Nephew on rise as NHS ups orders

INCREASED Government spending on the NHS last year meant hospitals ordered about 10% more medical products from Smith & Nephew.

Chris O'Donnell, chief executive of the maker of artificial limbs and operating theatre equipment, said: 'Last year was really the first year we noticed the spending increase. In general terms, we think it will continue this year.'

An increase in the number of operations such as hip and knee replacements was responsible for the sudden growth in UK sales, which was double the trend of 5% growth for several years previously.

S&N has developed a new knee replacement made from oxidised zirconium, which proved a powerful driver of sales in the year to 31 December. The group's researchers are working on using the super-tough material for other artificial limbs.

Underlying operating profits were £171m, against £143.9m a year earlier.