Medisys chief exec goes after profits alert
Saturday 26 February 2005
The Medical equipment group Medisys ousted its chief executive yesterday and warned that tough competition in glucose monitoring would hit its annual profits, sending its shares down 35 per cent.
The company, which specialises in blood monitors for diabetics, said it decided on Thursday that the chief executive, David Conn, should step down. It expects to appoint a replacement in a few months. Mr Conn will continue to work for the group's glucose-monitoring unit.
Medisys warned in December that it was encountering growing competition in the long-term care segment of its glucose-monitoring business. Since then, competition had intensified, it said yesterday, forcing the company to pursue a more aggressive pricing and promotional strategy with some customers to protect its market share.
It said: "The company anticipates that this more competitive environment will continue to impact sales for at least the remainder of the financial year (to 30 September)."
Medisys was hit by increased competition from its rivals, such as Abbott and Johnson & Johnson, for its blood-glucose monitoring product, which sells mainly in US nursing homes for diabetics.
The companyexpects sales in the six months to the end of March to be about 5 per cent lower than in the year-earlier period - "materially less than market expectations" - which will "significantly reduce the company's profitability."
Analysts said they would slash their forecasts. Sebastien Jantet, at Investec Securities, said: "It's a very disappointing trading statement. They'll miss the forecast for the first half and for the full year. There will be substantial downgrades."
Faced with lower sales, Medisys said it would look for new ways to cut costs and opted to close its London office to achieve annualised savings of £400,000. It is transferring its London operations to Minneapolis in the US and Woodbridge in the UK. Michael Barry, the company's finance chief, said the London closure would result in a "handful of people" being laid off.
Medisys also announced that it would write off £6.8m of assets relating to Futura Safety Syringe after an auction failed to generate successful bids for the unit. Its shares ended down 2.02p at 3.72p.
On a brighter note, the company hopes to expand its presence in the retail segment by providing a private branded blood glucose monitoring product to the Target Stores retail chain in the US. Target plans to launch the product this year.
- 1 Dentist who illegally killed Cecil the lion blames local guides for the scandal
- 2 Kate Winslet thanked 'particularly horrible' girl who bullied her at school after Titanic success
- 3 Norwich paedophile ring: Woman at centre of gang who made children 'sexual play things' guilty of 23 offences
- 4 Black and ethnic minority people twice as likely to be hit by Tory cuts than white people, report finds
- 5 Walter Palmer: American dentist revealed as the killer of Cecil the lion in Zimbabwe
Dentist who illegally killed Cecil the lion blames local guides for the scandal
Kate Winslet thanked 'particularly horrible' girl who bullied her at school after Titanic success
Norwich paedophile ring: Woman at centre of gang who made children 'sexual play things' guilty of 23 offences
Black and ethnic minority people twice as likely to be hit by Tory cuts than white people, report finds
Walter Palmer: American dentist revealed as the killer of Cecil the lion in Zimbabwe
Labour leadership contender Jeremy Corbyn says 'we can learn a great deal from Karl Marx'
The last thing Labour needs is a leader like Jeremy Corbyn who people want to vote for
I am the Jeremy Corbyn supporter that many will tell you doesn't exist
Public anger after French sunbather beaten up by gang for wearing a bikini in Reims park
Labour leadership: New poll shows party is now even 'less electable' than under Ed Miliband
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
iJobs Money & Business
£22500 - £24500 per annum: Recruitment Genius: Inbound and outbound calls with...
£18000 - £40000 per annum: Recruitment Genius: This fast growing Insurance Bro...
£40 - 45k (DOE) + Benefits: Guru Careers: A Research Associate / Research Anal...
£20000 Per Annum: The Green Recruitment Company: Summary: The Green Recruitm...