Surgical Innovations Group plc (AIM: SUN), the designer, manufacturer and distributor of innovative medical technology for minimally invasive surgery, reports financial results for the six month period ended 30 June 2018. The Group has delivered growth in revenues and profit in the first half of the year despite some significant headwinds in the market and regulatory environment, primarily due to the acquisition of Elemental Healthcare in August 2017.
The Group has continued to broaden its product base by investing in product innovation, and by entering into both new and extended distribution agreements. Cash flow from trading has been enhanced by significant reductions in inventory, enabling the repayment of net debt by the end of the period.
- Revenues up 52.4% to £5.28m (2017H1: £3.47m), primarily due to the acquisition of Elemental Healthcare
- Adjusted EBITDA* up 13.3% to £0.94m (2017H1: £0.83m)
- Adjusted operating profit* up 35.5% to £0.42m (2017H1: £0.31m)
- Reported PBT (after acquisition related amortisation costs and share based payment charges) of £0.09m
- Adjusted earnings per share of 0.05p (2017H1: 0.06p)
- Net cash at end of period of £0.02m (31 Dec 2017: net debt £0.73m)
* Adjusted EBITDA and Adjusted operating profit are stated before deducting amortisation of intangible acquisition costs of £0.22m (2017H1: £nil) and share based payment costs of £0.06m (2017H1: £nil).
Executive Chairman of SI, Nigel Rogers, said: “The Group has emerged from a challenging period with improved financial results, a strong balance sheet, and net indebtedness incurred in the Elemental acquisition last year fully eliminated. We have implemented measures to strengthen important distribution relationships, and support the development of our international business through an expanded core range of branded products and a competitive pricing model. This is supplemented by close partnerships with our key OEM customers, who are well positioned to generate further growth.
“Our UK distribution business continues to fulfil a vital role in the direct sale of branded products in our home market, and is also building a valuable portfolio of specialised products that offer substantial advantages to surgeons, healthcare professionals and patients. The ability to obtain detailed first-hand knowledge of the reception of our product ranges from a large cohort of surgeons, who offer suggestions for improvements to existing products and ideas for innovation, is proving to be a valuable asset.
“With these initiatives in process, we continue to look forward to the second half of the year and beyond with confidence.”