Another risky one but with a new income stream things are looking up for Sun.
Why they did not perform better last year is anyones guess.
I suppose the big boys have been let down before but this time its different .
Take a look - long term holder.....

Grant of options

Surgical Innovations Group plc ("the Company") announces that on 26 June 2012 the Company granted options to subscribe for 9,264,000 ordinary shares of 1p each to executive directors and employees of the Company. All of the options are exercisable between 26 June 2015 and 26 June 2022.

Options granted to the executive directors of the Company are as follows:

Director
Number of options granted
Exercise Price
Graham Bowland
2,500,000
9p
Michael Thornton
2,500,000
1p

The award to Graham Bowland will only vest in full subject to the satisfaction of performance targets. The award to Michael Thornton, at a discounted exercise price of 1p, was agreed at the time of his recruitment and as part of his overall remuneration package.

The company has granted options to management and key employees over 1,990,000 ordinary shares at an exercise price of 9p and to staff over 2,274,000 ordinary shares at an exercise price of 7.2p.

Following the grant of options, there are 16,864,000 options in issue over ordinary shares in the Company, representing 4.2 per cent. of the current issued share capital. The options are exercisable at prices between 1p and 9p per share.

- ENDS -

Interim Results

Financial highlights

· Revenues of £3.02m (H1 2011: £3.20m) - entirely made up of Core MIS business revenue

· Gross margins in core MIS business increased to 44.8% (H1 2011: 41.9%)

· EBITDA* up 10.3% to £976,000 (H1 2011: £885,000)

· Operating profit* up 2.5% to £527,000 (H1 2011: £514,000)

· Pre-tax profit* maintained at £475,000 (H1 2011: £474,000)

· Basic earnings per share* of 0.14p (H1 2011: 0.12p)

· Net cash of £888,000 generated from operating activities* (H1 2011: £594,000)

*adjusted to exclude exceptional costs of £294,000

Operational highlights

· Revenues from SI branded products up 8.9% to £2.13m (H1 2011: £1.95m)

· Revenues from OEM products down 28.5% to £0.89m (H1 2011: £1.24m) - due to timing of key orders expected to fall in H2

· Strong sales of Resposable® instruments with consumable pull through expected in H2 and beyond

· Disposable elements from SI Branded Resposable® lines now represent 64% of total SI branded product sales (Full year 2011: 62%)

· US Distribution agreement with CareFusion for the PretzelFlex® laparoscopic retractor

· FDA approval for the Logic™ range of reusable instruments and PretzelFlex®

· US supply agreement with Integrated Medical Systems for YelloPort+plus™

. Booked orders for the full year already exceed Group turnover for year ended 31 Dec 2011

A buy recommendation in this weeks IC . Surgicals shares trade on 14 times forward
earnings, but that could prove conservative if it hits targets this year.

First PretzelFlex? orders shipped to CareFusion

Surgical Innovations Group plc (AIM: SUN), a designer and manufacturer of creative solutions for minimally invasive surgery ('MIS'), announces it has shipped the first batch of PretzelFlex® devices under the CareFusion distribution agreement with a second batch to be shipped in December.

PretzelFlex® has been developed by Surgical Innovations for the effective elevation or retraction of organs and tissue during MIS procedures to provide better access as well as visualisation of surgical sites. The device has a slim line shaft that can be inserted through a 5mm port access system. Then, once inside the abdomen it forms into the innovative pretzel shape when deployed by the surgeon. The device was granted 510(k) clearance from the US FDA in March 2012.

It's going to be marketed in the US under the CareFusion brand. That smacks of weak selling by the sales director to sacrifice your own brand name, it seems to me.

SI to benefit from £5.05m RGF Grant

Surgical Innovations Group plc (AIM: SUN), the designer and manufacturer of innovative medical devices, announces it has formally signed the Regional Growth Fund ("RGF") Final Grant Offer Letter, worth up to £5.05m to SI in Government funding. The grant will be used to develop a state of the art research and development facility and clinical training centre, with a reasonable expectation of creating over 300 jobs in the Leeds City region over the next 12 years.

Second order of 5mm PretzelFlex? shipped

PretzelFlex 3mm FDA approval

Surgical Innovations Group plc (AIM: SUN), the designer and manufacturer of creative solutions for minimally invasive surgery ('MIS'), announces that it has received 510(k) clearance from the US Food and Drug Administration ('FDA') for its Reusable 3mm PretzelFlex™ device.

This clearance permits the use of the 3mm PretzelFlex™ in the US market for organ and tissue retraction. The device is easily inserted through a 3mm laparoscopic port and when deployed, forms the unique pretzel shape by way of patented segment technology. The 3mm PretzelFlex™ device combines strength and stability within a significantly reduced profile to support organ retraction through a smaller port incision, which makes it a particularly useful tool in minimally invasive paediatric surgery.

The 3mm PretzelFlex™ is a strategic line extension to the recently launched 5mm PretzelFlex™ (FDA approval for which was announced in March 2012) and complements the SI 3mm YelloPort+plus™ Access system. The Board looks forward with confidence to the forthcoming US product launch.

Graham Bowland, Chief Executive Officer, commented: "I am delighted we have attained FDA approval for the 3mm PretzelFlex™ device. Such technology allows us to access new areas of MIS and enhances SI's reputation as a leader in innovative organ retraction devices."

- ENDS -

This is good.

Trading Update

Surgical Innovations Group plc (AIM: SUN), the designer and manufacturer of creative solutions for minimally invasive surgery ('MIS'), provides the following trading update for the financial year ended 31 December 2012.

SI saw substantially improved trading across both SI Brand and OEM segments in the second half of 2012, driven by increased product demand resulting in contracted orders for delivery in 2012 of £5.6m. This represents an 85% improvement on first half performance; however due to manufacturing capacity constraints at the existing Leeds facility and a delay in US regulatory approval in the final month of the year, £1m of these orders were recognised as revenue in the first week of the financial year ending 31 December 2013.

As a consequence total revenue reported for the 12 months to 31 December 2012 is now expected to be £7.6m (FY 2011: £7.6m).

Following the strategic decision to promote SI Branded products, which now represent 68% of overall revenues (FY 2011: 62%), gross margins are expected to have improved by three basis points to 50.3% (FY 2011: 47.3%). Adjusted EBITDA for the period is ahead of the previous year at £2.85m (2011: £2.8m).

SI ended the year with short term borrowings of £1.4m against bank facilities provided by HSBC of £2.0m.

Given the revenue recognition of £1m in January 2013, the current financial year has started well and provides a sound platform for the remainder of the current financial year.

The Company will announce its preliminary results for the year ended 31 December 2012 on Tuesday, 9 April 2013.