rightmove plcannual report ain brit moves/media/files/r/rightmove/reports-and... · althorp...

rightmove p

lc annual report 2011

Rightmove plc 4th Floor 33 Soho Square London W1D 3QU Registered in England no 6426485

Millions of home hunters use Rightmove on the move.iPhone app | iPad app | Mobile site

Scan the QR code to visit the investor section of the Rightmove website.

Rightmove plc annual report 2011

Britain moves at

Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchesghtmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at

Rightmove.co.uk is the UK’s largest property portal.Our aim is to be the place for all UK home movers to find details of all properties available to buy or rent. The website provides an easy-to-use but sophisticated online property search. With the depth of information that it provides, home hunters can immediately identify a preferred property.The service is directed at four key membership groups:• estate agents• lettings agents• new homes developers• overseas homes agents offering properties outside the UK but interested

in advertising to UK-based home hunters.

Rightmove plc

1 Highlights

2 Chairman’s statement

rightmove plc annual report 2011

corporate governancebusiness review

financial statements

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Rightmove continues to drive a strong conversion of profits to cash enabling us to return all of the cash from operating activities in 2011 to shareholders through either dividends or the repurchase of shares. In 2011 we bought back 4.4m shares at an average price of £11.10 per share whilst increasing dividends by 29% to 18.0p (2010: 14.0p). In total we returned £65.1m to shareholders through dividends and share buy backs.

Results do not come without investment in employees. While our business model is not labour intensive, with 300 employees at the year end, we are very pleased to have judiciously added to the ranks of senior management ensuring that the skills and experience are available to maintain high standards of service to customers and home seekers alike.

I want to express my thanks to our employees who continue to put their efforts into making Rightmove the best place for home hunters to find their next home and for property advertisers to reach the widest possible audience.

Financial resultsIn terms of financial results, 2011 set new records for both revenue and profits. Underlying operating profit(1) was up 23% to £69.4m (2010: £56.6m) driven by strong organic revenue growth coupled with a lower increase in operating costs year on year. Underlying basic earnings per share (EPS)(1) was up 26% to 50.3p (2010: 39.8p). The increase in EPS was strengthened by the repurchase of 4.4m (2010: 4.2m) shares. As at 31 December 2011 the net cash position was £21.8m (2010: £23.1m).

It is my pleasure to present Rightmove plc’s results for the year ended 31 December 2011.

Rightmove stakeholders have much to be pleased about based on 2011 performance across a variety of measures. Most importantly, Rightmove has become synonymous with property advertising and is one of the top ten most popular websites in the UK. With over nine billion page impressions served on our fixed internet, mobile and tablet platforms, 2011 was the busiest year in our history. Website traffic grew 22% year on year generating record visibility and enquiries for our advertisers.

For several years Rightmove has been evolving from a simple subscription business model to become a provider of a broad set of property advertising products for our customers. We are especially pleased that over two-thirds of our customers now take advantage of this wider product set, allowing them to better promote their properties, brand and proposition.

The diversity of our product offerings and industry leading reach contributed to another record operating performance with revenue and underlying operating profit(1) increasing by 19% and 23% respectively. Our sustained growth has seen Rightmove move from a new entrant into the FTSE 350 five years ago, into one of the top 200 listed UK companies by market capitalisation and in 2011 Rightmove’s share price was the second best performing of any FTSE 350 company.

Annual General Meeting and resolutionsThe resolutions being proposed at the Annual General Meeting are similar in nature to resolutions from prior years. A summary of the business to be conducted is described in the Directors’ Report. The Notice of Annual General Meeting will be published in March 2012. I and the rest of the Board look forward to answering any questions and updating shareholders further on the development of the business at our Annual General Meeting which will take place at 10am on 9 May 2012 at the offices of UBS Limited at 1 Finsbury Avenue, London, EC2M 2PP.

On behalf of shareholders, I would like to thank Ed Williams and his team for the achievements of the past year. With healthy growth in average spend per advertiser at the start of the year and in the absence of any unexpected and significant deterioration in the UK housing market, the Board remains confident of growing the business further in 2012.

Scott ForbesChairman

Sale of Holiday LettingsIn October 2011 we received the final £4.9m of contingent consideration from the June 2010 sale of our 66.7% shareholding in Holiday Lettings (Holdings) Limited. The final cumulative net proceeds from this sale were £21.4m, of which £1.7m will remain in escrow until 2014.

DividendThe Board announced that it would increase the interim dividend to 7.0p per ordinary share which was paid on 11 November 2011. Consistent with our policy of increasing the total dividend for the year in line with underlying operating profits, the Board proposes to pay a final dividend of 11.0p (2010: 9.0p) per ordinary share for a total dividend for the year of 18.0p (2010: 14.0p). The final dividend, subject to shareholder approval, will be paid on 8 June 2012 to all shareholder on the register on 11 May 2012.

The Board of directorsI was delighted to announce the appointment of Peter Brooks-Johnson to the Board as an executive director on 10 January 2011. Peter joined Rightmove in 2006 and has led our main operating business since 2009. His appointment demonstrates the depth of talent within the business.

My thanks go to the Board more generally for its contribution and support over the last year.

chairman’s statement

“ Rightmove continues to drive a strong conversion of profits to cash enabling us to return all of the cash from operating activities in 2011 to shareholders through either dividends or the repurchase of shares.”

(1) From continuing operations and before share-based payments and NI on share-based incentives and no related adjustment for tax.

Scott Forbes Chairman

6 Investment in the future

7 Key performance indicators




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Just because you’re

not on it

doesn’t mean your

customers won’t be!

How to increase awareness of your brand and property stock on Facebook withRightmove

00024_SocMed_8pp_v3.indd 1 31/08/2011 11:05

perfSee all our properties 24/7 on

4

Your personalised open/closed signTaking passers-by directly to YOUR branch properties on Rightmove - and only yours

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Market share

84%

of the market share of the top 4 Uk property websites by pages

viewed, 2% up on 2010source: experian hitwise and rightmove:

December 2011 and December 2010

enqUiries

19.6 million

enquiries up from 18.6 million enquiries in 2010

corporate estate agents anD new hoMe Developers

96%

24/25 of both the largest corporate estate agents and new homes

developers advertise on rightmove.co.uk

nUMber of aDvertisers

18,276total membership at end of 2011

was 18,276 (2010: 18,042), up 1.3% year on year

Mobile

228 million

searches across mobile platforms up 168%

from 85 million in 2010

Uk’s largest property portal

no.1property website

average revenUe per aDvertiser

£443per month, up 17% on 2010

properties DisplayeD

1.1million

properties displayed on rightmove.co.uk at 31 December 2011,

same as 2010

page iMpressions

9.3 billion

page impressions up from 7.6 billion in 2010

source: rightmove

key performance indicators

the key performance indicators that we monitor include:

investment in the future

SHOW HOME NOW OPEN

helping new home developers

see page 8

Most popular UK websites

1. Facebook2. Google UK3. eBay UK4. YouTube5. Amazon UK6. Yahoo! UK & Ireland Mail7. Rightmove 8. BBC News 9. Tumblr10. Yahoo! UK & IrelandSource: Experian Hitwise, January 2012

innovation

see page 12

our brand

see page 14

supporting our agents

see page 10

4 Business and financial review




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It has also been a year of investment in new products which will be launched in 2012. These include three products for use on our mobile platforms and the introduction of the local valuation alert service for agents eager to win more sales instructions.

Our focusOur focus remains the UK online property advertising market. We see this sustained focus as a strength of the business and a key contributor to our success.

We believe that Rightmove would be a major beneficiary of any increase in the number of agents in the market or number of developments being marketed by new homes developers. However, that is more a function of improvements in the wider property market and economic outlook. We remain committed to increasing the absolute amount and the proportion of their overall marketing budgets that our customers choose to spend with us.

Uncertainties, threats and risksThe Rightmove business model has proven to be remarkably resilient in the unprecedented downturn in the property market experienced in 2008. We have been able to grow significantly even in the difficult housing market thereafter. The numbers of estate agents, lettings agents and new home developers are inevitably affected by the level of property transactions, which continue to be below historic trading levels. We do not believe, given the wider state of the economy and the specific challenges of the mortgage market, that 2012 will see any substantial increase in transaction volumes as compared to the past three years.

In 2011, we increased the number of account managers to allow us to spend more time with customers and help them understand the wider range of benefits to be derived from Rightmove membership. These benefits include management information and reporting tools, competitor comparisons and reports and marketing material which customers can use directly with home sellers and landlords.

Innovation in advertising products2011 saw strong growth in the adoption of our additional advertising products, particularly the display advertising products introduced in 2010 and email campaigns for new home developers. Around half our revenue growth has come from spend on additional advertising products.

Taking the year as a whole, 25% of revenue came from spending by our customers over and above that spent on listing properties, as compared to 21% in 2010. In absolute terms, spending on these products was up 43% on the previous year. We would expect to see the proportion of total spending accounted for by these and future similar products rise in the coming years.

Many of our customers continued to take advantage of a scheme we offer, where for a commitment to spend an additional amount every month all year (typically £275 per month in 2011) they can select whatever combination of our additional advertising products they wish in return for a discount against the individual list price of the products. Adoption of this scheme has resulted both in a significant increase in the average spend on Rightmove per advertiser and a continued high predictability of our income streams.

In support of our new home developers, we have launched development specific micro-sites which provide home movers with more comprehensive information on the development and its environs.

SHOW HOME NOW OPEN


business and financial review continued

neW HOMe develOpeRs

96%

24/25 of the largest new home developers advertise on

Rightmove.co.uk




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Cash flow and net debtCash generated from operations was £67.7m (2010: £58.8m). Cash conversion was 108% of operating profit.

Tax payments increased to £14.3m (2010: £12.2m) resulting in net cash from operating activities of £53.4m (2010: £46.5m).

Capital expenditure was £0.5m (2010: £1.2m). The higher expenditure in 2010 reflected increased investment in database licences and a disk storage solution.

The final element of consideration received from the sale of HLL in June 2010 contributed a further £4.9m of cash in the year.

Proceeds of £6.1m (2010: £3.9m) were received on the exercise of share-based incentives.

A total of £48.3m was invested during 2011 in the repurchase of our own shares (2010: £29.4m) whilst a further £16.8m was paid in dividends (2010: £13.0m).

The Group entered into an agreement with Barclays Bank Plc for a £10.0m uncommitted money market loan. To date no amount has been drawn under the facility and it has been extended for a further year until February 2013.

As a result of the cash movement noted above, net cash at 31 December 2011 was £21.8m (2010: £23.1m). The Board is confident that with the existing cash resources and banking facilities in place, the Group and the Company will remain cash positive and will have adequate resources to continue in operational existence for the foreseeable future.

Net financial expensesA net financial credit of £0.1m (2010: £0.2m) was recorded, being interest income on cash balances, off-set by bank charges and fees in relation to our money market facility. Earnings per shareUnderlying basic EPS(1) increased 26% to 50.3p (2010: 39.8p). Diluted EPS(2) increased 22% to 42.3p (2010: 34.6p). The growth in EPS was helped by our share buy back programme which reduced the weighted average number of ordinary shares in issue to 104.8m (2010: 108.0m).

Profit on disposal of HLLA further profit of £0.5m has been recognised in relation to the sale of HLL. This is due to the final element of consideration being higher than estimated due to a better than expected performance by the HLL business.

Statement of financial positionThe Group’s statement of financial position remains strong with total equity of £24.7m at 31 December 2011 (2010: £27.9m) and cash balances of £21.8m (2010: £23.1m).

As a result of better trading, trade receivables in current assets increased by 29% to £13.1m (2010: £10.2m). Trade and other payables increased by £4.9m to £20.9m (2010: £16.0m) mainly due to an increase in the accrual for the potential liability for employer’s NI on share-based incentives together with an increase in deferred revenue. Our deferred tax assets have grown to £10.7m (2010: £6.7m) representing future tax benefits from share-based incentives.

continuing a record of innovation

During 2011 we have continued to invest in serving home movers. We launched a brand new version of the iPhone App, which now includes key features such as synchronisation with the main website and map based searching. This App has been downloaded around 1.5m times.

mOBILE

228 million

searches across mobile platforms up 168% from 85m in 2010

16 Directors and officers

18 Senior management team

19 Corporate social responsibility

21 Directors’ report

24 Corporate governance

30 Remuneration report

43 Auditor’s report

44 Consolidated statement of comprehensive income

45 Consolidated statement of financial position

46 Company statement of financial position

47 Consolidated statement of cash flows

48 Company statement of cash flows

49 Consolidated statement of changes in shareholders’ equity

50 Company statement of changes in shareholders’ equity

51 Notes (forming part of the financial statements)

84 Advisers and shareholder information

Contents

Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Liz moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. James moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Jenny moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Robyn moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Bob moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Mark moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchesghtmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Cherry moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves

Designed and produced by TeamPublishing www.teampublishing.co.uk




1

Revenue

+19%

Revenue up to £97.0m (2010: £81.6m)

dividend

+29%

Final dividend 11.0p Total dividend 18.0p

pRoFiT

+23%

underlying operating profit(1) increased to

£69.4m (2010: £56.6m)

•Revenueincreasedby19%to£97.0m(2010:£81.6m)•Underlyingoperatingprofit(1) increased by 23% to £69.4m (2010: £56.6m)•Underlyingoperatingmargin(1) up to 71.5% (2010: 69.4%)•Underlyingbasicearningspershare(1) up 26% to 50.3p (2010: 39.8p)•Dilutedearningspershare(2) up 22% to 42.3p (2010: 34.6p)•Netcashat31December2011of£21.8m(2010:£23.1m)•4.4msharesboughtbackduring2011(2010:4.2m)atanaverage priceof£11.10(2010:£7.05)

•Numberofadvertisersgrewby1%to18,276(2010:18,042)•Averagerevenueperadvertiser(ARPA)up17%to£443permonth (2010:£379permonth)

•Proposedfinaldividendof11.0p(2010:9.0p)makingatotaldividend of18.0pfortheyear(2010:14.0p),up29%

highlights

(1) Fromcontinuingoperationsbeforeshare-basedpayments,NIonshare-basedincentivesandnorelatedadjustmentfortax.(2) From continuing operations.

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Rightmovecontinuestodriveastrongconversionofprofits tocashenablingustoreturnallofthecashfromoperatingactivitiesin2011toshareholdersthrougheitherdividends ortherepurchaseofshares.In2011weboughtback4.4msharesatanaveragepriceof£11.10persharewhilstincreasing dividends by 29% to 18.0p (2010: 14.0p). Intotalwereturned£65.1mtoshareholdersthroughdividendsandsharebuybacks.Resultsdonotcomewithoutinvestmentinemployees.

Whileourbusinessmodelisnotlabourintensive,with300employeesattheyearend,weareverypleasedto havejudiciouslyaddedtotheranksofseniormanagementensuringthattheskillsandexperienceareavailabletomaintainhighstandardsofservicetocustomersandhomeseekersalike.Iwanttoexpressmythankstoouremployeeswho

continuetoputtheireffortsintomakingRightmovethebestplaceforhomehunterstofindtheirnexthomeandforpropertyadvertiserstoreachthewidestpossibleaudience.

Financial resultsIntermsoffinancialresults,2011setnewrecordsfor bothrevenueandprofits.Underlyingoperatingprofit(1) was up 23% to £69.4m (2010: £56.6m) driven by strong organic revenuegrowthcoupledwithalowerincreaseinoperatingcostsyearonyear.Underlyingbasicearningspershare(EPS)(1) wasup26%to50.3p(2010:39.8p).TheincreaseinEPS wasstrengthenedbytherepurchaseof4.4m(2010:4.2m)shares.Asat31December2011thenetcashpositionwas£21.8m (2010: £23.1m).

ItismypleasuretopresentRightmoveplc’sresultsfortheyear ended 31 december 2011.Rightmovestakeholdershavemuchtobepleasedabout

basedon2011performanceacrossavarietyofmeasures.Mostimportantly,RightmovehasbecomesynonymouswithpropertyadvertisingandisoneofthetoptenmostpopularwebsitesintheUK.Withoverninebillionpageimpressionsservedonourfixedinternet,mobileandtabletplatforms,2011wasthebusiestyearinourhistory.Websitetrafficgrew22%yearonyeargeneratingrecordvisibilityandenquiriesfor our advertisers.ForseveralyearsRightmovehasbeenevolvingfroma

simple subscription business model to become a provider ofabroadsetofpropertyadvertisingproductsforourcustomers.Weareespeciallypleasedthatovertwo-thirds ofourcustomersnowtakeadvantageofthiswiderproductset,allowingthemtobetterpromotetheirproperties,brandand proposition. Thediversityofourproductofferingsandindustryleading

reachcontributedtoanotherrecordoperatingperformancewithrevenueandunderlyingoperatingprofit(1) increasing by 19%and23%respectively.OursustainedgrowthhasseenRightmovemovefromanewentrantintotheFTSE350fiveyearsago,intooneofthetop200listedUKcompaniesbymarketcapitalisation,andin2011Rightmove’ssharepricewasthesecondbestperformingofanyFTSE350company.






3

Annual General Meeting and resolutionsTheresolutionsbeingproposedattheAnnualGeneralMeetingaresimilarinnaturetoresolutionsfromprioryears. AsummaryofthebusinesstobeconductedisdescribedintheDirectors’Report.TheNoticeofAnnualGeneralMeetingwillbepublishedinMarch2012.IandtherestoftheBoardlookforwardtoansweringanyquestionsandupdatingshareholdersfurtheronthedevelopmentofthebusinessatourAnnualGeneralMeetingwhichwilltakeplaceat10am on9May2012attheofficesofUBSLimitedat1FinsburyAvenue,London,EC2M2PP.

Onbehalfofshareholders,IwouldliketothankEdWilliamsandhisteamfortheachievementsofthepastyear.WithhealthygrowthinaveragespendperadvertiseratthestartoftheyearandintheabsenceofanyunexpectedandsignificantdeteriorationintheUKhousingmarket,theBoardremainsconfidentofgrowingthebusinessfurtherin2012.


Sale of Holiday LettingsInOctober2011wereceivedthefinal£4.9mofcontingentconsiderationfromtheJune2010saleofour66.7%shareholdinginHolidayLettings(Holdings)Limited.Thefinalcumulativenetproceedsfromthissalewere£21.4m,ofwhich£1.7mwillremaininescrowuntil2014.

DividendTheBoardannouncedthatitwouldincreasetheinterimdividendto7.0pperordinarysharewhichwaspaidon11November2011.Consistentwithourpolicyofincreasingthetotaldividendfortheyearinlinewithunderlyingoperatingprofits,theBoardproposestopayafinaldividendof11.0p(2010:9.0p)perordinaryshareforatotaldividendforthe yearof18.0p(2010:14.0p).Thefinaldividend,subjecttoshareholderapproval,willbepaidon8June2012to allshareholdersontheregisteron11May2012.

The Board of directorsIwasdelightedtoannouncetheappointmentof PeterBrooks-JohnsontotheBoardasanexecutive directoron10January2011.PeterjoinedRightmovein 2006andhasledourmainoperatingbusinesssince2009.Hisappointmentdemonstratesthedepthoftalentwithin thebusiness.MythanksgototheBoardmoregenerallyforits

contributionandsupportoverthelastyear.

“Rightmovecontinuestodriveastrongconversionofprofitstocashenablingustoreturnallofthecashfromoperatingactivitiesin2011toshareholdersthrougheitherdividendsortherepurchaseofshares.”

(1)Fromcontinuingoperationsandbeforeshare-basedpaymentsandNIonshare-basedincentivesandnorelatedadjustmentfortax.

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What we do and the keys to successRightmoveprovidesestateagents,lettingsagentsand newhomesdevelopersaccesstothelargestaudienceof UKhomemoversbyenablingthemtoadvertisealltheirpropertiesonRightmoveforamonthlysubscriptionfee.Customerscanalsotakeadvantageofawidersetofadvertisingproductstopromotetheirproperties,brand and proposition.Rightmove’ssuccesscomesfromitsmarketleading

positionwithUKhomemoversandthevalueweaddtoouradvertisersbygivingthemtheabilitytoreachthelargestaudienceofUKhomemovers.Webelievethefoundations ofoursuccesscomefrom:•sustainedinvestmentinservinghomemovers•sustainedinvestmentinourbrand•sustainedsupportforouradvertisers•innovationinadvertisingproducts.

Sustained investment in serving home moversHomemoversuseRightmovebecauseitrepresentstheeasiestandmostfamiliarwayinwhichtoviewthebestinformationaboutpropertiescurrentlyavailableonthemarket.Theeaseofuseandqualityofinformationweprovideto

homemoversresultsnotjustfromthescaleofourinvestmentintheRightmove.co.ukwebsitebutalsotheexperiencewehavebuiltupovermorethanadecade.During2011wehavecontinuedtoinvestinservinghome

movers.WelaunchedabrandnewversionoftheiPhoneApp,whichnowincludeskeyfeaturessuchassynchronisationwiththemainwebsiteandmapbasedsearching.ThisApphasbeendownloadedaround1.5mtimes.Welaunchedanewsearchdedicatedtocommercialpropertyandamarketleading‘soldprices’researchtoolwhichmakesuseofourunrivalledpropertyarchive.Forthenewhomesmarketwelaunched

RightmoveisthemethodofchoicebywhichthevastmajorityofpeopleinBritainlookfortheirnexthome.In2011,activityonourwebsiteincreasedsignificantlytonewrecordlevels,our lead over our nearest competitor widened to its greatest everandwemaintainedourstatusasoneofthetoptenUKwebsitesbytraffic.Revenues,profitsandearningspershare(EPS)wereall

significantlyhigherthaninanypreviousyearinRightmove’shistoryandreflectanotheryearofstronggrowth.Thegrowthwasalmostentirelyasaresultofourexistingagentsanddevelopersspendingmorewithus.Thedemandforourrangeofadditionaladvertisingproductswasparticularlystrongwithspendingontheseproductsup43%over2010.Ouradvertisingbaseofestateagents,lettingsagentsand

newhomedevelopersgrewby1%.Thisisinspiteof2011beingyetanotherchallengingyearforthehousingmarket,withtransactionvolumesin2011beinglittledifferentfrom2008,2009and2010,whichisaroundhalfthehistoriclevels.Wedonotanticipatethat2012housingtransactionswillbeatsignificantlyhigherlevels.

Our 2011 resultsProfitaftertax(2) increased 20% to £46.1m (2010: £38.5m). underlying operating profit(1) was up 23% to £69.4m (2010:£56.6m).Organicrevenuegrowthdroveoverallrevenueto£97.0m(2010:£81.6m),whichwasup19%ontheprioryear,andwithourunderlyingcostbase(1) rising byonly11%wehaveagaindemonstratedthescalabilityandprofitabilityoftheRightmovebusinessmodel.Wereturnedallthecashflowgeneratedbythebusiness

duringtheyeartoourshareholdersthroughdividendsandsharebuybacks.ThecontingentelementfromthesaleofHolidayLettings(HLL)inJune2010contributedafurther£4.9mincash.

business and financial review

Ed Williams Managing director

Nick McKittrick ChiefOperatingOfficer and Finance director




5

unpaidlinksfromothersites.Theremaindercomesfromorganicsearch,forwhichwedonotpay.Wecontinuetoexploitopportunitieswithinsocialmedia,

forexample,viaour‘like’and‘share’buttonstoFacebook.TheRightmovebrandwasseenover135mtimesonFacebookin2011.Wealsousesocialmediatoengagedirectlywithhomemoversthroughinitiativessuchasour‘SelleroftheMonth’competitionandviaconversationonbothourFacebookandTwitterbrandedchannels.Whilsttheseprovideeffectiveadditionalchannelstoreachhomemovers,thereisstillnoevidencethathomehuntingactivityitselfismigratingtosocial media environments.

Sustained support for our advertisersOurprogrammeoffreeseminarsforagentstookusto 30venuesacrosstheUKin2011.Over5,000agents havetakenuptheinvitationtoattendtheseeventsinthe lastfewyears.TheseminarsaimtohelpourmemberstobemoresuccessfulandtogetthemostfromtheirRightmovemembership,byprovidinglocalmarketinsightand Rightmoveexpertise.Theyalsoenableustosharebestpracticeinotherareassuchashowagentscanusesocialmediatotheiradvantage.Inthecurrentmarket,acommonissueforagentsishowto

persuadehousevendorstopricetheirpropertiescompetitively.Tosupportagentswiththismessageweranaconsumercampaignduringthethirdquarterof2011inwhichwehighlightedthefactthatonlyhalfthepropertiesplacedonthemarketactuallysellandweurgedvendors‘nottoleaveittochance’.ThecampaignranonlocalradioandtheRightmovewebsiteandincludedashortvideowithhelpfulguidancetovendorsonhowtoensurethattheirpropertywassaleable, whichwasviewednearly60,000times.

developmentspecificmicro-siteswhichprovidehomemoverswithmorecomprehensiveinformationonthedevelopmentandits environs. Theseinvestmentsandmanyotherscontributedtoan

increaseinhomemoverusageofRightmove.Pageimpressions were up 22% to 9.3bn (2010: 7.6bn) and accordingtoExperianHitwise,Rightmoveservedalmostdoublethenumberofpagesofpropertyinformationthanall theotherfourteenhundredUKpropertywebsitesservedintotalandaroundtentimesthatofournearestcompetitor. Inaddition,wesawabigincreaseinthevolumeofhomehuntingactivityonourmobileplatformsin2011withthenumberofsearchesupover150%on2010.

Sustained investment in our brandRightmovebenefitsfrommorethantenyearsofinvestmentinourbrandandwecontinuetoinvesttomaintainthestrengthofourbrandrecognitionandourmarketleadingposition.Thelaunchofournewpositioning‘Britainmovesat

Rightmove’buildsonthefactthatRightmoveispartofthefabricofeverydaylife.ThisisterritorythatisuniquelyoursandisborneoutbythesheervolumeoftrafficonRightmove.WeranTVcampaignsinJanuaryandFebruary,inApril,

SeptemberandOctober,andatChristmasandinto2012. Thisisthemostextensivecoverageduringanyyearinourhistory.ThecampaignsappeartohavehelpedgenerateevengreaterawarenessofRightmoveamongsthomemoversaswell as delivering on our commitment to our advertisers to ensurethattheirpropertiesgetthebestexposure.Rightmove’sinvestmentinitsbrandisakeydefence

againstnewentrantsandconsolidationwithinourindustry. Wecontinuetoreceivearoundfouroutoffivevisitstoourwebsitefrompeopletypinginthe‘Rightmove’name,using ourmobileplatforms,respondingtoouremailalerts,orusing

“Rightmoveisthemethodofchoicebywhich thevastmajorityofpeopleinBritainlookfortheirnexthome.InJanuary2012,weservedover 1bnpagesofpropertyinformation,increasingourpositiontotheseventhmostpopularUKwebsite.”Source:RightmoveandExperianHitwise,January2012

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SHOW HOME NOW OPEN

Helpingnewhomedevelopers

Seepage8



innovation

Seepage12

our brand

Seepage14

Supporting our agents

Seepage10




7

MARKETSHARE

84%

ofthemarketshareofthetop4UKpropertywebsitesbypages

viewed,2%upon2010Source:ExperianHitwiseandRightmove:

december 2011 and december 2010

ENqUIRIES

19.6 million

enquiriesupfrom18.6millionenquiries in 2010

CORPORATEESTATEAGENTS ANDNEWHOMEDEVELOPERS

96%

24/25ofboththelargestcorporate estateagentsandnewhomes

developers advertise on Rightmove.co.uk

NUMBEROFADVERTISERS

18,276Totalmembershipatendof2011was18,276(2010:18,042),

up 1.3% year on year

MOBILE

228 million

searchesacrossmobileplatformsup168%

from85millionin2010

UK’SLARGEST pRopeRTy poRTAL


AVERAGEREVENUE PERADVERTISER

£443permonth,up17%on2010

PROPERTIES DISPLAyED

1.1million

properties displayed on Rightmove.co.ukat 31December2011,

same as 2010

PAGE IMPRESSIONS

9.3 billion

pageimpressionsupfrom 7.6 billion in 2010Source:Rightmove


Thekeyperformanceindicatorsthatwemonitorinclude:

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Insupportofournewhomedevelopers,wehavelauncheddevelopmentspecificmicro-siteswhichprovidehomemoverswithmorecomprehensiveinformation onthedevelopmentanditsenvirons.

