Surgical Innovations Share Discussion Threads

[jmf69] 25/8/2016 15:33

Steady stream of buys this week

[a0148009] 23/8/2016 12:48

Hello chaps, I bought a holding in SUN some years back at7p and tucked them away in one of the portfolios where they have been gathering dust every since and averaged down today. They are beginning to look interesting after the reorganization including new management, products, higher margins, reduction of debt, and favourable exchange rates the wind is behind them.
This is a civilised and knowledgeable BB which is rather refreshing compared with some others.

"Cash flow and net debt from Annual Report.

The Group generated cash from operations of £1.57m (2014: outflow
of £0.69m) primarily as a result of the working capital
movements described above. Cash used in investment was restrained to £0.45m (2014: £1.60m) resulting in a cash inflow before
financing of £1.06m (2014: net outflow of £2.09m).
This inflow was enhanced by the proceeds of the issue of new convertible unsecured loan notes of £0.50m in March 2015. The
£3.00m term loan facility provided by Yorkshire Bank was subject
to changes of terms in September 2015, and again in December
2015 which involved early repayments totalling £1.00m and favourable revisions to prospective financial covenants. The remaining
balance of £2.00m of the term loan is
subject to quarterly repayments of £0.10m during 2016/17, and the remaining balance of
£1.30m is due for repayment on 31 October 2017. Its ongoing availability is dependent upon covenant compliance.
At 31 December 2015, total gross indebtedness was £3.24m (2014: £4.01m) and the Company had available cash resources of
£0.98m (2014: £0.68m"
AO

[jmf69] 23/8/2016 10:55

Delayed 1m buy showing too

[jmf69] 22/8/2016 18:33

1.26m buy today?

[bashor] 22/8/2016 14:54

We should if I have I correct see some tail winds here from the weakness of sterling

[bjfanc] 22/8/2016 07:25

Interim results next week, should make a good read.

[sambuca] 12/7/2016 18:22

The way I see it there are two ways it could go
1. The uncertainty could bring a glut of orders from existing clients from not knowing if things will change for one and the good exchange rate for them making them cheaper.
2. Orders could slow as the exchange rate is $1.33 at the moment and talk is that it could go as low as $1.15 so having the effect of deflation.

Sam

[leadingladies] 12/7/2016 14:59

Suppose arguably the low £ ought to stimulate a few added sales from new customers who, given the "cheaper cost", are prepared to give the equipment a try.

[gbh2] 12/7/2016 13:21

US always had the potential for being their biggest market (no pun intended) will that change post Brexit given they already have an outlet over there?

[leadingladies] 01/7/2016 10:31

No - a quick resume of the accounts and prospects (nothing that you couldn't get from reading the published information) but they were not able to give any detail on the new products as considered sensitive. Reiterate though I sensed an honesty in their approach and believe they are in a significantly better position than they have been for a long time. Arguably therefore worth a punt but it's hard when as a current investor I have suffered so many false dawns in the past ! Still trying to come to terms with post Brexit activity in the markets.

[jmf69] 30/6/2016 15:56

LL did they give a presentation at the agm?

[leadingladies] 28/6/2016 11:25

bjfanc - confess without looking it up I cannot remember the exact terms of the convertible loan notes. Inferred from the meeting that with a 2 shift system potential would be to achieve a max 30% gross margin. No idea what associated costs and hence net margin would end up being but I presume this would increase. How that then relates to turnover to cover the notes I've no idea ! Board seem excited about the new products but I assume take up would not be exponential.

[bjfanc] 28/6/2016 11:05

Thanks very informative. Here's a question, what's the chances of generating enough cash, over the next year or so, to actually pay the convertible loan off. Or re finance accordingly.

[leadingladies] 28/6/2016 08:57

Not a problem. Nice to share some better news for a change.

[mandate] 28/6/2016 07:26

Yes, thanks for taking the time to write this

[jmf69] 28/6/2016 07:08

Thanks for the update LL

[leadingladies] 27/6/2016 19:24

JMF69 et al - went to the AGM and came away with a much warmer feeling than I did last year. Much better attended as well. Doug Liversedge even attended as an ordinary shareholder this time ! New board members in place and all seemingly have the credentials to takes things forward. Melanie Ross also appeared far more self assured and clearly has an excellent working relationship with Nigel who I spoke at length with after the meet. He struck me as very optimistic about the cos prospects but is taking a cautious approach. Inferred that the relationship with the distributor in the US was going well and they were actively looking for a second option there. The current weakness of the £ should also help generate added sales. No plans to relocate as adequate capacity at the current site for existing production with option existing to go to a second shift if needed. I asked about the website and my concerns that it did not appear to have been updated for the last 2 years. Inference is this will be put right but rather than over doing the publicity (felt this happened under the previous management) they would restrict to items that they consider would generally assist investors e.g. new product launches etc etc. Another interesting question asked is what has happened to all of Chris Rea's shares. Feel is these were taken by various parties and then distributed around keeping any specific interest under the 3% threshold. Lastly before leaving I had a chat with the receptionist and she said she felt the atmosphere in the company had improved significantly which I again take as a good sign. They could not disclose specific information on the new products but let's hope they are winners !! Certainly could do with this to go to counter other shares in the portfolio !

[argyle underclap] 27/6/2016 13:00

nice statement!

[jmf69] 27/6/2016 08:04

Anyone going to agm. Feedback comments most welcome

[bjfanc] 27/6/2016 07:43

Yes. I still believe this is the best position the company has been in a long time. The exchange rate only adds to this. Happy to hear opposite views. But believe the turn around continues and always like to read about the reduction in net debt.

[jmf69] 27/6/2016 07:32

Upbeat statement.

[mandate] 24/6/2016 07:55

Well, the state of sterling is certainly going to be good for exports!

[leadingladies] 06/6/2016 10:47

Would certainly hope so. Absolutely nothing on the website to reassure (or otherwise) ordinary shareholders.

[jmf69] 03/6/2016 07:34

Agm on the 27th. Any chance of a trading update to go with it?

[leadingladies] 27/5/2016 14:14

Agree - you would think that would have generated another RNS. Having said that if several buyers then threshold may not have been reached.