Healthy interim results despite demanding regulatory environment

Leeds-based Surgical Innovations has today announced interim results, showing a revenue rise of 14.1% to £3.47m.

The designer and manufacturer of medical equipment for key hole surgery, listed on the AIM, said this was despite a more demanding regulatory environment across the industry.

The med tech company, which has a 32,000 sq ft head office in Leeds, acquired  Elemental Healthcare in July in a £9.4m deal. A £5.5m equity fundraise was also secured.

While the numbers will not contain any contribution from Elemental, it having been acquired post the period end, the company says the statement gives an early indication of how the business is fitting in to the wider group as well as confirming further progress and growth at the core business.

Executive chairman of SI, Nigel Rogers, said: I am pleased to report that SI has delivered financial results at the upper end of our range of expectations in the first half of the year, with strong growth in revenues and profits, and an increase in net cash balances.  Trading in the second half of the year to date has been satisfactory, and continues to meet the board’s expectations.

“Following the recent acquisition of Elemental Healthcare Limited and the resulting appointments of Adam Power and David Marsh to the board, we also have a wider field of vision for the identification of further potential acquisition opportunities, and additional management capacity for execution and integration of any future transactions.

“Accordingly, we have ambitious plans for the future development of the Group’s activities, and confidence in our combined ability to deliver further success.”

 

Surgical Innovations is a UK-based designer, manufacturer and, post Elemental, distributor of specialist medical devices, primarily used in minimally invasive, or keyhole surgery.

The majority of manufacturing is carried out from its 32,000 sq ft head office in Leeds which has received substantial investment in tooling, plant and machinery as well as a plastic injection moulding capability.

Roughly two thirds of revenue is derived from overseas markets.

Surgical Innovations have seen a trend to make smaller and smaller incisions, which offer the advantage of reduced post-operative pain and trauma for the patient. It also promotes a faster recovery time.

Surgical Innovations experienced a period of transition culminating with the appointment of Nigel Rogers as Executive Chairman in October 2015.

Since then, it has successfully stabilised through the hard work and commitment of the Board and major shareholders making the future positive as it enters a sustainable growth phase. 

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