news

Vindon grabs opportunity for outsourced contracts

• FROM: May 2006 |
• TAGS: vindon, support services |
• COMMENTS: Add yours

• Vindon grabs opportunity for outsourced contracts
• | Printer-friendly version

Vindon Healthcare shares are finally starting to reflect the company's prospects. The high level of contractual earnings provides a strong and growing base for the business.

Oldham-based Vindon started out as a manufacturer of laboratory incubators, blood banks and environmental rooms. A decade ago it diversified into storage services and these are becoming an increasingly important revenue contributor. The range of services has been extended to include disaster recovery management. A significant chunk of revenues come from services including validating equipment and maintenance contracts. Stability storage contracted revenues total £700,000 for 2006.

Demand is partly dependent on continued development of new drugs. The pharmaceutical sector is looking to outsource activities and regulation changes will help to boost demand. There is also scope for Vindon to expand geographically because most of its turnover is in the UK and Republic of Ireland.

Turnover was £2.6m in 2005 and pre-tax profit was £499,000 in the stated figures for 2005. That only includes 10 months of the core business which was bought by the holding company at the end of February 2005. New management took control at that time and the effect of its strategy to increase business in Europe should start to show through this year.

Net debt is around £1.6m. Vindon is looking to move from its existing site to a facility with twice the capacity. The current freehold property could be redeveloped which would help to finance the move.

Have something to say?

Discuss this article: post your comment below. Please be polite. We reserve the right to delete any inappropriate comments.

Name: (required)

Email: (required)

Web address:

Your comment (required)

Remember my personal information
Notify me of follow-up comments?