Latest Financial Highlights

Financial

20182017Reported
growth
Growth at
constant
currency1
Group revenue (£ million) 102.696.96%7%
Operating margin (%)27.526.0150bps –
Adjusted2 operating margin (%) 28.026.2180bps –
Profit before tax (£ million)28.425.312% –
Adjusted2 profit before tax (£ million) 28.925.414% –
Diluted earnings per share (p)10.489.3912% –
Adjusted2 diluted earnings per share (p)10.719.4613% –
Net cash inflow from operating activities (£ million)20.417.020% –
Net cash (£ million)76.462.522% –

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

  • 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 volume 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

  1. Constant currency removes the effect of currency movements by re-translating the current year’s performance at the previous year’s exchange rates
  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
  3. Net cash is defined as cash and cash equivalents plus short term investments less financial liabilities and bank loans
  4. Data supplied by Global Healthcare Exchange