REG - Surgical Innovations - Half-year Report
19/09/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230919:nRSS8338Ma&default-theme=true
RNS Number : 8338M Surgical Innovations Group PLC 19 September 2023
Surgical Innovations Group plc
("Surgical Innovations", the "Group" or the "Company")
Half-year Report
Interim results for the six months ended 30 June 2023
Surgical Innovations Group plc (AIM: SUN), the designer, manufacturer and
distributor of innovative medical technology for minimally invasive surgery,
reports its unaudited financial results for the six-month period ended 30 June
2023 ("2023 H1") and provides an update on current trading and the outlook for
the Group.
Commercial and operational highlights:
· Strong sales in key markets, UK, Japan and Europe driving overall
sales growth
· New strategy in key new geographical markets gaining traction after
slower than anticipated start
· Improvement plan being implemented mid Q2 to drive future
efficiencies and improve margins throughout operations
· Overhaul of supply chain process and structure to drive down costs
· Transition to MDR remains on track and UKCA mark achieved
· Higher levels of inventory maintained to support service levels to
customers
· Positive orderbook for Q3, including a positive OEM forecast for H2
Financial highlights:
· Revenues increased 4.4% on prior year to £5.65m (2022 H1: £5.41m)
· Commercial gross margins at 40.5% within target range but decreased
compared to 2022 due to short-term operational inefficiencies (2022 H1: 45.5%;
2022 FY: 42.6%)
· Adjusted EBITDA(1) profit of £0.01m (2022 H1: £0.29m)
· Small adjusted operating loss(1) of £0.28m (2022 H1: £0.01m profit)
· Adjusted EPS amounted to a loss(1) of 0.037p per share (2022 H1:
0.004p)
· Net cash(2) at end of period of £0.38m (31 Dec 2022: £0.99m)
· Gross cash headroom at the end of period of £2.41m (as at 31 Dec
2022: £3.20m), including £1.0m undrawn invoice discounting facility
1 Adjusted EBITDA, adjusted operating (loss)/ profit and
adjusted EPS are stated before deducting non-recurring exceptional costs of
£0.01m (2022 H1: £0.03) and share based payment costs of £0.02m (2022 H1
£0.02m).
2 Net cash equals cash less bank debt
Current Trading and Outlook
· Sales in key markets have continued the strong growth momentum from
H1 and, in addition, the backlog of OEM orders has been addressed and there is
an encouraging positive orderbook for H2
· Group revenues have continued to grow in H2 in line with the Board's
expectations, with key markets and OEM in particular performing strongly
· The Group continues to trade profitably at the adjusted EBITDA level,
notwithstanding some operational challenges
· Planned destocking for H2 has commenced and is expected to return
working capital towards normal levels
· Evaluations in UK continue to gain pace and it is anticipated the
measures to address the significant backlog of patients waiting for treatment
will provide further opportunity for the UK team to drive sales through the
sustainability message
· Initial growth in new markets was slower than anticipated but new
strategies and closer support has seen new momentum and traction starting to
be seen in these markets
· Operational review initiated in Q2 to identify supply chain
efficiencies and productivity gains
· Resultant improvements are already being implemented to process and
structure, although nominal in the current year, these and others to follow
are expected to help drive the future profitability of the Group from 2024
onwards
Chairman of SI, Jonathan Glenn, said:
"Revenues in the period to 30 June 2023 have continued to grow and strengthen,
with key markets showing positive growth which we expect to continue for the
remainder of the year. New geographical territories have been slower than
anticipated but are now gaining traction. Our OEM business is back on track
after a challenging H1 with the backlog of orders addressed in the period
since the half-year end and the supply chain delays resolved for these
activities. Overall, the revenue prospects for the Group are encouraging.
"Despite recently reported operational challenges with manufacturing
productivity and supply chain disruptions, we are confident the measures being
implemented will help overcome these. We have engaged an industry specialist
to lead this project which is well underway, and we expect to see significant
benefits flowing though into the P&L during the first half of the next
financial year."
