Shares in Surgical Innovations Group PLC rose on Thursday, as the company released its results for the past year and announced the signing of two distributing agreements by its subsidiary Elemental Healthcare Ltd.

Surgical Innovations shares were up 14% to 0.46 pence each in London on Thursday morning.

The Leeds, England-based manufacturer and distributor of medical technology widened its pretax loss in 2023 to £728,000 from £57,000 the year before.

However, the company grew revenue by 6.2% to a record sum of £12.0 million from £11.3 million.

Surgical Innovations continues to pay no dividend.

‘Operational and supply chain challenges have adversely affected margins and efficiencies. Inflationary pressures on crucial components, coupled with extended lead times and operational processes, as well as regulatory requirements, have collectively hindered profitability,’ Surgical Innovations said.

Furthermore, investment in sales and marketing alongside product innovation resulted in increased operating expenses for the year.

While performance was robust in key markets such as the UK and Europe, sales in the US struggled, falling 18%.

Looking ahead, the company expects economic challenges to continue, but said its strong order book will provide a stable foundation for future revenue generation.

Surgical Innovations also noted that its subsidiary company, Elemental Healthcare, signed two exclusive multi-year UK distributing agreements with Microline Surgical Inc and Peters Surgical.

The company said that the contracts will generate £9 million and £1.5 million, respectively, over their 3-year and 5-year contract periods.

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