Leeds-based Surgical Innovations Group sees jump in revenue despite ‘challenging’ year

The company, which manufactures surgical and medical instruments, said it had been affected by industrial action in the NHS, which impacted the volume of elective surgeries. It added that it did not anticipate that this would affect sales in the first quarter of 2024.

The company said it had also been affected by supply chain issues, but that these were now resolved, and not expected to impact performance in this quarter.

David Marsh, CEO of Surgical Innovations Group, said: "Despite a challenging 2023, the Company finished the year with record sales and entered 2024 with an encouraging order book.

“The recent actions taken to improve operational efficiencies, together with continued increasing sales momentum, give the Board confidence that we have put the business onto a sustainable growth trajectory for 2024 and beyond."

The group recently implemented an operating efficiency programme, which includes the re-introduction of a five day working week. The company previously trialled a four day week for staff with no loss of pay.

It said that operational improvements will continue to be implemented in the new financial year and are expected to “enhance future profitability”.

Surgical Innovations Group said that it had seen a sales boost in the second half of the year, reporting sales 13 per cent higher than the first half of the year.

The group said these sales had been driven by the “resonance of the sustainability messaging for both the NHS and private healthcare providers”, and growing global acceptance of the need to adopt more sustainable solutions in healthcare.

The group added that it expects to report a positive adjusted EBITDA of £0.2m, in-line with current expectations.

The closing net cash balances of the group stood at approximately £0.36m at 31 December 2023, up from £0.38m on 30 June 2023.

It also reported available gross cash resources at 31 December 2023 of £2.21m, down from £2.14m on 30 June 2023. This included an undrawn invoice discounting facility of £1.0m.