REG - Adv Medical Solutns. - Interim Results
Today 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250917:nRSQ6035Za&default-theme=true
RNS Number : 6035Z Advanced Medical Solutions Grp PLC 17 September 2025
17 September 2025
Advanced Medical Solutions Group plc
("AMS" or the "Group")
Interim results for the six months ended 30 June 2025
~ H1 delivering high quality growth alongside transformative Peters Surgical
acquisition in 2024 ~
~ FY 2025 expectations reiterated ~
Winsford, UK, 17 September 2025: Advanced Medical Solutions Group plc (AIM:
AMS), the world-leading specialist in tissue-healing technologies, today
announces its unaudited interim results for the six months ended 30 June 2025
(the "Period").
H1 H1 Reported change¹ Change at constant currency²
2025 2024
Surgical Business Unit 87.9 48.4 +81%
Advanced Woundcare Business Unit 22.9 19.5 +17% +86%
+18%
Total group revenue (£ million) 110.8 68.0 +63%
+66%
Adjusted Measures
Adjusted(3) EBITDA (£ million) 24.4 17.2 +42%
Adjusted(3) EBITDA margin % 22.0% 25.3% -3.3pp
Adjusted(3) profit before tax (£ million) 16.4 14.8 +11%
Adjusted(3) profit before tax margin % 14.8% 21.8% -7.0pp
Adjusted(4) diluted earnings per share (p) 5.67 5.21 + 9%
Reported Measures
Profit before tax (£ million) 8.5 5.7 +49%
Profit before tax margin % 7.6% 8.4% -0.8pp
Diluted earnings per share (p) 2.84 1.92 48%
Net cash inflow from operating activities (£ million) 15.1 7.0 +117%
Net (debt)/cash(5) (£ million) (50.1) 55.6 -190%
Interim dividend per share (p) 0.85 0.77 +10%
Operational Highlights:
· Group revenue increased by 63% to £110.8 million and by 66% at
constant currency (2024 H1: £68.0 million) with organic growth supplemented
by the impact of the Peters Surgical acquisition that completed 1(st) July
2024. Overall performance was in line with management expectations including a
strong showing from the existing AMS business (excluding Peters) growing
revenues by 13% and by 14% at constant currency. Revenues from Peters Surgical
products have now been allocated to relevant Group product sales categories in
the Surgical business unit and will be reported as such on an ongoing basis,
reflecting continued integration progress.
o Surgical revenues increased by 81% to £87.9 million (2024 H1: £48.4
million) with £34.3 million contributed by Peters Surgical during the Period.
Good progress has been made on the integration of Peters Surgical and
Syntacoll with positive contributions from both businesses.
o US LiquiBand(®) grew by 14% at reported currency and by 18% at constant
currency, reflecting continued strong momentum from the 2023 renegotiation of
distribution agreements with key partners. ROW LiquiBand(®) grew 10% at
reported currency and by 11% at constant currency supported by commercial
synergies following the Peters Surgical acquisition, including the targeting
of AMS products into specialist cardiovascular markets where Peters Surgical
has a strong presence.
o Biosurgical products grew by 37% at reported currency and by 40% at constant
currency, driven by enhanced manufacturing efficiencies and significant
improvement in yields of collagen products, following the integration of
Syntacoll which has also significantly boosted the performance of antibiotic
eluting collagens.
o Advanced Woundcare revenues increased by 17% at reported currency, and 18%
at constant currency, to £22.9 million (2024 H1: £19.5 million) recovering
from prior period declines, driven by strong ordering from OEM partners that
more than offset the previously reported declining Organogenesis royalty.
· The restructuring of the Woundcare business was successfully
completed at the end of Q1 2025. The Board remains confident in achieving its
targeted double-digit operating margin from the start of Q2 onwards as the
newly refocussed operations have made a strong start, reporting strong revenue
growth during the Period.
· Good progress in starting to implement the commercial and operational
synergies within the enlarged Group and the Board can confirm the anticipated
achievable benefits remain in line with previous expectations. For example,
the strong reputation and presence of the Peters Surgical products and sales
teams in specialist cardio-vascular markets is already starting to provide
direct revenue synergies for AMS products that are well suited to that space,
such as LiquiBand XL and GENTA-Coll.
Advancement of the US regulatory programme for Biosurgical and Suture products
remains a strategic priority, and the Group has made good progress towards
planned US launches anticipated next year.
Financial Highlights:
· Gross margins reduced to 53.5% (2024 H1: 54.3%) due to the previously
reported reduction in Organogenesis royalty income stream, the impact of
Peters Surgical which has a slightly lower gross margin and improved
performance of Woundcare which has a lower gross margin than Surgical.
· Adjusted EBITDA increased by 42% to £24.4 million (2024 H1: £17.2
million) with adjusted EBITDA margin at 22.0% (2024 H1: 25.3%) for the reasons
set out above. Reported profit before tax increased to £8.5 million (2024 H1:
£5.7 million) as a result of the Peters Surgical acquisition and against a
prior period which included significant acquisition-related exceptional items.
· Net Debt decreased to £50.1 million from 2024 year-end net debt
position of £55.8 million (2024 H1: net cash of £55.6 million prior to the
acquisition of Peters Surgical), driven by continued good cash generation,
which will drive further deleveraging.
· Given strong business performance and the Board's continued
confidence in the outlook, the interim dividend is increased by 10% to 0.85p
per share (2024 H1: 0.77p).
Outlook:
· We expect to sustain good growth across our enlarged Surgical
portfolio, supported by strong end-user demand, product innovation and
geographic expansion. Woundcare, having completed its restructuring, is now a
cash-generative business with stable margins.
· Our US regulatory programmes for Biosurgical and Suture products are
progressing and will underpin medium-term growth. The strength of our cash
generation and disciplined capital allocation mean we are on track to reduce
leverage to approximately 1x EBITDA by year-end 2025, with further rapid
deleveraging thereafter.
· The Board remains confident of delivering full year 2025 revenue and
EBITDA in line with expectations and believes that AMS is well positioned to
drive sustained growth, margin expansion and long-term value creation.
Commenting on the interim results, Chris Meredith, CEO of AMS, said: "We are
pleased to report another period of strong revenue growth, driven by continued
momentum across key products. These results also highlight the strength and
resilience of our increasingly diversified portfolio and global footprint,
which help to mitigate the impact of order phasing and market specific
fluctuations. Integration of last year's acquisitions remain on track, with
improvements to systems and manufacturing being made to reduce backorders,
emerging commercial synergies in geographies, such as France and India, and in
specialty areas, such as cardiovascular, set to strengthen H2 2025 and beyond.
We are also making solid progress toward upcoming US product launches. We
believe these initiatives will significantly enhance our earnings growth
potential over the medium to long-term."
- End -
Notes
1 Reported change is calculated using amounts rounded to the nearest
£'000.
2 Constant currency adjusts for the effect of currency movements by
re-translating the current period's performance at the previous period's
exchange rates
3 Reconciled in the Financial Review. Adjusted profit before tax
excludes the impact of exceptional items, amortisation of acquired intangibles
and movement in long-term acquisition liabilities. Adjusted EBITDA excludes
the impact of exceptional items, depreciation, amortisation, interest and
taxation.
4 Reconciled in note 4 of the financial information. Adjusted diluted
earnings per share exclude the impact of exceptional items,
amortisation of acquired intangibles and movement in long-term acquisition
liabilities.
5 Reconciled in note 10 of the financial information. Net debt is
calculated as cash and cash equivalents less borrowings.
