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| 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 |
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RNS Number:3994X
Bespak PLC
18 June 2002
The Issuer advises that the following amends the Final Results announcement
released 18 June 2002 at 07:00 under RNS number 3731X. The record date for the
proposed final dividend is close of business on 28 June 2002, and not 21 June
2002 as previously stated and so the dividend will be paid on 8 October 2002 to
shareholders on the register date on 28 June 2002, and not 21 June 2002, as
stated in the announcement. All other details remain unchanged, and the full
amended text appears below.
For Immediate Release: 07.00, Tuesday, 18 June 2002
Bespak plc
Preliminary Results
(unaudited)
for the 53 weeks ended 3 May 2002
Bespak, an innovator in drug delivery, today announces its preliminary results
for the 53 week period ended 3 May 2002.
HIGHLIGHTS
• Record sales up 16% to £91.0 million (2001: £78.7 million)
• Investment in Research & Development up 39% to £5.5 million
• PBT up 6% to a record £15 million (2001: £14.1 million)
• EPS increased 8% to 41.3 pence (2001: 38.4 pence)
• Proposed increase in final dividend of 6% to 12.1 pence per share
• Net cash at year end: £24.8 million
• Progress in all three businesses in new strategy implementation:
Pulmonary
• Sales increased by 23% to £42.9 million
• Exciting technology partnership signed with DEKA Research Corporation
• New valve and dose counters under customer evaluation
Device & Manufacturing Services
• Sales increased by 12% to £41.0 million
• Continued high demand for GlaxoSmithKline's DiskusTM device to support
its successful US Advair launch
• Significant new partnerships signed with Abbott Laboratories, Weston
Medical and Sheffield Pharmaceuticals
Nasal
• Three new collaborations signed with innovative technology partners -
nine collaborations now in place
• Development programmes on track
• Further collaboration opportunities in late stage evaluation
Bespak's Chief Executive, Mark Throdahl, commenting on the results, said:
"We are pleased to announce another strong financial performance with record
sales and profits accompanied by significantly increased investment in new
technologies. Over the past year we have made considerable progress towards
achieving our aim of re-positioning Bespak as an internationally recognised drug
delivery company.
My first year at Bespak has been an exciting one and I look forward to
continuing to be part of an evolving, successful and profitable drug delivery
company. Your Board is intent on transforming Bespak into a fast growing company
with three synergistic but distinct businesses - Pulmonary, Device &
Manufacturing Services and Nasal."
For further information please contact:
BESPAK plc On 18 June 2002: +44 (0) 20 7466 5000
Mark Throdahl - Chief Executive Thereafter: +44 (0) 20 7518 7900
Robert Preece - Deputy Chief Executive & Group Finance Director
BUCHANAN COMMUNICATIONS TEL: +44 (0) 20 7466 5000
Tim Thompson / Nicola How
Notes to Editors:
Bespak plc is transitioning from device manufacturing to drug delivery using
strong cash flow to fund significantly increased R&D
Bespak is more than one business or one technology:
• portfolio of businesses: two established plus Nasal
• portfolio of international customers
• portfolio of new technologies
• portfolio of parallel projects with world-class collaborators
Initiatives are underway in each business, any one of which can transform
Bespak's growth:
• Near term: Inhale inhaleable insulin
• Medium term: Reinvention of pulmonary drug delivery
• Long term: Nasal drug delivery
Bespak plc
Preliminary results for the 53 weeks ended 3 May 2002
Overview
In the past year the Group delivered a strong financial performance and at the
same time made significant progress implementing its strategy and re-organising
into three core businesses: Pulmonary, Device & Manufacturing Services and
Nasal. During the year new technology collaborations were announced and we made
further strides in developing existing technology platforms.
Looking ahead, we will continue to focus on growing our existing businesses
while at the same time progressing initiatives which can transform Bespak's
growth rate.