Surgical Innovations Group plc www sigroupplc com (http://www.sigroupplc.com/)
David Marsh, CEO Tel: 0113 230 7597
Charmaine Day, CFO
Singer Capital Markets (Nominated Adviser & Broker) Tel: 020 7496 3000
Aubrey Powell / Oliver Platts
Walbrook PR (Financial PR & Investor Relations) Tel: 020 7933 8780 or si@walbrookpr.com
Paul McManus / Lianne Applegarth Mob: 07980 541 893 / 07584 391 303
About Surgical Innovations Group plc
Strategy
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. We have a number of long-term
relationships with key partner including the design, development and
manufacture of the FIX8 device for AMS and more recently for a new
collaboration with a Robotic company, CMR Surgical ('CMR') to design and
develop and access device for their unique instrumentation.
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.
Operations
The Group currently employs approximately 100 people across one site in the
UK. Elemental Healthcare was acquired by the Group on 1 August 2017 and
provides direct sales representation in the UK home market and a range of
third- party products for UK distribution. Elemental was originally based in
Berkshire and was successfully relocated in 2021, with all operations now
located at the Leeds site.
Further information
Further details of the Group's businesses are available on websites:
www.sigroupplc.com (http://www.sigroupplc.com/)
www.surginno.com (http://www.surginno.com/) , (http://www.surginno.com/) and
www.elementalhealthcare.co.uk (http://www.elementalhealthcare.co.uk/)
Investors and others can register to receive regular updates by email at
si@walbrookpr.com
Surgical Innovations Group plc Chairman's Statement
For the six-month period ended 30 June 2023
Market and Financial Overview
The Group recorded strong revenue growth in 2022 and we have seen this
continue, trading in the first half of the year increased 4.4% to £5.65m on
the comparable period last year (2022 H1: £5.41m). Sales continue to
strengthen in the second half of the year and remain on track to meet
management's expectations.
The UK business continues to be strong which is driven by the sustainability
messaging, having a positive impact on activity. SI-branded product sales were
£0.92m (2022 H1: £0.68m) and UK distribution sales were £2.11m (2022 H1:
£2.01m), together up 12.7%. This will continue to grow as the NHS pushes its
focus sustainability and the implementation of its 'Net Zero' commitment and
implements measures to address the increasing backlog of patients on waiting
lists.
In Europe, the increased investment in sales and marketing is starting to gain
traction, achieving underlying sales growth of 18.2% which delivered revenue
of £0.69m (2022 H1: £0.59m). Despite being hindered by missed opportunities
in component delays with the new Optical trocar, this is expected to gain
traction with new business wins in the second half.
Revenues from the US are progressing more slowly than planned, marginally
lower than the comparable period for SI-branded products as the first half
decreased to £0.48m (2022 H1: £0.59m). Progress with YelloPort Elite was
slower than anticipated, but increased focus, training and sales support has
seen momentum gained through the conversion of a number of smaller accounts in
H1.
The APAC region continued to generate strong revenue growth to £0.54m, an
11.8% increase (2022 H1: £0.48m). The majority of the growth was from our
Japanese distributor as they continue to gain market share, despite having
delays with product registration with the 5mm Elite launch. The launch is now
expected in Q4, and this presents a significant future opportunity. In
addition, the initial orders for India were sent out in the first half of the
year and we are encouraged by the initial interest from early evaluations.
OEM revenues have endured the majority of challenges with supply chain delays,
with reported revenues of £0.68m (2022 H1: £0.92m). Notwithstanding this,
the order book remains strong for the remainder of the year and the
manufacturing disruption is starting to ease for these product lines.
Commercial or underlying margins remained just within target range at 40.5%
(2022 H1: 45.3%, 2022 FY: 42.6 %). At the end of 2022 a review was undertaken
to analyse the overhead absorption rate, as operating expenses had continued
to increase with inflationary pressures, the overhead rate was uplifted, in
addition the pressures from material suppliers continue. A series of planned
price increases has been implemented across the period however, some of these
will be phased in over time due to the fixed term nature of contractual
agreements.
The reported gross margin of just under 33.0% (2022 H1: 34.6%, 2022 FY: 34.6%)
includes the net cost of manufacturing, reflecting the operational challenges
the business continues to experience. Manufacturing productivity and supply
chain disruptions will impact profitability in the second half of the year, as
reported in the recent trading update. A complete operational review of both
manufacturing operations and supply chain is currently being undertaken,
utilising an industry specialist. While measures are already being introduced
to improve efficiencies and productivity, we expect the majority of the
benefit to flow through to the P&L in the next financial year.
