William Ransom & Son, the natural health products firm, expects to report a reduced full-year operating loss and said its turnaround plan continues to make progress despite difficult trading conditions.

The group said underlying operating losses for the year ended 31 March will come to around £0.5m compared with a £1.9m loss last time due to a combination of improved performance of its manufacturing divisions and cost reduction initiatives, partially offset by continued challenging market conditions and brand disposals.

William Ransom also announced that it has reached a long term financing agreement with KBC Business Capital. The company's existing debt facilities will be replaced by asset based facilities with KBC that are comprised of an accounts receivable finance facility, stock facility and a plant and machinery long term loan.

Chief executive Ivor Harrison said: "I am pleased to have reached agreement with the company's lending bank and KBC. This will help the company at a time when trading continues to be difficult.

"The focus is to maintain sales while continuing to rationalise the company's cost base. Two products in the Ransom Naturals range have been listed and the company expects to generate material savings out of the implementation of the operational restructuring during the year ended 31 March 2011."

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