Financial review
Sales increased 16% to a record £91.0 million (2001: £78.7 million). Net
operating income, before investment in R&D, increased 11% from £17.4 million to
£19.2 million. As previously indicated, investment in R&D was increased
significantly by 39% to £5.5 million, and, as a consequence, Group operating
income amounted to £13.7 million (2001: £13.4 million). Operating margin, even
after the higher R&D investment, was 15.1% compared to 17.0% in the previous
year.
Profit before taxation, after net interest income of £1.1 million, amounted to
£15.0 million compared to £14.1 million last year, an improvement of 6%. After a
1% reduction in the tax rate to 27%, earnings per share improved by 8% to 41.3
pence. The Board is recommending an increase of 6% in the final dividend to 12.1
pence per share (2001: 11.4 pence), making a total for the year of 19.1 pence
(2001: 18.0 pence). This dividend will be paid on 8 October 2002 to shareholders
on the register on 28 June 2002.
Cash generation during the year was excellent and the Group finished the year
with net cash of £24.8 million compared to £8.3 million at April 2001. Higher
profits, favourable working capital movements and lower levels of capital
expenditure drove the improvement in net cash. The Group's strong balance sheet
and continuing cash generating capability will enable it to fund a significant
capital expenditure programme, further R&D and acquisitions that accelerate our
strategy.
Operating review
The Group's drug delivery business is now managed as three separate businesses
with obvious synergies between all three. These synergies include common
customers, partners and collaborators, similar development processes and
manufacturing technologies. The performance of each business and progress made
in each area during the year is outlined below.
Pulmonary
Bespak designs, develops and manufactures valves, actuators and accessories for
use in the delivery of drugs to the lungs. Pulmonary sales, comprising metered
dose inhaler valves and actuators, increased by 23% to £42.9m (2001: £34.9m).
This was largely driven by the continued transition to HFA valves in the
European market place for customers including Boehringer Ingelheim, IVAX and
Aventis. This transition is due to international agreements to reduce ozone
depletion in the atmosphere by switching from CFC to HFA propellants. Strong
demand for CFC products continued in the US market. The Group has authorised
significant capital expenditure to expand and create a state-of-the-art valve
manufacturing facility. Building work began in King's Lynn in January 2002 and
is expected to be completed by December 2002.
We have spent the last year building on the strengths of our Pulmonary business
and are delighted with the considerable progress which has been made to deepen
our scientific capability and develop new products. This includes a programme
which will represent a break-through in how drugs are delivered to the lungs.
The Group's Valves Centre of Excellence, focused on product development and
customer support, was strengthened during the year. We recruited a number of
leading experts to deepen our scientific expertise in aerosol formulations,
elastomers, and the science of valve development. These additions will enhance
our ability to develop our range of valves and new pulmonary products.
Also strengthened was our pulmonary pipeline. We currently have a number of new
valves with special surface coatings under customer evaluation such as our
Easifill valve that addresses the problem of dose content uniformity for more
difficult drugs. Additionally, we have successfully developed technologies to
increase the functionality of actuators, including dose counters, now being
shown to potential customers with market launch due within the next three years.
Another development currently underway in Pulmonary is investment in
technologies which will lead to a break-through in metered dose delivery. As
announced in April of this year we signed a collaborative agreement with DEKA
Research Corporation. DEKA, based near Boston, Massachusetts, has one of the
most innovative track records in medical device development. This includes
design of the first infusion pump, the first home dialyser, and the first
insulin pump. The aim of this collaboration with DEKA is to make systemic
delivery of drugs via the lungs patient specific, safe and repeatable,
addressing the problem of dose-to-dose variability in current drug delivery
approaches. We are partnering with DEKA to develop a drug delivery platform
which involves using a "feedback loop" to monitor drug flow to the lung and
adjust patient dosage in real time. Excellent progress is being made already,
with programme milestones being achieved.
Device & Manufacturing Services (DMS)
This business provides a comprehensive range of device-related services to
pharmaceutical and drug delivery companies. Bespak already provides the
broadest range of services in this area, taking customers' devices from concept
all the way through to gaining regulatory compliance, supply chain management
and full-scale manufacture. This range of services provides our customers with
the advantages of reducing the cost of the final device produced by designing it
for manufacture and minimising the time from concept to market.
