SI issues profit warning

KEYHOLE surgery specialist Surgical Innovations said it expects full year profit and revenue to be “significantly” below market expectations.

In a trading update, the Leeds-based specialist in the design and manufacture of creative solutions for minimally invasive surgery (MIS), said this was due to continued reductions in OEM (original equipment manufacture) revenues and slower than anticipated revenues from its US dealer network.

It also said the board had made a strategic decision to reduce inventories within the customer supply chain.

“Furthermore, in light of current trading the board has concluded that the group should focus on growth of the SI brand, cash conversion and those OEM products that add value to the SI brand,” the company said.

“Consequently, the directors have performed a review of all balance sheet OEM assets resulting in an exceptional non-cash impairment charge of £2.2m.”

The group will post its interim results for the six months ended June 30, 2014, next week.