Other operating expenses increased to £2.17m (2022 H1: £1.93), driven by
additional investment in Sales and Marketing to enhance revenue and continued
investment in regulatory costs due the change in certification to Medical
Device Regulation (MDR). In addition, the inflationary pressure in employee
remuneration has continued to impact profitability. Excluding the effects of
non-recurring items and share based payments, operating expenses increased by
£0.26m to £2.14m (2022 H1: 1.88m). The Group is trading at an adjusted
EBITDA profit for the period of £0.01m (2022 H1: £0.29m). The full effect of
these additional costs will impact the second half of the year, but management
expects the Group will continue to be profitable at the adjusted EBITDA level,
as a result of the operational review initiatives starting to be implemented.
Adjusted operating loss before tax for the period (before non-recurring items
and share based payment charges) was £0.28m (2022 H1: £0.01m). The reported
net loss before taxation amounted to £0.37m against a net loss before
taxation of £0.11m in the first half last year.
The Group reported a tax credit in the period of £nil (2022 H1: £0.09m)
which related to an enhanced research and development ("R&D") claim for
2021. The Group received a tax credit of £0.22m in August 2023, relating to
its claim for 2022. In terms of deferred tax, the Group continues to hold
substantial corporation tax losses on which management takes a cautious view,
and consequently the Group does not recognise a corresponding deferred tax
asset.
Adjusted net earnings per share amounted to a loss of 0.037p (2022 H1:
£0.004p). The net total comprehensive income for the period amounted to a
loss of £0.37m (2022 H1: loss of £0.01m).
For the first half of 2023, cash used in operations was £0.07m (FY 2022:
£0.23m generated, 2022 H1: £0.22m generated). After continued investment
into R&D of £0.12m (FY 2022: £0.42m, 2022 H1: £0.17m), capital
expenditure of £0.18m (FY 2022: £0.66m, 2022 H1: £0.19m) and the
refinancing of the existing bank loan and lease liabilities, the Company had
available cash balances, including the unused invoice discounting facility of
£1.0m, totalling £2.41m (31 Dec 2022: £3.20m). The covenant test (EBITDA to
debt service) for the period ending 30 June 2023 was waived by the lender,
they remain fully supportive with approval obtained to waive the next two debt
service covenant tests dated 30 September 2023 and 31 December 2023.
Market outlook
The UK continues to demonstrate strong growth underpinned by the
sustainability messaging, highlighted by the growth in SI-branded products,
and has opened opportunities in both the NHS and private sectors where the
drive to 'Net Zero' is gaining momentum. Whilst industrial action by clinical
staff has impacted both the volume of surgery and pace of evaluations, the UK
business has proved to be resilient and continues to show growth into Q3. The
UK sales team is at full strength and has benefited from a new enhanced
training programme, which will also be rolled out to support all of our
international partners over the coming months.
Sustainability messaging initiatives continue to drive sales in many key
markets and the ongoing investment in sales support, marketing, training and
development of the financial & environmental calculator have proved to be
powerful tools in driving growth. APAC has continued to demonstrate growth and
the delayed launch of Elite 5mm and Optical, now expected in late Q4, provides
further opportunity before the year-end. Progress in Europe has quickened,
with sales in H1 above pre-Covid levels for the first time, with
sustainability a key driver and continuing to provide opportunities in H2.
Revised targeting and incentive plans for the US sales team have already seen
an increase in the number of active evaluations with the potential to drive
sales from Q4 and beyond. Long-term partner, Adler Instruments, continues to
have a strong business opportunities, however outside of the Southeast the
consortium of distributors has proven to be disappointing. The Company
continues to review the most effective routes to market for its scissor sales.
