AGM Statement

10 Mar 2006 12:30

DawMed Systems PLC10 March 2006 10 MARCH 2006 DAWMED SYSTEMS PLC ("Dawmed" or "the Company") AGM STATEMENT At today's Annual General Meeting of DawMed, the medical devices company whichdesigns, manufactures, sells, distributes and services healthcaredecontamination equipment used by Secondary Care NHS Trust hospitals, privatehospitals and Primary Care practitioners and clinics, the Executive Chairman,Kevin Gilmore, commented: KEY POINTS: •Strategic realignment to benefit from higher sales volumes, margins and profitability; •Four new products added to portfolio - including the world-first automatic AERclens; •Beneficial disposal of SSD element for £100,000 - eliminating a loss making entity; •Lesser dependency now placed on NHS business; •Strong sales stream continuing from Wassenburg WD440 and Clinic; •Reinforced drive into the consumables market with detergent and disinfectant chemicals; and •Continued expansion of the already profitable Support Services Organisation. "Your Company has beneficially refined its strategy and tactics since the AGMlast year and, although some changes were flagged in my Chairman's Statement inthe Report and Accounts for the year ending 30 September 2005, the extent of thechanges, planned for some time by your Board, is substantial. That Statementreferred, inter alia, to the continued monitoring of the SSD largewasher-disinfector-dryer (WDD) machines element and you will be aware of thesale of the assets comprising the Intellectual Property Rights and Know How ofthe SSD range of machines to BMM Weston Limited for £100,000 gross, announced inJanuary this year. "The achievement of ceasing to sell these large SSD machines, whilst retainingthe profitable servicing thereof for all existing customers, has released thehigh levels of working capital they required, eliminated the net lossesattributable to manufacturing them, provided additional funding to develop othermore rewarding opportunities, produced an extraordinary profit contribution andwas the final part of the new strategic and tactical plan. "The Company has re-positioned itself into higher volume, higher margin, higherprofitability areas of business, which are far less dependent upon the NHS andwhich offer greater potential for export, firstly into Europe and eventuallyworldwide. "The new strategy is supported by the largest range of products ever in theCompany's history, and includes no less than four new products to add to theexisting portfolio, of which one, the "AERclens", represents the only one of itstype in the world so far as the Directors are aware. "In addition to the space-saving original Wassenburg WD440 and the DawMed"Clinic" bench top machines, which continue to sell well, the Company haslaunched a new Wassenburg Model 300 Storage/Dryer Cabinet which has significanttechnical and economic advantages for customers, a new Wassenburg WD440PT'pass-through' version of the original, the all-new DawMed "AERclens" automaticsystem to decontaminate small flexible and rigid nasendoscopes for ENT (Ear,Nose & Throat) consultants in hospitals, clinics, consulting rooms et al and,finally, an exciting tactical move into the supply of detergent and disinfectantchemicals generating additional immediate and long term high quality revenues. "It is anticipated that a further beneficial consequence of the adoption of theCompany's new strategy will be the continued expansion of the already profitableSupport Services Organisation by providing those services to the increasingvolume of our equipment in the market place. "The overall effect of the realigned business with its lower level of dependenceupon the NHS is the ability to offer a wider range of decontamination equipmentwith customer appeal on economic as well as quality grounds, a reinforced driveinto the consumables market with detergent and disinfectant chemicals, anexpectation of higher margins and net profits from both equipment andconsumables, a consequential anticipated increase in the turnover andprofitability of the already successful Support Services Organisation, anopportunity to lower costs and the likelihood of exporting firstly to Europe andthereafter, worldwide." All resolutions proposed at the Annual General Meeting were duly passed. --ENDS-- Enquiries: DawMed Systems plc Tel: 01789 740 010Kevin Gilmore, Executive Chairman Beaumont Cornish Limited Tel: 020 7628 3396Roland Cornish Bishopsgate Communications Limited Tel: 020 7430 1600Dominic BarrettoScott Robertson For further information please visit DawMed's website at www.dawmed.com This information is provided by RNS The company news service from the London Stock Exchange