13 March 2019

Unaudited Preliminary Results for the year ended 31 December 2018

 

 Continued good growth with delivery on strategy and market expectation

 

Winsford, UK: Advanced Medical Solutions Group plc (AIM: AMS), the surgical and advanced woundcare specialist company, today announces its unaudited preliminary results for the year ended 31 December 2018.

 

 

Financial Highlights:

 

 

2018

2017

Reported growth

Growth at  constant currency ¹

Group revenue (£ million)

102.6

96.9

6%

7%

Operating margin (%)

27.5

26.0

150bps

-

Adjusted² operating margin (%)

28.0

26.2

180bps

-

Profit before tax (£ million)

28.4

25.3

12%

-

Adjusted² profit before tax (£ million)

28.9

25.4

14%

-

Diluted earnings per share (p)

10.48

9.39

12%

-

Adjusted² diluted earnings per share (p)

10.71

9.46

13%

-

Net cash inflow from operating activities (£ million)

20.4

17.0

20%

 

Net cash3 (£ million)

76.4

62.5

22%

-

 

Proposed final dividend of 0.90p per share, making a total dividend for the year of 1.32p per share (2017: 1.10p), up 20%.

 

Business Highlights (including post-period end):

  • Revenues up 6% to £102.6 million and by 7% at constant currency
    • Branded revenues up 12% to £62.1 million (2017: £55.2 million) and by 13% at constant currency
    • OEM revenues down 3% to £40.5 million (2017: £41.7 million) and by 2% at constant currency
  • Adjusted operating margin up 180bps to 28.0% (2017: 26.2%).
  • Adjusted profit before tax up 14% to £28.9 million (2017: £25.4 million).
  • Continued strong performance from LiquiBand® topical tissue adhesives, sales up 22% to £31.7 million (2017: £26.0 million) and by 24% at constant currency
    • US revenues up 26% to £23.0 million (2017: £18.2 million) and by 30% at constant currency
    • Market share by volume4 increased by 2% during the year
  • Strong growth in Internal Adhesives, following the relaunch of LiquiBand® Fix 8™ laparoscopic in Q2 and the soft launch of the open device in Q4. Sales increased 21% to £2.1 milllion (2017: £1.7 million) and by 21% at constant currency
  • Sales of collagens and other biosurgical devices increased by 8% to £8.6 milllion (2017: £8.0 million) and by 6% at constant currency
  • Sales of sutures were impacted by regulatory challenges, up 1% at reported and constant currency to £13.3 milllion (2017: £13.1 million)
  • Antimicrobial dressings up 1% to £19.6 million (2017: £19.4 million) and by 2% at constant currency
  • After the period end, in January 2019, AMS announced the acquisition of Sealantis Limited (“Sealantis”) for $US 25 million (approximately £19 million) in cash with royalties due on product sales until 2027
    • Innovative technology platform and products to enter $US1 billion internal sealants market
    • First product expected in the European market in H1 2021; multiple potential additional sealant products
  • Appointment of Eddie Johnson as CFO and Board Director on 1 January 2019 following the retirement of Mary Tavener following 19 years of service

 

 

 

Outlook

 

The Group made good progress in the year, with new products strengthening the portfolio and the acquistion of Sealantis enabling us to drive towards unlocking further new growth from the US$1 billion internal sealants market in the short to medium term. The product portfolio was strengthened with four launches in Q4 and the Group is well prepared to navigate the increasingly challenging regulatory environment for medical device companies. The Group continues with its previously outlined long-term growth strategy and objectives and trading in the current financial year has begun in line with the Board’s expectations.  The Board remains optimistic about AMS’s future growth prospects.

 

“2018 was AMS’s 17th consecutive year of growth with strong financial and strategic progress across the Group. Our solid revenue growth was driven by sales in our Branded division which included LiquiBand® topical tissue adhesives further increasing market share a further 2%, and the growth of our Internal Adhesives and Biosurgical devices. We have further reaffirmed our commitment to innovation through the acquisition of Sealantis which now opens up the large internal sealants market for the Group. We are well positioned to take advantage of market opportunities across our product portfolio, and we continue to actively review M&A opportunities.”

Chris Meredith

Chief Executive Officer of AMS

– End –

 

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

Note 2  All items are shown before exceptional items which were £0.4 million (2017: £nil) and amortisation of acquired intangible assets which were £0.1 million (2017: £0.1 million) as defined in the Financial Review

Note 3  Net cash is defined as cash and cash equivalents plus short term investments less financial liabilities and bank loans

Note 4  Data supplied by Global Healthcare Exchange

 

 

 

 

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

Eddie Johnson, Chief Financial Officer

 

 

 

Consilium Strategic Communications

Tel: +44 (0) 20 3709 5700

Mary-Jane Elliott / Matthew Neal / Nicholas Brown / Olivia Manser

 

 

 

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 and woundcare markets, focused on quality outcomes for patients and value for payors. AMS has a wide range of products that include tissue adhesives, sutures, biosurgical devices, internal sealants, silver alginates, alginates and foams, which it markets under its brands; LiquiBand®, LiquiBand® Fix 8™, RESORBA® and ActivHeal® 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 630 employees.  For more information, please see www.admedsol.com.

*Please see PDF for the full press release here*


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