I am at a loss both mentally and financially about the goings on here.

The company is involved in health care and all it's peers have risen substantially.

Debt has been cleared, profits are rising and the chairman's statement was incredibly positive. I always thought a star of this kind would rise. Low market value etc etc. Any ideas why I'm apparently wrong?

Any thoughts?

A slow start but the buyers are now coming!

Come-up!

Why is nothing happening?

Have I missed something?

Patience my son patience - all the short term punters are gone nows the time
to buy in.....

About time I was ready to go home!!!!!!!!!!

Looking really good now,very few looking to bank their profit at present as it looks like 10p+ could be in the offering with further good news soon,excellent prospect.
Z.

I'm assuming the results at the end of the month are crackers and the cats out of the bag. I've held these since 2002 and every year the results have improved, has anyone heard anything?

Heard nothing Ryce, but have held for a while, been slowly buying more. SUN, to my mind, has been off radar for far too long; as you say the results improve each year and the last 12 months look to have taken the company to new heights. I am expecting the biggest improvement yet in the latest accounts, with probably more good news thrown in. I have not been able to find anything detrimental about SUN and look forward to a measured improvement in the SP over the next 12 months, or sooner.

Thanks Kim

Massive potential in this one boys - been a holder for years & years since heamocell - worth the wait.

Could soon go to 9p

Final Results

We have today announced our final results for the twelve months ended 31 December 2006.

Highlights
Eighth successive year of record sales, profit and earnings per share
Pre-tax profits increased substantially, up 98% to 696,000 (2005: 352,000)
Revenue up by 11% to 4.46 million (2005: 4.02 million)
Basic earnings per share (EPS) increased by 69% to 0.27p (2005: 0.16p)
Significant growth in sales of Minimally Invasive Surgery devices (up by 36%)
US sales focus aided by additional patent clearance and FDA approval
R&D expenditure increased by 18% to 292,000 (2005: 248,000), representing a significant investment in the Groups future product range
Simplification strategy implemented, improving production efficiencies for 2007 and beyond
Significant contracts already signed in 2007 with Teleflex Medical and Elemental Healthcare

Commenting on the outlook, Doug Liversidge, Non-executive Chairman, said: After our eighth successive year of record performance, we approach 2007 and beyond with both enthusiasm and excitement. Fuelled by an ever-strengthening innovation and intellectual property base, combined with significant new distribution agreements, the Group looks forward to achieving further improvements in operating margins and continued business growth.

CHAIRMANS STATEMENT

Introduction

I am delighted to be able to report another year of excellent progress for Surgical Innovations Group Plc (the Group). For the eighth successive year the Group achieved a record level of sales, profit and earnings per share (EPS).

The Groups reported sales revenue grew by 11% to 4.46m (2005: 4.02m). Significantly, sales within our core business of Minimally Invasive Surgery (MIS) devices rose by 36%. This has encouraged your Board to invest additional resources in potentially lucrative internal development projects for new surgical devices.

Importantly, we have been able to deliver an improvement in our MIS operating margins as a result of our focus on manufacturing processes relating to our strategic product lines.

The Board has taken the view to capitalise 190,000, of research and development costs, net of specific grants, as they fulfil the requirements of the relevant accounting standards.

As a result, pre-tax profits have increased by 98% to 696,000 (2005: 352,000) which translates into basic EPS growth of 69% to 0.27p (2005: 0.16p).

Business Review

Instrument Division revenue increased by 36% to 3.65m (2005: 2.68m). This performance is testament to our key product lines; the YelloPort port access system and the Logic single use scissors range. We are currently focusing our efforts on the United States laparoscopic market and substantial work has been undertaken during the year to establish clear routes to market.

Product Development Division revenue totalled 313,000 (2005: 535,000). This income was generated from clients in both the medical device and industrial sectors. New customers were secured building upon our success with Rolls-Royce in 2005. This type of work from external customers can be extremely profitable, although it remains unpredictable, usually driven by urgent customer needs. Therefore, we took the decision to invest heavily in the year in internal MIS product development. Our aim is to build upon our international network of MIS distributors, with its high demand and enthusiasm for new innovative products.

Royalties from the licensing of EndoFlex to Cardinal Health totalled 249,000, a decrease of 11% on last year (2005: 281,000). After allowing for adverse currency exchange rates during 2006, the actual sales value of our licensed products fell by only 2%. We worked closely with Cardinal Health during the year to develop an international presence for EndoFlex, utilising our established distribution partners with a view to sustaining future royalty income. In addition, we continue to receive a licence fee from Rolls Royce whilst exploring arrangements for future licence fees and development work from other industrial companies where our technology may have possible applications.

