19th Mar 2009 07:00
Consort Medical plc
Interim Management Statement
Consort Medical plc (LSE: CSRT), today issues its interim management statement for the period from 1 November 2008 to date.
Consort Medical operates two divisions; Bespak, which manufactures medical devices for inhaled drug delivery, and King Systems, which supplies premium quality airway management products.
The markets for the Group's products remain resilient even in the current economic downturn. There continues to be some customer de-stocking and increased pricing pressure in both divisions, but these pressures are in the main being addressed through a tight focus on costs.
Underlying trading at Bespak remains robust with stable orders for all products and solid end user prescription data. Bespak has signed a long term extension to one of its key manufacturing contracts. The new terms will result in some margin reduction over the next two years, but the impact is expected to be largely mitigated by ongoing cost reduction programmes.
King Systems has continued to perform well in challenging market conditions. Although, as previously indicated, a contraction in the amount of elective surgery and increasing price pressure has slowed market growth, management believe the Company continues to gain share with its range of high quality circuits and airway devices. Margins in the second half have returned to historic levels.
Cash generation continues to be strong. The Group's borrowings, which are in US dollars, have declined in dollar terms but risen in sterling terms, solely due to currency translation. This is matched by a corresponding increase in the value of King Systems' net assets in sterling terms, and repayments are met from US dollar income. Borrowings remain well within the Group's facilities and the Group remains comfortably in compliance with its banking covenants.
The Board remain comfortable with the market consensus for the current financial year.
For further information, please contact:
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Consort Medical plc |
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Jonathan Glenn, Chief Executive |
Tel: +44 (0) 1442 867920 |
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Toby Woolrych, Group Finance Director |
Tel: +44 (0) 1442 867920 |
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Maitland |
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Liz Morley |
Tel: +44 (0) 20 7379 5151 |
Consort Medical plc is a leader in medical devices for inhaled drug delivery and anaesthesia. The Group develops drug delivery systems for the pharmaceutical industry and disposable airway management products for critical care settings in hospitals.
Consort Medical develops and manufactures metered dose inhaler valves, actuators, compliance aids, dry powder devices, disposable facemasks, breathing circuits and laryngeal tubes. The Group has facilities in King's Lynn and Hemel Hempstead in the UK, Indianapolis, Indiana and Kent, Ohio in the US, and Mumbai, India. Consort Medical is a public company quoted on the full list of the London Stock Exchange (LSE: CSRT).
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