£1.5bn Convatec blow

ALMOST £1.5bn was wiped off the value of Convatec after it issued a profit warning and revealed its boss had quit.

The FTSE250 medical equipment maker, which makes specialist bandages and colostomy bags, said chief executive Paul Moraviec was retiring ‘with immediate effect’ as it revealed a disappointing set of sales figures.

It warned sales for the year could be flat as a result, and slashed its profit forecasts.

The announcements sparked a sell-off that sent the firm’s shares plunging to all-time lows and they closed 33.1pc, or 74.2p, down at 150p. Rick Anderson, a non-executive director and former chairman of US pharmaceuticals giant Johnson & Johnson, would take over as chief executive until Moraviec’s successor was chosen.

Listing in 2016 with a value of £4.4bn, the firm yesterday warned a change in orders from one of its biggest customers could take a £17.5m bite out of its fourth quarter sales. This meant full-year sales growth could be flat compared with a previous estimate of between 2.5pc and 3pc.

Profit margins would fall from an expected 24pc to 25pc to between 23pc and 24pc, it added.