Inditherm sees its results starting to warm up

HEATING technology group Inditherm said it has seen encouraging growth in recent months after a slow start to its financial year.

The Rotherham-based company hopes recent backing for its heated mattress product by the health watchdog should continue this momentum.

The National Institute for Health and Clinical Excellence recently recommended its mattress for use in surgery to cut the risk of hypothermia, adding it may give significant savings over the alternative.

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Inditherm’s results for the six months to the end of June showed a pre-tax loss of £74,000 – down from £124,000 a year earlier. Sales increased by 10 per cent to £817,000.

Inditherm ended the period with net cash of £1.5m. It is focusing on medical sales as its fastest route to hitting breakeven.

Chairman Mark Abrahams said: “After a slow start to the year, order intake in quarters two and three increased strongly compared with the same periods in 2010. This is encouraging and supports our belief that we can continue our growth.

“We believe that the recent NICE guidance in relation to our patient warming mattresses should stimulate faster growth in the UK medical market, linked with NHS budget cycles. Export orders continue to grow, as we benefit from our wider medical distributor base and increasing market penetration.

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“Divestment of the resource-intensive industrial activities has allowed us to reduce overheads and we believe that our focus on the medical segment is the best route to achieve profitability.

“Whilst we are expecting continued tough trading conditions, we are confident in our core medical business and the board is continually evaluating ways of improving the business and maximising shareholder value.”

Inditherm quit the “resource-intensive” processing industry last year. Eliminating process losses helped the company edge closer to profitability and Inditherm said costs fell slightly to £593,000.

Inditherm has seen medical order growth of more than 30 per cent so far in the second half.

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