Wound care specialist Advanced Medical Solutions reported better looking figures for this year's first half than was the case last year - 2009's first half was hit by destocking, notably in the UK and US. The group also confirmed that it's on track to pay a maiden dividend at the year-end, representing 10 per cent of post-tax profits.
The company was hit with exceptional costs - from Consort Medical's failed bid approach in March, as well as from moving to larger premises. But those new facilities will be on-stream by the year-end and should deliver decent efficiencies and extra capacity. What's more, management has built on the strong recovery seen in last year's second half, with sales up 25 per cent in the period - excluding Corpura's acquisition, whose foam-based technology provides access to a fast-growing segment of the wound care market.
Meanwhile, the wound closure operation should receive a boost from the fact that Advanced's LiquiBand product has been introduced to the large US market. That unit should also benefit from developing below-the-skin products for treating internal wounds - an increasingly important area given the rising demand for keyhole surgery.
Numis Securities expects pre-tax profit of £5m for 2010, giving EPS of 3.5p (£4.1m and 2.9p in 2009).
ADVANCED MEDICAL SOLUTIONS (AMS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 54p | MARKET VALUE: | £82.8m | |
| TOUCH: | 54-55p | 12-MONTH HIGH: | 55p | LOW: 27p |
| DIVIDEND YIELD: | nil | PE RATIO: | 18 | |
| NET ASSET VALUE: | 15p* | NET DEBT: | 1% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 9.88 | -0.05 | -0.02 | nil |
| 2010 | 14.5 | 1.44 | 0.99 | nil |
| % change | +47 | - | - | - |
Ex-div:- Payment:- *Includes intangible assets of £2.8m, or 2p a share | ||||
