Surgical Innovations Group PLC on Monday said revenue grew in 2022 on the back of original equipment manufacturer sales, while earnings was were up despite inflationary pressures on cost and strikes against the UK National Health Service.

The Leeds, England-based surgical and medical instrument manufacturer anticipates annual revenue of £11.3 million, 24% higher than £9.1 million in 2021, as OEM sales jumped 45%. Adjusted earnings before interest, tax, depreciation and amortisation is estimated at £700,000, in line with market expectations and 40% higher than £500,000 in 2021.

However, between June and December 2022, net cash balance fell to £900,000 from £1.5 million.

Surgical Innovations expects an underlying gross margin before net manufacturing costs within its target range of 40% to 45%, compared to 42% in 2021.

‘The strong UK sales growth highlighted in the fourth quarter has continued into the current year, with new business wins contributing to year-on-year growth. While the company is mindful that strike action and other winter pressures upon the NHS have the potential to slow down the positive effect of these opportunities in the early part of 2023, the underlying UK business remains strong,’ Surgical Innovations said.

Nurses and other NHS workers have held a series of strikes early in the new year. Thousands of nurses and ambulance workers are due to stage walkouts on February 6 if no pay deal has been reached by then – potentially the biggest day of strikes in the history of the UK health service.

Surgical Innovations remained upbeat about its future. ‘New account conversions and closer involvement in the private sector which delivered robust growth in 2022 validate the investment in sales and marketing through the year, and are expected to continue into the current year,’ the company said.

Surgical Innovations shares were 1.6% higher at 1.63 pence each in London on Monday morning.

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