Daysoft, the Blantyre-based supplier of daily-disposable contact lenses, has booked a steady rise in full-year sales as it continues to attract more than 1,000 new wearers a week.
Founder and executive chairman Ron Hamilton highlighted the success of the firm’s business model as accounts for 2015 revealed that overall sales rose by 4.7 per cent to just over £10.8 million, generating a profit before tax, interest and dividends of £1.5m.
Hamilton said the business had successfully married “advanced manufacturing processes” with an internet-based sale-and-supply system under one roof.
He said: “The traditional model for contact lens sale and supply is that the lenses are produced by major manufacturers, shipped to their various country-based distribution centres, then sold and supplied on to high street opticians who then sell and supply to consumers.
“By contrast, Daysoft produces all its lenses at our single manufacturing base where we take orders 24/7 from around the world using our advanced e-commerce website and post direct to wearers’ home or office address.”
Hamilton, who was awarded a CBE in 2012, added: “Four major manufacturing companies control global contact lens supply. They produce over 200 different brands which we substitute with one design in two packaging solutions.”
Daysoft’s chairman is credited with inventing the daily-disposable contact lens, successfully commercialising the process before selling the business and patents to Bausch & Lomb (B&L) for more than £30m. Following a five-year, non-compete agreement with B&L, Hamilton decided to re-enter the market by linking a new manufacturing process to internet technology, and launched the Daysoft direct business in 2006.
The firm noted that sales to UK independent opticians and distributers in other European countries had been maintained during the year.
In its results statement, it added: “Substantial manufacturing process re-organisations and equipment upgrades lifted productivity very significantly during the year.
“The full benefits will be experienced in 2016. Likewise, the integration of all Jersey-based fulfilment operations into Blantyre further reduced the business cost base. The costs of the above changes, including the facilities integration costs, have been written-off against profits for 2015.”