11th Sep 2019 09:58
(Alliance News) - Consort Medical PLC on Wednesday said full-year profit could be hurt by up to GBP9.0 million, following an incident at a company facility in Northumberland.
In July, Consort reported a small area of the operating plant at the Cramlington manufacturing facility was damaged by the "rapid" thermal degradation of chemicals, leading to an "expulsion of material" and contamination.
The impact on operating profit for its year ending April 2020 is forecast to be between GBP7.0 million and GBP9.0 million, though this does not factor in any amounts it could recover from its insurance policies.
In July, when the accident happened, Consort Medical guided for a GBP3 million to GBP5 million hit on profit.
Decontamination took longer than planned but the company said it is "progressing the investigation" to find the root cause of the incident. Excluding the costs of the incident, Consort said underlying performance was in line with full-year expectations.
The company said its Bespak devices business is performing well, supported by sales of its MDI valves, a device used in medical inhalers to ensure consistent dosage.
Half-year results from its Aesica unit will reflect a slower start to the year and the disruption from Cramlington, Consort said.
Shares in the company were 3.4% lower at 732.00 pence each in London on Wednesday morning.
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