Interim Results

Advanced Medical Solutions Grp PLC 6 September 2000 ADVANCED MEDICAL SOLUTIONS GROUP PLC. Interim Results for the Six Months to June 2000: Turnover up 28%, losses reduced by 44% Winsford, 6 September 2000. Advanced Medical Solutions Group plc., today announced interim results for the six months ended 30 June 2000. Highlights - Turnover up 28% to £3.6 million - Losses reduced by 44% to £1.8 million - Operating cash out-flow reduced by 76% to £0.7 million - Marketing and distribution deals signed with Novartis Consumer Health for Germany and Switzerland - Further patents filed in Tissue Engineering and Drug Delivery Commenting on the results Don Evans, Chief Executive of Advanced Medical Solutions said: 'Management's focus on developing the Consumer Healthcare business and on strict cost control is reflected in the positive performance reported today. The additional agreements with Novartis are beginning to drive up volumes which we can meet through the increased efficiencies of our production processes. 'With effective control of working capital and overheads we look forward to maintaining our progress in the second half.' For further information, please contact: Advanced Medical Solutions plc Don Evans, Chief Executive on 6 September Tel: 020 7457 2345 Mary Tavener, Finance Director thereafter Tel: 01606 863500 Gavin Anderson & Company Philip Ward Tel: 020 7457 2345 Charlotte Stone NOTES TO EDITORS The Company was founded in 1991. It is focused on the design, development and manufacture of a wide range of innovative and technologically advanced products for woundcare and other medical applications. The Group's activities are: 1. Advanced Woundcare Consumer. A range of sterile and non-sterile dressings utilising 'moist wound healing' for the consumer market, pharmacies and retail trade. Professional. A range of sterile and non-sterile dressings utilising 'moist wound healing' for the Professional Woundcare market, hospitals and nursing homes. The Company covers five main areas of woundcare: - Films are self adhesive, transparent polyurethane dressings with the primary purpose being to cover and protect. The films provide a barrier, which is essential in preventing further contamination. - Hydrocolloids are self-adhesive, rubber based pads made absorbent by the inclusion of polysaccharides. They are suitable for use on low to mid exudating wounds. - Alginates dressings are produced from seaweed and absorb excessive amounts of exudate and donate calcium to the wound area, thus aiding the healing process. - Foams & Membranes are designed to absorb and protect, as an alternative to hydrocolloids. They absorb fluid without breakdown and odour. - Hydrogels Amorphous hydrogels are used on necrotic or sloughy wounds to aid hydration. Sheet hydrogels are a competitor for hydrocolloids and foams, as they protect tissue in the final stages of healing. Current partners include 3M, Smith & Nephew, Molnlycke, Beiersdorf, Novartis, Boots, Spenco. Marketing and distribution agreements are in place for most of the key global markets. Advanced Medical Solutions sells most of its products through partners using their own brands such as SavlonR ElastoplastT, Tricosteril. However, it also markets products under its own brands such as ActivHealT and SpyroflexR. 2. Advanced Healthcare Advanced Medical Solutions materials and technologies are also used in other healthcare areas, for example the provision of rolls of hydrocolloid and film to partner companies to be incorporated into medical devices such as ostomy bags and catheter fixation devices. The focus of the division is to exploit the opportunities which exist to produce quality polyurethane products, building on the Company's existing platform of polymer technology. 3. Research & Technology The R & T Group focuses on cell-fibre interactions and actives/drug delivery. The cell-fibre programme utilises Advanced Medical Solutions technology to produce a range of fibres, which act as effective substrates or scaffolds for growth of a variety of cell types. The objective of this work is the development of a fibre based product for the culture of skin cells to assist in the regeneration of skin following injury. Chairman's Statement In the six months ended 30 June 2000, turnover increased to £3.6 million (1999 : £2.8 million) and the loss reduced to £1.8 million (1999 : £3.1 million). The Consumer Skincare business continued to grow strongly with sales increasing by 59% to £1.5 million (1999 : £0.9 million). Product successfully reached the shelf for the start of the season in the key UK and USA markets. Following the success of the launch of Savlon ActivHealT with Novartis Consumer Health in the UK, further agreements were signed with