Executive Summary

The past year has seen a significant advance in both our manufacturing capability and our exposure to the market place. Through virtually complete vertical integration we are able to offer unparalleled value for money at each stage of manufacture. Something which is clearly borne out through our products' competitiveness.

Our brand portfolio has been extended further with the re-launch to the market of the much-loved 'Audiolab' brand, and the recent acquisitions of 'Mission' loudspeakers, and the 'Coef' and F.A.L. lighting brands.

The transition from a loudspeaker manufacturer to a full-scale electronics and lighting manufacturer has required huge investment and a massive reorganisation. Now approaching the final stages, the facility is fully compliant with all European and world manufacturing standards.

Earlier this year IAG embarked on a major new initiative with the purchase of a ship-building yard in Guangzhou. From 2007 we will start building 165ft luxury yachts for the growing affluent.

Our philosophy remains one of inward investment and vertical integration. All of our acquisitions have been achieved without recourse to external finance, as has the growth in the factory. Today, we manufacture more parts of our own speakers than any of our competitors and this trend will continue across our brand portfolio.