Surgical Innovations brings interim profits into the green
Medical technology firm Surgical Innovations (SI) announced on Wednesday that it had seen a welcome gain in revenue over its first half of trading thanks to a strong performance by its manufacturing (OEM) division and increased domestic sales.
The Leeds based firm reported a 14.1% rise in revenue to £3.47m as SI's OEM department itself posted a 60% increase in revenue.
Surgical Innovations swung from a £60,000 loss at the same time in 2016 to a pre-tax profit of £300,000 at the halfway point.
Sales of SI branded products inched forward to £2.48m in the six months leading to 30 June compared to the £2.47 it realised a year earlier as a result of a bump in the UK and EU markets.
The Aim-quoted company increased its operating margin from 7.7% to 8.8% and bolstered its savings 46% so it held £1.16m of cash at the end of the half.
Net operating profits came in at £300,000 at period end, a marked improvement on the £30,000 the group made a year earlier.
SI also advised that its newly acquired business Elemental Healthcare was progressing "very well" with its integration process.
"I am pleased to report that SI has delivered financial results at the upper end of our range of expectations in the first half of the year, with strong growth in revenues and profits, and an increase in net cash balances. Trading in the second half of the year to date has been satisfactory, and continues to meet the board's expectations," said executive chairman Nigel Rogers.
Basic earnings per share were up from 0.05p to 0.06p.
As of 1205 BST, shares had dipped 10.05% to 4.11p.