AMS building warchest with new funding line
ADVANCED Medical Solutions, the Cheshire-based international woundcare products manufacturer and supplier looks to be amassing a warchest ahead of a possible significant acquisition.
The Winsford-based company, which is listed on AIM, is debt free, but has agreed a new five year £30m multi-currency revolving credit facility with incumbent bank HSBC, which has been joined by Royal Bank of Scotland.
AMS can, under the terms of an “accordion option” in the funding deal, ask for a further £20m on the same terms.
The company said its previous £4m facility was due to expire in 2015 so it is “taking advantage of favourable credit conditions to put in place a more suitable facility” for its growth ambitions.
AMS said it has continued to increase its net cash position which was £10.2m as of June 30. In a trading update it said it is making “good progress”. Despite revenue being impacted by currency, profits for 2014 are in line with current market expectations.
Chief executive Chris Meredith said: “The group continues to deliver strong organic growth and, with available cash funds and the new bank facility, is in a strong position to deliver further growth.”
The group expects to publish its results for the year to December 31 on March 4 2015.
