Business Weekly - Cambridge, UK

HOME

Bespak forecasts weaker outlook

Written by Business Weekly

Thursday, 14 January 1999

BESPAK, the King's Lynn maker of asthma inhalers and other drug delivery devices, has warned that the outlook for the second half was weaker than anticipated. BESPAK, the King's Lynn maker of asthma inhalers and other drug delivery devices, has warned that the outlook for the second half was weaker than anticipated. The shares fell 73.5p to 912.5p after analysts cut their profit forecasts for the year by up to 8%. Bespak said that in Europe it now anticipated a faster decline in sales volumes from valves that use chlorofluorocarbons as propellants for asthma inhalers. Chief executive Peter Chambre said the company had expected a 10% drop in valve sales but this was now more likely to be 20% through the year in total. He said the problem was short-term. Bespak also reported difficulties with subsidiary Tenax which contract manufactures components for medical devices. Tenax has been hit by consolidation among its customers and profits fell after a 26% drop in sales to £4.8m. Bespak says it will decide by the end of this year whether to sell, close or retain the business. The pre-tax profit in the 26 weeks to end-October rose 7% to £7m despite a 1% fall in turnover to £41.9m. An interim dividend of 5.6p is payable (up from 5.1p) from earnings of 20.3p (18.9p).

 

< Prev		Next >