Exhibit 99.3
 GoIndustry-DoveBid plc




---



##### 



Independent Auditors Report
   Respective responsibilities of Directors and Auditor
  Scope of the audit of the financial statements
  Opinion on financial statements
  
    
    the financial statements give a true and fair view of the state of the Groups and the Parent
Companys affairs as at 31 December 2010 and of the Groups loss for the year then ended;
 
    
    the Group financial statements have been properly prepared in accordance with IFRSs as adopted
by the European Union;
 
    
    the Parent Company financial statements have been properly prepared in accordance with IFRSs as
adopted by the European Union and as applied in accordance with the Companies Act 2006; and
 
    
    the financial statements have been prepared in accordance with the requirements of the Companies
Act 2006.
 Opinion on other matter prescribed by the Companies Act 2006
  Matters on which we are required to report by exception
  
    
    adequate accounting records have not been kept by the Parent Company, or returns
adequate for our audit have not been received from branches not visited by us; or
 
    
    the Parent Company financial statements are not in agreement with the accounting records and
returns; or
 
    
    certain disclosures of Directors remuneration specified by law are not made; or
 
    
    we have not received all the information and explanations we require for our audit.
 
 20     GoIndustry-DoveBid plc annual report and accounts 2010
    
    www.go-dove.com




---



##### 



Consolidated Statement of Comprehensive Income
  Year ended 31 December 2010
    
    
    Year ended 31 December 2009Before
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Beforeexceptional
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    exceptionalitems and
    
    
    Exceptional
    
    
    Other
    
    
    
    
    
    
    items and
    
    
    Exceptional
    
    
    Otherother
    
    
    items
    
    
    charges
    
    
    
    
    
    
    other
    
    
    items
    
    
    chargescharges
    
    
    (note 6)
    
    
    (note 7)
    
    
    Total
    
    
    charges
    
    
    (note 6)
    
    
    (note 7)
    
    
    TotalNote
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000sRevenue
    
    
    5
    
    
    
    40,094
    
    
    
    
    
    
    
    
    
    
    
    40,094
    
    
    
    41,990
    
    
    
    
    
    
    
    
    
    
    
    41,990Cost of sales
    
    
    
    
    
    
    (12,283
    )
    
    
    
    
    
    
    
    
    
    
    (12,283
    )
    
    
    (16,716
    )
    
    
    
    
    
    
    
    
    
    
    (16,716
    )Direct profit
    
    
    
    
    
    
    27,811
    
    
    
    
    
    
    
    
    
    
    
    27,811
    
    
    
    25,274
    
    
    
    
    
    
    
    
    
    
    
    25,274Administrative expenses
    
    
    
    
    
    
    (26,926
    )
    
    
    (409
    )
    
    
    (893
    )
    
    
    (28,228
    )
    
    
    (25,857
    )
    
    
    (1,773
    )
    
    
    (1,036
    )
    
    
    (28,666
    )Operating profit/(loss)
    
    
    8
    
    
    
    885
    
    
    
    (409
    )
    
    
    (893
    )
    
    
    (417
    )
    
    
    (583
    )
    
    
    (1,773
    )
    
    
    (1,036
    )
    
    
    (3,392
    )Finance costsFinance income
    
    
    11
    
    
    
    82
    
    
    
    
    
    
    
    
    
    
    
    82
    
    
    
    141
    
    
    
    
    
    
    
    
    
    
    
    141Finance costs
    
    
    11
    
    
    
    (354
    )
    
    
    
    
    
    
    
    
    
    
    (354
    )
    
    
    (972
    )
    
    
    (414
    )
    
    
    
    
    
    
    (1,386
    )Finance costs  net
    
    
    
    
    
    
    (272
    )
    
    
    
    
    
    
    
    
    
    
    (272
    )
    
    
    (831
    )
    
    
    (414
    )
    
    
    
    
    
    
    (1,245
    )Share of loss of associate
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (28
    )
    
    
    
    
    
    
    
    
    
    
    (28
    )Profit/(loss) before income
tax
    
    
    
    
    
    
    613
    
    
    
    (409
    )
    
    
    (893
    )
    
    
    (689
    )
    
    
    (1,442
    )
    
    
    (2,187
    )
    
    
    1,036
    )
    
    
    (4,665
    )Income tax
    
    
    12
    
    
    
    227
    
    
    
    
    
    
    
    
    
    
    
    227
    
    
    
    (170
    )
    
    
    
    
    
    
    
    
    
    
    (170
    )Loss for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (462
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,835
    )Other comprehensive
income:Exchange losses on translation
of foreign subsidiaries
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (235
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,130
    )Actuarial gains/(losses) on
defined benefit pension
scheme (note 22)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    687
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,150
    )Other comprehensive
income for the year, net of
tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    452
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,280
    )Total comprehensive
income for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (10
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (9,115
    )Loss attributable to:Equity holders of the Company
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (359
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,916
    )Non-controlling interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (103
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    81(462
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,835
    )Total comprehensive income
attributable to:Equity holders of the Company
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    93
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (9,196
    )Non-controlling interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (103
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    81(10
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (9,115
    )
   Loss per share attributable to equity holders of the Company during the year
 Note
    
    
    2010
    
    
    2009Basic
    
    
    13
    
    
    
    (3.7p
    )
    
    
    (78.2p
    )Diluted
    
    
    13
    
    
    
    (3.7p
    )
    
    
    (78.2p
    )
  www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2010     21




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##### 



Consolidated Statement of Financial Position
  2010
    
    
    2009Note
    
    
    £000s
    
    
    £000sNon-current assetsProperty, plant and equipment
    
    
    14
    
    
    
    350
    
    
    
    1,026Intangible assets
    
    
    15
    
    
    
    32,178
    
    
    
    32,335Deferred tax asset
    
    
    21
    
    
    
    327
    
    
    
    32,855
    
    
    
    33,361Current assetsInventories
    
    
    16
    
    
    
    334
    
    
    
    597Trade and other receivables
    
    
    17
    
    
    
    5,515
    
    
    
    6,649Cash and cash equivalents
    
    
    18
    
    
    
    15,920
    
    
    
    20,75121,769
    
    
    
    27,997Total assets
    
    
    
    
    
    
    54,624
    
    
    
    61,358Current liabilitiesTrade and other payables
    
    
    19
    
    
    
    21,422
    
    
    
    25,611Borrowings
    
    
    20
    
    
    
    2,053
    
    
    
    2,31723,475
    
    
    
    27,928Non-current liabilitiesTrade and other payables
    
    
    19
    
    
    
    10
    
    
    
    358Borrowings
    
    
    20
    
    
    
    1,162
    
    
    
    2,048Retirement benefit obligations
    
    
    22
    
    
    
    3,358
    
    
    
    4,5814,530
    
    
    
    6,987Total liabilities
    
    
    
    
    
    
    28,005
    
    
    
    34,915Net assets
    
    
    
    
    
    
    26,619
    
    
    
    26,443EquityShare capital
    
    
    23
    
    
    
    98
    
    
    
    9,745Share premium
    
    
    23
    
    
    
    22,983
    
    
    
    22,495Shares to be issued
    
    
    
    
    
    
    
    
    
    
    542Capital redemption reserve
    
    
    26
    
    
    
    28,609
    
    
    
    18,908Other reserves
    
    
    24
    
    
    
    54,278
    
    
    
    54,327Accumulated losses
    
    
    25
    
    
    
    (79,508
    )
    
    
    (79,836
    )Equity attributable to equity holders of the Company
    
    
    
    
    
    
    26,460
    
    
    
    26,181Non-controlling interests
    
    
    
    
    
    
    159
    
    
    
    262Total equity
    
    
    
    
    
    
    26,619
    
    
    
    26,443
   Jack Reinelt
    
    Leslie-Ann ReedChief Executive Officer
    
    Chief Financial Officer27 May 2011
    
    27 May 2011
 22      GoIndustry-DoveBid plc annual report and accounts 2010
    
    www.go-dove.com




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##### 



Consolidated Statement of Changes in Equity
  Attrbutable to the owners of the parentCapital
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Share
    
    
    Foreign
    
    
    
    
    
    
    
    
    
    
    Non-Share
    
    
    Share
    
    
    redemption
    
    
    Shares to
    
    
    Own shares
    
    
    Acquisition
    
    
    options
    
    
    currency
    
    
    Accumulated
    
    
    
    
    
    
    controlling
    
    
    TOTALcapital
    
    
    premium
    
    
    reserve
    
    
    be issued
    
    
    held in trust
    
    
    reserve
    
    
    reserve
    
    
    reserve
    
    
    losses
    
    
    TOTAL
    
    
    interests
    
    
    Equity£000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000sAt 1 January 2009
    
    
    23,583
    
    
    
    18,872
    
    
    
    
    
    
    
    542
    
    
    
    (974
    )
    
    
    47,649
    
    
    
    1,322
    
    
    
    7,236
    
    
    
    (71,882
    )
    
    
    26,348
    
    
    
    181
    
    
    
    26,529Comprehensive income:Loss for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,916
    )
    
    
    (4,916
    )
    
    
    81
    
    
    
    (4,835
    )Other comprehensive income:Actuarial losses on defined benefit pension
scheme
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,150
    )
    
    
    (2,150
    )
    
    
    
    
    
    
    (2,150
    )Exchange losses on translation of foreign
subsidiaries
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,130
    )
    
    
    
    
    
    
    (2,130
    )
    
    
    
    
    
    
    (2,130
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,130
    )
    
    
    (7,066
    )
    
    
    (9,196
    )
    
    
    81
    
    
    
    (9,115
    )Transactions with owners:Cancellation of shares
    
    
    (18,908
    )
    
    
    
    
    
    
    18,908
    
    
    
    
    
    
    
    888
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (888
    )
    
    
    
    
    
    
    
    
    
    
    New shares issued
    
    
    2,657
    
    
    
    2,126
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,783
    
    
    
    
    
    
    
    4,783Conversion of loan notes
    
    
    2,413
    
    
    
    1,923
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,336
    
    
    
    
    
    
    
    4,336Cost of share issue
    
    
    
    
    
    
    (426
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (426
    )
    
    
    
    
    
    
    (426
    )Share based payments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    250
    
    
    
    
    
    
    
    
    
    
    
    250
    
    
    
    
    
    
    
    250Transfer of shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    86
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    86
    
    
    
    
    
    
    
    86Total transactions with owners
    
    
    (13,838
    )
    
    
    3,623
    
    
    
    18,908
    
    
    
    
    
    
    
    974
    
    
    
    
    
    
    
    250
    
    
    
    
    
    
    
    (888
    )
    
    
    9,029
    
    
    
    
    
    
    
    9,029At 1 January 2010
    
    
    9,745
    
    
    
    22,495
    
    
    
    18,908
    
    
    
    542
    
    
    
    
    
    
    
    47,649
    
    
    
    1,572
    
    
    
    5,106
    
    
    
    (79,836
    )
    
    
    26,181
    
    
    
    262
    
    
    
    26,443Comprehensive income:Loss for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (359
    )
    
    
    (359
    )
    
    
    (103
    )
    
    
    (462
    )Other comprehensive income:Actuarial gains on defined benefit pension scheme
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    687
    
    
    
    687
    
    
    
    
    
    
    
    687Exchange losses on translation of foreign
subsidiaries
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (235
    )
    
    
    
    
    
    
    (235
    )
    
    
    
    
    
    
    (235
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (235
    )
    
    
    328
    
    
    
    93
    
    
    
    (103
    )
    
    
    (10
    )Transactions with owners:Issue of deferred share consideration
    
    
    54
    
    
    
    488
    
    
    
    
    
    
    
    (542
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Cancellation of redeemable deferred
shares held
    
    
    (9,701
    )
    
    
    
    
    
    
    9,701
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Share based payments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    186
    
    
    
    
    
    
    
    
    
    
    
    186
    
    
    
    
    
    
    
    186Total transactions with owners
    
    
    (9,647
    )
    
    
    488
    
    
    
    9,701
    
    
    
    (542
    )
    
    
    
    
    
    
    
    
    
    
    186
    
    
    
    
    
    
    
    
    
    
    
    186
    
    
    
    
    
    
    
    186At 31 December 2010
    
    
    98
    
    
    
    22,983
    
    
    
    28,609
    
    
    
    
    
    
    
    
    
    
    
    47,649
    
    
    
    1,758
    
    
    
    4,871
    
    
    
    (79,508
    )
    
    
    26,460
    
    
    
    159
    
    
    
    26,619
 www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2010     23




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##### 



Consolidated Statement of Cash Flows
  2010
    
    
    2009Note
    
    
    £000s
    
    
    £000sCash flows from operating activitiesCash (used by)/generated from operations
    
    
    28
    
    
    
    (3,550
    )
    
    
    3,212Interest paid
    
    
    
    
    
    
    (354
    )
    
    
    (1,116
    )Income tax paid
    
    
    
    
    
    
    (31
    )
    
    
    (156
    )Interest received
    
    
    
    
    
    
    82
    
    
    
    141Net cash (used in)/generated from operating activities
    
    
    
    
    
    
    (3,853
    )
    
    
    2,081Cash flows from investing activitiesPurchases of property, plant and equipment (PPE)
    
    
    
    
    
    
    (64
    )
    
    
    (94
    )Proceeds from sale of PPE
    
    
    
    
    
    
    542
    
    
    
    91Purchases of intangible assets
    
    
    
    
    
    
    (615
    )
    
    
    (394
    )Net cash used in investing activities
    
    
    
    
    
    
    (137
    )
    
    
    (397
    )Cash flows from financing activitiesProceeds from issuance of ordinary shares
    
    
    
    
    
    
    
    
    
    
    4,087Decrease in borrowings
    
    
    
    
    
    
    (1,150
    )
    
    
    (1,815
    )Net cash (used in)/generated by financing activities
    
    
    
    
    
    
    (1,150
    )
    
    
    2,272Net (decrease)/increase in cash and cash equivalents
    
    
    
    
    
    
    (5,140
    )
    
    
    3,956Cash and cash equivalents at beginning of year
    
    
    
    
    
    
    20,751
    
    
    
    18,037Effect of foreign exchange rate changes
    
    
    
    
    
    
    309
    
    
    
    (1,242
    )Cash and cash equivalents at end of year
    
    
    18
    
    
    
    15,920
    
    
    
    20,751
  24      GoIndustry-DoveBid plc annual report and accounts 2010
    
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Notes to the Consolidated Financial Statements
  1.
    
