RNS Number : 3655D
Ransom(William) & Son PLC
12 September 2008
For immediate release
12 September 2008
William Ransom & Son plc
("Ransom" or the "Company")
Trading update
Further to the announcement on 19 August 2008, the new strategy for Ransom, devised by
recently appointed Chief Executive Ivor Harrison,
is to simplify the business and focus on the Company's higher margin, branded, natural
consumer healthcare products. This follows the
completion of a strategic review. Having considered Ransom's long history in the field of
plant extraction and the increasing consumer
sentiment towards natural remedies, the Company intends to focus on a portfolio that has an
emphasis on both the naturalness as well as the
scientific basis for its products.
This strategy includes the sale of the pharmaceutical contract manufacturing business in
Witham, Essex, and various brands that are not
consistent with the new strategy such as Pavacol which the Company announced the disposal of
on 19 August 2008.
Notwithstanding the above, the trading outlook for Ransom in the current financial year
remains difficult as the macro-economic
environment continues to deteriorate and consumer spending remains under pressure. It is
envisaged that sales from the Company's UK business
will run at a level below last year until the re-positioning of the core brand portfolio is
completed. Export volumes, however, should be
maintained and the Company should also start to benefit from its newly launched on-line
direct-to-consumer business, trustwilliam.com.
The Company's discussions with its lending bank regarding its facilities are progressing
satisfactorily and it is continuing to operate
within its facilities and with the bank's support. However, the Company's ordinary shares will
remain suspended until a new facility is
agreed.
Ransom will publish its annual results for the year ended 31 March 2008 by 31 October
2008.
Ivor Harrison, Chief Executive, comments: "The completion of our strategic review has
provided the business with a focused plan for
recovery. Notwithstanding the difficulties currently faced in stabilising our UK business and
returning it to growth, I believe that the
implementation of the turn-around plan will result in a successfully re-positioned business,
well placed to exploit the opportunities which
continue to exist in the natural consumer healthcare sector."
William Ransom & Son plc: 01462 443527
Ivor Harrison, Chief Executive
Numis Securities Limited: 020 7260 1000
Nominated Adviser: Michael Meade / Oliver CardiganCorporate
Broker: James Black
Buchanan Communications:
Charles Ryland / James Strong 020 7466 5000
This information is provided by RNS
The company news service from the London Stock Exchange
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