TIDMSUN
RNS Number : 2029Q
Surgical Innovations Group PLC
27 June 2022
Surgical Innovations Group plc
("Surgical Innovations", "SI" or the "Company")
AGM Trading Statement
Surgical Innovations Group plc (AIM: SUN), the designer,
manufacturer and distributor of innovative medical technology for
minimally invasive surgery ("MIS"), provides the following update
to shareholders ahead of its Annual General Meeting being held at
10am today.
Following the strong final quarter of 2021, trading to date in
the first half of the year has continued with the same momentum.
Revenues are showing significant growth and for the six months to
30 June 2022 are expected to be in excess of 22% above the
comparable period last year. Early indications are that this
impetus is continuing into the second half of the year and, as
such, the Board remains confident of delivering results for FY2022
in line with current expectations.
Demand in the UK market continues to be strong and is trending
above pre-pandemic levels of 2019. This is primarily due to
underlying business wins driven by the demonstrable sustainability
advantages of our Resposable(TM) product ranges. With the continued
backlog of patients on waiting lists and the NHS's fulfilment of
'Net Zero' obligations on sustainability, this range is well
positioned for further recovery and growth.
The international business is trading slightly ahead of
performance for the first half of the corresponding period in 2021.
The appointment of two international heads early in the year and
the additional investment into the marketing team will continue to
strengthen commercial initiatives in key markets and allow further
bandwidth to open new markets.
The regulatory pathway continues to be challenging as the
Company navigates through the complexities of the EU Medical Device
Regulation (MDR), however, the Company remains on track to achieve
certification in March 2023. In April, the Company received Medical
Device Single Audit Programme (MDSAP) recertification, maintaining
access to the key strategic markets of Canada, USA, Japan and
Australia for a further three years. There is a significant cost
burden associated with the evolving regulatory requirements which,
whilst challenging, represents an increasing barrier to entry and
some competitors may not be able to attain the new standards.
The labour market has become increasingly challenging, and this
is exacerbated by inflationary pressures. The Group has invested
further to retain and attract employees through various
initiatives, one of which is to join the trial for the UK pilot
programme for a four-day working week. This will be carefully
managed to ensure five-day continuity of service and support.
The shortage of skilled labour and challenges in supply chain
logistics have extended sales order lead times and impacted
manufacturing productivity. This has been mitigated to a degree by
increased inventory holdings and close cooperation with customers
and dealers. However, there remains an increase in back orders
which will continue to be addressed in the second half of the
year.
The Group had a net available cash(1) balance of GBP1.79m as at
31 May 2022 compared to GBP1.76m as at 31 December 2021. The Group
completed a refinancing exercise at the end of March 2022, as a
result of which borrowing facilities comprise a GBP1.5m Coronavirus
Business Interruption Loan Scheme (CBILS) loan repayable by May
2026, and an invoice discounting arrangement of GBP1.0m which
remains unused.
Overall, the Group remains well funded for its current needs
and, with recent improvements in trading and the recognition of
SI's differentiated Resposable product range through new contract
wins, the Board remains confident in the prospects for growth in
the remainder of the year and in the longer term.
(1) Net cash equals cash less bank debt excluding IFRS16 lease
obligations
For further information please contact:
Surgical Innovations Group plc www sigroupplc com
David Marsh, CEO Tel: 0113 230 7597
Charmaine Day, CFO
Singer Capital Markets (Nominated Adviser Tel: 020 7496 3000
& Broker)
Aubrey Powell / Rachel Hayes
Walbrook PR (Financial PR & Investor Tel: 020 7933 8780 or si@walbrookpr.com
Relations)
Paul McManus / Lianne Applegarth Mob: 07980 541 893 / 07584 391
303
About Surgical Innovations Group plc
The Group specialises in the design, manufacture, sale and
distribution of innovative, high quality medical products,
primarily for use in minimally invasive surgery. Our product and
business development is guided and supported by a key group of
nationally and internationally renowned surgeons across the
spectrum of minimally invasive surgical activity.
We design and manufacture and source our branded port access
systems, surgical instruments and retraction devices which are sold
directly in the UK home market through our subsidiary, Elemental
Healthcare, and exported widely through a global network of trusted
distribution partners. Many of our products in this field are based
on a "resposable" concept, in which the products are part reusable,
part disposable, offering a high quality and environmentally
responsible solution at a cost that is competitive against fully
disposable alternatives.
Elemental also has exclusive UK distribution for a select group
of specialist products employed in laparoscopy, bariatric and
metabolic surgery, hernia repair and breast reconstruction.
In addition, we design and develop medical devices for carefully
selected OEM partners and have also collaborated with a major UK
industrial partner to provide precision engineering solutions to
complex problems outside the medical arena.
We aim for our brands to be recognised and respected by
healthcare professionals in all major geographical markets in which
we operate and provide by development, partnership or acquisition a
broad portfolio of cost effective, procedure specific surgical
instruments and implantable devices that offer reliable solutions
to genuine clinical needs in the operating theatre environment.
Further information
Further details of the Group's businesses and products are
available on the following websites:
www.sigroupplc.com
www.surginno.com
www.elementalhealthcare.co.uk
To receive regular updates by email, please contact
si@walbrookpr.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTUVRSRUVUNUAR
(END) Dow Jones Newswires
June 27, 2022 02:00 ET (06:00 GMT)
Surgical Innovations (LSE:SUN)
Historical Stock Chart
From Jan 2025 to Feb 2025
Surgical Innovations (LSE:SUN)
Historical Stock Chart
From Feb 2024 to Feb 2025
