William Ransom looks forward to cash boost from site sale
profits slip in the first half of the year but said it remains
focused on its acquisition strategy, to be funded by cash from a
planned site sale.
The group which is aiming to become the UK's leading natural healthcare firm said sales declined by 1.6 per cent to £6.731 million for the first six months of the year and reported losses of £216,000 compared to £211,000 the previous year.
However cash flow has improved, to £353, 000 from £87,000, largely due to improved debtor collections, according to Ransom.
In the Pharmaceuticals and Natural Extracts Division sales in the first half stayed level with those in the period to 30 September 2002. The company has already begun to take operational decisions to facilitate its proposed site move and has terminated some contract and other business not intended for transfer to the new site.
The planned sale of a key site, reported to be progressing and already producing offers, is expected to produce operational savings with consolidation of the company's pharmaceutical manufacturing activities onto one site. The move has yet to be confirmed but would also generate cash for a new state-of-the-art botanical extraction facility.
The company is however focusing on natural healthcare brands, hoping to take advantage of an increase in interest in natural health and divestments by pharmaceutical firms of national brands, which Ransom is interested in acquiring.
