Medical group back on track as revenues hit £150m

Sheffield-based medical supplier B. Braun has seen revenues and pre-tax profits increase after a dip last year due to higher cots of sales.

Revenues for the year to 31 December 2018 increased to £150m, up from £140m the year before. Pre-tax profits also increased to £8m up from £5.2m the year before.

Last year pre-tax profits were down £4m on 2016, as the firm prepared for Brexit and reduced NHS budgets.

It said restrictions to NHS budgets remained a challenge this year, as were future pension shortfalls to the business. Currency devaluation and increased administration on exports have also been a cause for concern.

However B. Braun Medical said it was mitigating these Brexit-related risks by securing additional warehouse space to ensure the UK market is well supplied and building contingency stock levels in cooperation with the Department of Health.

A statement by the company, which is owned by German company B. Braun Melsungen, said: “2018 again saw continued underlying growth from the core business and a significant improvement in operating profitability….Both the level of business and the year end financial position were good.

“The directors expect that the strength in the core business will lead to continued growth in the 2019 year and for the foreseeable future.

The company supplies goods and services to the healthcare sector and the directors consider than demand is unlikely to decline significantly in the long term despite the current pressures placed upon public sector expenditure.”