ANNUAL REPORT & ACCOUNTS 2011 Contents
Review
1 Highlights
2 Mallett at a Glance
5 Chairman’s Statement
6 Chief Executive’s Report
Governance
13 Board of Directors
14 Report of the Directors
17 Corporate Governance 
19 Directors’ Remuneration Report
24 Statement of Directors’ Responsibilities
25 Independent Auditors’ Report 
Financial Statements
26 Consolidated Income Statement
26 Consolidated Statement of Comprehensive Income 
27 Consolidated Balance Sheet
28 Company Balance Sheet
29 Statements of Changes in Equity
30 Consolidated Cash Flow Statement
31 Company Cash Flow Statement
32 Notes to the Accounts
52 Five Year Record
Shareholder information
53 Notice of Annual General Meeting
55 Form of Proxy 
57 Financial Calendar 
57 Company Advisers
THE CHANDOS ARMCHAIRS
A highly important and historic pair of George I gilt gesso
open armchairs of grand proportions, made for the 1st
Duke of Chandos for the Chapel at Cannons, near
Edgware in Middlesex. These magnificent examples of
the art of the carver and gilder are attributed to James
Moore, the leading maker of gesso furniture of the day,
and represent the epitome of the English decorative 
arts and are close to the ultimate in pure style and in
workmanship. The chair form is developed with great
grandeur, yet retains a highly sophisticated simplicity of
line. While the sculptural form of this unique pair of chairs
is fairly massive, the elegance of line transforms this 
into a factor of their overall dignity. The shapes in each
element of the woodwork can be looked at individually, 
or together, while the detailing of the motifs employed 
to decorate the surfaces include Apollo masks, winged
cupids, Indian masks, blend together into a wealth of
classical ornament.
England, circa 1718
Sold in 2012 1
ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
1
Annual Report and Accounts 2010
OPERATIONS
 Signs of recovery in decorative arts market in first half
of year, although not sustained in last quarter
 Agreed to move London showroom a few hundred yards
to 18th century townhouse providing a magnificent
setting at over half the rental cost
 Exhibited at Fine Art Asia fair in Hong Kong for first time
FINANCIAL
 Profit before tax £0.5m (2010 loss of £1.4m), including
£1.3m exceptional profit on sale of property lease
 45% improvement in underlying results before tax
(excluding exceptionals)
 Inventory level maintained at £12.3m with consignment
stock cost increased to over £13m
 Net debt £1.1m
2010 Highlights
Mallett is one of the oldest established antiques
dealers in the United Kingdom specialising in the
ﬁnest pieces of furniture and works of art, primarily
from the 18th century and Regency periods
08        09      10       11
16
14
12
10
8
6
4
2
£m
Revenue£m
08      09     10      11
1
0
-1
-2
-3
-4
-5
-6
£m
Proﬁt (loss) before tax
2011 Highlights Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
2
Mallett at a Glance
one of the world’s pre-eminent antiques houses,
specialising in English and continental furniture and
objects from the 18th century and Regency periods.
Private collectors as well as many of the world’s great
museums, from the Victoria and Albert Museum in
London to the Metropolitan Museum in New York,
look to Mallett for exemplary pieces that represent 
an object’s design, execution and pedigree.
British art from the 17th century to the present day
with an emphasis on less established names of the
18th and 19th centuries. the gallery also promotes
traditional figurative contemporary art, thus
displaying an eclectic mix of paintings that are 
united through their British origin and quality. ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
3
contemporary objects and furniture,
designed in the 21st century but
crafted with exquisite materials and
master craftsmanship from the 18th
century. the designers include
Asymptote, Edward Barber and Jay
osgerby, tord Boontje, Matali crasset
and Wales & Wales. 
one of the world’s longest established
restorers of furniture and works of 
art with a reputation for skilled
workmanship restoring and conserving
furniture and works of art for Royal,
private and museum collections
throughout the world.
Set up in 2009 to create and organise 
a new antiques fair in London for
exhibitors to display the best of the
best from a wide spectrum of art and
design. From Bugattis to bronzes,
Picasso to pink diamonds, the fair 
is a forum for distinctive design and
aesthetic excellence where every
exhibit is of superb quality.
Being formerly in the
collection of the Earls of
Rosebery at Mentmore
Towers, Buckinghamshire
places this magnificent pair of
Piedmontese carved giltwood
side tables in a collection that
is said to have been one of
the finest ever assembled in
private hands; comparable to
the collections of the Russian
and British Royal Families.
The work of Bonzanigo has
been compared to that of 
an ivory carver and the floral
swags on these tables have
affinities with those on the
carved giltwood fire screen
that Bonzanigo made in 
Turin for the King of Sardinia
in 1775. 
Italy, circa 1780
FoR Sale
A PAIR OF SIDE 
TABLES IN THE 
MANNER OF GUISEPPE
MARIA BONZANIGO Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
4
The magnificent interiors at Ely House retain
much of their original stucco work and provide
the type of setting that much of our furniture
and objects were originally created for. ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
5
Chairman’s Statement
2011 marks the end of an era for Mallett as we ended our 102 year
association with Bond Street and decided to move our London
showroom to a magnificent 18th century townhouse, Ely House 
in dover Street.
our results for 2011 show another improvement on the previous year with a profit
before tax for the year to 31 december 2011 of £0.5m (2010: loss of £1.4m). this
includes an exceptional profit of £1.3m on the assignment of our lease on 141 New
Bond Street. Excluding this exceptional profit, our loss before tax for the year of
£0.8m still represents a 45% improvement from the previous year.
Following the global financial market collapse in 2008, we recognised that our 
cost base was too high for the trading environment that was going to exist for 
the foreseeable future and we put in place a strategy to reduce that cost base
significantly. central to that strategy was reducing the rent on our London
showroom. We recognised that Bond Street had become a fashion street and no
longer provided us with the benefits of such a location for the rental cost we were
paying. However, we were clear that we would only move off Bond Street when 
we were able to achieve appropriate value for the lease on the New Bond Street
premises and find the right venue to showcase Mallett’s furniture and objets d’art 
for many years to come. We are very pleased with the premium of £1.7m that Fendi
agreed to pay us in order to take over our lease on 141 New Bond Street and we are
even more pleased with our new premises at Ely House which opened for business
at the end of February 2012. 
Ely House marks the start of a new era for Mallett and whilst we continue to be 
very conscious of cost control, we now have a strategy to grow the business which
will be centred around improving our margins, expanding our product range and
entering new geographical markets. the Board has concluded that cash resources
should be re-invested into the business at this stage to ensure the company is on 
a sound platform to deliver consistent profits in the future. therefore the Board did
not declare an interim dividend for 2011 and it is not recommending a final dividend 
for the year.
lord daresbury
Chairman
ely House marks the start of a new
era for Mallett 
We now have a strategy 
to grow the business
which will be centred
around improving our
margins, expanding 
our product range 
and entering new
geographical markets
Lord Daresbury Chairman Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
6
After twenty-five years of the European Fine Art Fair in Maastricht
(tEFAF), it seems appropriate to observe some of the changes that
have taken place since the economic crisis unfolded back in 2008.
the global art market has proven remarkably resilient compared to
the stresses and strains of other markets. After a nervous 2009 the
art market in general has grown 7% year on year with 2011 valuing
the global market at €46.1 billion. this has been fuelled by the
meteoric rise in the number of wealthy chinese. china overtook the
uS as the leading art and antiques market in 2011 with a 30% share
of both auction and gallery sales primarily in traditional collecting.  
our stand at tEFAF was well received by our traditional client base which resulted in
a number of sales including a unique pair of 18th century globes and was also visited
by collectors from Asia resulting in the sale of a rare solid ivory chair to a new client
from the Far East. 
the growth of the internet has increased access to the market for both buyers 
and sellers and made it less elitist. the event experience and internet access 
has changed the gallery business model with a number of dealers closing retail
spaces in light of rising property rents and relying on fairs and websites. others 
are investing in galleries to take advantage of the thinning out of competition. 
At the top end of the market where Mallett operates, I believe it is essential 
to maintain a top quality showroom environment in which to showcase the
magnificent pieces in which Mallett specialises. We are confident that securing 
a glamorous setting for Mallett within the leading city in the world for antiques 
on a much reduced cost base, sits well for the future. 
our new London showroom, Ely House, is a Grade 1 listed 18th century townhouse
and the former London palace of the Bishop of Ely, built between 1772 and 1776 by
the renowned architect Robert taylor. the magnificent interiors retain much of their
original stucco work and provide the type of setting for which much of our furniture
and objects were originally created and will enable our stock to be exhibited in the
finest possible environment. I believe its stylish interior represents the future of
private dealing in antiques and art. It is entirely in tune with the Mallett ethos and
manages to be grand but intimate and discreet at the same time. the new space will
provide an entirely new retail experience for our clients. It is located in dover Street,
another prime site in Mayfair close to our previous showroom in New Bond Street, but
our rental cost will be reduced by more than 50% whilst showroom space is increased.
With our cost base now reduced materially and certainty over our location for the
foreseeable future, we have the platform from which to grow the business and
deliver consistent profits in the future.
Chief Executive’s Report
Giles Hutchinson Smith
Chief Executive
LEOPARD CLIMBING OUT 
OF THE TREE
Bronze, Numbered edition of 12,
Signed Hamish Mackie, Dated 2011.
new StocK ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
7
The magnificent interiors of Ely House, which retain
much of their original stucco work, provide the type 
of setting that much of our furniture and objects were
originally created for and will enable our stock to be
exhibited in the finest possible environment. Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
8
Chief Executive’s Report continued
trading performance
the first seven months of 2011 showed encouraging signs of an improving
decorative arts market with interest levels much increased and sales growing.
unfortunately, this was not sustained after the summer holidays, most likely due 
to the instability that returned to the global financial market as Italy and Spain 
were drawn into the Eurozone problems which again made clients cautious.
despite this, we can report another significant improvement in our results from the
previous year. With the help of an exceptional profit of £1.3m on the sale of our New
Bond Street lease, the Group achieved a profit before tax of £0.5m (2010: loss of
£1.4m) for the year to 31 december 2011. Excluding the exceptional profit, the loss
before tax of £0.8m represents a 45% improvement from the previous year. Whilst
there has been a small reduction in our operating costs again this year, the principal
reason for the improved results in 2011 is an improvement in our gross margins. 
Our gross profit
increased to £651,000
(2010: £246,000) as
gross margin increased
by 3% reflecting good
buying opportunities
and our focused buying
strategy.
A PAIR OF 18TH CENTURY
BLACK AND GOLD LACQUER
SCREENS
A magnificent pair of late 18th
century Chinese three-fold screens
decorated in black and gold lacquer
of the finest quality, depicting lake
landscapes with rocy outcrops. The
reverse side of each panel is more
simply decorated with flowering
branches birds and other insects.
China circa 1790
Sold in 2011 ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
9
there was a 5% reduction in Group turnover to £12.7m (2010: £13.3m). 2010
included two sales of over £1m and, whilst there were a number of high value 
items sold in 2011, none reached those levels. our uS showroom had a significantly
quieter year in 2011 than previous years and the proportion of our total sales
accounted for by uS clients dropped from 39% to 34%. this reflects the cautious
mood in the uS and there was a perceptible shift towards interest in our more
modern items by our New York clients, which are generally less expensive. Sales 
into areas other than our core markets of Europe and the uS increased by 75% 
and this included a small number of sales into Hong Kong. We are beginning to
target the Far East as an area of growth and this is an encouraging start to our 
new marketing initiative in that area.
Whilst turnover dropped, our gross profit increased to £651,000 (2010: £246,000) 
as gross margin increased by 3%. this reflects good buying opportunities available,
in particular over the last three years, and our focused buying strategy, working
within the cash resources available, has managed to seek out and take advantage
of many of those opportunities. the net cash released by the move to Ely House
and the substantial reduction in our future rent costs should increase the cash
resources available to take advantage of more of these opportunities as they arise. 
the use of consignment stock in a period of limited cash resources has been 
a very effective way of maintaining our stock levels and we will continue to use 
this approach to preserve the freshness in our stock and attracting high value,
exceptional quality pieces to Mallett. However, the greatest profit is achieved from
owned stock that is purchased well and now, with a more sustainable cost structure
and a platform of Ely House to showcase the items, we will look at more ways to
unlock cash to invest in these opportunities. 
our marketing strategy continues to focus on exhibiting at fairs and the distribution 
of our catalogues. We exhibited at the same four fairs as in 2010 – at Palm Beach in
February; Maastricht in March; the Masterpiece Fair in London in June; and in New
York in october. In addition, in 2011 for the first time we exhibited at the Fine Art
Asia fair in Hong Kong in october. It was successful in raising the profile of Mallett
and making new contacts as well as useful in gaining a better understanding of the
tastes and culture in that area. We have subsequently hired a consultant, based in
Hong Kong, who will assist us during 2012 in our marketing into china and Hong
Kong, including providing market information and analysis, and setting up visits 
for our staff to a number of chinese cities.
We are also targeting other international markets as we develop a more multi-
lingual sales team which now includes Portuguese, Spanish, French and Italian
speakers, as well as Mandarin and cantonese from our consultant in Hong Kong. 
A number of successful trips have been made to Brazil and the model of those 
trips needs to be replicated to other destinations. 
We exhibited at Palm
Beach in February,
Maastricht in March, 
the Masterpiece Fair 
in London in June, and 
in New York in October. 
In addition, in 2011 
for the first time we
exhibited at the Fine 
Art Asia fair in Hong
Kong in October.
GIAN PAOLO PANINI 8 A PAIR 
OF ITALIAN LANDSCAPES
Panini was a prolific artist, and the
demand for his productions was great.
His vedute of ancient Rome became 
the hallmark of his style, and were 
avidly collected by both local patrons
and by visiting milordi from Britain 
and France. This pair of paintings, 
which show exceptionally high quality 
of both architecture and figures and 
are extremely well preserved, were
executed in 1743 for one of his
grandest patrons, the Rispogliosi
family of Roman aristocrats and
patrons of the arts and each is signed 
I P PANINI and dated 1743, one  on 
a stone on the right and the other on
an architectural fragment on the left.
Sold in 2011 Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
10
Subsidiaries and associates
James Harvey British Art Limited (“ JHBA”) had a very successful year more than
doubling both its turnover and profit. JHBA continues to grow in stature within 
the art market and is handling more high quality paintings, including in 2011 
an exceptional pair of Italian landscapes by Gian Paolo Panini dated 1743. the
profitability JHBA has generated over the last two years has earned James Harvey,
who runs JHBA with the support of Mallett, a further 10% equity interest in JHBA,
as agreed as part of the initial sale of 40% in JHBA to James Harvey in 2010. 
the 10% equity transfer is effective from 1 January 2012, at which point Mallett’s
interest in JHBA reduces to 50%. there are no commitments or current plans to
transfer any further shares in JHBA.
Hatfields increased its third party revenue by 5%, but the restoration work given 
to it by Mallett and its other shareholder, Gurr Johns Limited, reduced significantly
resulting in a small operating loss overall. Hatfields continues to provide a vital
service to Mallett in ensuring Mallett’s pieces are restored and maintained to the
highest quality. However, it needs to create a more sustainable platform that is less
reliant on shareholder business and we continue to look at ways to produce this. 
We also have capital invested in the premises that Hatfields uses and this is an area
where further cash can be unlocked as and when appropriate value can be obtained.
An encouraging number of Meta pieces were sold in 2011 and we have now sold
nine of the eleven design pieces at least once. the Meta brand remains strong and
it was pleasing to see that Barber osgerby, the design team that designed two of
the original Meta pieces, was selected to design the olympic torch for the London
olympics. We continue to look at new designs of items that would fit with the Meta
brand and we expect to launch at least one new product in 2012.
Masterpiece London Limited put on its second fair at the end of June at the Royal
Hospital, London. there were 152 exhibitors at the fair and 28,000 visitors over its six
days which represent a 29% and 58% increase respectively on the previous year’s fair.
In addition, £450,000 was raised for the charity clic Sargent through a Midsummer
party during the fair. We are very pleased that the fair became profitable in only its
second year of trading and Mallett’s share of that profit was £86,000. the majority of
the cash injected into the company by the shareholders in equal proportions during
the set up and first year of trading has already been repaid. the reaction to the fair
was again very favourable and we expect it will be a similar size in 2012.
costs
operating costs continue to be a focus of management and whilst the majority 
of the available cost savings have been made in the previous two years, operating
costs still fell again in 2011 by £0.1m. this was mainly attributable to the departure
of thomas Woodham-Smith at the end of 2010. In the current trading environment,
management continues to be mindful of the need for cost constraint but without
restricting the business too far in growing its sales and profits. there has been no
further reduction in staff numbers and our marketing spend was maintained at a
similar level to 2010.
the 15 year lease we have agreed on Ely House is at an initial annual rent of
£550,000, a reduction of £650,000 relative to 141 New Bond Street. A small section
of Ely House has been sub-let to Masterpiece London Limited and there have
Chief Executive’s Report continued
Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
A COALBROOKDALE CAST
IRON HALL STAND
A rare and large scale Coalbrookdale
hat and stick stand in polished steel
decorated in the Renaissance style
with elaborate geometric foliate 
and interwoven ornament.
