3rd Aug 2006 07:01
Bespak PLC03 August 2006 Withdrawal from the Consumer Dispensers Business Bespak plc, a leader in devices for inhaled drug delivery and anaesthesia, todayannounces that it will withdraw from its loss-making Consumer Dispensersbusiness segment, based in King's Lynn, Norfolk. Over the next five months,Bespak will execute an orderly shut-down of the business, efforts to sell it toqualified buyers having proved unsuccessful. Last month Bespak reported sales in its financial year ending 29 April 2006 of£93.1m (up 17%) and profit before tax and special items of £13.5m (up 24%).Consumer Dispensers, which manufactures pumps for consumer household products,toiletries and fragrances, is the smallest of Bespak's three business segmentsand reported sales growth of 3% to £5.5m and an operating loss of £1.0m. It is estimated that the closure of Consumer Dispensers will be broadly cashflow neutral, but that a non-recurring accounting charge of up to £3m will betaken by the end of this financial year, reflecting primarily severance costsand fixed asset impairment charges on customised manufacturing equipment andfacilities. Bespak expects that, once implemented, the closure will produceon-going annual savings of at least £0.5m. Bespak intends that, wherever possible, the 54 employees affected by theshut-down will be redeployed into its growing Inhaled Drug Delivery business.Bespak will work to assist customers in the phased transfer of the business toalternative suppliers. Mark Throdahl, Bespak's Chief Executive, commented, "Bespak has been transformedinto a group focused on devices for inhaled drug delivery and anaesthesia, wherewe see significant growth opportunities. This closure will enhance groupprofitability and enable Bespak to focus on its declared growth market inmedical devices. " For further information, please contact: Bespak plc Tel: +44 (0) 1908 525 240Mark Throdahl - Chief ExecutivePaul Boughton - Corporate Development Director Maitland Tel: +44 (0) 207 379 5151Elizabeth Morley About Bespak plc Bespak, a leader in devices for inhaled drug delivery and anaesthesia, developsdelivery systems for the pharmaceutical industry and disposable airwaymanagement products for critical care settings. Bespak's product range includesmetered dose and dry powder inhalers, actuators, inflation valves, breathingcircuits, disposable face masks and laryngeal tubes. The group, which hasfacilities in King's Lynn and Milton Keynes in the UK and Indianapolis, Indianaand Kent, Ohio, in the US, in quoted on the Official List of the London StockExchange (LSE: BPK). For more information, please visit www.bespak.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
CSRT.L