Exhibit 99.3
 GoIndustry DoveBid plc




---



##### 



Independent auditors report
   Respective responsibilities of directors and auditors
  Scope of the audit of the financial statements
  Opinion on the financial statements
  
    
    the financial statements give a true and fair view of the state of the groups and the parents affairs as at
31 December 2009 and of the groups loss for the year then ended;
    
    the group financial statements have been properly prepared in accordance with IFRSs as
adopted by the European
Union;
    
    the parent financial statements have been properly prepared in accordance with IFRSs
as adopted by the European
Union and as applied in accordance with the Companies Act 2006; and
    
    the financial statements have been prepared in accordance with the requirements of the
Companies Act 2006.
 Opinion on other matter prescribed by the Companies Act 2006
  Matters on which we are required to report by exception
  
    
    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 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.
 
   10




---



##### 



Consolidated statement of comprehensive income
  2009
    
    
    2008Before
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Beforeexcept-
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    except-ional
    
    
    Except-
    
    
    
    
    
    
    
    
    
    
    ional
    
    
    Except-items and
    
    
    ional
    
    
    Other
    
    
    
    
    
    
    items and
    
    
    ional
    
    
    Otherother
    
    
    items
    
    
    charges
    
    
    
    
    
    
    other
    
    
    items
    
    
    chargesIn thousands of pounds
    
    Note
    
    
    charges
    
    
    (note 6)
    
    
    (note 7)
    
    
    Total
    
    
    charges
    
    
    (note 6)
    
    
    (note 7)
    
    
    TotalRevenue
    
    
    5
    
    
    
    41,990
    
    
    
    
    
    
    
    
    
    
    
    41,990
    
    
    
    36,898
    
    
    
    
    
    
    
    
    
    
    
    36,898Cost of sales
    
    
    
    
    
    
    (16,716
    )
    
    
    
    
    
    
    
    
    
    
    (16,716
    )
    
    
    (13,681
    )
    
    
    
    
    
    
    
    
    
    
    (13,681
    )Direct profit
    
    
    
    
    
    
    25,274
    
    
    
    
    
    
    
    
    
    
    
    25,274
    
    
    
    23,217
    
    
    
    
    
    
    
    
    
    
    
    23,217Administrative expenses
    
    
    
    
    
    
    (25,857
    )
    
    
    (1,773
    )
    
    
    (1,036
    )
    
    
    (28,666
    )
    
    
    (27,200
    )
    
    
    (23,758
    )
    
    
    (788
    )
    
    
    (51,746
    )Operating loss
    
    
    8
    
    
    
    (583
    )
    
    
    (1,773
    )
    
    
    (1,036
    )
    
    
    (3,392
    )
    
    
    (3,983
    )
    
    
    (23,758
    )
    
    
    (788
    )
    
    
    (28,529
    )Finance costsInterest income
    
    
    11
    
    
    
    141
    
    
    
    
    
    
    
    
    
    
    
    141
    
    
    
    369
    
    
    
    
    
    
    
    
    
    
    
    369Finance costs
    
    
    11
    
    
    
    (972
    )
    
    
    (414
    )
    
    
    
    
    
    
    (1,386
    )
    
    
    (698
    )
    
    
    
    
    
    
    
    
    
    
    (698
    )Share of loss of associate
    
    
    
    
    
    
    (28
    )
    
    
    
    
    
    
    
    
    
    
    (28
    )
    
    
    (27
    )
    
    
    
    
    
    
    
    
    
    
    (27
    )Loss before income tax
    
    
    
    
    
    
    (1,442
    )
    
    
    (2,187
    )
    
    
    (1,036
    )
    
    
    (4,665
    )
    
    
    (4,339
    )
    
    
    (23,758
    )
    
    
    (788
    )
    
    
    (28,885
    )Income tax expense
    
    
    12
    
    
    
    (170
    )
    
    
    
    
    
    
    
    
    
    
    (170
    )
    
    
    (73
    )
    
    
    
    
    
    
    
    
    
    
    (73
    )Loss for the year from
continuing operations
    
    
    
    
    
    
    (1,612
    )
    
    
    (2,187
    )
    
    
    (1,036
    )
    
    
    (4,835
    )
    
    
    (4,412
    )
    
    
    (23,758
    )
    
    
    (788
    )
    
    
    (28,958
    )Loss for the year from
discontinued operations
    
    
    13
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,303
    )Loss for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,835
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (30,261
    )Other comprehensive incomeExchange (losses) / gains on
translation of foreign subsidiaries
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,130
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,043Actuarial (losses) / gains on
defined benefit pension scheme
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,150
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    430Other comprehensive income
for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,280
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,473Total comprehensive income
for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (9,115
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (21,788
    )Loss attributable to:Owners of the Parent
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,916
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (30,323
    )Non-controlling interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    81
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    62(4,835
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (30,261
    )Total comprehensive loss
attributable to:Owners of the Parent
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (9,196
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (21,850
    )Non-controlling interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    81
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    62(9,115
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (21,788
    )Loss per share for loss from continuing operations attributable to owners of the parent during
the year
(expressed in pence per share)Basic
    
    
    14
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.8p
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6.6p
    )Diluted
    
    
    14
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.8p
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6.6p
    )Loss per share for loss attributable to owners of the parent during the year(expressed in pence
per share)Basic
    
    
    14
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.8p
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6.9p
    )Diluted
    
    
    14
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.8p
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6.9p
    )
    11




---



##### 



Consolidated statement of financial position
  In thousands of pounds
    
    Note
    
    
    2009
    
    
    2008Non-current assetsProperty, plant and equipment
    
    
    15
    
    
    
    1,026
    
    
    
    1,429Intangible assets
    
    
    16
    
    
    
    32,335
    
    
    
    35,750Investment in associate
    
    
    17
    
    
    
    
    
    
    
    2833,361
    
    
    
    37,207Current assetsInventories
    
    
    
    
    
    
    597
    
    
    
    2,743Trade and other receivables
    
    
    18
    
    
    
    6,649
    
    
    
    10,853Cash and cash equivalents
    
    
    19
    
    
    
    20,751
    
    
    
    18,03727,997
    
    
    
    31,633Total assets
    
    
    
    
    
    
    61,358
    
    
    
    68,840Current liabilitiesTrade and other payables
    
    
    20
    
    
    
    25,611
    
    
    
    27,803Borrowings
    
    
    21
    
    
    
    2,317
    
    
    
    9,97027,928
    
    
    
    37,773Non-current liabilitiesTrade and other payables
    
    
    20
    
    
    
    358
    
    
    
    1,094Borrowings
    
    
    21
    
    
    
    2,048
    
    
    
    546Retirement benefit obligations
    
    
    22
    
    
    
    4,581
    
    
    
    2,8986,987
    
    
    
    4,538Total liabilities
    
    
    
    
    
    
    34,915
    
    
    
    42,311Net assets
    
    
    
    
    
    
    26,443
    
    
    
    26,529EquityShare capital
    
    
    23
    
    
    
    9,745
    
    
    
    23,583Share premium
    
    
    23
    
    
    
    22,495
    
    
    
    18,872Shares to be issued
    
    
    23
    
    
    
    542
    
    
    
    542Own shares held in trust
    
    
    24
    
    
    
    
    
    
    
    (974
    )Capital redemption reserve
    
    
    27
    
    
    
    18,908
    
    
    
    Other reserves
    
    
    25
    
    
    
    54,327
    
    
    
    56,207Accumulated losses
    
    
    26
    
    
    
    (79,836
    )
    
    
    (71,882
    )Capital and reserves attributable to owners of the parent
    
    
    
    
    
    
    26,181
    
    
    
    26,348Non-controlling interests
    
    
    
    
    
    
    262
    
    
    
    181Total equity
    
    
    
    
    
    
    26,443
    
    
    
    26,529
   Jack Reinelt
    
    David HorneChief Executive Officer
    
    Chief Financial Officer
  12




---



##### 



Consolidated statement of changes in equity
  Attributable to owners of the parentOwnCapital
    
    
    
    
    
    
    shares
    
    
    
    
    
    
    Share
    
    
    Foreign
    
    
    Accumu-
    
    
    
    
    
    
    Non-Share
    
    
    Share
    
    
    redemption
    
    
    Shares to
    
    
    held in
    
    
    Acquisition
    
    
    options
    
    
    currency
    
    
    lated
    
    
    
    
    
    
    controlling
    
    
    TOTALIn thousands of pounds
    
    capital
    
    
    premium
    
    
    reserve
    
    
    be issued
    
    
    trust
    
    
    reserve
    
    
    reserve
    
    
    reserve
    
    
    losses
    
    
    TOTAL
    
    
    interest
    
    
    EquityAt 1 January 2008
    
    
    13,250
    
    
    
    9,578
    
    
    
    
    
    
    
    
    
    
    
    (1,042
    )
    
    
    47,649
    
    
    
    1,149
    
    
    
    (807
    )
    
    
    (41,989
    )
    
    
    27,788
    
    
    
    119
    
    
    
    27,907Comprehensive income:Loss for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (30,323
    )
    
    
    (30,323
    )
    
    
    62
    
    
    
    (30,261
    )Other comprehensive income:Actuarial gain on defined benefit
pension scheme
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    430
    
    
    
    430
    
    
    
    
    
    
    
    430Currency translation differences
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,043
    
    
    
    
    
    
    
    8,043
    
    
    
    
    
    
    
    8,043Total comprehensive income:
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,043
    
    
    
    (29,893
    )
    
    
    (21,850
    )
    
    
    62
    
    
    
    (21,788
    )Transactions with owners:Issue of share capital to finance the
acquisition of DoveBid Inc.
    
    
    9,250
    
    
    
    9,250
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,500
    
    
    
    
    
    
    
    18,500Shares issued as consideration for the
acquisition of DoveBid Inc.
    
    
    1,083
    
    
    
    1,083
    
    
    
    
    
    
    
    542
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,708
    
    
    
    
    
    
    
    2,708Cost of share issue
    
    
    
    
    
    
    (1,039
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,039
    )
    
    
    
    
    
    
    (1,039
    )Share based payments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    173
    
    
    
    
    
    
    
    
    
    
    
    173
    
    
    
    
    
    
    
    173Transfer of shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    68
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    68
    
    
    
    
    
    
    
    68Total transactions with owners:
    
    
    10,333
    
    
    
    9,294
    
    
    
    
    
    
    
    542
    
    
    
    68
    
    
    
    
    
    
    
    173
    
    
    
    
    
    
    
    
    
    
    
    20,410
    
    
    
    
    
    
    
    20,410At 1 January 2009
    
    
    23,583
    
    
    
    18,872
    
    
    
    
    
    
    
    542
    
    
    
    (974
    )
    
    
    47,649
    
    
    
    1,322
    
    
    
    7,236
    
    
    
    (71,882
    )
    
    
    26,348
    
    
    
    181
    
    
    
    26,529Comprehensive income:Loss for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,916
    )
    
    
    (4,916
    )
    
    
    81
    
    
    
    (4,835
    )Other comprehensive income:Actuarial
loss on defined benefit pension scheme
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,150
    )
    
    
    (2,150
    )
    
    
    
    
    
    
    (2,150
    )Currency translation differences
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,130
    )
    
    
    
    
    
    
    (2,130
    )
    
    
    
    
    
    
    (2,130
    )Total comprehensive income:
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,130
    )
    
    
    (7,066
    )
    
    
    (9,196
    )
    
    
    81
    
    
    
    (9,115
    )Transactions with owners:Cancellation of shares
    
    
    (18,908
    )
    
    
    
    
    
    
    18,908
    
    
    
    
    
    
    
    888
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (888
    )
    
    
    
    
    
    
    
    
    
    
    New shares issued
    
    
    2,657
    
    
    
    2,126
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,783
    
    
    
    
    
    
    
    4,783Conversion of loan notes
    
    
    2,413
    
    
    
    1,923
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,336
    
    
    
    
    
    
    
    4,336Cost of share issue
    
    
    
    
    
    
    (426
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (426
    )
    
    
    
    
    
    
    (426
    )Share based payments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    250
    
    
    
    
    
    
    
    
    
    
    
    250
    
    
    
    
    
    
    
    250Transfer of shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    86
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    86
    
    
    
    
    
    
    
    86Total transactions with owners:
    
    
    (13,838
    )
    
    
    3,623
    
    
    
    18,908
    
    
    
    
    
    
    
    974
    
    
    
    
    
    
    
    250
    
    
    
    
    
    
    
    (888
    )
    
    
    9,029
    
    
    
    
    
    
    
    9,029At 31 December 2009
    
    
    9,745
    
    
    
    22,495
    
    
    
    18,908
    
    
    
    542
    
    
    
    
    
    
    
    47,649
    
    
    
    1,572
    
    
    
    5,106
    
    
    
    (79,836
    )
    
    
    26,181
    
    
    
    262
    
    
    
    26,443
   13




---



##### 



Consolidated statement of cash flows
  In thousands of pounds
    
    2009
    
    
    2008Cash flows from operating activitiesLoss before income tax
    
    
    (4,665
    )
    
    
    (28,885
    )Adjustments for:Depreciation
    
    
    434
    
    
    
    360Amortisation
    
    
    935
    
    
    
    672Goodwill impairment charge
    
    
    
    
    
    
    19,378Net interest expense
    
    
    1,245
    
    
    
    329Share based payments
    
    
    336
    
    
    
    241Net retirement benefit cost
    
    
    117
    
    
    
    176Share of loss of associate
    
    
    28
    
    
    
    27Changes in working capital:Decrease / (increase) in inventories
    
    
    1,943
    
    
    
    (1,855
    )Decrease in accounts receivable
    
    
    3,719
    
    
    
    1,785(Decrease) / increase in accounts payable
    
    
    (2,563
    )
    
    
    1,209Increase / (decrease) in retirement benefit obligations
    
    
    1,683
    
    
    
    (367
    )Operating cash flows before interest and taxes
    
    
    3,212
    
    
    
    (6,930
    )Interest paid
    
    
    (1,116
    )
    
    
    (698
    )Interest received
    
    
    141
    
    
    
    369Income and corporation taxes paid
    
    
    (156
    )
    
    
    (108
    )Net cash generated from / (used in) operating activities
    
    
    2,081
    
    
    
    (7,367
    )Cash flows from investing activitiesPurchases of property, plant and equipment
    
    
    (94
    )
    
    
    (471
    )Disposals of property, plant and equipment
    
    
    91
    
    
    
    Purchases of intangible assets
    
    
    (394
    )
    
    
    (1,786
    )Loan granted to associate
    
    
    
    
    
    
    (55
    )Disposal of subsidiary
    
    
    
    
    
    
    (129
    )Acquisition of subsidiary net of cash acquired
    
    
    
    
    
    
    (7,044
    )Net cash used in investing activities
    
    
    (397
    )
    
    
    (9,485
    )Cash flows from financing activitiesProceeds on issue of shares
    
    
    4,087
    
    
    
    17,461(Decrease) / increase in borrowings
    
    
    (1,815
    )
    
    
    3,379Net cash generated from financing activities
    
    
    2,272
    
    
    
    20,840Net increase in cash and cash equivalents
    
    
    3,956
    
    
    
    3,988Cash and cash equivalents at beginning of year
    
    
    18,037
    
    
    
    14,797Effect of foreign exchange rate changes
    
    
    (1,242
    )
    
    
    (748
    )Cash and cash equivalents at end of year
    
    
    20,751
    
    
    
    18,037
   14




---



##### 



Notes to the consolidated financial statements
  1. General information
    2. Summary of significant accounting policies
  Basis of preparation
      
    
    IAS 1 (revised), Presentation of financial statements. The revised standard has
introduced terminology changes (including revised titles for the financial statements) and changes
in the format and content of the financial statements. In addition, the revised standard prohibits
the presentation of items of income and expenses (that is non-owner changes in equity) in the
statement of changes in equity, requiring non-owner changes in equity to be presented separately
from owner changes in equity. All non-owner changes in equity are required to be shown in a
performance statement.Entities can choose whether to present one performance statement (the statement of
comprehensive income) or two statements (the income statement and statement of comprehensive
income). The group has elected to present one statement: a statement of comprehensive income.
    
    IFRS 8, Operating segments. The group has adopted IFRS 8 Operating segments
during the period. The standard supersedes IAS 14, Segment reporting and is effective for
the year ended 31 December 2009. IFRS
8 provides segmental information for the group on the basis of information reported
internally to the chief operating decision-maker for decision-making purposes. The group
considers that the role of chief operating decision-maker is performed by the group board
of directors. IAS 14 required segmental information to be reported for business segments
and geographical segments based on assets and operations that provided products or
services subject to different risks and returns. The adoption of IFRS 8 has not had any
impact on the performance or position of the group or on the presentation of these
financial statements as internal reporting is based upon geographical segments.
    
    IFRS 2 Share-based payment  amendments relating to group cash-settled share-based
payment transactions
    
    IFRS 3 Business combinations  comprehensive revision on applying the acquisition
method adopted early by the group
    
    IFRS 9 Financial Instruments  amendments relating to classification and measurement
    
    IAS 1 Presentation of financial statements  amendments resulting from April 2009
Annual Improvements to
IFRSs adopted early by the group
    
    IAS 7 Statement of Cash Flows  amendments resulting from April 2009 Annual
Improvements to IFRSs
    
    IAS 17 Leases  amendments resulting from April 2009 Annual
Improvements to IFRSs
    
    IAS 24 Related Party Disclosures  revised definition of
related parties
    
    IAS 27 Consolidated and Separate Financial Statements  consequential amendments
arising from amendments to IFRS 3 early adopted by the group
  15




---



##### 



Notes to the consolidated financial statements
  
    
    IAS 36 Impairment of Assets  amendments resulting from April 2009 Annual
Improvements to IFRSs
    
    IAS 38 Intangible Assets  amendments resulting from April 2009 Annual Improvements
to IFRSs
    
    IFRIC 14 IAS 19  The limit on a defined benefit asset, minimum funding requirements
and their interaction
(endorsed).
   
    
    IFRS 1 First time adoption of IFRS  amendments relating to oil and gas assets and
determining whether an arrangement contains a lease; amendment in relation to the cost of an
investment in a subsidiary, jointly controlled entity or associate
    
    IFRS 5 Non-current Assets Held for Sale and Discontinued Operations  amendment
    
    IAS 28 Interests in Joint Ventures  consequential amendments arising from
amendments to IFRS 3
    
    IAS 32 Financial instruments: presentation  amendments
relating to classification of rights issues
    
    IAS 39 Financial instruments:
recognition and measurement  amendments for eligible hedged items
    
    IFRIC 2 Members shares in co-operative entities and similar instruments 
consequential amendments arising from amendments to IAS 32
    
    IFRIC 12 Service concession arrangements
    
    IFRIC 13 Customer loyalty programs (endorsed)
    
    IFRIC 16 Hedges of a net investment in a foreign
operation
    
    IFRIC 17 Distributions of non-cash
assets to owners
    
    IFRIC 18 Transfer of assets from
Customers
    
    IAS 28 (amendment), Investment in associates (and consequential amendments to IAS
32, Financial instruments: Recognition and measurement and IFRS 7, Financial instruments:
Disclosures)
    
    IAS 29 (amendment), Financial reporting in hyperinflationary economies
    
    IAS 31 Investment in joint ventures  consequential amendments arising from
amendments to IFRS 3
    
    IAS 31 (amendment), Interests in joint ventures (and consequential amendments to
IAS 32, Financial instruments: Recognition and measurement and IFRS 7, Financial
instruments: Disclosures)
    
    IAS 32 (amendment), Financial instruments: Presentation and IAS 1 (amendment)
Presentation of financial statements  Puttable financial instruments and obligations arising
on liquidation
    
    IAS 40 (amendment), Investment property (and consequent amendments to IAS 16,
Property, plant and equipment)
    
    IAS 41 (amendment), Agriculture.
 Going concern
     16




---



##### 



Consolidation
      Segment reporting
   Foreign currency translation
 (a)
    
    Functional and presentation currencyItems included in the financial statements of each of the groups entities are measured using
the currency of the primary economic environment in which the entity operates (the functional
currency). The consolidated financial statements are presented in Sterling (£), which is
the companys functional and presentation currency.(b)
    
    Transactions and balancesForeign currency transactions are translated into the functional currency using the exchange
rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting
from the settlement of such transactions and from the translation at year-end exchange rates
of monetary assets and liabilities denominated in foreign currencies are recognised in profit
or loss.
  17




---



##### 



Notes to the consolidated financial statements
  (c)
    
    Group companiesThe results and financial position of all the group entities (none of which has the currency
of a hyper-inflationary economy) that have a functional currency different from the
presentation currency are translated into the presentation currency as follows:
 i.
    
    assets and liabilities for each balance sheet presented are translated at the closing rate
at the date of that balance sheet;ii.
    
    income and expenses are translated at weighted average monthly exchange rates (unless this
average is not a reasonable approximation of the cumulative effect of the rates prevailing on
the transaction dates, in which case income and expenses are translated at the rate on the
dates of the transactions); and all resulting exchange differences are recognised in other
comprehensive income.
   Revenue recognition
     Employee benefits
 (a)
    
    Pension obligationsThe group has both defined benefit and defined contribution plans. A defined contribution plan
is a pension plan under which the group pays fixed contributions into a separate entity. The
group has no legal or constructive obligations to pay further contributions if the fund does
not hold sufficient assets to pay all employees the benefits relating to employee service in
the current and prior periods. A defined benefit plan is a pension plan that is not a defined
contribution plan. Typically defined benefit plans define an amount of pension benefit that an
employee will receive on retirement, usually dependent on one or more factors such as age,
years of service and compensation.The defined benefit plan, the Henry Butcher Pension and Life Assurance Scheme, is operated by
GoIndustry UK Limited. GoIndustry UK Limited is obliged to make sufficient contributions to an
externally administered fund in order to satisfy future pension obligations. The Scheme was
closed to new members with effect from 1 January 2002, and with effect from 31 December 2004
accrual of benefits in the Scheme ceased and active members contributed to a defined
contribution scheme. The liability recognised in the balance sheet in respect of the defined
benefit scheme is the present value of the defined benefit obligation at the balance sheet
date less the fair value of plan assets, together with adjustments for unrecognised
past-service costs. The defined benefit obligation is calculated annually by independent
actuaries using the projected unit credit method. The present value of the defined benefit
obligation is determined by discounting the estimated future cash outflows using interest
rates of high-quality corporate bonds that are denominated in the currency in which the
benefits will be paid, and that have terms to maturity approximating to the terms of the
related pension liability.
  18




