Surgical Innovations returns to profitability in H2
Surgery technology group Surgical Innovations said on Monday that it had seen a "significant improvement" in sales and a return to profitability in the second half of the trading year.
Surgical Innovations said revenues for the year ended 31 December were expected to be approximately £11.3m, an increase of more than 20% year-on-year and 6% ahead of pre-pandemic 2019. H2 sales were said to be roughly 10% higher than the first half.
Overall, SI anticipates reporting adjusted underlying earnings of approximately £700,000, in line with market expectations, and to return to overall profitability in the second half, with a modest adjusted pre-tax profit before for the full year.
The AIM-listed group pointed out that the UK had "a strong finish to the year", with new hospital conversions underpinned by the company's sustainability strategy, leading to annual sales for the UK tracking 30% above 2021 and 20% above pre-pandemic levels. OEM sales grew 45% on 2021 and were now close to pre-Covid levels.
"The strong UK sales growth highlighted in Q4 has continued into the current year, with new business wins contributing to year-on-year growth. While the company is mindful that strike action and other winter pressures upon the NHS have the potential to slow down the positive effect of these opportunities in the early part of 2023, the underlying UK business remains strong," said Surgical Innovations.
"The supply chain and people challenges of 2022 still remain but are under better control and it is anticipated that these obstacles will gradually recede through 2023."
As of 1115 GMT, Surgical Innovations shares were trading 8.75% higher at 1.74p.
Reporting by Iain Gilbert at Sharecast.com