Exhibit 99.3
 GoIndustry DoveBid plc
 
 GoIndustry plc




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##### 



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




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##### 



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




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##### 



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




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##### 



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




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##### 



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




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##### 



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




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##### 



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




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##### 



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




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##### 



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




---



##### 



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




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##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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, as applied in accordance with the provisions of the Companies Act
1985, of the state of the groups affairs as at 31 December 2007 and of its loss for the year then
ended;
 
    
    the parent company financial statements give a true and fair view, in accordance with IFRSs
as adopted by the European Union as applied in accordance with the provisions of the Companies Act
1985, of the state of the parent companys affairs as at 31 December 2007;
 
    
    the financial statements have been properly prepared in accordance with the Companies Act;
and
 
    
    the information given in the Directors Report is consistent with the financial
statements.
 /s/ BAKER TILLY UK AUDIT LLP
 
  10     GoIndustry plc annual report and accounts 2007
    
    www.goindustry.com




---



##### 



Consolidated income statement
  2007
    
    
    2006Beforeexcept-ionalBefore
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    itemsexcept-
    
    
    Except-
    
    
    
    
    
    
    
    
    
    
    and
    
    
    Except-ional
    
    
    ional
    
    
    
    
    
    
    
    
    
    
    equity
    
    
    ionalitems
    
    
    charges
    
    
    
    
    
    
    
    
    
    
    settled
    
    
    chargesand
    
    
    arising
    
    
    Equity
    
    
    
    
    
    
    share
    
    
    arisingequity
    
    
    from
    
    
    settled
    
    
    
    
    
    
    based
    
    
    from
    
    
    Equitysettled
    
    
    reorgan-
    
    
    share
    
    
    
    
    
    
    payments
    
    
    reorgan-
    
    
    settled
    
    
    Totalshare
    
    
    isation
    
    
    based
    
    
    
    
    
    
    (restated
    
    
    isation
    
    
    share
    
    
    (restatedbased
    
    
    costs
    
    
    pay-
    
    
    
    
    
    
    see
    
    
    costs
    
    
    based
    
    
    seeIn thousands of pounds
    
    Note
    
    
    payments
    
    
    (note 6)
    
    
    ments
    
    
    Total
    
    
    note 2)
    
    
    (note 6)
    
    
    payments
    
    
    note 2)Revenue
    
    
    5
    
    
    
    29,105
    
    
    
    
    
    
    
    
    
    
    
    29,105
    
    
    
    34,141
    
    
    
    
    
    
    
    
    
    
    
    34,141Cost of sales
    
    
    
    
    
    
    (11,333
    )
    
    
    
    
    
    
    
    
    
    
    (11,333
    )
    
    
    (14,889
    )
    
    
    
    
    
    
    
    
    
    
    (14,889
    )Direct profit
    
    
    
    
    
    
    17,772
    
    
    
    
    
    
    
    
    
    
    
    17,772
    
    
    
    19,252
    
    
    
    
    
    
    
    
    
    
    
    19,252Administrative expenses
    
    
    
    
    
    
    (16,749
    )
    
    
    (369
    )
    
    
    (866
    )
    
    
    (17,984
    )
    
    
    (18,406
    )
    
    
    (349
    )
    
    
    (517
    )
    
    
    (19,272
    )Operating profit/(loss)
    
    
    7
    
    
    
    1,023
    
    
    
    (369
    )
    
    
    (866
    )
    
    
    (212
    )
    
    
    846
    
    
    
    (349
    )
    
    
    (517
    )
    
    
    (20
    )Finance costsInterest income
    
    
    10
    
    
    
    405
    
    
    
    
    
    
    
    
    
    
    
    405
    
    
    
    199
    
    
    
    
    
    
    
    
    
    
    
    199Interest expense
    
    
    10
    
    
    
    (776
    )
    
    
    
    
    
    
    
    
    
    
    (776
    )
    
    
    (766
    )
    
    
    
    
    
    
    
    
    
    
    (766
    )Profit/(loss) before
income tax
    
    
    
    
    
    
    652
    
    
    
    (369
    )
    
    
    (866
    )
    
    
    (583
    )
    
    
    279
    
    
    
    (349
    )
    
    
    (517
    )
    
    
    (587
    )Income tax expense
    
    
    11
    
    
    
    (233
    )
    
    
    
    
    
    
    
    
    
    
    (233
    )
    
    
    (56
    )
    
    
    
    
    
    
    
    
    
    
    (56
    )Profit/(loss) for the year
    
    
    
    
    
    
    419
    
    
    
    (369
    )
    
    
    (866
    )
    
    
    (816
    )
    
    
    223
    
    
    
    (349
    )
    
    
    (517
    )
    
    
    (643
    )Attributable to:Equity holders of the company
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (795
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (700
    )Minority interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (21
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    57(816
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (643
    )Loss per share for loss
attributable to equity
holders of the company
during the year(expressed
in pence per share)Basic
    
    
    12
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.3p
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.4p
    )Diluted
    
    
    12
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.3p
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.4p
    )
  www.goindustry.com
    
    GoIndustry plc annual report and accounts 2007      11




---



##### 



Consolidated statement of recognised income and expense
  In thousands of pounds
    
    Note
    
    
    2007
    
    
    2006(restatedsee note 2)Exchange losses on translation of foreign subsidiaries
    
    
    
    
    
    
    (53
    )
    
    
    (680
    )Actuarial (losses)/gains on defined benefit pension scheme
    
    
    20
    
    
    
    (226
    )
    
    
    1,545Net (expense)/income recognised directly in equity
    
    
    
    
    
    
    (279
    )
    
    
    865Loss for the year
    
    
    
    
    
    
    (816
    )
    
    
    (643
    )Total recognised income and expense for the year
    
    
    
    
    
    
    (1,095
    )
    
    
    222Attributable to:Equity holders of the company
    
    
    
    
    
    
    (1,089
    )
    
    
    184Minority interest
    
    
    
    
    
    
    (6
    )
    
    
    38(1,095
    )
    
    
    222
  12     GoIndustry plc annual report and accounts 2007
    
    www.goindustry.com




---



##### 



Consolidated balance sheet
  In thousands of pounds
    
    Note
    
    
    2007
    
    
    2006Non-current assetsProperty, plant and equipment
    
    
    13
    
    
    
    1,158
    
    
    
    929Intangible assets
    
    
    14
    
    
    
    25,066
    
    
    
    24,93526,224
    
    
    
    25,864Current assetsInventories
    
    
    
    
    
    
    888
    
    
    
    1,083Trade and other receivables
    
    
    15
    
    
    
    10,002
    
    
    
    9,229Cash and cash equivalents
    
    
    16
    
    
    
    9,949
    
    
    
    5,23520,839
    
    
    
    15,547Total assets
    
    
    
    
    
    
    47,063
    
    
    
    41,411Current liabilitiesTrade and other payables
    
    
    17
    
    
    
    9,590
    
    
    
    9,115Provisions
    
    
    18
    
    
    
    
    
    
    
    138Borrowings
    
    
    19
    
    
    
    3,092
    
    
    
    3,91312,682
    
    
    
    13,166Non-current liabilitiesBorrowings
    
    
    19
    
    
    
    
    
    
    
    88Convertible loan notes
    
    
    19
    
    
    
    2,990
    
    
    
    2,990Retirement benefit obligations
    
    
    20
    
    
    
    3,519
    
    
    
    3,5746,509
    
    
    
    6,652Total liabilities
    
    
    
    
    
    
    19,191
    
    
    
    19,818Net assets
    
    
    
    
    
    
    27,872
    
    
    
    21,593EquityOrdinary shares
    
    
    21
    
    
    
    13,250
    
    
    
    9,957Share premium
    
    
    21
    
    
    
    9,578
    
    
    
    4,962Shares to be issued
    
    
    21
    
    
    
    
    
    
    
    1,266Own shares held in trust
    
    
    22
    
    
    
    (1,042
    )
    
    
    (1,045
    )Other reserves
    
    
    23
    
    
    
    47,991
    
    
    
    47,261Accumulated losses
    
    
    24
    
    
    
    (41,989
    )
    
    
    (40,968
    )Capital and reserves attributable to equity holders of the company
    
    
    
    
    
    
    27,788
    
    
    
    21,433Minority interests
    
    
    
    
    
    
    84
    
    
    
    160Total equity
    
    
    
    
    
    
    27,872
    
    
    
