Surgical Innovations warns on profits as Brexit uncertainty takes its toll
Surgical solutions group Surgical Innovations warned on profits on Friday as it said the lack of momentum seen in the first quarter has continued into the second.
The company said orders from its UK and EU operations had been lower than expected, with ongoing Brexit uncertainty disrupting order patterns from its distributors and end users, making it more complicated to forecast its outlook for the remainder of the year.
In the UK, the AIM-listed firm saw overall volumes of activity become "a continuing concern" after demand was hindered as a result of lower levels of activity in the NHS.
On the other hand, revenues from its export markets outside the EU remain unaffected, principally in the States where it reported strong growth throughout the quarter.
The group also noted that regulatory approvals had become "increasingly challenging", placing an increased burden on its operational and technical resources.
As a result, Surgical Innovations cautioned that revenue growth in its second half was "unlikely" to fully counter the weakness seen in the first, with adjusted pre-tax profits now expected to be lower year-on-year.
At 0930 BST, Surgical Innovations shares were down 33.06% to 2.74p.