Clearstream Technologies hit by 12pc slump in profits
Pre-tax profits at medical device manufacturer Clearstream Technologies last year declined 12pc to €23.47m.
New accounts show that the Co Wexford-based firm sustained the drop in pre-tax profits after revenues slumped by 6pc from €57.26m to €53.69m in the 12 months to the end of November last.
The accounts disclose that the deal by Clearstream to acquire EMBO Medical in December 2015 totalled €35.58m.
This was made up of cash of €19.86m and €15.7m in 'deferred contingent consideration'.
However, the accounts reveal that Clearstream Technologies did not have to pay €4.6m as part of its purchase of EMBO Medical as anticipated sales milestones by the new subsidiary "are no longer expected to be met".
As a result, Clearstream has booked the €4.6m as an exceptional gain in its accounts.
In 2011, US medical device firm, C R Bard paid $68.7m (€54.4m) to purchase the Clearstream Technologies group.
ClearStream's medical devices are used to clear blocks in the coronary and peripheral arteries and its products are used by cardiologists, radiologists, and vascular surgeons in angioplasty procedures.
According to the directors' report the group is committed to a programme of research and development (R&D) to enhance its market position.
The business's R&D spend last year increased from €2.6m to €3.1m.
The profit last year resulted in accumulated profits last year increasing from €23m to €43m.
Numbers employed at the company last year reduced from 390 to 373. Staff costs increased from €11.7m to €12.27m.