Daysoft, a Scottish manufacturer and Internet seller of daily disposable contact lenses, has been negatively affected by the government’s tax policy aimed against retailers shipping from the Channel Islands, resulting in a drop in the company’s profit.
Daysoft’s pre-tax profit decreased by as much as 25% even though its sales rose by 4%. This is because the government had abolished the Low Value Consignment Relief allowing retailers to sell cheaper products from the Channel Islands to the UK without VAT.
According Ron Hamilton, the founder of Daysoft, the prices of the company’s products increased by 20% as a consequence of the government’s decision. However, the growth of Daysoft’s sales allowed it to take on new employees and expand its operations.
A statement issued by the company says its directors are satisfied with Daysoft’s development and that they are certain it has a great potential for growth and much higher profits in the future.
Daysoft was established by Ron Hamilton, the inventor of daily disposable contact lenses, to make such lenses affordable to all patients.