Surgical Innovations Group (SUN)

Sector:

Health Care

Index:

FTSE AIM All-Share

 0.55p
   
  • Change Today:
      0.000p
  • 52 Week High: 0.80p
  • 52 Week Low: 0.40p
  • Currency: UK Pounds
  • Shares Issued: 932.82m
  • Volume: 338,616
  • Market Cap: £5.13m
  • RiskGrade: 341
  • Beta: 0.52

Surgical Innovations confident despite tough trading environment

By Josh White

Date: Wednesday 06 Sep 2023

LONDON (ShareCast) - (Sharecast News) - Medical technology developer Surgical Innovations updated the market on its trading on Wednesday, projecting a promising outlook for the rest of the financial year ending 31 December.

The AIM-traded company said that while it had faced some challenges, particularly in manufacturing and supply chain disruptions, it remained optimistic about meeting its revenue and profit goals for the year.

It indicated that its forward-looking order book remained robust, bolstering confidence that 2023 revenues would align with the board's expectations.

The business in the UK had continued to outperform last year's numbers, driven in part by a focus on sustainability.

Key international markets for the company, notably Japan and Europe, also remained strong.

New markets were slowly starting to show promise, although growth had been slower than initially anticipated.

Despite the positive sales outlook, Surgical Innovations acknowledged ongoing challenges in manufacturing productivity and supply chain operations.

Those issues were first highlighted in its June update, and were expected to affect profitability in the second half of 2023.

In response, the company initiated a comprehensive operational review, led by an industry specialist, aimed at boosting efficiency and productivity.

While some corrective measures had been introduced, their full impact on profit margins would take time to materialise, the board explained.

The firm had also implemented a series of planned price increases, some of which would be gradually introduced due to existing contractual agreements.

As a result, the board said it expected a modest profit at the adjusted EBITDA level for 2023, with better momentum anticipated in next year.

In anticipation of those challenges, Surgical Innovations said it had maintained higher levels of inventory during the first half to ensure stable service levels for customers.

The company said it was planning to reduce stock levels in the latter half of the year, which was expected to positively impact cash resources.

Virgin Money UK, the group's lender, had shown support by agreeing to a waiver for the debt service covenant test for the second quarter of 2023.

As at 31 August, the Group reported £2.3m in available headroom, which included a £1m undrawn invoice discounting facility.

That available capital was deemed sufficient to support projected revenue growth for the second half of the year and beyond.

"The company announced in May that Jon Glenn would succeed Nigel Rogers as chairman at the time of the announcement of interim results in September," the board noted in its statement.

"As the transition of responsibility as chair has been conducted smoothly, the board now considers it appropriate for Jon to take on the role of chair with immediate effect.

"Nigel has reiterated his commitment to remain on the board as an independent non-executive director until a suitable candidate to succeed him has been appointed."

Surgical Innovations said it would release its interim results for the six months ended 30 June on 19 September.

At 1317 BST, shares in Surgical Innovations Group were down 15.56% at 1.52p.

Reporting by Josh White for Sharecast.com.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

SUN Market Data

Currency UK Pounds
Share Price 0.55p
Change Today 0.000p
% Change 0.00 %
52 Week High 0.80p
52 Week Low 0.40p
Volume 338,616
Shares Issued 932.82m
Market Cap £5.13m
Beta 0.52
RiskGrade 341

SUN Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
62.99% above the market average62.99% above the market average62.99% above the market average62.99% above the market average62.99% above the market average
42.86% above the sector average42.86% above the sector average42.86% above the sector average42.86% above the sector average42.86% above the sector average
Price Trend
28.86% below the market average28.86% below the market average28.86% below the market average28.86% below the market average28.86% below the market average
8.11% below the sector average8.11% below the sector average8.11% below the sector average8.11% below the sector average8.11% below the sector average
Income Not Available
Growth
12.68% above the market average12.68% above the market average12.68% above the market average12.68% above the market average12.68% above the market average
16.67% below the sector average16.67% below the sector average16.67% below the sector average16.67% below the sector average16.67% below the sector average

What The Brokers Say

Strong Buy 0
Buy 1
Neutral 0
Sell 0
Strong Sell 0
Total 1
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

SUN Dividends

No dividends found

Trades for 11-Dec-2024

Time Volume / Share Price
13:09 244,000 @ 0.50p
09:33 85,921 @ 0.58p
08:02 8,695 @ 0.58p

SUN Key Personnel

CEO David Marsh
Chair Jonathan Glenn

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