Confidence in our future

I am very pleased to report that the Company has delivered strong results for the last financial year, with growth in revenue and profit in both operating divisions

In particular, there has been an accelerating performance within the Bespak business unit, primarily driven by its respiratory products.

Growth increasing

The Group has delivered this encouraging performance notwithstanding market conditions, which continue to be mixed. Revenues from products and services grew by 7% to £126.8m (2010: £118.6m) and operating profits before special items grew by 10% to £20.5m (2010: £18.7m). EBITDA (after special items) increased by nearly 16% to £25.0m (2010: £21.6m). Group cash flow continued to be strong, and net debt remains tightly managed at 1.3x EBITDA before cash special items.

Sustaining progress

The Bespak division delivered a resilient performance, with increased revenue, operating profit and margin growth. It has also made good progress towards bringing new dose counters, valves and devices towards commercial launch. A further two autoinjector programmes were filed by our customers for approval with the FDA. The Division also gained a development contract to manufacture a disposable cartridge for a Point-of-Care (POC) diagnostic application.

King Systems achieved growth in revenue and operating profit, despite soft market conditions.

Importantly, in October 2010, we show-cased King’s innovative new product, the King Vision digital video laryngoscope. This is a pioneering product within the King portfolio, and addresses a major unmet need in providing affordable visualisation of the patient airway. Full launch is being undertaken currently.

The manufacturing transformation programme within King continues to make good progress, with the commissioning of the Flex 2 automation line, manufacturing breathing circuits, in April 2011.

Board changes

Several Board changes have occurred during the year, or are imminent.

In January 2011, Nick Higgins, Director of Corporate Development, who has extensive life sciences business development experience, was appointed as an executive director. He has the key objective of driving the expansion and diversification strategy of the Company.

We were also very pleased to welcome Dr Lynn Drummond to the Board in February 2011 as a non-executive director. Lynn recently retired from her role as a managing director within the investment banking business of NM Rothschild, after 16 years. She has exceptional knowledge of the life sciences sector, including extensive M&A experience.

George Kennedy, Senior Independent Director and Chairman of the Remuneration Committee, has decided to retire from the Board following the forthcoming Annual General Meeting. George has made an immense contribution to the Company and its development during his period on the Board, and I wish to thank him on behalf of all Board members.

Finally, I would like to pay tribute to our employees, and to thank them for their commitment throughout the year. I would also like to thank our shareholders for their continued support for the Company during this period.

Peter Fellner
15 June 2011


Key information for shareholders

7% Revenue growth
10% Operating profit growth
7% Adjusted EPS growth

More information


King system
The first lightweight, cost-effective video laryngoscope with a clinician-friendly design, disposable channeled and non-channeled blades and reusable, integrated OLED video display.


King system Specialising in
the design, development
and supply of innovative
devices for delivery of injectable drug products.

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