Advanced Medical Solutions Grp PLC Trading Update (4649S)
09 July 2020 - 4:00PM
UK Regulatory
TIDMAMS
RNS Number : 4649S
Advanced Medical Solutions Grp PLC
09 July 2020
9 July 2020
Advanced Medical Solutions Group plc
("AMS" or the "Group")
Half Year Trading Update
Winsford, UK: Advanced Medical Solutions Group plc (AIM: AMS),
the surgical and advanced wound care specialist company, today
announces a trading update for the six month period ended 30 June
2020 (the "Period").
As previously reported, COVID-19 has had an adverse impact on
the Group in the Period. However, this has not stopped the Group
from making significant progress in a number of areas, including
the improved end sales demand for US LiquiBand (R) as well as key
product approvals and launches including the approval of
LiquiBand(R) and LiquiBand(R) Fix8 (TM) in India.
Revenue
Revenue for the Period is expected to be in line with the
guidance issued in June 2020. As previously reported, COVID-19
disruptions impacted Group revenues by approximately GBP15 million
in the second quarter of 2020. Accordingly, with both Business
Units significantly affected by COVID-19, and the Woundcare
year-on-year comparator also being affected by some customers'
Brexit preparations in 2019, the Group expects aggregate sales for
the Period to be approximately GBP39 million (H1 2019: GBP48.7
million). Encouragingly, the Group saw the first revenue
contribution from Biomatlante and, more significantly, underlying
market share growth for US LiquiBand(R) arising from sales
initiatives implemented by the management team as well as the
approval and launch of LiquiBand(R) Rapid(TM).
Profit margin
The Group remains confident in its long-term strategy and has
continued to invest in R&D and regulatory projects in order to
be in the best position to return to growth when end markets
recover. In addition, the Group operated its factories at much
lower volumes, resulting in under-absorption of its fixed costs. As
a result, the Board expect to report adjusted profit before tax in
the region of GBP5 million to GBP6 million for the Period (H1 2019
GBP12.8 million).
Cash and dividend
The Group has remained in a robust financial position throughout
the pandemic disruption. Over the course of the first half of 2020,
the Group tightly managed its working capital and maintained the
payment of its final 2019 dividend and generated net cash. At the
Period end, the Group had net cash of GBP68 million (31 December
2019: GBP64 million).
Outlook and guidance
The Group is starting to see signs of recovery in some markets
and expects the sales impact of COVID-19 to gradually reduce in the
second half of 2020 and as we move into 2021, with both
accident
& emergency and elective surgery volumes recovering to more
normal levels. There is, however, expected to be significant
variability in the pace of recovery for different geographies and
different types of surgical procedures and, with the potential for
second waves of COVID-19 infection, it remains difficult to
accurately predict the full year financial impact on the Group.
However, our current internal forecasts suggest that the overall
impact on revenues will be approximately GBP7 million in the third
quarter of 2020 and approximately GBP3 million in the fourth
quarter of 2020.
Chris Meredith, Chief Executive Officer of AMS, commented: "AMS
is coping well with the demands of operating in the current
environment and our priority continues to be the well-being of our
staff and serving our customers. We were pleased to see recent
market share gains for LiquiBand(R) in the US and the launch of
LiquiBand(R) Rapid(TM) in the first quarter, and with the
development plan continuing for LiquiBand(R) XL, we remain well
positioned to grow sales and market share. Our strong balance sheet
enables us to continue to invest in R&D and regulatory
projects, in order to be in the best position to return to strong
growth when the Group's end markets recover. "
- End -
For further information, please contact:
Advanced Medical Solutions Group plc Tel: +44 (0) 1606
545508
Chris Meredith, Chief Executive Officer
Eddie Johnson, Chief Financial Officer
Consilium Strategic Communications Tel: +44 (0) 20 3709
5700
Mary-Jane Elliott / Matthew Neal / Olivia
Manser
Investec Bank PLC (NOMAD & Broker) Tel: +44 (0) 20 7597
5970
Daniel Adams / Patrick Robb / Gary Clarence
About Advanced Medical Solutions Group plc
AMS is a world-leading developer and manufacturer of innovative
and technologically advanced products for the global surgical and
woundcare markets, focused on quality outcomes for patients and
value for payers. AMS has a wide range of surgical products
including tissue adhesives, sutures, haemostats, and internal
fixation devices, which it markets under its brands LiquiBand(R) ,
RESORBA(R) , and LiquiBandFix8(R) . AMS also supplies wound care
dressings such as silver alginates, alginates and foams through its
ActivHeal(R) brand as well as under white label. In 2019, the Group
made two acquisitions: Sealantis, an Israeli medical device company
with a patent-protected sealant technology platform; and
Biomatlante, an established developer and manufacturer of
innovative surgical biomaterial technologies based in France.
AMS's products, manufactured in the UK, Germany, France, the
Netherlands, and the Czech Republic, are sold globally via a
network of multinational or regional partners and distributors, as
well as via AMS's own direct sales forces in the UK, Germany, the
Czech Republic and Russia. The Group has R&D innovation hubs in
the UK, Germany, France and Israel. Established in 1991, the Group
has approximately 700 employees. For more information, please see
www.admedsol.com.
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END
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