AN expected worldwide increase in demand for obesity-reduction operations is set to improve results for Surgical Innovations.

The Leeds group said it had increased capacity after investing in new facilities.

Its trading update revealed plans to benefit further from the expected increase in fat-cutting operations and cited World Health Organisation figures showing there are now 1.2bn overweight people on the planet.

It also plans to launch new products later this year.

Doug Liversidge, non-executive chairman, said: "2007 was a year in which we once again delivered improved levels of sales and pre-tax profits.

"To meet the anticipated worldwide growth in minimally invasive surgery and the increasing demand for our suite of obesity-related products, we made the strategic decision to invest in new facilities that have substantially increased our capacity.

"This relocation, our first since trading began in 1992, is complete and has tripled our floor space, consolidating all our operations into one location in Leeds.

"The move and subsequent refit has, as expected, required significant capital expenditure and we look forward to the benefits that this will provide the Group in the future.

"YelloPort Plus, our advanced laparoscopic port access system, continues to be well received by surgeons in the US.

"A series of important evaluations by major surgical procedural tray supply companies is progressing.

"This should open important routes to the procurement decision-makers in hospital groups across the country.

"As a result of this, we anticipate that sales for the year will be biased towards the second half, as occurred in 2007.

"Elsewhere we see good opportunities to establish ourselves within new and growing markets - in particular in Eastern Europe where closer integration with the EU has meant that trading conditions are becoming more favourable.

"Countries such as Bulgaria, Hungary, Poland, Romania and Slovakia are beginning to invest further in laparoscopic surgery and we are already receiving orders from those countries following successful trials. YelloPort Plus is now established in Spain following trials and evaluations, in addition we are also focusing on growth within Scandinavia and other key territories."