Surgical Innovation sees revenue grow 44% despite postponed elective surgeries

Surgical Innovation, the invasive surgery product providers, saw revenue grow 44% from £6.3m to £9.1m in 2021 due to sales recovery from the pandemic’s impact with fourth-quarter sales at par with pre-pandemic levels.

Surgical Innovation sales suffered from the constant impact of covid-19, which affected the demand for their products.

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The revenues reported will be able to support the business needs for 2022, the company said.

Despite the Omicron variant affecting staff shortages to perform invasive surgeries, the firm said their revenues from January and February 2022 were roughly 40% higher than of 2021.

Adjusted EBITDA for the group bounced back to profits of £0.5m from a loss of £0.66m in 2020 as a result of the group controlling their operating expenses.

Surgical Innovation saw a decrease in adjusted operating loss before tax from £1.6m to £0.3m in 2021.

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The company reported an adjusted EPS loss of 0.022p compared to 0.19p in 2020.

Surgical Innovation noted net cash excluding leases of £1.7m in 2021, compared to £3.1m in 2020.

Going forward, the company had restructured their debt financing to leave financial headroom of £4.06m instead of £5.78m in 2020 to create a ‘lower risk environment’.

Surgical Innovation is focused on gaining growth by increased product development and marketing investments.

‘Resposable’ Technology

Surgical Innovation develops ‘resposable’ products, which are reusable or part-disposable in an attempt to reduce both waste and costs associated with elective surgery.

During the pandemic, many elective surgeries were not a priority, resulting in a reduced number of surgeries performed.

Post the pandemic, postponed elective surgeries are increasing. During the second half of 2021, a 24% increase in elective surgeries from the first of half of the year was observed in the UK markets.

The company is in hopes of rolling out ‘resposable’ products to the UK market to meet the needs of the NHS’ sustainability targets.

Nigel Rogers, Chairman of Surgical Innovations, said, “the UK market continues to be strong and is trending ahead of pre-pandemic levels and, as patient waiting lists continue to rise, it is likely that this momentum will continue.”

“Demand in the European and the Rest of the World markets is steadily increasing but remains more muted.”

“However, both the US and APAC markets continue to grow significantly ahead of pre-pandemic levels.”

“In addition, we are committed to enhancing and expanding our product portfolio through new product launches, investing in sales and marketing to drive our sustainability messaging, and developing key partnerships, all of which will further support the expansion of revenue in 2022 and beyond.”  

Surgical Innovation shares surged 4.3% to 2.4p in early morning trade on Wednesday following optimism around the company’s 2022 outlook regarding recovery from the pandemic.

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