Report of the Directors
Business Review

Financial Review of Operations

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Fine Chemicals

Speciality products for pharmaceuticals and R&D

Key Statistics
Capital expenditure £20.4 million
Capex / depreciation 1.1
R&D expenditure £8.6 million
Average invested capital £421 million
Employees 1,107
  Year to 31st March    
£ million
£ million
% at
Revenue 286 292 -2 -2
Sales excluding precious metals (sales) 277 285 -3 -3
Underlying operating profit 71.1 69.7 +2 +2
Return on sales 25.6% 24.5%    
Return on invested capital (ROIC) 16.9% 16.7%    


  • Deliver niche products to the generic pharmaceutical market
  • Leverage synergies between research, development and manufacturing
  • Increase market share of established products
  • Deliver superior growth

Fine Chemicals is focused on delivering niche products to the generic pharmaceutical market where it can apply its expertise to benefit from the trend towards the use of generic pharmaceuticals. Furthermore, with commercial advantages from being first to market with generic APIs, the division is supported by its strengths in research, development and manufacturing.

Through leveraging synergies between research, development and manufacturing across the division, Fine Chemicals can maintain a pipeline of new products for customers of both its API Manufacturing and Research Chemicals businesses.

Increasing market share of established products where the division has a strong position, such as opiate based APIs, is an important element of the strategy. The division is optimising its global manufacturing capacity to enable it to benefit from opportunities to strengthen its position in both existing and developing markets.

The division aims to deliver superior growth in markets that are driven by global trends towards the increased use of pharmaceutical products. Its strong position in niche areas and its research and manufacturing infrastructure position it well for growth at rates ahead of industry baselines.

Divisional Sales
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Sales by Destination
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Divisional Underlying Operating Profit
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Go to summary

Fine Chemicals’ products help relieve pain, treat cancer and alleviate other medical conditions, thus improving the quality of life for many people around the world.

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