England, circa 1880
new StocK ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
11
already been enquiries about hiring space for evening events and short exhibitions.
None of these must distract the focus of Ely House from being the showcase for our
furniture and works of art, but used judiciously such events can mitigate our rental
cost further and introduce Mallett to more prospective clients.
Stock
Inventory value has increased slightly to £12.3m at 31 december 2011 (2010:
£12.1m) as we have looked to maintain our inventory level in the knowledge that
greatest profit is achieved from owned stock that has been purchased well. A full
independent valuation of our inventory was undertaken at the year end, as an
update to the independent valuation that was undertaken three years ago. this
resulted in a net write back of previously made provisions of £0.3m and a total
valuation significantly in excess of the inventory value held in the balance sheet. 
In addition, we continue to take more items on consignment, the total cost of which
now exceeds £13m, and this has allowed us to exhibit some exceptional pieces.
Mallett has long been renowned for exhibiting the finest pieces of furniture from the
18th century and Regency period and it is a testament to the Mallett brand that we
continue to be offered such pieces and we continue to have success in selling them.
this continues with the sale, concluded in February 2012, of the chandos chairs, a
historic pair of George I armchairs with outstanding provenance which are amongst
the finest pieces of English furniture ever made.
the scale and grandeur of the Ely House rooms and hallways is ideally suited to
exhibiting such exceptional pieces and should ensure that more items are offered 
to us. they also give much more scope for exhibiting a wider range of items. In the
past Mallett has sold other outstanding pieces of art such as paintings by turner,
Monet and Lowry, exceptional needlework, carpets and sculpture. We will use the
Ely House setting to attract a broader range of stock to ensure that the eclectic
range of high quality works of art that is unique to Mallett will attract as many of 
the high-end collectors from around the world as possible.
A SET OF FOUR IVORY
CHARPOY AS A STOOL
A set of four mid 18th century 
turned ivory charpoy of rich colour,
with carved paterae atop mughal
arched pavilions on bulbous, tapering
supports. Now mounted as a stool.
India, circa 1740
Sold in 2011 Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
12
Balance Sheet and cashflow
Shareholders’ equity at 31 december 2011 was £15.4m (2010: £15.0m). the £0.4m
increase in the year represents the profit for the year offset by actuarial losses from
the Group’s defined benefit pension scheme.
the latest tri-annual actuarial valuation of Mallett’s defined benefit pension scheme
as at 31 May 2010 was finalised during 2011. the pension deficit had increased since
the previous valuation as at 31 May 2007, primarily due to poor investment returns
over the period. the company reached agreement with the trustees to maintain the
deficit contributions at £284,000 per year, but for this to be paid over a longer period
of nine years.
Net debt at 31 december 2011 was £1.1m (2010: £0.7m). the sale of the New Bond
Street lease completed in February 2012 and so the cash from the premium was
received after the year end. We have renewed our £2.5m overdraft limit with coutts
& co and we continue to target cash neutrality in the medium term.
outlook and Strategy
Whilst there is instability in the financial markets, it is likely that our clients will
remain cautious. However, as proved by the first part of 2011, stability generates
greater confidence and as and when this is achieved in the financial markets, so
interest in our products should grow. coupled with this, the excitement of our new
premises at Ely House should also generate interest. 
Since 2008 we have reduced the company’s fixed cost base substantially, creating 
a strong platform for future growth. We are now focused on a strategy to achieve 
this growth in a market for antiques and fine art which has evolved substantially
over the last decade in terms of the geographic spread of collectors, their tastes 
in antiques and fine art and the sales channels through which they are reached.
the majority of the global market for antiques and fine art remains centred around
the two hubs of London and New York where Mallett is based. However, we want 
to expand our reach internationally, particularly to the growing economies in the 
Far East and South America and we believe this can be achieved cost-effectively
through our presence at key fairs, direct relationships with collectors and online.
We want to grow our inventory with focused buying on good opportunities to
increase our margins and expand our product range to attract the broadest range 
of collector. Ely House provides the ideal location from which to achieve this while
enhancing Mallett’s status as the pre-eminent dealer in English antique furniture
and decorative arts.
We recognise this all requires investment and we will be exploring ways to generate
that investment so that we can deliver consistent profit growth into the future.
Giles Hutchinson Smith 
Chief Executive
Chief Executive’s Report continued
As proved by the first
part of 2011, stability
generates greater
confidence and as and
when this is achieved 
in the financial markets,
so interest in our
products should grow. ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
13
lord daresbury
Non-Executive Chairman, aged 58
Lord Daresbury joined the Company as a Non-
Executive Director in 2007 and was appointed Non-
Executive Chairman of the Company on 1 January
2009. He is currently Non-Executive Director of Jockey
Club Racecourses, Non-Executive Chairman of Nastar
plc and Non-Executive Chairman of Stellar Diamonds
plc. Formerly, he was Chief Executive of The Greenalls
Group plc and following the sale of the Pubs and
Restaurant Division to Scottish & Newcastle at the 
end of 1999, he became Non-Executive Chairman of 
the Company, which was re-named De Vere Group plc.
He retired from De Vere Group in April 2006.
Giles H. Hutchinson Smith
Chief Executive, aged 49
Giles joined the Company in 1983 before leaving 
in 1987 to spend time in America and at Aspreys 
in London. He re-joined the Company in 1993 and
became a director of the Company in 1999. He was
appointed Chief Executive in January 2009 and is
actively involved in the buying and selling of stock 
for the Group. He is currently Vice Chairman of the
British Antique Dealers Association and also serves 
on numerous vetting committees of international art 
and antique fairs. 
Michael a. Smyth-osbourne
Finance Director and Company Secretary, aged 45
Michael joined the Company, as Finance Director, 
in 2006. Previously he was Head of Corporate Finance 
at National Grid plc and Lattice Group plc, having
qualified as a Chartered Accountant with Deloitte 
& Touche in 1992.
M. Henry G. neville
Sales & Marketing Director, aged 52
Henry joined the Company in 1984 and became 
a director of the Company in 1999. He is currently
President of Mallett, Inc. with responsibility for the
Group’s New York showroom having moved to New 
York in 2006, as well as being responsible for the
Group's sales and marketing. He has been Chairman 
of the British Antique Dealers Association and
President of the International Trade Federation CINOA.
He has published a number of articles on the decorative
arts, particularly with reference to food and dining in
the 18th and 19th centuries. 
James Heneage
Independent Non-Executive Director and Chairman 
of the Audit and Remuneration Committees, aged 54
James was the founder of the Ottakar’s chain of
bookshops which he created in 1987, floated on 
the London Stock Exchange in 1998 and sold to
Waterstone’s, part of HMV UK, in 2006. Prior to 
that he spent five years in the advertising industry,
ending as an Account Director at Ogilvy and Mather.
Board of Directors Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
14
the directors of Mallett plc have pleasure in submitting their
annual report together with the audited ﬁnancial statements 
for the year ended 31 december 2011.
Activities and Business and Financial Review
the principal activities of the Group during the year were dealing
in high quality antique furniture and works of art. A review of the
activities of the Group is given in the chairman's Statement on
page 5 and the chief Executive's Report on pages 6 to 12.
Results
the results for the year are set out in full on page 26. the
operating proﬁt, before interest and tax, amounts to £447,000
(2010: loss of £1,269,000). After incurring net interest payable 
of £25,000 (2010: £18,000) and gaining a share of proﬁt in
associate of £86,000 (2010: loss of £131,000), the proﬁt on
ordinary activities before taxation amounts to £508,000 (2010:
loss of £1,418,000). After taxation of £50,000 (2010: £1,137,000),
there remains a proﬁt of £458,000 (2010: loss of £2,555,000).
Included in the results for the year is an exceptional proﬁt 
of £1,282,000 relating to the assignment of the Group's lease 
on 141 New Bond Street, London. the assignment was
unconditionally agreed on 4 November 2011 and completed 
on 23 February 2012, after the balance sheet date.
Principal Risk and Uncertainties
the Group's operating results and liquidity are signiﬁcantly
inﬂuenced by a number of risk factors, many of which are not
within its control. these factors, which are not ranked in any
particular order, include:
Banking crisis/ﬁnancial shock to the global system
Loss of conﬁdence in the banking sector by our clients will make
them much less likely to spend on high value luxury items such
as our goods. to manage this risk we monitor our cashﬂow and
costs closely to ensure security in times of low demand.
The strength of the UK and US economies and ﬁnancial markets
the antique and ﬁne art market in which the Group operates is
centred on London and New York and is inﬂuenced by the overall
strength of the uK and uS economies. Historically, over 70% of
the Group's sales are to uK and uS clients. to manage this risk
we monitor our cashﬂow and costs closely to ensure security in
times of low demand.
The demand for antique furniture and works of art
the demand for antique furniture and works of art is inﬂuenced
not only by the economic conditions but also by changing trends
in the art market as to which kinds of property are most sought
after and by the collecting preferences of individual collectors, 
all of which can be unpredictable. to manage this risk we focus
on strong client relations to maintain our awareness of changing
tastes and we take this into account when buying stock.
Key personnel
the knowledge and expertise of the Group's buyers in acquiring
pieces of high quality and good value is critical to maintaining 
the company brand and to the success of the Group.
the ability of the Group's sales team to develop and maintain
relationships with potential buyers of antique furniture and 
works of art is critical to the success of the Group. Accordingly,
the Group is highly dependent upon attracting and retaining
appropriately qualiﬁed personnel. A strongly incentivised bonus
structure is in place to reward success.
Competition
the art market is highly competitive, including competition 
with other art dealers and with auctioneers. Strong client
relationships maintain loyalty to Mallett.
Value of artworks
the antique furniture and works of art market is not a highly
liquid trading market, as a result of which the realisable value 
of inventory is relatively subjective and often ﬂuctuates over
time. our team is very aware of market conditions to know the
value of an item at any one time. on a periodic basis we consult
with external parties in our consideration of the carrying value 
of inventories.
Availability and access to good buying opportunities
the availability of high quality items for Mallett to purchase is
very important in being able to maintain Mallett’s reputation for
exhibiting the best. our team maintains strong relationships with
collectors and other dealers to ensure awareness of when good
quality items become available.
Foreign currency exchange rate movements
A signiﬁcant proportion of the Group's sales are in uS dollars 
and a number are in Euros. Accordingly, ﬂuctuations in exchange
rates can have a signiﬁcant impact on the Group's results. uS
dollars are exchanged into £ Sterling on a regular basis to match
cash received with sales made.
Retirement beneﬁt pension obligations
Future costs and obligations relating to the Group's deﬁned beneﬁt
pension scheme are signiﬁcantly inﬂuenced by changes in interest
rates, investment performance in the debt and equity markets and
acturial assumptions, each of which is unpredictable. An actuarial
valuation is performed every three years with a recovery plan
agreed with the trustees to eliminate any deﬁcit.
Financial Risk Management
the main ﬁnancial risks to the Group relate to the availability 
of funds to meet it's business needs. Further disclosure on the
Group's ﬁnancial risk management can be found in note 3 and
note 18 to the accounts.
Key Performance Indicators
the directors consider the following to be key performance
indicators of the Group:
Financial 2011 2010
turnover (£'000) £12,665 £13,255
Gross margin 5.14% 1.85%
operating proﬁt/(loss) (£'000) £447 (£1,269)
Net debt (£'000) (£1,121) (£650)
Net assets per share £1.13 £1.09
Non ﬁnancial
Customer satisfaction
We strive to improve our service to new and existing customers,
ensuring high standards of customer satisfaction. the directors
regularly talk to existing clients to gauge the level of satisfaction
in the services provided. 
Report of the Directors
Year ended 31 december 2011 ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
15
Employee development and turnover
We are committed to attracting and retaining the highest calibre
of employees and developing their professional careers. the
directors undertake staﬀ reviews at the end of each year to
assess the calibre and development of staﬀ and review staﬀ
turnover at the end of each year.
Dividends
there was no interim dividend paid in 2011 (2010: nil) and the
directors do not recommend a ﬁnal dividend for 2011 (2010: nil).
Directors
the names of the directors who served the company during the
year are shown below. details of their biographies are on page 13.
Lord daresbury*
J.A. Heneage*
G.H. Hutchinson Smith
M.H.G. Neville
M.A. Smyth-osbourne
* non-executive
Directors' Interests
details of the directors’ interests in the company’s share capital
are included in the directors' Remuneration Report on pages 22
and 23.
Apart from service contracts, none of the directors had a
material beneﬁcial interest in any contract in which the
company or any of its subsidiaries was a party during the year.
there were no changes in the interests of the directors between
31 december 2011 and 28 March 2012.
Share Capital and Control
the issued share capital of the company consists of 13,800,060
ordinary shares of 5 pence each. there are no restrictions on the
transfer of securities in the company other than those imposed
by law and regulations and pursuant to the Listing Rules of the
Financial Services Authority whereby directors and senior
employees of the Group may require the approval of the
company to deal. the company is not aware of any agreements
between holders of securities that may result in restrictions on
the transfer of securities in the company.
the full rights and obligations attached to each class of share, 
in addition to those conferred on their holders by law, are set out
in the company’s Articles of Association, a copy of which can be
obtained by writing to the company Secretary. the Articles of
Association also set out the rules governing the appointment
and replacement of the board members. Any changes to the
Articles of Association must be approved by special resolution 
of the company. Further details of the share capital of the
company are set out in note 22 to the accounts.
the Group operates a Share Incentive Plan for the beneﬁt of 
all its employees. the shares are held in a trust on behalf of 
the employees. As at 31 december 2011 the trust held 466,042
ordinary shares and any voting or other similar decisions
relating to those shares would be taken by the trustees, who
may take account of the recommendations of the company 
and the employees.
the Group also operates a Long term Incentive Plan for the
benefit of its directors. the shares are held in a trust on behalf
of the directors. As at 31 december 2011 the trust held 94,436
ordinary shares and any voting or other similar decisions
relating to those shares would be taken by the trustees, who
may take account of the recommendations of the company 
and the employees.
At the company's 2011 Annual General Meeting shareholder
authority was given to purchase up to 10% of the company's
ordinary shares. the directors intend to seek shareholder approval
to renew this authority at this year's Annual General Meeting. 
there are no signiﬁcant agreements to which the company is a
party which take eﬀect, alter or terminate in the event of a change
of control of the company. there are also no agreements providing
for compensation for directors or employees on change of control.
Substantial Shareholdings
As at 28 March 2012, the company has received notiﬁcation 
of the following substantial shareholdings amounting in each
case to more than 3 per cent of the issued share capital of 
the company:
5p ordinary Shares %
the Weinstock trust Additional Fund 4,130,000 29.93
Peter Gyllenhammar 3,439,500 24.92
church House Investments 1,150,000 8.33
Stichting Value Partners 676,000 4.90
Henderson Global Investors 554,000 4.01
Mrs. S. Fenwick 534,000 3.87
Mallett Share Incentive Plan 466,042 3.38
Close Company Status
the company is not a close company within the meaning of the
Income and corporation taxes Act 1988.
Creditor Payment Policy
Whilst the Group does not follow any published code or standard
on payment practice, it continues to be the Group's policy to pay
its suppliers in the middle of the month following receipt of the
invoice except in certain cases where the Group agrees special
terms, in which case it is the Group's policy to ensure the supplier
is aware of them and to abide by those terms provided the
supplier has performed in accordance with the relevant terms
and conditions. As at the ﬁnancial year end the number of days'
purchases outstanding was thirty days, excluding transactions
with special credit terms.
Approval of Directors' Remuneration Report
In accordance with the companies Act 2006, directors of quoted
companies are required to prepare a remuneration report which
must be approved by the members of the company at the
meeting at which the company's annual accounts are to be laid.
the directors' Remuneration Report contains inter alia details 
of the directors, a forward looking statement of the company's
policy on directors' remuneration for subsequent ﬁnancial years,
a performance graph showing the company's total shareholder
return and the return on a hypothetical holding of similar shares
to those on which a broad equity market index is calculated, 16
Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
details of the directors' service contracts and speciﬁc disclosures
relating to each director's remuneration.
Resolution 2 will be proposed at the 2012 Annual General
Meeting as an ordinary resolution to approve the directors'
Remuneration Report for the year ended 31 december 2011 
as set out on pages 19 to 23 of the these accounts.
Corporate Governance
the Group’s statement on corporate governance can be found 
in the corporate Governance Report on pages 17 to 18 of these
ﬁnancial statements. the corporate Governance Report forms
part of the Report of the directors and is incorporated by cross
reference.