    21,593
   John Allbrook
    
    David HorneChief Executive Officer
    
    Chief Financial Officer
 www.goindustry.com
    
    GoIndustry plc annual report and accounts 2007     13




---



##### 



Consolidated cash flow statement
  In thousands of pounds
    
    2007
    
    
    2006(restatedsee note 2)Cash flows from operating activitiesLoss before income tax
    
    
    (583
    )
    
    
    (587
    )Adjustments for:Depreciation and amortisation
    
    
    265
    
    
    
    283Net interest expense
    
    
    371
    
    
    
    567Share based payments
    
    
    866
    
    
    
    517Net retirement benefit cost
    
    
    126
    
    
    
    193Changes in working capital:Decrease in inventories
    
    
    195
    
    
    
    388Increase in accounts receivable
    
    
    (773
    )
    
    
    (2,211
    )Increase in accounts payable
    
    
    391
    
    
    
    1,073Decrease in provisions
    
    
    (548
    )
    
    
    (1,073
    )Operating cash flows before interest and taxes
    
    
    310
    
    
    
    (850
    )Interest paid
    
    
    (776
    )
    
    
    (766
    )Income and corporation taxes paid
    
    
    (170
    )
    
    
    (72
    )Interest received
    
    
    405
    
    
    
    199Net cash used in operating activities
    
    
    (231
    )
    
    
    (1,489
    )Cash flows from investing activitiesPurchases of property, plant and equipment
    
    
    (432
    )
    
    
    (245
    )Purchases of intangible assets
    
    
    (153
    )
    
    
    (180
    )Net cash used in investing activities
    
    
    (585
    )
    
    
    (425
    )Cash flows from financing activitiesProceeds on issue of shares
    
    
    6,577
    
    
    
    2,100Proceeds on issue of convertible loan notes
    
    
    
    
    
    
    2,990Decrease in bank loans and overdrafts
    
    
    (846
    )
    
    
    (2,343
    )Repayment of mortgage
    
    
    (63
    )
    
    
    (101
    )Subsidiary company dividend paid to minority shareholder
    
    
    (71
    )
    
    
    Net cash from financing activities
    
    
    5,597
    
    
    
    2,646Net increase in cash and cash equivalents
    
    
    4,781
    
    
    
    732Cash and cash equivalents at beginning of year
    
    
    5,235
    
    
    
    5,164Effect of foreign exchange rate changes
    
    
    (67
    )
    
    
    (661
    )Cash and cash equivalents at end of year
    
    
    9,949
    
    
    
    5,235
  14     GoIndustry plc annual report and accounts 2007
    
    www.goindustry.com




---



##### 



Notes to the consolidated financial statements
  1. General information
    2. Summary of significant accounting policies
   Basis of preparation
      (a)
    
    Standards, amendment and interpretations effective in 2007
 
    
    IFRS 7, Financial instruments: disclosures, and the complementary amendment to IAS 1,
Presentation of financial statements capital disclosures, introduce new disclosures relating
to financial instruments and do not have any impact on the classification and valuation of the
groups financial instruments.
 
    
    IFRIC 8, Scope of IFRS 2, requires consideration of transactions involving the issuance
of equity instruments, where the identifiable consideration received is less than the fair value of
the equity instruments issued in order to establish whether or not they fall within the scope of
IFRS 2. This standard does not have any impact on the groups financial statements.
 
    
    IFRIC 10, Interim financial reporting and impairment, prohibits the impairment losses
recognised in an interim period on goodwill and investments in equity instruments and in financial
assets carried at cost to be reversed at a subsequent balance sheet date. This standard does not
have any impact on the groups financial statements.
 (b)
    
    Standards, amendments and interpretations effective in 2007 but not relevant
  
    
    IFRIC 7, Applying the restatement approach under IAS 29,
financial reporting in hyperinflationary economies; and
 
    
    IFRIC 9 Re-assessment of embedded derivatives.
 www.goindustry.com
    
    GoIndustry plc annual report and accounts 2007     15




---



##### 



Notes to the consolidated financial statements
  (c)
    
    Standards, amendments and interpretations to existing standards that are not yet effective and
have not been early adopted by the group
  
    
    IAS 1 (amendment), Presentation of financial statements (effective from 1 January
2009). The amendment to the standard requires substantial changes to the presentation of the
primary statements. The amendment has not yet been endorsed by the European Union. Subject to its
endorsement the group will apply IAS 1 (amended) from 1 January 2009.
 
    
    IAS 23 (amendment), Borrowing costs (effective from 1 January 2009). The amendment to the
standard is still subject to endorsement by the European Union. It requires an entity to capitalise
borrowing costs directly attributable to the acquisition, construction or production of a
qualifying asset (one that takes a significant period of time to get ready for use or sale) as part
of the cost of the asset. The option of immediately expensing those borrowing costs will be
removed. Subject to its endorsement by the European Union the group will apply IAS 23 (amended)
from 1 January 2009.
 
    
    IAS 32 (amendment), Financial instruments: Presentation (effective from 1 January 2009).
An amendment has been made to the standard relating to puttable instruments and obligations arising
on liquidation. The amendment has not yet been endorsed by the European Union. Subject to its
endorsement the group will apply IAS 32 (amended) from 1 January 2009.
 
    
    IFRS 3 (amendment), Business combinations (effective from 1 July 2009), and consequential
amendments to IAS 27, Consolidated and separate financial statements, IAS 28, Investments in
associates, and IAS 31 Interests in Joint Ventures. The amendment to IFRS 3 revises the
application of the acquisition method of accounting for business combinations. The amendment has
not yet been endorsed by the European Union. Subject to its endorsement the group will adopt IFRS 3
(amendment) from 1 July 2009.
 
    
    IFRS 8, Operating segments (effective from 1 January 2009). IFRS 8 replaces IAS 14 and
aligns segment reporting with the requirements of the US standard SFAS 131, Disclosures about
segments of an enterprise and related information. The new standard requires a management
approach, under which segment information is presented on the same basis as that used for internal
reporting purposes. The group will apply IFRS 8 from 1 January 2009. The expected impact is still
being assessed in detail by management, but it appears likely that the number of reportable
segments, as well as the manner in which the segments are reported, will change in a manner that is
consistent with the internal reporting provided to the chief operating decision maker. As goodwill
is allocated to groups of cash-generating units based on segment level, the change will also
require management to reallocate goodwill to the newly identified operating segments. Management
does not anticipate that this will result in any material impairment to the goodwill balance.
 
    
    IFRIC 11, Group and treasury share transactions (effective from 1 January 2008). IFRIC 11
provides further clarification on the treatment of certain share based payment transactions. It
identifies whether a transaction is equity or cash settled where the shares involved are
transferred by a third party as well as giving guidance on the treatment in the accounts of a
subsidiary where its parent directly makes share based payments to the employees of the subsidiary.
The group will apply IFRIC 11 from 1 January 2008, but it is not expected to have any impact on the
groups financial statements.
 
    
    IFRIC 14, IAS 19   the limit on a defined benefit asset, minimum funding requirements and
their interaction
(effective from 1 January 2008). IFRIC 14 provides guidance on assessing the limit in IAS 19 on the
amount of a surplus that can be recognised as an asset. It also explains how the pension asset of
liability may be affected by a statutory or contractual minimum funding requirement. The
interpretation has not yet been endorsed by the European Union. Subject to its endorsement by the
European Union the group will apply IFRIC 14 from 1
January 2008, but it is not expected to have any impact on the groups financial statements.
 (d)
    
    Interpretations to existing standards that are not yet effective and not relevant for the
group:
  
    
    IFRIC 12, Service concession arrangements (effective from 1 January 2008). IFRIC 12
applies to contractual arrangements whereby a private sector operator participates in the
development, financing, operation and maintenance of infrastructure for public sector services. The
interpretation has not yet been endorsed by the European Union and is not relevant to the group
because none of the groups companies provide public sector services.
 
