REG - Adv Medical Solutns. - Unaudited Preliminary Results
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RNS Number : 1189X Advanced Medical Solutions Grp PLC 18 March 2026
18 March 2026
Advanced Medical Solutions Group plc
("AMS" or the "Group" or the "Company")
Unaudited preliminary results for the year ended 31 December 2025
~ Record full year sales and adjusted EBITDA with strong organic growth ~
~ Successful integration of recent acquisitions ~
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 2025.
Financial Summary:
2025 2024 Reported change¹ Change at constant currency(2)
Surgical Business Unit (£ million) 183.5 135.8 35% 36%
Advanced Woundcare Business Unit (£ million) 45.4 41.7 9% 9%
Total Group revenue (£ million) 228.9 177.5 +29% +29%
Adjusted Measures
Adjusted(3) EBITDA (£ million) 49.9 40.2 +24%
Adjusted(3) EBITDA margin 21.8% 22.6% -0.8pp
Adjusted(3) profit before tax (£ million) 33.9 29.4 +15%
Adjusted(3) profit before tax margin 14.8% 16.6% -1.8pp
Adjusted(4) diluted earnings per share (p) 11.74 10.45 +12%
Reported Measures
Profit before tax (£ million) 17.8 9.8 +81%
Profit before tax margin 7.8% 5.5% +2.3pp
Diluted earnings per share (p) 4.52 3.25 +39%
Net operating cash flow (£ million) 32.6 19.5 +67%
Net (debt)/cash(5) (£ million) (50.5) (55.8) -10%
Proposed full year dividend per share (p) 2.86 2.60 +10%
Commenting on the results, Chris Meredith, Chief Executive Officer of AMS,
said: "I am proud to report that we have delivered on our key strategic
objectives for 2025. The strength of our expanded portfolio, our growing
global presence, and the commercial synergies across the Group, have all
contributed to another year of robust growth. This strong performance has
enabled us to increase our dividend for the year by 10%.
"Our robust and advancing R&D pipeline reinforces our confidence in
carrying this momentum forward. The integration of operations continues to
progress well, and we remain firmly on track to fully consolidate the business
and improve operational efficiency next year. As we look ahead, we are
strongly positioned to continue building on this foundation and accelerate our
long term growth."
Operational and Financial Highlights
· Group revenue increased by 29% to £228.9 million (2024: £177.5
million), driven by the full year impact of the July 2024 acquisition of
Peters Surgical and continued growth across key product categories. Overall
performance was in line with management expectations and included a strong
performance from the existing AMS business (excluding Peters) that delivered
10% constant currency growth, with a good performance from Adhesives and
Biosurgical categories and a good recovery in the Woundcare business.(6)
o Surgical Business Unit revenues increased to £183.5 million (2024: £135.8
million), an increase of 36% at constant currency.
- Global LiquiBand(®) revenues increased by 10% to £47.8 million
(2024: £43.4 million) and 12% at constant currency, with good performances in
the US and the Rest of the World, where commercial synergies continue to
support growth in areas such as specialist cardiovascular markets.
- Biosurgical devices grew by 23% to £27.8 million (2024: £22.6
million) and 22% at constant currency, driven by increased demand for
antibiotic-loaded collagen and growth in dental devices.
- Suture, Clips and VTO (Vascular Temporary Occlusion) revenues grew
by 64% at constant and reported currency to £82.7 million (2024: £50.4
million).
o Advanced Woundcare Business Unit revenues increased by 9% to £45.5 million
(2024: £41.8 million), driven by strong growth in Customer-branded and Bulk
materials and the increasing traction of partners' products in the market.
· Following the acquisitions of Peters Surgical and Syntacoll,
operational synergies are on track and commercial synergies are already
contributing to growth. LiquiBand XL(®) started to gain traction among
specialist cardiovascular surgeons for sternotomy closure, IFABOND(®)
transitioned to direct sales in the UK and LiquiBandFix8(®) transitioned to
direct sales in France. Other AMS legacy products started to access new direct
sales territories in Austria, Poland, Czech and India.
· Adjusted EBITDA increased by 24% to £49.9 million (2024: £40.2
million) and reported profit before tax increased by 81% to £17.8 million
(2024: £9.8 million) as a result of organic growth from the existing AMS
business and the inclusion of the first full year of Peters' results.
· Net debt on 31 December 2025 was reduced to £50.5 million (2024:
£55.8 million). Significant investment in the Group's transformation project,
including a number of exceptional items largely relating to the restructuring
of our manufacturing function, together with capital expenditure and inventory
increases, partly offset the pace of deleveraging in the year.
· Reflecting management's ongoing confidence in the Group's
outlook, the Board proposes an increased final dividend of 2.01p per share
(2024: 1.83p), bringing the total proposed dividend to 2.86p per share (2024:
2.60p), up 10%.
Summary & Outlook
· AMS delivered record 2025 results and enters 2026 with strong
commercial momentum, a clearer operating platform and a robust pipeline that
supports multi‑year growth.
· AMS reported record Group revenue of £228.9m, up 29%, with
strong organic growth across core categories and the first full-year
contribution from Peters Surgical. Surgical remained the key driver of
performance, growing 36% at constant currency, while Woundcare returned to
growth following its restructuring. Adjusted EBITDA increased 24% to £49.9m,
and net debt reduced to £50.5m.
· Integration of Peters Surgical continues to progress well, with
commercial synergies already contributing and operational synergies on track
for delivery from 2027. The Group's innovation pipeline remains a major
strategic strength, with multiple product approvals expected from 2026 onwards
across adhesives, sutures, collagen technologies and bone substitutes.
· The Board expects continued strong growth in Surgical and modest
growth in Woundcare as long‑term supply agreements take effect. Strong cash
generation and disciplined capital allocation are expected to support further
deleveraging while maintaining investment in innovation and manufacturing
optimisation.
· In respect to the current Middle East conflict, AMS has a limited
footprint in the region and minimal exposure. Sales and margin in the region
is not significant, and currently seems stable.
· The Board is confident of delivering full year 2026 revenue and
EBITDA in line with current market expectations(7) and believes that AMS is
well positioned to drive sustained growth and long-term value creation.
Notes
1. Reported change is calculated using amounts rounded to the nearest
£'000
2. Constant currency removes the effect of currency movements by
re-translating the current year's performance at the previous year's exchange
rates
3. Reconciled in the Financial Review / note 18. Adjusted EBITDA
excludes the impact of exceptional items, depreciation, amortisation, finance
costs and taxation. Adjusted profit before tax excludes the impact of
exceptional items, amortisation of acquired intangibles and movement in
long-term acquisition liabilities. Exceptional items are detailed in the
Financial Review.
4. Reconciled in note 4 of the financial information. Adjusted diluted
earnings per share exclude the impact of exceptional items, amortisation of
acquired intangibles, movement in long-term acquisition liabilities and the
tax impact of adjusted items.
