Golndustry plc
Annual Report and Accounts 2007
Golndustry plc
New London Bridge House
25 London Bridge Street
London SE1 9BQ
Telephone: +44 (0)20 7098 3700
www.goindustry.com Corporate Statement
 
GoIndustry plc is a global market leader in the valuation 
and sale of surplus industrial machinery and equipment. 
The company combines deep asset and industry 
intelligence with innovative eCommerce technology 
and advanced direct marketing to service the needs of 
multi-national corporations, insolvency practitioners, 
used equipment dealers, asset based lenders and other 
financial institutions around the world.
GoIndustry plc Annual report and accounts 2007
Summary results
In thousands of pounds   2007 2006
Direct profit   17,772 19,252
Adjusted profit before taxation   652 279
Exceptional items   (369) (349)
Share based payments   (866) (517)
Loss before taxation   (583) (587)
Adjusted earnings per share   0.2p 0.1p
Loss per share basic and fully diluted   (0.3p) (0.4p)
Summary results IFC
Financial and group highlights 1
Chairman’s statement 2
Chief Executive’s review 3
Board of directors 4
Directors’ report 5
Independent auditor’s report 10
Consolidated income statement 11
Consolidated statement of recognised income and expense 12
Consolidated balance sheet 13
Consolidated cash flow statement 14
Notes to the consolidated financial statements 15
Company balance sheet 38
Company cash flow statement 39
Notes to the company financial statements 40
Advisers and secretary IBC
Regional headquarters IBC
Advisers and Secretary Regional Headquarters
Broker & Nominated Advisers
Oriel Securities Limited
125 Wood Street
London EC2V 7AN
Auditor
Baker Tilly UK Audit LLP
2 Bloomsbury Street
London WC1B 3ST
Solicitors
SJ Berwin LLP
10 Queen Street Place
London EC4R 1BE
Registered office
New London Bridge House
25 London Bridge Street
London SE1 9BQ
Bankers
Barclays Bank PLC
1 Churchill Place
London E14 5HP
Company Secretary
Cargil Management Services Ltd
Chartered Secretaries
22 Melton Street
London NW1 2BW
Registrars
Capita Registrars
The Registry
34 Beckenham
Kent BR3 4TU
Registered in England No. 5381812
United Kingdom
New London Bridge House
25 London Bridge Street
London, SE1 9BQ
United Kingdom
T: +44 20 7098 3700
F: +44 20 7098 3795
Continental Europe
Ridlerstrasse 33
80339 Munich
Germany
T: +49 89 12 55 58 0
F: +49 89 12 55 58 12
North America
11425 Cronhill Drive
Owings Mills, Baltimore
Maryland 21117
USA
T: +1 410 654 7500
F: +1 410 654 5876
Asia
Leitz Industrial Complex
Edison Avenue (P. Leviste)
KM. 14, South Luzon Expressway
Paranaque City
Philippines
T: +63 2 852 2910
F: +63 2 831 9507 www.goindustry.com GoIndustry plc annual report and accounts 2007 1 
 
Financial & group highlights
l
	 	 Adjusted 	 G r oup 	 Pr ofit 	B ef or e 	 T ax 	(ex cluding	ex ceptional	 ite ms 	 and	 shar e-based 	 pa yments) 	 mor e 	 than 	 doubled 	 to	
£0. 7 	 mil lion 	 (2006: 	 £0.3	mi l lion)
l
	 	 Adjusted 	 e arnings	per 	 shar e 	 (ex cluding 	 ex ceptional 	 items	 and 	 shar e 	 based 	 pa yments)	 doubled	 to	 0.2 	 pence 	 (2006: 	
0.1	 pence) 	
l
	 	 Number	 of 	online 	 sales 	 up 	 b y 	 22%	to 	568	 (2006: 	 465)
l
	 	 Gr oss	Asse ts 	Sales	 of 	 £96 	 m il lion 	 (2006:	 £102 	mi l lion)
l
	 	 Oper ating	 cash 	 flow 	 posi tiv e
l
	 	 Net	 assets 	 up 	 b y 	 29%	 to 	 £ 27 .9 	 mi l lion 	(2006: 	 £21.6 	 mi l lion )
l
	 	 The	 shar e 	 of 	 r ev enues 	 at tr ibutable 	to	 major 	 long 	 term 	 cont r acts 	 wi th 	 Multi-National 	 Corpor ations 	 r eached 	 15% 	 f or 	
the	first 	 time
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	 	 Suc cessf ul l y	 launched	 new 	 Online	Ex changes 	 in 	 the 	 Metalw orking	 and 	 Plastics 	 sectors 	 r eal ising 	 incr emental	 Gr oss 	
Asset 	 Sales 	 of 	 £1.9 	 mi l lion 	during 	 the 	 y ear
Post balance sheet event
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	 	 On	25th 	 F ebruary 	 2008	 the 	compan y 	 r aised 	 £18.5	 mi l lion 	 o f 	 new 	 equi t y 	 capi tal 	 and 	 completed 	 the 	 acquisi tion 	 of 	
Do v eB id	 I nc, 	i ts 	lar gest	 global 	 competitor 	 and	 the	number 	 one 	 pla y er	 in 	 the	 piv otal 	North 	 American 	 mark et
Asia
17%
UK
38%
North America
20%
Continental
Europe
25%
Direct Profit by geography
2007
Direct Profit by business service
2007
Professional
services
17%
Commissions
63%
Principal
20%
Asia
10%
UK
43%
North America
24%
Continental
Europe
23%
2006
2006
Professional
services
15%
Commissions
57%
Principal
28%
c98325pu010   1 15/5/08   15:24:14 2 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Chairman’s statement
2007 was a year of significant progress for GoIndustry. Whilst Profit Before Tax under IFRS remained consistent with 
2006, the Group more than doubled its adjusted Profit Before Tax*, strengthened its balance sheet and, in early 2008 
completed the acquisition of DoveBid Inc. We now have the pre-eminent global market position in the used industrial 
equipment auction business, and have established a platform for robust profitable and cash generative growth, not just 
in 2008, but also for the foreseeable future. 
In the year ended 31 December 2007, the Group saw adjusted Profit Before Tax* grow by 134% to £652,000 (2006: 
£279,000), on Direct Profit of £17.8 million (2006: £19.3 million) and Gross Asset Sales of £96 million (2006: £102 
million). Adjusted Operating Profit* was £1.0 million (2006: £0.8 million). Adjusted Earnings per share* doubled to 0.2 
pence (2006: 0.1 pence). Reported Operating Loss under IFRS was £0.2m (2006: £0.02m), Loss Before Tax was £0.6 
million (2006: £0.6 million), and Loss per share was 0.3p (2006: 0.4p). The Group was operating cash flow positive.
In April 2007, the Company raised £6.6 million (net of expenses) through the placing of 40,000,000 new ordinary shares 
at 17p per share, to fund its plans to drive organic growth, particularly in the important North American market, expand 
its global reach by opening new sales offices in the European and Asia-Pacific regions, and develop a new global website, 
which will have improved functionality, enhanced ease of use and true multi-lingual capabilities. We used the remaining 
proceeds from the placing to further strengthen the Group’s Balance Sheet. 
The Group continues to focus on expanding its business organically through increased adoption of its online auction 
methodology. We launched a new type of online sale with the introduction of collective online “Exchanges”, which 
enable multiple sellers to consign similar equipment into the same online auction. These Exchanges enhance market 
liquidity, and provide a place where repeat buyers can come at regular intervals to acquire a choice of high quality used 
machinery & equipment. Exchanges were established in several asset classes during the year, and we expect, with the 
DoveBid acquisition, to capitalise further on this in 2008, as DoveBid has been pursuing a similar approach. 
In January 2007, we announced a significant brand initiative, which, by mid-year had resulted in the consolidation of all 
operating companies under the single “GoIndustry” brand and name, and the retirement of the Group’s legacy brands. 
This brand consolidation was well received by customers and employees demonstrating that the Group is unified in 
executing a single global strategy and is well positioned to integrate the newly acquired “DoveBid” brand in 2008.
We have continued to strengthen the management team during the year, with the addition of two key executives. In 
May, Christian McMahon joined as Chief Information Officer from Ovum Group plc, where he had been for the prior 8 
years, to lead the execution of the Company’s IT strategy and in particular the development of the new global website, 
which will be introduced during 2008. Additionally, Adrian Pang was hired during the final quarter of the year as Chief 
Executive, Asia-Pacific. Adrian, who is based in Hong Kong, was hired from Sun Microsystems, and has extensive 
experience of working in both the technology and financial services industries. Following excellent growth in the last few 
years in this region and the subsequent acquisition of DoveBid, Adrian’s local knowledge and experience will help take 
our Group to new heights. We are also joined now by Ross and Kirk Dove from DoveBid, who will bring many years of 
auction industry experience to the team.
On behalf of the Board and the shareholders I would like to thank the GoIndustry employees for their contribution 
during the year and welcome all the DoveBid employees to the Group. We are all excited about the future prospects 
for the business. Following the acquisition of DoveBid, the Group now operates in 22 countries and employs more than 
375 people. The acquisition brings many synergies and tremendous operating leverage, and we expect these to make a 
significant contribution to both earnings and long term growth of the combined business.
As announced earlier this year, I have decided to step down as Chairman of the Company with effect from the AGM in 
June. Neville Davis joined the Board as Deputy Chairman in January 2008, following many years as the Chief Executive 
of Compel Group plc, and will assume the role of Chairman. Neville is ideally placed to take the Group forward in 
conjunction with the other members of the Board, John Allbrook and his excellent management team. I look forward to 
continue serving on the Board as Senior Independent Director and Chairman of the Audit Committee.
With a strengthened balance sheet, a talented and committed workforce and a compelling business model, we believe 
that the Group is well placed to make strong progress in 2008.
David Bailey 
Non-Executive Chairman
* Adjusted Profit Before Tax, adjusted Operating Profit, and adjusted Earnings per share are before exceptional items and share based payments. www.goindustry.com GoIndustry plc annual report and accounts 2007 3 
 
