Dental firm sees NW improvement

IMPROVED performance by its North West laboratory, an increase in clients and a new sales team have boosted 1st Dental, despite pre-tax losses.

The Yorkshire business, which supplies equipment to dentists for crown, bridge and orthodontic work, said in an interim management statement today that revenues for the half-year ended May 31 had risen 5.3% to £5.1m.

1st Dental said the rise was a result of better performance from its Blackpool lab and its site in Stourport  which had previously been underperforming.

The company has also seen the number of new clients increase by 6.4% and spend per client by 6.3%.

Investment has been made in new production processes and staff training for metal-free restorations.

Its Eteeth online service has continued to grow despite fluctuating performances in other parts of the group with half year revenues having more than doubled.

However, 1st Dental said that the most significant factor in reversing its downward trend was creating a centralised sales team, which is now some 30% ahead of targets.

After stripping out the investment in the centralised sales team, new production processes and Eteeth, the underlying operating loss of the group for the half year was £59,000 compared to £10,000 for the same period last year.

The company is reporting an increased headline operating loss however of £265,000 taking pre-tax losses to £326,000 – a rise from £141,000 reported for the first half 2008.

Despite the losses, debt has fallen to £1,8m from around £2m as of November 2008.

Andrew Garner, chairman of 1st Dental, said that with a stronger executive management team in place and the improved operational and financial controls that brought, the board was confident of further growth and profitability for the second half year and beyond.”

As well as the Blackpool site, the company has a facility on the Isle of Man.