---



##### 



Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions are charged or credited to other comprehensive income in the period in which they
arise.For defined contribution plans, the group pays contributions to publicly or privately
administered pension insurance plans on a mandatory, contractual or voluntary basis. The group
has no further payment obligations once the contributions have been paid. The contributions
are recognised as an employee benefit expense when they are due. Prepaid contributions are
recognised as an asset to the extent that a cash refund or a reduction in the future payments
is available.(b)
    
    Share-based compensationThe group operates a number of equity-settled, share-based compensation plans. The fair value
of the employee services received in exchange for the grant of the options is recognised as an
expense. The total amount to be expensed over the vesting period is determined by reference to
the fair value of the options granted, excluding the impact of any non-market vesting
conditions (for example, profitability and sales growth targets). Non-market vesting
conditions are included in assumptions about the number of options that are expected to vest.
At each balance sheet date, the group revises its estimates of the number of options that are
expected to vest. It recognises the impact of the revision to original estimates, if any, in
profit or loss, with a corresponding adjustment to equity.The proceeds received net of any directly attributable transaction costs are credited to share
capital (nominal value) and share premium when the options are exercised.
 Leases
  Current and deferred income tax
      Property, plant and equipment
    19




---



##### 



Notes to the consolidated financial statements
   Buildings
    
    10-25 yearsVehicles
    
    4 yearsFurniture, fittings and equipment
    
    3 years
   Intangible assets
 (a)
    
    GoodwillGoodwill represents the excess of the cost of an acquisition over the fair value of the
groups share of the net identifiable assets of the acquired subsidiary at the date of
acquisition. Goodwill on acquisitions of subsidiaries is included in intangible assets.
Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity
include the carrying amount of goodwill relating to the entity sold.Goodwill is allocated to cash-generating units for the purpose of impairment testing. The
allocation is made to those cash-generating units or groups of cash-generating units that are
expected to benefit from the business combination in which the goodwill arose. The company
allocates goodwill to each geographical business unit.Assets that have an indefinite useful life, for example goodwill, are not subject to
amortisation and are tested annually for impairment. Assets that are subject to amortisation
are reviewed for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised for the amount by
which the assets carrying amount exceeds its recoverable amount. The recoverable amount is
the higher of an assets fair value less costs to sell and value in use.(b)
    
    Customer relationshipsCustomer relationships acquired in a business combination are recognised at fair value at the
acquisition date. The customer relationships have a finite useful life and are carried at cost
less accumulated amortisation. Amortisation is calculated using the straight-line method over
the expected life of the customer relationship, which is 5 years.(c)
    
    BrandsBrands acquired in a business combination are recognised at fair value at the acquisition
date. The brands have a finite useful life and are carried at cost less accumulated
amortisation. Amortisation is calculated using the straight-line method over the expected life
of the brands, which is 10 years.(d)
    
    Other intangible assetsAcquired computer software licences are capitalised on the basis of the costs incurred to
acquire and bring to use the specific software. These costs are amortised over their estimated
useful lives of 2 to 3 years.In line with IFRS, the group does not recognise internally generated intangible assets arising
from expenditures such as research, branding or the creation of its customer and equipment
databases. Expenditures associated with internal systems development and with internally
generated goodwill are charged against profit in the period in which they are incurred.
 Inventories
  Financial assets
   20




---



##### 



Trade and other receivables
   Cash and cash equivalents
   Trade payables
  Borrowings
   Provisions
   Share capital
    3. Financial risk management
  Market risk
 (a)
    
    Foreign exchange riskThe group operates internationally and is exposed to foreign exchange risk arising from
various currency exposures. Foreign exchange risk arises from future commercial transactions,
recognised assets and liabilities and net investments in foreign operations. In order to
reduce the currency risk arising in respect of recognised foreign currency assets and net
investments in foreign subsidiaries, the group uses direct borrowings in the same
currency. The risk relating to future commercial transactions and recognised liabilities is
mitigated through the maintenance of cash balances in the same currency.
  21




---



##### 



Notes to the consolidated financial statements
  The effect of changing exchange rates is regularly monitored by the group and a sensitivity
analysis has been prepared to show the impact of changes in foreign exchange between Sterling,
the United States Dollar and the Euro. A decrease of twenty cents in the value of both the
Dollar and the Euro would increase consolidated loss before tax by £12 thousand (2008:
Decrease £393 thousand) and increase total equity by £5,000 thousand (2008: £5,618 thousand).
An increase of five cents in the value of both the Dollar and the Euro would decrease
consolidated loss before tax by £1 thousand (2008: Increase £522 thousand) and decrease total
equity by £999 thousand (2008: £8,459 thousand).Foreign exchange risk arises when future commercial transactions or recognised assets or
liabilities are denominated in a currency that is not the functional currency.The carrying values of the groups financial assets and liabilities are denominated in the
following currencies:
 2009In thousands of pounds
    
    USD
    
    
    Euro
    
    
    GBP
    
    
    TotalLoans and receivables:Trade receivables
    
    
    2,130
    
    
    
    809
    
    
    
    464
    
    
    
    3,403Other receivables
    
    
    767
    
    
    
    117
    
    
    
    6
    
    
    
    890Accrued income
    
    
    60
    
    
    
    324
    
    
    
    1,066
    
    
    
    1,450Cash and cash equivalents
    
    
    14,268
    
    
    
    2,727
    
    
    
    3,756
    
    
    
    20,751Amortised Costs:Trade payables
    
    
    124
    
    
    
    (272
    )
    
    
    (3,341
    )
    
    
    (3,489
    )Amounts due to clients
    
    
    (12,635
    )
    
    
    (2,647
    )
    
    
    (954
    )
    
    
    (16,236
    )Accruals and other payables
    
    
    (1,550
    )
    
    
    (1,003
    )
    
    
    (787
    )
    
    
    (3,340
    )Borrowings
    
    
    (3,280
    )
    
    
    (500
    )
    
    
    (585
    )
    
    
    (4,365
    )(116
    )
    
    
    (445
    )
    
    
    (375
    )
    
    
    (936
    )
 2008In thousands of pounds
    
    USD
    
    
    Euro
    
    
    GBP
    
    
    TotalTrade receivables
    
    
    1,857
    
    
    
    1,094
    
    
    
    628
    
    
    
    3,579Other receivables
    
    
    849
    
    
    
    165
    
    
    
    30
    
    
    
    1,044Accrued income
    
    
    621
    
    
    
    791
    
    
    
    3,401
    
    
    
    4,813Cash and cash equivalents
    
    
    13,036
    
    
    
    1,217
    
    
    
    3,784
    
    
    
    18,037Amortised Costs:Trade payables
    
    
    (1,501
    )
    
    
    (841
    )
    
    
    (2,365
    )
    
    
    (4,707
    )Amounts due to clients
    
    
    (9,695
    )
    
    
    (1,881
    )
    
    
    (4,603
    )
    
    
    (16,179
    )Accruals and other payables
    
    
    (3,176
    )
    
    
    (1,160
    )
    
    
    (1,042
    )
    
    
    (5,378
    )Borrowings
    
    
    (5,290
    )
    
    
    
    
    
    
    (5,226
    )
    
    
    (10,516
    )(3,299
    )
    
    
    (615
    )
    
    
    (5,393
    )
    
    
    (9,307
    )
 During the 12 month period the Sterling / US Dollar exchange rate fluctuated between a maximum
and minimum of 1.653 and 1.421 US $ to £1.During the 12 month period the Sterling / Euro exchange rate fluctuated between a maximum and
minimum of 1.176 and 1.076 EUR to £1.(b)
    
    Cash flow interest rate riskBorrowings of the group comprise convertible loan notes issued by GoIndustry-DoveBid plc and
bank loans held by GoIndustry USA Inc., GoIndustry UK Limited and GoIndustry AG. The group is
exposed to cash flow interest rate risk only on its bank borrowings as the convertible loan
notes attract interest at a fixed rate of 12%. Bank borrowings are used mainly for working
capital to finance the purchase of assets for resale and therefore are generally held only for
a short time period.Before the purchase of each group of assets a proposal is presented to an investment committee
projecting the profitability of the investment after the cost of finance and therefore
decisions can be taken based upon the prevailing interest rate at the time of investment. Due
to the short time period for which these assets are held the actual finance cost is only
likely to fluctuate marginally from the projection. There is also a term loan facility of
£1,663 thousand (2008: nil) that is repayable over the period to 30 April 2012.A sensitivity analysis has been prepared to model the impact on profit before tax of a change
in the effective interest rate for bank borrowings. A +/- variance of 100 basis points in the
effective interest rate would have an impact of £77 thousand (2008: £77 thousand) on profit
before tax. Further details on interest rate risk exposure are contained in note 21.
  22




---



##### 



Credit risk
   In thousands
    

    2009Counterparty
    
    Rating
    
    
    BalancePNC Bank
    
    
    A
    
    
    
    8,289Barclays Bank plc
    
    AA-
    
    
    
    Hypo Vereins Bank
    
    AAA
    
    
    
    827LCL
    
    AA-
    
    
    
    363HSBC
    
    AA
    
    
    
    323Deutsche Bank
    
    AAA
    
    
    
    246Other
    
    
    
    
    
    
    10,70320,751
  Trade receivables management
  Capital risk management
   Liquidity risk
   23




---



##### 



Notes to the consolidated financial statements
   2009
 Effective
    
    
    Recognised
    
    
    Contractual
    
    
    Totalinterest
    
    
    asset /
    
    
    interest
    
    
    Contractual
    
    
    6 months
    
    
    6-12In thousands of pounds
    
    rate
    
    
    (liability)
    
    
    payable
    
    
    cash flow
    
    
    or less
    
    
    months
    
    
    1-5 yearsLoans and receivables:Trade receivables
    
    
    
    
    
    
    3,403
    
    
    
    
    
    
    
    3,403
    
    
    
    2,999
    
    
    
    404
    
    
    
    Other receivables
    
    
    
    
    
    
    890
    
    
    
    
    
    
    
    890
    
    
    
    890
    
    
    
    
    
    
    
    Accrued income
    
    
    
    
    
    
    1,450
    
    
    
    
    
    
    
    1,450
    
    
    
    1,450
    
    
    
    
    
    
    
    Cash and
cash equivalents
    
    
    2
    %
    
    
    20,751
    
    
    
    
    
    
    
    20,751
    
    
    
    20,751
    
    
    
    
    
    
    
    Amortised Cost:Trade payables
    
    
    
    
    
    
    (3,489
    )
    
    
    
    
    
    
    (3,489
    )
    
    
    (3,365
    )
    
    
    (124
    )
    
    
    Amounts due to clients
    
    
    
    
    
    
    (16,236
    )
    
    
    
    
    
    
    (16,236
    )
    
    
    (16,236
    )
    
    
    
    
    
    
    Accrued expenses
    
    
    
    
    
    
    (3,340
    )
    
    
    
    
    
    
    (3,340
    )
    
    
    (3,340
    )
    
    
    
    
    
    
    Bank loans
and overdrafts
    
    
    4
    %
    
    
    (3,371
    )
    
    
    
    
    
    
    (3,371
    )
    
    
    (3,371
    )
    
    
    
    
    
    
    Subordinated loan notes
    
    
    9
    %
    
    
    (494
    )
    
    
    
    
    
    
    (494
    )
    
    
    (116
    )
    
    
    (116
    )
    
    
    (262
    )Convertible loan notes
    
    
    12
    %
    
    
    (500
    )
    
    
    
    
    
    
    (500
    )
    
    
    
    
    
    
    
    
    
    
    (500
    )(936
    )
    
    
    
    
    
    
    (936
    )
    
    
    (338
    )
    
    
    164
    
    
    
    (762
    )
  Effective
    
    
    Recognised
    
    
    Contractual
    
    
    Totalinterest
    
    
    asset /
    
    
    interest
    
    
    Contractual
    
    
    6 monthsIn thousands of pounds
    
    rate
    
    
    (liability)
    
    
    payable
    
    
    cash flow
    
    
    orless
    
    
    6-12 months
    
    
    1-5 yearsLoans and receivables:Trade receivables
    
    
    
    
    
    
    3,579
    
    
    
    
    
    
    
    3,579
    
    
    
    3,526
    
    
    
    53
    
    
    
    Other receivables
    
    
    
    
    
    
    1,044
    
    
    
    
    
    
    
    1,044
    
    
    
    1,044
    
    
    
    
    
    
    
    Accrued income
    
    
    
    
    
    
    4,813
    
    
    
    
    
    
    
    4,813
    
    
    
    4,813
    
    
    
    
    
    
    
    Cash and
cash equivalents
    
    
    2
    %
    
    
    18,037
    
    
    
    
    
    
    
    18,037
    
    
    
    18,037
    
    
    
    
    
    
    
    Amortised Cost:Trade payables
    
    
    
    
    
    
    (4,707
    )
    
    
    
    
    
    
    (4,707
    )
    
    
    (4,583
    )
    
    
    (124
    )
    
    
    Amounts due to clients
    
    
    
    
    
    
    (16,179
    )
    
    
    
    
    
    
    (16,179
    )
    
    
    (16,179
    )
    
    
    
    
    
    
    Accruals and
other payables
    
    
    
    
    
    
    (5,378
    )
    
    
    
    
    
    
    (5,378
    )
    
    
    (5,378
    )
    
    
    
    
    
    
    Bank loans
and overdrafts
    
    
    4
    %
    
    
    (6,722
    )
    
    
    
    
    
    
    (6,722
    )
    
    
    (6,722
    )
    
    
    
    
    
    
    Subordinated loan notes
    
    
    9
    %
    
    
    (804
    )
    
    
    (72
    )
    
    
    (876
    )
    
    
    (170
    )
    
    
    (170
    )
    
    
    (536
    )Convertible loan notes
    
    
    8
    %
    
    
    (2,990
    )
    
    
    (60
    )
    
    
    (3,050
    )
    
    
    (3,050
    )
    
    
    
    
    
    
    (9,307
    )
    
    
    (132
    )
    
    
    (9,439
    )
    
    
    (8,662
    )
    
    
    (241
    )
    
    
    (536
    )
  4. Critical accounting estimates and judgements
  (a)
    
    Impairment of goodwillThe group is required to test, at least annually, whether goodwill has suffered any
impairment. The recoverable amount is determined based on value in use calculations. The use of
this method requires the estimation of future cash flows and the choice of a suitable discount rate
in order to calculate the present value of these cash flows.
Actual outcomes could vary. See note 16 for further details.
  24




---



##### 



(b)
    
    Post retirement benefitsThe determination of the defined benefit pension obligation depends upon the selection of
certain assumptions, which include the discount rate, inflation rate, mortality and expected
return on scheme assets. Differences arising from actual experience or future changes in
assumptions will be reflected in subsequent periods. See note 22 for further details.(c)
    
    Equity settled share based paymentsThe group recognises a charge in profit or loss for the fair value of equity settled share
based payments over the vesting period. Those instruments vesting in the period are
principally options over ordinary shares and the fair value of these at the balance sheet date
is estimated using the Black-Scholes model. This model is dependent upon several assumptions
such as the risk free interest rate and the expected life of the options. Actual experience
may differ from that estimated. Note 23 contains further details on these assumptions.(d)
    
    Direct profit margin for principal salesWhen the group acquires equipment for principal sales an estimate is made of the expected
sales value for the whole project, and from this a projected margin is calculated. This
projected margin is then used to estimate the actual margin to be recorded as individual items
of equipment are sold. The actual margin achieved may vary from this initial estimate. Any
incremental losses that are foreseeable at the year-end are provided for, non-foreseeable
losses and any incremental profits are taken to the income statement in the period in which
they occur.
 5. Segmental analysis
 2009NorthIn thousands of pounds
    
    Europe
    
    
    America
    
    
    Asia
    
    
    Corporate
    
    
    ConsolidatedRevenue
    
    
    15,165
    
    
    
    22,016
    
    
    
    4,809
    
    
    
    
    
    
    
    41,990Segment result
    
    
    321
    
    
    
    766
    
    
    
    499
    
    
    
    (2,169
    )
    
    
    (583
    )Other charges
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,036
    )
    
    
    (1,036
    )Exceptional items
    
    
    (620
    )
    
    
    4
    
    
    
    (223
    )
    
    
    (934
    )
    
    
    (1,773
    )Operating (loss) / profit
    
    
    (299
    )
    
    
    770
    
    
    
    276
    
    
    
    (4,139
    )
    
    
    (3,392
    )Finance (costs) / income  net
    
    
    (57
    )
    
    
    (590
    )
    
    
    18
    
    
    
    (202
    )
    
    
    (831
    )Convertible loan note
restructuring interest
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (414
    )
    
    
    (414
    )Share of loss of associate
    
    
    
    
    
    
    (28
    )
    
    
    
    
    
    
    
    
    
    
    (28
    )(Loss) / profit before
income tax
    
    
    (356
    )
    
    
    152
    
    
    
    294
    
    
    
    (4,755
    )
    
    
    (4,665
    )Income tax expense
    
    
    (6
    )
    
    
    (45
    )
    
    
    (119
    )
    
    
    
    
    
    
    (170
    )(Loss) / profit for the year
from continuing operations
    
    
    (362
    )
    
    
    107
    
    
    
    175
    
    
    
    (4,755
    )
    
    
    (4,835
    )Depreciation and amortisation
    
    
    290
    
    
    
    511
    
    
    
    240
    
    
    
    328
    
    
    
    1,369Impairment of goodwill
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Segment assets
    
    
    25,849
    
    
    
    15,077
    
    
    
    3,410
    
    
    
    17,022
    
    
    
    61,358Segment liabilities
    
    
    8,367
    
    
    
    7,991
    
    
    
    2,403
    
    
    
    16,154
    
    
    
    34,915
  25




---



##### 



Notes to the consolidated financial statements
  2008NorthIn thousands of pounds
    
    Europe
    
    
    America
    
    
    Asia
    
    
    Corporate
    
    
    ConsolidatedRevenue
    
    
    16,140
    
    
    
    16,380
    
    
    
    4,378
    
    
    
    
    
    
    
    36,898Segment result
    
    
    (1,764
    )
    
    
    241
    
    
    
    (94
    )
    
    
    (2,366
    )
    
    
    (3,983
    )Other charges
    
    
    (314
    )
    
    
    (373
    )
    
    
    (101
    )
    
    
    
    
    
    
    (788
    )Exceptional items
    
    
    (6,877
    )
    
    
    (12,074
    )
    
    
    (4,153
    )
    
    
    (654
    )
    
    
    (23,758
    )Operating loss
    
    
    (8,955
    )
    
    
    (12,206
    )
    
    
    (4,348
    )
    
    
    (3,020
    )
    
    
    (28,529
    )Finance (costs) / income  net
    
    
    (6
    )
    
    
    (209
    )
    
    
    4
    
    
    
    (118
    )
    
    
    (329
    )Share of loss of associate
    
    
    
    
    
    
    (27
    )
    
    
    
    
    
    
    
    
    
    
    (27
    )Loss before income tax
    
    
    (8,961
    )
    
    
    (12,442
    )
    
    
    (4,344
    )
    
    
    (3,138
    )
    
    
    (28,885
    )Income tax (expense) / credit
    
    
    (31
    )
    
    
    17
    
    
    
    (59
    )
    
    
    
    
    
    
    (73
    )Loss for the year
    
    
    (8,992
    )
    
    
    (12,425
    )
    
    
    (4,403
    )
    
    
    (3,138
    )
    
    
    (28,958
    )Depreciation and amortisation
    
    
    328
    
    
    
    367
    
    
    
    169
    
    
    
    168
    
    
    
    1,032Impairment of goodwill
    
    
    5,392
    
    
    
    10,311
    
    
    
    3,675
    
    
    
    
    
    
    
    19,378Segment assets
    
    
    49,012
    
    
    
    15,193
    
    
    
    4,617
    
    
    
    18
    
    
    
    68,840Segment liabilities
    
    
    16,442
    
    
    
    19,281
    
    
    
    5,379
    
    
    
    1,209
    
    
    
    42,311
  In thousands of pounds
    
    2009
    
    
    2008Entitys country of domicile  United Kingdom
    
    
    10,407
    
    
    
    10,493Foreign countries from which the Group derives revenueUSA
    
    
    22,016
    
    
    
    16,380Germany
    
    
    3,592
    
    
    
    3,361Other Europe
    
    
    1,166
    
    
    
    2,134Asia Pacific
    
    
    4,809
    
    
    
    4,53041,990
    
    
    
    36,898
   In thousands of pounds
    
    2009
    
    
    2008Located in the entitys country of domicile  United Kingdom
    
    
    15,362
    
    
    
    22,160Located in foreign countries in which the Group holds assetsUSA
    
    
    6,327
    
    
    
    2,706Germany
    
    
    9,052
    
    
    
    11,866Other Europe
    
    
    1,727
    
    
    
    274Asia Pacific
    
    
    893
    
    
    
    20133,361
    
    
    
    37,207
  26




---



##### 



6.
Exceptional items
 In thousands of pounds
    
    2009
    
    
    2008Reorganisation costs
    
    
    1,140
    
    
    
    3,726Costs associated to ZetaBid
    
    
    265
    
    
    
    Board change costs
    
    
    368
    
    
    
    Convertible loan note restructuring interest
    
    
    414
    
    
    
    Impairment of trade receivables
    
    
    
    
    
    
    354Impairment of inventory
    
    
    
    
    
    
    822Impairment of goodwill
    
    
    
    
    
    
    19,378Gain on translation of foreign currency
    
    
    
