3 Results Overview-Highlights Excellent progress on all fronts PBT* £616k ( £191k 2005) Strong cash generation £852k Continued cost reduction Further improvement in productivity Group well positioned for further expansion * Excluding goodwill amortisation
5 Strong Cash Generation £kH1H2Total 2006419433852 2005*(81)237156 * Excluding loan repayment and proceeds from sale of business
6 Business Review Redman Fittings –Innovative pipe jointing system Issquared –Small team focussed on product development opportunities within the water sector MTC –Tube manipulation specialist with blue chip OEM customer base.
7 Redman –Moved to profit in H2 –Focus on OEM’s complete –AMP 3 to AMP4 resulted in softer market-now recovering Issquared –Development contract complete Above businesses combined at end of March 2006
8 Largest of the businesses Blue chip customer base –Cummins, CAT, Perkins, F G Wilson Key end market is power generation –Generator sets –Diesel engines –Radiators
9 Sales Further market share gain –Existing customers –New customers Markets remains strong and stable –China –North America
10 Operations Further 15 % productivity improvement China operation working well –increased scope for resourcing Quality further improved-Customer returns halved on previous year (half of a tiny amount!!) On time delivery performance maintained
11 Outlook Power generation sector remains strong and stable Further organic growth anticipated Additional scope for low cost sourcing Lean manufacturing will continue to deliver benefits Outlook positive