Chief Executive’s review
2007 was another important year in the development of our Group, and following the acquisition of DoveBid we have the 
opportunity to accelerate revenue and earnings growth in 2008 and beyond.
Although we have made good progress in building more solid foundations for profitable growth over the last three years, 
the acquisition of DoveBid will certainly transform this business in 2008. Apart from the cost synergies, which we expect 
to be significant, it is the geographic and strategic fit that makes the deal compelling.
Let’s begin with geography. Although GoIndustry already had an established presence in North America, through 
the acquisition of Michael Fox International and Asset Trade in 2001, our direct profit from this pivotal region only 
represented 20% of our global direct profit. In a region that accounts, according to the Economist, for more than 25% 
of global manufacturing output, this left us with significant room to grow. However, identifying suitable sales people to 
hire and securing profitable new accounts has been difficult in an intensely competitive market. With the acquisition of 
DoveBid both challenges have been overcome in one fell swoop. DoveBid is not only the US market leader, but it also has 
long established relationships with many of the Fortune 500 and possesses arguably the best sales force in the industry. 
While DoveBid will enhance our presence in North America, GoIndustry’s market presence in the European and Asia-
Pacific regions will allow us to better serve DoveBid’s North American corporate customers in these markets. Despite 
DoveBid’s strength in North America, its ability to penetrate its corporate customers globally was compromised by its 
sub-scale operations in both the European and Asia-Pacific regions. 
The strategic fit of the two companies further underscores the attractiveness of this deal. After an initial series of 
acquisitions in 2000/2001, both companies embarked on converting a long established industry from physical, live 
auctions, which were often conducted for customers with one-off needs due to re-structuring or business failure, to web-
based sales conducted over the Internet for customers with needs that extended far beyond just factory closures. 
Over the last six years both companies have driven their business models online, such that in 2007 the enlarged group 
would have had 50% of its sales converted online had they merged a year earlier. Additionally, both companies have 
introduced new services for a growing number of multi-national customers, like Proctor & Gamble, Merck, Pfizer, Parker 
Hannifin and Dana. These services include ways of helping to reduce capital expenditure, sell smaller packages of 
surplus equipment, as well as introducing the Exchange concept, which enables multiple sellers to consign equipment 
into the same online auction. This enhances market liquidity and creates a regular sales event where repeat buyers can 
identify suitable high quality used equipment more easily, and now that the buyer databases of both companies have 
been merged, these Exchanges are set to become even more vibrant in 2008.
Additionally, both companies have well established Valuations Services practices, However, GoIndustry’s strength has 
historically been in Europe, while DoveBid’s has been in the US. The Company now has a leading global presence and 
many shared customers, from which to grow this attractive and profitable revenue stream.
Finally, it is the people that have made both companies what they are today. We are delighted to welcome all the 
DoveBid employees to the enlarged group. We have already built a strong team at GoIndustry, but we have now added 
both Ross and Kirk Dove to our global management team. In doing so we have introduced enormous industry experience 
as well as their undoubted leadership qualities. In fact at all levels of both companies we are blessed with a unique 
blend of asset and industry intelligence which will not only help us grow profitably in the future but also acts as a strong 
barrier to entry for those that wish to enter our market or play “catch-up”.
Our integration has been in full swing since the deal closed on 25 February. At the current time we are on-track to 
deliver our estimated cost savings in both 2008 and 2009. All necessary actions have been initiated with most of the 
employees that have either left or will be leaving the company in the near future. We have also made significant steps to 
integrate all our business processes, IT infrastructure and real estate. The outcome will be a unified company, operating 
under one name – “GoIndustry-DoveBid” - from an appropriate cost base. 
Many of the world’s major industrial economies are approaching a period of significant turbulence, traditionally a time 
when the volume of available surplus industrial machinery & equipment significantly increases. When you combine this 
with the already established trend for manufacturing to re-locate to lower cost countries at a time when the appetite for 
high quality used machinery & equipment is increasing in many of those countries, you have a convergence of market 
conditions that point strongly in our favour. 
Thanks to a committed Board and supportive shareholders, this Group is well positioned to deliver strong earnings 
growth in 2008 and beyond.
In conclusion, on behalf of the rest of the Board, all our staff and our shareholders, I would like to thank David Bailey 
for his enormous contribution to the Company as Chairman. It is not an overstatement to say that without him we would 
not be in the enviable position we are today.
John Allbrook 
Chief Executive 4 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Board of directors
David Bailey (59)
Non-executive Chairman
David Bailey was a stockbroker with Phillips and Drew for 18 years from 1970, specialising in equity and derivative 
markets. Since 1988, he has been a non-executive director of a number of public and private companies, including 
Appleyard Group plc, Hay & Robertson Group plc, Finsbury Asset Management Ltd and Sutherlands (Stockbrokers) Ltd. 
He is currently Deputy Non-executive Chairman of DataCash Group plc, the AIM listed payment service provider, and a 
Non-executive Director of Sport Media Group plc, the AIM listed multi-media publisher.
Neville Davis (52)
Deputy Non-executive Chairman
Neville Davis was formerly Chief Executive of the Compel Group plc, an IT solutions business, which was quoted for 12 
years prior to its sale in 2007. He held this position for over 20 years, growing the business from revenue of £5m (30 
employees) to £300m (1300 employees) and optimising performance in both good and difficult market conditions. He 
is a Chartered Accountant, qualifying with Deloitte in London. Neville is also Chairman of Bluefin Solutions Limited, a 
privately held IT solutions and consultancy company.
John Allbrook (46)
Chief Executive Officer
John Allbrook has been involved in equipment financing and asset management services for more than 15 years. He 
has extensive involvement and experience particularly in corporate and strategic planning, acquisitions and in growing 
businesses organically in a multi-cultural environment. He spent nine years at General Electric, during which time he was 
the Managing Director of GE - European Financing Solutions, and the Commercial Director of GE Commercial Finance – 
Fleet Services. 
David Horne (45)
Chief Financial Officer
David Horne was previously Group Finance Director of Huveaux PLC, the AIM listed media and publishing group. He has 
run his own consultancy practice and was formerly European Finance Director of BSMG Worldwide, the international PR 
agency. After qualifying as a Chartered Accountant with Price Waterhouse (now part of PricewaterhouseCoopers LLP) in 
Canada he moved with them to Zurich. He then held senior financial positions with AT&T in Zurich and London, and with 
the BBC. He is also a non-executive director and Chairman of the Audit Committee of The Centre International Limited, a 
privately held European public policy and communications enterprise.
David MacNamara (51)
Non-Executive Director
David MacNamara was a market maker for 25 years specialising in UK smaller companies. He was a director of NatWest 
Investment Bank and a founding director of Winterflood Securities, a wholly owned subsidiary of Close Brothers Group 
plc. Until his retirement in 2004 he was Joint Chief Executive of Winterflood Securities and an executive director of Close 
Brothers Group plc.
Kamal Advani (47)
Non-Executive Director
Kamal Advani is currently a Managing Director at Internet Capital Group, Inc. (NASDAQ: ICGE). In this capacity, Kamal 
holds directorships with Freeborders, Inc., Marketron International, Inc. and Qcorps Residential, Inc. Prior to this 
Kamal was with Advanta Corporation Inc. (NASDAQ: ADVNA) where he held several positions including Senior Vice 
President and Chief Financial Officer of Advanta Business Cards, a leading issuer of credit cards to small businesses. 
Earlier in his career, Kamal was a senior manager in the financial advisory services group at Coopers & Lybrand (now 
part of PricewaterhouseCoopers LLP), where he provided financial consulting services to a broad range of companies in 
connection with mergers, acquisitions, financing transactions and business reorganisations. www.goindustry.com GoIndustry plc annual report and accounts 2007 5 
 
Directors’ report
The results for the Group are shown on page 11 and show a loss for the year ended 31 December 2007 of £583,000 
before taxation (2006: £587,000). 
Principal activities
The principal activities of the Group are the provision of valuation services and the sale of used industrial machinery and 
equipment. 
Business review 
In addition to the commentary contained in the Chairman’s Statement and the Chief Executive’s Review, the directors set 
out their review of the business, below.
a) Risks and uncertainties
  GoIndustry operates in a market where deals are awarded on an individual basis. Although the strength of our 
relationships often mean that customers award deals to GoIndustry on a regular basis, there are few guaranteed 
revenue streams and it is difficult to forecast the business results more than a few months into the future. 
Additionally, the impact of major auction sales can be significant on the Group’s results, although the development 
of our Exchange auctions has helped to mitigate this risk.
  An increasing portion of GoIndustry’s Gross Asset Sales and Direct Profit is derived using our IT infrastructure 
and the Internet. Any downtime in either of these can disrupt sales in mid-auction and undermine buyer 
confidence. Short-term service interruptions can affect sales realisations on individual jobs, whilst long-term service 
interruptions would materially affect the financial results of the Group.
  One of GoIndustry’s competitive advantages is its database of potential buyers located in over 200 countries 
around the world. Guidelines and regulations about marketing practices and data protection laws vary from country 
to country and can change at short notice. Substantial changes may prohibit us from direct marketing or increase 
the risk of lawsuits.
  There are a number of other organisations that offer similar services to those of GoIndustry. Such organisations 
may be larger, better funded or operate with a lower cost base than GoIndustry. Aggressive competition from such 
organisations could have a negative impact on the financial performance of the Group.
  There are always risks associated with major acquisitions, such as that of DoveBid Inc. However, the board and 
members of the management team have extensive experience in acquisitions and the subsequent integration into 
the enlarged business. The board has approved the integration plans and monitors progress against these plans 
closely. As discussed in the Chief Executive’s review, the integration is currently proceeding in line with those plans.
b) Key performance indicators (KPIs)
  The Group measures and monitors a number of performance ratios and statistics, the most important of which are 
Gross Asset Sales (GAS), Direct Profit and Profit Before Tax.
  Gross Asset Sales (GAS) is the sum of the prices of all assets sold at auction or in a negotiated sale. Total GAS in 
the year was £98 million (2005: £102 million). The development of online sales is critical to the future success of 
the Group, and in 2007 we increased the share of GAS sold online from 36% to 37%. 
  Direct Profit represents the gross profit on our jobs before administrative expenses. This is the revenue target that 
is used for measuring the performance and growth in each of our business units. Direct Profit is used rather than 
Gross Revenue as reported on the Income Statement, because the latter can be skewed from one year to the next 
depending on the volume of principal transactions undertaken. Additionally, the Direct Profit margin (as a % of 
GAS) shows the profit margin of executing on our auction sales. In each of our three revenue streams, Direct Profit 
is measured as follows:
 i.  Commission sales – Where GoIndustry acts as agent and sells equipment on behalf of a seller, Direct Profit 
represents the sum of the buyer’s premium, seller’s commission and expenses billed to the seller, less the cost 
of expenses incurred and any commissions paid to third parties.
 ii.  Principal sales – In certain circumstances GoIndustry acts as principal, either purchasing the equipment for 
sale outright or guaranteeing a minimum price to the seller; this is explained further under sub-section (d) 
of the Business review, below. In the event of a purchase deal, Direct Profit represents the sum of GAS on 
the job and buyer’s premium, less the cost of the assets purchased, expenses incurred and any commissions 
paid to third parties. In the event of a guarantee deal, Direct Profit represents the sum of GAS on the job and 
buyer’s premium, less the guaranteed value of the assets, the seller’s share of any upside realised above the 
guarantee, expenses incurred and any commissions paid to third parties. In both cases, should GAS on the 
job fall below the purchase or guarantee amount then it will be deducted from the buyer’s premium; if GAS is 
significantly lower we record this as a loss against Direct Profit. 6 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Directors’ report continued
 iii.  Professional services – Where GoIndustry provides professional services to its customers, Direct Profit 
represents the professional fees and expenses billed, less the cost of expenses incurred and any commissions 
paid to third parties.
  Direct Profit declined by 8% to £17.8 million (2005: £19.3 million) and the Direct Profit margin as a percentage of 
GAS was 18.2% (2005: 18.9%).
  Our key performance indicator for profitability is adjusted pre-tax profit (i.e. excluding the impact of exceptional 
items and share-based payments). In 2007, the Group increased adjusted pre-tax profit by 134% to £652,000 
(2006: £279,000). As the Group continues to grow and develop, we will be tracking the adjusted pre-tax profit 
margin as a percentage of Direct Profit; in 2007 the margin was 3.7% (2006: 1.4%). Growth in this margin will 
reflect the achievement of operational gearing in the business. 
c) Future developments
  The shifting of industrial production from developed western economies to China, India and the emerging 
economies of Eastern Europe is set to continue for many years. Data published by The Economist shows that 25% 
of global manufacturing output is still produced in North America, and the major economies of the European Union 
follow close behind.
  Growing acceptance of the internet as a medium for transacting business around the world will also play a 
significant part in the future growth of the Group. Up to the end of 2004, the largest lot sold online by GoIndustry 
was valued at less than £100,000. In 2005 the Group sold an Annealing and Pickling Line used in the steel industry 
online for £1.2 million, and in 2006 a complete textile production line was sold online for £2 million (US$3.9 
million). In addition to sales of these “big ticket” items online, the Group’s Exchange auctions are set to be a key 
engine for future growth. 
d) Principal deals
  In certain circumstances, the Group will take a principal position in assets that are being offered for sale, either by 
buying them from the seller outright or by guaranteeing a minimum sale price to the seller. The Group will then sell 
those assets on its own account and recognise the full financial impact from that transaction. 
  This represents an additional risk that the Group takes on, in return for the expectation of a higher profit. 
GoIndustry’s ability to bid for and win principal deals is predicated on continued access to credit facilities. In order 
to control the risks and protect the Group from downside exposure, all principal transactions require the approval 
of an investment committee, and transactions above a pre-set amount require the approval of GoIndustry’s 
Global Investment Committee, which is made up of both equipment experts from across the Group and business 
professionals.
  The expertise of our valuers and appraisers is critical to the success of the Group when assessing whether to take 
a principal position. Our global valuation database is a key resource, in addition to the knowledge of the assets and 
the global markets for disposing of those assets held by our valuers and appraisers.
Directors 
The following were directors of the Company during the financial year under review and up to the date of signing these 
financial statements:
David Bailey    
Neville Davis  Appointed on 7 January 2008  
Kamal Advani    
John Allbrook    
David MacNamara    
David Horne
Directors’ interests
On the dates given, the interests of directors and their beneficial interests in the issued ordinary shares of the Company 
were as follows:
Number of shares As at 31 December 2007 As at 31 December 2006
David Bailey 885,000 885,000
John Allbrook 778,920 697,705
David MacNamara 1,787,157 1,689,520
David Horne 440,000 440,000 www.goindustry.com GoIndustry plc annual report and accounts 2007 7 
 
