Aug 4 2006
Bespak plc, a leader in devices for inhaled drug delivery and anaesthesia, today announces that it will withdraw from its loss-making Consumer Dispensers business segment, based in King’s Lynn, Norfolk. Over the next five months, Bespak will execute an orderly shut-down of the business, efforts to sell it to qualified buyers having proved unsuccessful.
Last month Bespak reported sales in its financial year ending 29 April 2006 of £93.1m (up 17%) and profit before tax and special items of £13.5m (up 24%). Consumer Dispensers, which manufactures pumps for consumer household products, toiletries and fragrances, is the smallest of Bespak’s three business segments and reported sales growth of 3% to £5.5m and an operating loss of £1.0m.
It is estimated that the closure of Consumer Dispensers will be broadly cash flow neutral, but that a non-recurring accounting charge of up to £3m will be taken by the end of this financial year, reflecting primarily severance costs and fixed asset impairment charges on customised manufacturing equipment and facilities. Bespak expects that, once implemented, the closure will produce on-going annual savings of at least £0.5m.
Bespak intends that, wherever possible, the 54 employees affected by the shut-down will be redeployed into its growing Inhaled Drug Delivery business. Bespak will work to assist customers in the phased transfer of the business to alternative suppliers.
Mark Throdahl, Bespak’s Chief Executive, commented, “Bespak has been transformed into a group focused on devices for inhaled drug delivery and anaesthesia, where we see significant growth opportunities. This closure will enhance group profitability and enable Bespak to focus on its declared growth market in medical devices. ”