In the period under review, DMS increased sales 12% to £41.0m (2001: £36.5m).
This growth was driven by demand for DiskusTM, GlaxoSmithKline's dry powder
inhaler, to support the successful launch of Advair, which is the first
combination bronchodilator/steroid drug in the US market.
Bespak continues the scale-up work required for Inhale Therapeutics' device for
the delivery of inhaled insulin, Exubera. This has required preparing Bespak's
manufacturing facility for regulatory validation while supplying clinical trial
quantities of devices. Pfizer, Inhale's partner, has announced that it intends
to file its NDA for Exubera as soon as it completes its clinical studies this
year. We remain confident that Pfizer and Inhale will be successful in launching
Exubera, the first inhaled protein drug.
During the past year we have also announced new supply and development
agreements with a number of new customers. Bespak will manufacture and assemble
the actuator unit for Weston Medical's innovative, needle-free drug delivery
system, IntrajectTM, as well as developing for manufacture Battellepharma's
novel inhalation device using electrohydrodynamic aerosol delivery technology.
We are also currently scaling up to develop and manufacture Sheffield
Pharmaceuticals, Inc.'s TempoTM device, a new generation metered dose inhaler,
and manufacturing an injection device for Abbott Laboratories.
Looking to the future, Bespak will continue to develop and expand the range of
services it provides to its customers. We believe that adopting this strategy
differentiates us from our competitors and provides growth opportunities for the
future.
Nasal
Bespak is developing formulation and device technologies to provide solutions
for systemically acting drugs, transported via the bloodstream, where low
bioavailability and time to onset can be improved via nasal delivery. To
implement this strategy Bespak is developing nasal formulation expertise to
complement its existing device capability. We are doing this through a
distributed R&D model which is based on collaborations with world-class
scientific institutions. During the year, good progress has been made developing
our formulation technologies through these agreements
Bespak's distributed R&D model maximizes speed and the probability of success.
We seek out the best technology in the world to license and then establish
programmes with experts to develop it under our management. Milestones for each
element of the programme are agreed and regularly reviewed. A key element of
this approach is to mount parallel programmes, each managed for "fast failure,"
allowing funding to shift to those programmes that look most likely to succeed.
We rigorously protect the intellectual property generated.
Our PEGylated nanoparticle formulation programme, technology licensed from the
Massachusetts Institute of Technology (MIT), is making good progress and we have
established collaborations with nine centres of excellence around the world.
These include MIT, USA; Queen's University Belfast, UK; University Santiago de
Compostela, Spain; NextBreath, USA, and the Chemical Industry Institute of
Toxicology (CIIT), USA. All our agreed milestones have been met at this stage.
In April 2002, we were pleased to announce an exciting partnership with
Lyfjathroun, an Icelandic nasal drug delivery company, for mucoadhesive
formulations. This collaboration gives Bespak the opportunity to use
Lyfjathroun's research and development capabilities to create new nasal
products. The aim is to develop proprietary formulations which will be used with
Bespak's devices and then commercialise them by partnerships with pharmaceutical
companies. Early pre-clinical data indicate substantially lower time-to-onset
and a marked improvement in bioavailability of a well-known nasally administered
drug.
In May 2002, we announced a significant nasal drug delivery collaboration with
CIIT. This collaboration, which is exclusive for the next three years, will
determine how drugs can be targeted to reach the most appropriate delivery area
in the nasal cavity. This development programme will aid the efficient dosage of
high value drugs.
We continue to develop our devices for nasal drug delivery and are actively
evaluating other nasal technologies to add to our portfolio - we hope to
announce a number of new collaborations during the course of this financial
year. This approach reduces risk by eliminating reliance on one technology and
increases our chances of success.
Bespak Consumer Dispensers
After a period of evaluating the options for Bespak's personal care business we
decided to maintain Bespak Consumer Dispensers as part of the Group. This
business leverages the competencies and skills of Bespak and a new product
development programme is in place to secure its future.
