Woundcare group AMS sees slower US sales

CHESHIRE’S Advanced Medical Solutions has warned that its annual profits will come in at the “lower end” of City forecasts as a result of poorer-than-expected sales of a product in the US.

In a trading update the Winsford-based group said although it had made good progress on a number of fronts, its LiquiBand product had not done as well as bosses had hoped for hiven the “size of the opportunity” in the US acute care hospital sector.

AMS said: “With the gains made across a number of fronts being offset to some extent by the performance of LiquiBand in the US Acute Care hospital sector and continued pressure on foam roll-stock, overall indications for the full year are that AMS will be at the lower end of market expectation for pre-tax profits.”

Current market forecasts for the year to the end of December were for profits to come in between  £11.9m to £12.8m, with a consensus among analysts of £12.5m.

Dr. Don Evans, non-executive chairman said despite the setback the board remains optimistic: “We remain excited by the opportunity for LiquiBand in the acute care hospital sector in the US.

“We are actively addressing our sales channel to achieve better market penetration as progress has been slower than expected. We have several developments coming through our R&D pipeline and these combined with further anticipated progress in our existing businesses and from our Resorba brands, mean that the board remains optimistic about the group’s overall prospects.”