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Ransom to sell contract manufacturing business
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13/09/2008
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The troubled natural healthcare products specialist Ransom said yesterday (12 September) it will simplify its business and sell off its pharmaceutical contract manufacturing business in Witham, Essex.
Ransom said its new strategy, devised by recently appointed chief executive, turnaround specialist Ivor Harrison (pictured), was 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 which considered Ransom's history in the field of plant extraction and increasing consumer sentiment towards natural remedies. The company intends to focus on products with an emphasis on both the naturalness as well as the scientific basis for its products.
The strategy includes the sale of the contract manufacturing business together with various brands that were not consistent with the new strategy such as the cough medicine Pavacol, the disposal of which was announced last month.
Notwithstanding this, the trading outlook for Ransom in the current financial year remained difficult as the macro-economic environment continues to deteriorate and consumer spending remained under pressure, the company said.
It was envisaged that sales from the company's UK business would run at a level below last year until the re-positioning of the core brand portfolio was completed. Export volumes, however, should be maintained, it said, and the company should also start to benefit from its newly launched on-line direct-to-consumer business, trustwilliam.com.
Ransom added that discussions with its lending bank regarding its facilities were progressing satisfactorily and it was continuing to operate within its facilities and with the bank's support. However, its shares will remain suspended until a new facility is agreed.
Harrison said: "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."
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Author
Ken Hurst
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