Drive DeVilbiss Sidhil turnover dips but profit leaps 43% from the previous year to over £4million
Drive DeVilbiss Sidhil, a leading manufacturer of hospital and home health care furniture and accessories, has significantly increased its profit for the year ended 31st December 2018, despite a slight decline in turnover.
First established in 1888, the Sidhil Group gained a reputation for designing, manufacturing and supplying hospital and long-term care beds to the homecare, acute care and long-term care markets in the UK. In January 2017, the UK manufacturer was acquired by Drive DeVilbiss Healthcare, becoming Drive DeVilbiss Sidhil.
In the company’s latest annual report for the year ended 31st December 2018, Drive DeVilbiss Sidhil saw a turnover decrease from £25.5million in 2017 to just under £23million in 2018.
Over the same period, the company saw a significant drop in administrative expenses from £5million to £1.5million.
Despite the fall in turnover, the substantial reduction in administrative expenses helped result in an overall profit of over £4million in 2018 for Drive DeVilbiss Sidhil, up from 2017’s £2.8million.
In addition, the company’s EBITDA margin, a measure of a company’s operating profit as a percentage of its revenue, grew to a healthy 25.8 percent in 2018 versus 15.9 percent in 2017, reinforcing the effectiveness of West Yorkshire-based manufacturer’s cost-saving efforts.
According to the company’s latest strategic report, innovation and quality remain vital aspects to the company’s development, highlighting its continued investment in R&D to increase the number of new and improved products in its portfolio, with a particular focus on its assistive technology products.
In 2018, the acute bed manufacturer maintained a similar level of spending on R&D, spending £567k in 2018 compared to £574k in 2017.
Considering the potential risks facing the company for the future, Drive DeVilbiss Sidhil notes the level of uncertainty in the general economic climate, currency movements, commodity prices such as steel and power, as well as spending levels within the NHS, a key market for the manufacturer.
Notwithstanding the economic uncertainty, however, Drive DeVilbiss Sidhil states the outlook for the organisation remain positive, emphasising that through the launch of new products and increase in market share, it will improve on the 2018 financial results.
In particular, the supplier emphasises that Brexit will unlikely risk its ability to operate effectively, pointing out that the vast majority of the business takes place domestically with “relatively minor cross border activity with the EU.”https://thiis.co.uk/drive-devilbiss-sidhil-turnover-dips-but-profit-leaps-43-from-the-previous-year-to-over-4million/https://i2.wp.com/thiis.co.uk/wp-content/uploads/2019/10/Drive-DeVilbiss-Sidhil-annual-report.jpg?fit=850%2C567&ssl=1https://i2.wp.com/thiis.co.uk/wp-content/uploads/2019/10/Drive-DeVilbiss-Sidhil-annual-report.jpg?resize=150%2C150&ssl=1NewsroomSupplier NewsUncategorisedacute beds,annual report,assistive technology,Brexit,care homes,cost-saving,Drive DeVilbiss healthcare,Drive DeVilbiss Sidhil,EBITDA,EU exit,long-term beds,manufacturer,NHS,Uncertainty,West YorkshireDrive DeVilbiss Sidhil, a leading manufacturer of hospital and home health care furniture and accessories, has significantly increased its profit for the year ended 31st December 2018, despite a slight decline in turnover.First established in 1888, the Sidhil Group gained a reputation for designing, manufacturing and supplying hospital and...Calvin BarnettCalvin Barnettcalvin@thiis.co.ukAdministratorTHIIS Magazine