For the year ended December 31st 2010.

Financial performance summary

Williams Industries Inc. consolidated sales of $161,007,531 in 2010 were 1% below sales in 2009 but because of our diversification into more service oriented businesses that require very low cost of materials we were able to increase our gross profit by 27%. Because the service businesses required more staff and we borrowed to invest in these businesses our Selling and Admin expenses and interest cost increased 9%. Our core companies trading profit increased by 65% to $21,614,685 but our share of equity income from investments fell by 45% to $6,014,911 mainly because we received a significant one off contribution from Port St. Charles in 2009. Corporation tax increased by 179% to $4,938,140 so we finished the year with after tax profit only 1% up at $22,127,371.

The year ahead is expected to be much tougher because of our considerable long term investments in NSR Ltd, Limegrove and REDjet that are all expected to record losses in 2011. These investments and especially NSR have absorbed a tremendous amount of our senior staff's time and energy. This is expected to continue throughout 2011 but on the positive side both NSR and Limegrove provided significant throughput for our core companies and our association with REDjet enhanced our public image as a company that is focused on reducing cost by improving efficiency. All three investments are expected to pay dividends in the long term.

Ongoing policy

No change. We will continue to look for investment opportunities that have long-term profit and foreign exchange earning or saving potential and projects that create additional throughput for our core companies will be favored. Our objective continues to be to earn or save more foreign exchange than we use. We will continue to invest in new technology and equipment where necessary, to improve the efficiency of our manufacturing businesses and widen their product ranges to satisfy market demand. We will continue to focus on long term capital growth while maintaining our policy to pay approximately 25% of our profit after tax, excluding capital gains until they are converted to cash, in dividends to our shareholders and a similar amount of our profit to all the people who work to make our businesses successful. We will not compromise quality in our products to increase short-term profits, but will always base our decisions on enhancing long-term customer satisfaction and brand loyalty. We believe our products are the best quality of their type available anywhere and we will strive to maintain this.

Commitment to our team members and our community

At the end of 2010, Williams Industries Inc. issued 114,500 new shares valued at $878,215 to 53 employees for long service ranging from 10 to 30 years. In addition, we donated $405,930 to community development projects, $269,317 to charities that improved the quality of life of children and the elderly, $124,810 to motor sport, $150,000 to tourism development projects and $61,176 to political parties in 2010.