Financial results from medical devices group Advanced Medical Solutions (AMS) were once again lop-sided. Operating profits from the third-party distribution division rose 46 per cent thanks largely to a significant rise in sales of its Liquiband surgical glue, which is used in emergency rooms. However, operating profit for the direct sales business fell 13 per cent as euro sales lost power in translation.
The US continues to be the stand-out division for AMS, contributing 26 per cent of overall revenue. In the branded distribution division, reported Liquiband sales grew 93 per cent, benefiting from the first full year of sales of the hernia mesh fixation device. This has pushed Liquiband's US market share to 17 per cent, up from 11 per cent at the half-year stage.
Revenue from AMS branded products sold through the group's own channels were hit by a 13 per cent decrease in Liquiband sales to accident and emergency departments of the NHS and a 10 per cent reduction in sales of its suture products in Germany and the Czech Republic.
Broker Numis expects adjusted pre-tax profit and EPS of £19m, and 7.5p next year, up from £17m and 6.9p in 2015.
ADVANCED MEDICAL SOLUTIONS (AMS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 183p | MARKET VALUE: | £382m | |
| TOUCH: | 182-183p | 12-MONTH HIGH / LOW: | 187p | 124p |
| DIVIDEND YIELD: | 0.4% | PE RATIO: | 27 | |
| NET ASSET VALUE: | 50p* | NET CASH | £34.2m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 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 | 0.60 |
| 2014 | 63.0 | 15.2 | 6.2 | 0.70 |
| 2015 | 68.6 | 17.0 | 6.8 | 0.80 |
| % change | +9 | +12 | +9 | +14 |
Ex-div:19 May Payment:10 Jun *Includes intangible assets of £36.6m, or 18p a share | ||||
