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LONDON (Alliance News) - Surgical Innovations Group PLC on Friday warned that its adjusted annual profit will fall below the prior year, as trading in the second quarter disappointed.
Shares in the developer of minimally invasive surgery tools were trading 37% lower in early trade at 2.60 pence each.
Meanwhile, despite exceeding the prior year's level, Surgical Innovations said that annual revenue is expected to grow at a "more modest rate" than forecast. For 2018, the company posted adjusted pretax profit of GBP1.4 million and revenue of GBP11.0 million.
The company explained that, despite first quarter trading in line with expectations, the momentum "has not carried into the second quarter" with orders in both the UK and EU markets lower than expected, due to Brexit uncertainty.
In the UK, demand had been negatively affected by both Brexit and the "concerning" level of activity in the NHS, the company explained.
Revenue in the other export markets remained unaffected, with the US recording "strong" growth.
"We continue to invest in operational excellence and innovative product development as the main drivers of organic growth, and to evaluate the potential for enhanced growth by acquisition," the company said.
Surgical Innovations added: "The directors recognise that the impact of the above external market factors on the group is disappointing; however, as significant shareholders in the group we continue to look to the future with confidence."
