GYG Gyg Plc

RNS Number:8154A
Gyrus Group PLC
14 July 2004

14 July 2004

Gyrus Group PLC

                           Pre-Close Period Statement


Reading, UK - Gyrus Group (GYG.L) a leading supplier of medical devices which
reduce trauma and complications in surgery, today provides a pre-close period
update ahead of its interim results for the six months ended 30th June 2004.

In the six months to 30th June 2004, Gyrus delivered strong sales growth with
sterling revenues up 14% to over #42 million (H1 2003: #37.3 million). On a
constant currency basis this represents revenue growth in excess of 25%.  The
Group's profit before tax and amortisation of goodwill ("PBTA") is expected to
be in line with market expectations. Additionally, the Group continued to be
strongly cash generative during the period with net debt reducing substantially
from the year-end position.

The Group's broad portfolio of businesses has delivered this revenue growth with
strong trading in both the Surgical and Partnered Technologies Divisions driven
by Gyrus' proprietary Plasmakinetic products.  This performance has offset lower
growth in the ENT Division.

New products, introduced last year, have sold well in the first half.  In
particular, SuperPulse and Open Forceps have grown strongly for the Surgical
Division.  The VAPR3(TM) (DePuy Mitek) arthroscopy system has contributed to an
exceptional performance in the Partnered Technologies Division, and Diego and
Fasterplasty performed well in the ENT Division.  Within ENT, whilst RetroX has
delivered on clinical outcomes, the importance of the audiologist in prescribing
the product has proved to be a challenge for the Division's predominantly
surgeon-focused sales force. Accordingly complementary approaches to the
marketing of the processor element of this product are being actively developed.

The first half of 2004 has seen the Group reinforce and develop its position in
the surgical market and roll out certain operational improvement initiatives.
These include "lean manufacturing" initiated in the Surgical Division with
progressive roll-out through the Group over the next 18 months. Programmes are
now in place to rationalise further the ENT Division in order to improve its
profitability over a similar timeframe.

The Group continues to invest in R&D, both internally and through in-licensing,
with new product developments progressing well.   An example of this is the
forthcoming Head and Neck surgery workstation incorporating the Group's new
proprietary PlasmaCision(R) technology which could have significant utility in
many procedures, particularly the removal of tonsils and adenoids. This product
is on target for release at the end of the year.

Gyrus' interim results will be announced on 21st September.

Brian Steer, Executive Chairman of Gyrus said:

"To have delivered excellent underlying sales growth and cash generation is
evidence of the strength of the Group's portfolio and allows us to continue to
lay sound R&D foundations for our future growth."

                                     -Ends-

Enquiries:

Gyrus Group PLC
Brian Steer, Executive Chairman                                    01189 219 750
Simon Shaw, Chief Financial Officer               today            07739 807 625
                                                  Thereafter       01189 219 750

Financial Dynamics
Ben Atwell                                                         020 7831 3113
Lucy Briggs


                      This information is provided by RNS
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