Given the conventions for reporting the figures at this interim stage, you may
find it helpful if my comments include some context for the disposal of the
Group’s traffic business that took place during the comparative reporting
period.
On a continuing operations basis, Group sales show a 35% rise (1999 £7.829M)
over the comparative period and operating profit grew by 78% (1999 £1.227M). A
gain of 84% is recorded at the pre-tax level, assisted by the increase in
interest earnings.
As the reported figures show, the Group’s net cash reserves stood at £9.19M at
the interim stage (2000 year end £6.85M), and basic earnings per share have
risen to 11.27p (10.73p per share earned for the previous full year).
The Group’s operating companies were each successful in gaining a notable
increase in sales into their market territories during the opening half,
although no marked increase was recorded for the UK market. It is an
increasingly established fact for the Group’s business that end-sales do not
necessarily reflect the territory where the key design-in decisions are reached
by or on behalf of the Group’s customers.
The market areas that were most successfully addressed by the Group’s products
included wireless data terminals, subscriber-line telecom functions and
personal/private radio communication. There was a significant market interest
for the specialised voice coding products that the Group offers.
The Group has been active in the design and introduction of a number of new
products that are unlikely to deliver benefit before next year.
I believe that your Company is making satisfying progress in its performance
and I am hopeful that it should continue to do so. Subject to unforeseen
circumstances, I feel confident that the results for this year can be expected
to show a firm increase.
