Mediwatch the subject of a takeover bid

WARWICKSHIRE medical technologies firm Mediwatch has revealed that it has received an initial approach from Canadian firm Laborie Medical Technologies Europe with respect to a possible cash offer for the company.

In accordance with London Stock Exchange rules, Laborie has until 5pm on November 15 to announce a firm intention to make an offer.

Mediwatch said a further announcement will be made in due course.

In June Mediwatch announced a disappointing set of results. The Rugby-based business said trading in the six months to April 30 was down at £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.

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, its UK sales team had been restructured to reduce cost.

This helped the profit figure, which was very slightly ahead of expectations.
 
But cashflow 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.

Laborie is a multinational developer, manufacturer and marketer of medical equipment and catheters in urology and gynecology for the diagnosis and treatment of urinary and fecal Incontinence, as well as other pelvic floor disorders.

Its UK base is in Bristol.