    
    IFRIC 13, Customer loyalty programmes (effective from 1 July 2008). IFRIC 13 clarifies
that where goods or services are sold together with a customer loyalty incentive (for example,
loyalty points or free products), the arrangement is a multiple-element arrangement and the
consideration receivable from the customer is allocated between the components of the arrangement
using fair values. The interpretation has not yet been endorsed by the European Union and is not
relevant to the group because none of the groups companies operate any loyalty programmes.
 16     GoIndustry plc annual report and accounts 2007
    
    www.goindustry.com




---



##### 



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 the income statement.
 (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: assets and liabilities for each
balance sheet presented are translated at the closing rate at the date of that balance sheet;
income and expenses for each income statement are translated at average exchange rates (unless this
average is not a reasonable approximation of the cumulative effect of the rates prevailing on the
transaction dates, in which case income and expenses are translated at the rate on the dates of the
transactions); and all resulting exchange differences are recognised as a separate component of
equity.On consolidation, exchange differences arising from the translation of the net investment in
foreign operations, and of borrowings are taken to shareholders equity. When a foreign operation
is partially disposed of or sold, exchange differences that were recorded in equity are recognised
in the income statement as part of the gain or loss on sale.Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as
assets and liabilities of the foreign entity and translated at the closing rate.
 Revenue recognition
  www.goindustry.com
    
    GoIndustry plc annual report and accounts 2007     17




---



##### 



Notes to the consolidated financial statements
     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.Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions
are charged or credited to equity in the statement of recognised income and expense (SoRIE) in the
period in which they arise.For defined contribution plans, the group pays contributions to publicly or privately administered
pension insurance plans on a mandatory, contractual or voluntary basis. The group has no further
payment obligations once the contributions have been paid. The contributions are recognised as
employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the
extent that a cash refund or a reduction in the future payments is available.
 (b)
    
    Share-based 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
entity revises its estimates of the number of options that are expected to vest. It recognises the
impact of the revision to original estimates, if any, in the income statement, with a corresponding
adjustment to equity.The proceeds received net of any directly attributable transaction costs are credited to share
capital (nominal value) and share premium when the options are exercised.
 Leases
  18      GoIndustry plc annual report and accounts 2007
    
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Current and deferred income tax
      Property, plant and equipment
    Buildings
    
    Period of leaseVehicles
    
    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)
    
    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
(two to three years).
 www.goindustry.com
    
    GoIndustry plc annual report and accounts 2007     19




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##### 



Notes to the consolidated financial statements
   Inventories
  Financial assets
  Trade and other receivables
   Cash and cash equivalents
   Trade payables
  Borrowings
   Provisions
  20     GoIndustry plc annual report and accounts 2007
    
    www.goindustry.com




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##### 



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.The effect of changing exchange rates is regularly monitored by the group and a sensitivity
analysis has been prepared to show the impact of changes in foreign exchange between Sterling, the
United States Dollar and the Euro. A decrease of five cents in the value of both the Dollar and the
Euro relative to Sterling would reduce consolidated profit before tax by £46 thousand (2006:
Increase £8 thousand) and reduce total equity by £1,673 thousand (2006: £95 thousand). An
increase of five cents in the value of both the Dollar and the Euro would increase consolidated
profit before tax by £48 thousand (2006: Decrease £8 thousand) and increase total equity by
£1,675 thousand (2006: £95 thousand).(b)
    
    Interest rate riskBorrowings of the group comprise convertible loan notes issued by GoIndustry plc and bank loans
held by GoIndustry USA Inc. and GoIndustry UK Limited. The group is exposed to interest rate risk
only on its bank borrowings as the convertible loan notes attract
interest at a fixed rate of 8%. Bank borrowings are used mainly to finance the
purchase of assets for resale and therefore are generally held only for a short time period. Before
the purchase of each group of assets a proposal is presented to an investment committee projecting
the profitability of the investment after the cost of finance and therefore decisions can be taken
based upon the prevailing interest rate at the time of investment. Due to the short time period for
which these assets are held the actual finance cost is only likely to fluctuate marginally from the
projection.A sensitivity analysis has been prepared to model the impact on profit before tax of a change in
the effective interest rate for bank borrowings. A +/- variance of 100 basis points in the
effective interest rate would have an impact of £32 thousand (2006: £46 thousand) on profit
before tax. Further details on interest rate risk exposure are contained in note 19.
 Credit risk
  Trade receivables management
  www.goindustry.com
    
    GoIndustry plc annual report and accounts 2007     21




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##### 



Notes to the consolidated financial statements
  Liquidity risk
   2007Effective
    
    
    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
    
    
    
    
    
    
    5,221
    
    
    
    
    
    
    
    5,221
    
    
    
    5,221
    
    
    
    
    
    
    
    Accrued income
    
    
    
    
    
    
    2,385
    
    
    
    
    
    
    
    2,385
    
    
    
    2,385
    
    
    
    
    
    
    
    Bank deposits
    
    
    6
    %
    
    
    9,949
    
    
    
    
    
    
    
    9,949
    
    
    
    9,949
    
    
    
    
    
    
    
    Held at amortised cost:Trade payables
    
    
    
    
    
    
    (2,476
    )
    
    
    
    
    
    
    (2,476
    )
    
    
    (2,476
    )
    
    
    
    
    
    
    Amounts due to clients
    
    
    
    
    
    
    (2,971
    )
    
    
    
    
    
    
    (2,971
    )
    
    
    (2,971
    )
    
    
    
    
    
    
    Bank loans and overdrafts
    
    
    9
    %
    
    
    (3,067
    )
    
    
    
    
    
    
    (3,067
    )
    
    
    (3,067
    )
    
    
    
    
    
    
    Mortgage secured over property
    
    
    9
    %
    
    
    (28
    )
    
    
    (3
    )
    
    
    (31
    )
    
    
    (31
    )
    
    
    
    
    
    
    Convertible loan notes
    
    
    8
    %
    
    
    (2,990
    )
    
    
    (319
    )
    
    
    (3,309
    )
    
    
    (120
    )
    
    
    (120
    )
    
    
    (3,069
    )6,023
    
    
    
    (322
    )
    
    
    5,701
    
    
    
    8,890
    
    
    
    (120
    )
    
    
    (3,069
    )
 2006Effective
    
    
    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
    
    
    
    
    
    
    5,715
    
    
    
    
    
    
    
    5,715
    
    
    
    5,715
    
    
    
    
    
    
    
    Accrued income
    
    
    
    
    
    
    2,679
    
    
    
    
    
    
    
    2,679
    
    
    
    2,679
    
    
    
    
    
    
    
    Bank deposits
    
    
    5
    %
    
    
    5,235
    
    
    
    
    
    
    
    5,235
    
    
    
    5,235
    
    
    
    
    
    
    
    Held at amortised cost:Trade payables
    
    
    
    
    
    
    (1,565
    )
    
    
    
    
    
    
    (1,565
    )
    
    
    (1,565
    )
    
    
    
    
    
    
    Amounts due to clients
    
    
    
    
    
    
    (3,498
    )
    
    
    
    
    
    
    (3,498
    )
    
    
    (3,498
    )
    
    
    
    
    
    
    Bank loans and overdrafts
    
    
    8
    %
    
    
    (3,913
    )
    
    
    
    
    
    
    (3,913
    )
    
    
    (3,913
    )
    
    
    
    
    
    
    Mortgage secured over property
    
    
    8
    %
    
    
    (88
    )
    
    
    (11
    )
    
    
    (99
    )
    
    
    (34
    )
    
    
    (34
    )
    
    
    (31
    )Convertible loan notes
    
    
    8
    %
    
    
    (2,990
    )
    
    
    (558
    )
    
    
    (3,548
    )
    
    
    (120
    )
    
    
    (120
    )
    
    
    (3,308
    )1,575
    
    
    
    (569
    )
    
    
    1,006
    
    
    
    4,499
    
    
    
    (154
    )
    
    
    (3,339
    )
 4. Critical accounting estimates and judgments
  (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 14 for further details.(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 20 for further details.
 22     GoIndustry plc annual report and accounts 2007
    
    www.goindustry.com




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##### 



(c)
    
    Equity settled share based paymentsThe group recognises a charge in the income statement for the fair value of equity settled
share based payments vesting in the year. Those instruments vesting in the period are principally
options over ordinary shares and the fair value of these at the balance sheet date is estimated
using the Black-Scholes model. This model is dependent upon several assumptions such as the risk
free interest rate and the expected life of the options. Actual experience may differ from that
estimated. Note 21 contains further details on these assumptions.(d)
    
    Direct profit margin for principal 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  geographical origin
  2007Continental
    
    
    NorthIn thousands of pounds
    
    UK
    
    
    Europe
    
    
    America
    
    
    Asia
    
    
    Unallocated
    
    
    ConsolidatedRevenue
    
    
    12,716
    
    
    
