Resource Audit (GRANT).

Tangible:

Financial

2004

Approx 10% of worldwide market

Growth since downturn 2001/2002

Sales

1999

2000 +$15.7M

2001 -$23.3M

2002 -$4.4M

2003 +$3.8M

2004 +$10.4M

2005 -$0.7M (F)

2006 +$8.7M (F)

EBITDA

1999

2000 +13%

2001 -18%

2002 -8%

2003 +7%

2004 -1%

2005 -5% (F)

2006 +3% (F)

Sales fell markedly in 2001 at time of industry strategic shift

Sales have grown in last 2 years and with a small reduction forecast next year are then expected to rise again.

EBITDA has rose in 2003 but fell in 2004 when XTech bought out Morgenthaler. Why does the EBITDA change so much in relation to sales. Where is the margin going?

Physical

Own factory

US based – but becoming a disadvantage

Offices worldwide

Intangible:

Technology

Unique EMI technology

Intellectual property/patents?

Flexible equipment – customisable products

Innovative employees with flexibility

Reputation

Strong established customer/supplier relationships

Repeat buying high

Good reputation in industry

Culture

Family culture

Close relationship between employees & owner

Well motivated?

Loyal

Human Resources:

Skills/Know-how

Specialised employees

Skilled in product

Communication

Appears good – employee/owner

Collaboration

Likely to be good given culture and communications

Motivation

Appears good but unable to quantify

Key:

Strengths

Concerns

Identified resources are intangible and as such difficult to value and may be used in more than one area simultaneously (leverage). Also, as intangibles they will be more difficult to replicate and substitute and will be more rare. This is where XTechs competitive advantage lies.