Meldex’s shares fell as much as 19 per cent after 2007's revenues failed to match those indicated in its trading update in late January. Moreover, the group's pre-tax profit (adjusted for such items as amortisation and exceptionals) reached just £1.6m - well below broker Landsbanki's £3.8m forecast.
Shareholders shouldn't, however, be too alarmed as the difference reflects accounting issues. Essentially, International Financial Reporting Standards doesn't allow for the inclusion of two group products - Rocgel and Alfatil - that were acquired during the year, says management. The good news for shareholders, according to chief executive Richard Trevillion, is that this will be overlooked by the potential bidders that the company has been in discussions with since the beginning of the year.