13th Jan 2020 10:31
(Alliance News) - Surgical Innovations Group PLC said Monday it saw sharp growth in sales in the second half of 2019 compared to the first six months of the year and, as a result, annual profit is expected to be in line market forecasts.
Shares in the surgery device manufacturer were up 11% in London on Monday at 2.28 pence each.
The company's sales were up about 10% in the second half, giving a total revenue for 2019 of GBP10.7 million. In September, in its interim results, Surgical Innovations cut its revenue expectations, guiding for "relatively modest growth in the second half of 2019 compared to the first half".
On Monday, Surgical Innovations said: "Gross margin was within target range and the resulting adjusted profit before tax is anticipated to be in line with market expectations."
The medical technology firm posted a GBP326,000 loss for the six months ended June 30 as revenue declined 3.8% to GBP5.1 million. However, in all of 2018, Surgical Innovations posted a GBP515,000 pretax profit as its revenue increased 25% year on year to GBP11.0 million.
The company continued: "In the final quarter of 2019, the group concluded agreements to extend important contractual relationships including the exclusive manufacture of the Fix-8 device for Advanced Medical Solutions PLC until June 2024, and the UK exclusive distribution of the Dexter robot for Distalmotion SA until October 2022."
Surgical Innovations said its continues to be cash generative and, as a result, has repaid GBP1.0 million of its term loan in advance of its due date from available cash resources. At the end of 2019, the closing net cash balance of Surgical Innovations stood at about GBP500,000.
By Paul McGowan; [email protected]
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