The results were overshadowed by ongoing bid activity after AMS rejected an approach from Consort Medical.
After a lacklustre first half at Advanced Medical Solutions, trading has improved considerably with current order books "substantially ahead" of this time last year. AMS had suffered from de-stocking by several of its major customers but this trend has now reversed.
Underlying operating profits soared 51 per cent to £4.1m but AMS suffered a hit to its bottom line due to the £800,000 costs of an aborted acquisition and a £900,000 charge to move premises. A new, much larger facility is under development to replace two older sites and when AMS moves in later this year it should have plenty of spare capacity.
AMS has started selling its wound closure product LiquiBand into the US and, with the help of major partner Cardinal Health, it should bring access to a $200m (£133m) market. The acquisition of Dutch partner Corpura was completed in September but should deliver a profits contribution this year.
Sales of its silver alginate products jumped 27 per cent and sales into the NHS have also increased reversing the previous trend.
AMS hopes to pay a maiden dividend next year but it may not get the chance if rival Consort Medical gets its way.
Broker Arden forecasts pre-tax profits of £4.2m and EPS of 2.9p (2009 £4.1m/3.1p).
ADVANCED MEDICAL SOLUTIONS (AMS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 40.75p | MARKET VALUE: | £59m | |
| TOUCH: | 40-41.5p | 12-MONTH HIGH: | 42p | LOW: 22p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 21 | |
| NET ASSET VALUE: | 16p | NET CASH: | £1.7m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 12.9 | 0.03 | 0.20 | nil |
| 2006 | 14.3 | 0.61 | 0.50 | nil |
| 2007 | 16.9 | 1.91 | 1.57 | nil |
| 2008 | 20.3 | 2.93 | 2.31 | nil |
| 2009 | 24.1 | 2.39 | 1.93 | nil |
| % change | +19 | -18 | -16 | - |
