Invacare UK profits remain steady for 2019 as sales dip to £69.3m
With a big push to introduce new products in 2020, Invacare UK has reported a slight dip in turnover and gross profit which was more than offset by a reduction in costs for the year ended 30 November 2019.
A global manufacturer of a wide range of healthcare products, Invacare supplies a range of mobility solutions to the market, including mobility scooters, wheelchairs, powerchairs, moving and handling solutions and more.
According to Invacare’s annual report for the year ended November 2019, the company achieved sales of £69.3m and gross profit of £8.1m, dipping slightly behind the previous year’s £69.5m and £8.4m, respectively.
In spite of the marginal sales decline, however, Invacare saw its operating profit increase by £72k, growing from £2.26m in 2018 to £2.33m in 2019.
The growth was achieved by a reduction in the company’s operating expenses, with Invacare reporting that its sales and administration headcount dropped from 155 to 145 during the period.
It comes as the Invacare Group, headquartered across the pond in Ohio, continues to implement a transformation initiative focused on improving profitability across its global operations.
With an EBIT margin of 3.36 per cent, the company’s strategic report pointed out that “in the UK the company is reliant on certain major local authorities for contracts that are subject to periodic competitive tender.”
For the year ended 30 November 2019, Invacare made a profit after taxation of £1.9m, an increase of £86k from the previous year.
Pandemic disruption and new product push
Reviewing Invacare’s strategic report, the Bridgend-based supplier confirmed that COVID-19 presents risks and uncertainty in the market that may impact the company’s business.
Highlighting the impact of COVID-19 on the current year’s trading, Invacare’s annual report confirmed that it has “taken full advantage of government schemes such as furlough and deferment of VAT payments to protect the business.”
In particular, the company stated that throughout lockdown, it enjoyed an increase in demand for beds, mattress and respiratory products from the NHS which helped offset the decline in demand for its mobility and scooter ranges.
Following the end of lockdown, Invacare emphasised it planned to accelerate the launch of a number of new products in its pipeline.
In April 2020, during the lockdown, it unveiled new active wheelchair and powerchair models, followed by two new mobility scooters in June and July.