For further information, please visit www.admedsol.com
(http://www.admedsol.com) or contact:
Advanced Medical Solutions Group plc Tel: +44 (0) 1606 545508
Chris Meredith, Chief Executive Officer
Eddie Johnson, Chief Financial Officer
Michael King, Investor Relations
Optimum Strategic Communications Tel: +44 (0) 20 4566 8543
Mary Clark / Nick Bastin / Isabelle Abdou AMS@optimumcomms.com
Investec Bank PLC (NOMAD & Joint Broker) Tel: +44 (0) 20 7597 5970
Gary Clarence / David Anderson
Berenberg (Joint Broker) Tel: +44 (0)20 3207 7800
Toby Flaux / Detlir Elezi / Yasmina Benchekroun
About Advanced Medical Solutions Group plc
AMS is a world-leading independent developer and manufacturer of innovative
tissue-healing technology, focused on quality outcomes for patients and value
for payers. AMS has a wide range of surgical products including tissue
adhesives, sutures, haemostats, internal fixation devices and internal
sealants, which it markets under its brands LiquiBand(®), RESORBA(®),
LiquiBandFix8(®), LIQUIFIX™, Peters Surgical, Ifabond, Vitalitec and
Seal-G(®). AMS also supplies wound care dressings such as silver alginates,
alginates and foams through its ActivHeal(®) brand as well as under white
label. Since 2019, the Group has made seven acquisitions: Sealantis, an
Israeli developer of innovative internal sealants, Biomatlante, a French
developer and manufacturer of surgical biomaterials, Raleigh, a leading UK
coater and converter of woundcare and bio-diagnostics materials, AFS Medical,
an Austrian specialist surgical business, Connexicon, an Irish tissue
adhesives specialist, Syntacoll, a German specialist in collagen-based
absorbable surgical implants and Peters Surgical, a global provider of
specialty surgical sutures, mechanical haemostasis and internal cyanoacrylate
devices.
AMS's products, manufactured in the UK, Germany, France, the Netherlands,
Thailand, India, the Czech Republic and Israel, 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, Austria, France, Poland,
Benelux, India, the Czech Republic and Russia. The Group has R&D
innovation hubs in the UK, Ireland, Germany, France and Israel. Established in
1991, the Group has more than 1,500 employees. For more information, please
see www.admedsol.com (http://www.admedsol.com/) .
Chief Executive's Review
Summary
The interim results to the end of June 2025 reflect the significant progress
made in consolidating the enlarged Surgical business and completing the
restructuring of Advanced Woundcare.
Group revenue increased by 63% on a reported basis and 66% on a constant
currency basis in the Period to £110.8 million (2024 H1: £68.0 million) due
to Peters Surgical revenues of £34.3 million (which were not in the prior
period) and growth in the rest of the Group. Excluding Peters Surgical,
revenue increased by 13% and by 14% at constant currency.
Revenue from the Peters Surgical products has been allocated into the Group's
product categories: Suture, Clips and VTO; Internal Fixation and Sealants; and
Other Distributed Products.
The integration of Peters Surgical remains on track to deliver the anticipated
operational and commercial synergies and the new Syntacoll acquisition is
already contributing positively to sales growth of collagen products. We have
successfully completed the planning of operational synergies, estimated at
£10 million annual benefit, and are now well into the initial months of the
execution phase which is due for completion before the end of 2027. Commercial
synergies are also progressing well, with new revenues already being generated
and incremental revenue from commercial synergies expected to be in the region
of £5 million to £10 million within five years of the acquisition.
Integration costs are expected to be incurred up to 2027.
An earn-out payment of £0.7 million was made in H1 2025 relating to Peters
Surgical, with no further payments expected.
Momentum from key products, especially end-market demand has continued into Q3
supported by improvements to systems and manufacturing which have relieved
back order and supply issues.
Launch of new products, line extensions and cross selling is and will be a key
part of our strategy to leverage new geographic market footprints and for
direct sales in France, Belgium, India, Poland (Peters) and the UK, Germany,
Austria and the Czech Republic (AMS). We look forward to a steady stream of
launches over time, a number of which are detailed in the table below
including in the USA, Asia and China. We believe the latter markets are
underpenetrated and represent significant opportunity for growth in the longer
term:
Product approval/launch Region Category Estimated timing
LiquiBand(®) and collagen launches India Advanced Closure/Biosurgical 2025
Resorba(®) collagen dental cone approval USA Biosurgical Devices 2026
Topical Adhesives approval and launch China Advanced Closure 2026
Peters Surgical suture launches USA Sutures 2026-2027
Freeze Dried Bone substitute (FDBS) approvals EU and USA Biosurgical Devices 2026-2027
IFABOND line extension launches EU Advanced Closure 2027
SEAL-G(®) approval of second-generation device EU Advanced Closure 2027
Antibiotic FDBS substitute approvals EU and USA Biosurgical Devices 2030
Antibiotic collagen approvals USA Biosurgical Devices 2030
The Board remains confident in meeting current revenue and EBITDA consensus
expectations for the Full Year 2025. The Group is also making good progress in
advancing FDA regulatory filings which are expected to support deeper
penetration of the US market and enhance meaningful profit growth potential
over the medium to long-term.
Surgical Business Unit
Revenue increased by 81% on a reported basis and 86% on a constant currency
basis in the Period to £87.9 million (2024 H1: £48.4 million). Excluding
Peters Surgical, surgical revenue increased by 11% and by 13% at constant
currency.
Surgical Business Unit 2025 H1 2024 H1 Reported Growth¹ Growth at constant currency
£ million £ million
Advanced Closure 24.5 21.8 12% 15%
Internal Fixation and Sealants 3.6 3.8 -6% -4%
Suture, Clips and VTO 38.8 10.4 275% 283%
Biosurgical Devices 13.0 9.5 37% 40%
Other Distributed Products 8.0 3.0 163% 169%
TOTAL 87.9 48.4 81% 86%
Advanced Closure - Direct sales channel building momentum
Advanced Closure 2025 H1 2024 H1 £ million Reported Growth¹ Growth at constant currency
£ million
Americas 15.7 13.8 14% 18%
Rest of World 8.8 8.0 10% 11%
TOTAL 24.5 21.8 12% 15%
Global LiquiBand(®) revenues increased by 12% to £24.5 million (2024 H1:
£21.8 million) and 15% at constant currency.
Following the successful implementation of the new US marketing strategy,
which involved renegotiations with key US distribution partners, more
differentiated product branding and increased partner engagement, US revenues
for the LiquiBand(®) portfolio increased to £15.7 million (2024 H1: £13.8
million), growth of 18% at constant currency and with all distribution
partners performing well and an element of partner order phasing.
As already mentioned, the strong reputation and presence of the Peters
Surgical products and sales teams in specialist cardio-vascular markets is
already starting to provide direct revenue synergies for AMS products that are
well suited to that space, such as LiquiBand(®) XL.
In the Rest of World, revenues rose by 10% at reported currency and by 11% at
constant currency to £8.8 million (2024 H1: £8.0 million) supported by
sustained end-user demand across multiple markets. Commercial synergies with
Peters Surgical are already beginning to increase sales momentum in Europe.
The regulatory process for AMS's first topical adhesive approval in China
continues to progress well. The clinical trial has been completed and the CFDA
filing remains on track for submission by year-end with commercial launch
anticipated in H2 2026.
Internal Fixation and Sealants - Inventory reducing, growth building
As highlighted in March of this year, H1 2024 included substantial US launch
orders that were unlikely to be repeated in the current Period. As a
consequence revenues decreased by 6% on a reported basis to £3.6 million
(2024 H1: £3.8 million) and 4% on a constant currency basis.
LIQUIFIX(TM) US commercial demand continues to build, supported by contracts
now in place with three major GPOs. End market sales are progressing steadily
driven by increased activity and focus from TelaBio. Initial launch
inventories delivered in H1 2024 are being drawn down, with repeat orders
already being received in line with expectations. Additionally, resolution of
the prior quality issues is also helping to improve the market uptake.
Outside the US, our commercial teams are assessing how best to optimise and
grow the enlarged portfolio with IFABOND(®) providing additional indications
and characteristics as well as the opportunity to deliver commercial
synergies.
Clinical evidence and KOL support continues to build for SEAL-G(®), our
novel, biological sealant for internal surgery. Current clinical activity
following the 160 patient 2023 GI study indicates a supportive trend of
patient benefits including reduced severity of leakage in pancreatic surgery
and observations of potential reduced post-operative stoma in bowel surgery.
Pending further data, this could be highly meaningful for both patient
outcomes and health system costs. Clinical activity on multiple fronts should
provide more data by end 2025 and into 2026, including the start of a
potential large scale UK randomised clinical study.
SEAL-G(®) sales have been muted to date but we have seen an encouraging small
uptick in revenues going into H2 indicating building KOL interest. Longer
term, the development of the next-generation device, together with
accumulating clinical data, will help realise the full potential of this
technology.
