Interim Results
24 Diciembre 2009 - 1:01AM
UK Regulatory
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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