Medium to long term outlook positive for MedTech firm

Medical technology business, Surgical Innovations has its financial performance for the year to 31 December was in line with expectations.

The Leeds-based business highlighted that it performed better during the second half of what it described as a “more challenging year than we had anticipated”.

The business reported revenue of £10.73m, slightly lower than the previous year’s £10.97m, however the final quarter of 2019 saw a number of contracts extended for the manufacturer and distribution of other devices til 2022 and beyond.

Internationally it reported sales were down in Asia Pacific but that was attributed to unusually high revenues in the previous year. A similar sales fall happened in Europe, however this was less than had been originally anticipated. However in the USA and Rest of World regions there was growth, which partly offset the figures.

The current Coronavirus pandemic has started to impact the business, due to a slowdown in elective surgeries within the NHS and other key markets. The business also anticipates having to rely upon outside agencies including the UK government, its bank and possibly others to ensure it continues to have adequate financial resource.

Despite this board remain confident that “following an inevitable period of serious disruption requiring careful navigation”, the medium to long term outlook remains positive.

Nigel Rogers, chairman of Surgical Innovation commented, “I am pleased to report improved results in the second half of what turned out to be a more challenging year than we had anticipated. Management were faced with some difficult conditions and uncertainties, mostly in relation to planning for Brexit, building up the regulatory resource to meet an ever increasing burden, and a continuation of funding and resource constraints in the NHS.

Adding: “Our product ranges are becoming increasingly recognised as a key part of a sustainable approach to surgery, and this offers significant medium term growth potential. Our business has net cash and is operationally sound. We have strong partnerships with the NHS, our major distributors, OEM customers and key vendors, based on mutual co-operation and shared success.”