We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Bespak | LSE:BPK | London | Ordinary Share | GB0000946276 | ORD 10P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 667.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS No 9637m BESPAK PLC 7th July 1998 Announcement of Unaudited Preliminary Results for the 52 weeks ended 1 May 1998 Financial Highlights 1998 1997 (Unaudited) (Audited) Turnover #86.1m #77.7m Up 11% Profit before tax #13.8m #11.0m Up 25% Earnings per share 39.7p 29.5p Up 35% Net cash #5.2m #6.3m Dividends per share 13.7p 12.3p Up 11% Operating Performance . Strong financial performance - record turnover and profit . Continuing growth in drug delivery and recovery in medical devices . Operating margins improved from 14.0% to 15.6% . #19 million capital investment primarily to support drug delivery device programmes . Excellent cash generation Dividend . Final dividend increased by 12% to 8.6 pence per share (1997 7.68 pence), giving a total increase of 11% to 13.7 pence (1997 12.3 pence) Building for the Future . Good prospects for new product pipeline in drug delivery . Continuing investment programme in UK and USA . Emerging growth opportunities in supplying major US medical device companies Bespak plc Chairman, Sir David Cooksey, commented today This has been a successful year for the Group and we are continuing to prepare for the future. We have a major investment programme in place to support the opportunities available in our key markets of drug delivery and medical devices. We believe Bespak is well placed to take advantage of these opportunities and to achieve its long term growth plans. Enquiries Peter Chambre, Chief Executive Robert J. Preece, Finance Director Bespak plc 0171 638 9571 Bespak plc 1997/98 Preliminary Results Overview The past year has been successful for Bespak plc, with the Group achieving record financial performance, resulting from increased turnover and improvements in operating effectiveness. The Group also prepared for the future by commencing a major programme of investment to install the capacity required to support product expansions and its pipeline of new product launches. Operating Results Group turnover rose by 11% in 1998 to #86.1 million, with growth being driven primarily by the 20% increase in drug delivery products. Operating profits grew by 23% to reach #13.4 million and profit before tax was #13.8 million, an increase of 25% over last year. Group margins continued to increase during the year, reaching 15.6% compared with 14% in 1997, resulting mainly from the improvements achieved in the USA. Earnings per share increased by 35% to 39.7 pence, reflecting strong growth in the drug delivery business in the UK and the continuing progress at Tenax, which serves the medical device industry in the USA. The Board is recommending that the final dividend is increased by 12% to 8.6 pence, making a total for the year of 13.7 pence (1997 12.3 pence). Capital expenditure for the year was #19.2 million and, after investing at this level, the Group ended the year with a net cash position of #5.2 million, demonstrating once again the cash-generative nature of our businesses. UK In the UK, sales increased by 21% to #57.3 million and operating profits improved by 19% to #11.4 million. The principal business of Bespak in the UK is the development and supply of drug delivery products to the global respiratory drugs industry, where sales increased to #48.9 million, representing growth of 25%. Within this business, sales of the range of metered-dose valves for asthma inhalers and critical care fluid control valves grew by 13% to #26.4 million, significantly ahead of the rate of market growth. Sales of drug delivery device products increased by 42% to reach #22.5 million, driven primarily by increasing sales of the Glaxo Wellcome Diskus (TM) dry powder inhaler. In the personal care sector, sales of Bespak s pumps increased by 4% to reach #8.4 million. This was accompanied by the anticipated improvements in margin resulting from the establishment of stand-alone manufacturing facilities for this business, completed during the year. USA In the USA, operating profits increased by 65% to #2.0 million resulting from improvements at both the Group s businesses, especially the recovery achieved at Tenax. Sales in the USA fell 6% to #28.8 million (3% at constant exchange rates). At Bespak Inc., profits were increased on total sales which declined by 3% to #15.8 million. The business develops and manufactures drug delivery devices for US-based pharmaceutical customers at its two manufacturing operations in North Carolina. Sales of these manufactured products increased slightly. Bespak Inc. also distributes Bespak s range of valves and provides technical support to customers in the USA. Sales of distributed