    7,062
    
    
    
    5,423
    
    
    
    3,904
    
    
    
    
    
    
    
    29,105Segment result
    
    
    2
    
    
    
    270
    
    
    
    18
    
    
    
    733
    
    
    
    
    
    
    
    1,023Equity settled share basedpayments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (866
    )
    
    
    (866
    )Reorganisation costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (369
    )
    
    
    (369
    )Operating loss
    
    
    2
    
    
    
    270
    
    
    
    18
    
    
    
    733
    
    
    
    (1,235
    )
    
    
    (212
    )Finance costs  net
    
    
    (114
    )
    
    
    (2
    )
    
    
    (254
    )
    
    
    (1
    )
    
    
    
    
    
    
    (371
    )Loss before income tax
    
    
    (112
    )
    
    
    268
    
    
    
    (236
    )
    
    
    732
    
    
    
    (1,235
    )
    
    
    (583
    )Income tax expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (233
    )Loss for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (816
    )Depreciation and amortisation
    
    
    (72
    )
    
    
    (116
    )
    
    
    (24
    )
    
    
    (53
    )
    
    
    
    
    
    
    (265
    )Segment assets
    
    
    7,266
    
    
    
    30,586
    
    
    
    6,866
    
    
    
    2,345
    
    
    
    
    
    
    
    47,063Segment liabilities
    
    
    4,792
    
    
    
    3,768
    
    
    
    6,996
    
    
    
    645
    
    
    
    
    
    
    
    16,201Unallocated liabilities:Convertible loan notes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,990
    
    
    
    2,990Total liabilities
    
    
    4,792
    
    
    
    3,768
    
    
    
    6,996
    
    
    
    645
    
    
    
    2,990
    
    
    
    19,191Capital expenditure:Property, plant and equipment
    
    
    54
    
    
    
    218
    
    
    
    58
    
    
    
    102
    
    
    
    
    
    
    
    432Intangible assets
    
    
    25
    
    
    
    99
    
    
    
    20
    
    
    
    9
    
    
    
    
    
    
    
    153
 www.goindustry.com
    
    GoIndustry plc annual report and accounts 2007     23




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##### 



Notes to the consolidated financial statements
  2006(restated seeContinental
    
    
    North
    
    
    
    
    
    
    
    
    
    
    note 2)In thousands of pounds
    
    UK
    
    
    Europe
    
    
    America
    
    
    Asia
    
    
    Unallocated
    
    
    ConsolidatedRevenue
    
    
    15,258
    
    
    
    7,309
    
    
    
    9,347
    
    
    
    2,227
    
    
    
    
    
    
    
    34,141Segment result
    
    
    1,065
    
    
    
    108
    
    
    
    (610
    )
    
    
    283
    
    
    
    
    
    
    
    846Equity settled share based
payments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (517
    )
    
    
    (517
    )Reorganisation costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (349
    )
    
    
    (349
    )Operating profit
    
    
    1,065
    
    
    
    108
    
    
    
    (610
    )
    
    
    283
    
    
    
    (866
    )
    
    
    (20
    )Finance costs  net
    
    
    (157
    )
    
    
    (127
    )
    
    
    (271
    )
    
    
    (12
    )
    
    
    
    
    
    
    (567
    )Loss before income tax
    
    
    908
    
    
    
    (19
    )
    
    
    (881
    )
    
    
    271
    
    
    
    (866
    )
    
    
    (587
    )Income tax expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (56
    )Loss for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (643
    )Depreciation and amortisation
    
    
    62
    
    
    
    150
    
    
    
    31
    
    
    
    40
    
    
    
    
    
    
    
    283Segment assets
    
    
    12,833
    
    
    
    16,914
    
    
    
    8,376
    
    
    
    3,288
    
    
    
    
    
    
    
    41,411Segment liabilities
    
    
    5,365
    
    
    
    2,963
    
    
    
    7,175
    
    
    
    1,325
    
    
    
    
    
    
    
    16,828Unallocated liabilities:Convertible loan notes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,990
    
    
    
    2,990Total liabilities
    
    
    5,365
    
    
    
    2,963
    
    
    
    7,175
    
    
    
    1,325
    
    
    
    2,990
    
    
    
    19,818Capital expenditure:Property, plant and equipment
    
    
    113
    
    
    
    81
    
    
    
    12
    
    
    
    39
    
    
    
    
    
    
    
    245Intangible assets
    
    
    84
    
    
    
    59
    
    
    
    8
    
    
    
    29
    
    
    
    
    
    
    
    180
  Segmental analysis  class of business
  2007ProfessionalIn thousands of pounds
    
    Commission
    
    
    Principal
    
    
    services
    
    
    TotalRevenue
    
    
    15,126
    
    
    
    10,341
    
    
    
    3,638
    
    
    
    29,105Segment assets
    
    
    29,435
    
    
    
    9,567
    
    
    
    8,061
    
    
    
    47,063Capital expenditure:Property, plant and equipment
    
    
    270
    
    
    
    88
    
    
    
    74
    
    
    
    432Intangible assets
    
    
    96
    
    
    
    31
    
    
    
    26
    
    
    
    153
 24     GoIndustry plc annual report and accounts 2007
    
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2006ProfessionalIn thousands of pounds
    
    Commission
    
    
    Principal
    
    
    services
    
    
    TotalRevenue
    
    
    17,909
    
    
    
    12,770
    
    
    
    3,462
    
    
    
    34,141Segment assets
    
    
    21,722
    
    
    
    15,490
    
    
    
    4,199
    
    
    
    41,411Capital expenditure:Property, plant and equipment
    
    
    129
    
    
    
    91
    
    
    
    25
    
    
    
    245Intangible assets
    
    
    94
    
    
    
    68
    
    
    
    18
    
    
    
    180
 6. Exceptional items
 In thousands of pounds
    
    2007
    
    
    2006Reorganisation costs
    
    
    369
    
    
    
    349
 Reorganisation costs
  7. Operating profit / (loss)
 In thousands of pounds
    
    2007
    
    
    2006Operating profit / (loss) is stated after charging / (crediting):Cost of inventories recognised as an expense (included in cost of sales)
    
    
    6,429
    
    
    
    8,532Depreciation of property plant and equipment
    
    
    240
    
    
    
    248Amortisation of intangible assets
    
    
    25
    
    
    
    35Rentals under operating leases
    
    
    1,239
    
    
    
    775(Gain) on the translation of foreign currencies
    
    
    (210
    )
    
    
    (139
    )Auditor remuneration:Fees payable to the companys auditor for the audit of parent company and
consolidated financial statements
    
    
    64
    
    
    
    60Fees payable to the companys auditor and its associates for other services:The audit of the companys subsidiaries pursuant to legislation
    
    
    105
    
    
    
    100Tax services
    
    
    61
    
    
    
    57Other services
    
    
    12
    
    
    
    242
    
    
    
    217
 8. Employee benefit expense
 In thousands of pounds
    
    2007
    
    
    2006(restated seenote 2)Wages and salaries
    
    
    10,979
    
    
    
    12,489Social security costs
    
    
    1,226
    
    
    
    1,143Pension costs  defined benefit plan (note 20)
    
    
    172
    
    
    
    248Pension costs  defined contribution plans
    
    
    447
    
    
    
    442Share options granted to directors and employees (note 21)
    
    
    866
    
    
    
    51713,690
    
    
    
    14,839
 www.goindustry.com
    
    GoIndustry plc annual report and accounts 2007     25




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##### 



Notes to the consolidated financial statements
   Number
    
    
    NumberSales
    
    
    82
    
    
    
    60Operations
    
    
    176
    
    
    
    133Central services
    
    
    20
    
    
    
    48278
    
    
    
    241
   9. Directors emoluments
  In thousands of pounds
    
    2007
    
    
    2006Emoluments
    
    
    513
    
    
    
    488Pension contributions-defined contribution
    
    
    33
    
    
    
    20546
    
    
    
    508
   10. Finance income and costs
 In thousands of pounds
    
    2007
    
    

2006(restated seenote 2)Finance income:Interest income on short-term bank deposits
    
    
    405
    
    
    
    199Interest expense:Bank borrowings
    
    
    (569
    )
    
    
    (662
    )Convertible loan notes
    
    
    (207
    )
    
    
    (104
    )(371
    )
    
    
    (567
    )
 11. Income tax expense
 In thousands of pounds
    
    2007
    
    
    2006Current tax:Adjustments to prior year tax charges
    
    
    (2
    )
    
