GYG.L Regulatory News (GYG)

17 Jul 2007 07:00

Gyrus Group PLC17 July 2007 17th July 2007 Gyrus Group PLC Pre-Close Period Statement Reading, UK - Gyrus Group (GYG.L), a leading supplier of medical devices whichreduce trauma and complications in surgery, today provides a pre-close periodupdate ahead of its interim results for the six months to 30th June 2007 on 17thSeptember 2007. The Group's underlying revenue growth (from continuing operations at constantexchange rates) is expected to be approximately 11%. Reported revenues for theperiod have been affected by the 10% depreciation in the dollar and areanticipated to have increased 2% to approximately £109 million (H1 2006: £107million). Although the US dollar remains weak into the second half of 2007, itis currently more comparable to the rate experienced in the second half of 2006.It is anticipated, therefore, that the Group's normal pattern of seasonality,with its weighting in favour of the second half, will resume in 2007 on areported basis. The Surgical Division grew US revenues at just under 22%, reflecting stronggrowth from the portfolio of PK instruments. The Urology & Gynaecology Divisioncontinued strongly from the fourth quarter of 2006 to record domestic revenuegrowth of approximately 11% with PK SuperPulse sales growth of over 50%. As anticipated at the year-end, the ENT Division was adversely affected by therestructuring of its sales force in late 2006 and revenue from continuingoperations declined by approximately 3%. The second generation of theJPlasmaKnife for tonsillectomy was launched in late April and has delivered agood performance in its first two months. It is expected to develop well overthe second half of the year. The Partnered Technologies Division grew by approximately 4% on a constantcurrency basis against a strong comparative period in 2006. The Group'sinternational businesses grew in aggregate by approximately 9%, following animproved performance from international distributors. The Surgical Division's launch into general surgery proceeded well in the periodwith 350 G400 generators being installed into the US, of which approximately 55%were sold and the remainder placed. Total revenue from the PlasmaCisionportfolio reached $6.2million representing growth of 120% on H1 2006 ($2.8million). The PlasmaSeal device for open surgery remained on controlled releasepending some design modifications. It is anticipated that underlying adjusted earnings per share (excludingamortisation of acquired intangible assets, integration costs and deferred taxadjustments) for the six months to 30th June 2007 will be consistent withconsensus expectations for the full year. Roy Davis, Chief Executive of Gyrus, said: "The first half of 2007 has seen the Group perform well on an underlyingconstant currency basis with both the Surgical and Urology & GynaecologyDivisions continuing their strong performances. Our new products have shown goodgrowth in their respective markets and, although it is still early days, we havestarted to make inroads into the general surgery market with multiple productsfrom our proprietary PK technology portfolio. We look forward to continuing oursuccess in the second half of the year." Enquiries: Gyrus Group PLCRoy Davis CEO 01189 219 750Simon Shaw CFO 01189 219 750 Financial DynamicsBen Atwell 0207 831 3113 This information is provided by RNS The company news service from the London Stock Exchange