REG - Surgical Innovations - Trading Update and Notice of Results

Surgical InnovationsAnnouncement

06/09/2023 07:00

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RNS Number : 4846L  Surgical Innovations Group PLC  06 September 2023

Surgical Innovations Group plc

("Surgical Innovations", the "Company" or the "Group")

 

Trading Update and
Notice of Results

 

Surgical Innovations Group plc (AIM: SUN), the designer, manufacturer and
distributor of innovative medical technology for minimally invasive surgery
("MIS"), provides the following trading update.

 

The forward-looking orderbook remains positive, providing confidence that
revenues for the year to 31 December 2023 ("FY23") will meet the Board's
expectations. The UK business continues to perform above FY22 driven by
sustainability messaging having a positive impact on activity. Key
international markets, Japan and Europe, remain strong and, whilst slower than
anticipated, new geographic territories are beginning to gain traction.

 

Manufacturing productivity and supply chain disruptions referred to in the
June update have persisted, and are now considered likely to continue to
impact profitability in the second half of the year. 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, they will take time to
benefit the overall margin. A series of planned price increases has been
implemented however, some of these will be phased in over time due to the
fixed term nature of contractual agreements. The Board now expects the Group
to report a modest profit at the adjusted EBITDA(1) level for FY23, with
better momentum in FY24.

 

Higher levels of inventory were maintained in the first half of the year to
support service levels to customers, and planned destocking in the second half
will have a positive impact on cash resources. The Group's lender, Yorkshire
Bank / Virgin Money, remains supportive and agreed a waiver for the debt
service covenant test for the second quarter of FY23. As at 31 August 2023,
the Group had £2.30m in available headroom including a £1.0m undrawn invoice
discounting facility, which gives it access to sufficient capital to support
its expected revenue growth in the second half of the year and beyond (30 June
2023: £2.41m, including the undrawn facility).

 

The Company announced in May 2023 that Jon Glenn would succeed Nigel Rogers as
Chairman at the time of the announcement of interim results in September.  As
the transition of responsibility as Chair has been conducted smoothly, the
Board now considers it appropriate for Jon to take on the role of Chair with
immediate effect.  Nigel has reiterated his commitment to remain on the Board
as an independent non-executive director until a suitable candidate to succeed
him has been appointed.

 

Surgical Innovations will release its interim results for the six months ended
30 June 2023, on Tuesday 19 September 2023.

 

Investor briefing

David Marsh, Chief Executive Officer, and Charmaine Day, Chief Financial
Officer, will provide a live presentation relating to the interim results via
the Investor Meet Company platform on 19 September 2023 at 4:30 p.m. BST.

 

The presentation is open to all existing and potential shareholders. Questions
can be submitted pre-event via your Investor Meet Company dashboard up until
9:00 a.m. the day before the meeting or at any time during the live
presentation.

 

Investors can sign up to Investor Meet Company for free and add to
meet Surgical Innovations Group plc via:

 

https://www.investormeetcompany.com/surgical-innovations-group-plc/register-investor
(https://www.investormeetcompany.com/surgical-innovations-group-plc/register-investor)

 

Investors who already follow Surgical Innovations Group plc on the Investor
Meet Company platform will automatically be invited.

 

(1)     Adjusted 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.

 

This announcement contains inside information

for the purposes of UK Market Abuse Regulation.

 
For further information please contact:

 

 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 (mailto: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 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,the Company's
Reposable portfolio enables healthcare providers to reduce both plastic waste
and their CO2 footprint as they strive for net zero.

 

Further information

Further details of the Group's businesses and products are available on the
following websites:

 

www.sigroupplc.com (http://www.sigroupplc.com)

www.surginno.com (http://www.surginno.com/)

www.elementalhealthcare.co.uk (http://www.elementalhealthcare.co.uk)

 

To receive regular updates by email, please contact si@walbrookpr.com
(mailto:si@walbrookpr.com)

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