Business
Update on trading &extension to banking facilities
Update on trading &extension to banking facilities.
About this update from Surgical Innovations Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 1415O\n Surgical Innovations Group PLC\n 28 May 2020\n \n \n \n \n \n \n \n Surgical Innovations Group plc \n \n \n (the \"Company\" or the \"Group\")\n \n \n \n \n \n Update on current trading and extension to banking facilities\n \n \n \n \n \n Surgical Innovations Group plc (AIM: SUN), the designer, manufacturer and distributor of innovative technology for minimally invasive surgery, provides an update on current trading, the steps taken to mitigate the short-term commercial effects of the Covid-19 pandemic, and the agreement of extended banking facilities. \n \n \n \n \n \n The Company is well positioned with stable finances, broad international markets, and product ranges which are increasingly being recognised as ideally suited to the sustainability agenda and demands of a post-Covid world. \n \n \n \n \n \n In the final results announcement released on 31 March 2020, the Board indicated short-term reductions in revenues in the current year as a result of the Covid-19 pandemic, due to the suspension of elective surgery in the UK and several other major geographical markets. As expected, the impact was experienced from March, and aggregate revenues in the first quarter of 2020 were approximately 25% below the level achieved in the prior year. A further reduction to approximately 70% below the prior year level was experienced in April and is likely to continue in the second quarter. \n \n \n \n \n \n Stable financial position\n \n \n The Company responded quickly to meet this challenging environment by \n implement\n ing strict spending controls in order \n to preserve cash\n , whilst also focusing on timely collection of receivables and deferral of non-essential payables by renegotiating terms. Once the Government Coronavirus Job Retention Scheme was announced on 20 March, an initial 50% of the workforce was furloughed with effect from 1 April. In addition, the Company implemented short-term salary reductions for all personnel above the furlough threshold, up to an upper limit of 50% for Board directors. A small manufacturing team continued to function, focusing on key products to build a 3-month buffer stock which enables us to support our customer requirements, and also to have the flexibility when planning a phased restart...