REG - Surgical Innovations - Year-end 2023 Trading Update

Surgical InnovationsAnnouncement

29/01/2024 07:00

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RNS Number : 1318B  Surgical Innovations Group PLC  29 January 2024

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 EBITDA(1) 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 cash(2) 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

(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. 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.

 

(2)Net cash equals cash less bank debt and finance lease leases, excluding
IFRS16 lease obligations.

 

 

 

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 / Alice Woodings                                                 Mob: 07980 541 893 / 07407 804 654

 

 

 

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

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

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