Profits at medical firm fall by 64%
Wednesday, June 20, 2012
Pre-tax profits at medical firm Goodman Medical last year decreased 64% to €511,503, new figures show.
Accounts recently filed by Goodman Medical Ireland with the Companies Office show the firm sustained the drop in profit after revenues declined by 11% from €9.2m to €8.1m in the 12 months to the end of Dec 2011.
The principal activity of the Galway-based firm is the development, manufacturing, assembly, testing, packing and labelling of medical devices.
Pre-tax profits dropped from €1.43m to €511,503.
According to the directors’ report "the company has continued to improve performance in recent years sustaining excellent profitability levels in a challenging and rapidly changing industry".
In 2010, the company announced the creation of 115 new jobs in manufacturing, sales, marketing and research& at its Galway plant as part of a €1.1m investment.
Goodman Medical Ireland was established in 2004, producing cardiology products, such as catheters and bare metal stents.
It is part of the Goodman group, which was founded in 1975 in Nagoya, Japan, manufacturing and selling medical instruments and equipment globally.
The Galway plant is the firm’s sales and marketing centre for the Europe, the Middle East and Africa regions by generating market data, developing territory sales strategies and managing distributors and sales-related activities.
On the risks facing the company, the directors state that "in common with all companies operating in Ireland in this sector, the company faces increasing energy and material costs.
"The directors are of the opinion that the company is well positioned to manage these costs".
The directors state that the company "faces strong opposition in the market and if the company fails to compete successfully market share may decline".
Numbers employed by the firm last year increased from 89 to 99 with 77 engaged in production and 22 in administration. As a result, staff costs increased from €2.9m to €3.3m.
The profit last year takes account of non-cash depreciation costs totalling €274,843.
The firm’s cost of sales last year declined only marginally from €4.67m to €4.62m with net operating expenses decreasing from €3.1m to €3m.
The profit last year reduced the company’s accumulated losses from €5.8m to €5.3m. The company’s shareholder funds stood at €8.9m last year.
Cash last year reduced from €1.9m to €1.5m.