StockMarketWire.com - Keyhole surgery specialist Gyrus Group unveiled an 18% rise in underlying interim profits.

The improvement was driven largely by the acquisition of the American Cystoscope Makers Inc last year.

In the six months ended June 30th pretax profits, excluding restructuring costs, amortisation and deferred taxes, climbed to £5.6m from £4.7m in the same period last year.

Adjusted earnings advanced 54% to 7.7p per share and adjusted operating profits by 200% to £17.1m.

Sales more than doubled to £107.4m and the historical Gyrus business posted 17% sales growth.

The figures were largely in line with a July trading statement, when the medical devices maker said predicted earnings per share were in line with consensus expectations of 7.3p, with sales of £107.4m.

Gyrus doubled in size with the £275m acquisition of ACMI, becoming Britain's second-biggest listed medical technology company. The US group specialises in visualisation technology, making the telescopes used by surgeons to look inside the body during keyhole surgery.

The company said today that the integration of the two businesses is progressing well, and edged targeted cost savings $3m higher to $25m by mid 2008.

Gyrus, which has traditionally made tools for on laparoscopic and endoscopic surgical procedures, is trialling a move into more general surgery. It recently introduced new technology to test the water, and is set for further launches in the coming year.

The company and analysts have predicted the move will give revenue growth a boost from next year.

'Against the backdrop of a declining US dollar for the second half, we look ahead to the full year with cautious optimism and longer term confidence in the commercial potential of our technology platform,' chairman Brian Steer said in a statement.