SHOW HOME NOW OPEN

helpingnew homedevelopers

NEWHOMEDEVELOPERS

96%

24/25ofthelargestnewhome developers advertise on

Rightmove.co.uk




9

Ithasalsobeenayearofinvestmentinnewproducts whichwillbelaunchedin2012.Theseincludethreeproductsforuseonourmobileplatformsandtheintroductionofthe localvaluationalertserviceforagentseagertowinmore sales instructions.

Our focusOurfocusremainstheUKonlinepropertyadvertisingmarket.Weseethissustainedfocusasastrengthofthebusinessandakeycontributortooursuccess.WebelievethatRightmovewouldbeamajorbeneficiaryof

anyincreaseinthenumberofagentsinthemarketornumberofdevelopmentsbeingmarketedbynewhomesdevelopers.However,thatismoreafunctionofimprovementsinthewiderpropertymarketandeconomicoutlook.Weremaincommittedtoincreasingtheabsoluteamountandtheproportionoftheiroverallmarketingbudgetsthatourcustomerschoosetospendwithus.

Uncertainties, threats and risksTheRightmovebusinessmodelhasproventoberemarkablyresilientintheunprecedenteddownturninthepropertymarketexperiencedin2008.Wehavebeenabletogrowsignificantlyeveninthedifficulthousingmarketthereafter. Thenumbersofestateagents,lettingsagentsandnewhomedevelopersareinevitablyaffectedbythelevelofpropertytransactions,whichcontinuetobebelowhistorictradinglevels.Wedonotbelieve,giventhewiderstateoftheeconomyandthespecificchallengesofthemortgage market,that2012willseeanysubstantialincreaseintransactionvolumesascomparedtothepastthreeyears.

In2011,weincreasedthenumberofaccountmanagerstoallowustospendmoretimewithcustomersandhelpthemunderstandthewiderrangeofbenefitstobederivedfromRightmovemembership.Thesebenefitsincludemanagementinformationandreportingtools,competitorcomparisonsandreportsandmarketingmaterialwhichcustomerscanusedirectlywithhomesellersandlandlords.

Innovation in advertising products2011sawstronggrowthintheadoptionofouradditionaladvertisingproducts,particularlythedisplayadvertisingproductsintroducedin2010andemailcampaignsfornewhomedevelopers.Aroundhalfourrevenuegrowthhascomefromspendonadditionaladvertisingproducts.Takingtheyearasawhole,25%ofrevenuecamefrom

spendingbyourcustomersoverandabovethatspentonlistingproperties,ascomparedto21%in2010.Inabsoluteterms,spendingontheseproductswasup43%onthepreviousyear.Wewouldexpecttoseetheproportionoftotalspendingaccountedforbytheseandfuturesimilarproductsriseinthecomingyears.Manyofourcustomerscontinuedtotakeadvantageof

aschemeweoffer,whereforacommitmenttospendanadditionalamounteverymonthallyear(typically£275permonthin2011)theycanselectwhatevercombinationof ouradditionaladvertisingproductstheywishinreturnfor adiscountagainsttheindividuallistpriceoftheproducts.AdoptionofthisschemehasresultedbothinasignificantincreaseintheaveragespendonRightmoveperadvertiser andacontinuedhighpredictabilityofourincomestreams.

helpingnew homedevelopers


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supporting our agentsIn August 2011 we created a guide to using Facebook for agents to help them increase awareness of their brand and property stock by exploiting the opportunities from using social media.

enquIrIes

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11

RevenuefromtheNewHomesbusinessincreasedby12%to£16.9m(2010:£15.1m)withdevelopmentnumbersstableinthesecondhalfoftheyearsuggestinganendtothedeclinethatstartedinthesecondhalfof2008.OtherrevenuefromourDataServicesandOverseas

businesseswasflatat£2.7m(2010:£2.7m).

Margin growthTheunderlyingoperatingmargin(1)fortheyearincreasedfrom69.4%to71.5%.Thishasbeendrivenbythestrongorganicrevenuegrowthcoupledwithalowerincreaseinunderlyingoperating costs(1). underlying operating costs(1) increased by only£2.7mto£27.7m(2010:£25.0m)withthemajorityoftheincreaseduetoadditionalstaffcostsandmarketing.

TaxationTheconsolidatedtaxratefromcontinuingoperationsfortheyear ended 31 december 2011 was 26.6% (2010: 26.2%).

Share-based payments and national insuranceInaccordancewithIFRS2,anon-cashchargeof£2.3m(2010:£1.8m)isincludedintheincomestatementrepresentingtheamortisationofthefairvalueofshare-basedincentivesgranted,includingSharesaveoptions,since2006.Employer’sNationaIInsurance(NI)isbeingaccrued,where

applicable,atarateof13.8%onthepotentialemployeegainonshare-basedincentivesgranted.Basedonaclosingsharepriceat31December2011of£12.44togetherwiththeactualNIcostonshare-basedincentivesexercisedintheyear,thisresultedinachargeof£4.4m(2010:£2.7m).

However,whilstfurtherlargereductionsinthenumberofagentsanddeveloperscannotberuledout,thesuccessofourcustomersintradingthusfarthroughthehousingmarketdownturn,givesusgroundsforbelievingthatmembershipnumbersareunlikelytofallsignificantly.Withregardtoourcompetitiveenvironment,2011saw

littlechange.AmergerwasannouncedinNovember2011betweenTheDigitalPropertyGroup,ownedbyDMGT,andZoopla.Atthetimeofwriting,theproposedmergerisunderreviewbytheOfficeofFairTrading.Ifthetransactionisapproveditwouldbringtogetherthenextthreelargestpropertyportalsunderasingleownerandbethelatest merger amongst our property portal competitors.Finally,duetothesimplicityoftheRightmovebusiness,

webelievethattherisksrelatingtooperationalfailures,tofinancialandlegalexposures,tofraudorfromonerouscommercialobligationsorliabilitiesarelimited.Thebusinesshasfewtangibleassetsandthemajorintellectualassetsaretiedupinthedesignofourwebsiteandinourbrandidentity,recognition and reputation.

Financial position

RevenueRevenue(2) increased in 2011 by 19% to £97.0m (2010:£81.6m).Themajorityofthegrowthhascomefromsalesofadditionalproductsandincreasestosubscriptionprices.OurAgencybusinesswasthebiggestcontributortotherevenuegrowthwithayearonyearincreaseof£13.6m(2010:£16.7m).Agencyhasalwaysbeenbyfarourlargestbusinessanditsproportionofourtotalrevenueincreased to 80% (2010: 78%).


supporting our our agents

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continuing a recordof innovation

During2011wehavecontinuedtoinvestinservinghomemovers.WelaunchedabrandnewversionoftheiPhoneApp,whichnowincludeskeyfeaturessuchassynchronisationwiththemainwebsiteandmapbasedsearching.ThisApphasbeendownloaded around 1.5m times.

MOBILE

228 million

searchesacrossmobileplatformsup168% from85min2010




13


Cash flow and net debtCashgeneratedfromoperationswas£67.7m(2010:£58.8m).Cashconversionwas108%ofoperatingprofit.Taxpaymentsincreasedto£14.3m(2010:£12.2m)

resultinginnetcashfromoperatingactivitiesof£53.4m (2010: £46.5m).Capitalexpenditurewas£0.5m(2010:£1.2m).Thehigher

expenditurein2010reflectedincreasedinvestmentindatabaselicencesandadiskstoragesolution.Thefinalelementofconsiderationreceivedfromthesale

ofHLLinJune2010contributedafurther£4.9mofcashintheyear.Proceedsof£6.1m(2010:£3.9m)werereceivedonthe

exerciseofshare-basedincentives.Atotalof£48.3mwasinvestedduring2011inthe

repurchaseofourownshares(2010:£29.4m)whilstafurther£16.8m was paid in dividends (2010: £13.0m). TheGroupenteredintoanagreementwithBarclaysBank

Plcfora£10.0muncommittedmoneymarketloanin2010.TodatenoamounthasbeendrawnunderthefacilityandithasbeenextendedforafurtheryearuntilFebruary2013.Asaresultofthecashmovementnotedabove,netcashat

31December2011was£21.8m(2010:£23.1m).TheBoardisconfidentthatwiththeexistingcashresourcesandbankingfacilitiesinplace,theGroupandtheCompanywillremaincashpositiveandwillhaveadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.

Net financial expensesAnetfinancialcreditof£0.1m(2010:£0.2m)wasrecorded,beinginterestincomeoncashbalances,off-setbybankchargesandfeesinrelationtoourmoneymarketfacility. Earnings per shareUnderlyingbasicEPS(1) increased 26% to 50.3p (2010:39.8p).DilutedEPS(2) increased 22% to 42.3p (2010:34.6p).ThegrowthinEPSwashelpedbyoursharebuybackprogrammewhichreducedtheweightedaveragenumberofordinarysharesinissueto104.8m(2010:108.0m).

Profit on disposal of HLLAfurtherprofitof£0.5mhasbeenrecognisedinrelation tothesaleofHLL.ThisisduetothefinalelementofconsiderationbeinghigherthanestimatedduetoabetterthanexpectedperformancebytheHLLbusiness.

Statement of financial positionTheGroup’sstatementoffinancialpositionremains strongwithtotalequityof£24.7mat31December2011 (2010:£27.9m)andcashbalancesof£21.8m (2010: £23.1m).Asaresultofbettertrading,tradereceivablesincurrent

assets increased by 29% to £13.1m (2010: £10.2m). Tradeandotherpayablesincreasedby£4.9mto£20.9m(2010:£16.0m)mainlyduetoanincreaseintheaccrualforthepotentialliabilityforemployer’sNIonshare-basedincentivestogetherwithanincreaseindeferredrevenue.Ourdeferredtaxassetshavegrownto£10.7m(2010:£6.7m)representingfuturetaxbenefitsfromshare-basedincentives.

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investing in our brandWeranTVcampaignsinJanuaryandFebruary,inApril,SeptemberandOctober,andatChristmasandinto2012.Thisisthemostextensivecoverageduringanyyearinourhistory.

MARKETSHARE

84%

ofthemarketshareofthetop4UKpropertywebsitesbypages

viewed,2%upon2010Source:ExperianHitwiseandRightmove:

december 2011 and december 2010




15

Overalladvertisernumbersarerelativelyflat.Averagespendperadvertiserstartedtheyearveryhealthilyagainandisexpectedtorisefurtheroverthecomingmonths.Subjecttotherebeingnofurthersignificantdeclineinthe

UKhousingmarket,theBoardremainsconfidentofmakingfurtherprogressingrowingthebusinessorganicallyin2012and beyond.

Ed Williams Nick McKittrickManagingDirector ChiefOperatingOfficerand Finance director

TheBoard’sprioritiesfortheusageofcashcontinuetobe:investmentinthebusiness;paymentofdividends;andthereturnofcashtoshareholdersviasharebuybacks.TheBoardbelievesthatthefutureworkingcapitalandcapitalexpenditurerequirementsofthebusinesswillcontinueto belowandthatthebusinesswillbeinapositiontoreturnsurpluscapitaltoshareholdersduring2012throughacombinationofdividendsandsharebuybacks.

Current trading and outlookTheoveralloutlookfortheUKonlinepropertyadvertisingmarketcontinuestobepositive,albeittemperedbyacontinuationofchallengingconditionsintheresidentialhousingmarket.Themarketforonlineadvertisingcontinuesto increase rapidly as its importance is more and more widely accepted.Rightmoveiswellpositionedtobenefitfromboththecontinuedgrowthinonlinespendinganditsprovenabilitytoincreasemarketsharethroughincreasedadoptionofexistingproducts,furtherproductinnovation,pricingandleading brand awareness.Withaverystrongstartto2012weareseeingtraffic

ontheRightmove.co.ukwebsiteupover20%on2011. Thishasincludedaseriesofdayswhichhavebeenstrongerforsitetrafficthananyotherdaypriortothisyear.2012hasthepotentialtobethefirstwhereweserveover10bnpageimpressions.Inaddition,ourmobiletrafficcontinuesto growatanevenfasterratethanonthemainwebsite.


(1)Fromcontinuingoperationsbeforeshare-basedpayments,NIonshare-basedincentivesandnorelatedadjustmentfortax.(2) From continuing operations.

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Scott ForbesChairmanScottwasappointedChairmanofRightmovein2005.HeisalsotheChiefExecutiveofBridgeCapitalAdvisorsLtd,whichhefoundedin2007,andwasadirectorofNetJetsManagementLtd,asubsidiaryofBerkshireHathawaythroughtoOctober2009.Scotthasover30years’experienceinoperations,finance and mergers & acquisitions whichincludes15yearsatCendantCorporationwhichwasformerlythelargestworldwideproviderofresidentialpropertyservices.ScottestablishedtheCendantinternationalheadquartersinLondonin1999andledthisdivisionasGroupManagingDirectoruntilhejoinedRightmove.(Appointed13July2005.)

Ed WilliamsManaging director

EdjoinedRightmovein2000asManaging director at its inception. Heisalsoanon-executivedirectorofTraderMediaGroup,owneroftheUK’sleadingmotoringwebsite.HispriorexperienceisinbusinessstrategyandITconsultingwithMcKinsey&Co,AccentureandJPMorgan.(Appointed19 december 2000.)

Jonathan AgnewNon-executiveDirector

JonathanjoinedtheBoardin2006 asSeniorIndependentDirector. HeisChairmanofBeazley,TheCayenneTrustandAshmoreGlobalOpportunities.Jonathanwasaninvestmentbankerforover25years,including being a Managing director ofMorganStanleyandGroupChiefExecutiveofKleinwortBenson.HehasbeenChairmanofNationwideBuildingSociety,Limit,GerrardGroupandLMSCapitalandhasservedontheCouncilofLloyd’s.(Appointed16January2006.)(ChairmanoftheRemuneration Committee and a memberoftheAuditandNominationCommittees.)

Ashley MartinNon-executiveDirector

AshleyjoinedRightmovein2009asanon-executivedirectorandalsoasChairmanoftheAuditCommittee,whereheprovidesoversightofthefinancialreportingpractices,internalcontrol environment and compliance withthevariouslistedcompanyregulations.HeisalsoamemberoftheRemunerationCommittee.Hequalifiedasacharteredaccountantin1981andhasacareerinfinancespanning30years.HewaspreviouslyFinanceDirectorofRokplc,thebuildingservicesgroup,andGroupFinanceDirectorofthemediaservicescompany,Tempusplc.(Appointed11June2009.)(ChairmanoftheAuditCommitteeandmemberoftheRemunerationCommittee.)

Judy VezmarNon-executiveDirector

JudyjoinedRightmovein2006asanon-executivedirector.SheisChiefExecutiveOfficerofLexisNexisInternational.LexisNexis®,partoftheglobal media group Reed elsevier PLC,isaleadingworldwideproviderofcontent-enabledworkflowsolutionsdesignedspecificallyforprofessionalsinthelegal,riskmanagement,corporate,government,lawenforcement,accountingandacademicmarkets.JudyisresponsiblefortheInternationalGroupandtheirexpansionoftherangeofsuccessfulonline services to over 100 countries. SheisbasedinLondon.(Appointed16January2006.)(MemberoftheAudit,RemunerationandNominationCommittees.)

directors and officers




17

Nick McKittrickChiefOperatingOfficerand Finance director

NickjoinedRightmovein2000.HeledthedevelopmentofRightmove’soriginalwebsiteandthenwentontobuildthenewhomes,lettingsandoverseasbusinesses.Atthestartof2005,NickbecametheManagingDirectorofthemainRightmove.co.ukoperatingsubsidiary,overseeingatreblingofrevenueinthreeyears.In2009,hewaspromotedtotheroleofChiefOperatingOfficerandFinanceDirector.BeforejoiningtheCompanyheworkedinAccentureforeightyearsinthetechnologyconsultingdivision.(AppointedtotheBoard5March2004.)

Colin KempNon-executiveDirector

ColinwasappointedtotheBoardin2007.HeistheCommercialDirectorfortheHalifaxCommunityBankfollowingtheformationofLloydsBankingGroupinJanuary2009.Withover30years’experienceinhighstreetretailbanking,ColinhasworkedforLloydsBankingGroupcompaniessince1979.HisroleshaveincludedrunningtheRetailContactCentresandheadinguptheHalifaxEmployeeShareServicesbusiness,administeringemployeeshareplanstoover400UKcompanies.BetweenJanuary2005andDecember2007,ColinwasManagingDirectorofHalifaxEstateAgenciesLimited.ColinisaCranfieldMBAandanAssociateoftheCharteredInstituteofMarketing.(Appointed3July2007.)

Liz TaylorCompanySecretary

LizwasappointedCompanySecretaryofRightmovein2006.SheisaFellowoftheInstitute ofCharteredSecretariesandAdministratorsandhasover 20years’companysecretarialexperienceacrossavarietyofFTSE250publiccompaniesintheretail,mediaandpropertysectors.PriortojoiningRightmove,shewasCompanySecretaryofTheBerkeleyGroupHoldingsplc,theholdingcompanyofthegroupengaged in residential and commercial property development.

Peter Brooks-JohnsonManagingDirector,Rightmove.co.uk

PeterjoinedRightmovein2006anddevelopedtheHomeInformationPacksproposition.HisfocussubsequentlyshiftedtotheoperationoftheRightmove.co.ukwebsite. Hethenwentontolead,fromthebeginningof2008,theestateagency business. peter was promoted totheroleofManagingDirectorofRightmove.co.ukonhisappointmenttotheBoardon10January2011 andnowleadsthemainoperatingbusiness.PriortojoiningRightmove,peter was a managing consultant withAccentureandtheBerkeleyPartnership.(AppointedtotheBoard10January2011.)

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Alex Solomon NewHomesDirectorAlexjoinedRightmovein2005and,havingbeenresponsibleforthepricingandproductsportfolios,nowrunsthenewhomesbusiness.PriortojoiningRightmovehespentsixyearsworkingasaneconomist/policyadvisorfortradebodies,initiallyrepresentingtheinterestsofagriculturalfirmsattheNationalFarmers’UnionandthenmortgagefirmsattheCouncilofMortgageLenders.

Alan Gearing ManagingDirector,RightmovePropertyServicesAlanjoinedRightmovein2006developingnewsourcesofrevenueseparatefrompropertyadvertising.Hewas appointed as Managing director ofRightmove’sAutomatedValuationModeldivisioninJuly2008.PriortoRightmovehewasafounderofbothTheAssetManagementGroup(property disposal and maintenance services)andTheInventoryExchange(online inventory and property inspection) and was Managing Directorofa50branchestate agencychain.

Peter ArmstrongCommercial property directorPeterjoinedRightmovein2003andworkedinthenewhomesbusiness,whichhethenwentontorunfromMay2006toMay2010.PeterhassubsequentlytakenontheroleofCommercial property director. prior toRightmove,Peterworkedinsalesandsalesmanagement,latterlyindirectoryadvertisingwithyell.

Miles Shipside Commercial directorMilesjoinedRightmoveasafoundingdirectorin2001bringing20yearsofexperienceatseniorlevelsinindependentestateagencyandwithHalifaxEstateAgency.Hehasresponsibilityforestateagencyandmediarelations,specialisinginadvisingtheindustryonhowtheinternetistransforminghomemovingandthestateofthehousingmarket.HequalifiedasaCharteredSurveyor in 1982.

Robyn Perriss Financial ControllerRobynjoinedRightmovein2007andhasday-to-dayresponsibilityforthefinancialoperations,basedoutofMiltonKeynes,aswellasstatutoryreportingandthetreasuryfunction.ShewasformerlyGroupFinancialControllerattheonlinemediabusiness,TraderMediaGroup.ShequalifiedasacharteredaccountantinSouthAfricawithKPMG.

Simon Hickie HumanResourcesDirectorSimonjoinedRightmovein2007 andhasresponsibilityfordrivingpeople-focusedactivityacross thebusiness.Hewasformerly atBloombergLPwherehewasresponsibleforHRoperations acrossEurope,theMiddleEast andAfrica.

senior management team


corporate governancefinancial statem

ents

19

business reviewcorporate governance

business review

Rightmovehasastrongcommitmenttoequalityofopportunityinallouremploymentpolicies,practicesandprocedures.Wetakeaproactiveapproachthroughoutourrecruitmentandselectionprocesstoensurethatweattract,hireandretainadiverseandtalentedworkforceandthisiskeptundercloseandregularscrutiny.Noexistingorpotentialemployeewillreceivelessfavourabletreatmentduetotheirrace,creed,nationality,colour,ethnicorigin,age,religionorsimilarbelief,connectionswithanationalminority,sexualorientation,gender,genderreassignment,maritalstatus,membershipornon-membershipofatradeunion,disability,oranyotherclassificationasprescribedbylaw.

Charitable activityWe continue to encourage all our employees to devote time andfundraisingeffortstocharitablecausesofparticularimportancetothemasindividuals.During2011aconsiderablenumberofstaffhavebeenactiveinraisingmoneyorsupportingthefundraisingactivitiesacrossawiderangeofothercharitiesforwhichweofferedtomatchthedonationsraisedforteamevents.

EnvironmentRightmoveactivelyconsidersitsenvironmentalimpact. Sinceouroperationisprimarilyoffice-based,thedirectenvironmentalimpactisrelativelylow.IndeedRightmove’sbusinessreducestheoverallenvironmentalharmassociatedwithavarietyofaspectsofthewholehomehuntingprocess.Traditionalwaysoffindingahometendtoinvolvelarge

amountsofpaperandprinting,whetherintheformofnewspaperadvertising,propertyparticularsmailedtoapplicantsthroughthepostorleafletdropsbyagents.Rightmovereducestheneedforprintmediaandtheenvironmentaldamagethatgoeswiththem.Rightmove takescaretodesignthelayoutofpropertyparticularstoreducethetotalnumberofpagesthatneedtobeprinted outinthosecaseswhereahomehunterdoeswanta physicalcopy.

Our peopleOurpeopleareourmosthighlyvaluedasset.Weareproud ofourpeopleandthemixtureoftalentandexperiencethattheybring.Wedependontheirskillsandcommitmenttoachieveourobjectives.Ourculturalstyleisopenandhonest.Weinvestin

ensuringthatallemployeesunderstandRightmove’scorevaluesandgoals.Weachievethisthroughacombinationof arigorousselectionprocess,includingtechnicalskillstesting,anoff-siteresidentialcoursetoensureallRightmoversunderstandourcorevalues,ongoingcoachingandmentoring,andcross-functionalteambuildingeventsinvolving all employees. We encourage employee involvement andplacegreatemphasisonkeepingemployeesinformedoftheGroup’sactivitiesviabi-monthlystaffforums,quarterlyconferencesandhalf-yearlybusinessperformanceupdateswithseniormanagement.WecontinuetoofferourRightmover-ledtrainingacademy

designedtoprovideastructuredmeansforemployeestoexpandanddiversifytheirskillsandknowledgeandexplorenewwaysofworkingwithoneanother.Giventhespecialisedtechnicalnatureoftheworkwedoandtheservicesweprovide,wealsosupportongoingexternalprofessionaldevelopmentwhereappropriate.During2011wehaveexplorednewwaysofensuring

thatemployeesareawareoftheadditionalbenefitsthattheycanaccess,whichhaveprovedtobeausefulretentiontool.Thisisachievednotonlyviaourinductionprocessandintranetbutalsothroughbenefitsfairs.In2011weplacedparticularemphasisoncommunicatingtheimportanceofsavingforretirementandpromotingthepensionplanweestablishedin2008aswellastheoptiontosavebysalaryexchange.Wedidthisbyholdingemployeeseminarsandofferingtheopportunityforonetoonebriefingswithexternalbenefitsadvisers.InNovember2011,theCompany’sthirdSharesavecontractmaturedallowingemployeestobenefitfromthesuccessoftheGroupoverthelastthreeyears.49%ofemployeescurrentlyparticipateintheSharesavescheme.

corporate social responsibility

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Health and safetyTheGroupconsiderstheeffectivemanagementofhealth andsafetytobeanintegralpartofmanagingitsbusiness.During2010,wecontinuedourfiresafety,firstaidandworkplacesafetytraining.TheGroup’songoingpolicyonhealthandsafetyistoprovideadequatecontrolofthehealthandsafetyrisksarisingfromworkactivities,throughfurtherconsultationwith,andtrainingof,employees,theprovisionandmaintenanceofplantandequipment,safehandlinganduseofallsubstancesandthepreventionofaccidentsandcausesofillhealth.TheGroupwillmaintainsafeandhealthyworkingconditionsforemployees,visitorsandcontractors,andkeepthepolicyonhealthandsafetyup-to-datewithregularreviewsandnecessaryalterationstothepolicy as required.

Enhancedinformationonpropertiesalsoreducestheamountoftimehomehunterswasteinvisitingpropertiesthatrapidlyturnouttobeinappropriate.Asahighproportionofviewingsinvolveacarjourney,anyreductioninwastedviewingshas anenvironmentalbenefit.Rightmovehasworkedhardtoincreasethenumberandsizeofphotographsofeachpropertyandhasintroducedmorecomprehensivemapsearchesandaerialphotographswhichhelphomehunters toidentifythespecificlocationofaproperty.Thehigherthequalityoftheinformationpresentedaboutproperties,thelesscarbonfootprintisgeneratedbyprospectivebuyersmakingwastedjourneys.TheRightmove.co.ukwebsiteincludesfunctionalityforour

customerstodisplayEnergyPerformanceCertificateswhichallowprospectivebuyerstoevaluatetheenergyefficiencyof apropertytheyareconsideringbuyingandtoidentifyopportunitiestoimprovetheenergyefficiencyoncethey havepurchasedtheproperty.Wetaketheenvironmentalimpactofourownoperations

seriously.Asaninternet-basedGroupwithmoststaffemployedintwoofficelocations,webelieveourownenvironmentalfootprintissmallandthattherearenoby-productsofouroperationswhichhaveaclearnegativeimpactontheenvironment.Ourstaffareencouragedtotakesteps to address our environmental responsibilities. For instance,wecontinuetooperaterecyclingschemeswhichwereestablishedinconsultationwithlocalauthoritiesandrecyclingpartners.Asanoperatorofanonlinepropertyportal,themainenvironmentalimpactisthepowerusage ofourdatacentres.Ourprocurementpolicyistopurchasehardwarewiththebestcomputationalperformancewhichusestheleastelectricalpower.AsanonlineGroup,ourcultureemphasisesapaperless

environment.Wealsorecognisethatourresponsibilities donotstopjustwithhowweoperateinternally–wealsoencourageallourcustomers,businesspartnersandsuppliersnottounnecessarilyprintoutemailssentbyusinthesignatureofallouremails.Moreoverin2008weintroducede-communicationsforourshareholders,includinganinteractivecopyoftheannualreporttoenableinvestorsandpeoplewithaninterestintheCompanytoprintspecifiedpagestherebyreducingthequantityofprintedmaterialwedistribute.In2009,weintroducedemailinvoicingforour newhomesdevelopercustomersandnowhave69%of thiscustomergrouponpaperlessbilling.Inadditionweintroducedapaperlesssignupprocessforourcustomers,whichhaseliminatedtheneedforpaper-basedmembershipand product documentation.

corporate social responsibility continued



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business review

Trading resultsTheGroup’sunderlyingoperatingprofitfromcontinuingoperations(beforeshare-basedpaymentsandNationalInsuranceonshare-basedincentives)forthefinancialyearwas£69,362,000(2010:£56,563,000).FurtherinformationontheresultsfortheGroupissetoutintheConsolidatedStatementofComprehensiveIncomeonpage44andthesupportingNotesandalsotheBusinessandFinancialReviewon pages 4 to 15.

DividendAninterimdividendof7.0p(2010:5.0p)perordinarysharewaspaidon11November2011toshareholdersontheregisterofmembersatthecloseofbusinesson14October2011.Thedirectorsarerecommendingafinaldividendfor theyearof11.0p(2010:9.0p)perordinaryshare,whichtogetherwiththeinterimdividendof7.0p,paidinrespectofthehalfyearperiodended30June2011,makesatotalfortheyearof18.0p(2010:14.0p),amountingto£18,606,000(2010:£14,870,000).Subjecttoshareholders’approvalattheAnnualGeneralMeetingon9May2012,thefinaldividendwillbepaidon8June2012toshareholdersontheregisterofmembersatthecloseofbusinesson11May2012.

