New era dawns for Dawmed
LESS reliance on NHS contracts and successful penetration into Europe is helping Dawmed exceed performance expectations.
The Rotherham-based medical equipment company told shareholders today at its Annual General Meeting (AGM) that high tender wins, a large forward order book, strong performance of its Wassenburg equipment, and a rise in chemical sales have helped to substantially increase turnover.
Last month the firm, which manufactures machines that wash and disinfect medical equipment, reported disappointing annual results following a downturn on NHS spending and a £578,000 loss from IT and litigation costs.
However, chairman Kevin Gilmore had remained upbeat promising a full recovery and a return to profit helped by winning a major contract with the East Kent Hospitals NHS Trust to supply, install, test and validate all of its decontamination equipment.
Today, just a month after announcing its annual results, it seems that Dawmed is keeping its promise.
“So far as the UK is concerned, there can be no doubt that, although a more
normal level of NHS business appears to have been resumed, it is our amended strategy that has been largely responsible for its considerable success in recent months and hopefully for the continuation of that success during the
second half of this year,” said Mr Gilmore.
“I’m also pleased to announce that the company has been appointed as exclusive distributor for Meiko bed pan washer machines in England, Scotland and Wales, thereby adding a further top quality product to the company’s portfolio.”
The company is also enjoying success across Europe following a new offensive to appoint further distributors.
Last month it announced a deal to supply its AERclens Chemical machine – an endoscopes washer-disinfector – to a German firm.
It will also supply machines to AIR Liquide’s subsidiary Schulke & Mayr giving Dawmed a foothold in France.
As part of its amended strategy Dawmed has stopped relying on selling big cleansing machines to NHS hospitals put off by stiff competition from far bigger rivals.
Its new non-reliance on big NHS contracts means it is now focusing on higher-margin machines for doctor and dentist surgeries as well as niche markets in ear, nose and throat medicine and optical care.
