LONDON (Alliance News) - Surgical Innovations Group PLC warned Wednesday that the "significant loss" it expects to post for 2014 will be further compounded by a substantial non-cash impairment, and a significant non-cash write down in the carrying value of its inventory.
The surgical products company had previously guided it will post a significant loss for the full year at the time of its interim results last September, citing declines in its revenue due to issues with excess inventory in its supply chain, asset write downs and costs associated with the Regional Growth Fund project.
Then, in October the company warned it would also be posting an exceptional GBP1.6 million charge as it further reviewed its balance sheet, due to the write-down of the carrying value of non-current trade receivables, and redundancy charges as it looks to reduce its ongoing costs.
Wednesday Surgical Innovations said that, notwithstanding these issues, it is satisfied with the progress it has made in restructuring since it raised GBP1.5 million through a share subscription and the issue of loan notes with its biggest shareholders last November. Its cash position is ahead of forecast, the company said.
Shares in the company were down 29% to 1.15 pence at the open, one of the worst performers in the AIM All-Share.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Surgical Innovations (SUN)