    
    
    
    (522
    )2,187
    
    
    
    23,758
   7. Other charges
 In thousands of pounds
    
    2009
    
    
    2008Equity settled share based payments
    
    
    336
    
    
    
    241Amortisation of customer relationships and brands (note 16)
    
    
    700
    
    
    
    5471,036
    
    
    
    788
 8. Operating loss
 In thousands of pounds
    
    2009
    
    
    2008Operating loss is stated after charging / (crediting):Direct profit categories:Sale of goods
    
    
    (1,742
    )
    
    
    (1,646
    )Rendering of services
    
    
    (23,532
    )
    
    
    (21,571
    )Included in cost of sales:Cost of inventories recognised as an expense
    
    
    4,138
    
    
    
    5,662Included in administrative expenses:Employee benefit expenses
    
    
    19,914
    
    
    
    20,718Depreciation of property plant and equipment
    
    
    434
    
    
    
    360Amortisation of intangible assets
    
    
    935
    
    
    
    672Rentals under operating leases
    
    
    2,106
    
    
    
    1,781Impairment of goodwill
    
    
    
    
    
    
    19,378Loss/(gain) on the translation of foreign currencies
    
    
    109
    
    
    
    (1,248
    )
   27




---



##### 



Notes to the consolidated financial statements
   Auditors remuneration:
    
    2009
    
    
    2008Fees payable to the companys auditor for the audit of parent company
and consolidated financial statements
    
    
    65
    
    
    
    75Fees payable to the companys auditor and its associates for other services:The audit of the companys subsidiaries pursuant to legislation
    
    
    167
    
    
    
    137Tax services
    
    
    68
    
    
    
    128Other services
    
    
    35
    
    
    
    33335
    
    
    
    373
 9. Employee benefit expenses
 In thousands of pounds
    
    2009
    
    
    2008Wages and salaries
    
    
    17,554
    
    
    
    18,295Social security costs
    
    
    1,449
    
    
    
    1,476Pension costs  defined benefit plan (note 22)
    
    
    273
    
    
    
    338Pension costs  defined contribution plans
    
    
    302
    
    
    
    368Share options granted to directors and employees (note 23)
    
    
    336
    
    
    
    24119,914
    
    
    
    20,718
  2009
    
    
    2008Number
    
    
    NumberSales
    
    
    92
    
    
    
    115Operations
    
    
    216
    
    
    
    264Central services
    
    
    19
    
    
    
    25327
    
    
    
    404
  10. Directors Emoluments
 In thousands of pounds
    
    2009
    
    
    2008Emoluments
    
    
    502
    
    
    
    500Termination Benefits
    
    
    173
    
    
    
    Employers national insurance contributions
    
    
    39
    
    
    
    55Share based payments (note 23)
    
    
    69
    
    
    
    36Pension contributions  defined contribution
    
    
    28
    
    
    
    33811
    
    
    
    624
     28




---



##### 



In thousands of pounds
    
    2009
    
    
    2008Short-term employee benefits
    
    
    1,813
    
    
    
    1,588Post-employment benefits
    
    
    173
    
    
    
    79Share based payments (note 23)
    
    
    151
    
    
    
    992,137
    
    
    
    1,766
  11. Finance income and costs
 In thousands of pounds
    
    2009
    
    
    2008Finance income:Interest income on short-term bank deposits
    
    
    141
    
    
    
    369Finance costs:Bank borrowings
    
    
    (358
    )
    
    
    (491
    )Convertible loan notes
    
    
    (614
    )
    
    
    (207
    )Convertible loan note restructuring interest (note 6)
    
    
    (414
    )
    
    
    (1,245
    )
    
    
    (329
    )
 12. Income tax expense
 In thousands of pounds
    
    2009
    
    
    2008Current tax:Adjustments to prior year tax charges
    
    
    
    
    
    
    19Overseas corporation tax on profits in the year
    
    
    170
    
    
    
    54170
    
    
    
    73
 In thousands of pounds
    
    2009
    
    
    2008Loss before income tax
    
    
    (4,665
    )
    
    
    (28,885
    )Tax at the UK corporation tax rate of 28%
    
    
    (1,306
    )
    
    
    (8,088
    )Effect of lower income tax rate of other countries
    
    
    (70
    )
    
    
    (70
    )Adjustment in respect of current income tax of previous years
    
    
    
    
    
    
    19Deferred tax not recognised
    
    
    262
    
    
    
    (197
    )Tax losses not utilised
    
    
    1,111
    
    
    
    2,659Share based payments expense not deductible
    
    
    94
    
    
    
    76Expenditure not allowable for income tax purposes
    
    
    79
    
    
    
    221Goodwill amortisation and impairment
    
    
    
    
    
    
    5,453170
    
    
    
    73
   29




---



##### 



Notes to the consolidated financial statements
 13. Discontinued operations
   In thousands of pounds
    
    2009
    
    
    2008Revenue
    
    
    
    
    
    
    229Expenses
    
    
    
    
    
    
    (335
    )Loss before income tax from discontinued operation
    
    
    
    
    
    
    (106
    )Tax
    
    
    
    
    
    
    Loss after income tax from discontinued operation
    
    
    
    
    
    
    (106
    )Loss on disposal of discontinued operation
    
    
    
    
    
    
    (1,197
    )Loss from discontinued operation
    
    
    
    
    
    
    (1,303
    )
 14. Earnings per share
 2009
    
    
    2008Loss from continuing operations attributable to owners of the parent
(thousands of pounds)
    
    
    (4,916
    )
    
    
    (29,020
    )Weighted average number of ordinary shares in issue (thousands)
    
    
    628,415
    
    
    
    437,834Basic / diluted loss per share (pence per share)
    
    
    (0.8p
    )
    
    
    (6.6p
    )
  2009
    
    
    2008Loss attributable to owners of the parent (thousands of pounds)
    
    
    (4,916
    )
    
    
    (30,323
    )Weighted average number of ordinary shares in issue (thousands)
    
    
    628,415
    
    
    
    437,834Basic / diluted loss per share (pence per share)
    
    
    (0.8p
    )
    
    
    (6.9p
    )
  2009
    
    
    2008Loss for the year before exceptionals and other charges (thousands of pounds)
    
    
    (1,612
    )
    
    
    (4,412
    )Weighted average number of ordinary shares in issue (thousands)
    
    
    628,415
    
    
    
    437,834Adjusted basic/ diluted loss per share (pence per share)
    
    
    (0.3p
    )
    
    
    (1.0p
    )
    30




---



##### 



15. Property, plant and equipment
 Furniture,Freehold
    
    
    
    
    
    
    fittings andIn thousands of pounds
    
    Buildings
    
    
    Vehicles
    
    
    equipment
    
    
    TotalCost:At 1 January 2008
    
    
    815
    
    
    
    432
    
    
    
    1,873
    
    
    
    3,120Exchange differences
    
    
    269
    
    
    
    44
    
    
    
    190
    
    
    
    503Additions
    
    
    36
    
    
    
    104
    
    
    
    206
    
    
    
    346Additions through acquisition
    
    
    52
    
    
    
    15
    
    
    
    242
    
    
    
    309Disposals
    
    
    
    
    
    
    (112
    )
    
    
    (44
    )
    
    
    (156
    )At 1 January 2009
    
    
    1,172
    
    
    
    483
    
    
    
    2,467
    
    
    
    4,122Exchange differences
    
    
    (77
    )
    
    
    (12
    )
    
    
    (276
    )
    
    
    (365
    )Additions
    
    
    
    
    
    
    59
    
    
    
    35
    
    
    
    94Disposals
    
    
    (23
    )
    
    
    (39
    )
    
    
    (208
    )
    
    
    (270
    )At 31 December 2009
    
    
    1,072
    
    
    
    491
    
    
    
    2,018
    
    
    
    3,581Accumulated depreciation:At 1 January 2008
    
    
    290
    
    
    
    220
    
    
    
    1,452
    
    
    
    1,962Exchange differences
    
    
    93
    
    
    
    99
    
    
    
    239
    
    
    
    431Charge for the year
    
    
    87
    
    
    
    47
    
    
    
    226
    
    
    
    360Disposals
    
    
    
    
    
    
    (27
    )
    
    
    (33
    )
    
    
    (60
    )At 1 January 2009
    
    
    470
    
    
    
    339
    
    
    
    1,884
    
    
    
    2,693Exchange differences
    
    
    (50
    )
    
    
    (5
    )
    
    
    (338
    )
    
    
    (393
    )Charge for the year
    
    
    83
    
    
    
    40
    
    
    
    311
    
    
    
    434Disposals
    
    
    (13
    )
    
    
    (11
    )
    
    
    (155
    )
    
    
    (179
    )At 31 December 2009
    
    
    490
    
    
    
    363
    
    
    
    1,702
    
    
    
    2,555Net book value:At 31 December 2009
    
    
    582
    
    
    
    128
    
    
    
    316
    
    
    
    1,026At 1 January 2009
    
    
    702
    
    
    
    144
    
    
    
    583
    
    
    
    1,429At 1 January 2008
    
    
    525
    
    
    
    212
    
    
    
    421
    
    
    
    1,158
  31




---



##### 



Notes to the consolidated financial statements
 16. Intangible assets
 Software andCustomer
    
    
    
    
    
    
    systemsIn thousands of pounds
    
    Goodwill
    
    
    relationships
    
    
    Brands
    
    
    development
    
    
    TotalCost:At 1 January 2008
    
    
    24,900
    
    
    
    
    
    
    
    
    
    
    
    2,158
    
    
    
    27,058Exchange differences
    
    
    8,508
    
    
    
    877
    
    
    
    283
    
    
    
    554
    
    
    
    10,222Additions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    362
    
    
    
    362Additions through acquisition
    
    
    18,450
    
    
    
    2,369
    
    
    
    768
    
    
    
    
    
    
    
    21,587Disposals
    
    
    (1,147
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,147
    )At 1 January 2009
    
    
    50,711
    
    
    
    3,246
    
    
    
    1,051
    
    
    
    3,074
    
    
    
    58,082Exchange differences
    
    
    (4,225
    )
    
    
    (295
    )
    
    
    (96
    )
    
    
    (393
    )
    
    
    (5,009
    )Additions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    394
    
    
    
    394Disposals
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12
    )
    
    
    (12
    )At 31 December 2009
    
    
    46,486
    
    
    
    2,951
    
    
    
    955
    
    
    
    3,063
    
    
    
    53,455Accumulated amortisation:At 1 January 2008
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,992
    
    
    
    1,992Exchange differences
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    290
    
    
    
    290Charge for the year
    
    
    
    
    
    
    413
    
    
    
    134
    
    
    
    125
    
    
    
    672Impairment of goodwill
    
    
    19,378
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19,378At 1 January 2009
    
    
    19,378
    
    
    
    413
    
    
    
    134
    
    
    
    2,407
    
    
    
    22,332Exchange differences
    
    
    (1,848
    )
    
    
    67
    
    
    
    (57
    )
    
    
    (297
    )
    
    
    (2,135
    )Charge for the year
    
    
    
    
    
    
    602
    
    
    
    98
    
    
    
    235
    
    
    
    935Disposals
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12
    )
    
    
    (12
    )At 31 December 2009
    
    
    17,530
    
    
    
    1,082
    
    
    
    175
    
    
    
    2,333
    
    
    
    21,120Net book value:At 31 December 2009
    
    
    28,956
    
    
    
    1,869
    
    
    
    780
    
    
    
    730
    
    
    
    32,335At 1 January 2009
    
    
    31,333
    
    
    
    2,833
    
    
    
    917
    
    
    
    667
    
    
    
    35,750At 1 January 2008
    
    
    24,900
    
    
    
    
    
    
    
    
    
    
    
    166
    
    
    
    25,066
  In thousands of pounds
    
    2009
    
    
    2008Europe
    
    
    8,390
    
    
    
    8,717North America
    
    
    15,109
    
    
    
    16,673Asia
    
    
    5,457
    
    
    
    5,94328,956
    
    
    
    31,333
  
    
    Cash flows for 2010 were forecast based on the budget for 2010;
    
    Cash flows for 2011-12 were using forecast direct profit growth rates at 7.5%, and expense
growth rates of 3.75%.
    
    Cash flows beyond 2012 are extrapolated using a long-term growth rate of 2.25%;
    
    Central overheads are borne by the CGUs where deemed appropriate by management and allocated
based on managements best estimates;
    
    Cash flows were discounted using a rate of 10%.
  32




---



##### 



17. Investment in Associate
 In thousands of pounds
    
    2009
    
    
    2008Investment in ZetaBid associate
    
    
    28
    
    
    
    55Share of loss for the year of associate
    
    
    (28
    )
    
    
    (27
    )
    
    
    
    28
   2009%Country of
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Profit/
    
    
    interestName
    
    incorporation
    
    
    Assets
    
    
    Liabilities
    
    
    Revenue
    
    
    (Loss)
    
    
    heldZetaBid Holdings LLC
    
    USA
    
    
    
    
    
    
    
    
    
    
    
    150
    
    
    
    (28
    )
    
    
    0
    %
 2008%Country of
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Profit/
    
    
    interestName
    
    incorporation
    
    
    Assets
    
    
    Liabilities
    
    
    Revenue
    
    
    (Loss)
    
    
    heldZetaBid Holdings LLC
    
    USA
    
    
    
    28
    
    
    
    
    
    
    
    34
    
    
    
    (27
    )
    
    
    25
    %
  18. Trade and other receivables
 In thousands of pounds
    
    2009
    
    
    2008Trade receivables
    
    
    3,403
    
    
    
    3,579Prepayments and accrued income
    
    
    2,047
    
    
    
    5,580Other taxes
    
    
    309
    
    
    
    650Other receivables
    
    
    890
    
    
    
    1,0446,649
    
    
    
    10,853
  In thousands of pounds
    
    2009
    
    
    2008Trade receivables
    
    
    3,564
    
    
    
    4,256Provision for doubtful debts
    
    
    (161
    )
    
    
    (677
    )3,403
    
    
    
    3,579
  33




---



##### 



Notes to the consolidated financial statements
 4-6 weeks
 In thousands of pounds
    
    2009
    
    
    2008Up to three months
    
    
    2,334
    
    
    
    3,301Three to six months
    
    
    665
    
    
    
    225Greater than six months
    
    
    404
    
    
    
    533,403
    
    
    
    3,579
  In thousands of pounds
    
    2009
    
    
    2008Opening balance
    
    
    (677
    )
    
    
    (314
    )Increase in provision
    
    
    (97
    )
    
    
    (402
    )Utilised against bad debt written off
    
    
    613
    
    
    
    39(161
    )
    
    
    (677
    )
 19. Cash and cash equivalents
 In thousands of pounds
    
    2009
    
    
    2008Own cash on hand and at bank
    
    
    2,672
    
    
    
    3,411Short-term bank deposits
    
    
    12,060
    
    
    
    9,739Monies held under guarantee
    
    
    6,019
    
    
    
    4,88720,751
    
    
    
    18,037
 20. Trade and other payables
 In thousands of pounds
    
    2009
    
    
    2008CurrentTrade payables
    
    
    3,489
    
    
    
    4,707Amounts due to clients
    
    
    16,236
    
    
    
    16,179Social security and other taxes
    
    
    2,546
    
    
    
    1,539Accrued expenses
    
    
    3,340
    
    
    
    5,37825,611
    
    
    
    27,803
 In thousands of pounds
    
    2009
    
    
    2008Non-currentSocial security and other taxes
    
    
    156
    
    
    
    704Provisions
    
    
    202
    
    
    
    390358
    
    
    
    1,094
  34




---



##### 



21. Borrowings
 In thousands of pounds
    
    2009
    
    
    2008CurrentBank loans and overdrafts
    
    
    2,084
    
    
    
    6,722Convertible loan notes
    
    
    
    
    
    
    2,990Subordinated loan notes
    
    
    233
    
    
    
    2582,317
    
    
    
    9,970
 In thousands of pounds
    
    2009
    
    
    2008Non-currentBank loans
    
    
    1,287
    
    
    
    Convertible loan notes
    
    
    500
    
    
    
    Subordinated loan notes
    
    
    261
    
    
    
    5462,048
    
    
    
    546
  In thousands of pounds
    
    2009
    
    
    2008Floating rate:Expiring within one year
    
    
    2,084
    
    
    
    6,722Fixed rate:Expiring within one year
    
    
    233
    
    
    
    3,248Expiring beyond one year
    
    
    2,048
    
    
    
    5464,365
    
    
    
    10,516
       22. Retirement benefit obligations
     35




---



##### 



Notes to the consolidated financial statements
    In thousands of pounds
    
    2009
    
    
    2008Balance sheet obligations for:Pension benefits
    
    
    4,581
    
    
    
    2,898Income statement charge for:Pension benefits (note 9)
    
    
    273
    
    
    
    338
 In thousands of pounds
    
    2009
    
    
    2008Present value of funded obligations
    
    
    13,828
    
    
    
    11,071Fair value of plan assets
    
    
    (9,247
    )
    
    
    (8,173
    )Liability in the balance sheet
    
    
    4,581
    
    
    
    2,898
  In thousands of pounds
    
    2009
    
    
    2008Beginning of year
    
    
    11,071
    
    
    
    12,696Current service cost
    
    
    11
    
    
    
    17Interest cost
    
    
    696
    
    
    
    730Actuarial loss / (gain) on plan liabilities
    
    
    2,454
    
    
    
    (2,122
    )Benefits paid
    
    
    (404
    )
    
    
    (250
    )End of year
    
    
    13,828
    
    
    
    11,071
  In thousands of pounds
    
    2009
    
    
    2008Fair value of scheme assets at start of year
    
    
    8,173
    
    
    
    9,177Expected return on scheme assets
    
    
    579
    
    
    
    554Employer contributions
    
    
    740
    
    
    
    529Benefits paid
    
    
    (404
    )
    
    
    (250
    )Scheme administration costs borne by the group
    
    
    (145
    )
    
    
    (145
    )Actuarial gain / (loss) on scheme assets
    
    
    304
    
    
    
    (1,692
    )Fair value of scheme assets at end of year
    
    
    9,247
    
    
    
    8,173
   In thousands of pounds
    
    2009
    
    
    2008Current service cost
    
    
    11
    
    
    
    17Interest on obligation
    
    
    696
    
    
    
    730Expected return on scheme assets
    
    
    (579
    )
    
    
    (554
    )Scheme administration costs borne by the group
    
    
    145
    
    
    
    145Total, included in staff costs (note 9)
    
    
    273
    
    
    
    338
  36




---



##### 



In thousands of pounds
    
    2009

    
    
    2009
    
    
    2008
    
    
    2008Percentage
    
    
    
    
    
    
    PercentageEquity instruments
    
    
    4,759
    
    
    
    51
    %
    
    
    3,781
    
    
    
    46
    %Debt instruments
    
    
    4,419
    
    
    
    48
    %
    
    
    4,368
    
    
    
    54
    %Other
    
    
    69
    
    
    
    1
    %
    
    
    24
    
    
    
    0
    %Pension assets
    
    
    9,247
    
    
    
    100
    %
    
    
    8,173
    
    
    
    100
    %
  In thousands of pounds
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005At 31 DecemberPresent value of defined benefit obligation
    
    
    13,828
    
    
    
    11,071
    
    
    
    12,696
    
    
    
    12,147
    
    
    
    13,098Fair value of plan assets
    
    
    (9,247
    )
    
    
    (8,173
    )
    
    
    (9,200
    )
    
    
    (8,573
    )
    
    
    (7,774
    )Deficit
    
    
    4,581
    
    
    
    2,898
    
    
    
    3,496
    
    
    
    3,574
    
    
    
    5,324Experience adjustments on plan liabilities
    
    
    (2,454
    )
    
    
    2,122
    
    
    
    (243
    )
    
    
    1,412
    
    
    
    (1,086
    )Experience adjustments on plan assets
    
    
    304
    
    
    
    (1,692
    )
    
    
    22
    
    
    
    149
    
    
    
    715
  2009
    
    
    2008Percentage
    
    
    PercentageDiscount rate
    
    
    5.7
    %
    
    
    6.4
    %Expected return on scheme assets
    
    
    6.5
    %
    
    
    7.0
    %Rate of increase in salaries
    
    
    
    
    
    
    Price inflation
    
    
    3.6
    %
    
    
    2.8
    %Pension increases:Pensions accrued before 6 April 1997
    
    
    
    
    
    
    Pensions accrued after 6 April 1997
    
    
    3.6
    %
    
    
    2.8
    %
    2009
    
    
    2008Male
    
    
    88.0
    
    
    
    87.9Female
    
    
    90.6
    
    
    
    90.5
  2009
    
    
    2008Male
    
    
    91.0
    
    
    
    90.8Female
    
    
    93.6
    
    
    
    93.4
  37




---



##### 



Notes to the consolidated financial statements
 23. Share capital and premium
 Number of shares in thousands
    
    
    In thousands of poundsRedeemable
    
    
    
    
    
    
    Ordinary
    
    
    Deferred
    
    
    ShareOrdinary 5p
    
    

deferred shares 4p
    
    
    Ordinary 1p
    
    
    share capital
    
    
    share capital
    
    
    premium01-Jan-08 Opening balance
    
    
    264,998
    
    
    
    
    
    
    
    
    
    
    
    13,250
    
    
    
    
    
    
    
    9,57825-Feb-08 Issue of share capital to finance
the acquisition of DoveBid Inc.
    
