Business Description:
Lemarne Corporation Limited (LMC) is a holding company which invests in and manages diversified manufacturing businesses. LMC is in the provision of specialist technologies, products and services through Lemtronics Sdn Bhd, its wholly owned operating division.

Strategy Analysis:
In May 2001, management warned that profits for 2001 would be down by 70% compared to the previous year. Performance of the Com 10 Power division is significantly weaker due to trading losses and write downs. Pacific Composites Australian division is also expected to perform poorly. Lemarne Corporation's strategy is to hold a diversified portfolio of businesses with strong future growth prospects. Lemarne posted an improved result for the year to June 2000 due largely to a strong turn around in the Pacific Composites Group. Both UK and Australian Pacific Composite businesses performed well. U.R. Machinery also performed well. The U.R. Machinery subsidiary sold its wind machine business during 1999/2000 for $500 million plus product referral fees over the next two years. The sale will allow management to focus on its core business of mechanical grape harvesting equipment. Com 10 is looking to increase profit and sales through product development and expansion into new markets coupled with increased operational efficiency.