Half-year Results

Surgical Innovations Group plc (AIM: SUN), the designer, manufacturer and distributor of innovative medical technology for minimally invasive surgery, reports its unaudited financial results for the six-month period ended 30 June 2026 (“H1 2026”).

Financial Highlights

Revenues broadly flat versus prior year to £6.02m (H1 2025: £6.15m)

Gross profit margin of 29.0% (FY 2025: 26.3%; H1 2025: 31.2%).

Adjusted EBITDA 1 profit of £0.03m (H1 2025: profit £0.37m)

Net debt 2 at end of period of £0.3m with headroom of £0.2m under the invoice financing facility (as at 31 Dec 2025: £0.3m and £0.1m headroom under the invoice financing facility) Remaining CBILS debt repaid in full

Adjusted EBITDA, adjusted operating profit/loss) before tax and Adjusted EPS are stated before deducting non-recurring/ exceptional items

Net debt equals cash less bank debt only

Commercial and Operational Highlights

Distribution revenue increased to £1.94m, driven by the Aspen portfolio, new third-party products and investment in the rebuilt UK sales team.

APAC revenue increased by 29% to £0.62m, driven by continued strength in Japan, with positive momentum expected to continue into H2.

Original Equipment Manufacturer (“OEM”) revenue increased by 5% to £1.00m despite supply challenges, underpinned by the Group’s growing relationship with STERIS.

Gross margin improved to 29% compared with FY 2025, supported by cost-down initiatives and operational efficiencies, although sales mix and manufacturing absorption remained a challenge in the period.

MDR certification, UKCA and MDSAP audits were completed, enabling greater management focus on product development, operational improvement and international growth opportunities.

Current Trading and Outlook

Trading headwinds experienced in H1 2026 are expected to persist in certain markets, most notably the United States, where tariff impacts are unlikely to ease significantly in the near term.

Investment in the sales team is beginning to generate encouraging opportunities in the UK market.

The introduction of new third-party products in 2025 will support a return to growth in H2 2026.

The Company’s sustainability proposition continues to resonate across key markets as customers place greater emphasis on environmental impact and sustainable procurement.

Progress across the Distribution, OEM and international businesses supports the Board’s confidence in the Company’s prospects for the remainder of 2026.

The Company has adequate cash resources and invoice financing facility to continue to operate for the foreseeable future.

Roy Davis, Chairman of Surgical Innovations Group Plc, said:

“I am pleased to report a resilient performance for the first half of 2026, with revenue of £6.02 million despite a challenging trading environment. The continued growth in our Distribution and OEM businesses, together with particularly strong performance in APAC and the ongoing development of our international markets, demonstrates the increasing diversity and underlying strength of the Group.

“A major achievement during the period was the successful completion of our transition to the Medical Device Regulation. This has been a significant programme requiring considerable investment, management focus and resource over recent years, and its completion marks an important milestone for the Company. It allows our Compliance, R&D and Production Engineering teams to redirect their capacity towards innovation, operational efficiency and commercial growth. The successful completion of our UKCA and MDSAP audits further strengthens our regulatory position and international growth platform.

“We are also seeing encouraging progress from our investment in the sales team and the introduction of new products, while our sustainability proposition continues to resonate strongly with customers and creates new opportunities. Although we expect some of the external headwinds, particularly US tariffs, to persist during the second half, we remain confident in the outlook for the business. With an increasingly diversified revenue base, a growing OEM and Distribution platform, continued international expansion and a new product pipeline, we believe the Company is well positioned to deliver sustainable growth and create long-term value for shareholders.”

“Post year end, we were delighted to welcome Alex Warnock on board as our new CEO, and we look forward to him leading the Surgical Innovations team. He has been instrumental in developing industry-leading products in his past roles and has a track record of delivery. Alex brings significant commercial and operational expertise to the business including successful new product launches. We believe Alex has the right skillset to execute on our future plans and deliver long term value to shareholders.”

Investor briefing

David Marsh, Chief Executive Officer, and David Anderson, Chief Financial Officer, will provide a live presentation relating to the interim results via the Investor Meet Company platform on Wednesday 30th September 2026 at 2.15p.m. BST.

The presentation is open to all existing and potential shareholders. Investors can sign up to Investor Meet Company for free and add to meet Surgical Innovations Group plc via: https://www.investormeetcompany.com/surgical-innovations-group-plc/register-investor

Investors who already follow Surgical Innovations Group plc on the Investor Meet Company platform will automatically be invited.

Operations

The Group currently employs 93 people across one site in Leeds in the UK. Elemental was acquired by the Group on 1 August 2017 and provides direct sales representation in the UK home market and a range of third-party products for UK distribution.