Management
Last week we announced that Paul Taylor, Chief Technology Officer and board
member, has been named Director of Strategic Technologies at the Ministry of
Defence, and therefore has tendered his resignation from the Company. We are
delighted he has agreed to chair Bespak's Scientific Advisory Committee, a group
of technology advisers, and are very confident that the managers he has put in
place, and who are now leading our development programmes, will ensure that our
progress continues apace. The search for a suitable replacement of comparable
stature has begun.
Outlook
The forthcoming financial year is likely to see demand at similar levels to the
previous year. As previously indicated, we are committed to contractual price
reductions on one of our major products and uncertainty still remains as to the
exact timing of new product launches.
In light of the success we have achieved to date, we anticipate making further
investment in technologies to support our Pulmonary and Nasal businesses.
The Board of Bespak believes the Group is now firmly on track to build an
expanding and innovative drug delivery company. We will continue to invest in
developing technology in our Pulmonary and Nasal businesses while generating
profits and cash from our established businesses. We look forward to updating
the market on progress throughout the remainder of 2002 and into 2003.
Mark Throdahl
Chief Executive Officer
18 June 2002
Consolidated Profit and Loss Account (Unaudited)
For the 53 weeks ended 3 May 2002
Note 2002 2001
Total Total
(restated)
£000 £000
Turnover 2 91,005 78,695
Operating expenses (77,296) (65,281)
Group operating profit 13,709 13,414
Share of net operating profits of joint ventures and associates 225 240
Total operating profit 2 13,934 13,654
Net interest receivable 1,097 462
Profit on ordinary activities before taxation 15,031 14,116
Taxation 3 (4,068) (3,953)
Profit for the financial year 10,963 10,163
Dividends 4 (5,068) (4,770)
Retained profit for the year 5,895 5,393
Earnings per 10p ordinary share
Basic (pence) 5 41.3p 38.4p
Diluted (pence) 5 41.0p 38.1p
Consolidated Balance Sheet (Unaudited)
At 3 May 2002
2002 2001
(restated)
£000 £000
Fixed assets
Intangible assets 437 422
Tangible assets 57,991 59,567
Investments 2,448 1,696
60,876 61,685
Current assets
Stocks 3,387 3,486
Debtors 10,171 12,137
Short-term investments 31,473 19,840
Cash at bank and in hand 2,892 190
47,923 35,653
Creditors
Amounts falling due within one year (31,322) (25,110)
Net current assets 16,601 10,543
Total assets less current liabilities 77,477 72,228
Creditors
Amounts falling due after more than one year (2,044) (4,246)
Provisions for liabilities and charges (5,730) (4,972)
Net assets 69,703 63,010
Capital and reserves
Called up share capital 2,679 2,655
Share premium account 22,988 21,784
Profit and loss account 44,036 38,571
Equity shareholders' funds 69,703 63,010
Consolidated Cash Flow Statement (Unaudited)
For the 53 weeks ended 3 May 2002
Note 2002 2001
Total Total
£000 £000
Net cash inflow from operating activities 6 27,749 20,136
Dividends received from associated companies 87 58
Returns on investment and servicing of finance
Interest received & other financial income 1,702 1,119
Interest paid (553) (617)
1,149 502
Taxation
UK corporation tax (3,253) (3,307)
Overseas tax received/(paid) 174 (288)
(3,079) (3,595)
Capital expenditure and financial investment
Payments to acquire intangible fixed assets (67) (459)
Payments to acquire tangible fixed assets (4,902) (10,793)
Receipts from sales of tangible fixed assets 146 58
Purchase of fixed asset investments (19) (120)
Receipts from sale of fixed asset investment - 7
(4,842) (11,307)
Equity dividends paid (4,878) (4,555)
Net cash inflow before management of liquid resources
