Surgical Innovations Group reports “significant improvement” in sales during 2022

The statement said that revenues for the year are expected to be approximately £11.3m, an increase of more than 20 per cent compared with the prior year and 6 per cent ahead of the pre-pandemic reference year. Sales for the second half of the year were approximately 10 per cent higher than the first half.

The statement added: “The group also expects to report underlying gross margin (before net manufacturing costs) that remains within the target range of 40 per cent to 45 per cent despite inflationary cost pressures, reflecting a focus on efficiency savings and by passing on price increases into revenue where necessary.

"Supply chain disruption continued to present challenges in the second half of the year and across the industry, but these were overcome by maintaining adequate buffer inventories, and consequently customer back orders were managed down to normal levels by the end of the year. Inventories remain above normalised levels to provide ongoing protection, although it is anticipated that supply chain pressures will abate and reductions in inventory will be achievable during 2023.”

“Overall, the group expects to report adjusted EBITDA (earnings before interest taxation depreciation and amortisation) of approximately £0.7m in line with market expectations, and to return to overall profitability in the second half of the year, with a modest adjusted profit before tax for the full year.”

David Marsh, the chief executive of Surgical Innovations Group, said: "We are pleased with the 2022 performance, achieving strong sales, led by the UK, and we have demonstrated that the company has effectively managed the headwinds of the pandemic.

"The company continues to win new accounts, with quality and sustainability the key catalyst for these hospital conversions. Internationally our sustainability messaging is beginning to resonate and 2023 will see the introduction of some important additions to our portfolio allowing a more complete offering for key markets.

"Our successful collaboration with OEM (original equipment manufacturer) partners, especially in robotics, is a further exciting opportunity for the business to leverage our expertise in instrument design and be part of this growing development in surgery.

"We look forward to updating shareholders in March at the time of our final results."

The group said: “The supply chain and people challenges of 2022 still remain but are under better control and it is anticipated that these obstacles will gradually recede through 2023.”