Cosalt plc Annual report & financial statements 2008

Business review
UK Marine
The UK Marine business which operates from eleven locations
services the needs of key customers such as P&O Cruises,
The RNLI, Condor Ferries, The MOD and Airbus. Key activities
are Marine Safety Sales and Servicing, Lifting Safety Testing
and Rope Supply.
The sales operation has been reorganised during the year to
focus on key marine supply markets and a strategic client base.
This provides customers with a clearer structure and is well
placed to offer advice and support in the key markets in which
it operates.
The Cruise and Ferry Market worldwide is served from the UK
and supplies the majority of the major cruise businesses with
both marine safety equipment and fibre ropes. A key product
development has been a new lifejacket, the Premier 2010‚
with unique patented features to meet new legislation in 2010.
Being first to market with this product sees us very well placed
to capitalize on sales to new build Cruise Ships and Ferries.
RCL Cruise Lines have placed an order for the new Oasis of
the Seas currently building in Finland and carrying over 14,000
of the new Premier 2010‚ Lifejackets.
Rope sales have continued their year-on-year growth and
we have had a record year for the sale of specialist rope and
mooring systems for the maritime oil and gas sector worldwide,
and is a clear example of UK design and technical expertise
being sold on all continents.
Continental Marine
Operating from five countries: Belgium, Germany, Italy,
The Netherlands and Spain, the Continental Marine business
is achieving the additional growth forecast at the time of
acquisition. Key activities include Liferaft, Lifeboat, and Fire
Equipment Servicing. Key Customers include MSC, Carnival
Cruises, Damen Shipyards, and the Netherlands MOD. With a
strong management team and excellent customer service this
business is well placed to continue its growth.
The business continues to expand its external sales activity,
and is growing its lifeboat and fire servicing activities into new
locations to meet customer needs.
Crewsaver
The Crewsaver Marine Business based in Gosport sells its
own designed products worldwide. Key customers include the
UK MOD, RNLI and the Environment Agency and in addition it
exports Crewsaver products through an established network
of distributors.
The business manages four brands: Crewsaver, Cosalt, Yak
and CSR, with the primary being Crewsaver which supplies
lifejackets, marine safety and sailing equipment. The past year
has seen significant sales of a newly designed commercial
inflatable lifejacket the Sea Crewsader‚ into the Offshore Oil
and Gas market via Cosalt’s Marine division, and these sales
are due to grow over the coming year. Crewsaver continues to
develop new and innovative products and several new ranges
are due to launch in 2009.
Cosalt Marine
Andrew Richards
Managing Director Cosalt Marine
Workwear
The past year for the Workwear business saw the end of
the restructuring process started in 2007 and a clear focus
for the business in areas of Personal Safety and Protection.
Key activities include the design and manufacture of Rail,
Fire, Police and Military specialist clothing. The unit operates
primarily in the UK from sites in Stockport and Barnsley, and
focuses on its key customers in Network Rail, The UK MOD,
and many Fire and Police Authorities, while retaining key
contracts and winning new business during the year. The
business returned to profitability in 2008 and achieved its
budget which was particularly encouraging given the
competitive tender-driven market it operates in.
Summary
With a new management structure in place, the business is well
placed to capitalise on the growth seen in the past 12 months.
With the combination of improved sourcing, new product
launches, new customer contracts and activity expansion by
key customers, we are confident of the outlook for Workwear
in the coming year.
In the Marine Division the development in our product and
service offering in 2009 will come from a combination of the
introduction of new services in existing locations (such as fire
servicing in Spain), the expansion of our product offering and
increased market share.
The Marine Division continues to examine suitable opportunities
in existing and new countries as well as looking to strengthen
its product portfolio through distribution with like minded
companies. The Marine Division is also looking to expand the
services it offers to Ship Owners, Industrial Organisations and
Emergency Services with innovative hire, lease and managed
services offerings, building upon existing management skills
and infrastructure.
Despite the prospect of a reduction in shipping traffic, in 2009
we see an opportunity for the business to expand its market
share through our product and service offering, and we remain
well placed to service our customers as business develops.
Cosalt plc Annual report & financial statements 2008
23