StockMarketWire.com - Surgical Innovations reported revenues were up 14.1% to £3.47m (2016H1: £3.04m) led by strong OEM performance and UK sales growth in the six month period to 30 June 2017.

The company also revealed good progress on the integration of Elemental Healthcare, which was acquired on 1 August 2017.

HIGHLIGHTS:

- Gross margin improvement to 38% (2016H1: 26.6%, 2016 full year: 33.8%)

- Operating margin up to 8.8% (2016H1: 1%, 2016 FY: 7.7%)

- Profit before taxation of £0.3m (2016H1: loss of £0.06m, 2016 full year: £0.28m)

- Increased net cash at bank of £1.16m (31 Dec 2016: £0.72m)

- More demanding regulatory environment across the industry

- Transformational acquisition and board appointments on 1 August 2017

Executive Chairman Nigel Rogers said: "I am pleased to report that SI has delivered financial results at the upper end of our range of expectations in the first half of the year, with strong growth in revenues and profits, and an increase in net cash balances.

"Trading in the second half of the year to date has been satisfactory, and continues to meet the board's expectations.

"Following the recent acquisition of Elemental Healthcare and the resulting appointments of Adam Power and David Marsh to the board, we also have a wider field of vision for the identification of further potential acquisition opportunities, and additional management capacity for execution and integration of any future transactions.

"Accordingly, we have ambitious plans for the future development of the group's activities, and confidence in our combined ability to deliver further success."




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