3rd Nov 2008 07:00
Consort Medical plc
Trading Update
Consort Medical plc (LSE: CSRT), today issues its pre-close season statement for the half year to 31 October.
Current Trading
The Board is pleased to report that the Group is performing well and is anticipated to deliver results in line with market expectations.
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 these products are relatively unaffected by the economic cycle and may be seen as defensive in the current conditions.
Bespak
Bespak is a leader in metered dose inhaler valve technology and dry powder inhaler manufacture. Bespak's products are produced primarily for pharmaceutical customers to deliver drugs for the prevention and treatment of asthma and Chronic Obstructive Pulmonary Disease (COPD) and the prescription of these drugs is relatively unaffected by the global economic downturn.
The Bespak business, based in Kings Lynn, continues to perform well. During the switch of drug propellant technologies from a CFC propellant to an HFA propellant, Bespak has increased its global market share over the past five years from approximately 28% to approximately 40%. The CFC shipments have now finished and all our products are now HFA based.
Negotiations are underway with customers regarding opportunities to grow the business.
The exit from the Milton Keynes site has been completed on time, delivering the forecast cost reductions in full. The site is currently for sale but given the current state of the property market we do not anticipate selling it in the near future.
King Systems
King Systems manufactures single use breathing circuits, masks and laryngeal tubes.
King Systems delivered continuing sales growth in the first half, but performed slightly below expectations. This was due in part to a voluntary minor product recall which has been remedied in the period with no material lasting effects.
New products continue to be introduced to the King portfolio which are expected to drive an accelerated sales performance in the second half.
Don Dumoulin was appointed Chief Executive of King Systems on 6 October. Management are confident that Don will accelerate the growth in global sales on the back of faster new product introduction and reduced manufacturing costs.
Consort Medical
The management team has been strengthened during the period. Toby Woolrych joined the Group and the Board at the beginning of October as Group Finance Director. Lisa King was also appointed as Director of HR.
The management team is progressing well with the development of its strategic plan to deliver strong organic and acquisition-led growth.
The Group's borrowings, which are in US dollars, have risen in sterling terms during the first half solely due to the strengthening of the US dollar. 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.
Consort Medical will announce its interim results on 11 December 2008
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 |
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Brian Hudspith |
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).
Related Shares:
CSRT.L