AGM Statement

RNS Number : 1429F

Advanced Medical Solutions Grp PLC

12 June 2012

 



12 June 2012

 

Advanced Medical Solutions Group plc

("AMS" or the "Group")

 

Annual General Meeting and Update on Trading

Winsford, UK: Advanced Medical Solutions Group plc (AIM: AMS.L), the global medical technology company, will hold its Annual General Meeting at 11.00 today.

Dr. Don Evans, Non-Executive Chairman of the Group, will make the following statement regarding current trading.

"I am pleased to report that the good start to the year, as highlighted in the 2011 Preliminary Results announcement on 7 March 2012, is continuing.

We continue to make good progress in the US market with our LiquiBand® range of products, with end-user sales increasing and further market share gains. We expect to see the impact of this progress in our ex-factory sales during the second half and we anticipate good growth for the full year. In relation to LiquiBand Flex®, we are well advanced with signing up and training distributors and are currently going through key evaluations which should be finalised by the end of the summer.

Our integration of RESORBA® is progressing to plan. We are advancing through the programme set out at the beginning of the year and we have now completed the first NHS tender for RESORBA®'s range of products, in line with our stated strategy. We expect the outcome of this first tender toward the end of the year. As a consequence of the RESORBA® acquisition, more of our Group revenues are now Euro denominated. The Group has hedged to protect profitability and, although underlying sales remain healthy, the consequent weakening of the currency could affect our headline revenue number on translation into sterling. 

Elsewhere in the Group, our ActivHeal® range continues to perform well and the de-stocking effect that we experienced with one of our partners for silver alginate is now behind us. In our foam business, the targeted H2 launch of trilaminate foam dressings remains on track. However, as discussed in our Preliminary Results, 2012 foam revenues are expected to be impacted by the non-repetition of a large, roll-stock launch order in 2011, combined with our continuing strategy of focusing on higher margin business.

The effect of the expected reduction in foam revenues, together with the likely Euro impact, is that we anticipate full year Group revenues will be below expectations but with a negligible effect on profitability.

In conclusion, whilst global economic conditions remain challenging, the Board is pleased to confirm that we expect profitability for the full year 2012 to be in line with current market forecasts. The long term prospects for the Group remain excellent and we look forward to the coming months with confidence."

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For further information, please visit www.admedsol.com or contact:

Advanced Medical Solutions Group plc	Tel: [phone]
Chris Meredith, Chief Executive Officer Mary Tavener, Group Finance Director
Tavistock Communications	Tel: [phone]
John West / Chris Munden / Andrew Dunn
Investec Bank plc	Tel: [phone]
Gary Clarence / Daniel Adams / Patrick Robb

About Advanced Medical Solutions Group plc - see www.admedsol.com 

Founded in 1991, AMS is a leader in the development and manufacture of innovative and technologically advanced products for the US$15 billion global wound care market. These products are sold in countries across the globe either directly or through strategic partners and distributors.

AMS's advanced woundcare products are based on an extensive range of technologies including alginates, silver alginates and hydrophilic polyurethane foams. These and other products pioneer the concept of moist wound healing, allowing wounds to heal faster and with less pain and scarring. They protect the wound, deal with tissue fluids, provide an optimal environment for healing to occur and, in the case of silver alginates, include a safe and effective broad-spectrum anti-microbial agent for infection control. AMS's advanced woundcare products are sold globally on an Original Equipment Manufacturer basis and, in the UK, direct to the NHS under the ActivHeal® brand.

AMS's wound closure and sealants products are based on cyanoacrylate adhesive ("superglue") technology developed for medical applications. Tissue adhesives offer significant benefits over conventional ways of closing wounds following trauma or surgical incision. They are simple to use, non-invasive, help to reduce the risk of infection, minimise trauma to the patient and provide good clinical and cosmetic outcomes. The technology is also ideally suited to protecting skin from breakdown or for use as a skin sealant to help prevent infection of surgical sites. AMS's wound closure and sealants products are primarily sold under the LiquiBand® brand via a network of distributors.

In December 2011, AMS acquired RESORBA, a German based woundcare and wound closure business. RESORBA is a 75 year old manufacturer and distributor of sutures and collagen products for surgical disciplines, with direct sales capabilities from sites in Germany, the Czech Republic and Russia, targeting surgeons working in hospitals and private practices, and oral surgery. RESORBA has a range of its own technologies and brands, and also distributes a range of complementary, third-party products, including AMS's LiquiBand® tissue adhesive, which it has distributed in Germany for the previous eight years.

 

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