Share capitalTheordinarysharesinissue(including2,505,430shares heldintreasury)attheyearendcomprised110,410,636(2010:114,761,434)ordinarysharesof£0.01each,being£1,104,000(2010:£1,147,000).Theholdersofordinarysharesareentitledtoreceivedividendsasdeclaredfromtimetotime,andareentitledtoonevotepershareatgeneralmeetingsoftheCompany.MovementsintheCompany’ssharecapitalandreservesintheyearareshowninNote22andNote23tothefinancialstatements.InformationontheGroup’sshare-basedincentiveschemesissetoutinNote24tothefinancialstatements.Detailsoftheshare-basedincentiveschemesfordirectorsaresetoutintheRemuneration Report on pages 30 to 42.

ThedirectorssubmittheirreporttogetherwiththeauditedfinancialstatementsforRightmoveplc(theCompany)and itssubsidiarycompanies(theGroup)fortheyearended31December2011.TheCompanyisdomiciledinEngland(registered number 6426485).

Principal activitiesTheGroupoperatesintheUKresidentialandcommercialproperty industry connecting people to properties. Itsprincipalbusinessistheoperationofthe

Rightmove.co.ukwebsite,whichistheUK’slargestresidentialpropertywebsite.Itscustomers(estateagents,lettingsagents,newhomesdevelopersandoverseashomesagentsandvendors)payfeesfortherighttodisplaypropertiesontheRightmovewebsite,whichprovideshomehunterswithpropertydetailstosearch.FurtherinformationontheGroup’sactivitieswithineach

segmentduringtheyearunderreviewandofitsprospectscanbefoundintheBusinessandFinancialReviewonpages4 to 15.Thefollowingsectionsinclusiveareincorporatedby

referenceintotheDirectors’ReportwhichhavebeendrawnupandpresentedinaccordancewithandinrelianceuponacceptableEnglishcompanylawandtheliabilitiesofthedirectorsinconnectionwiththereportshallbesubjecttothelimitationsandrestrictionsprovidedbysuchlaw:•Businessandfinancialreview(pages4to15)•Directorsandofficers(pages16to17)•Corporatesocialresponsibility(pages19to20)•Corporategovernance(pages24to29)•Remunerationreport(pages30to42)

IncompliancewiththebusinessreviewprovisionsoftheCompaniesAct2006,withintheBusinessandFinancialReview,principalriskfactorsarediscussedunderthesection‘Uncertainties,threatsandrisks’onpage9.Keyperformanceindicatorsaregivenonpage7andinformationonthelikelydevelopmentsoftheGroupunder‘Currenttradingandoutlook’onpage15.

Sale of Holiday Lettings (Holdings) Limited (HLHL)TheGroupacquiredits67%stakeinHLHLinMarch2007for£3,108,000andhadoperateditasastand-alonebusiness.HLHLwassoldtoTripAdvisorLimited,awhollyownedsubsidiaryofExpediaInc.,on21June2010.NetcashconsiderationtoRightmoveoncompletionwas£15,185,000withafurther£1,000,000inEscrow,whichtogetherwitha£5,555,000contingentconsiderationagreedinOctober2011tookthetotalproceedsfortheGroup’s67%stakeinthebusinessto£21,740,000.

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Shareholder No. of shares %(1)

BaillieGifford&Co 8,615,294 8.0

CantillonCapitalManagement 7,840,004 7.3

MarathonAssetManagementLLP 7,835,467 7.3

Caledonia(Private)InvestmentsPtyLtd 6,431,468 6.0

KamesCapital(formerlyAEGONAsset Management(UK)) 5,772,199 5.3

AxaInvestmentManagersSA 5,510,468 5.1

BlackrockInc 4,777,310 4.4

TheRightmoveEmployees’ShareTrust 4,527,783 4.2

Legal&GeneralInvestment ManagementLtd 4,146,797 3.8

OldMutualAssetManagers 3,805,926 3.5 (1)Theabovepercentagesarebaseduponthevotingrightssharecapital (beingthesharesinissuelesssharesheldintreasury)of107,905,206.

DirectorsThedirectorsoftheCompanyattheyearendandasatthedateofthisreportarenamedonpages16to17togetherwiththeirprofiles.TheArticlesofAssociationoftheCompanyrequire

directorstosubmitthemselvesforre-appointmentwheretheyhavebeenadirectorateachoftheprecedingtwoAnnualGeneralMeetingsandwerenotappointedorre-appointedbytheCompanyat,orsince,eithersuchmeeting.FollowingthechangestotheCombinedCodeinJune2010,alldirectorswhohaveservedduringtheyearandremainadirectorasat31December2011willretireattheforthcomingAnnualGeneralMeeting.TheBoardissatisfiedthatthedirectorsretiringare

qualifiedforre-appointmentbyvirtueoftheirskills,experienceandcontributiontotheBoard.EdWilliams,NickMcKittrickandPeterBrooks-Johnsonhaveserviceagreementswith theCompanywhichcanbeterminatedon12monthsnotice.Theappointmentsforthenon-executivedirectors,ScottForbes,JonathanAgnew,ColinKemp,AshleyMartinandJudyVezmarcanbeterminatedonthreemonthsnotice.Theinterestsofthedirectorsinthesharecapitalofthe

Companyat31December2011,thedirectors’totalremunerationfortheyearanddetailsoftheirservicecontractsandLettersofAppointmentaresetoutintheRemunerationReportonpages30to42.At31December2011alloftheexecutivedirectorsweredeemedtohaveanon-beneficialinterestin4,527,783ordinarysharesof£0.01eachheldbythetrusteesoftheEBT.

Share buy backTheCompanyannouncedasharebuybackprogrammeinJune2007,whichcontinuedduring2011.Ofthe15%authoritygivenbyshareholdersatthe2011AnnualGeneralMeeting,atotalof4,350,798(2010:4,161,977)ordinarysharesof£0.01eachwerepurchasedintheyearto31December2011,being3.9%ofthesharesinissue(excludingsharesheldintreasury)atthetimetheauthoritywasgranted.Theaveragepricepaidpersharewas£11.10(2010:£7.05)withatotalconsiderationpaid(inclusiveofallcosts)of£48,626,000(2010:£29,564,000).SincetheintroductionofthenewparentcompanyinJanuary2008,atotalof21,494,772shareshavebeenpurchasedofwhich2,505,430havebeentransferredintotreasurywiththeremainderhavingbeencancelled.AresolutionseekingtorenewthisauthoritywillbeputtoshareholdersattheAnnualGeneralMeetingon9May2012.

Shares held in trustAsat31December2011,4,527,783(2010:6,322,329)ordinarysharesof£0.01eachintheCompanywereheldbyTheRightmoveEmployees’ShareTrust(EBT)forthebenefitofGroupemployees.Theseshareshadanominalvalueat31December2011of£45,000(2010:£63,000)andamarketvalueof£56,326,000(2010:£49,251,000).ThesharesheldbytheEBTmaybeusedtosatisfyshare-basedincentives fortheGroup’semployeeshareplans.Duringtheyear 1,794,546(2010:1,096,545)sharesweretransferredtoGroupemployeesfollowingtheexerciseofbothexecutiveandSharesaveshareoptions.ThetermsoftheEBTprovidethatdividendspayable

onthesharesheldbytheEBTarewaived.

Substantial shareholdingsAsatthedateofthisreport,thefollowingbeneficialinterestsin3%ormoreoftheCompany’sissuedordinaryshare capital(excludingsharesheldintreasury)onbehalfoftheorganisationsshowninthetableontheright,hadbeennotifiedtotheCompanypursuanttoRule5oftheDisclosureand Transparency Rules:

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shareholdersapproveashorternoticeperiod.Atthe2011AnnualGeneralMeeting,aresolutionwaspassedallowingtheCompanytocallgeneralmeetings(otherthanAnnualGeneralMeetings)onnotlessthan14cleardays’notice.Asthisauthoritywillexpireatthe2012AnnualGeneralMeeting,wewillbeproposingaresolutiontorenewthisauthority.

AuditorKPMGAuditPlchasconfirmeditswillingnesstocontinueinofficeasauditoroftheGroup.Inaccordancewithsection489oftheCompaniesAct2006,separateresolutionsforthere-appointmentofKPMGAuditPlcasauditoroftheGroupandfortheAuditCommitteetodeterminetheirremunerationwillbeproposedattheforthcomingAnnualGeneralMeeting.

Audit informationSofarasthedirectorsinofficeatthedateofsigningofthereportareaware,thereisnorelevantauditinformationofwhichtheauditorisunawareandeachsuchdirectorhastakenallreasonablestepstomakethemselvesawareofanyrelevantauditinformationandtoestablishthattheauditorisawareofthatinformation.

Responsibility statement of the directors in respect of the annual financial reportWeconfirmthattothebestofourknowledge:•thefinancialstatements,preparedinaccordancewiththeapplicablesetofaccountingstandards,giveatrueandfairviewoftheassets,liabilities,financialpositionandprofitorlossoftheCompanyandtheundertakingsincludedintheconsolidationtakenasawhole;and

•theDirectors’Reportincludesafairreviewofthedevelopmentandperformanceofthebusinessandthepositionoftheissuerandtheundertakingsincludedintheconsolidationtakenasawhole,togetherwithadescriptionoftheprincipalrisksanduncertaintiesthattheyface.

SignedbytheBoard:

Ed Williams Nick McKittrick

ManagingDirector ChiefOperatingOfficerandFinance director

24 February 2012

Supplier payment policyTheGroupandCompany’spolicyconcerningcreditorsistoagreepaymenttermswithitssuppliers,ensuretherelevanttermsofpaymentareincludedincontractsandtoabidebythosetermswhenitissatisfiedthatgoodsorserviceshavebeenprovidedinaccordancewiththecontracts.Fortheyearto31December2011,tradecreditorsoncontinuingoperationsrepresented11days(2010:32days)ofaveragedailypurchases.TheGrouphad£370,000oftradepayablesattheyearend(2010:£1,033,000).

Contractual arrangementsDuetothenatureoftheGroup’sbusinessactivities,theGroupmaintainsasmallnumberofcontractualarrangementswithexternalprovidersofdata,software,hardwareand web-basedservices,whichareessentialtosupporttheoperationofallbusinesssegments.However,thelossof oneofthesearrangementsduetosupplierfailurewouldnotresultinacriticalbusinessfailure,assuchservicescouldbesourcedfromanumberofothersuppliers.

Research and developmentTheGroupundertakesresearchanddevelopmentexpenditureinviewofdevelopingnewproductsandimprovingtheexistingpropertywebsites.FurtherdetailsaredisclosedinNote2tothefinancialstatementsonpage53.

Charitable and political donationsTheGroupmadecharitablecontributionsof£3,000 (2010:£nil).NeithertheGrouportheCompanymadeanypoliticaldonationsduringtheyear(2010:£nil).

Annual General MeetingTheAnnualGeneralMeetingoftheCompanywillbeheldattheofficesofUBSLimitedat1FinsburyAvenue,London,eC2M 2pp on 9 May 2012 at 10am.Theresolutionsbeingproposedatthe2012Annual

GeneralMeetingaregeneralinnatureincludingtherenewalforafurtheryearofthelimitedauthorityofthedirectorstoallottheunissuedsharecapitaloftheCompanyandto issuesharesforcashotherthantoexistingshareholders.Aresolutionwillalsobeproposedtorenewthedirectors’authoritytopurchaseaproportionoftheCompany’s ownshares.Oneoftheitemsofspecialbusinesstobeaddressedat

thisAnnualGeneralMeetingrelatestotherequirementintheCompanies(Shareholders’Rights)Regulations2009,whichcameintoforceon3August2009,thatallgeneralmeetingsmustbeheldonnotlessthan21cleardays’noticeunless

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EdWilliams,ManagingDirector,isalsoanon-executivedirectorofTraderMediaGroup.HisremunerationinrelationtothisroleissetoutintheRemunerationReportonpage35,thoughfromJuly2010hisremunerationhasbeengivendirectlytocharity.NeithertheChairmannortheothertwoexecutivedirectors

holdanyothernon-executivedirectorshipsorcommitmentsdisclosableundertheUKCGC.Biographicaldetailsofthedirectorsatthedateofthis

reportanddetailsoftheircommitteemembershipappearonpages 16 and 17.

Directors’ remunerationTheprinciplesanddetailsofdirectors’remunerationandcontractualarrangementsarecontainedintheRemunerationReport on pages 30 to 42.

Re-election to the BoardInaccordancewiththeUKCGC,theArticlesofAssociationrequirealldirectorstoseekre-electioneverythreeyears.Inadditionalldirectorsaresubjecttoelectionbyshareholders atthefirstAnnualGeneralMeetingfollowingtheirappointment.FollowingthechangesintroducedbytheUKCGCinJune2010,alldirectorswillseekre-electionat the2012AnnualGeneralMeeting.

Board and Committee membership and attendanceThemembershipoftheCommitteesoftheBoardandattendanceatBoardandCommitteemeetingsfortheyearunderreviewaresetoutinthetablebelow:

Remuneration Audit Nomination

Board Committee Committee Committee

Total meetings 8 5 4 2

ScottForbes 8 5(1) N/A 2

JonathanAgnew 8 5 4 2

PeterBrooks-Johnson 8 N/A N/A N/A

ColinKemp 7 N/A N/A N/A

AshleyMartin 8 5 4 N/A

NickMcKittrick 8 N/A N/A N/A

JudyVezmar 8 5 4 2

EdWilliams 8 N/A N/A N/A (1)TheRemunerationCommitteeChairmanhasrequestedthattheChairmanoftheBoardattendtheRemunerationCommitteemeetings.

Statement of complianceThe2010UKCorporateGovernanceCode(UKCGC)setsouttheprinciplesandprovisionsrelatingtogoodgovernanceofUKlistedcompanies.InthissectionwesetouthowwehaveappliedtheprinciplesandcompliedwiththeprovisionsoftheUKCGCduring2011.AsaUKlistedcompany,theCompanyisrequiredtostatewhetherithascompliedwiththeprovisionsoftheUKCGCandwheretheprovisionshavenotbeencompliedwith,toprovideanexplanation.ThedirectorsbelievethattheCompanyiscompliantin

allareaswithoneexception,whichisexplainedbelow.

The Board, the Board balance and independenceAtthedateofthisreport,theBoardcompriseseightdirectorsincludingtheChairman(ScottForbes),threeexecutivedirectors(EdWilliams,ManagingDirector,NickMcKittrick,ChiefOperatingOfficerandFinanceDirectorandPeterBrooks-Johnson,ManagingDirector,Rightmove.co.uk)andfournon-executivedirectors(JonathanAgnew,whoistheSeniorIndependentDirector,ColinKemp,AshleyMartinandJudyVezmar).RightmovecurrentlyhasonefemaleBoardmemberonan

eightpersonBoard,therebyconstituting12.5%oftheBoardmembers.ItistheBoard’sgoaltoappointafurtherfemaleBoardmemberby2015aspartofthecycleofrefreshingthemembershipoftheBoard.AssuminganunchangednumberofBoarddirectors,Rightmovewouldthenhave25%of Boardmembersbeingfemale.ThedirectorsbelievethattheBoardcurrentlyoperates

effectivelyandthatthereisanappropriatebalancebetweentheexecutiveandnon-executivedirectorsandthatallthenon-executivedirectorsarefullyindependentofmanagementandindependentincharacterandjudgment.ColinKemp(non-executivedirector)isanemployeeof

LloydsBankingGroup.LloydsBankingGroupisacustomerofRightmoveGroupLimited.UntilOctober2009,LloydsBankingGroupownedHalifaxEstateAgenciesLtd.HalifaxEstateAgenciesLtdwasashareholderinRightmoveplcuntilMay2008.ThereforeinstrictapplicationoftheUKCGC,ColinKempisnotconsideredtobeindependent,thoughhewillbeconsideredtobesofromOctober2012.Nonetheless,theBoardconsidersthatColinKempisindependentincharacterandinparticularcontinuestochallengerigorouslytheexecutivedirectorsandtheBoardasawhole.Asaresult, thecompositionoftheBoardfortheyearunderreview wasnotinstrictcompliancewithsupportingprinciple B.1.2oftheUKCGCinthatatleasthalfofthedirectors(excludingtheChairman)arenotconsideredindependentnon-executivedirectors.

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CompanySecretary,theChairmanmonitorstheinformationprovidedtotheBoardtoensurethatitissufficient,pertinent,timely and clear.TheManagingDirectorhasday-to-dayexecutive

responsibilityfortherunningoftheGroup,leadingtheexecutiveandoperationalteamsindevelopingstrategiesanddeliveringresultsagainstdefinedtargetstoenabletheGrouptomeetitsobjectives.

Board trainingThebreadthofmanagement,financialandlistedcompanyexperienceofthenon-executivedirectorsisdescribedinthebiographicaldetailsonpages16and17,anddemonstratesarangeofbusinessexpertisethatprovidestherightmixofskillsandexperiencegiventhesizeoftheCompany.ThereareproceduresinplaceforindividualBoardmemberstoreceiveinductionandtrainingtailoredtotheirindividualneedsandtoseektheadviceandservicesofindependentprofessionaladvisers,attheCompany’sexpense,wherespecificexpertiseortrainingisrequiredinfurtheranceoftheirduties.Thedirectorsdiscloseaqualifyingthird-partyindemnity

provisionbetweentheCompanyanditsdirectorsandofficersasprovidedbytheArticlesofAssociationoftheCompany,whichwasinforceatthedateofthisreport.TheGrouphasalsoarrangeddirectors’andofficers’insurancecoverinrespectoflegalactionagainstthedirectors.TheGrouphassetoutwrittenpoliciesincompliancewith

acodeofsecuritiesdealingsinrelationtothesharesandequivalenttotheModelCodepublishedintheListingRules.Thecodeappliestoalldirectors,otherpersonsdischargingmanagerialresponsibilityandotherrelevantemployees.

Performance evaluationTheBoardconductedaBoardevaluationexerciseinquarterfourof2011whichwasledbytheChairman,assistedby theCompanySecretary.AlldirectorsprovidedfeedbackontheperformanceandoperationoftheBoardanditsCommittees.TheresultswerediscussedattheBoardmeetinginDecember2011.TheperformanceoftheindividualdirectorswasevaluatedbytheChairmanwithinputfromalldirectors.AtameetingchairedbyJonathanAgnew,SeniorIndependentDirector,(withoutthepresenceoftheChairman),theBoardprovidedinputintoandreviewedtheperformanceoftheChairman.Followingtheseevaluationsthedirectorshaveconcluded

thattheBoardanditsCommitteesareoperatingeffectivelyandthateachdirectoriscontributingeffectivelyanddemonstratescommitmenttotheirrole.

Inadditiontotheabovemeetings,theChairmanconductsmeetingswiththenon-executivedirectorswithouttheexecutivedirectorsbeingpresentwhenrequired.JonathanAgnew,theSeniorIndependentDirector,chairedameetingoftheBoardatwhichtheperformanceoftheChairmanwasalsoreviewed(withoutthepresenceoftheChairman).

Operation of the BoardTheBoardisresponsibletoshareholdersfortheoveralldirectionandcontroloftheGroup.Itskeytaskistoapprovestrategy,ensuringthesuccessfulimplementationofprojectsandproposalsandmonitoringtheoperatingperformance oftheGroupinpursuitofitsobjectivesintheinterestofmaximisinglong-termshareholdervalue.TheBoardhasadoptedaformalscheduleofmattersrequiringspecificapproval.Theseinclude,amongstotherthings,theapprovaloftheannualbusinessplan,capitalstructure,dividendpolicy,acquisitionsanddisposals,appointmentandremovalofofficersoftheCompany,approvaloftheHalfyearandFullyearresults,shareholdercommunicationandresponsibilityforcorporategovernanceandreviewoftheGroup’srisksandsystemofinternalcontrols.TheBoardreceivesmeetingpaperstoallowsufficienttime

fordetailedreviewandconsiderationofthedocumentsbeforehand.IfanydirectorhasaconcernaboutanyaspectofthebusinessconductedatanyBoardmeeting,theCompanySecretaryshalldiscussthiswiththedirectorconcernedandrecordtheirconcernorcommentsintheBoardminutes. TheBoardreceivesmonthlymanagementandfinancialreportsontheoperationalandfinancialperformanceofthebusinesssettingoutactualandforecastfinancialperformanceagainstapprovedbudgetsinadditiontootherkeyperformanceindicators.TheBoardalsoreceivescopiesofbrokerreportsandpressreleasesrelatingtotheGroup.AtleastonceayeartheManagingDirectorandtheseniormanagementteampresentastrategicreviewandanannualplantotheBoard forreviewandapproval.TheBoardnormallyscheduleseightmeetingseachyear

althoughmeetingscanbescheduledatshortnoticeattherequestofanydirector,orifrequired.InadditiontoformalBoardmeetings,thereisregularinformaldialoguebetweenall directors.

Chairman and Managing DirectorThepostsofChairmanandManagingDirectorareseparateandthereareclearwrittenguidelinestosupporttheirdivisionofresponsibilities.TheChairman,ScottForbes,isresponsiblefortheeffectiveconductandleadershipoftheBoardandforcommunicationwithshareholders.Withtheassistanceofthe

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TheCompanywillarrangefortheAnnualReportandrelatedpaperstobeavailableontheCompany’scorporatewebsiteatwww.rightmove.co.uk/investorsorpostedtoshareholders(whererequested)soastoallowatleast20workingdaysforconsiderationbeforetheAnnual GeneralMeeting.TheCompanyalsocomplieswiththeUKCGCwiththe

separationofallresolutionsputtothevoteofshareholders.TheCompanyproactivelyencouragesshareholderstovote atgeneralmeetingsbyprovidingelectronicvotingforshareholderswhoholdtheirsharesthroughtheCrestsystemandprovidespersonalisedproxycardstoensurethatallvotesareclearlyidentifiable.TheCompanypresentlytakesvotesatgeneralmeetingsonashowofhandsonthegroundsofpracticalityduetothelimitednumberofshareholdersinattendance.Votesaretakenbyapollatanyshareholdermeetingwherelegallyrequired.AllproxyvotesarecountedandthelevelofproxyvotesincludingabstentionslodgedforeachresolutionarereportedaftereachresolutionandpublishedontheCompany’swebsite.

Board committeesTheBoardhasestablishedthreeprincipalcommittees,theAuditCommittee,theRemunerationCommitteeandtheNominationCommittee,eachofwhichoperateswithinwrittentermsofreferenceapprovedbytheBoard.NopersonotherthanaCommitteememberisentitledtoattendthemeetingsoftheseCommittees,exceptbyinvitationoftheChairmanofthatCommittee.

Remuneration committeeTheRemunerationCommittee’sprincipalresponsibilityis forsetting,reviewingandrecommendingtotheBoard theremunerationpolicyandstrategytoensurethattheCompany’sexecutivedirectorsandseniorexecutivesareproperlyincentivisedandfairlyrewardedfortheirindividualcontributionstotheCompany’soverallperformance,havingdueregardtotheinterestsoftheshareholdersandtothefinancialandcommercialhealthoftheGroup.FulldetailsoftheRemunerationCommittee’sresponsibilities,andareportofitsactivitiesduringtheyear,aresetoutintheRemunerationReport on pages 30 to 42.

Nomination committeeThepurposeoftheNominationCommitteeistoconsiderandmakerecommendationstotheBoardaboutthecompositionoftheBoard,includingproposedappointees,andwhethertofillanyvacanciesthatariseortochangethenumberofBoardmembers.

TheBoardhasagreedtoorganiseanexternallyfacilitatedBoardevaluationatleastonceeverythreeyearsandwilltakesometimetoreviewtheexternalmarketplaceoverthenextyeartodetermineanappropriatefacilitatorandprocessalternativeswiththeaimofintroducinganexternalevaluationin 2012.

Relations with shareholdersTheBoardisaccountabletoshareholdersfortheperformanceandactivitiesoftheCompanyandwelcomestheopportunitiestoengagewithshareholders.Withinthetermsoftheregulatoryframework,the

Companyhasconductedregulardialoguewithinstitutionalshareholdersthroughongoingmeetingswithinstitutionalinvestorsandresearchfirmstodiscussstrategy,operatingperformanceandfinancialperformance.ContactintheUKisprincipallywiththeManagingDirectorandChiefOperatingOfficerandFinanceDirector.TheChairmanalsoparticipatesintheUSAbi-annualinvestorroadshows.JonathanAgnew,SeniorIndependentDirector,isalsoavailabletoshareholdersiftheywishtosupplementcommunicationorifcontactthroughthenormalchannelsisinappropriate.TheBoardiskeptinformedoftheviewsandopinionsof

thosewithaninterestintheCompanythroughreportsfromtheManagingDirectorandChiefOperatingOfficerandFinanceDirectoraswellasreportsfromtheCompany’s jointbrokers,UBSandNumis.Shareholdersarealsokeptuptodatewiththe

Group’sactivitiesthroughtheAnnualandHalfyearReportsandtheinvestorrelationssectionofitswebsite,atwww.rightmove.co.uk/investors,whichprovidesdetails ofallthedirectors,latestnews,includingfinancialresults,investorpresentationsandStockExchangeannouncements.

Conflicts of interestIncasesofdoubt,theChairmanoftheBoardisresponsiblefordeterminingwhetheraconflictofinterestexists.

Annual General MeetingTheAnnualGeneralMeetingisanopportunityforshareholderstovoteoncertainaspectsoftheCompany’sbusinesstoaskquestionsofthedirectors,whowillalsobeavailablefordiscussionswithshareholderspriortoandafterthemeeting.TheAnnualGeneralMeetingwillbeheldon9May2012attheofficesofUBSLimitedat1FinsburyAvenue,London,EC2M2PP.

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ThequorumformeetingsoftheAuditCommitteeistwomembers.AppointmentstotheCommitteeareforaperiod ofuptothreeyears,extendablebynomorethantwoadditionalthreeyearperiods,solongasmemberscontinue to be independent.TheAuditCommitteemeetsatleastfourtimesayear

andmoreoftenifnecessary.TwoofitsmeetingsarepriortotheannouncementoftheHalfyearandFullyearresultsof theGroup,whentheexternalauditorisinattendance. TheCompanySecretaryactsasSecretarytotheAuditCommittee.TheChiefOperatingOfficerandFinanceDirectorandFinancialControllerarenormallyinvitedtoattendthemeetings.ColinKemp,non-executivedirector,isalsoinvited toattendthemeetings.

During2011theAuditCommitteehas,amongstothermatters:•approvedtheappointmentoftheexternalauditor;•fixedtheirremunerationandreviewedtheeffectivenessoftheexternalauditprocess;

•consideredtheneedforaninternalauditfunction;•considereditsresponsibilitiestosafeguardtheauditobjectivityandindependenceaswellastheneedsofthebusinessandreviewedapolicyfornon-auditprojectwork;

•receivedthereportfromtheexternalauditorontheirreviewofthe2010Fullyearandreviewedthe2010AnnualReport;

•agreedtheremitofthe2011auditplanbytheexternalauditor;

•receivedthereportfromtheexternalauditorontheir reviewofthe2011Halfyearresultsandreviewedthe2011HalfyearReport;

•reviewedtheGroup’streasurypolicy;•receivedthereportfromtheexternalauditorontheirreviewoftheinternalsystemsandcontrols;

•reviewedthewhistleblowingpolicy(whichprovidestheprocedureforstafftoreportanyconcernsthattheymayhaveindependentofmanagementaboutsuspectedmisconductwithoutfearofretaliation);

•reviewedthebriberypolicyandproceduresforcompliancewiththeBriberyAct;and

•conductedanannualreviewofitstermsofreference.

Giventhesimplicityoftheorganisationalstructure,theopenandaccountableculturewithclearauthoritylimits,thestraightforwardfinancialmodelandsystemsandthefactthatthemanagementteamandBoardconductregularfinancialreviews,theAuditCommitteerecommendedtotheBoardthataninternalauditfunctionwasnotcurrentlyappropriateforthebusiness.Thisdecisioniskeptunderregularreview.