5. Reconciled in note 9 of the financial information. Net debt is
calculated as cash and cash equivalents less borrowings
6. Organic AMS Group revenues excluding Peters Surgical are reconciled
in note 18.
7. AMS believes that current consensus market expectations for the
year ended 31 December 2026 is revenue of £245.3m and Adjusted EBITDA of
£55.2 m
- End -
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
About Advanced Medical Solutions Group plc - see www.admedsol.com
(http://www.admedsol.com)
AMS is an innovative tissue healing medical device company delivering
high-performing solutions that match or surpass market leaders, clinically,
technically, and commercially. From adhesives and sealants, to biosurgical
devices and sutures, AMS's products offer superior usability, quality and
design. AMS's strength lies in combining advanced material science with
applicator device design and development, in collaboration with surgeons and
Key Opinion Leaders, creating differentiated devices that improve patient
outcomes without compromising quality or affordability.
AMS's scalable, resilient business model is built on disciplined execution,
portfolio focus, and capital efficiency. Its diversified product and
geographic mix mitigates volatility, ensuring consistent performance even when
individual segments fluctuate. Following its acquisition of Peters Surgical,
AMS is unlocking operational and commercial synergies, accelerating its US and
international expansion, and increasing the percentage of sales made through
its direct sales teams. With surgical products driving the lion's share of
group revenues and a clear top-line trajectory, AMS is positioned for scalable
growth, and long-term value creation.
Chief Executive's Review
Surgical Business Unit
Revenue increased to £183.5 million (2024: £135.8 million) during the year,
an increase of 36% on a constant currency and 35% on a reported basis.
Surgical Business Unit 2025 2024 Reported Growth Change at constant currency
£ million
£ million
Advanced Closure 47.8 43.4 10% 12%
Internal Fixation and Sealants 8.3 8.0 4% 3%
Sutures, Clips and VTO 82.7 50.4 64% 64%
Biosurgical Devices 27.8 22.6 23% 22%
Other Distributed 16.9 11.4 48% 48%
Total 183.5 135.8 35% 36%
Advanced Closure
Advanced Closure 2025 2024 Reported Growth Change at constant currency
£ million
£ million
Americas 29.4 26.9 10% 13%
Rest of World 18.4 16.5 11% 11%
Total 47.8 43.4 10% 12%
LiquiBand(®) revenues increased by 12% in the year to £47.8 million (2024:
£43.4 million) on a constant currency basis and 10% on a reported currency
basis, driven by continued global growth.
LiquiBand(®) continued to perform strongly in the United States, growing by
10% to £29.4 million (2024: £26.9 million) and with constant currency growth
of 13%. This reflects the ongoing successful commercial execution by our
channel partners and their ongoing focus on these key strategic products.
LiquiBand XL(®), the long‑wound closure device, further enhances AMS's
competitive position in the US, and our increasing pipeline of new evaluations
and market wins gives us confidence that we will continue to take share in
this large wound closure market segment. As previously guided, the first half
of 2025 benefited from additional partner orders linked to changes in their
distribution footprint and hence represents a strong comparator for H1 2026.
Outside the US, revenues were up 11% at reported and constant currency to
£18.4 million (2024: £16.5 million). In the APAC region, market share gains
were achieved as LiquiBand(®) continued to displace the market leader across
the region and was launched into India via the local sales force that came
with the Peters Surgical acquisition. We also launched LiquiBand(®) XL into
Australia and South Korea. In Europe, commercial synergies supported overall
LiquiBand(®) growth, including notable success in Peters' legacy network of
cardiac surgeons helping to build LiquiBand XL(®) momentum in sternotomy
closures.
Internal Fixation and Sealants
As previously reported, partner sell-down of the launch inventory of US
LiquiFix™ impacted recorded revenue for the year. However, shipments did
significantly increase in Q4 2025 with multiple months of record end-user
sales revenue. The establishment of AMS's dedicated Hernia Clinical team, with
partner TelaBio, has already contributed to stronger end sales performance.
Activity in Q4, supported by approvals from three of the largest Group
Purchasing Organisations, demonstrated accelerating adoption, new user
onboarding and deeper market penetration. IFABOND(®) line extensions remain
on track for an initial European launch in 2027.
Clinical adoption of the SEAL‑G(®) device continues to progress, with early
users gaining confidence and experience in this innovative intestinal sealant
technology. Initial revenues, while starting from a modest base, are beginning
to show very positive momentum.
Encouraging clinical evidence continues to emerge from multiple sources,
including:
· A retrospective follow-up of the 2021, 167 patient, initial
clinical study demonstrated improved efficacy with the SEAL-G(®) treatment
group (n=79) with a leakage rate of 1.3% compared with 5.7% in the control
group (n=88).
· Certain KOLs are no longer routinely resorting to stoma formation
in bowel surgery, given their increasing confidence in the patient and
economic benefit arising from their use of SEAL-G(®).
· Encouraging early results arising from the ongoing pancreatic
clinical study, currently at 45 patients.
Building on this positive clinical momentum, AMS is in the late stages of a
grant approval process for a large, pivotal, randomised controlled trial to
evaluate the efficacy of SEAL-G(®) in preventing or reducing anastomotic
leaks in patients undergoing colorectal surgery. Such a study would be
critical in establishing the technology as a future standard of care in
gastrointestinal surgical resection.
Good progress has been made in the development of the second-generation
SEAL-G(®) device, which has reached an important milestone with engineering
efforts successfully delivering a simplified design that no longer requires an
external gas supply or regulator. As this optimisation phase nears completion,
AMS remains confident that this new version is on track for a European filing
in 2027. As at 31 December 2025, the amortised carrying value of the
capitalised development costs was £5.0 million.
Sutures, Clips and VTO
Revenues grew strongly during the year, increasing by 64% at constant and
reported currency to £82.7 million (2024: £50.4 million). Proforma revenues,
which consider performance on the basis of a full-year of revenue from Peters
Surgical in the prior year, were flat during the year, as continued end-user
sales growth was offset by the normalisation of distributor inventory levels
following the acquisition of Peters Surgical, which is not expected to fully
unwind until mid-2026.
Significant advances were made in the project to harmonise RESORBA and Peters'
suture operations during the year through supply chain simplification and
product portfolio optimisation. This will improve the efficiency of the
business and strengthen the foundation for long‑term growth. Regulatory,
Quality, and R&D teams have been successfully merged into unified
functional structures across all manufacturing sites, further enhancing
synergy and alignment.
End-user sales growth was supported by successful cross‑portfolio launches,
with cross-selling between marketing teams. B2B performance during the year
was impacted by some partners reducing their inventory from the unusually high
levels held at the time of the Peters acquisition. Inventory levels are
expected to have normalised by the middle of 2026.
In the US, the majority of our suture product ranges have now secured
regulatory clearance, and commercial momentum is beginning to build. However,
the approval process for a specialised portfolio of cardiovascular sutures is
still ongoing, with authorisation now expected in 2027. AMS's sutures
positioning is anchored in our specialist cardiovascular range and our ability
to offer a high-quality alternative at competitive price points. Early US
commercial momentum in approved product lines provides a platform for
accelerated growth as the full range gains clearance.