Auditors and Disclosure of Information to Auditors
during the year Menzies LLP resigned as auditors of the
company pursuant to section 519 of the companies Act 2006.
the circumstances leading to their resignation related to a
disagreement between them and the Audit committee during
the audit of the ﬁnancial statements for the year ended 31
december 2010 regarding the appropriateness of carrying a
deferred tax asset on the Group balance sheet. Following the
recommendation of the Audit committee, the Board appointed
Bdo LLP pursuant to section 489(3) of the companies Act 2006.
Each of the directors conﬁrms that so far as he is aware, there 
is no relevant audit information of which the company's auditors
are unaware and that he has taken all steps that he ought to
have taken as a director in order to make himself aware of any
relevant audit information and to establish that the company's
auditors are aware of that information.
Annual General Meeting
the 2012 Annual General Meeting will be held at Ely House, 
37 dover Street, London W1S 4NJ on 31 May 2012 at 4.30 pm.
the notice for the 2012 Annual General Meeting is included in
these accounts on page 53. the business to be transacted at 
the Annual General Meeting includes the following:
Resolution 4 – Authority to allot shares or grant subscription 
or conversion rights (ordinary resolution)
Resolution 4 asks shareholders to grant the directors authority
under section 551 of the companies Act 2006 (the “Act”) to 
allot shares or grant such subscription or conversion rights as 
are contemplated by sections 551(1)(a) and (b) respectively of
the Act up to a maximum aggregate nominal value of £230,001, 
being approximately one-third of the nominal value of the issued
ordinary share capital of the company as at 28 March 2012. 
the authority will expire ﬁve years from the date of the passing 
of the resolution (unless previously revoked or varied by the
company in general meeting). the resolution replaces a similar
resolution passed at the Annual General Meeting of the
company held on 24 May 2011. the directors have no present
intention of exercising such general authority.
Resolution 5 – Purchase of own shares by the Company 
(special resolution)
Resolution 5 seeks authority from holders of ordinary shares 
of 5p in the capital of the company (“ordinary Shares”) for the
company to make market purchases of its own ordinary Shares,
such authority being limited to the purchase of 10% of the
ordinary Shares in issue as at 28 March 2012. the maximum
price (exclusive of expenses) payable for the purchase by the
company of its own ordinary Shares will be limited to 5% above
the average price at which deals are done in the ordinary Shares
taken from the Appendix to the London Stock Exchange daily
oﬃcial List for the ﬁve business days before the purchase is
made. the minimum price payable by the company for the
purchase of its own ordinary Shares will be 5p per share (being
the amount equal to the nominal value of an ordinary Share).
the authority to purchase the company’s own ordinary Shares
will only be exercised if the directors consider that there is likely
to be a beneﬁcial impact on earnings per ordinary Share and 
that it is in the best interests of the company at the time.
there were no options to subscribe for ordinary Shares
outstanding as at 28 March 2012.
Resolution 6 – Calling of general meetings (special resolution)
Resolution 6 to be proposed at the Annual General Meeting
seeks authority from shareholders to hold general meetings
(other than Annual General Meetings) on 14 days' clear notice.
this is permissible under the Existing Articles and the 2006 Act.
However, pursuant to the Shareholders' Rights Regulations,
speciﬁc shareholder approval is required annually in order to
retain this ability. the directors believe that there may be
circumstances in which it will be important for the company 
to be able to call meetings at such short notice. Accordingly, 
the directors believe that it is important for the company to
retain this ﬂexibility.
the Board believes that the resolutions to be put to the Annual
General Meeting are in the best interests of the shareholders as 
a whole and accordingly recommends that shareholders vote in
favour of the resolutions, as the directors intend to do in respect,
where applicable, of their beneﬁcial holdings in the company.
Auditors' Independence and Objectivity
the Board recognises the importance of ensuring the
independence and objectivity of the company's auditors. 
It reviews the nature and extent of the services provided by
them, the level of their fees and the element comprising non-
audit fees. details of these are disclosed in note 7 to the
accounts. the Board also receives annual conﬁrmation from 
the auditors of their independence. 
A resolution will be proposed at the 2012 Annual General Meeting
to re-appoint Bdo LLP as auditors to the company for the ensuing
year and authorising the directors to ﬁx their remuneration.
By order of the Board
M.A. Smyth-osbourne AcA
Secretary
29 March 2012
Report of the Directors continued
Year ended 31 december 2011 ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
17
Application of Combined Code Principles
throughout the year, except where indicated in this report, the
company complied with the provisions of the uK corporate
Governance code issued by the Financial Reporting council. the
company is committed to the principles of corporate governance
contained in the uK corporate Governance code (as applicable)
and aims to comply with established best practice whenever
possible and when it is in the company’s best interests. Further
information on the uK corporate Governance code which
currently applies to the company can be found at the Financial
Reporting council’s website at www.frc.org.uk. 
The Board
throughout the year the Board consisted of a non-executive
chairman, separate chief Executive, one independent non-
executive director and two other executive directors. Please refer
to page 13 for further details on the directors, including their roles
and for the non-executive directors, their other commitments.
the Board considers the non-executive director to be
independent of management and free from any business or 
other relationship which could interfere with the exercise of his
independent judgement. He has not previously been employed
by the company and the Board believes that his interest in
receiving fees as a director does not prejudice his independence.
He brings an independent judgement to bear on issues of
strategy, performance, resources, the appointment of executive
directors and other key appointments, and standards of conduct.
He is also the senior independent non-executive director. the
Board recognises that having only one independent non-
executive director throughout the period under review is not in
compliance with B.1.2 of the uK corporate Governance code
which requires the company to have two independent non-
executive directors. However, the Board believes the current
make-up of the Board is appropriate for Mallett given its size 
and operational characteristics.
the Board met ten times during the year. Lord daresbury, Giles
Hutchinson Smith and Henry Neville attended all the meetings
and the other directors attended nine out of the ten meetings in
the year.
the Board has a formal schedule of matters speciﬁcally reserved
to it for decisions. this includes the determination of strategy, 
the approval of business plans and budgets, the approval of
acquisitions, disposal and major capital purchases, and the
approval of the annual and interim reports of the company,
including the interim dividend and recommendation of the ﬁnal
dividend to shareholders, and the appointment of directors.
the directors have the right to obtain external independent
professional advice at the company's expense. the company
Secretary is responsible to the Board, inter alia, for ensuring 
that Board procedures are followed and for compliance with
applicable rules and regulations including the uK corporate
Governance code.
the Board has formal and informal procedures to monitor its
peformance both as individuals at annual appraisals and as 
a Board or committee.
Full details of the directors’ service contracts and remuneration are
given in the directors’ Remuneration Report on pages 19 to 23.
Relations with Shareholders
the Board is responsible for ensuring the company maintains a
satisfactory dialogue with shareholders. A number of meetings
were held during the year between members of the Board and
the major shareholders of the company, including a presentation
of the Group's 2010 results in April 2011.
the directors consider signiﬁcant shareholdings to be holdings
where an individual holds a direct or indirect shareholding of
greater than 20% of the company’s ordinary share capital.
to the extent that the company is aware, the signiﬁcant
shareholdings identiﬁed in the substantial shareholdings 
section of the Report of the directors are held by those
individuals for the purpose of investment potential.
the Board welcomes as many shareholders as possible to attend
the Annual General Meeting and encourages discussion on issues
of concern or areas of uncertainty. Questions from shareholders
are welcomed. A separate resolution will be proposed at the
Annual General Meeting in respect of each substantially separate
issue. there will also be a separate resolution proposed in respect
of the report and ﬁnancial statements.
Audit Committee
the Audit committee is made up of all the non-executive
directors and is chaired by James Heneage. two Audit
committee meetings were held during the year which were
attended by all the members of the Audit committee. those
meetings were also attended by the chief Executive, the 
Finance director and the external auditors.
the Audit committee has written terms of reference, which 
deal clearly with its authority and duties. the duties of the Audit
committee include keeping under review the scope and results 
of the audit, its cost eﬀectiveness and the independence and
objectivity of the auditors.
Nominations Committee
No formal Nominations committee has been set up by the
Board. All matters regarding the appointment of directors 
are made by the Board as a whole. In view of the size of the
company the Board considers it appropriate to undertake 
this function as a whole. this is not in compliance with the 
uK corporate Governance code which requires a nominations
committee, with the majority of members being independent
non-executive directors to lead the process of Board
appointments.
Directors' Conﬂicts of Interest
In compliance with the conﬂicts of interest regime under the 
Act, the company's Articles of Association contain procedures 
to deal with directors' conﬂicts of interest which the Board fully
implements. the Board considers that these have operated
eﬀectively throughout the year.
Corporate Governance
Year ended 31 december 2011 Internal Control and Financial Reporting
the company complies with the current requirements for reporting
and controls and has had an Audit committee throughout the year,
which is made up of all the non–executive directors.
the Board has overall responsibility for the Group’s system of
internal control and has reviewed the eﬀectiveness of the 
Group’s system of ﬁnancial control during the year. the system 
is designed to provide reasonable but not absolute assurance
against material misstatement or loss.
the Group operates a comprehensive annual reporting and
ﬁnancial operating system which involves a review of the results
with projections on a monthly basis. At each of its meetings the
Board reviews the performance of the major business units
across the Group.
the Group has put in place an operational structure with clearly
deﬁned lines of authority and accountability, particularly in the
areas of capital and stock expenditure. due to the small size of
the Group, there is no separate internal audit function. A key
control procedure is the day to day supervision of the business 
by the executive directors, supported by the senior managers
with responsibility for key operations.
the eﬀectiveness of the Group’s systems of internal control 
is monitored by the Audit committee and is reviewed on a 
regular basis. the review covers all controls, including ﬁnancial,
operational and compliance controls and risk management.
Going Concern
In consideration of going concern, the directors have reviewed 
the Group’s future cashﬂow forecasts and revenue projections
which they believe are based on a realistic assessment of future
business performance.
the Group’s forecasts and projections, taking account of
reasonable possible changes in trading performance, show 
that the Group should be able to operate within the level of 
its agreed facilities. therefore, the directors have a reasonable
expectation that the Group has adequate resources to continue
in operational existence for the foreseeable future. For this
reason, they continue to adopt the going concern basis in
preparing the accounts.
Corporate Social Responsibility
the company adopts a responsible attitude to Social
Environmental and Ethical (SEE) issues. the Board has
concentrated on suitable training and health and safety
measures to ensure compliance with best practice.
18
Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
Corporate Governance continued
Year ended 31 december 2011 ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
19
Directors’ Remuneration Report
Year ended 31 december 2011
this report has been prepared in accordance with the Act. the
report also meets the relevant requirements of the Listing Rules
of the Financial Services Authority and describes how the Board
has applied the principles relating to the directors' remuneration
in the uK corporate Governance code. As required by the Act, a
resolution to approve the report will be proposed at the Annual
General Meeting of the company at which the ﬁnancial
statements will be approved.
the Act requires the auditors to report to the company's
members on certain parts of the directors' Remuneration Report
and to state whether in their opinion those parts of the report
have been properly prepared in acordance with the Act. this
report has therefore been divided into separate sections for
audited and unaudited information.
PART 1 – UNAUDITED INFORMATION
The Remuneration Committee
the role of the Remuneration committee is to establish Board
policy in respect of terms of employment, including remuneration
packages, for each executive director and certain senior
managers, and to monitor their development programmes. the
Remuneration committee seeks to encourage the enhancement
of the Group’s performance and to ensure that directors are fairly,
and responsibly, rewarded for their individual contributions.
Accordingly, it can conﬁrm that it has taken into account the
provisions of the uK corporate Governance code in framing its
remuneration policy. the Remuneration committee consults with
the chief Executive and Finance director, who may be invited to
attend some meetings, and it has access to professional advice
from both internal and external sources in order to determine 
and develop its policies.
during the year the Remuneration committee comprised of
James Heneage as chairman and Lord daresbury, being both
the non-executive directors, who are not paid for their services
relative to the amount of work undertaken and do not receive
any share options, bonuses or pension entitlements. It met two
times in the year and both members attended the meetings.
Directors’ Remuneration Policy
the company’s current and ongoing policy on remuneration is 
to ensure that the remuneration packages for executive directors
are competitive and designed to attract, retain and motivate
individuals of the highest calibre, whilst at the same time having
regard to the pay and employment conditions of employees
throughout the Group.
the Remuneration committee's policy is that remuneration
packages should be competitive but not extravagant, and should
be broadly in line with the average packages in the market 
in which the company operates. In addition, there should 
be a clear link between performance and remuneration.
Reward Package
the remuneration policy is applied in respect of each component
part of the total remuneration package as follows:
Basic Salary
Basic salaries, including beneﬁts, are set at levels consistent with
individual performance, and the market rate applicable to jobs of
similar complexity and responsibility. to measure this, the
Remuneration committee reviews the basic salaries of the
executive directors annually.
Beneﬁts
the term “beneﬁts” includes the payment of a car allowance,
private health insurance and other non-cash taxable beneﬁts.
Bonuses
All executive directors are eligible to receive performance
bonuses based on the proﬁtability of the Group. Performance
bonuses are at the sole discretion of the Remuneration
committee. For 2012, stretching targets for proﬁt before tax 
have been set on a sliding scale basis with G. H. Hutchinson
Smith's bonus, as chief Executive, capped at 75% of salary and
the other executive directors' bonus capped at 60% of salary.
Pensions
the executive directors, except M. A. Smyth-osbourne, are
members of the Group's deﬁned beneﬁts pension scheme, which
will provide them, at normal retirement age (of 65 years old), with
a pension of up to two thirds of their salary, subject to length of
service, HM Revenue and customs limits and other statutory
rules. Spouses become entitled to 50% of the director’s pension
entitlement following the death of the director. this scheme is
closed to new entrants and closed to future accrual.
those executive directors now contribute into the Mallett Group
Personal Pension Plan, a deﬁned contribution pension scheme
open to all employees. the Group contributes up to 10% of salary
into the scheme dependent on the level of contribution by the
employee.
the company contributes to a separate deﬁned contribution
scheme for M. A. Smyth-osbourne.
Share Incentive Plan
the Group operates a share incentive plan to beneﬁt all
employees. under this plan each director has been awarded
Mallett plc ordinary shares (“Shares”) with a value of £3,000 
in 2011 (Free Shares). these Shares are held in trust and 
the directors only become entitled to them if they remain in
employment for at least three years from the date of the award.
the plan also entitles employees, including directors, to acquire
at their own expense up to £1,500 worth of Shares (Partnership
Shares) in any one year to be held in trust under a partnership
agreement. the company has agreed to provide two matching
Shares for every Partnership Share purchased on behalf of the
employee (Matching Shares).
Any dividends received by the trustees on behalf of employee
shares held under the Share Incentive Plan are reinvested as
dividend Shares.
details of the directors’ interests held under the Share Incentive
Plan are shown on page 22.
the entitlement of the directors under the Share Incentive Plan 
is not subject to any performance conditions (though they are
subject to service conditions). this is because the Share 
Incentive Plan is a plan for all employees of the company and 
no employees’ entitlement under it is subject to performance
conditions. Additionally, the aim of the plan is to encourage
employee shareholding in the company. 20
Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
Directors’ Remuneration Report continued
Year ended 31 december 2011
Long Term Incentive Plan (“LTIP”)
the LtIP provides for the Remuneration committee to grant
conditional awards over Shares to executive directors and 
other employees of the Group, selected at the discretion of 
the Remuneration committee.
An individual may not be granted awards in any ﬁnancial year
over Shares having a market value at the award date in excess 
of 100 per cent of the individual's annual base salary. on the
grant of an award the Remuneration committee shall impose
performance conditions and any further conditions on vesting
which it determines to be appropriate.
Awards will normally vest at the end of a performance period 
of three years, as soon as the Remuneration committee has
determined the extent to which the applicable performance
conditions have been met. the Remuneration committee may
review the performance conditions for each grant of awards and
may vary the conditions of such awards, provided they remain
challenging and are aligned with the interests of shareholders.
one LtIP award existed during the year, the 2009 Award, and 
the performance conditions for this are as follows:
2009 Award
Proportion of 
award vesting EPS for the year ended 31 december 2011
0% Less than 3.0 pence
25% 3.0 pence
25%-100% pro-rata Greater than 3 .0 pence but 
less than 10.0 pence
100% 10.0 pence or more
It is currently intended that market purchased Shares are used 
to fulﬁl the 2009 Award, although there is ﬂexibility to issue new
Shares, subject to institutional guidelines.
the Remuneration committee has determined that a further
LtIP award should be granted in 2012 (the “2012 Award”) worth
the equivalent of 100% of an executive director's salary. the
2012 Award will be capable of vesting 50% after three years,
25% after four years and 25% after ﬁve years. the performance
condition for vesting of the 2012 Award is based on Proﬁt Before
tax (“PBt”) and the performance condition range is set as
follows:
2012 Award
PBt required to Proportion of 
be achieved in: award vesting
0% 100%
2014 (50% of award) £750,000 £1,100,000
2015 (25% of award) £1,075,000 £1,500,000
2016 (25% of award) £1,350,000 £1,900,000
there will be progressive vesting between 0% and 100% for
intermediate performance. to the extent there is not full vesting
of the part of the award assessed in 2014 or 2015, the balance 
of the award outstanding will be rolled over and assessed as 
part of the next year's assessment. to the extent targets are 
not achieved in 2016, the outstanding award will lapse.
