Surgical's operation is paying off

KEYHOLE surgery instruments maker Surgical Innovations cheered shareholders with the news that it is back on track following a tough couple of years.

The Leeds-based group’s shares rose 7 per cent on the news that 2016 revenues are “significantly ahead” of last year.

Executive chairman Nigel Rogers said: “2015 was a year of transition. In the first half of the year we were still dealing with the challenges. In the second half of the year we were positioning the company for growth.

“We saw good revenue growth as the business rebounded from the low point in 2014. The business is now profitable at the EBITDA level.”

2015 revenues rose 36 per cent to £5.5m and the group reduced its pre-tax loss from £9.8m to £2.1m. Adjusted EBITDA for the full year was £240,000, an improvement on the £50,000 loss in 2014.

“The worst is behind us,” said Mr Rogers.

“The low point was late 2014/early 2015. A lot of superfluous cost was taken out.” Surgical lost its way when it failed to sort out a bottleneck in its US distribution chain. The company became too reliant on other firms launching its products but Mr Rogers, a respected turnaround specialist, is now setting up new US partnerships.

He has also persuaded finance director Melanie Ross, who had been going to leave, to stay on in the role. Ms Ross was brought in by former interim managing director Chris Rea, the entrepreneur behind Rotherham-based mechanical seals maker AESSEAL.

Surgical specialises in making ‘resposable’ instruments – which contain long-lasting reusable parts and cheap throwaway parts that are only used once.