RNS Number : 3544E
NeutraHealth Plc
25 September 2008
25 September 2008
NEUTRAHEALTH PLC ("the Company")
TRADING UPDATE
NeutraHealth plc, one of the leading UK vitamins & supplements companies, provides the
following trading update.
Market Conditions
Over the last three months, and in line with other consumer facing companies,
NeutraHealth has suffered from the slowdown in consumer
spending. As a result we expect sales and profit before tax, to the end of the year, to be
below current market expectations.
The Company is also experiencing supply chain cost pressures. These are being driven by
price increases on commodity items such as fish
oil, vitamin C and plastics. This will reduce the synergy benefits expected to arise in
purchasing savings in 2009 from the recent
acquisition.
The Board is reassessing its business plan in light of the changes in trading conditions,
and expects to provide a further update to the
market before the end of the year.
Integration update
The integration of Brunel Healthcare Manufacturing into the NeutraHealth group following
its acquisition in June 2008 has continued to
progress smoothly. All customers and key staff have been retained in the process. Systems
integration and process improvements will be
completed before the end November, ahead of the integration timetable.
Plans for in-sourcing manufacturing and packaging processes from across the group are also
progressing well and in line with the
timetable. These will deliver synergy benefits going forward.
Michael Toxvaerd, Deputy Chairman, commented:
"Our trading outlook has changed very rapidly. Until recently we were seeing very strong
trading and limited supply chain and
inflationary pressures, despite difficult conditions across the rest of the economy. Without
losing any customers, we are now faced with an
unexpected reduction in like for like sales for the second half of the year.
We are now reviewing all elements of our cost structures to adapt to these market
conditions."
For more information:
Further information for investors is available on the Company's website at
www.neutrahealthplc.com/
NeutraHealth plc
Michael Toxvaerd, Deputy Chairman 07730 581 584
Ray Myers, Chief Executive 07768 940 630
Robin Hilton, Finance Director 07738 018 411
Cenkos (Nominated Adviser and Broker)
Stephen Keys 020 7397 8900
Pelham Public Relations
James Henderson 020 7743 6672
Kate Catchpole 020 7743 6678
This information is provided by RNS
The company news service from the London Stock Exchange
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