Fees for Non–Executive Directors
the Board as a whole determines the remuneration of the non–
executive directors.
Service Agreements
the Remuneration committee reviews the position in respect 
of the length of notice of termination under directors’ service
agreements and it is current policy for the company to appoint
executive directors subject to a service agreement requiring not
more than 12 months’ notice to be given by either party. the
Remuneration committee considers that the period of notice of
termination under directors’ service agreements is appropriate 
in order to retain and recruit directors of a suitable calibre. these
appointments are subject to election and re–election at the
relevant Annual General Meeting according to the company's
Articles of Association.
G. H. Hutchinson Smith and M. H. G. Neville entered into
director's service contracts on 31 August 1999 and each has a
notice period of twelve months. M. A. Smyth-osbourne entered
into a director's service agreement on 6 November 2006 and its
notice period was increased from six months to twelve months 
by the Remuneration committee on 20 March 2012 in order 
to bring it into line with the other executive directors.
the executive directors have no contractual provisions for
compensation upon early termination (with notice) of the
contract. there is an entitlement to receive salary and beneﬁts
during the period of notice, which may be paid ‘in lieu’ of all 
or part of any period of notice. there are no entitlements to
payments of any sort in the event that the company summarily
terminates an executive director’s employment.
Independent non-executive directors do not have service
agreements and, in accordance with the company's Articles of
Association, their appointment may be terminated at any time
without compensation.
Performance Graph
As required by legislation regarding the directors’ Remuneration
Report, this graph illustrates the performance of the company
measured by total shareholder return (share price growth plus
dividend paid) against a “broad equity market index” over the
past 5 years. the company has been a constituent of the FtSE
Fledgling index throughout this period, therefore this is
considered to be the most appropriate benchmark.
notes
1) the graph shows total shareholder return of a nominal holding of £100
of Mallett plc shares measured against the total shareholder return 
of an initial nominal holding £100 in the FtSE Fledgling index over a
ﬁve year period.
2) dividends have been reinvested.
0 
20 
40 
60 
80 
100 
120 
140 
160 
180 
30 Dec ‘05 30 Dec ‘06 30 Dec ‘07 30 Dec ‘08 30 Dec ‘09 30 Dec ‘10 
   
Mallett 
Mallett TR 
FTSE Fledgling 
FTSE Fledgling TR  21
ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
PART 2 – AUDITED INFORMATION
Directors’ Emoluments
the emoluments of the directors were as follows:
2011 2010
£’000 £’000
Salaries and beneﬁts 596 637 
compensation for loss of oﬃce - 56 
Share based payments 31 31 
Payments made to non-executive directors 80 85 
707 809 
company pension contributions and payments 52 62 
759 871 
2011 2011 2011 2011 2010 2011 2010
Basic salary Performance pension Pension 
and fees related bonus Beneﬁts total total contributions contributions
£’000 £’000 £’000 £’000 £’000 £’000 £’000
executive directors
G.H. Hutchinson Smith 133 57 22 212 177 13 13 
M.H.G. Neville 130 49 12 191 160 11 10 
M.A. Smyth-osbourne 127 54 12 193 158 28 29 
t.E. Woodham-Smith -  -   -   - 143 - 10 
non-executive directors
Lord daresbury 40 -   -   40 40 - -   
J. Heneage 30 -   -   30 30 - -   
50% of the performance related bonus is paid to the executive directors in cash and 50% is paid in the form of shares in Mallett plc. 50% of
the share element of the bonus is deferred for 1 year.
£10,000 (2010: £15,000) was paid to daresbury Properties Limited, a company controlled by Lord daresbury, for oﬃce expenses incurred in
his role as non-executive director of the company.
Directors' Pensions
G.H. Hutchinson Smith and M.H.G. Neville are deferred members of the Group's deﬁned beneﬁts pension scheme and the table below
shows their accrued beneﬁt at the year end.
current age director Accumulated total annual transfer Value as at Movement
contributions beneﬁt on leaving service 31  december in transfer
during year Increase in year At end of year 2011 2010 Value
£’000 £’000 £’000 £’000 £’000 £’000
G.H. Hutchinson Smith 49 -   -   27 378 294 84 
M.H.G. Neville 52 -   -   40 443 472 (29) 
during the year the Group contributed £13,000 (2010: £13,000) into the Group's deﬁned contribution pension scheme for G.H. Hutchinson
Smith, £28,315 (2010: £29,744) into a separate deﬁned contribution pension scheme for M.A. Smyth-osbourne and gave a pension
entitlement of £10,760 (2010: £10,119) to M.H.G. Neville. 22
Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
Directors’ Remuneration Report continued
Year ended 31 december 2011
Directors' Interests
At 31 december 2011 the directors of the company and persons connected to them had the following interests in the company’s share
capital:
31 december 2011 31 december 2010
5p ordinary shares 5p ordinary shares
non-beneﬁcial Beneﬁcial Non-beneﬁcial Beneﬁcial
Lord daresbury - -   - -   
James Heneage - 10,000 - 10,000 
G.H. Hutchinson Smith - 36,843 - 23,212 
M.H.G. Neville - 43,292 - 32,003 
M.A. Smyth-osbourne - 24,316 - 15,375 
on approval of these ﬁnancial statements, G.H. Hutchinson Smith will have interest in a further 67,711 shares, M.H.G Neville will have 
an interest in a further 55,451 shares and M.A. Smyth-osbourne will have interest in a further 63,532 shares. these shares relate to the
share element of the performance related bonus and the vesting of the 2009 LtIP Award both of which are based on the results of these
ﬁnancial statements.
Directors' Interests in the Share Incentive Plan
during the year the executive directors were awarded Free Shares with a value of £3,000 (2010: £3,000). G.H. Hutchinson Smith and 
M.A. Smyth-osbourne acquired, at their own expense, Partnership Shares to the value of £1,500 (2010: £1,500) and, under the two for one
matching arrangement, the Group therefore purchased Matching Shares to the value of £3,000 (2010: £3,000) for each of those directors.
the table below gives details of the directors’ holdings of shares awarded under the Share Incentive Plan.
G.H. Hutchinson Smith M.H.G. Neville M.A. Smyth-osbourne
total interest as at 01.01.11 Number of ordinary shares 39,227 16,672 29,919 
Number of Shares acquired/(awarded) during the year
Free granted 4,225 4,225 4,225 
exercised (1,224) (1,224) -   
Partnership Shares granted 2,228 -   2,228 
exercised (619) (309) -   
Matching Shares granted 4,456 -   4,456 
exercised (1,237) (619) -   
dividend Shares granted -   -   -   
exercised (1,244) (966) (137) 
total interest as at 31.12.11 Number of ordinary shares 45,812 17,779 40,691 
End of the period of latest qualifying conditions 01/05/2015 01/05/2015 01/05/2015
the market price of the Shares exercised in the year at the date of exercise was 71 pence per share. ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
23
Directors' Interests in the Long Term Incentive Plan
the table below gives details of the directors’ holdings of shares awarded under the Long term Incentive Plan.
conditional Market conditional
date of awards as at Awards Awards Awards price at awards as at Release
award 31 dec 2010 lapsed vested granted award 31 dec 2011 date
G.H. Hutchinson Smith Feb 09 105,691 74,195 31,496 -   0.615 -   Mar 12
M.H.G. Neville Feb 09 82,859 58,167 24,692 -   0.615 -   Mar 12
M.A. Smyth-osbourne Feb 09 98,125 68,884 29,241 -   0.615 -   Mar 12
the 2009 LtIP Award vested based on a performance condition of the EPS of the Group for the year ended 31 december 2011. 
the Remuneration committee decided that the exceptional item included in the results of the Group for the year ended 31 december 
2011 relating to the proﬁt on the sale of the lease on 141 New Bond Street should be included within EPS for the determination of the
performance criteria for the 2009 Award. this is because the sale of the lease for appropriate value was an integral part of the strategy 
for the Group set by the Board. EPS for the year ended 31 december 2011 is 3.44p which means that 30% of the 2009 Award vests. 
this has been reﬂected in the table above. the market price of the LtIP shares on vesting was 79 pence per share. 
No further LtIP awards have been made to date.
Approved by the board on 29 March 2012 and signed on its behalf:
M.A. Smyth-osbourne A.c.A. Secretary 24
Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
Statement of Directors’ Responsibilities
Year ended 31 december 2011
the directors are responsible for preparing the annual report 
and the ﬁnancial statements in accordance with applicable 
law and regulations. 
company law requires the directors to prepare ﬁnancial
statements for each ﬁnancial year. under that law the directors
are required to prepare the Group ﬁnancial statements and 
have elected to prepare the company ﬁnancial statements in
accordance with International Financial Reporting Standards
(IFRSs) as adopted by the European union. under company law
the directors must not approve the ﬁnancial statements unless
they are satisﬁed that they give a true and fair view of the state
of aﬀairs of the Group and company and of the proﬁt or loss for
the Group for that period. 
In preparing these ﬁnancial statements, the directors are 
required to:
• select suitable accounting policies and then apply them
consistently;
• make judgements and accounting estimates that are
reasonable and prudent;
• state whether they have been prepared in accordance with
IFRSs as adopted by the European union, subject to any
material departures disclosed and explained in the ﬁnancial
statements;
• prepare the ﬁnancial statements on the going concern basis
unless it is inappropriate to presume that the company will
continue in business; 
• prepare a director’s report and director’s remuneration report
which comply with the requirements of the companies Act
2006.
the directors are responsible for keeping adequate accounting
records that are suﬃcient to show and explain the company’s
transactions and disclose with reasonable accuracy at any time
the ﬁnancial position of the company and enable them to ensure
that the ﬁnancial statements comply with the companies Act
2006 and, as regards the Group ﬁnancial statements, Article 4 of
the IAS Regulation. they are also responsible for safeguarding
the assets of the company and hence for taking reasonable steps
for the prevention and detection of fraud and other irregularities.
Website publication
the directors are responsible for ensuring the annual report 
and the ﬁnancial statements are made available on a website.
Financial statements are published on the company's website in
accordance with legislation in the united Kingdom governing the
preparation and dissemination of ﬁnancial statements, which
may vary from legislation in other jurisdictions. the maintenance
and integrity of the company's website is the responsibility of
the directors. the directors' responsibility also extends to the
ongoing integrity of the ﬁnancial statements contained therein.
Directors’ responsibilities pursuant to DTR4
the directors conﬁrm to the best of their knowledge:
• the Group ﬁnancial statements have been prepared in
accordance with International Financial Reporting Standards
(IFRSs) as adopted by the European union and Article 4 of
the IAS Regulation and give a true and fair view of the assets,
liabilities, ﬁnancial position and proﬁt and loss of the Group.
• the annual report includes a fair review of the development
and performance of the business and the ﬁnancial position 
of the Group and the Parent company, together with a
description or the principal risks and uncertainties that 
they face. We have audited the ﬁnancial statements of Mallett plc for the
year ended 31 december 2011 which comprise the consolidated
and Parent company Balance Sheet, the consolidated Income
Statement and consolidated Statement of comprehensive
Income, the consolidated and Parent company cash Flow
Statements, the consolidated and Parent company Statements
of changes in Equity and the related notes. the ﬁnancial
reporting framework that has been applied in their preparation 
is applicable law and International Financial Reporting
Standards (IFRSs) as adopted by the European union and, as
regards the Parent company ﬁnancial statements, as applied in
accordance with the provisions of the companies Act 2006.
this report is made solely to the company's members, as a body,
in accordance with chapter 3 of Part 16 of the companies Act
2006. our audit work has been undertaken so that we might
state to the company's members those matters we are required
to state to them in an auditor's report and for no other purpose.
to the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company and
the company's members as a body, for our audit work, for this
report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the directors’ Responsibilities
Statement set out on page 24, the directors are responsible for
the preparation of the ﬁnancial statements and for being satisﬁed
that they give a true and fair view. our responsibility is to audit
and express an opinion on the ﬁnancial statements in accordance
with applicable law and International Standards on Auditing (uK
and Ireland). those standards require us to comply with the
Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the ﬁnancial statements
An audit involves obtaining evidence about the amounts 
and disclosures in the ﬁnancial statements suﬃcient to give
reasonable assurance that the ﬁnancial statements are free
from material misstatement, whether caused by fraud or error.
this includes an assessment of: whether the accounting policies
are appropriate to the Group’s and the Parent company’s
circumstances and have been consistently applied and
adequately disclosed; the reasonableness of signiﬁcant
accounting estimates made by the directors; and the overall
presentation of the ﬁnancial statements.
Opinion on ﬁnancial statements
In our opinion:
• the ﬁnancial statements give a true and fair view of the state
of the Group’s and of the Parent company’s aﬀairs as at 31
december 2011 and of the Group’s proﬁt for the year then
ended;
• the Group ﬁnancial statements have been properly prepared
in accordance with IFRSs as adopted by the European union;
• the Parent company ﬁnancial statements have been
properly prepared in accordance with IFRSs as adopted by
the European union and as applied in accordance with the
provisions of the companies Act 2006; and 
• the ﬁnancial statements have been prepared in accordance
with the requirements of the companies Act 2006 and, as
regards the Group ﬁnancial statements, Article 4 of the IAS
Regulation.
Opinion on other matters prescribed by the Companies 
Act 2006
In our opinion:
• the part of the directors’ Remuneration Report to be audited
has been properly prepared in accordance with the
companies Act 2006; and
• the information given in the directors’ Report for the ﬁnancial
year for which the ﬁnancial statements are prepared is
consistent with the ﬁnancial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following:
under the companies Act 2006 we are required to report to you
if, in our opinion:
• adequate accounting records have not been kept by the
Parent company, or returns adequate for our audit have 
not been received from branches not visited by us; or
• the Parent company ﬁnancial statements and the part of 
the directors’ Remuneration Report to be audited are not 
in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration speciﬁed by 
law are not made; or 
• we have not received all the information and explanations 
we require for our audit.
under the Listing Rules we are required to review: 
• the directors’ statement, set out on page 18, in relation to
going concern;
• the part of the corporate Governance Statement relating to
the company’s compliance with the nine provisions of the uK
corporate Governance combined code speciﬁed for our
review; and
• certain elements of the report to shareholders by the Board
on directors' remuneration.
Sophia Bevan (Senior Statutory Auditor)
For and on behalf of 
Bdo LLP Statutory Auditors
united Kingdom
29 March 2012
Bdo LLP is a Limited Liability Partnership registered in England and Wales 
(with registered number oc305127).
ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
25
Independent Auditor’s Report to the Members of Mallett plc
Year ended 31 december 2011 26
Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
Consolidated Income Statement 
Year ended 31 december 2011
2011 2010
Notes £’000 £’000
Revenue 5 12,665 13,255 
cost of sales (12,014) (13,009) 
Gross proﬁt 651 246 
other operating income 6 1,329 21 
distribution costs (231) (215) 
Administrative expenses (1,302) (1,321) 
operating proﬁt/(loss) 7 447 (1,269) 
Net interest 9 (25) (18) 
Share of operating proﬁt/(loss) in associate 15 86 (131) 
Proﬁt/(loss) before income tax 508 (1,418) 
Income tax 10 (50) (1,137) 
Proﬁt/(loss) for the year 458 (2,555) 
Proﬁt/(loss) attributable to:
owners of the parent company 470 (2,502) 
Non controlling interest (12) (53) 
458 (2,555) 
Basic earnings per share 11 3.44p (19.08)p
diluted earnings per share 11 3.27p n/a
All of the activities of the Group are classed as continuing.