    
    6Overseas corporation tax on profits in the year
    
    
    235
    
    
    
    50233
    
    
    
    56
 26     GoIndustry plc annual report and accounts 2007
    
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##### 



In thousands of pounds
    
    2007
    
    
    2006Loss before income tax
    
    
    (583
    )
    
    
    (587
    )Tax at the UK corporation tax rate of 30% (2006: 30%)
    
    
    (175
    )
    
    
    (176
    )Effect of lower income tax rate of other countries
    
    
    (10
    )
    
    
    (133
    )Adjustment in respect of current income tax of previous years
    
    
    (2
    )
    
    
    6Deferred tax not recognised
    
    
    51
    
    
    
    308Tax losses not utilised / (utilised)
    
    
    84
    
    
    
    (133
    )Share based payments expense not deductible
    
    
    166
    
    
    
    161Expenditure not allowable for income tax purposes
    
    
    119
    
    
    
    23233
    
    
    
    56
  12. Earnings per share
  In thousands of pounds
    
    2007
    
    

2006(restated seenote 2)Loss attributable to equity holders of the company (thousands of pounds)
    
    
    (795
    )
    
    
    (700
    )Weighted average number of ordinary shares in issue (thousands)
    
    
    237,994
    
    
    
    186,462Basic loss per share (pence per share)
    
    
    (0.3p
    )
    
    
    (0.4p
    )
  2007
    
    
    2006Profit after tax before exceptionals and share based payments (thousands of pounds)
    
    
    419
    
    
    
    223Weighted average number of ordinary shares in issue (thousands)
    
    
    237,994
    
    
    
    186,462Adjusted basic profit per share (pence per share)
    
    
    0.2p
    
    
    
    0.1p
  www.goindustry.com
    
    GoIndustry plc annual report and accounts 2007     27




---



##### 



Notes to the consolidated financial statements
  13. Property, plant and equipment
 Furniture,fittings andIn thousands of pounds
    
    Buildings
    
    
    Vehicles
    
    
    equipment
    
    
    TotalCost:At 6 January 2006
    
    
    694
    
    
    
    270
    
    
    
    1,908
    
    
    
    2,872Exchange differences
    
    
    
    
    
    
    
    
    
    
    (57
    )
    
    
    (57
    )Additions
    
    
    7
    
    
    
    113
    
    
    
    125
    
    
    
    245Disposals
    
    
    
    
    
    
    (28
    )
    
    
    (381
    )
    
    
    (409
    )At 1 January 2007
    
    
    701
    
    
    
    355
    
    
    
    1,595
    
    
    
    2,651Exchange differences
    
    
    60
    
    
    
    18
    
    
    
    37
    
    
    
    115Additions
    
    
    54
    
    
    
    114
    
    
    
    264
    
    
    
    432Disposals
    
    
    
    
    
    
    (55
    )
    
    
    (23
    )
    
    
    (78
    )At 31 December 2007
    
    
    815
    
    
    
    432
    
    
    
    1,873
    
    
    
    3,120Accumulated depreciation:At 6 January 2006:
    
    
    208
    
    
    
    150
    
    
    
    1,522
    
    
    
    1,880Exchange differences
    
    
    
    
    
    
    
    
    
    
    (35
    )
    
    
    (35
    )Charge for the year
    
    
    30
    
    
    
    64
    
    
    
    154
    
    
    
    248Disposals
    
    
    
    
    
    
    (20
    )
    
    
    (351
    )
    
    
    (371
    )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 31 December 2007
    
    
    290
    
    
    
    220
    
    
    
    1,452
    
    
    
    1,962Net book value:At 31 December 2007
    
    
    525
    
    
    
    212
    
    
    
    421
    
    
    
    1,158At 1 January 2007
    
    
    463
    
    
    
    161
    
    
    
    305
    
    
    
    929At 6 January 2006
    
    
    486
    
    
    
    120
    
    
    
    386
    
    
    
    992
 28     GoIndustry plc annual report and accounts 2007
    
    www.goindustry.com




---



##### 



14. Intangible assets
 Software andsystemsIn thousands of pounds
    
    Goodwill
    
    
    development
    
    
    TotalCost:At 6 January 2006
    
    
    24,825
    
    
    
    2,165
    
    
    
    26,990Exchange differences
    
    
    
    
    
    
    (71
    )
    
    
    (71
    )Additions
    
    
    75
    
    
    
    105
    
    
    
    180Disposals
    
    
    
    
    
    
    (210
    )
    
    
    (210
    )At 1 January 2007
    
    
    24,900
    
    
    
    1,989
    
    
    
    26,889Exchange differences
    
    
    
    
    
    
    16
    
    
    
    16Additions
    
    
    
    
    
    
    153
    
    
    
    153At 31 December 2007
    
    
    24,900
    
    
    
    2,158
    
    
    
    27,058Accumulated amortisation:At 6 January 2006:
    
    
    
    
    
    
    2,129
    
    
    
    2,129Charge for the year
    
    
    
    
    
    
    35
    
    
    
    35Disposals
    
    
    
    
    
    
    (210
    )
    
    
    (210
    )At 1 January 2007
    
    
    
    
    
    
    1,954
    
    
    
    1,954Exchange differences
    
    
    
    
    
    
    13
    
    
    
    13Charge for the year
    
    
    
    
    
    
    25
    
    
    
    25At 31 December 2007
    
    
    
    
    
    
    1,992
    
    
    
    1,992Net book value:At 31 December 2007
    
    
    24,900
    
    
    
    166
    
    
    
    25,066At 1 January 2007
    
    
    24,900
    
    
    
    35
    
    
    
    24,935At 6 January 2006
    
    
    24,825
    
    
    
    36
    
    
    
    24,861
   15. Trade and other receivables
 In thousands of pounds
    
    2007
    
    
    2006Trade receivables
    
    
    5,221
    
    
    
    5,715Prepayments and accrued income
    
    
    2,962
    
    
    
    3,117Other receivables
    
    
    1,819
    
    
    
    39710,002
    
    
    
    9,229
 16. Cash and cash equivalents
 In thousands of pounds
    
    2007
    
    
    2006Own cash on hand and at bank
    
    
    3,850
    
    
    
    4,376Short-term bank deposits
    
    
    2,457
    
    
    
    826Monies held under guarantee
    
    
    3,642
    
    
    
    339,949
    
    
    
    5,235
 www.goindustry.com
    
    GoIndustry plc annual report and accounts 2007     29




---



##### 



Notes to the consolidated financial statements
  17. Trade and other payables
 In thousands of pounds
    
    2007
    
    
    2006Trade payables
    
    
    2,476
    
    
    
    1,565Amounts due to clients
    
    
    2,971
    
    
    
    3,498Accrued profit share payable
    
    
    
    
    
    
    514Social security and other taxes
    
    
    1,094
    
    
    
    3,094Accrued expenses
    
    
    3,049
    
    
    
    4449,590
    
    
    
    9,115
 18. Provisions
 In thousands of pounds
    
    2007
    
    
    2006Provision for legal claims
    
    
    
    
    
    
    84Other
    
    
    
    
    
    
    54
    
    
    
    138
  19. Borrowings
 In thousands of pounds
    
    2007
    
    
    2006CurrentBank loans and overdrafts
    
    
    3,067
    
    
    
    3,913Mortgage secured over property
    
    
    25
    
    
    
    


Non-currentMortgage secured over property
    
    
    
    
    
    
    88Convertible loan notes
    
    
    2,990
    
    
    
    2,990Total borrowings
    
    
    6,082
    
    
    
    6,991
  Floating rate:Expiring within one year
    
    
    3,092
    
    
    
    3,913Expiring beyond one year
    
    
    
    
    
    
    88Fixed rate:Expiring beyond one year
    
    
    2,990
    
    
    
    2,9906,082
    
    
    
    6,991
  Pounds sterling
    
    
    3,290
    
    
    
    4,291Euros
    
    
    25
    
    
    
    88United States dollar
    
    
    2,767
    
    
    
    2,6126,082
    
    
    
    6,991
   30     GoIndustry plc annual report and accounts 2007
    
    www.goindustry.com




---



##### 



20. Retirement benefit obligations
      In thousands of pounds
    
    2007
    
    
    2006(restated)Balance sheet obligations for:Pension benefits
    
    
    3,519
    
    
    
