Surgical Innovations Group: Profits lift for Leeds firm despite hit from US tariffs and loss of business in Middle East
Yorkshire-based Surgical Innovations Group has seen its profits lift in the first half of the year despite being hit by US tariffs and a loss of business in the Middle East.
The Leeds-based firm posted adjusted operating profit of £0.6m for the six months ending 30 June, up from a loss of £0.43m in the same period the year prior.
It came as the firm, which manufactures and distributes technology for minimally invasive surgery, said it had been “adversely affected” by the tariffs brought in by President Donald Trump’s administration.
The company said that as a result of the tariffs, as well as the relocation of one of its distributor’s warehouses, it had seen a decline in sales from £0.5m to £0.4m in the US.
Its statement added: “Whilst sales have normalised it is not anticipated that the first half 2025 shortfall will be recovered, and tariffs are expected to continue to impact opportunities for growth in the second half of 2025.”
The firm also saw its “rest of world” sales drop from £0.81m to £0.23m, largely driven by a loss of business in the Middle East. It added that the “ongoing challenges” in Israel also “prevented the region from delivering the planned growth”.
This came alongside a small drop in total group revenue from £6.18m last year to £6.15m this year.
The results came after Surgical Innovations Group last year launched a cost reduction programme.
Speaking on the scheme, Jonathan Glenn, chairman of Surgical Innovations Group Plc, said "It is encouraging to see the tangible benefits from the improvement and cost reduction programme implemented in 2024 beginning to deliver benefits and we expect further cost efficiencies to be realised in the second half of the year, strengthening our financial position and creating a platform for increased profitability in 2026.
“While near-term challenges in the UK market persist, we believe the actions taken, including the introduction of new product ranges and the strengthening of our sales organisation, will support recovery and improve our portfolio offering in this key market.”
The firm posted UK sales of £2.74m during the period, roughly in line with sales of £2.75m the year prior.
The company said this reflected the “impact of portfolio realignment as certain third-party products were discontinued.”
Excluding the impact from these products, like-for-like sales increased by 10 per cent.
The firm said that it had new product launches planned for the fourth quarter, which would “further expand” its portfolio and “enhance” its presence in the UK market.
Mr Glenn added: “Looking ahead, we anticipate modest improvements in both revenue and margin across the remainder of FY25, with this momentum expected to continue into the first half of FY26.
"The board remains confident that the strategic actions underway will enable the Group to navigate near-term headwinds effectively, while positioning the business to deliver sustainable growth and enhanced returns over the medium to long term."
The results came as Surgical Innovations Group also announced a number of changes to its board.
The company announced the appointment of Roy Davis, Andrew Boteler and Duncan Soukup as non-executive chair, independent non-executive director and non-executive director respectively.
Jonathan Glenn and Keyvan Djamarani have stepped down from the board as non-executive chair and non-executive director, having both joined in 2023.