Surgical Innovations Share Discussion Threads

[buywell2] 18/9/2019 13:24

2019 - A NEW STRATEGY FOR GROWTH IS NOW NEEDED



................... SUN AND TIME FOR A NEW STRATEGY FOR GROWTH ...............



About 3 years ago Surgical Innovations had just over 50 people after shedding some staff in order to get back to profitability


After the Elemental Healthcare acquisition staff numbers were up to around 75


In the latest results staff numbers are now at 100 .... DOUBLE what it was around 3 years ago.


With the adoption of IFRS 16 , leasing costs for Leeds is hitting the numbers as well as increased overheads due to the much increased headcount.

Profits have suffered to the extent that there were none. SUN made a loss again , IMO too many staff and too little turnover = a bad situation to be.


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--------- RADICAL CHANGE IS NEEDED IMO TO GET BACK INTO PROFITS --------

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When buywell says RADICAL he means just that.
IMO SUN needs to implement changes that can save/make money to the amount of around £1.5M and at the SAME TIME up margins from a lowly 40% to a minimum 60%.

Put bluntly SI are IMO employing a workforce of machine operators operating in a very large workshop engaged in various machine operations .

This is low tech stuff and NOT where the money is at IMO. Please now click on the youtube link below to view the workshop of which buywell speaks and at the same time here the old CEO say:

' 80% of turnover comes from outside of the UK'
SI has gone the other direction and IMO close to 80% of turnover is coming from inside the UK.
SI needs to address IMO the US market because again as the old CEO made the point 50% of the world MIS market for which SI designs and develops medical devices is in America.
Sure SI is making some inroads into the US via the OR Company but too slowly IMO.
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What sort of changes could be made and how ?


IMO this is largely dependent upon when Surgical Innovations can exit from their lease obligation/s at Leeds HQ, because IMO the BOD should consider the following:


1) Investigate outsourcing ALL production in a staged and staggered manner over say a 2 year period.


2) This could be done by the use of say 2 other companies to carry out the work on a 50/50% split so that any problems with one of them could be picked up by increased production with the other, as a new second supplier was found.

3) IMO there are many small but well established engineering companies in the UK that would like to tender for some of the Leeds production work however:

4) Alternative production suppliers might be found for example in India, South Korea or Taiwan to name but three countries.

5) Quality of course is key , but with the right contract in place and regular checks this should not prove to be insurmountable .

6) IMO work could be outsource phased away from Leeds in a controlled manner once quality and continuity of supply had been established and order numbers ramped up as I said over say a 2 year window.

7) The object of this would be to get rid of Leeds HQ and the lease costs and work from Elemental Healthcare premises once ALL production had been outsourced.

8) Headcount could then reduce IMO to include SI and Elemental Healthcare sales , design staff who could work from home and quality control plus recent other management personnel required to meet compliance issues .



Surgical Innovations IMO need to come up with a strategy to cut £1.5 Million OFF the present costs of doing business


This company is a micro cap listed on AIM

It has an impressive list of Institutional investors

It needs to be driven back to profitability by controlled cost cutting measures whilst sales orders remain tight.


Look at this older video and see the size of the SI machine shop and number of different machines , many of which seem to be idle.



Imagine how much money was spent on installing these using original float monies and any early fund raises.

Imagine the replacement cost today it would be huge IMO and how old are the machines ?


IMO Surgical Innovations needs to get away from engineering production and associated manpower costs and problems eg sickness, strikes , breakdowns.

IMO SI would be better served in development, design and sales of new medical devices NOT the production of them , it is proving too costly .

[multibagger] 17/9/2019 17:23

Yes you are right Pugugly that incisional hernias are a well known complication of abdominal surgery (in general).

[bashor] 17/9/2019 15:32

Just woken up to this news in California, yes why a day earlier than we were told, still at least the price has had chance to recover whilst I’ve been sleeping, good luck to all that have bought in today, the general tone seems to suggest things can only get better, the foundations are in place and the building blocks are being delivered

[gnnmartin] 17/9/2019 11:21

buywell is right, the results were expected tomorrow.

[pugugly] 17/9/2019 11:17

multi and all - Also remember a known danger of Keyhole surgery is that the big hole for the microscope - light etc - which goes through the stomach muscles has a very significant risk of opening again some months/years later to give a hernia through which your guts pop out and can lead to loss of life (invested funds!!)

[bjfanc] 17/9/2019 11:01

Couldn't buy any volume at 1.60

[justiceforthemany] 17/9/2019 10:29

Gross profit was actually higher.

[multibagger] 17/9/2019 10:12

Pugugly - re 112

We are close to seeing a total eclipse of the SUN or another cash call - YelloPort Elite notwithstanding, though some know enough of about everything healthcare related that they can solve the manifold and conflicted problems of the NHS.

Undoubtedly, a godsend of a buying opportunity for the Blessed One !
Keyhole surgery, without the anaesthesia for rest of the long suffering SUN holders.

[mandate] 17/9/2019 09:14

@buywell3 - results of 2018 h1 were also unaudited - final, end of year 2018 results were audited

[buywell3] 17/9/2019 09:07

why have the unaudited results been published today ?

results were supposed to be tomorrow on 18th

Dexter delay is not good reading IMO

[buywell3] 17/9/2019 08:56

POST REMOVED

[multibagger] 17/9/2019 08:21

What is the share price now ?

So much for the vision of the Special One.....






buywell26 Sep '19 - 11:51 - 104 of 110
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Some negative comments on the other thread about this seeing 1.5p again


Which I think is unlikely because this company is very different to what it was then with:

a) the acquisition of Elemental Healthcare has circa doubled turnover
b) a new CEO and other new BOD's have been appointed
c) Two very good management additions recently with specific needed skills

Sure the NHS have fallen behind and cancelled operations which has adversely impacted sales of SUN products to the NHS

But that does not mean that the majority of those operations will not still go ahead
So there has been a delay in orders as I see it. The orders will still come.

Sure there seems to have been some problems and delays regarding approvals of various products

But that looks to have been addressed by the new CEO by recent new management signings , so should not happen again , and hopefully new products will soon be announced. Plus AMS are going ahead with USA approval for Fix8 made by SUN.

So it is not all doom and gloom IMO



dyor

[justiceforthemany] 17/9/2019 08:02

H2 to be better than H1 and increased NHS funding on the way.

[zipstuck] 17/9/2019 07:57

Yuk. Wonder what PER its worth

[multibagger] 17/9/2019 07:28

Looks like another profit warning unfortunately....that's how the market is likely to read it IMHO.

Excerpts from the RNS....

"The Board has reassessed its outlook for the rest of the financial year based on the continuing challenging market conditions and reduced revenue expectations, anticipating relatively modest growth in the second half of 2019 compared to the first half....."

"As a result of the reduced revenues, the Board also anticipates that adjusted operating profits will show an increase in the second half of the year, albeit significantly lower than previously expected and the business will continue to be cash generative...."

Sub 2p on the way.....despite what the bulls may say.

[mandate] 17/9/2019 07:11

Overall, I think, the half-year report is pretty positive

[justiceforthemany] 16/9/2019 16:41

Looks like the 1M share trade was indeed a buy as the ask is now 2.2p.

[jmf69] 16/9/2019 16:35

Expecting poor results but happy to be wrong

[bashor] 16/9/2019 16:13

It’s a big week

[bashor] 15/9/2019 04:22

Robotic surgery all over the NHS news today

[jmf69] 11/9/2019 17:45

Probably bgf?

[bashor] 11/9/2019 16:58

Someone wants out at any price