    3,574Income statement charge for (note 8):Pension benefits
    
    
    172
    
    
    
    248
  In thousands of pounds
    
    2007
    
    
    2006Present value of funded obligations
    
    
    12,696
    
    
    
    12,147Fair value of plan assets
    
    
    (9,177
    )
    
    
    (8,573
    )Liability in the balance sheet
    
    
    3,519
    
    
    
    3,574
  In thousands of pounds
    
    2007
    
    
    2006Beginning of year
    
    
    12,147
    
    
    
    13,098Current service cost
    
    
    46
    
    
    
    55Interest cost
    
    
    634
    
    
    
    625Actuarial loss / (gain) on plan liabilities
    
    
    251
    
    
    
    (1,412
    )Benefits paid
    
    
    (382
    )
    
    
    (219
    )End of year
    
    
    12,696
    
    
    
    12,147
 www.goindustry.com
    
    GoIndustry plc annual report and accounts 2007     31




---



##### 



Notes to the consolidated financial statements
   In thousands of pounds
    
    2007
    
    
    2006Fair value of scheme assets at start of year
    
    
    8,573
    
    
    
    7,756Expected return on scheme assets
    
    
    508
    
    
    
    432Employer contributions
    
    
    453
    
    
    
    453Benefits paid
    
    
    (382
    )
    
    
    (219
    )Actuarial gain on scheme assets
    
    
    25
    
    
    
    151Fair value of scheme assets at end of year
    
    
    9,177
    
    
    
    8,573
   In thousands of pounds
    
    2007
    
    
    2006(restated)Current service cost
    
    
    46
    
    
    
    55Interest on obligation
    
    
    634
    
    
    
    625Expected return on scheme assets
    
    
    (508
    )
    
    
    (432
    )Total, included in staff costs (note 8)
    
    
    172
    
    
    
    248
  In thousands of pounds
    
    2007
    
    
    2007
    
    
    2006
    
    
    2006Percentage
    
    
    
    
    
    
    PercentageEquity instruments
    
    
    5,221
    
    
    
    57
    %
    
    
    4,944
    
    
    
    58
    %Debt instruments
    
    
    3,806
    
    
    
    41
    %
    
    
    3,625
    
    
    
    42
    %Other
    
    
    150
    
    
    
    2
    %
    
    
    4
    
    
    
    Pension benefits
    
    
    9,177
    
    
    
    100
    %
    
    
    8,573
    
    
    
    100
    %
  In thousands of pounds
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Present value of defined benefit obligation
    
    
    12,696
    
    
    
    12,147
    
    
    
    13,098
    
    
    
    11,543Fair value of plan assets
    
    
    9,177
    
    
    
    8,573
    
    
    
    7,756
    
    
    
    6,345Deficit
    
    
    3,519
    
    
    
    3,574
    
    
    
    5,342
    
    
    
    5,198Experience adjustments on plan liabilities
    
    
    (251
    )
    
    
    1,412
    
    
    
    (1,129
    )
    
    
    Experience adjustments on plan assets
    
    
    25
    
    
    
    151
    
    
    
    715
    
    
    
    
 32     GoIndustry plc annual report and accounts 2007
    
    www.goindustry.com




---



##### 



2007
    
    
    2006Percentage
    
    
    PercentageDiscount rate
    
    
    5.8
    %
    
    
    5.3
    %Expected return on scheme assets
    
    
    6.0
    %
    
    
    5.9
    %Rate of increase in salaries
    
    
    
    
    
    
    Price inflation
    
    
    3.3
    %
    
    
    3.0
    %Pension increases:Pensions accrued before 6 April 1997
    
    
    
    
    
    
    Pensions accrued after 6 April 1997
    
    
    3.3
    %
    
    
    3.0
    %
   2007
    
    
    2006Male
    
    
    87.7
    
    
    
    84.6Female
    
    
    90.4
    
    
    
    87.7
  2007
    
    
    2006Male
    
    
    90.8
    
    
    
    85.9Female
    
    
    93.4
    
    
    
    88.9
 21. Share capital and premium
  Numberof shares
    
    
    Ordinary
    
    
    ShareIn thousands of pounds
    
    Thousands
    
    
    shares
    
    
    premiumAt 6 January 2006
    
    
    187,133
    
    
    
    9,357
    
    
    
    3,462Placing of 5p ordinary sharesProceeds from shares issued
    
    
    12,000
    
    
    
    600
    
    
    
    1,500At 31 December 2006
    
    
    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 31 December 2007
    
    
    264,998
    
    
    
    13,250
    
    
    
    9,578
  www.goindustry.com
    
    GoIndustry plc annual report and accounts 2007     33




---



##### 



Notes to the consolidated financial statements
   In thousands of pounds
    
    2007
    
    
    2006Authorised ordinary shares of 5p each 330,000 thousand (2006: 330,000 thousand)
    
    
    16,500
    
    
    
    16,500Equity ordinary shares to be issued of 5p each Nil (2006: 25,317 thousand)
    
    
    
    
    
    
    1,266
 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 6 January 2006
    
    
    18p
    
    
    
    4,674
    
    
    
    31p
    
    
    
    12,454Outstanding at 31 December 2006
    
    
    18p
    
    
    
    4,674
    
    
    
    31p
    
    
    
    12,454Granted
    
    
    
    
    
    
    
    
    
    
    11p
    
    
    
    15,215Exercised
    
    
    
    
    
    
    
    
    
    
    15p
    
    
    
    (105
    )Lapsed or forfeited
    
    
    18p
    
    
    
    (4,674
    )
    
    
    
    
    
    
    Outstanding at 31 December 2007
    
    
    
    
    
    
    
    
    
    
    22p
    
    
    
    27,564Exercisable at 31 December 2007
    
    
    
    
    
    
    
    
    
    
    23p
    
    
    
    24,060Exercisable at 31 December 2006
    
    
    18p
    
    
    
    4,674
    
    
    
    31p
    
    
    
    11,084
  At 31 December 2007:Weighted average remaining contractual life
    
    
    
    
    
    
    6.5At 31 December 2006:Weighted average remaining contractual life
    
    
    1.0
    
    
    
    4.5
  34     GoIndustry plc annual report and accounts 2007
    
    www.goindustry.com




---



##### 



Pence
    
    
    Years
    
    
    2007
    
    
    2006Thousands
    
    
    Thousands19 July 2007
    
    
    5p
    
    
    
    
    
    
    10 yrs following end of service
    
    
    
    4,476
    
    
    
    19 July 2007
    
    
    5p
    
    
    
    
    
    
    180 days following end
of service
    
    
    
    1,000
    
    
    
    19 July 2007
    
    
    17p
    
    
    
    
    
    
    
    10
    
    
    
    600
    
    
    
    19 July 2007
    
    
    18p
    
    
    3 yrs of service
    
    
    
    10
    
    
    
    1,000
    
    
    
    19 July 2007
    
    
    18.8p
    
    
    3 yrs of service
    
    
    
    10
    
    
    
    1,675
    
    
    
    04 March 2006
    
    
    12.8p
    
    
    
    
    
    
    2 yrs following end of service
    
    
    
    124
    
    
    
    12404 March 2006
    
    
    12.8p
    
    
    
    
    
    
    
    10
    
    
    
    3,037
    
    
    
    1,37001 April 2005
    
    
    10p
    
    
    
    
    
    
    
    7
    
    
    
    3,000
    
    
    
    3,00031 December 2004
    
    
    12.8p
    
    
    
    
    
    
    
    10
    
    
    
    2,485
    
    
    
    2,48503 October 2003
    
    
    22.1p
    
    
    
    
    
    
    
    5
    
    
    
    120
    
    
    
    12003 October 2003
    
    
    54.6p
    
    
    
    
    
    
    
    10
    
    
    
    142
    
    
    
    12401 May 2003
    
    
    15p
    
    
    
    
    
    
    
    8
    
    
    
    110
    
    
    
    11031 October 2002
    
    
    27.2p
    
    
    
    
    
    
    
    10
    
    
    
    1,126
    
    
    
    1,12631 October 2002
    
    
    54.4p
    
    
    
    
    
    
    
    10
    
    
    
    1,767
    
    
    
    1,76719 October 2002
    
    
    44.7p
    
    
    
    
    
    
    
    10
    
    
    
    4,080
    
    
    
    4,08031 December 2001
    
    
    15p
    
    
    
    
    
    
    
