Keyhole surgery specialist is back in the black

Keyhole surgery instruments maker'‹ '‹Surgical Innovations has returned to profit and is set to benefit from the collapse in sterling since the EU referendum.
By The Newsroom
Published 31st Aug 2016, 16:17 BST
Updated 31st Aug 2016, 17:21 BST
Group FD and managing director Melanie Ross said the group has enjoyed strong growth in the US.Group FD and managing director Melanie Ross said the group has enjoyed strong growth in the US.
Group FD and managing director Melanie Ross said the group has enjoyed strong growth in the US.

Analysts said the Leeds-based group's performance marks a substantial turnaround since 2014 when the company lost £​10m​.

A new management team has overseen growth in all divisions and ​e​xport sales, notably to the US, were strong and should​ see further gains from the pound's fall.

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​Executive chairman Nigel Rogers said: "We've known the business is performing very well, but this is the first time we've been able to publish financial results showing it. Things are looking very positive now."

Group FD and managing director Melanie Ross said the group has enjoyed strong growth in the US.

"US sales have grown by 35 per cent. That's down to growth at the incumbent distributor, some gains from currency and at the beginning of the year we appointed a second distributor in the US," she said.

More than 70 per cent of Surgical's products are exported and overseas sales have grown by 19 per cent.

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"The implications of Brexit make our products much more competitive," said Mr Rogers.

"It creates much higher revenues in sterling terms."

The group said ​EBITDA rose to £500,000 in the six months to June 30, up from £240,000 for the whole of 2015.

Analyst Eric Burns at WH Ireland said: "The move into pre-tax profit in the full year coupled with a substantial improvement in the balance sheet has de-risked the investment proposition.

"Further improvements in revenue coupled with margin gains and a relatively stable admin costs line will feed a disproportionate improvement in the pre-tax line over our forecast horizon."

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Mr Rogers said the firm had delivered a robust trading performance in the first half of the year and has started the second half with confidence.

​Surgical said the ​first phase products for ​its​ new ​​YelloPort Elite range are currently awaiting CE approval and are expected to​ ​launch in the UK in the third quarter of the year, and across European markets early in 2017.

Y​elloPort Elite enables surgeons to operate through one port in keyhole surgery. Surgical said clinical feedback has​ ​been positive with surgeons keen to try the product range in surgery.

"​We are really excited about ​YelloPort Elite​, It's been a long time in development to ensure it's right for the market. We are really proud of it," said Ms ​Ross.

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