Woundcare firm progresses on several fronts

ADVANCED Medical Solutions reported a 12% increase in sales during the first half of the year to £16.3m and a 26% rise in pre-tax profits to £2.6m.

The Winsford-based healthcare products company said that it had made progress across its various product ranges, with chief executive Chris Meredith highlighting the success of its Liquiband range in the US as a particular positive.

Its wound care and sealants range increased by 2%, but Meredith said that last year’s figures contained “false positives” associated with promotional activity around the product’s launch and some clinical trials. He added that Liquiband now had a 5% share of the US market.

“It shows we have some good traction in the US market,” he told TheBusinessDesk.com.

“We set out for a 20% share of that market within five years, so to get to 5% in a year and a half is an achievement.”

Sales in the company’s Advanced Woundcare range increased by 15% to £13.1m, driven largely by the growth in its Activheal product used exclusively by the NHS in treating chronic wounds.

Meredith said that current initiatives to drive out unnecessary costs in the NHS provided a positive driver for Activheal, as it targets the NHS via its own direct sales methods.

This means the NHS benefits from a saving of between 30-40% on competitor products as no distributors are involved, he added.

He also praised the performance of both its foams business, which continues to benefit from improved revenues following its acquisition of Dutch manufacturer Corpura last year, and a silver alginates business which has been increasing its market share against a dominant competitor in the US.

Sales of its silver alginate increased by 7% overall, but were up 72% in the US.
Group finance director Mary Taverner added that the company’s relocation to a single site last year had brought operational benefits and improved margins.

The company’s operating margins increased to 16.1%, compared with 14.5% a year ago.

The company also finished the year with net funds of £3.6m (2010: £300,000), which Meredith said gave the company options in terms of developing R&D efforts on new products, investing in its existing brands, increasing its sales and marketing activity or to “look at selective licensing or acquisition opportunities”.

“Our success is not tied to any one product,” he said. That gives us confidence about our future prospects.”