    9
    
    
    
    634
    
    
    
    63401 October 2001
    
    
    12.8p
    
    
    
    
    
    
    
    10
    
    
    
    289
    
    
    
    28901 October 2001
    
    
    22.4p
    
    
    
    
    
    
    
    10
    
    
    
    1,076
    
    
    
    1,07601 September 2001
    
    
    12.8p
    
    
    
    
    
    
    
    10
    
    
    
    27
    
    
    
    2701 September 2001
    
    
    35.4p
    
    
    
    
    
    
    
    10
    
    
    
    161
    
    
    
    16101 February 2001
    
    
    141.6p
    
    
    
    
    
    
    
    10
    
    
    
    304
    
    
    
    30409 October 2000
    
    
    12.8p
    
    
    
    
    
    
    
    10
    
    
    
    159
    
    
    
    15911 July 2000
    
    
    44.1p
    
    
    
    
    
    
    
    10
    
    
    
    172
    
    
    
    17227,564
    
    
    
    17,128
   Valuation method
    
    Black-Scholes
    
    
    Black-ScholesShare price at the date of grant
    
    
    18p
    
    
    
    17pExpected volatility
    
    
    38.5
    %
    
    
    27.2
    %Expected option life at grant date (years)
    
    
    3
    
    
    
    3Risk-free interest rate
    
    
    5.8
    %
    
    
    4.6
    %Fair value per option at the grant date
    
    
    11p
    
    
    
    8p
  www.goindustry.com
    
    GoIndustry plc annual report and accounts 2007     35




---



##### 



Notes to the consolidated financial statements
  22. Own shares held in trust
  In thousands of poundsAt 6 January 2006
    
    
    (1,370
    )Equity settled share based payments
    
    
    325At 31 December 2006
    
    
    (1,045
    )Issue of 5p ordinary shares to satisfy future share based payment obligation
    
    
    (66
    )Equity settled share based payments
    
    
    69At 31 December 2007
    
    
    (1,042
    )
  23. Other reserves
 Foreign
    
    
    ShareAcquisition
    
    
    currency
    
    
    optionsIn thousands of pounds
    
    reserve
    
    
    reserve
    
    
    reserve
    
    
    TotalAt 6 January 2006
    
    
    47,649
    
    
    
    (79
    )
    
    
    160
    
    
    
    47,730Currency translation differences
    
    
    
    
    
    
    (661
    )
    
    
    
    
    
    
    (661
    )Share based payments
    
    
    
    
    
    
    
    
    
    
    192
    
    
    
    192At 31 December 2006
    
    
    47,649
    
    
    
    (740
    )
    
    
    352
    
    
    
    47,261Currency translation differences
    
    
    
    
    
    
    (67
    )
    
    
    
    
    
    
    (67
    )Share based payments
    
    
    
    
    
    
    
    
    
    
    797
    
    
    
    797At 31 December 2007
    
    
    47,649
    
    
    
    (807
    )
    
    
    1,149
    
    
    
    47,991
  24. Accumulated losses
 In thousands of poundsAt 6 January 2006
    
    
    (41,813
    )Actuarial gain on defined benefit pension scheme
    
    
    1,545Loss for the year
    
    
    (700
    )At 31 December 2006
    
    
    (40,968
    )Actuarial loss on defined benefit pension scheme
    
    
    (226
    )Loss for the year
    
    
    (795
    )At 31 December 2007
    
    
    (41,989
    )
 36     GoIndustry plc annual report and accounts 2007
    
    www.goindustry.com




---



##### 



25. Operating lease arrangements
 The group as lessee:
  In thousands of pounds
    
    Land and 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
 In thousands of pounds
    
    Land and buildings
    
    
    Vehicles
    
    
    Other
    
    
    TotalAmounts falling due:Within one year
    
    
    548
    
    
    
    149
    
    
    
    23
    
    
    
    720More than one but less than five years
    
    
    828
    
    
    
    219
    
    
    
    7
    
    
    
    1,054More than five years
    
    
    138
    
    
    
    
    
    
    
    
    
    
    
    138As at 31 December 2006
    
    
    1,514
    
    
    
    368
    
    
    
    30
    
    
    
    1,912
  26. 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 (Thailand) Limited
    
    Thailand
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry Asia Limited
    
    Hong Kong
    
    
    100
    %
    
    
    100
    %
    
    Holding companyGoIndustry (Hong Kong) Limited
    
    Hong Kong
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry (Malaysia) Sdn. Bhd.
    
    Malaysia
    
    
    70
    %
    
    
    70
    %
    
    Asset sales and servicesGoIndustry (Philippines) Inc.
    
    Philippines
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry Quipo Auctioneers and
Valuers PVT. Limited
    
    India
    
    
    50
    %
    
    
    50
    %
    
    Asset sales and servicesKorea GoIndustry Co. Limited
    
    South Korea
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry (Australia)
    
    Australia
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry NV
    
    Belgium
    
    
    100
    %
    
    
    100
    %
    
    Holding companyGoIndustry Austria GmbH
    
    Austria
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry Germany GmbH
    
    Germany
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and servicesGoIndustry Benelux NV
    
    Belgium
    
    
    76
    %
    
    
    76
    %
    
    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 Nordic AB
    
    Sweden
    
    
    100
    %
    
    
    100
    %
    
    Asset sales and services
 27. Events after the balance sheet date
  www.goindustry.com
    
    GoIndustry plc annual report and accounts 2007     37




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##### 



Company balance sheet
  In thousands of pounds
    
    Note
    
    
    2007
    
    
    2006Non-current assetsIntangible assets
    
    
    3
    
    
    
    8
    
    
    
    Investments in subsidiaries
    
    
    4
    
    
    
    30,731
    
    
    
    27,83530,739
    
    
    
    27,835Current assetsTrade and other receivables
    
    
    5
    
    
    
    8,429
    
    
    
    8,282Cash and cash equivalents
    
    
    6
    
    
    
    4,526
    
    
    
    1,37812,955
    
    
    
    9,660Total assets
    
    
    
    
    
    
    43,694
    
    
    
    37,495Current liabilitiesTrade and other payables
    
    
    7
    
    
    
    488
    
    
    
    1,017488
    
    
    
    1,017Non-current liabilitiesConvertible loan notes
    
    
    8
    
    
    
    2,990
    
    
    
    2,9902,990
    
    
    
    2,990Total liabilities
    
    
    
    
    
    
    3,478
    
    
    
    4,007Net assets
    
    
    
    
    
    
    40,216
    
    
    
    33,488Capital and reserves attributable to equity holders of the companyCalled-up equity share capital
    
    
    9
    
    
    
    13,250
    
    
    
    9,957Share premium
    
    
    9
    
    
    
    9,578
    
    
    
    4,962Shares to be issued
    
    
    
    
    
    
    
    
    
    
    1,266Own shares held in trust
    
    
    10
    
    
    
    (66
    )
    
    
    Other reserves
    
    
    11
    
    
    
    18,592
    
    
    
    17,808Accumulated losses
    
    
    12
    
    
    
    (1,138
    )
    
    
    (505
    )Total equity
    
    
    
    
    
    
    40,216
    
    
    
    33,488
   John Allbrook
    
    David HorneChief Executive Officer
    
    Chief Financial Officer
 38     GoIndustry plc annual report and accounts 2007
    
    www.goindustry.com




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##### 



Company cash flow statement
 In thousands of pounds
    
    Note
    
    
    2007
    
    
    2006Cash flows from operating activitiesProfit / (loss) before income tax
    
    
    
    
    
    
    (633
    )
    
    
    (381
    )Adjustments for:Share based payments
    
    
    
    
    
    
    784
    
    
    
    Net interest expense
    
    
    
    
    
    
    3
    
    
    
    15Changes in working capital:(Increase) in trade and other receivables
    
    
    
    
    
    
    (3,465
    )
    
    
    (4,965
    )Increase in trade and other payables
    
    
    
    
    
    
    505
    
    
    
    (16
    )Operating cash flows before interest and taxes
    
    
    
    
    
    
    (2,806
    )
    
    
    (5,347
    )Interest paid
    
    
    
    
    
    
    (261
    )
    
    
    (172
    )Interest received
    
    
    
    
    
    
    258
    
    
    
    157Net cash used in operating activities
    
    
    
    
    
    
    (2,809
    )
    
    
    (5,362
    )Cash flows from investing activitiesInvestment in subsidiary undertakings
    