Biosurgical Devices
Revenues increased by 23% to £27.8 million at reported currency (2024: £22.6
million) and 22% at constant currency.
This strong performance was supported by increasing demand for Resorba(®)
antibiotic collagens and new product approvals across APAC and LATAM. The
smooth transition of Syntacoll supply contracts also contributed positively.
Enhanced manufacturing efficiency further supported this momentum, with
Syntacoll's specialist expertise significantly improving operational
capability and supporting the business's ability to meet increased demand.
The Group continues to make strong progress in preparing its collagen
portfolio for entry into the US market, which represents a significant
long‑term growth opportunity. The Company's first US collagen approval, for
a dental cone, was secured in 2025, with a further approval expected in 2026
that will drive commercial revenues. Additional US submissions for a broader
range of non‑antibiotic, surgical collagen products remain on track, with
approvals anticipated from 2027 onwards.
The next generation Freeze Dried Bone Substitute (FDBS) also represents a
substantial opportunity for the Biosurgical business in the US and Europe. Its
highly differentiated cohesiveness, mouldability and capacity to mix with
various biological fluids reinforce its position to deliver meaningful
improvements in bone regeneration. Initial evaluation studies are underway,
and EU and US regulatory approval of the non-drug loaded version of this
technology is anticipated in 2027.
Other Distributed Products
Revenues increased to £16.9 million during the year (2024: £11.4 million),
growth of 48% at reported and constant currency, driven by the annualisation
of Peters Surgical during the year.
Innovation
Product innovation remains a key focus for the Group, with a number of key
product approvals anticipated in 2026 and 2027 as summarised in the table
below.
Product approval Region Category Estimated Approval
Resorba(®) dental collagen USA Biosurgical Devices 2026
Resorba(®), non-antibiotic surgical collagens USA Biosurgical 2027+
Topical Adhesives China Advanced Closure 2026-2027
Peters Surgical sutures range completion USA Sutures 2027
Freeze Dried Bone substitute (FDBS) EU and USA Biosurgical Devices H1 2027
IFABOND(®) line extensions EU Advanced Closure 2027
SEAL-G(®) approval of second-generation device EU Advanced Closure H1 2028
Antibiotic FDBS substitute EU and USA Biosurgical Devices 2030
Antibiotic collagen USA Biosurgical Devices 2030
Integration and Synergies
Following the successful integration of key function teams from AMS and Peters
Surgical in 2024, the enlarged Group is working well under its unified
structure. The acquisition of Peters Surgical on 1 July 2024 contributed
revenue of £74 million to the AMS Group during the year.
The programme to deliver commercial synergies is progressing well as
established direct sales teams benefit from larger product portfolios, driving
the potential to deliver incremental annual revenues towards the upper end of
our target range of £5 million to £10 million from mid-2029. Building on
some initial successes with increased direct selling, we are evaluating
opportunities for further transitions in certain key markets, which could
include some one-off costs.
The integration programme to deliver £10 million of annual operational
synergies from 2027 is progressing to plan. Potential site closures were
announced internally in January 2026, with four sites in Germany and one site
in Czechia expected to close in March 2027. The financial impact of site
closures is subject to variations and is being assessed on an ongoing basis.
Woundcare Business Unit
Woundcare Business Unit 2025 2024 Reported Growth Change at constant currency
£ million
£ million
Infection and Exudate Management 42.1 36.9 14% 15%
Other Woundcare 3.3 4.8 -31% -30%
Total 45.4 41.7 9% 9%
Revenues increased by 9% to £45.4 million (2024: £41.7 million) on a
reported and constant currency basis as OEM dressings and bulk materials
projects delivered growth.
The restructuring of the Woundcare business in Q1 2025 successfully achieved
the targeted cost savings, while the new focus on higher-margin business has
strengthened the overall mix and profitability. The successful negotiation of
a number of major, long-term supply agreements has contributed significantly
to annual growth, with other discussions nearing completion.
Infection and Exudate Management revenue increased by 14% at reported currency
and 15% at constant currency to £42.1 million (2024: £36.9 million), as we
implemented our strategy to focus on more profitable product categories.
Other Woundcare declined to £3.3 million (2024: £4.8 million) due to the
declining Organogenesis royalty.
Environmental, Social and Governance
All sustainability activities have been optimised and managed by a single team
across AMS. Having rebased our carbon footprint, in 2025 we began assessing
projects to accelerate our Pathway to Net Zero, which has a commitment date of
2045, and preparing to apply for the Science Based Target Initiative (SBTi) in
2026. We are also working through the Corporate Sustainability Reporting
Directive (CSRD) requirements with a consultant to ensure our KPI's and other
ESG metrics are focused on areas that are material to the business.
Our ESG progress is further validated by EcoVadis (Bronze medal), a MSCI
rating increase (AAA), successful SEDEX audits at key UK sites, and our
corporate membership of the UN Global Compact. We are rolling out a new Code
of Conduct for the Group, which will support strong governance across all
jurisdictions in which we operate, as well as increased engagement in our
local communities.
Post period event - new corporate brand
As part of the Group's evolution following the acquisition of Peters Surgical,
AMS has introduced a refreshed visual identity, including an updated logo and
design, reflecting the scale and ambition of the enlarged business. This was
launched on 17(th) March 2026.
Stakeholders
On behalf of the Board, I would like to thank the Group's staff, partners and
other stakeholders, without whose help and commitment the achievements of this
year, and the years prior, would not have been possible.
Chris Meredith
Chief Executive Officer
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 our partners' brands and
the ActivHeal(®) label, plus a portfolio of specialist medical bulk materials
and multi-layer woundcare products.
Financial Review
Summary
IFRS reporting
To provide the clearest possible insight into our performance, the Group uses
alternative performance measures. These measures are not defined in
International Financial Reporting Standards (IFRS) and are, therefore,
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. The measures used in this statement include
constant currency revenue growth, adjusted operating profit, adjusted profit
before tax, adjusted EBITDA and adjusted earnings per share, allowing the
impact of exchange rate volatility, exceptional items, unwind of inventory
fair value accounting, amortisation, and the movement in long-term acquisition
liabilities to be separately identified. Net debt/cash are an additional
non-GAAP measure used to provide a useful overview of the Group's financial
position.
Overview
Revenue increased by 29% at constant and reported currency to £228.9 million
(2024: £177.5 million).
Adjusted gross margin was slightly higher at 53.4% against prior year adjusted
gross margin of 53.1%, driven by increased volumes and operational
improvements. This margin growth is despite the dilutive impact of
acquisitions, which have a slightly lower gross margin than the Group's
average, as well as the reduced Organogenesis royalty. Adjusted gross margin
in the prior year excludes the impact of the IFRS3 fair value accounting
following the acquisition of Peters Surgical which increased inventory
valuation and resulted in higher cost of goods sold in the second half of the
year and was treated as an adjusted item (2024 reported gross margin: 52.2%).
