Investment for The Magstim Company supports growth and expansion
Carmarthenshire-headquartered medical technology developer The Magstim Company has invested in new product development and US expansion after it secured backing from a specialist life sciences, medical and healthcare investor.
The company, which makes medical devices used in neuroscience, psychiatry and neurology, secured investment from US firm Telegraph Hill Partners last year. Since then it has developed new products with the aim of growing the business over the coming years.
The US has become a key growth area for the business after the Food and Drug Administration (FDA) granted clearance for its technology to be used in the treatment of drug resistant major depressive disorder.
Executive chairman Steve Godber said: “I joined the company last year and my remit was to find a new investor. The founders had been there for 25 years and were ready to depart. We found the perfect strategic partners in Telegraph Hill Partners in San Francisco. Magstim was the ideal company for them to work with as well and they effectively bought out the shareholders in September. Our remit was to grow the business substantially and quickly following the deal and the FDA approval in the US.”
According to newly filed accounts for The Magstim Company Ltd, the company recorded a pre-tax loss of £1.76m on £8.6m turnover for the year ended 31 March 2016. This compared to a £806,670 loss on £9.2m turnover the previous year.
However, Godber said the results for 2015/16, as well as the current financial year, had been affected by the “significant” investment in the business following the deal. “It’s going a very positive growth story over the next few years” he said. “We’re going to be growing the business organically and through acquisition. We’re now investing heavily in product development as company hasn’t really developed much new in the past few years. The first product will be out at the end of the calendar year. We’re also growing sales and marketing, particularly in the US.”
Magstim also secured further backing from the Welsh Government during the year, enabling it to expand its Whitland base and supporting the creation of up to 50 jobs.
Steve Godber added: “We have just taken occupation of a second factory building which will enable us to bring the development engineering business back into the main building. They’d had to move out following expansion and had been based in an old brewery building. I have to pay tribute to the Welsh Government who have supported the building of both our factories.”