Millepede Business Review 2009 - 2010

31 August 2010

1008 MPD Year End Commentary 09 10

These are challenging business times so we can be reasonably happy at what we have achieved overall this year. Though our base is still small, in the light of the economic climate an overall 50% sales growth with an almost similar growth in gross margins can be considered a good performance. 

Both major operational subsidiaries in the UK and USA contributed almost equally to the growth, but the consistent development of the USA year on year means it is now almost double the size of the UK business.

USA can thank the new Mille-Com division (www.mille-com.com) based in Florida for a major part of that growth. This division does handle some of the existing accounts and products but their work in developing new sectors and new areas has been a major contributor as well. We expect even great results from this new sector and business in the coming year.

UK also showed close to a 50% increase as well, although it should be said this only brings us back to the levels of two years ago. But this has been achieved without the benefit of any significant military business which acted as the base two year ago. The Type 45 Destroyer projected demonstrates the unique nature of our technology, a simple part of the Fibre Optic backbone for the communication systems the Mille-Tie ensures the system can survive an explosion and we are the only tie to receive approval from the Institute of Naval Medicine and the British Ministry of Defence. So it comes as no surprise we have been chosen for the latest British Aircraft carriers. No one else offers such advanced technology in cable management than Millepede.

But not all has been positive we have had our share of challenges, we have a lot of tool development to do to maintain the quality and performance of our production, and look at new ways to increase capacities and reduce costs, especially in this current economic environment. We also have the patent infringement issue in the UK where with the help of false statements by the BBC, and those involved with the infringing product we have had to continue to confirm our rights and legal position. The UK patent office has upheld the legitimacy of our patent on two occasions now, but we finally need to confirm this is court to clear this entirely.

Steady and prudent use of resources has maintained the viability of the company and operations, and the sector leading performance of our technologies has allowed a slow but steady growth. We intend to maintain the health of the business in the coming year and continue to exploit the unique nature of our technologies.

John Butterworth

CEO Millepede Operating Companies. August 2010.