Administration expenses before exceptional items increased to £90.5 million
(2024: £69.0 million) due to the addition of Peters Surgical which incurred
approximately £33 million of administration expenses (2024: £16 million).
Included within administration expenses is £10.3 million (2024: £7.8
million) of amortisation of acquired intangible assets which grew due to the
annualisation of the acquisition of Peters Surgical in July 2024.
The remaining increase in administration expenses in the year relates to
increased distribution costs following the implementation of tariffs in the
US, increased sales and marketing activity and expenditure in Research,
Development, Regulatory and Clinical as the Group continues to invest in
growth opportunities and increased amortisation of development costs which is
increasing as the Group achieves additional levels of MDR certification.
Exceptional items
(Unaudited) Audited
2025 2024
£'000 £'000
Integration-related 5,145 1,927
Restructuring 660 -
Peters acquisition-related - 5,090
Risk Management - 2,017
Syntacoll - 1,890
Total exceptional items 5,805 10,924
Exceptional items of £5.8 million were incurred in the year in relation to
the Group's transformation projects following the prior year acquisition of
Peters Surgical and Syntacoll. These projects have been deemed exceptional in
nature and have resulted in significant costs being incurred whilst the
related benefits will only be yielded in future periods and as a result the
Group's performance has been summarised including and excluding these costs to
give additional information to the users of the financial statements.
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 reorganising certain operations and are
primarily employee related.
In the prior year, £10.9 million of exceptional costs were incurred.
Syntacoll exceptional costs related to legal fees, staff termination costs, an
initial idle period when no manufacturing was undertaken, and some integration
related costs. Risk management exceptional costs related 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 included 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.
The Group incurred £14.5 million of gross R&D spend in the year (2024:
£12.9 million), representing 6.3% of Revenue (2024: 7.3%), maintaining
investment in innovation and in meeting the increasing regulatory standards.
As shown in the table below, part of this cost is capitalised and amortised
over the following 5 to 10 years, with the amount capitalised being consistent
as lower MDR capitalised spend is offset by increased capitalisation relating
to the development of FDBS.
R&D, Regulatory and Clinical expenditure
2025 2024
£'000 £'000
Total investment in Research and Development, Regulatory and Clinical 14,480 12,922
Of which:
Charged to the profit and loss account 10,349 8,807
Capitalised, to be amortised over 5-10 years 4,131 4,115
Other operating income reduced to £0.7 million (2024: £0.9 million) and
relates to R&D claims in the UK and Ireland.
In the year, finance income declined to £0.2 million (2024: £2.2 million),
as the majority of funds held on deposit in the first half of 2024 were used
to fund the acquisition of Peters Surgical. Finance costs increased to £5.1
million (2024: £3.6 million) as a result of the full year impact of the
Group's borrowing facility following the prior year acquisition of Peters
Surgical.
A finance cost of £nil was recorded in relation to movements in long-term
acquisition liabilities (2024: credit of £0.9 million recorded in finance
income).
Adjusted EBITDA which consists of earnings before finance costs, tax,
depreciation and amortisation as well as excluding exceptional items and the
unwind of inventory fair value accounting increased by 24% to £49.9 million
(2024: £40.2 million) reflecting the growing profitability and operating
performance of the Group.
Reconciliation of profit before tax to adjusted EBITDA
(Unaudited) Audited
2025 2024
£'000 £'000
Profit before tax 17,783 9,823
Finance income and costs 4,879 1,396
Amortisation 13,361 9,849
Depreciation 8,036 6,453
Exceptional items 5,805 10,924
Unwind of inventory fair value accounting - 1,726
Adjusted EBITDA 49,864 40,171
Adjusted profit before tax which excludes amortisation of acquired
intangibles, exceptional items, the unwinding of inventory fair value
accounting and movements in long term liabilities recognised on acquisition,
increased by 15% to £33.9 million (2024: £29.4 million) whilst the adjusted
PBT margin decreased by 170 bps to 14.8% (2024: 16.5%) as a result of the
dilutive impact of the Peters Surgical acquisition and associated borrowing
costs.
Reported profit before tax increased by 81% to £17.8 million (2024: £9.8
million) as a result of significant acquisition related exceptional items in
the prior year, as well as the full-year impact of the Peters Surgical
acquisition.
Reconciliation of profit before tax to adjusted profit before tax
(Unaudited) Audited
2025 2024
£'000 £'000
Profit before tax 17,783 9,823
Amortisation of acquired intangibles 10,313 7,804
Exceptional items 5,805 10,924
Movement in long-term acquisition liabilities 42 (868)
Unwind of inventory fair value accounting - 1,726
Adjusted profit before tax 33,943 29,409
The Group's adjusted effective income tax rate as reconciled in note 18,
reflecting the blended tax rates in the countries where we operate and
including UK patent box relief, increased to 24% (2024: 22%) due to the impact
of certain loss-making entities within the Peters Surgical group. Reported
income tax increased to 43% (2024: 27%) due to the movement in Deferred tax on
acquired intangible assets.
Adjusted diluted earnings per share increased by 12% to 11.74p (2024: 10.45p)
and diluted earnings per share increased by 39% to 4.52p (2024: 3.25p),
reflecting the Group's increased earnings.
Reflecting its confidence in the Group's prospects, the Board is proposing a
final dividend of 2.01p per share (2024 final dividend: 1.83p), to be paid on
26 June 2026 to shareholders on the register at the close of business on 29
May 2026. This follows the interim dividend of 0.85p per share (2024 interim
dividend: 0.77p) paid on 24 October 2025 and would, if approved, make a total
dividend for the year of 2.86p per share (2023: 2.60p) an increase of 10%.
Operating result by business segment
Surgical Woundcare
Year ended 31 December 2025 £'000 £'000
Revenue 183,451 45,485
Segment operating profit 26,530 2,912
Amortisation of acquired intangibles 9,373 940
Adjusted segment operating profit(6) 35,903 3,852
Adjusted operating margin(6) 19.6% 8.5%
Adjusted EBITDA 44,671 6,168
Adjusted EBITDA margin(7) 24.4% 13.6%
Year ended 31 December 2024
Revenue 135,638 41,753
Segment operating profit 23,268 1,664
Amortisation of acquired intangibles 6,864 940
Adjusted segment operating profit(6) 30,132 2,604
Adjusted operating margin(6) 22.2% 6.2%
Adjusted EBITDA 36,466 4,768
Adjusted EBITDA margin(7) 26.9% 11.4%
(Note 6: Adjusted for amortisation of acquired intangible assets and excludes
exceptional items and the unwind of inventory fair value accounting.)
(Note 7 Reconciled in note 18 of the financial information. Excludes the
impact of exceptional items, depreciation, amortisation, interest and
taxation. )
(The above table is reconciled to statutory information in note 5 of the
financial information.)
