Operating profit before exceptionals was £2.6 million, a year on year increase of 8 per cent, on sales 1 per cent lower at £54.1 million. Operating profit before exceptionals in the second half of the year was £1.0 million, compared to £1.2 million in the second half of 1999.

Performance in the minerals processing and industrial rubber business units was largely offset by lower sales and profits on major process technology equipment contracts.

The programme announced a year ago to refocus and simplify the Linatex business on its core specialty rubber capability and profitable sales opportunities was completed ahead of schedule, with the closure of the final site in Montreal in February 2001. During the year, the number of operating sites reduced from 25 to 13, headcount by 128 and annualised costs by over £3.0 million. Additional headcount reductions in excess of 50 are planned for the first quarter of 2001. Exceptional restructuring costs of £2.3 million were charged in 2000 to complete the programme, in line with previous estimates.

In addition, Linatex has decided not to pursue major new process technology equipment contracts following the disappointing financial performance in the second half of the year; this unprofitable part of the business will be phased out over the coming months.

The new £1.5 million rubber conversion and mixing plant in Malaysia was commissioned during the year; this provides lower cost and more consistent quality feedstock for the Linatex sheet manufacturing and moulding process.

A £4.0 million continuous rubber sheet press is to be installed by the end of 2001, to reduce operating costs further and enable Linatex sheet to be produced within tighter thickness tolerances for new applications and with enhanced bonding capabilities.

A tragic accident occurred in late December when an aircraft crashed into the Linatex facility at Yateley, Hampshire, UK, killing all five on board. Part of the building suffered structural damage and some machinery was destroyed causing short-term customer service issues.

Linatex rubber is made from natural latex coagulated with various chemicals to impart its exceptional abrasion resistant properties. Pictured are red Linatex rubber and orange Linatrile, which gives good abrasion resistance in the presence of oils and chemicals.