Surgical Innovations eyes acquisitions as profits quadruple

SURGICAL Innovations saw a leap in revenue and pre-tax profits last year and is considering acquisitions.

The Leeds-based surgical device manufacturer saw revenue increase 55% to £7.045m for the year to December, up from £4.541m the previous year.

Pre-tax profit rose 487% to £1.549m from £264,000 in 2009.

The company said it was continuing to review acquisition opportunities in the area of minimally invasive surgery “where strong synergies exist with the group and where our R&D expertise and in-house manufacturing capabilities can create improvements to the products and cost savings for the end user.”

Chairman Doug Liversidge said: “The group has undergone yet another year of transformation, successfully meeting the demands of rapid growth.

“We have continued to invest heavily in the business while research and development capability has undergone a step-change to speed up new product development and improvements to our existing technology.

“This has proven to be very appealing to potential OEM (Original Equipment Manufacturer) customers and as a result we are seeing an influx of enquires for a range of minimally invasive devices. With an already promising start to 2011, we are looking forward with confidence.”

During the period, SI’s operating margins increased to 22% from 6% the previous year and net cash of £2.2m was generated from operating activities.

Own brand sales increased 30% to £3.852m, driven by its flagship Resposable products while OEM revenues increased 71% to £2.506m.

Industrial sales were boosted by the delivery of a £616,000 order.