Trading Update

RNS Number : 1437Y

Surgical Innovations Group PLC

19 February 2013

 



Surgical Innovations Group plc

("SI" or the "Company")

Trading Update

Surgical Innovations Group plc (AIM: SUN), the designer and manufacturer of creative solutions for minimally invasive surgery ('MIS'), provides the following trading update for the financial year ended 31 December 2012.

SI saw substantially improved trading across both SI Brand and OEM segments in the second half of 2012, driven by increased product demand resulting in contracted orders for delivery in 2012 of £5.6m. This represents an 85% improvement on first half performance; however due to manufacturing capacity constraints at the existing Leeds facility and a delay in US regulatory approval in the final month of the year, £1m of these orders were recognised as revenue in the first week of the financial year ending 31 December 2013.  

As a consequence total revenue reported for the 12 months to 31 December 2012 is now expected to be £7.6m (FY 2011: £7.6m).

Following the strategic decision to promote SI Branded products, which now represent 68% of overall revenues (FY 2011: 62%), gross margins are expected to have improved by three basis points to 50.3% (FY 2011: 47.3%). Adjusted EBITDA for the period is ahead of the previous year at £2.85m (2011: £2.8m).

SI ended the year with short term borrowings of £1.4m against bank facilities provided by HSBC of £2.0m.

Given the revenue recognition of £1m in January 2013, the current financial year has started well and provides a sound platform for the remainder of the current financial year.

The Company will announce its preliminary results for the year ended 31 December 2012 on Tuesday, 9 April 2013.

Graham Bowland, Chief Executive Officer, commented: "I am pleased with the strong sales performance that we've achieved in the second half of the year. There is no doubt that the manufacturing capacity constraints we experienced in the final quarter of 2012 justify the need for our proposed new facility part funded by the award of the £5m RGF."

- ENDS -

Enquiries:

Surgical Innovations Group plc	www.sigroupplc.com
Doug Liversidge, Non-Executive Chairman	Tel: [phone]
Graham Bowland, Chief Executive Officer	[e-mail]
Seymour Pierce Limited	www.seymourpierce.com
Mark Percy (Corporate Finance)	Tel: [phone]
David Banks (Corporate Broking)
Walbrook PR Ltd	Tel: [phone]
Paul McManus	Mob: [phone] or [e-mail]
Lianne Cawthorne	Mob: [phone] or [e-mail]

Notes to Editors:

About Surgical Innovations Group plc

Surgical Innovations Group plc specialises in the design and manufacture of creative solutions for minimally invasive surgery (MIS) and industrial markets. 

As well as manufacturing single-use and reusable instruments for the laparoscopic market, the Group has pioneered its flagship Resposable® instrumentation combining both single use and reusable components, ensuring ongoing revenue streams and delivering the optimum procedure performance to cost ratio.

Over 120 people are employed at the Group's 32,000 square feet facility in Leeds, with in-house design, plastic injection moulding and manufacturing equipment, producing products to the highest quality standards.

The Group's patented products are sold through three main channels:

SI brand	Through an established network of distribution partners, Surgical Innovations branded products are sold in major medical markets including North America, Britain, South East Asia, Australasia and the Indian subcontinent.
OEM and IP	The Group supplies large medical device companies on an OEM basis, generating both sales and IP royalty fees.  Clients include Teleflex Medical, Olympus and CareFusion.
Industrial	SI's patented segment technology has been applied to the industrial market enabling customers to undertake inspection and maintenance of large-scale equipment, in situ with minimum disassembly and downtime.

For more information, see www.sigrouplplc.com

 

END

 

 

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