products decreased by 7%, resulting from changes to stock levels at major customers following the launch of generic respiratory drugs in the previous year. Tenax is the Group company serving the medical device industry in the USA. Following successful completion of the major restructuring programme in 1997, Tenax was consistently profitable during the last financial year and its performance improved further in the second half. Overall sales fell by 9% to #13 million, reflecting the decision to focus on a smaller number of major medical device customers. Improvements in operating effectiveness have been accompanied by a significant strengthening of the Company s quality processes resulting in increased levels of satisfaction among its customers. Building for the Future Drug Delivery Bespak is the world s leading supplier of drug delivery products to the global respiratory drugs industry and is well positioned to benefit from the underlying growth in respiratory disease and the changes taking place in the market for the delivery of respiratory drugs in the future. To support these opportunities, a three year investment programme commenced during the last financial year to install the manufacturing capacity required to supply our major pharmaceutical customers new product launch plans in Europe and the USA. In the metered-dose inhaler market, the pharmaceutical industry has committed to change from the use of chlorofluorocarbon (CFC) propellants to new hydrofluoralkanes (HFA), with completion of the phase-out of CFCs by 2005. Bespak is entering the final stages of programmes with its major customers for the development of new HFA valves. The original timetable was to complete the transition by the end of the year 2000 in the developed markets of the world. However, it is now clear that the introduction of the regulations requiring the switch to HFAs in the USA will be delayed. The Group anticipates that, as a result of the switchover, it will gain long-term market share in this growing market, from winning new customers and new product contracts. However, the period of transition will be accompanied by some loss of market share, resulting from the HFA product launch plans of our major customers and the potential impact of the delay in the HFA introduction in the USA. During the last period, the first products utilising Bespak HFA valves have been launched. Other customers are planning to submit new products for regulatory approval during the remainder of 1998 and 1999. Also, the first cleanroom manufacturing capacity has been installed at Bespak s facility in King s Lynn, which will be followed over the next two years by further capacity additions. The drug delivery devices sector will be the area of greatest potential for long-term growth. Bespak is well positioned in the emerging market for dry powder inhalers. The capacity committed during 1997 to support the growth of Glaxo Wellcome s Diskus (TM) comes on stream in 1998. This expansion is at both King s Lynn and at Bespak s new facility at Milton Keynes. This second site is an important part of the Group s growth plans in the drug delivery devices market. Progress has also been made on programmes for dry powder inhalers with other customers. The Medeva Clickhaler dry powder inhaler, which was introduced at the end of 1997, is now entering the capacity scale-up phase and the Rhone- Poulenc Rorer Ultrahaler (TM) remains on track for launch and is planned to commence final clinical trials later this year. In the USA, the drug delivery device programmes are developing satisfactorily, to the point where a substantial expansion of the facility at Cary, North Carolina is underway to provide world class facilities. The first major product planned for this new facility will be for Rhone-Poulenc Rorer, with manufacturing due to commence in 1999. In the long-term, the market for drug delivery will continue to expand, as the pharmaceutical industry seeks new delivery technologies to differentiate their drugs. Bespak is well placed to take advantage of this growing but competitive market and, in addition to the investment being made in the medium-term to support the current new product programmes, the Group is planning to raise its level of investment in new drug delivery technologies and devices. Medical Devices In medical devices, Tenax is beginning to generate opportunities for medium- term growth. While the industry that Tenax serves is projected to continue expanding, it is also consolidating, which is likely to bring with it increased pressure from customers and rationalisation of supply chain companies. It is already becoming clear that our customers are requiring higher levels of quality and service. In addition, they are beginning to seek suppliers who can provide a broader range of skills and