24th Oct 2016 08:16
LONDON (Alliance News) - InnovaDerma PLC on Thursday said it is planning to move a significant portion of its manufacturing to the UK from Australia.
InnovaDerma, which makes at-home treatments for hair loss, self-tanning and skin rejuvenation, said it has hired Prestige Personal Care Ltd, a skincare and haircare products maker, to manufacturer InnovaDerma products.
Production in the UK is set to start in December.
InnovaDerma said the move will improve its supply chain to its most important end markets of the UK and Europe. The firm expects the move to boost operating margins due to lower freight and logistics costs.
"Our strategic decision to move part of our production to the UK was driven by two things: the importance InnovaDerma places on this market, and the savings to be found, principally in the areas of manufacturing and logistics," said Executive Chairman Haris Chaudhry.
"The subsequent depreciation in the pound sterling has made the UK an even more competitive place from which to do business, and more attractive to investors, which lends further weight to the board's decision to grow both in this market and elsewhere in Europe," he added.
Shares in InnovaDerma were up 7.3% to 127.70 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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