    
    
    
    
    
    (612
    )
    
    
    Purchases of intangible assets
    
    
    
    
    
    
    (8
    )
    
    
    Net cash used in investing activities
    
    
    
    
    
    
    (620
    )
    
    
    Cash flows from financing activitiesProceeds on issue of shares
    
    
    
    
    
    
    6,577
    
    
    
    2,100Proceeds on issue of convertible loan notes
    
    
    
    
    
    
    
    
    
    
    2,990Net cash from financing activities
    
    
    
    
    
    
    6,577
    
    
    
    5,090Net increase / (decrease) in cash and cash equivalents
    
    
    
    
    
    
    3,148
    
    
    
    (272
    )Cash and cash equivalents at beginning of year
    
    
    
    
    
    
    1,378
    
    
    
    1,640Effect of foreign exchange rate changes
    
    
    
    
    
    
    
    
    
    
    10Cash and cash equivalents at end of year
    
    
    
    
    
    
    4,526
    
    
    
    1,378
  www.goindustry.com
    
    GoIndustry plc annual report and accounts 2007     39




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##### 



Notes to the company financial statements
  1. Summary of significant accounting policies
 Basis of preparation
 The company only financial statements contain the accounts of GoIndustry plc.
   Loss for the year
  Intangible assets
 (a)
    
    Computer software and systems developmentAcquired computer software licences are capitalised on the basis of the costs incurred to acquire
and bring to use the specific software. These costs are amortised over their estimated useful lives
(two to three years).
 Investments
  Trade and other receivables
 
 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.
 40     GoIndustry plc annual report and accounts 2007
    
    www.goindustry.com




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##### 



(b)
    
    Interest rate riskThe borrowings of the company are at a fixed interest rate of 8% and therefore the company is not
subject to interest rate risk on these.
 Credit risk
  Liquidity risk
   2007Effective
    
    
    Recognised
    
    
    Contractual
    
    
    Totalinterest
    
    
    asset/
    
    
    interest
    
    
    Contractual
    
    
    6 months
    
    
    6-12
    
    
    1-5In thousands of pounds
    
    rate
    
    
    (liability)
    
    
    payable
    
    
    cash flow
    
    
    or less
    
    
    months
    
    
    yearsBank deposits
    
    
    6
    %
    
    
    4,526
    
    
    
    
    
    
    
    4,526
    
    
    
    4,022
    
    
    
    
    
    
    
    504Trade payables
    
    
    
    
    
    
    (9
    )
    
    
    
    
    
    
    (9
    )
    
    
    (9
    )
    
    
    
    
    
    
    Convertible loan notes
    
    
    8
    %
    
    
    (2,990
    )
    
    
    (319
    )
    
    
    (3,309
    )
    
    
    (120
    )
    
    
    (120
    )
    
    
    (3,069
    )1,527
    
    
    
    (319
    )
    
    
    1,208
    
    
    
    3,893
    
    
    
    (120
    )
    
    
    (2,565
    )
 2006Effective
    
    
    Recognised
    
    
    Contractual
    
    
    Totalinterest
    
    
    asset/
    
    
    interest
    
    
    Contractual
    
    
    6 months
    
    
    6-12
    
    
    1-5In thousands of pounds
    
    rate
    
    
    (liability)
    
    
    payable
    
    
    cash flow
    
    
    or less
    
    
    months
    
    
    yearsBank deposits
    
    
    5
    %
    
    
    1,378
    
    
    
    
    
    
    
    1,378
    
    
    
    1,378
    
    
    
    
    
    
    
    Trade payables
    
    
    
    
    
    
    (63
    )
    
    
    
    
    
    
    (63
    )
    
    
    (63
    )
    
    
    
    
    
    
    Convertible loan notes
    
    
    8
    %
    
    
    (2,990
    )
    
    
    (558
    )
    
    
    (3,548
    )
    
    
    (120
    )
    
    
    (120
    )
    
    
    (3,308
    )(1,675
    )
    
    
    (558
    )
    
    
    (2,233
    )
    
    
    1,195
    
    
    
    (120
    )
    
    
    (3,308
    )
 3. Intangible assets
 Software andsystemsIn thousands of pounds
    
    development
    
    
    TotalCost:At 6 January 2006 and 1 January 2007
    
    
    
    
    
    
    Additions
    
    
    10
    
    
    
    10At 31 December 2007
    
    
    10
    
    
    
    10Accumulated depreciation:At 6 January 2006 and 1 January 2007
    
    
    
    
    
    
    Charge for the year
    
    
    2
    
    
    
    2At 31 December 2007
    
    
    2
    
    
    
    2Net book value:At 31 December 2007
    
    
    8
    
    
    
    8At 6 January 2006 and 1 January 2007
    
    
    
    
    
    
    
 www.goindustry.com
    
    GoIndustry plc annual report and accounts 2007     41




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##### 



Notes to the company financial statements
  4. Investments in subsidiaries
 In thousands of poundsAt 6 January and 31 December 2006
    
    
    27,835Capital contribution to subsidiary company
    
    
    612Capitalisation of loan to subsidiary company
    
    
    2,284At 31 December 2007
    
    
    30,731
  5. Trade and other receivables
 In thousands of pounds
    
    2007
    
    
    2006Amounts due from subsidiary undertakings
    
    
    8,363
    
    
    
    8,214Prepayments
    
    
    66
    
    
    
    688,429
    
    
    
    8,282
 6. Cash and cash equivalents
 In thousands of pounds
    
    2007
    
    
    2006Own cash on hand and at bank
    
    
    2,263
    
    
    
    586Shortterm bank deposits
    
    
    2,263
    
    
    
    7924,526
    
    
    
    1,378
 7. Trade and other payables
 In thousands of pounds
    
    2007
    
    
    2006Trade payables
    
    
    9
    
    
    
    63Amounts payable to subsidiary undertakings
    
    
    258
    
    
    
    832Social security and other taxes
    
    
    18
    
    
    
    26Accrued expenses
    
    
    203
    
    
    
    96488
    
    
    
    1,017
 8. Borrowings
 In thousands of pounds
    
    2007
    
    
    2006Convertible loan notes
    
    
    2,990
    
    
    
    2,990
   42     GoIndustry plc annual report and accounts 2007
    
    www.goindustry.com




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##### 



9. Share capital and premium
  Number ofshares
    
    
    Ordinary
    
    
    ShareIn thousands of pounds
    
    Thousands
    
    
    shares
    
    
    premiumAt 6 January 2006
    
    
    187,133
    
    
    
    9,357
    
    
    
    3,462Placing of 5p ordinary sharesProceeds from shares issued
    
    
    12,000
    
    
    
    600
    
    
    
    1,500At 31 December 2006
    
    
    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 31 December 2007
    
    
    264,998
    
    
    
    13,250
    
    
    
    9,578
  In thousands of pounds
    
    2007
    
    
    2006Authorised ordinary shares of 5p each 330,000 thousand (31 December 2006: 330,000
thousand)
    
    
    16,500
    
    
    
    16,500Equity ordinary shares to be issued of 5p each Nil (31 December 2006: 25,317 thousand)
    
    
    
    
    
    
    1,266
  10. Own shares held in trust
 In thousands of poundsAt 6 January and 31 December 2006
    
    
    Issue of 5p ordinary shares to satisfy future share based payment obligation
    
    
    (66
    )At 31 December 2007
    
    
    (66
    )
 11. Other reserves
 Acquisition
    
    
    Share optionsIn thousands of pounds
    
    reserve
    
    
    reserve
    
    
    TotalAt 6 January and 31 December 2006
    
    
    17,648
    
    
    
    160
    
    
    
    17,808Share based payments
    
    
    
    
    
    
    784
    
    
    
    784At 31 December 2007
    
    
    17,648
    
    
    
    944
    
    
    
    18,592
 www.goindustry.com
    
    GoIndustry plc annual report and accounts 2007     43




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##### 



Notes to the company financial statements
  12. Accumulated losses
 In thousands of poundsAt 6 January 2006
    
    
    (134
    )Loss for the year
    
    
    (371
    )At 31 December 2006
    
    
    (505
    )Loss for the year
    
    
    (633
    )At 31 December 2007
    
    
    (1,138
    )
 13. Related party transactions
 
 14. Events after the balance sheet date
   44     GoIndustry plc annual report and accounts 2007
    
    www.goindustry.com