Focusing on operational excellence
We continue to focus on improving all aspects of our business through a range of actions including: process efficiencies, value pricing, optimising the business mix, cost competitiveness, designing products for low-cost production, reducing inventory and improving supply chain management.
Internal processes improved, taking cost out of the business
Lean manufacturing programmes and just-in-time projects being implemented at a number of sites
Low-cost sourcing initiatives continue to drive down cost of current and new products
Strengthening market positions through innovation
We invest around 6–7% of sales each year in R&D in order to maintain our market-leading positions. We work closely with customers to develop solutions which are tailored to their specific requirements, based on standard platforms customised through high added value applications engineering. Much of our technology is proprietary and protected by patents or process know-how. New products and applications may be developed in house, by acquiring bolt-on product lines or by collaboration and licensing agreements for proprietary technology in partnership with universities and other institutions.
On a reported basis, expenditure was £58.2 million in 2009, or 7% of sales
A significant number of new products were introduced during the year throughout the group
Increasing regional expansion with a focus on emerging markets
We seek to grow our businesses around the world, with particular emphasis on emerging markets such as China, India and Latin America. We continue to establish sales and support facilities in these regions so that we are able to support our global customers wherever they are based.
On a constant currency basis, sales to China in 2009 grew by 16%
Recent acquisitions provide an opportunity to develop our channels globally, particularly in emerging markets
Investments in infrastructure and service channels to support our customers globally
Growing existing businesses through acquisition
We seek to enhance the growth potential of our businesses by pursuing an active but disciplined approach to acquisitions, focusing on businesses which are strong players in specific application areas where there are significant barriers to entry.
Invested a total of £26.6 million in two acquisitions in 2009:
Lochard, a company based in Australia providing environmental noise and air quality monitoring services
MicroSafe, an Italian supplier of microbial detection and monitoring products to global pharmaceutical manufacturers
Building our presence in key strategic growth areas, both organically and through acquisition
We aim to grow our existing businesses organically by developing new products as well as pursuing opportunities for growth in new markets, such as nano-technology and life sciences. Our investment in R&D enables us to maintain our leading market positions and acquisitions are targeted at both existing and new markets.
Product development programmes focused on building positions in our key market segments
Acquisitions made further strengthen our positions in the pharmaceuticals and life sciences market and the growing environmental monitoring market
Aftersales, service and consumables are an important part of our business, representing 27% of sales in 2009, compared with 24% in the prior year