 
Subsequent to year-end, as part of the placing to finance the acquisition of DoveBid, several directors acquired additional 
ordinary shares of the company. As at the date of this report their holdings were:
Number of shares
David Bailey    1,635,000
Neville Davis    500,000
John Allbrook    1,128,920
David MacNamara    2,787,157
David Horne    790,000
Options over ordinary shares
 At 31 At 31
 December December Exercise Date from which
Number of options 2006 2007 price exerciseable Expiry date
David Bailey 750,000 750,000 10p 1 April 2005 6 April 2012
John Allbrook – 4,476,322 5p 19 July 2007 10yrs following end of service
  1,000,000 5p 19 July 2007 180 days following end of service
David Horne – 1,000,000 18p Vesting evenly 18 July 2017
    between 1 June 2009
    and 1 June 2012
Substantial shareholdings
The following individual shareholdings, other than directors, represented 3% or more of the issued share capital of the 
Company as at 14 May 2007:
ICG Holdings, Inc.     28.6%
Atlas Venture Fund IV LP (and related funds)    15.1%
Fidelity International Limited    12.9%
HBOS plc    8.2%
Axa Investment Managers Limited    5.1%
Ashford Capital Management, Inc    4.4%
Corporate governance
The Company is listed on the AIM market and is therefore not required to comply with the provisions of the Combined 
Code. However, the Board is committed to ensuring that proper standards of corporate governance operate and has 
established governance procedures and policies that are considered appropriate to the nature and size of the Group. 
The Board considers that at this stage in the Company’s development, the expense of full compliance with the Combined 
Code is not appropriate although it intends, as the Company grows, to ensure that it observes the provisions of the 
Code, so far as is practicable.
The directors are responsible for the Group’s and the Company’s system of internal financial control, safeguarding the 
assets of the Group and the Company and for taking reasonable steps for the prevention and detection of fraud and 
other irregularities. In carrying out their responsibilities the directors have put in place a framework of controls to ensure 
ongoing financial performance is monitored in a timely and corrective manner and risk is identified as early as practicably 
possible. Clear lines of authority, responsibility and financial accounting exist between the relevant heads of department 
and the directors. The directors have reviewed the effectiveness of the system of internal control. Such a system can 
only provide reasonable and not absolute assurance against material misstatement or loss.
The Audit Committee is comprised of David Bailey, Neville Davis, Kamal Advani and David MacNamara, and is chaired by 
David Bailey. The committee meets not less than three times annually and provides a link between the board and the 
Group’s auditors on matters falling within the scope of the Group’s audit. These matters include accounting standards 
and policies, internal financial control procedures and the Group’s financial statutory reports, which are intended for 
publication. A formal statement of independence is received from the external auditors each year.
The Remuneration Committee consists of David Bailey, Neville Davis, Kamal Advani and David MacNamara and is chaired 
by Neville Davis. The Remuneration Committee takes the following into account in determining the salaries and benefits 
of executive directors:
l
  The need to pay salaries comparable to those of competitor companies
l
  The provision of related benefits which include medical insurance and insurance related to the directors’ duties 8 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Directors’ report continued
l
  The need to link individuals to the long-term success of the Group through the award of share options with 
amounts allocated determined by importance of the role and performance of the executive concerned
l
  The use of a profit-related incentive scheme to reward individual contribution to attainment of profit targets
The board reviews the salaries and benefits of executive directors each year by considering the recommendations of the 
Remuneration Committee and having regard to personal performance, affordability and comparable pay levels in the 
market.
Going concern 
The directors are of the opinion that at the time of approving the financial statements, the Company and the Group as 
a whole have adequate resources to continue in operational existence for the foreseeable future. For this reason, they 
continue to adopt the going concern basis in preparing the financial statements.
Dialogue with shareholders 
The Company reports formally to shareholders twice a year, when its half-year and full-year results are announced; 
an Interim Report is made available on our website and an Annual Report is sent to shareholders. The Annual Report 
includes notice of the Annual General Meeting of the Company at which a presentation is given and the directors are 
available to take questions both formally during the meeting and informally after the meeting. Management is available 
for dialogue with major shareholders on the Company’s plans and objectives and meets with them periodically.
Political and charitable contributions
During the year, the Company and its subsidiaries made charitable contributions of £7,000 (2006: £15,000). The 
Company and its subsidiaries made no political contributions during the year (2006: nil). 
Creditor payment policy
The Group agrees the terms and conditions under which business transactions with suppliers are conducted. It complies 
with these payment terms, provided that it is satisfied that the supplier has provided the goods or services in accordance 
with agreed terms and conditions. The average number of days group companies take to pay suppliers, based on trade 
creditors as at 31 December 2007 is 58 (2006: 67).
Financial instruments
Note 3 to the group financial statements sets out the risk in respect of financial instruments. The Board reviews and 
agrees overall treasury policies, delegating appropriate authority to the Chief Executive and Chief Financial Officer. 
Financial instruments are used to manage the financial risks facing the group – speculative transactions are not 
permitted. Treasury operations are reported at each Board meeting and are subject to weekly internal reporting.
Statement as to disclosure of information to auditors
The directors who were in office on the date of approval of these financial statements have confirmed, that, as far as 
they are aware, there is no relevant audit information of which the auditors are unaware. Each of the directors have 
confirmed that they have taken all the steps that they ought to have taken as directors in order to make themselves 
aware of any relevant audit information and to establish that it has been communicated to the auditor.
Statement of directors’ responsibilities 
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable 
law and regulations.
UK Company law requires the directors to prepare Group and Company Financial Statements for each financial year.  
Under that law the directors are required to prepare Group financial statements in accordance with International 
Financial Reporting Standards (“IFRS”) as adopted by the EU and have elected to prepare the Company financial 
statements in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the EU.
The Group financial statements are required by law and IFRS adopted by the EU to present fairly the financial position 
and performance of the Group; the Companies Act 1985 provides in relation to such financial statements that references 
in the relevant part of that Act to financial statements giving a true and fair view are references to their achieving a fair 
presentation.
The Company financial statements are required by law to give a true and fair view of the state of affairs of the Company. 
In preparing each of the Group and Company financial statements, the directors are required to:
a. select suitable accounting policies and then apply them consistently;
b. make judgements and estimates that are reasonable and prudent; www.goindustry.com GoIndustry plc annual report and accounts 2007 9 
 
 
c. state whether they have been prepared in accordance with IFRSs adopted by the EU;
d.  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 
and the Company will continue in business.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any 
time the financial position of the Company and to enable them to ensure that the financial statements comply with the 
requirements of the Companies Act 1985.  They are also responsible for safeguarding the assets of the Group and hence 
for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are also responsible for the maintenance and integrity of the GoIndustry plc website. Legislation in the 
United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other 
jurisdictions.
Auditors 
Baker Tilly UK Audit LLP were appointed auditors of the company on 1 April 2007 in accordance with the provisions 
of the Companies Act 1989, s26(5).  Baker Tilly UK Audit LLP has indicated its willingness to continue in office, and a 
resolution proposing their reappointment will be presented at the Annual General Meeting.
By order of the Board.
MSP Secretaries 
Company Secretary
16 May 2008 10 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Independent auditor’s report
We have audited the group and parent company financial statements on pages 11 to 44.
This report is made solely to the company’s members, as a body, in accordance with section 235 of the Companies Act 
1985.  Our audit work has been undertaken so that we might state to the company’s members those matters we are 
required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do 
not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our 
audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the Annual Report and the financial statements in accordance with applicable 
law and International Financial Reporting Standards (IFRSs) as adopted by the European Union (“EU”) are set out in the 
Statement of Directors’ Responsibilities. 
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and 
International Standards on Auditing (UK and Ireland). 
We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial 
statements have been properly prepared in accordance with the Companies Act 1985.  We also report to you whether 
in our opinion the information given in the Directors’ Report is consistent with the financial statements. The information 
given in the Directors’ Report includes that specific information presented in the Chairman’s Statement and the Chief 
Executive’s review that is cross referenced from the business review section of the Directors’ Report.
In addition we report to you, if in our opinion, the company has not kept proper accounting records, if we have not 
received all the information and explanations we require for our audit, or if information specified by law regarding 
Directors’ remuneration and other transactions is not disclosed.
We read other information contained in the Annual Report and consider whether it is consistent with the audited financial 
statements.  The other information comprises only the Directors’ Report, Chairman’s Statement and the Chief Executive’s 
Review. We consider the implications for our report if we become aware of any apparent misstatements or material 
inconsistencies with the financial statements. Our responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing 
Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures 
in the financial statements. It also includes an assessment of the significant estimates and judgements made by the 
directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the 
group’s and company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary 
in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from 
material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated 
the overall adequacy of the presentation of information in the financial statements.
Opinion
In our opinion:
	 l
  the group financial statements give a true and fair view, in accordance with IFRSs as adopted by the European 
Union, as applied in accordance with the provisions of the Companies Act 1985, of the state of the group’s 
affairs as at 31 December 2007 and of its loss for the year then ended;
	 l
  the parent company financial statements give a true and fair view, in accordance with IFRSs as adopted by the 
European Union as applied in accordance with the provisions of the Companies Act 1985, of the state of the 
parent company’s affairs as at 31 December 2007;
 
l
  the financial statements have been properly prepared in accordance with the Companies Act; and
 
l
  the information given in the Directors’ Report is consistent with the financial statements. 
BAKER TILLY UK AUDIT LLP  
Registered Auditor
Chartered Accountants 
2 Bloomsbury Street 
London WC1B 3ST
16 May 2008 www.goindustry.com GoIndustry plc annual report and accounts 2007 11 
 
Consolidated income statement
For the year ended 31 December 2007
     2007    2006 
      Before   
      except-   
      ional   
  Before    items   
  except- Except-   and Except-  
  ional  ional   equity ional  
  items  charges   settled charges  
  and  arising Equity  share arising  
  equity  from settled  based from Equity 
  settled  reorgan- share  payments reorgan- settled Total
  share  isation based  (restated isation share (restated
  based  costs pay-  see costs based see
In thousands of pounds Note payments (note 6) ments Total note 2) (note 6) payments note 2)
Revenue  5 29,105 — — 29,105 34,141 —  —  34,141
Cost of sales  (11,333) — — (11,333) (14,889) —  —  (14,889)
Direct profit  17,772 — — 17,772 19,252 —  —  19,252
Administrative expenses  (16,749) (369) (866) (17,984) (18,406) (349) (517) (19,272)
Operating profit/(loss) 7 1,023 (369) (866) (212) 846 (349) (517) (20)
Finance costs
Interest income 10 405 — — 405 199 —  —  199
Interest expense 10 (776) — — (776) (766) —  —  (766)
Profit/(loss) before  
   income tax   652 (369) (866) (583) 279 (349) (517) (587)
Income tax expense 11 (233) — — (233) (56) —  —  (56)
Profit/(loss) for the year  419 (369) (866) (816) 223 (349) (517) (643)
Attributable to:
Equity holders of the company     (795)    (700)
Minority interests     (21)    57
       (816)    (643)
Loss per share for loss attributable to equity holders of the company during the year (expressed in pence per 
share)
Basic   12    (0.3p)    (0.4p)
Diluted  12    (0.3p)    (0.4p)
The notes on pages 15 to 37 are an integral part of these consolidated financial statements. 12 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Consolidated statement of recognised income and expense
For the year ended 31 December 2007
In thousands of pounds   2007 2006
   (restated  
  Note see note 2)
Exchange losses on translation of foreign subsidiaries   (53) (680)
Actuarial (losses)/gains on defined benefit pension scheme  20 (226) 1,545
Net (expense)/income recognised directly in equity   (279) 865
Loss for the year   (816) (643)
Total recognised income and expense for the year   (1,095) 222
Attributable to
Equity holders of the company   (1,089) 184
Minority interest   (6) 38
   (1,095) 222
The notes on pages 15 to 37 are an integral part of these consolidated financial statements.  www.goindustry.com GoIndustry plc annual report and accounts 2007 13 
 
Consolidated balance sheet
As at 31 December 2007
In thousands of pounds  Note 2007 2006
Non-current assets
Property, plant and equipment  13 1,158 929
Intangible assets  14 25,066 24,935
   26,224 25,864
Current assets
Inventories   888 1,083
Trade and other receivables  15 10,002 9,229
Cash and cash equivalents  16 9,949 5,235
   20,839 15,547
Total assets   47,063 41,411
Current liabilities
Trade and other payables  17 9,590 9,115
Provisions  18 —  138
Borrowings  19 3,092 3,913
   12,682 13,166
Non-current liabilities
Borrowings  19 —  88
Convertible loan notes  19 2,990 2,990
Retirement benefit obligations  20 3,519 3,574
   6,509 6,652
Total liabilities   19,191 19,818
Net assets   27,872 21,593
Equity
Ordinary shares  21 13,250 9,957
Share premium  21 9,578 4,962
Shares to be issued  21 —  1,266
Own shares held in trust  22 (1,042) (1,045)
Other reserves  23 47,991 47,261
Accumulated losses  24 (41,989) (40,968)
Capital and reserves attributable to equity holders of the company  27,788 21,433
Minority interests   84 160
Total equity    27,872 21,593
The notes on pages 15 to 37 are an integral part of these consolidated financial statements. 
The financial statements were approved by the board of directors and authorised for issue on 16 May 2008.  They were 
signed on its behalf by: 
John Allbrook David Horne
Chief Executive Officer Chief Financial Officer 14 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Consolidated cash flow statement
For the year ended 31 December 2007
In thousands of pounds   2007 2006
   (restated 
    see note 2)
Cash flows from operating activities
Loss before income tax    (583) (587)
Adjustments for:
Depreciation and amortisation    265 283
Net interest expense   371 567
Share based payments   866 517
Net retirement benefit cost   126 193
Changes in working capital:
Decrease in inventories   195 388
Increase in accounts receivable   (773) (2,211)
Increase in accounts payable   391 1,073
Decrease in provisions   (548) (1,073)
Operating cash flows before interest and taxes   310 (850)
Interest paid   (776) (766)
Income and corporation taxes paid   (170) (72)
Interest received    405 199
Net cash used in operating activities   (231) (1,489)
Cash flows from investing activities
Purchases of property, plant and equipment   (432) (245)
Purchases of intangible assets   (153) (180)
Net cash used in investing activities   (585) (425)
Cash flows from financing activities
Proceeds on issue of shares   6,577 2,100
Proceeds on issue of convertible loan notes   — 2,990
Decrease in bank loans and overdrafts   (846) (2,343)
Repayment of mortgage   (63) (101)
Subsidiary company dividend paid to minority shareholder   (71) — 
Net cash from financing activities   5,597 2,646
Net increase in cash and cash equivalents   4,781 732
Cash and cash equivalents at beginning of year   5,235 5,164
Effect of foreign exchange rate changes   (67) (661)
Cash and cash equivalents at end of year   9,949 5,235
The notes on pages 15 to 37 are an integral part of these consolidated financial statements.   www.goindustry.com GoIndustry plc annual report and accounts 2007 15 
 