Surgical
Surgical revenues increased by 35% to £183.5 million (2024: £135.8 million)
at reported currency and by 36% at constant currency. Adjusted operating
margin decreased by 260 bps to 19.6% (2024: 22.2%) due to the dilutive impact
of Peters Surgical at an operating margin level. The annualisation of the low
margin Syntacoll business is also impacting adjusted operating margin.
Woundcare
Woundcare revenues increased by 9% to £45.5 million (2024: £41.8 million) at
reported currency and constant currency. Adjusted operating margin increased
by 230 bps to 8.5% (2024: 6.2%) due to the factors noted in the Chief
Executive's review.
US Tariffs
The Group continues to monitor US tariff rates. Under current tariff
conditions, the previously estimated impact of US tariffs of £1m - £2m is
not expected to significantly change.
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 financial year, approximately one half
of sales were invoiced in Euros and approximately one quarter were invoiced in
US Dollars. Following the acquisition of Peters Surgical, the Group also has
an increased manufacturing presence in Thailand increasing exposure to Thai
Baht.
The Group estimates that a 10% movement in the £:US$ or £:€ exchange rate
will impact Sterling revenues by approximately 2.5% and 4.8% 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. In the absence
of any hedging movements in the pound sterling to Thai Baht exchange rate, a
10% movement in the exchange rate will impact Group operating margin by 0.5
percentage points.
Cash flow
Net cash inflow from operating activities in the year was £32.6 million, an
increase on the prior year (2024: £19.5 million) due to increasing
operational performance and as a result of the acquisition of Peters Surgical.
Working capital increased during the year. Inventory cover increased to 7.4
months of supply (2024: 6.0 months) which is driven by supply chain planning
to manage the transition plan as part of the Group's transformation project.
Receivables in the prior year were higher than typical levels and have reduced
this year despite increased sales. As a result, Debtor days have decreased to
45 days (2024: 53 days). Creditor days were in line with prior year at 35 days
(2024: 35 days).
Net cash used in investing activities in the year was £13.3 million (2024:
£67.1 million), a significant decrease on the prior year which included the
acquisition of Peters Surgical. The current year investing activity largely
relates to capital investment in equipment, R&D and regulatory costs of
£12.6 million (2024: £8.7 million) as a result of the full year impact of
Peters Surgical and investment in the Group's transformation project.
£1.1 million of cash outflows relating to payment of contingent consideration
occurred and relates to the achievement of the final EBITDA milestone for AFS
triggering a £0.4 million payment, as well as £0.7 million relating to the
Peters Surgical acquisition following partial achievement of the gross margin
and Inventory conditions. The US regulatory approvals or tax conditions were
not achieved within the required time resulting in £nil fair value being
required at 31 December 2025 (2024: £5.5 million).
Cash outflow relating to taxation remained consistent at £5.3 million (2024:
£5.1 million).
Net cash outflow from financing activities in the year was £19.0 million
(2024: received £5.5 million) as net repayments of borrowings were £5.6
million (2024: net inflow of £17.3 million).
The Group paid the final dividend for the year ended 31 December 2024 of £4.0
million in July 2025 (for the year ending 31 December 2023, £3.6 million in
June 2024), and the interim dividend for the six months ended 30 June 2025 of
£1.8 million in October 2025 (for the 6 months ended 30 June 2024: £1.6
million in October 2024).
At the end of the year, 31 December 2025, as a result of the above movements,
the Group had net debt of £50.5 million (31 December 2024: net debt of £55.8
million). Further reductions in net debt were restricted by exceptional items
and investment in integration activities to drive long-term synergies
following our transformational acquisition which includes capital and
inventory investment in the year.
CONDENSED CONSOLIDATED INCOME STATEMENT
(Unaudited) (Audited)
Year ended 31 December 2025 2024
Before Exceptional items Exceptional items(8) Total Before Exceptional items Exceptional items(8) Total
Note £'000 £'000 £'000 £'000 £'000 £'000
Revenue from continuing operations 5 228,936 - 228,936 177,521 - 177,521
Cost of sales (106,798) - (106,798) (84,903) - (84,903)
Gross profit 122,138 - 122,138 92,618 - 92,618
Distribution costs (3,847) - (3,847) (2,348) - (2,348)
Administration costs (90,495) (5,805) (96,300) (69,033) (10,924) (79,957)
Other income 671 - 671 906 - 906
Operating profit 6 28,467 (5,805) 22,662 22,143 (10,924) 11,219
Finance income 211 - 211 2,161 - 2,161
Finance costs (5,090) - (5,090) (3,557) - (3,557)
Profit before taxation 23,588 (5,805) 17,783 20,747 (10,924) 9,823
Income tax 7 (8,892) 1,204 (7,688) (4,662) 1,981 (2,681)
Profit for the year 14,696 (4,601) 10,095 16,085 (8,943) 7,142
Profit for the year attributable to equity holders of the parent 14,555 (4,601) 9,954 16,037 (8,943) 7,094
Non-controlling interest 141 - 141 48 - 48
Earnings per share
Basic 4 6.75p (2.13p) 4.62p 7.48p (4.17p) 3.31p
Diluted 4 6.62p (2.09p) 4.52p 7.35p (4.10p) 3.25p
(Note 8 Exceptional items are reconciled in the Financial Review.)
