TIDMRNSM 
 
RNS Number : 6745E 
Ransom(William) & Son PLC 
24 December 2009 
 

+--------------------------------------------+---------------------------------------+ 
| For Immediate Release                      |                      24 December 2009 | 
+--------------------------------------------+---------------------------------------+ 
 
 
WILLIAM RANSOM & SON PLC 
("Ransom", "the Group" or "the Company") 
UNAUDITED INTERIM RESULTS 
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009 
 
 
William Ransom & Son, a natural healthcare Company, today announces its 
unaudited interim results for the six months ended 30 September 2009. 
 
 
Financial Highlights: 
 
 
  *  Group sales GBP16.7m (2008: GBP17.2m); 3% like for like sales increase. 
  *  Operating profit before exceptional costs of GBP33k (2008: loss GBP0.7m 
  excluding GBP0.45m gain on disposal). 
  *  Exceptional items of GBP2.7m (2008: Nil), including goodwill impairment of 
  GBP2.5m (2008: Nil). 
  *  Overall operating loss of GBP2.7m (2008: loss GBP0.2m). 
  *  Adjusted loss per share 0.05p (2008: 0.54p), overall loss per share 3.27p (2008: 
  0.54p). 
  *  Net debt reduced to GBP5.8m (2008: GBP6.6m), bank loan repayments made as 
  scheduled. 
  *  Net working capital reduced to GBP5.8m (2008: GBP6.8m). 
 
 
 
 
 
David Suddens, Non-executive Chairman of Ransom, commenting on the interim 
results and outlook, said, 
 
 
"Much has been achieved in very testing business and economic circumstances, but 
the outlook remains uncertain. The management team is making strenuous efforts 
to return the business to financial stability." 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For further information please contact: 
 
 
+----------------------------------------------+-------------+----------------------+ 
| William Ransom & Son plc                     |             | +44 (0)1462 437615   | 
+----------------------------------------------+-------------+----------------------+ 
| Ivor Harrison - Chief Executive              |             |                      | 
+----------------------------------------------+-------------+----------------------+ 
|                                              |             |                      | 
+----------------------------------------------+-------------+----------------------+ 
| Buchanan Communications                      |             | +44 (0)20 7466 5000  | 
+----------------------------------------------+-------------+----------------------+ 
| Charles Ryland / James Strong                |             |                      | 
+----------------------------------------------+-------------+----------------------+ 
|                                              |             |                      | 
+----------------------------------------------+-------------+----------------------+ 
| Numis Securities                             |             | +44 (0)20 7260 1000  | 
+----------------------------------------------+-------------+----------------------+ 
| Michael Meade - Nominated Adviser            |             |                      | 
| James Black - Corporate Broking              |             |                      | 
+----------------------------------------------+-------------+----------------------+ 
 
 
  Chairman's Statement 
 
 
Results 
In the six months to 30 September 2009, Group sales were GBP16.7m (2008: 
GBP17.2m). Consumer Health Division sales fell by 16% to GBP10.7m (2008: 
GBP12.7m) mainly due to brand disposals and discontinued lines, while like for 
like sales were up 3%. Selling and distribution costs have been reduced by 
GBP0.7m to GBP3.5m (2008: GBP4.2m). Administrative costs before exceptional 
costs were reduced by GBP0.6m to GBP1.6m (2008: GBP2.2m). 
 
 
The Group made an operating profit before exceptional costs of GBP33K (2008: 
loss GBP0.7m excluding GBP0.45m gain on disposal) and an overall operating loss 
of GBP2.7m (2008: GBP0.2m), including GBP2.5m goodwill impairment (2008: 
Nil). The losses in the Pharmaceutical Division were reduced by GBP0.7m to 
GBP0.2m in the period (2008 loss: GBP0.9m). 
 
 
Adjusted loss per share 0.05p (2008: 0.54p), overall loss per share was 3.27p 
(2008: 0.54p). 
 
 
Net debt, consisting of a Bank loan, invoice discount facility and overdraft 
less cash and cash equivalents, at 30 September 2009 was reduced to GBP5.8m 
(2008: GBP6.6m). 
 
 
Dividend 
In light of the current performance, the Company is not in a position to pay a 
dividend to shareholders. 
 