    General information
   2.
    
    Summary of significant accounting policies
  2.1
    
    Basis of preparation
    2.2
    
    Going concern
       2.3
    
    Changes in accounting policy and disclosures
 (a)
    
    New and amended standards adopted by the Group
  
    
    IAS 38 Intangible Assets  amendments resulting from April 2009 Annual
Improvements to IFRSs.
    
    IFRIC 14 IAS 19  The limit on a defined benefit asset, minimum funding
requirements and their interaction (endorsed).
 www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2010     25




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##### 



Notes to the Consolidated Financial Statements
  (b)
    
    Standards, amendments and interpretations effective in 2010 but not relevant
  
    
    IFRS 1 First time adoption of IFRS  amendments relating to oil and gas assets
and determining whether an arrangement contains a lease; amendment in relation to the
cost of an investment in a subsidiary, jointly controlled entity or associate.
    
    IFRS 2 (amendments), Group cash-settled share-based payment transactions,
effective form 1 January
2010. In addition to incorporating IFRIC 8, Scope of IFRS 2, and IFRIC 11, IFRS 2 -
Group and treasury
share transactions, the amendments expand on the guidance in IFRIC 11 to address the
classification of
group arrangements that were not covered by that interpretation.
    
    IFRS 5 (amendment), Non-current assets held for sale and discontinued
operations. The amendment clarificaties that IFRS 5 specifies the disclosures required
in respect of non-current assets (or disposal groups) classified as held for sale or
discontinued operations. It also clarifies that the general requirement of IAS 1 still
apply, in particular paragraph 15 (to achieve a fair presentation) and paragraph 125
(sources of estimation uncertainty) of IAS 1.
    
    IAS 1 (amendment), Presentation of financial statements. The amendment
clarifies that the potential settlement of a liability by the issue of equity is not
relevant to its classification as current or non current. By amending the definition of
current liability, the amendment permits a liability to be classified as non-current
(provided that the entity has an unconditional right to defer settlement by transfer of
cash or other assets for at least 12 months after the accounting period)
notwithstanding the fact that the entity could be required by the counterparty to
settle in shares at any time.
    
    IAS 27 (revised) requires the effects of all transactions with non-controlling
interests to be recorded in equity if there is no change in control and these
transactions will no longer result in goodwill or gains and losses. The standard also
specifies the accounting when control is lost. Any remaining interest in the entity is
re-measured to fair value, and a gain or loss is recognised in profit or loss. IAS 27
(revised) has had no impact on the current period, as none of the non-controlling
interests have a deficit balance; there have been no transactions whereby an interest
in an entity is retained after the loss of control of that entity, and there
have been no transactions with non-controlling interests.
    
    IAS 36 (amendment), Impairment of assets, effective 1 January 2010. The
amendment clarifies that the largest cash-generating unit (or group of units) to
which goodwill should be allocated for the purposes of impairment testing is an
operating segment, as defined by paragraph 5 of IFRS 8,  Operating segments (that
is, before the aggregation of segments with similar economic characteristics).
    
    IFRIC 9, Reassessment of embedded derivatives and IAS 39, Financial
instruments: Recognition and measurement, effective 1 July 2009. This amendment
to IFRIC 9 requires an entity to assess whether an embedded derivative should be
separated from a host contract when the entity reclassifies a hybrid
financial asset out of the fair value through profit or loss category. This assessment
is to be made based
on circumstances that existed on the later of the date the entity first became a party
to the contract and the date of any contract amendments that significantly change the
cash flows of the contract. If the entity is unable to make this assessment, the
hybrid instrument must remain classified as at fair value through profit or loss in
its entirety.
    
    IFRIC 16, Hedges of a net investment in a foreign operation effective 1 July
2009. This amendment states that, in a hedge of a net investment in a foreign
operation, qualifying hedging instruments may be held by any entity or entities within
the Group, including the foreign operation itself, as long as the designation,
documentation and effectiveness requirements of IAS 39 that relate to a net investment
hedge are satisfied. In particular, the Group should clearly document its hedging
strategy because of the possibility of different designations at different levels of
the Group. IAS 38 (amendment), Intangible assets, effective 1 January
2010. The amendment clarifies guidance in measuring the fair value of an intangible
asset acquired in a business combination and permits the grouping of intangible assets
as a single asset if each asset has similar useful economic lives.
    
    IFRIC 17, Distribution of non-cash assets to owners (effective on or after 1
July 2009). The interpretation was published in November 2008. This interpretation
provides guidance on accounting for arrangements whereby an entity distributes
non-cash assets to shareholders either as a distribution of reserves or as dividends.
IFRS 5 has also been amended to require that assets are classified as held for
distribution only when they are available for distribution in their present condition
and the distribution is highly probable.
    
    IFRIC 18, Transfers of assets from customers, effective for transfer of assets
received on or after 1 July
2009. This interpretation clarifies the requirements of IFRSs for agreements in which an
entity receives
from a customer an item of property, plant and equipment that the entity must then use
either to connect
the customer to a network or to provide the customer with ongoing access to a
supply of goods or services (such as a supply of electricity, gas or water). In some
cases, the entity receives cash from a customer that must be used only to acquire or
construct the item of property, plant, and equipment in order to connect the customer
to a network or provide the customer with ongoing access to a supply of goods or
services (or to do both).
 26     GoIndustry-DoveBid plc annual report and accounts 2010
    
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(c)
    
    New standards, amendments and interpretations issued but not effective for the financial
year beginning 1 January 2010 and not early adopted
  
    
    IFRS 9, Financial instruments, issued in November 2009. This standard is the
first step in the process to replace IAS 39, Financial instruments: recognition and
measurement. IFRS 9 introduces new requirements for classifying and measuring
financial assets and is likely to affect the Groups accounting for its financial
assets. The standard is not applicable until 1 January 2013 but is available for early
adoption. However, the standard has not yet been endorsed by the EU. The Group is yet
to assess IFRS 9s full impact.
    
    Revised IAS 24 (revised), Related party disclosures, issued in November 2009. It
supersedes IAS 24,
Related party disclosures, issued in 2003. IAS 24 (revised) is mandatory for periods
beginning on or after 1
January 2011. Earlier application, in whole or in part, is permitted. However, the
standard has not yet been endorsed by the EU.The revised standard clarifies and simplifies the definition of a related party and
removes the requirement for governmentrelated entities to disclose details of all
transactions with the government and other governmentrelated entities. The Group
will apply the revised standard from 1 January 2011. When the revised standard is
applied, the Group and the parent will need to disclose any transactions between its
subsidiaries and its associates. The Group is currently putting systems in place to
capture the necessary information. It is, therefore, not possible at this stage to
disclose the impact, if any, of the revised standard on the related party disclosures.
    
    Classification of rights issues (amendment to IAS 32), issued in October 2009.
The amendment applies
to annual periods beginning on or after 1 February 2010. Earlier application is
permitted. The amendment
addresses the accounting for rights issues that are denominated in a currency other
than the functional currency of the issuer. Provided certain conditions are met,
such rights issues are now classified as equity regardless of the currency in which
the exercise price is denominated. Previously, these issues had to
be accounted for as derivative liabilities. The amendment applies retrospectively in
accordance with IAS
8 Accounting policies, changes in accounting estimates and errors. The Group
will apply the amended standard from 1 January 2011.
    
    IFRIC 19, Extinguishing financial liabilities with equity instruments,
effective 1 July 2010. The interpretation clarifies the accounting by an entity when
the terms of a financial liability are renegotiated and result in the entity issuing
equity instruments to a creditor of the entity to extinguish all or part of the
financial liability (debt for equity swap). It requires a gain or loss to be recognised
in profit or loss, which is measured as the difference between the carrying amount of
the financial liability and the fair value of the equity instruments issued. If the
fair value of the equity instruments issued cannot be reliably measured, the equity
instruments should be measured to reflect the fair value of the financial liability
extinguished. The Group will apply the interpretation from 1 January 2011, subject to
endorsement by the EU. It is not expected to have any impact on the Group or the Parent
entitys financial statements.
    
    Prepayments of a minimum funding requirement (amendments to IFRIC 14). The
amendments correct
an unintended consequence of IFRIC 14, IAS 19  The limit on a defined benefit asset,
minimum funding
requirements and their interaction. Without the amendments, entities are not permitted
to recognise as an asset some voluntary prepayments for minimum funding contributions.
This was not intended when IFRIC 14 was issued, and the amendments correct this. The
amendments are effective for annual periods beginning
1 January 2011. Earlier application is permitted. The amendments should be applied
retrospectively to the earliest comparative period presented. The Group will apply
these amendments for the financial reporting period commencing on 1 January 2011.
 2.4
    
    Consolidation
 (a)
    
    Subsidiaries
   www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2010     27




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Notes to the Consolidated Financial Statements
 2.4
    
    Consolidation(continued)
    (b)
    
    Transactions with non-controlling interests
    (c)
    
    Associates
     2.5
    
    Changes in accounting policy
   28     GoIndustry-DoveBid plc annual report and accounts 2010
    
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2.5
    
    Changes in accounting policy(continued)
   2.6
    
    Segment reporting
   2.7
    
    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 are translated at weighted average monthly exchange rates
(unless this average is not a reasonable approximation of the cumulative effect of the
rates prevailing on the transaction dates, in which case income and expenses are
translated at the rate on the dates of the transactions); and all resulting exchange
differences are recognised in other comprehensive income.
   2.8
    
    Revenue recognition
  www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2010     29




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Notes to the Consolidated Financial Statements
 2.8
    
    Revenue recognition(continued)
    2.9
    
    Employee benefits
 (a)
    
    Pension obligations
     (b)
    
    Sharebased compensation
   2.10
    
    Leases
  30     GoIndustry-DoveBid plc annual report and accounts 2010
    
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2.11
    
    Current and deferred income tax
     2.12
    
    Property, plant and equipment
    Buildings
    
    1025 yearsVehicles
    
    4            yearsFurniture, fittings and equipment
    
    3            years
   2.13
    
    Intangible assets
 (a)
    
    Goodwill
    (b)
    
    Customer relationships
  www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2010     31




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Notes to the Consolidated Financial Statements
 2.13
    
    Intangible assets(continued)
 (c)
    
    Brands
  (d)
    
    Trademarks
  (e)
    
    Other intangible assets
   2.14
    
    Inventories
  2.15
    
    Financial assets
  2.16
    
    Trade and other receivables
   2.17
    
    Cash and cash equivalents
   2.18
    
    Financial liabilities
  32     GoIndustry-DoveBid plc annual report and accounts 2010
    
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2.19
    
    Trade payables
  2.20
    
    Borrowings
   2.21
    
    Provisions
   2.22
    
    Share capital
    3.
    
    Financial risk management
  Market risk
 (a)
    
    Foreign exchange risk
    www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2010     33




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##### 



Notes to the Consolidated Financial Statements
 3.
    
