LONDON (Alliance News) - Surgical Innovations Group PLC Tuesday posted a decline in pretax profit for 2013, despite seeing revenue rise, due to the US Dollar exchange rate and its investment in streamlining its manufacturing operations.
Surgical Innovations produces devices for use in minimally invasive surgery.
The company said it did not intend to pay a dividend, as it plans to continue investing in its development.
Surgical Innovations posted a pretax profit of GBP796,000, down from GBP1.2 million in 2012, as revenue rose to GBP8.6 million from GBP7.6 million, but this was offset by higher sales costs and operating expenses. Revenue growth was bolstered by a 22% increase in sales of its branded product, particularly its Reposable brand of technology.
The company struggled to meet demand during the final quarter of the year, it said, although it had since implemented an improved production process. However, the costs to improve these manufacturing operations and the weakening of the US dollar hit profitability.
Surgical Innovations expressed confidence for its future, noting that it it had continued to focus on further improving its manufacturing operations in the first quarter of the new year.
The company intends to expand its position in the minimally invasive surgery market by opening a new clinical training centre in Leeds.
"The board believes that the group is now well placed to develop its revenue channels both in the UK and internationally, particularly capitalising on the demand from the US," said non-executive Chairman Doug Liversidge in a statement.
Shares in Surgical Innovations were trading up 8.6% at 4.34 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Surgical Innovations (SUN)