Advanced Medical Solutions Grp PLC – AMS – Interim Results

Advanced Medical Solutions Grp PLC – AMS – Interim Results

Winsford, UK, 16 September 2020: Advanced Medical Solutions Group plc (AIM: AMS), the surgical and advanced woundcare specialist company, today announces its unaudited interim results for the six months ended 30 June 2020.

 

 

Financial Highlights:

 

£ million

 

H1 2020

H1 2019

Reported change

Group revenue

39.3

48.7

-19%

Operating margin (%)

11.3

23.4

-52%

Adjusted1 operating margin (%)

14.0

26.7

-47%

Profit before tax

4.3

11.2

-62%

Adjusted1 profit before tax

5.3

12.8

-59%

Diluted earnings per share (p)

1.68

4.06

-59%

Adjusted1 diluted earnings per share (p)

2.16

4.80

-55%

Net operating cash flow

8.8

10.3

-14%

Net cash2

67.9

63.9

+6%

Interim dividend per share (p)

0.50

0.50

+0%

 

 

Business Highlights (including post period end):

 

Throughout this unprecedented period, AMS has retained its employee base in safe conditions and maintained supply to hospitals and other healthcare providers. The Group has remained profitable and cash generative whilst continuing to invest in R&D and maintaining its dividends. With COVID-19 impacts expected to reduce in each subsequent quarter and balance sheet strength, the Group is well positioned to return to strong growth as our underlying markets continue to recover.

 

·      Trading was in line with our trading update of 9 July 2020, with the majority of the business impacted by government-led restrictions to control COVID-19 and a slowdown in demand across all regions and product categories

 

·      All manufacturing sites have remained in operation throughout the COVID-19 pandemic, servicing customers and order demand, and having implemented strict controls to ensure employee safety at all times

 

·      First half revenue was £39.3 million (2019 H1 £48.7 million) down by 19% on a reported and constant currency3 basis

 

·      Despite the significant challenges, the Group reported an adjusted operating profit of £5.5 million (2019 H1: £13.0 million) and an increase in net cash to £67.9 million (2019 H1: £63.9 million)

 

·      Investment in R&D increased to £3.8 million (2019 H1: £2.9 million) as progress continued on all core projects across the Group

 

·      US LiquiBand® recovery plan remains on track with sales initiatives recovering 2% share of end market volumes. LiquiBand® Rapid launched with a key partner as planned and regained product listings on the two previously lost Group Purchasing Organisation (GPO) contracts

 

·      Product approvals for new geographies have continued with our first approvals in India for both LiquiBand® and LiquiBandFix8®

 

·      Patents granted for LiquiBand® Exceed in the UK and US, providing protection and tax benefits until 2034

 

·      Interim dividend maintained at 0.50p per share (2019 H1: 0.50p) payable on 23 October 2020 to shareholders on the register at the close of business on 25 September 2020. The Board expects to return to dividend growth in the near future, as business returns to normal.

Commenting on the interim results, Chris Meredith, Chief Executive Officer of AMS, said: “The Group has faced an unprecedented first half of the year as a result of the severe impact on our core markets arising from the COVID-19 pandemic. As a business, we have responded well to the challenge, prioritising our employees’ safety and continuing critical supply to customers. Whilst the short-term impact has been stark, we are proud that the Group remains profitable and cash generative during this time whilst maintaining a robust balance sheet.

The Group has maintained investment in R&D to progress its key projects and is well positioned for growth as our markets continue to recover. Whilst we expect COVID-19 to continue to impact sales and profitability in the short term, the Board remains positive about our medium to long-term prospects.”

No Comments

Post a Comment