    Financial risk management(continued)
  2010
 USD
    
    
    Euro
    
    
    GBP
    
    
    Total£000s
    
    
    £000s
    
    
    £000s
    
    
    £000sLoans and receivablesTrade receivables
    
    
    2,049
    
    
    
    347
    
    
    
    37
    
    
    
    2,433Other receivables
    
    
    990
    
    
    
    106
    
    
    
    136
    
    
    
    1,232Accrued income
    
    
    226
    
    
    
    
    
    
    
    1,136
    
    
    
    1,362Cash and cash equivalents
    
    
    8,840
    
    
    
    3,414
    
    
    
    3,666
    
    
    
    15,920Financial liabilities measured at
amortised costTrade payables
    
    
    (503
    )
    
    
    (347
    )
    
    
    (2,605
    )
    
    
    (3,455
    )Amounts due to clients
    
    
    (7,646
    )
    
    
    (2,621
    )
    
    
    (1,970
    )
    
    
    (12,237
    )Accruals and other payables
    
    
    (1,143
    )
    
    
    (1,539
    )
    
    
    (933
    )
    
    
    (3,615
    )Borrowings
    
    
    (2,311
    )
    
    
    
    
    
    
    (904
    )
    
    
    (3,215
    )502
    
    
    
    (640
    )
    
    
    (1,437
    )
    
    
    (1,575
    )
 2009
 USD
    
    
    Euro
    
    
    GBP
    
    
    Total£000s
    
    
    £000s
    
    
    £000s
    
    
    £000sLoans and receivablesTrade receivables
    
    
    2,130
    
    
    
    809
    
    
    
    464
    
    
    
    3,403Other receivables
    
    
    767
    
    
    
    117
    
    
    
    6
    
    
    
    890Accrued income
    
    
    60
    
    
    
    324
    
    
    
    1,066
    
    
    
    1,450Cash and cash equivalents
    
    
    14,268
    
    
    
    2,727
    
    
    
    3,756
    
    
    
    20,751Financial liabilities measured at
amortised costTrade payables
    
    
    124
    
    
    
    (272
    )
    
    
    (3,341
    )
    
    
    (3,489
    )Amounts due to clients
    
    
    (12,635
    )
    
    
    (2,647
    )
    
    
    (954
    )
    
    
    (16,236
    )Accruals and other payables
    
    
    (1,550
    )
    
    
    (1,003
    )
    
    
    (787
    )
    
    
    (3,340
    )Borrowings
    
    
    (3,280
    )
    
    
    (500
    )
    
    
    (585
    )
    
    
    (4,365
    )(116
    )
    
    
    (445
    )
    
    
    (375
    )
    
    
    (936
    )
   (b)
    
    Cash flow interest rate risk
    Credit risk
  34     GoIndustry-DoveBid plc annual report and accounts 2010
    
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2010
    
    
    2009Balance
    
    
    BalanceCounterparty
    
    Rating
    
    £000s
    
    
    £000sPNC Bank
    
    A
    
    
    7,674
    
    
    
    8,289HypoVereins Bank
    
    AAA
    
    
    3,259
    
    
    
    827LCL
    
    AA
    
    
    
    
    
    
    363HSBC
    
    AA
    
    
    1,175
    
    
    
    323Deutsche Bank
    
    AAA
    
    
    
    
    
    
    246Other
    
    
    
    
    3,812
    
    
    
    10,70315,920
    
    
    
    20,751
  (a)
    
    Trade receivables management
  (b)
    
    Capital risk management
   (c)
    
    Liquidity risk
   2010
 Recognised
    
    
    Contractual
    
    
    TotalEffective
    
    
    asset/
    
    
    interest
    
    
    contractual
    
    
    6 months
    
    
    612
    
    
    15interest
    
    
    (liability)
    
    
    payable
    
    
    cashflow
    
    
    or less
    
    
    months
    
    
    yearsrate
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000sLoans and receivablesTrade receivables
    
    
    
    
    
    
    2,433
    
    
    
    
    
    
    
    2,433
    
    
    
    2,433
    
    
    
    
    
    
    
    Other receivables
    
    
    
    
    
    
    1,232
    
    
    
    
    
    
    
    1,232
    
    
    
    1,232
    
    
    
    
    
    
    
    Accrued income
    
    
    
    
    
    
    1,362
    
    
    
    
    
    
    
    1,362
    
    
    
    1,362
    
    
    
    
    
    
    
    Bank deposits
    
    
    0.25
    %
    
    
    15,920
    
    
    
    40
    
    
    
    15,960
    
    
    
    15,960
    
    
    
    
    
    
    
    Financial liabilities
measured at
amortised costTrade payables
    
    
    
    
    
    
    (3,455
    )
    
    
    
    
    
    
    (3,455
    )
    
    
    (3,455
    )
    
    
    
    
    
    
    Amounts due to clients
    
    
    
    
    
    
    (12,237
    )
    
    
    
    
    
    
    (12,237
    )
    
    
    (12,237
    )
    
    
    
    
    
    
    Accrued expenses
    
    
    
    
    
    
    (3,615
    )
    
    
    
    
    
    
    (3,615
    )
    
    
    (3,615
    )
    
    
    Bank loans and
overdrafts
    
    
    4
    %
    
    
    (2,249
    )
    
    
    (90
    )
    
    
    (2,339
    )
    
    
    (964
    )
    
    
    (213
    )
    
    
    (1,162
    )Subordinated loan notes
    
    
    9
    %
    
    
    (466
    )
    
    
    (38
    )
    
    
    (504
    )
    
    
    (272
    )
    
    
    (232
    )
    
    
    Convertible loan notes
    
    
    12
    %
    
    
    (500
    )
    
    
    (60
    )
    
    
    (560
    )
    
    
    (30
    )
    
    
    (530
    )
    
    
    (1,575
    )
    
    
    (148
    )
    
    
    (1,723
    )
    
    
    414
    
    
    
    (975
    )
    
    
    (1,162
    )
 www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2010     35




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Notes to the Consolidated Financial Statements
 3.
    
    Financial risk management(continued)
  Recognised
    
    
    Contractual
    
    
    TotalEffective
    
    
    asset/
    
    
    interest
    
    
    contractual
    
    
    6 months
    
    
    612
    
    
    15interest
    
    
    (liability)
    
    
    payable
    
    
    cashflow
    
    
    or less
    
    
    months
    
    
    yearsrate
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000sLoans and receivablesTrade receivables
    
    
    
    
    
    
    3,403
    
    
    
    
    
    
    
    3,403
    
    
    
    2,999
    
    
    
    404
    
    
    
    Other receivables
    
    
    
    
    
    
    890
    
    
    
    
    
    
    
    890
    
    
    
    890
    
    
    
    
    
    
    
    Accrued income
    
    
    
    
    
    
    1,450
    
    
    
    
    
    
    
    1,450
    
    
    
    1,450
    
    
    
    
    
    
    
    Bank deposits
    
    
    0.75
    %
    
    
    20,751
    
    
    
    156
    
    
    
    20,907
    
    
    
    20,907
    
    
    
    
    
    
    
    Financial liabilities
measured at amortised
costTrade payables
    
    
    
    
    
    
    (3,489
    )
    
    
    
    
    
    
    (3,489
    )
    
    
    (3,365
    )
    
    
    (124
    )
    
    
    Amounts due to clients
    
    
    
    
    
    
    (16,236
    )
    
    
    
    
    
    
    (16,236
    )
    
    
    (16,236
    )
    
    
    
    
    
    
    Accrued expenses
    
    
    
    
    
    
    (3,340
    )
    
    
    
    
    
    
    (3,340
    )
    
    
    (3,340
    )
    
    
    
    
    
    
    Bank loans and overdrafts
    
    
    4
    %
    
    
    (3,371
    )
    
    
    (135
    )
    
    
    (3,506
    )
    
    
    (3,439
    )
    
    
    (67
    )
    
    
    Subordinated loan notes
    
    
    9
    %
    
    
    (494
    )
    
    
    (82
    )
    
    
    (576
    )
    
    
    (138
    )
    
    
    (138
    )
    
    
    (300
    )Convertible loan notes
    
    
    12
    %
    
    
    (500
    )
    
    
    (120
    )
    
    
    (620
    )
    
    
    (30
    )
    
    
    (30
    )
    
    
    (560
    )(936
    )
    
    
    (181
    )
    
    
    (1,117
    )
    
    
    (302
    )
    
    
    45
    
    
    
    (860
    )
  4.
    
    Critical accounting estimates and judgements
  (a)
    
    Impairment of goodwillThe Group is required to test, at least annually, whether goodwill has suffered any
impairment. The recoverable amount is determined based on value in use calculations. The
use of this method requires the estimation of future cash flows and the choice of a
suitable discount rate in order to calculate the present value of these cash flows. Actual
outcomes could vary. See note 15 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 22 for further
details.
 (c)
    
    Equity settled share based paymentsThe Group recognises a charge in profit or loss for the fair value of equity settled share
based payments over
the vesting period. Where the instruments have no other conditions, 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. Where a
market condition was also included in the terms of the instrument, then the Binomial
model was used. These models are dependent upon several assumptions such as the risk free
interest rate and the expected life of the options. Actual experience may differ from
that estimated. Note 23 contains further details on these assumptions.
 (d)
    
    Direct Profit margin for Principal DealsWhen the Group acquires equipment in Principal Deals, 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.
 36     GoIndustry-DoveBid plc annual report and accounts 2010
    
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5.
    
    Segmental analysis
     a.
    
    Geographical segments
 North
    
    
    
    
    
    
    
    
    
    
    2010Europe
    
    
    America
    
    
    APAC
    
    
    Corporate
    
    
    Consolidated£000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000sRevenue
    
    
    14,649
    
    
    
    21,534
    
    
    
    3,911
    
    
    
    
    
    
    
    40,094Direct profit
    
    
    9,218
    
    
    
    15,616
    
    
    
    2,977
    
    
    
    
    
    
    
    27,811Segment result
    
    
    1,375
    
    
    
    2,885
    
    
    
    (206
    )
    
    
    (3,169
    )
    
    
    885Exceptional items
    
    
    (48
    )
    
    
    
    
    
    
    (66
    )
    
    
    (295
    )
    
    
    (409
    )Other charges
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (893
    )
    
    
    (893
    )Operating profit/(loss)
    
    
    1,327
    
    
    
    2,885
    
    
    
    (272
    )
    
    
    (4,357
    )
    
    
    (417
    )Finance costs  net
    
    
    (58
    )
    
    
    (220
    )
    
    
    22
    
    
    
    (16
    )
    
    
    (272
    )Profit/(loss) before
income tax
    
    
    1,269
    
    
    
    2,665
    
    
    
    (250
    )
    
    
    (4,373
    )
    
    
    (689
    )Income tax
    
    
    (20
    )
    
    
    216
    
    
    
    31
    
    
    
    
    
    
    
    227Profit/(loss) for the
year
    
    
    1,249
    
    
    
    2,881
    
    
    
    (219
    )
    
    
    (4,373
    )
    
    
    (462
    )Depreciation and
amortisation
    
    
    277
    
    
    
    472
    
    
    
    153
    
    
    
    451
    
    
    
    1,353Total assets
    
    
    12,711
    
    
    
    34,753
    
    
    
    3,632
    
    
    
    3,528
    
    
    
    54,624Total liabilities
    
    
    11,127
    
    
    
    12,078
    
    
    
    1,857
    
    
    
    2,943
    
    
    
    28,005Capital
expenditure:PPE
    
    
    8
    
    
    
    34
    
    
    
    22
    
    
    
    
    
    
    
    64Intangible assets
    
    
    154
    
    
    
    
    
    
    
    
    
    
    
    461
    
    
    
    615
 www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2010     37




---



##### 



Notes to the Consolidated Financial Statements
 5.
    