Consolidated Statement of Comprehensive Income 
Year ended 31 december 2011
2011 2010
£’000 £’000
Proﬁt/(loss) for the year 458 (2,555) 
other comprehensive income:
Exchange diﬀerences on translation of foreign operations -   147 
Actuarial loss on the deﬁned beneﬁt pension scheme (196) (329) 
Movement of deferred tax on actuarial loss -   (895) 
total other comprehensive loss for the year, net of tax (196) (1,077) 
total comprehensive income/(loss) for the year 262 (3,632) 
total comprehensive income/(loss) attributable to:
owners of the parent company 274 (3,579) 
Non controlling interest (12) (53) 
262 (3,632)  2011 2010
Notes £’000 £’000
non-current assets
Property, plant and equipment 13 4,608 4,235 
Investment in associate 15 - -   
deferred tax 20 -   -   
4,608 4,235 
current assets
Inventories 14 12,304 12,081 
trade and other receivables 16 5,200 4,510 
cash and cash equivalents 325 1,337 
17,829 17,928 
total assets 22,437 22,163 
equity
Share capital 22 690 690 
capital redemption reserve 23 5,168 5,168 
own shares 23 (513) (492) 
Retained proﬁts 10,072 9,699 
15,417 15,065 
Non controlling interest (58) (46) 
total equity 15,359 15,019 
current liabilities
trade and other payables 4,003 3,476 
Bank overdrafts and loans 1,446 1,987 
17 5,449 5,463 
non current liabilities
Retirement beneﬁt pension obligations 19 1,629 1,681 
total liabilities 7,078 7,144 
total equity and liabilities 22,437 22,163 
the ﬁnancial statements were approved by the board of directors and authorised for issue on 29 March 2012.
they were signed on its behalf by:
G.H. Hutchinson Smith Director M.A. Smyth-osbourne Director
27
ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
Consolidated Balance Sheet
At 31 december 2011
company Number 1838233 2011 2010
Notes £’000 £’000
non-current assets
Investments 15 8,482 8,482 
deferred tax 20 - -   
8,482 8,482 
current assets
trade and other receivables 16 14,616 14,772 
cash and cash equivalents 8 10 
14,624 14,782 
total assets 23,106 23,264 
equity
Share capital 22 690 690 
Special capital reserve 23 1,761 1,761 
capital redemption reserve 23 5,168 5,168 
own shares 23 (100) (100) 
Retained proﬁts 15,554 15,703 
total equity 23,073 23,222 
current liabilities
trade and other payables 17 33 42 
23,106 23,264 
the ﬁnancial statements were approved by the board of directors and authorised for issue on 29 March 2012.
they were signed on its behalf by:
G.H. Hutchinson Smith Director M.A. Smyth-osbourne Director
28
Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
Company Balance Sheet
At 31 december 2011
company Number 1838233 capital Non-
Share redemption own Retained controlling total
capital reserve shares proﬁts total interest equity 
Group £’000 £’000 £’000 £’000 £’000 £’000 £’000
At 1 January 2010 690 5,168 (476) 13,172 18,554 34 18,588 
Retained loss for the year (2,502) (2,502) (53) (2,555) 
total other comprehensive loss for the year (1,077) (1,077) (1,077) 
disposal of interest in subsidiary 81 81 (27) 54 
Net movement in own shares (16) 25 9 9 
At 31 december 2010 690 5,168 (492) 9,699 15,065 (46) 15,019 
Retained proﬁt for the year 470 470 (12) 458 
total other comprehensive loss for the year (196) (196) (196) 
dividends reclaimed in year 9 9 9 
Net movement in own shares (21) 90 69 69 
at 31 december 2011 690 5,168 (513) 10,072 15,417 (58) 15,359 
Special capital
Share capital redemption own Retained total
capital reserve reserve shares proﬁts equity 
company £’000 £’000 £’000 £’000 £’000 £’000
At 1 January 2010 690 1,761 5,168 (100) 16,090 23,609 
Retained loss for the year (403) (403) 
Net movement in own shares 16 16 
At 31 december 2010 690 1,761 5,168 (100) 15,703 23,222 
Retained loss for the year (174) (174) 
dividends reclaimed in year 9 9 
Net movement in own shares 16 16 
at 31 december 2011 690 1,761 5,168 (100) 15,554 23,073 
the share premium, capital redemption reserve and special capital reserve are not available for distribution.
29
ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
Statements of Changes in Equity
At 31 december 2011 2011 2010
Note £’000 £’000
Proﬁt/(loss) before income tax 508 (1,418) 
Adjustments for:
Net interest 25 18 
Share of operating (proﬁt)/loss in associate (86) 131 
operating proﬁt/(loss) 447 (1,269) 
Adjustments for:
depreciation 270 288 
Share-based payments 76 (89) 
deﬁned beneﬁt pension adjustment (248) (206) 
Net exchange adjustments 6 (79) 
Movements in working capital:
(Increase)/decrease in inventories (223) 261 
Increase in receivables (690) (1,329) 
Increase in payables 895 768 
cash generated/(used) by operations 533 (1,655) 
tax (paid)/received (28) 113 
net cash from/(used in) operating activities 505 (1,542) 
investing activities
Interest received -   3 
Purchase of shares in associate -  (1) 
Purchase of property, plant and equipment (875) (31) 
net cash used in investing activities (875) (29) 
Financing activities
Interest paid (25) (21) 
Purchases of own shares (76) (78) 
Proceeds from sale of investments - 54 
net cash used in Financing activities (101) (45) 
net decrease in cash and cash equivalents (471) (1,616) 
cash and cash equivalents at beginning of year (650) 819 
Eﬀect of foreign exchange rate changes - 147 
cash and cash equivalents at end of year 25 (1,121) (650) 
30
Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
Consolidated Cash Flow Statement
Year ended 31 december 2011 2011 2010
Note £’000 £’000
Loss before income tax (173) (184) 
Adjustments for:
Share-based payments 16 -   
Movements in working capital:
decrease in receivables 156 181 
(decrease)/increase in payables (10) 5 
net cash from operating activities (11) 2 
Financing activities
Purchases of own shares - -   
dividends reclaimed 9 -   
net cash used in Financing activities 9 -   
net (decrease)/increase in cash and cash equivalents (2) 2 
cash and cash equivalents at beginning of year 10 8 
cash and cash equivalents at end of year 25 8 10 
31
ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
Company Cash Flow Statement
Year ended 31 december 2011 32
Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
1  General information
Mallett plc (“the company”) is a public limited company
incorporated in the united Kingdom. the address of it's
registered oﬃce is Ely House, 37 dover Street, London W1S 4NJ.
the principal activities of the company and its subsidiaries
(together “the Group”) are described in the chairman's
Statement, chief Executive's Review, Report of the directors 
and note 5.
2  Signiﬁcant accounting policies
a) Basis of accounting and consolidation
the ﬁnancial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) and
International Financial Reporting Interpretations committee
(IFRIc) endorsed by the European union (Eu) and with those
parts of the companies Act 2006 applicable to companies
reporting under IFRSs.
the Group accounts, which include the accounts of the company
and its subsidiaries, are presented on the basis of the historical
cost convention except for equity settled Share-based payments
that have been measured at fair value. All companies' accounts
are made up to 31 december 2011. Subsidiaries are included in
the consolidation up to the date at which they ceased to be
controlled, either by way of sale or other means.
the Group accounts are prepared on a going concern basis which
the directors believe to be appropriate. the Group's forecasts
and projections, taking account of reasonably possible changes
in trading performance, show that the Group has suﬃcient
ﬁnancial resources. As a consequence the directors have a
reasonable expectation that the company and Group are well
placed to manage their business risks and to continue in
operational existence for the foreseeable future, despite the
current uncertain global economic outlook. Accordingly, the
directors continue to adopt the going concern basis in preparing
the consolidated ﬁnancial statements. 
b) New standards and interpretations not yet adopted
the following standards, amendments to standards and
interpretations have been issued by the IASB and are not
eﬀective for 2011 and therefore have not been applied in
preparing these accounts:
Amendments to IFRS 7 disclosures - oﬀsetting Financial Assets
and Financial Liabilities which is eﬀective for periods
commencing on or after 1 January 2013.
IFRS 9 Financial Instruments which is eﬀective for periods
commencing on or after 1 January 2013.
IFRS 10 consolidated Financial Statements which is eﬀective 
for periods commencing on or after 1 January 2013.
IFRS 11 Joint Arrangements eﬀective for periods commencing
on or after 1 January 2013.
IFRS 12 disclosure of Interests in other Entities eﬀective 
for periods commencing on or after 1 January 2013.
IFRS 13 Fair Value Measurement eﬀective for periods
commencing on or after 1 January 2013.
Amendments to IAS 1 Presentation of Items of other
comprehensive Income, which is eﬀective for periods
commencing on or after 1 July 2012.
Amendments to IAS 12 deferred tax: Recovery of underlying
Assets, which is eﬀective for periods commencing on or after 1
January 2012.
IAS 19 Employee Beneﬁts which is eﬀective for periods
commencing on or after 1 January 2013.
IAS 27 Separate Financial Statements which is eﬀective for
periods commencing on or after 1 January 2013.
IAS 28 Investments in Associates and Joint Ventures which is
eﬀective for periods commencing on or after 1 January 2013.
Amendments to IAS 32 oﬀsetting Financial Assets and
Financial Liabilities which is eﬀective for periods commencing 
on or after 1 January 2014.
the Group does not anticipate that the adoption of these
standards or interpretations will have a signiﬁcant impact or
relevance on the Group's accounts in the period of initial
application.
c) Revenue
Revenue represents the total amount receivable by the Group 
for goods sold and services rendered during the year, exclusive 
of value added tax. Revenue is recognised in the consolidated
Income Statement when the signiﬁcant risks and rewards of
ownership have been transferred to the purchaser. this is
generally considered to be the point at which an invoice is issued
for the sale, except where the sold item requires manufacture,
where the Group recognises revenue at the later of the issue 
of the invoice or when the goods in question have ﬁnished
production and have passed any applicable factory and
customer acceptance tests. 
Where sold goods remain on the Group's premises at the year
end at the request of the customer, management consider the
detailed criteria for the recognition of revenue from the sale of
goods as set out in IAS 18. In particular, consideration is given 
as to whether the signiﬁcant risk and reward of ownership are
considered to have transferred to the purchaser.
d) Leased assets
Rentals under operating leases are charged to the Income
Statement as incurred. Lease incentives received are recognised
as an integral part of total lease expense, over the term of the
lease.
the sale of a leased asset is recognised when all conditions
relating to the sale agreement have been satisﬁed and the
transaction becomes unconditional. this may be diﬀerent to 
the date of completion of the transaction.
Notes to the Accounts 
Year ended 31 december 2011 33
ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
e) Inventories
Inventories are valued at cost, including purchase price and any
restoration costs, except where, in the directors' opinion as experts,
the net realisable value is likely to be lower. In such circumstances
inventories are valued at estimated net realisable value.
Where inventory is held under consignment and the risks and
rewards of ownership have not been considered transferred to
the Group, no inventory or corresponding liability is recorded.
f) Depreciation
Property, plant and equipment are depreciated by equal
instalments over their expected useful lives at the following
rates:
Freehold buildings 2%
Long leasehold property 2%
Fixtures & ﬁttings 10%
Motor vehicles 25%
Short leasehold property over the term of the lease
g) Impairment of non-current assets
At each balance sheet date, the Group reviews the carrying
amounts of its non-current assets to determine whether there 
is any indication that those assets have suﬀered an impairment
loss. If any such indication exists, the recoverable amount of 
the asset is estimated in order to determine the extent of the
impairment loss, if any.
the recoverable amount is the higher of fair value less selling
costs and value in use. In assessing value in use, the estimated
future cash ﬂows are discounted to their present value using a
pre-tax discount rate that reﬂects current market assessments 
of the time value of money and the risks speciﬁc to the asset 
for which estimates of future cash ﬂows have not been adjusted.
An impairment loss is recognised in the Income Statement
whenever the carrying amount of the asset exceeds its
recoverable amount.
h) Foreign currencies
transactions entered into by Group entities in a currency other
than the currency of the primary economic environment in which
they operate (their functional currency) are recorded at rates
ruling when the transactions occur. Foreign currency monetary
assets and liabilities are translated at the rate ruling at one
reporting date. Exchange diﬀerences arising on the retranslation
of unsettled monetary assets and liabilities are recognised
immediately in the income statement.
Assets and liabilities of the overseas subsidiary undertaking are
translated at the rates of exchange ruling at the Balance Sheet
date. the results of the overseas subsidiary are translated at a
reasonable approximation of the date of transaction. diﬀerences
arising on translation of the net assets of the subsidiary
undertaking are taken direct to reserves.
i) Deferred taxation
deferred tax is the tax expected to be payable or recoverable 
on diﬀerences between the carrying amounts of assets and
liabilities in the ﬁnancial statements and the corresponding tax
bases used in the computation of taxable proﬁts (“temporary
diﬀerences”), and is accounted for using the balance sheet
liability method.
deferred tax liabilities are generally recognised for all taxable
temporary diﬀerences. Where there are taxable temporary
diﬀerences arising on subsidiaries, deferred tax liabilities are
recognised.
deferred tax assets are only recognised to the extent that it is
probable that taxable proﬁts will be available against which
deductible temporary diﬀerences can be utilised. Where there are
deductible temporary diﬀerences arising on subsidiaries, deferred
tax assets are recognised only where it is probable that they will
reverse in the foreseeable future and taxable proﬁts will be
available against which the temporary diﬀerences can be utilised. 
the carrying amount of deferred tax assets is reviewed at each
Balance Sheet date and reduced to the extent that it is no longer
probable that suﬃcient taxable proﬁts will be available to allow
all or part of the asset to be recovered.
deferred tax is calculated at the tax rates that are expected to
apply in the period when the liability is settled or the asset is
realised.
j) Pension costs
the Group operates a deﬁned beneﬁt pension scheme which is
closed to new entrants and closed to future accrual. the funds of
the scheme are administered by trustees and are separate from
the Group. the scheme is valued by a qualiﬁed actuary every
three years and contributions are paid in accordance with the
recommendations of the actuary. the most recent valuation of
this scheme was at 1 May 2010.
deﬁned beneﬁt scheme surpluses and deﬁcits are measured at:
• the fair value of plan assets at the reporting date; less
• plan liabilities calculated using the projected unit credit
method discounted to its present value using yields available
on high quality corporate bonds that have maturity dates
approximating to the terms of the liabilities; plus
• unrecognised past service costs; less
• the eﬀect of minimum funding requirements agreed with
scheme trustees.
Any diﬀerence between the expected return on assets and that
actually achieved, and any changes in the liabilities over the year
due to changes in assumptions or experience within the scheme,
are recognised in other comprehensive income in the period in
which they arise.
Past service costs are recognised directly in income, unless the
changes to the pension plan are conditional on the employees
remaining in service for a speciﬁed period of time. In this case, 
the past service costs are amortised on a straight line basis over
the vesting period.
the Group also operates a deﬁned contribution pension scheme.
Pension payments to deﬁned contribution schemes are charged
to the Income Statement as they become due. 34
Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
Notes to the Accounts continued
Year ended 31 december 2011
k) Share based payments
the Group issues equity settled share-based payments through 
a Share Incentive Plan to all employees and through a Long
term Incentive Plan to directors. the payments are measured at
fair value at the date of grant and the fair value is expensed on a
straight line basis over the vesting period, based on the Group's
estimate of the shares that will eventually vest and adjusted for
the eﬀect of non-market based vesting conditions. the fair value
of payments under the Share Incentive Plan is measured as 
the market price at the date of the award. the fair value of the
payments under the Long term Incentive Plan is measured using
the Black Scholes model.
l) Own shares
consideration paid/received for the purchase/sale of own shares
is recognised directly in equity. the cost of own shares held is
presented as a separate reserve (the “own share reserve“). Any
excess of the consideration received on the sale of own shares
over the weighted average cost of the shares sold is credited to
retained earnings.
m) Accounting for ﬁnancial instruments
Financial assets and ﬁnancial liabilities are recognised on the
Group’s Balance Sheet when the Group has become party to 
the contractual provisions of the instrument.
Trade and other receivables
trade receivables are initially recognised at fair value and
subsequently measured at amortised cost using the eﬀective
interest method. A provision for impairment is made where 
there is objective evidence of impairment (including customers 
in ﬁnancial diﬃculty or seriously in default against agreed
payment terms). there is no material variance between carrying
and fair values.
Signiﬁcant ﬁnancial diﬃculties of the trade receivables,
probability that the trade receivables will enter bankruptcy or
ﬁnancial reorganisation, and default or delinquency in payments
(more than 120 days overdue) are considered indicators that the
trade receivable is impaired. the carrying amount of the asset 
is reduced through the use of an allowance account, and the
amount of the loss is recognised in the Income Statement within
cost of sales. 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 cost of sales in the Income Statement.
Cash and cash equivalents
cash and cash equivalents includes cash in hand, deposits held
at call with banks, other short-term highly liquid investments
with original maturities of three months or less, and bank
overdrafts. Bank overdrafts are shown within borrowings in
current liabilities on the Balance Sheet.
Trade payables
trade payables are initially recognised at cost and subsequently
measured at amortised cost using the eﬀective interest method.
there is no material variance between book and fair values.