technologies. As a first stage in the upgrading of Tenax s services to meet these requirements, new cleanroom assembly facilities are currently being installed. Outlook Our expectations are for further progress during the forthcoming year. In the UK, the continuing sales growth in drug delivery devices will be partially offset by lower valve sales, resulting from the beginning of the HFA transition. In the USA, the investment now being made in the future expansion and development of Bespak Inc. is likely to restrict profit growth during this year, particularly in the first half. At Tenax, continued progress during this year is expected as the company further strengthens its performance for customers. Bespak plc is well placed to achieve long-term growth in the key markets of drug delivery and medical devices. There is a good pipeline of opportunities and the Group s investment programme will continue to put in place the capacity and capabilities necessary to meet the increasing demands of our customers. Consolidated Profit and Loss Account (Unaudited) For the 52 weeks ended 1 May 1998 Notes 1998 1997 #000 #000 Turnover 2 86,067 77,749 Operating expenses (72,657) (66,841) ------ ------ Net operating income 2 13,410 10,908 Net interest receivable 415 124 ------ ------ Profit on ordinary activities before 13,825 11,032 taxation Taxation (3,735) (3,584) ------ ------ Profit on ordinary activities after 10,090 7,448 taxation Dividends 3 (3,497) (3,114) ------ ------ Retained profit for the year 6,593 4,334 ====== ====== Earnings per share 4 39.7p 29.5p ====== ====== All amounts relate to continuing operations. There is no difference between the profit on ordinary activities before taxation and the retained profit for the year stated above, and their historical cost equivalents. Consolidated Balance Sheet (Unaudited) At 1 May 1998 1998 1997 #000 #000 Fixed assets Intangible assets 366 361 Tangible assets 44,501 31,088 Investments 1,200 784 ------ ------ 46,067 32,233 ------ ------ Current assets Stocks 4,241 5,798 Debtors 14,736 12,218 Short-term deposits 9,000 12,500 Cash at bank and in hand 6,464 3,489 ------ ------ 34,441 34,005 Creditors - amounts falling due within one year (29,333) (21,735) ------ ------ Net current assets 5,108 12,270 ------ ------ Total assets less current liabilities 51,175 44,503 Creditors - amounts falling due after more than (2,879) (4,317) one year Provisions for liabilities and charges (4,962) (4,993) ------ ------ Net assets 43,334 35,193 ====== ====== Capital and reserves Called up share capital 2,565 2,526 Share premium account 15,923 14,342 Special reserve 308 308 Profit and loss account 24,538 18,017 ------ ------ Equity shareholders funds 43,334 35,193 ====== ====== Consolidated Cash Flow Statement (Unaudited) For the 52 weeks ended 1 May 1998 Notes 1998 1997 #000 #000 Cash inflow from operating activities Net cash inflow from operating activities 5 21,811 20,719 Outflow related to Innovata Biomed contract (111) (2,826) ------ ------ Net cash inflow from operating activities 21,700 17,893 ------ ------ Returns on investment and servicing of finance Interest received 1,042 714 Interest paid (622) (655) ------ ------ 420 59 ------ ------ Taxation UK corporation tax (2,929) (2,891) Overseas tax (29) 71 ------ ------ (2,958) (2,820) ------ ------ Capital expenditure and financial investment Payments to acquire intangible fixed assets (159) (125) Payments to acquire tangible fixed assets (18,151) (6,782) Receipts from sales of tangible 111 161 fixed assets Payment for investment (168) - Investment in ESOT (335) - ------ ------ (18,702) (6,746) ------ ------ Equity dividends paid (3,242) (2,884) ------ ------ Net cash (outflow)/inflow before 6 (2,782) 5,502 management of liquid resources and financing Management of liquid resources Movement in fixed deposits 6 3,500 (2,965) Financing Issue of shares 6 1,620 23 Repayment of borrowings 6 (1,532) (1,550) ------ ------ 88 (1,527) ------ ------ Increase in cash and cash equivalents 6 806 1,010 ------ ------ Statement of Total Recognised Gains and Losses for the 52 weeks ended 1 May 1998 1998 1997 #000 #000 Profit on ordinary activities after taxation 10,090 7,448 Exchange movements on foreign currency net (72) (172) investments Total recognised gains and losses for the ------ ------ financial year 10,018 7,276 ------ ------ Reconciliation of Movements in Equity Shareholders Funds for the 52 weeks ended 1 May 1998 1998 1997 #000 #000 Equity shareholders funds 35,193 31,008 brought forward Profit on ordinary activities 10,090 7,448 after taxation Dividends (3,497) (3,114) Exchange movements on foreign (72) (172) currency net investments Issue of ordinary share capital 1,620 23 ------ ------ Equity shareholders funds 43,334 35,193 carried forward ====== ====== NOTES TO THE PRELIMINARY