News blog

Surgical Innovations

• BY: Andrew Hore |
• POSTED: 21/04/2014 |

Surgical instruments manufacturer Surgical Innovations grew revenues in 2013 but costs grew faster. 

Management had already warned that the dollar exchange rate and investment in the manufacturing operations would mean disappointing 2013 profit. Revenues improved from £7.64m to £8.55m, even though OEM work declined, while the profit declined from £1.23m to £796,000. The amortisation charge increased from £700,000 to £906,000, although the capitalised development costs were flat at £1.85m. Net debt was £3.49m at the end of 2013.

The 2014 profit forecast has been more than halved since the beginning of the year to £900,000. Sales of branded products should continue to grow. An OEM project with Advanced Medical Solutions for the development of a laparoscopic device to deploy glue in hernia operations should be completed and the product launched later this year.

At 4.13p a share, Surgical Innovations is valued at £16.7m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFApril2014_55.pdf