Pharma group assures market it can cut debt fast
Aspen group CEO Stephen Saad and deputy group CEO Gus Attridge explain the scenarios for cutting the company's debt, an issue that has concerned shareholders and resulted in a sharp sell-off in shares
The Aspen business model is being questioned; does it remain relevant? The Aspen business model remains as relevant today as it has been over the last two decades. The model entails investment to build a product portfolio and then growing the value of the products through our sales, marketing and manufacturing capabilities. It also entails regular reviews and reshaping of the portfolio through disposals. Product disposals together with the profits from the organic returns generated by the portfolio provide the funding for select new acquisitions. This model has allowed us to grow from a zero base to a global multinational with sales in our last financial year in the region of R42bn and net profits of R6bn. All of this has been achieved with the issue of very little new equity. The sharp fall in the Aspen share price has been attributed to concerns that your debt is too high and that you have banking covenants which are in danger of being breached. How did that occur and what is the ...
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