a body, for our audit work, for this report, or 
for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the Directors’ Responsibilities
Statement set out on page 22, the directors are responsible
for the preparation of the financial statements and for 
being satisfied that they give a true and fair view. Our
responsibility is to audit and express an opinion on the
financial statements in accordance with applicable law and
International Standards on Auditing (UK and Ireland). Those
standards require us to comply with the Auditing Practices
Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts
and disclosures in the financial statements sufficient to give
reasonable assurance that the financial statements are free
from material misstatement, whether caused by fraud or
error. This includes an assessment of: whether the
accounting policies are appropriate to the group’s and 
the parent company’s circumstances and have been
consistently applied and adequately disclosed; the
reasonableness of significant accounting estimates made 
by the directors; and the overall presentation of the
financial statements.
Opinion on financial statements
In our opinion:
� the financial statements give a true and fair view of the
state of the group’s and of the parent company’s affairs
as at 31 December 2010 and of the group’s loss for the
year then ended;
� the group financial statements have been properly
prepared in accordance with IFRSs as adopted by the
European Union;
� the parent company financial statements have been
properly prepared in accordance with IFRSs as adopted
by the European Union and as applied in accordance
with the provisions of the Companies Act 2006; and 
� the financial statements have been prepared in
accordance with the requirements of the Companies 
Act 2006 and, as regards the group financial statements,
Article 4 of the IAS Regulation.
Opinion on other matters prescribed by the Companies
Act 2006
In our opinion:
� the part of the Directors’ Remuneration Report to be
audited has been properly prepared in accordance with
the Companies Act 2006; and
� the information given in the Directors’ Report for the
financial year for which the financial statements are
prepared is consistent with the financial statements. 
Matters on which we are required to report by exception
We have nothing to report in respect of the following:
Under the Companies Act 2006 we are required to report 
to you if, in our opinion:
� adequate accounting records have not been kept by the
parent company, or returns adequate for our audit have
not been received from branches not visited by us; or
� the parent company financial statements and the part of
the Directors’ Remuneration Report to be audited are
not in agreement with the accounting records and
returns; or
� certain disclosures of directors’ remuneration specified
by law are not made; or 
� we have not received all the information and
explanations we require for our audit.
Under the Listing Rules we are required to review: 
� the directors’ statement, set out on page 16, in relation
to going concern; 
� the part of the Corporate Governance Statement
relating to the company’s compliance with the nine
provisions of the June 2008 Combined Code specified
for our review; and
� certain elements of the report to shareholders by the
Board on directors’ remuneration.
Andrew Cook FCA (Senior Statutory Auditor)
For and on behalf of 
MENZIES LLP
Chartered Accountants and Statutory Auditors
Kingston upon Thames
13 April 2011
23
Annual Report and Accounts 2010
Independent Auditor’s Report to the Members of Mallett plc
Year ended 31 December 2010 24
Annual Report and Accounts 2010
Consolidated Income Statement 
Year ended 31 December 2010
2010 2009
Notes £’000 £’000
Revenue 5 13,255 13,980 
Cost of sales (13,009) (13,952) 
Gross profit 246 28 
Other operating income 21 40 
Distribution costs (215) (214) 
Administrative expenses (1,321) (1,677) 
Operating loss 6 (1,269) (1,823) 
Share of operating loss in associate 15 (131) (33) 
Investment income 8 3 126 
Finance costs 8 (21) (44) 
Loss before income tax (1,418) (1,774) 
Income tax 9 (1,137) 166 
Loss for the year (2,555) (1,608) 
Loss attributable to:
Owners of the parent company (2,502) (1,649) 
Minority interests (53) 41 
(2,555) (1,608) 
Basic and diluted earnings per share 11 (19.08)p (11.92)p
All of the activities of the Group are classed as continuing.
Consolidated Statement of Comprehensive Income 
Year ended 31 December 2010
2010 2009
£’000 £’000
Loss for the year (2,555) (1,608) 
Other comprehensive income:
Exchange differences on translation of foreign operations 147 (398) 
Actuarial loss on the defined benefit pension scheme (329) (698) 
Movement of deferred tax on actuarial loss (895) 195 
Total other comprehensive income for the year, net of tax (1,077) (901) 
Total comprehensive income for the year (3,632) (2,509) 
Total comprehensive income attributable to:
Owners of the parent company (3,579) (2,550) 
Minority interests (53) 41 
(3,632) (2,509)  2010 2009
Notes £’000 £’000
Non-current assets
Property, plant and equipment 13 4,235 4,412 
Investment in associate 15 - -  
Deferred tax 20 - 2,137 
4,235 6,549 
Current assets
Inventories 14 12,081 12,342 
Trade and other receivables 16 4,510 3,182 
Cash and cash equivalents 1,337 1,950 
17,928 17,474 
Total assets 22,163 24,023 
Equity
Share capital 22 690 690 
Capital redemption reserve 5,168 5,168 
Own shares (492) (476) 
Retained profits 9,699 13,172 
Minority interests (46) 34 
Total equity 15,019 18,588 
Current liabilities
Trade and other payables 3,476 2,746 
Bank overdrafts and loans 1,987 1,131 
17 5,463 3,877 
Non current liabilities
Retirement benefit pension obligations 19 1,681 1,558 
Total liabilities 7,144 5,435 
Total equity and liabilities 22,163 24,023 
The financial statements were approved by the board of directors and authorised for issue on 13 April 2011.
They were signed on its behalf by:
G.H. Hutchinson Smith Director M.A. Smyth-Osbourne Director
25
Annual Report and Accounts 2010
Consolidated Balance Sheet
At 31 December 2010
Company Number 1838233 2010 2009
Notes £’000 £’000
Non-current assets
Investments 15 8,482 8,482 
Deferred tax 20 - 220 
8,482 8,702 
Current assets
Trade and other receivables 16 14,772 14,953 
Cash and cash equivalents 10 8 
14,782 14,961 
Total assets 23,264 23,663 
Equity
Share capital 22 690 690 
Special capital reserve 1,761 1,761 
Capital redemption reserve 5,168 5,168 
Own shares (100) (100)  
Retained profits 15,703 16,090 
Total equity 23,222 23,609 
Current liabilities
Trade and other payables 17 42 54 
23,264 23,663 
The financial statements were approved by the board of directors and authorised for issue on 13 April 2011.
They were signed on its behalf by:
G.H. Hutchinson Smith Director M.A. Smyth-Osbourne Director
26
Annual Report and Accounts 2010
Company Balance Sheet
At 31 December 2010
Company Number 1838233 Capital
Share redemption Own Retained Minority Total
capital reserve shares profits interests equity 
Group £’000 £’000 £’000 £’000 £’000 £’000
At 1 January 2009 3,243 2,615 (442) 15,795 (7) 21,204 
Retained loss for the year (1,608) (1,608) 
Minority interest (41) 41 -  
Dividends paid in year (2) (2) 
Actuarial losses (698) (698) 
Deferred tax movement on actuarial loss 195 195 
Cancellation of B shares (2,553) 2,553 -  
Net movement in own shares (34) (71) (105) 
Net exchange loss (398) (398) 
At 31 December 2009 690 5,168 (476) 13,172 34 18,588 
Retained loss for the year (2,555) (2,555) 
Minority interest 53 (53) -  
Actuarial losses (329) (329) 
Deferred tax movement on actuarial loss (895) (895) 
Disposal of interest in subsidiary 81 (27) 54 
Net movement in own shares (16) 25 9 
Net exchange gain 147 147 
At 31 December 2010 690 5,168 (492) 9,699 (46) 15,019 
Special Capital
Share capital redemption Own Retained Total
capital reserve reserve Shares profits equity 
Company £’000 £’000 £’000 £’000 £’000 £’000
At 1 January 2009 3,243 1,761 2,615 -  16,165 23,784 
Retained loss for the year (86) (86) 
Dividends paid in year (2) (2) 
Net movement in own shares (100) 13 (87) 
Cancellation of B shares (2,553) 2,553 -  
At 31 December 2009 690 1,761 5,168 (100) 16,090 23,609 
Retained loss for the year (403) (403) 
Dividends paid in year -  -  
Net movement in own shares - 16 16 
At 31 December 2010 690 1,761 5,168 (100) 15,703 23,222 
The share premium, capital redemption reserve and special capital reserve are not available for distribution.
