Annual Report and Accounts 2006 - Optos

$3.3 million to $4.3 million. Losses
before tax were reduced by 58% to
$1.1 million for the full year; however,
the second half of the year showed
the Group making the transition
into profits with a profit before tax
of $1.5 million. Driving the growth
was an increase in our installed base
of P200 devices by 584, bringing the
total number of the installed base to
2,593, up from 2,009 at the end of the
same period last year. 2,475 of these
devices are located in our core North
American market. During the year, 3.4
million retinal exams were performed
in our existing markets, an increase
of 34% over the previous financial
year. Contract renewals remain a key
revenue driver and continued at a
strong rate for the full year at 89%,
which is in line with the rate reported
at our half year.
While our financial results and key
performance indicators are important,
they represent only part of the
story. The other part is how we are
differentiating ourselves. By offering
our customers enhanced diagnostic,
monitoring and treatment capabilities,
we can help them deliver a higher
standard of care to their patients.
We do this through sustainable
initiatives that help healthcare
practitioners improve patient
outcomes and by working to ensure
that the patient’s experience of having
a retinal examination is positive and
educational.
We implemented a number of
initiatives during the year aimed at
strengthening our existing business
and our platform for future growth,
including:
• Offering educational workshops
through our Optos Academy
programme and our Retinal
Exam Annual Protocol (“REAP”) to
primary care practitioners to drive
compliance levels in offering the
optomap® Retinal Exam as part
of every annual comprehensive
patient examination.
• Establishing a National Accounts
Group to focus exclusively on the
opportunity within the corporate
optical and eyecare chain and
institutional customer segments.
• Introducing a new programme
called Partner Visit Protocol (“PVP”)
to our existing North American
customer base to enhance the
in-practice selling process of the
optomap® Retinal Exam and
increase revenue per site.
• Strengthening our infrastructure
in Germany by opening a new
office and recruiting staff with solid
experience and contacts within
the German ophthalmic market,
continuing with our pre-market
evaluation in France and Spain,
and completing our regulatory
submission for Japan.
• Consolidating our European
distribution and service centre
by co-locating it with our
manufacturing capability in a new
facility in Scotland.
• Integrating our optomap® plus
Medical Retinal Exam into our
existing customer base, which
allows the practitioner to clearly
distinguish between the retinal
health check and monitoring
known retinal conditions, where
the interpretation, reporting and
documentation of pathology
is more stringent and leads to
reimbursement.
• Installing our new P200MA device
in select retinal and medical
specialist locations in the United
States and Germany, and beginning
clinical trials to demonstrate the
clinical efficacy of our optomap® fa
Medical Procedure.
We believe that these initiatives will
provide us with an enhanced market
focus and streamlined decisionmaking
as we grow our installed
base of devices and integrate our
technology and products deeper
into primary care optometry, and
broaden our offering to reach into the
secondary and medical care markets.
Our employees understand that
continuous improvement and
innovation and putting the customer
first are imperatives and that working
to drive shareholder value is an
expectation. On behalf of the Board
of Directors, I would like to thank all
of our employees for demonstrating
exceptional commitment during
the public offering process and for
their part in successfully managing
our growth during a year of change.
Their knowledge, expertise and
commitment are our most valued
asset and resource.
We strengthened the Board during
the financial year by securing the
services of two experienced new
Directors. Barry Rose joined the Board
in December 2005. He serves as
the Company’s senior independent
Director and chairs the Audit
Committee. Dr David Guyer joined
the Board in May 2006 and chairs the
Medical Advisory Board. The Board
also recognises the contributions
of Barry Sealey, Michael Rutterford,
Ann Gloag and David Cairns, who
stepped down from the Board before
the public offering, and of Stephane
Sallmard, who left the Company
at the close of the financial year. In
December 2006 we appointed Tom
Butts as our Chief Executive Officer.
Tom comes to Optos with a proven
ability in leading top-performing
teams and driving shareholder value.
He has both an exceptionally strong
grasp and understanding of the global
healthcare marketplace, and extensive
operating experience across North
America and Europe.
Over the last year, the Board has
paid particular attention to ensuring
the integrity of internal controls
and processes, the effectiveness
of compliance with external
40%
Increase in revenues.
$67.7 million compared to
$48.4 million in the previous year.
32%
Increase in operating profit
after share-based payments.
$3.3 million to $4.3 million.
requirements and the leadership
required to enable the Company to
maximise its opportunities. The Board
is highly engaged and vigilant, and
I would like to express my thanks to
each member for their dedication and
contribution.
Diseases at the back of the eye
represent a potentially large and
growing market. Earlier and better
detection is assuming greater
importance in eye and health care.
We believe that our patented scanning
laser technology delivers superior
retinal imaging and our operational
expertise drives product quality.
This offers healthcare practitioners
enhanced diagnostic and clinical
value. Looking ahead, we are building
a significantly stronger commercial
platform and are differentiating
ourselves in the medical devices and
healthcare services sectors. We expect
our success to continue in 2007, and
beyond.
Dr John M Padfield
Chairman
Douglas Anderson, Founder,
and HRH Prince Phillip,
Buckingham Palace, June 2006
Stephen Pemberton,
Senior Design Draughtsman
Optos plc Annual Report & Accounts 2006