    Segmental analysis(continued)
 North
    
    
    
    
    
    
    
    
    
    
    2009Europe
    
    
    America
    
    
    APAC
    
    
    Corporate
    
    
    Consolidated£000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000sRevenue
    
    
    15,165
    
    
    
    22,016
    
    
    
    4,809
    
    
    
    
    
    
    
    41,990Direct profit
    
    
    8,798
    
    
    
    13,158
    
    
    
    3,318
    
    
    
    
    
    
    
    25,274Segment result
    
    
    321
    
    
    
    766
    
    
    
    499
    
    
    
    (2,169
    )
    
    
    (583
    )Exceptional items
    
    
    (620
    )
    
    
    4
    
    
    
    (223
    )
    
    
    (934
    )
    
    
    (1,773
    )Other charges
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,036
    )
    
    
    (1,036
    )Operating (loss)/profit
    
    
    (299
    )
    
    
    770
    
    
    
    276
    
    
    
    (4,139
    )
    
    
    (3,392
    )Finance
costs  net
    
    
    (57
    )
    
    
    (590
    )
    
    
    18
    
    
    
    (202
    )
    
    
    (831
    )Convertible loan note
restructuring interest
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (414
    )
    
    
    (414
    )Share of loss of
associate
    
    
    
    
    
    
    (28
    )
    
    
    
    
    
    
    
    
    
    
    (28
    )(Loss)/profit before
income tax
    
    
    (356
    )
    
    
    152
    
    
    
    294
    
    
    
    (4,755
    )
    
    
    (4,665
    )Income tax
    
    
    (6
    )
    
    
    (45
    )
    
    
    (119
    )
    
    
    
    
    
    
    (170
    )(Loss)/profit for the year
    
    
    (362
    )
    
    
    107
    
    
    
    175
    
    
    
    (4,755
    )
    
    
    (4,835
    )Depreciation and
amortisation
    
    
    290
    
    
    
    511
    
    
    
    240
    
    
    
    328
    
    
    
    1,369Total assets
    
    
    15,348
    
    
    
    38,456
    
    
    
    3,682
    
    
    
    3,872
    
    
    
    61,358Total liabilities
    
    
    9,487
    
    
    
    20,015
    
    
    
    1,551
    
    
    
    3,862
    
    
    
    34,915Capital expenditure:PPE
    
    
    32
    
    
    
    50
    
    
    
    12
    
    
    
    
    
    
    
    94Intangible assets
    
    
    150
    
    
    
    
    
    
    
    
    
    
    
    244
    
    
    
    394
 b.
    
    Revenue stream segments
 2010
    
    
    2009RevenueCommission Sales
    
    
    29,874
    
    
    
    28,296Professional Services
    
    
    4,746
    
    
    
    6,764Principal Deals
    
    
    5,474
    
    
    
    6,930Total
    
    
    40,094
    
    
    
    41,990Direct profitCommission Sales
    
    
    20,812
    
    
    
    17,745Professional Services
    
    
    4,186
    
    
    
    5,301Principal Deals
    
    
    2,813
    
    
    
    2,228Total
    
    
    27,811
    
    
    
    25,274
 c.
    
    Revenue from external customers
 2010
    
    
    2009£000s
    
    
    £000sEntitys country of domicile  United Kingdom
    
    
    8,379
    
    
    
    10,407Foreign countries from which the Group derives revenueUSA
    
    
    21,534
    
    
    
    22,016Germany
    
    
    6,034
    
    
    
    3,592Other Europe
    
    
    236
    
    
    
    1,166Asia Pacific
    
    
    3,911
    
    
    
    4,809Total
    
    
    40,094
    
    
    
    41,990
 38     GoIndustry-DoveBid plc annual report and accounts 2010
    
    www.go-dove.com




---



##### 



d.
    
    Noncurrent assets
 2010
    
    
    2009£000s
    
    
    £000sLocated in the entitys country of domicile  United Kingdom
    
    
    14,792
    
    
    
    15,362Foreign countries from which the Group holds assetsUSA
    
    
    6,593
    
    
    
    6,327Germany
    
    
    9,360
    
    
    
    9,052Other Europe
    
    
    1,958
    
    
    
    1,727Asia Pacific
    
    
    152
    
    
    
    893Total
    
    
    32,855
    
    
    
    33,361
 6.
    
    Exceptional costs
 2010
    
    
    2009£000s
    
    
    £000sReorganisation costs
    
    
    91
    
    
    
    1,140Costs associated with Zetabid
    
    
    
    
    
    
    265Board change costs
    
    
    200
    
    
    
    368Legacy costs associated with legal cases
    
    
    118
    
    
    
    Convertible loan note restructuring interest
    
    
    
    
    
    
    414Total
    
    
    409
    
    
    
    2,187
   7.
    
    Other charges
 2010
    
    
    2009£000s
    
    
    £000sEquitysettled share based payments
    
    
    186
    
    
    
    336Amortisation of acquired intangible assets
    
    
    707
    
    
    
    700Total
    
    
    893
    
    
    
    1,036
 8.
    
    Operating loss
 2010
    
    
    2009£000s
    
    
    £000sOperating loss is stated after charging/(crediting):Direct profit categories:Sale of goods
    
    
    (2,286
    )
    
    
    (1,742
    )Rendering of services
    
    
    (25,525
    )
    
    
    (23,532
    )Included in cost of sales:Cost of inventories recognised as expense
    
    
    2,183
    
    
    
    4,138Included in administrative expenses:Employee benefit expenses
    
    
    21,139
    
    
    
    19,914Depreciation of PPE
    
    
    256
    
    
    
    434Amortisation of intangible assets
    
    
    1,097
    
    
    
    935Rentals under operating leases
    
    
    2,038
    
    
    
    2,106Gains on disposal of PPE
    
    
    53
    
    
    
    (Gain)/loss on the translation of foreign currencies
    
    
    (36
    )
    
    
    109
 www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2010     39




---



##### 



Notes to the Consolidated Financial Statements
 8.
    
    Operating loss(continued)
    2010
    
    
    2009Auditors remuneration
    
    £000s
    
    
    £000sServices provided by the companys auditor and its associates:Fees payable to the companys auditor for the audit of parent company
and consolidated financial statements
    
    
    65
    
    
    
    75Fees payable to the companys auditor and its associates
for other services The audit of companys subsidiaries persuant to legislation
    
    
    137
    
    
    
    137 Other services persuant to legislation
    
    
    
    
    
    
    33 Tax services
    
    
    40
    
    
    
    128Total
    
    
    242
    
    
    
    373
 9.
    
    Employee benefit expenses
  2010
    
    
    2009Number
    
    
    NumberSales
    
    
    71
    
    
    
    92Operations
    
    
    211
    
    
    
    216Central services
    
    
    36
    
    
    
    19Total
    
    
    318
    
    
    
    327
  2010
    
    
    2009£000s
    
    
    £000sWages and salaries
    
    
    18,904
    
    
    
    17,554Social security costs
    
    
    1,437
    
    
    
    1,449Pension costs  defined benefit plan (note 22)
    
    
    314
    
    
    
    273Pension costs  defined contribution plans
    
    
    298
    
    
    
    302Share options granted to directors and employees
    
    
    186
    
    
    
    336Total
    
    
    21,139
    
    
    
    19,914
 10.
    
    Directors emoluments
 2010
    
    
    2009£000s
    
    
    £000sEmoluments
    
    
    559
    
    
    
    502Termination benefits
    
    
    15
    
    
    
    173Share based payments
    
    
    129
    
    
    
    69Pension contributions  defined contribution
    
    
    29
    
    
    
    28Total
    
    
    732
    
    
    
    772
   40     GoIndustry-DoveBid plc annual report and accounts 2010
    
    www.go-dove.com




---



##### 



2010
    
    
    2009£000s
    
    
    £000sShortterm employee benefits
    
    
    1,799
    
    
    
    1,813Postemployment benefits
    
    
    78
    
    
    
    173Share based payments
    
    
    179
    
    
    
    151Total
    
    
    2,056
    
    
    
    2,137
  11.
    
    Finance income and costs
 2010
    
    
    2009£000s
    
    
    £000sFinance income:Interest income on shortterm bank deposits
    
    
    82
    
    
    
    141Finance costs:Bank borrowings
    
    
    (147
    )
    
    
    (358
    )Convertible loan notes
    
    
    (207
    )
    
    
    (614
    )Convertible loan notes restructuring interest
    
    
    
    
    
    
    (414
    )(354
    )
    
    
    (1,386
    )Total
    
    
    (272
    )
    
    
    (1,245
    )
 12.
    
    Income tax expense
 2010
    
    
    2009£000s
    
    
    £000sCurrent tax:Current tax
    
    
    100
    
    
    
    170Deferred tax (note 21)
    
    
    (327
    )
    
    
    Total tax (credit)/charge
    
    
    (227
    )
    
    
    170Loss before income tax
    
    
    (689
    )
    
    
    (4,665
    )Tax at the UK corporation tax rate of 28% (2009: 28%)
    
    
    (193
    )
    
    
    (1,306
    )Effect of different income tax rate of other countries
    
    
    53
    
    
    
    (70
    )Deferred tax not recognised
    
    
    
    
    
    
    262Current year tax losses not recognised
    
    
    1,056
    
    
    
    1,111Tax effect of utilisation of tax losses not previously recognised
    
    
    (1,466
    )
    
    
    Share based payments expense not deductible
    
    
    52
    
    
    
    94Expenditure not deductible for income tax purposes
    
    
    271
    
    
    
    79Total tax (credit)/charge
    
    
    (227
    )
    
    
    170
 www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2010     41




---



##### 



Notes to the Consolidated Financial Statements
 13.
    
    Earnings per share
 2010
    
    
    2009£000s
    
    
    £000sLoss for the year attributable to equity holders of the company
    
    
    (359
    )
    
    
    (4,916
    )
 Number
    
    
    Number000s
    
    
    000sWeighted average number of new ordinary shares in issue
(2009 converted  note 23)
    
    
    9,790
    
    
    
    6,284Basic and diluted loss  pence per share
    
    
    (3.7p
    )
    
    
    (78.2p
    )
 £000s
    
    
    £000sLoss for the year attributable to equity holders of the company
    
    
    (359
    )
    
    
    (4,916
    )Add back:Exceptional items
    
    
    409
    
    
    
    2,187Other costs
    
    
    893
    
    
    
    1,036Adjusted profit/(loss) attributable to equity holders of the Company
    
    
    943
    
    
    
    (1,693
    )Adjusted basic profit/(loss)  pence per share
    
    
    9.6p
    
    
    
    (26.9p
    )
 Number
    
    
    Number000s
    
    
    000sWeighted average number of new ordinary shares in issue (2009 converted 
note 23)
    
    
    9,790
    
    
    
    6,284Dilutive effect of share options
    
    
    56
    
    
    
    n/aWeighted average number of new ordinary shares for diluted earnings per share
    
    
    9,846
    
    
    
    6,284Adjusted diluted profit/(loss)  pence per share
    
    
    9.6p
    
    
    
    (26.9p
    )
   42     GoIndustry-DoveBid plc annual report and accounts 2010
    
    www.go-dove.com




---



##### 



14. Property, plant & equipment
 Furniture,fittings andBuildings
    
    
    Vehicles
    
    
    equipment
    
    
    Total£000s
    
    
    £000s
    
    
    £000s
    
    
    £000sCostAt 1 January 2009
    
    
    1,172
    
    
    
    483
    
    
    
    2,467
    
    
    
    4,122Exchanges differences
    
    
    (77
    )
    
    
    (12
    )
    
    
    (276
    )
    
    
    (365
    )Additions
    
    
    
    
    
    
    59
    
    
    
    35
    
    
    
    94Disposals
    
    
    (23
    )
    
    
    (39
    )
    
    
    (208
    )
    
    
    (270
    )At 1 January 2010
    
    
    1,072
    
    
    
    491
    
    
    
    2,018
    
    
    
    3,581Exchanges differences
    
    
    (40
    )
    
    
    26
    
    
    
    59
    
    
    
    45Additions
    
    
    8
    
    
    
    6
    
    
    
    50
    
    
    
    64Disposals
    
    
    (466
    )
    
    
    (28
    )
    
    
    (74
    )
    
    
    (568
    )At 31 December 2010
    
    
    574
    
    
    
    495
    
    
    
    2,053
    
    
    
    3,122Accumulated depreciationAt 1 January 2009
    
    
    470
    
    
    
    339
    
    
    
    1,884
    
    
    
    2,693Exchanges differences
    
    
    (50
    )
    
    
    (5
    )
    
    
    (338
    )
    
    
    (393
    )Charge for the year
    
    
    83
    
    
    
    40
    
    
    
    311
    
    
    
    434Disposals
    
    
    (13
    )
    
    
    (11
    )
    
    
    (155
    )
    
    
    (179
    )At 1 January 2010
    
    
    490
    
    
    
    363
    
    
    
    1,702
    
    
    
    2,555Exchanges differences
    
    
    (20
    )
    
    
    17
    
    
    
    43
    
    
    
    40Charge for the year
    
    
    51
    
    
    
    29
    
    
    
    176
    
    
    
    256Disposals
    
    
    (15
    )
    
    
    (10
    )
    
    
    (54
    )
    
    
    (79
    )At 31 December 2010
    
    
    506
    
    
    
    399
    
    
    
    1,867
    
    
    
    2,772Net book valueAt 31 December 2010
    
    
    68
    
    
    
    96
    
    
    
    186
    
    
    
    350At 1 January 2010
    
    
    582
    
    
    
    128
    
    
    
    316
    
    
    
