Directors' Report- Review of Developments

The Directors are pleased to report that, in this year of recession, the company has performed well and has maintained its turnover with very satisfactory profit.

In late 2008 the Company recognised that all departments would need to be examined for their efficiency and also that maximum attention would need to be paid to the demands of clients who would themselves be reacting to the economic situation. The focus was on meeting required timescales without compromising quality and introducing incentives into the charging structure. Considerable progress has been made with all these objectives.

Changes in the pharmaceutical industry as a result of the recession were monitored and new opportunities were identified which following the necessary investment in equipment, staff and training has shown results. This expansion building on the company's existing expertise is thought to produce better and quicker returns than launching into new areas, and is expected to continue during the next financial year with particular interest in very low levels of contaminants in all processes involved in the manufacture and research of new and existing medicines. Capital investment has been earmarked for this.

The coming financial year is expected to continue to be challenging but the directors are confident that the policy of high quality and personal service will result in a strong performance with sales and profit maintained.

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