27
Annual Report and Accounts 2010
Statements of Changes in Equity
at 31 December 2010 2010 2009
Notes £’000 £’000
Operating loss (1,269) (1,823) 
Adjustments for:
Depreciation 288 282 
Freehold property impairment - 200 
Share-based payments (89) 73 
Defined benefit pension adjustment (206) (594) 
Net exchange adjustments (79) 235 
Movements in working capital:
Decrease in inventories 261 3,743 
(Increase)/decrease in receivables (1,329) 547 
Increase in payables 768 435 
Cash (used in)/generated by operations (1,655) 3,098 
Tax received 113 505 
Net Cash (used in)/from Operating Activities (1,542) 3,603 
Investing Activities
Interest received 3 126 
Interest paid (21) (44) 
Purchase of shares in associate (1) (5) 
Purchase of property, plant and equipment (31) (4)
Proceeds from sale of investments 54 - 
Net Cash from Investing Activities 4 73 
Financing Activities
Purchases of own shares (78) (193) 
B share scheme payments - (2) 
Net Cash used in Financing Activities (78) (195) 
Net (Decrease)/Increase in Cash and Cash Equivalents (1,616) 3,481 
Cash and Cash Equivalents at beginning of year 819 (2,264) 
Effect of foreign exchange rate changes 147 (398) 
Cash and Cash Equivalents at end of year 24 (650) 819 
28
Annual Report and Accounts 2010
Consolidated Cash Flow Statement
Year ended 31 December 2010 2010 2009
Notes £’000 £’000
Operating loss (184) (202) 
Adjustments for:
Share-based payments -  13 
Movements in working capital:
Decrease in receivables 181 321 
Increase/(decrease) in payables 5 (24) 
Net Cash from Operating Activities 2 108 
Financing Activities
Purchases of own shares -  (100) 
Dividends paid -  (2) 
Net Cash used in Financing Activities -  (102) 
Net Increase in Cash and Cash Equivalents 2 6 
Cash and Cash Equivalents at beginning of year 8 2 
Cash and Cash Equivalents at end of year 24 10 8 
29
Annual Report and Accounts 2010
Company Cash Flow Statement
Year ended 31 December 2010 30
Annual Report and Accounts 2010
1  General Information
Mallett plc ("the Company") is a public limited company
incorporated in the United Kingdom. The address of it's
registered office is 141 New Bond Street, London W1S 2BS.
The principal activities of the Company and its subsidiaries
(together the “Group”) are described in Note 5.
2  Significant Accounting Policies
a)  Basis of accounting and consolidation
The financial statements have been prepared in accordance
with International Financial Reporting Standards (IFRS) and
International Financial Reporting Interpretations Committee
(IFRIC) interpretations endorsed by the European Union
(EU) and with those parts of the Companies Act 2006
applicable to companies reporting under IFRSs.
The Group accounts, which include the accounts of the
Company and its subsidiaries, are presented on the basis of
the historical cost convention. All companies' accounts are
made up to 31 December 2010.
The Group accounts are prepared on a going concern basis
which the directors believe to be appropriate. The Group's
forecasts and projections, taking account of reasonably
possible changes in trading performance, show that the
Group has sufficient financial resources. As a consequence
the directors have a reasonable expectation that the
Company and Group are well placed to manage their
business risks and to continue in operational existence for
the foreseeable future, despite the current uncertain global
economic outlook. Accordingly, the directors continue to
adopt the going concern basis in preparing the consolidated
financial statements. 
b) New standards and interpretations not yet adopted
The following standards, amendments to standards and
interpretations have been issued by the IASB and are not
effective for 2010 and therefore have not been applied in
preparing these accounts:
Amendment to IFRS 1 Additional Exemptions for First-time
Adopters resulting from May 2010 Annual Improvements to
IFRSs which is effective for periods commencing on or after
1 January 2011.
Amendment to IFRS 3 Business Combinations effective 
for periods commencing on or after 1 July 2010
Amendment to IFRS 7 Financial Instruments: Disclosures
effective for periods commencing on or after 1 January 2011.
IFRS 9 Classification and Measurement of Financial
Instruments effective for periods commencing on or after 
1 January 2013.
Revised IAS 1 Presentation of Financial Statements resulting
from May 2010 Annual Improvements to IFRSs which is
effective for periods commencing on or after 1 January 2011.
Revised IAS 12 Income Taxes, which is effective for periods
on or after 1 January 2012.
Revised IAS 24 Related Party Transactions, which is effective
for periods commencing on or after 1 January 2011.
Amendments to IAS 27 Consolidated and Separate
Financial Statements resulting from May 2010 Annual
Improvements to IFRSs which is effective for periods
commencing on or after 1 July 2011.
Amendment to IFRIC 14 Prepayments of a Minimum
Funding Requirement, which is effective for periods
commencing on or after 1 January 2011.
The Group does not anticipate that the adoption of these
standards or interpretations will have a significant impact 
or relevance on the Group's accounts in the period of initial
application.
c) Revenue
Revenue represents the total amount receivable by the
Group for goods sold and services rendered during the
year, exclusive of value added tax.
For manufactured goods the Group recognises revenue when
the goods in question have finished production and passed
any applicable factory and customer acceptance tests.
Where goods remain on the Group's premises at the year
end at the request of the customer, management consider
the detailed criteria for the recognition of revenue from the
sale of goods as set out in IAS 18. In particular, consideration
is given as to whether the significant risk and reward of
ownership are considered to have transferred to the buyer.
d) Leased assets
Rentals under operating leases are charged to the Income
Statement as incurred.
e) Inventories
Inventories are valued at cost except where, in the directors'
opinion as experts, the net realisable value is likely to be
lower. In such circumstances inventories are valued at
estimated net realisable value.
f) Depreciation
Property, plant and equipment are depreciated by equal
instalments over their expected useful lives at the following
rates:
Freehold land & buildings 2%
Long leasehold property 2%
Fixtures & fittings 10%
Motor vehicles 25%
Short leasehold property over the term of the lease
g) Impairment of non-current assets
At each balance sheet date, the Group reviews the carrying
amounts of its non-current assets to determine whether
there is any indication that those assets have suffered an
impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the
extent of the impairment loss, if any.
Notes to the Accounts 
Year ended 31 December 2010 31
Annual Report and Accounts 2010
The recoverable amount is the higher of fair value less
selling costs and 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 the
risks specific to the asset for which estimates of future cash
flows have not been adjusted. An impairment loss is
recognised in the Income Statement whenever the carrying
amount of the asset exceeds its recoverable amount.
h) Foreign currencies
Assets and liabilities of the overseas subsidiary undertaking
are translated at the rates of exchange ruling at the Balance
Sheet date. The results of the overseas subsidiary are
translated at a reasonable approximation of the date of
transaction. Differences arising on translation of the net assets
of the subsidiary undertaking are taken direct to reserves.
i) Deferred taxation
Deferred tax is the tax expected to be payable or recoverable
on differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding
tax bases used in the computation of taxable profits
("temporary differences"), and is accounted for using the
balance sheet liability method.
Deferred tax liabilities are generally recognised for all
taxable temporary differences. Where there are taxable
temporary differences arising on subsidiaries, deferred 
tax liabilities are recognised.
Deferred tax assets are only recognised to the extent that 
it is probable that taxable profits will be available against
which deductible temporary differences can be utilised.
Where there are deductible temporary differences arising
on subsidiaries, deferred tax assets are recognised only
where it is probable that they will reverse in the foreseeable
future and taxable profits will be available against which the
temporary differences can be utilised. 
The carrying amount of deferred tax assets is reviewed at
each Balance Sheet date and reduced to the extent that it 
is no longer probable that sufficient taxable profits will be
available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected
to apply in the period when the liability is settled or the
asset is realised.
j) Pension costs
The Group operates a defined benefit pension scheme which
is closed to new entrants and closed to future accrual. The
funds of the scheme are administered by trustees and are
separate from the Group. The scheme is valued by a qualified
actuary every three years and contributions are paid in
accordance with the recommendations of the actuary. The
most recent valuation of this scheme was at 1 May 2007.
Pension costs are charged against profits in the year they
arise. Actuarial gains and losses are recognised in Other
Comprehensive Income.
The Group also operates a defined contribution pension
scheme. Pension payments to defined contribution schemes
are charged to the Income Statement as they become due.
k) Share based payments
The Group issues equity settled share-based payments
through a Share Incentive Plan to all employees and through 
a Long T erm Incentive Plan to directors. The payments are
measured at fair value at the date of grant and the fair value 
is expensed on a straight line basis over the vesting period,
based on the Group's estimate of the shares that will
eventually vest and adjusted for the effect of non-market
based vesting conditions. The fair value of payments under the
Share Incentive Plan is measured as the cost at the date of the
award. The fair value of the payments under the Long T erm
Incentive Plan is measured using the Black Scholes model.
