One of the biggest employers in the Highlands has reported a large slump in profits.
LifeScan Scotland, which is part of US healthcare giant Johnson and Johnson (J&J), saw pre-tax profits plummet by more than 16% to £86.15million in the year to December 29, 2013.
Turnover was down by 9% at £159.36million as the company faced “adverse market conditions” and “strong competitive forces”.
LifeScan Scotland employs more than 1,000 people and its Inverness operation is considered to be a centre of excellence for experts working on new treatments for diabetes.
Its main product range includes its OneTouch blood glucose monitoring systems, which are available globally.
The firm is also a partner in the Highland Diabetes Institute, alongside NHS Highland and the University of the Highlands and Islands.
LifeScan Scotland’s latest accounts, just released by Companies House, highlight the many challenges currently facing the business.
In their annual business review, bosses said they were satisfied with the company’s performance and financial position.
But they added: “Turnover has decreased by 9% year-on-year due primarily to adverse market conditions, including a difficult economic environment and strong competitive forces which have impacted pricing.
“As a result, operating profits have decreased by 17% (to £85.63million).
“The markets in which the company operates are expected to remain competitive in 2014.
“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.
“Management remains confident that the company will continue to perform well in the future.”
LifeScan Scotland, which declined to comment on its figures yesterday, said the average number of employees increased by 4% last year to 1,108 “in line with management expectations”.
The firm’s highest paid director earned £223,191 in salary and benefits, excluding any gains made on the sale or receipt of shares, compared with £259,407 the year before.
In July last year, LifeScan Scotland announced it was axing dozens of jobs at its Inverness base.
It said about 40 people were to lose their jobs at Beechwood, blaming changes in the global diabetes market.
The company was created in 2001 when J&J acquired the UK assets of healthcare device company Inverness Medical.