Medical equipment firm Mediwatch (MDW) has posted a first-half pretax profit, but said second-half results would show only marginal growth.
The Rugby-based company reported a pretax profit of £158,000, while revenue rose to £4.37 million from £1.83 million pounds a year ago.
Mediwatch chairman Omer Karim said: “Mediwatch has diligently put in place some excellent building blocks for growth and we are pleased to report our second, successive half-year period of profitable trading.
“Market conditions are restricting our growth opportunities and the expected growth in the second half of the year.
“We are, however, fortunate that Mediwatch’s products offer increased efficiency and cost savings in a financially challenged health sector.”
The company said although ill health is, to some extent, resistant to changes in the economic climate, it was wary of the sudden deterioration in economic conditions and sentiment affecting the European and US markets.
“This is a significant change from the conditions upon which our original plans were based.
“We are tackling these market conditions through tight cost control, including supplier re-negotiations, product re-packaging, a reinforced sales team and a focused marketing programme,” the company said.
Mediwatch announced at its annual general meeting in May that it had entered into a new banking facility with Barclays Commercial Bank, an increased financing package worth £1.2 million to finance working capital.
It also confirmed Christian Rollins had joined the board as full time finance director, having previously been vice president of finance and operations at Mediwatch USA for 17 months.
Colm Croskery, who had originally joined the group in July 2007 as sales and marketing manager (rest of world) also became a board member as chief operating officer.
Mediwatch said the board now has a good balance of medical, financial and commercial skills to guide the business in the home and international marketplace.
Mediwatch was founded by Philip Stimpson in 1996 to develop medical products for the point-of-care environment, initially focusing on the primary care market.
The company listed on AIM in 200 with the reverse take-over of Prostcare.