The investment in shares is carried at the cost of the shares
held and this investment in own shares is presented as a
deduction from shareholders funds.
 l) Accounting for financial instruments
Financial assets and financial liabilities are recognised 
on the Group’s balance sheet when the group has become
party to the contractual provisions of the instrument.
Trade and other receivables
Trade receivables are initially recognised at fair value 
and subsequently measured at amortised cost using the
effective interest method. A provision for impairment is
made where there is objective evidence of impairment
(including customers in financial difficulty or seriously in
default against agreed payment terms). There is no material
variance between carrying and fair values.
Significant financial difficulties of the trade receivables,
probability that the trade receivables will enter bankruptcy
or financial reorganisation, and default or delinquency in
payments (more than 120 days overdue) are considered
indicators that the trade receivable is impaired. The carrying
amount of the asset is reduced through the use of an
allowance account, and the amount of the loss is recognised
in the Income Statement within administrative expenses.
When a trade receivable is uncollectible, it is written off
against the allowance account for trade receivables.
Subsequent recoveries of amounts previously written off 
are credited against administrative expenses in the Income
Statement.
Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits
held at call with banks, other short-term highly liquid
investments with original maturities of three months or 
less, and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities on the Balance Sheet.
Trade payables
Trade payables are initially recognised at cost and
subsequently measured at amortised cost using the
effective interest method. There is no material variance
between book and fair values.
Borrowings
Bank loans and overdrafts are recorded initially at their fair
value, net of direct transaction costs and finance charges
are recognised in the Income Statement over the term of
the instrument. Note 18 provides details of the applicable
interest rates. There is no material variance between book
and fair values. 32
Annual Report and Accounts 2010
Notes to the Accounts continued
Year ended 31 December 2010
Equity instruments
Equity instruments are recorded at the proceeds received,
net of direct issue costs.
m) Interest
Interest is recognised using the effective interest method
which calculates the amortised cost of a financial asset or
liability and allocates the interest income over the relevant
period. The effective interest rate is the rate that exactly
discounts estimated future cash receipts through the
expected life of the financial asset to the net carrying
amount of the financial asset.
n) Investment in associates
Associates are all entities over which the Group has
significant influence but not control, generally
accompanying a shareholding of between 20% and 50% of
the voting rights. Investments in associates are accounted
for using the equity method of accounting and are initially
recognised at cost. The Group’s investment in associates
includes goodwill identified on acquisition, net of any
accumulated impairment loss. See note 15 for the
impairment of non-financial assets including goodwill.
The Group’s share of its associates’ post-acquisition profits
or losses is recognised in the income statement, and its
share of post-acquisition movements in reserves is
recognised in reserves. The cumulative post-acquisition
movements are adjusted against the carrying amount of 
the investment. When the Group’s share of losses in an
associate equals or exceeds its interest in the associate,
including any other unsecured receivables, the Group 
does not recognise further losses, unless it has incurred
obligations or made payments on behalf of the associate.
3  Financial Risk Management
The Group’s activities expose it to a variety of financial 
risks: foreign exchange risk, credit risk and liquidity risk. 
Risk management is carried out by the Board, who review
the exposures of the Group on an ongoing basis and put 
in specific procedures to mitigate this risk where it is felt
appropriate to do so. 
a) Foreign exchange risk
The Group operates internationally and is exposed to foreign
exchange risk arising from currency exposures, primarily with
respect to the US Dollar and the UK Pound. Foreign exchange
risk arises from commercial transactions, recognised assets
and liabilities and net investments in foreign operations.
The Group manages its holding of foreign currency,
specifically US Dollars, to ensure that the impact of currency
fluctuations on the Group are reduced. The use of forward
contracts has been considered, as a further measure to
mitigate this risk. However the Group has not entered into
any contracts of this nature during the year.
b) Credit risk
The Group considers that there is low credit risk exposure.
The majority of the Group's sales are made to high net worth
individuals with good credit worthiness. The combination of 
this factor and the repeat sales to regular customers limit
the amount of credit exposure of the Group.
c) Liquidity risk
The Group maintains sufficient cash and availability of
funding through an adequate amount of committed 
credit facilities to ensure that resources are available to 
take advantage of new business opportunities as they arise.
d) Capital management risk
The Group policy is to maintain a strong capital base so as
to maintain investor, creditor and market confidence and to
sustain future development of the business.
4 Critical Accounting Estimates and
Judgements
The Group makes estimates and assumptions concerning
the future. The resulting accounting estimates will, 
by definition, seldom equal the related actual result. 
Estimates and judgements are continually evaluated 
and are based on historical experience and other factors,
including expectations of future events that are believed to
be reasonable under the circumstances. The estimates and
judgements that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities
within the financial period are discussed below.
a) Retirement benefit pension obligations
The Group's defined benefit pension scheme liability is
based on key assumptions including return on scheme
assets, discount rates, mortality rates, inflation, future 
salary and pension costs. The Group takes advice from
independent actuaries as to the appropriateness of the
assumptions, but these assumptions may, individually or
collectively, be different to actual outcomes.
b) Value of inventory
Inventory is valued at the lower of cost and net realisable
value. The directors regularly review the carrying value of 
all items in inventory and where their estimate of the market
value of the item, based on market conditions at the time
and trends in customer demand, is lower than the cost of
the item, a provision is made to reduce the carrying value 
of the item to the estimated market value.
c) Value of non-current assets
Non-current assets are valued at the lower of cost and the
estimated recoverable amount. The estimated recoverable
amount is the higher of fair value less selling costs and the
value in use. The value in use calculation requires an
estimate of the present value of future cash flows expected
to arise from the asset, by applying an appropriate discount
rate to the timing and amount of future cash flows.
The directors are required to make judgements regarding
the timing and amount of future cash flows applicable to
the asset, based on current budgets and forecasts and
extrapolated for an appropriate period taking into account
growth rates and expected changes in prices and costs. The
directors estimate the appropriate discount rate using pre-
tax rates that reflect current market assessments of the time
value of money and the risks specific to the individual asset. d) Taxation
The Group is subject to income taxes in the UK and US. At each financial period end judgement is required in determining 
the provision for income taxes. The Group recognises liabilities for anticipated tax issues based on the best estimates at the
Balance Sheet date. Where the final tax outcome of these matters is different from the amounts that were initially recorded, 
such differences will impact the corporation tax and deferred tax provisions in the period in which such determination is made.
The amount of the deferred tax asset included in the Balance Sheet of the Group is recognised only to the extent that it is
probable that future taxable profits will be available against which the asset can be utilised. In estimating the amount of the
deferred tax asset that may be recognised, the directors make judgements, based on current budgets and forecasts, about 
the amount of future taxable profits and the timings of when these will be realised. The directors have decided to no longer
carry forward a deferred tax asset due to the uncertain nature of the antique furniture and decorative arts market and the 
timing of its recovery. 
5  Segmental Analysis
The Group’s operating segments have been determined based on the management accounts reviewed by the Board of Directors
(the Chief Operating Decision Maker). The Group’s activities are split into four business segments: dealing in antique furniture and
objets d'art through Mallett, dealing in fine art through James Harvey British Art (JHBA), designing and manufacturing contemporary
furniture and works of art through Meta, and providing restoration services through Hatfields. The operations of Mallett are further
split into two geographical regions, UK and US, reflecting the location of a Mallett showroom in each of those regions. 
The Board assesses the performance of the operating segments based on turnover and operating profit. Sales are reported 
by location of sales outlet. The accounting policies of the reportable segments are the same as described in note 2 and no
segment is reliant on any one major external customer.
Transfer pricing between segments are set on an arm’s length basis. Segmental assets and liabilities consist of property, plant
and equipment, trade receivables, payables, cash at bank and inventories.
