The last year has been one of change and challenge, and we are building on the firm base of our IT contracting business and repositioning ourselves to take advantage of the many exciting opportunities that await us as a market leader in the field of IT consultancy.

My appointment to the Board as Non-Executive Director came in early March but following Chairman David Sugden’s resignation, I was appointed Non-Executive Chairman of the company. I was formerly with Unilever Computer Services and, more latterly, at EDS in the role of Executive Vice President, so I understand the industry and will be looking to exploit my talents as MSB develops. Peter Flaherty, formerly Deputy Chairman of MSB, is appointed Chief Executive. Together we thank David Sugden for all his hard work over the past year and look forward to finishing the restructuring process he initiated.

Following the interim dividend of 4.2p, paid on 31 October 1999, the Board of Directors has recommended a final dividend of 8.3p making a total for the year of 12.5p per share. This maintains the dividend in line with 1999.

There is no question that the past year has been an extremely testing one both for the employees and shareholders. We have seen changes in our market and the way in which we operate. In financial terms the current year will be adversely affected by the continuing soft market and the mismatch between the current cost base and anticipated volumes of business. Remedial action is underway with a more positive outlook for the second half.

The year overall will be another building year which will set us up to take advantage of the IT boom that is expected with the rapid growth in internet usage and e-commerce. To maximise this opportunity we expect to enter into a number of strategic partnerships and alliances with other businesses, which will broaden the base of our offering and introduce us to new markets. We see the future in terms of continuing to move our business model up the value chain by creating effective solutions for clients.

An exciting future lies ahead for MSB and we look forward to making it happen.

John A Bateman
Chairman