ANNOUNCEMENT 1. Preparation of the Preliminary Announcement (i) Basis of preparation The profit and loss account covers the 52 weeks (1997 52 weeks) to 1 May 1998. The balance sheets have been drawn up at 1 May 1998 and 2 May 1997 respectively. The results of overseas subsidiaries have been translated into sterling at the average rates of exchange ruling during the financial year. (ii) Abridged accounts The foregoing financial information, which has been prepared on the basis of the accounting policies set out in Bespak plc s accounts for the 52 weeks to 2 May 1997, does not amount to full accounts within the meaning of section 240 of the Companies Act 1985 (as amended). The abridged comparative figures for the 52 weeks to 2 May 1997 are from the accounts of Bespak plc for the 52 weeks ended 2 May 1997. These accounts have been reported on by the Company s auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act. 2. Segment information The geographical analysis of turnover, net operating income and net assets is as follows Geographical area (turnover by destination) 1998 1997 #000 #000 United Kingdom 39,723 30,709 United States of 28,589 30,564 America Europe 13,697 12,604 Rest of the World 4,058 3,872 ------ ------ 86,067 77,749 ====== ====== Average rate of exchange #1 Sterling: US $ 1.65 1.59 Turnover by origin United Kingdom United Total States of America 1998 1997 1998 1997 1998 1997 #000 #000 #000 #000 #000 #000 Total sales 63,019 53,560 28,757 30,565 91,776 84,125 Inter-segment sales (5,708) (6,369) (1) (7) (5,709) (6,376) ------ ------ ------ ------ ------ ------ External sales 57,311 47,191 28,756 30,558 86,067 77,749 ====== ====== ====== ====== ====== ====== Net operating income Net operating income by 11,452 9,652 1,958 1,186 13,410 10,838 segment ====== ====== ====== ====== Income from associates - 70 ------ ------ 13,410 10,908 ====== ====== NOTES TO THE PRELIMINARY ANNOUNCEMENT 2. Segment information continued Net assets United Kingdom United Total States of America 1998 1997 1998 1997 1998 1997 #000 #000 #000 #000 #000 #000 Operating assets by 36,138 26,359 10,945 10,870 47,083 37,229 segment ====== ====== ====== ====== Unallocated net assets/(liabilities) Investments 1,200 784 Provisions for liabilities and charges (4,962) (4,993) Tax and dividends (5,202) (4,083) Net funds 5,215 6,256 ------ ------ 43,334 35,193 ====== ====== Closing rate of exchange #1 Sterling: US $ 1.67 1.62 3. Dividends 1998 1997 #000 #000 Interim dividend of 5.1p per share paid on 23 February 1998 (1997 - 4.62p) 1,294 1,167 Proposed final dividend of 8.6p per share payable on 6 October 1998 (1997 - 7.68p) 2,203 1,947 ------ ------ 3,497 3,114 ====== ====== The record date for the proposed final dividend is close of business on 17 July 1998. 4. Earnings per share The earnings per share as shown in the profit and loss account are calculated by reference to the net profit after taxation and the weighted average number of shares in issue during the year (1998 - 25,397,960 1997 - 25,257,713). Figures for fully diluted earnings per share based on outstanding share options are not provided as the effect on earnings per share is not material. The number of shares in issue at 1 May 1998 was 25,653,117 (1997 - 25,262,161). NOTES TO THE PRELIMINARY ANNOUNCEMENT 5. Net cash inflow from operating activities Reconciliation of net operating income to net cash inflow from operating activities 1998 1997 #000 #000 Net operating income 13,410 10,908 Depreciation 5,513 5,161 Profit on sale of tangible fixed assets (77) (34) Decrease in stocks 1,505 2,174 (Increase)/decrease in debtors (3,318) 2,649 Increase/(decrease) in creditors 4,587 (111) Increase in deferred compensation provision 168 - Income from interests in associated undertakings - (70) Dividends received from associated undertakings 23 42 ------ ------ Net cash inflow from operating activities 21,811 20,719 ====== ====== 6. Reconciliation of net funds The table below provides an analysis of net funds and a reconciliation of net cashflow to movement in net funds. At Cash Inception Exchange At 3 May flow of movements 1 May 1997 #000 leasing #000 1998 #000 contracts #000 #000 Cash at bank and in hand 3,489 2,976 - (1) 6,464 Overdrafts (3,932) (2,170) - 32 (6,070) ------ ------ ------ ------ ------ Cash and cash equivalents (443) 806 - 31 394 Loans and leasing (5,801) 1,532 (58) 148 (4,179) obligations Short-term deposits 12,500 (3,500) - - 9,000 ------ ------ ------ ------ ------ Net funds 6,256 (1,162) (58) 179 5,215 ------ ------ ------ ------ Financing items included in cash flow movements Issue of shares (1,620) ------ Net cash inflow before management (2,782) of liquid resources and financing ------ END FR SSIESMUAUFFW
1 Year Bespak Chart |
1 Month Bespak Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions