Bespak slips up yet again
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Bespak has specialised in banana skins over the past two years or so but with yesterday's profits warning, the latest in a string of negative trading statements, it surpassed itself.
Shares in the medical aerosol valve manufacturer have plunged since reaching a high of 707p in March 1993. The latest revelation, that the company is committed to paying £2m a year in royalties for eight years on a product for which not a single customer has been found, saw the shares tumble a further 50p to 253p.
Negotiations are continuing with the developers of the device, a new dry powder inhaler from Innovata Biomed, but brokers believe the resulting charge could approach £12m. On top of that, the company warned that recent problems in America with its largest customer, US Surgical, would lead to a further provision of up to £800,000.
Although trading had improved in the second half, Bespak warned that profits for the year ending this month would be below last year, before charges.
One City estimate suggests those could turn last year's profits of £7.1m into a loss of around £5m.
New chief executive Peter Chambr, formerly of Caradon, said yesterday Bespak was making progress addressing last year's manufacturing problems in North Carolina, while non-US Surgical customers for Tenax Danbury, the other US subsidiary, are at record levels. But he still has a hard struggle to restore Bespak's reputation, particularly with Bob King, the man who signed the Innovata deal back in 1991, still sitting in the chairman's seat. Avoid.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments