Contract win but profit dissapointment at Mediwatch
RUGBY medical technologies company Mediwatch has won an NHS supply contract worth £250,000 a year.
The agreement to supply urodynamic disposables will start on April 1 and run until March 2014.
The group has also issued a trading update in advance of the announcement of its final results which reports it has maintained its turnover and increased profits and cash flows from operations during the year to 31 October 2011.
However, profit before tax is expected to be £322,000, materially lower than market expectations.
The group says unfavourable global economic conditions, together with increased competition in the urodynamic market and delays in commercialising PSAwatch, hampered its ability to increase turnover.
Its PSAwatch product is now at an early stage of commercialisation with clinical trials in France to gain reimbursement approval, direct marketing starting in Germany, Hong Kong, Mexico and China, growing sales in the UK private sector and the potential for further co-operation and trials with two international pharmaceutical companies.
The firm says it has been encouraged by significant sales growth in developing markets including the Far East and Russia during the period, which provides a platform for future growth.