Our Autologous Blood business was adversely affected during the year by changes to our external manufacturing arrangements. I am pleased to report that we have now resolved these issues and we are actively seeking partners to develop a coherent strategy for both our intra operative and post operative product lines.

Overall the Group has enjoyed a successful year, laying a further platform for growth in profitability and new product development.

Product Development

2006 saw a renewed focus on the development of devices to complement our existing MIS product portfolio. During the year our expenditure on research and development, before government grants of 46,000, increased by 18% to 292,000 (2005: 248,000), representing 6.5% of sales (2005: 6.2%).

The creation of intellectual property is a key element of our investment in product development. I am delighted that we successfully filed patents on technology intrinsic to one of our products positioned for launch in 2007. Our current patent portfolio has enabled us to generate over 2.7m in royalties and licence fees. It is our intention to aggressively grow and defend our intellectual property portfolio.

Board of Directors

Our Group Board has worked diligently as a team during the year and, importantly, the level of support provided by the Non-executives to the Executive Directors continues to develop in line with the growth of the business. The Operations Board is now well established and has significant levels of expertise in all areas of operation of the business.

Employees
The Group is committed to the development and retention of its high calibre staff, which we believe is the key to achieving the Groups ambitious growth plans. I am delighted to report that we have recently recruited an experienced clinical specialist to oversee forthcoming product launches in the United States and our other overseas markets.

I would like to take this opportunity to thank all staff for their dedication and support during the year in which we again continued to provide high quality innovative devices to the surgical profession.

Outlook
Our immediate plans focus on the launch of our products developed during 2006. The United States is a key market for us and with US Food and Drug Administration (FDA) approval now received, together with patent clearance, we are well placed to establish a presence in this dynamic and growing market.

Although I have to report that Aesculap has decided not to renew its OEM scissors contract with us, such a situation is always a possibility with this type of business and plans are in hand to mitigate the effects. We recently signed a 1.15m three year extension to our contract with Teleflex Medical for distribution of our products in Europe. Furthermore, as part of a review of our distribution arrangements, we have appointed Elemental Healthcare, through a 1.74m four year contract, as our distributor in the UK. Negotiations are also underway with regard to establishing a master dealer for all our business in the Far East and Indian sub continent, where we believe there is a major opportunity for our products.
We approach 2007 and beyond with both enthusiasm and excitement. We look forward to achieving further improvements in our operating margins and the continuation of growth in the business.

Doug Liversidge CBE
Non-executive Chairman
April 2007


DATE: 30/04/2007




Although it is a little disappointing that Aesculap has decided not to renew its OEM scissors contract, SUN says 'such a situation is always a possibility with this type of business and plans are in hand to mitigate the effects': I am confident that this will not cause any problems for the company and will continue to buy when the opportunity arises. But as always, DYOR.

Non-executive chairman Doug Liversidge said SUN 'looks forward to achieving further improvements in operating margins and continued business growth'.

Although SUN is still a minnow, it is very much swimming in the right direction

anyone following this?

Yep
Tipped again in todays Shares mag,should see a new climb in the sp after the volitility of the recent share placing,real growth prospects are the feature for todays tip by Shares.
Z.

i think June July we should see some movement

Zepher- do you think you can pose the whole article please if possible??

MACD about to cross over and MA RSI is oversold we should see the SP move NORTH - IMO

Surgical innovates in the US

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By Eric Barkas City Editor
Medical devices company Surgical Innovations is raising 4m before expenses via a share placing so it can develop its businesses.

Of the net sum raised, about 1.25m will be used as working capital for the Leeds-based company's US operations.

In December Surgical announced it had made inroads into the US market with an agreement to supply its YelloPort abdominal access system to one of America's biggest hospital groups.

Surgical is best known for devices used in laparoscopic surgery - a less invasive, keyhole, technique than conventional surgery. It produces the instruments and the access ports through which they are introduced into the body.

The company said yesterday that in the US, where 1.5m general laparoscopic surgery cases were performed last year, it had established relationships with major suppliers who would incorporate YelloPort in their customer offer.

Another 1.8m of the placing money will be used in the sales channels to deliver Surgical products to North American and European markets. That means developing existing product licences and winning new licences in markets where purchasing procedures are varied and differing marketing strategies are required.

Some 750,000 is earmarked for product development.

Surgical says its products have been well received South Africa as well as the US. Patents have been filed on the technology that is the basis for one new product.

Further funding is said to be needed for products as well as putting the necessary manufacturing capability in place.

yes but i dont agree with lining the pockets of the directors and advisors - whats wrong with an open offer to all shareholders including ones like me who has seen it all over the last 15 years!!!!!!!!!!!!!!!!!!

True..