New structure bears fruit for Advanced Medical Solutions
INTERNATIONAL healthcare products manufacturer and supplier Advanced Medical Solutions has reported strong half-year results, which it said was the result of a new structure that has been implemented.
The Cheshire company, which has its headquarters and a manufacturing facility in Winsford, has organised itself into four divisiions – Branded Direct, Branded Distributed, OEM and Bulk Material, which chief executive Chris Meredith said had been done to allow the group to make the most of growth opportunities.
He explained: “The acquisition of Resorba (in late 2011) doubled the size of the business, so we felt we needed to do something to allow us the focus to make the most of the sizeable growth opportunities that exist. These results are a testament to this I believe.”
In the six months to the end of June revenues rose 11% to £27.4m and profits rose by 33% to £6m.
On the back of strong cash generation net debt has been cut from £5.5m at the end of December 2012 to £2.6m. The group, which has 450 employees mostly in the UK and Germany raised its interim dividend 11.8% to 0.19p per share.
Chairman Don Evans said: “”The first half of 2013 has seen another good performance by the group, with the benefits of our reorganisation already producing results, including another double-digit increase in revenues, further operating margin improvements and strong rises in profitability.
Our strong cash flow generation should also enable us to have net funds by the year end.
“With further growth expected from our Branded Direct and OEM businesses, together with anticipated stronger progress in both Branded Distributed and Bulk Materials in the second half, we are confident of meeting current market expectations for the full year.
“The strength of the underlying business, combined with the opportunities we see from our R&D pipeline, lead the board to be optimistic about our long term prospects.”
AMS said its Branded Direct business has continued to develop the ActivHeal brand and has achieved a 25% increase in revenues through range extension and by winning new NHS Trusts.
