12 January 2021
Advanced Medical Solutions Group plc
(“AMS” or the “Group”)
Year End Trading Update
Winsford, UK – 12 January 2021: Advanced Medical Solutions Group plc (AIM: AMS), the surgical and advanced woundcare specialist company, today announces a trading update for the year ended 31 December 2020. The Group intends to publish its preliminary results for the year ended 31 December 2020 on 17 March 2021.
AMS announces that FY 2020 trading has been in line with previously issued guidance. Adjusted profit before tax is expected to be slightly ahead of consensus market forecasts and revenue is expected to be slightly below consensus market forecasts at approximately £86.5 million.
Despite the challenges presented by the pandemic, AMS met the demand of its healthcare partners throughout 2020 whilst prioritising the safety of its employees and maintaining its robust balance sheet. The restrictions relating to the COVID-19 pandemic during 2020 severely disrupted the entire global market and resulted in a significant slowdown in surgical and wound treatment volumes. In addition, the reduced access to hospitals for our customers and our sales teams significantly restricted our business development activities during the year. The timing of when hospitals’ activities can return to normalised levels is expected to be determined by progress in the various COVID-19 vaccination programmes in key markets and the associated reduction in infection rates and hospital admissions.
US LiquiBand® performance is on track to recover strongly in 2021 driven by:
· Increased share of end-market volumes in the first quarter of 2020 maintained throughout the year.
· Strong order book despite current COVID-19 restrictions.
· Commercial launch of LiquiBand® Rapid™ in 2021 following its approval and virtual launch in 2020, enabling a key partner to regain ground with an improved product.
· The planned 2021 launch of LiquiBand® XL, which will enable AMS to compete in the treatment of large wounds and unlock further growth potential in our LiquiBand® business. Clinical trials were successfully completed in late 2020 and the Group is on track to file its 510k in March 2021.
The US clinical trial to support the Premarket Approval (PMA) for LiquiBandFix8® is progressing well with more than half of the total required patient procedures now complete. Filing for the device is expected in 2022, following the 12 month follow-up stipulated by the FDA.
Following the acquisition of Raleigh Adhesive Coatings in November 2020, the integration is progressing well and AMS continues to be optimistic about its growth prospects, as well as the potential for significant cross-selling and cost saving synergies. This underlines the Group’s strategy of acquiring strategically-aligned businesses in adjacent spaces with significant commercial synergies to supplement our organic revenue growth.
Chris Meredith, Chief Executive Officer of AMS, commented: “I am pleased that the Group expects to report financials in line with consensus market forecasts for FY 2020. AMS performed well both operationally and financially in 2020 despite the severe COVID-19 disruption. Going into 2021, finances are in robust condition, we have a healthy order book in both Business Units, and the Group is positioned for strong organic growth this year. The acquisition of Raleigh adds to the Group’s woundcare capabilities and growth potential and our investments in Sealantis, the LiquiBandFix8® PMA and the Medical Device Regulation are expected to drive additional commercial benefits from 2022. The Board is committed to its strategy of building organic and acquisitive growth and is confident in the short and long-term prospects for AMS.”
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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 / 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 payers. AMS has a wide range of surgical products including tissue adhesives, sutures, haemostats, and internal fixation devices, which it markets under its brands LiquiBand®, RESORBA®, and LiquiBandFix8®. AMS also supplies wound care dressings such as silver alginates, alginates and foams through its ActivHeal® brand as well as under white label. In 2019, the Group made two acquisitions: Sealantis, an Israeli medical device company with a patent-protected sealant technology platform; and Biomatlante, an established developer and manufacturer of innovative surgical biomaterial technologies based in France. In 2020, the Group acquired Raleigh Adhesive Coatings, a leading coater and converter of materials predominately for woundcare and bio-diagnostics products based in the UK.
AMS’s products, manufactured in the UK, Germany, France, Israel, the Netherlands, and the Czech Republic, are sold globally 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. The Group has R&D innovation hubs in the UK, Germany, France and Israel. Established in 1991, the Group has more than 700 employees. For more information, please see www.admedsol.com