14 March 2017

Advanced Medical Solutions Group plc - Unaudited preliminary Results for the year ended 31 December 2016


Strong organic growth and innovation pipeline delivering

Winsford, UK: Advanced Medical Solutions Group plc (AIM: AMS), the surgical and advanced wound care specialist company, today announces its unaudited preliminary results for the year ended 31 December 2016.

Financial highlights

 

 

2016

2015

Reported

growth

Growth at

constant currency1

Group revenue (£ million)

   

20%

13%

Adjusted2 operating margin (%)

   

(150bps)

-

Adjusted2 profit before tax (£ million)

   

13%

-

Profit before tax (£ million)

   

12%

-

Adjusted2 diluted earnings per share (p)

   

12%

-

Diluted earnings per share (p)

   

10%

-

Net operating cash flow3 pre-exceptional items (£ million)

   

(1%)

 

Net cash (£ million)4

   

49%

-


  • Proposed final dividend of 0.62p per share, making a total dividend for the year of 0.92p (2015: 0.80p), up 15%

Business highlights:

  • Good sales progress across all Business Units:
    • Branded Distributed up 42% to £20.8 million (2015: £14.6 million), and up 30% at constant currency
    • Branded Direct up 10% to £24.6 million (2015: £22.3 million), and up 3% at constant currency
    • OEM up 16% to £32.1 million (2015: £27.7 million), and up 12% at constant currency
    • Bulk Materials up 33% to £5.2 million (2015: £3.9 million), and up 21% at constant currency
  • Continued strong performance in the US with LiquiBand® tissue adhesive range:
    • Revenues up 56% to £12.5 million (2015: £8.0 million) and 39% at constant currency
    • As at 31 December 2016, market share by volume5 increased to 23% (June 2016: 19%) and initial 20% target share achieved in the combined hospital and non-hospital market
  • Successful launch of antimicrobial and atraumatic foam dressings into Europe
  • Antimicrobial dressing revenues including both silver and PHMB (Polyhexamethylene Biguanide) up 13% to £17.5 million (2015: £15.5 million) and 9% at constant currency
  • Sales of the hernia mesh fixation device, LiquiBand® Fix8™ increased 73% to £1.7 million (2016: £1.0 million), 68% at constant currency, and is in use in 25 countries; now preparing for Pre Market Approval (PMA) in US
  • German and Czech RESORBA® business up 15% to £13.1 million (2015: £11.3 million) and 4% at constant currency
  • Successful launch of RESORBA® sutures into the US  
  • ActivHeal® business declined 5% to £6.0 million (2015: £6.4 million) 

“2016 was the twelfth consecutive year of solid revenue growth for AMS and during the period all Business Units performed well resulting in increased profit and continued strong cash generation. Our LiquiBand® products continue to perform well in the US and we now have captured more than 20% of the market with a target to achieve a further 10% share gain in the next three years. Our strategy for organic growth is to continue to expand into new geographies through further regulatory approvals, increase our distribution of surgical products through both our direct and distributed routes and launch further high quality products from our R&D pipeline that add value to payors and patients.”

Chris Meredith

Chief Executive Officer of AMS
  1. Constant currency removes the effect of currency movements by re-translating the current period’s performance at the previous period’s exchange rates
  2. All items are shown before exceptional items which were £0.4 million (2015: £nil) and amortisation of acquired intangible assets which, in 2016, were £0.2 million (2015: £0.4 million) as defined in the financial review
  3. Operating cash flow is arrived at by taking the operating profit for the period before exceptional items of £0.4 million (2015: £nil), depreciation, amortisation, working capital movements and other non cash items
  4. Net cash is defined as cash and cash equivalents plus short term investments less financial liabilities and bank loans
  5. Data supplied by Global Healthcare Exchange 

For further information, please visit www.admedsol.com or contact: 

Advanced Medical Solutions Group plc

Chris Meredith, Chief Executive Officer

Mary Tavener, Chief Finance Officer

Tel: +44 (0) 1606 545508

Consilium Strategic Communications

Mary-Jane Elliott / Jonathan Birt / Matthew Neal / Hendrik Thys

Tel: +44 (0) 20 3709 5700

Investec Bank PLC (NOMAD & Broker)

Daniel Adams / Patrick Robb

Tel: +44 (0) 20 7597 5970

About advanced medical solutions group plc

AMS is a world-leading independent developer and manufacturer of innovative and technologically advanced products for the global surgical and wound care markets, focused on quality outcomes for patients and value for payors. AMS has a wide range of wound care products that include silver alginates, alginates, foams, tissue adhesives, sutures and haemostats, which it sells under white label as well as its own brand ActivHeal®, and surgical tissue adhesives, sutures and haemostats, which markets under its own brands; LiquiBand® and RESORBA®.

AMS's products, manufactured out of two sites in the UK, one in the Netherlands, two in Germany and one in the Czech Republic, are sold in more than 70 countries via a network of multinational or regional partners and distributors, as well as via AMS's own direct sales forces in the UK, Germany, the Czech Republic and Russia.  Established in 1991, the Company has 600 employees.  For more information, please see www.admedsol.com

*** For full results statement see attached pdf document ***

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