Vindon stays upbeat despite profits slump
Reporter: Martyn Torr
Date published: 23 September 2009
PROFITS at Vindon Healthcare, the former Saddleworth business now based at Kingsway Business Park, Rochdale, slumped by 40 per cent in the six months to June 30.
Customers cutting back on orders of capital equipment plus the cost of moving to the new premises, where Vindon is building a cryogenic store to hold stem cells, were partially responsible for a drop in pre-tax profits to £497,000 from £828,000 last year.
The manufacturer and service provider of speciality storage solutions for controlled environmental testing, heritage artefact storage, ultra-low temperature and cryogenic sample storage, reported that manufacturing revenues were £41,000 lower than last year.
Group chairman Liam Ferguson said: “The group’s strategy is to increase the revenue streams from its in-house speciality storage services.
“The investment associated with this transition has had a short-term impact on the first-half results as project-based revenue is replaced with long-term recurring revenue.”
The six-month statement said Vindon’s Irish capital equipment and storage business was trading profitably, while US sales of capital equipment were £271,000 during the period compared with £12,000 in the corresponding period last year.
Vindon views the US as a key market and is planning to offer speciality storage services.
In the UK it began a five-year contract to store pallets of old films for an unnamed British heritage institution and also won a contract for the storage of stem cells.
The results statement concluded: “The board recognises that conditions remain challenging, however, the business is underpinned by a blue chip customer base and long- term storage contracts.
“This, with the substantial investment in facilities and products, lays the foundations for us to deliver long-term growth.”
Broker WH Ireland is forecasting a £570,000 fall in pre-tax profit this year to £1.03 million, with profits remaining at this level next year. The broker expects the dividend to be maintained at 2008 levels in both years.
