Leeds’ Surgical Innovations reports 19% rise in export sales after surpassing £2m mark

Leeds-based Surgical Innovations Group plc, the designer and manufacturer of medical technology for minimally invasive surgery, reported growth and a return to profit for the six months ending 30 June 2016.

During this period, the company reported a 16.9% increase in revenue to £3.04m (2015H1: £2.60m), with export sales up by 19.1% to £2.18m (2015H1: £1.83m).

The net operating profit for the period was also £0.03m (2015 full year: loss of £1.97m, after exceptional costs relating to long term debtor provisions, stock provisions, impairment of intangibles and restructuring costs of £1.29m).

The net profit and total comprehensive income for the year amounted to £0.25m (2015 full year: loss and deficit of £2.03m), resulting in net earnings per share of 0.05p (2015 full year: loss of 0.42p).

Inventories at the end of the period stood at £1.28m (December 2015: £1.92m), which indicates that production output in the second half of the year will increase further to come broadly into line with cost of sales.

Net cash flow from operating activities amounted to £1.77m (2015 full year: £1.51m). At the end of the period, the Group had available cash at bank of £0.43m, and was in full compliance with all financial covenants.

Total net indebtedness, taking account of convertible loan capital and finance leases outstanding, reduced to £0.72m (December 2015: £2.26m) and gearing reduced to 17% (December 2015: 57.6 %).

Nigel Rogers, executive Chairman, said: “The rate of revenue growth was pleasing led by strong exports, especially in the US market.

“Gross margins and profitability were driven up by productivity gains, and cash generation was sufficient to eliminate net bank borrowings by the end of the period.

“Our focus on innovation, productivity, exporting and excellence in products and service continue to deliver improving results and open new opportunities to develop the business. Accordingly we look forward with confidence.”

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