7th Sep 2006 07:02
Surgical Innovations Group PLC07 September 2006 Press Release 7 September 2006 Surgical Innovations Group plc ("Surgical" or "the Group") Interim Results Surgical Innovations Group plc ("Surgical") ("AIM: SUN"), the designer andmanufacturer of innovative surgical devices, today reports its Interim Resultsfor the six months ended 30 June 2006. Highlights • Turnover of £2.120m (2005: £1.432m)• Operating profit of £199,000 (2005: £117,000)• Pre-tax profit 102% higher at £182,000 (2005: £90,000)• Overall net debt reduced by £55,000 to £385,000• Earnings per share increased by 100% to 0.07p (2005: 0.035p)• Record order book• Increased USA market penetration of Minimally Invasive Surgery (MIS) products• Increased internal expenditure on MIS product development leading to planned launch of new YelloPort System in November 2006• Significant investment in manufacturing to reflect growth in MIS business Commenting on the outlook, Doug Liversidge, Non-executive Chairman, said: "Yet again, in all areas, our financial performance continues to improve. OurMedical Instrumentation and Product Development divisions have both contributedto an excellent first half performance. With increased investment and strongdivisional platforms, the Group is poised for a substantial increase inoperating profit in the second half of the year and beyond." - ends - For further information: Surgical Innovations Group plcDoug Liversidge CBE, Chairman Tel: +44 (0) 113 230 7597Graham Bowland, Finance [email protected] www.sigroupplc.com Hanson WesthouseTim Feather Tel: +44 (0) 113 246 [email protected] www.hansonwesthouse.com Media enquiries:AbchurchSarah Hollins / Neil Camp Tel: +44 (0) 113 203 1340Gareth Mead Tel: +44 (0) 20 7398 [email protected] www.abchurch-group.com Chairman's Statement I am pleased to report that, for the six months to 30 June 2006, the Group madean operating profit of £199,000 on turnover of £2.120 million. Allowing for netinterest payable of £17,000, the retained profit for the period was 102% higherat £182,000 (2005: £90,000). Our financial performance continues to improve. The growth in profitabilitycoupled with tight control over working capital has allowed us to invest£276,000 in machinery and infrastructure necessary to cope with the increaseddemand for our core Minimally Invasive Surgery (MIS) products. Despite thissubstantial investment, net debt has reduced by £55,000 in the six months toJune 2006 and we anticipate a further reduction in the second half, as cashinflows from operating activities continue to improve. The significant effort made to develop our international distribution networkhas led to acceleration in our forward order book which has been at recordlevels during the period. This order book growth has resulted in a verypleasing increase in sales of our MIS products by 86% to £1,847,000 comparedwith £993,000 last year. We are confident this trend is set to continue during the remainder of 2006.Importantly the level of business derived from our distribution partnerscontinues to increase as we reap rewards from the successful positioning ofYelloPort as a 'resposable' product. We are delighted that YelloPort in its'resposable' format has also been accepted within the United States hospitalcommunity, and plans are underway to capitalise on this further throughout 2006and beyond. Following the successful pursuit of an infringement of our EndoFlex patent, wehave further strengthened our relationship with Cardinal Health, to whom theEndoFlex licence agreement is assigned. We are now working closely withCardinal Health to enhance the international presence of the product range tothe benefit of both parties. Our product development team continues to excel. Internally, we are at anadvanced stage in the development of an enhanced version of our port accesssystem, YelloPort. We believe the innovative features of this new device willprovide us with opportunities for increased market share in the US market.Externally, we have been successful in securing a development contract with aleading medical device company, thereby confirming the standing of our productdevelopment team in the international medical device arena. Our product development expertise is further recognised by our ongoingrelationship with Rolls-Royce in the aerospace field. We intend to build onthis success as we continue to seek further opportunities in other relevantindustrial sectors. We are excited about the possibilities for the remainder of the year. In viewof our first half successes, and with the imminent launch of our new andimproved YelloPort system, the Group anticipates that next year will yieldsustained increases in our market share and resulting profitability. Doug Liversidge CBEChairman7 September 2006 Consolidated Profit and Loss Account Unaudited Unaudited Audited 6 months to 6 months to 12 months to 30.6.06 30.6.05 30.12.05 £000 £000 £000 Turnover 2,120 1,432 4,018 Cost of sales (1,202) (716) (2,295) Gross profit 918 716 1,723 Administrative expenses (719) (599) (1,322) Operating profit 199 117 401 Net interest payable (17) (27) (49) Profit on ordinary activities before taxation 182 90 352 Tax on profit on ordinary activities 0 0 50 Retained profit attributable to ordinary shareholders 182 90 402 Earnings per ordinary share 0.07p 0.035p 0.16p Consolidated Balance Sheet Unaudited Unaudited Audited As at As at As at 30.6.06 30.6.05 30.12.05 Fixed assets Tangible assets 791 724 668 Current assets Stock 908 1270 852Debtors 1,710 1,152 1,605Cash at bank 8 - 25 2,626 2,422 2,482 Creditors:amounts falling due within one year (968) (1,199) (940) Net current assets 1,658 1,223 1,542 Total assets less current liabilities 2,449 1,947 2,210 Creditors:amounts falling due after more (173) (164) (116)than one year Net assets 2,276 1,783 2,094 Capital and reserves Called up share capital 2,591 2,591 2,591 Share premium account 16,101 16,102 16,101 Capital reserve 329 329 329 Accumulated losses (16,745) (17,239) (16,927) Shareholders' funds 2,276 1,783 2,094 Consolidated Cash Flow Statement Unaudited Unaudited Audited 6 months to 6 months to 12 months to 30.6.06 30.6.05 30.12.05 Net cash inflow from operating activities 345 115 279 Returns on investments and servicing (17) (27) (49)of finance Taxation 3 0 0 Capital Expenditure (122) (38) (64) Net cash inflow before financing 209 50 166 Financing (7) (127) (186) Increase / (decrease) in cash in the period 202 (77) (20) Reconciliation of net cash flow to movement in net debt Increase / (decrease) in cash in the 202 (77) (20)period Cash outflow from finance leases and loans 73 59 118 Cash outflow from loan note redemption 0 68 68 Change in net debt resulting from cash 275 50 166flows New finance leases (220) 0 (9) Conversion of loan notes 0 0 0 Issue of shares on conversion of loan 0 42 42notes Movement in net debt in the period 55 92 199 Net debt at the beginning of the year (440) (639) (639) Net debt at the end of the period (385) (547) (440) Reconciliation of operating profit to net cash inflow from operatingactivities Operating profit 199 117 401Depreciation 152 125 216(Increase) / decrease in stocks (56) (388) 29(Increase) / decrease in debtors (108) 63 (340)Increase / (decrease) in creditors 158 198 (27) Net cash inflow from operating activities 345 115 279 Notes: 1. The consolidated financial information does not constitute full accounts within the meaning of the Companies Act 1985 and has not been reported on by the auditors or delivered to the Registrar of Companies. The figures for the year ended 31 December 2005 have been extracted from the full accounts for that year, on which the auditors gave an unqualified report and which have been filed with the Registrar of Companies. 2. The directors have not declared an interim dividend. 3. The calculation of earnings per share is based on the weighted average number of shares in issue during the period. The total number of shares in issue at 30 June 2006 was 259,151,188, at 31 December 2005 was 259,151,188 and at 30 June 2005 was 259,151,188. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Surgical Innovations