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Surgical Innovations remains a buy despite delays

Surgical Innovations is struggling to meet full-year forecasts after manufacturing and regulatory delays push back sales
February 20, 2013

Revenues at keyhole surgery equipment specialist Surgical Innovations (SUN) look likely to have been flat in 2012 at £7.6m after a regulatory delay in the US pushed £1m of sales into the first quarter of 2013. The delay does not look serious, but Surgical Innovations cannot afford to make a habit of missing forecasts.

IC TIP: Buy at 6.33p

Up until that point, Surgical Innovations seemed to be performing well, with order intake for the second half of 2012 up 85 per cent to £5.6m, resulting in a strain on the company's manufacturing capacity in Leeds. The capacity constraints should be eliminated when its new facility comes on-stream.