Borrowings
Bank loans and overdrafts are recorded initially at their fair value,
net of direct transaction costs and ﬁnance charges are recognised
in the Income Statement over the term of the instrument. Note 18
provides details of the applicable interest rates. there is no
material variance between book and fair values.
Equity instruments
Equity instruments are recorded at the proceeds received, net of
direct issue costs.
n) Interest
Interest is recognised using the eﬀective interest method which
calculates the amortised cost of a ﬁnancial asset or liability and
allocates the interest income over the relevant period. the
eﬀective interest rate is the rate that exactly discounts estimated
future cash receipts through the expected life of the ﬁnancial
asset to the net carrying amount of the ﬁnancial asset.
o) Investment in associates
Associates are all entities over which the Group has signiﬁcant
inﬂuence but not control, generally accompanying a
shareholding of between 20% and 50% of the voting rights.
Investments in associates are accounted for using the equity
method of accounting and are initially recognised at cost. the
Group’s investment in associates includes goodwill identiﬁed on
acquisition, net of any accumulated impairment loss. See note
15 for the impairment of non-ﬁnancial assets including goodwill.
the Group’s share of its associates’ post-acquisition proﬁts 
or losses is recognised in the Income Statement, and its share 
of post-acquisition movements in reserves is recognised in
reserves. the cumulative post-acquisition movements are
adjusted against the carrying amount of the investment. When
the Group’s share of losses in an associate equals or exceeds 
its interest in the associate, including any other unsecured
receivables, the Group does not recognise further losses, unless
it has incurred obligations or made payments on behalf of the
associate. Proﬁts and losses arising on transactions between 
the Group and its associates are recognised only to the extent 
of unrelated investors' interests in associate.
3  Financial Risk Management
the Group’s activities expose it to a variety of ﬁnancial risks:
foreign exchange risk, credit risk and liquidity risk. Risk
management is carried out by the Board, who review the
exposures of the Group on an ongoing basis and put in speciﬁc
procedures to mitigate this risk where it is felt appropriate to 
do so.  
a) Foreign exchange risk
the Group operates internationally and is exposed to foreign
exchange risk arising from currency exposures, primarily with
respect to the uS dollar and the Euro. Foreign exchange risk
arises from commercial transactions, recognised assets and
liabilities and net investments in foreign operations.
the Group manages its holding of foreign currency, speciﬁcally
uS dollars, to ensure that the impact of currency ﬂuctuations on
the Group are reduced.  the use of forward contracts has been
considered, as a further measure to mitigate this risk. However
the Group has not entered into any contracts of this nature
during the year. b) Credit risk
the Group considers that there is ordinarily low credit risk
exposure. the majority of the Group's sales are made to high net
worth individuals with good credit worthiness. the combination 
of this factor and the repeat sales to regular customers limit the
amount of credit exposure of the Group.
c) Liquidity risk
the Group maintains suﬃcient cash and availability of funding
through an adequate amount of committed credit facilities to
ensure that resources are available to take advantage of new
business opportunities as they arise.
d) Capital management risk
the Group policy is to maintain a strong capital base so as to
maintain investor, creditor and market conﬁdence and to sustain
future development of the business.
4  critical accounting estimates and Judgements
the Group makes estimates and assumptions concerning the
future. the resulting accounting estimates will, by deﬁnition,
seldom equal the related actual result. Estimates and
judgements are continually evaluated and are based on
historical experience and other factors, including expectations 
of future events that are believed to be reasonable under the
circumstances. the estimates and judgements that have a
signiﬁcant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the ﬁnancial period are
discussed below.
a) Retirement beneﬁt pension obligations
the Group's deﬁned beneﬁt pension scheme liability is based on
key assumptions including return on scheme assets, discount
rates, mortality rates, inﬂation, future salary and pension costs.
the Group takes advice from independent actuaries as to the
appropriateness of the assumptions, but these assumptions 
may, individually or collectively, be diﬀerent to actual outcomes.
b) Value of inventory
Inventory is valued at the lower of cost and net realisable value.
the directors regularly review the carrying value of all items in
inventory and where their estimate of the market value of the
item, based on market conditions at the time and trends in
customer demand, is lower than the cost of the item, a provision
is made to reduce the carrying value of the item to the estimated
market value.
c) Value of non-current assets
Non-current assets are valued at the lower of cost and the
estimated recoverable amount. the estimated recoverable
amount is the higher of fair value less selling costs and the value
in use. the value in use calculation requires an estimate of the
present value of future cash ﬂows expected to arise from the
asset, by applying an appropriate discount rate to the timing 
and amount of future cash ﬂows.
the directors are required to make judgements regarding the
timing and amount of future cash ﬂows applicable to the asset,
based on current budgets and forecasts and extrapolated for 
an appropriate period taking into account growth rates and
expected changes in prices and costs. the directors estimate the
appropriate discount rate using pre-tax rates that reﬂect current
market assessments of the time value of money and the risks
speciﬁc to the individual asset.
d) Taxation
the Group is subject to income taxes in the uK and uS. At each
ﬁnancial period end judgement is required in determining the
provision for income taxes. the Group recognises liabilities for
anticipated tax issues based on the best estimates at the
Balance Sheet date. Where the ﬁnal tax outcome of these
matters is diﬀerent from the amounts that were initially recorded,
such diﬀerences will impact the corporation tax and deferred tax
provisions in the period in which such determination is made.
the amount of the deferred tax asset included in the Balance
Sheet of the Group is recognised only to the extent that it is
probable that future taxable proﬁts will be available against
which the asset can be utilised. In estimating the amount of the
deferred tax asset that may be recognised, the directors make
judgements, based on current budgets and forecasts, about the
amount of future taxable proﬁts and the timings of when these
will be realised. the directors have decided not to carry forward 
a deferred tax asset in respect of unused tax losses due to the
uncertain nature of the antique furniture and decorative arts
market and the timing of its recovery. 
5  Segmental analysis
the Group’s operating segments have been determined based 
on the management accounts reviewed by the Board of directors
(the chief operating decision Maker). the Group’s activities are
split into four business segments: dealing in antique furniture 
and objets d'art through Mallett, dealing in ﬁne art through
James Harvey British Art (JHBA), designing and manufacturing
contemporary furniture and works of art through Meta, and
providing restoration services through Hatﬁelds. the operations
of Mallett are further split into two geographical regions, uK and
uS, reﬂecting the location of a Mallett showroom in each of 
those regions. 
the Board assesses the performance of the operating segments
based on turnover and EBItdA. Sales are reported by location of
sales outlet. the accounting policies of the reportable segments
are the same as described in note 2. Sales to one client in the uK
represented more than 10% of turnover of the Group.
transfer pricing between segments are set on an arm’s length
basis. Segmental assets and liabilities consist of property, plant
and equipment, trade receivables, payables, cash at bank and
inventories.
35
ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc 5  Segmental analysis continued
Mallett Mallett Intra
uK uSA JHBA Meta Hatﬁelds other group total
2011 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
income & expenses information
External revenue by sales outlet 5,737 3,693 2,443 415 377 -   -   12,665
Inter segment revenue 2,454 -   -   -   382 -   (2,836) -
EBItdA (67) (928) 77 205 (90) -   238 (565) 
depreciation and amortisation (88) (150) -   -   -   (32) -   (270) 
Proﬁt on assignment of property lease 1,282 -   -   -   -   -   -   1,282
Share of operating proﬁt in associate -   -   -   -   -   86 -   86
Interest revenue 129 -   -   -   -   -   (130) (1) 
Interest expense (24) (130) -   -   -   -   130 (24) 
Proﬁt/(loss) before tax 1,232 (1,208) 77 205 (90) 54 238 508
Income tax (2) (27) (21) -   -   -   -   (50) 
Proﬁt/(loss) for the year 1,230 (1,235) 56 205 (90) 54 238 458
Balance Sheet information
capital expenditure 870 5 -   -   -   -   -   875
total assets 12,634 7,152 519 93 260 1,779 -   22,437
total liabilities, excluding tax liabilities 5,859 807 217 106 89 -   -   7,078
Investment in associate -   -   -   -   -   -   -   -   
Mallett Mallett Intra
uK uSA JHBA Meta Hatﬁelds other group total
2010 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
income & expenses information
External revenue by sales outlet 6,281 5,354 1,101 160 359 -   -   13,255
Inter segment revenue 2,370 -   -   -   534 -   (2,904) -   
EBItdA (1,049) (261) 42 65 48 -   174 (981) 
depreciation and amortisation (88) (156) -   -   -   (44) -   (288) 
Share of operating loss in associate -   -   -   -   -   (131) -   (131) 
Interest revenue 155 2 -   -   -   -   (154) 3 
Interest expense (21) (154) -   -   -   -   154 (21) 
Proﬁt/(loss) before tax (1,003) (569) 42 65 48 (175) 174 (1,418) 
Income tax (956) (110) (14) (17) (40) -   -   (1,137) 
Proﬁt/(loss) for the year (1,959) (679) 28 48 8 (175) 174 (2,555) 
Balance Sheet information
capital expenditure 16 15 -   -   -   -   -   31
total assets 10,327 9,086 608 113 218 1,811 -   22,163
total liabilities, excluding tax liabilities 5,495 1,419 71 74 85 -   -   7,144
Investment in associate -   -   -   -   -   -   -   -   
36
Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
Notes to the Accounts continued
Year ended 31 december 2011 5  Segmental analysis continued
the sales by destination of goods is as follows:
Mallett JHBA Meta Hatﬁelds total
2011 £’000 £’000 £’000 £’000 £’000
united Kingdom 1,802 1,481 29 375 3,687
Rest of Europe 2,644 833 55 2 3,534
united States of America 4,109 129 121 -   4,359
other 875 -   210 -   1,085
9,430 2,443 415 377 12,665
Mallett JHBA Meta Hatﬁelds total
2010 £’000 £’000 £’000 £’000 £’000
united Kingdom 3,287 747 20 354 4,408 
Rest of Europe 2,933 205 -   3 3,141 
united States of America 4,975 90 140 2 5,207 
other 499 -   -   -   499 
11,694 1,042 160 359 13,255 
6  other operating income
2011 2010
£’000 £’000
Proﬁt on assignment of property lease 1,282 -   
other operating income 47 21 
1,329 21 
the proﬁt on assignment of property lease relates to the premium receivable from Fendi uK Limited  of £1.7m (exclusive of VAt) for the
assignment of the lease on 141 New Bond Street to Fendi uK Limited net of professional fees and the net book value of ﬁxed assets
relating to the lease. the assignment was unconditionally agreed on 4 November 2011 and completed on 23 February 2012.
7  proﬁt/(loss) from operations
operating proﬁt/(loss) has been arrived at after charging/(crediting): 2011
2010
£’000 £’000
depreciation of property, plant and equipment 270 288 
Auditors' remuneration
- Audit fees 14 14 
- other non-audit services
- tax services (advisory and compliance) 16 15 
- other services* 5 9 
- Audit of group undertakings 46 40 
- Review of interim accounts 2 2 
Net foreign exchange losses/(gains) 3 (37) 
Lease payments 1,628 1,618 
Inventory provision/(provision release) (349) 180 
* other services includes work relating to a pension scheme audit work and general consultancy work.
37
ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc 8  Staﬀ costs
2011 2010
£’000 £’000
Staﬀ costs (including directors)
- wages and salaries 1,780 1,790 
- compensation for loss of oﬃce - 56 
- social security costs 186 160 
- share based payments 76 74 
- pension scheme costs* (note 19) 205 193 
2,247 2,273 
* Includes £106,000 (2010: £123,000) in respect of contributions to deﬁned contribution pension schemes, the write-back of a pension
provision made in a prior year and sundry pension costs.
Average number of persons (including directors and part-time employees) employed by the Group number Number
- restoration 8 8
- selling and distribution 22 22
- administration 4 4
- non-executive directors 2 2
36 36
details of directors’ emoluments are given in the directors’ Remuneration Report on page 21. the Group believes that the directors of 
Mallett plc are the only key management personnel under the deﬁnition of IAS 24 “Related party disclosures”.
9  net interest
2011 2010
£’000 £’000
Bank interest receivable - 3 
Interest payable on bank loan and overdrafts within ﬁve years not by instalments (25) (21) 
(25) (18) 
10  tax
2011 2010
£’000 £’000
current taxation
uK corporation taxation 21 -   
Foreign tax 29 (105) 
50 (105) 
deferred tax (note 20):
current year -   1,242 
50 1,137 
uK corporation tax is calculated at 26.5% (2010: 28.0%) of the estimated assessable proﬁt for the year. tax for other jurisdictions is
calculated at the rates prevailing in the respective jurisdictions.
38
Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
Notes to the Accounts continued
Year ended 31 december 2011 39
ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
10  tax continued
the credit for the year can be reconciled to the loss per the Income Statement as follows:
2011 2010
£’000 £’000
Proﬁt/(loss) before tax 508 (1,418) 
tax at the uK corporation tax rate of 26.5% (2010: 28.0%) 135 (397) 
Eﬀected by the tax impact of the following items:
Income not taxable (23) (15) 
Expenses not deductible for tax purposes 18 29 
depreciation in excess of capital allowances 53 49 
Increase/(utilisation) of tax losses 171 324 
Non taxable income (340) -   
Foreign tax 29 (105) 
other timing diﬀerences 7 10 
50 (105) 
deferred tax (note 20):
current year -  1,242 
total current tax 50 1,137 
In addition to the amount credited to the Income Statement, deferred tax relating to actuarial gains and losses of the pension scheme
amounting to £nil (2010: £895,000 credit) has been debited directly to the equity reserve.
11  Basic and diluted earnings per Share
Basic earnings per share is based on the proﬁt after tax of £458,000 (2010: loss of £2,555,000) divided by the weighted average number 
of shares in issue during the year of 13,319,028 (2010: 13,385,695).
dilutive earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding, assuming conversion 
of all potentially dilutive ordinary shares. the company has potentially dilutive ordinary shares in the form of share awards under the
Group’s SIP and LtIP. For these share awards the number of shares that could have been acquired at fair value based on the monetary 
value of the subscription rights attached to outstanding share awards is 657,069 (2010: 581,101). therefore, the weighted average number
of shares for the diluted earning per share is 13,976,097 (2010: 13,966,796).
12  loss for the Financial Year
the loss dealt with in the accounts of the company, which includes dividends received from subsidiaries, was £173,000 (2010: £403,000).
As permitted by section 408 of the companies Act 2006 an Income Statement of the company is not presented with these accounts. 13  property, plant and equipment
Short Furniture,
Freehold Leasehold ﬁxtures & 
property property motor vehicles total
£’000 £’000 £’000 £’000
cost or valuation:
At 1 January 2010 2,185 4,321 358 6,864 
Additions -   15 16 31 
disposals -   -   (21) (21) 
Exchange adjustments -   111 3 114 
At 31 december 2010 2,185 4,447 356 6,988 
Additions -   875 -   875 
disposals -   (1,391) (119) (1,510) 
at 31 december 2011 2,185 3,931 237 6,353 
depreciation:
At 1 January 2010 332 1,936 184 2,452 
charged 44 210 34 288 
Released -   -   (21) (21) 
Exchange adjustments -   33 1 34 
At 31 december 2010 376 2,179 198 2,753 
charged 32 204 34 270 
Released -   (1,185) (98) (1,283) 
Exchange adjustments -   4 1 5 
at 31 december 2011 408 1,202 135 1,745 
Net book value:
at 31 december 2011 1,777 2,729 102 4,608 
At 31 december 2010 1,809 2,268 158 4,235 
the directors assessed the carrying value of each of the Group’s non-current assets at the balance sheet date by estimating the
recoverable amount of each asset in accordance with the accounting policy in note 2. Based on market value assessments and a value 
in use assessment, using a discount rate of 7.5%, the directors believe the values shown of the non-current assets are recoverable.
14  inventories
Group company
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Goods for resale 12,304 12,081 - -
An external independent valuation of inventory was undertaken at the year end which has resulted in a net release of previously made
inventory provisions of £349,000 (2010: provision of £180,000). during the year £6,638,000 (2010: £7,855,000) was recognised as a cost of
sales expense in the Income Statement.
As at 31 december 2011 the Group held consignment inventory with a cost of £13,400,000 (2010: £9,800,000). the beneﬁts and risks of
holding this inventory had not passed to the Group at the year end and accordingly neither the inventory nor related creditor has been
recognised.
40
Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
Notes to the Accounts continued
Year ended 31 december 2011 15  investments
investment in subsidiaries 2011 2010
£’000 £’000
company
Shares in Group undertakings
At cost
At 1 January 2010 and 31 december 2011 8,482 8,482
the subsidiary undertakings are as follows: Nature of business Percentage of ordinary shares held
Mallett & Son (Antiques) Limited Antique dealers 100%
Mallett overseas Limited Antique dealers 100%
Mallett, Inc. Antique dealers 100%
Mallett at Bourdon House Limited dormant 100%
James Harvey British Art Limited Fine Art dealers 60%
MadebyMeta Limited dormant 100%
MadebyMeta, Inc. contemporary design 100%
H.J. Hatﬁeld & Sons Limited Restorers 60%
Subsidiary undertakings are registered and operate in England with the exception of Mallett, Inc. and MadebyMeta, Inc., which is
incorporated and operates in the united States of America.