( )
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(Unaudited) (Audited)
2025 2024
£'000 £'000
Profit for the year 10,095 7,142
Exchange differences on translation of foreign operations 8,028 (6,177)
Gain/(loss) arising on cash flow hedges 1,664 (3,104)
Deferred tax (charge)/credit arising on cash flow hedges (306) 664
Total other comprehensive income/(loss) for the year 9,386 (8,617)
Total comprehensive income/(loss) for the year 19,481 (1,475)
Total comprehensive income/(loss) for the year attributable to equity holders 19,340 (1,523)
of the parent
Total comprehensive income for the year attributable to Non-controlling 141 48
interest
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(Unaudited) (Audited)
31 December 2025 31 December 2024
Note £'000 £'000
Assets
Non-current assets
Intangible assets 92,731 97,412
Goodwill 11 112,693 116,884
Property, plant and equipment 48,750 45,871
Deferred tax assets - 1,022
Other receivables 1,219 1,029
Derivative financial assets 10 12 -
255,405 262,218
Current assets
Inventories 12 70,047 55,259
Trade and other receivables 47,654 52,451
Current tax assets 2,436 1,233
Derivative financial assets 10 1,213 296
Cash and cash equivalents 18,015 17,039
139,365 126,278
Total assets 394,770 388,496
Liabilities
Current liabilities
Trade and other payables 30,951 33,782
Derivative financial liabilities 10 - 261
Borrowings 9 11,370 5,421
Current tax liabilities 4,293 1,780
Lease liabilities 3,332 3,087
49,946 44,331
Non-current liabilities
Trade and other payables 1,177 3,873
Derivative financial liabilities 10 - 474
Borrowings 9 57,101 67,428
Provisions 13 3,637 -
Deferred tax liabilities 13,085 20,246
Lease liabilities 9,720 10,628
84,720 102,649
Total liabilities 134,666 146,980
Net assets 260,104 241,516
Equity
Share capital 14 10,977 10,892
Share premium 37,844 37,525
Other reserve 14 20,686 16,625
Hedging reserve 918 (440)
Translation reserve 3,729 (4,299)
Retained earnings 184,637 180,474
Equity attributable to equity holders of the parent 258,791 240,777
Non-controlling interest 14 1,313 739
Total equity 260,104 241,516
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital Share premium Other reserve Hedging reserve Translation reserve Retained earnings Total Attributable to owners Non-controlling interest Total
equity
£'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)/income - - - (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 8) - - - - - (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
Consolidated profit for the year to 31 December 2025 - - - - - 9,954 9,954 141 10,095
Other comprehensive income/(expense) - - - 1,358 8,028 - 9,386 - 9,386
Total comprehensive income/(expense) - - - 1,358 8,028 9,954 19,340 141 19,481
Share-based payments - - 4,140 - - - 4,140 - 4,140
Excess Deferred tax on share-based payments - - (128) - - - (128) - (128)
Share options exercised 85 319 49 - - - 453 - 453
Changes in non-controlling interest - - - - - - - 433 433
Dividends paid (Note 8) - - - - - (5,791) (5,791) - (5,791)
At 31 December 2025 (Unaudited) 10,977 37,844 20,686 918 3,729 184,637 258,791 1,313 260,104
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited) (Audited)
Year ended Year ended
31 December 2025 31 December 2024
Note £'000 £'000
Cash flows from operating activities
Operating profit 22,662 11,219
Adjustments for:
Depreciation 8,036 6,453
Amortisation - acquired intangible assets 10,313 7,804
- software intangibles 655 537
- development costs 2,393 1,508
Increase in inventories (13,267) (2)
Decrease/(increase) in trade and other receivables 5,036 (10,384)
(Decrease)/increase in trade and other payables (2,048) 4,318
Share-based payments expense 4,140 3,086
Taxation paid (5,333) (5,050)
Net cash inflow from operating activities 32,587 19,489
Cash flows from investing activities
Purchase of software (1,111) (572)
Capitalised research and development (4,131) (4,115)
Purchases of property, plant and equipment (7,358) (4,057)
Disposal of property, plant and equipment 54 27
Interest received 207 1,229
Acquisition of subsidiaries net of cash 14 72 (54,132)
Payment of contingent consideration 13 (1,064) (5,529)
Net cash used in investing activities (13,331) (67,149)
Cash flows from financing activities
Dividends paid (5,791) (5,201)
Repayment of principal under lease liabilities (3,885) (2,605)
Repayment of loan 9 (11,452) (62,192)
Borrowings received 9 5,876 79,453
Issue of equity shares 14 329 12
Interest paid (4,045) (3,989)
Net cash used in financing activities (18,968) 5,478
Net increase/(decrease) in cash and cash equivalents 288 (42,182)
Cash and cash equivalents at the beginning of the year 17,039 60,160
Effect of foreign exchange rate changes 688 (939)
Cash and cash equivalents at the end of the year 18,015 17,039
Notes Forming Part of the Condensed Consolidated Financial Statements
1. Reporting entity
Advanced Medical Solutions Group plc ("the Company") is a public limited
company incorporated in England and Wales (registration number 02867684). 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
twelve months ended 31 December 2025 comprise the Company and its subsidiaries
(together referred to as the "Group").
The Group 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.
2. Basis of preparation
These condensed unaudited consolidated financial statements have been prepared
in accordance with the accounting policies set out in the annual report for
the year ended 31 December 2024 except for new standards adopted for the year.
3. Accounting policies
In the current year the Group has applied the following amendment to IFRSs
issued by the IASB.
- Amendments to IAS 21 The Effects of Changes in Foreign Exchange
Rates (Lack of Exchangeability)
Its adoption has not had a material impact on the disclosures or on the
amounts reported in the Annual Financial Statements.
While the financial information included in this preliminary announcement has
been prepared in accordance with the recognition and measurement criteria of
international accounting standards and International Financial Reporting
Standards (IFRSs) as adopted by the UK, this announcement does not itself
contain sufficient information to comply with IFRSs. The Group expects to
publish full financial statements that comply with IFRSs in April 2026.
The unaudited financial information set out in the announcement does not
constitute the Group's statutory accounts for the years ended 31 December 2025
or 31 December 2024. The financial information for the year ended 31 December
2024 is derived from the statutory accounts for that year, which have been
delivered to the Registrar of Companies. The auditor reported on those
accounts; their report was unqualified, did not draw attention to any matters
by way of emphasis without qualifying their report and did not contain a
statement under s498 (2) or (3) Companies Act 2006. The audit of the statutory
accounts for the year ended 31 December 2025 is not yet complete. These
accounts will be finalised on the basis of the financial information presented
by the Directors in this preliminary announcement and will be delivered to the
Registrar of Companies following the Group's annual general meeting.
The unaudited financial statements have been prepared on the historical cost
basis of accounting except as disclosed in the accounting policies set out in
the annual report for the year ended 31 December 2024.
Going concern
The Group operates in markets whose demographics are favourable, underpinned
by an increasing need for products to treat chronic and acute wounds.
Consequently, market growth is predicted. The Group has a large number of
contracts with customers across different geographic regions and also with
substantial financial resources, ranging from government agencies through to
global healthcare companies. The 2024 acquisition of Peters Surgical expanded
AMS's product portfolio, adding additional direct sales capability in key
territories, improved manufacturing efficiency and further expanded the
Group's specialist development and commercialisation function.
With regards to the Group's financial position, it had cash and cash
equivalents at 31 December 2025 of £18.0 million (£17.0 million) and
continues to be profitable with positive operational cash flow.
The Group holds a debt facility which includes £55 million remaining on a
term loan facility and a £30 million revolving credit facility, together "the
Facility". As at 31 December 2025, £6 million of the revolving credit
facility was drawn, with £24 million available if required providing the
Group with flexible working capital. Interest on drawn funds is charged at the
SONIA interest rate plus a current bank margin of 1.5%. Both the term loan and
the revolving credit facility mature in April 2028.
The Group is required to comply with the following financial covenants 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.
The EBITDA to finance charge ratio of the Group at 31 December 2025 is 11.8
and is expected to increase as the borrowing facilities are repaid. The net
debt to EBITDA ratio of the Group at 31 December 2025 is 1.0 and is expected
to reduce as the borrowing facilities are repaid.
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 a period of 12 months from the date of issuing this preliminary
announcement. These have been based on a comprehensive review of revenue,
expenditure and cash flows, taking into account specific business risks and
the current economic environment. Sensitivity analysis has been prepared to
stress test forecasts, and the Directors are confident the business is a going
concern given the significant headroom available. The Directors also
considered whether any factors exist that might reasonably impact the Group's
ability to continue as a going concern beyond the period of 12 months from the
date of this preliminary announcement.
