AVESCO GROUP PLC ANNUAL REPORT 2008 07
www.avesco.com
ChiefExecutive’sReview
IanMartin
Our investment in quality people, geographic spread and a modern range of
rental equipment will differentiate us from our competitors as we continue to
develop the Group.
We have already taken substantive actions and implemented a strategy to manage the Avesco Group
successfully through these uncertain times.
REVIEW
Our priorities are: > CREATIVE TECHNOLOGY
• To continue to increase our market share and grow our revenue Revenue £54.0m
• We endeavour to remain highly competitive on pricing and are determined to retain and develop our
(2007:£17.1m)
customer base. Tradingprofit/loss £0.6m
• We continue to build upon our international business in key territories such as the Far East and the
(2007:lossof£0.1m)
Middle East. Operating profit £0.5m
• We seek opportunities to develop into new markets with partners such as CT Touring.
(2007:£0.4m)
• Using the benefits of our global network, we can quote local rates to multi national customers.
• As some customers scale back their own investment plans, we can offer a viable rental alternative.
> FULLSERVICE
• In comparison to certain of our distressed competitors, we can offer customers the comfort that they Revenue £20.6m
will be engaging a financially sound supplier with the resources to see their event through to a (2007:£7.3m)
successful conclusion.
Tradingloss Lossof£0.8m
• Increased cash generation
(2007:£nil)
• We are managing our cost base tightly and will continue to do so. Selective headcount reductions
Operating loss Lossof£0.9m
have been made across the Group in non client-facing positions and discretionary expenditure
(2007:£nil)
reduced or eliminated.
• Following significant investment in our rental stock and operational delivery capability over the last three > BROADCAST SERVICES
years, we are able to reduce substantially our level of capital expenditure without compromising our
services or product offering.
Revenue £20.2m
(2007:£8.8m)
• As well as reducing capital expenditure, we will continue to look for opportunities to dispose of
older equipment.
Tradingprofit £1.7m
(2007:£1.2m)
• We are implementing upgrades to our information technology systems which will drive efficiency
improvements.
Operating profit £7.5m
(2007:£2.1m)
• We have also placed a renewed focus on the management of our working capital.
In the current environment it is important that we carefully manage our cost base to ensure that we continue to
have the financial flexibility to improve the business. We are focused upon maximising cash generation whilst
maintaining high customer service.
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