Segmental analysis – continuing operations
Mallett Mallett Intra
UK USA JHBA Meta Hatfields Other group Total
2010 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Income & expenses information
External revenue by sales outlet 6,281 5,354 1,101 160 359 - - 13,255
Inter segment revenue 2,370 - - - 534 - (2,904) -
EBITDA (1,049) (261) 42 65 48 - 174 (981)
Depreciation and amortisation (88) (156) -  -  -  (44) -  (288) 
Share of operating loss in associate -  -  -  -  -  (131) -  (131)
Interest revenue 155 2 - -  -  -  (154) 3
Interest expense (21) (154) - -  -  -  154 (21)
Profit/(loss) before tax (1,003) (569) 42 65 48 (175) 174 (1,418)
Income tax (956) (110) (14) (17) (40) - - (1,137)
Profit/(loss) for the year (1,959) (679) 28  48  8  (175) 174  (2,555) 
Balance Sheet information
Capital expenditure 16 15 -  -  -  -  -  31
Total assets 10,327 9,086 608 113 218 1,811 -  22,163
Total liabilities, excluding tax liabilities 5,495 1,419 71 74 85 -  -  7,144
Investment in associate -  -  -  -  -  -  -  -
33
Annual Report and Accounts 2010 5  Segmental Analysis continued
Mallett Mallett Intra
UK USA JHBA Meta Hatfields Other group Total
2009 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Income & expenses information
External revenue by sales outlet 6,748 5,004 1,572 429 227 -  -  13,980
Inter segment revenue 4,058 21 -  -  523 -  (4,602) - 
EBITDA (1,078) (385) 87 26 (142) -  151 (1,341) 
Depreciation and amortisation (84) (154) -  -  -  (44) -  (282) 
Freehold property impairment -  -  -  -  -  (200) -  (200) 
Share of operating loss in associate -  -  -  -  -  (33) -  (33) 
Interest revenue 236 19 -  -  -  -  (130)  125
Interest expense (44) (129) 130 (43) 
Profit/(loss) before tax (970) (649) 87 26 (142) (277) 151 (1,774) 
Income tax 9 151 (25) (8) 39 - - 166
Profit/(loss) for the year (961) (498) 62  18  (103)  (277) 151  (1,608)
Balance Sheet information
Capital expenditure -  4 -  -  -  -  -  4 
Total assets 12,020 9,221 176 188 564 1,854 -  24,023
Total liabilities, excluding tax liabilities 4,844 338 103 48 102 -  -  5,435
Investment in associate -  -  -  -  -  -  -  - 
The sales by destination of goods is as follows:
Mallett JHBA Meta Hatfields Total
2010 £’000 £’000 £’000 £’000 £’000
United Kingdom 3,287 747 20 354 4,408
Rest of Europe 2,933 205 -  3 3,141
United States of America 4,975 90 140 2 5,207
Other 499 -  -  -  499
11,694 1,042 160 359 13,255
Mallett JHBA Meta Hatfields Total
2009 £’000 £’000 £’000 £’000 £’000
United Kingdom 2,705 869 249 216 4,039 
Rest of Europe 2,328 132 -  10 2,470 
United States of America 5,840 572 180 1 6,593 
Other 878 -  -  -  878 
11,751 1,573 429 227 13,980 
34
Annual Report and Accounts 2010
Notes to the Accounts continued
Year ended 31 December 2010 6  Loss from Operations
Operating loss has been arrived at after charging/(crediting): 2010 2009
£’000 £’000
Depreciation of property, plant and equipment 288 282 
Freehold property impairment - 200 
Auditors' remuneration
- Audit fees 14 16 
- Other non-audit services
- Tax services (advisory and compliance) 15 21 
- Other services* 9 12 
- Audit of group undertakings 40 40 
- Review of interim accounts 2 2 
Net foreign exchange (losses)/gains (37) 26 
Lease payments 1,618 1,684 
Inventory provision 180 352 
* Other services includes work relating to a pension scheme audit work and general consultancy work.
7  Staff Costs
2010 2009
£’000 £’000
Staff costs
- wages and salaries 1,790 2,025 
- compensation for loss of office 56 293 
- social security costs 160 201 
- share based payments 74 73 
- pension scheme costs* (note 19) 193 174 
2,273 2,766 
* Includes £123,000 (2009 - £128,000) in respect of contributions to defined contribution pension schemes, the write-back of a
pension provision made in a prior year and sundry pension costs.
Number Number
Average number of persons (including directors and part-time employees) employed by the company
- restoration 8 11
- selling and distribution 22 26
- administration 4 4
- non-executive directors 2 2
36 43
Details of directors’ emoluments are given in the Directors’ Remuneration Report on page 19. The Group believes that the
directors of Mallett plc are the only key management personnel under the definition of IAS 24 "Related party disclosures".
8  Net Interest
2010 2009
£’000 £’000
Bank interest receivable 3 126 
Interest payable on bank loan and overdrafts within five years not by instalments (21) (44) 
(18) 82 
35
Annual Report and Accounts 2010 9  Tax
2010 2009
£’000 £’000
Current taxation
UK corporation taxation - 14 
Foreign tax (105) (1) 
(105) 13 
Deferred tax (note 20):
Current year 1,242 (179) 
1,137 (166) 
UK corporation tax is calculated at 28.0% (2009 – 28.0%) of the estimated assessable profit for the year. Tax for other jurisdictions
is calculated at the rates prevailing in the respective jurisdictions.
The credit for the year can be reconciled to the loss per the Income Statement as follows:
2010 2009
£’000 £’000
Loss before tax (1,418) (1,774) 
Tax at the UK corporation tax rate of 28.0% (2009 – 28.0%) (397) (497) 
Effected by the tax impact of the following items:
Income not taxable (15) (150) 
Expenses not deductible for tax purposes 29 43 
Depreciation in excess of capital allowances 49 56 
Tax losses carried forward 337 556 
Utilisation of tax losses (13) (30) 
Foreign tax (105) (1)  
Other timing differences 10 36 
(105) 13 
Deferred tax (note 20):
Current year 1,242 (179) 
Total current tax 1,137 (166) 
In addition to the amount credited to the Income Statement, deferred tax relating to actuarial gains and losses of the pension
scheme amounting to £895,000 debit (2009 - £195,000 credit) has been debited directly to the equity reserve.
10  Dividends
2010 2009
£’000 £’000
Amounts recognised as distributions to owners in the period:
B share continuing dividend - 2
- 2
No final dividend is proposed for the year ended 31 December 2010 (2009 - nil).
11  Basic and Diluted Earnings per Share
Basic and diluted earnings per share are based on the loss after tax of £2,555,000 (2009 - loss of £1,608,000) divided by the
weighted average number of shares in issue during the year of 13,385,695 (2009 - 13,496,538).
36
Annual Report and Accounts 2010
Notes to the Accounts continued
Year ended 31 December 2010 37
Annual Report and Accounts 2010
12  Loss for the Financial Year
The loss dealt with in the accounts of the Company, which includes dividends received from subsidiaries, was £403,000 (2009 -
£86,000). As permitted by section 408 of the Companies Act 2006 an Income Statement of the Company is not presented with
these accounts.
13  Property, Plant and Equipment
Short Furniture,
Freehold Leasehold fixtures & 
property property motor vehicles Total
£’000 £’000 £’000 £’000
Cost or valuation:
At 1 January 2009 2,185 4,635 364 7,184 
Additions -  2 2 4
Disposals - - (2) (2) 
Exchange adjustments -  (316) (6) (322) 
At 31 December 2009 2,185 4,321 358 6,864 
Additions -  15 16 31 
Disposals -  -  (21) (21) 
Exchange adjustments -  111 3 114 
At 31 December 2010 2,185 4,447 356 6,988 
Depreciation:
At 1 January 2009 88 1,813 157 2,058 
Charged 44 208 30 282 
Impairment 200 -  -  200 
Released -  -  -  -  
Exchange adjustments -  (85) (3) (88) 
At 31 December 2009 332 1,936 184 2,452 
Charged 44 210 34 288 
Released -  -  (21) (21) 
Exchange adjustments -  33 1 34 
At 31 December 2010 376 2,179 198 2,753 
Net book value:
At 31 December 2010 1,809 2,268 158 4,235 
At 31 December 2009 1,853 2,385 174 4,412 
The directors assessed the carrying value of each of the Group’s non-current assets at the balance sheet date by estimating 
the recoverable amount of each asset in accordance with the accounting policy in note 2. Based on the value in use, using a
discount rate of 6%, the directors believe the values shown of the non-current assets are reasonable (2009 - freehold property
impaired by £200,000).