Having taken the above into consideration, the Directors have reached a
conclusion that the Group is well placed to manage its business risks in the
current economic environment. The directors have, therefore, deemed it
appropriate to prepare the preliminary announcement on a going concern basis
but note the existence of a material uncertainty relating to any impact of the
lenders not extending the Facility. The preliminary announcement does not
include any adjustments that would result from the basis of preparation being
inappropriate.
New accounting standards not yet applied
Certain new accounting standards, amendments and interpretations have been
published that are not mandatory for 31 December 2025 reporting periods and
have not been early adopted by the group. These standards are not expected to
have a significant impact on the Group's net results.
4. Earnings per share
(Unaudited) (Audited)
Year ended Year ended
31 December 2025 31 December 2024
Number of shares '000 '000
Weighted average number of ordinary shares 218,766 217,561
Basic weighted average number of shares held by Employee Benefit Trust (3,222) (3,222)
Weighted average number of ordinary shares for the purposes of basic earnings 215,544 214,339
per share
Effect of dilutive potential ordinary shares: share options, deferred annual 4,465 3,959
bonus, Share Incentive Plan, LTIPs
Weighted average number of ordinary shares for the purposes of diluted 220,009 218,298
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
year.
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 year.
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 their tax effect and is based on earnings of:
(Unaudited) (Audited)
Year ended Year ended
31 December 2025 31 December 2024
£'000 £'000
Earnings
Profit for the year being attributable to equity holders of the parent 9,954 7,094
Exceptional items 5,805 10,924
Tax impact of adjusted items (290) (3,857)
Amortisation of acquired intangible assets 10,313 7,804
Movement in long-term acquisition liabilities 42 (868)
Unwind of inventory fair-value accounting - 1,726
Adjusted profit for the year being attributable to equity holders of the 25,824 22,823
parent
pence pence
Basic EPS 4.62 3.31
Diluted EPS 4.52 3.25
Adjusted basic EPS 11.98 10.65
Adjusted diluted EPS 11.74 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:
Year ended Surgical Woundcare Consolidated
31 December 2025
(Unaudited) £'000 £'000 £'000
Revenue 183,451 45,485 228,936
Result
Adjusted segment operating profit 35,903 3,852 39,755
Amortisation of acquired intangibles (9,373) (940) (10,313)
Segment operating profit 26,530 2,912 29,442
Unallocated expenses (975)
Exceptional items (5,805)
Operating profit 22,662
Finance income 211
Finance costs (5,090)
Profit before tax 17,783
Tax (7,688)
Profit for the year 10,095
At 31 December 2025 Surgical Woundcare Consolidated
(Unaudited)
Other information £'000 £'000 £'000
Capital additions:
Software intangibles 995 116 1,111
Development 3,522 609 4,131
Property, plant and equipment 6,877 481 7,358
Depreciation and amortisation (18,141) (3,256) (21,397)
Balance sheet
Assets
Segment assets 340,828 53,942 394,770
Liabilities
Segment liabilities 112,655 21,306 133,961
Unallocated liabilities 705
Consolidated total liabilities 134,666
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:
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 332,709 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) (Audited)
Year ended Year ended
31 December 2025 31 December 2024
Segmental Revenue £'000 £'000
United Kingdom 19,675 16,606
Germany 30,993 32,288
France 25,055 14,790
Rest of Europe 62,468 46,314
United States of America 53,893 43,382
Rest of World 36,852 24,141
228,936 177,521
The following table provides an analysis of the Group's total non-current
assets by geographical location:
(Unaudited) (Audited)
31 December 2025 31 December 2024
Segmental Assets £'000 £'000
United Kingdom 46,173 46,027
France 93,468 99,539
Germany 67,903 64,538
Rest of Europe 28,089 29,686
Rest of world 19,772 22,428
255,405 262,218
6. Operating profit
(Unaudited) (Audited)
Year ended 31 December Year ended Year ended
31 December 2025 31 December 2024
£'000 £'000
Operating profit is arrived at after charging:
Depreciation of property, plant and equipment 8,036 6,453
Amortisation of:
- acquired intangible assets 10,313 7,804
- software intangibles 655 537
- development costs 2,393 1,508
Research and development costs expensed excluding regulatory costs 5,110 5,237
Cost of inventories recognised as expense 105,668 84,269
Write down of inventories expensed 1,130 634
Staff costs 87,679 66,496
Net foreign exchange loss (675) 141
7. Taxation
(Unaudited) (Audited)
Year ended 31 December Year ended Year ended
31 December 2025 31 December 2024
£'000 £'000
a) Analysis of charge for the year
Current tax:
Corporation Tax - current year 6,772 5,044
Corporation Tax - prior year (319) 140
6,453 5,184
Deferred tax:
Change in Deferred Tax - current year 981 (2,351)
Change in Deferred Tax - prior year 254 (152)
1,235 (2,503)
Tax charge for the year 7,688 2,681
The Group has chosen to use a weighted average country tax rate rather than
the UK tax rate for the reconciliation of the charge for the year to the
profit per the income statement. The Group operates in several jurisdictions,
some of which have a tax rate in excess of the UK tax rate. As such, a
weighted average country tax rate is believed to provide the most meaningful
information to the users of the financial statements.
(Unaudited) (Audited)
Year ended 31 December 2025 2024
£'000 £'000
b) Factors affecting tax charge for the year
Profit before taxation 17,783 9,823
Profit multiplied by the weighted average Group tax rate of 24.4% 4,272 2,850
(2024: 29.0%)
Effects of:
Net expenses not deductible for tax purposes 435 157
Patent Box Relief (1,180) (1,129)
Derecognition of deferred tax assets 3,141 -
Deferred tax asset not recognised on current year losses 1,462 1,036
Utilisation of losses on which Deferred tax asset has not been recognised (149) (301)
Share-based payments (293) 68
Taxation 7,688 2,681
8. Dividends
(Unaudited) (Audited)
Year ended Year ended
31 December 2025 31 December 2024
Amounts recognised as distributions to equity holders in the year: £'000 £'000
Final dividend for the year ended 31 December 2024 of 1.83p per ordinary share 3,954 3,556
(2023: 1.66p)
Interim dividend for the year ended 31 December 2025 of 0.85pp per ordinary 1,837 1,645
share (2024: 0.77p)
5,791 5,201
Proposed final dividend for the year ended 31 December 2025 of 2.01p (2025: 4,348 3,938
1.83p) per Ordinary Share
9. Net debt
The following table provides an analysis of the Group's net debt/cash:
(Unaudited) (Audited)
31 December 2025 31 December 2024
The following table provides an analysis of the Group's net debt £'000 £'000
Cash held at banks 18,015 17,039
Facility A borrowings (54,757) (59,548)
Facility B borrowings (5,973) (11,902)
Other Debt (6,981) (1,372)
Accrued interest (759) (27)
Net debt (50,455) (55,810)
The Group's borrowings primarily relate to a credit facility from a syndicate
comprising HSBC and Natwest which includes a £55 million long term loan with
annual repayments of £5 million per year and a £30 million Revolving Credit
Facility. At the reporting date, £6 million of the Revolving Credit Facility
was utilised, leaving flexibility to draw a further £24 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. Post
year-end the facilities were extended from running to April 2027 to until
April 2028. The facilities run until April 2028 and the Group expects to use
its positive operational cash flow to repay these facilities over time.
