TIDMSUN
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 GBP2.30m in available headroom including a GBP1.0m
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: GBP2.41m,
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
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
David Marsh, CEO Tel: 0113 230 7597
Charmaine Day, CFO
Singer Capital Markets (Nominated Adviser Tel: 020 7496 3000
& Broker)
Aubrey Powell / Oliver Platts
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 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
www.surginno.com
www.elementalhealthcare.co.uk
To receive regular updates by email, please contact
si@walbrookpr.com
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END
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