    1,026At 1 January 2009
    
    
    702
    
    
    
    144
    
    
    
    583
    
    
    
    1,429
 www.go-dove.com
    
    GoIndustry-DoveBid plc
annual report and accounts 2010     43




---



##### 



Notes to the Consolidated Financial Statements
  15. Intangible assets
 Acquired
    
    
    
    
    
    
    Software andcustomer
    
    
    Acquired
    
    
    systemsGoodwill
    
    
    Trademarks
    
    
    relationships
    
    
    brands
    
    
    development
    
    
    Total£000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000sCostAt 1 January 2009
    
    
    50,711
    
    
    
    
    
    
    
    3,246
    
    
    
    1,051
    
    
    
    3,074
    
    
    
    58,082Exchanges differences
    
    
    (4,225
    )
    
    
    
    
    
    
    (295
    )
    
    
    (96
    )
    
    
    (393
    )
    
    
    (5,009
    )Additions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    394
    
    
    
    394Disposals
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12
    )
    
    
    (12
    )At 1 January 2010
    
    
    46,486
    
    
    
    
    
    
    
    2,951
    
    
    
    955
    
    
    
    3,063
    
    
    
    53,455Exchanges differences
    
    
    2,372
    
    
    
    
    
    
    
    88
    
    
    
    28
    
    
    
    47
    
    
    
    2,535Additions
    
    
    
    
    
    
    48
    
    
    
    
    
    
    
    
    
    
    
    567
    
    
    
    615Disposals
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1
    )
    
    
    (1
    )At 31 December 2010
    
    
    48,858
    
    
    
    48
    
    
    
    3,039
    
    
    
    983
    
    
    
    3,676
    
    
    
    56,604Accumulated impairment/amortisationAt 1 January 2009
    
    
    19,378
    
    
    
    
    
    
    
    413
    
    
    
    134
    
    
    
    2,407
    
    
    
    22,332Exchanges differences
    
    
    (1,848
    )
    
    
    
    
    
    
    67
    
    
    
    (57
    )
    
    
    (297
    )
    
    
    (2,135
    )Charge for the year
    
    
    
    
    
    
    
    
    
    
    602
    
    
    
    98
    
    
    
    235
    
    
    
    935Disposals
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12
    )
    
    
    (12
    )At 1 January 2010
    
    
    17,530
    
    
    
    
    
    
    
    1,082
    
    
    
    175
    
    
    
    2,333
    
    
    
    21,120Exchanges differences
    
    
    2,122
    
    
    
    
    
    
    
    32
    
    
    
    3
    
    
    
    52
    
    
    
    2,209Charge for the year
    
    
    
    
    
    
    4
    
    
    
    608
    
    
    
    99
    
    
    
    386
    
    
    
    1,097Disposals
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    At 31 December 2010
    
    
    19,652
    
    
    
    4
    
    
    
    1,722
    
    
    
    277
    
    
    
    2,771
    
    
    
    24,426Net book valueAt 31 December 2010
    
    
    29,206
    
    
    
    44
    
    
    
    1,317
    
    
    
    706
    
    
    
    905
    
    
    
    32,178At 1 January 2010
    
    
    28,956
    
    
    
    
    
    
    
    1,869
    
    
    
    780
    
    
    
    730
    
    
    
    32,335At 1 January 2009
    
    
    31,333
    
    
    
    
    
    
    
    2,833
    
    
    
    917
    
    
    
    667
    
    
    
    35,750
  2010
    
    
    2009£000s
    
    
    £000sEurope
    
    
    8,378
    
    
    
    8,390North America
    
    
    15,232
    
    
    
    15,109Asia Pacific
    
    
    5,596
    
    
    
    5,457Total
    
    
    29,206
    
    
    
    28,956
  2010
    
    
    2009£000s
    
    
    £000sEurope
    
    
    14,661
    
    
    
    5,995North America
    
    
    10,412
    
    
    
    9,150Asia Pacific
    
    
    1,409
    
    
    
    3,089Total
    
    
    26,482
    
    
    
    18,234
 44     GoIndustry-DoveBid plc annual report and accounts 2010
    
    www.go-dove.com




---



##### 




    
    Cash flows for 2011 are forecast based on the budget for 2011 which was approved by
the Board in December 2010;
 
    
    Cash flows for 2012 and 2013 use forecast Direct Profit (DP) growth rates of 10%
and 15% respectively, and expense growth rates of 7.5% and 10% respectively. These rates
reflect the experience of the Directors;
 
    
    Cash flows beyond 2013 are extrapolated using a longterm growth rate of 2.25%. As
the business is primarily a service provider, and not capital intensive, the Directors feel
that an annuity basis rather than a 5 year period is reasonable, and the rate is based on the
Directors expectations of future changes in the markets;
 
    
    Central overheads are borne by the CGUs, where deemed appropriate by the Directors,
and allocated based on their best estimates;
 
    
    Cash flows were discounted using a rate of 10% that reflects current market
assessments for the time value of money and the risks associated with the CGUs as the Group
manages its treasury function on a Group wide basis. The same discount rate has been used for
all CGUs as the Directors believe that the risks are substantially the same for each CGU.
  2012 DP
    
    
    Long-term
    
    
    Cashflowgrowth
    
    
    growth
    
    
    discount rate%
    
    
    %
    
    
    %Europe
    
    
    4.9
    %
    
    
    -26.4
    %
    
    
    27.8
    %North America
    
    
    7.3
    %
    
    
    -9.2
    %
    
    
    17.4
    %Asia Pacific
    
    
    8.6
    %
    
    
    -3.4
    %
    
    
    13.5
    %
  16. Inventories
 2010
    
    
    2009£000s
    
    
    £000sGoods for sale as part of Principal Deals
    
    
    334
    
    
    
    597Total
    
    
    334
    
    
    
    597
  17. Trade and other receivables
 2010
    
    
    2009£000s
    
    
    £000sTrade receivables
    
    
    2,433
    
    
    
    3,403Prepayments and accrued income
    
    
    1,850
    
    
    
    2,047Other taxes
    
    
    
    
    
    
    309Other receivables
    
    
    1,232
    
    
    
    890Total
    
    
    5,515
    
    
    
    6,649
 www.go-dove.com
    
    GoIndustry-DoveBid plc
annual report and accounts 2010     45




---



##### 



Notes to the Consolidated Financial Statements
  17. Trade and other receivables
  2010
    
    
    2009£000s
    
    
    £000sTrade receivables
    
    
    2,478
    
    
    
    3,564Provision for impairment of trade receivables
    
    
    (45
    )
    
    
    (161
    )Total
    
    
    2,433
    
    
    
    3,403
  2010
    
    
    2009£000s
    
    
    £000sUp to three months
    
    
    2,002
    
    
    
    2,334Three to six months
    
    
    83
    
    
    
    665Greater than six months
    
    
    348
    
    
    
    404Total
    
    
    2,433
    
    
    
    3,403
  2010
    
    
    2009£000s
    
    
    £000sOpening balance
    
    
    (161
    )
    
    
    (677
    )Decrease/(increase) in provision
    
    
    97
    
    
    
    (97
    )Utilised against trade receivables written off
    
    
    19
    
    
    
    613Closing balance
    
    
    (45
    )
    
    
    (161
    )
 18. Cash and cash equivalents
 2010
    
    
    2009£000s
    
    
    £000sOwn cash on hand and at bank
    
    
    1,678
    
    
    
    2,672Shortterm bank deposits
    
    
    8,462
    
    
    
    12,060Monies held under guarantee
    
    
    5,780
    
    
    
    6,019Total
    
    
    15,920
    
    
    
    20,751Less: Amounts due to clients (note 19)
    
    
    (12,237
    )
    
    
    (16,236
    )Net cash
    
    
    3,683
    
    
    
    4,515
 46     GoIndustry-DoveBid plc annual report and accounts 2010
    
    www.go-dove.com




---



##### 



19. Trade and other payables
 2010
    
    
    2009£000s
    
    
    £000sCurrentTrade Payables
    
    
    3,455
    
    
    
    3,489Amounts due to clients (note 18)
    
    
    12,237
    
    
    
    16,236Social security and other taxes
    
    
    2,115
    
    
    
    2,546Accrued expenses
    
    
    3,615
    
    
    
    3,340Total
    
    
    21,422
    
    
    
    25,611Non-currentSocial security and other taxes
    
    
    
    
    
    
    156Accrued expenses
    
    
    
    
    
    
    202Other
    
    
    10
    
    
    
    Total
    
    
    10
    
    
    
    358
 20. Borrowings
 2010
    
    
    2009£000s
    
    
    £000sCurrentBank loans and overdrafts
    
    
    1,087
    
    
    
    2,084Convertible loan notes
    
    
    500
    
    
    
    Subordinated loan notes
    
    
    466
    
    
    
    233Total
    
    
    2,053
    
    
    
    2,317Non-currentBank loans and overdrafts
    
    
    1,162
    
    
    
    1,287Convertible loan notes
    
    
    
    
    
    
    500Subordinated loan notes
    
    
    
    
    
    
    261Total
    
    
    1,162
    
    
    
    2,048
  2010
    
    
    2009£000s
    
    
    £000sFloating rateExpiring within one year
    
    
    1,087
    
    
    
    2,084Fixed rateExpiring within one year
    
    
    966
    
    
    
    233Expiring beyond one year
    
    
    1,162
    
    
    
    2,048Total
    
    
    3,215
    
    
    
    4,365
      www.go-dove.com
    
    GoIndustry-DoveBid plc
annual report and accounts 2010     47




---



##### 



Notes to the Consolidated Financial Statements
  21. Deferred tax asset
 Tax losses£000sAt 1 January 2009 and 2010
    
    
    Credit to statement of comprehensive income
    
    
    (327
    )At 31 December 2010
    
    
    (327
    )
   22. Retirement benefit obligations
      2010
    
    
    2009£000s
    
    
    £000sBalance sheet obligations for Pension benefits
    
    
    3,358
    
    
    
    4,581Income statement charge for Pension benefits (note 9)
    
    
    314
    
    
    
    273Present value of funded obligations
    
    
    14,134
    
    
    
    13,828Fair value of plan assets
    
    
    (10,776
    )
    
    
    (9,247
    )Liability in the balance sheet
    
    
    3,358
    
    
    
    4,581
  2010
    
    
    2009£000s
    
    
    £000sBeginning of year
    
    
    13,828
    
    
    
    11,071Current service costs
    
    
    
    
    
    
    11Interest cost
    
    
    781
    
    
    
    696Actuarial (gain)/loss on scheme liabilities
    
    
    (224
    )
    
    
    2,454Benefits paid
    
    
    (251
    )
    
    
    (404
    )End of year
    
    
    14,134
    
    
    
    13,828
 48     GoIndustry-DoveBid plc annual report and accounts 2010
    
    www.go-dove.com




---



##### 



22. Retirement benefit obligations
  2010
    
    
    2009£000s
    
    
    £000sFair value of scheme assets at start of year
    
    
    9,247
    
    
    
    8,173Expected return on scheme assets
    
    
    612
    
    
    
    579Actuarial gain on scheme assets
    
    
    463
    
    
    
    304Contributions by the Company
    
    
    850
    
    
    
    740Benefits paid
    
    
    (251
    )
    
    
    (404
    )Scheme administration costs paid by the Group
    
    
    (145
    )
    
    
    (145
    )Fair value of scheme assets at end of year
    
    
    10,776
    
    
    
    9,247
  2010
    
    
    2009£000s
    
    
    £000sCurrent service cost
    
    
    
    
    
    
    11Interest on obligation
    
    
    781
    
    
    
    696Expected return on scheme assets
    
    
    (612
    )
    
    
    (579
    )Scheme administration costs paid by the Group
    
    
    145
    
    
    
    145Total included in staff costs (note 9)
    
    
    314
    
    
    
    273
   2010
    
    
    2010
    
    
    2009
    
    
    2009£000s
    
    
    %
    
    
    £000s
    
    
    %Equity instruments
    
    
    5,495
    
    
    
    51.0
    %
    
    
    4,759
    
    
    
    51.5
    %Debt instruments
    
    
    5,065
    
    
    
    47.0
    %
    
    
    4,419
    
    
    
    47.8
    %Other
    
    
    216
    
    
    
    2.0
    %
    
    
    69
    
    
    
    0.7
    %Pension assets
    
    
    10,776
    
    
    
    100.0
    %
    
    
    9,247
    
    
    
    100.0
    %
  2010
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006£000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000sPresent value of defined benefit obligation
    
    
    14,134
    
    
    
    13,828
    
    
    
    11,071
    
    
    
    12,696
    
    
    
    12,147Fair value of plan assets
    
    
    (10,776
    )
    
    
    (9,247
    )
    
