Trading update

RNS Number : 8419L

Surgical Innovations Group PLC

16 August 2013

 



Surgical Innovations Group plc

("SI" or the "Group" or the "Company")

Trading update

Surgical Innovations Group plc (AIM: SUN), the designer and manufacturer of creative solutions for minimally invasive surgery ('MIS'), provides the following trading update for the six months ended 30 June 2013.

SI has had a strong first six months of the financial year and continues to trade in line with market expectations for the full year. Revenues for the six months ended 30 June 2013 were 28% ahead of the same period last year at £3.88m (H1 2012: £3.02m) with an adjusted EBITDA for the period of £1.14m (H1 2012: £0.98m), a 16% improvement on the previous period. Profit before tax for the period of £567,000 (H1 2012: £181,000) has more than tripled.

Within the SI Brand business, the YelloPort+plus™ Port access system continued to gain UK market share as a cost effective solution for laparoscopic surgical procedures. Further to the update provided in the AGM Statement on 19 June 2013, two additional UK hospitals have converted to using our Resposable® products, one to the YelloPort+plus™ system and one to using Logi™Cut scissors. This takes the total number of hospitals converted this year to 25. The UK success of SI Branded products promotes adoption within our targeted export markets, with the US a primary focus for the Company where hospital cost reduction programmes are becoming an ever increasing phenomenon. Both orders and interest to date, ledby our newly appointed President of US Sales and Operations, are very encouraging as we expand our Brand exposure in the US.

The OEM business primarily focused on sales of instrumentation and retraction devices, driven by a demand from the existing OEM customer base. Revenues from Industrial applications will benefit from the recently announced development project with our long standing partner, due for completion at the end of 2013.

Hip Arthroscopy

SI are partnering with JRI, a leading UK Orthopaedic company to investigate how early stage osteoarthritis of the hip can be treated using minimally invasive techniques. The collaboration has recently been allocated a £390,000 grant from the TSB Biomedical Catalyst Fund to support the project, which will see SI further translate its access and articulation technologies into hip arthroscopy to enable and deliver new advanced therapeutic treatments.

Update on new facility

In January SI announced that it had formally signed the Regional Growth Fund ("RGF") Final Grant Offer Letter worth £5.05m. SI can now announce that the Board has formally approved the budget for the development of a new facility. The total cost of the building project will be funded through the RGF grant and the remainder by a commercial bank mortgage, with an estimated completion date of July 2015.

Three site locations, all situated on the Eastern side of Leeds, are being assessed for the 58,000sq ft facility which will incorporate a 10,000sq ft Clinical training centre. The Directors believe that a phased move to the new site will not have any impact on short term trading or profitability, but it is expected to bring significant operational efficiencies and the new building will be planned specifically to optimise SI's production capabilities. The Clinical training centre will act as a catalyst for innovation enabling international surgeons to develop best clinical practice in new areas of MIS, use and critique SI's latest medical device technologies and importantly enable SI to expand its development programme into new areas of MIS. The centre will combine classic training methods of laparoscopic work stations with cadaveric and dissection facilities and a simulated operating room. It is envisaged that SI will develop one of the premier facilities in the UK that will support the growing demand for clinical training both from home and abroad.  

The Company will announce its interim results for the six months ended 30 June 2013 on Tuesday, 10 September 2013.

Enquiries:

Surgical Innovations Group plc		Tel: [phone]
Graham Bowland, Chief Executive Officer		[e-mail]
Panmure Gordon (Nominated Advisor & Broker)		Tel: [phone]
Fred Walsh / Freddy Crossley (Corporate Finance)
Adam Pollock/ Victoria Boxall (Corporate Broking)
Walbrook PR Ltd	Tel: [phone] or [e-mail]
Paul McManus	Mob: [phone]

Notes to Editors:

About Surgical Innovations Group plc - www.sigroupplc.com

Surgical Innovations Group plc specialises in the design and manufacture of creative solutions for minimally invasive surgery (MIS) and industrial markets. 

As well as manufacturing single-use and reusable instruments for the laparoscopic market, the Group has pioneered its flagship Resposable® instrumentation combining both single use and reusable components, ensuring ongoing revenue streams and delivering the optimum procedure performance to cost ratio.

Over 100 people are employed at the Group's 32,000 square feet facility in Leeds, with in-house design, plastic injection moulding and manufacturing equipment, producing products to the highest quality standards.

The Group's patented products are sold through three main channels:

SI brand	Through an established network of distribution partners, Surgical Innovations branded products are sold in major medical markets including North America, Britain, South East Asia, Australasia and the Indian subcontinent.
OEM and IP	The Group supplies large medical device companies on an OEM basis, generating both sales and IP royalty fees.  Clients include Teleflex Medical, Olympus and CareFusion.
Industrial	SI's patented segment technology has been applied to the industrial market enabling customers to undertake inspection and maintenance of large-scale equipment, in situ with minimum disassembly and downtime.

For more information, see www.sigrouplplc.com

 

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