Is this normal?

Does your budgie appear to be discomforted or itchy? Do you see him rubbing the affected area on a toy or other type of surface?
Most likely the feathers don't look nice because some of the product may have come into contact with them while you were applying the drops into your budgie's skin.

If it really looks that red and irritated, then it would be best book an appointment with an avian vet so that he is properly checked and if need be prescribed with a balm or something else to calm down the irritation.

I don't think he's that bothered, earlier I saw him cleaning it and he doesn't really like me stroking there. Will it go away on it's own if I can't get an appointment?

Hello how old is your budgie may I ask? How long have you had him in your care as well?
If your budgie is very young still the treatment could be too strong and causing him concern.
How much did you apply to his skin?
You could try spraying his feathers with warm not hot water from a spray bottle, or give him a bath if he will bathe.
If it were me I would be taking him for a check up to an avian vet. That way you can become acquainted with the vet, the budgie can be weighed, checked for parasites and other potential problems as well. Please let us know how he is doing.

Pretty boy said:

Hello how old is your budgie may I ask? How long have you had him in your care as well?
If your budgie is very young still the treatment could be too strong and causing him concern.
How much did you apply to his skin?
You could try spraying his feathers with warm not hot water from a spray bottle, or give him a bath if he will bathe.
If it were me I would be taking him for a check up to an avian vet. That way you can become acquainted with the vet, the budgie can be weighed, checked for parasites and other potential problems as well. Please let us know how he is doing.

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He's about 6-7 weeks, he's been fine since I got him, I've had him for a week. I only put about 3 drops (as it said) I've sprayed his feathers with cooler water, I will do it again with slightly warmer water. He gets in the bath himself a lot of the time. I'm pretty sure its not parasites or anything, if its just a rash or something will it be ok and will it go away on its own? The nearest vet to me is about a 3-4 hour drive and I doubt Shadow can handle that unless its urgent!

Hi
I have used Beaphar spot on many times over the years without any problems, but I've never used it on such young birds, it doesn't give any minimum age of bird on the manufacturers website but it does mention that if there are any concerns after using the product then consult an avian vet, it hints that using the product may be problematic if the bird is already unwell (something that isn't always immediately noticeable in budgies) so yes I would be taking him to see the vet just to make sure.

Can I ask where you live in the UK, I live in Doncaster but use a vet around an hour away just outside Sheffield which is as you may know fairly central, the vets is called Ark Vets in Dronfield and I would highly recommend them if you are within a few hours travel time.
Pete