LONDON (ShareCast) - Shares in Surgical Innovations declined sharply after the company warned its profits had been hit by the US dollar exchange rate and its investment during the second half.
The company, which develops solutions for minimally invasive surgery, said it therefore expected 2013 earnings before interest, tax, depreciation and amortisation to be "significantly" below the £2.9m delivered in 2012.
During the six month period the group invested in manufacturing operations designed to streamline and improve process flows of individual product lines. The move helped growth its US revenues by 75%, contributing to an overall revenue gain of 13% year-on-year to £8.6m (2012: £7.6m).
"The group's strategy for long-term growth is the development of the SI Brand within the lucrative US market, underpinned by the appointment in May 2013 of an SI President of US Sales and Operations," the company explained.
"The group is therefore pleased to report a substantial increase of 75% in sales to the US of SI Branded products, through multiple new routes to market, clearly demonstrating our potential for growth and vindicating the high level of initial investment required."
Overall, SI Branded product revenues have grown by 23%, driven by the demand for its resposable technology.
The share price declined 6.98% by midday.
NR
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