1. AGM

2. Agenda:
Top level overview of performance 2016/17
Sales and Business Development
Operational Activity
Project Examples

3. 2016/17 Performance
Revenue achieved £4.05M, Increase of approx. 18% on 2015/16FY
Profit after tax £239k (including Group Charge of £140k)
A Far Better Year
Buoyant order intake throughout the year
Vast majority of projects generating healthy margin
Improved margin combined with increase sale = profit generation
Break even for current business structure sits at around £3.8M

4. Sales and Business Development
Mr Kristian Richardson
Commercial Director

5. 55% increase in customer base
Sales Update
Highlights
Increased repeat business as our market share has grown within existing accounts.
Acquisition of new clients
More profitable channels of business (lower risk projects resulting in higher margins)
Increase in business across a variety of industry sectors (Automotive, Rail, Aerospace, Retail, Building services, Off road vehicles, Oil & Gas and more).
Restructure to the sales team (streamlining)
Established key partnerships that provide an additional sales channel.
Two x Service Level Agreements close to fruition
Increased quotation numbers and values
2015/16 Number of customers 22
2016/17 Number of customers 34
55% increase in customer base

6. Business split from exisiting and new business
The retention of customers has proved key to an increase in profitability as we have established working systems with our customers considering their business constraints and needs. This has lead to an increase in QM System’s efficiency and therefore an increase in profitability.
This has allowed the sales resource to focus on new business. A balance of retention and new sales is critical to both the growth and profitability of QM systems.
Not all our customers have a year on year enquiry. The larger production lines tend to be one off projects whereas the production cells (£200k-£500k) tend to have more frequent need for our services. That is why a balance of new and existing clients is key to our success.

7. Sales update
We have re-structured the sales force reducing costs whilst maintaining sales. Our plan is to add an internal sales support resource to the team to aid with quotations, concepts and costings allowing Senior Sales Members to attack different areas of business.
Continued work on our website upgrade with a roll out in 2018 is planned including improved SEO
The pipeline consists of enquiries in excess of £10 million, all currently due for award in next 6 months, this includes a number of large projects.
Our win ratio remains around 35% of projects awarded to date.

8. Customers: Frequently working with major blue chip companies.
Including

9. Operational Activity
Mr Leigh Hollamby
Operations Director

10. Operations
Progress 2016/17
Developed outsourcing partner relationships
Particularly successful with streamlining delivery and installation on large projects
Allows QM to focus on core activities and not carry overhead of seldom required resources
Phased introduction of standards for controls software development structure
Creation of software framework
Reduced software engineering time
Far easier to support
Continued to reduce and streamline electrical design times through use of E-Plan
Developed component libraries
Improved documentation format for both internal and external clients
Continued development of apprentices throughout the business
Developed a partnership with local training charity
Three current apprentices at varying levels
First Business Administration apprentice commenced this year
New partnership with KellSafe has reduced cost of maintaining OHSAS and decreased training costs
Staff trained in Risk Assessment, First Aid and Fire Safety amongst other required fields
Persevered with existing purchasing systems
No additional costs incurred
Staff ahead of target on order processing timescales
Expediting processes have decreased time to dock

11. Operations Targets 2017/18 Expand project management team
Facilitate better, more regular contact with clients
Driving clients to completion in an active manner
Capacity required to match project intake
Develop junior/apprentices to support senior team
Appoint Engineering Manager
Improve cohesion between internal departments
Ensure tighter development and adherence to project specifications
Better control variations to order
Developing improve in-house management tools
Tracking resources & predictive modelling
Tracking multiple stages to match project profiles
Transition Quality & Environmental systems
QA to ISO 9001:2015
Environmental to ISO 14001:2015
Continue to improve Health & Safety systems
Prepare for transition of system to ISO standard in late 2018/2019
IOSH managing safely course for senior management team
Potential further E-Plan training
Further software training in both PLC and Robotics fields
Establish support infrastructure in line with sales-led activities

12. AGM