Profits surge 98% at AMS
ADVANCED Medical Solutions, the Cheshire company that develops products used to treat wounds, has posted strong half-year results as it was boosted by a key acquisition and higher sales to the NHS.
The group which makes medical super-glue and silver-based products to help wounds seal and heal said its acquisition of Germany-based RESORBA had delivered on a number of levels – not only contributing to both sales and profits – but giving it a new sales platform into Germany.
In the six months to the end of June revenues rose 52% to £24.8m. Excluding RESORBA like-for-like revenues were flat at £16m.
Profits before one-off integration costs related to RESORBA of £600,000 surged 98% to £5.4m.
The company employs around 230 people at Winsford at its HQ and wound care dressings manufacturing site. It has other manufacturing sites in Plymouth, the Netherlands, Czech Republic and two facilities in Germany.
Chief executive Chris Meredith said the group was making “good progress” on a number of fronts – with the RESORBA acquisition, with increasing sales in the US and in the domestic market where sales of its its ActivHeal product are continuing to surge.
“With the NHS, the cost pressures are actually good news for us. Our products are made in the UK and are cheaper and better than those on the market at the moment.
“Sales of ActivHeal were up 70% last year and are up 40% in the first half. so we’re every pleased.”
He said the in the US, the group’s LiquiBand, a tissue adhesive product, had increased its market share, while progress is being made with regulators in China and Russia for market entry there.
Approvals are expected by the end of 2013 he added.
Chairman Dr Don Evans said: “”The first half of 2012 has again seen significant progress by AMS, with LiquiBand continuing to increase its market shares in the US, another strong performance by ActivHeal in the UK and an excellent initial contribution from RESORBA.
“In addition to further gains from these parts of our business, the second half is also expected to benefit from stronger silver alginate sales, initial trilaminate foam revenues and an additional boost in the US from LiquiBand Flex.
“Further out, we have a number of exciting developments coming through our R&D pipeline which, combined with further strong progress anticipated in our existing businesses, lead the board to be very optimistic about our long term prospects.”
