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Surgical Innovations PLC furthers US reach as losses fall

Following reportedly severe challenges breaking the US market, revenues across ten active states almost doubled.
Surgical Innovations PLC furthers US reach as losses fall
The core strategy remained the sale of keyhole surgery products

Surgical Innovations (LON:SUN) saw losses come down and revenues rise as the group expanded further into the US.

Following reportedly severe challenges breaking the US market, revenues across ten active states almost doubled to £1.54mln a year.

The group entered into a distribution agreement in February to generate sales in US territories not yet covered.

The core strategy of the group remained the sale of laparoscopic, or keyhole, surgery products and the US is the largest market in the world for laparoscopic surgery.

For the year ended 31 December, revenue stood at £5.47mln, compared to £4.03mln in the same period last year, an increase of 36%.

Operating losses in 2015 were £1.98mln down from £9.78mln in 2014, while the loss after tax was £2.03mln, compared to a loss of £9.46mln.

In 2014 the group was hit by significant debt and restructuring expenses.

However gross margin for the year was down to 14% due to inventory reduction.

More than a third of total sales were sourced from existing stock, which adversely affected manufacturing overhead recovery, it reported.

“There remain some challenges in building on the improvements delivered in 2015, not least in sustaining revenue growth to consistently generate positive returns,” said executive chairman Nigel Rogers.

“We believe that we have the opportunities and resources required to achieve this, and look forward with renewed confidence.”

Shares in Surgical Innovations were down by 1.7% to 1.50p.

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