14  Inventories
Group Company
2010 2009 2010 2009
£’000 £’000 £’000 £’000
Goods for resale 12,081 12,342 - -  
During the year the Group made inventory provisions of £180,000 (2009 – £352,000). During the year £7,855,000 (2009 -
£8,444,000) was recognised as a cost of sales expense in the Income Statement. 15  Investments
Investment in subsidiaries 2010 2009
£’000 £’000
Company
Shares in Group undertakings
At cost
At 1 January 2009 and 31 December 2010 8,482 8,482
Investments in Group undertakings are recorded at cost, which is the fair value of the consideration paid.
The subsidiary undertakings are as follows: Nature of business Percentage of ordinary shares held
Mallett & Son (Antiques) Limited Antique dealers 100%
Mallett Overseas Limited Antique dealers 100%
Mallett, Inc. Antique dealers 100%
Mallett at Bourdon House Limited Dormant 100%
James Harvey British Art Limited Fine Art dealers 60%
MadebyMeta Limited Dormant 100%
MadebyMeta, Inc. Contemporary design 100%
H.J. Hatfield & Sons Limited Restorers 60%
On 1 January 2010, the Group sold 40% of it’s interest in James Harvey British Art Limited (“JHBA”), with the sale of a further
10% interest dependent on JHBA’s profit in 2010 and 2011, to James Harvey, for a total consideration of £54,000.
The difference between the disposal proceeds and the amount transferred to minority interests of £26,863 has been
recognised directly in equity.
Subsidiary undertakings are registered and operate in England with the exception of Mallett, Inc. and MadebyMeta, Inc., which
is incorporated and operates in the United States of America.
Gurr Johns Limited own 40% of H.J. Hatfield & Sons Limited.
Investment in associates 2010 2009
£’000 £’000
Group
At 1 January - -
Additions 1 5 
Goodwill 41 -  
Share of losses (42) (5) 
At 31 December - -  
The investment in associates represents a 25% interest in Masterpiece London Limited (“Masterpiece”), a company which is
registered and operates in England and which organises an antique trade fair.
On the 23 December 2010 Mallett & Son (Antiques) Limited purchased 1,250 shares from Asprey Holdings Limited for £1,250
increasing its shareholding in Masterpiece from 20% to 25%.
The Group's share of the results of Masterpiece for the year ended 31 December 2010 was revenue of £618,000 (2009 - nil) and
losses of £131,000 (2009 - £33,000). In accordance with IAS28, the losses have been offset against the value of the investment
and the value of the loans. As at 31 December 2010 the Group's share of Masterpiece’s assets was £371,000 (2009 - nil) and
liabilities of £570,000 (2009 - nil).
38
Annual Report and Accounts 2010
Notes to the Accounts continued
Year ended 31 December 2010 16  Trade and Other Receivables
Group Company
2010 2009 2010 2009
£’000 £’000 £’000 £’000
Trade receivables 3,384 1,859 -  -  
Loan to associate - 60 -  -  
Other receivables 146 281 - -  
Tax and social security recoverable - -  2 1 
Prepayments and accrued income 980 982 5 -  
Amounts due from subsidiary undertakings - -  14,765 14,952 
4,510 3,182 14,772 14,953
Included in the Group's trade receivables balance are debtors with a carrying value of £912,000 (2009 - £617,000) which are past
due at the balance sheet date. 
The ageing of these debtors is as follows:
2010 2009
Days past due: £’000 £’000
0 - 60 days 314 196 
61 - 120 days 533 135 
121+ days 65 286 
Total 912 617 
In addition, trade receivable balances totalling £78,000 (2009 - £85,000), which are over 120 days past their due date have been
provided for. This amount has been included in cost of sales in the Income Statement.
17  Current Liabilities
Group Company
2010 2009 2010 2009
£’000 £’000 £’000 £’000
Amounts falling due within one year:
Bank overdraft 1,987 1,131 -  -  
Trade payables 2,660 2,014 7 -  
Taxation and social security 31 26 -  -  
Other payables 48 48 -  -  
Amounts owed to associate 47 -  -  -  
Accruals and deferred income 690 658 35 54 
5,463 3,877 42 54 
The bank overdraft is repayable on demand. The overdraft facility at the balance sheet date was £2,500,000. The facility is
secured with a fixed and floating charge on the Group's UK assets. The average effective interest rate on the bank overdraft
approximated to 2.13%, which is determined based on 1.5% above the Coutts & Co. base rate.
39
Annual Report and Accounts 2010 18  Financial Instruments
Capital risk management
The Group's capital management objectives are to ensure the Group's ability to continue as a going concern and to provide 
an adequate return to shareholders.
The Group manages its capital through the optimisation of the debt and equity balance and by pricing products and services
commensurately with the level of risk. The capital structure of the Group consists of debt, which includes the borrowings
disclosed in note 17, cash and cash equivalents and equity attributable to Owners of the parent, comprising issued capital,
reserves and retained earnings.
2010 2009
£’000 £’000
Debt (1,987) (1,131) 
Cash and cash equivalents 1,337 1,950 
Net debt (650) 819 
Equity 15,019 18,588 
The Group is not subject to externally imposed capital requirements, other than the minimum capital requirements and duties
regarding a serious reduction in capital, as imposed by the Companies Act 2006 on all public limited companies.
The Group held the following categories of financial instruments:
2010 2009
£’000 £’000
Financial Assets
Loans and receivables:
Trade receivables 3,384 1,859 
Loan to associate - 60 
Other receivables 146 281 
Accrued income 554 572 
Cash and cash equivalents 1,337 1,950 
5,421 4,722 
Financial liabilities
Trade and other payables - held at amortised cost
Trade payables 2,660 2,014 
Other payables 48 48 
Accruals 689 658 
Borrowings 1,987 1,131 
5,384 3,851 
The fair value of the financial instruments set out above is not materially different from their book value.
Financial risk management objectives
Management monitor and manage the financial risks relating to the operations of the Group through regular reports to 
the Board. These risks include liquidity risk, credit risk and currency risk. The Group does not enter into or trade financial
instruments.
Credit risk
The Group's credit risk is primarily attributable to its trade receivables. Credit risk is managed by monitoring the aggregate
amount and duration of exposure to any one customer. The Group's management estimate the level of allowances required 
for doubtful debts based on prior experience and their assessment of the current economic environment.
40
Annual Report and Accounts 2010
Notes to the Accounts continued
Year ended 31 December 2010 18  Financial Instruments continued
Liquidity risk
The Group manages liquidity risk by maintaining adequate reserves and banking facilities, by continuously monitoring forecast
and actual cash flows and by matching the maturity profiles of financial assets and liabilities.
At 31 December 2010, all the Group's liabilities had contractual maturities of less than six months (2009 - less than six months)
and the Group had undrawn borrowing facilities available of £513,000 (2009 - £1,369,000). The Group also maintains foreign
currency denominated bank accounts that earn interest based on Coutts & Co. base rate applicable to that currency.
Interest rate risk
The Group finances its operations where necessary through bank overdrafts.
If interest rates had been 1.0% higher/lower and all other variables were held constant, the impact on the results in the Income
Statement and equity would be an increase/decrease of £10,000 (2009 - £21,000).
Foreign currency risk
The Group receives payment for its products and incurs costs and inventory purchases in Pounds Sterling, US Dollars and Euros.
After netting off foreign currency receipts and payments there is a net exposure to the risk of currency movements in both US
Dollars and Euros.
The carrying amounts of the Group's foreign currency denominated monetary financial liabilities at the reporting date are as
follows:
Financial Financial Financial Financial
assets assets liabilities liabilities 
2010 2009 2010 2009
£’000 £’000 £’000 £’000
Euro 3 3 - -  
US Dollar 3,062 2,823 1,468 748 
3,065 2,826 1,468 748
Foreign currency sensitivity
The Group is principally exposed to the US Dollar and Euro currency movements.
The following table details the Group's sensitivity to a 5% decrease in Pound Sterling against the relevant foreign currencies:
Euro Euro US Dollar US Dollar 
currency currency currency currency
impact impact impact impact 
2010 2009 2010 2009
£’000 £’000 £’000 £’000
Profit -  -  84 108 
The use of a 5% weakening in exchange rates is considered appropriate given recent movements in exchange rates.
The above analysis represents the Group's exposure to foreign currency risk based financial assets and liabilities outstanding at
the year end. A significant amount of the Group's sales and purchases are made in foreign currencies. The exposure to foreign
exchange rates varies throughout the year depending on the volume and timing of transactions in foreign currencies.