 
Turnaround Plan 
The management team continues to drive the turnaround plan notwithstanding the 
difficulties presented by adverse market conditions and the sheer scale of the 
task required.  The main issues facing the business are the under-performance of 
the supply chain and tight working capital constraints. Therefore, costs are 
being reduced and cash preserved. 
 
 
Progress on the turnaround plan is described in greater detail in the Chief 
Executive's Review. 
 
 
People 
Our people have responded again to a difficult period with great energy and 
commitment. I would like to thank them for their efforts. 
 
 
 
 
 
 
 
 
David Suddens, Chairman 
24 December 2009 
  Chief Executive's Review 
 
 
Implementation of the Strategy 
 
 
The strategy remains unchanged - to create a leading branded Company that has a 
focus on natural health products with outsourced manufacturing. In this regard: 
+----------+----------+----------+----------------+ 
|          |          | 1.       | The            | 
|          |          |          | performance    | 
|          |          |          | of the         | 
|          |          |          | Pharmaceutical | 
|          |          |          | Division has   | 
|          |          |          | improved as    | 
|          |          |          | the Company    | 
|          |          |          | continues to   | 
|          |          |          | seek a buyer.  | 
+----------+----------+----------+----------------+ 
|          |          | 2.       | Consumer       | 
|          |          |          | Health         | 
|          |          |          | Division       | 
|          |          |          | products       | 
|          |          |          | are in         | 
|          |          |          | the            | 
|          |          |          | process        | 
|          |          |          | of being       | 
|          |          |          | repackaged     | 
|          |          |          | and            | 
|          |          |          | improved.      | 
+----------+----------+----------+----------------+ 
|          |          | 3.       | New            | 
|          |          |          | channels       | 
|          |          |          | are            | 
|          |          |          | being          | 
|          |          |          | developed      | 
|          |          |          | and new        | 
|          |          |          | listings       | 
|          |          |          | won.           | 
+----------+----------+----------+----------------+ 
|          |          | 4.       | A              | 
|          |          |          | complete       | 
|          |          |          | overhaul       | 
|          |          |          | of the         | 
|          |          |          | supply         | 
|          |          |          | chain is       | 
|          |          |          | in             | 
|          |          |          | progress.      | 
+----------+----------+----------+----------------+ 
 
 
Consumer Health Division 
In the first half of the year, sales of consumer healthcare products decreased 
by 16%, to GBP10.7m (2008: GBP12.7m). Of this GBP1.2m was due to the disposal of 
Radian B and Pavacol D in December 2008 and August 2008 respectively, and 
another GBP0.6m was due to the phasing of exports. Like for like sales were up 
slightly by 2% at GBP10.7m (2008: GBP10.5m). 
 
 
The overall financial performance of the division has been affected by a 
reduction in margin in part due to the mix of products sold but also due to the 
erosion of margin from increases in the cost of goods which have not yet been 
recovered. This erosion of margin is being addressed through a review of the 
cost of goods, renegotiation of prices and working closely with new and existing 
suppliers to take cost out of the supply chain. 
 
 
Last year four key growth drivers were identified to increase the sales of the 
Consumer Health Division: 
+----------+----------+----------+---------------+ 
|          |          | 1.       | re-branding   | 
|          |          |          | and           | 
|          |          |          | communicating | 
|          |          |          | the range     | 
|          |          |          | more          | 
|          |          |          | effectively,  | 
|          |          |          | by focusing   | 
|          |          |          | on seven core | 
|          |          |          | brands "from  | 
|          |          |          | Ransom" (and  | 
|          |          |          | two licensed  | 
|          |          |          | brands) and   | 
|          |          |          | developing a  | 
|          |          |          | new umbrella  | 
|          |          |          | brand for the | 
|          |          |          | multiples     | 
+----------+----------+----------+---------------+ 
|          |          | 2.       | upgrading     | 
|          |          |          | and           | 
|          |          |          | modernizing   | 
|          |          |          | packaging     | 
|          |          |          | formats       | 
+----------+----------+----------+---------------+ 
|          |          | 3.       | targeting     | 
|          |          |          | new           | 
|          |          |          | product       | 
|          |          |          | development   | 
|          |          |          | and           | 
|          |          |          | introductions | 
+----------+----------+----------+---------------+ 
|          |          | 4.       | targeting     | 

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