Inditherm’s sales growth joy
GROWING demand for Inditherm’s innovative medical products and a solid performance from its industrial division has helped the Rotherham-based firm post positive results.
Inditherm, which supplies heating systems for football pitches and mattresses for premature babies and operating tables, said that operating losses before exceptional costs had dropped to £502,000 for the year ended December 31, 2008 compared to £799,000 the year before.
Revenue grew 7% to £1.9m from £1.8m helped by the increase in medical sales including start-up stock sold to US distributor Smiths Medical last year.
Demand from other overseas distributors outside of the US was also strong with orders growing by more than 40%.
UK orders grew by more than half as a result of increasing acceptance of Inditherm’s technology in the market.
The firm said that a guideline published on perioperative hypothermia by the National Institute for Clinical Excellence (NICE) would futher boost sales.
Nick Bettles, Inditherm’s chief executive, said that clinicians were increasingly realising the importance of keeping patients warm during surgery.
“The technique is different from the one used for the last 15 to 20 years and the medical profession in quite conservative,” he said.
“But there is increasing acceptance.”
He said that the company, which was floated on junior stock exchange AIM in 2001, had benefited “quite a bit” from start-up stock sold to Smiths Medical, although no new orders had yet been placed as the firm was shipping from already bought stock.
However, Mr Bettles said that Inditherm was talking to other major distributors, which would mean further growth in the US.
Inditherm’s industrial operation also contributed to the firm’s performance with higher margins offsetting a drop in sales.
Mr Bettles said that the firm was focusing on driving sales back up and that the move to increase margins was part of a deliberate strategy.
The company has designed a range of products that have applications in a number of areas including sewage sludge pipes, chocolate manufacturing and concrete curing blankets.
Its other business, underheating for football pitches, saw the completion of Aston Villa’s training pitch in time for the winter snap.
“They told us they didn’t lose a training day despite the bad weather,” said Mr Bettles.
