Medtecs International, the integrated healthcare services provider and OPM (original product manufacturer), says it posted a 109% rise in net profit to US$2.1 million ($2.9 million) for the financial year ended Dec 31 2009 despite a 30% decline in group revenue to US$56.7 million as the twin effects of focus on higher-margined product sales and cost optimisation kicked in.

Revenue for the OPM division fell 38.2% to US$42.7 million due to lower demand for linens, hospital and hospitality apparels from the US. This was partly mitigated by increases in sales of protective garments and other H1N1-related products.

Revenue from Hospital Services rose by 2.8% to US$9.9 million due to rate revisions and new contracts secured in Taiwan and the Philippines.

Revenue from Trading and Distribution activities rose by 105.6% to US$4.1 million due to higher sales of medical consumables and protective garments.

Group profitability rose with gross profit margin improving 5.5 percentage points to 19% and net profit margin improving 2.4 percentage points to 3.7% from higher margined sales and savings on energy investments.

Property plant and equipment increased by US$7.2 million mainly from investment on energy conversion kits and expansion of manufacturing facilities.

Group borrowings fell US$2.4 million to U$39.1 million which was primarily due to payments.

The group’s operating cash flow was positive. For the year ended 2009, the group generated a US$10.8 million cash inflow from operating activities on better working capital management.

Net cash outflow of US$4.5 million was mainly the result of payments of long-term loans.