In the first half of 2014 demand for SF6 RMU's in Saudi Arabia has reduced from the high levels seen in 2013 but we are continuing with actions to establish and build Lucy Switchgear Arabia in Dammam as we believe the level of demand in the future will remain high.

Good progress has been made with our focus upon Far Eastern markets and also in running up our Thailand factory which will commence operations in Qauarter3.

Demand in India for CG Lucy products is very high and, with recent political changes in India this is set to continue.

Whilst activity in some of LS markets has slowed, the overall demand for 2014 remains satisfactory.

Enhanced engineering facilities, namely prototype and test facilities and offices, have now been completed at Thame with further improvements to be made at Banbury in Quarter 3. Good development progress is now being made on Aegis 11. A significant new engineering group is being set up in LEI, Vadodara which will carry out development projects to broaden Lucy Switchgears product range, starting in Quarter 3. This group will be led by Mr Mukesh Nimani who joins us this month.

Lucy Switchgear is in a strong position to meet whatever challenges our markets present us with and to continue our growth path.

After 26 years with W Lucy I am retiring at the end of June and I am delighted to welcome John Griffiths ("JAG") as Lucy Switchgear's new CEO who will take over on 1st July 2014. John has considerable international experience in the switchgear industry and has previously been responsible for Thailand and subsequently for the Middle East region for Schneider Electric. We welcome John and I am confident that he will be able to lead Lucy Switchgear into an exciting future.

CR Levick