City Briefs: Smith+Nephew; MJ Gleeson; and more

Hull-based medical equipment manufacturer, Smith+Nephew, expects a fourth quarter underlying revenue decline of approximately -7%.

The business today reports its sales were impacted by increased rates of COVID-19 infection from mid-October onwards, particularly in the US and Europe where more medical procedures have had to be postponed following the reintroduction of virus-related restrictions.

As in previous months, the impact was most pronounced on the company’s Orthopaedic Reconstruction, Sports Medicine and ENT businesses, driven by lower levels of elective surgery.

But Smith+Nephew’s Advanced Wound Management and Trauma businesses remained more resilient.

Full year underlying revenue is expected to have declined approximately -12%.

Further detail of the company’s trading performance, including franchise and regional sales performance, trading profit margin, and a review of our strategic progress in 2020, will be provided within its fourth quarter and full year results, scheduled for 18 February 2021.

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Housebuilder MJ Gleeson has outlined its performance for the half-year ended 31 December 2020, reporting that its homes division completed the sale of 951 units during the period.

This was an increase of 17.3% on the previous first half-year’s total of 811 units.

The Sheffield-based business says it continues to see strong demand for its low-cost homes.

It opened 17 new sites during the first half-year and expects to open at least another 10 sites during the second half.

By the end of the financial year it expects to be actively building on approximately 80 sites and actively selling on at least 65 sites.

The Group’s trading update notes: “All sites are Covid-secure, remain open for construction and sales, and are operating in line with the most recent Government lockdown requirements.

“The Board re-affirms its target of delivering 2,000 units per annum in the year to June 2022.”

The company’s strategic land division, Gleeson Strategic Land, sold four sites during the first half-year.

With stronger demand for high quality consented land from medium and large housebuilders the division says it is now actively progressing the sale of a further four sites.

Given strong demand in the Gleeson Homes division and the progress made by Gleeson Strategic Land the company’s Board expects Group results for the full year to 30 June 2021 to be at least in line with expectations.

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Science Group, which has a base in Knaresborough, says its revenue for the year is now anticipated to be about £73m (2019: £57.2m).

The company, which has published a trading update for the 12 months to 31 December 2020, adds that subject to audit, its adjusted operating profit for the year ended 31 December 2020 will exceed the previously upgraded expectations of £10m (2019: £6.7m).

In the first half of the year, the Group received funding for furloughed employees under the UK Government scheme.

The Board elected to repay such monies received from the Government in the second half of 2020.

As of 31 December 2020, the Group had cash (excluding client funds) of £27.1m (2019: £13.9m) and net funds of £10.6m (2019: net debt of £2.3m).

Due to the severity of the pandemic and the associated restrictions, the Board anticipates the audit process for the year ended 31 December 2020 will take longer than usual.

Science Group’s preliminary results for the year are therefore expected to be released in mid to late March.