and financing 16,186 1,239
Management of liquid resources
Increase in short-term investments (11,633) (4,490)
Financing
Payment for shares 158 404
Net decrease in loans (2,183) (2,123)
Net cash outflow from financing (2,025) (1,719)
Increase/(decrease) in net cash 2,528 (4,970)
Statement of Total Recognised Gains and Losses (Unaudited)
for the 53 weeks ended 3 May 2002
Note 2002 2001
Total Total
(restated)
£000 £000
Profit on ordinary activities after taxation 10,963 10,163
Exchange movements on foreign currency net investments (110) 470
Total recognised gains and losses for the financial year 10,853 10,633
Prior year adjustment 1 (4,498)
Total gains and losses recognised since last annual report 6,355
Reconciliation of Movements in Equity Shareholders' Funds (Unaudited)
for the 53 weeks ended 3 May 2002
Note 2002 2001
Total Total
(restated)
£000 £000
Equity shareholders' funds brought forward 1 63,010 56,746
(originally £67,508,000 before deducting prior year
adjustment of £4,498,000)
Profit on ordinary activities after taxation 10,963 10,163
Dividends 4 (5,068) (4,770)
Exchange movements on foreign currency net investments (110) 470
Movement relating to QUEST (320) -
Issue of ordinary share capital 1,228 401
Equity shareholders' funds carried forward 69,703 63,010
Notes To The Preliminary Announcement
1. Basis of preparation and accounting policies
(i) Basis of preparation
The profit and loss account covers the 53 weeks (2001 52 weeks) to 3 May 2002.
The balance sheets have been drawn up at 3 May 2002 and 27 April 2001
respectively. The results of overseas subsidiaries have been translated into
sterling at the average rates of exchange ruling during the financial year.
The accounting policies applied are those set out in the Group's Annual Report
and Accounts for the 52 weeks ended 27 April 2001 except that the Company has
implemented the following new Financial Reporting Standards: FRS 17 "Retirement
benefits"; FRS 18 "Accounting policies"; and FRS 19 "Deferred tax".
FRS 17 and FRS 18 had no effect on the Group results in the period.
In accordance with FRS 19, the Company has changed its policy on deferred
taxation. Full provision for deferred taxation is now made on all timing
differences. Deferred taxation in respect of prior years has been written off
against opening reserves as a prior year adjustment. As a result of the change
in accounting policy, comparative figures for the 52 weeks to 27 April 2001 have
been adjusted as follows: -
Profit after tax for the Basic earnings per
52 weeks to 27 April share Net assets
2001
£000 pence £000
As previously reported 11,011 41.6 67,508
Effect of the change in
accounting policy (848) (3.2) (4,498)
As restated 10,163 38.4 63,010
The profit after tax for the 52 weeks ended 27 April 2001 has been decreased by
£848,000 as a result of the change in accounting policy.
(ii) Abridged accounts
Abridged accounts for the preliminary results for the 53 weeks ended 3 May 2002
are unaudited. The financial information set out in the announcement does not
constitute the Company's statutory accounts for the 53 weeks ended 3 May 2002 or
27 April 2001. The financial information for the 52 weeks ended 27 April 2001 is
derived from the statutory accounts for that year which have been delivered to
the Registrar of Companies as modified by the implementation of FRS 19. The
auditors reported on those accounts; their report was unqualified and did not
contain a statement under either Section 237(2) or Section 237 (3) of the
Companies Act 1985. The statutory accounts for the 53 weeks ended 3 May 2002
will be finalised on the basis of the financial information presented by the
directors in this preliminary announcement and will be delivered to the
Registrar of Companies following the Company's Annual General Meeting.
