"it generated cash" - you and I must be reading off a different...

"it generated cash" - you and I must be reading off a different song sheet.

"Got rid of a dalliance" - I wish I could afford a $2.7m odd "dalliance", especially using someone elses money.

How can management run a 40 year old business into the ground in the space of 2 and a half years. According to the article below, when bought this business would have been cashflow positive and capable of servicing the $2M net cash to purchase it and provide cash surpluses. This is one question the board of directors needs to answer,

If the second article is correct, in that the business was sold back to its previous owner's, it's no wonder SFP management have been so quiet. Other than going back to the previous owner's, what else did they do to market the business?

They will still have to front the shareholders at their annual meeting.

Am I the only one who is very disappointed with how things are going for this company. - Clearly the tanking of the shareprice is a reflection of shareholder sentiment and confidence.

Turnover to date is not much more than any small mum and dad business. - Maybe the board should accept a mum and dad wage.

Recent announcement re- downgrade to sales and profit is not inspiring. Neither is the fact that their existing bankers have retained a portion of the sale proceeds as
security for their existing loans.

I have only seen the ad's for Pureste a couple of times. Recent company announcements said that Toni Pearon was to have been the face for their marketing campaign. Can anyone confirm for me if they have seen her in any of their ad's?


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http://www.news.com.au/adelaidenow/story/0,22606,21288394-913,00.html

CAMERON ENGLAND
February 26, 2007 02:40pm
..SAFETY Medical Products has made its second acquisition, buying Adelaide-based manufacturer and printer Bagot Press for $4 million.

SafetyMed managing director John Riemelmoser said today Bagot would be tasked with developing the company's MediTag product, in partnership with the company's other recent acquisition, ProControl Systems.

MediTag is a temperature sensitive label which can be attached to medicines which need to be maintained at a certain temperature to guarantee quality.

Mr Riemelmoser said Bagot was a profitable business, with turnover of more than $3 million and net profit of $600,000 per year.

"It is expected that this latest acquisition, when coupled with the recent ProControl acquisition, should result in an expected trading profit for SafteyMed this calendar year and make the company cashflow positive from the point of completion," Mr Riemelmoser said.

"This is before the imminent contribution by the company's flagship product, the SecureTouch retractable syringe."

"With the automated mass production trials of the (syringe) to commence this month and production at the Exel Korean factory expected soon thereafter, the two recent value-accretive acquisitions and market entry of the retail product range should position SafteyMed strongly with significant revenues to come on stream during 2007."

Mr Riemelmoser said significant cost savings would be achieved once all three companies started working together and eventually consolidated at one premises.

The acquisition, which is subject to due diligence, will be paid with $2 million in cash and $2 million in SafteyMed shares. Settlement is expected for April 30.

SafteyMed shares added were steady at $1.07 this morning.


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http://www.news.com.au/adelaidenow/story/0,22606,25717924-5003680,00.html

MEREDITH BOOTH
July 01, 2009 12:30pm

SAFETY Medical Products has sold subsidiary Bagot Press back to its previous owners for $1.3 million, $2.7 million less than its purchase price in February 2007.

Bagot Press, a pharmaceutical printing specialist, supplies printing services and consumable products to more than 2000 retail pharmacies across Australia.

The buyer, who did not want to be named, said sales margins for the 40-year-old business had shrunk in recent times but turnover had increased,making it a viable business.

The sale, settled today, includes goodwill, inventory, plant and equipment and was "a significant premium to what could otherwise be achieved in the open market'', Safety Medical said in a statement to the Australian Securities Exchange.

However the company had to take a $640,000 write down on intangible assets on Bagot Press last financial year ``in line with the extremely difficult economic climate''.

The syringe makers has renegotiated with its banker NAB to have the security over Bagot Press replaced with a $500,000 three month term deposit which would be released to Safety Medical Products subject to new subsidiary Pureste's achieving its sales targets.

In December, the company said it had secured $9.5 million from NAB to fund the launch, marketing and mass national distribution of the Pureste range, supported by ``brand ambassador'', TV personality Toni Pearen, with expected sales of $15 million in the next 12 months.

At time of publishing Safety Medical Products managing director John Riemelmoser was unavailable for comment.


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What's today's share price????