Suture, Clips and VTO - Positive effect of Peters acquisition
Revenue increased by 275% to £38.8 million (2024 H1: £10.4 million) and by
283% at constant currency following the acquisition of Peters Surgical on
1(st) July 2024.
The RESORBA(®) portfolio continued to deliver a strong performance during the
first half.
Revenue from the ex-Peters Suture, Clips and VTO portfolio was muted after
being impacted by supply issues causing increased backorders, US tariffs and
by order phasing from key distribution partners that is weighted towards the
second half of the year.
Good progress has been made in resolving the supply chain issues giving
confidence that backorders can be reduced and accelerated growth delivered
from H2 2025. End user demand remains robust across the portfolio and
combining the Peters Surgical and RESORBA sales teams is expected to
strengthen suture sales going forwards.
Following the Peters acquisition, the Group is aiming for deeper penetration
of the US suture market and is assessing options for the timing of US
launches, in consideration of the delayed approval of one of the Peters
Surgical cardiovascular suture families, where additional biocompatibility
testing is needed that will run into FY27.
The Group also sees significant potential in the wider commercialisation of
the Peters Surgical Clips and VTO portfolio in the years ahead.
Biosurgical Devices - Strong performance by collagen products
Revenue increased by 37% to £13.0 million (2024 H1: £9.5 million) and by 40%
at constant currency, including sales associated with Syntacoll acquired in
April 2024.
Underlying growth was driven by a strong performance in collagen products,
supported by enhanced manufacturing efficiency and the subsequent resolution
of back-orders experienced in 2024. The acquisition of Syntacoll has also
positively impacted sales of antibiotic-eluting collagens.
The Group sees enormous US potential for its collagen and bone substitutes,
particularly the drug-eluting products that will follow initial drug-free
variants. By the end of 2026, the Group expects to achieve its first ever
collagen US approval as well as EU and US approvals for its innovative
Freeze-Dried Bone Substitute (FDBS). US approvals and launch of drug-eluting
variants of both products are planned in subsequent years.
Other Distributed Products - Positive effect of Peters acquisition
Revenue increased by 163% on a reported basis and 169% on a constant currency
basis to £8.0 million (2024 H1: £3.0 million), predominantly due to the
addition of Peters Surgical.
Woundcare - Strong recovery from prior period decline
Revenue for the Woundcare Business Unit increased by 17% in the Period to
£22.9 million (2024 H1: £19.5 million) on a reported basis and by 18% on a
constant currency basis, making a strong recovery from the prior period
decline. The previously announced restructuring of the Woundcare Business Unit
was successfully completed as planned by the end of Q1 2025 resulting in
reduced investment in lower-margin areas and a sharper focus on higher-margin
products. The Board remains confident in achieving double-digit operating
margins from Q2 2025.
Woundcare Business Unit 2025 H1 2024 H1 Reported Growth¹ Growth at constant currency
£ million £ million
Infection and Exudate Management 21.6 17.2 26% 26%
Other Woundcare 1.3 2.3 -46% -45%
TOTAL 22.9 19.5 17% 18%
Infection and Exudate Management - Solid recovery from prior adverse order
phasing
Infection and Exudate Management revenue increased by 26% to £21.6 million
(2024 H1: £17.2 million) on both a reported and constant currency basis which
reflects a recovery from adverse order phasing in the prior period. Several
long-standing development projects have now been completed and are beginning
to contribute positively to revenue. In addition, new OEM contracts secured
during the Period have also further supported growth.
Other Woundcare - Lower royalties as expected
Other Woundcare comprises royalties, fees and woundcare sealants. Revenue
reduced by 46% at reported currency and by 45% at constant currency to £1.3
million (2024 H1: £2.3 million) as a result of lower royalty income from the
Group's licensing arrangement with Organogenesis, as previously announced.
US Tariffs
Export order volumes were initially impacted by US tariffs, especially in the
early period where tariff rates were substantially higher, although normal
ordering has now resumed. Based on current tariff rates and contractual
arrangements, it is estimated that the annual cost of tariffs could settle at
between £1 million and £2 million p.a (approximately 2% - 4% of EBITDA). The
Group continues to actively manage its exposure to US tariffs through ongoing
reviews of contracts with its partners and supply chain optimisation.
Environmental, Social & Governance
The new Group Sustainability Team made good progress in the Period, publishing
the first Carbon Reduction Plan for the enlarged Group, which covered all
sites and reinforces our Net Zero ambition for 2045. Our next focus will be on
creating a detailed action plan in order to file to be aligned with the
Science Based Targets Initiative (SBTi) in 2026. Going forward, our EDI
Committee (AMS Together) and ESG Rep program will continue to engage with
employees and ensure our activities reflect the new Purpose, Mission and
Values. We have also started a double materiality analysis, which is required
for the Corporate Social Responsibility Directive (CSRD), for the enlarged
Group. The outcomes will help us adjust the ESG long-term strategy.
Stakeholders
On behalf of the Board, I would like to thank the Group's committed staff,
partners and other stakeholders, without whose help and commitment the
achievements during the Period would not have been possible.
About our Business Units
Surgical
The Surgical Business Unit includes tissue adhesives, sutures, biosurgical
devices and internal fixation devices marketed under the AMS brands
LiquiBand(®), RESORBA(®), LiquiBandFix8(®), LIQUIFIX(TM), Peters Surgical,
IFABOND(®) and Vitalitec.
Advanced Closure
LiquiBand(®) is a range of topical skin adhesives, incorporating medical
grade cyanoacrylate in combination with purpose-built applicators. These
products are used to close and protect a broad variety of surgical and
traumatic wounds.
Internal Fixation and Sealants
AMS's internal fixation portfolio has been strengthened with the addition of
IFABOND(®) to the existing LIQUIFIX(TM) / LiquiBandFix8(®) range.
LIQUIFIX(TM) / LiquiBandFix8(®) secures meshes inside the body with
accurately delivered drops of fast-setting butyl cyanoacrylate adhesive,
whereas IFABOND(®) uses hexyl cyanoacrylate that is more flexible and
resorbable and has European approvals not only for mesh fixation, but also for
tissue fixation, prolapse repair and bariatric surgery.
Suture, Clips and VTO
The RESORBA(®) portfolio of general, dental and ophthalmic sutures is
strengthened and complemented by the sutures, clips and Vascular Temporary
Occlusion ('VTO') devices from the Peters acquisition that also bring strong
Cardio-Vascular specialisation and brand recognition.
Biosurgical devices
The Biosurgical Devices category comprises antibiotic-loaded collagen sponges,
collagen membranes and cones, oxidised cellulose, synthetic bone substitutes
and bio-absorbable screws.
Other Distributed Products
The Other Distributed products category comprises products distributed through
AFS Medical in Austria and Peters Surgical in France, including minimally
invasive access ports and laparoscopic instruments. This category excludes
sales of LiquiBandFix8(®) which are recorded within the Internal Fixation and
Sealants category.
Woundcare
The Woundcare Business Unit is comprised of the Group's multi-product
portfolio of advanced woundcare dressings sold under its partners' brands and
the ActivHeal(®) label, plus a portfolio of specialist medical bulk materials
and multi-layer woundcare products.
Financial Review
IFRS reporting
The Group uses alternative performance measures as we believe this provides
both management and investors with a more effective comparison of the Group's
trading performance. These measures are not defined in International Financial
Reporting Standards (IFRS) and, therefore, are considered to be non-GAAP
(Generally Accepted Accounting Principles) measures. Accordingly, the relevant
IFRS measures are also presented where appropriate. AMS uses such measures
consistently at the half-year and full-year and reconciles them as
appropriate. Constant currency revenue growth is a non-GAAP measure used to
compare revenue on a like-for-like basis. Adjusted operating margin and
profit, adjusted EBITDA, adjusted profit before tax and adjusted earnings per
share are non-GAAP measures that allow the impacts of exceptional items,
amortisation and the movement in long-term acquisition liabilities to be
separately identified and to provide a more effective comparison of the
Group's profitability. Net debt/cash is an additional non-GAAP measure used
and provides a useful overview of the Group's financial position.