TheNominationCommitteeconsistsofScottForbes (whoisalsoChairmanoftheBoard),JonathanAgnewandJudyVezmarasindependentnon-executivedirectors. ThequorumformeetingsoftheNominationCommitteeis twomembers.TheChairmanoftheCompanymaynotchairtheNominationCommitteeinconnectionwithanydiscussionabouttheappointmentofhissuccessortothechairmanshipoftheCompany.Inthesecircumstances,theSeniorIndependentDirectorwilltakethechair.Appointmentsare foraperiodofuptothreeyears,extendablebynomore thantwoadditionalthreeyearperiods,solongasmemberscontinue to be independent.TheNominationCommitteemeetsatsuchtimesasmay

be necessary and normally meets at least twice a year. TheNominationCommittee’stermsofreference

areavailableontheCompany’swebsite, www.rightmove.co.uk/investorsorbyrequestfrom theCompanySecretary.DuringtheyeartheNominationCommitteehas:

•approvedtheorganisationstructure;•approvedtheplansforthesuccessionoftheexecutivedirectorsandtheseniormanagementteam;

•agreedtheprocessfortheBoard’sannualevaluation;•consideredthediversityoftheBoardandagreedthe policyregardinggendercompositionontheBoard;and

•conductedanannualreviewofitstermsofreference.

Audit committeeTheAuditCommitteeassiststheBoardinthedischargeofitsdutiesconcerningtheannouncementofresults,theAnnualandHalfyearReportsandthemaintenanceofaneffectivesystemofinternalcontrols.Itreviewsthescopeandplanningoftheauditandtheauditor’sfindingsandconsiderstheGroup’saccountingpoliciesandthecompliancewiththosepolicies and applicable legal and accounting standards.TheAuditCommitteehasauthoritytoinvestigateany

areasofconcernastofinancialimproprietythatariseandtoobtainoutsidelegalorotherindependentprofessionaladviceinconnectiontherewith.TheAuditCommittee’sprincipaldutiesandtermsofreferenceareavailableontheCompany’swebsite,www.rightmove.co.uk/investors,orbyrequestfromtheCompanySecretary.TheAuditCommitteeconsistsofthethreeindependent

non-executivedirectors,AshleyMartin(whoisChairman),JudyVezmarandJonathanAgnew.AshleyMartinwaspreviouslytheFinanceDirectorofRokplcandGroupFinanceDirectorofthemediaservicesgroupTempusGroupplcand,havingrelevantfinancialskillsandexperience,wasappointedtotheroleofAuditCommitteeChairmanonhisappointmenttotheBoardinJune2009.

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•anorganisationalstructurewithclearlydefinedlinesofresponsibilityanddelegationofauthority;

•clearlydefinedpoliciesforcapitalexpenditureandinvestmentexist,includingappropriateauthorisationlevels,withlargercapitalprojects,acquisitionsanddisposalsrequiringBoardapproval;

•acomprehensivedisasterrecoveryplanbaseduponco-hostingoftheRightmove.co.ukwebsiteacrossthreeseparateLondonlocations,whichisregularlytested andreviewed;

•atreasuryfunctionwhichmanagescashflowforecasts andcashondepositandisresponsibleformonitoringcompliancewithbankingagreements,whereappropriate;

•awhistleblowingpolicyofwhichallemployeesaremadeaware,toenableconcernstoberaisedeitherwithlinemanagementor,ifappropriate,confidentiallyoutsidethelinemanagementstructure;and

•abriberypolicyofwhichallemployeesaremadeaware, toensurecompliancewiththeBriberyAct.

Throughtheproceduresoutlinedabove,theBoardhasconsideredallsignificantaspectsofinternalcontrolfortheyearanduptothedateofthisAnnualReport.

Going concern TheBoardisrequiredundertheUKCGCtoconsiderwhetherornotitisappropriatetoadoptthegoingconcernbasisinpreparingtheGroupandtheparentCompanyfinancialstatements.AspartofitsnormalbusinesspracticetheGroup

preparesannualandlongertermfinancialplans.Inaddition, agoingconcernpaperwaspreparedandpresentedtotheAuditCommitteeinFebruary2012priortoitrecommendingtheapprovalofthefinancialstatementsandnotesto theaccountsfortheyearended31December2011to theBoard.Aftermakingenquiries,theBoardhasareasonable

expectationthattheGroupandtheCompanyhasadequateresourcesandbankingfacilitiestocontinueinoperationalexistencefortheforeseeablefuture.Accordingly,theBoardcontinuestoadoptthegoingconcernbasisinpreparingtheannualreportandfinancialstatements.Furtherinformation isprovidedinNote1tothefinancialstatements.

TheAuditCommitteealsodiscusseditsresponsibilitiestosafeguardtheauditobjectivityandindependenceaswellastheneedsofthebusinessandagreedthatitwaspracticalinmanycasesfortheauditortobeassignedtoothernon-auditprojectworkduetotheirknowledgeandexpertiseofthebusiness.Thiswouldusuallyrelatetocorporatetransactionadviceandtaxcompliance.TheAuditCommitteeagreedapolicythatmanagementbegivenauthoritytoincurnon-auditfeesupto50%oftheannualagreedauditandtaxfeeinanyfinancialyearwithoutthepriorapprovaloftheAuditCommittee.In2011thenon-auditfeeswere£4,000inrelationtootheradvisoryservicesandwere£11,000inrelationtotaxadviceandarefullydisclosedinNote6ofthefinancial statements.

Internal controls TheBoardhasoverallresponsibilityfortheGroup’ssystemofinternalcontrolsandhasestablishedaframeworkoffinancialandothercontrols,whichisperiodicallyreviewedinaccordancewiththeTurnbullguidanceforitseffectiveness.TheBoardhastaken,andwillcontinuetotake,

appropriatemeasurestoensurethatthechancesoffinancialirregularitiesoccurringarereducedasfarasreasonablypossiblebycontinuallyseekingtoimprovethequalityofinformationatalllevelsintheGroup,fosteringanopenenvironmentandensuringthatthefinancialanalysisisrigorouslyapplied.Anysystemofinternalcontrolisdesignedtomanageratherthaneliminatetheriskoffailuretoachievebusinessobjectivesandcanonlyprovidereasonableandnotabsolute assurance against material misstatement or loss.TheGroup’smanagementhasestablishedtheprocedures

necessarytoensurethatthereisanongoingprocessforidentifying,evaluatingandmanagingthesignificantriskstotheGroup.Theseprocedureshavebeeninplaceforthewholeofthefinancialyearended31December2011anduptothedateoftheapprovalofthefinancialstatementsandtheyarereviewedregularly.

Thekeyelementsofthesystemofinternalcontrolare:•majorcommercial,strategic,competitiveandfinancialrisksareformallyidentified,quantifiedandassessed,discussedwiththeexecutivedirectors,afterwhichtheyareconsideredbytheBoard;

•acomprehensivesystemofplanning,budgetingandmonitoringGroupresults.Thisincludesmonthlymanagementreportingandmonitoringofperformanceagainstbothbudgetsandforecastswithexplanationsfor allsignificantvariances;

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Statement of directors’ responsibilities in respect of the Annual Report and financial statements ThedirectorsareresponsibleforpreparingtheAnnualReportandtheGroupandparentCompanyfinancialstatementsinaccordancewithapplicablelawandregulations.CompanylawrequiresthedirectorstoprepareGroupand

parentCompanyfinancialstatementsforeachfinancialyear.UnderthatlawtheyarerequiredtopreparetheGroupfinancialstatementsinaccordancewithIFRSsasadoptedbytheEUandapplicablelawandhaveelectedtopreparetheparentCompanyfinancialstatementsonthesamebasis.Undercompanylawthedirectorsmustnotapprovethe

financialstatementsunlesstheyaresatisfiedthattheygiveatrueandfairviewofthestateofaffairsoftheGroupandparentCompanyandoftheirprofitorlossforthatperiod.InpreparingeachoftheGroupandparentCompanyfinancialstatements,thedirectorsarerequiredto:•selectsuitableaccountingpoliciesandthenapplythemconsistently;

•makejudgmentsandestimatesthatarereasonableandprudent;

•statewhethertheyhavebeenpreparedinaccordancewithIFRSsasadoptedbytheEU;and

•preparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethattheGroupandtheparent Company will continue in business.

ThedirectorsareresponsibleforkeepingadequateaccountingrecordsthataresufficienttoshowandexplaintheparentCompany’stransactionsanddisclosewithreasonableaccuracyatanytimethefinancialpositionoftheparentCompanyandenablethemtoensurethatitsfinancialstatementscomplywiththeCompaniesAct2006.TheyhavegeneralresponsibilityfortakingsuchstepsasarereasonablyopentothemtosafeguardtheassetsoftheGroupandtopreventanddetectfraudandotherirregularities.Underapplicablelawandregulations,thedirectorsare

alsoresponsibleforpreparingaDirectors’Report,Directors’RemunerationReportandCorporateGovernanceStatementthatcomplywiththatlawandthoseregulations.Thedirectorsareresponsibleforthemaintenanceand

integrityofthecorporateandfinancialinformationincludedontheCompany’swebsite.LegislationintheUKgoverningthepreparationanddisseminationoffinancialstatementsmaydifferfromlegislationinotherjurisdictions.

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TheCommitteehasformaltermsofreferencewhich arereviewedannuallyandupdatedasrequired.These areavailableontheCompany’swebsiteat www.rightmove.co.uk/investorsoronrequestfrom theCompanySecretary.

MembershipThefollowingindependentnon-executivedirectorsweremembersoftheCommitteeduring2011andcontinueto be members.During2011theCommitteemetfivetimesandthe

attendanceisshownbelow:

Name of director Number of meetings attended

JonathanAgnew(ChairmanoftheCommittee) 5outof5

AshleyMartin 5outof5

JudyVezmar 5outof5

OnlymembersoftheCommitteehavetherighttoattendCommitteemeetings.TheChairmanoftheCommitteehasrequestedthatScottForbes,theChairmanoftheBoard,attendthemeetingsexceptduringdiscussionsrelatingto hisownremuneration.TheCompanySecretaryactsas theSecretaryoftheCommitteeandnormallyattends themeetings.EdWilliams,ManagingDirector,mayalsobeinvitedto

meetingsandtheCommitteetakesintoconsiderationhisrecommendationsregardingtheremunerationofhisexecutivecolleaguesandthefirstlayerofmanagement belowBoardlevel.Nodirectorisinvolvedindecidingtheirown remuneration. ThequorumformeetingsoftheCommitteeistwo

members.TheCommitteewillmeetonsuchtimesasmay be necessary but will normally meet at least twice a year.

AdviceDuringthelatterpartof2010andearly2011,AonHewittLimited(tradingasNewBridgeStreet)wasengagedbytheCommitteetoreviewtheexecutivedirectorremunerationpolicy.TheCommitteeandtheBoardconsideredthattheCompanyhadreachedapointatwhichitwasnecessarythattheremunerationpracticeshouldbebroughtcloserintolinewithmorestandardpracticeamongFTSEcompanies.The

Inlinewiththerequirementsofsection420ofthe CompaniesAct2006,thedirectorspresentthereportondirectors’remunerationforRightmoveplc(theCompany) anditssubsidiarycompanies(theGroup)fortheyearended 31December2011.Thisreportsetsoutthepoliciesunderwhichexecutiveandnon-executivedirectorswereremuneratedandprovidestablesofinformationshowingdetailsoftheremunerationandshareinterestsofallthedirectors.Inaccordancewiththerequirements,thereportprovidesthedisclosureintwoparts:informationsubjecttoauditandinformationthatisnotsubjecttoaudit.Shareholderswillbeprovidedwithanopportunitytovote

ontheRemunerationReportassetoutinthisAnnualReportattheforthcomingAnnualGeneralMeetingtobeheldon9 May 2012.

Part I: Unaudited informationThispartoftheRemunerationReportisnotsubjecttoaudit.

The Remuneration Committee

Terms of referenceTheprimaryroleoftheRemunerationCommittee(hereinafterreferredtoastheCommitteethroughoutthisreport)istomakerecommendationstotheBoardastotheCompany’sbroadpolicyandframeworkfortheremunerationoftheexecutivedirectors,theChairmanoftheBoardandtheCompanySecretary.InaccordancewiththeUKCorporateGovernanceCode,theCommitteealsorecommendsthestructureandmonitorsthelevelofremunerationforthefirstlayerofmanagementbelowBoardlevel.TheCommitteeisalsoawareof,andadviseson,theemployeebenefitstructuresthroughouttheCompanyanditssubsidiariesandensuresthatitiskeptawareofanypotentialbusinessrisksarisingfromthoseremunerationarrangements.

remuneration report

Jonathan AgnewNon-executiveDirector



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employeesandshareholders.ThisapproachshouldallowtheCompanytoattractandretainthesortofdynamic, self-motivatedindividualswhoarecriticaltothesuccess ofthebusiness.

•Executivedirectorsshouldhavebelowmarketlevelsofbasesalary,minimalbenefits(andonlybenefitswhicharemadeavailableonthesamebasistoallRightmoveemployees),andabovemarketlevelsofvariablepaypotential.Thisarrangementisdesignedtobestaligntheinterestsoftheexecutivedirectorswiththeinterestsofshareholdersand toreflecttheperformancedrivencultureoftheCompany.

•Remunerationarrangementsshouldbesimpletounderstand and administer.

•Changestoremunerationshouldbemadeinfrequentlyandthosechangesmadeeachyearshould,inmostinstances,bedirectlylinkedtothepoliciesappliedtoallemployees(specificallywithregardtorisesinbasesalaryandchangesin benefits).

•Executivedirectorsshouldbeprincipallyrewardedfor theoverallsuccessofthebusinessforwhichtheyhavecollectiveresponsibility.TheCompanyhaskeyshort-term,medium-termandlong-termgoalsandexecutivedirectorsshouldbeincentivisedagainstthesegoals.

•Executivesshouldnotbeabletogainsignificantlyfromshort-termsuccesseswhichsubsequentlyprovenottobeconsistentwithgrowingtheoverallvalueofthebusiness.Henceamajorityofanybonuspayableinrelationto short-termstrategicgoalsisrequiredtobetakeninthe formofsharesintheCompanywhicharedeferredforafurthertwoyearsafterthebonustargethasbeenachieved.

TheCommitteeissympathetictothecurrentconcernsregardingexecutiveremunerationandsupportiveofproposalstobringmorerigourandtransparencytothisarea.Atthetimeofwritingonlytheoutlineofwhatthegovernmentandtheinvestorcommunityintendhasbeenmadepublic.TheCommitteebelievesthatitsapproachtoremunerationandthecurrentcontractualcommitmentsinplacewithexecutivesarelikelytobecompatiblewiththeproposalswhicharetobeimplemented.TheCommittee’sapproachalready demonstrates a commitment to modest guaranteed rewardscomparedtomarketnorms.Basesalariesaremodestcomparedtobenchmarksandascomparedto theaverageremunerationofemployeesinthebusiness.

Committee commissioned an independent review by new BridgeStreettoassistinitsdeterminationofanappropriatefutureremunerationframeworkforexecutivedirectorstoapplyfrom2011.During2011NewBridgeStreetalsoprovidedservicesto

theCompanyinconnectionwiththevaluationofshare-basedincentives(asrequiredbyIFRS2)andconfirmedthat,initsview,thisservicedidnotpresentaconflictofinterestwiththeservicesprovidedtotheCommittee.

2011Inlinewithitsremit,thefollowingmatterswereconsideredbytheCommitteeduringtheyear:•consultationwithshareholdersonthenewremunerationframework;

•approvalofthe2010RemunerationReportandreviewofthevotingforthereportattheAnnualGeneralMeeting;

•approvaloftheRightmovePerformanceSharePlan(PSP);•approvalofdeferredshareawardsforthe2010financialyearundertheDeferredShareBonusPlan(DSP);

•settingofallperformancemeasuresforthe2011bonusplanandlongtermincentives;

•approvalofawardsunderthePSP;•annualreviewofexecutivedirectors’andseniormanagers’basesalaries;

•agreeingthetargetsforthe2012bonusplan;•agreeingthetargetsfortheproposedPSPawardstobemadeinMarch2012;

•reviewoftheCommittee’sperformanceduringtheperiod;and

•reviewoftheCommittee’stermsofreference.

Remuneration policyRightmove’sremunerationpolicyisbasedonthebeliefthatgrowth-orientatedcompaniesshouldrewardexecutiveswithdemonstrablylowerthanmarketbasesalariesandbenefitsandhigherthanmarketequityrewardscontingentupontheachievementofchallengingperformancecriteria.ThekeyprinciplesoftheCommittee’spolicyareasfollows:

•Remunerationarrangementsshouldbedesignedsoastoprovideexecutivedirectorswiththeopportunitytoreceive ashareinthefuturegrowthanddevelopmentoftheCompanywhichisregardedasfairbybothother

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•AgrantunderthePSPofnilcostoptionsorcontingentsharesworthupto200%ofsalarytoEdWilliams andtoNickMcKittrickand125%ofsalaryto PeterBrooks-Johnson.Vestingofawardsissubject toamixtureofearningspersharegrowth(EPS) (75%oftheawards)andrelativeTotalShareholder Return(TSR)(25%oftheawards)performancetargets.

All2011bonustargetsweremetinfull.Therefore,acashbonusof£169,000willbepaidtoEdWilliamsandNickMcKittrickand£120,000toPeterBrooks-JohnsonaftertheannouncementoftheFullyearresultsfortheyearended31December2011.Inadditionanawardofdeferredshares intheCompanyworth110%ofsalarywillbegrantedto EdWilliamsandNickMcKittrickand100%ofsalarytoPeterBrooks-JohnsonrespectivelyundertheDSPwhichwillbedeferreduntilMarch2014.Thebonuspaymentreflectstheincreaseinunderlyingoperatingprofitandstrongsharepriceperformanceintheperiod,thewebsitetrafficperformanceandtheretentionofallofRightmove’skeycustomers.TheCommitteebelievestheresultingbonuspaymentisappropriateinthecontextofthebusinessperformanceagainstbusinesstargetsandrelativetoprevailingmarketconditionsinthepropertyandmediaindustries.

2012 remuneration and details of the future remuneration framework During2010,theCommitteeundertookaconsultationprocesswithmajorshareholdersandinvestorbodiesand, atthe2011AnnualGeneralMeeting,receivedwidespreadsupportfortheintroductionofitsrevisedremunerationframeworkwith99.0%ofthevotescastinfavouroftheRemunerationReport.Consequently,therevisedremunerationframeworkisbeingimplementedand phasedinoverthreeyears(2011-2013).TheCommitteereservestherighttorevisitexecutiveremunerationshouldthecircumstancesdictatebutitsintentionistoimplementthesechangesoverthreeyearswithnofurtheralterationstotheremunerationframeworkduringthattime.DespitetheparticularlystrongsharepriceperformanceoftheCompanyoverthepastyear,theCommitteeisproposingnofurtherchangestoitsoriginalproposals.2012isthesecondyearofthephasedchanges.

Fulldetailsofpayarrangementsfor2012areoutlinedonpages 33 to 36.

Executivedirectorsonlyreceivethesameadditionalbenefitsthatareavailabletoallemployees.NeitheremploymentcontractsnorpreviousprecedentssuggestthattheCompanyoffersrewardsforfailure.NoemploymentcontracthasatermgreaterthanoneyearandclawbackprovisionsareinplacewithregardtobonusandthePSPplans.Totheextentthatexecutiveremunerationhasbeenhighormaycontinueto beso,thishasbeentheresultofthestrongoperatingperformanceofthebusinessandthehighlevelofshareholderreturnsgenerated.Asstatedabove,overallremunerationphilosophyisforsignificantlylowerthanbenchmarkfixedremunerationandhigherproportionaterewardsforsuccess.Thisappearstobeinlinewiththegovernment’spolicies.

2011 Remuneration Asdisclosedindetailinlastyear’sRemunerationReport,theCommitteehasapprovedanumberofsignificantchanges totheremunerationframeworkinordertoensurethattheframeworkremainsconsistentwiththeCommittee’sremunerationpolicy.Inparticular,basesalariesarebeingadjustedtoamoremarketcompetitivelevel(albeitalevel thatisstillsignificantlybelowthemarketmedian)inordertoensurethattheCompanyisabletorecruitandretainhighqualityexecutives.Thesechanges,approvedbyshareholdersatthe2011

AnnualGeneralMeeting,arebeingphasedinoverathreeyearperiodto2013.Thefirstphaseofthesechangesappliedin2011and,insummary,payarrangementscomprised thefollowing:•Basesalariesof£260,000forEdWilliamsandNickMcKittrick.PeterBrooks-Johnsonreceivedasalary of£200,000inthefirstyearofhisappointmentasanexecutivedirector.

•NopensionprovisionforNickMcKittrickandEdWilliams.PeterBrooks-JohnsonwasappointedtotheBoardinJanuary2011andwasalreadyamemberofthe stakeholderpensionplanwiththeCompanypayingemployercontributionsof£3,000perannum.

•Anannualcashbonusofupto65%ofsalary(reduced from75%in2010)andadeferredsharebonusofupto110%ofsalary(reducedfrom125%in2010)forEdWilliamsandNickMcKittrick.Thecorrespondingfigures forPeterBrooks-Johnsonwereacashbonusofupto 60%ofsalaryandadeferredsharebonusofupto100%. Thebonuswasdeterminedbyamixtureofunderlying profitperformanceandkeyperformanceindicators relatingtounderlyingdriversoflong-termrevenuegrowth.

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Thecurrentsalariesfortheexecutivedirectorswitheffectfrom1January2012aresetoutinthetablebelow:

Salary Salary

1 January 2012 31 december 2011

Executive directors(1)

ed Williams £318,240 £260,000

NickMcKittrick £318,240 £260,000

PeterBrooks-Johnson £245,000 £200,000(1)Theexecutivedirectors’wagesandsalariesmadeup9%oftheGroup’s

wages and salaries cost in 2011.

Pension and other benefitsTheGroupoperatesastakeholderpensionplanforemployeesunderwhichtheemployercontributes6%ofbasesalary(toamaximumof£3,000eachyear)subjecttotheemployeecontributingaminimumof3%ofbasesalary. EdWilliamsandNickMcKittrickvoluntarilydonotparticipateinthisarrangement.PeterBrooks-JohnsonisamemberofthestakeholderpensionplanandtheCompanycontributes£3,000perannum.TheCompanydoesnotcontributetoanypersonal pension arrangements.Theexecutivedirectorsareentitledtoprivatemedical

insuranceandtolifeassurancecoverequaltofourtimesbasesalary.Amedicalcashplanwasintroducedin2011toallemployeesandNickMcKittrickisamemberoftheplan.

Annual performance-related bonusTheCommitteebelievesthattheannualcashanddeferredsharebonusschemesofferacompetitivepotentialreward. Asdisclosedlastyear,itis,therefore,reducingthedirectors’bonuspotentialasapercentageofsalaryoverthethreeyears2011-2013toensurethatthemonetaryvalueofthepotentialbonusismaintainedbroadlyatthevalueasbeforetheimplementationofthenewpayframework.

Base salaryTheCommitteehadpreviouslyagreedthatEdWilliamsandNickMcKittrickshouldhaveequallevelsofbasesalary.Ithadalsoagreedthatthemarketbenchmarkusedtoassesstheirpayshouldbeconsistentwiththisdecision;hencetheuseofabenchmarkwhichisbasedontheFTSE250medianfortheaveragepayforachiefexecutiveandafinancedirector.Asdisclosedinthe2010RemunerationReport,the

CommitteehasdeterminedthatthevalueofEdWilliams’andNickMcKittrick’sfixedpay(salaryplusbenefits)shouldbeadjustedsothatby2013itisapproximately25%belowthemarketbenchmark.BasedonthecurrentmarketbenchmarkusedbytheCommittee(usedinthe2010reviewandadjustedtoreflectthe4%salaryincreasereceivedbyemployeesin2012)andthecurrentminimalbenefitsreceivedbythedirectors,thisimpliesasalarylevelforthesetwodirectorsin2013ofapproximately£374,000.ThisfigureissubjecttoannualreviewbytheCommitteefrom2013totakeaccountofanysignificantchangesinRightmove’ssizeandalsobasicinflation(asrepresentedbytheaverageRightmoveemployeesalaryincreasefor2013).Thesecondphasedincreasetowardsthistargetlevel

appliesin2012.Thepreviouslyagreedbasesalaries(of£306,000eachfor2012)weresubjecttoreviewbytheCommitteetotakeaccountofanysignificantchangesinRightmove’ssize(noadjustmentwasmadedespiteasignificantincreaseinsharepriceduringtheyear)andalsobasicinflation(whereamarketadjustmentwasappliedat thesamepercentagerateof4%asforotheremployees).ThereforebasesalariesforEdWilliamsandNickMcKittrickwitheffectfrom1January2012weresetat£318,240.TheCommitteehasagreedthatbytheendofthe

implementationofthenewremunerationframeworkin2013,PeterBrooks-Johnson’ssalaryshouldbe75%ofEdWilliams’andNickMcKittrick’ssalariesandaccordinglyhissalarywasincreasedto£245,000witheffectfrom1January2012,asatransitionalpointtothe2013level.

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Shareswillonlyvestintheeventofpriorsatisfactionofaperformancecondition.TheCommitteehasmadeclearinpreviousRemunerationReportsthatitbelievesEPSgrowthisthemostappropriatetypeofperformanceconditionforthisparticularbusinessatthisstageinitsdevelopment.ItalsorecognisesthatanumberofshareholdersbelieveitimportantthatrelativeTSRshouldalsobeaperformancemeasureinorderfortheretobeaclearalignmentofexecutiveandshareholderinterests.Consistentwith2011,PSPawardstoexecutivedirectors

underthePSPin2012willbesubjecttoamixtureofEPS(75%oftheawards)andrelativeTSR(25%oftheawards)performancebutwithahigherEPSthresholdof30%growth atwhichawardsareeligibletovest(2011:25%growth).The2012targetsareasfollows:

Relative TSR conditionThevestingschedulefortherelativeTSRelementofexecutivedirectors’2012PSPawardsissetoutbelow.ItisconsistentwiththeTSRconditionusedforpreviousgrantsundertheshare-basedincentiveschemes.Performancewillbemeasuredoverthreefinancialyears.

TSR performance of the Company % of award vesting

relative to the FTSE 250 Index(1) (maximum 25%)

LessthantheIndex 0%

EqualtotheIndex 6.25%

25%higherthantheIndex 25%

Intermediateperformance Straight-linevesting (1)IftheFTSE250Index’sTSRwas50%overthethree-yearperformanceperiod,thentheCompany’sTSRwouldhavetobeatleast75%forall25% ofthesharestovest.

EPS conditionTheGroup’sEPSgrowthwillbemeasuredoveraperiodofthreefinancialyears(2012-2014).TheEPSfigureusedwillbeequivalenttotheGroup’sreporteddilutedunderlyingEPSbutwithastandardUKtaxrateapplied(NormalisedEPS).

Consequently,concurrentwiththesalaryincreaseoutlinedabove,annualbonuspotentialforEdWilliamsandNickMcKittrickin2012willbereducedto150%ofsalary(175% ofsalaryin2011).PeterBrooks-Johnson’sannualbonuspotentialin2012isalso150%ofsalary(160%ofsalaryin2011).Inallcases,themaximumbonusin2012willbemadeupof55%ofsalaryincashand95%ofsalaryindeferredshares.Assumingimplementationofthefinalproposed salaryincrease,executivedirectors’bonuspotentialswill bereducedfurtherto125%ofsalaryin2013(50%ofsalarypaidincashand75%ofsalaryindeferredshares).Deferredshareswillvestaftertwoyearsandbepotentially

forfeitableoverthatperiod.Thebonuswill,asinpreviousyears,bedetermined

principally(70%)byprofitbeforetaxperformancewithtargetssetinrelationtoacarefullyconsideredbusinessplanandrequiringsignificantout-performanceofthatplantotriggermaximumpayments.Asignificantportionofthebonus(30%)willbedeterminedbyreferencetopre-settargetsforkeyperformanceindicatorsrelatingtounderlyingdriversof long-termrevenuegrowth.

Share awardsAtflotationandin2009and2010,theCompanyawardedmarketvalueshareoptionstoexecutivedirectorsandotherselectedemployeesdesignedtoaligntheinterestsofemployeeswiththelong-termsuccessofthebusiness.Asoutlinedinlastyear’sRemunerationReporthowever,theCommitteebelievesthatawardsofperformancesharesarenowmoreconsistentwithgeneralFTSEpracticeandprovidebetteralignmentofexecutiverewardtoperformance.Consequently,followingshareholderapprovalatthe

2011AnnualGeneralMeeting,thePSPwasestablished. ThePSPpermitsannualawardsofnilcostoptionsorcontingentsharesworthupto200%ofsalary.EdWilliamsandNickMcKittrickwillreceiveanannualawardin2012of175%ofsalary(2011:200%).Theirannualawardisintendedtoreduceagainin2013toanawardofsharesworth150% ofsalaryconcurrentwiththeirplannedsalaryincreaseforthatyear.PeterBrooks-Johnsonwillreceiveanawardof150%ofsalaryin2012(2011:125%ofsalary).