Investment in new product development has continued and a number of projects
remain close to fruition. The YelloPort Elite family was enhanced with the
launch of the 5mm Optical and, whilst some registration delays have slowed the
launch in key markets, it is expected these registrations will be completed to
allow a Q4 launch in the majority of key markets feedback from important
markets has identified the opportunity for a further line extension in the
form of a shielded cutting trocar specifically in Gynaecology. Under the new
MDR approved quality management system we have been able to accelerate the
development of this device and anticipate a launch in late Q4. Some supply
chain delays have slowed progress on the Logi Dissect and Grasp instruments
for which launch is now planned in the earlier part of 2024. Investment in new
product development continues to build on the sustainability message.
Underlying revenues in the OEM segment continued throughout H1 to be
suppressed, not by demand, but due to supply chain constraints. Alternate
suppliers of some key components to address delays have taken substantially
longer to come online. These challenges slowed sales in the first half of the
year, but a significant improvement has been seen since the end of the first
half. Collaborations with CMR have moved to a new phase, and take sales out of
the OEM segment, leveraging the relationship with CMR to open opportunity for
SI's global partners to introduce YelloPort Elite for both robotic and
conventional laparoscopic cases. This has substantially sped up the number and
volume of evaluations in two new markets, India and Germany.
Operational and Regulatory activities
The reduction in the Supply chain disruptions has not been as fast as
anticipated, leading to a delay to some sales orders into the second half as a
result. This has also led to higher levels of inventory being held, though
this is now reducing and is expected to return to more normalised volumes over
the coming months, returning cash into the business.
The regulatory pathway continues to be on track for the EU Medical Device
Regulation (MDR), although the delay in implementing the transition to MDR has
seen the focus of the notified body move to other, more current priorities.
The Company's Quality Management System, technical files and microbiology data
have been made compliant with MDR, audited by BSI and fully approved. Progress
on the product technical files continues with 2 out of 3 approved for MDR, and
the final file has clinical review in progress. UKCA mark has been achieved
and a further Medical Device Single Audit Program (MDSAP) audit successfully
completed.
Current trading and outlook
Group revenues have continued to grow in H2 in line with the Board's
expectations, with key markets and OEM in particular performing strongly.
Manufacturing challenges continue to be addressed, to manage the impact of
increased supply chain lead times and the increasing cost base. An operational
plan to improve productivity and margins continues to be implemented with
the help of an industry operational expert.
The momentum in sales has continued into H2 and the order book remains
positive, leaving management confident of the H2 revenue forecast. A robust
operational plan will begin to drive efficiencies and margins, the majority of
the impact of which will be seen from 2024 onwards.
Jonathan Glenn
Chairman
19 September 2023
Unaudited consolidated income statement for the six months ended 30 June 2023
Unaudited Unaudited Audited
six months six months Year ended
ended 30 June ended 30 June 31 December
2023 2022 2022
Notes £'000 £'000 £'000
Revenue 3 5,650 5,413 11,340
Cost of sales (3,786) (3,540) (7,418)
Gross profit 2 1,864 1,873 3,922
Other operating expenses (2,170) (1,933) (3,881)
Other income - - -
Adjusted EBITDA profit * 95 287 695
Amortisation of intangible assets (140) (129) (232)
Impairment of intangible assets - - -
Depreciation of tangible assets (231) (164) (355)
Exceptional items (8) (32) (32)
Share based payments (22) (22) (35)
Operating (loss)/profit (306) (60) 41
Finance costs 4 (68) (51) (98)
Finance income - - -
Loss before taxation (374) (111) (57)
Taxation credit/(charge) 5 - 97 321
(Loss)/profit and total comprehensive income (374) (14) 264
Earnings per share
Basic 6 (0.040p) (0.002p) (0.028p)
Diluted 6 (0.040p) (0.002p) (0.028p)
* Adjusted EBITDA is earnings before interest, depreciation, amortisation
(including impairment) and exceptional items.
