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Remote Monitored Systems Shares Plunge After Subsidiary Delays

Sam Boughedda trader
Updated 29 Dec 2020

Practice Stock Trading

Survey and inspection services firm Remote Monitored Systems plc (LON: RMS) has seen its share price fall on Tuesday after the company said its subsidiary, Pharm 2 Farm, has seen the delivery of a machine delayed due to disruptions at the English/French border.

The machine was ready for loading on the 24th of December, but the haulier company said it could not make the delivery due to the ongoing situation at the border, brought about by the coronavirus pandemic.

RMS said the earliest the machine is now likely to be loaded is the 4th of January 2021.

Test results for the company's 4 ply mask certification now expected to be received in the first half of January 2021 RMS added. The test results for the 5 ply masks (targeted at Healthcare professionals in high-risk environments) are now likely to be available in early February.

The machine delivery and mask approval delays mean that expected maximum production volumes of 4 ply masks in Nottingham are likely to be 500,000 and 1.3m units in January and February 2021.

Manufacturing for the 5 ply mask is not likely to begin until early February.

Once the certifications are granted, the company expects to place an order with Volz for 0.5m masks incorporating P2F's antiviral material layer.

RMS shares fell over 7% in early trading, although, they have since recovered and are currently trading at 1.30p, down 1.89%.

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.