Newsletter 23- Review of 2007/January 2008

"Keeping you Informed"

Prices

(1st Jan 06 = 100 units)

                            From 1st Jan     (1st Jan) Remarks:

                                           2008    (2007)

Merchant Bar                     124      (112)    The mills have

(Rounds, Flats, Angles etc)                        announced an

                                                                    increase of £20/t

                                                                    from 7th January,

                                                                    reflecting the sudden

                                                                    upsurge in

                                                                    international prices.

                                                                    More will follow.

Heavy sections                  157     (135)     No further increases

(Beams, Columns etc)                                yet announced.

                                                                   However, we expect

                                                                   an increase of £40/t in

                                                                   March because of raw

                                                                   material increases.

Hollow Sections                 117     (118)    We expect increases

(Box, Tubes etc)                                        of up to £50/t by the

                                                                   end of Q1/start Q2.

Price Alert

International prices over the Christmas period have moved forward very quickly and if this trend continues, we could see a very volatile market price. If some pundits are to believed 2008 could mirror2004.                                                                     

Supply

Mills are busy but are reluctant to offer forward prices until cost

prices level out. There are no real capacity problems but if prices continue to forge ahead stock building will quickly create long lead times.

Demand
December was a very busy month for us and January 2008 has also started well. The market generally is however still slow, but the forecast is still optimistic for the rest of Quarter 1.

Tomrods Limited Review of 2007

We now employ 43 members of staff, an increase of 7 over 2006 and we are now working a night shift and our shotblasting and preservation line is celebratings it's first birthday. Tonnes sold increased during 2007 by 6% over 2006 figures and turnover increased by 16% reflecting price increases and our additional processing facilities.

During 2007 we updated our computer system, bought three wagons, visited China, contracted out our health and safety policies and procedures and donated over £3,000 to the Yorkshire Air Ambulance, Yorkshire Link providing holidays for victims of Chernobyl and also Martins House for children with cancer. We have also another £1,738.47 ready to donate to other local charities.

On a sporting front the Tomrods Golf Team won the NEASS trophy and yours truly won the individual competition, with the coveted Tomrods trophy being won by Laurence McDougall.

Tomrods continue to prosper as a true independent whilst our competitors are being swallowed up by the larger players in the market place. We are proud of our independence and believe it gives our customers a service second to none. Profits will be put back into constantly improving our services so we can stay ahead of that competition.

In addition to Tomrods' performance for the year our associate companies All Steels Trading and Legg Brothers show good results for 2007, they can be viewed on their websites.

If you require any further information please give either myself or one of my sales colleagues a call.

Thank you for reading this and if you have any comments about Tomrods Ltd or our website please email the undersigned at johnt@tomrods.co.uk

John Thompson
Managing Director - 10th January 2008