Medtech business says it is poised for greater profitability in 2025

Surgical Innovations, a designer, manufacturer and distributor of technology for minimally invasive surgery, says its products enjoyed strong growth across all key markets in its interim results for the six months ended 30 June 2024.

The Leeds-based company notes its revenues increased 9.3% on the prior year to £6.2m (2023 H1: £5.7m), while it recorded a pre-tax loss of £487,000 (2023 H1: £374,000 loss).

The business also reported an adjusted EBITDA profit of £0.2m (2023 H1: £0.1m) and gross cash headroom at the end of the period of £1.2m (as of 31 Dec 2023: £2.2m).

Jonathan Glenn, chairman, said: “I am pleased with the progress Surgical Innovations has made over the first half of this financial year.

“We have continued to grow revenues and have delivered an adjusted EBITDA profit in the period.

“The operational plan implemented is expected to deliver cost benefits in the second half of the year and positions the business for increased profitability in 2025.

“The strength of Surgical Innovations-branded products remains robust, though challenges in the UK market are likely to persist over the near term. However, additional new product introductions and the realignment of the sales structure are anticipated to improve the UK business.”

Surgical Innovations adds that a new UK distribution expanded contract has been signed with Apsen Surgical along with a new contract signed with Cipher Surgical, both of which provide continuing and new revenue streams.

It warns challenges persist in the UK market with changes in the NHS Supply Chain inventory management and industrial action impacting purchasing patterns.

However, the business notes new product introductions and operational restructuring have enabled the group to offset these headwinds.

The company says operational restructuring through half one and into half two will improve efficiencies and drive margin growth towards the year-end and into 2025.

And it expects inventory reduction to improve working capital towards the end of 2024.