Business Review

Steve Auld CEO

Stuart Lawson CFO

Financial and Operational Highlights

• Pre-tax profit* £8.81 million
• Operating profit margin* at a seven year high of 8.2%
• Full year dividend increased by 15%
• Net debt reduced by £4.5 million to £8.2 million (Gearing of 15.5%)
• Cash flow from operations* strong at £11.4 million
• Investment in key skills/training for staff
• New European sales team established

Summary of Trading 

Thanks to the management initiatives we have adopted, we are now enjoying better operating returns as the quality of our business has improved, despite the challenges presented by the marketplace. As a result the operating profit* is at a seven year high.

During the financial year under review we identified a number of new business opportunities which we
expect to take advantage of. Our business is now focused on two major geographical areas, namely
Europe and Asia, and in addition we have a smaller distributor based business in the United States.

For the first time in the Company’s history more than 50% of our revenue came from customers outside the UK. This represents a focused drive into areas such as China and Central Europe and clearly demonstrates our ability to win and service customers wherever they are. 

Good examples of this are two customers we have in Northern Poland. By working closely with a logistics
partner we are able to offer these companies a full Direct Line Feed service without the need for our own
warehouse in the region.

It is this ability to offer customers the full TR service almost anywhere on the globe that sets us apart from
other fastener companies.

What are our objectives?

In defining our objectives, we look at three key areas: Market Competitiveness, Operational Excellence and Acquisitions.We have set a number of key objectives for both Market Competitiveness and Operational Excellence which are outlined within this report.

* Before intangible amortisation, associate impairment and IFRS 2 charges.