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ClawbackThenewUKCorporateGovernanceCodeprovision(applyingforthefirsttimethisyear)statesthatcompaniesshouldconsidertheintroductionof‘clawback’provisionsin‘exceptionalcircumstancesofmisstatementormisconduct’.TheCommitteesupportsthisprovisionandhasintroducedrelevantclawbackclausesintheGroup’sDSPandPSPrules.

Shareholding policyTobeconsistentwithbestpractice,aformalshareownershipguidelineappliesforexecutivedirectorsrequiringthemtoretainatleasthalfofanyshareawardsvestingorexercised(aftersellingsufficientsharestomeettheexercisepriceandtopaythetaxdue)untiltheyhaveaRightmoveshareholdingworthatleast200%ofsalaryfortheManagingDirectorand100%ofsalaryforanyotherexecutivedirector.Thevalueofthecurrentshareholdingsheldbytheexecutivedirectorsasapercentageofbasesalaryisshowninthetableonpage42.

External appointmentsWiththeapprovaloftheBoardineachcase,executivedirectorsmayacceptoneexternalappointmentasa non-executivedirectorofanotherpubliccompanyand retainanyfeesreceived.EdWilliamswasappointedasanon-executivedirector

ofTraderMediaGroupinNovember2010.Intheyearto31December2011hereceivedfeesof£30,000which,fromJuly2011,weredonateddirectlytocharity.

Chairman’s and non-executive directors’ feesIn2009,theBoarddecidedtoincreasefeesfortheChairmanandnon-executivedirectorsinfutureyearsannually,directly inlinewiththebasiclevelofpayrisereceivedbyemployeeswithinthebusinessuntilsuchtimeasitwasconsideredappropriatetoconductawiderreviewofnon-executivedirectorremuneration.Accordingly,theBoardapproved anincreasetothefeespayabletotheChairmanand non-executivedirectorsof4%perannum.Witheffectfrom1January2012,theChairmanisentitledtoreceiveafee of£108,160perannum(2011:£104,000).Theother non-executivedirectorsareentitledtoreceiveabasicfee of£43,264perannum(2011:£41,600)andanadditional£5,408feeperannum(2011:£5,200)forthechairingoftheAuditandRemunerationCommittees.JonathanAgnewispaidafurther£5,408feeperannum(2011:£5,200)asSeniorIndependentDirector.

Thefollowingvestingschedulewillapplyforexecutivedirectors’PSPawardstobegrantedin2012:

Normalised EPS growth % of award vesting

from 2012 to 2014(1) (maximum 75%)

Lessthan30% 0%

30% 18.75%

50% 75%

Between30%and50% Straight-linevesting (1)AssumingnochangeintheenactedUKcorporationtaxrateof26%beforetheendofthethree-yearperformanceperiod,thebenchmarkNormalisedEPSforthefinancialyear2011fromwhichthesegrowthtargetswillbemeasured is 47.5p.

TheCommitteeregardsthesetargetsasstretching,particularlyasthe2011EPS(thebenchmarkforthe2012award)isarecordhighfortheCompany.TheCommitteeiscomfortablethatthesetargetsareconsistentwithCompanystrategyandwithwhattheBoardregardsasanacceptablelevelofbusinessrisk.Thenon-executivedirectorsdonotparticipatein,or

benefitfrom,anyoftheCompany’sshareincentiveorbonusplansexceptthatScottForbesreceivedpre-admissionunapprovedoptionsinconsiderationforhisworkinvolvedintheIPOandinaccordancewithhiscontractualagreementonappointment in 2005.Executivedirectorsarealsoeligibletoparticipateinthe

Company’semployeeSharesavescheme.EdWilliams, NickMcKittrickandPeterBrooks-Johnsonallcontribute themaximumamountspermittedundertheschemewhichcommencedon1November2009andwhichmaturesinNovember2012.Detailsareincludedinthetableonpage39and 40.

DilutionAllexistingexecutiveshare-basedincentivescanbesatisfiedfromsharesheldintheRightmoveEmployees’ShareTrust(EBT)andsharesheldintreasury.Itisintendedthatthe2012share-basedincentiveawardswouldalsobesettledfromsharescurrentlyheldintheEBTorfromsharesheldintreasurywithoutanyrequirementtoissuefurthershares.

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TheLettersofAppointmentofJonathanAgnew,ColinKemp,AshleyMartinandJudyVezmarprovideforatermofuptotwothree-yearperiodsandapossiblefurtherthree-yearterm(subjecttore-electionbyshareholdersandsubjecttothedirectorremainingindependent).TheappointmentsmaybeterminatedwithanoticeperiodofthreemonthsoneithersideandtheLettersofAppointmentsetoutthetimecommitmentsrequiredtomeettheexpectationsoftheirroles.Furtherdetailsofalldirectors’contractsandLettersof

Appointmentaresummarisedonpage37.Copiesareavailableforinspectiononrequesttothe

CompanySecretary.

Thenon-executivedirectors’feelevelsarewithinthelimitssetbytheArticlesofAssociationoftheCompany.Thecurrentfeelevelsforthenon-executivedirectorswitheffectfrom1January2012aresetoutinthetablebelow:

Fee

Fee year ended

1 January 31 december increase

2012 2011 infee

ScottForbes £108,160 £104,000 4%

JonathanAgnew £54,080 £52,000 4%

ColinKemp(1) £43,264 £41,600(1) 4%

AshleyMartin £48,672 £46,800 4%

JudyVezmar £43,264 £41,600 4% (1)ColinKemp,non-executivedirector,waivedhisfeeinfullfor2011.Thefeewillbepayablewitheffectfrom1January2012.

Directors’ service contracts and non-executive directors’ terms of appointmentTheCommittee’spolicyonserviceagreementsforexecutivedirectorsisthattheyshouldprovidefor12monthsnotice ofterminationbytheCompanyandbytheexecutive. AnyproposalsfortheearlyterminationbytheCompany oftheserviceagreementsofdirectorsorseniorexecutives areconsideredbytheCommittee.Theserviceagreementsfortheexecutivedirectors

(EdWilliams,NickMcKittrickandPeterBrooks-Johnson)allowforlawfulterminationofemploymentbymakingapaymentinlieuofnoticeorbymakingphasedpayments overanyremainingunexpiredperiodofnotice.Thephasedpaymentsmaybereducedif,andtotheextentthat,theexecutivefindsanalternativeremuneratedposition.ScottForbes’appointmentmaybeterminatedbyeither

partygivingtotheothernotlessthanthreemonthsnotice inwriting.TheCompanymayalsoterminatebymakingapaymentinlieuofnotice.ScottForbesisnotcontractuallyentitledtoanyotherbenefitsonterminationofhiscontractotherthaninrelationtohisshareoptionsasdescribedinthetable on page 40.



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Directors’ service contracts and non-executive directors’ terms of appointment continued

Date of contract/ Notice Length of service

Date of appointment Letter of Appointment(1) (months) at 24 February 2012

Executive directors

EdWilliams(ManagingDirector) 19December2000 7February2006 12 11years2months

NickMcKittrick(2) 5March2004 7February2006 12 7years11months

PeterBrooks-Johnson(3) 10January2011 22February2011 12 1year1month

Non-executive directors

ScottForbes(Chairman) 13July2005 21February2006 3 6years7months

JonathanAgnew(SeniorIndependentDirector) 16January2006 12December2005 3 6years1month

ColinKemp 3July2007 4December2007 3 4years7months

AshleyMartin 11June2009 11June2009 3 2years8months

JudyVezmar 16January2006 12December2005 3 6years1month

(1) TheservicecontractsandtheLettersofAppointmentforalldirectorswiththeexceptionofPeterBrooks-Johnson(whowasappointedtotheBoardon

10January2011)weretransferredfromRightmoveGroupLimitedtoRightmoveplcwitheffectfrom28January2008oncompletionofaSchemeofArrangementundertheCompaniesAct1985.

(2) NickMcKittrickjoinedtheGroupinDecember2000andwasappointedtotheBoardon5March2004.HisservicewiththeGroupatthedateofthisreport is11yearsand2months.

(3) PeterBrooks-JohnsonwasappointedtotheBoardon10January2011.HisservicewiththeGroupatthedateofthisreportis6yearsand1month.

Performance graph In2011,theCompany’ssharepriceendedtheyearup60%yearonyear(theFTSE250wasdown13%),makingitthesecondbestperformingshareintheFTSE350for2011andthirdbestperformingFTSE350shareoverthelastthreeyears.ThegraphontheleftbelowcomparestheTSRofRightmove’ssharesagainsttheFTSE250Indexfortheperiodfrom

1January2009to31December2011.Specifically,itillustratesthevalueof£100investedinRightmove’ssharesandintheFTSE250Indexoverthatperiod.ThisindexwaschosenasthecomparatorbecauseRightmoveisacurrentconstituentofthisindex.Itwasusedasacomparatorintheperformanceconditionapplyingtoshareoptionsgrantedin2009(100%TSR),2010(50%TSR)and25%ofthePSPawardsin2011.Itwillalsobeusedasthecriteriaappliedto25%ofthePSPawardstobegranted in 2012. Thegraphontherightbelowillustrates,forstatutorypurposes,theTSRofRightmove’ssharesagainsttheFTSE250Indexfor

thefiveyearsto31December2011.

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Part II Audited information Directors’ remunerationTheremunerationofthedirectorsoftheCompanyduringtheyearfortimeservedasadirectorisasfollows:

Basicsalary/ 2011cash fees bonuspayable(1) Benefitsinkind(2) 2011 total 2010 total(3)

£ £ £ £ £

Executive directors

EdWilliams(ManagingDirector) 260,000 169,000 1,233 430,233 381,251

NickMcKittrick 260,000 169,000 1,090 430,090 381,251

PeterBrooks-Johnson 200,000 120,000 3,921 323,921 –(4)


ScottForbes(Chairman) 104,000 – – 104,000 100,000

JonathanAgnew(SeniorIndependentDirector) 52,000 – – 52,000 50,000

ColinKemp(5) – – – – –

AshleyMartin 46,800 – – 46,800 45,000

JudyVezmar 41,600 – – 41,600 40,000

Former directors

StephenShipperley(6) – – – – 40,000

(1) BonusrelatestotheaccruedcashpaymentinrespectoftheFullyearresultsfortheyearended31December2011. Inadditiontothe2011cashbonusnoted

aboveanawardofdeferredsharesworth110%ofsalary(yearended31December2010:125%ofsalary)willbegrantedtoEdWilliamsandNickMcKittrickrespectivelyand100%ofsalaryforPeterBrooks-JohnsonundertheDSPinMarch2012andvestingin2014.Thebonuspaymentreflectstheincreaseinunderlyingoperatingprofitandstrongsharepriceperformanceintheyear,themeasurementofwebsitetrafficandtheretentionofallofRightmove’skeycustomers.TheCommitteebelievestheresultingbonuspaymentisappropriateinthecontextofthebusinessperformanceagainstbusinesstargetsandrelativetoprevailingmarketconditionsinthepropertyandmediaindustries.

(2) Benefitsinkindfortheexecutivedirectorsrelatetoprivatemedicalinsurance(alldirectors),pensioncontributions(PeterBrooks-Johnson)andthemedicalcashplan(NickMcKittrick).

(3) Additionally,on4March2011,EdWilliamsandNickMcKittrickwerebothawarded29,199deferredsharesundertheDSPwhichvestin2013.Themonetaryvalueoftheseawardswas£271,549.TheawardsrelatedtothebonusinrespectoftheFullyearresultsfortheyearended31December2010andwerecalculatedbaseduponasharepriceof£9.30.Theawardsareincludedinthetableonpage39.

(4) PeterBrooks-JohnsonwasappointedtotheBoardon10January2011.(5) ColinKempwaivedhisfeein2011.(6) StephenShipperley,non-executivedirector,resignedfromtheBoardon31December2010.



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Share-based incentives held by the directors and not exercised as at 31 December 2011 Share-based Share Share-based incentivesheld priceat incentives held at Date 1January Granted Exercise Exercised dateof 31 December Vesting Expiry granted 2011 inyear price inyear exercise 2011 date(1) date

Executive directors

EdWilliams Between (Managing director) 14/3/2006 14/3/2009 & (Approved) 7,317 – £4.10 – – 7,317(1) 14/3/2011 13/3/2016

Between 15/3/2006 15/3/2009 & (Unapproved) 1,681,412 – £3.35 (300,000)(1) £13.47827 1,381,412(1) 15/3/2011 14/3/2016

5/3/2009 (Unapproved) 373,007(2) – £2.24 – – 373,007 5/3/2012 4/3/2019

1/10/2009 (Sharesave) 2,135 – £4.25 – – 2,135 1/11/2012 30/4/2013

5/3/2010 (Unapproved) 130,474(5) – £6.66 – – 130,474 5/3/2013 4/3/2020

5/3/2010 (DSP) 39,205(6) – £0.00 – – 39,205 5/3/2012 4/3/2013

4/3/2011 (DSP) – 29,199(7) £0.00 – – 29,199 4/3/2013 3/3/2014

4/5/2011 (PSP) – 49,289(8) £0.00 – – 49,289 4/3/2014 3/3/2016

Total 2,233,550 78,488 – (300,000) – 2,012,038

NickMcKittrick Between 14/3/2006 14/3/2009 & (Approved) 7,317 – £4.10 (1,317)(1) £12.42247 6,000(1) 14/3/2011 13/3/2016

Between 15/3/2006 15/3/2009 & (Unapproved) 987,047 – £3.35 (387,047)(1) £12.42247 600,000(1) 15/3/2011 14/3/2016

10/10/2007 (Unapproved) 75,000(3) – £5.22 – – 75,000 15/3/2011 9/10/2017

5/3/2009 (Unapproved) 279,755(2) – £2.24 – – 279,755 5/3/2012 4/3/2019

1/10/2009 (Sharesave) 2,135 – £4.25 – – 2,135 1/11/2012 30/4/2013

5/3/2010 (Unapproved) 114,165(5) – £6.66 – – 114,165 5/3/2013 4/3/2020

5/3/2010 (DSP) 31,364(6) – £0.00 – – 31,364 5/3/2012 4/3/2013

4/3/2011 (DSP) – 29,199(7) £0.00 – – 29,199 4/3/2013 3/3/2014

4/5/2011 (PSP) – 49,289(8) £0.00 – – 49,289 4/3/2014 3/3/2016

Total 1,496,783 78,488 – (388,364) – 1,186,907

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Share-based incentives held by the directors and not exercised as at 31 December 2011 continued Share-based Share Share-based incentivesheld priceat incentives held at Date 1January Granted Exercise Exercised dateof 31 December Vesting Expiry granted 2011 inyear price inyear exercise 2011 date(1) date

Executive directors continued

PeterBrooks-Johnson Between 14/3/2006 14/3/2009 & (Approved) 2,439 – £4.10 – – 2,439(1) 14/3/2011 13/3/2016

Between 15/3/2006 15/3/2009 & (Unapproved) 85,949 – £3.35 (85,949)(1) £9.69559 –(1) 15/3/2011 14/3/2016

10/10/2007 (Unapproved) 75,000(3) – £5.22 – – 75,000 15/3/2011 9/10/2017

5/3/2009 (Unapproved) 139,286(2) – £2.24 – – 139,286 5/3/2012 4/3/2019

1/10/2009 (Sharesave) 2,135 – £4.25 – – 2,135 1/11/2012 30/4/2013

5/3/2010 (Unapproved) 52,553(5) – £6.66 – – 52,553 5/3/2013 4/3/2020

5/3/2010 (DSP) 34,821(6) – £0.00 – – 34,821 5/3/2012 4/3/2013

4/3/2011 (DSP) – 18,393(7) £0.00 – – 18,393 4/3/2013 3/3/2014

4/5/2011 (PSP) – 23,697(8) £0.00 – – 23,697 4/3/2014 3/3/2016

Total 392,183 42,090 – (85,949) – 348,324

Non-executive director

Between ScottForbes(Chairman) 15/3/2006 15/3/2007& (Unapproved) 1,138,729 – £3.35 (500,000)(4) £9.62266 638,729(4) 15/3/2009 14/3/2016

(1) InMarch2006,1,981,412,987,047and257,847pre-admissionoptionsweregrantedtoEdWilliams,NickMcKittrickandPeterBrooks-JohnsonundertheRightmoveUnapprovedExecutiveShareOptionPlanand7,317pre-admissionoptionsweregrantedtoeachoftheexecutivedirectorsundertheRightmoveApprovedExecutiveShareOptionPlan.Theoptionsvestedastoonethirdofthenumberofoptionsharesoneachofthethird,fourthandfifthanniversariesofthedateoftheoptiongrant.

EdWilliamsexercised300,000ofthevestedpre-admissionunapprovedoptionsinNovember2011andsoldallthesharesimmediatelyonexerciseatamarketvalueof£13.47827pershare.Ofthe1,318,412pre-admissionunapprovedoptionsand7,317pre-admissionapprovedoptionsoutstandingforEdWilliamsasat31December2011,alloptionshavevestedandareeligibleforexercise.

NickMcKittrickexercised387,047vestedpre-admissionunapprovedoptionsand1,317vestedpre-admissionapprovedoptionsinSeptember2011and soldallthesharesimmediatelyonexerciseatamarketvalueof£12.42247pershare.Ofthe600,000pre-admissionunapprovedoptionsand6,000 pre-admissionapprovedoptionsoutstandingforNickMcKittrickasat31December2011,alloptionshavevestedandareeligibleforexercise.

PeterBrooks-Johnsonexercised85,949pre-admissionunapprovedoptionsinMarch2011andsoldallthesharesimmediatelyonexerciseatamarketvalueof£9.69559.The2,439pre-admissionapprovedoptionsoutstandingforPeterBrooks-Johnsonasat31December2011havevestedandareeligibleforexercise.

(2) Theoptionsgrantedon5March2009areexercisableon5March2012atanexercisepriceof£2.24,subjectto100%TSRperformancecriteriabasedupontheperformanceofRightmove’ssharesagainsttheFTSE250Indexfortheperiodfrom1January2009to31December2011.

RelativeTSRcondition 2009optionsexercisable

LessthantheIndex 0% EqualtotheIndex 25% 25%higherthantheIndex 100% Intermediateperformance Straight-linevesting

Attheendoftheperformanceperiod,Rightmove’sTSRwas660.8%comparedto70.5%fortheFTSE250Index.Asthislevelofoutperformanceismorethan25%,theseoptionswillbefullyexercisablefrom5March2012.



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Share-based incentives held by the directors and not exercised as at 31 December 2011 continued

(3) Theoptionsgrantedon10October2007areexercisablefrom15March2011atanexercisepriceof£5.22subjecttothebasicEPSpertheauditedconsolidatedfinancialstatementsfortheGroupfortheyearended31December2010beingnotlessthan30.0p.Alloptionshavevested.

(4) Pre-admissionunapprovedoptionsgrantedtoScottForbesinMarch2006undertheRightmoveUnapprovedExecutiveShareOptionPlan,vestastoonethirdofthenumberofoptionsharesoneachofthefirst,secondandthirdanniversariesofthedateoftheoptiongrant.

ScottForbesexercised500,000ofthevestedpre-admissionunapprovedoptionsinMarch2011andsoldallthesharesimmediatelyonexerciseatamarketvalueof£9.62266pershare.Allpre-admissionoptionsoutstandingasat31December2011havevestedandareeligibleforexercise.

(5) Theoptionsgrantedon5March2010areexercisableon5March2013atanexercisepriceof£6.66subjecttothefollowingperformanceconditions: Thevestingof50%ofthe2010awardwillbedependentonarelativeTSRperformancecriteriabasedupontheperformanceofRightmove’ssharesagainst

theFTSE250Indexfortheperiodfrom1January2010to31December2012.

RelativeTSRcondition 2010optionsexercisable(maximum50%)

LessthantheIndex 0% EqualtotheIndex 12.5% 25%higherthantheIndex 50% Intermediateperformance Straight-linevesting

Thevestingof50%ofthe2010awardwillbedependentonthesatisfactionoftheGroup’sNormalisedEPSgrowthfortheperiod1January2010to31 december 2012.

EPScondition 2010optionsexercisableupto200%ofsalary 2010optionsexercisableover200%ofsalary

25% 0% 0% 45% Infull 0% 65% – Infull Intermediateperformance Straight-linevesting Straight-linevesting

Assumingnochangeinthestandardcorporationtaxratebeforetheendofthethree-yearperformanceperiod,thebenchmarkEPSforthefinancialyear2009fromwhichthesegrowthtargetswillbemeasuredis26.7p.

(6) On5March2010,EdWilliams,NickMcKittrickandPeterBrooks-JohnsonwereawardeddeferredsharesundertheDSP,whichvestin2012.Theclosingsharepriceonthedateofgrantwas£6.77.

(7) On4March2011,EdWilliams,NickMcKittrickandPeterBrooks-JohnsonwereawardeddeferredsharesundertheDSP,whichvestin2013.Theclosingsharepriceonthedateofgrantwas£9.59.

(8) On4May2011,EdWilliams,NickMcKittrickandPeterBrooks-Johnsonwereawarded49,289,49,289and23,697sharesrespectivelyunderthePSP,whichvestin2014andaresubjecttoamixtureofEPS(75%oftheawards)andrelativeTSR(25%oftheawards)performancewiththegreaterweightingonEPStoreflectitsparticularrelevancetotheperformanceofthebusiness.Theclosingsharepriceonthedateofgrantwas£10.39.

ThevestingschedulefortherelativeTSRelementofexecutivedirectors’2011PSPawardsissetoutbelow.ItisconsistentwiththeTSRconditionusedforpreviousgrantsundertheshareoptionscheme.Performancewillbemeasuredoverthreefinancialyears.

RelativeTSRcondition %ofawardvesting(maximum25%)

LessthantheIndex 0% EqualtotheIndex 6.25% 25%higherthantheIndex 25% Intermediateperformance Straight-linevesting

Rightmove’sEPSgrowthwillbemeasuredoveraperiodofthreefinancialyears(2011-2013).TheEPSfigureusedwillbeequivalenttotheNormalisedEPS(thereporteddilutedunderlyingEPSbutwithastandardtaxrateapplied).

Thefollowingvestingschedulewillapplyforexecutivedirectors’awardsgrantedin2011:

NormalisedEPSgrowthfrom2011to2013 %ofawardvesting(maximum75%)

Lessthan25% 0% 25% 18.75% 50% 75% Between25%and50% Straight-linevesting

Assumingnochangeintheenactedcorporationtaxrateof27%beforetheendofthethree-yearperformanceperiod,thebenchmarkNormalisedEPSforthefinancialyear2010fromwhichthesegrowthtargetswillbemeasuredis37.2p.

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Directors’ interests in sharesTheinterests(bothbeneficialandfamilyinterests)ofthedirectorsinofficeat31December2011inthesharecapitaloftheCompanywereasfollows: Interests in Interests in

ordinary shares of £0.01 share-based incentives

At At At At

31 December 2011 1January2011 31 December 2011 1January2011

Executive directors

ed Williams (Managing director) 1,072,578 1,374,178 2,012,038 2,233,550

NickMcKittrick 129,000 129,000 1,186,907 1,496,783

PeterBrooks-Johnson 4,543 4,543 348,324 392,183


ScottForbes(Chairman) 619,300 619,300 638,729 1,138,729

JonathanAgnew(SeniorIndependentDirector) 5,000 30,000 – –

ColinKemp – – – –

AshleyMartin 2,060 2,060 – –

JudyVezmar 16,343 31,343 – –

•TheCompany’ssharesinissue(including2,505,430sharesheldintreasury)asat31December2011comprised110,410,636(2010:114,761,434)ordinarysharesof£0.01each.

•Themid-marketsharepriceoftheCompanywas£8.12asat4January2011(thefirstdayoftradingin2011),andwas£12.44asat30December2011 (thelastdayoftradingin2011).Themid-markethighandlowsharepricesoftheCompanywere£14.24(8November2011)and£7.66(17January2011)respectivelyintheyear.

•Theexecutivedirectorsareregardedasbeinginterested,forthepurposesoftheCompaniesAct2006,in4,527,783(2010:6,322,329)ordinarysharesof £0.01eachintheCompanycurrentlyheldbytheEBTastheyare,togetherwithotheremployees,potentialbeneficiariesoftheEBT.

•Thedirectors’beneficialholdingsrepresent1.7%oftheCompany’ssharesinissueasat31December2011(2010:2.0%)(excludingsharesheldintreasury).•Therehavebeennochangestotheaboveinterestsbetweentheyearendandthedateofthisreport.

Theinterestsoftheexecutivedirectorsinofficeat31December2011inthesharecapitaloftheCompanyasapercentageofbasicsalarywereasfollows:

Number of Value of

Basic salary shares held at Value of shares at shares as a %

1 January 2012 31 December 2011 31 December 2011 of basic salary

Executive directors

EdWilliams(ManagingDirector) £318,240 1,072,578 £13,342,870 4,193

NickMcKittrick £318,240 129,000 £1,604,760 504

PeterBrooks-Johnson £245,000 4,543 £56,515 23

Jonathan AgnewChairman,RemunerationCommittee

24 February 2011



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Opinion on other matters prescribed by the Companies Act 2006in our opinion:•thepartoftheDirectors’RemunerationReporttobeauditedhasbeenproperlypreparedinaccordancewith theCompaniesAct2006;

•theinformationgivenintheDirectors’Reportforthefinancialyearforwhichthefinancialstatementsarepreparedisconsistentwiththefinancialstatements;and

•informationgivenintheCorporateGovernanceStatementsetoutonpages24to29withrespecttointernalcontrolandriskmanagementsystemsinrelationtofinancialreportingprocessesandaboutsharecapitalstructures isconsistentwiththefinancialstatements.

Matters on which we are required to report by exceptionWehavenothingtoreportinrespectofthefollowing:UndertheCompaniesAct2006wearerequiredtoreporttoyouif,inouropinion:•adequateaccountingrecordshavenotbeenkeptbytheparentCompany,orreturnsadequateforouraudithave notbeenreceivedfrombranchesnotvisitedbyus;or

•theparentCompanyfinancialstatementsandthepartof theDirectors’RemunerationReporttobeauditedarenot inagreementwiththeaccountingrecordsandreturns;or

•certaindisclosuresofdirectors’remunerationspecifiedbylawarenotmade;or

•wehavenotreceivedalltheinformationandexplanationswerequireforouraudit;or

•aCorporateGovernanceStatementhasnotbeenpreparedbytheCompany.

UndertheListingRuleswearerequiredtoreview:•thedirectors’statement,setoutonpage29,inrelationtogoingconcern;

•thepartoftheCorporateGovernanceStatementonpages24to29relatingtotheCompany’scompliancewiththenineprovisionsoftheUKCorporateGovernanceCodespecifiedforourreview;and

•certainelementsofthereporttoshareholdersbytheBoardondirectors’remuneration.

SJWardell(SeniorStatutoryAuditor) forandonbehalfofKPMGAuditPlc,StatutoryAuditor

CharteredAccountantsAltiusHouseOneNorthFourthStreetMiltonKeynes,MK91NE24 February 2012

Independent auditor’s report to the members of Rightmove plcWehaveauditedthefinancialstatementsofRightmoveplcfortheyearended31December2011setoutonpages44to83.ThefinancialreportingframeworkthathasbeenappliedintheirpreparationisapplicablelawandInternationalFinancialReportingStandards(IFRSs)asadoptedbytheEUand,asregardstheparentCompanyfinancialstatements,asappliedinaccordancewiththeprovisionsoftheCompaniesAct2006.ThisreportismadesolelytotheCompany’smembers,as

abody,inaccordancewithChapter3ofPart16oftheCompaniesAct2006.OurauditworkhasbeenundertakensothatwemightstatetotheCompany’smembersthosematterswearerequiredtostatetotheminanauditor’sreportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthantheCompanyandtheCompany’smembers,asabody,forourauditwork,forthisreport,orfortheopinionswehaveformed.

