Device pipeline heralds bright future for Surgical Innovations

REVENUES may have been hit at surgical devices designer and manufacturer Surgical Innovations but hopes are high that a move to centralised premises will see the company reap the rewards. 

Finance director Graham Bowland said the imminent launch of LogiFlex - a device to help surgeons fit gastro bands to fight obesity - was an example of the innovation possible at the firm's new Leeds base.  

Mr Bowland said that although revenues for the year to December 31 were down £500,000 to £4.3m second half sales grew by 48% from the first half of the year. Operating profit increased by 14% to £780,000, while pre-tax profits were up 12% to £820,000.  

"It was a very challenging year because of the relocation. But it has been short-term pain for long-term gain." He added that Surgical Innovations' move to a centralised location had "revolutionised the business". 

Doug Liversidge, chairman of Surgical Innovations, said: "I am pleased we were able to achieve our objectives and return a second half performance that gives the board confidence for 2009. Our main objective this year is to develop instrumentation for the next generation of surgical techniques, namely Single Port Access surgery. 

"We have several key objectives for 2009, including the launch of products developed during 2008, a strategic reappraisal of our ABT (Autologous Blood Transfusion) business, and most importantly, a review of our US operations to ensure we maximise the opportunities open to us at this time. Quite frankly, the penetration of our products in the US to date has been below our expectations." 

Surgical Innovations said it was considering the future of its blood transfusions business and whether to develop it or sell it. Mr Liversidge said the firm's YelloPort Plus system, a reusable device which helps access to the abdomen for operations, was being rolled-out globally through its distributor network, but that sales had been disappointing in the US. 

Surgical Innovations has continued to work with Original Equipment Manufacturer (OEM) medical partners such as Teleflex Medical, Gyrus, Olympus and Cardinal Health. 

"The facilities are now in place, new products are ready for launch and with the current world economic situation, the group is well placed to take advantage of our established resposable concept," added Mr Liversidge.  

"As a company heavily geared to exports, we should continue to benefit from the low value of sterling against the Dollar and Euro."

Published with permission of TheBusinessDesk.com