Advanced Medical Solutions Group plc (LON:AMS), a world-leading specialist in tissue-healing technologies, has announced its unaudited preliminary results for the year ended 31 December 2024.
Financial Summary:
| 2024 | 2023 | Reported change | Change at constant currency¹ | Growth excluding acquisitions5 | |
| Revenue (£ million) | 177.5 | 126.2 | +41% | +43% | +10% |
| Adjusted Measures | |||||
| Adjusted² EBITDA (£ million) | 40.2 | 29.7 | +35% | ||
| Adjusted² EBITDA margin | 22.6% | 23.5% | -0.9pp | ||
| Adjusted² profit before tax (£ million) | 29.4 | 25.9 | +14% | ||
| Adjusted² profit before tax margin | 16.6% | 20.5% | -3.9pp | ||
| Adjusted3 diluted earnings per share (p) | 10.45 | 9.05 | +16% | ||
| Reported Measures | |||||
| Profit before tax (£ million) | 9.8 | 21.2 | -54% | ||
| Profit before tax margin | 5.5% | 16.8% | -11.2pp | ||
| Diluted earnings per share (p) | 3.25 | 7.25 | -55% | ||
| Net operating cash flow (£ million) | 19.5 | 12.3 | +58% | ||
| Net (debt)/cash4 (£ million) | (55.8) | 60.2 | -193% | ||
| Proposed full year dividend per share (p) | 2.60 | 2.36 | +10% |
Business Highlights (including post Period end):
Advanced Medical Solutions Group is pleased to report Full Year 2024 results in line with consensus forecasts and excellent progress in integrating the recent acquisitions of Peters Surgical and Syntacoll.
Operational
· Successful implementation of the new route to market strategy in late 2023 has resulted in strong growth from US LiquiBand® throughout 2024.
· Transformational acquisition of Peters Surgical SAS (“Peters Surgical”) at an enterprise value of €132.5 million (£113 million) was completed on 1 July 2024. The acquisition added £37.2 million of revenue from the July acquisition date.
· Acquisition of Syntacoll GmbH (“Syntacoll”) for €1 million on 1 March 2024, a specialist manufacturer of drug-eluting collagens has significantly strengthened the capacity and capability of the Group’s existing Biosurgical business. The acquisition added £5.6 million of revenue from the March acquisition date.
· The full in-market launch of LIQUIFIXTM, the first atraumatic hernia fixation device in the US, resulted in better-than-expected initial orders. On the back of major Group Purchasing Organisation (“GPO”) approvals, accelerated in-market growth is expected in 2025 and record monthly end user sales were recorded in January and February 2025.
Financial
· Group revenue increased by 43% at constant currency to £177.5 million (2023: £126.2 million), driven by strong growth in US LiquiBand®, other key surgical product categories and the acquisitions of Peters Surgical and Syntacoll. Excluding both acquisitions, group revenue increased by 10% at constant currency.
· Adjusted profit before tax increased by 14% to £29.4 million (2023: £25.9 million) and reported profit before tax decreased by 54% to £9.8 million (2023: £21.2 million) as a result of acquisition and integration costs.
· Net debt at 31 December 2024 stood at £55.8 million (2023: Net cash of £60.2 million) following the acquisition of Peters Surgical.
· Investment in R&D increased to £12.9 million (2023: £12.6 million), representing 7% of revenues (2023: 10%). Whilst the gross investment in R&D has increased following the addition of Peters Surgical, R&D expenditure as a proportion of revenue has been diluted by the acquisition and by reduced Medical Device Regulation (“MDR”) related investment.
· Surgical Business Unit revenues (excluding Peters Surgical) increased to £98.6 million (2023: £79.1 million), an increase of 28% at constant currency, driven by strong performances from all key product categories.
· Woundcare Business Unit revenues decreased to £41.8 million (2023: £47.1 million), a decrease of 11% at reported and constant currency due to a number of factors. Strategic initiatives within the Woundcare business are being successfully implemented, which are expected to positively impact margins in 2025.
· Reflecting management’s ongoing confidence in the Group’s outlook, the Board proposes an increased final dividend of 1.83p per share (2023: 1.66p) bringing the total proposed dividend to 2.60p per share (2023: 2.36p).
Commenting on the results Chris Meredith, Chief Executive Officer of Advanced Medical Solutions Group, said: “I am very pleased to report such a strong set of results during a year where AMS went through such a significant transformation. The integration of both Peters Surgical and Syntacoll has established the Group as a larger, more diverse tissue-healing specialist with a broader geographic reach. 2025 has started well and we remain confident that the strong, underlying momentum of our core business, combined with the broader portfolio, synergies and benefits from the acquisitions, will drive future strong topline growth and greater profitability.”
Notes
1. Constant currency removes the effect of currency movements by re-translating the current year’s performance at the previous year’s exchange rates
2. Reconciled in the Financial Review
3. Reconciled in note 6 of the financial information
4. Net debt consists of cash and cash equivalents of £17.0 million and £72.8 million of borrowings, excluding the impact of IFRS16 as reconciled in note 7 of the financial information. (2023: £60.2 million of cash and £nil debt)
5. Growth excluding acquisitions excludes the impact of acquisitions in the year on a constant currency basis
