Surgical Innovations Group
Plc
("Surgical Innovations", the "Company" or the "Group")
Year-end 2023 Trading
Update
Record sales and operational
efficiency programme on track
Surgical Innovations Group Plc (AIM: SUN), the designer, manufacturer and distributor
of innovative technology
for minimally
invasive surgery, provides an update
on trading for the year ended 31 December 2023, with sales
marginally head of market expectations.
Unaudited Financials
Revenues for the year are expected
to be approximately £12.0m, an increase of 6% compared with the
prior year (2022: £11.3m). Group revenues continued to grow in H2
in line with the Board's expectations, with key markets and OEM
sales in particular performing strongly. Sales for the second half
of the year were approximately 13% higher than the first half. The
Group expects to report a positive adjusted EBITDA1 of
£0.2m, in-line with expectations. Operational improvements continue
to be implemented in the new financial year and are expected to
enhance future profitability.
The closing net cash2
balances of the Group stood at approximately £0.36m at 31 December
2023 (30 June 2023: £0.38m), with available gross cash resources
at 31 December 2023 of £2.21m (30 June
2023: £2.41m) including an undrawn invoice discounting facility
of £1.0m (30 June 2023:
£1.0m).
UK sales remained strong in H2 2023,
driven by the resonance of the sustainability messaging for both
the NHS and Private Healthcare providers. Growing global acceptance
of the need to adopt more sustainable solutions in healthcare is
also driving growth in key markets in Europe, APAC and ROW. Despite
supply chain challenges in H2 2023, the OEM business produced
strong sales and carried a positive order book into
2024.
The recently implemented operating
efficiency programme, which includes the re-introduction of a 5-day
working week, is on track to deliver further improvements to the
gross margin in 2024.
Current trading and outlook
While continued industrial action in
the NHS has impacted the volume of elective surgeries and slowed
some of the progress with evaluations, it is not anticipated to
affect Q1 sales. Across the Company's distribution network,
expected sales remain on track to deliver management forecasts.
Some of the supply chain issues seen last year have impacted OEM
sales, but these are now resolved and are not expected to have a
material bearing on Q1 performance.
David Marsh, CEO of Surgical Innovations Group Plc,
said: "Despite a challenging 2023, the Company finished the year
with record sales and entered 2024 with an encouraging order book.
The recent actions taken to improve operational efficiencies,
together with continued increasing sales momentum, give the Board
confidence that we have put the business onto a sustainable growth
trajectory for 2024 and beyond."
Notes
1Adjusted EBITDA is earnings
before interest, tax, depreciation and amortization adjusted by
deducting non-recurring exceptional costs, impairment of
intangible acquisition costs and share based payment costs.
Adjusted loss before tax is the loss before tax
adjusted by
non-recurring exceptional items, impairment of intangible
acquisition costs and share based payment
costs.
2Net cash equals cash less
bank debt and finance lease leases, excluding IFRS16 lease
obligations.
For
further information please contact:
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Surgical Innovations Group Plc
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www sigroupplc com
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David Marsh, CEO
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Tel: 0113
230 7597
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Charmaine Day, CFO
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Singer Capital Markets (Nominated
Adviser & Broker)
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Tel: 020
7496 3000
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Aubrey Powell / Oliver
Platts
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Walbrook PR (Financial PR &
Investor Relations)
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Tel: 020
7933 8780 or si@walbrookpr.com
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Paul McManus / Alice
Woodings
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Mob: 07980
541 893 / 07407 804 654
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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, 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
