I am pleased to report that our company delivered a strong performance
in 2001 and achieved its business and strategic objectives for the
year. Turnover increased to £1,603 million, up 13 per cent over
2000 at constant exchange rates. Earnings per share before exceptional
items and goodwill amortisation were 27.2 pence, a growth of 10
per cent at constant exchange and 21 per cent at actual exchange
rates. The Board is recommending a final dividend of 4.75 pence
per share, giving a full year dividend of 7.10 pence per share,
a growth of 11 per cent.
In July 2001, pursuant to the resolution passed by the Annual General
Meeting in May, our company changed its name to Amersham plc. Our
businesses followed suit on 15 October, changing their names to
Amersham Health and Amersham Biosciences. We are now clearly seen
as one company, working through distinct but complementary businesses
to enable new discoveries in molecular medicine. On 17 October,
Chief Executive Bill Castell rang the closing bell on the New York
Stock Exchange to celebrate Amersham’s new identity.
As our way of marking the company’s new identity, the Board was
delighted to approve an option scheme – Options for All – under
which all employees have been granted options for 1,000 shares in
Amersham plc. The option price is £6.35 per share. The first date
on which the options can be exercised is 15 October 2004 and the
option period expires on 14 October 2007. The employee share options
are a tangible expression of the Board’s sincere appreciation for
the contributions of every employee to the company’s financial success
and scientific achievements.
Our robust strategy stood us in good stead under the challenging
economic environment in 2001 and we delivered on expectations, as
both of our businesses achieved double-digit sales growth. Sales
in North America were up by 13 per cent to £768 million and sales
in Europe were £392 million, up 12 per cent. The Japanese economy
remains troubled but despite this, our sales in Japan grew by five
per cent to £291 million. These operations are important contributors
to cash flow and profits.
In view of the unfavourable market conditions on the NASDAQ, our
plans for a partial flotation of Amersham Biosciences remain on
hold. As the majority owner (55 per cent) of Amersham Biosciences
we have confirmed that we have a long-term, strategic interest in
this business. The minority stake (45 per cent) held by Pharmacia
Corporation does not unduly influence our running of the business
and Amersham Biosciences remains a key part of Amersham plc’s strategy.
After close to 11 years of outstanding service, Ron Long retired
from the Board this year, having stepped down as Chief Executive
of our Biosciences business a year earlier. Ron brought passion
and business acumen to the business he did so much to build; and
his pithy comments enlivened our board meetings. He retires with
our deeply felt gratitude and best wishes for the years ahead.
I would like to express my admiration for Amersham’s actions in
the aftermath of 11 September. In the United States, Amersham staff
went to extraordinary lengths to maintain the supply of critical
medical and research products to the people who needed them. The
company acted resolutely to protect employees who were stranded
when flights were cancelled and got them home to their families.
On 12 September, Amersham set up a $500,000 disaster relief fund
to aid families near our sites who were affected by the tragedy,
a fund which was increased by a further $30,000 in voluntary contributions
from Amersham people across the world. Importantly, these funds
were dispersed by the end of the year.
On behalf of the Board, I would like to thank the employees for
all of their hard work during the year. Our company is indeed fortunate
to have such a committed and highly qualified team of people at
all levels in the organisation. This Annual Report shows a company
that is solidly placed at the forefront of molecular medicine. Actions
undertaken at the beginning of 2002 – Amersham Health’s groundbreaking
pharmaceutical research collaboration with Pfizer, and Amersham
Biosciences’ acquisition of two US companies adding innovative filtration
technologies to its world leading separations business – underscore
the steadily building momentum. With two strong businesses that
are performing well, growing their expertise and strengthening their
management skills, we expect our success to continue in 2002 and
beyond.
Richard Lapthorne
Chairman
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