Surgical Innovations upbeat despite falls in revenues and profits

Revenues were £3.2m compared to £3.57m over the same period last year. Operating profit fell from £781,000 to £514,000, while pre-tax profits were £474,000, down from £766,000.

However, the Leeds-bsaed group said it was “very confident” of meeting its growth targets over the next two years.

Chief executive Graham Bowland said he was encouraged by the performance in the six months to June 30, with a 29 per cent growth in the sale of the company’s own branded products to £2.05m.

Mr Bowland said revenues had been hit on a like-for-like basis because of a lack of repeat orders from the group’s industrial business, as well as a smaller reduction in ‘original equipment manufacturer’ revenues - those which see Surgical Innovations manufacture products that are purchased by another company - due to the phasing of orders.

He added: “We have made considerable progress in the first half putting in place a number of initiatives and long-term plans to ensure that we have a regular flow of new products to bring to market including the Pretzel-Flex laparoscopic retractor and, more recently, the development and pre-supply agreement for a novel device for internal application of adhesives and sealants.

“The group has also continued to invest heavily in its infrastructure and people in anticipation of expected growth into 2012 and 2013.

“Current trading and customer demand across the business is encouraging, with strong demand in SI branded products and a significant improvement in OEM sales.”

Surgical Innovations invested £1.36m in manufacturing, research and development during the six months.

The group saw established new markets in Australasia and Saudi Arabia over the period and secured a new distributor in South Africa. The Surgical Innovations brand in the US also continued to grow..

Chairman Doug Liversidge added: “With the extensive work being carried out in the US, anticipated product launches, existing sales commitments from our OEM customers and distributors, and increased penetration of our products, we remain very confident about our expected growth into 2012 and 2013.”