2. Segment information
The analysis of turnover, Group operating profit and net assets is as follows:
2002 2001
£000 £000
Turnover by product
Pulmonary 42,907 34,924
Device & manufacturing services 40,953 36,541
Personal care 7,145 7,230
91,005 78,695
Average rate of exchange £1 Sterling: US $ 1.43 1.47
Geographical area (turnover by destination)
2002 2001
£000 £000
United Kingdom 43,314 38,703
United States of America 23,347 17,368
Europe 16,923 14,753
Rest of the World 7,421 7,871
91,005 78,695
Turnover by origin
United States of
United Kingdom America Total
2002 2001 2002 2001 2002 2001
£000 £000 £000 £000 £000 £000
Total sales 79,271 66,367 21,535 18,261 100,806 84,628
Inter-segment sales (9,801) (5,933) - - (9,801) (5,933)
External sales 69,470 60,434 21,535 18,261 91,005 78,695
Total operating profit
Group operating profit
by segment 14,572 13,587 (863) (173) 13,709 13,414
Income from joint ventures and associates 225 240
13,934 13,654
Net assets
2002 2001
(restated)
£000 £000
United Kingdom 41,919 47,483
United States of America 11,943 15,874
53,862 63,357
Unallocated net assets/(liabilities):
Investments 2,448 1,696
Provisions for liabilities and charges (5,730) (4,972)
Tax and dividends (5,645) (5,329)
Net funds 24,768 8,258
69,703 63,010
Closing rate of exchange £1 Sterling: US $ 1.47 1.44
3. Taxation
2002 2001
(restated)
£000 £000
UK corporation tax at 30% (2001 - 30%) 3,230 3,057
Deferred taxation 752 848
Share of taxation of joint ventures and associates 113 111
Overseas taxation (27) (63)
4,068 3,953
The taxation charge for 2001 has been increased by £848,000 as a result of the
change in accounting policy for deferred taxation following the adoption of
FRS19 (see note 1).
4. Dividends
2002 2001
£000 £000
Interim dividend of 7.0p per share paid on 18 February 2002
(2001 - 6.6p) 1,857 1,749
Proposed final dividend of 12.1p per share payable on 8 October 2002
(2001 - 11.4p) 3,211 3,021
5,068 4,770
The record date for the proposed final dividend is close of business on 28 June 2002
5. Earnings per share
2002 2001
(restated)
Net profit attributable to shareholders (£000) 10,963 10,163
Basic earnings per share (pence) 41.3p 38.4p
Diluted earnings per share (pence) 41.0p 38.1p
Weighted average number of ordinary shares in issue 26,570,967 26,503,513
Shares owned by Employee Share Ownership Trusts (52,739) (58,545)
Average number of ordinary shares in issue for basic earnings 26,518,228 26,444,968
Dilutive impact of share options outstanding 193,368 209,420
Diluted average number of ordinary shares in issue 26,711,596 26,654,388
Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares in issue
during the year, excluding those held in the employee trusts which are treated
as cancelled.
For diluted earnings per share, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all dilutive potential shares.
Basic earnings per share for the year ended 27 April 2001 have been reduced from
41.6p to 38.4p as a result of the change in accounting policy for deferred
taxation following the adoption of FRS19 (see note 1). Diluted earnings per
share have been reduced from 41.3p to 38.1p for the same period.
6. Cash flow from operating activities
Reconciliation of operating profit to net cash inflow from operating activities
2002 2001
£000 £000
Operating profit 13,709 13,414
Depreciation 6,491 6,260
Amortisation 51 37
(Profit)/loss on sale of tangible fixed assets (41) 52
Profit on sale of fixed asset investment - (3)
Decrease/(increase) in stocks 87 (160)
Decrease in debtors 1,750 1,729
Increase/(decrease) in creditors 5,690 (883)
Increase/(decrease) in provisions 12 (310)
Net cash inflow from operating activities 27,749 20,136
7. Analysis of net funds
The table below provides an analysis of net funds and a reconciliation of net
cash flow to movement in net funds.
At 28 April Cash Exchange At 3
2001 flow movements May 2002
£000 £000 £000 £000
Cash at bank and in hand 190 2,716 (14) 2,892
Overdrafts & short-term loans (5,374) (188) 100 (5,462)
Net overdrafts & short-term loans (5,184) 2,528 86 (2,570)
Loans and leasing obligations (6,398) 2,183 80 (4,135)
Short-term investments 19,840 11,633 - 31,473
Net funds 8,258 16,344 166 24,768
Financing items included in cash flow movements
Payment for shares (158)
Net cash inflow before management
of liquid resources and financing 16,186
This information is provided by RNS
The company news service from the London Stock Exchange
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