Notes to the consolidated financial statements
For the year ended 31 December 2007
1. General information
GoIndustry plc (‘the company’) and its subsidiaries (together ‘the group’) is a global market leader in the valuation and 
sale of surplus industrial assets. The group has offices in locations across Europe, North America, and Asia.
The company is a public limited company incorporated and domiciled in the United Kingdom. The address of its 
registered office is New London Bridge House, 25 London Bridge Street, London, SE1 9BQ.
The company is listed on the Alternative Investment Market (AIM) of the London Stock Exchange.
2. Summary of significant accounting policies
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. 
These policies have been consistently applied to all of the years presented unless otherwise stated.
Basis of preparation
These consolidated financial statements include the accounts of GoIndustry plc and all of its subsidiaries made up to 31 
December each year.
As required by the AIM rules, the consolidated financial statements have been prepared in accordance with International 
Financial Reporting Standards (‘IFRS’) adopted for use in the EU as at 31 December 2007 (‘adopted IFRS’).
The financial statements are presented in Sterling, rounded to the nearest thousand, and have been prepared on a 
historical cost basis.
In order that the financial statements may present to a greater degree of clarity the impact of defined benefit pension 
obligations on the consolidated result, the directors have taken advantage of the option available under the revision 
to IAS 19 to recognise the actuarial gain or loss on the scheme liability outside the income statement in the statement 
of total recognised income and expense. This change in accounting policy has required a restatement of the income 
statement for the year ended 31 December 2006 to show actuarial gains of £1,545 thousand as a movement in 
accumulated losses in the statement of total recognised income and expense. The interest expense on the defined 
benefit liability of £625 thousand and the expected return on plan assets of £453 thousand for the year ended 31 
December 2006 have also been reclassified from finance costs into administrative expenses.
The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates. 
It also requires management to exercise its judgment in the process of applying the group’s accounting policies. The 
areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to 
the consolidated financial statements are disclosed in note 4.
(a) Standards, amendment and interpretations effective in 2007
	 l
  IFRS 7, ‘Financial instruments: disclosures’, and the complementary amendment to IAS 1, ‘Presentation of 
financial statements – capital disclosures’, introduce new disclosures relating to financial instruments and do 
not have any impact on the classification and valuation of the group’s financial instruments.
	 l
  IFRIC 8, ‘Scope of IFRS 2’, requires consideration of transactions involving the issuance of equity instruments, 
where the identifiable consideration received is less than the fair value of the equity instruments issued in 
order to establish whether or not they fall within the scope of IFRS 2. This standard does not have any impact 
on the group’s financial statements.
 
l
  IFRIC 10, ‘Interim financial reporting and impairment’, prohibits the impairment losses recognised in an 
interim period on goodwill and investments in equity instruments and in financial assets carried at cost to be 
reversed at a subsequent balance sheet date. This standard does not have any impact on the group’s financial 
statements.
(b) Standards, amendments and interpretations effective in 2007 but not relevant
The following standards, amendments and interpretations to published standards are mandatory for accounting periods 
beginning on or after 1 January 2007 but are not relevant to the group:
	 l
  IFRIC 7, ‘Applying the restatement approach under IAS 29, financial reporting in hyper—inflationary 
economies’; and
	 l
  IFRIC 9 ‘Re-assessment of embedded derivatives’. 16 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Notes to the consolidated financial statements continued
For the year ended 31 December 2007
(c)  Standards, amendments and interpretations to existing standards that are not yet effective and have not been early 
adopted by the group
The following standards, amendments and interpretations to existing standards have been published and are mandatory 
for the group’s accounting periods beginning on or after 1 January 2008 or later periods, but the group has not early 
adopted them:
	 l
  IAS 1 (amendment), ‘Presentation of financial statements’ (effective from 1 January 2009). The amendment 
to the standard requires substantial changes to the presentation of the primary statements. The amendment 
has not yet been endorsed by the European Union. Subject to its endorsement the group will apply IAS 1 
(amended) from 1 January 2009.
	 l
  IAS 23 (amendment), ‘Borrowing costs’ (effective from 1 January 2009). The amendment to the standard is 
still subject to endorsement by the European Union. It requires an entity to capitalise borrowing costs directly 
attributable to the acquisition, construction or production of a qualifying asset (one that takes a significant 
period of time to get ready for use or sale) as part of the cost of the asset. The option of immediately 
expensing those borrowing costs will be removed. Subject to its endorsement by the European Union the 
group will apply IAS 23 (amended) from 1 January 2009.
	 l
  IAS 32 (amendment), ‘Financial instruments: Presentation’ (effective from 1 January 2009). An amendment 
has been made to the standard relating to puttable instruments and obligations arising on liquidation. The 
amendment has not yet been endorsed by the European Union. Subject to its endorsement the group will 
apply IAS 32 (amended) from 1 January 2009.
	 l
  IFRS 3 (amendment), ‘Business combinations’ (effective from 1 July 2009), and consequential amendments 
to IAS 27, ‘Consolidated and separate financial statements’, IAS 28, ‘Investments in associates’, and IAS 31 
‘Interests in Joint Ventures. The amendment to IFRS 3 revises the application of the acquisition method of 
accounting for business combinations. The amendment has not yet been endorsed by the European Union. 
Subject to its endorsement the group will adopt IFRS 3 (amendment) from 1 July 2009.
	 l
  IFRS 8, ‘Operating segments’ (effective from 1 January 2009). IFRS 8 replaces IAS 14 and aligns segment 
reporting with the requirements of the US standard SFAS 131, ‘Disclosures about segments of an enterprise 
and related information’. The new standard requires a ‘management approach’, under which segment 
information is presented on the same basis as that used for internal reporting purposes. The group will apply 
IFRS 8 from 1 January 2009. The expected impact is still being assessed in detail by management, but it 
appears likely that the number of reportable segments, as well as the manner in which the segments are 
reported, will change in a manner that is consistent with the internal reporting provided to the chief operating 
decision maker. As goodwill is allocated to groups of cash-generating units based on segment level, the change 
will also require management to reallocate goodwill to the newly identified operating segments. Management 
does not anticipate that this will result in any material impairment to the goodwill balance.
	 l
  IFRIC 11, ‘Group and treasury share transactions’ (effective from 1 January 2008). IFRIC 11 provides further 
clarification on the treatment of certain share based payment transactions. It identifies whether a transaction 
is equity or cash settled where the shares involved are transferred by a third party as well as giving guidance 
on the treatment in the accounts of a subsidiary where its parent directly makes share based payments to the 
employees of the subsidiary. The group will apply IFRIC 11 from 1 January 2008, but it is not expected to have 
any impact on the group’s financial statements.
	 l
  IFRIC 14, ‘IAS 19 – the limit on a defined benefit asset, minimum funding requirements and their interaction’ 
(effective from 1 January 2008). IFRIC 14 provides guidance on assessing the limit in IAS 19 on the amount of 
a surplus that can be recognised as an asset. It also explains how the pension asset of liability may be affected 
by a statutory or contractual minimum funding requirement. The interpretation has not yet been endorsed by 
the European Union. Subject to its endorsement by the European Union the group will apply IFRIC 14 from 1 
January 2008, but it is not expected to have any impact on the group’s financial statements.
(d) Interpretations to existing standards that are not yet effective and not relevant for the group:
The following interpretations to existing standards have been published and are mandatory for the group’s accounting 
periods beginning on or after 1 January 2008 or later but are not relevant to the group:
	 l
  IFRIC 12, ‘Service concession arrangements’ (effective from 1 January 2008). IFRIC 12 applies to contractual 
arrangements whereby a private sector operator participates in the development, financing, operation and 
maintenance of infrastructure for public sector services. The interpretation has not yet been endorsed by the 
European Union and is not relevant to the group because none of the group’s companies provide public sector 
services.
	 l
  IFRIC 13, ‘Customer loyalty programmes’ (effective from 1 July 2008). IFRIC 13 clarifies that where goods 
or services are sold together with a customer loyalty incentive (for example, loyalty points or free products), 
the arrangement is a multiple-element arrangement and the consideration receivable from the customer is  www.goindustry.com GoIndustry plc annual report and accounts 2007 17 
 
allocated between the components of the arrangement using fair values. The interpretation has not yet been 
endorsed by the European Union and is not relevant to the group because none of the group’s companies 
operate any loyalty programmes.
Consolidation 
Subsidiaries are all entities over which the group has the power to govern the financial and operating policies generally 
accompanying a shareholding of more than one half of the voting rights. Subsidiaries are fully consolidated from the date 
on which control is transferred to the group. They are de-consolidated from the date that control ceases. 
The purchase method of accounting is used to account for the acquisition of subsidiaries by the group. The cost of an 
acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed 
at the date of exchange, plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities and 
contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, 
irrespective of the extent of any minority interest. The excess of the cost of acquisition over the fair value of the group’s 
share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of 
the net assets of the subsidiary acquired, the difference is recognised directly in the income statement.
Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. 
Unrealised losses are also eliminated but considered an impairment indicator of the asset transferred. Accounting policies 
of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. 
Segment reporting 
A business segment is a group of assets and operations engaged in providing products or services that are subject to 
risks and returns that are different from those of other business segments. The group presents segmental analysis by 
geography and class of business. The primary segmentation is geographical. Each geographical segment is engaged in 
providing products or services within a particular economic environment that are subject to risks and returns that are 
different from those of segments operating in other economic environments. Assets and liabilities are allocated according 
to their physical location. A business segment is a component of the group that is engaged in providing related products 
and services and is subject to risks and returns that are different from those of other business segments.
Foreign currency translation 
(a) Functional and presentation currency 
  Items included in the financial statements of each of the group’s entities are measured using the currency of the 
primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial 
statements are presented in ‘Sterling’ (‘£’), which is the company’s functional and presentation currency. 
(b) Transactions and balances 
  Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the 
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions 
and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign 
currencies are recognised in the income statement.
(c) Group companies 
  The results and financial position of all the group entities (none of which has the currency of a hyper—inflationary 
economy) that have a functional currency different from the presentation currency are translated into the 
presentation currency as follows: 
  assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance 
sheet; income and expenses for each income statement are translated at average exchange rates (unless this 
average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, 
in which case income and expenses are translated at the rate on the dates of the transactions); and all resulting 
exchange differences are recognised as a separate component of equity. 
  On consolidation, exchange differences arising from the translation of the net investment in foreign operations, and 
of borrowings are taken to shareholders’ equity. When a foreign operation is partially disposed of or sold, exchange 
differences that were recorded in equity are recognised in the income statement as part of the gain or loss on sale. 
  Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities 
of the foreign entity and translated at the closing rate. 
Revenue recognition 
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the 
ordinary course of the group’s activities. Revenue is shown net of value—added tax, returns, rebates and discounts.  18 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Notes to the consolidated financial statements continued
For the year ended 31 December 2007
The primary business of the Group is the provision of services associated with the valuation and sale of used industrial 
equipment. In such circumstances group companies act as an agent on behalf of their clients, and revenues represent 
commissions or fees charged to clients in connection with the provision of these services. Group companies may also 
take a position as a principal whereby they purchase and sell equipment on their own behalf. On these occasions 
revenues represent the percentage ownership of the value of the equipment being sold with the cost of such equipment 
being reported within inventory at the time of purchase and as cost of sales at the time of sale. 
Revenue is recognised when it is probable that the economic benefits will flow to the Group, when the revenues and 
associated costs can be reliably measured and when the stage of completion of the transaction at the balance sheet 
date can also be reliably measured. In addition in the case of principal sales of equipment the group company must have 
transferred to the buyer the significant risks and rewards of ownership of those goods, and must retain no significant 
managerial involvement with, nor control over, those goods.
In the case of agency sales a buyer will usually be identified, the sale price agreed and the buyer invoiced on behalf of 
the client before the Group invoices the client. Accrued income receivable represents an accrual for such work completed 
on behalf of clients but not yet invoiced to the client. Accruals are estimated based on the expected proceeds from the 
sale of client owned equipment, agreed commission rates and other contractual terms. 
Employee benefits 
(a) Pension obligations 
  The group has both defined benefit and defined contribution plans. A defined contribution plan is a pension plan 
under which the group pays fixed contributions into a separate entity. The group has no legal or constructive 
obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits 
relating to employee service in the current and prior periods. A defined benefit plan is a pension plan that is not a 
defined contribution plan. Typically defined benefit plans define an amount of pension benefit that an employee will 
receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.
  The defined benefit plan, the Henry Butcher Pension and Life Assurance Scheme, is operated by GoIndustry UK 
Limited. GoIndustry UK Limited is obliged to make sufficient contributions to an externally administered fund in 
order to satisfy future pension obligations. The Scheme was closed to new members with effect from 1 January 
2002, and with effect from 31 December 2004 accrual of benefits in the Scheme ceased and active members 
contributed to a defined contribution scheme. The liability recognised in the balance sheet in respect of the defined 
benefit scheme is the present value of the defined benefit obligation at the balance sheet date less the fair value 
of plan assets, together with adjustments for unrecognised past-service costs. The defined benefit obligation is 
calculated annually by independent actuaries using the projected unit credit method. The present value of the 
defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of 
high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have 
terms to maturity approximating to the terms of the related pension liability. 
  Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged 
or credited to equity in the statement of recognised income and expense (SoRIE) in the period in which they arise.
  For defined contribution plans, the group pays contributions to publicly or privately administered pension insurance 
plans on a mandatory, contractual or voluntary basis. The group has no further payment obligations once the 
contributions have been paid. The contributions are recognised as employee benefit expense when they are due. 
Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future 
payments is available.
(b) Share-based compensation 
  The group operates a number of equity-settled, share-based compensation plans. The fair value of the employee 
services received in exchange for the grant of the options is recognised as an expense. The total amount to be 
expensed over the vesting period is determined by reference to the fair value of the options granted, excluding 
the impact of any non-market vesting conditions (for example, profitability and sales growth targets). Non-
market vesting conditions are included in assumptions about the number of options that are expected to vest. At 
each balance sheet date, the entity revises its estimates of the number of options that are expected to vest. It 
recognises the impact of the revision to original estimates, if any, in the income statement, with a corresponding 
adjustment to equity.
  The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal 
value) and share premium when the options are exercised. 
Leases 
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as 
operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to 
the income statement on a straight-line basis over the period of the lease.  www.goindustry.com GoIndustry plc annual report and accounts 2007 19 
 
Current and deferred income tax 
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance 
sheet date in the countries where the company’s subsidiaries and associates operate and generate taxable income. 
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax 
regulation is subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to 
be paid to the tax authorities. 
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax 
bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred 
income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a 
business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred 
income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance 
sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax 
liability is settled. 
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available 
against which the temporary differences can be utilised. 
Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except 
where the timing of the reversal of the temporary difference is controlled by the group and it is probable that the 
temporary difference will not reverse in the foreseeable future. 
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and 
associates, and interests in joint ventures, except where the group is able to control the reversal of the temporary 
difference and it is probable that the temporary difference will not reverse in the foreseeable future.
Property, plant and equipment 
All property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is 
directly attributable to the acquisition of the items. 
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only 
when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item 
can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial 
period in which they are incurred. 
Depreciation is calculated using the straight-line method to allocate their cost to their residual values over their estimated 
useful lives, as follows: 
Buildings  Period of lease 
Vehicles  4 years 
Furniture, fittings and equipment  3 years 
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. 
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is 
greater than its estimated recoverable amount. 
Intangible assets 
(a) Goodwill 
  Goodwill represents the excess of the cost of an acquisition over the fair value of the group’s share of the net 
identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill on acquisitions of subsidiaries is 
included in ‘intangible assets’. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of 
an entity include the carrying amount of goodwill relating to the entity sold. 
  Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to 
those cash-generating units or groups of cash-generating units that are expected to benefit from the business 
combination in which the goodwill arose. The company allocates goodwill to each geographical business unit.
  Assets that have an indefinite useful life, for example goodwill, are not subject to amortisation and are tested 
annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events 
or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is 
recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable 
amount is the higher of an asset’s fair value less costs to sell and value in use. 
(b) Other intangible assets
  Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use 
the specific software. These costs are amortised over their estimated useful lives (two to three years).  20 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Notes to the consolidated financial statements continued
For the year ended 31 December 2007
  In line with IFRS, the Group does not capitalise internally generated intangible assets arising from expenditures 
such as research, branding or the creation of its customer and equipment databases.
Inventories 
Inventories comprise used industrial equipment purchased for resale and are stated at the acquisition cost of the assets. 
In some cases dismantling, transportation, or warehousing costs may be incurred, which are added to the inventory 
value. These costs are allocated between the group of assets acquired on a weighted average of the deemed value of 
the assets. Where this allocated cost is in excess of net realisable value the excess carrying amount is written-off to the 
income statement. Borrowing costs are not included in the inventory valuation. Net realisable value is the estimated 
selling price in the ordinary course of business, less applicable variable selling expenses. 
Financial assets 
The group’s financial assets comprise trade and other receivables, cash and cash equivalents. 
Trade and other receivables 
Trade and other receivables comprise trade accounts receivable, accrued income receivable, auction expenses receivable, 
prepayments and other receivables. Trade receivables are recognised at fair value. A provision for impairment is 
established when there is objective evidence that the group will not be able to collect all amounts due according to 
the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter 
bankruptcy or financial reorganisation, and default or delinquency in payments are considered indicators that the 
trade receivable is impaired. The amount of the provision is the difference between the asset’s carrying amount and 
the present value of estimated future cash flows. 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 expense. 
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 expense’ in the income statement. 
Accrued income receivable represents an accrual for work completed on behalf of clients but not yet invoiced. Auction 
expenses represent costs incurred on behalf of and recoverable from clients but not yet invoiced.
Cash and cash equivalents 
Cash and cash equivalents include cash in hand, deposits held at call with banks, monies held under guarantee, and 
bank overdrafts. 
Group companies routinely collect cash from auction sales, the proceeds of which are ultimately payable to the client 
whose assets are being sold. In certain circumstances, Group companies enjoy the full economic benefits of holding 
this cash (“client money owing”) and accordingly it is reflected on the consolidated balance sheet with a corresponding 
liability reported as amounts due to clients within accounts payable. In other cases Group companies do not enjoy such 
benefits and accordingly both the cash and associated liability are excluded from the consolidated balance sheet. Client 
cash that is held together with the Group company’s own cash is reported within own cash on hand and at bank, but if 
for legal or other reasons it must be segregated from company funds it is reported separately as client cash on escrow. 
Short-term deposits are liquid investments that are convertible to known amounts of cash and which are subject to 
insignificant risk of change in value. Monies held under guarantee is cash held in an account to which the Group enjoys 
legal title, but there are restrictions over access.
Trade payables 
Trade payables are recognised at fair value and subsequently measured at amortised cost.
Borrowings 
Borrowings are initially recognised at fair value and are subsequently amortised to reflect repayments of capital and 
borrowing costs.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the 
liability for at least 12 months after the balance sheet date. 
Provisions 
Provisions for potential future costs such as those arising from the defence of a legal claim are recognised when: the 
group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources 
will be required to settle the obligation; and the amount has been reliably estimated.  www.goindustry.com GoIndustry plc annual report and accounts 2007 21 
 
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a 
pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. 
Share capital 
Ordinary shares are classified as equity. 
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction from the 
proceeds. 
Where any group company purchases the company’s equity share capital (own shares held in trust), the consideration 
paid, including any directly attributable incremental costs is deducted from equity attributable to the company’s equity 
holders until the shares are cancelled or reissued.
3. Financial risk management
The group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk and interest 
rate risk), credit risk and liquidity risk. Financial risk management is coordinated at group level and seeks to minimise 
potential adverse effects on the group’s financial performance. 
Market risk
(a) Foreign exchange risk
  The group operates internationally and is exposed to foreign exchange risk arising from various currency 
exposures. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and 
net investments in foreign operations. In order to reduce the currency risk arising in respect of recognised foreign 
currency assets and net investments in foreign subsidiaries, the group uses direct borrowings in the same currency. 
The risk relating to future commercial transactions and recognised liabilities is mitigated through the maintenance 
of cash balances in the same currency.
  The effect of changing exchange rates is regularly monitored by the group and a sensitivity analysis has been 
prepared to show the impact of changes in foreign exchange between Sterling, the United States Dollar and 
the Euro. A decrease of five cents in the value of both the Dollar and the Euro relative to Sterling would reduce 
consolidated profit before tax by £46 thousand (2006: Increase £8 thousand) and reduce total equity by £1,673 
thousand (2006: £95 thousand). An increase of five cents in the value of both the Dollar and the Euro would 
increase consolidated profit before tax by £48 thousand (2006: Decrease £8 thousand) and increase total equity by 
£1,675 thousand (2006: £95 thousand).
(b) Interest rate risk
  Borrowings of the group comprise convertible loan notes issued by GoIndustry plc and bank loans held by 
GoIndustry USA Inc. and GoIndustry UK Limited. The group is exposed to interest rate risk only on its bank 
borrowings as the convertible loan notes attract interest at a fixed rate of 8%. Bank borrowings are used mainly to 
finance the purchase of assets for resale and therefore are generally held only for a short time period. Before the 
purchase of each group of assets a proposal is presented to an investment committee projecting the profitability 
of the investment after the cost of finance and therefore decisions can be taken based upon the prevailing interest 
rate at the time of investment. Due to the short time period for which these assets are held the actual finance cost 
is only likely to fluctuate marginally from the projection.
  A sensitivity analysis has been prepared to model the impact on profit before tax of a change in the effective 
interest rate for bank borrowings. A +/- variance of 100 basis points in the effective interest rate would have an 
impact of £32 thousand (2006: £46 thousand) on profit before tax. Further details on interest rate risk exposure 
are contained in note 19.
Credit risk
Credit risk arises from the risk that a counterparty defaults on its liability in relation to financial assets of the group that 
they are holding. The group is subject to credit risk on its bank deposits and trade receivables. Bank deposits are held 
only by institutions rated as investment grade by an independent rating agency; credit exposure is further reduced by 
limiting the proportion of net deposits that can be held by a single institution. Further details regarding the group’s policy 
for the management of trade receivables is set out below.
Trade receivables management
Exposure to credit risk on trade receivables from commission and principal sales is limited because it is the group’s policy 
not to allow the title to assets to be transferred until payment is received.  22 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Notes to the consolidated financial statements continued
For the year ended 31 December 2007
Liquidity risk
Liquidity risk is primarily managed through the maintenance of adequate liquid resources, principally in the form of bank 
deposits. In addition to this, bank facilities to allow financing of working capital are also available in some business units.
The table below sets out the liquidity profile of the group’s financial assets and liabilities:
       2007
 Effective Recognised Contractual Total
 interest asset/ interest contractual 6 months 6 -12 1 -5
In thousands of pounds rate  (liability) payable cash flow or less months years
Loans and receivables:
Trade receivables — 5,221 — 5,221 5,221 — —
Accrued income — 2,385 — 2,385 2,385 — —
Bank deposits 6% 9,949 — 9,949 9,949 — —
Held at amortised cost:
Trade payables — (2,476) — (2,476) (2,476) — —
Amounts due to clients — (2,971) — (2,971) (2,971) — —
Bank loans and overdrafts 9% (3,067) — (3,067) (3,067) — —
Mortgage secured over property 9% (28) (3) (31) (31) — —
Convertible loan notes 8% (2,990) (319) (3,309) (120) (120) (3,069)
  6,023 (322) 5,701 8,890 (120) (3,069)
        
       2006
 Effective Recognised Contractual Total
 interest asset/ interest contractual 6 months 6 -12 1 -5
In thousands of pounds rate  (liability) payable cash flow or less months years
Loans and receivables:
Trade receivables — 5,715 —  5,715 5,715 —  — 
Accrued income — 2,679 —  2,679 2,679 —  —
Bank deposits 5% 5,235 —  5,235 5,235 —  — 
Held at amortised cost:
Trade payables — (1,565) —  (1,565) (1,565) —  — 
Amounts due to clients — (3,498) —  (3,498) (3,498) —  —
Bank loans and overdrafts 8% (3,913) —  (3,913) (3,913) —  —
Mortgage secured over property 8% (88) (11) (99) (34) (34) (31)
Convertible loan notes 8% (2,990) (558) (3,548) (120) (120) (3,308)
  1,575 (569) 1,006 4,499 (154) (3,339)
4. Critical accounting estimates and judgments
The preparation of financial statements requires management to make estimates and assumptions that affect the 
reported amounts of assets and liabilities at the date of the financial statements and of revenues and expenses during 
the year. Significant items subject to such estimates and judgments include goodwill, the defined benefit pension 
obligation, the equity settled share-based payment charge, and the direct profit margin for principal sales. Actual 
amounts recognised may differ from those estimated. The estimates and assumptions which have a potentially material 
impact on the carrying amount of assets and liabilities are discussed below:
(a) Impairment of goodwill
  The Group is required to test, at least annually, whether goodwill has suffered any impairment. The recoverable 
amount is determined based on value in use calculations. The use of this method requires the estimation of future 
cash flows and the choice of a suitable discount rate in order to calculate the present value of these cash flows. 
Actual outcomes could vary. See note 14 for further details.
(b) Post retirement benefits
  The determination of the defined benefit pension obligation depends upon the selection of certain assumptions, 
which include the discount rate, inflation rate, mortality and expected return on scheme assets. Differences arising 
from actual experience or future changes in assumptions will be reflected in subsequent periods. See note 20 for 
further details. www.goindustry.com GoIndustry plc annual report and accounts 2007 23 
 
(c)  Equity settled share based payments
  The group recognises a charge in the income statement for the fair value of equity settled share based payments 
vesting in the year. Those instruments vesting in the period are principally options over ordinary shares and the fair 
value of these at the balance sheet date is estimated using the Black-Scholes model. This model is dependent upon 
several assumptions such as the risk free interest rate and the expected life of the options. Actual experience may 
differ from that estimated. Note 21 contains further details on these assumptions.
(d) Direct profit margin for principal sales
  When the Group acquires equipment for principal sales an estimate is made of the expected sales value for the 
whole project, and from this a projected margin is calculated. This projected margin is then used to estimate the 
actual margin to be recorded as individual items of equipment are sold. The actual margin achieved may vary from 
this initial estimate. Any incremental losses that are foreseeable at the year-end are provided for, non-foreseeable 
losses and any incremental profits are taken to the income statement in the period in which they occur.
5. Segmental analysis – geographical origin
For management purposes the group was organised in 2007 into four geographical divisions; the UK, Continental Europe, 
North America, and Asia. These divisions are the basis upon which the group reports its primary segment information. 
      2007
 UK Continental North
In thousands of pounds  Europe America Asia Unallocated Consolidated
Revenue 12,716 7,062 5,423 3,904 — 29,105
Segment result 2 270 18 733 — 1,023
Equity settled share based
payments — — — — (866) (866)
Reorganisation costs — — — — (369) (369)
Operating loss 2 270 18 733 (1,235) (212)
Finance costs – net (114) (2) (254) (1) — (371)
Loss before income tax (112) 268 (236) 732 (1,235) (583)
Income tax expense      (233)
Loss for the year      (816)
Depreciation and amortisation (72) (116) (24) (53) — (265)
Segment assets 7,266 30,586 6,866 2,345 — 47,063
Segment liabilities 4,792 3,768 6,996 645 — 16,201
Unallocated liabilities:
Convertible loan notes     2,990 2,990
Total liabilities 4,792 3,768 6,996 645 2,990 19,191
Capital expenditure:
Property, plant and equipment 54 218 58 102 — 432
Intangible assets 25 99 20 9 — 153 24 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Notes to the consolidated financial statements continued
For the year ended 31 December 2007
      2006
      (restated see
 UK Continental North   note 2)
In thousands of pounds  Europe America Asia Unallocated Consolidated
 
Revenue 15,258 7,309 9,347 2,227      —  34,141
Segment result 1,065 108 (610) 283      —  846
Equity settled share based
payments —      —       —       —  (517) (517)
Reorganisation costs — —       —       —  (349) (349)
Operating profit 1,065 108 (610) 283 (866) (20)
Finance costs – net (157) (127) (271) (12)      —  (567)
Loss before income tax 908 (19) (881) 271 (866) (587)
Income tax expense      (56)
Loss for the year      (643)
Depreciation and amortisation 62 150 31 40      —  283
Segment assets 12,833 16,914 8,376 3,288      —  41,411
Segment liabilities 5,365 2,963 7,175 1,325      —  16,828
Unallocated liabilities:
Convertible loan notes     2,990 2,990
Total liabilities 5,365 2,963 7,175 1,325 2,990 19,818
Capital expenditure:
Property, plant and equipment 113 81 12 39      —  245
Intangible assets 84 59 8 29      —  180
The segment result for the year ended 31 December 2006 has been restated to show separately exceptional charges and 
net finance costs. 
Segmental analysis – class of business
Divisional management information is also analysed by class of business, which represents the nature of the relationship 
between the company and its client. Commission revenue is derived from those sales where ownership of the asset 
remains with the client and the company receives its revenue as a percentage commission or buyer’s premium based 
upon the hammer price. Principal revenue relates to sales where the company owns the assets sold or guarantees a 
minimum sale price. Professional services are valuations and other asset management activities where the company 
typically charges an appropriate fee for its services. Class of business is the basis for the presentation of the secondary 
segmental analysis.
   Professional 2007
In thousands of pounds Commission Principal services Total
Revenue 15,126 10,341 3,638 29,105
Segment assets 29,435 9,567 8,061 47,063
Capital expenditure:
Property, plant and equipment 270 88 74 432
Intangible assets 96 31 26 153 www.goindustry.com GoIndustry plc annual report and accounts 2007 25 
 
   Professional 2006
In thousands of pounds Commission Principal services Total
Revenue 17,909 12,770 3,462 34,141
Segment assets 21,722 15,490 4,199 41,411
Capital expenditure:
Property, plant and equipment 129 91 25 245
Intangible assets 94 68 18 180
6. Exceptional items
In thousands of pounds   2007 2006
Reorganisation costs   369 349
Reorganisation costs
These costs arise from the reorganisation of the company’s head-office function to enable resources to be re-focussed 
at the divisional level. This represents a continuation of the programme commenced in the previous year. Following the 
acquisition of DoveBid Inc. in 2008 this programme is planned to be accelerated and further reorganisation costs will be 
incurred in 2008; see note 27 for further details.
7. Operating profit / (loss)
In thousands of pounds   2007 2006
Operating profit / (loss) is stated after charging / (crediting):
Cost of inventories recognised as an expense (included in cost of sales)  6,429 8,532
Depreciation of property plant and equipment   240 248
Amortisation of intangible assets   25 35
Rentals under operating leases   1,239 775
(Gain) on the translation of foreign currencies   (210) (139)
  
Auditor remuneration:
Fees payable to the company’s auditor for the audit of parent company and
consolidated financial statements   64 60
 Fees payable to the company’s auditor and its associates for other services:
The audit of the company’s subsidiaries pursuant to legislation   105 100
Tax services   61 57
Other services   12 —
   242 217
8. Employee benefit expense
    2006
    (restated see
In thousands of pounds   2007 note 2)
Wages and salaries   10,979 12,489
Social security costs   1,226 1,143
Pension costs – defined benefit plan (note 20)   172 248
Pension costs – defined contribution plans   447 442
Share options granted to directors and employees (note 21)   866 517
   13,690 14,839 26 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Notes to the consolidated financial statements continued
For the year ended 31 December 2007
The number of employees of the group, averaged on a monthly basis over the year is as follows:
   Number Number
Sales   82 60
Operations   176 133
Central services   20 48
   278 241
Employee benefit expense is included within administrative expenses.
The total remuneration of key management was £1,009 thousand (2006: £823 thousand).
9. Directors’ emoluments
The total remuneration of the directors of GoIndustry plc in the year was as follows:
In thousands of pounds   2007 2006
Emoluments   513 488
Pension contributions-defined contribution   33 20
   546 508
The emoluments of the highest paid director were £321 thousand (2006: £268 thousand) and company pension 
contributions of £25 thousand (2006: £12 thousand) were made to a money purchase scheme on the director’s behalf.
Two (2006: two) directors are accruing benefits under money purchase schemes.
10. Finance income and costs
    2006
    (restated see
In thousands of pounds   2007 note 2)
Finance income:  
Interest income on short-term bank deposits   405 199
Interest expense:
Bank borrowings   (569) (662)
Convertible loan notes   (207) (104)
   (371) (567)
 
11. Income tax expense
In thousands of pounds   2007 2006
Current tax:  
Adjustments to prior year tax charges   (2) 6
Overseas corporation tax on profits in the year   235 50
   233 56 www.goindustry.com GoIndustry plc annual report and accounts 2007 27 
 
The tax expense for the year is higher than the standard rate of corporation tax in the UK and is explained as follows:
In thousands of pounds   2007 2006
Loss before income tax   (583) (587)
Tax at the UK corporation tax rate of 30% (2006: 30%)   (175) (176)
Effect of lower income tax rate of other countries   (10) (133)
Adjustment in respect of current income tax of previous years   (2) 6
Deferred tax not recognised   51 308
Tax losses not utilised / (utilised)   84 (133)
Share based payments expense not deductible   166 161
Expenditure not allowable for income tax purposes   119 23
   233 56
Deferred tax assets arising from cumulative taxable losses of £23,516 thousand (2006: £29,318 thousand) and from 
other temporary differences of £1,387 thousand (2006: £1,418 thousand) have not been recognised as it is not 
sufficiently foreseeable that they will be recoverable against future taxable profits.
12. Earnings per share
The calculation of the average number of shares in issue has been made having deducted those shares held in trust for 
the company. Loss per share has been calculated on a loss of £795 thousand (2006: £700 thousand) and as a result 
there are no dilutive ordinary shares.
    2006
    (restated see
In thousands of pounds   2007 note 2)
Loss attributable to equity holders of the company (thousands of pounds)  (795) (700)
Weighted average number of ordinary shares in issue (thousands)   237,994 186,462
Basic loss per share (pence per share)   (0.3p) (0.4p)
In order to appreciate the effects of equity settled share based payments and exceptional items on the reported 
performance, additional calculations of earnings per share are as presented:
   2007 2006
Profit after tax before exceptionals and share based payments (thousands of pounds)  419 223
Weighted average number of ordinary shares in issue (thousands)   237,994 186,462
Adjusted basic profit per share (pence per share)   0.2p 0.1p
On 25 February 2008 the company issued an additional 206,660 thousand 5p ordinary shares to finance the acquisition 
of DoveBid Inc. Following this issue the registered issued share capital of the company was 471,658 thousand. 28 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Notes to the consolidated financial statements continued
For the year ended 31 December 2007
13. Property, plant and equipment
   Furniture,
   fittings and
In thousands of pounds Buildings Vehicles equipment Total
Cost:
At 6 January 2006 694 270 1,908 2,872
Exchange differences — — (57) (57)
Additions 7 113 125 245
Disposals — (28) (381) (409)
At 1 January 2007 701 355 1,595 2,651
Exchange differences 60 18 37 115
Additions 54 114 264 432
Disposals — (55) (23) (78)
At 31 December 2007 815 432 1,873 3,120
Accumulated depreciation:
At 6 January 2006: 208 150 1,522 1,880
Exchange differences — — (35) (35)
Charge for the year 30 64 154 248
Disposals — (20) (351) (371)
At 1 January 2007 238 194 1,290 1,722
Exchange differences 19 9 31 59
Charge for the year 33 53 154 240
Disposals — (36) (23) (59)
At 31 December 2007 290 220 1,452 1,962
Net book value:
At 31 December 2007 525 212 421 1,158
At 1 January 2007 463 161 305 929
At 6 January 2006 486 120 386 992 www.goindustry.com GoIndustry plc annual report and accounts 2007 29 
 
14. Intangible assets
   Software and
   systems
In thousands of pounds  Goodwill development Total
Cost:
At 6 January 2006  24,825 2,165 26,990
Exchange differences  — (71) (71)
Additions  75 105 180
Disposals  — (210) (210)
At 1 January 2007  24,900 1,989 26,889
Exchange differences  — 16 16
Additions  — 153 153
At 31 December 2007  24,900 2,158 27,058
Accumulated amortisation:
At 6 January 2006:  — 2,129 2,129
Charge for the year  — 35 35
Disposals  — (210) (210)
At 1 January 2007  — 1,954 1,954
Exchange differences  — 13 13
Charge for the year  — 25 25
At 31 December 2007  — 1,992 1,992
Net book value:
At 31 December 2007  24,900 166 25,066
At 1 January 2007  24,900 35 24,935
At 6 January 2006  24,825 36 24,861
Unamortised goodwill relates to the reverse acquisition of GoIndustry AG by GoIndustry plc and the acquisition by 
GoIndustry AG of its subsidiary companies. The recoverable amount of each income generating unit has been based 
on value in use calculations. The calculations use cash-flow projections based upon financial budgets approved by 
management covering a two year period and a pre-tax discount rate of 10 per cent (2006: 10 per cent). For the 
purposes of the calculation the cash flow projections beyond the two year period include no growth.
The amortisation charge for the year is included within administrative expenses.
15. Trade and other receivables
In thousands of pounds   2007 2006
Trade receivables   5,221 5,715
Prepayments and accrued income   2,962 3,117
Other receivables   1,819 397
   10,002 9,229
16. Cash and cash equivalents
In thousands of pounds   2007 2006
Own cash on hand and at bank   3,850 4,376
Short-term bank deposits   2,457 826
Monies held under guarantee   3,642 33
   9,949 5,235
   30 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Notes to the consolidated financial statements continued
For the year ended 31 December 2007
17. Trade and other payables
In thousands of pounds   2007 2006
Trade payables   2,476 1,565
Amounts due to clients   2,971 3,498
Accrued profit share payable   — 514
Social security and other taxes   1,094 3,094
Accrued expenses   3,049 444
   9,590 9,115
18. Provisions
In thousands of pounds   2007 2006
Provision for legal claims   — 84
Other   — 54
   — 138
The provision for legal claims and the other provisions were released to the income statement during the year.
19. Borrowings
In thousands of pounds   2007 2006
Current
Bank loans and overdrafts   3,067 3,913
Mortgage secured over property   25 — 
Non-current
Mortgage secured over property   — 88
Convertible loan notes   2,990 2,990
Total borrowings   6,082 6,991
The group’s borrowings are split between fixed and floating rate as set out below:
Floating rate:  
Expiring within one year   3,092 3,913
Expiring beyond one year   — 88
Fixed rate:
Expiring beyond one year   2,990 2,990
   6,082 6,991
The currency profile of the group’s borrowings is analysed below:
  
Pounds sterling   3,290 4,291
Euros   25 88
United States dollar   2,767 2,612
   6,082 6,991
The fair value of current borrowings equals their carrying amount, as the impact of discounting is not significant. The fair 
values are based on cash flows discounted using a rate based on the borrowing rate of 8% (2006: 8%).
Bank loans and overdrafts at 31 December 2007 were held by GoIndustry USA Inc. (£2,767 thousand; 2006: £2,600 
thousand) and GoIndustry UK Limited (£300 thousand; 2006: £300 thousand). These loans are used to fund principal 
transactions and working capital. The GoIndustry USA Inc. loan is secured by a charge over the assets of that company 
and a parent company guarantee from GoIndustry plc for up to £1,500 thousand (2006: £1,500 thousand). It bears 
floating interest at 0.75% above US Prime Rate. GoIndustry UK Limited holds an overdraft of £300 thousand which bears 
floating interest at 2.5% above Base Rate and is secured by a guarantee over the assets of that company. www.goindustry.com GoIndustry plc annual report and accounts 2007 31 
 
The mortgage represents the outstanding balance on the £448,000 mortgage owed by GoIndustry Deutschland GmbH. 
The loan is repayable in monthly instalments of £6 thousand including a 9% interest rate and was fully repaid in April 
2008. 
The convertible loan notes mature on 9 May 2009 and bear interest at 8% per annum, payable quarterly in arrears. The 
notes are convertible at any time into 5p Ordinary shares at a price of 21p per share. The notes may be redeemed by 
the company at face value from 5 May 2008.
20. Retirement benefit obligations
The group contributes to a number of defined contribution pension plans for UK and overseas employees. Costs relating 
to these arrangements are expensed in full to the profit and loss account as they occur and are disclosed in note 8.
GoIndustry UK Limited also maintains a defined benefit scheme; the Henry Butcher Pension and Life Assurance Scheme. 
This scheme is closed to new members and with effect from 31 December 2004, active members ceased to accrue 
benefits on a defined benefit basis and salary linkage was broken to their accrued rights. A new money purchase section 
was opened with effect from 1 January 2005 in which existing defined benefit members and new entrants were invited 
to join. 
The scheme is funded and GoIndustry UK Limited is currently making an annual contribution of £453 thousand (2006: 
£453 thousand) to reduce the defined benefit liability. Contributions are expected to continue for the next ten years.
The valuations have been based upon the most recent full valuation performed on 26 January 2008 as updated by the 
actuaries to reflect the projected scheme liabilities at 31 December 2007. Scheme assets have been presented at their 
market value at 31 December 2007.
The defined benefit liability recognised at the end of the year and the income statement charge for the year are as 
follows:
    2006
In thousands of pounds   2007 (restated)
Balance sheet obligations for:
Pension benefits   3,519 3,574
Income statement charge for (note 8):
Pension benefits   172 248
The defined benefit liability is analysed below:
In thousands of pounds   2007 2006
Present value of funded obligations   12,696 12,147
Fair value of plan assets   (9,177) (8,573)
Liability in the balance sheet   3,519 3,574
The present value of scheme liabilities has changed over the year as analysed below:
In thousands of pounds   2007 2006
Beginning of year   12,147 13,098
Current service cost   46 55
Interest cost   634 625
Actuarial loss / (gain) on plan liabilities   251 (1,412)
Benefits paid   (382) (219)
End of year   12,696 12,147 32 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Notes to the consolidated financial statements continued
For the year ended 31 December 2007
Changes in the fair value of scheme assets are as set out below:
In thousands of pounds   2007 2006
Fair value of scheme assets at start of year   8,573 7,756
Expected return on scheme assets   508 432
Employer contributions   453 453
Benefits paid   (382) (219)
Actuarial gain on scheme assets   25 151
Fair value of scheme assets at end of year   9,177 8,573
The actual return on plan assets in the year was £533 thousand (2006: £583 thousand).
The amounts recognised in the income statement are as follows:
    2006
In thousands of pounds   2007 (restated)
Current service cost   46 55
Interest on obligation   634 625
Expected return on scheme assets   (508) (432)
Total, included in staff costs (note 8)   172 248
  
The major categories of scheme assets and the proportion they represent of total scheme assets are as set out below:
  2007  2006
In thousands of pounds 2007 Percentage 2006 Percentage
    
Equity instruments 5,221 57% 4,944 58%
Debt instruments 3,806 41% 3,625 42%
Other 150 2% 4 —
Pension benefits 9,177 100% 8,573 100%
    
The history of experience gains and losses has been as follows:
In thousands of pounds 2007 2006 2005 2004
    
Present value of defined benefit obligation 12,696 12,147 13,098 11,543
Fair value of plan assets 9,177 8,573 7,756 6,345
Deficit 3,519 3,574 5,342 5,198
Experience adjustments on plan liabilities (251) 1,412 (1,129) — 
Experience adjustments on plan assets 25 151 715 —  www.goindustry.com GoIndustry plc annual report and accounts 2007 33 
 
The principal assumptions used by the actuaries in the preparation of their valuation are set out below. The assumptions 
used are selected from a range of possible outcomes and represent the best estimate at the balance sheet date. Due to 
the inherent subjectivity of this process the actual outcome may vary.
   2007 2006
   Percentage Percentage
  
Discount rate   5.8% 5.3%
Expected return on scheme assets   6.0% 5.9%
Rate of increase in salaries   — —
Price inflation   3.3% 3.0%
Pension increases:  
Pensions accrued before 6 April 1997   — —
Pensions accrued after 6 April 1997   3.3% 3.0%
  
The assumptions regarding future mortality experience are set out below:
The average life expectancy in years of a pensioner retiring at age 65, on the balance sheet date is as follows:
   2007 2006
Male   87.7 84.6
Female   90.4 87.7
The average life expectancy in years of a pensioner retiring at age 65, aged 45 years on the balance sheet date is as 
follows:
   2007 2006
Male   90.8 85.9
Female   93.4 88.9
21. Share capital and premium
The movement in issued share capital is set out below:
In thousands of pounds  Number
  of shares Ordinary Share
  Thousands shares premium
At 6 January 2006  187,133 9,357 3,462
Placing of 5p ordinary shares
Proceeds from shares issued  12,000 600 1,500
At 31 December 2006  199,133 9,957 4,962
Placing of 5p ordinary shares
Proceeds from shares issued  40,000 2,000 4,800
Less: cost of placing    (239)
Issue of 5p Ordinary shares to satisfy deferred consideration payable 25,760 1,288 44
Share options exercised  105 5 11
At 31 December 2007  264,998 13,250 9,578
On 5 April 2007 the company completed the placing of 40,000 thousand 5p ordinary shares at 17p per share. On 15 
May 2007 25,760 thousand shares were issued to the vendors of GoIndustry AG pursuant to the sale and purchase 
agreement dated 9 December 2005.  34 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Notes to the consolidated financial statements continued
For the year ended 31 December 2007
The authorised share capital is set out in the table below.
In thousands of pounds   2007 2006
Authorised ordinary shares of 5p each 330,000 thousand (2006: 330,000 thousand)  16,500 16,500
Equity ordinary shares to be issued of 5p each Nil (2006: 25,317 thousand)  — 1,266
Share based payments
All of the Share based payment arrangements entered into by the group are equity settled.
The weighted average exercise price and number of warrants and of share options is set out below:
  Warrants  Options
 Weighted   Weighted  
 average  Number of average  Number of
 exercise price  shares exercise price shares
 Pence per share Thousands Pence per share Thousands
Outstanding at 6 January 2006 18p 4,674 31p 12,454
Outstanding at 31 December 2006 18p 4,674 31p 12,454
Granted — — 11p 15,215
Exercised — — 15p (105)
Lapsed or forfeited 18p (4,674) — —
Outstanding at 31 December 2007 — — 22p 27,564
Exercisable at 31 December 2007 — — 23p 24,060
Exercisable at 31 December 2006 18p 4,674 31p 11,084
Options outstanding at 31 December 2007 and 31 December 2006 had weighted average remaining contractual lives as 
follows:
At 31 December 2007: 
Weighted average remaining contractual life  —  6.5
At 31 December 2006:
Weighted average remaining contractual life  1.0  4.5
Options were exercised on 6 June 2007, the share price on this date was 22p. www.goindustry.com GoIndustry plc annual report and accounts 2007 35 
 
Share options in issue at the year end are as follows:
    2007 2006
 Pence  Years Thousands Thousands
19 July 2007 5p — 10 yrs following  4,476 — 
   end of service
19 July 2007 5p — 180 days 1,000 —
   following end 
   of service 
19 July 2007 17p — 10 600 — 
19 July 2007 18p 3 yrs of 10 1,000 — 
  service
19 July 2007 18.8p 3 yrs of 10 1,675 — 
  service 
04 March 2006 12.8p — 2 yrs following 124 124 
   end of service
04 March 2006 12.8p — 10 3,037 1,370
01 April 2005 10p — 7 3,000 3,000
31 December 2004 12.8p — 10 2,485 2,485
03 October 2003 22.1p — 5 120 120
03 October 2003 54.6p — 10 142 124
01 May 2003 15p — 8 110 110
31 October 2002 27.2p — 10 1,126 1,126
31 October 2002 54.4p — 10 1,767 1,767
19 October 2002 44.7p — 10 4,080 4,080
31 December 2001 15p — 9 634 634
01 October 2001 12.8p — 10 289 289
01 October 2001 22.4p — 10 1,076 1,076
01 September 2001 12.8p — 10 27 27
01 September 2001 35.4p — 10 161 161
01 February 2001 141.6p — 10 304 304
09 October 2000 12.8p — 10 159 159
11 July 2000 44.1p — 10 172 172
    27,564 17,128
As permitted by IFRS2 “Share based payments” no charge has been taken to the income statement for options vesting 
prior to 7 November 2002.
The fair value of services received in return for share options granted are measured by the fair value of those 
instruments. For grants in the current and prior years the pricing models used and inputs into those models were as 
follows:
Valuation method   Black-Scholes Black-Scholes
Share price at the date of grant   18p 17p
Expected volatility   38.5% 27.2%
Expected option life at grant date (years)   3 3
Risk-free interest rate   5.8% 4.6%
Fair value per option at the grant date   11p 8p
The calculation of expected volatility is performed taking into account historical movements in the market value of 5p 
ordinary shares in GoIndustry plc. 36 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Notes to the consolidated financial statements continued
For the year ended 31 December 2007
22. Own shares held in trust
In thousands of pounds
At 6 January 2006    (1,370)
Equity settled share based payments    325
At 31 December 2006    (1,045)
Issue of 5p ordinary shares to satisfy future share based payment obligation   (66)
Equity settled share based payments    69
At 31 December 2007    (1,042)
On 6 June 2007, the company acquired 4,238,860 of its 5p ordinary shares for nil consideration in accordance with 
section 143(3) of the Companies Act 1985. 
23. Other reserves
  Foreign Share
In thousands of pounds Acquisition currency options 
 reserve reserve reserve Total
At 6 January 2006 47,649 (79) 160 47,730
Currency translation differences — (661) — (661)
Share based payments — — 192 192
At 31 December 2006 47,649 (740) 352 47,261
Currency translation differences — (67) — (67)
Share based payments — — 797 797
At 31 December 2007 47,649 (807) 1,149 47,991
The acquisition reserve arose on the reverse acquisition of GoIndustry AG by GoIndustry plc.
24. Accumulated losses
In thousands of pounds
At 6 January 2006    (41,813)
Actuarial gain on defined benefit pension scheme    1,545
Loss for the year    (700)
At 31 December 2006    (40,968)
Actuarial loss on defined benefit pension scheme    (226)
Loss for the year    (795)
At 31 December 2007    (41,989) www.goindustry.com GoIndustry plc annual report and accounts 2007 37 
 
25. Operating lease arrangements
The group as lessee:
The minimum lease payments under non-cancellable operating lease rentals are in aggregate as follows:
In thousands of pounds Land and buildings Vehicles Other Total
Amounts falling due:
Within one year 342 33 14 389
More than one but less than five years 430 162  —  592
More than five years 304  —   —  304
As at 31 December 2007 1,076 195 14 1,285
In thousands of pounds Land and buildings Vehicles Other Total
Amounts falling due:
Within one year 548 149 23 720
More than one but less than five years 828 219 7 1,054
More than five years 138  —   —  138
As at 31 December 2006 1,514 368 30 1,912
Operating lease rentals represent rentals payable by the group for certain of its office properties, motor vehicles and 
office equipment.
26. Significant investments
The table below sets out the significant members of the GoIndustry group. GoIndustry AG and GoIndustry Nordic AB are 
direct subsidiaries of GoIndustry plc while the remaining companies are direct or indirect subsidiaries of GoIndustry AG. 
All of the companies listed below are included in the consolidated accounts.
Company name Country of Proportion of Proportion of  
 incorporation ownership voting control Principal activity
AssetTRADE.com Inc. USA 100% 100% Holding company
GoIndustry Operations Inc. USA 100% 100% Holding company
GoIndustry AG Germany 100% 100% Asset sales and services
GoIndustry Operations Limited UK 100% 100% Asset sales and services
GoIndustry (Thailand) Limited Thailand 100% 100% Asset sales and services
GoIndustry Asia Limited Hong Kong 100% 100% Holding company
GoIndustry (Hong Kong) Limited Hong Kong 100% 100% Asset sales and services
GoIndustry (Malaysia) Sdn. Bhd. Malaysia 70% 70% Asset sales and services
GoIndustry (Philippines) Inc. Philippines 100% 100% Asset sales and services
GoIndustry Quipo Auctioneers and  
Valuers PVT. Limited India 50% 50% Asset sales and services
Korea GoIndustry Co. Limited South Korea 100% 100% Asset sales and services
GoIndustry (Australia) Australia 100% 100% Asset sales and services
GoIndustry NV Belgium 100% 100% Holding company
GoIndustry Austria GmbH Austria 100% 100% Asset sales and services
GoIndustry Germany GmbH Germany 100% 100% Asset sales and services
GoIndustry Benelux NV Belgium 76% 76% Asset sales and services
GoIndustry USA Inc. USA 100% 100% Asset sales and services
GoIndustry (Canada) Limited Canada 100% 100% Asset sales and services
GoIndustry (UK) Limited UK 100% 100% Asset sales and services
GoIndustry Trading Limited UK 100% 100% Asset sales and services
GoIndustry Nordic AB Sweden 100% 100% Asset sales and services
27. Events after the balance sheet date
On 25 February 2008 GoIndustry plc acquired 99.5% of the ordinary share capital of DoveBid Inc, the group’s largest 
global competitor for £12,309 thousand in cash, £2,166 thousand of 5p ordinary shares vesting immediately, and £1,084 
thousand of 5p ordinary shares to vest following the final settlement of terms within the sale and purchase agreement. 
The remaining 0.5% are to be compulsorily acquired through a short form merger under Delaware law. 38 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Company balance sheet
As at 31 December 2007
In thousands of pounds  Note 2007 2006
 
Non-current assets   
Intangible assets  3 8 —
Investments in subsidiaries  4 30,731 27,835
   30,739 27,835
Current assets   
Trade and other receivables  5 8,429 8,282
Cash and cash equivalents  6 4,526 1,378
   12,955 9,660
Total assets   43,694 37,495
Current liabilities   
Trade and other payables  7 488 1,017
   488 1,017
Non-current liabilities   
Convertible loan notes  8 2,990 2,990
   2,990 2,990
Total liabilities   3,478 4,007
Net assets   40,216 33,488
Capital and reserves attributable to equity holders of the company   
Called-up equity share capital   9 13,250 9,957
Share premium  9 9,578 4,962
Shares to be issued   —  1,266
Own shares held in trust  10 (66) — 
Other reserves  11 18,592 17,808
Accumulated losses  12 (1,138) (505)
Total equity    40,216 33,488
The notes on pages 40 to 44 are an integral part of these company financial statements. 
The financial statements were approved by the board of directors and authorised for issue on 16 May 2008.  They were 
signed on its behalf by:
John Allbrook David Horne
Chief Executive Officer Chief Financial Officer www.goindustry.com GoIndustry plc annual report and accounts 2007 39 
 
Company cash flow statement
In thousands of pounds  Note 2007 2006
 
Cash flows from operating activities   
Profit / (loss)  before income tax    (633) (381)
Adjustments for:   
Share based payments   784 — 
Net interest expense   3 15
Changes in working capital:   
(Increase) in trade and other receivables   (3,465) (4,965)
Increase in trade and other payables   505 (16)
Operating cash flows before interest and taxes   (2,806) (5,347)
Interest paid   (261) (172)
Interest received    258 157
Net cash used in operating activities   (2,809) (5,362)
Cash flows from investing activities   
Investment in subsidiary undertakings   (612) — 
Purchases of intangible assets   (8) — 
Net cash used in investing activities   (620) — 
Cash flows from financing activities   
Proceeds on issue of shares   6,577 2,100
Proceeds on issue of convertible loan notes   — 2,990
Net cash from financing activities   6,577 5,090
Net increase / (decrease) in cash and cash equivalents   3,148 (272)
Cash and cash equivalents at beginning of year   1,378 1,640
Effect of foreign exchange rate changes   — 10
Cash and cash equivalents at end of year   4,526 1,378
 
The notes on pages 40 to 44 are an integral part of these company financial statements.  40 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Notes to the company financial statements
For the year ended 31 December 2007
Notes to the company financial statements
For the year ended 31 December 2007
1. Summary of significant accounting policies
Basis of preparation
The company only financial statements contain the accounts of GoIndustry plc.
The company has elected to prepare its financial statements in accordance with International Financial Reporting 
Standards (‘IFRS’) adopted for use in the EU as at 31 December 2007 (‘adopted IFRS’).  The financial statements are 
presented under the historical cost convention.
The accounting policies applied by the GoIndustry group are described in detail in note 2 to the consolidated accounts. 
The more important company accounting policies are summarised below.
Loss for the year
The company has taken advantage of section 230 of the Companies Act 1985 and consequently has not presented a 
profit and loss account for the company alone. The company made a loss of £633 thousand in the year (2006: £371 
thousand loss). There was no other recognised income or expense in the year (2006: nil).
Intangible assets
(a) Computer software and systems development 
  Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use 
the specific software. These costs are amortised over their estimated useful lives (two to three years). 
Investments
Investments in subsidiaries are recorded at cost less any provision for impairment losses.
Trade and other receivables 
Trade and other receivables comprise trade accounts receivable, accrued income receivable, auction expenses receivable, 
prepayments and other receivables. Trade receivables are recognised at fair value. A provision for impairment is 
established when there is objective evidence that the group will not be able to collect all amounts due according 
to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will 
enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 30 days overdue) 
are considered indicators that the trade receivable is impaired. The amount of the provision is the difference between 
the asset’s carrying amount and the present value of estimated future cash flows. 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 expense. 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 ‘selling and marketing 
costs’ in the income statement. 
Accrued income receivable represents an accrual for work completed on behalf of clients but not yet invoiced. Auction 
expenses represent costs incurred on behalf of and recoverable from clients but not yet invoiced.
Trade payables 
Trade payables are recognised at fair value.
Share capital 
Ordinary shares are classified as equity. 
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction from the 
proceeds. 
Where any group company purchases the company’s equity share capital (treasury shares), the consideration paid, 
including any directly attributable incremental costs is deducted from equity attributable to the company’s equity holders 
until the shares are cancelled or reissued.
2. Financial risk management
The company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk and interest 
rate risk), credit risk and liquidity risk. Financial risk management is coordinated at group level and seeks to minimise 
potential adverse effects on the group’s financial performance. 
Market risk
(a) Foreign exchange risk
  The company’s exposure to foreign exchange risk is limited as it does not engage in trading activity. The company 
does enter into transactions with overseas group undertakings, but these are denominated predominantly in  www.goindustry.com GoIndustry plc annual report and accounts 2007 41 
 
 
sterling. Where balances with group undertakings denominated in foreign currency do exist these are long-standing 
and therefore changes in foreign exchange rates do not have any impact on cash-flows.
(b) Interest rate risk
  The borrowings of the company are at a fixed interest rate of 8% and therefore the company is not subject to 
interest rate risk on these.
Credit risk
Credit risk arises from the risk that a counterparty defaults on its liability in relation to financial assets of the group that 
they are holding. The company is subject to credit risk on its bank deposits. Bank deposits are held only by institutions 
rated as investment grade by an independent rating agency; credit exposure is further reduced by limiting the proportion 
of net deposits that can be held by a single institution. 
Liquidity risk
Liquidity risk is primarily managed through the maintenance of adequate liquid resources, principally in the form of bank 
deposits.
The table below sets out the maturity profile of the group’s financial assets and liabilities:
       2007
 Effective Recognised Contractual Total
 interest asset/ interest Contractual 6 months 6 -12 1 -5
In thousands of pounds rate  (liability) payable cash flow or less months years
Bank deposits 6% 4,526 — 4,526 4,022 — 504
Trade payables — (9) — (9) (9) — —
Convertible loan notes 8% (2,990) (319) (3,309) (120) (120) (3,069)
    1,527 (319) 1,208 3,893 (120) (2,565)
       2006
 Effective Recognised Contractual Total
 interest asset/ interest Contractual 6 months 6 -12 1 -5
In thousands of pounds rate  (liability) payable cash flow or less  months years
Bank deposits 5% 1,378 —  1,378 1,378  — — 
Trade payables — (63) —  (63) (63) — — 
Convertible loan notes 8% (2,990) (558) (3,548) (120) (120) (3,308)
    (1,675) (558) (2,233) 1,195 (120) (3,308)
3. Intangible assets
In thousands of pounds   Software and  
   systems 
   development Total
Cost:  
At 6 January 2006 and 1 January 2007   — —
Additions   10 10
At 31 December 2007   10 10
Accumulated depreciation:  
At 6 January 2006 and 1 January 2007   — —
Charge for the year   2 2
At 31 December 2007   2 2
Net book value:  
At 31 December 2007   8 8
At 6 January 2006 and 1 January 2007   — — 42 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Notes to the company financial statements continued
For the year ended 31 December 2007
4. Investments in subsidiaries
In thousands of pounds   
   
At 6 January and 31 December 2006    27,835
Capital contribution to subsidiary company    612
Capitalisation of loan to subsidiary company    2,284
At 31 December 2007    30,731
   
Further details of the investments held by the company are contained in note 26 to the consolidated accounts.
5. Trade and other receivables
In thousands of pounds   2007 2006 
Amounts due from subsidiary undertakings   8,363 8,214
Prepayments   66 68
   8,429 8,282
6. Cash and cash equivalents
In thousands of pounds   2007 2006 
Own cash on hand and at bank   2,263 586
Short—term bank deposits   2,263 792
   4,526 1,378
7. Trade and other payables
In thousands of pounds   2007 2006 
Trade payables   9 63
Amounts payable to subsidiary undertakings   258 832
Social security and other taxes   18 26
Accrued expenses   203 96
   488 1,017
8. Borrowings
In thousands of pounds   2007 2006 
Convertible loan notes   2,990 2,990
The convertible loan notes are denominated in sterling, mature on 9 May 2009 and bear interest at 8% per annum, 
payable quarterly in arrears. The notes are convertible at any time into 5p Ordinary shares at a price of 21p per share. 
The notes may be redeemed by the company at face value from 5 May 2008.
The convertible loan notes are denominated in sterling www.goindustry.com GoIndustry plc annual report and accounts 2007 43 
 
 
9. Share capital and premium
The movement in issued share capital is set out below:
In thousands of pounds  Number of Ordinary Share
  shares shares premium
  Thousands  
 
At 6 January 2006  187,133 9,357 3,462
Placing of 5p ordinary shares     
Proceeds from shares issued  12,000 600 1,500
At 31 December 2006  199,133 9,957 4,962
Placing of 5p ordinary shares     
Proceeds from shares issued  40,000 2,000 4,800
Less: cost of placing    (239)
Issue of 5p Ordinary shares to satisfy deferred consideration payable 25,760 1,288 44
Share options exercised  105 5 11
At 31 December 2007  264,998 13,250 9,578
The authorised share capital is set out in the table below.
In thousands of pounds   2007 2006
 
Authorised ordinary shares of 5p each 330,000 thousand (31 December 2006: 330,000 
thousand)   16,500 16,500
Equity ordinary shares to be issued of 5p each Nil (31 December 2006: 25,317 thousand) — 1,266
Details of share based payments are contained in note 21 to the consolidated accounts.
10. Own shares held in trust
In thousands of pounds
 
At 6 January and 31 December 2006    —
Issue of 5p ordinary shares to satisfy future share based payment obligation   (66)
At 31 December 2007    (66)
11. Other reserves
In thousands of pounds  Acquisition Share options Total
  reserve reserve 
 
At 6 January and 31 December 2006  17,648 160 17,808
Share based payments  — 784 784
At 31 December 2007  17,648 944 18,592 44 GoIndustry plc annual report and accounts 2007 www.goindustry.com
Notes to the company financial statements continued
For the year ended 31 December 2007
12. Accumulated losses
In thousands of pounds
 
At 6 January 2006    (134)
Loss for the year    (371)
At 31 December 2006    (505)
Loss for the year    (633)
At 31 December 2007    (1,138)
13. Related party transactions
During the year the company has recharged costs to subsidiary companies of the GoIndustry group of £867 thousand 
(2006: £805 thousand). Balances with these companies at 31 December 2007 and 2006 are detailed in notes 5 and 7.
Transactions with key management are detailed in note 8 to the consolidated accounts.
14. Events after the balance sheet date
On 25 February 2008 GoIndustry plc acquired 99.5% of the ordinary share capital of DoveBid Inc, the GoIndustry 
group’s largest global competitor for £12,309 thousand in cash, £2,166 thousand of 5p ordinary shares vesting 
immediately, and £1,084 thousand of 5p ordinary shares to vest following the final settlement of terms within the sale 
and purchase agreement.
The remaining 0.5% are to be compulsorily acquired through a short form merger under Delaware law. Corporate Statement
 
GoIndustry plc is a global market leader in the valuation 
and sale of surplus industrial machinery and equipment. 
The company combines deep asset and industry 
intelligence with innovative eCommerce technology 
and advanced direct marketing to service the needs of 
multi-national corporations, insolvency practitioners, 
used equipment dealers, asset based lenders and other 
financial institutions around the world.
GoIndustry plc Annual report and accounts 2007
Summary results
In thousands of pounds   2007 2006
Direct profit   17,772 19,252
Adjusted profit before taxation   652 279
Exceptional items   (369) (349)
Share based payments   (866) (517)
Loss before taxation   (583) (587)
Adjusted earnings per share   0.2p 0.1p
Loss per share basic and fully diluted   (0.3p) (0.4p)
Summary results IFC
Financial and group highlights 1
Chairman’s statement 2
Chief Executive’s review 3
Board of directors 4
Directors’ report 5
Independent auditor’s report 10
Consolidated income statement 11
Consolidated statement of recognised income and expense 12
Consolidated balance sheet 13
Consolidated cash flow statement 14
Notes to the consolidated financial statements 15
Company balance sheet 38
Company cash flow statement 39
Notes to the company financial statements 40
Advisers and secretary IBC
Regional headquarters IBC
Advisers and Secretary Regional Headquarters
Broker & Nominated Advisers
Oriel Securities Limited
125 Wood Street
London EC2V 7AN
Auditor
Baker Tilly UK Audit LLP
2 Bloomsbury Street
London WC1B 3ST
Solicitors
SJ Berwin LLP
10 Queen Street Place
London EC4R 1BE
Registered office
New London Bridge House
25 London Bridge Street
London SE1 9BQ
Bankers
Barclays Bank PLC
1 Churchill Place
London E14 5HP
Company Secretary
Cargil Management Services Ltd
Chartered Secretaries
22 Melton Street
London NW1 2BW
Registrars
Capita Registrars
The Registry
34 Beckenham
Kent BR3 4TU
Registered in England No. 5381812
United Kingdom
New London Bridge House
25 London Bridge Street
London, SE1 9BQ
United Kingdom
T: +44 20 7098 3700
F: +44 20 7098 3795
Continental Europe
Ridlerstrasse 33
80339 Munich
Germany
T: +49 89 12 55 58 0
F: +49 89 12 55 58 12
North America
11425 Cronhill Drive
Owings Mills, Baltimore
Maryland 21117
USA
T: +1 410 654 7500
F: +1 410 654 5876
Asia
Leitz Industrial Complex
Edison Avenue (P. Leviste)
KM. 14, South Luzon Expressway
Paranaque City
Philippines
T: +63 2 852 2910
F: +63 2 831 9507 Golndustry plc
Annual Report and Accounts 2007
Golndustry plc
New London Bridge House
25 London Bridge Street
London SE1 9BQ
Telephone: +44 (0)20 7098 3700
www.goindustry.com