Overview
Following the transformative acquisition of Peters Surgical in 2024, The
Group's revenue has increased by 63% at reported currency to £110.8 million
(2024 H1: £68.0 million) and by 66% at constant currency, as summarised in
the Chief Executive's Review.
Gross profit increased to £59.3 million (2024 H1: £36.9 million) as a result
of the Peters Surgical acquisition although gross margin decreased to 53.5%
(2024 H1: 54.3%) as Peters delivers a lower average gross margin as well as
the impact of the declining Organogenesis royalty. The strong performance of
Woundcare has also diluted the average gross margin achieved by the Group.
Administration expenses, before exceptional items, were £44.3 million (2024
H1: £25.0 million) which includes approximately £13 million relating to
Peters Surgical. Investment in R&D, sales and marketing has increased to
support further growth, whilst overall costs have increased in a number of
support functions to manage and integrate the enlarged Group.
Exceptional items totalling £3.0 million (2024 H1: £7.5 million) have been
incurred in the period as a result of the Group's transformation projects to
deliver significant synergies following the acquisition of Peters Surgical and
Syntacoll in 2024 as summarised in the operational highlights section.
Investment in R&D has increased to £6.9 million (2024 H1: £5.6 million)
following the Peters Surgical acquisition. This represents 6.2% (2024 H1:
8.2%) of revenue which is a decline as Peters has lower R&D spend as a
proportion of revenue when compared to historical AMS investment levels.
Additionally the amount of R&D investment required to comply with the
Medical Device Regulation ("MDR") continues to decline as demonstrated by the
lower levels of R&D capitalisation in the period.
H1 2025 H1 2024
£'000 £'000
Total investment in Research and Development, Regulatory and Clinical 6,910 5,593
Of which:
Charged to the profit and loss account 5,296 3,448
Capitalised, to be amortised over 5-10 years 1,614 2,145
Amortisation of acquired intangible assets increased to £5.2 million (2024
H1: £2.5 million) due to the impact of the Peters Surgical acquisition in
July 2024.
Adjusted operating profit(6), which excludes amortisation of acquired
intangibles and exceptional items, increased by 35% to £18.9 million (2024
H1: £14.0 million) whilst the adjusted operating margin decreased by 350bps
to 17.0% (2024 H1: 20.5%) due to the dilutive impact of Peters Surgical which
currently achieves lower levels of operating margin than the legacy AMS
Surgical business.
6 Reconciled in note 19 of the financial information. Excludes the
impact of exceptional items and amortisation of acquired intangibles
Movement in long-term acquisition liabilities of Sealantis, AFS, Connexicon
and Peters resulted in a net credit of £0.2 million (2024 H1: £0.9 million
credit), as a result of the £0.7 million FY24 Peters earn-out being
marginally lower than initially expected. The final €0.5 million contingent
earn-out payment relating to the 2022 acquisition of AFS was made in the
period after it successfully met the FY24 EBITDA milestone.
The Group delivered adjusted EBITDA of £24.4 million (2024: £17.2 million),
a 42% increase following the Peters acquisition and change from a net interest
received of £1.8 million in the prior period to a £2.3 million net interest
expense position in the current period.
Reconciliation of operating profit to adjusted EBITDA
H1 2025 H1 2024
£'000 £'000
Operating profit 10,727 3,943
Amortisation of acquired intangibles 5,164 2,468
Amortisation of other intangibles 1,597 801
Depreciation 3,912 2,434
Exceptional items 2,988 7,544
Adjusted EBITDA 24,388 17,190
Adjusted profit before tax increased by 11% to £16.4 million (2024 H1: £14.8
million), despite numerous headwinds including US tariffs and the UK
governments increase in employer national insurance. Reported profit before
tax increased to £8.5 million (2024 H1: £5.7 million) as a result of the
significant exceptional items incurred in the prior period.
Reconciliation of profit before tax to adjusted profit before tax
H1 2025 H1 2024
£'000 £'000
Profit before tax 8,463 5,695
Amortisation of acquired intangibles 5,164 2,468
Exceptional items 2,988 7,544
Movement in long-term acquisition liabilities (232) (895)
Adjusted profit before tax 16,383 14,812
The Group's effective corporation tax rate, reflecting the blended tax rates
in the countries where we operate and including UK patent box relief,
increased to 27.2% (2024 H1: 26.7%) with the main driver being ongoing strong
performance in the US where the effective tax rate has increased and
non-deductible tax losses in certain jurisdictions which increases the Group's
effective rate.
Adjusted diluted earnings per share as defined in note 4 of the financial
information, increased by 9% to 5.67p (2024 H1: 5.21p) reflecting the Group's
ongoing growth. Diluted earnings per share increased by 48% to 2.84p (2024 H1:
1.92p) whilst basic earnings per share increased by 48% to 2.89p (2024: 1.95p)
as a result of significantly more exceptional items incurred in the prior
period.
The Board intends to pay an interim dividend of 0.85p per share on 24 October
2025 to shareholders on the register at the close of business on 26 September
2025. This is a 10% increase on the interim dividend paid in respect of the
first half of 2025 reflecting the Board's ongoing confidence in the future
growth in the Group.
Operating result by business segment
Six months ended 30 June 2025 Surgical Woundcare
£'000 £'000
Revenue 87,902 22,867
Profit from operations 12,863 1,379
Amortisation of acquired intangibles 4,694 470
Adjusted operating profit(7) 17,557 1,849
Adjusted operating margin 20.0% 8.1%
Adjusted EBITDA(8) 21,895 3,020
Adjusted EBITDA margin 24.9% 13.2%
Six months ended 30 June 2024
Revenue 48,439 19,547
Profit from operations 11,375 776
Amortisation of acquired intangibles 1,998 470
Adjusted operating profit(7) 13,373 1,246
Adjusted operating margin 27.6% 6.4%
Adjusted EBITDA(8) 15,594 2,260
Adjusted EBITDA margin 32.2% 11.6%
7 Reconciled in note 5 of the financial information. Excludes the impact
of exceptional items and amortisation of acquired intangibles
8 Reconciled in note 19 of the financial information. Excludes the
impact of exceptional items, depreciation, amortisation, interest and
taxation.
Surgical
Surgical revenues increased by 81% to £87.9 million (2024 H1: £48.4 million)
at reported currency and increased by 86% at constant currency. Adjusted
EBITDA margin decreased 730 bps to 24.9% (2024 H1: 32.2%) due to the dilutive
impact of Peters Surgical which currently has a lower margin than the legacy
AMS Surgical business.
Woundcare
Woundcare revenues increased by 17% to £22.9 million (2024 H1: £19.5
million) at reported currency and 18% at a constant currency, offsetting
declines in the prior period despite the declining Organogenesis royalty.
Adjusted EBITDA margin increased by 160 bps to 13.2% (2024 H1: 11.6%)
predominately due to increased volumes and a focus on higher margin products
although the declining Organogenesis royalty adversely impacts margin.
Currency
The Group hedges significant currency transaction exposure by using forward
contracts and aims to hedge approximately 80% of its estimated transactional
exposure for the next 18 months. In the first half of the year, approximately
one third of sales were invoiced in Euros and approximately one third were
invoiced in US Dollars. Following the acquisition of Peters Surgical, the
Group has facilities in a number of additional countries including Thailand
and India with associated currency exposure which are not believed to be
material at this time. This will remain under consideration as the Group
continues to grow.
The Group estimates that a 10% movement in the £:US$ or £:€ exchange rate
will impact Sterling revenues by approximately 2.6% and 4.7% respectively and
in the absence of any hedging this would have an impact on the Group operating
margin of 1.6% and 0.2% percentage points respectively. Given the significant
cost base in Euro currency, the Euro currency transaction exposure has a
minimal impact on Group Operating Margin, and hence the Group has decided to
only hedge US Dollar currency transaction exposure over the next 18 months.
Cash Flow
Adjusted net cash inflow from operating activities has increased to £18.4
million (2024 H1: £10.8 million) due to increased operating profit when
excluding the impact of exceptional items. Net cash inflow from operating
activities increased significantly to £15.1 million (2024 H1: £7.0 million).
The prior period included significant acquisition related payments in relation
to the Peters Surgical acquisition. Additional information on working capital
movements is explained below.
