In a presentation to investors, Millbrook Scientific Instruments outlined its vision for growth, and present key financial and business goals
In a presentation to investors, Millbrook Scientific Instruments outlined its vision for growth, and present key financial and business goals.
The company discussed its plans to expand its existing activity in the rapidly growing nanoscience market and its intention to become a £10 million turnover group through an acquisition programme.
Millbrook currently operates in the surface science sector and manufactures a unique scientific instrument called the MiniSims.
MiniSims provides a user-friendly way of carrying out surface chemical analysis of solid samples and the analysis of sublayers at nanometre depths.
Chemical maps of surfaces can be obtained and these are valuable both for quality control and research.
MiniSims occupies a distinct position in the market through its compactness, robustness, and mobility and is priced competitively compared with other surface analysis instruments.
Aquila Instruments, a subsidiary company, was acquired by Millbrook in March 2003.
Its core product is the NKD series of spectrophotometers, used for thin film measurement (down to the nanometre level) mainly in the fields of optics and optoelectronics.
These instruments have a major advantage over the competition in their ability to measure transmittance and reflectance simultaneously and from these data, film thickness, refractive index and extinction coefficient can be derived.
Thus the group's product range consists of desk-top instruments in the price bracket £50,000 to £150,000.
This means they are affordable by laboratories both for quality control as well as research across a wide range of applications.
The group intends to extend its range organically and by acquisition within these parameters.
Financial highlights from the presentation. Management has set the objective of achieving EBITDA in excess of £1 million from the core business by 2006-7.
Realistic sales targets set of £1.5 million in 2004/5, £2.8 million in 2005/6 and £3.8 million in 2006/7.
These are based on 200 prospects at present.
These figures anticipate an increase of £1.3 million generated by new product developments in 2006/7.
Intention to maintain gross margin above 60%.
Fixed costs increase to be limited to £100,000 over the period.
Consideration of a move as soon as appropriate from Ofex to the Alternative Investment Market (Aim) to accelerate growth by acquisition.
Currently the company has minimal borrowings and £200,000 cash.
Business highlights from the presentation.
Development of new products for both Millbrook and Aquila already well advanced.
Continued success in exporting instruments to Asia and improved penetration of the US and European markets.
Planned expansion of the Millbrook group through future acquisitions.
Vision is focused particularly on the nanoscience sector, a high growth sector attracting large amounts of government money.