    
    (8,173
    )
    
    
    (9,200
    )
    
    
    (8,573
    )Deficit
    
    
    3,358
    
    
    
    4,581
    
    
    
    2,898
    
    
    
    3,496
    
    
    
    3,574Experience adjustments on plan liabilities
    
    
    224
    
    
    
    (2,454
    )
    
    
    2,122
    
    
    
    (243
    )
    
    
    1,412Experience adjustments on plan assets
    
    
    463
    
    
    
    304
    
    
    
    (1,692
    )
    
    
    22
    
    
    
    149
 www.go-dove.com
    
    GoIndustry-DoveBid plc
annual report and accounts 2010     49




---



##### 



Notes to the Consolidated Financial Statements
  22. Retirement benefit obligations
  2010
    
    
    2009%
    
    
    %Discount rate
    
    
    5.4
    %
    
    
    5.7
    %Expected return on scheme assets
    
    
    6.3
    %
    
    
    6.5
    %Price inflation
    
    
    3.4
    %
    
    
    3.6
    %Pension increases: Pensions accrued before 6 April 1997
    
    
    
    
    
    
    Pensions accrued after 6 April 1997
    
    
    3.3
    %
    
    
    3.6
    %
   23. Share capital and premium
 Redeemable deferred
    
    
    Deferred shares of
    
    
    Ordinary shares of
    
    
    New ordinary sharesshares of 4p each
    
    
    99p each
    
    
    1p each
    
    
    of 1p eachNumber
    
    
    Ordinary
    
    
    Number
    
    
    Ordinary
    
    
    Number
    
    
    Ordinary
    
    
    Number
    
    
    Ordinary
    
    
    Shareof shares
    
    
    shares
    
    
    of shares
    
    
    shares
    
    
    of shares
    
    
    shares
    
    
    of shares
    
    
    shares
    
    
    premium000s
    
    
    £000s
    
    
    000s
    
    
    £000s
    
    
    000s
    
    
    £000s
    
    
    000s
    
    
    £000s
    
    
    £000sAt 1 Jan 2009
    
    Opening balance
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    471,658
    
    
    
    23,583
    
    
    
    
    
    
    
    
    
    
    
    18,8722 Jan 2009
    
    Subdivision of  ordinary shares
    
    
    471,658
    
    
    
    18,866
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (18,866
    )
    
    
    
    
    
    
    
    
    
    
    25 Jun 2009
    
    Cancellation of own shares held
    
    
    (4,239
    )
    
    
    (170
    )
    
    
    
    
    
    
    
    
    
    
    (4,239
    )
    
    
    (42
    )
    
    
    
    
    
    
    
    
    
    
    11 Sept 2009
    
    Shares issued
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    250,723
    
    
    
    2,507
    
    
    
    
    
    
    
    
    
    
    
    2,00611 Sept 2009
    
    Conversion of loan notes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    241,288
    
    
    
    2,413
    
    
    
    
    
    
    
    
    
    
    
    1,92311 Sept 2009
    
    Additional shares to convertible loan note holder
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    15,000
    
    
    
    150
    
    
    
    
    
    
    
    
    
    
    
    12011 Sept 2009
    
    Cancellation of redeemable deferred shares
    
    
    (467,419
    )
    
    
    (18,696
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11 Sept 2009
    
    Less: cost of shares issued
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (426
    )At 1 Jan 2010
    
    Opening balance
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    974,430
    
    
    
    9,745
    
    
    
    
    
    
    
    
    
    
    
    22,49525 Feb 2010
    
    Issue of deferred share consideration
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,420
    
    
    
    54
    
    
    
    
    
    
    
    
    
    
    
    48823 Jun 2010
    
    Restructuring
    
    
    
    
    
    
    
    
    
    
    9,798
    
    
    
    9,701
    
    
    
    (979,850
    )
    
    
    (9,799
    )
    
    
    9,798
    
    
    
    98
    
    
    
    22 Dec 2010
    
    Cancellation of deferred shares
    
    
    
    
    
    
    
    
    
    
    (9,798
    )
    
    
    (9,701
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    At 31 Dec 2010 Closing balance
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,798
    
    
    
    98
    
    
    
    22,983
 50     GoIndustry-DoveBid plc annual report and accounts 2010
    
    www.go-dove.com




---



##### 



23. Share capital and premium
    Share based payments
  New 1p ordinary shares in 2010
    
    
    Ordinary 1p shares in 2009Vesting
    
    
    Exercise price
    
    
    Number
    
    
    Exercise price
    
    
    NumberDate of grant
    
    conditions
    
    
    in pence
    
    
    of shares
    
    
    in pence
    
    
    of shares23 September 2010
    
    
    1
    
    
    
    97.5p
    
    
    
    35,000
    
    
    
    
    
    
    
    12 July 2010
    
    
    1
    
    
    
    57.0p
    
    
    
    97,985
    
    
    
    
    
    
    
    25 June 2010
    
    
    1
    
    
    
    70.0p
    
    
    
    97,443
    
    
    
    
    
    
    
    25 June 2010
    
    
    1
    
    
    
    75.0p
    
    
    
    2,500
    
    
    
    
    
    
    
    28 September 2009
    
    
    1
    
    
    
    200.0p
    
    
    
    292,328
    
    
    
    2.00p
    
    
    
    29,232,88128 September 2009
    
    
    2
    
    
    
    242.0p
    
    
    
    7,500
    
    
    
    2.42p
    
    
    
    800,0005 December 2008
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    5.00p
    
    
    
    100,00027 June 2008
    
    
    2
    
    
    
    1000.0p
    
    
    
    7,250
    
    
    
    10.00p
    
    
    
    975,00022 May 2008
    
    
    2
    
    
    
    1050.0p
    
    
    
    10,000
    
    
    
    10.50p
    
    
    
    1,150,00030 January 2008
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    11.75p
    
    
    
    500,00025 July 2007
    
    
    2
    
    
    
    500.0p
    
    
    
    44,763
    
    
    
    5.00p
    
    
    
    5,476,32225 July 2007
    
    
    2
    
    
    
    1,800.0p
    
    
    
    10,000
    
    
    
    18.00p
    
    
    
    1,000,00025 July 2007
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    17.00p
    
    
    
    600,00019 July 2007
    
    
    2
    
    
    
    1,875.0p
    
    
    
    9,000
    
    
    
    18.75p
    
    
    
    1,035,00020 November 2006
    
    
    
    
    
    
    5,445.0p
    
    
    
    158
    
    
    
    54.45p
    
    
    
    15,86220 November 2006
    
    
    
    
    
    
    2,700.0p
    
    
    
    158
    
    
    
    27.00p
    
    
    
    15,8624 March 2006
    
    
    
    
    
    
    1,280.0p
    
    
    
    30,437
    
    
    
    12.80p
    
    
    
    3,043,7941 April 2005
    
    
    
    
    
    
    1,000.0p
    
    
    
    30,000
    
    
    
    10.00p
    
    
    
    3,000,00031 December 2004
    
    
    
    
    
    
    1,278.0p
    
    
    
    13,218
    
    
    
    12.78p
    
    
    
    1,321,8621 May 2003
    
    
    
    
    
    
    1,500.0p
    
    
    
    6,384
    
    
    
    15.00p
    
    
    
    638,5071 May 2003
    
    
    
    
    
    
    1,499.0p
    
    
    
    1,065
    
    
    
    14.99p
    
    
    
    106,5571 January 2003
    
    
    
    
    
    
    5,445.0p
    
    
    
    1,454
    
    
    
    54.45p
    
    
    
    145,4051 January 2003
    
    
    
    
    
    
    2,722.0p
    
    
    
    1,454
    
    
    
    27.22p
    
    
    
    145,40531 October 2002
    
    
    
    
    
    
    5,445.0p
    
    
    
    5,320
    
    
    
    54.45p
    
    
    
    553,83131 October 2002
    
    
    
    
    
    
    2,722.0p
    
    
    
    5,238
    
    
    
    27.22p
    
    
    
    545,60619 October 2002
    
    
    
    
    
    
    4,473.0p
    
    
    
    6,586
    
    
    
    44.73p
    
    
    
    658,86730 August 2002
    
    
    
    
    
    
    4,473.0p
    
    
    
    29,836
    
    
    
    44.73p
    
    
    
    2,983,6021 March 2002
    
    
    
    
    
    
    4,473.0p
    
    
    
    1,586
    
    
    
    44.73p
    
    
    
    158,6231 October 2001
    
    
    
    
    
    
    2,236.0p
    
    
    
    3,648
    
    
    
    22.36p
    
    
    
    364,8301 October 2001
    
    
    
    
    
    
    1,278.0p
    
    
    
    2,891
    
    
    
    12.78p
    
    
    
    289,1071 September 2001
    
    
    
    
    
    
    1,278.0p
    
    
    
    273
    
    
    
    12.78p
    
    
    
    27,34712 December 2000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    141.62p
    
    
    
    127,7041 September 2000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    141.62p
    
    
    
    39,1801 August 2000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    141.62p
    
    
    
    14,37111 July 2000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    44.09p
    
    
    
    7,00012 May 2000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    44.09p
    
    
    
    32,5492 March 2000
    
    
    
    
    
    
    4,473.0p
    
    
    
    688
    
    
    
    44.73p
    
    
    
    68,874Total
    
    
    
    
    
    
    
    
    
    
    754,163
    
    
    
    
    
    
    
    55,173,948
 www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2010     51




---



##### 



Notes to the Consolidated Financial Statements
  23. Share capital and premium
 Conditions of Post Admission Options:
  
  Weightedaverage Exerciseprice penceper share
    
    
    No. of SharesBalance at 1 January 2010
    
    
    9.6p
    
    
    
    55,173,948Issued
    
    Options of Ordinary shares
    
    
    
    
    
    
    Lapsed:
    
    pre-vesting
    
    
    10.0p
    
    
    
    (50,000
    )options over
    
    post-vesting
    
    
    6.7p
    
    
    
    (1,087,760
    )Balance of options over Ordinary shares of 1p each prior to consolidation
23 June 2010
    
    
    9.7p
    
    
    
    54,036,188Balance of options over New Ordinary shares of 1p each after consolidation
    
    
    969.2p
    
    
    
    540,348Issued
    
    Options of New Ordinary shares
    
    
    68.7p
    
    
    
    232,928Lapsed:
    
    pre-vesting
    
    
    369.6p
    
    
    
    (10,000
    )post-vesting
    
    
    225.1p
    
    
    
    (9,113
    )Balance at 31 December 2010
    
    
    
    
    649.7p
    
    
    
    754,163New Ordinary Shares exerciseable at 31 December 2010
    
    
    1,660.5p
    
    
    
    204,157Ordinary shares exerciseable at 31 December 2009
    
    
    25.7p
    
    
    
    14,305,021
 
  2010
    
    2009Valuation method
    
    Binomial
    
    Black-ScholesShare price at the date of grant
    
    57p-98p
    
    2p-10pExpected volatility
    
    58.3%-38.5%
    
    58.3%-38.5%Expected option life at grant date (years)
    
    3
    
    3Risk-free interest rate
    
    1.02%-4.46%
    
    1.02%-4.46%Weighted average fair value per option at the grant date
    
    35.4p
    
    5p
  52     GoIndustry-DoveBid plc annual report and accounts 2010
    
    www.go-dove.com




---



##### 



24. Other reserves
 ForeignAcquisition
    
    
    currency
    
    
    Share optionsreserve
    
    
    reserve
    
    
    reserve
    
    
    Total£000s
    
    
    £000s
    
    
    £000s
    
    
    £000sAt 1 January 2009
    
    
    47,649
    
    
    
    7,236
    
    
    
    1,322
    
    
    
    56,207Currency translation differences
    
    
    
    
    
    
    (2,130
    )
    
    
    
    
    
    
    (2,130
    )Share-based payments
    
    
    
    
    
    
    
    
    
    
    250
    
    
    
    250At 1 January 2010
    
    
    47,649
    
    
    
    5,106
    
    
    
    1,572
    
    
    
    54,327Currency translation differences
    
    
    
    
    
    
    (235
    )
    
    
    
    
    
    
    (235
    )Share-based payments
    
    
    
    
    
    
    
    
    
    
    186
    
    
    
    186At 31 December 2010
    
    
    47,649
    
    
    
    4,871
    
    
    
    1,758
    
    
    
