Gyrus in good health
Medical devices group Gyrus forecast significant sales growth today after integrating two key acquisitions faster than expected.
The Cardiff-based company staged a £100m share placing in May to finance its expansion into the head and neck surgery market.
Smith & Nephew’s US-based ear, nose and throat business - maker of surgical products such as middle ear implants - and head and neck devices specialist Somnus Medical Technologies were the targets.
Gyrus, whose products include bladeless scalpels that cut using radio frequency energy, said the acquisitions had helped meet its strategic objective of entering the head and neck surgery market.
The two new businesses were added to the group on June 5 and still contributed £2.9m to turnover of £17.2m in the six months to June 30.
Excluding the acquisitions, the remaining core business still grew revenues by 70% to £14.3m over the period.
Brian Steer, chairman, said: ‘‘Through a combination of both acquisitions and growth of the core business we continue to grow at a very fast pace.
‘‘The investment we have made and continue to make in both research and development and sales and marketing will enable us to achieve our sales growth expectations throughout the second half and into 2002.’’
Gyrus recorded an overall loss of £3.2m, compared with £1.7m a year earlier, as the group increased investment in research and development and on promotional support of new products.
The cost of integrating the new businesses also played a part in the loss, Gyrus added.
