Leeds’ Surgical Innovations report £3.5m loss in revenue

Leeds-based Surgical Innovations Group plc, a developer of innovative medical technology for use in minimally invasive surgery, suffered huge losses in the last financial year.

During 2014, the company’s revenue significantly fell by £3.449m to £4.029m, (2013: £7.478 million), which was mainly because of the decrease in sales of SI branded products, which reduced by £2.476 million.

The biggest loss of 2014 came in the company’s final operating result, which was revealed to be £9.783m, compared to 2013’s profit of £52k.

This massive reduction occurred due to significant exceptional items - an unusually large and uncommon transaction charge - of £8.388m of which £7.797m were non-cash impairment charges against capitalised development costs (£5.973 million), inventory (£1.096 million) and trade debtors (£0.728 million).

Other cash exceptional items included fully expensing the cost of the Regional Growth Fund project (£420k) and also restructuring costs incurred in Q4 (£171k).

As a result of the decrease in revenue, EBITDA, excluding exceptional items, dropped to a small loss of £52k, compared to 2013’s profit of £1.681m.

Doug Liversidge, non-executive Chairman, said: “The financial performance for 2014 was extremely disappointing. However, the Board and staff of SI have worked tirelessly over the last six months with the key objective of restructuring the business to secure a sustainable future for the Group.

“Following a turbulent 2014, the Group now has a stronger platform to support the business over the medium term. The Board remains committed to cash generation and the Directors are satisfied with the progress made since the refinancing was announced in November 2014.”

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