14 March 2018

Advanced Medical Solutions Group plc - Unaudited Preliminary Results for the year ended 31 December 2017

 

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 2017.

Financial Highlights:

 

2017

2016

Reported growth

Growth at  constant currency1

Group revenue (£ million)

96.9

83.26

16%

12%

Adjusted2 operating margin (%)

26.2

23.7

250bps

-

Adjusted2 profit before tax (£ million)

25.4

19.7

29%

-

Profit before tax (£ million)

25.3

19.1

32%

-

Adjusted2 diluted earnings per share (p)

9.46

7.66

23%

-

Diluted earnings per share (p)

9.39

7.38

27%

-

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

21.5

22.3

(4%)

 

Net cash (£ million)4

62.5

51.1

22%

-


  • Proposed final dividend of 0.75p per share, making a total dividend for the year of 1.10p (2016: 0.92p), up 20%

Business Highlights:

  • Strong revenue growth, up 16% to £96.9 million and by 12% at constant currency
    • Branded revenues up 22% to £55.2 million (2016: £45.4 million) and by 16% at constant currency
    • OEM revenues up 10% to £41.7 million (2016: £37.8 million) and by 8% at constant currency
  • Continued strong performance from LiquiBand® topical tissue adhesives, sales up 35% to £26.0 million (2016: £19.3 million) and by 30% at constant currency
    • US revenues up 47% to £18.2 million (2016: £12.4 million) and by 40% at constant currency
    • As at 31 December 2017, market share by volume5 increased to 26% (June 2017: 24%)
  • RESORBA® branded products up 15% to £20.8 milllion (2016: £18.1 million) and by 6% at constant currency
  • Antimicrobial dressings up 11% to £19.4 million (2016: £17.5 million) and by 9% at constant currency
  • Out-licensing deal signed with Organogenesis for a collagen-based wound dressing containing Polyhexamethylene Biguanide (“PHMB”)

Outlook

2017 has seen another good performance by the Group. With our increasing portfolio of products, high quality business partners, the opportunities we see from our R&D pipeline and our strong financial position, the Board remains optimistic about our future prospects and the potential for further growth. The Group continues to trade in line with Board expectations.

 

“This has been another year of good growth across the Group and we are well positioned to take advantage of market opportunities across our product portfolio. Innovation is at the heart of our strategy and this allows us to maintain the high quality of our products that offer benefits to both patients and payors. Alongside our organic growth plan, AMS is actively reviewing M&A opportunities that will further increase value for shareholders. We look to the future with continued confidence.”

Chris Meredith

Chief Executive Officer of AMS

 

– End –

 

Note 1  Constant currency removes the effect of currency movements by re-translating the current period’s performance at the previous period’s exchange rates

Note 2  All items are shown before exceptional items which were £nil (2016: £0.4 million) and amortisation of acquired intangible assets which were £0.1 million (2016: £0.2 million) as defined in the Financial Review

Note 3  Net operating cash flow is arrived at by taking the operating profit for the period before exceptional items of £nil (2016: £0.4 million), depreciation, amortisation, working capital movements and other non cash items

Note 4  Net cash is defined as cash and cash equivalents plus short term investments less financial liabilities and bank loans

Note 5  Data supplied by Global Healthcare Exchange

Note 6 2016 Revenue restated by £0.7 million (2016: £0.6 million) as a result of adoption of IFRS 15 (Revenue from Contracts with Customers)

 

 

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

 

Advanced Medical Solutions Group plc

Tel: +44 (0) 1606 545508

Chris Meredith, Chief Executive Officer

Mary Tavener, Chief Financial Officer

 

 

 

Consilium Strategic Communications

Tel: +44 (0) 20 3709 5700

Mary-Jane Elliott / Matthew Neal / Philippa Gardner

 

 

 

Investec Bank PLC (NOMAD & Broker)

Tel: +44 (0) 20 7597 5970

Daniel Adams / Patrick Robb / Gary Clarence

 

 

About Advanced Medical Solutions Group plc – see www.admedsol.com

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

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 75 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 Group has approximately 600 employees.  For more information, please see www.admedsol.com.

 

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