Novartis for Germany and Switzerland. As a result of licensing our range to marketing partners, instead of selling direct to retailers, we have been able to reduce selling expenses by 28%. Professional Woundcare sales increased 14% to £2.1 million, (1999 : £1.8 million). We are continuing our strategy of developing partnerships working with fewer, larger customers. Ongoing efforts to improve key manufacturing processes have started to bear fruit, with polymer and membrane yields up from 50% at the start of the year to 90% in June. The number of dressings produced at the Winsford facility increased from 6 million to 11 million in the half year (12 million in the whole of 1999) with the same direct headcount. Due to increased automation, the hand-pack content was reduced from 33% to 18%. We have continued to invest in new materials technology with good progress being made in establishing analytical and development capabilities in cell- fibre interactions for tissue engineering and in actives/drug delivery. Further patents have been filed and academic and commercial relationships are being forged. Working capital as a percentage of sales reduced to 17.3% (1999 : 35%) and operating cash out-flow in the period reduced from £3.0 million to £0.7 million. This has left the Company with a strong cash position of £8.2 million at the half-year. Management Focus Following the Board changes announced in the Annual Report, the new Executive team has focussed on turning around the financial performance of the Company during the first six months. Particular attention has been given to reducing losses and cash out-flow, while improvements in our manufacturing processes will provide a more efficient platform from which to grow the business in the future. Streamlining of the management team continues. These changes have contributed to a reduction in overhead expenses of £0.5 million, despite an increase in the new materials technology investment. Outlook Significant progress has been made during the first six months of 2000. The operational performance of the core business is improving steadily with further progress expected during the remainder of the year, particularly in the area of gross margin. Distribution agreements continue to be signed and new partnerships are being sought in key markets. This will ensure that we maintain a leading position in the development and manufacture of innovative products for the Advanced Woundcare market. James Noble Non-Executive Chairman Consolidated Profit and Loss Account Unaudited results for the six months ended 30 June 2000 Unaudited Unaudited Audited Six months Six months Twelve months ended ended ended 30 June 30 June 31 December 2000 1999 1999 Note £'000 £'000 £'000 Turnover 2 3,600 2,806 6,221 Cost of Sales (3,830) (3,452) (7,029) ----- ----- ----- Gross loss (230) (646) (808) Distribution costs (104) (154) (274) Administration costs (2,019) (2,594) (4,782) Other operating income 375 162 564 ----- ----- ----- Operating loss (1,978) (3,232) (5,300) Interest receivable and similar income 228 145 221 Interest payable and similar charges (20) (46) (77) ----- ----- ----- Loss on ordinary activities before taxation (1,770) (3,133) (5,156) ----- ----- ----- Taxation Loss for the period (1,770) (3,133) (5,156) ----- ----- ----- Loss per share Restated including effects of rights issue 3 (1.9p) (4.4p) (7.3p) ===== ===== ===== Statement of Total Recognised Gains and Losses Unaudited results for the six months ended 30 June 2000 Unaudited Unaudited Audited Six months Six months Twelve months ended ended ended 30 June 30 June 31 December 2000 1999 1999 £'000 £'000 £'000 Loss for the financial period (1,770) (3,133) (5,156) Currency translation differences on foreign currency net investments 2 19 14 ----- ----- ----- Total recognised losses relating to the period (1,768) (3,114) (5,142) ===== ===== ===== Reconciliation of Movements in Shareholders' Funds Unaudited results for the six months ended 30 June 2000 Unaudited Unaudited Audited Six months Six months Twelve ended ended months ended 30 June 30 June 31 December 2000 1999 1999 Note £'000 £'000 £'000 Opening 9,590 14,732 14,732 shareholders' funds Loss for the period (1,770) (3,133) (5,156) Other recognised gains and losses relating to the period (net) 2 19 14 New share capital subscribed 4 3,185 - - Premium on issue of shares during the period 4 3,821 - - Cost of share issue (480) - - ----- ----- ----- Closing shareholders'funds 14,348 11,618 9,590 ===== ===== ===== Consolidated Balance Sheets Unaudited results for the six months ended 30 June 2000 Unaudited Unaudited Audited Six months Six months Twelve ended ended months ended 30 June 30 June 31 December 2000 1999 1999 Note £'000 £'000 £'000 Fixed assets