Progress at Ransom after wholesale manufacturing changes

The company reported its financial results for the year ended 31 March showing revenue of £30.2 million (2009: £32.5m) and an operating loss of £12.2 million (2009:£1.7m) including £14 million of exceptional costs. Ransom also reported having secured a three year financing agreement with the Belgian bank KBC, its exit from loss making operations in Italy and the departure of its chief executive Ivor Harrison to join a private venture and chairman David Suddens who will be succeeded by Sir Roger Jones. Ransom had addressed what it described as a major factor in the weakness of the company – onerous and costly supply agreements in Ransom Consumer Health division. The decision was taken at the start of the year to move the supply base to the UK to secure better terms and more reliable supply. "The scale and complexity of this task was significant but I am pleased that this has now almost been completed," Harrison said. Commenting on the results and the outlook, David Suddens said: "Progress is painstaking but real. What the company needs is a breathing space from financial pressure to be able to implement its strategy. "The two manufacturing divisions have undergone wholesale change and have returned to profitability. The prospects for Ransom Natural Products remain good and sales are currently increasing. Ransom Consumer Health has become a more focused business unit following the divestment of most of its licensed pharmaceutical brands. Products and packaging have been upgraded but marketing investment is required to make the most of the inherent attractiveness of these products. As savings from the restructuring of the supply chain are realised, resources are expected to become available to develop new products and to invest in consumer communication."