Advanced Medical Solutions Group (AMS) H1 2024 earnings summary

Executive summary

• Group revenue grew 10% at constant currency to £68.0m for H1 2024, with strong organic growth in the Surgical business, especially in the US market.

• Transformative acquisitions of Syntacoll (March 2024) and Peters Surgical (July 2024) significantly expand biosurgical capabilities, suture portfolio, and global reach.

• Strategic review of Woundcare completed, with initiatives underway to optimize shareholder value and focus on higher-margin business.

• New US LiquiBand® marketing strategy drove a 54% increase in US revenue; LIQUIFIX™ successfully launched in the US.

Financial highlights

• Revenue increased by 10% at constant currency to £68.0m (H1 2023: £63.1m); reported currency growth was 8%.

• Adjusted pre-tax profit rose 8% to £14.8m; reported profit before tax fell 52% to £5.7m due to £7.5m in exceptional acquisition-related costs.

• Adjusted diluted EPS up 8% to 5.35p; reported diluted EPS down 53% to 1.92p.

• Net cash decreased to £55.6m (Dec 2023: £60.2m) after Syntacoll acquisition and contingent consideration payments.

• Interim dividend increased 10% to 0.77p per share.

Outlook and guidance

• FY 2024 revenue and adjusted profit expected to be in line with Board expectations.

• Peters Surgical expected to contribute positively from H2 2024; synergies of £10m p.a. targeted by FY27.

• Further margin improvement and revenue growth anticipated from operational synergies and new product launches.