Investor relations 2007

Highlights

• Sales revenue growth of 14 per cent at constant exchange rate
• Printer volumes up by 20 per cent
• Continued good performance from acquired businesses
• Growth spread across all geographic regions
• Demand for new plus range of products remains strong
• Significant investment in Integrated Solutions, Thermal Transfer Overprinting (‘TTO’) and Print and Apply Label Machinery (‘PALM’)
• Further increase in research and development expenditure
• Net cash inflow from operating activities before taxation ahead of operating profit for eighth consecutive year.

Peter Byrom, Chairman, commented: “The 12 months to 31 October 2007 have produced another record year of sales and profits for the Group, and further market share gains.  The movement in exchange rates has once again adversely impacted the translation of our results.  Revenue growth at constant rates was 14 per cent.  Reported underlying operating profits increased by 7 per cent to £32.2 million after absorbing £1.5 million of adverse currency movements.

“We have increased our expenditure on research and development by 4 per cent to £11.3 million.  The new plus range of products, launched at the beginning of the year, has been well received by our customers and demand remains strong.  We have continued with our investment programme in the emerging Track and Trace opportunity.  We had satisfactory growth in revenues during the year from this business.

“We made two further strategic acquisitions in the year.  Collectively the acquisitions that we have made over the last four years continue to perform well and meet expectations.  To capitalise on the opportunities afforded by this substantial expansion in our product range we have invested in additional sales, marketing and support resources.

“We have a strong global business with an extensive sales and service network serving our customers worldwide who are spread across multiple market sectors. We have a large installed base of printers using our fluids, spare parts and services. Legislation mandates and standards which demand identification of products drive demand for our printers and services. Whilst we will not be immune from slowing economic growth rates amongst major world economies and the impact this may have on our customers’ investment plans and production outputs, the fundamental strength and diversity of our business gives us confidence about the future.

“The business is well positioned for further growth. The core product range has been refreshed and enhanced. Legislation and activity levels support ongoing growth of our Integrated Solutions business. Our PALM and TTO businesses are expected to contribute positively to profits in 2008. We have good order books going into the New Year”.

Chairman's statement and further information

Accounts 2007

Chairman's 2007 Statement

Trading Review

Consolidated Income Statement

Consolidated Balance Sheet

Consolidated Cash Flow Statement

Statement of Total Recognised Gains & Losses

Notes

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Operating Profit

Operating Cash Flow

Underlying Earnings per Share

Dividends per Share

Net Assets per Share (2006)