Surgical Innovations warns NHS strikes may slow new business in 2023

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(Alliance News) – Surgical Innovations Group PLC on Monday said revenue grew in 2022 on the back of original equipment manufacturer sales, while earnings rose despite inflationary pressures on cost and strikes against the UK National Health Service.

The surgical and medical instrument manufacturer based in Leeds, England anticipates annual revenue of GBP11.3 million, 24% higher than GBP9.1 million in 2021, as OEM sales jumped 45%. Adjusted earnings before interest, tax, depreciation and amortization is estimated at GBP700,000, in line with market expectations and 40% higher than GBP500,000 in 2021.

However, between June and December 2022, the net cash balance dropped to GBP900,000 from GBP1.5 million.

Surgical Innovations expects underlying gross margin before net manufacturing costs in its target range of 40% to 45%, compared to 42% in 2021.

“The strong UK sales growth highlighted in the fourth quarter continued into the current year, with new business wins contributing to year-on-year growth. While the company is aware that action by strike and other winter pressures on the NHS have the potential to reduce the positive effect of these opportunities in the early part of 2023, the underlying UK business remains strong,” said Surgical Innovations.

Nurses and other NHS workers staged a series of strikes early in the new year. Thousands of nurses and ambulance workers are due to strike on February 6 if no pay deal is reached by then – potentially the biggest day of strikes in the service’s history. UK health.

Surgical innovations remained positive about his future. “New account conversions and closer involvement in the private sector that delivered robust growth in 2022 validate the investment in sales and marketing during the year, and are expected to continue in the current year,” the company said.

Surgical Innovations shares were 1.6% higher at 1.63 pence each in London on Monday morning.

By Tom Budszus, Alliance News reporter

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