News blog
Surgical Innovations
- BY: Andrew Hore |
- POSTED: 29/04/2008 |
Surgical Innovations reported a small rise in profit for 2007.
The surgical instruments manufacturer and supplier’s turnover was 7% ahead at £4.77m. This was a good performance considering the loss of low margin business with other manufacturers. That meant that gross margins improved from 41.9% to 50.2% because more own brand keyhole surgery and minimally invasive surgical instruments were sold.
This improvement in gross margins was offset by much higher operating expenses – they rose from £1.13m to £1.71m. Surgical Innovations raised £4m last year to invest in marketing and product development. The rise in operating spending reflects that increased marketing which has yet to fully show through in the revenues.
Product development spending of £407,000 was capitalised - £397,000 net of amortisation. Net cash is £2.54m, against a market value of £9.81m at a market price of 2.625p a share.
Pre-tax profits edged up from £696,000 to £731,000, helped by the interest on the cash.
Last year was always going to be a period of consolidation with the increased marketing and a moved to much larger premises. This year should see the benefits of the efforts put in during 2007. Management would like to grow faster through acquisitions or by adding new products to its range.
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