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2. OBJECTIVES AND STRATEGIES

The Group is committed to generating shareholder value through developing products and serving markets that can deliver long-term sustainable revenues at higher than average margins.

 

The strategy to achieve this is to expand our Protection & Defence business, and to sustain and develop our strong Dairy operations.

 

Protection & Defence

We have a world leading range of military respirators, developed over a number of years and funded partially by our customers, where we own the intellectual property. Our strategy is to build on this strong position in the military market, initially through our long-term contract to supply the US military, and subsequently through sales and further long-term contracts to other friendly forces. We believe that our existing product range and customer base, together with our credibility and development expertise, will put us in prime position to supply into all accessible global markets.

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We are simultaneously targeting homeland security markets with non-military versions of these products. Our SCBA products have the potential for greater integration with our other respiratory protection products as has been demonstrated with the ST53 product launched during the year. We aim to increase our range of product offerings, widen our routes to market and aggressively pursue further product approvals and certifications in new markets. In addition, successfully integrating our respiratory products with the other CBRN protection products a war fighter requires such as boots, gloves and suits, will allow us to provide a full suite of CBRN protection. These will primarily be through organic growth in the short term.

 

Dairy

Our aim is to maintain our market leading position in the US while growing our European business through our own brand Milk-Rite products. We are also investing in opportunities in developing markets such as China and Eastern Europe, which have the potential to deliver growth in the longer term. Innovative new product offerings and continued world class low cost manufacturing excellence enable this business to sustain a consistent record of profitability and cash generation.

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