7 July 2021
Advanced Medical Solutions Group plc
(“AMS” or the “Group”)
Half Year Trading Update
Winsford, UK: Advanced Medical Solutions Group plc (AIM: AMS), the surgical and advanced wound care specialist company, today announces an unaudited trading update for the six months ended 30 June 2021 (the “Period”). The Group expects to announce its interim results on 15 September 2021.
Strong recovery and robust finances
Trading in the Period continued to recover in line with expectations despite ongoing COVID-19 challenges, as many key markets continue to rebuild towards more routine levels of elective surgery.
Revenue during the Period showed both Business Units reporting significant growth against the comparative period. The Group expects to report revenues of approximately £50 million (H1 2020: £39.3 million) for the Period.
As volumes have increased in 2021, AMS has seen a significant improvement in operational leverage and margins for both Business Units during the Period. As a result, the Board expects adjusted profit before tax for the Period to be in the region of £12 million (H1 2020: £5.3 million).
The Group has sustained its robust financial position throughout the disruption caused by the pandemic. It continued to tightly manage working capital during the Period, maintained the payment of its final 2020 dividend and continued to generate operational cash flows, with net cash of approximately £61 million at the Period end (31 December 2020: £53.8 million).
Regulatory and clinical progress
We are pleased to report that the 510(k) filing for LiquiBand®XL has been submitted to the FDA and the product remains on schedule for approval by the end of the year.
The US clinical trial for LiquiBandFix8® continues to progress well with more than 80% of required patient procedures now complete and Premarket Approval (PMA) filing on track for 2022 after the 12 month patient follow up.
Patient enrolment for the Seal-G® and Seal-G® MIST clinical study is progressing at three sites in Israel and, following the CE mark approvals in April, we will also be recruiting patients at five sites in the UK and Italy from Q3 2021 onwards with final study results expected in 2022.
Outlook and guidance
The Group expects to continue to trade in line with the Board’s expectations in the second half of 2021 as elective surgery and accident and emergency volumes continue to trend back towards historical levels.
Chris Meredith, Chief Executive Officer of AMS, commented: “I am delighted with AMS’s performance despite challenging market conditions. Our priority remains the safety of our staff and serving our customers and we are pleased to see that markets are recovering and that demand for our products is returning towards normal levels. Our marketing and R&D teams continue to work tirelessly to develop, launch and sell our innovative products and to ensure that we remain in the strongest possible position to grow sales and market share in the long-term.”
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For further information, please 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/ Matthew Cole
Investec Bank PLC (NOMAD & Broker)
Tel: 44 (0) 20 7597 5970
Daniel Adams / Patrick Robb / Gary Clarence
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 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, internal fixation devices and internal sealants, which it markets under its brands LiquiBand®, RESORBA®, LiquiBandFix8® and Seal-G®. 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, the Netherlands, the Czech Republic and Israel, 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.