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Aish Technologies Limited

Financial statement for the year ended 30 November 2008.

Report of the directors

The directors present their report and the financial statements of the group for the year ended 30 November 2008.

Principal activities and business review

Aish Technologies (Aish) is a private limited company engaged in the development, manufacture and through life support of advanced electronic and mechanical systems that are used on land and at sea.   The company designs, manufactures and supports products used in surface ships, submarines, fighting vehicles, radar, avionics, communication, electronics and guided weapon systems.  

In addition, Aish has a growing commercial business in support of the maritime, construction and waste management industries.

Financial Overview

Aish achieved another successful year in 2008, which included excellent progress on all its major contracts.  Total revenue at £8.63m increased by 7% (2007: £8.06m).  Headline profit before tax at £557k increased by 27% (2007: £439k).  These results have produced strong cash growth and an improved balance sheet.

Strategy

Aish is an engineering and manufacturing company and its strategy is to continue to
focus on what it does best, but do it better each year.

The company continued to benefit from its long-term focus on gaining strong market positions through being a niche supplier of electronic and electro-mechanical systems, products and services within our markets.

Most importantly, the year has seen us make excellent progress towards the Board’s objective of delivering superior performance as measured through achieving our customers’ expectations.

The progressive implementation of new business information and financial management systems continued during 2008 and is a significant factor in achieving our objectives.

However, innovation and continuous improvement in all Aish processes and activities will continue to be key to meeting customer requirements.

The initiatives associated with Lean Process Improvements that began in 2003, have continued through 2008 and will continue to feature during 2009.

Acquisitions and Joint Ventures will be considered, provided that they meet the business objectives and lead to an overall increase in the value of the company’ s equity and future potential.

Summary

Strategic Objectives

• Develop a strategic niche position in selected markets.
• Compete by developing intellectual property.
• Maintain a culture of continuous improvement.
• Strengthen customer relationships.

Business Implementation

• Define and leverage core competencies.
• Identify market and technology opportunities.
• Select and quantify strategic R & D investments.
• Continue to support change and continuous improvement.
• Drive performance and rectify anomalies.
• Promote synergies / alliances to complement or extend market positions

Operating Costs

During 2008 Aish continued its journey along the path of Lean Process improvements in all areas of the business.   The success achieved since our journey began in 2003 has been impressive and has contributed to a significant reduction in cost of sales.

Research and Development

Investment in the development of innovative high quality products is central to the company’s growth.   Aish strategy of strong investment in product development is a major contributor to sales growth over the long term.

Capital Expenditure

Aish has continued to invest in new technology to ensure that it remains at the forefront of development and manufacturing innovation.

Internal Controls

The Board has established procedures for financial controls and disaster recovery.   These procedures are reviewed and tested on a regular basis.

2009 Outlook

Aish remains in good financial condition with an improving balance sheet and we are confident of continued progress in 2009.

The defence market continues to be buoyant.  However, we share our frustration with others in the defence industry over UK government refusal to include defence as a part of its financial stimulus of the UK economy through the infrastructure initiative programme

Our commercial business activity continues to progress with substantial growth forecast for 2009.

Aish is on track to achieve sustained underlying performance in 2009 and beyond.

Results and dividends

The profit for the year, after taxation, amounted to £384,354.  Particulars of dividends paid and proposed are detailed in note 11 to the financial statements.

Financial risk management objectives and policies

The group finances its operations through a mixture of retained profits, fixed assets under finance leases and various items, such as trade debtors and trade creditors that arise directly from its operations.   The group’s exposure to interest rate fluctuations on its borrowings is managed by regular review with the group’s bankers.

Directors

The directors who served the company during the year were as follows:

N Barnes
E Bates
R Coley

Directors’ responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year.   Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice.)  The financial statements are required by law to give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that year.   In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business

The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the group and enable them to ensure that the financial statements comply with the Companies Act 1985.   They are also responsible for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the directors are aware:

• there is no relevant audit information of which the group’s auditor is unaware;  and

• the directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Auditor

Grant Thornton UK LLP, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with section 487(2) of the Companies Act 2006 unless the company receives notice under section 488(1) of the Companies Act 2006.

ON BEHALF OF THE BOARD

E Bates
Managing Director
21 April 2009.