PHARMACEUTICALS giant Zeneca was yesterday forced to issue a profits warning because of the effects of the strong pound.
Chairman Sir Sidney Lipworth told shareholders at the company's annual meeting that sterling's strength may wipe up to #110m off profits.
The recent falls by the pound against other major currencies -
it recently closed at a seven-month low against the German mark - may have come too late to stave off the massive currency hit. In its
latest financial year Zeneca made profits of #1080m, a company record.
''The strength of sterling impacted 1997's results adversely and this situation has carried over into 1998, a factor recently highlighted by other UK-based pharmaceutical companies,'' Sir Sidney said.
''In the first four months of the year sterling has continued to strengthen and if it were to remain at today's rates for the rest of the year, then Zeneca's 1998 profits would be adversely affected by around #110m,'' he warned.
Zeneca also mapped out a boardroom succession. It was announced that Sir Sidney would retire next year and be replaced by chief executive Sir David Barnes. Sir David's successor is Tom McKillop, head of the pharmaceutical division.
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