Minimally invasive medical tool-maker Surgical Innovations (SUN:AIM) is one of the largest fallers in London dropping 28.4% to 3.1p.
Revenues and profits for the year will be ‘significantly’ below expectations, the Leeds-based company says in an update. Further details are expected in its interim results, due on Thursday (25 Sept).
The blame has been mainly laid at the door of its US network, which is experiencing slower growth than anticipated. The decision to reduce inventories within the customer supply chain has also been named as a factor.
The £12.7 million cap makes tools to help surgeons perform key-hole operations, mainly through sticking rods under the skin to carry out procedures such as tummy tucks.
Surgical Innovations will now focus on cash conversion and selling products that add value to its brand. Other developments designed to reverse the company’s fortunes include a review of its balance sheet, which has resulted in a £2.2 million exceptional non-cash impairment charge.
In January, analysts at broker Panmure Gordon lowered its forecasts for the year to a £1.8 million adjusted pre-tax profit, down from £2 million. The market awaits its latest view of the company following the update.