Advanced Medical Solutions’ (AMS) larger ‘branded’ business delivered 12 per cent revenue growth in 2018 to £62.1m. This was buoyed by a 22 per cent rise in advanced closure sales to £31.7m. Advanced closure comprises the Liquiband topical skin adhesive range, which saw product launches and expansion into new markets.
Internal fixation and sealants, which also sits within the branded division, similarly enjoyed revenue growth of more than a fifth to £2.1m. And the acquisition of Sealantis – announced in January – should enable AMS to “drive towards unlocking further new growth” in the $1bn internal sealants market. The deal set the group back $25m (£19m) and will also entail royalty payments.
That said, the original equipment manufacturer (OEM) business endured a 3 per cent decline in revenues to £40.5m. Here, exudate management – pertaining to advanced wound-care dressings that do not hold any microbial elements – was hit by changes in reimbursement levels in some countries, and lower-cost competition. Accordingly, its sales dipped by 6 per cent to £16m.
Broker Numis expects adjusted EPS of 10.4p in 2019, against 10.7p in 2018.
| ADVANCED MEDICAL SOLUTIONS (AMS) | ||||
| ORD PRICE: | 305p | MARKET VALUE: | £ 651m | |
| TOUCH: | 304-305.5p | 12-MONTH HIGH: | 374p | LOW: 249p |
| DIVIDEND YIELD: | 0.4% | PE RATIO: | 29 | |
| NET ASSET VALUE: | 81p* | NET CASH: | £76.4m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 63.0 | 15.2 | 6.20 | 0.70 |
| 2015 | 68.6 | 17.0 | 6.80 | 0.80 |
| 2016 | 83.2 | 19.1 | 7.48 | 0.92 |
| 2017 | 96.9 | 25.3 | 9.52 | 1.10 |
| 2018 | 102.6 | 28.4 | 10.63 | 1.32 |
| % change | +6 | +12 | +12 | +20 |
| Ex-div: | 23 May | |||
| Payment: | 14 Jun | |||
| *Includes intangible assets of £44.6m, or 21p a share | ||||