Tangible assets 5,504 5,715 5,606 Current Assets Stocks 1,656 2,243 1,803 Debtors - due within one year 1,946 1,933 2,091 Debtors - due after more than one year - 132 - Cash at bank and in hand 8,170 3,977 2,723 ----- ----- ----- 11,772 8,285 6,617 Creditors: amounts falling due within one year (2,667) (2,180) (2,306) ----- ----- ----- Net current assets 9,105 6,105 4,311 Total assets less current liabilities 14,609 11,820 9,917 Creditors: amounts falling due after more than one year (261) (202) (327) ----- ----- ----- 14,348 11,618 9,590 ===== ===== ===== Capital and reserves Called up share capital 4 9,355 6,170 6,170 Share premium amount 4 36,909 33,568 33,568 Other reserve 1,531 1,531 1,531 Profit and loss account (33,447) (29,651) (31,679) ----- ----- ----- Equity shareholders' fund 14,348 11,618 9,590 ===== ===== ===== Consolidated Cash Flow Statements Unaudited results for the six months ended 30 June 2000 Unaudited Unaudited Audited Six months Six months Twelve Ended Ended months ended 30 June 30 June 31 December 2000 1999 1999 Note £'000 £'000 £'000 Net cash outflow from operating activities (702) (3,010) (3,600) Returns on investments and servicing of finance Interest paid - - (1) Interest received 96 145 170 Interest element of finance lease rental and hire purchase payments (20) (46) (76) ----- ----- ----- Cash inflow from returns on investments and servicing of finance 76 99 93 Capital expenditure and financial investment Purchase of tangible fixed assets (384) (233) (704) Sale of tangible fixed assets 82 - 7 Cash outflow before use of liquid resources and financiang (928) (3,144) (4,204) Management of liquid resources Sale of term deposits - 2,750 4,223 Purchase of term deposits (5,204) - - Financing Issue of shares 4 7,006 - - Share issue expenses (480) - - Repayment of promissory note - - (49) Capital element of finance lease rental and hire purchases payments (151) (271) (409) ----- ----- ----- Net cash inflow/(outflow) from financing 6,375 (271) (458) ----- ----- ----- Increase/(decrease) in cash 243 (665) (439) ===== ===== ===== Notes 1.Basis of preparation The interim statements have been prepared in accordance with the accounting policies set out in the annual report for the year ended 31 December 1999. The results for the six months ended 30 June 2000 and the six months ended 30 June 1999 have not been audited and do not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The results for the year ended 31 December 1999 are extracted from the audited annual financial statements on which the auditors reported without qualification. Full financial statements for that year have been filed with the Registrar of Companies. 2. Segmental information Unaudited Unaudited Audited Six months Six months Twelve ended ended months ended 30 June 30 June 31 December 2000 1999 1999 £'000 £'000 £'000 Turnover by geographical region: United States of America 1,502 861 2,249 United Kingdom 478 519 1,220 Rest of Europe 1,603 1,371 2,688 Rest of World 17 55 64 ----- ----- ----- 3,600 2,806 6,221 Turnover by business unit: Consumer 1,450 912 2,132 Professional 2,099 1,848 3,957 Advanced Healthcare 51 46 132 ----- ----- ----- 3,600 2,806 6,221 It is not possible to identify loss before taxation and net assets by business unit because of the use of common services. 2. Segmental information (continued) Turnover, Loss before tax and Net assets by origin Unaudited Unaudited Audited Six months Six months Twelve ended ended months ended 30 June 30 June 31 December 2000 1999 1999 £'000 £'000 £'000 Turnover United Kingdom 3,502 2,779 6,194 United States 98 27 27 ----- ----- ----- 3,600 2,806 6,221 Loss before tax United Kingdom (1,691) (2,852) (4,662) United States (79) (281) (494) ----- ----- ----- (1,770) (3,133) (5,156) Net assets United Kingdom 14,251 11,389 9,512 United States 97 229 78 ----- ----- ----- 14,348 11,618 9,590 ===== ===== ===== The turnover and loss before taxation is wholly attributable to the principal activity of the Group. 3. Loss per share The basic loss per share has been calculated on a weighted average number of shares in issue for the six months ended 30 June 2000, namely 92,806,373 (1999: 70,893,769, after adjusting for the effects of the rights issue) and losses of £1,770,000 (1999: £3,133,000). The comparative loss per share as disclosed in the previous financial statements has been adjusted for the effects of the rights issue. 4. Rights issue On 6 January 2000, the Company made a rights issue on a 16 for 31 basis at 22p. The Company issued 31,847,615 ordinary 10p shares ranking pari passu with existing shares and £7,006,475 was raised before expenses.

Companies

Advanced Medical Solutions Group (AMS)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today