Trading in the first half of the year was broadly flat at £6.02m (H1 2025: £6.15m). Underlying sales in Europe declined in H1 2026, with revenue of £1.00m (H1 2025: £1.26m) primarily due to the transition between distribution partners in two key markets. Prior to the transition, the outgoing distributors had built up significant inventory levels, which have taken longer than anticipated to be absorbed. As a result, orders from the Company’s new distribution partners have been temporarily constrained while existing inventory is worked through. Encouragingly, the new distribution partners are now making rapid progress, with inventory levels normalising and market development activities gaining momentum. The Company expects the benefits of these new partnerships to become increasingly evident during the second half of the year, with the European region expected to return to growth in H2 2026. This temporary disruption is therefore viewed as a transitional effect rather than a reflection of underlying demand for the Company's products.

In the United States, sales in H1 2026 were £0.38m (H1 2025: £0.41m). The modest decline reflects the continuing impact of US tariffs, together with the temporary disruption associated with the relocation of a key distributor’s warehouse. Sales have now normalised following the warehouse transition, although the shortfall incurred during the first half is not expected to be recovered during 2026. Tariff-related costs and their impact on market opportunities are expected to remain a headwind during H2 2026 and may continue to constrain growth in the near term. The Company is actively exploring additional routes to market and alternative distribution opportunities in the US. While these initiatives are not expected to make a material contribution to 2026 revenues, they provide potential avenues for future growth and greater market penetration.

The APAC region delivered strong growth in H1 2026, with revenues increasing by 29% to £0.62m (H1 2025: £0.48m). The performance was driven primarily by the continued strength of the Company’s business in Japan, where demand remains robust and the market continues to represent an important growth opportunity. The Company expects this positive momentum to continue into H2 2026, supporting further growth across the region.

Despite challenging market conditions for Elemental Healthcare, including ongoing NHS industrial action, H1 2026 sales were broadly flat at £2.75m, (H1 2025: £2.80m). . Distribution product sales remained particularly strong, increasing to £1.94m from £1.70m in H1 2025. Encouragingly, the rebuilt UK sales team is beginning to generate an increasing number of opportunities, which are expected to contribute to growth in H2 2026 and beyond. Further support is expected from the implementation of the new NHS Supply Chain MIS 3 framework agreement and associated pricing changes, which became effective in August 2026.

Rest of World (“ROW”) revenues increased 15% to £0.27m in H1 2026 (H1 2025: £0.23m). While this represents a positive year-on-year performance, the stronger growth anticipated at the start of the period has been impacted by the ongoing conflict in the Middle East, which has delayed both tender activity and trading with established customers in Israel. Elsewhere in the region, performance remains encouraging, with Canada continuing to deliver strong growth and providing a positive contribution to the overall development of the ROW business.

OEM revenues increased 5% to £1.00m in H1 2026, (H1 2025: £0.95m) in H1 2025. This performance was achieved despite ongoing supply challenges affecting a key component supplied by one of the Company’s OEM partners. The continued growth in OEM revenues demonstrates the resilience of the business and, in particular, the strength of the growing relationship with STERIS, which continues to provide an important platform for future OEM growth.

Commercial or underlying margins of 34.3% is similar to the prior period at 34.1% and slightly higher than FY 2025 at 33.7%. The reported gross margin of 29.0%, which includes the net cost of manufacturing, is below that of 2025 H1 but has improved by 2.7% on the FY 2025 margins. Sales mix within the International business is creating some margin headwinds, albeit is mostly offset by ongoing operational efficiencies.

The business has seen limited prices increases year over year but several increases will come into effect in H2 2026.

Other operating expenses increased to £1.98m (H1 2025: £1.86m), as the business has invested in its sales and marketing team, which now comprises a team of 15 (31 December 2025: 15).

The Group generated an adjusted EBITDA profit for the period of £0.03m (H1 2025: profit £0.37m).

For the first half of 2026, cash generated from operations was £0.22m (FY 2025: £0.59m, H1 2025: used in (£0.20m)). In the period the company repaid the final balance of the CBILS debt of £0.15m.

The Directors have considered the available cash resources and existing invoice financing facilities of the Group and the current internal anticipated forecasts and have a reasonable expectation that the Group have adequate resources to operate for the foreseeable future.

Market Outlook

In the United States, performance is expected to remain constrained in the near term as the impact of tariffs persists and the development of new routes to market continues to present challenges. In contrast, the UK and European business is well positioned to capitalise on emerging opportunities, with increased investment in rebuilding the sales team. Strong like for like growth in the UK for Distribution products achieved in H1 2026 is expected to continue, with further benefits anticipated from increased pricing following the implementation of the new NHS Supply Chain MIS 3 framework agreement in August. In Japan, the strong partnership remains on track to deliver a record year, further demonstrating the resilience and growing strength of the business across its key international markets.

The Company continues to make good progress in its programme of operational efficiency and product development. The first cost-reduction initiatives on key YelloPort devices were implemented in Q1 2026, with the resulting margin benefits expected to build progressively throughout the year. Further cost-down initiatives are planned during H2 2026, supporting the Company's objective of delivering sustained margin improvement alongside revenue growth.

