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Surgical Innovations (SUN)

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Tuesday 19 February, 2013

Surgical Innovations

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: +44 (0) 113 230 7597

Graham Bowland, Chief Executive Officer

[email protected]

 

 

Seymour Pierce Limited

www.seymourpierce.com

Mark Percy (Corporate Finance)

Tel: +44 (0) 20 7107 8000

David Banks (Corporate Broking)

 

 

 

Walbrook PR Ltd

Tel: +44 (0) 20 7933 8780

Paul McManus

Mob: 07980 541 893 or [email protected]

Lianne Cawthorne

Mob: 07584 391 303 or [email protected]

 

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

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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