Inditherm hit by NHS restraint on spending

The Rotherham-based company, which makes heating systems used in hospitals as well as the chemical and food industries, reported a pre-tax loss of 1.1m for the year to the end of December, compared to a 324,000 loss a year earlier.

The company said economic conditions last year "were even more

challenging than originally anticipated".

Revenue fell by 42 per cent to 1.2m, which the group said was largely because of tough comparisons with a year earlier, which was boosted by start-up sales to its US distributor Smiths Medical.

Inditherm's heated mattresses are used in operating theatres in NHS hospitals, helping keep patients warm during surgery.

However, pressure on hospital budgets temporarily halted "what has previously been a steady growth trend".

Medical orders grew by 10 per cent, slower than in previous years. Of these sales, it saw an 18 per cent increase in orders from non-US distributors, although growth was restrained by a flat performance 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.

"(We) hope this will help in overcoming reluctance in some parts to adopting Inditherm technology," said the company.

While Inditherm continues to try to break into the US market, it is redirecting some efforts to other overseas markets because of slow US take-up.

In industrial markets, where it supplies products to confectioners, chemicals and concrete manufacturers, it is working closely with a few major international companies, and won orders worth more than 200,000 in November and December.

Inditherm said it has seen a "steady increase" in inquiry levels over the past six months.

Orders in the second half were up 30 per cent on the first half.

It said if these positive trends continue, it believes it will hit break-even.

Chairman Mark Abrahams said: "As was the case for many businesses, 2009 was undoubtedly a difficult year for Inditherm, however the progress we have made in recent months is more encouraging.

"While broadly our customers have been impacted by the economic situation, we were pleased to see growth in some areas of the business, notably in medical orders through our overseas distributors and in the margins for the industrial business.

"We have focussed our resources on these areas and are optimistic that the positive trends we are seeing in enquires and orders will continue into 2010."