Beleaguered Scots syringe group injects burst of hope

Published on Tuesday 23 August 2005 11:56

NMT Group, the troubled Livingston-based safety syringe designer, has managed to more than halve its losses over the past financial year.

Posting half-year results for the six months to June 30, the company announced losses of 500,000 compared with 1.2 million at the same time last year.

And it said cash balances conformed to expectations of 6.5m, from 7m last December.

The successful loss-trimming brings a glimmer of hope to the beleaguered syringe-maker, which last month warned it faced a possible sell-off following problems with an Asian licensing agreement.

A year ago, NMT ended all manufacturing activity at its Livingston headquarters, with the loss of about 140 jobs.

Another positive piece of news announced in the latest half-year update was that a marketing trial is currently under way for the group's Safety Needle Unit with an unnamed American pharmaceutical company.

And talks are ongoing to sign a licensing contract for 2-G safety syringes in the Far East - a deal which could lead to a government-regulated bidding process for other equipment associated with the syringes.

Tony Fletcher, the group's chairman, said NMT was continuing to discuss the best ways of progressing the company.

Commenting on the results, he said: "The company is continuing its twin strategy of seeking to secure licensing agreements for its existing products and of evaluating strategic options for the business."

Mr Fletcher added that NMT was open to finding the best solution from a number of companies in the medical services sector.

"The company is continuing to evaluate various options with a view of seeking to identify the best way to maximise the value of NMT's assets for shareholders."