Medrom doubles investments after below-expectations results

Medrom medical equipment supplier will double the funds earmarked as investments on the Romanian market, after registering sales below expectations this year.

“We carried out an investment plan worth around 2 million euros this year in Romania, with the largest part of these funds being destined to private diagnosis centres operated by our Prima Medical subsidiary or in partnership with other operators. We plan to invest another 4 million euros next year on the same segment of the market,” stated Horst Hahn, general manager of Medrom.

Medrom medical equipment supplier will register turnover worth 20 million euros on the markets in the region this year, a result that is lower than the company”s officials had expected. “The Romanian medical equipment market has witnessed quite a slow evolution, but the company”s results have been bolstered by the establishment of an Ukrainian unit. The company”s revenues will be lower than forecast due to results seen in Romania and Bulgaria,” Hahn added. The company”s representative did not specify the results posted on the Romanian market, but at the beginning of the year estimations pointed to turnover worth around 5 million euros from distribution of medical equipment alone.

Beside markets in the region, Romania, Bulgaria and Ukraine, the company also carries out operations in the United States and Ireland. “The Bulgarian and the Romanian markets are coping with a lack of investment in specialised medical equipment, both on the private and on the state-run segment. Nevertheless, we are banking on turnover growth to 35 million euros next year,” Hahn also said. Medrom is controlled by businessman Laszlo Bene, a Hungarian investor living in Spain.

Prima Medical division was set up in early 2004 and specialises in the development of medical diagnosis centres. On the Romanian market, Medrom is present with the medical equipment distribution unit, the leasing unit and the unit manufacturing radiogenic tubes for radiological equipment. “We will be closely watching the political climate in the domain of health services, where we expect 2006 to bring some changes,” Medrom manager also stated.

The company recently opened new headquarters, acquired in the wake of a deal worth around half a million euros.