Reconciliation of Net cash inflow from operating activities to Adjusted net
cash inflow from operating activities
(Unaudited) (unaudited)
Six months ended Six months ended
30 June 2025 30 June 2024
Net cash inflow from operating activities 15,138 6,962
Add back exceptional items 3,213 3,841
Adjusted net cash inflow from operating activities 18,351 10,803
At the end of the Period, net debt stands at £50.1 million, a decrease from
the year-end position of £55.8 million as the Group was able to use positive
operational cash flows to reduce its debt. The Group repaid £8.0 million of
its joint facility with NatWest and HSBC which stands at £64 million. The
facility comprised of £60 million outstanding on Facility A, a £60 million
term loan facility with the first £5 million annual repayment due on 1(st)
July 2025 and £4 million outstanding on Facility B, a £30 million
multi-currency revolving credit facility. The interest rate on both facilities
is based on SONIA plus a margin based on the Groups net leverage. This margin
dropped from 1.75% to 1.5% during the period.
£4.5 million of borrowings has been received during the period from the
Peters Surgical factoring facility.
The Groups covenants require Interest cover to be not less than 4.0:1.0 and
net leverage in respect of each relevant period shall not exceed 3.0:1.0.
Interest cover is calculated as a ratio of Adjusted EBITDA to Net Finance
Charge in respect of any relevant period. Net leverage is calculated as a
ratio of Total Net Debt on the last day of that relevant period to Adjusted
EBITDA in respect of that relevant period.
In the first half of 2025, receivables decreased by £2.3 million (2024 H1:
£2.9 million increase) from a particularly high year-end point. Debtor days
decreased to 49 from 53 days at year-end (2024 H1: 47 days) which was noted at
year-end as being slightly higher than usual.
Trade, other payables and other non-current liabilities declined slightly to
£37.0 million against the year-end position of £37.6 million as a result of
earn-out payments being made in the period. Creditor days of 35 days was
consistent with the year-end position of 35 days and marginally below the
previous period reporting (2024 H1: 37 days).
Inventory levels increased by £6.8 million (2024 H1: £2.5 million increase)
as the Group has built Inventory to support growth as well as resolving
certain back-order situations within a number of ex-Peters Surgical sites.
Inventory cover for the period has increased to 6.6 months of supply in
comparison to 6.0 months at year-end (2024 H1: 7.3 months) which is required
to fulfil the strong H2 order book as well as manage supply chain risks
appropriately.
In the period, the group invested £4.1 million in capital equipment, R&D
and regulatory costs, an increase from the prior period (2024 H1: £3.8
million) as the additional investment following the Peters Surgical
acquisition has been largely offset by reducing levels of investment required
for MDR.
Tax payments decreased to £2.3 million (2024 H1: £2.9 million) which is
consistent with expense in the income statement.
CONDENSED CONSOLIDATED INCOME STATEMENT
(Unaudited) (Unaudited) (Audited)
Six months ended 30 June 2025 Six months ended 30 June 2024 Year ended 31 December 2024
Before Exceptional Before Exceptional Before Exceptional
Exceptional Items Exceptional Items Exceptional Items
Items Note 8 Total Items Note 8 Total Items Note 8 Total
Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Revenue from continuing operations 5 110,769 - 110,769 67,986 - 67,986 177,521 - 177,521
Cost of sales (51,515) - (51,515) (31,091) - (31,091) (84,903) - (84,903)
Gross profit 59,254 - 59,254 36,895 - 36,895 92,618 - 92,618
Distribution costs (1,586) - (1,586) (812) - (812) (2,348) - (2,348)
Administration costs (44,278) (2,988) (47,266) (25,039) (7,544) (32,583) (69,033) (10,924) (79,957)
Other income 325 - 325 443 - 443 906 - 906
Operating profit 13,715 (2,988) 10,727 11,487 (7,544) 3,943 22,143 (10,924) 11,219
Finance income 358 - 358 2,024 - 2,024 2,161 - 2,161
Finance costs (2,622) - (2,622) (272) - (272) (3,557) - (3,557)
Profit before taxation 11,451 (2,988) 8,463 13,239 (7,544) 5,695 20,747 (10,924) 9,823
Income tax 7 (2,990) 685 (2,305) (3,167) 1,648 (1,519) (4,662) 1,981 (2,681)
Profit for the Period 8,461 (2,303) 6,158 10,072 (5,896) 4,176 16,085 (8,943) 7,142
Profit for the Period attributable to equity holders of the parent 8,508 (2,303) 6,205 10.072 (5,896) 4,176 16,037 (8,943) 7,094
Non-controlling interest (47) - (47) - - - 48 - 48
Earnings per share
Basic 4 3.96p (1.07p) 2.89p 4.70p (2.75p) 1.95p 7.48p (4.17p) 3.31p
Diluted 4 3.89p (1.05p) 2.84p 4.63p (2.71p) 1.92p 7.35p (4.10p) 3.25p
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
£'000 £'000 £'000
Profit for the period 6,158 4,176 7,142
Exchange differences on translation of foreign operations 3,505 (3,010) (6,177)
Gain/(loss) arising on cash flow hedges 4,136 (431) (3,104)
Deferred tax (charge)/credit arising on cash flow hedges (739) (212) 664
Other comprehensive credit/(charge) for the period 6,902 (3,653) (8,617)
Total comprehensive income/(loss) for the period 13,060 523 (1,475)
( )
( )
Total comprehensive income/(loss) for the year attributable equity holders of 13,107 523 (1,523)
the parent
Total comprehensive (loss)/ income for the year attributable to (47) - 48
Non-controlling interest
( )
(
)
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(Unaudited) (Unaudited) (Audited)
30 June 2025 30 June 2024 31 December 2024
Note £'000 £'000 £'000
Assets
Non-current assets
Intangible assets 94,329 54,327 97,412
Goodwill 11 118,953 78,993 116,884
Property, plant and equipment 46,573 30,767 45,871
Deferred tax assets 1,268 515 1,022
Derivative financial assets 910 111 -
Trade and other receivables 1,080 71 1,029
263,113 164,784 262,218
Current assets
Inventories 62,019 38,564 55,259
Trade and other receivables 50,093 27,440 52,451
Current tax assets 827 497 1,233
Derivative financial assets 2,045 1,556 296
Cash and cash equivalents 19,339 134,944 17,039
134,323 203,001 126,278
Total assets 397,436 367,785 388,496
Liabilities
Current liabilities
Trade and other payables 32,752 22,089 33,782
Borrowings 10 9,470 - 5,421
Current tax liabilities 1,290 569 1,780
Derivative financial liabilities - - 261
Lease liabilities 3,208 1,534 3,087
46,720 24,192 44,331
Non-current liabilities
Other non-current liabilities 4,264 2,863 3,873
Borrowings 10 59,956 79,325 67,428
Derivative financial liabilities - - 474
Deferred tax liabilities 19,821 9,580 20,246
Lease liabilities 9,741 9,015 10,628
93,782 100,783 102,649
Total liabilities 140,502 124,975 146,980
Net assets 256,934 242,810 241,516
Equity
Share capital 13 10,961 10,881 10,892
Share premium 37,691 37,473 37,525
Other reserves 13 18,795 15,085 16,625
Hedging reserve 2,957 1,357 (440)
Translation reserve (794) (1,132) (4,299)
Retained earnings 186,632 179,146 180,474
Equity attributable to equity holders of the parent 256,242 242,810 240,777
Non-Controlling interests 13 692 - 739
Total equity 256,934 242,810 241,516
CONDENSED CONSOLIDATED Statement of Changes in Equity
Attributable to equity holders of the Group
Total
Share Share Other Hedging Translation Retained attributable to owners Non-controlling
capital premium reserve reserve reserve earnings £'000 Interest Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2025 (audited) 10,892 37,525 16,625 (440) (4,299) 180,474 240,777 739 241,516
Consolidated profit for the period to 30 June 2025 - - - - - 6,158 6,158 - 6,158
Other comprehensive income - - - 3,397 3,505 - 6,902 - 6,902
Total comprehensive income - - - 3,397 3,505 6,158 13,060 - 13,060
Share-based payments - - 1,900 - - - 1,900 - 1,900
Excess Deferred tax on share-based payments - - 237 - - - 237 - 237
Share options exercised 69 166 33 - - - 268 - 268
Changes in non-controlling interest - - - - - - - (47) (47)
Dividends paid (Note 9) - - - - - - - - -
At 30 June 2025 (unaudited) 10,961 37,691 18,795 2,957 (794) 186,632 256,242 692 256,934
Total
Share Share Other Hedging Translation Retained attributable to owners Non-controlling
capital premium reserve reserve reserve earnings £'000 Interest Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2024 (audited) 10,865 37,473 13,453 2,000 1,878 178,533 244,202 - 244,202
Consolidated profit for the period to 30 June 2024 - - - - - 4,176 4,176 - 4,176
Other comprehensive expense - - - (643) (3,010) - (3,653) - (3,653)