Unaudited consolidated statement of changes in equity for the six months ended 30 June 2023
Notes Share capital Share premium Capital Merger Retained Total
reserve reserve earnings
£'000 £'000 £'000 £'000 £'000 £'000
Balance as at 1 January 2023 9,328 6,587 329 1,250 (6,531) 10,963
Employee share-based payment charge - - - - 22 22
Total - Transaction with owners 9,328 6,587 329 1,250 (6,509) 10,985
Loss and total comprehensive income for the period - - - - (374) (374)
Unaudited balance as at 30 June 2023 9,328 6,587 329 1,250 (6,883) 10,611
Unaudited consolidated balance sheet as at 30 June 2023
Unaudited Unaudited Audited
30 June 30 June 31 December
2023 2022 2022
Notes £'000 £'000 £'000
Assets
Non-current assets
Property, plant and equipment 925 471 858
Right of Use Assets 903 947 918
Intangible assets 6,387 6,255 6,403
8,215 7,673 8,179
Current assets
Inventories 3,566 3,040 3,162
Trade and other receivables 9 2,137 2,054 2,055
Cash at bank and in hand 1,412 3,040 2,199
7,115 8,134 7,416
Total assets 15,330 15,807 15,595
Equity and liabilities
Equity attributable to equity holders of the parent company
Share capital 9,328 9,328 9,328
Share premium account 6,587 6,587 6,587
Capital reserve 329 329 329
Merger reserve 1,250 1,250 1,250
Retained earnings (6,883) (6,822) (6,531)
Total equity 10,611 10,662 10,963
Non-current liabilities
Dilapidation provision 165 165 165
Lease liability 670 790 722
Borrowings 8 679 1,031 825
1,514 1,986 1,712
Current liabilities
Trade and other payables 9 2,188 1,945 1,886
Accruals 411 653 420
Lease liability 254 209 232
Borrowings 8 352 352 382
3,205 3,159 2,920
Total liabilities 4,719 5,145 4,632
Total equity and liabilities 15,330 15,807 15,595
Unaudited consolidated cash flow statement for the six months ended 30 June
2023
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 June 30 June 31 December
Notes 2023 2022 2022
£'000 £'000 £'000
Cash flows from operating activities
Loss after tax for the year (374) (14) 264
Adjustments for:
Taxation - (97) (321)
Finance Income - - -
Finance Costs 4 68 51 98
Depreciation of property, plant and equipment 115 73 167
Amortisation and impairment of intangible assets 140 129 232
Depreciation of right of use assets 116 91 188
Share-based payment charge 22 22 35
Foreign Exchange (loss)/gain 32 (87) (82)
Increase in inventories (404) (75) (197)
Increase in current receivables (82) (360) (360)
Increase in trade and other payables 292 487 204
Cash (used in)/ generated from operations (73) 220 228
Taxation received 5 - 97 321
Interest received - - -
Interest paid (39) (25) (63)
Net cash (used in)/generated from operating activities (112) 292 486
Payments to acquire property, plant and equipment (181) (189) (659)
Acquisition of intangible assets (124) (168) (419)
Net cash used in investment activities (305) (357) (1,078)
Repayment of bank loan 8 - (375) (375)
Repayment of CBILS 8 (176) (118) (294)
Repayment of lease liabilities 7 (162) (133) (266)
Net cash used in financing activities (338) (626) (935)
Net decrease in cash and cash equivalents (755) (691) (1,527)
Cash and cash equivalents at beginning of period 2,199 3,644 3,644
Effective exchange rate fluctuations on cash held (32) 87 82
Net cash and cash equivalents at end of period 1,412 3,040 2,199
Notes to the Interim Financial Information
1. Basis of preparation of interim financial information
The interim financial information was approved by the Board of Directors on 18
September 2023. The financial information set out in the interim report is
unaudited.
The interim financial information has been prepared in accordance with the AIM
Rules for Companies and on a basis consistent with the accounting policies and
methods of computation as published by the Group in its annual report for the
year ended 31 December 2022, which is available on the Group's website.
The Group has chosen not to adopt IAS 34 Interim Financial Statements in
preparing these interim financial statements and therefore the interim
financial information is not in full compliance with International Financial
Reporting Standards as adopted for use in the European Union.
The financial information set out in this interim report does not constitute
statutory financial statements as de- fined in section 434 of the Companies
Act 2006. The figures for the year ended 31 December 2022 have been extracted
from the statutory financial statements which have been filed with the
Registrar of Companies. The auditor's report on those financial statements was
unqualified and did not contain a statement under sections 498(2) and 498(3)
of the Companies Act 2006.
