StockMarketWire.com - Gyrus Group revealed annual underlying operating profit more than doubled after it bought American Cystoscope Makers Inc (ACMI) last year, and the British medical devices maker said the integration of the US business is on track.

Operating profits before restructuring costs, amortisation and one-off costs of the acquisition surged to £21.3m from £10.1m in 2004.

Adjusted earnings, before amortisation, restructuring costs and one-time items advanced 27% to 14.2p per share, beating forecasts.

Sales, including a 23 week contribution from ACMI, surged 73% to £150.4m. ACMI contributed £50.4m, giving underlying growth on constant currencies of 14%.

In January, the key hole surgery specialist forecast earnings at the top end of expectations of 13.3p per share, and sales of £149m.

Gyrus doubled in size with the acquisition of AMCI last year, becoming Britains second-biggest listed medical technology company. The US group specialises in visualisation technology, and developed the first digital endoscope, the telescopes used by surgeons to look inside the body during keyhole surgery.

Gyrus said today it expects to generate savings of $22m a year by 2008.

Although restructuring charges will continue to have an impact upon 2006 and 2007 the group is on track to meet its goal of substantially improving underlying operating performance, it said.

Pretax profits including the restructuring costs and one-time items fell to £6.9m from £10m in 2004, giving basic earnings of 5.6p per share.