    
    185,000
    
    
    
    
    
    
    
    
    
    
    
    9,250
    
    
    
    
    
    
    
    9,25025-Feb-08 Proceeds from shares issued
    
    
    21,660
    
    
    
    
    
    
    
    
    
    
    
    1,083
    
    
    
    
    
    
    
    1,08325-Feb-08 Less: cost of share issue
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,039
    )01-Jan-09 Opening balance
    
    
    471,658
    
    
    
    
    
    
    
    
    
    
    
    23,583
    
    
    
    
    
    
    
    18,87202-Jan-09 Sub-division of ordinary shares
    
    
    (471,658
    )
    
    
    471,658
    
    
    
    471,658
    
    
    
    (18,866
    )
    
    
    18,866
    
    
    
    25-Jun-09 Cancellation of own shares held
    
    
    
    
    
    
    (4,239
    )
    
    
    (4,239
    )
    
    
    (42
    )
    
    
    (170
    )
    
    
    11-Sep-09 Proceeds from shares issued
    
    
    
    
    
    
    
    
    
    
    265,723
    
    
    
    2,657
    
    
    
    
    
    
    
    2,12611-Sep-09 Conversion of loan notes
    
    
    
    
    
    
    
    
    
    
    241,288
    
    
    
    2,413
    
    
    
    
    
    
    
    1,92311-Sep-09 Cancellation of redeemable
deferred shares held
    
    
    
    
    
    
    (467,419
    )
    
    
    
    
    
    
    
    
    
    
    (18,696
    )
    
    
    11-Sep-09 Less: cost of share issue
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (426
    )31-Dec-09 Closing balance
    
    
    
    
    
    
    
    
    
    
    974,430
    
    
    
    9,745
    
    
    
    
    
    
    
    22,495
     In thousands of pounds
    
    2009
    
    
    2008Authorised ordinary shares of 1p each 1,613,367 thousand
    
    
    16,134
    
    
    
    Authorised redeemable deferred shares of 4p each 471,658,157 thousand
    
    
    
    
    
    
    Authorised ordinary shares of 5p each 700,000 thousand
    
    
    
    
    
    
    35,000Equity ordinary shares to be issued of 1p each (2008: 5p each) 5,420 thousand
    
    
    542
    
    
    
    542
  38




---



##### 



Share based payments
  OptionsWeightedaverageexercise price
    
    
    Number ofPence per
    
    
    sharesshare
    
    
    ThousandsOutstanding at 1 January 2008
    
    
    22p
    
    
    
    27,564Granted
    
    
    9p
    
    
    
    7,300Lapsed or forfeited
    
    
    22p
    
    
    
    (2,781
    )Outstanding at 1 January 2009
    
    
    19p
    
    
    
    32,083Granted
    
    
    2p
    
    
    
    30,033Lapsed or forfeited
    
    
    22p
    
    
    
    (6,949
    )Outstanding at 31 December 2009
    
    
    10p
    
    
    
    55,167Exercisable at 31 December 2009
    
    
    10p
    
    
    
    25,934Exercisable at 31 December 2008
    
    
    23p
    
    
    
    23,619
  At 31 December 2009:Weighted average remaining contractual life
    
    
    10.9At 31 December 2008:Weighted average remaining contractual life
    
    
    6.5
  39




---



##### 



Notes to the consolidated financial statements
   Exercise price
    
    
    Vesting
    
    
    Shares in thousandsDate of grant
    
    in pence
    
    
    condition
    
    
    2009
    
    
    200828-Sep-09
    
    
    2.00
    
    
    
    1
    
    
    
    29,233
    
    
    
    28-Sep-09
    
    
    2.42
    
    
    
    2
    
    
    
    800
    
    
    
    05-Dec-08
    
    
    5.00
    
    
    
    2
    
    
    
    100
    
    
    
    10027-Jun-08
    
    
    10.00
    
    
    
    2
    
    
    
    975
    
    
    
    2,20022-May-08
    
    
    10.50
    
    
    
    2
    
    
    
    1,150
    
    
    
    2,75030-Jan-08
    
    
    11.75
    
    
    
    2
    
    
    
    500
    
    
    
    60025-Jul-07
    
    
    5.00
    
    
    
    2
    
    
    
    5,467
    
    
    
    5,46725-Jul-07
    
    
    18.00
    
    
    
    2
    
    
    
    1,000
    
    
    
    1,00025-Jul-07
    
    
    17.00
    
    
    
    2
    
    
    
    600
    
    
    
    60019-Jul-07
    
    
    18.75
    
    
    
    2
    
    
    
    1,035
    
    
    
    1,67520-Nov-06
    
    
    54.45
    
    
    
    
    
    
    
    16
    
    
    
    3120-Nov-06
    
    
    27.00
    
    
    
    
    
    
    
    16
    
    
    
    3104-Mar-06
    
    
    12.80
    
    
    
    
    
    
    
    3,044
    
    
    
    3,17601-Apr-05
    
    
    10.00
    
    
    
    
    
    
    
    3,000
    
    
    
    3,00031-Dec-04
    
    
    12.78
    
    
    
    
    
    
    
    1,322
    
    
    
    2,48501-May-03
    
    
    15.00
    
    
    
    
    
    
    
    639
    
    
    
    63901-May-03
    
    
    14.99
    
    
    
    
    
    
    
    107
    
    
    
    10901-Jan-03
    
    
    54.45
    
    
    
    
    
    
    
    145
    
    
    
    14501-Jan-03
    
    
    27.22
    
    
    
    
    
    
    
    145
    
    
    
    14531-Oct-02
    
    
    54.45
    
    
    
    
    
    
    
    554
    
    
    
    91731-Oct-02
    
    
    27.22
    
    
    
    
    
    
    
    546
    
    
    
    1,02619-Oct-02
    
    
    44.73
    
    
    
    
    
    
    
    659
    
    
    
    93830-Aug-02
    
    
    44.73
    
    
    
    
    
    
    
    2,984
    
    
    
    2,98401-Mar-02
    
    
    44.73
    
    
    
    
    
    
    
    159
    
    
    
    15901-Oct-01
    
    
    22.36
    
    
    
    
    
    
    
    365
    
    
    
    97601-Oct-01
    
    
    12.78
    
    
    
    
    
    
    
    289
    
    
    
    28901-Sep-01
    
    
    12.78
    
    
    
    
    
    
    
    27
    
    
    
    2712-Dec-00
    
    
    141.62
    
    
    
    
    
    
    
    128
    
    
    
    14201-Sep-00
    
    
    141.62
    
    
    
    
    
    
    
    39
    
    
    
    3901-Aug-00
    
    
    141.62
    
    
    
    
    
    
    
    14
    
    
    
    26011-Jul-00
    
    
    44.09
    
    
    
    
    
    
    
    7
    
    
    
    7112-May-00
    
    
    44.09
    
    
    
    
    
    
    
    33
    
    
    
    3302-Mar-00
    
    
    44.73
    
    
    
    2
    
    
    
    69
    
    
    
    6955,167
    
    
    
    32,083
 Vesting Conditions:
     40




---



##### 



2009
    
    
    2008Valuation method
    
    Black-Scholes
    
    
    Black-ScholesShare price at the date of grant
    
    
    2p    10p
    
    
    
    3p    10pExpected volatility
    
    
    58.3%  38.5
    %
    
    
    58.3%  38.5
    %Expected option life at grant date (years)
    
    
    3
    
    
    
    3Risk-free interest rate
    
    
    1.02%  4.46
    %
    
    
    1.02%  4.46
    %Weighted average fair value per option at the grant date
    
    
    5p
    
    
    
    5p
  24. Own shares held in trust
 In thousands of poundsAt 1 January 2008
    
    
    (1,042
    )Transfer of shares
    
    
    68At 1 January 2009
    
    
    (974
    )Cancellation of own Shares held
    
    
    888Transfer of shares
    
    
    86At 31 December 2009
    
    
    
  25. Other reserves
 Foreign
    
    
    ShareAcquisition
    
    
    currency
    
    
    optionsIn thousands of pounds
    
    reserve
    
    
    reserve
    
    
    reserve
    
    
    TotalAt 1 January 2008
    
    
    47,649
    
    
    
    (807
    )
    
    
    1,149
    
    
    
    47,991Currency translation differences
    
    
    
    
    
    
    8,043
    
    
    
    
    
    
    
    8,043Share based payments
    
    
    
    
    
    
    
    
    
    
    173
    
    
    
    173At 1 January 2009
    
    
    47,649
    
    
    
    7,236
    
    
    
    1,322
    
    
    
    56,207Currency translation differences
    
    
    
    
    
    
    (2,130
    )
    
    
    
    
    
    
    (2,130Share based payments
    
    
    
    
    
    
    
    
    
    
    250
    
    
    
    250At 31 December 2009
    
    
    47,649
    
    
    
    5,106
    
    
    
    1,572
    
    
    
    54,327
  41




---



##### 



Notes to the consolidated financial statements
  26. Accumulated Losses
 In thousands of poundsAt 1 January 2008
    
    
    (41,989
    )Actuarial gain on defined benefit pension scheme
    
    
    430Loss for the year
    
    
    (30,323
    )At 31 December 2008
    
    
    (71,882
    )Actuarial loss on defined benefit pension scheme
    
    
    (2,150
    )Loss for the year
    
    
    (4,916
    )Cancellation of shares
    
    
    (888
    )At 31 December 2009
    
    
    (79,836
    )
 27. Capital redemption reserves
 In thousands of poundsAt 1 January 2008 and 2009
    
    
    Cancellation of own shares held
    
    
    18,908At 31 December 2009
    
    
    18,908
 28. Operating lease arrangements
 Land andIn thousands of pounds
    
    buildings
    
    
    Vehicles
    
    
    Other
    
    
    TotalAmounts falling due:Within one year
    
    
    946
    
    
    
    118
    
    
    
    25
    
    
    
    1,089More than one but less than five years
    
    
    1,338
    
    
    
    203
    
    
    
    10
    
    
    
    1,551More than five years
    
    
    55
    
    
    
    
    
    
    
    
    
    
    
    55As at 31 December 2009
    
    
    2,339
    
    
    
    321
    
    
    
    35
    
    
    
    2,695
 Land andIn thousands of pounds
    
    buildings
    
    
    Vehicles
    
    
    Other
    
    
    TotalAmounts falling due:Within one year
    
    
    383
    
    
    
    117
    
    
    
    203
    
    
    
    703More than one but less than five years
    
    
    1,713
    
    
    
    435
    
    
    
    271
    
    
    
    2,419More than five years
    
    
    1,618
    
    
    
    
    
    
    
    364
    
    
    
    1,982As at 31 December 2008
    
    
    3,714
    
    
    
    552
    
    
    
    838
    
    
    
    5,104
  29. Contingent liability
  30. Event after the balance sheet date
   42




---



##### 



31. Significant investments
  Country of
    
    
    Ownership/Company name
    
    incorporation
    
    
    Voting Control
    
    Principal activity1 AssetTRADE.com, Inc.
    
    USA
    
    100%
    
    Holding company2 DoveBid (S) Pte. Ltd.
    
    SINGAPORE
    
    100%
    
    Asset sales and services3 DoveBid Trading France Sarl
    
    FRANCE
    
    100%
    
    Asset sales and services4 DoveBid UK Limited
    
    UK
    
    100%
    
    Asset sales and services5 DoveBid Valuation Consultants, Inc
    
    USA
    
    100%
    
    Asset sales and services6 DoveBid, Inc.
    
    USA
    
    100%
    
    Asset sales and services7 GoIndustry (Austria) GmbH
    
    AUSTRIA
    
    100%
    
    Asset sales and services8 GoIndustry (Canada) Limited
    
    CANADA
    
    100%
    
    Asset sales and services9 GoIndustry (UK) Limited
    
    UK
    
    100%
    
    Asset sales and services10 GoIndustry AG
    
    GERMANY
    
    100%
    
    Asset sales and services11 GoIndustry Deutschland GmbH
    
    GERMANY
    
    100%
    
    Asset sales and services12 GoIndustry Operations Limited
    
    UK
    
    100%
    
    Asset sales and services13 GoIndustry Operations, Inc.
    
    USA
    
    100%
    
    Holding company14 GoIndustry Quippo Valuers & Auctioneers Pvt. Ltd.
    
    INDIA
    
    50%
    
    Asset sales and services15 GoIndustry Trading Limited
    
    UK
    
    100%
    
    Asset sales and services16 GoIndustry USA, Inc.
    
    USA
    
    100%
    
    Asset sales and services17 GoIndustry-DoveBid (Asia) Limited
    
    HONG KONG
    
    100%
    
    Asset sales and services18 GoIndustry-DoveBid (Australia) Pty. Ltd.
    
    AUSTRALIA
    
    100%
    
    Asset sales and services19 GoIndustry-DoveBid (Hong Kong) Limited
    
    HONG KONG
    
    100%
    
    Asset sales and services20 GoIndustry-DoveBid (Malaysia) Sdn. Bhd.
    
    MALAYSIA
    
    70%
    
    Asset sales and services21 GoIndustry-DoveBid (Shanghai) Co. Limited
    
    CHINA
    
    100%
    
    Asset sales and services22 GoIndustry-Dovebid (Taiwan) Ltd
    
    TAIWAN
    
    100%
    
    Asset sales and services23 GoIndustry-DoveBid (Thailand) Limited
    
    THAILAND
    
    100%
    
    Asset sales and services24 GoIndustry DoveBid Japan K.K.
    
    JAPAN
    
    100%
    
    Asset sales and services25 GoIndustry-DoveBid Korea Co. Ltd.
    
    KOREA
    
    100%
    
    Asset sales and services26 GoIndustry-DoveBid Mexico SA de CV
    
    MEXICO
    
    100%
    
    Asset sales and services27 GoIndustry-DoveBid Philippines, Inc.
    
    PHILIPPINES
    
    100%
    
    Asset sales and services28 GoIndustry-DoveBid Valuation (Thailand) Limited
    
    THAILAND
    
    100%
    
    Asset sales and services
  43




---



##### 



Company statement of financial position
  In thousands of pounds
    
    Note
    
    
    2009
    
    
    2008Non-current assetsIntangible assets
    
    
    3
    
    
    
    
    
    
    
    5Investments in subsidiaries
    
    
    4
    
    
    
    22,873
    
    
    
    31,651Investment in associate
    
    
    5
    
    
    
    
    
    
    
    68Loans to subsidiary undertakings
    
    
    
    
    
    
    8,975
    
    
    
    15,98631,848
    
    
    
    47,710Current assetsTrade and other receivables
    
    
    6
    
    
    
    81
    
    
    
    30Cash and cash equivalents
    
    
    7
    
    
    
    3,073
    
    
    
    4,3533,154
    
    
    
    4,383Total assets
    
    
    
    
    
    
    35,002
    
    
    
    52,093Current liabilitiesTrade and other payables
    
    
    8
    
    
    
    814
    
    
    
    552Borrowings
    
    
    9
    
    
    
    
    
    
    
    4,970814
    
    
    
    5,522Non-current liabilitiesBorrowings
    
    
    9
    
    
    
    500
    
    
    
    500
    
    
    
    Total liabilities
    
    
    
    
    
    
    1,314
    
    
    
    5,522Net assets
    
    
    
    
    
    
    33,688
    
    
    
    46,571Capital and reserves attributable to equity holders of the
companyCalled-up equity share capital
    
    
    10
    
    
    
    9,745
    
    
    
    23,583Share premium
    
    
    10
    
    
    
    22,495
    
    
    
    18,872Shares to be issued
    
    
    10
    
    
    
    542
    
    
    
    542Own shares held in trust
    
    
    11
    
    
    
    
    
    
    
    (974
    )Capital redemption reserve
    
    
    12
    
    
    
    18,908
    
    
    
    Other reserves
    
    
    13
    
    
    
    20,196
    
    
    
    19,946Accumulated losses
    
    
    14
    
    
    
    (38,198
    )
    
    
    (15,398
    )Total equity
    
    
    
    
    
    
    33,688
    
    
    
    46,571
   Jack Reinelt
Chief Executive Officer
    
    David Horne
Chief Financial Officer
  44




---



##### 



Company statement of changes in equity
 Capital
    
    
    
    
    
    
    Ownredem-
    
    
    Shares
    
    
    shares
    
    
    Acquis-
    
    
    Share
    
    
    Accum-Share
    
    
    Share
    
    
    ption
    
    
    to be
    
    
    held in
    
    
    ition
    
    
    options
    
    
    ulatedIn thousands of pounds
    
    capital
    
    
    premium
    
    
    reserve
    
    
    issued
    
    
    trust
    
    
    reserve
    
    
    reserve
    
    
    losses
    
    
    TOTALAt 1 January 2008
    
    
    13,250
    
    
    
    9,578
    
    
    
    
    
    
    
    
    
    
    
    (1,042
    )
    
    
    18,624
    
    
    
    944
    
    
    
    (1,138
    )
    
    
    40,216Comprehensive income:Loss for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (14,260
    )
    
    
    (14,260
    )Transactions with owners:Issue of share capital to finance the acquisition
of DoveBid, Inc.
    
    
    9,250
    
    
    
    9,250
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,500Shares issued as consideration for the
acquisition of DoveBid, Inc.
    
    
    1,083
    
    
    
    1,083
    
    
    
    
    
    
    
    542
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,708Less: cost of share issue
    
    
    
    
    
    
    (1,039
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,039
    )Share based payments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    378
    
    
    
    
    
    
    
    378Transfer of shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    68
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    68Total transaction with owners:
    
    
    10,333
    
    
    
    9,294
    
    
    
    
    
    
    
    542
    
    
    
    68
    
    
    
    
    
    
    
    378
    
    
    
    
    
    
    
    20,615At 1 January 2009
    
    
    23,583
    
    
    
    18,872
    
    
    
    
    
    
    
    542
    
    
    
    (974
    )
    
    
    18,624
    
    
    
    1,322
    
    
    
    (15,398
    )
    
    
    46,571Comprehensive income:Loss for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (21,912
    )
    
    
    (21,912
    )Transactions with owners:Cancellation of shares
    
    
    (18,908
    )
    
    
    
    
    
    
    18,908
    
    
    
    
    
    
    
    888
    
    
    
    
    
    
    
    
    
    
    
    (888
    )
    
    
    New shares issued
    
    
    2,657
    
    
    
    2,126
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,783Conversion of loan notes
    
    
    2,413
    
    
    
    1,923
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,336Less: cost of share issue
    
    
    
    
    
    
    (426
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (426
    )Share based payments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    250
    
    
    
    
    
    
    
    250Transfer of shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    86
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    86Total transaction with owners:
    
    
    (13,838
    )
    
    
    3,623
    
    
    
    18,908
    
    
    
    
    
    
    
    974
    
    
    
    
    
    
    
    250
    
    
    
    (888
    )
    
    
    9,029At 31 December 2009
    
    
    9,745
    
    
    
    22,495
    
    
    
    18,908
    
    
    
    542
    
    
    
    
    
    
    
    18,624
    
    
    
    1,572
    
    
    
    (38,198
    )
    
    
    33,688
   45




---



##### 



Company statement of cash flows
  In thousands of pounds
    
    2009
    
    
    2008Cash flows from operating activitiesLoss before income tax
    
    
    (21,912
    )
    
    
    (14,260
    )Adjustments for:Share based payments
    
    
    130
    
    
    
    125Net interest expense / (income)
    
    
    713
    
    
    
    (323
    )Amortisation
    
    
    5
    
    
    
    3Impairment of investments
    
    
    11,564
    
    
    
    14,912Changes in working capital:Decrease / (Increase) in trade and other receivables
    
    
    4,448
    
    
    
    (7,587
    )(Decrease) / Increase in amounts due from trade payables
    
    
    262
    
    
    
    64Operating cash flows before interest and taxes
    
    
    (4,790
    )
    
    
    (7,066
    )Interest paid
    
    
    (757
    )
    
    
    (267
    )Interest received
    
    
    314
    
    
    
    590Net cash used in operating activities
    
    
    (5,233
    )
    
    
    (6,743
    )Cash flows from investing activitiesInvestment in subsidiary undertakings
    
    
    
    
    
    
    (12,803
    )Investment in associate
    
    
    
    
    
    
    (68
    )Net cash used in investing activities
    
    
    
    
    
    
    (12,871
    )Cash flows from financing activitiesProceeds on issue of shares
    
    
    4,087
    
    
    
    17,461(Decrease) / Increase in bank loans, loan notes and overdrafts
    
    
    (134
    )
    
    
    1,980Net cash from financing activities
    
    
    3,953
    
    
    
    19,441Net decrease in cash and cash equivalents
    
    
    (1,280
    )
    
    
    (173
    )Cash and cash equivalents at beginning of year
    
    
    4,353
    
    
    
    4,526Cash and cash equivalents at end of year
    
    
    3,073
    
    
    
    4,353
   46




---



##### 



Notes to the company financial statements
  1. Summary of significant accounting policies
 Basis of preparation
   Loss for the year
  Investments
   2. Financial risk management
  Market risk
     Credit risk
  Liquidity risk
   47




---



##### 



Notes to the company financial statements
   2009Recog-
    
    
    Contra-
    
    
    TotalEffective
    
    
    nised
    
    
    ctual
    
    
    Contra-interest
    
    
    asset /
    
    
    interest
    
    
    ctual
    
    
    6 months
    
    
    6-12
    
    
    1-5In thousands of pounds
    
    rate
    
    
    (liability)
    
    
    payable
    
    
    cash flow
    
    
    or less
    
    
    months
    
    
    yearsLoans to subsidiary
undertakings
    
    
    
    
    
    
    8,975
    
    
    
    
    
    
    
    8,975
    
    
    
    
    
    
    
    
    
    
    
    8,975Bank deposits
    
    
    2
    %
    
    
    3,073
    
    
    
    
    
    
    
    3,073
    
    
    
    3,073
    
    
    
    
    
    
    
    Amortised cost:Trade payables
    
    
    
    
    
    
    (118
    )
    
    
    
    
    
    
    (118
    )
    
    
    (118
    )
    
    
    
    
    
    
    Amounts
payable to subsidiary undertakings
    
    
    
    
    
    
    (285
    )
    
    
    
    
    
    
    (285
    )
    
    
    (285
    )
    
    
    
    
    
    
    Accrued expenses
    
    
    
    
    
    
    (371
    )
    
    
    
    
    
    
    (371
    )
    
    
    (371
    )
    
    
    
    
    
    
    Convertible loan notes
    
    
    12
    %
    
    
    (500
    )
    
    
    
    
    
    
    (500
    )
    
    
    
    
    
    
    
    
    
    
    (500
    )10,774
    
    
    
    
    
    
    
    10,774
    
    
    
    2,299
    
    
    
    
    
    
    
    8,475
 2008Effective
    
    
    Recognised
    
    
    Contractual
    
    
    Totalinterest
    
    
    asset /
    
    
    interest
    
    
    Contractual
    
    
    6 months
    
    
    6-12In thousands of pounds
    
    rate
    
    
    (liability)
    
    
    payable
    
    
    cash flow
    
    
    or less
    
    
    months
    
    
    1-5 yearsLoans to subsidiary
undertakings
    
    
    
    
    
    
    15,986
    
    
    
    
    
    
    
    15,986
    
    
    
    
    
    
    
    
    
    
    
    15,986Bank deposits
    
    
    6
    %
    
    
    4,353
    
    
    
    
    
    
    
    4,353
    
    
    
    3,662
    
    
    
    
    
    
    
    691Amortised cost:Trade payables
    
    
    
    
    
    
    (100
    )
    
    
    
    
    
    
    (100
    )
    
    
    (100
    )
    
    
    
    
    
    
    Amounts payable to
subsidiary undertakings
    
    
    
    
    
    
    (220
    )
    
    
    
    
    
    
    (220
    )
    
    
    (220
    )
    
    
    
    
    
    
    Accrued expenses
    
    
    
    
    
    
    (207
    )
    
    
    
    
    
    
    (207
    )
    
    
    (207
    )
    
    
    
    
    
    
    Borrowings
    
    
    4
    %
    
    
    (1,980
    )
    
    
    
    
    
    
    (1,980
    )
    
    
    (1,980
    )
    
    
    
    
    
    
    Convertible loan notes
    
    
    8
    %
    
    
    (2,990
    )
    
    
    (60
    )
    
    
    (3,050
    )
    
    
    (3,050
    )
    
    
    
    
    
    
    14,842
    
    
    
    (60
    )
    
    
    14,782
    
    
    
    (1,895
    )
    
    
    
    
    
    
    16,677
  48




---



##### 



3. Intangible Assets
 Software andsystemsIn thousands of pounds
    
    developmentCost:At 1 January 2008
    
    
    10Additions
    
    
    At 1 January 2009
    
    
    10Additions
    
    
    At 31 December 2009
    
    
    10Accumulated depreciation:At 1 January 2008
    
    
    2Charge for the year
    
    
    3At 1 January 2009
    
    
    5Charge for the year
    
    
    5At 31 December 2009
    
    
    10Net book value:At 31 December 2009
    
    
    At 1 January 2009
    
    
    5At 1 January 2008
    
    
    8
 4. Investment in subsidiaries
 In thousands of poundsAt 1 January 2008
    
    
    30,731Acquisition of DoveBid, Inc.
    