Going concern and funding
The Directors have considered the available cash resources of the Group, with
the additional secured funding in September 2023 and the current internal
anticipated forecasts the Directors have a reasonable expectation that the
Group have adequate resources. The Group is expected to continue to generate
cash from operations over the next 12 months as inventory levels reduce and
operational efficiencies improve, therefore providing ample support and
continue in operational existence for the foreseeable future, considered to be
at least 12 months for the date of approval from the financial statements.
2. Disaggregation of gross margin
The Group has disaggregated margins in the following table: Six months Six months 12 months
ending 30 ending 30 June ending 31
June 2023 (unaudited) 2022 Dec 2022
(unaudited) (audited)
£'000 £'000 £'000
Revenue 5,650 5,413 11,340
Cost of Sales (3,360) (2,959) (6,525)
Underlying Gross Margin 2,290 2,454 4,815
Underlying Gross Margin % 40.5% 45.3% 42.6%
Net Cost of Manufacturing (426) (581) (893)
Contribution Margin 1,864 1,873 3,922
Contribution Margin % 33.0% 34.6% 34.6%
Underlying gross margin (excluding net costs of manufacturing) is an adjusted
KPI measure. Nets costs of Manufacturing are overheads that have not been
effectively absorbed due to reduced productivity.
Adjusted KPIs are used by the Board to understand underlying performance and
exclude items which distort comparability. The method of adjustments are
consistently applied but are not defined in International Financial Reporting
Standards (IFRS) and, therefore, are considered to be non-GAAP (Generally
Accepted Accounting Principles) measures. Accordingly, the relevant IFRS
measures are also presented where appropriate.
3. Disaggregation of revenue
The Group has disaggregated revenues in the following table: SI Brand Distribution OEM Total
Six months ended 30 June 2023 (unaudited) £'000 £'000 £'000 £'000
United Kingdom 920 2,105 614 3,639
Europe 694 - - 694
US 479 - 69 548
APAC 541 - - 541
Rest of World 228 - - 228
2,862 2,105 683 5,650
SI Brand Distribution OEM Total
Six months ended 30 June 2022 (unaudited) £'000 £'000 £'000 £'000
United Kingdom 679 2,006 676 3,361
Europe 587 - - 587
US 596 - 240 836
APAC 484 - - 484
Rest of World 145 - - 145
2,491 2,006 916 5,413
SI Brand Distribution OEM Total
Year ended 31 December 2022 (audited) £'000 £'000 £'000 £'000
United Kingdom 1,683 4,044 1,315 7,042
Europe 1,377 - - 1,377
US 1,240 - 424 1,664
APAC 926 - - 926
Rest of World 331 - - 331
5,557 4,044 1,739 11,340
Revenues are allocated geographically on the basis of where revenues were
received from and not from the ultimate final destination of use.
4. Finance Costs
Finance costs: Six month ended 30 Six month ended 30 June 12 months
June 2023 2022 ended 31 Dec
2022
£'000 £'000 £'000
On bank borrowings 40 24 43
On right-of-use assets lease liabilities 28 27 55
68 51 98
5. Tax
Current taxation
During 2023 the Group submitted an enhanced Research and development claim in
respect of 2022 amounting to £0.22m, which was paid in August of the current
year.
Deferred taxation
Overall, the Group continues to hold substantial tax losses on which it holds
a cautious view and consequently the Group has chosen not to recognise those
losses fully.
6. Earnings per share
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 June 30 June 31 December
2023 2022 2022
Earnings per share
Basic (0.040p) (0.002p) (0.028p)
Diluted (0.040p) (0.002p) (0.028p)
Adjusted (0.037p) 0.004p (0.036p)
Basic earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders by the weighted average number of shares in issue.
Diluted earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders by the diluted weighted average number of shares in
issue. Adjusted Earnings per share is calculated by dividing the adjusted
earnings attributable to ordinary shareholders (profit before non-recurring
costs, amortisation, impairment costs and share based payments) by the
weighted average number of shares in issue.
The anti-dilutive effect of unexercised share options has not been taken into
account and therefore the diluted
earnings per share is equal to the basic earnings per share.
The Group has one category of dilutive potential ordinary shares being share
options issued to Directors and
employees. The impact of dilutive potential ordinary shares on the calculation
of weighted average number of shares is set out below.
