Healthy prospects for medtech firm despite supply chain problems
MedTech business, Surgical Innovations Group, has highlighted a robust orderbook and an optimistic picture for long-term growth, ahead of its annual general meeting due to take place this morning. (27 June)
The Leeds-based business says strong UK demand in 2022 has continued into 2023, despite industrial action in the NHS and initiatives to reduce the backlog of surgery causing the pace of evaluations to slow.
In its AGM statement the company, which manufactures medical technology for minimally invasive surgery, says its key international markets, Japan and Europe, have continued to perform above the comparative period in 2022.
However India and USA have been slower to gain momentum, in part due to local sales training delays in India and supply chain issues for key products in the USA.
The statement adds: “The company is confident further investment in sales and marketing support will help drive activity in these key markets during H2 2023.
“The orderbook for Surgical Innovations’ OEM business is strong, although supply chain challenges have impacted sales during H1.
“Whilst the labour shortages seen last year have receded, helped by measures management implemented during 2022, there remain persistent ongoing supply chain challenges that have impacted manufacturing productivity and are resulting in increased lead times for some key product lines.
“The company has continued to mitigate this by maintaining inventory at higher levels than normal and anticipate that this will begin to reduce from H2 2023.”