Total comprehensive (expense)/income - - - (643) (3,010) 4,176 523 - 523
Share-based payments - - 1,450 - - - 1,450 - 1,450
Excess Deferred tax on share-based payments - - 175 - - - 175 - 175
Share options exercised 16 - 7 - - - 23 - 23
Changes in non-controlling interest - - - - - - - - -
Dividends paid (Note 9) - - - - - (3,563) (3,563) - (3,563)
At 30 June 2024 (unaudited) 10,881 37,473 15,085 1,357 (1,132) 179,146 242,810 - 242,810
Total
Share Share Other Hedging Translation Retained attributable to owners Non-controlling
capital premium reserve reserve reserve earnings £'000 Interest Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2024 (audited) 10,865 37,473 13,453 2,000 1,878 178,533 244,202 - 244,202
Consolidated profit for the year to 31 December 2024 - - - - - 7,142 7,142 - 7,142
Other comprehensive expense - - - (2,440) (6,177) - (8,617) - (8,617)
Total comprehensive (expense)/income - - - (2,440) (6,177) 7,142 (1,475) - (1,475)
Share-based payments - - 3,086 - - - 3,086 - 3,086
Excess Deferred tax on share-based payments - - 74 - - - 74 - 74
Share options exercised 27 52 12 - - - 91 - 91
Changes in non-controlling interest - - - - - - - 739 739
Dividends paid (Note 9) - - - - - (5,201) (5,201) - (5,201)
At 31 December 2024 (audited) 10,892 37,525 16,625 (440) (4,299) 180,474 240,777 739 241,516
( )
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended ended
30 June 2025 30 June 2024 31 December 2024
Note £'000 £'000 £'000
Cash flows from operating activities
Operating profit 10,727 3,943 11,219
Adjustments for:
Depreciation 3,912 2,434 6,453
Amortisation - acquired intangible assets 5,164 2,468 7,804
- development costs 1,297 574 1,508
- software intangibles 300 227 537
Increase in inventories (7,068) (2,477) (2)
Increase/(decrease) in trade and other receivables 1,017 (4,288) (10,384)
(Decrease)/Increase in trade and other payables 208 5,519 4,318
Share-based payments expense 1,900 1,450 3,086
Taxation paid (2,319) (2,888) (5,050)
Net cash inflow from operating activities 15,138 6,962 19,489
Cash flows from investing activities
Purchase of software (160) (152) (572)
Capitalised development costs (1,614) (2,145) (4,115)
Purchases of property, plant and equipment (2,351) (1,546) (4,057)
Proceeds from disposal of property, plant and equipment - 6 27
Interest received 135 1,064 1,229
Acquisitions (net of cash acquired) - (899) (54,132)
Payment of contingent consideration (1,064) (2,998) (5,529)
Net cash used in investing activities (5,054) (6,670) (67,149)
Cash flows from financing activities
Dividends paid 9 - (3,563) (5,201)
Repayment of principal under lease liabilities (1,659) (876) (2,605)
Repayment of borrowings 10 (8,191) - (62,192)
New Borrowings received 10 4,504 79,325 79,453
Issue of equity shares 172 (41) 12
Interest paid (2,490) (196) (3,989)
Net cash used in financing activities (7,664) 74,649 5,478
Net increase/(decrease) in cash and cash equivalents 2,420 74,941 (42,182)
Cash and cash equivalents at the beginning of the period 17,039 60,160 60,160
Effect of foreign exchange rate changes (120) (157) (939)
Cash and cash equivalents at the end of the period 19,339 134,944 17,039
Notes Forming Part of the Consolidated Financial Statements
1. Reporting entity
Advanced Medical Solutions Group plc ("the Company") is a public limited
company incorporated and domiciled in England and Wales (registration number
2867684). The Company's registered address is Premier Park, 33 Road One,
Winsford Industrial Estate, Cheshire, CW7 3RT.
The Company's ordinary shares are traded on the AIM market of the London Stock
Exchange plc. The consolidated financial statements of the Company for the six
months ended 30 June 2025 comprise the Company and its subsidiaries (together
referred to as the "Group").
The Group is primarily involved in the design, development and manufacture of
innovative tissue-healing technology for sale into the global medical device
market.
2. Basis of preparation
The information for the period ended 30 June 2025 does not constitute
statutory accounts as defined in section 434 of the Companies Act 2006. A copy
of the statutory accounts for the year ended 31 December 2024 has been
delivered to the Registrar of Companies. The auditor reported on those
accounts; their report was unqualified, did not draw attention to any matters
of emphasis without qualifying the report and did not contain a statement
under section 498 (2) or (3) of the Companies Act 2006.
The individual financial statements for each Group company are presented in
the currency of the primary economic environment in which it operates (its
functional currency). For the purpose of the consolidated financial
statements, the results and financial position of each Group company are
expressed in pounds sterling, which is the functional currency of the Company
and the presentation currency for the consolidated financial statements. All
revenue relates to external customers.
3. Accounting policies
The same accounting policies, presentations and methods of computation are
followed in the condensed set of financial statements as applied in the
Group's latest annual audited financial apart from the adoption of the
following new or amended IFRS and Interpretations issued by the International
Accounting Standards Board (IASB):
· Amendments to IAS 21 The Effects of Changes in Foreign Exchange
Rates: Lack of Exchangeability
No revised standards adopted in the current period have had a material impact
on the Group's financial statements.
The unaudited condensed set of financial statements included in this
half-yearly financial report have been prepared in accordance with
International Accounting Standard 34 'Interim Financial Reporting', as adopted
by the United Kingdom. These condensed interim accounts should be read in
conjunction with the annual accounts of the Group for the year ended 31
December 2024. The annual financial statements of Advanced Medical Solutions
Group plc are prepared in accordance with International Financial Reporting
Standards as adopted by the United Kingdom.
4. Earnings per share
(Unaudited) (Unaudited)
Six months Six months (Audited)
ended ended Year ended
30 June 2025 30 June 2024 31 December 2024
Number of shares '000 '000 '000
Weighted average number of ordinary shares 218,153 217,395 217,561
Basic weighted average number of shares held by Employee Benefit Trust (3,222) (3,222) (3,222)
Weighted average number of ordinary shares for the purposes of basic earnings 214,931 214,173 214,339
per share
Effect of dilutive potential ordinary shares: share options, deferred annual 3,856 3,536 3,959
bonus, Share Incentive Plan, LTIPs
Weighted average number of ordinary shares for the purposes of diluted 218,787 217,709 218,298
earnings per share
Basic EPS is calculated by dividing the earnings attributable to ordinary
shareholders by the weighted average number of shares outstanding during the
period.
Diluted EPS is calculated on the same basis as basic EPS but with the further
adjustment to the weighted average shares in issue to reflect the effect of
all potentially dilutive share options. The number of potentially dilutive
share options is derived from the number of share options and awards granted
to employees where the exercise price is less than the average market price of
the Company's ordinary shares during the period.
Adjusted earnings per share
Adjusted EPS is calculated after adding back amortisation of acquired
intangible assets, exceptional items and movement in long-term acquisition
liabilities and is based on earnings of:
(Unaudited) (Unaudited)
Six months Six months (Audited)
ended ended Year ended
30 June 2025 30 June 2024 31 December 2024
£'000 £'000 £'000
Earnings
Profit for the year being attributable to equity holders of the parent 6,205 4,176 7,094
Exceptional items 2,988 7,544 10,924
Tax impact of adjusted items (1,723) (1,956) (3,857)
Amortisation of acquired intangible assets 5,164 2,468 7,804
Movement in long-term acquisition liabilities (232) (895) (868)
Unwind of Inventory fair-value accounting - - 1,726
Adjusted profit for the year being attributable to equity holders of the 12,402 11,337 22,823
parent
pence pence pence
Basic EPS 2.89 1.95 3.31
Diluted EPS 2.84 1.92 3.25
Adjusted basic EPS 5.77 5.29 10.65
Adjusted diluted EPS 5.67 5.21 10.45
The denominators used are the same as those detailed above for both basic and
diluted earnings per share.
