Roma Medical reports £2.5m profit for 2019 after releasing liabilities of £3m related to tax dispute
Roma Medical, the manufacturer of medical aids and rehabilitation equipment, has reported pre-tax profits of £2.49m for the year ended 30 November 2019, ending four years of losses.
The pre-tax profit was attributed to the release of liabilities related to the long-running case with H M Revenue & Customers (HMRC).
In Roma Medical’s strategic report, it detailed: “Subsequent to the end of the year, the Company successfully defended a long standing indirect tax claim from H M Revenue & Customs (HMRC). As a result of the successful defence liabilities of £3,016,000 have been released.”
Shown as an exceptional item on the company’s P&L for the year, Roma’s pre-exceptional operating loss increased in 2019 to £525k against 2018’s £119k as a result of declining margins and increased costs.
The Welsh-based mobility supplier saw turnover fall by 1.6 per cent to £8.84m over the period, compared to 2018. It continues a downward trend for Roma, which has seen sales consistently slide year on year since turning over £11.9m in 2011.
Of its turnover for 2019, the report revealed that £7.8m came from the UK – a decline of 3.9 per cent against the previous period. Sales in both Europe and internationally, however, increased in 2019.
Revenues generated from Europe were up 5.6 per cent to £812k and sales from the rest of the world increased 126 per cent to £226k.
Roma Medical also saw a slight increase in the cost of sales in 2019, resulting in a 12.1 per cent decline in gross profit to £1.67m in 2019 against £1.9m in 2018.
In its strategic report, the company noted: “Despite the difficult trading conditions the financial position remains strong with cash balances of £1.6m being held at 30 November 2019.”
The results for the year ended 30 November 2019 preceded a difficult 2020 for the industry following the outbreak of coronavirus and continuing Brexit uncertainty.
During the first lockdown, the Bridgend-based manufacturer continued to trade and shifted production to IV stands & commodes for London’s Nightingale hospital (https://thiis.co.uk/roma-medical-shifts-production-to-aid-national-coronavirus-effort-with-iv-stands-commodes/).
The company also launched its own direct-to-consumer channel, Invamed.co.uk, this summer. The eCommerce site enables customers to purchase its mobility aids, including mobility scooters and powerchairs, directly from the manufacturer and includes a price-match guarantee.https://thiis.co.uk/roma-medical-reports-2-5m-profit-for-2019-after-releasing-liabilities-of-3m-related-to-tax-dispute/https://i1.wp.com/thiis.co.uk/wp-content/uploads/2020/12/Invamed-December-website.jpg?fit=900%2C454&ssl=1https://i1.wp.com/thiis.co.uk/wp-content/uploads/2020/12/Invamed-December-website.jpg?resize=150%2C150&ssl=1NewsroomSupplier NewsTrade Newsannual report,COVID-19,direct-to-consumer,HMRC,Invamed,John Pitt,medical aids,Mobility aids,Nightingale,P&L,Roma Medical,Simon Dalton Roma Medical, the manufacturer of medical aids and rehabilitation equipment, has reported pre-tax profits of £2.49m for the year ended 30 November 2019, ending four years of losses. The pre-tax profit was attributed to the release of liabilities related to the long-running case with H M Revenue & Customers (HMRC). In...Calvin BarnettCalvin Barnettcalvin@thiis.co.ukAdministratorTHIIS Magazine