Our strategy to deliver sustainable organic growth in attractive markets with well-protected positions is described below:

Technology with direct impact
We design and manufacture precision instrumentation and controls which have a direct impact on end user customers' performance. Our products add value for the customer by improving product quality and performance, increasing productivity and yield and reducing downtime and wastage. For example, Malvern's particle size analyser helps toner manufacturers to achieve maximum print quality from colour printers and copiers whilst minimising product cost and environmental impact.

Process critical
Our products are critical to the integrity and continuity of the customer's process. For a relatively small capital investment, our high value added products provide short paybacks and hence financial benefit to customers. For example, use of BTG's Duroblade ceramic-tipped coating blade results in rapid and substantial savings to paper manufacturers through improved paper quality and reduced downtime. In other areas, our products help to meet stringent safety or quality requirements, such as the contamination detection systems supplied by PMS which are used to ensure product integrity by checking for unwanted particles or molecules in the manufacture of semiconductors and pharmaceuticals.

Barriers to entry
We have a wide range of core technologies, many of which are protected by patents. Working closely with individual customers, we can apply these technologies to create application-specific solutions tailored to the customer's exact requirements. These solutions are based on standard products with technology platforms customised through high added value applications engineering. In a recent example, Beta LaserMike's engineers have helped a major optical fibre manufacturer to develop a process for measuring extremely fine samples of a new type of photonic component which improves the signal-carrying capacity of the fibre.

Sustainable growth
Our precision instrumentation and controls can be found in most industries. We are able to grow sales in our markets by developing new applications based on our existing technologies which enable customers to produce new or enhanced products. For example, Fusion's UV process, originally developed to "dry" brightly-coloured inks for graphics purposes, is now being developed to create weather-proof coatings for vehicles (see feature article for further details). Exposure to market cyclicality is limited, as the majority of our sales are to customers who are looking to upgrade existing processes at low cost rather than install new capacity and many of our customers make repeat purchases. We also benefit from exposure to our customers' end markets, many of which are growth markets.

Engaged management
Key to the company's success is its operating culture. This is based on autonomous business units with clear and focused management teams, enabling opportunities to be identified and evaluated and new products brought to market quickly. Outsourcing of manufacturing means that businesses focus on core competencies and adding value for customers. High calibre employees, including applications engineers and technicians, work closely with customers to develop applications which deliver tangible value for them.

For more information on how customers are using our key technologies and applications, see our technology overview

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