19  Retirement Benefit Pension Obligations 
The Group operates a defined benefit pension scheme, providing benefits based on final pensionable salary. This scheme is
closed to new entrants and, on the 30 June 2008 was closed to future accrual, with effect from that date. The assets of the
scheme are held separately from those of the Group and are administered by the pension scheme trustees. The pension cost
relating to the scheme is assessed in accordance with the advice of an independent qualified actuary using the projected unit
method. Actuarial valuations of the scheme are carried out tri-annually with the latest actuarial valuation of the scheme as at 1
May 2007.
41
Annual Report and Accounts 2010 19  Retirement Benefit Pension Obligations continued
The principal actuarial assumptions at the Balance Sheet date were as follows:
2010 2009 2008
Financial Assumptions p.a. p.a. p.a.
Rate of increase in salaries n/a n/a n/a
Rate of increase of pensions:
LPI 5% 3.40% 3.40% 2.80%
LPI 2.5% 2.50% 2.50% 2.50%
Rate of revaluation of deferred pensions in excess of the GMP 3.40% 3.40% 2.80%
Discount rate 5.40% 5.70% 6.00%
Inflation assumption 3.40% 3.40% 2.80%
The assumed life expectancy for a retiree at age 65 is:
2010 2009
Male years Female years Male years Female years
Today 22.2 24.3 22.1 24.7 
In 20 years 24.5 26.8 23.3 25.8 
The 2010 rates are based on the SAPS tables adjusted for each individual's year of birth and allowing for long cohort future
mortality improvements i.e. the S1PMA YOB CM12009/SIPFA YOB CM12009 tables for male and female members respectively
(2009: S1PMA YOB LC/SIPFA YOB LC tables for male and female members respectively).
The market value of the pension scheme assets and the expected rate of return were:
2010 2009 2008
Expected Expected Expected
long term value long term value long term value
rate of return £’000 rate of return £’000 rate of return £’000
Equities      n/a - n/a -  7.50% 2,452 
Bonds      5.40% 1,260 5.70% 1,813 6.60% 1,926 
Insurance policies 5.40% 2,603 5.70% 1,909 6.00% 1,869 
Cash 0.50% 1 0.50% 160 2.00% 377 
Weighted Average Return 6.48% 5.49% 6.70%
Total market value of assets 3,864 3,882 6,624 
The expected return on scheme assets is based on market expectations at the beginning of the year for return over the entire
life of the defined benefit obligation.
2010 2009 2008
£’000 £’000 £’000
Actual return on scheme assets 43 243 (943) 
The value of the defined benefit obligations are analysed as follows:
2010 2009 2008
£’000 £’000 £’000
Actuarial value of financial obligations 5,545 5,440 8,078 
Actuarial value of unfunded obligations - -  -  
5,545 5,440 8,078 
42
Annual Report and Accounts 2010
Notes to the Accounts continued
Year ended 31 December 2010 43
Annual Report and Accounts 2010
19  Retirement Benefit Pension Obligations continued
2010 2009
Income Statement impact: £’000 £’000
Interest on obligation 300 377 
Expected return on pension scheme assets (199) (331) 
Total included in pension scheme cash (see note 7) 101 46 
Acturial loss which arose in the year have been recognised immediately in the Statement of Comprehensive Income:
2010 2009
£’000 £’000
Difference between expected and actual return on scheme assets (156) (88) 
Experience gains on scheme liabilities 50 (102) 
Changes in assumptions (223) (508) 
Actuarial loss (329) (698) 
Cumulative actuarial gains and losses recognised in equity at start of year 124 822 
Cumulative actuarial gains and losses recognised in equity at end of year (205) 124 
2010 2009 2008
Balance Sheet impact: £’000 £’000 £’000 
Present value of defined benefit obligation 5,545 5,440 8,078 
Fair value of scheme assets (3,864) (3,882) (6,624) 
Deficit in scheme at 31 December 1,681 1,558 1,454 
2010 2009 2008
Movement in scheme’s deficit for the year: £’000 £’000 £’000 
Deficit in scheme at 1 January (1,558) (1,454) (204) 
Movement in year:
Current service cost - -  (97) 
Contributions 307 640 40 
Net return on investments (101) (46) 73 
Curtailment gains - -  66 
Actuarial loss (329) (698) (1,332) 
Deficit in scheme at 31 December (1,681) (1,558) (1,454)  19  Retirement Benefit Pension Obligations continued
Reconciliation of Present Value of scheme liabilities and assets
2010 2009 2008
Change in present value of defined benefit obligation: £’000 £’000 £’000 
Present value of defined benefit obligation at start of year 5,440 8,078 7,887 
Employer’s current service cost - -  97 
Interest on obligation 300 377 456 
Contributions by plan participants - -  17 
Curtailment gains - -  (66) 
Actuarial losses/(gains) on obligations 173 610 (140) 
Benefits paid (368) (3,625) (173) 
Present values of defined benefit obligation at end of year 5,545 5,440 8,078 
Change in fair value of plan assets:
Fair value of plan assets at start of year 3,882 6,624 7,683 
Expected return of plan assets 199 331 529 
Actuarial losses on plan assets (156) (88) (1,472) 
Contributions by employer 307 640 40 
Contributions by plan participants - -  17 
Benefits paid (368) (3,625) (173) 
Fair values of plan assets at end of year 3,864 3,882 6,624 
The five year history of experience adjustments is as follows:
2010 2009 2008 2007 2006
£’000 £’000 £’000 £’000 £’000
Present value of defined benefit obligations 5,545 5,440 8,078 7,887 6,283 
Fair value of scheme assets 3,864 3,882 6,624 7,683 5,157 
Deficit in the scheme 1,681 1,558 1,454 204 1,126 
Experience adjustments on scheme liabilities
Amount (£) 50 (102) 109 97 184 
Percentage of scheme liabilities (%) 0.90% 1.90% 1.30% 1.20% 2.90%
Actual return less expected return on plan assets:
Amount (£) (156) (88) (1,472) 38 110 
Percentage of scheme assets (%) 4.00% 2.30% 22.20% 0.50% 2.10%
The contributions that are expected to be paid into the scheme during the current financial year are £307,000 by the Group. 
The current arrangements as regards to contribution levels are in accordance with the Schedule of Contributions agreed
between the Group and the trustees dated 14 July 2008.
44
Annual Report and Accounts 2010
Notes to the Accounts continued
Year ended 31 December 2010 20  Deferred Tax
The following are the major deferred tax liabilities and assets recognised by the Group and movements thereon during the
current and prior reporting period:
Other Accelerated Unused Retirement
timing tax tax benefit
differences depreciation losses obligations Total
£’000 £’000 £’000 £’000 £’000
At 1 January 2009 (93) (46) (1,217) (407) (1,763) 
Charge/(released) to income (note 9) 19 27 (391) 166 (179) 
Debit to equity -  -  -  (195) (195) 
At 31 December 2009 (74) (19) (1,608) (436) (2,137) 
Charge/(released) to income (note 9) 74  19  1,608 (459) 1,242 
Credit to equity -  -  -  895 895 
At 31 December 2010 - - - - - 
As at 31 December 2010 the Group had deductible temporary differences available for offset against future profits: 
2010 2009
Retirement benefit obligations 1,681 -
Unused tax losses 6,569 -
Accelerated tax depreciation 346 -
Other timing differences 20 -
8,616 -
No deferred tax asset has been recognised in respect of these amounts due to the unpredictability of future profits arising from
the uncertain nature of the antique furniture and decorative art market and the timing of its recovery.
21  Share Based Payments
The Group operates two share based plans – a Share Incentive Plan ("SIP") and a Long Term Incentive Plan ("LTIP"). Details 
of these plans are given in the Directors' Remuneration Report on pages 17 to 21.
Share incentive plan
Ordinary shares in Mallett plc are held by the trustees of the Mallett Share Incentive Plan to provide long-term benefits to
employees. The costs associated with the purchase of own shares for the trust are deducted from equity.
Long Term Incentive plan
The 2009 Award, was outstanding at 31 December 2010. The fair value of shares awarded under the 2009 Award has been
calculated using the Black Scholes model. This gave a fair value of 51p per share based on the following assumptions:
2009 Award
Share price at grant date (p) 61.5
Exercise price (p) n/a
Expected volatility 35%
Risk free rate 3%
Expected term (years) 3 
Expected dividend yield 0%
Fair value (p) 51.0
45
Annual Report and Accounts 2010 46
Annual Report and Accounts 2010
Notes to the Accounts continued
Year ended 31 December 2010
21  Share Based Payments continued
The assumption on expected volatility has been made on the basis of historical share price performance. Based on the fair 
value calculated and the level of non-market related performance condition expected to be achieved, a charge of £16,000 
(2009 - £13,000) has been included in the Income Statement.
