Inditherm exit as it looks to medical arm

The Rotherham-based company decided to exit the industrial business as there is no sign of any upturn in market conditions.

Inditherm's finance director Ian Smith said the group is looking for a buyer to take over the business, but if this plan fails there could be job losses among the ten people employed by the business.

Mark Abrahams, chairman of Inditherm, said: "The level of industrial orders has suffered from protracted decision-making and delays in customer projects. There is no sign yet of any upturn in market conditions, therefore we have taken the decision to exit the process solutions part of the industrial business."

Mr Smith said the group is upbeat about the prospects for its medical business, which showed an underlying growth rate of over 70 per cent in the six months to June 30.

"Our product is 50 per cent cheaper than conventional heating methods which involve blowing hot air into paper blankets," said Mr Smith. "The NHS is under cash constraints but when we can offer a 50 per cent cost saving, it makes sense."

Mr Abrahams described the period as an encouraging six months for Inditherm.

Turnover increased by 75 per cent to 972,000. Overheads were reduced to 731,000 from 826,000 following the restructuring of the industrial business in 2009. Pre-tax losses reduced from 635,000 to 177,000. The group said it still considers the US medical sector to be important, but progress remains slow.

It has continued to grow other export markets and has further expanded the distributor network during 2010, particularly in the Middle and Far East.

The group's shares closed the day down four per cent last night, a fall of 0.25p to 6.5p.

Inditherm's patient heating systems use energy efficient polymer technology, which automatically warms patients undergoing surgery as soon as they reach the operating table.

The company said the technology helps hospitals to meet guidelines on hypothermia during surgery.

Inditherm said its system means that surgical patients can be warmed at the same running cost as a light-bulb.

It is the only manufacturer of specialist patient warming systems in

the UK.

The company recently won an award for its contribution to cutting NHS costs, improving patient care, reducing energy use and clinical waste, scooping the Suppliers Delivering Sustainability category at the Community Partnerships Awards 2010.