James Harvey currently owns 40% of James Harvey British Art Limited (“ JHBA”). With eﬀect from 1 January 2012 the Group will transfer
10% of its shareholding in JHBA to James Harvey as a result of the operating proﬁt of JHBA for the period 1 January 2010 to 31 december
2011 exceeding a target set when the initial 40% of JHBA was sold to James Harvey in 2010. Mallett will retain control of JHBA through
the ability to appoint a majority of directors and therefore the results of JHBA will still be consolidated into the Group accounts. 
Gurr Johns Limited own 40% of H.J. Hatﬁeld & Sons Limited.
investment in associates 2011 2010
£’000 £’000
Group
As at 1 January - -   
Additions -   1 
Goodwill -   41 
Share of losses -   (42) 
At 31 december -  -   
the investment in associates represents a 23.75% interest in Masterpiece London Limited (“Masterpiece”), a company which is registered
and operates in England and which organises an antique trade fair.
the Group's share of the results of Masterpiece for the year ended 31 december 2011 was revenue of £1,267,000 (2010:  £618,000) and
proﬁt of £86,000 (2010: loss of £131,000). In accordance with IAS28, the proﬁt has been oﬀset against prior year losses, the value of the
investment and the value of the loans. As at 31 december 2011 the Group's share of Masterpiece’s assets was £166,000 (2010: £371,000)
and liabilities of £262,000 (2010: £570,000).
41
ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc 16  trade and other Receivables
Group company
2011 2010 2011 2010
£’000 £’000 £’000 £’000
trade receivables 2,250 3,384 - -   
other receivables 145 146 -  -   
tax and social security recoverable -   -   4 2 
Prepayments and accrued income 2,805 980 - 5 
Amounts due from subsidiary undertakings - -   14,612 14,765 
5,200 4,510 14,616 14,772 
Included in the Group's trade receivables balance are debtors with a carrying value of £1,434,000 (2010: £912,000) which are past due at
the balance sheet date. the directors have reviewed the recoverability of these debtors and are satisﬁed, due to client relations and past
payment experience, that the debtors are fully recoverable.the ageing of these debtors is as follows:
2011 2010
days past due: £’000 £’000
0 - 60 days 198 314 
61 - 120 days 91 533 
121+ days 1,145 65 
total 1,434 912 
In addition, trade receivable balances totalling £448,000 (2010: £78,000), which are over 120 days past their due date have been provided
for. this amount has been included in cost of sales in the Income Statement.
17  current liabilities
Group company
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Amounts falling due within one year:
Bank overdraft 1,446 1,987 -   -   
trade payables 2,008 2,660 18 7 
taxation and social security 26 31 -   -   
other payables 89 48 -   -   
Amounts due by associate 57 47 -   -   
Accruals and deferred income 1,823 690 15 35 
5,449 5,463 33 42 
the bank overdraft is repayable on demand. the overdraft facility at the balance sheet date was £2,500,000. the facility is secured with 
a ﬁxed and ﬂoating charge on the Group's uK assets. the average eﬀective interest rate on the bank overdraft approximated to 2.13% 
(2010: 2.13%), which is determined based on 1.5% above the coutts & co. base rate.
42
Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
Notes to the Accounts continued
Year ended 31 december 2011 18  Financial instruments
Capital risk management
the Group's capital management objectives are to ensure the Group's ability to continue as a going concern and to provide an adequate
return to shareholders.
the Group manages its capital through the optimisation of the debt and equity balance and by pricing products and services
commensurately with the level of risk. the capital structure of the Group consists of debt, which includes the borrowings disclosed in note 
17, cash and cash equivalents and equity attributable to owners of the parent, comprising issued capital, reserves and retained earnings.
2011 2010
£’000 £’000
debt (1,446) (1,987) 
cash and cash equivalents 325 1,337 
Net debt (1,121) (650) 
Equity 15,359 15,019 
the Group is not subject to externally imposed capital requirements, other than the minimum capital requirements and duties regarding 
a serious reduction in capital, as imposed by the companies Act 2006 on all public limited companies.
the Group held the following categories of ﬁnancial instruments:
2011 2010
£’000 £’000
Financial assets
Loans and receivables:
trade receivables 2,250 3,384 
Loan to associate -   -   
other receivables 145 146 
Accrued income 2,047 554 
cash and cash equivalents 325 1,337 
4,767 5,421 
Financial liabilities
trade and other payables - held at amortised cost
trade payables 2,008 2,660 
other payables 89 48 
Accruals 1,823 689 
Borrowings 1,446 1,987 
5,366 5,384 
the fair value of the ﬁnancial instruments set out above is not materially diﬀerent from their book value.
Financial risk management objectives
Management monitor and manage the ﬁnancial risks relating to the operations of the Group through regular reports to the Board. 
these risks include liquidity risk, credit risk and currency risk. the Group does not enter into or trade ﬁnancial instruments.
Credit risk
the Group's credit risk is primarily attributable to its trade receivables. credit risk is managed by monitoring the aggregate amount and
duration of exposure to any one customer. the Group's management estimate the level of allowances required for doubtful debts based 
on prior experience and their assessment of the current economic environment.
43
ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc 18  Financial instruments continued
Liquidity risk
the Group manages liquidity risk by maintaining adequate reserves and banking facilities, by continuously monitoring forecast and actual
cash ﬂows and by matching the maturity proﬁles of ﬁnancial assets and liabilities.
At 31 december 2011, all the Group's liabilities had contractual maturities of less than six months (2010: less than six months) and the
Group had undrawn borrowing facilities available of £1,054,000 (2010: £513,000). the Group also maintains foreign currency denominated
bank accounts that earn interest based on coutts & co. base rate applicable to that currency.
Interest rate risk
the Group ﬁnances its operations where necessary through bank overdrafts.
If interest rates had been 1.0% higher/lower and all other variables were held constant, the impact on the results in the Income Statement
and equity would be an increase/decrease of £12,000 (2010: £10,000).
Foreign currency risk
the Group receives payment for its products and incurs costs and inventory purchases in Pounds Sterling, uS dollars and Euros. After
netting oﬀ foreign currency receipts and payments there is a net exposure to the risk of currency movements in both uS dollars and Euros.
the carrying amounts of the Group's foreign currency denominated monetary ﬁnancial liabilities at the reporting date are as follows:
Financial Financial Financial Financial
assets assets liabilities liabilities 
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Euro 5 3 - -   
uS dollar 1,216 3,062 801 1,468 
1,221 3,065 801 1,468 
Foreign currency sensitivity
the Group is principally exposed to the uS dollar and Euro currency movements.
the following table details the Group's sensitivity to a 5% decrease in Pound Sterling against the relevant foreign currencies:
euro Euro US dollar uS dollar 
currency currency currency currency
impact impact impact impact 
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Proﬁt - -   22 84 
the use of a 5% weakening in exchange rates is considered appropriate given recent movements in exchange rates.
the above analysis represents the Group's exposure to foreign currency risk based ﬁnancial assets and liabilities outstanding at the year
end. A signiﬁcant amount of the Group's sales and purchases are made in foreign currencies. the exposure to foreign exchange rates varies
throughout the year depending on the volume and timing of transactions in foreign currencies.
44
Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
Notes to the Accounts continued
Year ended 31 december 2011 45
ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
19  Retirement Beneﬁt pension obligations 
the Group operates a deﬁned beneﬁt pension scheme, providing beneﬁts based on ﬁnal pensionable salary. this scheme is closed to new
entrants and, on the 30 June 2008 was closed to future accrual, with eﬀect from that date. the assets of the scheme are held separately
from those of the Group and are administered by the pension scheme trustees. the pension cost relating to the scheme is assessed in
accordance with the advice of an independent qualiﬁed actuary using the projected unit method. Actuarial valuations of the scheme are
carried out tri-annually with the latest actuarial valuation of the scheme as at 1 May 2010.
the principal actuarial assumptions at the Balance Sheet date were as follows:
2011 2010 2009
Financial Assumptions p.a. p.a. p.a.
Rate of increase in salaries n/a N/A N/A
Rate of increase of pensions:
LPI 5% 2.90% 3.40% 3.40%
LPI 2.5% 2.50% 2.50% 2.50%
Rate of revaluation of deferred pensions in excess of the GMP 2.90% 3.40% 3.40%
discount rate 4.70% 5.40% 5.70%
Inﬂation assumption 2.90% 3.40% 3.40%
the assumed life expectancy for a retiree at age 65 is:
2011 2010
Male years Female years Male years Female years
today 22.4 24.5 22.2 24.3 
In 20 years 24.6 26.9 24.5 26.8 
the 2011 rates are based in the SAPS tables adjusted for each individual's year of birth and allowing for long cohort future mortality
improvements (i.e. the S1PMA YoB cMI2009/S1PFA YoB cMI2009 tables for male and female members respectively) (2009 S1PMA YoB
Lc/S1PFA YoB Lc tables for male and female members respectively).
the market value of the pension scheme assets and the expected rate of return were:
2011 2010 2009
expected Expected Expected
long term long term long term
rate of return £’000 rate of return £’000 rate of return £’000
Equities           7.20% 405 n/a -   n/a -   
Bonds            5.40% 1,110 5.40% 1,260 5.70% 1,813 
Insurance policies 5.40% 2,719 5.40% 2,603 5.70% 1,909 
cash 0.50% 24 0.50% 1 0.50% 160 
Weighted Average Return 6.48% 6.48% 5.49%
total market value of assets 4,258 3,864 3,882  19  Retirement Beneﬁt pension obligations continued
the expected return on scheme assets is based on market expectations at the beginning of the year for return over the entire life of the
deﬁned beneﬁt obligation.
2011 2010 2009
£’000 £’000 £’000
Actual return on scheme assets 432 43 243 
the value of the deﬁned beneﬁt obligations are analysed as follows: 2011 2010 2009
£’000 £’000 £’000
Actuarial value of ﬁnancial obligations 5,887 5,545 5,440 
Actuarial value of unfunded obligations - -   -   
5,887 5,545 5,440 
2011 2010
Income statement impact £’000 £’000
Interest on obligation 291 300 
Expected return on pension scheme assets (249) (199) 
total included in pension scheme cash (see note 8) 42 101 
Acturial loss which arose in the year have been recognised immediately in the Statement of comprehensive Income:
2011 2010
£’000 £’000
diﬀerence between expected and actual return on scheme assets 183 (156) 
Experience gains on scheme liabilities (262) 50 
changes in assumptions (117) (223) 
Actuarial loss (196) (329) 
cumulative actuarial gains and losses recognised in equity at start of year (205) 124 
cumulative actuarial gains and losses recognised in equity at end of year (401) (205) 
2011 2010 2009
Balance Sheet impact: £’000 £’000 £’000 
Present value of deﬁned beneﬁt obligation 5,887 5,545 5,440 
Fair value of scheme assets (4,258) (3,864) (3,882) 
deﬁcit in scheme at 31 december 1,629 1,681 1,558 
2011 2010 2009
Movement in scheme’s deﬁcit for the year: £’000 £’000 £’000 
deﬁcit in scheme at 1 January (1,681) (1,558) (1,454) 
Movement in year:
contributions 290 307 640 
Net return on investments (42) (101) (46) 
Actuarial loss (196) (329) (698) 
deﬁcit in scheme at 31 december (1,629) (1,681) (1,558) 
46
Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
Notes to the Accounts continued
Year ended 31 december 2011 19  Retirement Beneﬁt pension obligations continued
Reconciliation of Present Value of scheme liabilities and assets
2011 2010 2009
change in present value of deﬁned beneﬁt obligation: £’000 £’000 £’000 
change in present value of deﬁned beneﬁt obligation:
Present value of deﬁned beneﬁt obligation at start of year 5,545 5,440 8,078 
Interest on obligation 291 300 377 
Actuarial losses on obligations 379 173 610 
Beneﬁts paid (328) (368) (3,625) 
Present values of deﬁned beneﬁt obligation at end of year 5,887 5,545 5,440 
change in fair value of plan assets:
Fair value of plan assets at start of year 3,864 3,882 6,624 
Expected return of plan assets 249 199 331 
Actuarial losses/(gains) on plan assets 183 (156) (88) 
contributions by employer 290 307 640 
Beneﬁts paid (328) (368) (3,625) 
Fair values of plan assets at end of year 4,258 3,864 3,882 
the ﬁve year history of experience adjustments is as follows:
2011 2010 2009 2008 2007
£’000 £’000 £’000 £’000 £’000
Present value of deﬁned beneﬁt obligations 5,887 5,650 5,440 8,078 7,887 
Fair value of scheme assets 4,258 3,846 3,882 6,624 7,683 
deﬁcit in the scheme 1,629 1,804 1,558 1,454 204 
Experience adjustments on scheme liabilities
Amount (£) (262) 50 (102) 109 97 
Percentage of scheme liabilities (%) -4.45% 0.90% 1.90% 1.30% 1.20%
Actual return less expected return on plan assets:
Amount (£) 183 (156) (88) (1,472) 38 
Percentage of scheme assets (%) 4.30% 4.00% 2.30% 22.20% 0.50%
the contributions that are expected to be paid into the scheme during the current ﬁnancial year are £283,500 by the Group. the  current
arrangements as regards to contribution levels are in accordance with the Schedule of contributions agreed between the Group and the
trustees dated 15 June 2011.
47
ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc 48
Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
Notes to the Accounts continued
Year ended 31 december 2011
20  deferred tax
the following are the major deferred tax liabilities and assets recognised by the Group and movements thereon during the current and prior
reporting period.
other Accelerated Accelerated Retirement
timing tax tax beneﬁt
diﬀerences depreciation losses obligations total
£’000 £’000 £’000 £’000 £’000
At 1 January 2010 (74) (19) (1,608) (436) (2,137) 
charge/(released) to income (note 10) 74 19 1,608 (459) 1,242 
debit to equity -   -   -   895 895 
at 31 december 2010 and at 31 december 2011 -   -   -   -   -   
As at 31 december 2011 the Group had deductible temporary diﬀerences available for oﬀset against future proﬁts:
2011 2010
£’000 £’000
Retirement beneﬁt obligations 1,629 1,681 
unused tax losses 7,189 6,569 
Accelerated tax depreciation - 346 
other timing diﬀerences 82 20 
8,900 8,616 
No deferred tax asset has been recognised in respect of these amounts due to the unpredictability of future proﬁts arising from the
uncertain nature of the antique furniture and decorative art market and the timing of its recovery.
21  Share Based payments
the Group operates two share based plans – a Share Incentive Plan (“SIP”) and a Long term Incentive Plan (“LtIP”). details of these plans
are given in the directors' Remuneration Report on pages 19 to 23.
Share incentive plan
ordinary shares in Mallett plc are held by the trustees of the Mallett Share Incentive Plan to provide long-term beneﬁts to employees. 
the costs associated with the purchase of own shares for the trust are deducted from equity.
Long Term Incentive plan
the 2009 Award, was outstanding at 31 december 2011. the fair value of shares awarded under the 2009 Award has been calculated 
using the Black Scholes model. this gave a fair value of 51p per share based on the following assumptions:
2011 award 2010 Award
Share price at grant date (p) 61.5 61.5
Exercise price (p) n/a n/a
Expected volatility 35% 35%
Risk free rate 3% 3%
Expected term (years) 3 3 
Expected dividend yield 0% 0%
Fair value (p) 51.0 51.0
the assumption on expected volatility has been made on the basis of historical share price performance. Based on the fair value
calculated and the level of non-market related performance condition expected to be achieved, a charge of £16,000 (2010: £16,000) 
has been included in the Income Statement. 49
ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
21  Share Based payments continued
the number and value of the ordinary shares in Mallett plc held under the SIP and LtIP are as follows:
LtIP SIP total
No. £’000 No. £’000 No. £’000
At 1 January 2010 111,308 100 381,032 376 492,340 476 
Purchased -   -   134,044 78 134,044 78 
Exercised -   -   (45,283) (62) (45,283) (62) 
At 31 december 2010 111,308 100 469,793 392 581,101 492 
Purchased -   -   128,874 76 128,874 76 
Exercised -   -   (52,906) (55) (52,906) (55) 
at 31 december 2011 111,308 100 545,761 413 657,069 513 
22  called Up Share capital
Group company
2011 2010 2011 2010
£’000 £’000 £’000 £’000
Authorised:
24,000,000 ordinary shares of 5p each 1,200 1,200 1,200 1,200 
13,800,060 non-cumulative non-voting preference shares of 37.45p each 5,168 5,168 5,168 5,168 
6,368 6,368 6,368 6,368 
Allotted and fully paid:
13,800,060 ordinary shares of 5p each 690 690 690 690 
All holders of ordinary shares have the right to vote at general meetings of the company and to distributions from dividends or on winding
up of the company.
