Surgical Innovations maintains 'positive' long term outlook despite disruption caused by pandemic

Surgical Innovations has published its audited results for the year ended December 31 2019 and an update on the effects of Covid-19 pandemic.

The company is a designer, manufacturer and distributor of medical technology for minimally invasive surgery,

Revenues in the second half of the year were up by approximately 10 per cent compared with the first half, and gross margins, adjusted pre-tax profits and cash conversion were within target range.

The company's revenues last year were £10.73m, compared with £10.97m the year before.

Commenting on the impact of the Covid-19 pandemic, the company said: "The board anticipate significant short-term reductions in revenues in the current year as a result of the Covid-19 pandemic, as elective surgery in the UK and several other territories has been, or is expected to be, suspended.

"The group has diverse geographical dispersion of markets, and has been assured of support from a number of key customers to maintain activity during this downturn.

The statement added: "Management have taken decisive action to protect the welfare of employees, whilst continuing to meet the needs of our customers in the UK and overseas.

"Production activity has been condensed to match visible demand, and appropriate measures taken to reduce operating costs and manage immediate cash flows.

"We will continue to take all steps possible in these challenging circumstances, and ensure that all support mechanisms available to our company from outside agencies are accessed, in order to preserve value and capability, and ameliorate the impact on the business, its workforce and our customers and partners."

"Our bankers have moved extremely quickly in providing short-term relief from capital repayments and covenant compliance, and stand willing to support our immediate liquidity. In addition, we have received expressions of support from selected institutional shareholders."

"Accordingly, the directors have concluded that it continues to be appropriate to prepare the annual report and accounts on a going concern basis, whilst acknowledging the material uncertainty that now exists and has been explained in this announcement and the annual report and accounts."

Chairman of SI, Nigel Rogers, said: "Our product ranges are becoming increasingly recognised as a key part of a sustainable approach to surgery, and this offers significant medium term growth potential. Our business has net cash and is operationally sound. We have strong partnerships with the NHS, our major distributors, OEM customers and key vendors, based on mutual co-operation and shared success.

"Accordingly, the board remain confident that, following an inevitable period of serious disruption requiring careful navigation, there continues to be strong recovery and growth drivers within our market, indicating that the medium to long term outlook is positive."