AMS bullish following RESORBA deal
ADVANCED Medical Solutions has said that its prospects for 2012 “look good” after posting an 8% increase in revenues to £34.4m for 2011 and a 7% increase in pre-tax profits to £4.6m.
The company’s chief executive Chris Meredith said that growth was driven by its foam wound care range, where sales increased by 49%, and through a business unit that sells products directly from manufacturers to the NHS. It increased sales by 75%.
He added that the wound closure business “continues to go from strength to strength”, achieving a 13% increase in sales throughout the UK and Europe, as well as trebling revenues from the US.
The company said that its operating margins – before the £1.8m cost associated with its £55m RESORBA acquisition was factored in – increase by 1.9% to 18.6%, and that it had benefitted from some “good event margins” following the integration of its previous operations onto a single site at Winsford over a year ago.
Net debt increased to £13.4m (2010: £3.9m net funds) as a result of the increased bank borrowing used to pay for its acquisition of RESORBA in December, but Meredith said that the deal brought significant opportunities.
He said the “long established” business brought the wider company a direct sales capability in its core German market, where it made 75% of its sales, as well as access to the Czech Republic and Russia. It also three manufacturing bases and a range of collagen-based wound care dressing products which AMS can sell through its worldwide ditributor network.
“RESORBA also produces a significant shift in our business mix, where more than half of our revenues will now come from direct sales of our own brands,” said Meredith.
“2012 has started well across all our existing businesses and we are confident of achieving another year of strong progress.”
