Trading for the year-to date has been mixed, with the more mature markets such as the UK, US and Australia being slower to gather momentum, while the developing markets have been buoyant. Pricing in the majority of our markets around the world has been stable, although there continues to be some pressure in the UK.
First half profits will be adversely affected by approximately £0.7 million, due to a combination of advisory costs associated with the recent bid approach and the recruitment costs relating to the new Chief Executive Officer. In addition, currency movements are continuing to have an adverse effect on both sales and profits.
The new Cutisin capacity is now fully on line and operating effectively; further capacity will be installed in Australia during the second half and, following a difficult period, the introduction of an improved range of products from our Scottish facility is gathering pace.
Peter Page, the new Chief Executive, joins the group on 1 June 2007.
The Board remains confident about group prospects.