In our 2007 Annual Report, we gave an assurance that, despite all the economic uncertainty, constant increases in raw material prices and an unfavourable development of currency effects, we would continue to deliver sustained organic growth and robust operating results.
Once again we have been able to deliver the promised performance, with a 16.1% increase in sales, of which 11.7% organically, and a 15.7% uplift in the current operating result.
This outcome was possible thanks to our increased market share in Europe and the USA, which helped to offset the effects of the economic slowdown. Our recurrent service and maintenance business is also an important strong point in these depressed global economic conditions, with growth of 19.1% which, as in previous years, helped to underpin our margins.
However, we have to acknowledge that we failed to predict either the sharp fall in raw material prices at the end of the year, which had a marginally positive impact on the gross margin, or the collapse of sterling, which significantly depressed our pre tax earnings.
With global economic uncertainty at its height at the start of this year, we are currently unable to provide any reliable guidance for 2009.
However, we are conscious of having solid fundamentals and a number of key advantages, such as a rejuvenated and highly competitive product range, fully operational subsidiaries, a downward trend in raw material prices and a determination to remain ‘best of breed’ in this recessionary environment – just as we have proved able to do in the past when markets were expanding.
The agta record Group’s action plan is now in place and we are prepared to take all available opportunities for internal and external growth.
