Expectations of new product launches and a distribution agreement in the US sends minimally invasive medical tool maker Surgical Innovations (SUN:AIM) 10% higher to 1.6p.

Alongside the upbeat outlook the market welcomes news of pre-tax losses shrinking by almost £8 million in 2015.

The Leeds-based company appears to be turning a corner after several profit warnings, losses and the chief executive falling on his sword after sales in the US did not materialise as expected. Turnaround specialist Nigel Rogers was appointed chairman in October 2015.

Pre-tax losses fell to £2.1 million in 2015 from £9.7 million a year earlier thanks to a 36% rise in sales to £5.5 million. Cost cutting also played a part.

Web - Surgical Innovations - 16 March 2016

Other highlights include net cash generation reaching £1.6 million from £69,000 a year earlier and debt falling to £2.2 million from £3.3 million during the same period.

In February 2016 management formed an agreement to sell products, which are used to perform key-hole surgery, in new territories across the US. This will be complemented by new product launches.

Issue Date: 16 Mar 2016