23  Share premium and Reserves
Capital redemption reserve
the capital redemption reserve represents amounts transferred from share capital on the redemption of issued shares.
Own shares
own shares represents the weighted average cost of own shares held in trust for the LtIP and SIP.
Special capital reserve
the special capital reserve represents amounts transferred from the share premium account for oﬀset against goodwill. 24  lease commitments
2011 2010
Group £’000 £’000
Present value of the future minimum operating lease payments under non-cancellable operating leases:
Less than one year 1,204 1,628 
Between two and ﬁve years 3,939 7,153 
After more than ﬁve years 11,065 23,166 
the lease commitments relate to the rent of the Group's various showrooms.
25  Reconciliation of net cash Flow to Movements in net Funds and analysis of net Funds
At 1 Exchange at 31
January 2011 cash Flow Movement december 2011
Group £’000 £’000 £’000 £’000
cash in hand and at bank 1,337 (1,012) -   325
Bank overdrafts (1,987) 541 -   (1,446) 
(650) (471) -   (1,121) 
company
cash at bank 10 (2) -   8 
26  Related party transactions
Key Management personnel
the Group’s key management personnel comprises of the Board executive and non-executive directors. the remuneration, beneﬁts and
share incentive plan details of these key personnel are set out in the directors’ Remuneration Report on page 19 to 23.
the cost recognised through the Income Statement in relation to the directors interests in the SIP and LtIP is £31,000 (2010: £31,000).
2011 2010
£'000 £'000
during the year the Group entered into transactions with companies in the Group that are less 
than 100% owned, the net amount of which is as follows for each of those companies:
James Harvey British Art Limited 970 951 
H.J. Hatﬁeld & Sons Limited 372 516 
Masterpiece London Limited 31 395 
At the year end the following balances were outstanding to the Group from companies less than 100% owned:
James Harvey British Art Limited 277 573 
H.J. Hatﬁeld & Sons Limited 340 227
Masterpiece London Limited 18 150 
At the year end the following balances were outstanding to the company:
Mallett & Son (Antiques) Limited 14,252 14,405 
Mallett overseas Limited 360 360 
14,612 14,765 
50
Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
Notes to the Accounts continued
Year ended 31 december 2011 26  Related party transactions continued
during the year the company made the following transactions with directors:
2011 2010
£'000 £'000
Sales:
Lord daresbury 60 8 
Purchases:
F .Jarrett - 2 
At the year end the following balances with Executive and Non-executive directors were outstanding:
2011 2010
£'000 £'000
Lord daresbury 49 -   
27  post Balance Sheet events
on 23 February 2012 the assignment of the Group's lease on 141 New Bond Street, London to Fendi uK Limited completed and the Group
received £1.7m (exclusive of VAt) on that date.
on 28 March 2012 the Group transferred 10 shares in JHBA (a 10% shareholding) to James Harvey as part of the share sale agreement
entering into in April 2010, which increased James Harvey's shareholding in JHBA to 50% and reduced Mallett's shareholding in JHBA to
50%. Mallett will retain control of JHBA through the ability to appoint a majority of directors and therefore the results of JHBA will still be
consolidated into the Group accounts.
51
ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc 52
Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011
Five Year Record
2011 2010 2009 2008 2007
£’000 £’000 £’000 £’000 £’000
Revenue 12,665 13,255 13,980 12,109 17,488 
proﬁt/(loss) Before taxation 508 (1,418) (1,774) (5,973) 1,318 
proﬁt/(loss) after taxation 458 (2,555) (1,608) (4,279) 874 
dividends (9) -   2 832 1,960 
Key Ratios
Basic earnings per share 3.44p (19.08p) (11.92p) (31.47p) 6.42
Net assets per share £1.13 £1.09 £1.37 £1.56 £1.89 Notice of Annual General Meeting
notice iS HeReBY GiVen that the twenty seventh annual general meeting of the members of Mallett plc (the
“company”) will be held at  ely House, 37 dover Street, london w1S 4nJ on 31 May 2012 at 4.30 pm when the 
resolutions set out below will be proposed:
to consider and, if thought ﬁt, to pass the following resolutions, of
which numbers 1-4 will be proposed as ordinary resolutions and
numbers 5 and 6 will be proposed as special resolutions:
1 to receive and adopt the company's audited accounts for the
year ended 31 december 2011, together with the directors' and
auditors' reports on those accounts and on the auditable part of
the directors' Remuneration Report.
2 to approve the directors' Remuneration Report for the year ended
31 december 2011, as set out in the 2011 Annual Report and
Accounts.
3 to re-appoint Bdo LLP as auditors to the company until the
conclusion of the next annual general meeting of the company
and to authorise the directors to ﬁx their remuneration.
4 that for the purposes of section 551 of the companies Act 2006
(the “Act”) (and so that expressions used in this resolution shall
bear the same meanings as in the said section 551):
4.1 the directors be and are generally and unconditionally
authorised to exercise all powers of the company to allot
shares and to grant such subscription and conversion rights
as are contemplated by sections 551(1)(a) and (b) of the Act
respectively up to a maximum nominal amount of £230,001
to such persons and at such times and on such terms as
they think proper during the period expiring at the end of
ﬁve years from the date of the passing of this resolution
(unless previously revoked or varied by the company in
general meeting); and
4.2 the company be and is hereby authorised to make prior 
to the expiry of such period any oﬀer or agreement which
would or might require shares to be allotted after the expiry
of the said period and the directors may allot relevant
securities in pursuance of any such oﬀer or agreement
notwithstanding the expiry of the authority given by this
resolution;
so that all previous authorities of the directors pursuant to
the said section 551 be and are hereby revoked.
5 that the company be and is hereby generally and unconditionally
authorised for the purpose of section 701 companies Act 2006 to
make market purchases (as deﬁned in section 693 of the said Act)
of ordinary shares of 5p each in the capital of the company
(“ordinary shares”) provided that:
5.1 the maximum number of ordinary shares hereby authorised
to be purchased is 10% of the issued share capital of the
company (1,380,006 ordinary shares);
5.2 the minimum price (exclusive of expenses) which may be
paid for such ordinary shares is 5p per share, being the
nominal amount thereof;
5.3 the maximum price (exclusive of expenses) which may be
paid for such ordinary shares shall be an amount equal to
the higher of (i) 5% above the average of the middle market
quotations for such shares taken from the London Stock
Exchange daily oﬃcial List for the ﬁve business days
immediately preceding the day on which the purchase is
made and (ii) the higher of the price of the last independent
trade of an ordinary share and the highest current
independent bid for an ordinary share as derived from 
the London Stock Exchange trading System SEtS;
5.4 the authority hereby conferred shall (unless previously
renewed or revoked) expire on the earlier of the end of the
next Annual General Meeting of the company and the date
which is 18 months after the date on which this resolution is
passed; and
5.5 the company may make a contract to purchase its own
ordinary shares under the authority conferred by this
resolution prior to the expiry of such authority, and such
contract will or may be executed wholly or partly after the
expiry of such authority, and the company may make a
purchase of its own ordinary shares in pursuance of any
such contract.
6 that a general meeting of the company other than an Annual
General Meeting may be called on not less than 14 clear days'
notice.
By order of the Board,
M.A. Smyth-osbourne
Director and Secretary
20 April 2012
(Incorporated in England and Wales with registered number 1838233)
53
ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc 54
1 A member entitled to attend and vote at the Meeting is
entitled to appoint a proxy to exercise all or any of the rights
of the member to attend and speak and vote on his or her
behalf. A proxy need not be a member of the company. A
member may appoint more than one proxy in relation to the
Meeting, provided that each proxy is appointed to exercise
the rights attached to a diﬀerent share or shares held by that
member. completion and return of a form of proxy will not
preclude a member from attending and voting at the meeting
in person. the right to appoint a proxy does not apply to any
person to whom this notice is sent who is a person
nominated under section 146 of the companies Act 2006 (the
“Act”) to enjoy information rights (a “Nominated Person”).
2 A form of proxy is enclosed which shareholders of the
company are invited to complete and return. to appoint more
than one proxy you may photocopy this form. Please indicate
the proxy holder's name and the number of shares in relation
to which they are authorised to act as your proxy (which, in
aggregate, should not exceed the number of shares held by
you). Please also indicate if the proxy instruction is one of
multiple instructions being given. All forms must be signed
and should be returned together in the same envelope.
3 the instrument appointing a proxy, together with a power of
attorney or other authority (if any) under which it is signed, or
a notarially certiﬁed copy of such power or authority, must be
completed, signed and returned so as to reach, by hand or by
post, capita Registrars, the Proxy department, the Registry,
34 Beckenham Road, Kent BR3 4tu no later than 4.30 pm 
on 29 May 2012. Any member or his proxy has the right to 
ask any questions at the Meeting relating to the business 
at the Meeting.
4 the company, pursuant to Section 360B of the Act and
Regulation 41 of the uncertiﬁcated Securities Regulations
2001 (as amended), speciﬁes that only shareholders whose
names appear on the register of members of the company 
as at 6.00 pm on 29 May 2012 shall be entitled to attend and
vote at the Annual General Meeting in respect of the number
of shares registered in their name at such time. If the Meeting
is adjourned, the time by which a person must be entered on
the register of members of the company in order to have the
right to attend and vote at the adjourned Meeting is 6.00 pm
on the day preceding the date ﬁxed for the adjourned
meeting. changes to the register of members after the
relevant times shall be disregarded in determining the 
rights of any person to attend and vote at the Meeting.
5 copies of the following documents will be available for
inspection at the Registered oﬃce of the company during
usual business hours on any weekday from the date of this
Notice until the date of the Annual General Meeting and
thereafter at the place of the Meeting for at least ﬁfteen
minutes prior to the meeting and during the Meeting:
(a) the register of interests of the directors and their families
in the share capital of the company; and
(b) copies of the directors' service contracts and the letter 
of appointment for the Non-Executive directors.
6 As at 20 April 2012 the company's issued share capital
consists of 13,800,060 ordinary shares, carrying one vote
each. therefore the total voting rights in the company as 
at 20 April 2012 are 13,800,060.
7 the information required to be published by s.311(A) of 
the Act (information about the contents of this Notice 
and numbers of shares in the company and voting rights
exercisable at the Meeting and details of any members'
statements, members' resolutions and members' items of
business received after the date of this notice) may be found
at www.mallettantiques.com
8 Members representing 5% or more of the total voting rights 
of all the members or at least 100 persons (being either
members who have a right to vote at the Meeting and hold
shares on which there has been paid up an average sum, per
member, of £100 or persons satisfying the requirements set
out in s.153(2) of the Act) may require the company, under
s.527 of the Act to publish on a website a statement setting
out any matter relating to: (i) the audit of the company's
accounts (including the auditor's report and the conduct 
of the audit) that are to be laid before the Annual General
Meeting; or (ii) any circumstance connected with an auditor 
of the company ceasing to hold oﬃce since the previous
meeting at which annual accounts and reports were laid in
accordance with section 437 of the Act. the business which
may be dealt with at the Annual General Meeting includes
any statement that the company has been required under
section 527 of the Act to publish on a website.
9 A Nominated Person may under an agreement between
him/her and the member who nominated him/her, have a
right to be appointed (or to have someone else appointed) as
a proxy entitled to attend and speak and vote at the Meeting.
Nominated Persons are advised to contact the member who
nominated them for further information on this and the
procedure for appointing any such proxy.
10 If a Nominated Person does not have a right to be appointed,
or to have someone else appointed, as a proxy for the
Meeting, or does not wish to exercise such a right, he/she 
may still have the right under an agreement between
himself/herself and the member who nominated him/her to
give instructions to the member as to the exercise of voting
rights at the Meeting. Such Nominated Persons are advised
to contact the members who nominated them for further
information on this.
Notes
Mallett plc    ANNuAL REPoRt ANd AccouNtS 2011 Form of Proxy
For use at the Annual General Meeting of Mallett plc (the “Company”)
to be held at 4.30 pm on 31 May 2012.
Please insert full name(s) and address(es)
I/We 
of 
(IN BLocK cAPItALS)
being (a) member(s) of the above-named company HEREBY APPoINt the chairman of the Meeting
or 
as my/our proxy to vote for me/us and on my/our behalf at the annual general meeting of the company to be held on 31 May 2012 and at any
adjournment thereof and in respect of the resolutions set out in the Notice of the annual general meeting to vote as indicated below.
For against Vote withheld
Please sign and insert date. A corporation should execute under its common seal or under the hand of a duly authorised attorney.
dated this day of 2012
Signed
notes
1. In the case of joint holdings the signature of any holder is suﬃcient but the vote of the senior holder who tenders a vote (whether in person or by proxy) shall be accepted 
to the exclusion of the other joint holders; for this purpose seniority shall be determined by the order in which the names stand in the register of members.
2. If you wish to appoint one or more a proxies other than the chairman you should delete the words “the chairman of the Meeting or”, insert your own choice in the space
provided and initial the amendment.  A proxy need not be a member of the company. to appoint more than one proxy you may photocopy this form. Please indicate the proxy
holder's name and the number of shares in relation to which they are authorised to act as your proxy (which, in aggregate, should not exceed the number of shares held by
you). Please also indicate if the proxy instruction is one of multiple instructions being given. All forms must be signed and should be returned together in the same envelope. 
on any other business which properly comes before the Meeting (including any motion to amend any resolution or to adjourn the meeting) the proxy will vote or abstain at 
his or her discretion.
3. Please indicate by marking “X” in the appropriate space how you wish your votes to be cast.  unless so instructed the proxy will vote or abstain as he/she thinks ﬁt.
4. to be valid this Form of Proxy and power of attorney or other authority (if any) under which it is signed or a notarially certiﬁed copy of such power or authority must be
returned to capita Registrars, the Proxy department, the Registry, 34 Beckenham Road, Beckenham, Kent BR3 4tu not later than 48 hours before the time ﬁxed for the
Meeting.
5. A vote witheld is not a vote in law and will not be counted in the calculation of the proportion of the votes “For” or “Against” the Resolution.
6. If you appoint as your proxy a person who is himself a member of the company or who is already appointed by more than one member of the company, such person will be
able to cast your vote only on a poll, not on a show of hands.
7. completion and return of this proxy will not prevent you attending and voting at the annual general meeting if you so wish.
For company use only
Holding of shares
Number
1. to receive and adopt the audited accounts
2. to approve the directors' Remuneration report
3. to re-appoint Bdo LLP as auditors and to authorise the directors to ﬁx their
remuneration
4. to authorise the allotment of shares
5. to authorise the company to make market purchases of its own shares 
(Special Resolution)
6. to permit general meetings to be called on 14 clear days notice 
(Special Resolution) PXS
34 Beckenham Road
Beckenham 
Kent
BR3 4BR
Business Reply
Licence Number 
RSBH - UXKS - LRBC
1 1
third fold and tuck in
Second fold
First fold ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
57
Secretary
Michael A. Smyth-Osbourne
Registered office
Ely House
37 Dover Street
London W1S 4NJ
company number
1838233
Bankers
Coutts & Co
440 Strand
London WC2R 0QS
auditors
BDO LLP
55 Baker Street
London W1V 7EU
Solicitors
Travers Smith LLP
10 Snow Hill
London EC1A 2AL
Registrars
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Stockbrokers
Singer Capital Markets Limited
One Hanover Street
London W1S 1YZ
Financial Calendar
Interim Management Statement released May 2012
Half–year results announced August 2012
Interim Management Statement released November 2012
Preliminary announcement of results for the year to 31 December 2012 March 2013
Company Advisers
57
ANNuAL REPoRt ANd AccouNtS 2011    Mallett plc
DESIGNED AND PRODUCED BY SINCLAIR COMMUNICATIONS Ely House
37 Dover Street
London W1S 4NJ
Telephone +44 (0)20 7499 7411
929 Madison Avenue at 74th
New York, NY 10021
Telephone +1 212 249 8783
www.mallettantiques.com
A HIGHLY UNUSUAL GEORGE III APPLIQUE TEXTILE HANGING
A rare set of late 18th century appliqué panels, possibly representing 
the marriage or coronation procession of George III and Queen Charlotte,
composed of contemporary dress materials of bright colouring and
including silks, satins, velvets and brocades, all mounted on a pale blue silk
ground. The appliqué technique used in these hangings portrays the tightly
grouped procession in extraordinary three-dimensional form and uses a
great variety of textiles of the period and possibly in some cases cuttings 
of the material used for the actual costumes.
England, circa 1780
Sold in 2011