Profits fall at city's largest private sector firm
PRE-TAX profit fell at Inverness medical products firm LifeScan Scotland last year.
The business – which is the city’s largest private sector employer and one of Scotland’s leading life sciences companies – also experienced a drop in turnover for the year ended December 31 compared to the previous 12 months.
Results were posted after a binding offer to buy LifeScan Inc, which includes LifeScan Scotland, was accepted by Johnson and Johnson earlier this year.
No adjustments were made to the accounts as a result of the move.
The firm’s latest annual report and financial statements show pre-tax profit of £33,960,000, down from £51,569,000 for the year ended January 1, 2017.
For the same period, turnover dropped from £134,630,000 to £114,516,000.
A strategic report accompanying the accounts stated: "Despite the decrease in revenue during the year, overall the directors were satisfied with the company’s continued generation of profits and with the financial position of the company at the year end."
Adverse market conditions including a difficult economic environment and strong competitive forces impacting pricing were viewed as factors in the reduced revenue.
The report added: "The markets in which the company operates are expected to remain competitive in 2018.
"The development of new and existing products and processes continues to be important to the success of the company in all areas of the business."
Staff costs increased last year to £51,630,000 from £48,015,000, while the average number of employees fell from 1048 to 961. Directors’ remuneration dropped from £673,000 to £559,000, and the highest-paid director’s rewards slipped from £260,000 to £238,000.
The business, which is based at the Beechwood, makes products for blood glucose monitoring used by diabetics. Johnson and Johnson accepted a $2.1bn offer from private investment firm Platinum Equity in the summer.
