Cleanspace halves after revealing a drop in North American sales
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Cleanspace (ASX:CSX), a company that makes respiratory protective equipment, was among the biggest losers on the ASX this morning after a negative trading update.
While Cleanspace’s sales are still $7 million, they have been lower than the first half of FY21. Sales have been negatively affected by the situation in the North American healthcare industry.
The company reports that since the Biden administration came to power several factors have caused a slowdown, particularly the acceleration of the COVID-19 vaccine rollout and a backlog stock-piling of low-tech disposable masks.
While Australia has lagged in the COVID-19 vaccination rollout, the US has been full steam ahead with 145 million vaccines doses administered.
Shares in Cleanspace IPO’d at $4.41 per share and are now less than half of that thanks to today’s drop.
However Cleanspace expects things will gradually turn around, given it offers a “cost-effective” solution for hospitals and government requiring PPE.
“The cost effectiveness of CleanSpace products and with the highest protection rating, remain powerful sales advantages even in the immediate changing winds in the hospital environment,” the company said.
It pointed out that the Biden administration was looking to better prepare the US for future pandemics and one of these was embracing personal protective equipment.
The plan involved an inventory examination of the Strategic National Stockpile and providing loans to local manufacturers to increase local production capacity.
Cleanspace also noted Australia too is taking pandemic preparedness steps and is a reliable, secure trading partner for other countries.