Final Results
March 28 2003 - 1:01AM
UK Regulatory
RNS Number:3189J
Surgical Innovations Group PLC
28 March 2003
Surgical Innovations Group plc
Preliminary results for the year ended 31 December 2002
28 March 2003
CHAIRMAN'S STATEMENT
I am pleased to report further progress in your Group's overall performance in
the year 2002.
Group turnover increased from #1,847k in 2001 to #2,224k in 2002, an increase of
20%, which has resulted in a pre-tax profit of #60k compared with #36k in the
previous year.
Our royalty income from sales of EndoFlex by Snowden Pencer in the USA and
around the world has been maintained, with a contribution of #298k for the year.
This has been reinvested in our continuing innovative product development
programme which is the cornerstone of the Group's future growth. Overall, we
have incurred research and development expenditure of #256k, representing 12% of
turnover, which I believe is indicative of our commitment in this vital area.
I am particularly pleased with the continuing progress in the development of
Uniglide, our unique next-generation single-use port access system. In my
interim statement, I indicated that the launch of the product would be early in
2003. We now anticipate a product launch during this second quarter of the
year. The development of this product represents the largest single investment
in instrumentation the Group has ever made and our preliminary soundings
indicate exciting worldwide sales opportunities.
Sales of our single-use scissors continue to increase following the successful
introduction of the Logic pistol grip handle. The development of alternative
scissors for use with Aesculap's range of pistol-grip handles is now resulting
in worldwide sales through both Aesculap in Germany and its American subsidiary.
We are looking forward to working with this important partner and other
internationally renowned medical device companies to expand the markets for our
innovative products.
Later this year, our main focus, having completed the development of our new
port system, will be on re-engineering our range of Autologous Blood Transfusion
(ABT) products. We remain totally convinced that using the patient's own blood,
in an intra- and post-operative environment will have significant benefits in
avoiding the effects of cross infection from contaminated blood. The cost of
donated blood continues to increase, as a result of the increasing requirement
for more stringent testing and controls, coupled with an anticipated decline in
donors. Therefore, the ABT alternative is recognised both by governments around
the world and hospital administrators as an important component in the provision
of blood for patients.
We have already taken the important decision to create a new manufacturing
facility for ABT disposables. This should allow us to reduce costs, improve
margins, and develop and enhance the manufacturing processes, thereby enabling
us to promote the products to a broader international market.
2002 was an important year for your Group as high calibre people were recruited
or promoted to strengthen the key managerial functions of the Group. As
planned, this investment in people is allowing the Executive Directors to devote
more time to the strategic development of the Group, business opportunities and
investor related activities.
Whilst making every possible effort to increase the pace of our internal
development within the constraints of our own financial resources, we continue
to look for opportunities for acquisitions and key strategic relationships.
These are difficult times in the small public company market. We are determined
to increase shareholder value and will continue to pursue genuine corporate
opportunities, without prejudicing our plans for organic growth.
Once again, on your behalf, I wish to thank my Board colleagues and all the
Group's employees for their continued dedication and commitment and I look
forward to reporting further progress at the Annual General Meeting and through
our newly constructed web-site, www.sigroup.plc.uk.
