Revenues rise at Surgical Innovations
REVENUES have risen at Surgical Innovations as it remains focused on the lucrative US market.
The Leeds-based specialist in the design and manufacture of creative solutions for minimally invasive surgery (MIS), reported a 12% increase in revenues to £8.55m this morning, as it announced its preliminary results for the financial year to the end of December 2013.
Surgical Innovations (SI), which is creating a new manufacturing and clinical training centre at Thorpe Park in Leeds, saw revenue of its branded products increase by 22% to £6.5m and a 73% increase in revenue to the US of these branded products, due to multiple new routes to market.
However, adjusted EBITDA dropped to £2.51m from £2.89m in the previous year, after being impacted by the introduction of improved manufacturing processes and currency fluctuations. Pre-tax profit fell to £796,000 from £1.2m and the group said its profitability was adversely affected by the combined effect of the US Dollar exchange rate in the final quarter of 2013 and the necessary improvements in manufacturing operations designed to streamline and improve process flows of individual product lines, in particular to support the growth in US revenues.
Non-executive chairman Doug Liversidge said: “During the period, the group has driven revenue in the US, vindicating the board’s investment into this market. Being the principal consumer of medical devices in the world, the US offers real opportunities for SI both in terms of revenue and brand recognition. The board believes that the group is now well placed to develop its revenue channels both in the UK and internationally, particularly capitalising on the demand from the US.
“Ultra MIS creates an opportunity for the group to develop a unique clinical proposition. The board is confident that this strategy will result in future growth in revenues and looks forward with confidence.”
Looking ahead, Liversidge added: “The first quarter of 2014 has seen a focus on further improvement in manufacturing operations to ensure the group is positioned to support the execution and implementation of the group’s clinical and development strategy. By working towards a unique product offering within a developing area of laparoscopic surgery, the board looks forward to the future with confidence.”
