Strong US Sales Help; Design-a-Bear in Web Site Shortlist
Byline: HYWEL TREWYN
STRONG sales in the US of a diabetes diagnostic product have helped Deeside-based medical group Provalis report gross profits of of pounds 7.7m this year.
The group's preliminary results for the year ended June 30 showed the profit to be an increase of pounds 2.4m over last year,giving a margin on sales of 55pc.
After accounting for an exceptional gain of pounds 3.4m from the variation of the distribution agreement with Dr Falk Pharma, Provalis reports its first profit before tax of pounds 1.3m and a profit per share of 0.4pence.
The Group reduced its operating loss for its continuing businesses from pounds 4.2m in 2002 to pounds 1.7m in 2003.
Company bosses said the turnover increased by 49pc to pounds 14m in 2003 and was driven by sales of Glycosal in the US and Diclomax in the UK market.
The company's cash position remained healthy at pounds 6.6m,and will further benefit from additional payments of up to pounds 3.5m from Dr Falk Pharma which are due by January 2005, and the stopping in November 2004 of the monthly payments of more than pounds 380,000 to Pfizer for Diclomax.
Sales of the Glycosal instrument and test cartridges have been pleasing,according to the company.
Last year the group supplied over one million Glycosal cartridges for sale and shipped twice as many instruments as in the previous two years combined. Between 200-300 instruments continue to be placed with doctors in the US each month. However its sales in the UK have been disappointing and the group is now trying to address this.
Commenting on the full-year results, chairman Frank Harding said: ``2003 was a year of real progress for Provalis. Both businesses achieved substantial sales growth, with Glycosal making an important breakthrough in the valuable US diabetes market for Provalis' medical diagnostics business and Diclomax transforming the sales and profitability of our pharmaceutical business.''
Chief executive Dr Phil Gould said: ``Provalis had a strong year in 2003. The challenge for the group is to continue to grow sales and to develop new products in both of our businesses. …