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Agenda Overview Growth for year Revenue The Competition Key Initiatives The Balance Sheet Looking Ahead Conclusion Question Time

Overview Company productivity up by 6% on previous year Annual Turnover £163m - 3% down on previous year Profits up 4% @ £12m Investment overseas increased by 4% Earnings per share - 40.5p Final dividend of 21p per share making a total of 33p on the year Company productivity has increased following staff reductions, implementation of new factory processes and the introduction of new plant and machinery. Although productivity has increased, our overall turnover has decreased, as we have had to reduce prices in order to remain competitive. Due to the improvements in productivity and reductions in borrowing and bad debt, we have seen an increase of 4% in company profits. We are continuing to invest in our overseas factories as the current strength of the pound and our overseas competition continue to place a strain on our UK market share. The earnings per share in this financial year are 40.5p. We are allocating 21p per share for the final dividend. Added to the interim dividend of 12p per share, this will make a total of 33p per share for the financial year. This is a text box that has been added – it is not a placeholder

Growth Sales in UK have seen a decline of 10% Investment overseas has paid off with sales up by 20% UK manpower has been decreased by 15% Overseas manpower has seen a rise of 20% There is no intention to reduce UK manpower any further. We will continuing to invest overseas and will recruit where necessary to fulfill our productivity targets. Opportunities for overseas relocation will continue to be available for the foreseeable future.

Revenue Annual Turnover for current year - £163m Annual - Turnover for prior year £168m Profits up by 4% @ £12m Cont...

Revenue Cont.. Factors include Forecast for next 12 months UK manpower reduction Slow down in redundancy payments Cost of materials have decreased Forecast for next 12 months £180m Turnover with Profits @ £20m

The Competition Our main competitors have also seen reductions in UK market Decline of UK sales overall 8% Increase in Overseas sales overall 15% The number of companies operating in this sector of industry has fallen by 5% No known new operators

Key Initiatives Sales and Marketing to increase UK efforts Our drop in UK sales is higher than the market decline We will continue with overseas investment The rate of investment is to slow down by 20% for the next financial year Contracts at home We have four supply contracts under current negotiation for the UK market

Balance Sheet Assets Liabilities Machinery and Plant £58m £20m in loans and investments

Looking Ahead Goals for next period Opportunities Secure the four UK supply contracts Increase UK customer portfolio by 5% Increase Overseas customer portfolio by 10% Increase Overseas manpower levels in line with productivity demands Opportunities There should be opportunities in the Eastern markets following the relaxation of the Eastern block

Conclusion Profits are not as high as expected The UK business needs further streamlining Opportunities will be available to employees wishing to work overseas

Question Time ?