F&P Healthcare to focus on breathing aids

By ROB O'NEIL

Fisher & Paykel Healthcare has sold its mobility scooter business to Melbourne's Plega Healthcare to focus on its key humidification business.

The scooter business accounted for around 3 per cent of Fisher & Paykel Healthcare's $118 million revenue to March 31, 1999. It is understood the sale price was less than $1 million.

"The largest part of our business is devices which humidify the air for patients who require assisted breathing," says general manager Mike Daniell. New applications for humidification, including treatment for obstructive sleep apnoea, have provided a large part of sales growth in the past five years.

Fisher & Paykel markets its healthcare products to more than 60 countries. Ninety-five per cent of its production is exported. The healthcare division has grown at 15 per cent a year for the past five years. Last year, the division contributed $41 million to earnings before interest and tax, 60 per cent of the group's total.

Chief executive Gary Paykel says the company plans to double its healthcare sales over the next five years without reducing margins. It is investing $27 million in a new manufacturing facility at East Tamaki.

Fisher & Paykel Healthcare also makes disposable breathing circuits and radiant warmers and markets agency lines in New Zealand and Australia.