    
    15,511Impairment of investments
    
    
    (14,912
    )Capital contribution to subsidiary undertaking
    
    
    321At 1 January 2009
    
    
    31,651Impairment of investments
    
    
    (11,496
    )Capital contribution to subsidiary undertaking
    
    
    206Additional investment in subsidiary
    
    
    2,512At 31 December 2009
    
    
    22,873
   5. Investment in associate
 In thousands of pounds
    
    2009
    
    
    2008Investment in ZetaBid associate
    
    
    
    
    
    
    68
  49




---



##### 



Notes to the company financial statements
  6. Trade and other receivables
 In thousands of pounds
    
    2009
    
    
    2008CurrentTaxes Receivable
    
    
    68
    
    
    
    Prepayments
    
    
    13
    
    
    
    3081
    
    
    
    30
 7. Cash and cash equivalents
 In thousands of pounds
    
    2009
    
    
    2008Own cash on hand and at bank
    
    
    100
    
    
    
    Short-term bank deposits
    
    
    2,973
    
    
    
    4,3533,073
    
    
    
    4,353
 8. Trade and other payables
 In thousands of pounds
    
    2009
    
    
    2008Trade payables
    
    
    118
    
    
    
    100Amounts payable to subsidiary undertakings
    
    
    285
    
    
    
    220Social security and other taxes
    
    
    40
    
    
    
    25Accrued expenses
    
    
    371
    
    
    
    207814
    
    
    
    552
 9. Borrowings
 In thousands of pounds
    
    2009
    
    
    2008CurrentBank loans and overdrafts
    
    
    
    
    
    
    1,980Convertible loan notes
    
    
    
    
    
    
    2,990
    
    
    
    4,970
 In thousands of pounds
    
    2009
    
    
    2008Non-currentConvertible loan notes
    
    
    500
    
    
    
    
   50




---



##### 



10. Share capital and premium
 Number of shares in thousands
    
    
    In thousands of poundsRedeemabledeferred
    
    
    
    
    
    
    Ordinary
    
    
    Deferred
    
    
    ShareOrdinary 5p
    
    
    shares
    
    
    Ordinary 1p
    
    
    Share Capital
    
    
    Share Capital
    
    
    premium01-Jan-08 Opening balance
    
    
    
    
    264,998
    
    
    
    
    
    
    
    
    
    
    
    13,250
    
    
    
    
    
    
    
    9,57825-Feb-08 Issue of share capital to finance the acquisition
of DoveBid, Inc.
    
    
    
    
    185,000
    
    
    
    
    
    
    
    
    
    
    
    9,250
    
    
    
    
    
    
    
    9,25025-Feb-08 Proceeds from shares issued
    
    
    
    
    21,660
    
    
    
    
    
    
    
    
    
    
    
    1,083
    
    
    
    
    
    
    
    1,08325-Feb-08 Less: cost of share issue
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,039
    )01-Jan-09 Opening balance
    
    
    
    
    471,658
    
    
    
    
    
    
    
    
    
    
    
    23,583
    
    
    
    
    
    
    
    18,87202-Jan-09 Sub-division of ordinary shares
    
    
    
    
    (471,658
    )
    
    
    471,658
    
    
    
    471,658
    
    
    
    (18,866
    )
    
    
    18,866
    
    
    
    25-Jun-09 Cancellation of own shares held
    
    
    
    
    
    
    
    
    (4,239
    )
    
    
    (4,239
    )
    
    
    (42
    )
    
    
    (170
    )
    
    
    11-Sep-09 Proceeds from shares issued
    
    
    
    
    
    
    
    
    
    
    
    
    265,723
    
    
    
    2,657
    
    
    
    
    
    
    
    2,12611-Sep-09 Conversion of loan notes
    
    
    
    
    
    
    
    
    
    
    
    
    241,288
    
    
    
    2,413
    
    
    
    
    
    
    
    1,92311-Sep-09 Cancellation of redeemable deferred
shares held
    
    
    
    
    
    
    
    
    (467,419
    )
    
    
    
    
    
    
    
    
    
    
    (18,696
    )
    
    
    11-Sep-09 Less: cost of share issue
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (426
    )31-Dec-09 Closing balance
    
    
    
    
    
    
    
    
    
    
    
    
    974,430
    
    
    
    9,745
    
    
    
    
    
    
    
    22,495
  In thousands of pounds
    
    2009
    
    
    2008Authorised ordinary shares of 1p each 1,613,367 thousand
    
    
    16,134
    
    
    
    Authorised redeemable deferred shares of 4p each 471,658,157
    
    
    
    
    
    
    Authorised ordinary shares of 5p each 700,000 thousand
    
    
    
    
    
    
    35,000Equity ordinary shares to be issued of 1p each (2008: 5p each) 5,420 thousand
    
    
    542
    
    
    
    542
    11. Own shares held in trust
 In thousands of poundsAt 1 January 2008
    
    
    (1,042
    )Transfer of shares
    
    
    68At 1 January 2009
    
    
    (974
    )Cancellation of own Shares held
    
    
    888Transfer of shares
    
    
    86At 31 December 2009
    
    
    
   51




---



##### 



Notes to the company financial statements
  12. Capital redemption reserves
 In thousands of poundsAt 1 January 2008 and 2009
    
    
    Cancellation of own shares held
    
    
    18,908At 31 December 2009
    
    
    18,908
 13. Other reserves
 ShareAcquisition
    
    
    optionsIn thousands of pounds
    
    reserve
    
    
    reserve
    
    
    TotalAt 1 January 2008
    
    
    18,624
    
    
    
    944
    
    
    
    19,568Share based payments
    
    
    
    
    
    
    57
    
    
    
    57Capital contribution to subsidiary undertaking
    
    
    
    
    
    
    321
    
    
    
    321At 31 December 2008
    
    
    18,624
    
    
    
    1,322
    
    
    
    19,946Share based payments
    
    
    
    
    
    
    44
    
    
    
    44Capital contribution to subsidiary undertaking
    
    
    
    
    
    
    206
    
    
    
    206At 31 December 2009
    
    
    18,624
    
    
    
    1,572
    
    
    
    20,196
  14. Accumulated losses
 In thousands of poundsAt 1 January 2008
    
    
    (1,138
    )Loss for the year
    
    
    (14,260
    )At 1 January 2009
    
    
    (15,398
    )Loss for the year
    
    
    (21,912
    )Cancellation of shares
    
    
    (888
    )At 31 December 2009
    
    
    (38,198
    )
 15. Related party transactions
   In thousands of pounds
    
    2009
    
    
    2008Short-term employee benefits
    
    
    410
    
    
    
    1,588Post-employment benefits
    
    
    173
    
    
    
    79Share based payments
    
    
    44
    
    
    
    99627
    
    
    
    1,766
  52




---



##### 



Independent auditors report
   Respective responsibilities of directors and auditors
      Basis of audit opinion
   Opinion
  
    
    the group financial statements give a true and fair view, in accordance with IFRSs as
adopted by the European Union, of the state of the groups affairs as at 31 December 2008 and
of its loss for the year then ended;
    
    the parent company financial statements give a true and fair view, in accordance with
IFRSs as adopted by the European Union as applied in accordance with the provisions of the
Companies Act 1985, of the state of the parent companys affairs as at 31 December 2008;
    
    the financial statements have been properly prepared in accordance with the Companies
Act 1985; and
    
    the information given in the Directors Report is consistent with the financial
statements.
 /s/ BAKER TILLY UK AUDIT LLP
 
  12     GoIndustry-DoveBid plc annual report and accounts 2008
    
    www.go-dove.com




---



##### 



Consolidated income statement
  2008
    
    
    2007Before
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Beforeexcept-
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    except-ional
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    ionalitems
    
    
    Except-
    
    
    
    
    
    
    
    
    
    
    items
    
    
    Except-and
    
    
    ional
    
    
    Other
    
    
    
    
    
    
    and
    
    
    ional
    
    
    Otherother
    
    
    items
    
    
    charges
    
    
    
    
    
    
    other
    
    
    items
    
    
    chargesIn thousands of pounds
    
    Note
    
    
    charges
    
    
    (note 6)
    
    
    (note 7)
    
    
    Total
    
    
    charges
    
    
    (note 6)
    
    
    (note 7)
    
    
    TotalRevenue
    
    
    5
    
    
    
    36,898
    
    
    
    
    
    
    
    
    
    
    
    36,898
    
    
    
    29,105
    
    
    
    
    
    
    
    
    
    
    
    29,105Cost of sales
    
    
    
    
    
    
    (13,681
    )
    
    
    
    
    
    
    
    
    
    
    (13,681
    )
    
    
    (11,333
    )
    
    
    
    
    
    
    
    
    
    
    (11,333
    )Direct profit
    
    
    
    
    
    
    23,217
    
    
    
    
    
    
    
    
    
    
    
    23,217
    
    
    
    17,772
    
    
    
    
    
    
    
    
    
    
    
    17,772Administrative expenses
    
    
    
    
    
    
    (27,200
    )
    
    
    (23,758
    )
    
    
    (788
    )
    
    
    (51,746
    )
    
    
    (16,749
    )
    
    
    (369
    )
    
    
    (866
    )
    
    
    (17,984
    )Operating (loss)/profit
    
    
    8
    
    
    
    (3,983
    )
    
    
    (23,758
    )
    
    
    (788
    )
    
    
    (28,529
    )
    
    
    1,023
    
    
    
    (369
    )
    
    
    (866
    )
    
    
    (212
    )Finance costsInterest income
    
    
    11
    
    
    
    369
    
    
    
    
    
    
    
    
    
    
    
    369
    
    
    
    405
    
    
    
    
    
    
    
    
    
    
    
    405Finance costs
    
    
    11
    
    
    
    (698
    )
    
    
    
    
    
    
    
    
    
    
    (698
    )
    
    
    (776
    )
    
    
    
    
    
    
    
    
    
    
    (776
    )Share of loss of associate
    
    
    18
    
    
    
    (27
    )
    
    
    
    
    
    
    
    
    
    
    (27
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (Loss)/profit before
income tax
    
    
    
    
    
    
    (4,339
    )
    
    
    (23,758
    )
    
    
    (788
    )
    
    
    (28,885
    )
    
    
    652
    
    
    
    (369
    )
    
    
    (866
    )
    
    
    (583
    )Income tax expense
    
    
    12
    
    
    
    (73
    )
    
    
    
    
    
    
    
    
    
    
    (73
    )
    
    
    (233
    )
    
    
    
    
    
    
    
    
    
    
    (233
    )(Loss)/profit for the year
from continuing operations
    
    
    
    
    
    
    (4,412
    )
    
    
    (23,758
    )
    
    
    (788
    )
    
    
    (28,958
    )
    
    
    419
    
    
    
    (369
    )
    
    
    (866
    )
    
    
    (816
    )Loss for the year from
discontinued operations
    
    
    13
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,303
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Loss for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (30,261
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (816
    )Attributable to:Equity holders of the company
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (30,323
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (795
    )Minority interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    62
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (21
    )(30,261
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (816
    )Loss per share for loss from continuing operations attributable to equity holders of the company during
the year(expressed in pence per share)Basic
    
    
    14
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6.6p
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.3p
    )Diluted
    
    
    14
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6.6p
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.3p
    )Loss per share for loss attributable to equity holders of the company during the year(expressed in pence per
share)Basic
    
    
    14
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6.9p
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.3p
    )Diluted
    
    
    14
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6.9p
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.3p
    )
  www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2008     13




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##### 



Consolidated statement of recognised income and expense
  In thousands of pounds
    
    Note
    
    
    2008
    
    
    2007(restated)Exchange gains/(losses) on translation of foreign subsidiaries
    
    
    26
    
    
    
    8,043
    
    
    
    (67
    )Actuarial gains/(losses) on defined benefit pension scheme
    
    
    23
    
    
    
    430
    
    
    
    (226
    )Net income/(expense) recognised directly in equity
    
    
    
    
    
    
    8,473
    
    
    
    (293
    )Loss for the year
    
    
    
    
    
    
    (30,261
    )
    
    
    (816
    )Total recognised income and expense for the year
    
    
    
    
    
    
    (21,788
    )
    
    
    (1,109
    )Attributable to:Equity holders of the company
    
    
    
    
    
    
    (21,850
    )
    
    
    (1,088
    )Minority interest
    
    
    
    
    
    
    62
    
    
    
    (21
    )(21,788
    )
    
    
    (1,109
    )
  14     GoIndustry-DoveBid plc annual report and accounts 2008
    
    www.go-dove.com




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##### 



Consolidated balance sheet
  In thousands of pounds
    
    Note
    
    
    2008
    
    
    2007(restated)Non-current assetsProperty, plant and equipment
    
    
    16
    
    
    
    1,429
    
    
    
    1,158Intangible assets
    
    
    17
    
    
    
    35,750
    
    
    
    25,066Investment in associate
    
    
    18
    
    
    
    28
    
    
    
    37,207
    
    
    
    26,224Current assetsInventories
    
    
    
    
    
    
    2,743
    
    
    
    888Trade and other receivables
    
    
    19
    
    
    
    10,853
    
    
    
    10,002Cash and cash equivalents
    
    
    20
    
    
    
    18,037
    
    
    
    14,79731,633
    
    
    
    25,687Total assets
    
    
    
    
    
    
    68,840
    
    
    
    51,911Current liabilitiesTrade and other payables
    
    
    21
    
    
    
    27,803
    
    
    
    14,438Borrowings
    
    
    22
    
    
    
    6,722
    
    
    
    3,092Convertible loan notes
    
    
    22
    
    
    
    2,990
    
    
    
    Subordinated loan notes
    
    
    22
    
    
    
    258
    
    
    
    37,773
    
    
    
    17,530Non-current liabilitiesTrade and other payables
    
    
    21
    
    
    
    1,094
    
    
    
    Convertible loan notes
    
    
    22
    
    
    
    
    
    
    
    2,990Subordinated loan notes
    
    
    22
    
    
    
    546
    
    
    
    Retirement benefit obligations
    
    
    23
    
    
    
    2,898
    
    
    
    3,5194,538
    
    
    
    6,509Total liabilities
    
    
    
    
    
    
    42,311
    
    
    
    24,039Net assets
    
    
    
    
    
    
    26,529
    
    
    
    27,872EquityOrdinary shares
    
    
    24
    
    
    
    23,583
    
    
    
    13,250Share premium
    
    
    24
    
    
    
    18,872
    
    
    
    9,578Shares to be issued
    
    
    24
    
    
    
    542
    
    
    
    Own shares held
    
    
    25
    
    
    
    (974
    )
    
    
    (1,042
    )Other reserves
    
    
    26
    
    
    
    56,207
    
    
    
    47,991Accumulated losses
    
    
    27
    
    
    
    (71,882
    )
    
    
    (41,989
    )Capital and reserves attributable to equity holders of the company
    
    
    
    
    
    
    26,348
    
    
    
    27,788Minority interests
    
    
    
    
    
    
    181
    
    
    
    84Total equity
    
    
    
    
    
    
    26,529
    
    
    
    27,872
   Neville Davis
    
    David HorneNon-executive Chairman
    
    Chief Financial Officer
 www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2008     15




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##### 



Consolidated cash flow statement
  In thousands of pounds
    
    2008
    
    
    2007(restated)Cash flows from operating activitiesLoss before tax
    
    
    (28,885
    )
    
    
    (583
    )Adjustments for:Depreciation
    
    
    360
    
    
    
    240Amortisation
    
    
    672
    
    
    
    25Goodwill impairment charge
    
    
    19,378
    
    
    
    Net interest expense
    
    
    329
    
    
    
    371Share based payments
    
    
    241
    
    
    
    866Net retirement benefit cost
    
    
    176
    
    
    
    126Share of loss of associate
    
    
    27
    
    
    
    Changes in working capital:(Increase)/decrease in inventories
    
    
    (1,855
    )
    
    
    195Decrease/(increase) in accounts receivable
    
    
    1,785
    
    
    
    (773
    )Increase in accounts payable
    
    
    1,209
    
    
    
    563Decrease in provisions
    
    
    (367
    )
    
    
    (548
    )Operating cash flows before interest and taxes
    
    
    (6,930
    )
    
    
    482Interest paid
    
    
    (698
    )
    
    
    (776
    )Income and corporation taxes paid
    
    
    (108
    )
    
    
    (170
    )Interest received
    
    
    369
    
    
    
    405Net cash used in operating activities
    
    
    (7,367
    )
    
    
    (59
    )Cash flows from investing activitiesPurchases of property, plant and equipment
    
    
    (471
    )
    
    
    (432
    )Purchases of intangible assets
    
    
    (1,786
    )
    
    
    (153
    )Loan granted to associate
    
    
    (55
    )
    
    
    Disposal of subsidiary
    
    
    (129
    )
    
    
    Acquisition of subsidiary net of cash acquired (note 15)
    
    
    (7,044
    )
    
    
    Net cash used in investing activities
    
    
    (9,485
    )
    
    
    (585
    )Cash flows from financing activitiesProceeds on issue of shares
    
    
    17,461
    
    
    
    6,577Increase/(decrease) in bank loans and overdrafts
    
    
    3,379
    
    
    
    (846
    )Repayment of mortgage
    
    
    
    
    
    
    (63
    )Subsidiary company dividend paid to minority shareholder
    
    
    
    
    
    
    (71
    )Net cash from financing activities
    
    
    20,840
    
    
    
    5,597Net increase in cash and cash equivalents
    
    
    3,988
    
    
    
    4,953Cash and cash equivalents at beginning of year
    
    
    14,797
    
    
    
    9,911Effect of foreign exchange rate changes
    
    
    (748
    )
    
    
    (67
    )Cash and cash equivalents at end of year
    
    
    18,037
    
    
    
    14,797
  16     GoIndustry-DoveBid plc annual report and accounts 2008
    
    www.go-dove.com




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##### 



Notes to the consolidated financial statements
  1. General information
    2. Summary of significant accounting policies
  Basis of preparation
      (a)
    
    Standards, amendments and interpretations effective in 2008
 
    
    IFRIC 11, IFRS 2  Group and treasury share transactions. This interpretation
provides further clarification on the treatment of certain share based payment transactions.
It identifies whether a transaction is equity or cash settled where the shares involved are
transferred by a third party as well as giving guidance on the treatment in the accounts of a
subsidiary where its parent directly makes share based payments to the employees of the
subsidiary.
 
    
    IFRIC 14, IAS 19  The limit on a defined benefit asset, minimum funding
requirements and their interaction. This interpretation provides guidance on assessing the
limit in IAS 19 on the amount of surplus that can be recognised as an asset. As the group has
a pension liability, the adoption of this standard does not have any impact on the
consolidated financial statements.
 (b)
    
    Standards, amendments and interpretations effective in 2008 but not relevant
  
    
    IFRIC 12, Service concession arrangements.
 (c)
    
    Standards, amendments and interpretations to existing standards that are not yet effective and
have not been early adopted by the group
  
    
    IAS 1 (revised), Presentation of financial statements (effective from 1 January
2009 and endorsed by the EU in December 2008). The revised standard requires non-owner
changes in equity to be presented separately from owner changes in equity, with all non-owner
changes in equity to be shown in a performance statement.
 
