Interim Results
September 30 2003 - 3:00AM
UK Regulatory
RNS Number:2888Q
Surgical Innovations Group PLC
30 September 2003
Surgical Innovations Group plc
Interim results
30 September 2003
CHAIRMAN'S STATEMENT
I am pleased to report that for the six months to 30 June 2003 your Group made
an operating profit of #43k on turnover of #1,160k. Allowing for net interest
payable of #20k, the retained profit for the period was #23k. For the same
period in 2002, there was an operating profit of #22k on a turnover of #968k.
I am delighted that turnover increased by 20% over the previous comparative
period, a testament to the strength of the product range and our continued
product development.
My interim statement in 2002 commented upon the economic slowdown on exports to
the USA, which affected our business for 2002. It is heartening to report that
sales of YelloPort in the USA are now improving, through our strategic
partnership with Cardinal Healthcare. Sales of YelloPort continue to develop on
a world-wide basis and, in markets where reusable instrumentation tends to
dominate, it is proving to be successful against the competition.
We started 2003 with a global contract with Aesculap for our disposable
scissors. So far, expectations have been met and we are confident that forecast
sales of the product will be fulfilled by the end of 2003. The relationship
with Aesculap continues to develop and, at their request, we are launching two
new scissor variants in the final quarter of 2003.
Technological and market changes in the Autologous Blood Transfusion (ABT)
sector are taking place requiring us to undertake further work in this area and,
to this end, we have commissioned a detailed market analysis. In order to
benefit from our work done to date, we are looking for a joint development
partner.
In May we commenced market trials in South Africa of our single use port system,
Variglide, with remarkable success. In June, we officially launched the product
at EAES (European Association of Endoscopic Surgeons) in Glasgow and received
critical acclaim from surgeons, distributors and competitors alike. To ensure
we meet future demand, we have made a significant investment in our
manufacturing facility. We have been actively recruiting over the past two
months as we prepare for an upsurge in business in our single use products.
Several European markets have now been targeted as we continue to roll out
Variglide on a country-by-country basis and initial reaction has been extremely
favourable. The ultimate goal is to penetrate the lucrative US market and
current market data available for 2003 indicates that the US port access market
is approximately $300 million. Discussions have taken place, and continue to do
so, with several companies, including some of our strategic partners, with a
view to establishing the most appropriate route to market. We hope to have
concluded our discussions by the end of the current financial year.
Your Group is currently in a strong position to take advantage of our
significant investment programme and your Board is confident of a substantial
second half performance.
DOUG LIVERSIDGE CBE
Chairman
30 September 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the 6 months ended 30 June 2003
Unaudited Unaudited Audited
6 months to 6 months to Year to
30.06.03 30.06.02 30.12.02
#000 #000 #000
Turnover (including licence fees) 1,160 968 2,224
Cost of sales (543) (431) (1,048)
---------- ---------- ----------
Gross profit 617 537 1,176
Administrative expenses (574) (515) (1,098)
---------- ---------- ----------
Operating profit 43 22 78
Net interest payable (20) (2) (18)
---------- ---------- ----------
Profit on ordinary activities before taxation 23 20 60
Tax on profit on ordinary activities 0 0 18
---------- ---------- ----------
Retained profit attribute to ordinary shareholders 23 20 78
====== ====== ======
Profit per ordinary share 0.009p 0.008p 0.03p
====== ====== ======
CONSOLIDATED BALANCE SHEET
As at 30 June 2003
Unaudited Unaudited Audited
As at As at As at
30.06.03 30.06.02 30.12.02
#000 #000 #000
Fixed Assets
Tangible Assets 725 428 660
---------- ---------- ----------
Current Assets
Stock 598 625 562
Debtors 968 637 1,073
Cash at bank and in hand - 124 13
---------- ---------- ----------
1,566 1,386 1,648
Creditors: amounts falling due within one year (709) (515) (775)
---------- ---------- ----------
Net current assets 857 871 873
---------- ---------- ----------
Total assets less current liabilities 1,582 1,299 1,533
Creditors: amounts falling due after more than one year (309) (110) (285)
---------- ---------- ----------
Net assets 1,273 1,189 1,248
====== ====== ======
Capital and reserves
Called up share capital 2,556 2,555 2,555
Share premium account 16,045 16,044 16,044
Capital reserve 329 329 329
Accumulated losses (17,657) (17,739) (17,680)
---------- ---------- ----------
Equity shareholders' funds 1,273 1,189 1,248
====== ====== ======
CONSOLIDATED CASHFLOW STATEMENT
For the 6 months ended 30 June 2003
Unaudited Unaudited Audited
6 months to 6 months to Year to
30.06.03 30.06.02 30.12.02
#000 #000 #000
Net cash inflow / (outflow) from ordinary activities 226 117 (141)
Returns on investments and servicing and finance (20) (2) (18)
Taxation 37 10 11
Capital Expenditure (47) (191) (207)
---------- ---------- ----------
Cash inflow / (outflow) before financing 196 (66) (355)
Financing 24 28 11
---------- ---------- ----------
Increase / (decrease) in cash in the period 172 (38) (366)
====== ====== ======
Reconciliation of net cash flow to movement in net debt
Increase/(decrease) in cash in the period 172 (38) (366)
Cash outflow from finance leases and loans 27 0 14
---------- ---------- ----------
Change in net funds resulting from cash flows 199 (38) (352)
Conversion of loan notes 0 1 1
New finance leases (63) 0 (259)
---------- ---------- ----------
Movement in net debt in the period 136 (37) (610)
Net (debt) / funds at the beginning of the year (559) 51 51
---------- ---------- ----------
Net (debt) / funds at the end of the period (423) 14 (559)
====== ====== ======
Net cash inflow / (outflow) from operating activities
Operating profit 42 22 78
Depreciation 45 45 88
(Increase) in stocks (36) (76) (13)
Decrease / (Increase) in debtors 68 177 (241)
Increase / (decrease) in creditors 107 (51) (53)
---------- ---------- ----------
Net cash inflow / (outflow) from operating activities 226 117 (141)
====== ====== ======
NOTES
1. The consolidated financial information does not constitute full accounts within the meaning of the
Companies Act 1985 and has not been reported on by the auditors or delivered to the Registrar of
Companies. The figures for the year ended 31 December 2002 have been extracted from the full accounts
for that year, on which the auditors gave an unqualified report and which have been delivered to the
Registrar of Companies.
2. The directors have not declared an interim dividend.
3. The profit per share is based on the weighted average number of shares in issue during the period. The
total number of shares in issue at 30 June 2003 was 255,642,311, at 31 December 2002 was 255,458,165 and
at 30 June 2002 was 255,458,165.
Enquiries:
Surgical Innovations Group
Graham Bowland, Finance Director Tel: +44 (0) 113 230 7597
David Simmons Tel: +44 (0) 161 214 6540
Brown, Shipley & Co. Limited
This information is provided by RNS
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