Business
Trading Update and Notice of Results
Trading Update and Notice of Results.
About this update from Surgical Innovations Group Plc
[{"type":"text","content":"\n\nSurgical Innovations Group plc\n(\"Surgical Innovations\", the \"Company\" or the \"Group\")\n \nTrading Update and\nNotice of Results\n \nSurgical Innovations Group plc (AIM: SUN), the designer, manufacturer and distributor of innovative medical technology for minimally invasive surgery (\"MIS\"), provides the following trading update.\n \nThe forward-looking orderbook remains positive, providing confidence that revenues for the year to 31 December 2023 (\"FY23\") will meet the Board's expectations. The UK business continues to perform above FY22 driven by sustainability messaging having a positive impact on activity. Key international markets, Japan and Europe, remain strong and, whilst slower than anticipated, new geographic territories are beginning to gain traction. \n \nManufacturing productivity and supply chain disruptions referred to in the June update have persisted, and are now considered likely to continue to impact profitability in the second half of the year. A complete operational review of both manufacturing operations and supply chain is currently being undertaken, utilising an industry specialist. While measures are already being introduced to improve efficiencies and productivity, they will take time to benefit the overall margin. A series of planned price increases has been implemented however, some of these will be phased in over time due to the fixed term nature of contractual agreements. The Board now expects the Group to report a modest profit at the adjusted EBITDA1 level for FY23, with better momentum in FY24.\n \nHigher levels of inventory were maintained in the first half of the year to support service levels to customers, and planned destocking in the second half will have a positive impact on cash resources. The Group's lender, Yorkshire Bank / Virgin Money, remains supportive and agreed a waiver for the debt service covenant test for the second quarter of FY23. As at 31 August 2023, the Group had £2.30m in available headroom including a £1.0m undrawn invoice discounting facility, which gives it access to sufficient capital to support its expected revenue growth in the second half of the year and beyond (30 June 2023: £2.41m, including the undrawn facility).\n \nThe Company announced in May 2023 that Jon Glenn would succeed Nigel Rogers as Chairman at the ...