Mediwatch confident for full year despite H1 revenue dip
WARWICKSHIRE medtech Mediwatch has said it expects to meet full year expectations despite struggling during the first half.
The Rugby-based business said trading in the six months to April 30, 2013 was £4.9m (2012: £5.1m) which the group said was attributable to a decline in its UK market and the continuing slow growth of the US economy, although the US business now accounts for around 55% of group sales (H2 2012: 51%).
It said revenue in the UK (which services Europe and the Rest of the world) had declined and, following the failed attempt to partner with Genesis in a move to boost sales. Following the collapse of the JV, the UK sales team has been restructured to reduce cost and this has had minimal impact on the team’s effectiveness, As a result, the profitability of the UK operation had been enhanced, said the group.
The group achieved an EBITDA of £311,000 for the six month period (H1 2012: £245,000). Profit is very slightly ahead of the expectations at this stage, said the board.
Cash flow was down due to increased working capital being pumped into the US to capitalise on increasing sales. Additional debt funding has also been taken on in the UK to support the group’s Research and Development effort.
Omer Karim, Mediwatch chairman, said: “The board is encouraged with the results for the first half of the 2013 financial year; in particular it is pleasing to see that the cost reductions have firmly benefited the bottom line. With new product launches well underway and more to come later in the year; the group is positioned for a positive second half.”
The new product launches planned for 2013 have started well, the group added. The first of these a new urodynamic range of Clinic and Encompass, the new Nano, a new procedure couch and the tablet Portaflow were well received at European Association of Urology meeting in Milan in April and the American Urologists Association annual conference and exhibition in San Diego in May. The group said there would be more new product launches later in the year.
