Continued growth and a maiden interim profit

The Board of Sutherland Health Group plc ("Sutherland Health Group" or "the Company"), announces today its unaudited Interim Results for the six month period to 30 September 2009.

                                                                                                                                      16 NOVEMBER 2009
                                                        SUTHERLAND HEALTH GROUP PLC
                                                                       (PLUS: SHGP)


                                                                    INTERIM RESULTS


                                                 Continued growth and a maiden interim profit


The Board of Sutherland Health Group plc ("Sutherland Health Group" or "the Company"), a national supplier of patient hygiene, sexual health and diagnostic products to customers including the National Health Service ("NHS"), announces today its unaudited Interim Results for the six month period to 30 September 2009.


FINANCIAL HIGHLIGHTS:
 

• Sales growth of 14.4% in the six month period April to September
compared to same period last year;
• Gross Profit up 20.0%;
• Gross Margin improves from 48.8% to 51.2%; and
• The Company achieves a maiden interim profit.


OPERATIONAL HIGHLIGHTS:


• Condomania® wins contract to supply Reading, West Berkshire, and
Wokingham Councils along with NHS West Berkshire;
• Condomania® awarded a Framework Agreement to supply 100% of its
products to NHS England until March 2011; and
• Placing closed having raised £456,530 for working capital.


Commenting on today's Interim Results, Chairman, John French, said:
 

“I am delighted to report that we have reached the important milestone of delivering a maiden interim profit. The Company has shown consistent growth in customers and in their interest in the range of products that we have developed. We look forward to updating shareholders on further new developments that should see our current growth trend continue”


CHAIRMAN'S STATEMENT


FINANCIAL REVIEW


With additional new customers having been added to NHS Contracts the Company’s performance continues to improve.


For the six months to 30 September 2009, the Company's turnover was GBP469,089 up 14.4.% (2008: GBP409,850) producing a gross profit of GBP240,383 up 20.0% (2008: GBP200,206). Gross margin for the current financial year has also improved, now 51.1% (2008: 48.8%) Administrative expenses were down 9.2% at GBP197,163 (2008: GBP217,148). The pre-tax profit was GBP7,245 (2008: Loss GBP57,821) and the profit per ordinary share was 0.014 pence (2008: Loss 0.14 pence).


Shareholders should note that due to both the nature of the sectors we operate in and that of our business, turnover for Sutherland Health Group remains weighted to the second half of the financial year.


OVERVIEW

Despite a difficult economic climate in the last 6 months we have continued to build our customer base and the Company has experienced good growth in several areas of our business.


The fastest growth area of our business currently is the Sutherland® Patient Hygiene range which has seen strong demand across all products as NHS Hospitals continue to work at reducing the risk of cross infection on the wards.


The Condomania® condom range has during this period been awarded a further Framework Agreement Contract with NHS England that will see 100% of its product range being made available until March 2011.


We are pleased that we have been successful in winning a contract to supply Reading, West Berkshire, and Wokingham Councils along with NHS West Berkshire under their new C-Card Scheme. This scheme aims to improve access to sexual health education and condoms for the young people in those areas,
and we are delighted to play our part in making that happen.


FUND RAISING


The Company closed its placing during the period having raised £106,000 in Convertible Loan Notes and £350,530 by placing new ordinary shares at 2p, giving a total of £456,530 for working capital.


DIRECTOR DEALING

During this interim period Chief Executive George Sutherland purchased 50,000 shares at 2.65p, and I purchased 25,000 shares at 2.5p. Bo on the 10th September 2009, and were reported to the market on the 11th September 2009.


STRATEGY

It is our opinion that our strategy of working closely with health professionals to develop products that are needed or required within the NHS has been successful, and as we continue to grow our presence in the NHS, further market and new product opportunities are being presented to us to work on or consider.


NEW PRODUCTS

Two new products that we have been discussing with the NHS, are now close to final stages in preparation. We consider that these new products will further strengthen our sexual health business and will increase our interest in the area of point of care diagnostics.


We look forward to updating shareholders on these new products and further new developments as and when we are able to do so.


JOHN FRENCH
CHAIRMAN


Sutherland Health Group plc
Unaudited profit and loss account
For the six months to 30 September 2009
                                                                                                                  Unaudited   Unaudited    Audited
                                                                                                                            GBP             GBP         GBP
                                                                                                                 Six months  Six months       Year
                                                                                                                         Ended          Ended      Ended
                                                                                                                   30.09.09     30.09.08  31.03.09


Turnover                                                                                                        469,089       409,850    903,842


Cost of Sales                                                                                                  228,706      209,644    480,051


Gross Profitm                                                                                                 240,383       200,206    423,791


Distribution costs                                                                                             27,184        27,939       52,934


Administrative expenses                                                                                197,163      217,148     435,221


Other operating income                                                                                     3,210           5,219      13,840


Operating Profit / (Loss)                                                                                  19,246       (39,662)   (50,524)


Net Interest                                                                                                  (12,001)      (18,159)     (31,388)


Profit / (Loss) on Ordinary Activities b/f tax                                                      7,245       (57,821)     (81,912)


Tax on loss on Ordinary Activities                                                                            -                  -                 -

Profit / (Loss) for the period                                                                            7,245        (57,821)     (81,912)


Earnings per share                                                                                       0.014p          (0.14p)       (0.18p)

 


There were no recognised gains or losses other than the profit for the financial period.


The above interim results have not been reviewed by the Company’s auditor.


The Directors of the Issuer accept responsibility for this announcement.


Enquiries:

John French, Chairman
Sutherland Health Group plc
E: john@sutherlandhealth.com
T: 07836 722 482


Bridge Hall
E: corpfin@bridgehall.co.uk
T: 020 7337 9705

Notes to Editors:

Sutherland Health Group Plc is a national supplier of patient hygiene,sexual health and diagnostic products to the UK National Health Service (NHS) and other UK customers. Its aim is to supply innovative solutions to current health issues by studying current trends and working alongside leading professionals who also work within the health sector.


The company is committed to developing and marketing high quality brands and products that will benefit health professionals and consumers alike in many areas of health. The Group has established its own brands Condomania® Condoms, Sutherland® Lubricating Jelly and Vision® pregnancy diagnostics that have already become established within the NHS business.


The Company has also developed the Sutherland® patient hygiene range which is now on contract with NHS England and NHS Northern Ireland that can reduce the risk to patients of cross infection.


The Group is ISO and MHRA registered, and at present principally operates within the United Kingdom.


For further information on the Company visit www.sutherlandhealth.com

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