Leeds healthtech firm back in the black

Healthtech business Surgical Innovations, is back in the black, but warned that stringent new regulatory changes could hinder its progress in future.

The Leeds-based group returned pre-tax profits of £280,000 for the year to December 2016, compared to a loss of £2.13m in 2015 – well ahead of market expectations.

The business, which specialises in minimally invasive surgery equipment, said that export-led revenue growth had seen turnover grow 11% to £6.09m.

During the year it also acquired, in November 2016, the group acquired laparoscopic instruments business Surgical Dynamics for £360,000, bringing new products to the SI portfolio but also specialist production processes. Assets have now been transferred into the SI site and machining trials are underway.

Executive chairman, Nigel Rogers, said: “Management have now demonstrated a track record of financial success, and built a robust platform for future development of the business.

“Recent regulatory changes have increased barriers for new market entrants, and strengthened the market position of those with the skills and experience to meet more stringent requirements.

“Our core market in laparoscopic surgery is not completely immune from the effects of economic uncertainty, but health spending in this area in the UK and other developed markets is forecast to continue to grow ahead of inflation.

“We aim to outperform the sector as a whole by increasing market penetration through opening new territories and introducing additional products and ranges, both organically and through additional partnerships and carefully selected acquisition activity.”

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