Woundcare specialist Advanced Medical Solutions (AMS) has used an improved sales mix and efficiency savings to boost last year's underlying pre-tax profits by 20 per cent to £6.4m. With the benefits to come from the €63m (£53m) acquisition of German company Resorba, completed just prior to the year-end, broker Investec Securities forecasts a doubling of profits in 2012, which will drive EPS about 25 per cent higher to 5.4p.
The group' biggest division, advanced woundcare, reported 10 per cent higher sales of £27.7m, well ahead of the 3 per cent growth in the global woundcare market. The key driver was ActivHeal and foam products, which benefited from a large one-off order. However, there was continued de-stocking in the UK and Europe of silver alginate products, although this has now started to reverse. AMS is gradually winding down lower-margin lines, such as bandages, in a trend that will continue this year.
Sales at the wound closure segment, including leading product Liquiband, were flat at £6.7m. AMS now has a 5 per cent market share after launching in the US, despite market leader Johnson & Johnson retaliating with a new product that requires only a single application to seal a wound.
ADVANCED MEDICAL SOLUTIONS (AMS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 88p | MARKET VALUE: | £179m | |
| TOUCH: | 86-88p | 12-MONTH HIGH: | 96p | LOW: 63p |
| DIVIDEND YIELD: | 0.51% | PE RATIO: | 28 | |
| NET ASSET VALUE: | 33p* | NET DEBT: | 20% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 16.9 | 1.91 | 1.57 | nil |
| 2008 | 20.3 | 2.93 | 2.31 | nil |
| 2009 | 24.1 | 2.39 | 1.93 | nil |
| 2010 | 31.8 | 4.29 | 3.17 | 0.38 |
| 2011 | 34.3 | 4.58 | 3.10 | 0.45 |
| % change | +8 | +7 | -2 | +18 |
Ex-div: 16 May Payment: 15 Jun *Includes intangible assets of £39m, or 19p a share | ||||
