Woundcare specialist Advanced Medical Solutions (AMS) hopes its new mesh-implant product for treating hernias will reignite growth in Germany when it launches in Europe in the second half of 2014. After releasing its 2013 full-year figures, chief executive Chris Meredith admitted that 8 per cent growth in German sales, at constant currency, was disappointing.
The group did better at home. Sales of its ActivHeal dressings to the NHS grew 32 per cent to £5.5m, while LiquiBand sales into A&E departments and operating rooms grew 5 per cent to £2.5m and 175 per cent to £400,000 respectively.
US sales have also started to recover, following a failed distribution agreement with Cardinal Health in 2012 that lost AMS market share in US hospitals. AMS said recent approval from the drugs watchdog for its new tissue-adhesive product will strengthen its US product offering and offset slow-moving changes to its distribution network.
New product approvals will be crucial for growth in 2014. Alongside the hernia product launch across Europe, AMS will start selling LiquiBand products into China, once approval is granted later this year. Finishing 2013 with a positive cash position also allows the group to eye up potential acquisitions this year.
Broker Investec Securities expects pre-tax profits of £15m for 2014, giving EPS of 6p - up from 5.6p in 2013.
ADVANCED MEDICAL SOLUTIONS (AMS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 118p | MARKET VALUE: | £244m | |
| TOUCH: | 117-119p | 12-MONTH HIGH: | 122p | LOW: 67p |
| DIVIDEND YIELD: | 0.5% | PE RATIO: | 21 | |
| NET ASSET VALUE: | 42p* | NET CASH: | £5.3m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 24.1 | 2.4 | 1.9 | nil |
| 2010 | 31.9 | 4.3 | 3.2 | 0.38 |
| 2011 | 34.3 | 4.6 | 3.1 | 0.45 |
| 2012 | 52.6 | 10.8 | 4.8 | 0.52 |
| 2013 | 59.5 | 13.1 | 5.5 | 0.6 |
| % change | +13 | +21 | +16 | +15 |
Ex-div: 30 Apr Payment: 28 May *Includes intangible assets of £53m, or 26p a share | ||||
