Surgical on the brink of breakthrough in region

The Yorkshire Post understands that Surgical’s products have passed clinical evaluation tests at the Leeds Trust hospital network.

As a result, more patients in Yorkshire will be treated using medical products that are produced locally. Nine Yorkshire hospitals already use Surgical’s products.

Yesterday, Leeds-based Surgical said the US represented its “largest opportunity”, as it revealed that its pre-tax profits fell last year.

Surgical said it had achieved a strong second half performance, with good growth in higher margin ‘SI’ branded products.

During 2012, the company recorded revenue of £7.64m, compared with £7.60m the year before. Pre-tax profit reduced to £1.23m, from £1.71m in 2011. The adjusted EBITDA, excluding exceptional items, was £2.89m, compared with £2.83m in 2011. The company achieved strong second half sales, with contracted orders in the second half of £5.62m, which was an increase of 85 per cent on the first half. US direct sales rose 21.9 per cent to £2.15m, and are now 28.1 per cent of total revenue.

Doug Liversidge, the company’s chairman, said: “We remain confident about the future growth prospects of the business as our existing SI branded products continue to gain international clinical recognition. The US remains our largest opportunity where we have established multiple routes to market. Continued investment in developing these routes will provide quicker and easier access to this key market for both current and future products.”

Surgical has won a £5m grant from the Government’s Regional Growth Fund to help it develop a research and development facility and clinical training centre in Leeds.

Leeds City Council is working with firms including Surgical on plans for a science park in Leeds. The possible sites for the park include Logic Leeds, a 100-acre site close to Junction 45 of the M1.

Graham Bowland, the chief executive of Surgical, said he would like every hospital in the region to use the company’s devices. Mr Bowland highlighted the fact that Surgical spends 20 per cent of its revenue on research and development (R&D), at a time when most medical companies spend around eight per cent on R&D.

In 2012, seven UK hospitals adopted Surgical’s YelloPort+, a device which allows surgeons access to the abdominal cavity. So far this year, 10 UK hospitals have adopted it. According to Surgical, the device can save the NHS around £300 each time it is used.