Respective responsibilities of directors and auditorAsexplainedmorefullyintheDirectors’ResponsibilitiesStatementsetoutonpage29,thedirectorsareresponsibleforthepreparationofthefinancialstatementsandforbeingsatisfiedthattheygiveatrueandfairview.Ourresponsibilityistoaudit,andexpressanopinionon,thefinancialstatementsinaccordancewithapplicablelawandInternationalStandardsonAuditing(UKandIreland).ThosestandardsrequireustocomplywiththeAuditingPracticesBoard’s(APB’s)EthicalStandardsforAuditors.

Scope of the audit of the financial statementsAdescriptionofthescopeofanauditoffinancialstatementsisprovidedontheAPB’swebsiteat www.frc.org.uk/apb/scope/private.cfm.

Opinion on financial statementsin our opinion:•thefinancialstatementsgiveatrueandfairviewofthestateoftheGroup’sandoftheparentCompany’saffairsasat31December2011andoftheGroup’sprofitfortheyearthenended;

•theGroupfinancialstatementshavebeenproperlypreparedinaccordancewithIFRSsasadoptedbytheEU;

•theparentCompanyfinancialstatementshavebeenproperlypreparedinaccordancewithIFRSsasadopted bytheEUandasappliedinaccordancewiththeprovisionsoftheCompaniesAct2006;and

•thefinancialstatementshavebeenpreparedinaccordancewiththerequirementsoftheCompaniesAct2006and, asregardsthegroupfinancialstatements,Article4oftheIASRegulation.

auditor’s report

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Year ended Year ended

31 December 2011 31 December 2010

Note £000 £000

Continuing operations Revenue 2,5 97,017 81,556

Administrative expenses (34,350) (29,490)

Operating profit before share-based payments and NI on share-based incentives 69,362 56,563Share-based payments 24 (2,269) (1,846)NI on share-based incentives 24 (4,426) (2,651)

Operating profit 6 62,667 52,066

Financial income 8 182 171Financial (expenses)/credit 9 (121) 8

Net financial income 61 179

Profit before tax 62,728 52,245Income tax expense 10 (16,674) (13,710)

Profit from continuing operations 46,054 38,535 Discontinued operation Profit from discontinued operation (net of income tax) 11 451 19,467

Profit for the year being total comprehensive income 46,505 58,002

Attributable to:Equity holders of the Parent 46,505 58,002

Earnings per share (pence) Basic 12 44.37 53.69Diluted 12 42.71 52.08 Earnings per share – continuing operations (pence) Basic 12 43.94 35.67Diluted 12 42.29 34.60 Dividends per share (pence) 13 16.00 12.00Total dividends 13 16,777 12,957

Consolidated statement of comprehensive income for the year ended 31 December 2011



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Note £000 £000

Non-current assets Property, plant and equipment 14 1,120 1,488Intangible assets 15 1,320 1,463Trade and other receivables 11,17 1,667 1,000Contingent consideration 11 – 667Deferred tax assets 21 10,684 6,675

Total non-current assets 14,791 11,293

Current assets Trade and other receivables 17 14,990 11,865Contingent consideration 11 – 4,437Cash and cash equivalents 18 21,768 23,148

Total current assets 36,758 39,450

Total assets 51,549 50,743

Current liabilities Trade and other payables 19 (20,874) (15,989)Income tax payable (6,021) (6,890)

Total current liabilities (26,895) (22,879)

Net assets 24,654 27,864

Equity Share capital 22,23 1,104 1,147Other reserves 23 328 285Retained earnings 23 23,222 26,432

Total equity attributable to the equity holders of the Parent 23 24,654 27,864

The financial statements were approved by the Board of directors on 24 February 2012 and were signed on its behalf by:

Ed Williams Nick McKittrickDirector Director

Consolidated statement of financial positionas at 31 December 2011

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Note £000 £000

Non-current assets Investments 16 540,094 539,304Deferred tax assets 21 8,373 5,142

Total non-current assets 548,467 544,446

Total assets 548,467 544,446

Current liabilities Trade and other payables 19 (93,315) (25,652)

Total current liabilities (93,315) (25,652)

Net assets 455,152 518,794

Equity Share capital 22,23 1,104 1,147Other reserves 23 106,794 105,961Retained earnings 23 347,254 411,686

Total equity attributable to the equity holders of the Parent 23 455,152 518,794

The financial statements were approved by the Board of directors on 24 February 2012 and were signed on its behalf by:

Ed Williams Nick McKittrickDirector Director

Company statement of financial positionas at 31 December 2011



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Note £000 £000

Cash flows from operating activitiesProfit for the year 46,505 58,002 Adjustments for: Depreciation charges 14 661 575Amortisation charges 15 279 336Loss on disposal of property, plant and equipment 68 76Loss on disposal of intangible assets 26 1Financial income 8 (182) (171)Financial expenses/(credit) 9 121 (8)Share-based payments charge 24 2,269 1,846Gain on sale of discontinued operation (net of income tax) 11 (451) (18,691)Income tax expense 10 16,674 14,014

Operating cash flow before changes in working capital 65,970 55,980

Increase in trade and other receivables (3,129) (2,734)Increase in trade and other payables 4,870 5,585Increase in provisions – 4

Cash generated from operating activities 67,711 58,835

Interest paid (121) (136)Income taxes paid (14,281) (12,198)

Net cash from operating activities 53,309 46,501

Cash flows from investing activities Interest received 186 109Acquisition of property, plant and equipment 14 (361) (906)Acquisition of intangible assets 15 (162) (245)Proceeds on disposal of property, plant and equipment – 15Disposal of discontinued operation (net of cash disposed of) 11 4,888 13,284

Net cash from investing activities 4,551 12,257

Cash flows from financing activities Dividends paid 13 (16,777) (12,957)Subsidiary dividends paid to minority shareholders 13 – (300)Purchase of own shares for cancellation 23 (48,288) (29,358)Share related expenses 23 (323) (206)Proceeds on exercise of share options 23 6,148 3,893Repayment of borrowings – (22,500)Debt issue costs – (75)

Net cash used in financing activities (59,240) (61,503)

Net decrease in cash and cash equivalents (1,380) (2,745)Cash and cash equivalents at 1 January 23,148 25,893

Cash and cash equivalents at 31 December 18 21,768 23,148

Consolidated statement of cash flowsfor the year ended 31 December 2011

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Note £000 £000

Cash flows from operating activities (Loss)/profit for the year 23 (5,991) 96,093 Adjustments for: Financial income – (99,904)Financial expenses 499 759Share-based payments charge 24 1,479 1,043Income tax credit (1,880) (1,444)

Operating cash flow before changes in working capital (5,893) (3,453) Increase in trade and other payables 71,281 63,112

Cash generated from operating activities 65,388 59,659Interest paid – (69)

Net cash from operating activities 65,388 59,590

Cash flows from investing activities Interest received – 7

Net cash from investing activities – 7

Cash flows from financing activities Dividends paid 13 (16,777) (12,957)Purchase of own shares for cancellation 23 (48,288) (29,358)Share related expenses 23 (323) (206)Repayment of borrowings – (22,500)

Net cash used in financing activities (65,388) (65,021)

Net decrease in cash and cash equivalents – (5,424)Cash and cash equivalents at 1 January – 5,424

Cash and cash equivalents at 31 December 18 – –

Company statement of cash flowsfor the year ended 31 December 2011



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EBT Reverse Share shares Treasury Other acquisition Retained Total capital reserve shares reserves reserve earnings equity Note £000 £000 £000 £000 £000 £000 £000

At 1 January 2010 1,189 (16,185) (11,917) 105 138 29,863 3,193 Total comprehensive income Profit for the year – – – – – 58,002 58,002 Transactions with owners recorded directly in equity Share-based payments 24 – – – – – 1,846 1,846Tax credit in respect of share-based incentives recognised directly in equity 21 – – – – – 3,451 3,451Dividends to shareholders 13 – – – – – (12,957) (12,957)Exercise of share options 23 – 2,248 – – – 1,645 3,893Cancellation of own shares 23 (42) – – 42 – (29,358) (29,358)Share related expenses 23 – – – – – (206) (206)

At 31 December 2010 1,147 (13,937) (11,917) 147 138 52,286 27,864

At 1 January 2011 1,147 (13,937) (11,917) 147 138 52,286 27,864

Total comprehensive incomeProfit for the year – – – – – 46,505 46,505

Transactions with owners recorded directly in equity Share-based payments 24 – – – – – 2,269 2,269Tax credit in respect of share-based incentives recognised directly in equity 21 – – – – – 7,271 7,271Dividends to shareholders 13 – – – – – (16,777) (16,777)Exercise of share options 23 – 3,679 – – – 2,469 6,148Cancellation of own shares 23 (43) – – 43 – (48,288) (48,288)Share related expenses 23 – – – – – (338) (338)

At 31 December 2011 1,104 (10,258) (11,917) 190 138 45,397 24,654

Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2011

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Reverse Share Treasury Other acquisition Retained Total capital shares reserves reserve earnings equity Note £000 £000 £000 £000 £000 £000

At 1 January 2010 1,189 (11,917) 1,596 103,520 366,000 460,388 Total comprehensive income Profit for the year – – – – 96,093 96,093 Transactions with owners recorded directly in equity Share-based payments 24 – – – – 1,043 1,043Tax credit in respect of share-based incentives recognised directly in equity 21 – – – – 2,988 2,988Capital contribution 23 – – 803 – – 803Dividends to shareholders 13 – – – – (12,957) (12,957)Cancellation of own shares 23 (42) – 42 – (29,358) (29,358)Share related expenses 23 – – – – (206) (206)

At 31 December 2010 1,147 (11,917) 2,441 103,520 423,603 518,794

At 1 January 2011 1,147 (11,917) 2,441 103,520 423,603 518,794 Total comprehensive incomeLoss for the year – – – – (5,991) (5,991) Transactions with owners recorded directly in equity Share-based payments 24 – – – – 1,479 1,479Tax credit in respect of share-based incentives recognised directly in equity 21 – – – – 5,483 5,483Capital contribution 23 – – 790 – – 790Dividends to shareholders 13 – – – – (16,777) (16,777)Cancellation of own shares 23 (43) – 43 – (48,288) (48,288)Share related expenses 23 – – – – (338) (338)

At 31 December 2011 1,104 (11,917) 3,274 103,520 359,171 455,152

Company statement of changes in shareholders’ equityfor the year ended 31 December 2011



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1 General information

Rightmove plc (the Company) is a company registered in England (Company no. 6426485) domiciled in the United Kingdom (UK). The consolidated financial statements of the Company as at and for the year ended 31 December 2011 comprise the Company and its interest in its subsidiaries (together referred to as the Group). Its principal business is the operation of the Rightmove.co.uk website, which is the UK’s largest property website.

The consolidated financial statements of the Group as at and for the year ended 31 December 2011 are available upon request to the Company Secretary from the Company’s registered office at 4th Floor, 33 Soho Square, London, W1D 3QU or are available on the investor relations website at www.rightmove.co.uk/investors.

Statement of complianceThe Group and Company financial statements have been prepared and approved by the Board of directors in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union (Adopted IFRSs) and issued by the International Accounting Standards Board (IASB).

The consolidated financial statements were authorised for issue by the Board of directors on 24 February 2012.

Basis of preparationOn publishing the Company financial statements here together with the Group financial statements, the Company is taking advantage of the exemption in s408 of the Companies Act 2006 not to present its individual statement of comprehensive income and related notes that form a part of these approved financial statements.

On 21 June 2010 the Group disposed of its 66.7% shareholding in Holiday Lettings (Holdings) Limited (HLHL), which owned 100% of the shares in the trading entity Holiday Lettings Limited (HLL), (together referred to as the Holiday Lettings segment) to TripAdvisor Limited. The Holiday Lettings segment has been treated as a discontinued operation in both years.

The accounting policies set out below have been consistently applied to both periods presented, unless otherwise stated.

The financial statements have been prepared on an historical cost basis.

Changes in accounting policiesThe accounting policies applied by the Group in these consolidated financial statements are in accordance with Adopted IFRSs and are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2011.

There are no new standards or amendments to standards that are mandatory for the first time for the financial year beginning 1 January 2011 that have an impact on the Group or Company financial statements.

Going concernThroughout 2011, the Group was debt free, has continued to generate significant cash and has net cash balances of £21,768,000 at 31 December 2011 (2010: £23,148,000).

The Group entered into an agreement with Barclays Bank Plc for a £10,000,000 uncommitted money market loan on 15 February 2010. The loan was extended on 11 February 2011 for a 12 month period and again on 8 February 2012 for a further 12 month period. To date no amount has been drawn under this facility in any year.

After making enquiries, the Board of directors has a reasonable expectation that the Group and the Company have adequate resources and banking facilities to continue in operational existence for the foreseeable future. Accordingly, the Board of directors continues to adopt the going concern basis in preparing the annual report and financial statements.

Further information regarding the Group’s business activities, together with the factors likely to affect its future development, performance and position are set out in the Business and Financial Review on pages 4 to 15. The financial position of the Group, its cash flows, liquidity position and borrowing facilities are described in the Financial Position on pages 11 to 15. In addition Note 4 to the financial statements includes the Group’s objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments and its exposures to credit risk and liquidity risk.

notes forming part of the financial statements

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1 General information continued

Capital structureThe Company was incorporated and registered in England and Wales on 14 November 2007 under the Companies Act 1985 as a private company limited by shares with the name Rightmove Group Limited, registered no. 6426485. The Company was re-registered as a public limited company under the name Rightmove Group plc on 29 November 2007. On 28 January 2008 the Company became the holding company of Rightmove Group Limited (formerly Rightmove plc, Company no. 3997679) and its subsidiaries pursuant to a Scheme of Arrangement under s425 of the Companies Act 1985. The shares in the Company were admitted to trading on the Official List of the London Stock Exchange on 28 January 2008 and the Company immediately changed its name to Rightmove plc. Details of the share capital of the Company are disclosed in Note 22.

Basis of consolidationSubsidiaries are entities controlled by the Group. Control exists when the Group has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that are currently exercisable or convertible are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

Judgments and estimatesThe preparation of the consolidated financial statements in conformity with Adopted IFRSs requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods, if applicable.

In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the consolidated financial statements is included in the following notes:

Note 21 Deferred tax assets relating to the rate at which the asset will reverse and the recoverability of the assetNote 24 Measurement of share-based payments relating to the inputs to the fair value models and the estimate of the number of shares

that will eventually be issued

2 Significant accounting policies

(a) Investments Investments in subsidiaries are held at cost less any provision for impairment in the Parent Company financial statements.

(b) Intangible assets

(i) Goodwill All business combinations are accounted for by applying the purchase method. Goodwill that arises upon the acquisition of subsidiaries

is included in intangible assets. In respect of business acquisitions that have occurred since 1 January 2004, goodwill represents the difference between the cost of the acquisition and the fair value of the net identifiable assets acquired.

In respect of acquisitions prior to this date goodwill is included on the basis of its deemed cost, which represents the amount previously recorded under UK Generally Accepted Accounting Principles (GAAP). The classification and accounting treatment of business combinations that occurred prior to 1 January 2004 were not reconsidered in preparing the Group’s opening IFRS statement of financial position at 1 January 2004.

Goodwill is stated at cost less any accumulated impairment losses. Goodwill is tested annually for impairment. This applies to all goodwill arising both before and after 1 January 2004.



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2 Significant accounting policies continued

(ii) Research and development The Group undertakes research and development expenditure in view of developing new products and improving the existing property

websites. Expenditure on research activities, undertaken with the prospect of gaining new technical knowledge and understanding, is recognised in the income statement as incurred.

Expenditure on development activities, whereby research findings are applied to a plan or design for the production of a new product or substantially enhanced website, is capitalised if the new product or the enhanced website is technically and commercially feasible and the Group has sufficient resources to complete development.

The expenditure capitalised includes subcontractors and direct labour. Capitalised development expenditure is stated at cost less accumulated amortisation and accumulated impairment losses. Subsequent expenditure on capitalised intangible assets is capitalised only when it increases the economic benefits embodied in the specific asset to which it relates. All other expenditure is expensed when incurred.

(iii) Computer software and licenses Computer software and externally acquired software licenses are capitalised and stated at cost less accumulated amortisation and

impairment losses. Amortisation is charged from the date the asset is available for use. Amortisation is provided to write off the cost less the estimated residual value of the computer software or license by equal annual instalments over its estimated useful economic life as follows:

Computer software 16.7% – 33.3% per annum Software licences 20.0% – 33.3% per annum

(iv) Customer relationships Customer relationships are identified on the acquisition of a business and valued using discounted cash flows based on historical

customer attrition rates. Amortisation is expensed in the income statement on a straight-line basis over the estimated useful economic life as follows:

Customer relationships 16.7% per annum

(c) Property, plant and equipmentProperty, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Depreciation is provided to write off the cost less the estimated residual value of property, plant and equipment by equal annual instalments over their estimated useful economic lives as follows:

Office equipment, fixtures & fittings 20.0% per annumComputer equipment 20.0% – 33.3% per annumLeasehold improvements life of the lease

(d) ImpairmentThe carrying value of property, plant and equipment is reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount of non-financial assets is the greater of their fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash flows, the recoverable amount is determined for the cash generating unit to which the asset belongs.

Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation but are tested for impairment annually and whenever there is an indication that they might be impaired. An impairment loss is recognised for the amount by which the carrying value of the asset exceeds its recoverable amount.

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Investments are assessed for possible impairment when there is an indication that the fair value of the investments may be below the Company’s carrying value. When such a condition is deemed to be other than temporary, the carrying value of the investment is written down to its fair value and the amount written off is included in profit or loss. In making the determination as to whether a decline is other than temporary, the Company considers such factors as the duration and extent of the decline, the investee’s financial performance and the Company’s ability and intention to retain its investment for a period that will be sufficient to allow for any anticipated recovery in the investment’s market value.

(e) Financial instrumentsTrade receivables are recognised at fair value less any impairment loss. A provision for impairment of trade receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables.

Inter-group balances and transactions, and any unrealised income and expenses arising from inter-group transactions, are eliminated in preparing the consolidated financial statements.

Trade payables are recognised at fair value. Trade payables are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

All loans and borrowings are initially recognised at cost, being the fair value of the consideration received net of issue costs associated with borrowings. After initial recognition, loans and borrowings are subsequently measured at amortised cost and any difference between the proceeds and the redemption value is recognised in profit or loss over the term of the borrowings using the effective interest method.

(f) Cash and cash equivalentsCash and cash equivalents comprise cash balances and call deposits with original maturities of three months or less. Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.

(g) Employee benefits

(i) Pensions The Group provides access to a stakeholder pension scheme (a defined contribution pension plan) into which employees may elect to

contribute via salary deduction. Obligations for contributions to defined contribution pension plans are recognised as an employee benefit expense in profit or loss when they are due.

(ii) Employee share schemes The Group provides share-based incentive plans allowing certain senior management to acquire shares in the Company. An expense is

recognised in profit or loss, with a corresponding increase in equity, over the period to which the employees become unconditionally entitled, on equity settled share-based incentive schemes granted after 7 November 2002 and which had not vested by 1 January 2005.

Fair value is measured using either the Monte Carlo or Black Scholes pricing model as is most appropriate for each scheme. Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility adjusted for changes expected due to publicly available information), weighted average expected life of the instruments (based on historical experience and general option behaviour), expected dividends, and risk-free interest rates (based on government bonds). Service and non-market performance conditions attached to the awards are not taken into account in determining the fair value.

For share-based incentive awards with non-vesting conditions, the grant date fair value of the share-based incentives is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes. When either the employee or the Company chooses not to meet the non-vesting condition the failure to meet the non-vesting condition is treated as a cancellation and the cost that would have been recognised over the remainder of the vesting period is recognised immediately in profit or loss.

(iii) Own shares held by The Rightmove Employees’ Share Trust (EBT) The EBT is treated as an agent of Rightmove Group Limited and as such EBT transactions are treated as being those of

Rightmove Group Limited and are therefore reflected in the Group’s consolidated financial statements. In particular, at a consolidated level, the EBT’s purchases of shares in the Company are debited directly to equity.



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(h) Treasury shares and shares purchased for cancellationWhen share capital recognised as equity is repurchased, the amount of the consideration paid, including directly attributable costs, is recognised as a deduction from equity. Repurchased shares are either held in treasury or cancelled.

(i) RevenueRevenue principally represents the amounts, excluding value added tax (VAT), receivable from customers in respect of properties advertised on Group websites. All revenue is recognised in the month to which it relates. Estate agency and overseas branches are billed in advance with net revenue deferred until the service commencement date. The VAT liability is recognised at the point of invoice. New homes developers are typically billed monthly in arrears. Where invoices are raised on other than a monthly basis, the amounts are recognised as deferred or accrued revenue and released to the income statement on a monthly basis in line with the provision of services as stipulated in the contract terms.

(j) Segmental reportingAn operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. An operating segment’s operating results are reviewed regularly by the Group’s Managing Director to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.

(k) LeasesOperating lease rentals are charged to the income statement on a straight-line basis over the period of the lease. Where cash is received in exchange for entering into a lease with rates above market value, this upfront payment is deferred and released on a straight-line basis over the lease term.

(l) Financial income and expensesFinancial income comprises interest receivable on cash balances, deposits and dividend income. Interest income is recognised as it accrues, using the effective interest method. Dividend income is recognised on the date that the Group’s right to receive payment is established.

Financial expenses comprise debt issue costs, interest payable on bank loans and bank charges. Interest payable is recognised on an accruals basis.

(m) National Insurance (NI) on share-based incentivesEmployer’s NI is accrued, where applicable, at a rate of 13.8%, which management expects to be the prevailing rate when share-based incentives are exercised. In the case of share options it is provided on the difference between the share price at the reporting date and the average exercise price of share options. In the case of performance shares and deferred shares at nil cost, it is provided based on the share price at the reporting date.

(n) TaxationIncome tax on the results for the year comprises current and deferred tax. Income tax is recognised in profit or loss except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the period, net of any charge or credit posted directly to equity, using tax rates enacted or substantially enacted at the reporting date, and any adjustment to tax payable in respect of previous periods.

Deferred tax is provided in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: the initial recognition of goodwill; the initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business combination and the differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantially enacted by the reporting date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised.

In accordance with IAS 12, the Group policy in relation to the recognition of deferred tax on share-based incentives is to include the income tax effect of the tax deduction in profit or loss to the value of the income tax charge on the cumulative IFRS 2 charge. The remainder of the income tax effect of the tax deduction is recognised in equity.

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(o) DividendsDividends unpaid at the reporting date are only recognised as a liability (and deduction to equity) at that date to the extent that they are appropriately authorised and are no longer at the discretion of the Company. Unpaid dividends that do not meet these criteria are disclosed in the notes to the financial statements.

(p) Earnings per shareThe Group presents basic, diluted and underlying earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the year, adjusted for own shares held. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all potential dilutive instruments, which comprise share-based incentives granted to employees. The calculation of underlying EPS is disclosed in Note 12.

(q) Discontinued operationsA discontinued operation is a component of the Group’s business that represents a separate major line of business or geographical area of operations that has been disposed of or is held for sale or distribution, or is a subsidiary acquired exclusively with a view to resale. Classification as a discontinued operation occurs upon disposal or when the operation meets the criteria to be classified as held for sale, if earlier. When an operation is classified as a discontinued operation, the comparative statement of comprehensive income is restated as if the operation had been discontinued from the start of the comparative year.

3 IFRSs not yet applied

A number of new standards, amendments to standards and interpretations are not yet effective for the year ended 31 December 2011 and have not been applied in preparing these consolidated financial statements. None of these are expected to have a significant effect on the consolidated financial statements of the Group.

4 Financial risk management

OverviewThe Group has exposure to the following risks from its use of financial instruments:• creditrisk• liquidityrisk• marketrisk• operationalrisk

This note presents information about the Group and Company’s exposure to each of the above risks, the Group’s objectives, policies and processes for measuring and managing risk and the Group’s management of capital. Further quantitative disclosures are included throughout these consolidated financial statements.

The Board of directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. The primary method by which risks are monitored and managed by the Group is through the monthly Executive Management Board, where any significant new risks or change in status to existing risks will be discussed and actions taken as appropriate.

The Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Audit Committee oversees how management monitors compliance with the Group’s internal controls and reviews the adequacy of the risk management framework in relation to the risks faced by the Group.



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4 Financial risk management continued

Credit riskCredit risk is the risk of financial loss to the Group if a customer fails to meet its contractual obligations.

The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Group provides credit to customers in the normal course of business. The Group provides its services to a wide range of customers in the UK and overseas and therefore believes it has no material concentration of credit risk.

More than 94.0% of the Group’s customers pay via monthly direct debit, minimising the risk of non-payment. The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables based on individually identified loss exposures.

Liquidity riskLiquidity risk is the risk that the Group will encounter difficulties in meeting the obligations associated with its financial liabilities that are settled by delivering cash. The Group and Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.

The Group’s revenue model is largely subscription-based which results in a regular level of cash conversion allowing it to service working capital requirements.

The Group and Company ensure that they have sufficient cash on demand to meet expected operational expenses excluding the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters. Throughout the year, the Group typically had sufficient cash on demand to meet operational expenses on continuing operations, before financing activities, for a period of 342 days (2010: 296 days).

As at 31 December 2011 the Group had bank borrowings of £nil (2010: £nil). The Group entered into an agreement with Barclays Bank Plc for a £10,000,000 uncommitted money market loan on 15 February 2010. The loan was extended on 11 February 2011 for a 12 month period and again on 8 February 2012 for a further 12 month period. To date no amount has been drawn under this facility in any year.

Market riskMarket risk is the risk that changes in market prices such as foreign exchange and interest rates will affect the Group’s income. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk.

(i) Currency risk All of the Group’s sales and more than 95.0% of the Group’s purchases are Sterling denominated, accordingly it has no significant

currency risk.

(ii) Interest rate risk The Group and Company have no interest bearing financial liabilities. The Group is exposed to interest rate risk on cash balances and

amounts held in Escrow.

Operational riskOperational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the Group’s processes, personnel, technology and infrastructure, and from external factors other than credit, market and liquidity risks such as those arising from legal and regulatory requirements and generally accepted standards of corporate behaviour. Operational risks arise from all of the Group’s operations.

The Group’s objective is to manage operational risk so as to balance the avoidance of financial losses and damage to the Group’s reputation with overall cost effectiveness and to avoid control procedures that restrict initiative and creativity.

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4 Financial risk management continued

The primary responsibility for the development and implementation of controls to address operational risk is assigned to senior management within each business unit. This responsibility is supported by the development of overall Group standards for the management of operational risk in the following areas: • requirementsforappropriatesegregationofduties,includingtheindependentauthorisationoftransactions;• requirementsforthereconciliationandmonitoringoftransactions;• compliancewithregulatoryandotherlegalrequirements;• documentationofcontrolsandprocedures;• requirementsfortheperiodicassessmentofoperationalrisksfaced,andtheadequacyofcontrolsandprocedurestoaddressthe

risks identified;• requirementsforreportingofoperationallossesandproposedremedialaction;• developmentandregulartestingofcontingencyplans;• trainingandprofessionaldevelopment;and• riskmitigation,includinginsurancewherethisiseffective.

Capital managementThe Board of directors’ policy is to maintain an efficient statement of financial position with an appropriate level of leverage for the size of the business so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Board of directors considers that the future working capital and capital expenditure requirements of the Group will continue to be low and accordingly return on capital measures are not key performance targets. The Board of directors monitors the spread of the Company’s shareholders as well as underlying earnings per share. The Board of directors has a progressive dividend policy and also monitors the level of dividends to ordinary shareholders in relation to profit growth. The Board’s policy is to return surplus capital to shareholders through a combination of dividends and share buy backs.

The Company purchases its own shares in the market; the timing of these purchases depends on market conditions. In 2011, 4,350,798 (2010: 4,161,977) shares were bought back and were cancelled.

There were no changes in the Group’s approach to capital management during the year. Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.

5 Operating segments

The Group determines and presents operating segments based on internal information that is provided to the Managing Director, who is the Group’s Chief Operating Decision Maker.

The Group’s reportable segments are as follows:• TheAgency segment which provides resale and lettings property advertising services on www.rightmove.co.uk; and• TheNew Homes segment which provides property advertising services to new home developers and Housing Associations on

www.rightmove.co.uk.

The Other segment which represents activities under the reportable segments threshold, comprises overseas property advertising services on www.rightmove.co.uk and non-property advertising services which include business and information services and Automated Valuation Model services.

