30th Sep 2015 10:31
LONDON (Alliance News) - Surgical Innovations Group PLC Wednesday cautioned that whilst 2015 is showing some signs of improvement, its outlook remains challenging, as it reported a narrowed pretax loss for its first half.
For the half year to end-June the company reported a pretax loss of GBP1.9 million, narrowed from a pretax loss of GBP3.2 million a year before, as revenue rose to GBP2.6 million from GBP1.8 million.
The company attributed its growth in revenue to an improvement in branded sales, which were up 81.1% in the period. Surgical Innovations has focused on cash generation and margin improvement, and as a result, its gross margin fell to 8.36% from 47.31% as it worked to reduce inventory levels.
"Over the six months, the focus has been on cash generation and margin improvement with the result that the company is now in a stable situation and has a much reduced cost base. We are now moving into the second phase of the recovery and, whilst still keeping tight control on costs we have recommenced product development," said Non-Executive Chairman Doug Liversidge in a statement.
"The outlook remains challenging, particularly in respect of profitability, and we expect that the full benefits of all the changes of the last year will not be felt until 2017," Liversidge added.
Shares in Surgical Innovations were down 10% at 1.35 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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