Troubled Ransom issues delayed results

The release of the results for the year ended 31 March was delayed while the company held discussions with Barclays about the bank’s continued support of the company. Non-executive chairman David Suddens said: "Last year was a very challenging one for the company. We have since made a number of difficult decisions in order to maintain bank support and improve the performance and potential of the business. Good progress has been made in the implementation of our turnaround plan, including debt reduction through the disposal of non-core assets and better working capital management." The year’s travails saw the company's manufacturer's licence for its Witham, Essex facility temporarily suspended because of concerns over aspects of its manufacturing process and documentation, a breach of its banking covenant and the suspension of dealings in its shares. Following a boardroom shake up, Ransom now also faces a general meeting forced by former directors who want to remove the current board. Sales for the year were £35.1 million, £1.4 million lower than prior year sales and exceptional costs associated with reorganisation and the licence suspension led to an pre-tax loss of £7.7 million. Looking ahead, the company said the new management team under Ivor Harrison, who was appointed in May, had begun the rationalisation required for the success of the business. “There will be more marketing spend dedicated to fewer consumer products, positioned in strategically chosen market segments and branded in a consistent manner,” Suddens said. This would provide opportunities to re-establish momentum within the UK consumer business. Progress was also being made to establish Ransom’s natural products business as a supplier of choice to food and drink manufacturers. Steps were also being taken to divest the company's pharmaceutical contract manufacturing business. “The wider economy will not be helpful in the coming year but I believe that the new management team has the drive, expertise and imagination to turn the business around and deliver improving results,” Suddens concluded.