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By John Harrington

Date: Thursday 28 Aug 2008

LONDON (ShareCast) - Orthopaedic devices manufacturer Corin put its best foot forward as it announced sharp increases in sales and underlying profits.

Sales rose 63%, or 55% on a constant currency basis, to £22.9m in the first half of 2008 from £14m a year earlier, reflecting the roll-out of its Cormet hip resurfacing system in the USA.

Underlying pre-tax profit, which excludes exceptional items, more than tripled to £3.7m from £1.2m. As reported pre-tax profit grew from £1.2m to £1.8m.

The management has concluded a strategic review of the group’s operations and has decided to pursue a more balanced strategy, focusing on urther development of the group's leading technologies and products in metal-on-metal hips and mobile bearing knees, development of a comprehensive hip and knee implant product portfolio and increased investment in sales teams in key geographic areas.

The medium term target of the new strategy is to achieve long-lasting double-digit sales growth and margin enhancement.

As a result of the new strategic focus, the company will discontinue a number of older or non-core products. This will have only a small effect on sales but will entail a significant write-off of unsold stock.

Trading at the start of the second half of the year has been in line with expectations although, as previously announced, sales of Cormet in the USA are growing more slowly than originally envisaged and are likely to be lower in 2009 than in 2008.

The interim dividend has been retained at 0.48p.

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