TIDMSUN
RNS Number : 9452D
Surgical Innovations Group PLC
27 June 2023
Surgical Innovations Group plc
("Surgical Innovations", the "Company" or the "Group")
AGM Statement
Surgical Innovations Group plc (AIM: SUN), the designer,
manufacturer and distributor of innovative medical technology for
minimally invasive surgery ("MIS"), provides the following update
to shareholders ahead of its Annual General Meeting being held at
11am today.
In short, the forward-looking orderbook is extremely positive,
providing confidence in management forecasts for 2023 and the Board
reiterates its optimism for the longer-term growth trajectory for
the Group. Notwithstanding some ongoing headwinds and variability
in performance across different geographical markets, the Board's
conviction is a function of multiple drivers supporting demand for
the Group's innovative, differentiated product offering.
The strong UK demand in 2022 has continued into 2023, despite
industrial action in the NHS and initiatives to reduce the backlog
of surgery causing the pace of evaluations to slow. The strength of
the sustainability messaging continues to drive new account wins
and the investment in the "environmental and financial calculator"
enables the hospitals to quantify key metrics as the NHS drives to
meet Net Zero commitments. Key international markets, Japan and
Europe, have continued to perform above the comparative period in
2022 however India and USA have been slower to gain momentum, in
part due to local sales training delays in India and some supply
chain issues for key product in the USA. The Company is confident
that further investment in sales and marketing support will help
drive activity in these key markets during H2 2023. The orderbook
for Surgical Innovations' OEM business is strong although supply
chain challenges have impacted sales during H1.
The Company continues to make excellent progress towards Medical
Device Regulation ("MDR") transition with two of the three product
groups certificated and the third group going through its final
stage. Whilst it had been anticipated to have completed the MDR
transition by the close of H1 the recent change in deadline,
granted by the EU in February, has reduced the pressure on the
competent authorities allowing focus to be shifted to other
pressing issues. The Compliance team continues to successfully
manage a programme of regulatory audits throughout the year, the
latest being Medical Device Single Audit Programme ("MDSAP")
recertification which was received in May. The Company also
successfully navigated the transition to UK Conformity Assessed
status, enabling business continuation in the key UK market. There
is a significant cost burden associated with the evolving
regulatory requirements which, whilst challenging, represents an
increasing barrier to entry and some competitors may not be able to
attain the new standards.
Whilst the labour shortages seen last year have receded, helped
by the measures management implemented during 2022, there remain
persistent ongoing supply chain challenges that have impacted
manufacturing productivity and are resulting in increased lead
times for some key product lines. The Company has continued to
mitigate this by maintaining inventory at higher levels than normal
and anticipate that this will begin to reduce from H2 2023.
The Group had a net available cash(1) balance of GBP0.60m as at
31 May 2023 compared to GBP0.99m as at 31 December 2022, reflecting
the higher inventory holding and continued investment. The Group
had GBP2.62m in available cash resources at the end of May,
including a GBP1.0m undrawn invoice discounting facility, which
gives it access to sufficient capital for its expected growth in
the second half of the year and beyond.
The Company anticipates release of interims towards the end of
September.
Notes
(1) Net cash equals cash less bank debt only
For further information please contact:
Surgical Innovations Group plc www sigroupplc com
David Marsh, CEO Tel: 0113 230 7597
Charmaine Day, CFO
Singer Capital Markets (Nominated Tel: 020 7496 3000
Adviser & Broker)
Aubrey Powell / Oliver Platts
Walbrook PR (Financial PR & Investor Tel: 020 7933 8780 or si@walbrookpr.com
Relations)
Paul McManus / Lianne Applegarth Mob: 07980 541 893 / 07584 391 303
About Surgical Innovations Group plc Strategy
The Group specialises in the design, manufacture, sale and
distribution of innovative, high quality medical products,
primarily for use in minimally invasive surgery. Our product and
business development is guided and supported by a key group of
nationally and internationally renowned surgeons across the
spectrum of minimally invasive surgical activity.
We design and manufacture and source our branded port access
systems, surgical instruments and retraction devices which are sold
directly in the UK home market through our subsidiary, Elemental
Healthcare, and exported widely through a global network of trusted
distribution partners. Many of our products in this field are based
on a "resposable" concept, in which the products are part reusable,
part disposable, offering a high quality and environmentally
responsible solution at a cost that is competitive against fully
disposable alternatives.
Elemental also has exclusive UK distribution for a select group
of specialist products employed in laparoscopy, bariatric and
metabolic surgery, hernia repair and breast reconstruction.
In addition, we design and develop medical devices for carefully
selected OEM partners and have also collaborated with a major UK
industrial partner to provide precision engineering solutions to
complex problems outside the medical arena.
We aim for our brands to be recognised and respected by
healthcare professionals in all major geographical markets in which
we operate and provide by development, partnership or acquisition a
broad portfolio of cost effective, procedure specific surgical
instruments and implantable devices that offer reliable solutions
to genuine clinical needs, the Company's Reposable portfolio
enables healthcare providers to reduce both plastic waste and their
CO2 footprint as they strive for net zero.
Further information
Further details of the Group's businesses and products are
available on the following websites: www.sigroupplc.com
www.surginno.com
www.elementalhealthcare.co.uk
To receive regular updates by email, please contact
si@walbrookpr.com
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END
AGMSEMFIMEDSEEM
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June 27, 2023 02:00 ET (06:00 GMT)
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