Management monitors the business segments at a revenue and trade receivables level separately for the purpose of making decisions about resources to be allocated and of assessing performance. All revenues in both years are derived from third parties and there are no inter-segment revenues.



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5 Operating segments continued

Operating costs, financial income, financial expenses and income taxes in relation to the Agency, New Homes and the Other segment are managed on a centralised basis at a Rightmove Group Limited level and as there are no internal measures of individual segment profitability, relevant disclosures have been shown under the heading of Central in the table below.

Profit or loss segmental disclosures have been made on a continuing operations basis. Disclosures in respect of the discontinued Holiday Lettings segment are shown in Note 11.

The Company has no reportable segments.

New Sub

Agency Homes total Other Central Adjustments Total

Operating segments £000 £000 £000 £000 £000 £000 £000

Year ended 31 December 2011 Revenue 77,388 16,869 94,257 2,760 – – 97,017Operating profit(1) – – – – 69,362 (6,695)(2) 62,667Depreciation and amortisation – – – – (940) – (940)Financial income – – – – 182 – 182Financial expenses – – – – (121) – (121)Trade receivables(3) 9,907 2,677 12,584 498 – 50(4) 13,132Other segment assets – – – – 38,405 12(5) 38,417Segment liabilities – – – – (26,833) (62)(4)(5) (26,895)Capital expenditure(6) – – – – 523 – 523

Year ended 31 December 2010Revenue 63,795 15,078 78,873 2,683 – – 81,556Operating profit(1) – – – – 56,563 (4,497)(7) 52,066Depreciation and amortisation – – – – (845) – (845)Financial income – – – – 171 – 171Financial credit – – – – 8 – 8Trade receivables(3) 7,878 2,156 10,034 115 – 40(4) 10,189Other segment assets – – – – 40,539 15(5) 40,554Segment liabilities – – – – (22,824) (55)(4)(5) (22,879)Capital expenditure(6) – – – – 1,119 32(8) 1,151

(1) Operating profit is stated after the charge for depreciation and amortisation.(2) Operating profit for the year ended 31 December 2011 does not include share-based payments charge (£2,269,000) and NI on

share-based incentives (£4,426,000).(3) The only segment assets that are separately monitored by the Chief Operating Decision Maker relate to trade receivables net of any

associated provision for impairment. All other segment assets are reported on a centralised basis.(4) The adjustments column reflects the reclassification of credit balances in accounts receivable made on consolidation for statutory

accounts purposes.(5) The adjustments column reflects the reclassification of debit balances in accounts payable made on consolidation for statutory

accounts purposes.(6) Capital expenditure consists of additions of property, plant and equipment and intangible assets (excluding goodwill).(7) Operating profit for the year ended 31 December 2010 does not include share-based payments charge (£1,846,000) and NI on

share-based incentives (£2,651,000).(8) The adjustments column reflects capital expenditure of £32,000 in relation to the discontinued Holiday Lettings segment.

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5 Operating segments continued

Geographic informationIn presenting information on the basis of geography, revenue and assets are based on the geographical location of customers.

Year ended 31 December 2011 Year ended 31 December 2010

Revenue Trade receivables Revenue Trade receivables

Group £000 £000 £000 £000

UK 96,135 13,086 80,758 10,152Rest of the world 882 46 798 37

97,017 13,132 81,556 10,189

6 Operating profit



£000 £000

Operating profit is stated after charging: Depreciation of property, plant and equipment 661 575Amortisation of computer software 279 294Amortisation of customer relationships – 42Bad debt impairment charge 315 567Operating lease rentals Land and buildings 746 807 Other 332 337

Included within depreciation of property, plant and equipment is an amount of £nil (2010: £24,000) relating to the discontinued Holiday Lettings segment.

Amortisation of customer relationships relates to the discontinued Holiday Lettings segment.

Included within operating lease rentals for the year are amounts relating to the discontinued Holiday Lettings segment of £nil (2010: £61,000) for land and buildings and £nil (2010: £nil) for other operating lease rentals.

Auditor’s remuneration Year ended Year ended


£000 £000

Fees payable to the Company’s auditor and their associates in respect of the audit Audit of the Company’s financial statements 14 14Audit of the Company’s subsidiaries pursuant to legislation 99 102

Total audit remuneration 113 116

Fees payable to the Company’s auditor in respect of non-audit related services Tax advisory 11 4All other services 4 7

Total non-audit remuneration 15 11

Included in the non-audit related services is a credit of £nil (2010: £5,000) relating to the release of an accrual.



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7 Employee numbers and costs

The average number of persons employed (including executive directors) during the year, analysed by category, was as follows:



Number of Number of

employees employees

Administration 277 299Management 16 13

293 312

The aggregate payroll costs of these persons were as follows:



£000 £000

Wages and salaries 13,647 13,246Social security costs 1,640 1,532Pension costs 275 251

15,562 15,029

Included within employee numbers are no (2010: 40) full-time equivalent heads employed by the discontinued Holiday Lettings segment. The payroll costs include amounts of £nil (2010: £1,047,000) for these employees.

8 Financial income



£000 £000

Interest income on cash balances 182 171

9 Financial expenses/(credit)



£000 £000

Debt issue costs/(credit) – (125)Interest expense – 52Other financial expenses 121 65

Financial expenses/(credit) 121 (8)

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10 Income tax expense



£000 £000

Current tax expense Current year 16,748 14,534Adjustment to current tax charge in respect of prior years (34) (11)

16,714 14,523

Deferred tax creditOrigination and reversal of temporary differences (70) (528)Adjustment to deferred tax charge in respect of prior years 7 10Reduction in tax rate 23 9

(40) (509)

Total income tax expense 16,674 14,014

Income tax expense from continuing operations 16,674 13,710Income tax expense from discontinued operation (refer Note 11) – 304

16,674 14,014

Income tax credit recognised directly in equity Year ended Year ended


£000 £000

Current tax Share-based incentives (3,302) –

Deferred tax Share-based incentives (3,969) (3,451)

Total income tax credit recognised directly in equity (7,271) (3,451)



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10 Income tax expense continued

Reconciliation of effective tax rateThe Group’s income tax expense for the year is lower (2010: lower) than the standard rate of corporation tax in the UK of 26.5% (2010: 28.0%). The differences are explained below: Year ended Year ended


£000 £000

Profit for the year 46,505 58,002Total income tax expense 16,674 14,014

Profit excluding income tax 63,179 72,016

Current tax at 26.5% (2010: 28.0%) 16,742 20,164Exempt income on sale of discontinued operation (120) (5,232)Share-based incentives 10 (978)Adjustment to current tax charge in respect of prior years (34) (11)Non-deductible expenses 46 52Reduction in tax rate 23 9Adjustment to deferred tax charge in respect of prior years 7 10

16,674 14,014

The Group’s consolidated effective tax rate on the profit of £62,728,000 from continuing operations for the year ended 31 December 2011 is 26.6% (2010: 26.2%). The difference between the standard rate and effective rate on continuing operations at 31 December 2011 is attributable to disallowable expenditure (0.1%).

11 Discontinued operation

On 21 June 2010 the Group sold its 66.7% shareholding in HLHL, which owned 100% of the shares in the trading entity HLL, to TripAdvisor Limited, a wholly owned subsidiary of Expedia Inc.



£000 £000

Results of discontinued operation Revenue – 3,059Administrative expenses – (1,979)

Results from operating activities – 1,080Income tax (refer Note 10) – (304)

Results from operating activities (net of income tax) – 776Gain on sale of discontinued operation 451 18,691

Effect on profit for the year 451 19,467

Earnings per share (pence) Basic 0.43 18.02Diluted 0.42 17.48

Included in 2010 administrative expenses were depreciation and amortisation charges of £66,000.

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11 Discontinued operation continued



£000 £000

Cash flows from discontinued operation Net cash from operating activities – 1,856Net cash from investing activities 4,888 13,661Net cash used in financing activities – (300)

Net cash from discontinued operation 4,888 15,217

Year ended

31 December 2010

£000

Effect of the disposal on the financial position of the GroupProperty, plant and equipment (refer Note 14) (145)Intangible assets (refer Note 15) (13,059)Trade and other receivables (352)Cash and cash equivalents (1,484)Trade and other payables 3,238Income tax payable 638Deferred consideration 8,909Provisions 10Deferred tax liabilities (refer Note 21) 64

Net assets disposed of (2,181)

Consideration received, satisfied in cash 15,185Contingent consideration 5,104Amounts held in Escrow 1,000Less costs to sell (417)

Net consideration 20,872

Consideration received, satisfied in cash 15,185Cash and cash equivalents disposed of (1,484)Less costs to sell (417)

Net cash inflow 13,284

The contingent consideration was dependent on the performance of the discontinued Holiday Lettings segment for the 12 month period from 1 April 2010 to 31 March 2011. The value of the contingent consideration was revised upwards by £451,000 from £5,104,000 as reported as at 31 December 2010 to a final agreed amount of £5,555,000. £4,888,000 contingent consideration was received in October 2011 with £667,000 being transferred into an Escrow account in addition to the £1,000,000 of completion proceeds already held in Escrow and classified as non-current (refer Note 17).

Under the terms of the sale agreement the amounts held in Escrow earn interest at Barclays Bank Plc’s current interest rate and become available on the fourth anniversary of the completion date of the transaction. No discount has been applied as the account is interest bearing.



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12 Earnings per share (EPS)

Weighted average Continuing Discontinued Total

number of operations operation earnings Pence

ordinary shares £000 £000 £000 per share

Year ended 31 December 2011Basic EPS 104,809,475 46,054 451 46,505 44.37Diluted EPS 108,891,146 46,054 451 46,505 42.71Underlying basic EPS 104,809,475 52,749 451 53,200 50.76Underlying diluted EPS 108,891,146 52,749 451 53,200 48.86

Year ended 31 December 2010Basic EPS 108,021,339 38,535 19,467 58,002 53.69Diluted EPS 111,361,386 38,535 19,467 58,002 52.08Underlying basic EPS 108,021,339 43,032 19,467 62,499 57.86Underlying diluted EPS 111,361,386 43,032 19,467 62,499 56.12

Weighted average number of ordinary shares (basic) Year ended Year ended


Number of shares Number of shares

Issued ordinary shares at 1 January less ordinary shares held by the EBT 108,439,105 111,504,537Effect of own shares held in treasury (2,505,430) (2,505,430)Effect of own shares purchased for cancellation (1,904,709) (1,560,101)Effect of share options exercised 780,509 582,333

104,809,475 108,021,339

Weighted average number of ordinary shares (diluted)For diluted EPS, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all potentially dilutive shares. The Group’s potential dilutive instruments are in respect of share-based incentives granted to employees, which will be settled by ordinary shares held by the EBT and shares held in treasury. Year ended Year ended



Weighted average number of ordinary shares (basic) 104,809,475 108,021,339Dilutive impact of own shares held by the EBT and shares held in treasury 4,081,671 3,340,047

108,891,146 111,361,386

Underlying EPSUnderlying EPS is calculated before the charge for share-based payments and NI on share-based incentives but without any adjustment to the tax charge in respect of these items. A reconciliation of the basic earnings for the year to the underlying earnings is presented below:



£000 £000

Basic earnings for the year 46,505 58,002Share-based payments 2,269 1,846NI on share-based incentives 4,426 2,651

Underlying earnings for the year 53,200 62,499

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13 Dividends

Dividends declared and paid by the Company were as follows: 2011 2010

Pence per share £000 Pence per share £000

2009 final dividend paid – – 7.0 7,5862010 interim dividend paid – – 5.0 5,3712010 final dividend paid 9.0 9,499 – –2011 interim dividend paid 7.0 7,278 – –

16.0 16,777 12.0 12,957

After the reporting date a final dividend of 11.0p (2010: 9.0p) per qualifying ordinary share being £11,328,000 (2010: £9,534,000) was proposed by the Board of directors.

The 2010 final dividend paid on 10 June 2011 was £9,499,000 being a difference of £35,000 compared to that reported in the 2010 Annual Report, which was due to a reduction in the ordinary shares entitled to a dividend between 31 December 2010 and the final dividend record date of 13 May 2011.

The 2011 interim dividend paid on 11 November 2011 was £7,278,000 being a difference of £28,000 compared to that reported in the 2011 Half Year Report, which was due to a reduction in the ordinary shares entitled to a dividend between 30 June 2011 and the interim dividend record date of 14 October 2011.

The terms of the EBT provide that dividends payable on the ordinary shares held by the EBT are waived. No provision was made for the final dividend in either year and there are no income tax consequences.

Subsidiary dividendsDividends of £300,000 were paid in 2010 by HLHL to minority shareholders. As no minority interest was recognised in the consolidated statement of financial position and the Group consolidated 100% of HLHL’s results prior to its disposal, the dividends paid in 2010 were treated as an addition to goodwill (refer Note 15).

14 Property, plant and equipment

Office equipment, Computer Leasehold

fixtures & fittings equipment improvements Total

Group £000 £000 £000 £000

Cost At 1 January 2011 734 2,668 102 3,504Additions 9 352 – 361Disposals (45) (534) – (579)

At 31 December 2011 698 2,486 102 3,286

Depreciation At 1 January 2011 (462) (1,538) (16) (2,016)Charge for year (82) (518) (61) (661)Disposals 40 471 – 511

At 31 December 2011 (504) (1,585) (77) (2,166)

Net book value At 31 December 2011 194 901 25 1,120

At 1 January 2011 272 1,130 86 1,488



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14 Property, plant and equipment continued

Office equipment, Computer Leasehold

fixtures & fittings equipment improvements Total

Group £000 £000 £000 £000

Cost At 1 January 2010 784 2,710 47 3,541Additions 56 748 102 906Disposals (69) (649) – (718)Disposal of discontinued operation (refer Note 11) (37) (141) (47) (225)

At 31 December 2010 734 2,668 102 3,504

Depreciation At 1 January 2010 (441) (1,696) (11) (2,148)Charge for year (103) (451) (21) (575)Disposals 66 561 – 627Disposal of discontinued operation (refer Note 11) 16 48 16 80

At 31 December 2010 (462) (1,538) (16) (2,016)

Net book value At 31 December 2010 272 1,130 86 1,488

At 1 January 2010 343 1,014 36 1,393

The Company has no property, plant or equipment in either year.

15 Intangible assets

Computer Customer

Goodwill software relationships Total

Group £000 £000 £000 £000

Cost At 1 January 2011 732 3,252 – 3,984Additions – 162 – 162Disposals – (321) – (321)

At 31 December 2011 732 3,093 – 3,825

Amortisation At 1 January 2011 – (2,521) – (2,521)Charge for year – (279) – (279)Disposals – 295 – 295

At 31 December 2011 – (2,505) – (2,505)

Net book value At 31 December 2011 732 588 – 1,320

At 1 January 2011 732 731 – 1,463

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15 Intangible assets continued

Computer Customer

Goodwill software relationships Total

Group £000 £000 £000 £000

Cost At 1 January 2010 13,250 3,012 514 16,776Additions 300 245 – 545Disposals – (5) – (5)Disposal of discontinued operation (refer Note 11) (12,818) – (514) (13,332)

At 31 December 2010 732 3,252 – 3,984

Amortisation At 1 January 2010 – (2,231) (231) (2,462)Charge for year – (294) (42) (336)Disposals – 4 – 4Disposal of discontinued operation (refer Note 11) – – 273 273

At 31 December 2010 – (2,521) – (2,521)

Net book value At 31 December 2010 732 731 – 1,463

At 1 January 2010 13,250 781 283 14,314

The Company has no intangible assets in either year.

Impairment testing for cash generating units containing goodwillFor the purpose of impairment testing, goodwill is allocated to the Group’s operations which represent the lowest level within the Group at which goodwill is monitored for internal management purposes, which is not higher than the Group’s operating segments as reported in Note 5.

The aggregate carrying amounts of goodwill allocated to each unit are as follows: 31 December 2011 31 December 2010

£000 £000

Agency 732 732

The carrying value of the £732,000 purchased goodwill in Agency, arising pre-transition to IFRS, is reviewed annually for impairment. Due to its level of significance the disclosures as required by IAS 36 Impairment of Assets have not been made.



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business review

16 Investments

The subsidiaries of the Group as at 31 December 2011 are as follows: Country of

Company Nature of business incorporation Holding Class of shares

Rightmove Group Limited Online advertising England and Wales 100% OrdinaryRightmove.co.uk Limited Dormant England and Wales 100% OrdinaryRightmove Home Information Packs Limited Dormant England and Wales 100% Ordinary

All the above subsidiaries are included in the Group consolidated financial statements.

The Group disposed of its holdings in HLHL and HLL during the prior year (refer Note 11).

Company


Investment in subsidiary undertakings £000 £000

At 1 January 539,304 538,501Additions – subsidiary share-based payments charge (refer Note 24) 790 803

At 31 December 540,094 539,304

Following the capital reconstruction in 2008 all employees’ share-based incentives were transferred to the new holding company, Rightmove plc. In addition certain directors’ contracts of employment were transferred from Rightmove Group Limited to Rightmove plc, whilst all other employees remained employed by Rightmove Group Limited. Accordingly the share-based payments charge has been split between the Company and Rightmove Group Limited with £790,000 (2010: £803,000) being recognised in the Company accounts as a capital contribution to its subsidiary.

17 Trade and other receivables


Group £000 £000

Trade receivables 13,561 10,444Less provision for impairment of trade receivables (429) (371)

Net trade receivables 13,132 10,073Amounts owed by related parties (refer Note 27) – 116Amounts held in Escrow (refer Note 11) 1,667 1,000Prepayments and accrued income 1,683 1,577Interest receivable 58 62Other debtors 117 37

16,657 12,865

Non-current 1,667 1,000Current 14,990 11,865

16,657 12,865

Exposure to credit and currency risks and impairment losses relating to trade and other receivables are disclosed in Note 28.

The Company has no trade and other receivables in either year.

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18 Cash and cash equivalents

Group Company

31 December 2011 31 December 2010 31 December 2011 31 December 2010

£000 £000 £000 £000

Bank accounts 21,768 23,148 – –

Cash balances were placed on deposit for various lengths between one day and one month during the year and attracted interest at a weighted average rate of 0.6% (2010: 0.7%).

19 Trade and other payables

Group Company

31 December 2011 31 December 2010 31 December 2011 31 December 2010

£000 £000 £000 £000

Trade payables 370 1,033 – –Trade accruals 7,357 4,734 5,940 3,047Other creditors 34 240 – –Other taxation and social security 4,033 3,223 – –Deferred revenue 9,080 6,759 – –Accrued interest on inter-group payable balance – – 499 –Inter-group payables – – 86,876 22,605

20,874 15,989 93,315 25,652

Exposure to currency and liquidity risk relating to trade and other payables is disclosed in Note 28.

20 Loans and borrowings

The Group entered into an agreement with Barclays Bank Plc for a £10,000,000 uncommitted money market loan on 15 February 2010. The loan was extended on 11 February 2011 for a further 12 month period and again on 8 February 2012. To date no amount has been drawn under this facility in any year.

The Company had no borrowings or cash balances in either year.



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business review

21 Deferred tax assets

Deferred tax assets are attributable to the following:

Assets


Group £000 £000

Share-based incentives 10,402 6,427Property, plant and equipment 199 161Provisions 83 87

Tax assets 10,684 6,675

The deferred tax asset of £10,684,000 at 31 December 2011 (2010: £6,675,000) is in respect of share-based incentives, depreciation in excess of capital allowances and provisions.

The deferred tax asset relating to share-based incentives at 31 December 2011 is £10,402,000 (2010: £6,427,000). This increase is due to the Company’s share price increasing from £7.79 at 31 December 2010 to £12.44 at 31 December 2011.

Assets


Company £000 £000

Share-based incentives 8,373 5,142

Tax assets 8,373 5,142

The deferred tax asset of £8,373,000 at 31 December 2011 (2010: £5,142,000) is in respect of share-based incentives. This increase is due to the Company’s share price increasing from £7.79 at 31 December 2010 to £12.44 at 31 December 2011.

Movement in deferred tax during the year: Recognised Recognised

1 January 2011 in income in equity 31 December 2011

Group £000 £000 £000 £000

Share-based incentives 6,427 6 3,969 10,402Property, plant and equipment 161 38 – 199Provisions 87 (4) – 83

6,675 40 3,969 10,684

Recognised Recognised


Company £000 £000 £000 £000

Share-based incentives 5,142 329 2,902 8,373

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21 Deferred tax assets continued

On 23 March 2011 the Chancellor of the Exchequer announced a reduction in the main rate of corporation tax from 28.0% to 26.0% with effect from 1 April 2011, with a further reduction to 25.0% scheduled for 1 April 2012 and proposed changes to further reduce this rate by 1.0% per annum to 23.0% by 1 April 2014. The first 1.0% reduction with effect from 1 April 2012 was substantively enacted for the purposes of IFRS on 5 July 2011. It has not been possible to quantify the full anticipated effect of the announced further 2.0% rate reduction but it is expected to result in a reduction in the Group’s future current tax charge and to reduce the Group’s deferred tax assets accordingly, resulting in a charge to income and a debit directly to equity in accordance with the accounting for share-based incentives.

The anticipated changes to the capital allowance rules from April 2012 are considered unlikely to have a material impact on the effective rate of tax.

Movement in deferred tax during the prior year: Disposal of

Recognised Recognised discontinued

1 January 2010 in income in equity operation 31 December 2010

Group £000 £000 £000 £000 £000

Share-based incentives 2,524 452 3,451 – 6,427Property, plant and equipment 146 8 – 7 161Provisions 48 39 – – 87Intangible assets (67) 10 – 57 –

2,651 509 3,451 64 6,675

The deferred tax asset arising on equity settled share-based incentives in both years was recognised in the income statement to the extent that the related equity settled share-based incentives charge was recognised in the income statement.

Recognised Recognised


Company £000 £000 £000 £000

Share-based incentives 1,896 258 2,988 5,142

22 Share capital Ordinary shares

of £0.01 each



In issue At 1 January 114,761,434 118,923,411Purchase and cancellation of own shares (4,350,798) (4,161,977)

At 31 December 110,410,636 114,761,434

Authorised – par value £0.01 each 300,000,000 300,000,000

During 2011, 4,350,798 (2010: 4,161,977) ordinary shares were bought back by the Company and were subsequently cancelled. Further details are disclosed in Note 23.

All issued shares are fully paid. The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at general meetings of the Company.

Included within shares in issue at 31 December 2011 are 4,527,783 ordinary shares (2010: 6,322,329) held by the EBT and 2,505,430 (2010: 2,505,430) held in treasury.



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23 Reconciliation of movement in capital and reserves

EBT Reverse

Share shares Treasury Other acquisition Retained Total

capital reserve shares reserves reserve earnings equity

Group £000 £000 £000 £000 £000 £000 £000

At 1 January 2010 1,189 (16,185) (11,917) 105 138 29,863 3,193Profit for the year – – – – – 58,002 58,002Share-based payments – – – – – 1,846 1,846Tax credit in respect of share-based incentives recognised directly in equity – – – – – 3,451 3,451Dividends to shareholders – – – – – (12,957) (12,957)Exercise of share options – 2,248 – – – 1,645 3,893Cancellation of own shares (42) – – 42 – (29,358) (29,358)Share related expenses – – – – – (206) (206)

At 31 December 2010 1,147 (13,937) (11,917) 147 138 52,286 27,864

At 1 January 2011 1,147 (13,937) (11,917) 147 138 52,286 27,864Profit for the year – – – – – 46,505 46,505Share-based payments – – – – – 2,269 2,269Tax credit in respect of share-based incentives recognised directly in equity – – – – – 7,271 7,271Dividends to shareholders – – – – – (16,777) (16,777)Exercise of share options – 3,679 – – – 2,469 6,148Cancellation of own shares (43) – – 43 – (48,288) (48,288)Share related expenses – – – – – (338) (338)

At 31 December 2011 1,104 (10,258) (11,917) 190 138 45,397 24,654

Share buy backIn June 2007, the Company commenced a share buy back programme to purchase its own ordinary shares. The total number of shares bought back in 2011 was 4,350,798 (2010: 4,161,977) representing 4.0% (2010: 3.7%) of the ordinary shares in issue (excluding shares held in treasury). All of the shares bought back in both years were cancelled. The shares were acquired on the open market at a total consideration (excluding costs) of £48,288,000 (2010: £29,358,000). The maximum and minimum prices paid were £13.58 (2010: £7.73) and £9.04 (2010: £6.09) per share respectively.

EBT shares reserveThis reserve represents the carrying value of own shares held by the EBT. During the current and prior year the EBT purchased no shares. 1,794,546 (2010: 1,096,545) options were exercised by Group employees during the year at an average price of £3.43 (2010: £3.55) per ordinary share, which were satisfied by shares held in the EBT. At 31 December 2011 the EBT held 4,527,783 (2010: 6,322,329) ordinary shares in the Company of £0.01 each, representing 4.2% (2010: 5.6%) of the ordinary shares in issue (excluding shares held in treasury). The market value of the shares held in the EBT at 31 December 2011 was £56,326,000 (2010: £49,251,000).

Other reservesThis reserve represents the cumulative value of own shares bought back and cancelled. The movement of £43,000 (2010: £42,000) comprises the nominal value of ordinary shares cancelled during the year.

Retained earningsThe gain on the exercise of share-based incentives is the difference between the value that the shares held by the EBT were originally acquired at and the price at which share-based incentives were exercised during the year.

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23 Reconciliation of movement in capital and reserves continued

Reverse

Share Treasury Other acquisition Retained Total

capital shares reserves reserve earnings equity

Company £000 £000 £000 £000 £000 £000

At 1 January 2010 1,189 (11,917) 1,596 103,520 366,000 460,388Profit for the year – – – – 96,093 96,093Dividends to shareholders – – – – (12,957) (12,957)Share-based payments – – – – 1,043 1,043Tax credit in respect of share-based incentives recognised directly in equity – – – – 2,988 2,988Capital contribution – – 803 – – 803Cancellation of own shares (42) – 42 – (29,358) (29,358)Share related expenses – – – – (206) (206)

At 31 December 2010 1,147 (11,917) 2,441 103,520 423,603 518,794

At 1 January 2011 1,147 (11,917) 2,441 103,520 423,603 518,794Loss for the year – – – – (5,991) (5,991)Dividends to shareholders – – – – (16,777) (16,777)Share-based payments – – – – 1,479 1,479Tax credit in respect of share-based incentives recognised directly in equity – – – – 5,483 5,483Capital contribution – – 790 – – 790Cancellation of own shares (43) – 43 – (48,288) (48,288)Share related expenses – – – – (338) (338)

At 31 December 2011 1,104 (11,917) 3,274 103,520 359,171 455,152

Reverse acquisition reserveThis reserve resulted from the acquisition of Rightmove Group Limited by the Company and represents the difference between the value of the shares acquired at 28 January 2008 and the nominal value of the shares issued.

Other reservesAwards relating to share-based incentives in Rightmove Group Limited have been treated as a deemed capital contribution. The principal movement in other reserves for the year comprises £790,000 (2010: £803,000) in respect of the share-based incentives charge for employees of Rightmove Group Limited. In addition a movement of £43,000 (2010: £42,000) has been recorded in relation to the nominal value of ordinary shares cancelled during the year.



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24 Share-based payments

The Group and Company operate share-based incentive schemes for executive directors and other selected senior management employees. Since flotation, the Company has awarded share options under the Rightmove Unapproved Executive Share Option Plan (Unapproved Plan) and the Rightmove Approved Executive Share Option Plan (Approved Plan). The Group also operates a Savings Related Share Option Scheme (Sharesave Plan). Following approval by shareholders at the Annual General Meeting in May 2011, the Rightmove Performance Share Plan (PSP) was introduced. The PSP permits awards of nil cost options or contingent shares which will only vest in the event of prior satisfaction of a performance condition. All share-based incentives are subject to a service condition. Such conditions are not taken into account in the fair value of the service received.

The fair value of services received in return for share-based incentives is measured by reference to the fair value of share-based incentives granted. The estimate of the fair value of the services received is measured using either the Monte Carlo or Black Scholes pricing model as is most appropriate for each scheme.

The total share-based payments charge for the year relating to employee share-based incentive plans was £2,269,000 (2010: £1,846,000).

The Company charge for the year was £1,479,000 (2010: £1,043,000).

Approved and Unapproved PlansThere was no award of executive share options in the year ended 31 December 2011.

