Company Information

Introduction

Mount Engineering Plc (Group) was established in April 2007 for the purpose of acquiring Mount York Limited. The acquisition of Mount York Limited marks the first step in implementing a strategy to grow the Group, both by selective acquisition and from the continual expansion of the product range.

Mount Engineering Plc has three operating subsidiaries; Redapt Engineering Company Limited, Hi-Flow Valves Limited and Raxton Limited. All Mount operations are wholly based in the UK.

Redapt and Raxton, both established in the 1970s, specialise in the manufacture and supply of thread converting Adaptors and Reducers that are "Ex Certified", which means that they have been certified for use in potentially explosive or hazardous areas. The products of both companies provide a method of insulating and protecting electrical wiring and installations in hazardous areas such as oil refineries where a stray spark from an electrical installation could have severe consequences. The requirement for thread converting components arises due to the diverse range of thread specifications incorporated into equipment used in hazardous areas. Hazardous area certification is intrinsic to the market that Redapt and Raxton sell to.

Hi-Flow was established in 1994 and is engaged in the stocking, distribution and merchanting of industrial valves and actuators to the oil, gas, petrochemical, process and related industries throughout the world.

The key attributes of Redapt, Hi-Flow and Raxton are that they are well established companies within their industries, each having a strong brand name and recognition for quality products. The major end user market for all three subsidiaries are the oil and gas and petrochemical industries, however they also serve a range of other industrial markets including mining, waste water and pharmaceuticals.

The Directors and Management of Mount have extensive experience over many years in the management and development of both private and listed companies in a number of sectors.

Strategy

The strategy of the Group is to develop and promote strong brand names that manufacture and distribute quality engineered products via excellent customer service. The Group will continue to focus on products that generate high gross margins which in turn are expected to deliver superior operating profit and strong cash flow.

The Group also intends to pursue a selective acquisition strategy by looking to acquire other specialist engineering manufacturing and distribution companies where opportunities arise to increase its product range, brand profile and widen its customer base.

Directors

Colin Ainger FCCA
Non-Executive Chairman

Colin is a certified accountant with over thirty years experience working in the oilfield services sector. He joined Expro International Group PLC in 1982 as Group Chief Accountant, and was appointed to the board as Group Finance Director in 1992 as part of a management buy out team. The group was successfully floated on the Official List in 1995. Colin took on the role of Corporate Development Director in 1997. In his last five years before retiring in 2006, he was also responsible for the Group's health, safety and environmental department.

Colin is a member of both the Remuneration and the Audit Committees

David Stanham B Com Hons
Chief Executive

David has held senior Board positions in both the UK and overseas where he was HR Director and Deputy Managing Director within TI Technologies (South Africa) Pty Ltd, a subsidiary of Siemens. He was also Chief Executive of Morhot Galvanizing Pty Ltd during which time he oversaw the restructure of the company. In 2004 he was appointed as Managing Director of Accurate Controls Ltd an engineering instrumentation business and was the Managing Director of Mount (York) Ltd, the holding company of Redapt, Raxton and Hi-Flow Valves, before being appointed as Chief Executive Officer of Mount Engineering Plc.

Colin Davies FCCA
Non-Executive Director

Colin has acted as Chief Executive Officer and Finance Director of both public and private companies in a range of industries including food, engineering, marketing and textiles. Colin is also Non-Executive Director of several private companies.

Colin is Chairman of the Audit Committee and the Senior Independent Director

Alan McClue BA (Econ) MSc
Non-Executive Director

Alan commenced his career with Mobil Oil Corporation in the early 1970s followed by a period with Pegler Hettersley PLC where he was responsible for the manufacture of OPC valve products. He has acted as Chief Executive of several public companies including Petrocon Plc (oil field rentals and OPC valves) and Porter Chadburn Plc ( engineering sector) and has been a Director of GM Firth Plc (metal stockists). He was Chairman of TI Technologies (South Africa) Pty Ltd - Africa's largest printed circuit board manufacturer.

Alan is Chairman of the Remuneration Committee

Corporate Governance

The Audit Committee

The Audit Committee comprises C. E. Davies (Chairman) and C.P. Ainger and meets formally twice a year, with additional meetings as required. The primary responsibility of the Audit Committee is to review the Company’s annual and interim financial statements before submission to the Board for approval. In addition, they review and monitor the Auditor’s independence and objectivity and the effectiveness of the audit process, taking into consideration relevant U.K. professional and regulatory requirements. The committee also recommends the appointment of, and reviews the fees of, the external Auditors.

The Remuneration Committee

The Remuneration Committee comprises W. A. McClue, (Chairman) and C. P. Ainger and meets at least twice a year. The Remuneration Committee, on behalf of the Board, establishes appropriate short and long-term total reward packages for the executive Director and other Group and subsidiary senior management. Remuneration for the executive Director normally comprises basic salary, bonuses, benefits and stock options. The Remuneration Committee makes recommendations to the Board with regards to the granting of stock options and determines performance conditions that must be satisfied before options can be exercised.

The Remuneration Committee will also satisfy itself that good employment practices apply to all Group employees through the relevant subsidiary management structures.

Shareholders

The Board places great store in maintaining good communications with its Shareholders. It aims to do this by meeting with them as often as is required, by means of feedback from the Group’s nominated advisor following such meetings, and by the issuing of yearly and half-yearly announcements regarding financial and operating performance. All interim, preliminary and final results, together with any other press releases are maintained on the Group’s web site.

Advisers

Company Documents

"The information below is being disclosed for the purposes of AIM Rule 26 and was last updated on 05 March 2010."

• Mount Engineering plc has not applied or agreed to have any of its securities (including its AIM securities) admitted or traded any other exchanges or trading platforms.
• There are no restrictions on the transfer of Mount Engineering plc's AIM securities.
• Incorporated and registered in England and Wales with registered number 6231396.

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