16th Mar 2016 09:45
LONDON (Alliance News) - Surgical Innovations Group PLC Wednesday said its loss was much narrower in 2015 than in the previous year, but said its gross margin was volatile in the period and warned there are still several challenges facing the business.
The invasive surgery technology company said its pretax loss amounted to GBP2.1 million in 2015 compared to the GBP9.8 million loss last year as it booked substantially less exceptional items this year.
Exceptional items only totalled GBP1.3 million in 2015 compared to the GBP8.4 million booked last year, whilst amortisation and depreciation charges also experienced small falls.
Earnings before interest, tax, depreciation, amortisation and those exceptional items came in at GBP242,000, swinging from a GBP52,000 loss in 2014.
Revenue rose to GBP5.5 million in 2015 from GBP4.0 million, but its margin was squeezed and pushed down gross profit to only GBP764,000 from the GBP1.2 million profit made last year.
The majority of pressure on the company's margins was experienced in the first half of the year when its gross margin was only 8.4%, but this improved significantly in the second half to 19.2%. To put that into perspective, the average gross margin in 2014 was 14%.
"In a year of transition for the company, there have been many positive changes. Relationships with our distribution partners have been strengthened and revenues have returned to growth on solid foundations. Manufacturing and operating costs have been reduced, and working capital has been brought into line with the current needs of what is now a cash generative business," said Executive Chairman Nigel Rogers.
"With these changes delivered and a solid platform secured for future growth, we now have a board and management structure intended to drive the future direction and development of the business," he added. "There has been further improvement in performance in the current financial year to date."
Although upbeat regarding 2016, the company said there are still several challenges in building on the improvements made in 2015, including in "sustaining revenue growth to consistently generate positive returns".
Surgical Innovation shares were up 7.1% to 1.58 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Surgical Innovations