Unapproved executive share option awards granted on 5 March 2010 at an exercise price of £6.66 are subject to an equal measure of Total Shareholder Return (TSR) performance and growth in EPS. The vesting of 50% of the 2010 award will be dependent on a relative TSR performance condition measured over a three-year performance period and the vesting of the other 50% of the 2010 award will be dependent on the satisfaction of an EPS growth target over a three-year performance period.

Unapproved executive share option awards made on 5 March 2009 are subject to a relative TSR performance over a three-year performance period, relative to the constituents of the FTSE 250.

The assumptions used in the measurement of the fair values at grant date of the Approved and Unapproved Plans are as follows:

Employee

turnover

before vesting/

Share price Exercise Expected Risk free Dividend non-vesting Fair value

at grant date price volatility Option life rate yield condition per option

Grant date (pence) (pence) (%) (years) (%) (%) (%) (pence)

14 March 2006 (Approved) 413.50 410.00 27.0 7.0 4.5 4.0 16.0 92.0015 March 2006 (Unapproved) 413.75 335.00 27.0 7.0 4.5 4.0 0.0 116.0015 March 2006 (Unapproved) 413.75 335.00 27.0 6.0 4.5 3.0 16.0 130.0012 October 2006 (Unapproved) 348.00 347.00 27.0 7.0 4.5 4.0 16.0 76.006 September 2007 (Approved) 613.00 597.00 32.0 7.0 5.8 2.0 17.0 228.006 September 2007 (Unapproved) 613.00 597.00 32.0 7.0 5.8 2.0 17.0 181.0010 October 2007 (Unapproved EPS dependent)(1) 525.00 522.00 32.0 6.8 5.8 2.0 17.0 189.005 March 2009 (Unapproved TSR dependent)(1) 226.75 224.00 50.3 6.5 2.6 4.4 12.0 69.005 March 2010 (Unapproved TSR dependent)(1) 677.00 666.00 49.0 6.5 3.2 1.5 12.0 267.005 March 2010 (Unapproved EPS dependent)(1) 677.00 666.00 49.0 6.5 3.2 1.5 12.0 312.00

(1) For details of TSR and EPS performance conditions refer to Part II of the Remuneration Report on pages 30 to 42.

Expected volatility is estimated by considering historic average share price volatility at the grant date.

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24 Share-based payments continued

2011 2010

Weighted average Weighted average

exercise price exercise price

Group and Company Number (pence) Number (pence)

Outstanding at 1 January 6,095,430 348.33 6,878,310 330.16Granted – – 440,020 666.00Forfeited – – (145,030) 403.39Exercised (1,751,885) 344.73 (1,077,870) 354.63

Outstanding at 31 December 4,343,545 349.78 6,095,430 348.33

Exercisable at 31 December 2,793,167 345.77 2,925,602 335.56

The weighted average market value per ordinary share for executive options exercised in 2011 was £11.58 (2010: £6.98).

The options outstanding at 31 December 2011 have an exercise price in the range of £2.24 to £6.66 (2010: £2.24 to £6.66) and a weighted average contractual life of 5.4 years (2010: 6.1 years).

The share-based payments charge for approved and unapproved options for the year ended 31 December 2011 is £1,088,000 (2010: £1,318,000).

The Company charge for the year was £688,000 (2010: £781,000).

NI is accrued, where applicable, at a rate of 13.8%, which management expects to be the prevailing rate when the share options are exercised, based on the difference between the share price at the reporting date and the average exercise price of share options. The charge for the year ended 31 December 2011 is £4,032,000 (2010: £2,526,000).



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Sharesave PlanThe Group operates an Her Majesty’s Revenue and Customs approved Sharesave Plan under which employees are granted an option to purchase ordinary shares in the Company at up to 20% less than the market price at invitation, in three years’ time, dependent on their entering into a contract to make monthly contributions into a savings account over the relevant period. These funds are used to fund the option exercise. No performance criteria are applied to the exercise of Sharesave options. The assumptions used in the measurement of the fair value at grant date of the Sharesave Plan are as follows:

Employee

turnover

before vesting/

Share price Exercise Expected Risk free Dividend non-vesting Fair value

at grant date price volatility Option life rate yield condition per option


2 October 2006 345.75 259.00 27.0 3.25 4.5 3.0 16.0 108.003 October 2007 525.00 490.00 32.0 3.25 5.8 1.5 84.0 156.002 October 2008 253.75 255.00 32.0 3.25 3.0 1.5 25.0 59.001 October 2009 545.00 425.00 50.3 3.25 3.5 4.4 25.0 199.005 October 2010 745.50 553.00 49.0 3.25 2.3 1.6 25.0 318.003 October 2011 1200.00 988.00 42.9 3.25 2.8 1.3 25.0 446.00

Expected volatility is estimated by considering historic average share price volatility at the grant date.

The requirement that an employee has to save in order to purchase shares under the Sharesave Plan is a non-vesting condition. This feature has been incorporated into the fair value at grant date by applying a discount to the valuation obtained from the Black Scholes pricing model. The discount has been determined by estimating the probability that the employee will stop saving based on expected future trends in the share price and employee behaviour.

2011 2010




Outstanding at 1 January 176,523 409.92 178,435 364.63Granted 30,142 988.00 44,534 553.00Forfeited (18,022) 429.83 (27,771) 370.39Exercised (42,661) 255.00 (18,675) 377.19

Outstanding at 31 December 145,982 572.10 176,523 409.92

Exercisable at 31 December 1,431 255.00 – –

The weighted average market value per ordinary share for Sharesave options exercised in 2011 was £12.77 (2010: £7.01).

The Sharesave options outstanding at 31 December 2011 have an exercise price in the range of £2.55 to £9.88 (2010: £2.55 to £5.53) and a weighted average contractual life of 1.7 years (2010: 2.0 years).

The share-based payments charge for Sharesave options for the year ended 31 December 2011 is £106,000 (2010: £88,000).


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Performance Share Plan (PSP)In May 2011 following shareholder approval, a PSP was established. 164,258 PSP awards were made to executive directors and senior managers on 4 May 2011 (the Grant date) subject to EPS and relative TSR performance. Performance will be measured over three financial years (1 January 2011 – 31 December 2013). The vesting in March 2014 (Vesting date) of 25% of the 2011 PSP award will be dependent on a relative TSR performance condition measured over a three-year performance period and the vesting of 75% of the 2011 PSP award will be dependent on the satisfaction of an EPS growth target measured over a three-year performance period. PSP award holders are entitled to receive dividends accruing between the Grant date and Vesting date and this value will be delivered in shares.

The PSP awards have been valued using the Monte Carlo model and the resulting share-based payments charge is being spread evenly over the period between the Grant date and the Vesting date, being 34 months.

Employee

turnover

before vesting/

Share price Exercise Expected Option Risk free Dividend non-vesting Fair value

at Grant date price volatility life rate yield condition per option


4 May 2011 (TSR dependent)(1) 1039.00 nil 42.9 2.8 1.4 0.0 3.1 739.00 4 May 2011 (EPS dependent)(1) 1039.00 nil 42.9 2.8 1.4 0.0 3.1 1039.00

(1) For details of TSR and EPS performance conditions refer to Part II of the Remuneration Report on pages 30 to 42.

Expected volatility is estimated by considering historic average share price volatility at the Grant date.

The share-based payments charge for the year ended 31 December 2011 is £361,000 (2010: £nil).

The Company charge for the year was £277,000 (2010: £nil).

NI is being accrued, where applicable, at a rate of 13.8%, which management expects to be the prevailing rate when the PSP awards are exercised, based on the share price at the reporting date. The charge for the year ended 31 December 2011 is £64,000 (2010: £nil). Deferred Share Bonus Plan (DSP)In March 2009 a DSP was established which allows executive directors and other selected senior management the opportunity to earn a bonus determined as a percentage of base salary settled in deferred shares. The award of shares under the DSP is contingent on the satisfaction of pre-set internal targets relating to underlying drivers of long-term revenue growth (the Performance period). The right to the shares is deferred for two years from the date of the award (the Vesting period) and potentially forfeitable during that period should the employee leave employment. The deferred share awards have been valued using the Black Scholes model and the resulting share-based payments charge is being spread evenly over the combined Performance period and Vesting period of the shares, being three years.

The assumptions used in the measurement of the fair value of the deferred share awards are calculated at the date on which the potential bonus is communicated to senior management (the Grant date) as follows:

Employee

turnover

before vesting/

Share price Exercise Expected Expected Risk free Dividend non-vesting Fair value

at Grant date price volatility term rate yield condition per share

Grant date Award date (pence) (pence) (%) (years) (%) (%) (%) (pence)

5 March 2009 5 March 2010 226.75 nil n/a 3.0 2.6 4.4 12.0 199.005 March 2010 4 March 2011(1) 677.00 nil n/a 3.0 3.2 1.5 12.0 648.00 4 March 2011 – 1039.00 nil n/a 2.8 1.4 1.4 3.4 1000.00

(1) Following the achievement of the 2010 internal performance targets, 118,467 nil cost option deferred shares were awarded to executives and senior management on 4 March 2011 (the Award date) with the right to the release of the shares deferred until March 2013.



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business review


2011 2010




Outstanding at 1 January 215,958 – – –Granted 118,467 – 215,958 –Forfeited (2,436) – – –

Outstanding at 31 December 331,989 – 215,958 –

Exercisable at 31 December – – – –

The share-based payments charge for the year ended 31 December 2011 is £714,000 (2010: £440,000).

The DSP awards have a weighted average contractual life of 1.0 years (2010: 1.6 years).


NI is being accrued, where applicable, at a rate of 13.8%, which management expects to be the prevailing rate when the deferred shares are released to the employees, based on the share price at the reporting date. The charge for the year ended 31 December 2011 is £330,000 (2010: £125,000).

25 Operating lease commitments

Non-cancellable operating lease rentals are payable as follows:


Plant & machinery Other Total Plant & machinery Other Total

Group £000 £000 £000 £000 £000 £000

Less than one year 374 687 1,061 168 781 949Between one and five years 455 2,624 3,079 185 2,964 3,149More than five years – 199 199 – 855 855

829 3,510 4,339 353 4,600 4,953

The Company has no operating lease commitments in either year.

During the year, the landlord of the office premises in Milton Keynes served notice of early termination of the lease. As a result the current lease will expire in March 2012. Accordingly, only three months commitments are included in the table above. A lease on new premises was signed in January 2012 and no amounts in respect of this new lease are included above.

26 Capital commitments

As at 31 December 2011 the Group had committed to incur capital expenditure of £nil (2010: £nil).

The Company has no capital commitments in either year.

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27 Related party disclosures

Inter-group transactions with subsidiariesDuring the year the Company was charged interest of £499,000 (2010: £909,000) by Rightmove Group Limited in respect of balances owing under the inter-group loan agreement dated 30 January 2008.

As at 31 December 2011 the balance owing under this agreement was £87,375,000 (2010: £22,605,000) including capitalised interest.

Directors’ transactionsThere were no transactions with directors in either year other than those disclosed in the Remuneration Report. Information on the emoluments of the directors, who served during the year, together with information regarding the beneficial interest of the directors in the ordinary shares of the Company is included in the Remuneration Report on pages 30 to 42.

Stephen Shipperley, who resigned as a non-executive director on 31 December 2010, was also Group Executive Chairman of Connells Limited, a significant estate agency customer of the Group. During 2009 Connells Limited renewed their membership for a further three years on an arms’ length basis. The Group’s transactions and balances with this customer for 2010 were as follows:

Year ended

31 December 2010

Group £000

Amounts owed by: Sequence (UK) Limited (Connells) 70Connells Residential 46

116

Amounts invoiced to: Sequence (UK) Limited (Connells) 678Connells Residential 413

1,091

Included within trade and other receivables is £nil due from related parties (2010: £116,000).



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business review

28 Financial instruments

Credit riskThe carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was:

Group


Note £000 £000

Net trade receivables 17 13,132 10,073Amounts owed by related parties 17 – 116Amounts held in Escrow 11,17 1,667 1,000Accrued interest receivable 17 58 62Other debtors 17 117 37Cash and cash equivalents 18 21,768 23,148

36,742 34,436

The Company had no exposure to credit risk in either year.

The maximum exposure to credit risk for trade receivables (including related parties) at the reporting date by geographic region was:


Group Note £000 £000

UK 13,086 10,152Rest of the world 46 37

17 13,132 10,189

The maximum exposure to credit risk for trade receivables (including related parties) at the reporting date by type of customer was:


Group Note £000 £000

Property advertisers 12,676 10,114Other 456 75

17 13,132 10,189

The Group’s most significant customer, an Estate Agent, accounts for £1,011,000 (2010: £600,000) of the trade receivables carrying amount.

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28 Financial instruments continued

Impairment lossesThe ageing of trade receivables (including related parties) at the reporting date was:


Gross Impairment Gross Impairment

Group £000 £000 £000 £000

Not past due 9,662 (35) 7,088 (6)Past due 0 – 30 days 2,405 (247) 1,892 (162)Past due 30 – 60 days 1,311 (109) 1,355 (160)Past due 60 – 90 days 129 (31) 180 (22)Past due older 54 (7) 45 (21)

13,561 (429) 10,560 (371)

The movement in the allowance for impairment in respect of trade receivables during the year was as follows:


Group £000 £000

At 1 January 371 216Charged during the year 315 567Utilised during the year (257) (412)

At 31 December 429 371

The Group has identified specific balances for which it has provided an impairment allowance on a line by line basis across all ledgers, in both years. No general impairment allowance has been provided in either year.

The allowance accounts in respect of trade receivables are used to record impairment losses unless the Group is satisfied that no recovery of the amount owing is possible; at that point the amounts considered irrecoverable are written off against the financial asset directly.

Liquidity riskThe following are the contractual maturities of financial liabilities, including estimated interest payments:

Carrying Contractual 6 months 6-12

amount cash flows or less months 1-2 years 2-5 years

Group £000 £000 £000 £000 £000 £000

At 31 December 2011 Non-derivative financial liabilities Trade payables 370 (370) (370) – – –

Carrying Contractual 6 months 6-12

amount cash flows or less months 1-2 years 2-5 years

Group £000 £000 £000 £000 £000 £000

At 31 December 2010 Non-derivative financial liabilitiesTrade payables 1,033 (1,033) (1,033) – – –

The Company had no non-derivative financial liabilities in either year.

It is not expected that the cash flows included in the maturity analysis could occur earlier or at significantly different amounts.



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business review

28 Financial instruments continued

Currency riskDuring 2011 all the Group’s sales and more than 95.0% of the Group’s purchases were Sterling denominated and accordingly it has no significant currency risk.

Interest rate riskThe Group and the Company have exposure to interest rate risk on their cash balances and amounts held in Escrow. As at 31 December 2011 the Group had total cash of £21,768,000 (2010: £23,148,000) and £1,667,000 (2010: £1,000,000) held in Escrow.

Fair valuesThe fair values of all financial instruments in both years are equal to the carrying values.

29 Contingent liabilities

The Group and the Company had no contingent liabilities in either year.

30 Subsequent events

There have been no subsequent events having a material impact on the financial statements between 31 December 2011 and the reporting date.

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advisers and shareholder information

ContactsManaging Director: Ed WilliamsChief Operating Officer and Finance Director: Nick McKittrickCompany Secretary: Liz TaylorWebsite: www.rightmove.co.uk

Financial calendar 20122011 full year results 24 February 2012Annual General Meeting 9 May 2012Final dividend record date 11 May 2012Final dividend payment 8 June 2012Interim Management Statement May, November 2012Half year results 1 August 2012Interim dividend November 2012

*Shareholder enquiriesThe Company’s registrar is Capita Registrars. They will be pleased to deal with any questions regarding your shareholding or dividends. Please notify them of your change of address or other personal information. Their address details are:

Capita RegistrarsThe Registry34 Beckenham RoadBeckenhamKent BR3 4TU

Capita Registrars is a trading name of Capita Registrars Limited.

Capita shareholder helpline: 0871 664 0300 (calls cost 10p per minute plus network extras) (Overseas: +44 20 8639 3399)Email: [email protected] portal: www.capitashareportal.com

Through the website of our registrar, Capita Registrars, shareholders are able to manage their shareholding online and facilities include electronic communications, account enquiries, amendment of address and dividend mandate instructions.

Registered office Rightmove plc4th Floor33 Soho SquareLondon W1D 3QURegistered in England no. 6426485

Corporate advisers

Financial adviserUBS Investment Bank

Joint brokersUBS Limited Numis Securities Limited

Auditor KPMG Audit Plc

Bankers Barclays Bank Plc HSBC Bank Plc

Solicitors Slaughter and MayPinsent Masons

RegistrarCapita Registrars*

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Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchesghtmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at

Rightmove.co.uk is the UK’s largest property portal.Our aim is to be the place for all UK home movers to find details of all properties available to buy or rent. The website provides an easy-to-use but sophisticated online property search. With the depth of information that it provides, home hunters can immediately identify a preferred property.The service is directed at four key membership groups:• estate agents• lettings agents• new homes developers• overseas homes agents offering properties outside the UK but interested

in advertising to UK-based home hunters.

Rightmove plc

1 Highlights

2 Chairman’s statement




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Rightmove continues to drive a strong conversion of profits to cash enabling us to return all of the cash from operating activities in 2011 to shareholders through either dividends or the repurchase of shares. In 2011 we bought back 4.4m shares at an average price of £11.10 per share whilst increasing dividends by 29% to 18.0p (2010: 14.0p). In total we returned £65.1m to shareholders through dividends and share buy backs.

Results do not come without investment in employees. While our business model is not labour intensive, with 300 employees at the year end, we are very pleased to have judiciously added to the ranks of senior management ensuring that the skills and experience are available to maintain high standards of service to customers and home seekers alike.

I want to express my thanks to our employees who continue to put their efforts into making Rightmove the best place for home hunters to find their next home and for property advertisers to reach the widest possible audience.

Financial resultsIn terms of financial results, 2011 set new records for both revenue and profits. Underlying operating profit(1) was up 23% to £69.4m (2010: £56.6m) driven by strong organic revenue growth coupled with a lower increase in operating costs year on year. Underlying basic earnings per share (EPS)(1) was up 26% to 50.3p (2010: 39.8p). The increase in EPS was strengthened by the repurchase of 4.4m (2010: 4.2m) shares. As at 31 December 2011 the net cash position was £21.8m (2010: £23.1m).

It is my pleasure to present Rightmove plc’s results for the year ended 31 December 2011.

Rightmove stakeholders have much to be pleased about based on 2011 performance across a variety of measures. Most importantly, Rightmove has become synonymous with property advertising and is one of the top ten most popular websites in the UK. With over nine billion page impressions served on our fixed internet, mobile and tablet platforms, 2011 was the busiest year in our history. Website traffic grew 22% year on year generating record visibility and enquiries for our advertisers.

For several years Rightmove has been evolving from a simple subscription business model to become a provider of a broad set of property advertising products for our customers. We are especially pleased that over two-thirds of our customers now take advantage of this wider product set, allowing them to better promote their properties, brand and proposition.

The diversity of our product offerings and industry leading reach contributed to another record operating performance with revenue and underlying operating profit(1) increasing by 19% and 23% respectively. Our sustained growth has seen Rightmove move from a new entrant into the FTSE 350 five years ago, into one of the top 200 listed UK companies by market capitalisation and in 2011 Rightmove’s share price was the second best performing of any FTSE 350 company.

Annual General Meeting and resolutionsThe resolutions being proposed at the Annual General Meeting are similar in nature to resolutions from prior years. A summary of the business to be conducted is described in the Directors’ Report. The Notice of Annual General Meeting will be published in March 2012. I and the rest of the Board look forward to answering any questions and updating shareholders further on the development of the business at our Annual General Meeting which will take place at 10am on 9 May 2012 at the offices of UBS Limited at 1 Finsbury Avenue, London, EC2M 2PP.

On behalf of shareholders, I would like to thank Ed Williams and his team for the achievements of the past year. With healthy growth in average spend per advertiser at the start of the year and in the absence of any unexpected and significant deterioration in the UK housing market, the Board remains confident of growing the business further in 2012.


Sale of Holiday LettingsIn October 2011 we received the final £4.9m of contingent consideration from the June 2010 sale of our 66.7% shareholding in Holiday Lettings (Holdings) Limited. The final cumulative net proceeds from this sale were £21.4m, of which £1.7m will remain in escrow until 2014.

DividendThe Board announced that it would increase the interim dividend to 7.0p per ordinary share which was paid on 11 November 2011. Consistent with our policy of increasing the total dividend for the year in line with underlying operating profits, the Board proposes to pay a final dividend of 11.0p (2010: 9.0p) per ordinary share for a total dividend for the year of 18.0p (2010: 14.0p). The final dividend, subject to shareholder approval, will be paid on 8 June 2012 to all shareholder on the register on 11 May 2012.

The Board of directorsI was delighted to announce the appointment of Peter Brooks-Johnson to the Board as an executive director on 10 January 2011. Peter joined Rightmove in 2006 and has led our main operating business since 2009. His appointment demonstrates the depth of talent within the business.

My thanks go to the Board more generally for its contribution and support over the last year.


“ Rightmove continues to drive a strong conversion of profits to cash enabling us to return all of the cash from operating activities in 2011 to shareholders through either dividends or the repurchase of shares.”

(1) From continuing operations and before share-based payments and NI on share-based incentives and no related adjustment for tax.


6 Investment in the future

7 Key performance indicators




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Market share

84%

of the market share of the top 4 Uk property websites by pages

viewed, 2% up on 2010source: experian hitwise and rightmove:

December 2011 and December 2010

enqUiries

19.6 million


corporate estate agents anD new hoMe Developers

96%

24/25 of both the largest corporate estate agents and new homes

developers advertise on rightmove.co.uk

nUMber of aDvertisers

18,276total membership at end of 2011

was 18,276 (2010: 18,042), up 1.3% year on year

Mobile

228 million

searches across mobile platforms up 168%

from 85 million in 2010

Uk’s largest property portal


average revenUe per aDvertiser

£443per month, up 17% on 2010

properties DisplayeD

1.1million

properties displayed on rightmove.co.uk at 31 December 2011,

same as 2010

page iMpressions

9.3 billion

page impressions up from 7.6 billion in 2010

source: rightmove


the key performance indicators that we monitor include:


SHOW HOME NOW OPEN


see page 8



innovation

see page 12

our brand

see page 14

supporting our agents

see page 10

4 Business and financial review




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It has also been a year of investment in new products which will be launched in 2012. These include three products for use on our mobile platforms and the introduction of the local valuation alert service for agents eager to win more sales instructions.

Our focusOur focus remains the UK online property advertising market. We see this sustained focus as a strength of the business and a key contributor to our success.

We believe that Rightmove would be a major beneficiary of any increase in the number of agents in the market or number of developments being marketed by new homes developers. However, that is more a function of improvements in the wider property market and economic outlook. We remain committed to increasing the absolute amount and the proportion of their overall marketing budgets that our customers choose to spend with us.

Uncertainties, threats and risksThe Rightmove business model has proven to be remarkably resilient in the unprecedented downturn in the property market experienced in 2008. We have been able to grow significantly even in the difficult housing market thereafter. The numbers of estate agents, lettings agents and new home developers are inevitably affected by the level of property transactions, which continue to be below historic trading levels. We do not believe, given the wider state of the economy and the specific challenges of the mortgage market, that 2012 will see any substantial increase in transaction volumes as compared to the past three years.

In 2011, we increased the number of account managers to allow us to spend more time with customers and help them understand the wider range of benefits to be derived from Rightmove membership. These benefits include management information and reporting tools, competitor comparisons and reports and marketing material which customers can use directly with home sellers and landlords.

Innovation in advertising products2011 saw strong growth in the adoption of our additional advertising products, particularly the display advertising products introduced in 2010 and email campaigns for new home developers. Around half our revenue growth has come from spend on additional advertising products.

Taking the year as a whole, 25% of revenue came from spending by our customers over and above that spent on listing properties, as compared to 21% in 2010. In absolute terms, spending on these products was up 43% on the previous year. We would expect to see the proportion of total spending accounted for by these and future similar products rise in the coming years.

Many of our customers continued to take advantage of a scheme we offer, where for a commitment to spend an additional amount every month all year (typically £275 per month in 2011) they can select whatever combination of our additional advertising products they wish in return for a discount against the individual list price of the products. Adoption of this scheme has resulted both in a significant increase in the average spend on Rightmove per advertiser and a continued high predictability of our income streams.

In support of our new home developers, we have launched development specific micro-sites which provide home movers with more comprehensive information on the development and its environs.

SHOW HOME NOW OPEN



neW HOMe develOpeRs

96%

24/25 of the largest new home developers advertise on

Rightmove.co.uk




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Cash flow and net debtCash generated from operations was £67.7m (2010: £58.8m). Cash conversion was 108% of operating profit.

Tax payments increased to £14.3m (2010: £12.2m) resulting in net cash from operating activities of £53.4m (2010: £46.5m).

Capital expenditure was £0.5m (2010: £1.2m). The higher expenditure in 2010 reflected increased investment in database licences and a disk storage solution.

The final element of consideration received from the sale of HLL in June 2010 contributed a further £4.9m of cash in the year.

Proceeds of £6.1m (2010: £3.9m) were received on the exercise of share-based incentives.

A total of £48.3m was invested during 2011 in the repurchase of our own shares (2010: £29.4m) whilst a further £16.8m was paid in dividends (2010: £13.0m).

The Group entered into an agreement with Barclays Bank Plc for a £10.0m uncommitted money market loan. To date no amount has been drawn under the facility and it has been extended for a further year until February 2013.

As a result of the cash movement noted above, net cash at 31 December 2011 was £21.8m (2010: £23.1m). The Board is confident that with the existing cash resources and banking facilities in place, the Group and the Company will remain cash positive and will have adequate resources to continue in operational existence for the foreseeable future.

Net financial expensesA net financial credit of £0.1m (2010: £0.2m) was recorded, being interest income on cash balances, off-set by bank charges and fees in relation to our money market facility. Earnings per shareUnderlying basic EPS(1) increased 26% to 50.3p (2010: 39.8p). Diluted EPS(2) increased 22% to 42.3p (2010: 34.6p). The growth in EPS was helped by our share buy back programme which reduced the weighted average number of ordinary shares in issue to 104.8m (2010: 108.0m).

Profit on disposal of HLLA further profit of £0.5m has been recognised in relation to the sale of HLL. This is due to the final element of consideration being higher than estimated due to a better than expected performance by the HLL business.

Statement of financial positionThe Group’s statement of financial position remains strong with total equity of £24.7m at 31 December 2011 (2010: £27.9m) and cash balances of £21.8m (2010: £23.1m).

As a result of better trading, trade receivables in current assets increased by 29% to £13.1m (2010: £10.2m). Trade and other payables increased by £4.9m to £20.9m (2010: £16.0m) mainly due to an increase in the accrual for the potential liability for employer’s NI on share-based incentives together with an increase in deferred revenue. Our deferred tax assets have grown to £10.7m (2010: £6.7m) representing future tax benefits from share-based incentives.

continuing a record of innovation

During 2011 we have continued to invest in serving home movers. We launched a brand new version of the iPhone App, which now includes key features such as synchronisation with the main website and map based searching. This App has been downloaded around 1.5m times.

mOBILE

228 million

searches across mobile platforms up 168% from 85m in 2010

16 Directors and officers

18 Senior management team

19 Corporate social responsibility

21 Directors’ report

24 Corporate governance

30 Remuneration report

43 Auditor’s report

44 Consolidated statement of comprehensive income

45 Consolidated statement of financial position

46 Company statement of financial position

47 Consolidated statement of cash flows

48 Company statement of cash flows

49 Consolidated statement of changes in shareholders’ equity

50 Company statement of changes in shareholders’ equity

51 Notes (forming part of the financial statements)

84 Advisers and shareholder information

Contents

Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Liz moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. James moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Jenny moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Robyn moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Bob moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Mark moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchesghtmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Cherry moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves at rightmove. Alverdiscott moves at rightmove. Devon moves at rightmove. Britain moves at rightmove. Kingston moves at rightmove. Ahoghill moves at rightmove. Aigburth moves at rightmove. Liverpool moves at rightmove. Alcester moves at rightmove. Aldeburgh moves at rightmove. Suffolk moves at rightmove. Alnwick moves at rightmove. Northumberland moves at rightmove. Althorp Northamptonshire Altrincham moves at rightmove. Greater Manchester moves

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