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.
(Unaudited) (Audited)
31 December 2025 31 December 2024
Financial covenants Covenants Actual Covenants Actual
Minimum Interest Cover* 4.00:1 11.8 4.00:1 7.8
Maximum Net Leverage** 3.00:1 1.0 3.00:1 1.2
Interest cover is calculated as a ratio of covenant-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 covenant-adjusted EBITDA in respect of that relevant
period.
10. Financial derivatives
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 31
December 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 (31 December 2024: £nil)
in respect of FVTPL contracts.
The following table details the forward foreign currency contracts to sell US
dollars outstanding as at the year end:
Foreign currency Fair value
Ave. exchange rate
2025 2024 2025 2024 2025 2024
USD:£1 USD:£1 USD'000 USD'000 £'000 £'000
Less than 3 months 1.30 1.28 10,000 9,500 265 (143)
3 to 6 months 1.29 1.23 9,000 8,500 245 131
7 to 12 months 1.28 1.25 21,000 18,000 703 47
Over 12 months 1.34 1.30 16,000 18,000 12 (474)
56,000 54,000 1,225 (439)
11. Goodwill
(Unaudited) (Audited)
31 December 2025 31 December 2024
Movement in Goodwill £'000 £'000
Balance at the beginning of the year 116,884 80,435
Acquisitions - 39,707
Movement in Goodwill (4,191) (3,258)
Balance at the end of the year 112,693 116,884
Movement in Goodwill includes movements due to exchange differences
12. Inventory
(Unaudited) (Audited)
31 December 2025 31 December 2024
At 31 December £'000 £'000
Raw materials 25,674 19,688
Work in progress 11,306 9,617
Finished goods 33,067 25,954
70,047 55,259
13. Provisions
Provisions primarily relate to contingent consideration arising on
acquisition. A maximum potential earnout of €4.0 million relating to the
2023 acquisition of Connexicon has been recognised at fair value of £1.6
million (2024: £1.4 million). Contingent consideration relating to the 2019
acquisition of Sealantis is based on a percentage of sales and is recognised
at fair value of £1.3 million (2024: £1.3 million). Contingent consideration
arising on business combinations are categorised as a Level 3 measurement in
the fair value hierarchy under IFRS 13 Fair Value Measurements.
£0.4 million was paid in the year relating to the final AFS Medical EBITDA
milestone achieved in financial year 2024 following its acquisition in 2022.
£0.7 million was paid in the year relating to the Peters Surgical earn-out
following partial achievement of the gross margin and Inventory conditions.
The US regulatory approvals or tax conditions were not achieved within the
required time resulting in £nil fair value being required at 31 December
2025.
At 31 December 2024 the fair value recognised in respect of the AFS Medical
milestone was £0.4 million and in respect of Peters Surgical it was £0.8
million.
The Directors are not aware of any additional contingent liabilities faced by
the Group as at 31 December 2025 (31 December 2024: £nil).
14. Equity
Share capital as at 31 December 2025 amounted to £10,977,000 (31 December
2024: £10,892,000). During the year the Group issued 1,692,879 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.
In August 2025, the Group entered an agreement to acquire a controlling 49%
stake in PT Peters Surgical Indonesia, an Indonesia based manufacturer of
Sutures. The Group has considered the implications of IFRS10 - Consolidated
Financial Statements and determined that the Group controls the Company and
has therefore consolidated the assets, liabilities, revenues and expenses of
the Company into the consolidated financial statements, recognising a
non-controlling interest for the portion of the subsidiary's equity not owned
by the Group.
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.
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. Iran Conflict
The Group has a facility in Israel. The revenues and physical assets at these
facilities are not material to the Group.
17. Events after the balance sheet date
As disclosed in the Integration and synergies section of the Chief executive's
review, subsequent to 31 December 2025, potential site closures were announced
internally in January 2026, with provisional closure dates for the affected
sites in March 2027. There have been no other material events subsequent to 31
December 2025.
18. Alternative performance measures
Reconciliation of Operating profit to Adjusted operating profit
(Unaudited) (Audited)
Year ended Year ended
31 December 2025 31 December 2024
£'000 £'000
Profit before tax 17,783 9,823
Amortisation of acquired intangibles 10,313 7,804
Exceptional items 5,805 10,924
Unwind of inventory fair value accounting - 1,726
Adjusted operating profit 33,901 30,277
Reconciliation of Adjusted segment EBITDA to Adjusted EBITDA
(Unaudited) (Audited)
Year ended Year ended
31 December 2025 31 December 2024
£'000 £'000
Adjusted Surgical segment EBITDA 44,671 36,466
Adjusted Woundcare segment EBITDA 6,168 4,768
Unwind of inventory fair value accounting - 1,726
Unallocated expenses (975) (2,789)
Adjusted EBITDA 49,864 40,171
Adjusted EBITDA is reconciled to operating profit in the Financial review.
Reconciliation of Gross margin to Adjusted gross margin
(Unaudited) (Audited)
Year ended Year ended
31 December 2025 31 December 2024
£'000 £'000
Gross margin 122,138 92,618
Unwind of Inventory fair value accounting - 1,726
Adjusted gross margin 122,138 94,344
Reconciliation of constant currency
Constant currency performance is measured by re-translating 2025 revenues at
the previous year's exchange rates
Surgical Business Unit 2025 2024 Change at constant currency
Re-translated Reported
£ million
£ million
Advanced Closure 48.6 43.4 12%
Internal Fixation and Sealants 8.3 8.0 3%
Sutures, clips and VTO 82.7 50.4 64%
Biosurgical Devices 27.5 22.6 22%
Other Distributed 16.9 11.4 48%
Total 184.0 135.8 36%
Woundcare Business Unit 2025 2024 Change at constant currency
Re-translated Reported
£ million
£ million
Infection and Exudate Management 42.3 36.9 15%
Other Woundcare 3.4 4.9 -30%
Total 45.7 41.8 9%
Reconciliation of Revenue excluding Peters Surgical
2025 2024 Reported growth
£ million £ million
Group revenue excluding Peters Surgical 154.8 140.3 10%
Peters Surgical 74.1 37.2 99%
Total Group revenue 228.9 177.5 29%
Reconciliation of Reported Income tax expense to adjusted Income tax
(Unaudited) (Audited)
Year ended Year ended
31 December 2025 31 December 2024
£'000 £'000
Income tax 7,688 2,681
Tax on exceptional items 1,204 1,981
Movement in Deferred Tax on acquired intangibles (926) 1,564
Tax on other adjusted items 12 312
Adjusted Income tax 7,978 6,538
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