Advanced Medical Solutions: Strong US sales boosts revenue for wound-closure tech firm
Advanced Medical Solutions (AMS) has announced a 10 per cent revenue hike for the first half of 2024 after sales for wound-closure tech in the United States took off.
The company, which develops and manufactures tissue-healing technology, announced first-half revenue of £68m.
Based on these numbers, the firm said it expected to report adjusted profit before tax for the year of between £14.4m and £14.8m, up from £13.8m in the first half of 2023.
Profit were driven by sales of Liquiband, a wound closure adhesive, in the US, the company said.
It invested heavily in US marketing for Liquiband after pre-tax profit for 2023 flagged on US destocking of the technology.
“We are very pleased to be able to report such a strong first-half performance and to confirm that [full year guidance for] 2024 remains on track,” chief executive officer Chris Meredith said. “We look forward to building on this strong start to the year”.
The AIM-listed company remained “confident” that growth would reach double digits in 2024, “despite continued Woundcare headwinds”.
High input costs, logistical delays and labour shortages have weighed on wound care companies since 2021, although pressures have started to lift this year,
At the start of July, the medical company completed the purchase of Peters Surgical, a provider of surgical sutures, for £120m.
“As we consolidate Peters Surgical in the second half, this nearly doubles our surgical sales, significantly expands our distribution capabilities and establishes the Group as a global powerhouse in tissue-healing, solidifying our strategy for significant and sustainable growth in the long-term,” Meredith said.
“The benefits it will bring across the business as cross-selling opportunities and operational synergies are expected to significantly enhance AMS’ strong underlying performance over the next three years,” the company said.
It will announce further details of the acquisition “in due course”.
AMS’ share price has been steadily climbing over the last few months, up to 227p on Monday from 186p in mid-March.
Revenue for 2023 was reported at £126.2m, up 2 per cent year on year from £124.3m.