Annual report 2005 - Xeikon
Annual report 2005 - Xeikon
Annual report 2005 - Xeikon
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CHAIRMAN’S STATEMENT<br />
It is a pleasure to present Punch Graphix’s first <strong>Annual</strong><br />
Report and Accounts as a listed company following its<br />
admission to AIM in May <strong>2005</strong>.<br />
I am delighted to <strong>report</strong> that our performance for the<br />
year exceeded our expectations at the time of the<br />
flotation in almost every respect.<br />
Turnover for the year to 31 December <strong>2005</strong> increased by<br />
46%, operating profit by 58%, and profit before taxation<br />
68%. Earnings per share rose 51%. Sales of the <strong>Xeikon</strong><br />
products, including the industry leading <strong>Xeikon</strong> 5000<br />
model, showed good growth, both in the European and<br />
North and South American markets and throughout<br />
<strong>2005</strong>, sales of both the basysPrint and OEM products<br />
distributed by Agfa also showed promising growth.<br />
In Asia, the uptake of digital printing technology has<br />
been slower, with customers still preferring to use more<br />
traditional printing methods. However, this has resulted<br />
in stronger demand for our pre-press technology in<br />
this region as customers are able to use cheaper<br />
consumables and therefore enjoy the benefits of much<br />
reduced production costs over time.<br />
As <strong>report</strong>ed at the interim stage, the Group is focused on<br />
improving efficiency across all of its operations. Excellent<br />
progress was made during <strong>2005</strong> and this remains an<br />
ongoing programme and an important element of the<br />
Group’s strategy for future profitable growth.<br />
The flotation of the Group raised €28.3 million net of<br />
expenses which is being used to develop its marketing<br />
infrastructure, to expand its direct sales organisation into<br />
key countries and to enhance its product development<br />
programme. During the year, the group invested<br />
€7.9 million in plant and machinery in order to support<br />
its expansion programme and opened new sales offices<br />
in China, Canada and Brazil. The new manufacturing<br />
facility in Shenzhen, China, outlined in the interim<br />
statement, will begin assembling its first products,<br />
in 2006.<br />
Dividend<br />
As set out in the Company’s AIM Admission Document,<br />
it is the Board’s intention to pay an aggregate annual<br />
dividend representing 30 per cent of the Group’s<br />
consolidated profit after taxation and minority interests,<br />
split as to one third / two thirds between the interim and<br />
final dividends. The Board is therefore recommending a<br />
final dividend payment of 2.35 Eurocents, in line with this<br />
policy, to be paid on 9 June 2006 to shareholders on the<br />
register on 12 May 2006.<br />
Chief Executive Officer<br />
Management and staff were all shocked by the sad and<br />
unexpected death of Dick Tilanus, the Company’s CEO,<br />
in January 2006. Dick joined the Punch International<br />
Group as CEO of the Graphic Solutions Division in<br />
November 2004 and led the formation of Punch Graphix<br />
and its subsequent flotation. The performance of the<br />
group in its maiden year, detailed in this <strong>report</strong>, is a<br />
testament to Dick’s managerial skills. He was an<br />
inspiration to us all and will be sorely missed.<br />
The process to recruit a new CEO was completed on 5<br />
April 2006, with the announcement of the appointment<br />
of Ben C. Van Assche.<br />
Ben C. Van Assche was previously CEO of Cytec Surface<br />
Specialties nv and a member of the Executive Committee<br />
of the Cytec Group. Before that he was a member of the<br />
Executive Committee of the UCB Group, responsible for<br />
the chemical sector.<br />
We are extremely pleased to welcome Ben to Punch<br />
Graphix. Ben’s experience will allow us to continue with<br />
our stated strategy and he will bring further focus to our<br />
internal and external global growth ambitions.<br />
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