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 June 30 June 31 December
2023 2022 2022
'000s '000s '000s
Basic earnings per share 932,816 932,816 932,816
Dilutive effect of unexercised share options 1,240 5,049 3,129
Diluted earnings per share 934,056 937,865 935,945
7. Leases
Impact on the statement of financial position
30 June 2023 30 June 2022 31 December 2022
Assets Liabilities Assets Liabilities Assets Liabilities
£'000 £'000 £'000 £'000 £'000 £'000
Right of use assets and lease liabilities 903 924 947 999 918 954
Of which are:
Current lease liabilities 254 209 232
Non-Current lease liabilities 670 790 722
Impact on Equity (21) (52) (36)
Total impact on statement of financial position 903 903 947 947 918 918
During 2022, the Group financed a new CNC Lathe through HP
finance totalling £158,000, the cost of the right-of-use asset has been
reflected into the period ending 30 June 2022.
8. Net borrowings
At amortised cost Six month ended Six month ended months ended 31
30 June 2023 30 June 2022 Dec 2022
£'000 £'000 £'000
Cash & cash equivalents 1,412 3,040 2,199
Current bank borrowings (352) (352) (382)
Non-current bank borrowings (679) (1,031) (825)
Adjusted Net Cash 381 1,657 992
Current lease liabilities (254) (209) (232)
Non-current lease liabilities (670) (790) (722)
Net Cash (543) 658 38
In March 2022, the Group refinanced the existing debt with Yorkshire bank
consisting of the following:
· Extension to the CBILS of £1.5m repayable in May 2026, Interest rate
of 2.94% repayable monthly over the Bank of England (BoE) base rate. Monthly
instalments are £0.029m.
· Covenants attached to the CBILS comprise of EBITDA to debt servicing
costs minimum 1.25x on a 12-month rolling basis.
· The covenant test for the period ending 30 June 2023 was waived by
the lender, with approval obtained to waive the next two debt service covenant
tests dated 30 September 2023 and 31 December 2023.
· Additional headroom is provided by an Invoice Discounting facility of
£1.0m, at 2.5% margin on receivables drawn with a maximum administration fee
of £0.018m if not utilised. As at the date of this announcement, this
facility remains undrawn.
9. Financial Instruments
The financial assets of the Group are categorised as follows:
At amortised cost Six months ended Six months 12 months
30 June
ended
2023
30 June ended
31 Dec 2022
2022
£'000 £'000 £'000
Trade receivables 1,566 1,681 1,762
Cash and cash equivalents 1,412 3,040 2,199
2,978 4,721 3,961
The financial liabilities of the Group are categorised as follows:
At amortised cost Six months ended Six months ended 12 months
30 June 2023
30 June 2022
ended
31 Dec 2022
£'000 £'000 £'000
Trade payables 1,756 1,427 1,420
Other payables 268 280 294
Current lease liabilities 254 209 232
Non-current lease liabilities * 670 790 722
Current bank borrowings 352 352 382
Non-current bank borrowings * 679 1,031 825
3,979 4,089 3,875
*Amortised costs are considered to the equivalent amount of fair value
Trade and other payables Six months Six months 12 months
ended ended
30 June
30 June ended
2023
31 Dec 2022
2022
£'000 £'000 £'000
Trade payables 1,756 1,427 1,420
Other tax and social security 164 238 172
Corporation tax - - -
Other payables 268 280 294
2,188 1,945 1,886
10. Interim Report
This interim report is available at www.sigroupplc.com/annual-interim-reports.
(http://www.sigroupplc.com/annual-interim-reports.)
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 (mailto:rns@lseg.com)
or visit
www.rns.com (http://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 (https://www.lseg.com/privacy-and-cookie-policy)
. END IR BIGDCRUBDGXIRecent news on Surgical Innovations
See all newsREG - Surgical Innovations - Holding(s) in Company
AnnouncementREG - Surgical Innovations - Holding(s) in Company
AnnouncementREG - Surgical Innovations - Final Results
AnnouncementREG - Surgical Innovations - New exclusive UK distribution agreements secured
AnnouncementREG - Surgical Innovations - Directorate Change & Notice of Results
Announcement