    
    IAS 1 (amendment), Presentation of financial statements (effective from 1 January
2009, subject to endorsement by the EU). The amendment clarifies the disclosure of
held-for-trading assets and liabilities between current and non-current assets and
liabilities.
 www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2008     17




---



##### 



Notes to the consolidated financial statements
  
    
    IAS 19 (amendment), Employee benefits (effective from 1 January 2009, subject to
endorsement by the EU). The amendment makes a number of changes to accounting for defined
benefit pension schemes.
    
    IAS 23 (amendment), Borrowing costs (effective from 1 January 2009, subject to
endorsement by the EU). The amendment to the standard requires an entity to capitalise
borrowing costs directly attributable to the acquisition, construction or production of a
qualifying asset (one that takes a significant period of time to get ready for use or sale)
as part of the cost of the asset. The option of immediately expensing those borrowing costs
will be removed.
    
    IAS 36 (amendment), Impairment of assets (effective from 1 January 2009, subject to
endorsement by the EU). The amendment clarifies the disclosure requirements for impairment
tests.
    
    IAS 38 (amendment), Intangible assets (effective from 1 January 2009, subject to
endorsement by the EU). The amendment clarifies the treatment of prepayments for intangible
assets and deletes the wording that states that there is rarely, if ever support for use of
a method that results in a lower rate of amortisation than the straight-line method.
    
    IAS 39 (amendment), Financial instruments: Recognition and measurement (effective
from 1 January 2009, subject to endorsement by the EU). The amendment makes a number of
changes to accounting for financial instruments.
    
    IFRS 2 (amendment), Share-based payment (effective from 1 January 2009 and endorsed
by the EU in December 2008). This amendment clarifies the accounting treatment of vesting
conditions and cancellations.
    
    IFRS 3 (amendment), Business combinations (effective from 1 July 2009, subject to
endorsement by the EU), and consequential amendments to IAS 27, Consolidated and separate
financial statements, IAS 28, Investments in associates, and IAS 31 Interests in Joint
Ventures. The amendment to IFRS 3 revises the application of the acquisition method of
accounting for business combinations and should be applied prospectively from 1 January 2010.
    
    IFRS 5 (amendment), Non-current assets held-for-sale and discontinued operations
(and consequential amendments to IFRS 1 First-time adoption) (effective from 1 July 2009,
subject to endorsement by the EU). This amendment clarifies that all of a subsidiarys
assets and liabilities are classified as held-for-sale if a partial disposal sale plan
results in loss of control.
    
    IFRS 8, Operating segments (effective from 1 January 2009 and endorsed by the EU in
December 2007). IFRS 8 replaces IAS 14, Segment reporting and requires the group to take a
management approach, under which segment information is presented on the same basis as that
used for internal reporting purposes.
 (d)
    
    Interpretations to existing standards that are not yet effective and not relevant to the group:
  
    
    IFRS 1, (amendment), First time adoption of IFRS and IAS 27, Consolidated and
separate financial statements.
    
    IAS 16 (amendment), Property, plant and equipment (and consequential amendment to
IAS 7, Statement of cash flows).
    
    IAS 20 (amendment), Accounting for government grants and disclosure of government
assistance.
    
    IAS 27 (amendment) and IAS 27 (revised), Consolidated and separate financial
statements.
    
    IAS 28 (amendment), Investment in associates (and consequential amendments to IAS
32, Financial instruments: Recognition and measurement and IFRS 7, Financial instruments:
Disclosures).
    
    IAS 29 (amendment), Financial reporting in hyperinflationary economies.
    
    IAS 31 (amendment), Interests in joint ventures (and consequential amendments to
IAS 32, Financial instruments: Recognition and measurement and IFRS 7, Financial
instruments: Disclosures).
    
    IAS 32 (amendment), Financial instruments: Presentation and IAS 1 (amendment)
Presentation of financial statements  Puttable financial instruments and obligations
arising on liquidation.
    
    IAS 40 (amendment), Investment property (and consequent amendments to IAS 16,
Property, plant and equipment).
    
    IAS 41 (amendment), Agriculture.
    
    IFRIC 13, Customer loyalty programmes.
    
    IFRIC 15, Agreements for construction of real estates.
 18     GoIndustry-DoveBid plc annual report and accounts 2008
    
    www.go-dove.com




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##### 




    
    IFRIC 16, Hedges of a net investment in a foreign operation.
 
    
    IFRIC 17, Transfers of non-cash assets from owners.
 
    
    IFRIC 18, Transfers of assets from customers.
 Going concern
    
    
    The Barclays Bank plc facility has been reduced from £2 million to £1 million and
will be repaid before the end of 2009.
    
    The PNC Bank facilities have been reorganised into a new $2 million working capital
facility; the existing working capital facility of $3 million has been converted to a term
loan with a five year amortisation with an initial period of 3 years; and the principal deal
facility has been reduced from $7 million to $5 million.
    
    The £3 million convertible loan notes maturing in May 2009 have been redeemed, and £5
million of new convertible loan notes have been issued.
    Consolidation
      www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2008     19




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##### 



Notes to the consolidated financial statements
  Segment reporting
  Foreign currency translation
 (a)
    
    Functional and presentation currency
  (b)
    
    Transactions and balances
  (c)
    
    Group companies
  (i)
    
    assets and liabilities for each balance sheet presented are translated at the closing rate
at the date of that balance sheet;(ii)
    
    income and expenses for each income statement are translated at weighted average monthly
exchange rates (unless this average is not a reasonable approximation of the cumulative effect of
the rates prevailing on the transaction dates, in which case income and expenses are translated at
the rate on the dates of the transactions); and all resulting exchange differences are recognised
as a separate component of equity.
   Revenue recognition
     20     GoIndustry-DoveBid plc annual report and accounts 2008
    
    www.go-dove.com




---



##### 



Employee benefits
 (a)
    
    Pension obligations
     (b)
    
    Share-based compensation
   Leases
  Current and deferred income tax
     www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2008     21




---



##### 



Notes to the consolidated financial statements
   Property, plant and equipment
  
 Buildings
    
    Period of leaseVehicles
    
    4 yearsFurniture, fittings and equipment
    
    3 years
 
 Intangible assets
 (a)
    
    Goodwill
    (b)
    
    Customer relationships
  (c)
    
    Brands
  (d)
    
    Other intangible assets
   Inventories
  22     GoIndustry-DoveBid plc annual report and accounts 2008
    
    www.go-dove.com




---



##### 



Financial assets
  Trade and other receivables
   Cash and cash equivalents
   Trade payables
  Borrowings
   Provisions
   Share capital
    www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2008     23




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##### 



Notes to the consolidated financial statements
  3. Financial risk management
  Market risk
 (a)
    
    Foreign exchange risk
   (b)
    
    Cash flow and interest rate risk
   Credit risk
  Trade receivables management
  Capital risk management
   Liquidity risk
  24     GoIndustry-DoveBid plc annual report and accounts 2008
    
    www.go-dove.com




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##### 



2008Effective
    
    
    Recognised
    
    
    Contractual
    
    
    Totalinterest
    
    
    asset/
    
    
    interest
    
    
    Contractual
    
    
    6 months
    
    
    6-12
    
    
    1-5In thousands of pounds
    
    rate
    
    
    (liability)
    
    
    payable
    
    
    cash flow
    
    
    or less
    
    
    months
    
    
    yearsLoans and receivables:Trade receivables
    
    
    
    
    
    
    3,579
    
    
    
    
    
    
    
    3,579
    
    
    
    3,579
    
    
    
    
    
    
    
    Other receivables
    
    
    
    
    
    
    1,694
    
    
    
    
    
    
    
    1,694
    
    
    
    1,694
    
    
    
    
    
    
    
    Accrued income
    
    
    
    
    
    
    4,812
    
    
    
    
    
    
    
    4,812
    
    
    
    4,812
    
    
    
    
    
    
    
    Bank deposits
    
    
    2
    %
    
    
    18,037
    
    
    
    
    
    
    
    18,037
    
    
    
    18,037
    
    
    
    
    
    
    
    Trade payables
    
    
    
    
    
    
    (4,707
    )
    
    
    
    
    
    
    (4,707
    )
    
    
    (4,583
    )
    
    
    (124
    )
    
    
    Amounts due to clients
    
    
    
    
    
    
    (16,179
    )
    
    
    
    
    
    
    (16,179
    )
    
    
    (16,179
    )
    
    
    
    
    
    
    Accrued expenses
    
    
    
    
    
    
    (5,378
    )
    
    
    
    
    
    
    (5,378
    )
    
    
    (5,378
    )
    
    
    
    
    
    
    Bank loans and overdrafts
    
    
    4
    %
    
    
    (6,722
    )
    
    
    
    
    
    
    (6,722
    )
    
    
    (6,722
    )
    
    
    
    
    
    
    Subordinated loan notes
    
    
    9
    %
    
    
    (804
    )
    
    
    (72
    )
    
    
    (876
    )
    
    
    (170
    )
    
    
    (170
    )
    
    
    (536
    )Convertible loan notes
    
    
    8
    %
    
    
    (2,990
    )
    
    
    (60
    )
    
    
    (3,050
    )
    
    
    (3,050
    )
    
    
    
    
    
    
    (8,658
    )
    
    
    (132
    )
    
    
    (8,790
    )
    
    
    (7,960
    )
    
    
    (294
    )
    
    
    (536
    )
 2007Recognised
    
    
    
    
    
    
    TotalEffective
    
    
    asset/
    
    
    Contractual
    
    
    Contractual
    
    
    6 monthsinterest
    
    
    (liability)
    
    
    interest
    
    
    cash flow
    
    
    or less
    
    
    6-12
    
    
    1-5In thousands of pounds
    
    rate
    
    
    (restated)
    
    
    payable
    
    
    (restated)
    
    
    (restated)
    
    
    months
    
    
    yearsLoans and receivables:Trade receivables
    
    
    
    
    
    
    5,221
    
    
    
    
    
    
    
    5,221
    
    
    
    5,221
    
    
    
    
    
    
    
    Other receivables
    
    
    
    
    
    
    1,819
    
    
    
    
    
    
    
    1,819
    
    
    
    1,819
    
    
    
    
    
    
    
    Accrued income
    
    
    
    
    
    
    2,385
    
    
    
    
    
    
    
    2,385
    
    
    
    2,385
    
    
    
    
    
    
    
    Bank deposits
    
    
    5
    %
    
    
    14,797
    
    
    
    
    
    
    
    14,797
    
    
    
    14,797
    
    
    
    
    
    
    
    Trade payables
    
    
    
    
    
    
    (2,476
    )
    
    
    
    
    
    
    (2,476
    )
    
    
    (2,476
    )
    
    
    
    
    
    
    Accrued expenses
    
    
    
    
    
    
    (3,049
    )
    
    
    
    
    
    
    (3,049
    )
    
    
    (3,049
    )
    
    
    
    
    
    
    Amounts due to clients
    
    
    
    
    
    
    (7,819
    )
    
    
    
    
    
    
    (7,819
    )
    
    
    (7,819
    )
    
    
    
    
    
    
    Bank loans and overdrafts
    
    
    8
    %
    
    
    (3,067
    )
    
    
    
    
    
    
    (3,067
    )
    
    
    (3,067
    )
    
    
    
    
    
    
    Mortgage secured over property
    
    
    8
    %
    
    
    (25
    )
    
    
    (3
    )
    
    
    (28
    )
    
    
    (28
    )
    
    
    
    
    
    
    Convertible loan notes
    
    
    8
    %
    
    
    (2,990
    )
    
    
    (319
    )
    
    
    (3,309
    )
    
    
    (120
    )
    
    
    (120
    )
    
    
    (3,069
    )4,796
    
    
    
    (322
    )
    
    
    4,474
    
    
    
    7,663
    
    
    
    (120
    )
    
    
    (3,069
    )
  4. Critical accounting estimates and judgments
  (a)
    
    Impairment of goodwill
  (b)
    
    Post retirement benefits
  www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2008     25




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##### 



Notes to the consolidated financial statements
  (c)
    
    Equity settled share based payments
  (d)
    
    Direct profit margin for principal sales
  5. Segmental analysis  geographical origin
  2008NorthIn thousands of pounds
    
    Europe
    
    
    America
    
    
    Asia
    
    
    Unallocated
    
    
    ConsolidatedRevenue
    
    
    16,140
    
    
    
    16,380
    
    
    
    4,378
    
    
    
    
    
    
    
    36,898Segment result
    
    
    (2,706
    )
    
    
    (879
    )
    
    
    (398
    )
    
    
    
    
    
    
    (3,983
    )Other charges
    
    
    (314
    )
    
    
    (373
    )
    
    
    (101
    )
    
    
    
    
    
    
    (788
    )Exceptional items
    
    
    (4,817
    )
    
    
    (16,389
    )
    
    
    (3,074
    )
    
    
    522
    
    
    
    (23,758
    )Operating loss
    
    
    (7,837
    )
    
    
    (17,641
    )
    
    
    (3,573
    )
    
    
    522
    
    
    
    (28,529
    )Finance costs  net
    
    
    43
    
    
    
    (152
    )
    
    
    20
    
    
    
    (240
    )
    
    
    (329
    )Share of loss of associate
    
    
    
    
    
    
    (27
    )
    
    
    
    
    
    
    
    
    
    
    (27
    )Loss before income tax
    
    
    (7,794
    )
    
    
    (17,820
    )
    
    
    (3,553
    )
    
    
    282
    
    
    
    (28,885
    )Income tax expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (73
    )Loss for the year
from continuing operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (28,958
    )Depreciation and amortisation
    
    
    (395
    )
    
    
    (447
    )
    
    
    (190
    )
    
    
    
    
    
    
    (1,032
    )Segment assets
    
    
    49,024
    
    
    
    15,196
    
    
    
    4,620
    
    
    
    
    
    
    
    68,840Segment liabilities
    
    
    15,730
    
    
    
    18,445
    
    
    
    5,146
    
    
    
    
    
    
    
    39,321Unallocated liabilities:Convertible loan notes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,990
    
    
    
    2,990Total liabilities
    
    
    15,730
    
    
    
    18,445
    
    
    
    5,146
    
    
    
    2,990
    
    
    
    42,311Capital expenditure:Property, plant and equipment
    
    
    144
    
    
    
    102
    
    
    
    100
    
    
    
    
    
    
    
    346Intangible assets
    
    
    147
    
    
    
    169
    
    
    
    46
    
    
    
    
    
    
    
    362
 26     GoIndustry-DoveBid plc annual report and accounts 2008
    
    www.go-dove.com




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##### 



2007NorthIn thousands of pounds
    
    Europe
    
    
    America
    
    
    Asia
    
    
    Unallocated
    
    
    ConsolidatedRevenue
    
    
    19,778
    
    
    
    5,423
    
    
    
    3,904
    
    
    
    
    
    
    
    29,105Segment result
    
    
    272
    
    
    
    18
    
    
    
    733
    
    
    
    
    
    
    
    1,023Other charges
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (866
    )
    
    
    (866
    )Exceptional items
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (369
    )
    
    
    (369
    )Operating profit / (loss)
    
    
    272
    
    
    
    18
    
    
    
    733
    
    
    
    (1,235
    )
    
    
    (212
    )Finance costs  net
    
    
    4
    
    
    
    (134
    )
    
    
    (1
    )
    
    
    (240
    )
    
    
    (371
    )Profit / (loss) before income tax
    
    
    276
    
    
    
    (116
    )
    
    
    732
    
    
    
    (1,475
    )
    
    
    (583
    )Income tax expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (233
    )Loss for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (816
    )Depreciation and amortisation
    
    
    (188
    )
    
    
    (24
    )
    
    
    (53
    )
    
    
    
    
    
    
    (265
    )Segment assets (restated)
    
    
    42,700
    
    
    
    6,866
    
    
    
    2,345
    
    
    
    
    
    
    
    51,911Segment liabilities (restated)
    
    
    13,408
    
    
    
    6,996
    
    
    
    645
    
    
    
    
    
    
    
    21,049Unallocated liabilities:Convertible loan notes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,990
    
    
    
    2,990Total liabilities
    
    
    13,408
    
    
    
    6,996
    
    
    
    645
    
    
    
    2,990
    
    
    
    24,039Capital expenditure:Property, plant and equipment
    
    
    272
    
    
    
    58
    
    
    
    102
    
    
    
    
    
    
    
    432Intangible assets
    
    
    124
    
    
    
    20
    
    
    
    9
    
    
    
    
    
    
    
    153
  Segmental analysis  class of business
  2008ProfessionalIn thousands of pounds
    
    Commission
    
    
    Principal
    
    
    services
    
    
    TotalRevenue
    
    
    22,836
    
    
    
    8,047
    
    
    
    6,015
    
    
    
    36,898Segment assets
    
    
    47,681
    
    
    
    6,567
    
    
    
    14,592
    
    
    
    68,840Capital expenditure:Property, plant and equipment
    
    
    240
    
    
    
    33
    
    
    
    73
    
    
    
    346Intangible assets
    
    
    252
    
    
    
    34
    
    
    
    76
    
    
    
    362
 www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2008     27




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##### 



Notes to the consolidated financial statements
  2007ProfessionalIn thousands of pounds
    
    Commission
    
    
    Principal
    
    
    services
    
    
    TotalRevenue
    
    
    15,126
    
    
    
    10,341
    
    
    
    3,638
    
    
    
    29,105Segment assets (restated)
    
    
    34,283
    
    
    
    9,567
    
    
    
    8,061
    
    
    
    51,911Capital expenditure:Property, plant and equipment
    
    
    270
    
    
    
    88
    
    
    
    74
    
    
    
    432Intangible assets
    
    
    96
    
    
    
    31
    
    
    
    26
    
    
    
    153
 6. Exceptional items
 In thousands of pounds
    
    2008
    
    
    2007Reorganisation costs
    
    
    3,726
    
    
    
    369Impairment of trade receivables
    
    
    354
    
    
    
    Impairment of inventory
    
    
    822
    
    
    
    Impairment of goodwill
    
    
    19,378
    
    
    
    Gain on translation of foreign currency
    
    
    (522
    )
    
    
    23,758
    
    
    
    369
    7. Other charges
 In thousands of pounds
    
    2008
    
    
    2007Equity settled share based payments (note 24)
    
    
    241
    
    
    
    866Amortisation of customer relationships and brand acquired (note 17)
    
    
    547
    
    
    
    788
    
    
    
    866
 8. Operating (loss) / profit
 In thousands of pounds
    
    2008
    
    
    2007Operating (loss) / profit is stated after charging / (crediting):Cost of inventories recognised as an expense (included in cost of sales)
    
    
    5,662
    
    
    
    6,429Depreciation of property plant and equipment
    
    
    360
    
    
    
    240Amortisation of intangible assets
    
    
    672
    
    
    
    25Rentals under operating leases
    
    
    1,781
    
    
    
    1,239Gain on the translation of foreign currencies
    
    
    (1,248
    )
    
    
    (210
    )Auditor remuneration:Fees payable to the companys auditor for the audit of parent company
and consolidated financial statements
    
    
    75
    
    
    
    64Fees payable to the companys auditor and its associates for other services:The audit of the companys subsidiaries pursuant to legislation
    
    
    137
    
    
    
    105Tax services
    
    
    128
    
    
    
    61Other services
    
    
    33
    
    
    
    12373
    
    
    
    242
 28     GoIndustry-DoveBid plc annual report and accounts 2008
    
    www.go-dove.com




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##### 



9. Employee benefit expense
 In thousands of pounds
    
    2008
    
    
    2007Wages and salaries
    
    
    18,295
    
    
    
    10,979Social security costs
    
    
    1,476
    
    
    
    1,226Pension costs  defined benefit plan (note 23)
    
    
    338
    
    
    
    172Pension costs  defined contribution plans
    
    
    368
    
    
    
    447Share options granted to directors and employees (note 24)
    
    
    241
    
    
    
    86620,718
    
    
    
    13,690
  2008
    
    
    2007Number
    
    
    NumberSales
    
    
    115
    
    
    
    82Operations
    
    
    264
    
    
    
    176Central services
    
    
    25
    
    
    
    20404
    
    
    
    278
  10. Directors emoluments
  In thousands of pounds
    
    2008
    
    
    2007Emoluments
    
    
    500
    
    
    
    513Employers national insurance contributions
    
    
    55
    
    
    
    56Share based payments (note 24)
    
    
    36
    
    
    
    768Pension contributions  defined contribution
    
    
    33
    
    
    
    33624
    
    
    
    1,370
    In thousands of pounds
    
    2008
    
    
    2007Short-term employee benefits
    
    
    1,588
    
    
    
    1,009Post-employment benefits
    
    
    79
    
    
    
    78Share based payments (note 24)
    
    
    99
    
    
    
    7901,766
    
    
    
    1,877
 www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2008     29




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##### 



Notes to the consolidated financial statements
  11. Finance income and costs
 In thousands of pounds
    
    2008
    
    
    2007Finance income:Interest income on short-term bank deposits
    
    
    369
    
    
    
    405Finance costs:Bank borrowings
    
    
    (491
    )
    
    
    (569
    )Convertible loan notes
    
    
    (207
    )
    
    
    (207
    )(329
    )
    
    
    (371
    )
 12. Income tax expense
 In thousands of pounds
    
    2008
    
    
    2007Current tax:Adjustments to prior year tax charges
    
    
    19
    
    
    
    (2
    )Overseas corporation tax on profits in the year
    
    
    54
    
    
    
    23573
    
    
    
    233
 In thousands of pounds
    
    2008
    
    
    2007Loss before income tax
    
    
    (28,885
    )
    
    
    (583
    )Tax at the UK corporation tax rate of 28% (2007: 30%)
    
    
    (8,088
    )
    
    
    (175
    )Effect of lower income tax rate of other countries
    
    
    (70
    )
    
    
    (10
    )Adjustment in respect of current income tax of previous years
    
    
    19
    
    
    
    (2
    )Deferred tax not recognised
    
    
    (197
    )
    
    
    51Tax losses not utilised
    
    
    2,659
    
    
    
    84Share based payments expense not deductible
    
    
    76
    
    
    
    166Expenditure not allowable for income tax purposes
    
    
    221
    
    
    
    119Goodwill amortisation and impairment
    
    
    5,453
    
    
    