The number and value of the ordinary shares in Mallett plc held under the SIP and LTIP are as follows:
LTIP SIP Total
No. £’000 No. £’000 No. £’000
At 1 January 2009 -  -  216,845 442 216,845 442 
Purchased 111,308 100 196,770 93 308,078 193 
Exercised -  -  (32,583) (159) (32,583) (159) 
At 31 December 2009 111,308 100 381,032 376 492,340 476 
Purchased -  -  134,044 78 134,044 78 
Exercised -  -  (45,283) (62) (45,283) (62) 
At 31 December 2010 111,308 100 469,793 392 581,101 492 
22  Called Up Share Capital
Group Company
2010 2009 2010 2009
£’000 £’000 £’000 £’000
Authorised:
24,000,000 Ordinary shares of 5p each 1,200 1,200 1,200 1,200 
13,800,060 non-cumulative non-voting preference shares 
of 37.45p each 5,168 5,168 5,168 5,168 
6,368 6,368 6,368 6,368 
Allotted and fully paid:
13,800,060 Ordinary shares of 5p each 690 690 690 690 
All holders of ordinary shares have the right to vote at general meetings of the Company and to distributions from dividends or
on winding up of the Company.
23  Lease Commitments
2010 2009
Group £’000 £’000
Present value of the future minimum operating lease payments under non-cancellable operating leases:
Less than one year 1,628 1,625 
Between two and five years 7,153 6,950 
After more than five years 23,166 24,997 
The lease commitments relate to the rent of the Group’s various showrooms. 47
Annual Report and Accounts 2010
24  Reconciliation of Net Cash Flow to Movements in Net Funds and Analysis of Net Funds
At 1 Exchange At 31
January 2010 Cash Flow Movement December 2010
Group £’000 £’000 £’000 £’000
Cash in hand and at bank 1,950 (760) 147 1,337
Bank overdrafts (1,131) (856) -  (1,987)
819 (1,616) 147 (650)
Company
Cash in hand and at bank 8 2 - 10
25  Related Party Transactions
Key Management personnel
The Group’s key management personnel comprises of the Board executive and non-executive directors. The remuneration,
benefits and share incentive plan interests of these key personnel are set out in the Directors’ Remuneration Report on page 
17 to 21.
There were no transactions between the Company and its subsidiaries, which are related parties.
The cost recognised through the group income statement in relation to the directors interests in the share incentive plan and
long term incentive plan is £31,000 (2009 - £28,000).
At the year end the following balances were outstanding to the Company:
2010 2009
£’000 £’000
Amounts owed from Group undertakings:
Mallett & Son (Antiques) Limited 14,405 14,592 
Mallett Overseas Limited 360 360 
14,765 14,952 
The Group has no ultimate controlling party.
26  Contingent liabilities
During the year the Group entered into an agreement to sell 40 shares in James Harvey British Art Limited; this transaction has
been reflected within the financial statements. As part of that agreement the Group also agreed to transfer additional shares to
the buyer in 2012, up to a maximum of a further 10 shares based on certain performance criteria for James Harvey British Art
Limited between 1 January 2010 and 31 December 2011. 48
Annual Report and Accounts 2010
Five Year Record
2010 2009 2008 2007 2006
£’000 £’000 £’000 £’000 £’000
Revenue 13,255 13,980 12,109 17,488 16,642
(Loss)/Profit Before Taxation (1,418) (1,774) (5,973) 1,318 12,671
(Loss)/Profit After Taxation (2,555) (1,608) (4,279) 874 9,927
Dividends - 2 832 1,960 1,270
Key Ratios
Basic earnings per share (19.08p) (11.92p) (31.47p) 6.42p 72.78p
Basic earnings per share before restructuring (19.08p) (11.92p) (31.47p) 6.42p 11.06p
Net assets per share £1.09 £1.37 £1.56 £1.89 £2.56 Notice of Annual General Meeting
NOTICE IS HEREBY GIVEN that the twenty sixth annual general meeting of the members of Mallett plc (the
"Company") will be held at 141 New Bond Street, London W1S 2BS on 24 May, 2011 at 4.30p.m. when the
resolutions set out below will be proposed:
49
Annual Report and Accounts 2010
To consider and, if thought fit, to pass the following resolutions,
of which numbers 1-7 will be proposed as ordinary resolutions
and numbers 8 and 9 will be proposed as special resolutions:
1 To receive and adopt the Company's audited accounts for
the year ended 31 December 2010, together with the
directors' and auditors' reports on those accounts and on
the auditable part of the Directors' Remuneration Report.
2 To approve the Directors' Remuneration Report for the year
ended 31 December 2010, as set out in the 2010 Annual
Report and Accounts.
3 To re-appoint G. H. Hutchinson Smith as a director.
4 To re-appoint Lord Daresbury as a director.
5 To re-appoint J. Heneage as a director.
6 To re-appoint Menzies as auditors to the company until 
the conclusion of the next Annual General Meeting of 
the company and to authorise the directors to fix their
remuneration.
7 That for the purposes of section 551 Companies Act 2006
(the "Act") (and so that expressions used in this resolution
shall bear the same meanings as in the said section 551):
7.1 the directors be and are generally and unconditionally
authorised to exercise all powers of the company to
allot shares and to grant such subscription and
conversion rights as are contemplated by sections
551(1)(a) and (b) of the Act respectively up to a
maximum nominal amount of £230,001 to such persons
and at such times and on such terms as they think
proper during the period expiring at the end of five
years from the date of the passing of this resolution
(unless previously revoked or varied by the Company 
in general meeting); and
7.2 the Company be and is hereby authorised to make
prior to the expiry of such period any offer or
agreement which would or might require shares to 
be allotted after the expiry of the said period and the
directors may allot relevant securities in pursuance of
any such offer or agreement notwithstanding the
expiry of the authority given by this resolution;
so that all previous authorities of the directors pursuant 
to the said section 551 be and are hereby revoked.
8 That the Company be and is hereby generally and
unconditionally authorised for the purpose of section 701
Companies Act 2006 to make market purchases (as defined
in section 693 of the said Act) of ordinary shares of 5p each
in the capital of the Company ("ordinary shares") provided
that:
8.1 the maximum number of ordinary shares hereby
authorised to be purchased is 10% of the issued share
capital of the Company (1,380,006 ordinary shares);
8.2 the minimum price (exclusive of expenses) which may
be paid for such ordinary shares is 5p per share, being
the nominal amount thereof;
8.3 the maximum price (exclusive of expenses) which may
be paid for such ordinary shares shall be an amount
equal to the higher of (i) 5% above the average of the
middle market quotations for such shares taken from
The London Stock Exchange Daily Official List for the
five business days immediately preceding the day on
which the purchase is made and (ii) the higher of the
price of the last independent trade of an ordinary share
and the highest current independent bid for an
ordinary share as derived from the London Stock
Exchange Trading System SETS;
8.4 the authority hereby conferred shall (unless previously
renewed or revoked) expire on the earlier of the end of
the next Annual General Meeting of the company and
the date which is 18 months after the date on which
this resolution is passed; and
8.5 the Company may make a contract to purchase its own
ordinary shares under the authority conferred by this
resolution prior to the expiry of such authority, and
such contract will or may be executed wholly or partly
after the expiry of such authority, and the Company
may make a purchase of its own ordinary shares in
pursuance of any such contract.
9 That a general meeting of the Company other than an
Annual General Meeting may be called on not less than 
14 clear days' notice.
By Order of the Board,
M.A. Smyth-Osbourne
Director and Secretary
13 April 2011
(Incorporated in England and Wales with registered number 1838233) 50
Annual Report and Accounts 2010
1 A member entitled to attend and vote at the Meeting is
entitled to appoint a proxy to exercise all or any of the
rights of the member to attend and speak and vote on
his or her behalf. A proxy need not be a member of the
company. A member may appoint more than one proxy
in relation to the Meeting, provided that each proxy is
appointed to exercise the rights attached to a different
share or shares held by that member. Completion and
return of a form of proxy will not preclude a member
from attending and voting at the meeting in person. 
The right to appoint a proxy does not apply to any
person to whom this notice is sent who is a person
nominated under section 146 of the Act to enjoy
information rights (a "Nominated Person").
2 A form of proxy is enclosed which shareholders of the
Company are invited to complete and return. To appoint
more than one proxy you may photocopy this form.
