Slendertone directors expecting sales bulge after profits jump 272pc
Sales of the Slendertone slimming device are tipped to increase with its Irish producers expecting it to help deliver significant growth in 2017.
The directors of Galway-based Bio-Medical Research made the forecast after pre-tax profits for 2015 rose to €9.8m.
According to the directors, the business in 2015 enjoyed the jump in profits in spite of revenues declining from €51m to €48.45m.
Pre-tax profits increased by 272pc, going from €2.64m to €9.83m, as a result of a share capital restructure.
The drop in revenues arose from the firm disposing of its orthopaedic and pain business during the year, while the firm enjoyed a 5pc growth in revenues in continued operations as a result of increased marketing investment in Europe and the US.
The directors stated that the group expects significant growth in 2017 with growth coming from Slendertone through increased distribution in the US and Japan.
"We expect our women's health medical devices business to grow in Europe with increased marketing investment, while continuing to invest significantly in US clinical trials," they said.
The firm made the increase in revenues on continued operations on the back of directors forecasting that the business would produce a 16pc increase in Slendertone slimming devices in 2015.
The firm recorded the profit last year after an exceptional gain of €13.85m as a result of a share restructure.
The business did record an operating loss in 2015 of €4m following an operating profit in 2014 of €4m.
The loss takes account of a profit of €1.2m on the sale of its discontinued operations in 2015.
The directors stated that gross margins were 52.5pc in 2015 compared to 61.2pc in 2014 after increased investment in key European and US markets in 2015.
During 2015, the firm commenced the share capital restructuring and this was complete in March of last year. The directors proposed a dividend of €1.4m for 2015 and this dividend was waived under the new share restructuring.
Numbers employed by the firm in 2015 decreased from 198 to 138, with staff costs decreasing from €13.99m to €11.96m.
The pre-tax profit takes account of non-cash depreciation costs of €544,317.
Directors' remuneration, including pension payments, last year rose from €555,110 to €940,047.
A breakdown of the firm's staff showed there were 62 in selling and distribution; 38 in administration; 20 in R&D; and 18 in management.