    54,278
 25. Accumulated losses
 £000sAt 1 January 2009
    
    
    (71,882
    )Actuarial loss on defined benefit pension scheme
    
    
    (2,150
    )Loss for the year
    
    
    (4,916
    )Cancellation of shares
    
    
    (888
    )At 1 January 2010
    
    
    (79,836
    )Actuarial gain on defined benefit pension scheme
    
    
    687Loss for the year
    
    
    (359
    )At 31 December 2010
    
    
    (79,508
    )
 26. Capital redemption reserve
 £000sAt 1 January 2009
    
    
    Cancellation of shares
    
    
    18,908At 1 January 2010
    
    
    18,908Cancellation of shares
    
    
    9,701At 31 December 2010
    
    
    28,609
 www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2010     53




---



##### 



Notes to the Consolidated Financial Statements
  27. Operating lease arrangements
  Land andbuildings
    
    
    Vehicles
    
    
    Other
    
    
    Total£000s
    
    
    £000s
    
    
    £000s
    
    
    £000sAmounts falling due:Within one year
    
    
    1,034
    
    
    
    127
    
    
    
    12
    
    
    
    1,173More than one year, but less than five years
    
    
    1,333
    
    
    
    182
    
    
    
    9
    
    
    
    1,524More than five years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    As at 31 December 2010
    
    
    2,367
    
    
    
    309
    
    
    
    21
    
    
    
    2,697
 Land andbuildings
    
    
    Vehicles
    
    
    Other
    
    
    Total£000s
    
    
    £000s
    
    
    £000s
    
    
    £000sAmounts falling due:Within one year
    
    
    946
    
    
    
    118
    
    
    
    25
    
    
    
    1,089More than one year, but
less than five
years
    
    
    1,338
    
    
    
    203
    
    
    
    10
    
    
    
    1,551More than five years
    
    
    55
    
    
    
    
    
    
    
    
    
    
    
    55As at 31 December 2009
    
    
    2,339
    
    
    
    321
    
    
    
    35
    
    
    
    2,695
 28. Cash (used in)/generated from operations
 2010
    
    
    2009£000s
    
    
    £000sLoss before income tax
    
    
    (689
    )
    
    
    (4,665
    )Adjustments for: Depreciation
    
    
    256
    
    
    
    434 Amortisation
    
    
    1,097
    
    
    
    935 Gain on disposal of PPE
    
    
    (53
    )
    
    
     Share based payments
    
    
    186
    
    
    
    336 Net retirement benefit cost
    
    
    169
    
    
    
    117 Finance costs  net
    
    
    272
    
    
    
    1,245 Share of loss from associate
    
    
    
    
    
    
    28Pension contributions by the Company
    
    
    (850
    )
    
    
    (740
    )Changes in working capital: Inventories
    
    
    284
    
    
    
    1,943 Trade and other receivables
    
    
    980
    
    
    
    3,719 Trade and other payables
    
    
    (5,202
    )
    
    
    (140
    )Cash (used in)/generated from operations
    
    
    (3,550
    )
    
    
    3,212
 54     GoIndustry-DoveBid plc annual report and accounts 2010
    
    www.go-dove.com




---



##### 



29. Principal investments
  Country of
    
    Ownership &Company name
    
    incorporatiion
    
    voting control
    
    
    Principal activityAssetTRADE.com Inc
    
    USA
    
    
    100
    %
    
    Holding companyDoveBid UK Ltd
    
    UK
    
    
    100
    %
    
    Asset sales and servicesGoIndustry (Canada) Ltd
    
    Canada
    
    
    100
    %
    
    Asset sales and servicesGoIndustry (Österreich) GmbH
    
    Austria
    
    
    100
    %
    
    Asset sales and servicesGoIndustry (UK) Ltd
    
    UK
    
    
    100
    %
    
    Asset sales and servicesGoIndustry AG
    
    Germany
    
    
    100
    %
    
    Asset sales and servicesGoIndustry Deutschland GmbH
    
    Germany
    
    
    100
    %
    
    Asset sales and servicesGoIndustry DoveBid Asset Management (H.K.) Ltd
    
    Hong Kong
    
    
    100
    %
    
    Asset sales and servicesGoIndustry DoveBid, Inc.
    
    USA
    
    
    100
    %
    
    Asset sales and servicesGoIndustry DoveBid France Sarl
    
    France
    
    
    100
    %
    
    Asset sales and servicesGoIndustry DoveBid Valuations, Inc.
    
    USA
    
    
    100
    %
    
    Valuation servicesGoIndustry DoveBid (S) Pte. Ltd
    
    Singapore
    
    
    100
    %
    
    Asset sales and servicesGoIndustry Operations Ltd UK
    
    UK
    
    
    100
    %
    
    Asset sales and servicesGoIndustry Quippo Valuers & Auctioneers Pvt. Ltd
    
    India
    
    
    50
    %
    
    Asset sales and servicesGoIndustry Trading Ltd
    
    UK
    
    
    100
    %
    
    Asset sales and servicesGoIndustry-DoveBid (Asia) Ltd
    
    Hong Kong
    
    
    100
    %
    
    Asset sales and servicesGoIndustry-DoveBid (Australia) Pty. Ltd
    
    Australia
    
    
    100
    %
    
    Asset sales and servicesGoIndustry-DoveBid (Hong Kong) Ltd
    
    Hong Kong
    
    
    100
    %
    
    Asset sales and servicesGoIndustry-DoveBid (Malaysia) Sdn. Bhd.
    
    Malaysia
    
    
    70
    %
    
    Asset sales and servicesGoIndustry-DoveBid (Nordic) AB
    
    Sweden
    
    
    100
    %
    
    Asset sales and servicesGoIndustry-DoveBid (Shanghai) Co. Ltd
    
    China
    
    
    100
    %
    
    Asset sales and servicesGoIndustry-DoveBid (Taiwan) Ltd
    
    Taiwan
    
    
    100
    %
    
    Asset sales and servicesGoIndustry-DoveBid (Thailand) Ltd
    
    Thailand
    
    
    100
    %
    
    Asset sales and servicesGoIndustry-DoveBid Japan K.K.
    
    Japan
    
    
    100
    %
    
    Asset sales and servicesGoIndustry-DoveBid Korea Co. Ltd
    
    Korea
    
    
    100
    %
    
    Asset sales and servicesGoIndustry-DoveBid Mexico SA de CV
    
    Mexico
    
    
    100
    %
    
    Asset sales and servicesGoIndustry-DoveBid Philippines, Inc.
    
    Philippines
    
    
    100
    %
    
    Asset sales and servicesGoIndustry-DoveBid Valuation (Thailand) Ltd
    
    Thailand
    
    
    100
    %
    
    Asset sales and services
 www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2010     55




---



##### 



Company Statement of Financial Position
  2010
    
    
    2009Note
    
    
    £000s
    
    
    £000sNon-current assetsIntangible assets
    
    
    3
    
    
    
    
    
    
    
    Investments in subsidiaries
    
    
    4
    
    
    
    21,933
    
    
    
    22,873Loans to subsidiary undertakings
    
    
    
    
    
    
    11,199
    
    
    
    8,97533,132
    
    
    
    31,848Current assetsTrade and other receivables
    
    
    5
    
    
    
    11
    
    
    
    81Cash and cash receivables
    
    
    6
    
    
    
    1,417
    
    
    
    3,0731,428
    
    
    
    3,154Total assets
    
    
    
    
    
    
    34,560
    
    
    
    35,002Current liabilitiesTrade and other payables
    
    
    7
    
    
    
    810
    
    
    
    814Borrowings
    
    
    8
    
    
    
    500
    
    
    
    1,310
    
    
    
    814Non-current liabilitiesBorrowings
    
    
    8
    
    
    
    
    
    
    
    500
    
    
    
    500Total liabilities
    
    
    
    
    
    
    1,310
    
    
    
    1,314Net assets
    
    
    
    
    
    
    33,250
    
    
    
    33,688EquityShare capital
    
    
    9
    
    
    
    98
    
    
    
    9,745Share premium
    
    
    9
    
    
    
    22,983
    
    
    
    22,495Shares to be issued
    
    
    
    
    
    
    
    
    
    
    542Capital redemption reserve
    
    
    10
    
    
    
    28,609
    
    
    
    18,908Other reserves
    
    
    11
    
    
    
    20,382
    
    
    
    20,196Accumulated losses
    
    
    12
    
    
    
    (38,822
    )
    
    
    (38,198
    )Total equity
    
    
    
    
    
    
    33,250
    
    
    
    33,688
    Jack Reinelt
    
    Leslie-Ann ReedChief Executive Officer
    
    Chief Financial Officer27 May 2011
    
    27 May 2011
 56     GoIndustry-DoveBid plc annual report and accounts 2010
    
    www.go-dove.com




---



##### 



Company Statement of Changes in Equity
  Capital
    
    
    
    
    
    
    Ownre-
    
    
    
    
    
    
    shares
    
    
    Acqui-
    
    
    Share
    
    
    Accum-Share
    
    
    Share
    
    
    demption
    
    
    Shares to
    
    
    held in
    
    
    sition
    
    
    options
    
    
    ulatedcapital
    
    
    premium
    
    
    reserve
    
    
    be issued
    
    
    trust
    
    
    reserve
    
    
    reserve
    
    
    losses
    
    
    TOTAL£000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000sAt 1 January 2009
    
    
    23,583
    
    
    
    18,872
    
    
    
    
    
    
    
    542
    
    
    
    (974
    )
    
    
    18,624
    
    
    
    1,322
    
    
    
    (15,398
    )
    
    
    46,571Comprehensive income:Loss for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (21,912
    )
    
    
    (21,912
    )Transactions with owners:Cancellation of shares
    
    
    (18,908
    )
    
    
    
    
    
    
    18,908
    
    
    
    
    
    
    
    888
    
    
    
    
    
    
    
    
    
    
    
    (888
    )
    
    
    New shares issued
    
    
    2,657
    
    
    
    2,126
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,783Conversion of loan notes
    
    
    2,413
    
    
    
    1,923
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,336Cost of share issue
    
    
    
    
    
    
    (426
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (426
    )Share based payments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    250
    
    
    
    
    
    
    
    250Transfer of shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    86
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    86Total transactions with owners
    
    
    (13,838
    )
    
    
    3,623
    
    
    
    18,908
    
    
    
    
    
    
    
    974
    
    
    
    
    
    
    
    250
    
    
    
    (888
    )
    
    
    9,029At 1 January 2010
    
    
    9,745
    
    
    
    22,495
    
    
    
    18,908
    
    
    
    542
    
    
    
    
    
    
    
    18,624
    
    
    
    1,572
    
    
    
    (38,198
    )
    
    
    33,688Comprehensive income:Loss for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (624
    )
    
    
    (624
    )Transactions with owners:Issue of deferred share consideration and additional listing
    
    
    54
    
    
    
    488
    
    
    
    
    
    
    
    (542
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Cancellation of redeemable deferred shares held
    
    
    (9,701
    )
    
    
    
    
    
    
    9,701
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Share based payments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    186
    
    
    
    
    
    
    
    186Total transactions with owners
    
    
    (9,647
    )
    
    
    488
    
    
    
    9,701
    
    
    
    (542
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    At 31 December 2010
    
    
    98
    
    
    
    22,983
    
    
    
    28,609
    
    
    
    
    
    
    
    
    
    
    
    18,624
    
    
    
    1,758
    
    
    
    (38,822
    )
    
    
    33,250
 www.go-dove.com
    
    GoIndustry-DoveBid plc
annual report and accounts 2010     57




---



##### 



Company Statement of Cash Flows
 2010
    
    
    2009Note
    
    
    £000s
    
    
    £000sCash flows from operating activitiesCash utilised in operations
    
    
    14
    
    
    
    (1,580
    )
    
    
    (4,790
    )Interest paid
    
    
    
    
    
    
    (106
    )
    
    
    (757
    )Interest received
    
    
    
    
    
    
    30
    
    
    
    314Net cash used in operating activities
    
    
    
    
    
    
    (1,656
    )
    
    
    (5,233
    )Cash flows from financing activitiesProceeds from issuance of ordinary shares
    
    
    
    
    
    
    
    
    
    
    4,087Repayments of borrowings
    
    
    
    
    
    
    
    
    
    
    (134
    )Net cash from financing activities
    
    
    
    
    
    
    
    
    
    
    3,953Net decrease in cash and cash equivalents
    
    
    
    
    
    
    (1,656
    )
    
    
    (1,280
    )Cash and cash equivalents at beginning of year
    
    
    
    
    
    
    3,073
    
    
    
    4,353Cash and cash equivalents at end of year
    
    
    
    
    
    
    1,417
    
    
    
    3,073
  58     GoIndustry-DoveBid plc annual report and accounts 2010
    
    www.go-dove.com




---



##### 



Notes to the Company Financial Statements
 1.
    
    Summary of significant accounting policies
 Basis of preparation
   Loss for the year
  Investments
  2.
    
