Shares in Deeside-based ConvaTec slump over 30% following a profit warning

Shares in ConvaTec, the Deeside Industrial Estate based medical equipment manufacturer took a heavy hit today following a profit warning and news chief executive, Paul Moraviec is to step aside.

Shares plunged more than 33% following a trading statement which has cut ConvaTec’s growth forecast, it now expects to end the year flat compared to previous guidance of +2.5% to +3%.

ConvaTec blamed the forecast on an ‘inventory policy’ change by its biggest customer of infusion devices, revenue is expected to be hit by as much as  £17.4m.

Share price at 4pm today

ConvaTec also announced today the CEO Paul Moraviec was is stepping down as Chief Executive Officer and cease to be a Director with immediate effect.

Rick Anderson, currently a Non-Executive Director of ConvaTec will assume the position of Interim Chief Executive Officer.

Paul Moraviec said: “We have made significant progress during my time as chief executive officer and I am confident that Convatec now has the strong platform, infrastructure and leadership to enable the business to flourish.”

“I would like to thank all my colleagues across Convatec for their hard work and dedication, they have taken Convatec to a leading position in the MedTech industry and I look forward to watching the company’s future success.”

“The Board continues to have confidence in the fundamentals of the business and its future potential. Our cost out plans are under development and the Group will provide an update on these with the FY 2018 results in February 2019.” The company said.

Architects image of the £7m research and development facility which is currently being considered by planners in Flintshire

ConvaTec submitted plans in August to construct a new £7m research and development facility at their Global Development Centre in Deeside.

The plans which also include increased office accommodation, extended cafeteria with dining area for up to 50 people, and additional parking at the First Avenue site are currently under consideration by Flintshire planners.

A company spokesperson told Deeside.com today’s profit warning will not “alter the (planning) process – which we have entered into but any final capital investment decisions will have to be considered by our new CEO.”