Shares in Surgical Innovations Group (AIM:SUN) fell over 9% after it warned on profits, saying disruptions to manufacturing productivity and in the supply chain have persisted since its June update and are also expected to hit second-half profits.
Directors guided to a "modest" profit at the adjusted EBITDA level for 2023, with "better momentum" in the 2024 financial year.
The minimally invasive surgery technology specialist said its forward-looking order book remains positive, though, and backed guidance for full-year revenue.
Sustainability continued to drive demand in the UK business, it said, with Japan and Europe remaining strong and new geographic territories slowly beginning to gain traction.
To try and overcome the disruptions, a review of both manufacturing operations and supply chain is being undertaken, with measures starting to be introduced to improve efficiencies and productivity, alongside a phased series of planned price increases.
Its lender remains supportive and agreed on a waiver for the debt service covenant test for the second quarter, with £2.3 million in available headroom at the end of last month.