The adjusted diluted EPS information is considered to provide an alternative
representation of the Group's trading performance, consistent with the view of
management.
5. Segment information
Segment results, assets and liabilities include items directly attributable to
a segment as well as those that can be allocated on a reasonable basis.
Unallocated items comprise mainly investments and related revenue, corporate
assets, head office expenses, exceptional items, income tax assets and the
Group's external borrowings. These are the measures reported to the Group's
Chief Executive for the purposes of resource allocation and assessment of
segment performance.
Business segments
The principal activities of the business units are as follows:
Surgical
Selling, marketing and innovation of the Group's surgical products either sold
directly by our sales teams or by distributors.
Woundcare
Selling, marketing and innovation of the Group's advanced woundcare products
supplied under partner brands, bulk materials and the ActivHeal(®) brand
predominantly to the UK NHS as well as bio diagnostics products following the
acquisition of Raleigh.
Segment information about these Business Units is presented below:
Six months ended Surgical Woundcare Consolidated
30 June 2025
(Unaudited) £'000 £'000 £'000
Revenue 87,902 22,867 110,769
Result
Adjusted segment operating profit 17,557 1,849 19,406
Amortisation of acquired intangibles (4,694) (470) (5,164)
Segment operating profit 12,863 1,379 14,242
Unallocated expenses (527)
Exceptional items (2,988)
Operating profit 10,727
Finance income 358
Finance costs (2,622)
Profit before tax 8,463
Tax (2,305)
Profit for the period 6,158
At 30 June 2025 Surgical Woundcare Consolidated
(Unaudited)
Other information £'000 £'000 £'000
Capital additions/(disposals):
Software intangibles 130 30 160
Development 1,376 238 1,614
Property, plant and equipment 2,741 (390) 2,351
Depreciation and amortisation (9,032) (1,641) (10,673)
Balance sheet
Assets
Segment assets 340,561 56,875 397,436
Liabilities
Segment liabilities 118,671 20,828 139,499
Unallocated liabilities 1,003
Consolidated total liabilities 140,502
Six months ended
30 June 2024 Surgical Woundcare Consolidated
(Unaudited) £'000 £'000 £'000
Revenue 48,439 19,547 67,986
Result
Adjusted segment operating profit 13,373 1,246 14,619
Amortisation of acquired intangibles (1,998) (470) (2,468)
Segment operating profit 11,375 776 12,151
Unallocated expenses (664)
Exceptional items (7,544)
Operating profit 3,943
Finance income 2,024
Finance costs (272)
Profit before tax 5,695
Tax (1,519)
Profit for the period 4,176
At 30 June 2024 Surgical Woundcare Consolidated
(Unaudited)
Other information £'000 £'000 £'000
Capital additions/(disposals):
Software intangibles 102 50 152
Development 1,867 278 2,145
Property, plant and equipment 1,024 522 1,546
Depreciation and amortisation (4,219) (1,484) (5,703)
Balance sheet
Assets
Segment assets 278,125 88,985 367,110
Unallocated assets 675
Consolidated total assets 367,785
Liabilities
Segment liabilities 81,994 38,893 120,887
Unallocated liabilities 4,088
Consolidated total liabilities 124,975
Year ended
31 December 2024 Surgical Woundcare Consolidated
(Audited) £'000 £'000 £'000
Revenue 135,768 41,753 177,521
Result
Adjusted segment operating profit 30,132 2,604 32,736
Amortisation of acquired intangibles (6,864) (940) (7,804)
Segment operating profit 23,268 1,664 24,932
Exceptional items (10,924)
Unallocated expenses (2,789)
Operating profit 11,219
Finance income 2,161
Finance costs (3,557)
Profit before tax 9,823
Tax (2,681)
Profit for the year 7,142
At 31 December 2024
(Audited) Surgical Woundcare Consolidated
Other information £'000 £'000 £'000
Capital additions/(disposals):
Software intangibles 494 78 572
Development 3,517 598 4,115
Property, plant and equipment 2,607 1,450 4,057
Depreciation and amortisation (13,198) (3,104) (16,302)
Balance sheet
Assets
Segment assets 333,709 55,787 388,496
Liabilities
Segment liabilities 115,729 30,023 145,752
Unallocated liabilities 1,228
Consolidated total liabilities 146,980
Geographical segments
Segment revenue is based on the geographical location of customers. Segment
assets are based on the country by which the legal entity resides.
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
Segmental Revenue £'000 £'000 £'000
United Kingdom 8,516 7,921 16,606
Germany 14,916 11,954 32,288
France 13,242 2,546 14,790
Rest of Europe 28,402 20,467 46,314
United States of America 27,403 19,593 43,382
Rest of World 18,290 5,505 24,141
110,769 67,986 177,521
The following table provides an analysis of the Group's total non-current
assets by geographical location:
(Unaudited) (Unaudited) (Audited)
30 June 2025 30 June 2024 31 December 2024
Segmental Assets £'000 £'000 £'000
United Kingdom 46,803 46,347 46,027
Germany 66,144 61,710 64,538
France 99,598 8,616 99,539
Rest of Europe 29,456 30,517 29,686
Rest of world 21,112 17,594 22,428
263,113 164,784 262,218
6. Financial Instruments' fair value disclosures
It is the policy of the Group to enter into forward foreign exchange contracts
to cover specific foreign currency payments and receipts.
The Group held the following financial instruments at fair value at 30 June
2025 which are categorised as a Level 2 measurement in the fair value
hierarchy under IFRS 13 Fair Value Measurements. The fair value amounts
presented below are the difference between the market value of equivalent
instruments at the Statement of Financial Position date determined using the
mid-market price and the contract value of the instruments. No profits or
losses are included in operating profit in the year (30 June 2024: £nil, 31
December 2024: £nil) in respect of FVTPL contracts.
The following table details the forward foreign currency contracts outstanding
as at the period end:
Ave. exchange rate Foreign currency Fair value
30 June 25 30 June 24 31 Dec 24 30 June 25 30 June 24 31 Dec 24 30 June 25 30 June 24 31 Dec 24
USD:£1 USD:£1 USD:£1 USD'000 USD'000 USD'000 £'000 £'000 £'000
Cash flow hedges
Sell US dollars
Less than 3 months 1.23 1.07 1.28 9,000 8,500 9,500 734 1,178 (143)
3 to 6 months 1.26 1.23 1.23 9,000 10,000 8,500 561 202 131
7 to 12 months 1.30 1.25 1.25 18,000 15,000 18,000 750 176 47
Over 12 months 1.28 1.24 1.30 18,000 15,000 18,000 910 253 (474)
54,000 48,500 54,000 2,955 1,809 (439)
7. Taxation
The weighted average tax rate for the Group for the six-month period ended 30
June 2025 was 27.7% (first half of 2024: 28.2%, year ended 31 December 2024:
29.0%).
The Group's effective tax rate for the full year is expected to be 27.2%,
which has been applied to the six months ended 30 June 2025 (first half of
2024: 26.7%, year ended 31 December 2024: 27.3%). This represents an increase
on the previous period with the main driver being ongoing strong performance
in the US where the effective tax rate has increased and non-deductible tax
losses in certain jurisdictions which increases the Group's effective rate.
8. Exceptional items
As noted in the Financial Review, exceptional items totalling £3.0 million
(2024 H1: £7.5 million) have been incurred in the period. These costs have
been deemed exceptional items as the Group's transformation projects are
significant in nature and cost and will yield significant benefits in future
periods. Therefore the Group's performance has been summarised including and
excluding these costs to give additional information to the users of the
financial statements.
