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.
Top Gear presenter is no stranger to foot-in-mouth controversy
Review: Mike Leigh biopic is a rambling, rich character study
Want to ward off (or welcome) trick-or-treaters? Here's how
- 1 'Nasa Confirms Six Days of Darkness in December': No, they don't - it's a hoax
- 2 Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
- 3 Topshop at centre of row over body image as 'shocking' skinny mannequin photo goes viral
- 4 If you think Russell Brand’s new book is confused, you should read what his critics have to say about it
- 5 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
'Nasa Confirms Six Days of Darkness in December': No, they don't - it's a hoax
Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
Topshop at centre of row over body image as 'shocking' skinny mannequin photo goes viral
Halloween 2014: From the Screaming Man of Pluckley to the 'White Lady' of the Tower of London - Britain's 20 most haunted places
Russian politician says Apple CEO Tim Cook should be 'banned' from country after coming out as gay
Pope Francis declares evolution and Big Bang theory are real and God is not 'a magician with a magic wand'
Huge surge in Ukip support after EU funding row, according to new poll
Ukip ‘exploiting grooming scandal’ to secure party’s first police chief
Nigel Farage: 'There’s nothing wrong with white people blacking up'
Maureen Lipman says 'she can't vote Labour while Ed Miliband is leader'
Muslims, immigration and teenage pregnancy: British people are ignorant about almost everything
iJobs Money & Business
£20000 - £23250 Per Annum pro rata: Clearwater People Solutions Ltd: Pro rata ...
£40 - 48k + Benefits: Guru Careers: We are seeking a Marketing Manager to join...
£45,000 - £65,000: Saxton Leigh: Our client is a well-known APAC Corporate and...
£60000 per annum: Ashdown Group: Compensation and Benefits Manager - Compensat...