City briefs: Surgical Innovations and Powerhouse Energy

MedTech business Surgical Innovations Group says its revenues are showing significant growth, and for the six months to 30 June 2022 are expected to be at least 22% above the comparable period last year.

Issuing a trading update ahead of its Annual General Meeting today, the Leeds-based firm says early indications show this impetus is continuing into the second half of the year.

Demand in the UK market for the company’s products continues to be strong and is trending above pre-pandemic levels of 2019.

Surgical Innovations adds that its international business is trading slightly ahead of performance for the first half of the corresponding period in 2021, but it notes the regulatory pathway continues to be difficult as the company navigates through the complexities of the EU Medical Device Regulation (MDR).

In April, the business received Medical Device Single Audit Programme (MDSAP) recertification, maintaining access to the key strategic markets of Canada, USA, Japan and Australia for a further three years.

Commenting on the increasingly tough labour market, which is exacerbated by inflationary pressures, Surgical Innovations’ update states: “The Group has invested further to retain and attract employees through various initiatives, one of which is to join the trial for the UK pilot programme for a four-day working week.

“This will be carefully managed to ensure five-day continuity of service and support.

“The shortage of skilled labour and challenges in supply chain logistics have extended sales order lead times and impacted manufacturing productivity. This has been mitigated to a degree by increased inventory holdings and close co-operation with customers and dealers.

“However, there remains an increase in back orders which will continue to be addressed in the second half of the year.”

The Group had a net available cash balance of £1.79m as of 31 May 2022 compared to £1.76m as of 31 December 2021.

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Bingley-headquartered Powerhouse Energy Group, which is commercialising hydrogen production from plastic, has confirmed the appointment of Keith Riley as interim chairman.

He is currently a non-executive director on the Board and will assume responsibilities as interim non-executive chairman with immediate effect.

He is currently proprietor and chief executive officer of Vismundi Limited, a consultancy company providing services to the resources and waste management industry.

Prior to that, between 1993 and 2012 he worked for Veolia Environmental Services plc in a number of senior roles, including group managing director for technology.

A recruitment process is currently underway to appoint a permanent chairman.

Riley said: “Powerhouse has done some exceptional work in developing the production of hydrogen from material that is currently just thrown away, and I look forward to seeing this effort being implemented soon.

“The company has a strong board of directors and I look forward to continuing working with them to achieve the success the Company and its shareholders deserve.”

Paul Drennan-Durose, chief executive officer, added: “I and the Board would like to thank Keith for agreeing to take this position.

“We already work well together, and his experience will be of value to me and the company in what we believe will be an important next chapter in the company’s development.”