Wednesday, April 2, 2014

News: Inditherm increase profits


Innovative Rotherham company, Inditherm, has seen an increase in turnover and profits as it sets its sights on accelerating growth.

Manvers-based Inditherm has developed products using low voltage carbon polymer technology to provide heat. Its systems are used for patients undergoing operations which carry risk of inadvertent hypothermia and in neonatal wards.

CosyTherm uses the low voltage carbon polymer technology to help prevent hypothermia in new born babies. The systems are already highly popular in the UK and used in almost half of all NHS neonatal units, with that number still growing. The product is also gaining increased international recognition, with users in over 30 countries world-wide.

For the 12 months ended December 31 2013, the AIM-listed firm reported that turnover increased by 23% to just over £2m compared to £1.6m in 2012 and gross profit rose to £1.1m, up by 21% on the £960k in 2012, reflecting sustained operating margins. Post-tax loss were reduced to £77k from £164k in 2012.

Uncertainties in the NHS has resulted in an underlying flatter performance with Inditherm believing that the apparent slowing of growth is caused in the UK by ever-tightening financial constraints, particularly with regard to capital expenditure in the NHS, rather than a dampening of enthusiasm for its products.

Overall medical revenue in 2013 grew by 30%, with sizeable orders placed in the first quarter of the year, some of which were delayed from 2012. UK order levels grew by 66% in 2013, including a significant level of extended warranty and maintenance contracts.

The National Institute for Health and Clinical Excellence (NICE) published guidance in 2011 advising that the Inditherm patient warming mattress should be considered for use in patients at risk of inadvertent hypothermia.

The NHS in England alone could save over £15m per annum if forced air warming was replaced by Inditherm's mattress for eligible procedures in most of the 3,030 operating theatres.

Looking ahead, Inditherm believe that the compelling arguments for the cost saving potential in the operating theatre area, backed by the support of NICE guidance, are likely to continue to attract attention from the NHS in its current economic situation.

Inditherm also took on distributorship of the ATOM neonatal product range which has shown very promising early signs.

Although it did not experience growth in export orders for the medical business in 2013, resource for export activities were increased during the year and the board believe that this will allow them to increase focus in this area of the business and drive progress with overseas distribution channels. Action has been taken following some disappointing performances from some distributors and some encouraging signs have been seen at the start of 2014.

Iditherm switched its focus to the medical arena but it maintains an industrial business selling heating products for bulk containers, drums and cylinders. Orders for standard products grew by over 64% compared to the previous year, whilst ADI orders fell by a similar percentage. ADI were granted a licence to promote heating solutions to the food, chemicals, pharmaceuticals and petrochemicals markets in 2010 but this agreement has been terminated.

Mark Abrahams, chairman of Inditherm, said: "We expect our underlying growth in sales to continue, albeit that the uneven order flow pattern will persist. This year, given the current level of active enquiries, we anticipate income to be biased towards the second half. Inevitably this creates some uncertainty over the rate of progress we can achieve. We are applying our strengthened resources towards accelerating growth."

Inditherm website

Images: Inditherm


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