Ann: Half Yearly Report and Accounts , page-6

To be honest Firsova, I didn't think you'de like it. No real new info, or proven profit to speak of. The second announcement of the AL80 was however quite positive as it was starting to ring alarm bells even with me. It gives us some indication as to the companies tolerance for being ginned around, about the right level I reckon. You give a partner a fair shot at acheiving what they have promised, but then rule a line when a trend of non performanse is apparent.

Something that has been raised a number of times but I have not comented on is the manufacturing work being done by an afiliated company. This couldn't worry me less as I am in the same sittuation. We manufacture specialised products for an associated company. Ourselves and our client know each other and our respective requirements perfectly. We always supply excellent value for money knowing this is a sensitive relationship in the eyes of shareholders, and problems are quickly resolved as the two entities have a "friendly" working relationship. there is no need to build in risk of difficulties or conflict, and all work is do and charge with no extra expense wasted on quoting and administration. The client often liases directly with the staff doing the work, and R&D is done in the workshop as well as in the office on CAD. The arrangement produces excellent results and a very fluid design process that cannot be replicated by sending sets of shop drawings out for tender