1. RAP Communications plc
Financial Report
RAP Communications plc
Introduce speakers.
Give a quick overview of the company position in the marketplace as of today.

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

3. Overview
Company productivity up by 6% on previous year Annual Turnover £163m - 3% down on previous year Profits up £12m Investment overseas increased by 4% Earnings per share p 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.

4. 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.

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

6. Turnover Years 1 to 4

7. Profits Years 1 to 4

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

9. Our drop in UK sales is higher than the market decline
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

10. £20m in loans and investments
Balance Sheet
Assets
Machinery and Plant £58m
Liabilities
£20m in loans and investments

11. Secure the four UK supply contracts
Looking Ahead
Goals for next period
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

12. Looking at the Competition The Competition

13. Decline of UK sales overall 8% Increase in Overseas sales overall 15%
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

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

15. Question Time ?