Building on the successful international rollout of Logitube, the Company is preparing for the launch of the illuminated Logitube Lux in mid-Q4 2026, which is expected to create new market opportunities and further broaden the product portfolio. Additional products are also scheduled for launch in Q4 2026, including Logi Dissect and Logi Grasp, completing the core Logi range of instruments. In addition, the planned launch of the YelloPort Balloon Port, incorporating advanced port fixation technology, will further strengthen and broaden the Company's YelloPort product range. Together, these initiatives represent a significant programme of product innovation and operational improvement, providing the Company with an increasingly competitive product portfolio and a strong platform for future growth and margin expansion.

The successful transition to the Medical Device Regulation (“MDR”) has been a key priority for the Company and has required significant investment, management focus and resource over recent years. We are pleased to confirm that the Company has now successfully achieved MDR certification, marking a major milestone in the development of the business. The Company’s Quality Management System, technical documentation and supporting microbiology data have been brought into full MDR compliance and the final technical file covering the Logi range, which had remained outstanding, has now been recommended certified, completing the final element of the Company’s MDR transition.

Achieving MDR is an important regulatory achievement and a significant enabler for the next phase of the Company's growth strategy. It represents the culmination of a substantial programme of work and removes a major regulatory and operational constraint that has required considerable capacity from the Compliance, R&D and Production Engineering teams.

With this programme now completed, these resources can increasingly be redirected towards new product development, operational efficiency, manufacturing improvements and commercial growth.

In parallel, the Company has successfully completed the key audits required for UKCA and the Medical Device Single Audit Program (“MDSAP”), further strengthening its regulatory position and supporting access to international markets.

Current Trading and Outlook

The trading headwinds experienced in H1 2026 are expected to persist in certain markets, most notably the United States, where the impact of tariffs is unlikely to ease significantly in the near term. Despite these challenges, the Company is seeing encouraging signs from its investment in the sales team and the introduction of new third-party products, which are beginning to generate the anticipated opportunities in the UK market.

The Company continues to benefit from the increasing resonance of its sustainability proposition across key markets. As customers place greater emphasis on environmental impact and sustainable procurement, this is creating additional opportunities to differentiate the Company’s offering and drive future growth. Combined with the progress being made across the Distribution, OEM and international businesses, the Board remains confident in the underlying potential of the business and its prospects for the remainder of 2026.

Roy Davis

Chairman

Unaudited consolidated statement of comprehensive income for the six months ended 30 June 2026

* Adjusted EBITDA is earnings before interest, depreciation, amortisation, impairment and exceptional items.

Unaudited consolidated statement of changes in equity for the six months ended 30 June 2026

Unaudited consolidated cash flow statement for the six months ended 30 June 2026

Notes to the Interim Financial Information

Basis of preparation of interim financial information

The interim financial information was approved by the Board of Directors on 29 September 2026. The financial information set out in the interim report is unaudited.

The interim financial information has been prepared in accordance with the AIM Rules for Companies and on a basis consistent with the accounting policies and methods of computation as published by the Group in its annual report for the year ended 31 December 2025, which is available on the Group’s website.

The Group has chosen not to adopt IAS 34 Interim Financial Statements in preparing these interim financial state- ments and therefore the interim financial information is not in full compliance with International Financial Re- porting Standards as adopted for use in the European Union.

The financial information set out in this interim report does not constitute statutory financial statements as de- fined in section 434 of the Companies Act 2006. The figures for the year ended 31 December 2025 have been extracted from the statutory financial statements which have been filed with the Registrar of Companies. The auditor’s report on those financial statements was unqualified and did not contain a statement under sections 498(2) and 498(3) of the Companies Act 2006.

Going concern and funding

The Directors have considered the available cash resources and existing invoice financing facilities of the Group and the current internal anticipated forecasts and have a reasonable expectation that the Group have adequate resources to operate for the foreseeable

Disaggregation of gross margin

Underlying gross margin (excluding net costs of manufacturing) is an adjusted KPI measure. Nets costs of manufacturing are overheads that have not been effectively absorbed due to reduced productivity.

Adjusted KPIs are used by the Board to understand underlying performance and exclude items which distort comparability. The method of adjustments is consistently applied but are not defined in International Financial Reporting Standards (IFRS) and, therefore, are considered to be non-GAAP (Generally Accepted Accounting Principles) measures. Accordingly, the relevant IFRS measures are also presented where appropriate.

Disaggregation of revenue

Revenues are allocated geographically on the basis of where revenues were received from and not from the ultimate final destination of use.

Finance Costs

Taxation

Current taxation

There was no reported tax charge / (credit) in the period.

Deferred taxation

Overall, the Group continues to hold substantial tax losses on which it holds a cautious view and consequently the Group has chosen not to recognise those losses fully.

Earnings per share

Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of shares in issue. Diluted earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the diluted weighted average number of shares in issue.

The anti-dilutive effect of unexercised shares options has not been taken into account and therefore the diluted earnings per share is equal to the basic earnings per share.

Leases

Impact on the statement of financial position

Current and non-current bank borrowings relate to CBILS which was repaid in May 2026. Interest was calculated at a rate of 2.94% repayable monthly over the Bank of England base rate.

Invoice Financing Facility of £1.0m across the Group, with 2.5% margin with a maximum nominal administration fee of £0.018m if not utilised.

Trade and other receivables