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Isotron plc Full Year Results 2004/5 John Barker CEO Paul Wynne CFO September 2005.

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Presentation on theme: "Isotron plc Full Year Results 2004/5 John Barker CEO Paul Wynne CFO September 2005."— Presentation transcript:

1 Isotron plc Full Year Results 2004/5 John Barker CEO Paul Wynne CFO September 2005

2 2 Highlights of 2004/05  Revenue Growth + 10%  EBIT Growth + 12%  Pre-tax Profit Growth + 16%  E.P.S Growth+20%  Net debt down to £6.2m (from £11.9m) Markets - Medical, Chemical and Laboratories all strong Success in Asia - Revenue + 18% and low tax Strong cashflow  lower net debt News! –Acquisition Ebis –Thailand Expansion –IT Investment –Logistics

3 3 EPS growth

4 4 Revenue Growth by Market £m 2004/5 £m 2003/4 £m Medical %+2.29 Biological %+0.13 Chemical %+0.46 Laboratory % %+3.51

5 5 Medical Revenues (Sterilisation) Growth 10% –2% price –8% volume Market drivers still valid Strong in most countries “One off” revenues –Temporary outsourcing –Remedial processing

6 6 Biological Revenues Steady - not expected to move significantly Positives – Food packaging – Dog chews Negatives –Water filters –Food

7 7 Chemical Revenues (Materials Modification) Two strong years (2004: +24%)(2005: +20%) Outsourcing for Tyco –Automotive –Specialist cabling Volatile Market

8 8 Lab Services Pathology + 17% Microbiology + 19% National drug monitoring contract (Pathology) Ireland Laboratories –outsourcing micro –residual testing

9 9 Profit & Loss Account

10 10 Other Costs Two key components:  Operating costs  General and Admin costs Operating cost increases due to:  Technology mix  Energy, R&M  Logistics - new General and Admin cost increases due to:  Share schemes  IFRS  Training

11 11 Cost Dynamics We are essentially a fixed cost business but: Costs do increase over time, therefore Revenue growth is critical in determining profitability and Technology mix will infl cost growth Impact of strategic investments need to be considered e.g. IT / new capacity

12 12 Capital Expenditure

13 13 Cashflow

14 14 Net Debt £5.7m reduction during the year Ahead of expectations F/X impact small Majority of debt £ and €, rates 5-7%, before refinancing

15 15 Taxation Current year  Prior year adj  Origin of profits Future influences  Origin of profits  European tax rates  Thai tax holiday

16 16 Banking New banking facilities were negotiated during the year Key benefits:  Increased facilities  Lower rates/reduced costs  Increased competition  Improved flexibility Cash management processes/systems under review

17 17 IFRS Plans/Timescales  2005 Annual Report  Re-stated Numbers Impact: historic/future  IFRS 2 (Share based payments)  IFRS 3 (Goodwill)  IAS 19 (Pensions)  IAS 32/39 (Financial instruments)  IAS 10 ( Dividends)  IAS 12 (Deferred tax)

18 18 Acquisition of Ebis Iotron Ltd - 1/09/05 Physical 3 process lines, 2 buildings at Harwell (40 minutes from Swindon) - 25 people Consideration £2.55m in cash Dynamics for Isotron Strengthen UK Medical Market New Market - Semiconductor processing Irradiation of Gemstones (Topaz) Increase in beam expertise Actions Integration / restructuring Rebalancing medical processing Potential development of unique technology

19 19 Thailand Expansion Total cost circa £2.0m – 75% in current year On-stream 2006 / 2007 Tote v’s Pallet Expansion is customer led (multi-national)

20 20 Visibility of Earnings Fundamentally Good:  Long term relationships (esp Medical)  Daily/weekly/monthly processing  Medical market grows steadily overall  Costs have a fixed element But  No order book / no minimum volume is contracted or guaranteed  Medical market is product diverse, with mixed growth rates  Chemical business is volatile  Consequence  Fast changes to bottom line, both up and down  Difficulty on guidance

21 21 Outlook “Another successful year is expected”


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