Pretax profits decrease 64% at Galway firm Goodman Medical

PRETAX PROFITS at Galway-based medical firm Goodman Medical last year decreased by 64 per cent to €511,503, new figures show.

According to accounts recently filed by Goodman Medical Ireland Ltd with the Companies Office, the firm sustained the drop in profit after revenue declined by 11.95 per cent from €9.2 million to €8.1 million in the 12 months to the end of December last.

The principal activity of the company is the development, manufacture, assembly, testing, packing and labelling of medical devices for the medical industry.

Pretax profits dropped from €1.43 million to €511,503.

According to the directors’ report, “the company has continued to improve performance in recent years, sustaining excellent profitability levels in a challenging and rapidly changing industry”.

In 2010 the firm announced the creation of 115 new jobs in manufacturing, sales, marketing and RD at its Galway plant as part of a €1.1 million investment.

Goodman Medical Ireland was established in 2004, producing cardiology products such as catheters and bare-metal stents.

It is part of the Goodman group, which was founded in 1975 in Nagoya, Japan, manufacturing and selling medical equipment. The Galway plant is its sales and marketing centre for Europe, the Middle East and Africa.

On the risks facing the company, the directors say “in common with all companies operating in Ireland in this sector, the company faces increasing energy and material costs. The directors are of the opinion that the company is well positioned to manage these costs.” The directors say the company “faces strong opposition in the market and if the company fails to compete successfully market share may decline”.

Numbers employed by the firm last year increased from 89 to 99, with 77 engaged in production and 22 in administration. Staff costs increased from €2.9 million to €3.3 million.

The profit last year takes account of non-cash depreciation costs totalling €274,843.

The firm’s cost of sales last year declined marginally from €4.67 million to €4.62 million with net operating expenses decreasing from €3.1 million to €3 million.

The profit last year reduced the company’s accumulated losses from €5.8 million to €5.3 million. The firm’s shareholder funds stood at €8.9 million last year.

Its cash last year reduced from €1.9 million to €1.5 million.