    Financial risk management
  2.1
    
    Market risk(a)
    
    Foreign exchange risk
  (b)
    
    Interest rate risk
  2.2
    
    Credit risk
  www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2010     59




---



##### 



Notes to the Company Financial Statements
 2.3
    
    Liquidity risk
   2010
 Recog-
    
    
    Contra-
    
    
    Totalnised
    
    
    ctual
    
    
    contra-Effective
    
    
    asset/
    
    
    interest
    
    
    ctual
    
    
    6 months
    
    
    6-12
    
    
    1-5interest
    
    
    (liability)
    
    
    payable
    
    
    cashflow
    
    
    or less
    
    
    months
    
    
    yearsrate
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000sLoans and receivablesLoan to subsidiaries
    
    
    
    
    
    
    11,199
    
    
    
    
    
    
    
    11,199
    
    
    
    
    
    
    
    
    
    
    
    11,199Bank deposits
    
    
    0.25
    %
    
    
    1,417
    
    
    
    4
    
    
    
    1,421
    
    
    
    1,421
    
    
    
    
    
    
    
    Financial
liabilities measured at amortised costTrade payables
    
    
    
    
    
    
    (130
    )
    
    
    
    
    
    
    (130
    )
    
    
    (130
    )
    
    
    
    
    
    
    Amounts payable to subsidiary
undertakings
    
    
    
    
    
    
    (459
    )
    
    
    
    
    
    
    (459
    )
    
    
    (459
    )
    
    
    
    
    
    
    Accrued expenses
    
    
    
    
    
    
    (221
    )
    
    
    
    
    
    
    (221
    )
    
    
    (221
    )
    
    
    
    
    
    
    Convertible loan notes
    
    
    12
    %
    
    
    (500
    )
    
    
    (60
    )
    
    
    (560
    )
    
    
    (30
    )
    
    
    (530
    )
    
    
    11,306
    
    
    
    (56
    )
    
    
    11,250
    
    
    
    581
    
    
    
    (530
    )
    
    
    11,199
  Recognised
    
    
    Contractual
    
    
    TotalEffective
    
    
    asset/
    
    
    interest
    
    
    contractual
    
    
    6 months
    
    
    6-12
    
    
    1-5interest
    
    
    (liability)
    
    
    payable
    
    
    cashflow
    
    
    or less
    
    
    months
    
    
    yearsrate
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000s
    
    
    £000sLoans and receivablesLoan to subsidiaries
    
    
    
    
    
    
    8,975
    
    
    
    
    
    
    
    8,975
    
    
    
    
    
    
    
    
    
    
    
    8,975Bank deposits
    
    
    0.75
    %
    
    
    3,073
    
    
    
    23
    
    
    
    3,096
    
    
    
    3,096
    
    
    
    
    
    
    
    Financial liabilities measured
at amortised costTrade payables
    
    
    
    
    
    
    (118
    )
    
    
    
    
    
    
    (118
    )
    
    
    (118
    )
    
    
    
    
    
    
    Amounts payable to subsidiary
undertakings
    
    
    
    
    
    
    (285
    )
    
    
    
    
    
    
    (285
    )
    
    
    (285
    )
    
    
    
    
    
    
    Accrued expenses
    
    
    
    
    
    
    (371
    )
    
    
    
    
    
    
    (371
    )
    
    
    (371
    )
    
    
    
    
    
    
    Convertible loan notes
    
    
    12
    %
    
    
    (500
    )
    
    
    (120
    )
    
    
    (620
    )
    
    
    (30
    )
    
    
    (30
    )
    
    
    (560
    )10,774
    
    
    
    (120
    )
    
    
    10,677
    
    
    
    2,292
    
    
    
    (30
    )
    
    
    8,415
 60     GoIndustry-DoveBid plc annual report and accounts 2010
    
    www.go-dove.com




---



##### 



3.
    
    Intangible assets
 Software andsystemsdevelopment£000sCost:At 1 January 2009 and 2010
    
    
    10Additions
    
    
    At 31 December 2010
    
    
    10Accumulated amortisation:At 1 January 2009
    
    
    5Charge for the year
    
    
    5At 1 January 2010
    
    
    10Charge for the year
    
    
    At 31 December 2010
    
    
    10Net book value:At 31 December 2010
    
    
    At 1 January 2010
    
    
    At 1 January 2009
    
    
    5
 4.
    
    Investments in subsidiaries
 £000sCost:At 1 January 2009
    
    
    31,651Impairment of investments
    
    
    (11,496
    )Capital contribution to subsidiary undertaking
    
    
    206Additional investment in subsidiary
    
    
    2,512At 1 January 2010
    
    
    22,873Converted to loan to subsidiary undertaking
    
    
    (997
    )Capital contribution to subsidiary undertaking
    
    
    57At 31 December 2010
    
    
    21,933
   5.
    
    Trade and other receivables
 2010
    
    
    2009£000s
    
    
    £000sCurrent:Taxes receivable
    
    
    
    
    
    
    68Prepayments
    
    
    11
    
    
    
    13Total
    
    
    11
    
    
    
    81
 www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2010     61




---



##### 



Notes to the Company Financial Statements
 6.
    
    Cash and cash equivalents
 2010
    
    
    2009£000s
    
    
    £000sOwn cash on hand and at bank
    
    
    46
    
    
    
    100Short-term bank deposits
    
    
    1,371
    
    
    
    2,973Total
    
    
    1,417
    
    
    
    3,073
 7.
    
    Trade and other payables
 2010
    
    
    2009£000s
    
    
    £000sTrade payables
    
    
    130
    
    
    
    118Amounts payable to subsidiary undertakings
    
    
    459
    
    
    
    285Social security and other taxes
    
    
    
    
    
    
    40Accrued expenses
    
    
    221
    
    
    
    371Total
    
    
    810
    
    
    
    814
 8.
    
    Borrowings
 2010
    
    
    2009£000s
    
    
    £000sCurrent:Convertible loan notes
    
    
    500
    
    
    
    Non-current:Convertible loan notes
    
    
    
    
    
    
    500
  9.
    
    Share capital and premium
 Redeemable deferred
    
    
    Deferred shares of
    
    
    Ordinary shares of
    
    
    New ordinary shares ofshares of 4p each
    
    
    99p each
    
    
    1p each
    
    
    1p eachNumber
    
    
    Ordinary
    
    
    Number
    
    
    Ordinary
    
    
    Number
    
    
    Ordinary
    
    
    Number
    
    
    Ordinary
    
    
    Shareof shares
    
    
    shares
    
    
    of shares
    
    
    shares
    
    
    of shares
    
    
    shares
    
    
    of shares
    
    
    shares
    
    
    premium000s
    
    
    £000s
    
    
    000s
    
    
    £000s
    
    
    000s
    
    
    £000s
    
    
    000s
    
    
    £000s
    
    
    £000sAt 1 Jan 2009
    
    Opening balance
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    471,658
    
    
    
    23,583
    
    
    
    
    
    
    
    
    
    
    
    18,8722 Jan 2009
    
    Sub-division of ordinary shares
    
    
    471,658
    
    
    
    18,866
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (18,866
    )
    
    
    
    
    
    
    
    
    
    
    25 Jun 2009
    
    Cancellation of own shares held
    
    
    (4,239
    )
    
    
    (170
    )
    
    
    
    
    
    
    
    
    
    
    (4,239
    )
    
    
    (42
    )
    
    
    
    
    
    
    
    
    
    
    11 Sept 2009
    
    Shares issued
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    250,723
    
    
    
    2,507
    
    
    
    
    
    
    
    
    
    
    
    2,00611 Sept 2009
    
    Conversion of loan notes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    241,288
    
    
    
    2,413
    
    
    
    
    
    
    
    
    
    
    
    1,92311 Sept 2009
    
    Additional shares to convertible loan note holder
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    15,000
    
    
    
    150
    
    
    
    
    
    
    
    
    
    
    
    12011 Sept 2009
    
    Cancellation of redeemable deferred shares
    
    
    (467,419
    )
    
    
    (18,696
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11 Sept 2009
    
    Less: cost of shares issued
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (426
    )At 1 Jan 2010
    
    Opening balance
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    974,430
    
    
    
    9,745
    
    
    
    
    
    
    
    
    
    
    
    22,49525 Feb 2010
    
    Issue of deferred share consideration and additional listing
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,420
    
    
    
    54
    
    
    
    
    
    
    
    
    
    
    
    48823 Jun 2010
    
    Restructuring
    
    
    
    
    
    
    
    
    
    
    9,798
    
    
    
    9,701
    
    
    
    (979,850
    )
    
    
    (9,799
    )
    
    
    9,798
    
    
    
    98
    
    
    
    22 Dec 2010
    
    Cancellation of deferred shares
    
    
    
    
    
    
    
    
    
    
    (9,798
    )
    
    
    (9,701
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    At 31 Dec 2010
    
    Closing balance
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,798
    
    
    
    98
    
    
    
    22,983
 62     GoIndustry-DoveBid plc annual report and accounts 2010
    
    www.go-dove.com




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##### 



10.
    
    Capital redemption reserve
 £000sAt 1 January 2009
    
    
    Cancellation of own shares held
    
    
    18,908At 1 January 2010
    
    
    18,908Cancellation of own shares held
    
    
    9,701At 31 December 2010
    
    
    28,609
 11.
    
    Other reserves
 Acquisition
    
    
    Shareoptionsreserve
    
    
    reserve
    
    
    Total£000s
    
    
    £000s
    
    
    £000sAt 1 January 2009
    
    
    18,624
    
    
    
    1,322
    
    
    
    19,946Share based payments
    
    
    
    
    
    
    44
    
    
    
    44Capital contribution to subsidiary undertaking
    
    
    
    
    
    
    206
    
    
    
    206At 1 January 2010
    
    
    18,624
    
    
    
    1,572
    
    
    
    20,196Share based payments
    
    
    
    
    
    
    129
    
    
    
    129Capital contribution to subsidiary undertaking
    
    
    
    
    
    
    57
    
    
    
    57At 31 December 2010
    
    
    18,624
    
    
    
    1,758
    
    
    
    20,382
 12.
    
    Accumulated losses
 £000sAt 1 January 2009
    
    
    (15,398
    )Loss for the year
    
    
    (21,912
    )Cancellation of shares
    
    
    (888
    )At 1 January 2010
    
    
    (38,198
    )Loss for the year
    
    
    (624
    )At 31 December 2010
    
    
    (38,822
    )
 www.go-dove.com
    
    GoIndustry-DoveBid plc annual report and accounts 2010     63




---



##### 



Notes to the Company Financial Statements
 13.
    
    Related party transactions
   2010
    
    
    2009£000s
    
    
    £000sShort-term employee benefits
    
    
    816
    
    
    
    410Post-employment benefits
    
    
    
    
    
    
    173Share-based payments
    
    
    129
    
    
    
    44Total
    
    
    945
    
    
    
    627
 14.
    
    Cash used in operations
 2010
    
    
    2009£000s
    
    
    £000sLoss before income tax
    
    
    (624
    )
    
    
    (21,912
    )Adjustments for: Amortisation
    
    
    
    
    
    
    5 Share based payments
    
    
    129
    
    
    
    130 Finance costs  net
    
    
    76
    
    
    
    713 Impairment of investments
    
    
    
    
    
    
    11,564Changes in working capital: Trade and other receivables
    
    
    (1,157
    )
    
    
    4,448 Trade and other payables
    
    
    (4
    )
    
    
    262Cash used in operations
    
    
    (1,580
    )
    
    
    (4,790
    )
 64     GoIndustry-DoveBid plc annual report and accounts 2010
    
    www.go-dove.com




---



##### 



Independent auditors report
   Respective responsibilities of directors and auditors
  Scope of the audit of the financial statements
  Opinion on the financial statements
  
    
    the financial statements give a true and fair view of the state of the groups and the parents affairs as at
31 December 2009 and of the groups loss for the year then ended;
    
    the group financial statements have been properly prepared in accordance with IFRSs as
adopted by the European
Union;
    
    the parent financial statements have been properly prepared in accordance with IFRSs
as adopted by the European
Union and as applied in accordance with the Companies Act 2006; and
    
    the financial statements have been prepared in accordance with the requirements of the
Companies Act 2006.
 Opinion on other matter prescribed by the Companies Act 2006
  Matters on which we are required to report by exception
  
    
    adequate accounting records have not been kept by the parent company, or returns
adequate for our audit have not been received from branches not visited by us; or
    
    the parent company financial statements are not in agreement with the accounting
records and returns; or
    
    certain disclosures of directors remuneration specified by
law are not made; or
    
    we have not received all the information and explanations we require
for our audit.
 
   10




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



Credit risk
   In thousands
    

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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



In thousands of pounds
    
    2009

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




---



##### 



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

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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



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