Cost-cutting boosts Mediwatch profits
Mediwatch, the urological diagnostic company based in Rugby, has reported a 38 per cent rise in pre-tax profits following a cost reduction programme.
The business posted a profit before tax for the year of £322,000 in the year to 31 October 2011, up from £233,000 a year earlier. Sales nudged up from £10.5m to £10.6m for the same reporting periods.
Chairman Omer Karim said the profits increased following a "reorganisation" that started in the first quarter of 2011 and included outsourcing manufacturing operations and reducing fixed overheads.
But he added that the company has grown sales by 75 per cent in such developing markets at the Far East and Russia, while it has secured a new $2m (£1.3m) banking facility with Fifth Third Bank to support its growth in the US.
"Looking forward, we will continue to focus on internal efficiencies and the tight management of our cost base," said Karim.
"During 2012 we anticipate the conclusion of a number of important research and development projects that will strengthen and update our existing product lines in urodynamics and ultrasound while reducing unit costs."
The directors have not recommended a final dividend.
