Business Review

2009 Overview

Trading for the year as a whole was difficult in comparison to the previous year especially in the first half. It is especially pleasing to have delivered the stronger second half performance predicted at the interim statement in February without cutting back on our investment in new product development – the lifeblood of future growth.

Swift action has been taken to reduce the cost base in conjunction with tighter integration and realignment of the businesses to those customer market sectors and territories where we can re-establish growth of sales and margins.

Since November we have begun a longer programme of transition which is aimed at responding to and capitalising on the current global economic turmoil through focusing the business on defendable higher margin market niches. The first phase of the transition process, which includes significant investment in senior management talent, structural reorganisation, site consolidation and regional expansion, is now well under way. It will take a further six to twelve months before we begin to see the fruits of this investment. The global Security and Surveillance market is still growing and the supply base is fragmented – a situation which presents many exciting opportunities for the Group.