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
Exceptional items: £'000 £'000 £'000
Integration activities 2,504 - 1,927
Restructuring 484 - -
Syntacoll - 1,310 1,890
Risk Management - 2,017 2,017
Peters acquisition-related - 4,217 5,090
2,988 7,544 10,924
Integration-related costs predominately relate to consultancy services to lead
the integration project as well as the costs of an internal dedicated
integration team and other relevant integration activities.
Restructuring costs relate to costs incurred re-organising certain operations
and are primarily employee related.
In the prior periods, Syntacoll exceptional costs relate to legal fees, staff
termination costs, an initial idle period following when no manufacturing was
undertaken and some integration related costs. Risk management exceptional
costs relate to foreign currency risk management costs to protect against
adverse movements in the euro rate whilst the Group awaited FDI approval to
complete the acquisition of Peters Surgical. Risk and warranty insurance was
also obtained. Acquisition related costs include costs for advisory services,
legal, financial, tax, HR and operational due diligence services, as well as
legal services relating to the share purchase agreement and related banking
facility required as part of the acquisition funding.
9. Dividends
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
Amounts recognised as distributions to equity holders in the period: £'000 £'000 £'000
Final dividend for the year ended 31 December 2023 of 1.66p per ordinary share - 3,563 3,563
Interim dividend for the year ended 31 December 2024 of 0.77p per ordinary - - 1,638
share
Final dividend for the year ended 31 December 2024 of 1.83p per ordinary share - - -
- 3,563 5,201
Following the RNS dated 14th May 2025, the final dividend for the year ended
31 December 2024 was paid post period end on 17(th) July 2025 resulting in
£nil dividend being recognised in the period.
10. Net debt
The following table provides an analysis of the Group's net debt/cash:
(Unaudited) (Unaudited) (Audited)
30 June 2025 30 June 2024 31 December 2024
The following table provides an analysis of the Group's net debt/cash £'000 £'000 £'000
Cash held at banks 19,339 134,944 17,039
Facility A borrowings (59,627) (59,494) (59,548)
Facility B borrowings (3,978) (19,831) (11,902)
Other Debt (5,821) - (1,399)
Net (debt)/cash (50,087) 55,619 (55,810)
The Group's borrowings primarily relate to a credit facility from a syndicate
comprising HSBC & Natwest which includes a £60 million long term loan
with annual repayments of £5 million per year & and a £30 million
Revolving Credit Facility. At the reporting date, £4 million of the Revolving
Credit Facility was utilised, leaving flexibility to draw a further £26
million to support working capital needs in the future. Interest on both is
based on SONIA plus a margin of +1.50% (2024: +1.75%) based on the Group's net
leverage. The Group expects to use its positive operational cash flow to repay
these facilities over time. The facilities run until April 2027 with a further
year option available subject to bank consent.
The loan has covenants in place meaning the Group needs to comply with the
following financial conditions: a) Interest cover in respect of any relevant
period shall not be less than 4.0:1.0 and b) Net leverage in respect of each
relevant period shall not exceed 3.0:1.0.
Interest cover is calculated as a ratio of EBITDA to Net Finance Charge in
respect of any relevant period.
Net leverage is calculated as a ratio of Total Net Debt on the last day of
that relevant period to Adjusted EBITDA in respect of that relevant period.
11. Goodwill
(Unaudited) (Unaudited) (Audited)
30 June 2025 30 June 2024 31 December 2024
Movement in Goodwill £'000 £'000 £'000
Balance at the beginning of the period 116,884 80,435 80,435
Acquisitions - - 39,707
Exchange differences 2,069 (1,442) (3,258)
Balance at the end of the period 118,953 78,993 116,884
12. Contingent liabilities
A maximum potential earnout of €4 million relating to the 2023 acquisition
of Connexicon and €1.4m relating to the 2024 acquisition of Peters Surgical
have been recognised at fair value. Contingent consideration arising on
business combinations are categorised as a Level 3 measurement in the fair
value hierarchy under IFRS 13 Fair Value Measurements.
The Directors are not aware of any additional contingent liabilities faced by
the Group as at 30 June 2025 (30 June 2024: £nil, 31 December 2024: £nil).
13. Equity
Share capital as at 30 June 2025 amounted to £10,961,000 (30 June 2024:
£10,881,000, 31 December 2024: £10,892,000). During the period the Group
issued 1,378,915 shares in respect of Share Options, LTIPS, Deferred Annual
Bonus Scheme and the Share Incentive Plan.
Other reserves includes a merger reserve, share-based payments reserve,
Share-based payments deferred tax reserve and Investment in own shares
reserve. The merger reserve represents Advanced Medical Solutions Limited's
share premium account arising from merger accounting. The Investment in own
shares relates to shares held in trust on behalf of employees in respect of
the Share Incentive Plan.
A non-controlling interest in Sutural, an Algeria based manufacturer and
distributor of Sutures, arose as a result of the 2024 acquisition of Peters
Surgical.
14. Going concern
In carrying out their duties in respect of going concern, the Directors have
carried out a review of the Group's financial position and cash flow forecasts
for the next 12 months and considered whether there are any factors that
indicate a deterioration in trading performance beyond 12 months. The
forecasts used are based on a comprehensive review of revenue, expenditure and
cash flows, taking into account specific business risks and the current
economic environment.
The Group has used sensitivity analysis on the Group's forecasted performance,
using a 10% sales reduction scenario which is felt to reflect a significant
deterioration of trading. The results show that the Group is able to continue
its operations for a period of at least 12 months.
With regards to the Group's financial position, it had cash and cash
equivalents at 30 June 2025 of £19.3 million and £26 million available under
a revolving credit facility as summarised in note 10. The facilities run until
April 2027 with a further year option available subject to bank consent. The
Group expects to use its positive operational cash flow to repay these
facilities over time.
While the current economic environment is uncertain, AMS operates in markets
whose demographics are favourable, underpinned by an increasing need for
products to treat chronic and acute wounds. Consequently, long-term market
growth is expected. The Group has a number of long-term contracts with
customers across different geographic regions and also with substantial
financial resources, ranging from government agencies through to global
healthcare companies.
After taking the above into consideration, the Directors have reached the
conclusion that the Group is well placed to manage its business risks in the
current economic environment. Accordingly, they continue to adopt the going
concern basis in preparing the condensed consolidated financial statements.
15. Principal risks and uncertainties
Further detail concerning the principal risks affecting the business
activities of the Group is detailed on pages 71-77 of the Annual Report and
Accounts for the year ended 31 December 2024. There have been no significant
changes since the last annual report.
16. Seasonality of sales
There are no significant factors affecting the seasonality of sales between
the first and second half of the year.
17. Events after the balance sheet date
There have been no material events subsequent to 30 June 2025.
18. Copies of the interim results
Copies of the interim results can be obtained from the Group's registered
office at Premier Park, 33 Road One, Winsford Industrial Estate, Winsford,
Cheshire, CW7 3RT and are available on our website "www.admedsol.com".
19. Additional alternative performance measure
Reconciliation of operating profit to adjusted operating profit
H1 2025 H1 2024
£'000 £'000
Operating profit 10,727 3,943
Amortisation of acquired intangibles 5,164 2,468
Exceptional items 2,988 7,544
Adjusted operating profit 18,879 13,955
Reconciliation of Segment EBITDA to Adjusted EBITDA
H1 2025 H1 2024
£'000 £'000
Surgical segment EBITDA 21,895 15,594
Woundcare segment EBITDA 3,020 2,260
Unallocated expenses (527) (664)
Adjusted EBITDA 24,388 17,190
Adjusted EBITDA is reconciled to operating profit in the Financial review.
Reconciliation of reported revenue excluding Peters Surgical
H1 2025 H1 2024 Reported Constant currency
£'000 £'000 Change Change
Reported revenue 110,769 67,986 +63% +66%
Peters Surgical revenue (34,284) - +100% +100%
Reported revenue excluding Peters Surgical 76,485 102,291 +13% +14%
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR FQLLFEKLLBBLRecent news on Advanced Medical Solutions
See all newsREG - Adv Medical Solutns. - Interim Results
AnnouncementREG - AIM - AIM Notice - 15/09/2025
AnnouncementREG - Adv Medical Solutns. - Application for Admission
AnnouncementREG - Adv Medical Solutns. - Block listing Interim Review
AnnouncementREG - Adv Medical Solutns. - Total Voting Rights
Announcement