Financial review

Revenue from products and services in 2008/09 fell, as expected, by 5.2% to GBP120.3 million (2008 re-presented: GBP126.9 million).

Operating profit before special items fell 1% to GBP18.9 million. Bespak contributed an operating profit of GBP13.5 million, with an operating margin of 16.6%, significantly up from 15.1% last year.

Profit before tax and special items increased 1.5% to GBP17.9 million (2008 re-presented: GBP17.6 million). Finance income increased to GBP0.8 million, with cash deposits being locked in at high interest rates for most of the financial year.

Profit before tax of GBP12 million was 186% up from GBP4.2 million in the prior period.

Profit after tax but before special items increased by 3% to GBP13 million (2008: GBP12.7 million). Tax of GBP4.4 million included a GBP1.4 million charge relating to the abolition of Industrial Buildings Allowances, a non-cash adjustment. The underlying tax of GBP4.8 million reflected a rate of 27.1% (2008: 27.9%). Profit after tax and special items increased by 188% to GBP7.6 million.

The board is recommending a maintained final dividend per share of 12.1 pence (2008: 12.1 pence) such that the total dividend for the year amounts to 19.1 pence (2008: 19.1 pence). The final dividend will be paid on October 23, 2009 to shareholders on the register on September 25, 2009. Dividend cover, based on earnings before special items, was 2.4 times (2008: 2.3 times).

Jon Glenn, chief executive officer, commented:

I am very pleased with Consort Medical’s performance this year. We have increased like-for-like revenues and profit and we have maintained our final dividend despite a challenging market. Bespak and King Systems are both performing well and we are today announcing an investment programme that will help us increase margins across both these business. I am confident that this programme will give our newly strengthened management team the platform to deliver improved products to patients and drive value for shareholders.

Consort Medical is a healthcare company focused on medical device technologies for drug delivery to and management of patient airways.