Doug Liversidge CBE
Chairman
27 March 2003
Consolidated Profit and Loss Account
For the year ended 31 December 2002
Notes 2002 2001
#'000 #'000
Turnover (including Royalties) 2,224 1,847
Cost of sales (1,048) (846)
Gross profit 1,176 1,001
Administrative expenses (1,098) (900)
Abortive acquisition costs - (72)
Operating profit 78 29
Interest receivable 1 13
Interest payable (19) (6)
Profit on ordinary activities for the year before taxation 60 36
Tax on profit on ordinary activities 18 48
Retained profit for the year 78 84
Earnings per ordinary share 2 0.03p 0.03p
Consolidated Balance Sheet
As at 31 December 2002
31 December 2002 31 December 2001
#'000 #'000 #'000 #'000
Fixed assets
Tangible assets 660 282
Current assets
Stocks 562 549
Debtors 1,073 825
Cash at bank 13 170
1,648 1,544
Creditors : amounts falling due within one year (775) (574)
Net current assets 873 970
Total assets less current liabilities 1,533 1,252
Creditors : amounts falling due after
more than one year (285) (111)
Net assets 1,248 1,141
Capital and reserves
Called up share capital 2,555 2,540
Share premium account 16,044 16,030
Capital reserve 329 329
Accumulated losses (17,680) (17,758)
(1,307) (1,399)
Equity shareholders' funds 1,248 1,141
Consolidated Cash Flow Statement
For the year ended 31 December 2002
Notes 2002 2001
#'000 #'000 #'000 #'000
Net cash (outflow) from operating activities 3 (141) (121)
Returns on investments and servicing of
finance (18) 8
Taxation 11 -
Capital expenditure (207) (88)
Net cash (outflow) before financing (355) (201)
Financing
Issue of shares 3 -
Receipts from borrowings 9 -
Capital repayments under bank loans (1) -
Capital repayment under finances (22) -
Net cash (outflow) from financing (11) -
(Decrease) in cash 4 (366) (201)
Notes
For the year ended 31 December 2002
1. Accounting Policies
The principal accounting policies which remain unchanged from the previous year, except for the adoption of FRS 19
which has had no material effect on the financial statements, are as follows:
A) Basis of accounting
The financial statements have been prepared under the historical cost basis of accounting and in
accordance with applicable Accounting Standards in the United Kingdom.
B) Basis of consolidation
The Group financial statement consolidate those of the Company and of its subsidiary undertakings drawn
up to 31 December 2002. The results of subsidiaries accounted for under the acquisition accounting
method are included in the consolidated profit and loss from the date of their acquisition. The results
of subsidiaries, accounted for under the merger accounting method, are included in the consolidated
profit and loss account as if they had always been part of the Group. Intra-Group sales and results are
eliminated on consolidation and all sales and results relate to external transactions only.
2. Earnings per Ordinary Share
The earnings per Ordinary Share has been calculated by dividing the profit attributable to ordinary shareholders for
the year ended 31 December 2002 of #78,000 (2001 : #84,000) by the weighted average number of Ordinary Shares in
issue during the year of 254,995,289 (2001 : 254,028,882) and amounted to 0.03p per share (2001 : 0.03p per
share).
3. Net cash outflow from operating activities
2002 2001
#'000 #'000
Operating profit 78 29
Depreciation of tangible fixed assets 88 78
(Increase) in stocks (13) (121)
(Increase) in debtors (241) (176)
(Decrease) / increase in creditors (53) 69
(141) (121)
4. Reconciliation of net cash flow to movement in net debt/funds
2002 2001
#'000 #'000
(Decrease) in cash in the year (366) (201)
Cash outflow from finance leases and loans 14 -
Change in net funds resulting from cash flows (352) (201)
Conversion of loan notes 1 -
New finance leases (259) -
Movement in net debt (610) (201)
Net funds at beginning of year 51 252
Net debt at end of year (559) 51
5. Analysis of changes in net funds
At Cash flow Non-cash At
1 January 31 December
2002 2002
#'000 #'000 #'000 #'000
Cash at bank and in hand 170 (157) - 13
Bank overdrafts (8) (209) - (217)
(366)
Bank loan - (8) - (8)
Finance leases - 22 (259) (237)
14
Convertible loan notes (111) - 1 (110)
51 (352) (258) (559)
6. The Annual General Meeting of the Company will be held at the Village Hotel and Leisure Club, 186 Otley Road,
Headingley Leeds LS16 5PR at 12.30 on Wednesday, 30 April 2003
7. The foregoing statements do not constitute the Group's statutory accounts. The Group's statutory accounts, on which
the Company's auditors, Grant Thornton, have given an unqualified opinion in accordance with Section 235 of the
Companies Act 1985, are to be delivered to the Registrar of Companies and will be posted to shareholders shortly.
Additional copies of the Annual Report and of this announcement will be available at the Company's registered office:
Clayton Park, Clayton Wood Rise, Leeds, LS16 6RF
Enquiries:
Surgical Innovations Group
Graham Bowland, Finance Director Tel: +44 (0) 113 230 7597
Philip Johnson Tel: +44 (0) 161 214 6540
Brown, Shipley & Co. Limited
This information is provided by RNS
The company news service from the London Stock Exchange
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