27th Jun 2016 09:15
LONDON (Alliance News) - Surgical Innovations Group PLC shares rose on Monday after it said revenue in the first half of 2016 is expected to be 10% higher than the previous year, adding its new product ranges are still expected to be launched later this year.
Surgical shares were trading up 10% to 1.87 pence per share on Monday morning.
Speaking ahead of the company's annual general meeting later Monday in Leeds, Executive Chairman Nigel Rogers said the rise in revenue has been driven by strong demand from customers based in the US and should lead to an improved gross margin - which should exceed 25% of revenue.
Surgical designs and manufactures equipment for use in minimally invasive surgery and within the industrial markets.
Surgical is expecting its inventory to have reduced by at least GBP500,000 during the first half, in line with management expectations, and the company is expecting to deliver further strong cash flows and "significantly reduced net debt" by the end of 2016.
"Our new product ranges have been presented for submission for regulatory approval on time and to budget. These are expected to launch in the second half of the year, complementing the existing range and providing further opportunities for future growth," said Rogers.
By Joshua Warner; [email protected]; @JoshAlliance
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