Bespak growth underpins Consort’s faith in the future
A big fall in revenue and pre-tax profit barely dented Consort Medical’s share price as the Cambridge company talked up strong growth in its inhaler and auto-injector subsidiary Bespak.
The rise and rise of Bespak offset challenges elsewhere in the group, chiefly what the company called “a challenging period” for another subsidiary, Aesica, and a previously reported major incident at the group’s Cramlington site.
Interim revenue for the six months to October 31 showed revenue 4.3 per cent lower at £146m but statutory profit before tax down by 87.5 per cent to £1.2m.
The UK share price dipped just 5p with stockholders clearly happy to bide their time following the recommended offer for Consort from Recipharm Holdings.
Consort CEO Jonathan Glenn said: “Consort’s first half performance reflects strong growth from Bespak offsetting a previously reported slow start to the year by Aesica.
“Bespak has delivered an improvement in its sector leading margin and has substantial new contracts that will support the group’s growth prospects. Aesica’s first half performance includes the significant operational disruption caused by an incident at its Cramlington manufacturing facility.
“The group has considerable growth opportunities including three development contracts for its proprietary Syrina®/ Vapoursoft® injectable technology with major bio-pharma groups.
“We continue to invest in our research and development capabilities expanding our intellectual property and building on our exciting pipeline at both Bespak and Aesica to support our strong long-term growth prospects.
“The board’s expectations for the full year remain unchanged.
‘We anticipate that the group’s performance in the second half will benefit from continued growth in Bespak, recommencing manufacture of the specific product involved in the Cramlington incident and a reduction in the backlog at Aesica.”