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Drive DeVilbiss Healthcare makes £10.97m loss as turnover, profit and sales steady

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Drive DeVilbiss Healthcare’s latest financials show it made a £10.97m loss in 2019.

A jump in exceptional administrative and operating expenses alongside a rise in amortisation, depreciation and impairment contributed to an operating loss of just over £5.8m.

Exceptional administrative operating expenses rose from £820,000 in 2018 to £2.6m in 2019 while amortisation, deprecation and impairment went from £8.4m to £10m last year.

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This saw operating loss rise to the £5.8m from just £518,000 in 2019.

Turnover remained steady at around the £105m mark, similar to cost of sales at around £71m.

Gross profit also remained the same at £34.6m.

Distribution costs for the firm went down in 2019 to £15.9m from a 2018 figure of £17.6m.

Drive DeVilbiss Healthcare manufactures and distributes a complete line of medical products, including mobility products, respiratory and sleep products, beds, wheelchairs, sleep surfaces and pressure prevention products, self‐assist products, power- operated wheelchairs, rehabilitation products, resident room equipment, personal care products and electrotherapy devices.

In assessing the financial report, the firm says its recent restructuring process has put it in a strong position, despite the multi-million pound loss.

Last year, AMP reported on how the firm secured £28m in new capital together with a reduction in cash debt service obligations from its current lenders.

The transaction secured broad support across Drive’s capital structure, including a substantial majority of Drive’s first and second lien lenders and new capital from the company’s primary equity holders. 

Bob Gilligan, the firm’s chief executive officer at the time, said: “We are pleased with the strong demonstration of support that our stakeholders have shown to our business and strategic vision.

“The new capital and associated capital structure enhancements will enable Drive to continue to invest in improving our infrastructure to deliver high quality service to our customers, while also providing additional runway to execute on our business plan supporting continued growth.”

This financial reports show that Medical Depot forgave £69m worth of intercompany debt, meaning Drive’s longstanding liability stood at £28.4m.

As part of the director’s report on the financials, they explained that they have no reason to believe will be required to be repaid in the next twelve months, thus making it a long-term liability.

The director’s report went on to detail: “The UK Group does not require nor is it relying on any new or additional funding from Medical Depot over the assessment period.”

It continued: “The group has its own dedicated lines of capital and finance to meet its cashflow and working capital needs.”

These results come shortly after Drive DeVilbiss Sidhil, a subsidiary of Drive DeVilbiss Healthcare, shared its financial results.

AMP reported on how the manufacturer saw a 14% increase in its turnover in 2019 compared to the previous 12-month period.

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Alex Douglas

The author Alex Douglas

1 Comment

  1. Drive DeVilbiss, helping to destroy their own marketplace with race to the bottom online retail division, clearly an excellent strategy.

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