1st Apr 2020 07:29
(Alliance News) - Surgical Innovations Group PLC on Tuesday said it swung to a loss in 2019, burdened by expenses and a sizeable impairment.
The company, which which makes and distributes products for minimally invasive surgery, posted a GP2.6 million pretax loss for 2019, swinging from a GBP515,000 profit the year before.
Revenue was only slightly lower at GBP10.7 million versus GBP11.0 million in 2018. However, a GP2.3 million impairment of intangible assets - Surgical Innovations having posted only a GBP2,000 impairment the previous year - sent the company into loss.
On top of this, operating expenses were 58% higher at GBP6.8 million compared to GBP4.3 million the prior year.
Chair Nigel Roberts 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, [original equipment manufacturer] 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."
Surgical Innovations noted that the Covid-19 pandemic is likely to result in "significant short-term reductions in revenues in the current year" given that elective surgeries in oth the UK and other territories is or is likely to be suspended.
The firm has obtained "short-term relief from capital repayments and covenant compliance" from its bankers, who are "willing to support our immediate liquidity". "Selected institutional shareholders" have also expressed support.
Shares in Surgical Innovations closed up 0.8% at 1.31 pence in London on Tuesday.
By Anna Farley; [email protected]
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