Healthy outlook as profits double at Surgical Innovations

SURGICAL device manufacturer Surgical Innovations is aiming to access new markets, including South America, after seeing its strategy to bring manufacturing in-house pay off.

The Leeds-based firm, which designs and makes products for use in laparoscopic surgery which make it easier for surgeons to operate on the abdominal area, has reported increased revenues and profits after what chairman Doug Liversidge described as “an exciting period for the group”.

Pre-tax profits for the six months ended June 30 increased by 95% to £215,000 on revenues up 14% to £1.99m.

Operating profit was up 185% to £234,000.

Mr Liversidge said: “These results are a vindication of our strategy over the past three years. We’ve had solid growth and these are good results based on real orders and real work.

“This is a market that is really demanding these types of products at this present time. I’m particulary pleased for the team here. There’s a great team which is really committed.”

Managing director Graham Bowland said he was pleased with progress at the company, which has seen all its operations move in-house into its headquarters, helping the company become more efficient.

Mr Bowland said Surgical Innovations was aiming to increase its sales and marketing teams to capitalise on its existing commercial relationships in more than 40 countries.

He said the company was recruiting three graduates to manage the firm’s existing network so he could concentrate on accessing new markets, which include South America and Saudia Arabia.

He said the group would continue to focus on manufacturing, design and developing relationships with major medical companies.

“We are very fleet of foot which is why companies like to work with us,” Mr Bowland said.

He said Surgical Innovations’ Logi range, a cost effective instrument which combines a reusable handle with a disposable insert for optimum performance, had seen increased sales in the US but the group was still working to increase its sales of YelloPort Plus, a reusable device which helps access to the abdomen for operations, in the country.

The company is continuing to develop relationships with Original Equipment Manufacture (OEM) partners and had also successfully launched LogiFlex, a product designed as an aid to gastric band fitting, at a major conference in Paris.

“My wife was at that event and had to work on our stand for a time because we were so busy,” Mr Liversidge said.

The company is also planning to introduce new manufacturing methods in-house in 2010, including injection moulding.

He added: “This has been an exciting period for the group and sales of both our Surgical Innovations’ branded and OEM products have been strong. 

“The strategy to bring manufacturing in-house has proven to be highly successful providing the platform for increased revenues and profitability. 

“The global market for laparoscopic surgery continues to see significant growth and I am confident that the group will take full advantage of the opportunities ahead.”