Swift Dental Laboratory Limited

The Directors present the Strategic Report for the period ended 31 July 2024. Review of business and future developments The Directors are delighted with the results for the year ended 31 July 2024 with an underlying operating profit after adjusting for depreciation, amortisation and one off bad debt provision of £2,404,067. Our production methods are continually evolving with a market change from receiving traditional impressions to more work being received via scans, we have seen continual growth during the period, with nearly 40% of work being received via intra oral scans. We have embraced this change with manufacturing techniques and work-flow being continually adapted to ensure we continue to maintain services to our valued customers. Our dedicated team of technicians continues to embrace change and provide senior management with opportunities to improve our production methods of our business, we thank them for all their hard work during this year. During the year, we moved our digital production to our state-of-the-art facility in Bolton, which we believe is a world-class digital production facility. This move has enabled us to hold a significant number of events for our valued client base, which allows us to showcase our facility but also to allow our clients to hold events for up to 50 colleagues. Principal risks and uncertainties Whilst the group takes a responsible and balances approach towards risk management it also recognises that risk is an inherent part of doing business and, as with all other businesses, some necessary risks may be beyond its control. The group benefits from a strong market reputation and goodwill, and its strategic objective is to build on this, increase services to both existing and new customers and provide enhanced quality solutions which assist customers with their needs. Financial risk management The group's operations also expose it to a variety of financial risks that include the effects of liquidity risk, exchange rate risk, interest rate risk and credit risk. The group aims to mitigate liquidity risk by closely managing cash generation by its operating business and monitoring performance, Capital investment is closely controlled with authorisation up to Director level. The group's exposure to changes in market interest rate relates primarily to the group's financing activities. The group does not consider this to be a significant risk. It is the group's policy that all customers who wish to trade on credit terms are subject to credit verification procedures. The group only offer terms to recognised, credit-worthy third parties. Trade debtors are monitored on an on-going basis, and action is taken where credit terms are breached. The group trades primarily in the UK and as such exchange rate risk is low. No derivatives are used. Key performance indicators The Directors of the group manage performance by reference to a number of key performance indicators. All areas of financial performance are measured against an annual budget which is reviewed monthly at a Board . The headline KPI's for the group are gross margin of 48% for 2024 (2023 - 46%) and adjusted EBITDA as a percentage of sales being 13% for the year ended July 2024(2023 - 12%).