| 13 March 2024 |
Advanced Medical Solutions Group plc
(“AMS” or the “Group” or the “Company”)
Unaudited preliminary results for the year ended 31 December 2023
~ AMS set for strong growth in 2024, underpinned by implementation of commercial initiatives, product launches, as well as a transformational surgical acquisition announced today ~
Winsford, UK: Advanced Medical Solutions Group plc (AIM: AMS), a world-leading specialist in tissue-healing technologies, today announces its unaudited preliminary results for the year ended 31 December 2023.
Financial Summary:
| 2023 | 2022 | Reported change | Change at constant currency¹ | |
| Revenue (£ million) | 126.2 | 124.3 | +2% | +2% |
| Adjusted Measures | ||||
| Adjusted² profit before tax (£ million) | 25.9 | 28.5 | -9% | |
| Adjusted² profit before tax margin | 20.5% | 22.9% | -2.4pp | |
| Adjusted² diluted earnings per share (p) | 9.39p | 10.47p | -10% | |
| Reported Measures | ||||
| Profit before tax (£ million) | 21.2 | 25.9 | -18% | |
| Profit before tax margin | 16.8% | 20.8% | -4.0pp | |
| Diluted earnings per share (p) | 7.25p | 9.30p | -22% | |
| Net operating cash flow (£ million) | 12.3 | 26.9 | -54% | |
| Net cash3 (£ million) | 60.2 | 82.3 | -27% | |
| Proposed full year dividend per share (p) | 2.36p | 2.15p | +10% |
Business Highlights (including post period end):
AMS is pleased to report results in line with updated guidance and significant commercial, regulatory and clinical progress as it continues to build its platform for growth and invest in its portfolio of next-generation products.
Operational
· Successful implementation of new route to market strategy for US LiquiBand® that is delivering accelerated growth expectations in Q1 2024 and gives the Board confidence in achieving record US LiquiBand® sales in 2024
· FDA approval for LIQUIFIXTM, the first atraumatic hernia fixation device in the US with the full in-market launch with TELA Bio Inc (“TELA Bio”) progressing very well and attracting significant market interest
· Completion of the first SEAL-G® and SEAL-G® MIST human clinical trials with initial data showing promising improvement in comparison to reported leak rates
· Acquisition of Peters Surgical SAS (“Peters Surgical”) for a total maximum cash consideration of €141.4 million (£121 million) announced today – See separate announcement
· Acquisition of Syntacoll GmbH (“Syntacoll”) for €1 million on 1st March 2024, a specialist manufacturer of drug-eluting collagens that strengthens the Group’s existing Biosurgical business
· Acquisition of Connexicon Ltd (“Connexicon”) on 1st February 2023, increasing the Group’s ability to develop and commercialise innovative and differentiated adhesive and sealant technologies
Financial
· Group revenue increased by 2% to £126.2 million (2022: £124.3 million) with strong organic growth partly offset by de-stocking of US LiquiBand® and reduced royalties, as guided in September 2023
· Adjusted profit before tax decreased by 9% to £25.9 million (2022: £28.5 million) whilst reported profit before tax decreased by 18% to 21.2 million (2022: £25.9 million) as margins were impacted by the temporary reduction in US LiquiBand® revenue and lower royalty income
· Net cash decreased to £60.2 million (2022: £82.3 million) following the acquisition of Connexicon, planned inventory build and the purchase of shares by the Employee Benefit Trust
· Investment in R&D increased to £12.6 million (2022: £12.3 million), representing 10% of revenues (2022: 10%), as the Group maintains investment in new products and Medical Device Regulation (“MDR”)
· Surgical Business Unit revenues increased to £79.1 million (2022: £74.9 million), an increase of 6% at reported and constant currency
· Woundcare Business Unit revenues decreased to £47.1 million (2022: £49.5 million), a decrease of 5% at reported and constant currency
· Reflecting management’s ongoing confidence in the Group’s outlook, the Board proposes an increased final dividend of 1.66p per share (2022: 1.51p) bringing the total proposed dividend to 2.36p per share (2022: 2.15p)
Commenting on the results Chris Meredith, Chief Executive Officer of AMS, said: “I am very pleased with the progress we made in 2023 with a number of key initiatives setting a strong foundation for growth for the next five years. The recently signed US distribution agreements are already having a positive impact on the LiquiBand® franchise. Also, market feedback through our new US partner for LIQUIFIXTM validates the confidence we have in the commercial potential for this unique product. Outside the US, we continue to make excellent progress as we strengthen our position in established markets and drive growth through geographic expansion.
“The acquisition of Peters Surgical is a transformational step in the history of AMS. The expansion of our portfolio while leveraging the direct sales, distribution network, R&D capability and manufacturing base of both businesses will transform the Group into a major player in the field of tissue-healing. The Group has never been in such a strong position given the quality of our products and breadth of our portfolio. As a result, we are also increasing our dividend, demonstrating our commitment to drive shareholder value. I am extremely proud of the AMS employees who have worked so hard to get us to this point and I look forward to working closely with our new colleagues at Peters Surgical and Syntacoll and our other partners as we embark on this exciting new phase of the business.”
Analyst briefing
A briefing for sell-side analysts will take place at 10am this morning. Please contact AMS@consilium-comms.com for further details.
Notes
1. Constant currency removes the effect of currency movements by re-translating the current year’s performance at the previous year’s exchange rates
2. Adjusted profit before tax is shown before amortisation of acquired intangible assets which was £4.9 million (2022: £3.4 million) and the movement in long-term liabilities recognised on acquisitions which was a credit £0.2 million (2022: £0.8 million credit)
3. Net cash consists of cash and cash equivalents with nil debt (2022: £nil debt)
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