Tunstall hopes R&D will pay as profits fall

TELEPHONE health and care system maker Tunstall is pinning its hopes on a new generation of products after stepping up its research and development spending despite the downturn.

Tunstall recorded pre-tax profits of £26.39m in the year ending September 2009, down from £30.44m the previous year.

But over the same period the Whitley Bridge-based firm invested an extra £3.4m in developing new products, a rise of 13%, leading to the launch this year of a range of digital-ready devices.

Tunstall makes, installs and monitors telephone-based healthcare systems that help older people and those with long term health conditions live in their own home or with the minimum of care.

In its directors’ report, the company said it would be putting a new focus on the private developer market as it aims to benefit from the building of new community housing scheme.

While like-for-like revenues across the group fell by 4%, the company saw a 24% rise in revenue from its Asia Pacific markets, largely through growth in Australia.

The report describes Tunstall’s markets in the UK and Australasia as “robust” with the company expecting to grow them further.

The firm also highlights the success of a scheme in Cornwall piloting the greater use of telehealth technology as a positive sign for Tunstall’s future.

Turnover at the company fell from £107.72m to £98.93m as total orders fell by 5% to £20.2m.

No interim or final dividend was paid for the year.