    73
    
    
    
    233
  30     GoIndustry-DoveBid plc annual report and accounts 2008
    
    www.go-dove.com




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##### 



13. Discontinued operation
   In thousands of pounds
    
    2008
    
    
    2007Revenue
    
    
    229
    
    
    
    409Expenses
    
    
    (335
    )
    
    
    (354
    )(Loss) / profit before income tax from discontinued operation
    
    
    (106
    )
    
    
    55Tax
    
    
    
    
    
    
    (55
    )Loss after income tax from discontinued operation
    
    
    (106
    )
    
    
    Loss on disposal of discontinued operation
    
    
    (1,197
    )
    
    
    Loss from discontinued operation
    
    
    (1,303
    )
    
    
    
  14. Earnings per share
   2008
    
    
    2007Loss from continuing operations attributable to
equity holders of the company (thousands of pounds)
    
    
    (29,020
    )
    
    
    (795
    )Weighted average number of ordinary shares in issue (thousands)
    
    
    437,834
    
    
    
    237,994Basic loss per share (pence per share)
    
    
    (6.6p
    )
    
    
    (0.3p
    )
  2008
    
    
    2007Loss attributable to equity holders of the company (thousands of pounds)
    
    
    (30,323
    )
    
    
    (795
    )Weighted average number of ordinary shares in issue (thousands)
    
    
    437,834
    
    
    
    237,994Basic loss per share (pence per share)
    
    
    (6.9p
    )
    
    
    (0.3p
    )
  2008
    
    
    2007(Loss) / profit after tax before exceptionals and other charges (thousands of pounds)
    
    
    (4,412
    )
    
    
    419Weighted average number of ordinary shares in issue (thousands)
    
    
    437,834
    
    
    
    237,994Adjusted basic (loss) / profit per share (pence per share)
    
    
    (1.0p
    )
    
    
    0.2p
 www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2008     31




---



##### 



Notes to the consolidated financial statements
  15. Acquisition
  In thousands of poundsCash paid
    
    
    11,655Immediate share consideration (21,660,000 5p ordinary shares)
    
    
    2,166Deferred share consideration (5,420,000 5p ordinary shares)
    
    
    542Direct costs relating to the acquisition
    
    
    1,148Total purchase consideration
    
    
    15,511Fair value of net liabilities acquired (see below)
    
    
    (2,939
    )Goodwill
    
    
    18,450
    AcquireesIn thousands of pounds
    
    carrying amount
    
    
    Fair valueCash and cash equivalents
    
    
    5,759
    
    
    
    5,759Property, plant and equipment
    
    
    309
    
    
    
    309Brand
    
    
    
    
    
    
    768Customer relationships
    
    
    
    
    
    
    2,369Trade and other receivables
    
    
    2,724
    
    
    
    2,724Trade and other payables
    
    
    (12,515
    )
    
    
    (13,814
    )Subordinated loan notes
    
    
    (1,054
    )
    
    
    (1,054
    )Net identifiable liabilities acquired
    
    
    (4,777
    )
    
    
    (2,939
    )Outflow of cash to acquire business, net of cash acquired:Cash consideration
    
    
    
    
    
    
    11,655Direct costs relating to acquisition
    
    
    
    
    
    
    1,148Cash and cash equivalents in subsidiary acquired
    
    
    
    
    
    
    (5,759
    )7,044
   32     GoIndustry-DoveBid plc annual report and accounts 2008
    
    www.go-dove.com




---



##### 



16. Property, plant and equipment
 Furniture,fittings andIn thousands of pounds
    
    Buildings
    
    
    Vehicles
    
    
    equipment
    
    
    TotalCost:At 1 January 2007
    
    
    701
    
    
    
    355
    
    
    
    1,595
    
    
    
    2,651Exchange differences
    
    
    60
    
    
    
    18
    
    
    
    37
    
    
    
    115Additions
    
    
    54
    
    
    
    114
    
    
    
    264
    
    
    
    432Disposals
    
    
    
    
    
    
    (55
    )
    
    
    (23
    )
    
    
    (78
    )At 1 January 2008
    
    
    815
    
    
    
    432
    
    
    
    1,873
    
    
    
    3,120Exchange differences
    
    
    269
    
    
    
    44
    
    
    
    190
    
    
    
    503Additions
    
    
    36
    
    
    
    104
    
    
    
    206
    
    
    
    346Additions through acquisition (note 15)
    
    
    52
    
    
    
    15
    
    
    
    242
    
    
    
    309Disposals
    
    
    
    
    
    
    (112
    )
    
    
    (44
    )
    
    
    (156
    )At 31 December 2008
    
    
    1,172
    
    
    
    483
    
    
    
    2,467
    
    
    
    4,122Accumulated depreciation:At 1 January 2007:
    
    
    238
    
    
    
    194
    
    
    
    1,290
    
    
    
    1,722Exchange differences
    
    
    19
    
    
    
    9
    
    
    
    31
    
    
    
    59Charge for the year
    
    
    33
    
    
    
    53
    
    
    
    154
    
    
    
    240Disposals
    
    
    
    
    
    
    (36
    )
    
    
    (23
    )
    
    
    (59
    )At 1 January 2008
    
    
    290
    
    
    
    220
    
    
    
    1,452
    
    
    
    1,962Exchange differences
    
    
    93
    
    
    
    99
    
    
    
    239
    
    
    
    431Charge for the year
    
    
    87
    
    
    
    47
    
    
    
    226
    
    
    
    360Disposals
    
    
    
    
    
    
    (27
    )
    
    
    (33
    )
    
    
    (60
    )At 31 December 2008
    
    
    470
    
    
    
    339
    
    
    
    1,884
    
    
    
    2,693Net book value:At 31 December 2008
    
    
    702
    
    
    
    144
    
    
    
    583
    
    
    
    1,429At 1 January 2008
    
    
    525
    
    
    
    212
    
    
    
    421
    
    
    
    1,158At 1 January 2007
    
    
    463
    
    
    
    161
    
    
    
    305
    
    
    
    929
 www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2008     33




---



##### 



Notes to the consolidated financial statements
  17. Intangible assets
 Acquiredcustomer
    
    
    Acquired
    
    
    Softwarerelationships
    
    
    brands
    
    
    and systemsIn thousands of pounds
    
    Goodwill
    
    
    (note 15)
    
    
    (note 15)
    
    
    development
    
    
    TotalCost:At 1 January 2007
    
    
    24,900
    
    
    
    
    
    
    
    
    
    
    
    1,989
    
    
    
    26,889Exchange differences
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    16
    
    
    
    16Additions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    153
    
    
    
    153At 1 January 2008
    
    
    24,900
    
    
    
    
    
    
    
    
    
    
    
    2,158
    
    
    
    27,058Exchange differences
    
    
    8,508
    
    
    
    877
    
    
    
    283
    
    
    
    554
    
    
    
    10,222Additions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    362
    
    
    
    362Additions through acquisition (note 15)
    
    
    18,450
    
    
    
    2,369
    
    
    
    768
    
    
    
    
    
    
    
    21,587Disposals
    
    
    (1,147
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,147
    )At 31 December 2008
    
    
    50,711
    
    
    
    3,246
    
    
    
    1,051
    
    
    
    3,074
    
    
    
    58,082Accumulated amortisation:At 1 January 2007:
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,954
    
    
    
    1,954Charge for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    25
    
    
    
    25Exchange differences
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13
    
    
    
    13At 1 January 2008
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,992
    
    
    
    1,992Exchange differences
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    290
    
    
    
    290Charge for the year
    
    
    
    
    
    
    413
    
    
    
    134
    
    
    
    125
    
    
    
    672Impairment of goodwill
    
    
    19,378
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19,378At 31 December 2008
    
    
    19,378
    
    
    
    413
    
    
    
    134
    
    
    
    2,407
    
    
    
    22,332Net book value:At 31 December 2008
    
    
    31,333
    
    
    
    2,833
    
    
    
    917
    
    
    
    667
    
    
    
    35,750At 1 January 2008
    
    
    24,900
    
    
    
    
    
    
    
    
    
    
    
    166
    
    
    
    25,066At 1 January 2007
    
    
    24,900
    
    
    
    
    
    
    
    
    
    
    
    35
    
    
    
    24,935
   In thousands of pounds
    
    2008
    
    
    2007Europe
    
    
    8,717
    
    
    
    9,833North America
    
    
    16,673
    
    
    
    8,488Asia
    
    
    5,943
    
    
    
    6,57931,333
    
    
    
    24,900
 34     GoIndustry-DoveBid plc annual report and accounts 2008
    
    www.go-dove.com




---



##### 




    
    Cash flows for 2009 were projected based on the budget for 2009;
 
    
    Cash flows for 2010-11 were extrapolated using conservative revenue growth rates at 5% in 2010 and 7.5% in
2011, and expense growth rates of 3.4% in 2010 and 4.3% in 2011, based on managements view on
likely trading and growth;
 
    
    Cash flows beyond 2011 are extrapolated using a long-term growth rate of 2.25%;
 
    
    Central overheads are borne by the CGUs where deemed appropriate by management and
allocated based on managements best estimates;
 
    
    Cash flows were discounted using the groups weighted average cost of capital of 10%
  18. Investment in associate
 In thousands of pounds
    
    2008
    
    
    2007Investment in ZetaBid associate
    
    
    55
    
    
    
    Share of loss for the year of associate
    
    
    (27
    )
    
    
    28
    
    
    
    
  19. Trade and other receivables
 In thousands of pounds
    
    2008
    
    
    2007Trade receivables after provison for doubtful debts
    
    
    3,579
    
    
    
    5,221Prepayments and accrued income
    
    
    5,580
    
    
    
    2,962Other receivables
    
    
    1,694
    
    
    
    1,81910,853
    
    
    
    10,002
  In thousands of pounds
    
    2008
    
    
    2007Trade receivables
    
    
    4,256
    
    
    
    5,535Provision for doubtful debts
    
    
    (677
    )
    
    
    (314
    )3,579
    
    
    
    5,221
    In thousands of pounds
    
    2008
    
    
    2007Up to three months
    
    
    3,301
    
    
    
    4,699Three to six months
    
    
    225
    
    
    
    418Greater than six months
    
    
    53
    
    
    
    1043,579
    
    
    
    5,221
 www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2008     35




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##### 



Notes to the consolidated financial statements
   In thousands of pounds
    
    2008
    
    
    2007Pounds sterling
    
    
    628
    
    
    
    1,829Euros
    
    
    1,094
    
    
    
    1,746United States dollar
    
    
    1,857
    
    
    
    1,6463,579
    
    
    
    5,221
 20. Cash and cash equivalents
 In thousands of pounds
    
    2008
    
    
    2007(restated)Own cash on hand and at bank
    
    
    3,411
    
    
    
    3,850Short-term bank deposits
    
    
    9,739
    
    
    
    2,457Monies held under guarantee
    
    
    4,887
    
    
    
    8,49018,037
    
    
    
    14,797
 21. Trade and other payables
 In thousands of pounds
    
    2008
    
    
    2007(restated)CurrentTrade payables
    
    
    4,707
    
    
    
    2,476Amounts due to clients
    
    
    16,179
    
    
    
    7,819Social security and other taxes
    
    
    1,539
    
    
    
    1,094Accrued expenses
    
    
    5,378
    
    
    
    3,04927,803
    
    
    
    14,438
 In thousands of pounds
    
    2008
    
    
    2007Non-currentSocial security and other taxes
    
    
    704
    
    
    
    Provisions
    
    
    390
    
    
    
    1,094
    
    
    
    
 36     GoIndustry-DoveBid plc annual report and accounts 2008
    
    www.go-dove.com




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##### 



22. Borrowings
 In thousands of pounds
    
    2008
    
    
    2007CurrentBank loans and overdrafts
    
    
    6,722
    
    
    
    3,067Mortgage secured over property
    
    
    
    
    
    
    25Convertible loan notes
    
    
    2,990
    
    
    
    Subordinated loan notes
    
    
    258
    
    
    
    9,970
    
    
    
    3,092NoncurrentConvertible loan notes
    
    
    
    
    
    
    2,990Subordinated loan notes
    
    
    546
    
    
    
    546
    
    
    
    2,990
  In thousands of pounds
    
    2008
    
    
    2007Floating rate:Expiring within one year
    
    
    6,722
    
    
    
    3,092Fixed rate:Expiring within one year
    
    
    3,248
    
    
    
    Expiring beyond one year
    
    
    546
    
    
    
    2,99010,516
    
    
    
    6,082
  In thousands of pounds
    
    2008
    
    
    2007Pounds sterling
    
    
    5,226
    
    
    
    3,290Euros
    
    
    
    
    
    
    25United States dollar
    
    
    5,290
    
    
    
    2,76710,516
    
    
    
    6,082
     www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2008     37




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##### 



Notes to the consolidated financial statements
  23. Retirement benefit obligations
      In thousands of pounds
    
    2008
    
    
    2007Balance sheet obligations for:Pension benefits
    
    
    2,898
    
    
    
    3,519Income statement charge for:Pension benefits (note 9)
    
    
    338
    
    
    
    172
  In thousands of pounds
    
    2008
    
    
    2007Present value of funded obligations
    
    
    11,071
    
    
    
    12,696Fair value of plan assets
    
    
    (8,173
    )
    
    
    (9,177
    )Liability in the balance sheet
    
    
    2,898
    
    
    
    3,519
  In thousands of pounds
    
    2008
    
    
    2007Beginning of year
    
    
    12,696
    
    
    
    12,147Current service cost
    
    
    17
    
    
    
    46Interest cost
    
    
    730
    
    
    
    634Actuarial (gain) / loss on plan liabilities
    
    
    (2,122
    )
    
    
    251Benefits paid
    
    
    (250
    )
    
    
    (382
    )End of year
    
    
    11,071
    
    
    
    12,696
 38     GoIndustry-DoveBid plc annual report and accounts 2008
    
    www.go-dove.com




---



##### 



In thousands of pounds
    
    2008
    
    
    2007Fair value of scheme assets at start of year
    
    
    9,177
    
    
    
    8,573Expected return on scheme assets
    
    
    554
    
    
    
    508Employer contributions
    
    
    529
    
    
    
    453Benefits paid
    
    
    (250
    )
    
    
    (382
    )Scheme administration costs borne by the group
    
    
    (145
    )
    
    
    Actuarial (loss) / gain on scheme assets
    
    
    (1,692
    )
    
    
    25Fair value of scheme assets at end of year
    
    
    8,173
    
    
    
    9,177
   In thousands of pounds
    
    2008
    
    
    2007Current service cost
    
    
    17
    
    
    
    46Interest on obligation
    
    
    730
    
    
    
    634Expected return on scheme assets
    
    
    (554
    )
    
    
    (508
    )Scheme administration costs borne by the group
    
    
    145
    
    
    
    Total, included in staff costs (note 9)
    
    
    338
    
    
    
    172
   In thousands of pounds
    
    2008
    
    
    2008
    
    
    2007
    
    
    2007Percentage
    
    
    
    
    
    
    PercentageEquity instruments
    
    
    3,781
    
    
    
    46
    %
    
    
    5,221
    
    
    
    57
    %Debt instruments
    
    
    4,368
    
    
    
    54
    %
    
    
    3,806
    
    
    
    41
    %Other
    
    
    24
    
    
    
    0
    %
    
    
    150
    
    
    
    2
    %Pension benefits
    
    
    8,173
    
    
    
    100
    %
    
    
    9,177
    
    
    
    100
    %
  In thousands of pounds
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005At 31 DecemberPresent value of defined benefit obligation
    
    
    11,071
    
    
    
    12,696
    
    
    
    12,147
    
    
    
    13,098Fair value of plan assets
    
    
    8,173
    
    
    
    9,177
    
    
    
    8,573
    
    
    
    7,756Deficit
    
    
    2,898
    
    
    
    3,519
    
    
    
    3,574
    
    
    
    5,342Experience adjustments on plan liabilities
    
    
    2,122
    
    
    
    (251
    )
    
    
    1,412
    
    
    
    (1,129
    )Experience adjustments on plan assets
    
    
    (1,668
    )
    
    
    25
    
    
    
    151
    
    
    
    715
  www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2008     39




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##### 



Notes to the consolidated financial statements
  2008
    
    
    2007Percentage
    
    
    PercentageDiscount rate
    
    
    6.4
    %
    
    
    5.8
    %Expected return on scheme assets
    
    
    7.0
    %
    
    
    6.0
    %Rate of increase in salaries
    
    
    
    
    
    
    Price inflation
    
    
    2.8
    %
    
    
    3.3
    %Pension increases:Pensions accrued before 6 April 1997
    
    
    
    
    
    
    Pensions accrued after 6 April 1997
    
    
    2.8
    %
    
    
    3.3
    %
    2008
    
    
    2007Male
    
    
    87.9
    
    
    
    87.7Female
    
    
    90.5
    
    
    
    90.4
  2008
    
    
    2007Male
    
    
    90.8
    
    
    
    90.8Female
    
    
    93.4
    
    
    
    93.4
 24. Share capital and premium
  Numberof shares
    
    
    Ordinary
    
    
    ShareIn thousands of pounds
    
    Thousands
    
    
    shares
    
    
    premiumAt 1 January 2007
    
    
    199,133
    
    
    
    9,957
    
    
    
    4,962Placing of 5p ordinary sharesProceeds from shares issued
    
    
    40,000
    
    
    
    2,000
    
    
    
    4,800Less: cost of placing
    
    
    
    
    
    
    
    
    
    
    (239
    )Issue of 5p Ordinary shares to satisfy
deferred consideration payable
    
    
    25,760
    
    
    
    1,288
    
    
    
    44Share options exercised
    
    
    105
    
    
    
    5
    
    
    
    11At 1 January 2008
    
    
    264,998
    
    
    
    13,250
    
    
    
    9,578Issue of share capital to finance the acquisition of DoveBid Inc.Proceeds from shares issued
    
    
    185,000
    
    
    
    9,250
    
    
    
    9,250Less: cost of share issue
    
    
    
    
    
    
    
    
    
    
    (1,039
    )Shares issued as consideration for the acquisition of DoveBid, Inc.
    
    
    21,660
    
    
    
    1,083
    
    
    
    1,083At 31 December 2008
    
    
    471,658
    
    
    
    23,583
    
    
    
    18,872
 40     GoIndustry-DoveBid plc annual report and accounts 2008
    
    www.go-dove.com




---



##### 



In thousands of pounds
    
    2008
    
    
    2007Authorised ordinary shares of 5p each 700,000 thousand (2007: 330,000 thousand)
    
    
    35,000
    
    
    
    16,500Deferred share consideration for the acquisition of DoveBid, Inc. is as set out below:Equity ordinary shares to be issued of 5p each 5,420 thousand  note 15 (2007: Nil)
    
    
    542
    
    
    
    
 Share based payments
   Weighted
    
    
    Warrants
    
    
    Weighted
    
    
    Optionsaverage
    
    
    Number of
    
    
    average
    
    
    Number ofexercise price
    
    
    shares
    
    
    exercise price
    
    
    sharesPence per share
    
    
    Thousands
    
    
    Pence per share
    
    
    ThousandsOutstanding at 1 January 2007
    
    
    18p
    
    
    
    4,674
    
    
    
    31p
    
    
    
    12,454Granted
    
    
    
    
    
    
    
    
    
    
    11p
    
    
    
    15,215Exercised
    
    
    
    
    
    
    
    
    
    
    15p
    
    
    
    (105
    )Lapsed or forfeited
    
    
    18p
    
    
    
    (4,674
    )
    
    
    
    
    
    
    Outstanding at 1 January 2008
    
    
    
    
    
    
    
    
    
    
    22p
    
    
    
    27,564Granted
    
    
    
    
    
    
    
    
    
    
    9p
    
    
    
    7,300Exercised
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Lapsed or forfeited
    
    
    
    
    
    
    
    
    
    
    22p
    
    
    
    (1,670
    )Outstanding at 31 December 2008
    
    
    
    
    
    
    
    
    
    
    19p
    
    
    
    33,194Exercisable at 31 December 2008
    
    
    
    
    
    
    
    
    
    
    23p
    
    
    
    23,619Exercisable at 31 December 2007
    
    
    
    
    
    
    
    
    
    
    23p
    
    
    
    24,060
  At 31 December 2008:Weighted average remaining contractual life
    
    
    6.5At 31 December 2007:Weighted average remaining contractual life
    
    
    6.5
 www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2008     41




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##### 



Notes to the consolidated financial statements
   Contractual
    
    SharesExercise price
    
    Vesting
    
    life
    
    2008
    
    
    2007Date of grant
    
    Pence
    
    conditions
    
    Years
    
    Thousands
    
    
    Thousands05 December 2008
    
    5p
    
    3 yrs of service
    
    10
    
    
    100
    
    
    
    13 October 2008
    
    6.1p
    
    3 yrs of service
    
    10
    
    
    2,000
    
    
    
    27 June 2008
    
    10p
    
    3 yrs of service
    
    10
    
    
    2,050
    
    
    
    22 May 2008
    
    10.5p
    
    3 yrs of service
    
    10
    
    
    2,650
    
    
    
    30 January 2008
    
    11.8p
    
    3 yrs of service
    
    10
    
    
    500
    
    
    
    19 July 2007
    
    5p
    
    
    
    10 yrs following end of service
    
    
    4,476
    
    
    
    4,47619 July 2007
    
    5p
    
    
    
    180 days following end of service
    
    
    1,000
    
    
    
    1,00019 July 2007
    
    17p
    
    
    
    10
    
    
    600
    
    
    
    60019 July 2007
    
    18p
    
    3 yrs of service
    
    10
    
    
    1,000
    
    
    
    1,00019 July 2007
    
    18.8p
    
    3 yrs of service
    
    10
    
    
    1,275
    
    
    
    1,67504 March 2006
    
    12.8p
    
    
    
    2 yrs following end of service
    
    
    132
    
    
    
    12404 March 2006
    
    12.8p
    
    
    
    10
    
    
    3,045
    
    
    
    3,03701 April 2005
    
    10p
    
    
    