Please indicate the proxy holder's name and the number
of shares in relation to which they are authorised to act
as your proxy (which, in aggregate, should not exceed
the number of shares held by you). Please also indicate if
the proxy instruction is one of multiple instructions being
given. All forms must be signed and should be returned
together in the same envelope.
3 The instrument appointing a proxy, together with a
power of attorney or other authority (if any) under which
it is signed, or a notarially certified copy of such power
or authority, must be completed, signed and returned so
as to reach, by hand or by post, Capita Registrars, The
Proxy Department, The Registry, 34 Beckenham Road,
Kent BR3 4TU no later than 4.30 p.m. on 22 May 2011.
Any member or his proxy has the right to ask any
question at the Meeting relating to the business at the
Meeting.
4 The company, pursuant to Section 360B of the Act 
and Regulation 41 of the Uncertificated Securities
Regulations 2001 (as amended), specifies that only
shareholders whose names appear on the register of
members of the company as at 6.00 p.m. on 22 May
2011 shall be entitled to attend and vote at the Annual
General Meeting in respect of the number of shares
registered in their name at such time. If the Meeting is
adjourned, the time by which a person must be entered
on the register of members of the company in order to
have the right to attend and vote at the adjourned
Meeting is 6.00 p.m. on the day preceding the date fixed
for the adjourned Meeting. Changes to the register of
members after the relevant times shall be disregarded in
determining the rights of any person to attend and vote
at the Meeting.
5 Copies of the following documents will be available 
for inspection at the Registered Office of the company
during usual business hours on any weekday from the
date of this Notice until the date of the Annual General
Meeting and thereafter at the place of the Meeting for
at least fifteen minutes prior to the meeting and during
the Meeting:
(a) the register of interests of the directors and their families
in the share capital of the company;
(b) copies of the directors' service contracts and the letters
of appointment for the Non-executive Directors;
(c) copies of the existing Articles of Association of the
company.
6 As at 13 April 2011 the company's issued share capital
consists of 13,800,060 ordinary shares, carrying one vote
each. Therefore the total voting rights in the company 
as at 13 April 2011 are 13,800,060.
7 The information required to be published by s.311(A) of
the Act (information about the contents of this Notice
and numbers of shares in the company and voting rights
exercisable at the Meeting and details of any members'
statements, members' resolutions and members' items
of business received after the date of this notice) may be
found at www.mallettantiques.com
8 Members representing 5% or more of the total voting
rights of all the members or at least 100 persons (being
either members who have a right to vote at the Meeting
and hold shares on which there has been paid up an
average sum, per member, of £100 or persons satisfying
the requirements set out in section 153(2) of the Act)
may require the company, under section 527 of the Act
to publish on a website a statement setting out any
matter relating to: (i) the audit of the company's
accounts (including the auditor's report and the conduct
of the audit) that are to be laid before the Annual
General Meeting; or (ii) any circumstance connected 
with an auditor of the company ceasing to hold office
since the previous meeting at which annual accounts
and reports were laid in accordance with section 437 
of the Act. The business which may be dealt with at the
Annual General Meeting includes any statement that the
company has been required under section 527 of the Act
to publish on a website.
9 A Nominated Person may under an agreement between
him/her and the member who nominated him/her, 
have a right to be appointed (or to have someone else
appointed) as a proxy entitled to attend and speak and
vote at the Meeting. Nominated Persons are advised to
contact the member who nominated them for further
information on this and the procedure for appointing
any such proxy.
10 If a Nominated Person does not have a right to be
appointed, or to have someone else appointed, as 
a proxy for the Meeting, or does not wish to exercise
such a right, he/she may still have the right under an
agreement between himself/herself and the member
who nominated him/her to give instructions to the
member as to the exercise of voting rights at the
Meeting. Such Nominated Persons are advised to
contact the members who nominated them for further
information on this.
Notes Form of Proxy
For use at the Annual General Meeting of Mallett plc (the “company”)
To be held at 4.30pm on 24 May 2011.
Please insert full name(s) and address(es)
I/We 
of 
(IN BLOCK CAPITALS)
being (a) member(s) of the above-named company HEREBY APPOINT the Chairman of the Meeting
or 
as my/our proxy to vote for me/us and on my/our behalf at the Annual General Meeting of the company to be held on 24 May 2011 and at
any adjournment thereof and in respect of the resolutions set out in the Notice of the Annual General Meeting to vote as indicated below.
For Against Vote Withheld
Please sign and insert date.  A corporation should execute under its common seal or under the hand of a duly authorised officer.
Dated this day of 2011
Signed
Notes
1. In the case of joint holdings the signature of any holder is sufficient but the vote of the senior holder who tenders a vote (whether in person or by proxy) shall 
be accepted to the exclusion of the other joint holders; for this purpose seniority shall be determined by the order in which the names stand in the register of
members.
2. If you wish to appoint one or more a proxies other than the Chairman you should delete the words "the Chairman of the Meeting or", insert your own choice in
the space provided and initial the amendment. A proxy need not be a member of the company but must attend the Meeting to represent you. To appoint more
than one proxy you may photocopy this form. Please indicate the proxy holder's name and the number of shares in relation to which they are authorised to act
as your proxy (which, in aggregate, should not exceed the number of shares held by you). Please also indicate if the proxy instruction is one of multiple
instructions being given. All forms must be signed and should be returned together in the same envelope. On any other business which properly comes before
the Meeting (including any motion to amend any resolution or to adjourn the meeting) the proxy will vote or abstain at his or her discretion.
3. Please indicate by marking "X" in the appropriate space how you wish your votes to be cast. Unless so instructed the proxy will vote or abstain as he/she thinks fit.
4. To be valid this Form of Proxy and power of attorney or other authority (if any) under which it is signed or a notarially certified copy of such power or authority
must be returned to Capita Registrars, The Proxy Department, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU not later than 48 hours before the
time fixed for the Meeting.
5. A vote witheld is not a vote in law and will not be counted in the calculation of the proportion of the votes "For" or "Against" the Resolution.
6. If you appoint as your proxy a person who is himself a member of the company or who is already appointed by more than one member of the company, such
person will be able to cast your vote only on a poll, not on a show of hands.
7. Completion and return of this proxy will not prevent you attending and voting at the Annual General Meeting if you so wish.
For Company Use Only
Holding of shares
Number
1. To receive and adopt the audited accounts
2. To approve the Directors' Remuneration report
3. To re-appoint G.H. Hutchinson Smith as a director.
4. To re-appoint Lord Daresbury as a director.
5. To re-appoint J. Heneage as a director.
6. To reappoint Menzies LLP as auditors and to authorise the directors to fix their
remuneration
7. To authorise the allotment of shares
8. To authorise the company to make market purchases of its own shares
(Special Resolution)
9. To permit general meetings to be called on 14 clear days notice 
(Special Resolution) PXS
34 Beckenham Road
Beckenham 
Kent
BR3 4BR
Business Reply
Licence Number 
RSBH - UXKS - LRBC
1 1
Third fold and tuck in
Second fold
First fold Secretary
Michael A. Smyth-Osbourne
Registered Office
141 New Bond Street
London W1S 2BS
Company Number
1838233
Bankers
Coutts & Co
440 Strand
London WC2R 0QS
Auditors
Menzies LLP
Kings House
12-42 Wood Street
Kingston upon Thames
Surrey KT1 1TG
Solicitors
Travers Smith LLP
10 Snow Hill
London EC1A 2AL
Registrars
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Stockbrokers
Singer Capital Markets Limited
One Hanover Street
London W1S 1YZ
Financial Calendar
Interim Management Statement released May 2011
Half–year results announced August 2011
Interim Management Statement released November 2011
Preliminary announcement of results for the year to 31 December 2011 March 2012
53
Annual Report and Accounts 2010
Company Advisers
DESIGNED AND PRODUCED BY SINCLAIR COMMUNICATIONS 141 New Bond Street
London W1S 2BS
Telephone +44 (0)20 7499 7411
929 Madison Avenue at 74th
New York, NY 10021
Telephone +1 212 249 8783
www.mallettantiques.com
SOLD IN 2010
A LATE 19TH CENTURY JAPANESE
MOTHER OF PEARL PHEASANT
A late 19th century model of a golden
pheasant entirely veneered with irredescent
mother of pearl applied as feathers. The
pheasant with its head turned back and
standing on naturalistic gilt bronze feet. 
Japan, circa 1895.