    7
    
    
    3,000
    
    
    
    3,00031 December 2004
    
    12.8p
    
    
    
    10
    
    
    2,936
    
    
    
    2,48503 October 2003
    
    22.1p
    
    
    
    5
    
    
    
    
    
    
    12003 October 2003
    
    54.6p
    
    
    
    10
    
    
    
    
    
    
    14201 May 2003
    
    15p
    
    
    
    8
    
    
    110
    
    
    
    11031 October 2002
    
    27.2p
    
    
    
    10
    
    
    936
    
    
    
    1,12631 October 2002
    
    54.4p
    
    
    
    10
    
    
    1,602
    
    
    
    1,76719 October 2002
    
    44.7p
    
    
    
    10
    
    
    4,021
    
    
    
    4,08031 December 2001
    
    15p
    
    
    
    9
    
    
    634
    
    
    
    63401 October 2001
    
    12.8p
    
    
    
    10
    
    
    
    
    
    
    28901 October 2001
    
    22.4p
    
    
    
    10
    
    
    695
    
    
    
    1,07601 September 2001
    
    12.8p
    
    
    
    10
    
    
    
    
    
    
    2701 September 2001
    
    35.4p
    
    
    
    10
    
    
    
    
    
    
    16101 February 2001
    
    141.6p
    
    
    
    10
    
    
    260
    
    
    
    30409 October 2000
    
    12.8p
    
    
    
    10
    
    
    
    
    
    
    15911 July 2000
    
    44.1p
    
    
    
    10
    
    
    172
    
    
    
    17233,194
    
    
    
    27,564
  42     GoIndustry-DoveBid plc annual report and accounts 2008
    
    www.go-dove.com




---



##### 



2008
    
    2007Valuation method
    
    Black-Scholes
    
    Black-ScholesShare price at the date of grant
    
    3p  10p
    
    18pExpected volatility
    
    58.3%  38.5%
    
    38.5%Expected option life at grant date (years)
    
    3
    
    3Risk-free interest rate
    
    1.02%  4.46%
    
    5.8%Weighted average fair value per option at the grant date
    
    5p
    
    11p
  25. Own shares held in trust
 In thousands of poundsAt 1 January 2007
    
    
    (1,045
    )Issue of 5p ordinary shares to satisfy future share based payment obligation
    
    
    (66
    )Equity settled share based payments
    
    
    69At 1 January 2008
    
    
    (1,042
    )Equity settled share based payments
    
    
    68At 31 December 2008
    
    
    (974
    )
  26. Other reserves
 ForeignAcquisition
    
    
    currency
    
    
    Share optionsIn thousands of pounds
    
    reserve
    
    
    reserve
    
    
    reserve
    
    
    TotalAt 1 January 2007
    
    
    47,649
    
    
    
    (740
    )
    
    
    352
    
    
    
    47,261Currency translation differences
    
    
    
    
    
    
    (67
    )
    
    
    
    
    
    
    (67
    )Share based payments
    
    
    
    
    
    
    
    
    
    
    797
    
    
    
    797At 1 January 2008
    
    
    47,649
    
    
    
    (807
    )
    
    
    1,149
    
    
    
    47,991Currency translation differences
    
    
    
    
    
    
    8,043
    
    
    
    
    
    
    
    8,043Share based payments
    
    
    
    
    
    
    
    
    
    
    173
    
    
    
    173At 31 December 2008
    
    
    47,649
    
    
    
    7,236
    
    
    
    1,322
    
    
    
    56,207
  www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2008     43




---



##### 



Notes to the consolidated financial statements
  27. Accumulated losses
 In thousands of poundsAt 1 January 2007
    
    
    (40,968
    )Actuarial loss on defined benefit pension scheme
    
    
    (226
    )Loss for the year
    
    
    (795
    )At 31 December 2007
    
    
    (41,989
    )Actuarial gain on defined benefit pension scheme
    
    
    430Loss for the year
    
    
    (30,323
    )At 31 December 2008
    
    
    (71,882
    )
 28. Operating lease arrangements
  Land andIn thousands of pounds
    
    buildings
    
    
    Vehicles
    
    
    Other
    
    
    TotalAmounts falling due:Within one year
    
    
    383
    
    
    
    117
    
    
    
    203
    
    
    
    703More than one but less than five years
    
    
    1,713
    
    
    
    435
    
    
    
    271
    
    
    
    2,419More than five years
    
    
    1,618
    
    
    
    
    
    
    
    364
    
    
    
    1,982As at 31 December 2008
    
    
    3,714
    
    
    
    552
    
    
    
    838
    
    
    
    5,104
 Land andIn thousands of pounds
    
    buildings
    
    
    Vehicles
    
    
    Other
    
    
    TotalAmounts falling due:Within one year
    
    
    342
    
    
    
    33
    
    
    
    14
    
    
    
    389More than one but less than five years
    
    
    430
    
    
    
    162
    
    
    
    
    
    
    
    592More than five years
    
    
    304
    
    
    
    
    
    
    
    
    


    
    
    304As at 31 December 2007
    
    
    1,076
    
    
    
    195
    
    
    
    14
    
    
    
    1,285
  44     GoIndustry-DoveBid plc annual report and accounts 2008
    
    www.go-dove.com




---



##### 



29. Significant investments
  Country of
    
    Proportion of
    
    
    Proportion ofCompany name
    
    incorporation
    
    ownership
    
    
    voting control
    
    
    Principal activityAssetTRADE.com, Inc.
    
    USA
    
    
    100
    %
    
    
    100
    %
    
    Holding companyGoIndustry Operations, Inc.
    
    USA
    
    
    100
    %
    
    
    100
    %
    
    Holding companyGoIndustry AG
    
    Germany
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry Operations Limited
    
    UK
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry-DoveBid (Thailand) Limited
    
    Thailand
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry-DoveBid (Asia) Limited
    
    Hong Kong
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry-DoveBid (Hong Kong) Limited
    
    Hong Kong
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry-DoveBid (Malaysia) Sdn. Bhd.
    
    Malaysia
    
    
    70
    %
    
    
    70
    %
    
    Asset sales and servicesGoIndustry-DoveBid Philippines, Inc.
    
    Philippines
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry Quippo Valuers &
Auctioneers Pvt. Ltd.
    
    India
    
    
    50
    %
    
    
    50
    %
    
    Asset sales and servicesGoIndustry-DoveBid Korea Co. Ltd.
    
    South Korea
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry-DoveBid (Australia) Pty. Ltd.
    
    Australia
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry NV
    
    Belgium
    
    
    100
    %
    
    
    100
    %
    
    Holding companyGoIndustry (Austria) GmbH
    
    Austria
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry Deutschland GmbH
    
    Germany
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry USA, Inc.
    
    USA
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry (Canada) Limited
    
    Canada
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry (UK) Limited
    
    UK
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry Trading Limited
    
    UK
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry-Dovebid (Nordic) Ab
    
    Sweden
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesDoveBid Trading France Sarl
    
    France
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesDoveBid Germany GmbH
    
    Germany
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesDoveBid Netherlands BV
    
    Netherlands
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesDoveBid Ireland Limited
    
    Ireland
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesDoveBid UK Limited
    
    UK
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesDoveBid, Inc.
    
    USA
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesDoveBid Valuation Consultants, Inc.
    
    USA
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesDoveBid (S) Pte. Ltd.
    
    Singapore
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry-DoveBid (Shangahi) Co. Ltd.
    
    China
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry-DoveBid Japan KK
    
    Japan
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesDoveBid Asia Pacific Sdn. Bhd.
    
    Malaysia
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry-DoveBid Valuation
(Thailand) Ltd.
    
    Thailand
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesDoveBid Hong Kong Ltd.
    
    Hong Kong
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesDoveBid Australasia Pty. Ltd.
    
    Australia
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and services
 30. Events after the balance sheet date
   www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2008     45




---



##### 



Company balance sheet
  In thousands of pounds
    
    Note
    
    
    2008
    
    
    2007(restated)Non-current assetsIntangible assets
    
    
    3
    
    
    
    5
    
    
    
    8Investments in subsidiaries
    
    
    4
    
    
    
    31,651
    
    
    
    30,731Investment in associate
    
    
    5
    
    
    
    68
    
    
    
    Trade and other receivables
    
    
    6
    
    
    
    15,986
    
    
    
    8,36347,710
    
    
    
    39,102Current assetsTrade and other receivables
    
    
    6
    
    
    
    30
    
    
    
    66Cash and cash equivalents
    
    
    7
    
    
    
    4,353
    
    
    
    4,5264,383
    
    
    
    4,592Total assets
    
    
    
    
    
    
    52,093
    
    
    
    43,694Current liabilitiesTrade and other payables
    
    
    8
    
    
    
    552
    
    
    
    488Borrowings
    
    
    9
    
    
    
    1,980
    
    
    
    Convertible loan notes
    
    
    9
    
    
    
    2,990
    
    
    
    5,522
    
    
    
    488Non-current liabilitiesConvertible loan notes
    
    
    9
    
    
    
    
    
    
    
    2,990
    
    
    
    2,990Total liabilities
    
    
    
    
    
    
    5,522
    
    
    
    3,478Net assets
    
    
    
    
    
    
    46,571
    
    
    
    40,216Capital and reserves attributable to equity holders of the companyCalled-up equity share capital
    
    
    10
    
    
    
    23,583
    
    
    
    13,250Share premium
    
    
    10
    
    
    
    18,872
    
    
    
    9,578Shares to be issued
    
    
    10
    
    
    
    542
    
    
    
    Own shares held in trust
    
    
    11
    
    
    
    (974
    )
    
    
    (1,042
    )Other reserves
    
    
    12
    
    
    
    19,946
    
    
    
    19,568Accumulated losses
    
    
    13
    
    
    
    (15,398
    )
    
    
    (1,138
    )Total equity
    
    
    
    
    
    
    46,571
    
    
    
    40,216
   Neville Davis
    
    David HorneNon-executive Chairman
    
    Chief Financial Officer
 46     GoIndustry-DoveBid plc annual report and account 2008
    
    www.go-dove.com




---



##### 



Company cash flow statement
  In thousands of pounds
    
    2008
    
    
    2007Cash flows from operating activitiesLoss before income tax
    
    
    (14,260
    )
    
    
    (633
    )Adjustments for:Share based payments
    
    
    125
    
    
    
    784Net interest expense
    
    
    (323
    )
    
    
    3Amortisation
    
    
    3
    
    
    
    Impairment of investments
    
    
    14,912
    
    
    
    Changes in working capital:(Increase) in trade and other receivables
    
    
    (7,587
    )
    
    
    (3,465
    )Increase in trade and other payables
    
    
    64
    
    
    
    505Operating cash flows before interest and taxes
    
    
    (7,066
    )
    
    
    (2,806
    )Interest paid
    
    
    (267
    )
    
    
    (261
    )Interest received
    
    
    590
    
    
    
    258Net cash used in operating activities
    
    
    (6,743
    )
    
    
    (2,809
    )Cash flows from investing activitiesInvestment in subsidiary undertakings
    
    
    (12,803
    )
    
    
    (612
    )Investment in associate
    
    
    (68
    )
    
    
    Purchases of intangible assets
    
    
    
    
    
    
    (8
    )Net cash used in investing activities
    
    
    (12,871
    )
    
    
    (620
    )Cash flows from financing activitiesProceeds on issue of shares
    
    
    17,461
    
    
    
    6,577Increase in bank loans and overdrafts
    
    
    1,980
    
    
    
    Net cash from financing activities
    
    
    19,441
    
    
    
    6,577Net (decrease)/increase in cash and cash equivalents
    
    
    (173
    )
    
    
    3,148Cash and cash equivalents at beginning of year
    
    
    4,526
    
    
    
    1,378Cash and cash equivalents at end of year
    
    
    4,353
    
    
    
    4,526
  www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and account 2008     47




---



##### 



Notes to the company financial statements
  1. Summary of significant accounting policies
 Basis of preparation
     Loss for the year
  Intangible assets
   Investments
   Trade payables
  Share capital
    2. Financial risk management
  Market risk
 (a)
    
    Foreign exchange riskThe companys exposure to foreign exchange risk is limited as it does not engage in trading
activity. The company does enter into transactions with overseas group undertakings, but these are
denominated predominantly in sterling. Where balances with group undertakings denominated in
foreign currency do exist these are long-standing and therefore changes in foreign exchange rates
do not have any impact on cash-flows.(b)
    
    Interest rate riskThe borrowings of the company carry interest at Base Rate plus 2.5%. The convertible loan notes are
at a fixed interest rate of 8% and therefore the company is not subject to interest rate risk on
these.
 48     GoIndustry-DoveBid plc annual report and account 2008
    
    www.go-dove.com




---



##### 



Credit risk
  Liquidity risk
   2008Effective
    
    
    Recognised
    
    
    Contractual
    
    
    Totalinterest
    
    
    asset/
    
    
    interest
    
    
    Contractual
    
    
    6 months
    
    
    6-12
    
    
    1-5In thousands of pounds
    
    rate
    
    
    (liability)
    
    
    payable
    
    
    cash flow
    
    
    or less
    
    
    months
    
    
    yearsAmounts due from subsidiary undertakings
    
    
    
    
    
    
    15,986
    
    
    
    
    
    
    
    15,986
    
    
    
    15,986
    
    
    
    
    
    
    
    Bank deposits
    
    
    6
    %
    
    
    4,353
    
    
    
    
    
    
    
    4,353
    
    
    
    3,662
    
    
    
    
    
    
    
    691Trade payables
    
    
    
    
    
    
    (100
    )
    
    
    
    
    
    
    (100
    )
    
    
    (100
    )
    
    
    
    
    
    
    Amounts payable to subsidiary undertakings
    
    
    
    
    
    
    (220
    )
    
    
    
    
    
    
    (220
    )
    
    
    (220
    )
    
    
    
    
    
    
    Accrued expenses
    
    
    
    
    
    
    (207
    )
    
    
    
    
    
    
    (207
    )
    
    
    (207
    )
    
    
    
    
    
    
    Borrowings
    
    
    4
    %
    
    
    (1,980
    )
    
    
    
    
    
    
    (1,980
    )
    
    
    (1,980
    )
    
    
    
    
    
    
    Convertible loan notes
    
    
    8
    %
    
    
    (2,990
    )
    
    
    (60
    )
    
    
    (3,050
    )
    
    
    (3,050
    )
    
    
    
    
    
    
    14,842
    
    
    
    (60
    )
    
    
    14,782
    
    
    
    14,091
    
    
    
    
    
    
    
    691
 2007Effective
    
    
    Recognised
    
    
    Contractual
    
    
    Totalinterest
    
    
    asset/
    
    
    interest
    
    
    Contractual
    
    
    6 months
    
    
    6-12
    
    
    1-5In thousands of pounds
    
    rate
    
    
    (liability)
    
    
    payable
    
    
    cash flow
    
    
    or less
    
    
    months
    
    
    yearsAmounts due from subsidiary undertakings
    
    
    
    
    
    
    8,363
    
    
    
    
    
    
    
    8,363
    
    
    
    8,363
    
    
    
    
    
    
    
    Bank deposits
    
    
    5
    %
    
    
    4,526
    
    
    
    
    
    
    
    4,526
    
    
    
    4,022
    
    
    
    
    
    
    
    504Trade payables
    
    
    
    
    
    
    (9
    )
    
    
    
    
    
    
    (9
    )
    
    
    (9
    )
    
    
    
    
    
    
    Amounts payable to subsidiary undertakings
    
    
    
    
    
    
    (258
    )
    
    
    
    
    
    
    (258
    )
    
    
    (258
    )
    
    
    
    
    
    
    Accrued expenses
    
    
    
    
    
    
    (203
    )
    
    
    
    
    
    
    (203
    )
    
    
    (203
    )
    
    
    
    
    
    
    Convertible loan notes
    
    
    8
    %
    
    
    (2,990
    )
    
    
    (319
    )
    
    
    (3,309
    )
    
    
    (120
    )
    
    
    (120
    )
    
    
    (3,069
    )9,429
    
    
    
    (319
    )
    
    
    9,110
    
    
    
    11,795
    
    
    
    (120
    )
    
    
    (2,565
    )
 www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and account 2008     49




---



##### 



Notes to the company financial statements
  3. Intangible assets
 Software andsystemsIn thousands of pounds
    
    developmentCost:At 1 January 2007
    
    
    Additions
    
    
    10At 1 January 2008
    
    
    10Additions
    
    
    At 31 December 2008
    
    
    10Accumulated depreciation:At 1 January 2007
    
    
    Charge for the year
    
    
    2At 1 January 2008
    
    
    2Charge for the year
    
    
    3At 31 December 2008
    
    
    5Net book value:At 31 December 2008
    
    
    5At 1 January 2008
    
    
    8At 1 January 2007
    
    
    
 4. Investments in subsidiaries
 In thousands of poundsAt 1 January 2007
    
    
    27,835Capital contribution to subsidiary company
    
    
    612Capitalisation of loan to subsidiary company
    
    
    2,284At 1 January 2008
    
    
    30,731Acquisition of DoveBid, Inc.
    
    
    15,511Impairment of investments
    
    
    (14,912
    )Capital contribution to subsidiary undertaking
    
    
    321At 31 December 2008
    
    
    31,651
  5. Investment in associate
 In thousands of pounds
    
    2008
    
    
    2007Investment in ZetaBid associate
    
    
    68
    
    
    
    
 50     GoIndustry-DoveBid plc annual report and account 2008
    
    www.go-dove.com




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6. Trade and other receivables
 Non-currentIn thousands of pounds
    
    

    2008

    
    2007(restated)Amounts due from subsidiary undertakings
    
    
    15,986
    
    
    
    8,363
 CurrentIn thousands of pounds
    
    2008
    
    
    2007Prepayments
    
    
    30
    
    
    
    66
  7. Cash and cash equivalents
 In thousands of pounds
    
    2008
    
    
    2007Own cash on hand and at bank
    
    
    
    
    
    
    2,263Short-term bank deposits
    
    
    4,353
    
    
    
    2,2634,353
    
    
    
    4,526
 8. Trade and other payables
 In thousands of pounds
    
    2008
    
    
    2007Trade payables
    
    
    100
    
    
    
    9Amounts payable to subsidiary undertakings
    
    
    220
    
    
    
    258Social security and other taxes
    
    
    25
    
    
    
    18Accrued expenses
    
    
    207
    
    
    
    203552
    
    
    
    488
 9. Borrowings
 In thousands of pounds
    
    2008
    
    
    2007CurrentBank loans and overdrafts
    
    
    1,980
    
    
    
    Convertible loan notes
    
    
    2,990
    
    
    
    4,970
    
    
    
    Non-currentConvertible loan notes
    
    
    
    
    
    
    2,990
    www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and account 2008     51




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##### 



Notes to the company financial statements
  10. Share capital and premium
  Number ofshares
    
    
    Ordinary
    
    
    ShareIn thousands of pounds
    
    Thousands
    
    
    shares
    
    
    premiumAt 1 January 2007
    
    
    199,133
    
    
    
    9,957
    
    
    
    4,962Placing of 5p ordinary sharesProceeds from shares issued
    
    
    40,000
    
    
    
    2,000
    
    
    
    4,800Less: cost of placing
    
    
    
    
    
    
    
    
    
    
    (239
    )Issue of 5p Ordinary shares to satisfy deferred consideration payable
    
    
    25,760
    
    
    
    1,288
    
    
    
    44Share options exercised
    
    
    105
    
    
    
    5
    
    
    
    11At 1 January 2008
    
    
    264,998
    
    
    
    13,250
    
    
    
    9,578Issue of share capital to finance the acquisition of DoveBid Inc.Proceeds from shares issued
    
    
    185,000
    
    
    
    9,250
    
    
    
    9,250Less: cost of share issue
    
    
    
    
    
    
    
    
    
    
    (1,039
    )Shares issued as consideration for the acquisition of DoveBid, Inc.
    
    
    21,660
    
    
    
    1,083
    
    
    
    1,083At 31 December 2008
    
    
    471,658
    
    
    
    23,583
    
    
    
    18,872
  In thousands of pounds
    
    2008
    
    
    2007Authorised ordinary shares of 5p each 700,000 thousand (2007: 330,000 thousand)
    
    
    35,000
    
    
    
    16,500Deferred share consideration for the acquisition of DoveBid, Inc. is as set out below:Equity ordinary shares to be issued of 5p each 5,420 thousand (2007: Nil)
    
    
    542
    
    
    
    
   11. Own shares held in trust
 In thousands of poundsAt 1 January 2007 (restated)
    
    
    (1,045
    )Issue of 5p ordinary shares to satisfy future share based payment obligation
    
    
    (66
    )Equity settled share based payments
    
    
    69At 1 January 2008
    
    
    (1,042
    )Equity settled share based payments
    
    
    68At 31 December 2008
    
    
    (974
    )
  52     GoIndustry-DoveBid plc annual report and account 2008
    
    www.go-dove.com




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12. Other reserves
 Acquisition
    
    
    Share optionsIn thousands of pounds
    
    reserve
    
    
    reserve
    
    
    TotalAt 1 January 2007 (restated)
    
    
    18,624
    
    
    
    160
    
    
    
    18,784Share based payments
    
    
    
    
    
    
    784
    
    
    
    784At 31 December 2007
    
    
    18,624
    
    
    
    944
    
    
    
    19,568Share based payments
    
    
    
    
    
    
    57
    
    
    
    57Capital contribution to subsidiary undertaking
    
    
    
    
    
    
    321
    
    
    
    321At 31 December 2008
    
    
    18,624
    
    
    
    1,322
    
    
    
    19,946
 13. Accumulated losses
 In thousands of poundsAt 1 January 2007
    
    
    (505
    )Loss for the year
    
    
    (633
    )At 1 January 2008
    
    
    (1,138
    )Loss for the year
    
    
    (14,260
    )At 31 December 2008
    
    
    (15,398
    )
 14. Related party transactions
   15. Events after the balance sheet date
   www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and account 2008     53