Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
AMS reports higher revenue and lower profit, proposes fresh acquisition
(Sharecast News) - Advanced Medical Solutions unveiled its unaudited preliminary results for 2023 on Wednesday, alongside a significant acquisition announcement. The AIM-traded firm reported a 2% increase in group revenue to £126.2m for the year.
Despite challenges such as reduced royalties and a temporary dip in US LiquiBand revenue, AMS saw growth, particularly in its surgical business unit, which experienced a 6% increase in revenue to £79.1m.
Adjusted profit before tax decreased 9% to £25.9m, however, reflecting margin impacts from revenue fluctuations.
Operationally, AMS reported resilience and progress, with FDA approval for LIQUIFIX, successful clinical trials for SEAL-G, and the acquisition of Syntacoll and Connexicon taking place during the year.
AMS also initiated a strategic route-to-market shift for US LiquiBand, resulting in accelerated growth projections for 2024.
"I am very pleased with the progress we made in 2023 with a number of key initiatives setting a strong foundation for growth for the next five years," said chief executive officer Chris Meredith.
"The recently signed US distribution agreements are already having a positive impact on the LiquiBand franchise."
Meredith said market feedback through the firm's new US partner for LIQUIFIX validated the confidence it had in the commercial potential for the product.
"Outside the US, we continue to make excellent progress as we strengthen our position in established markets and drive growth through geographic expansion."
In a transformative move, AMS also announced the proposed acquisition of Peters Surgical for total maximum cash of €141.4m (£121m).
The company said the strategic acquisition would strengthen its global position by integrating Peters Surgical's specialty surgical sutures, mechanical hemostasis, and internal cyanoacrylate devices into its portfolio.
Peters Surgical, generating €84m in revenue in the 12 months ended 31 December 2023, would bolster AMS's capabilities in tissue repair and skin closure, the board explained.
The acquisition, structured with an initial cash payment of €132.5m and additional earnouts, was expected to yield significant long-term benefits, including enhanced sales capabilities, geographic expansion, and synergistic opportunities.
Expected to close by June, the transaction was projected to deliver high single-digit earnings accretion in its first full year, aligning with AMS's strategic vision for growth.
"Peters Surgical is an ideal fit for AMS in terms of its complementary expertise, global reach and potential for synergies with AMS's existing portfolio," Chris Meredith added.
"As well as broadening our portfolio, AMS will benefit from the shared capabilities of the two companies, including direct sales channels, distribution networks, and manufacturing locations.
"We're thrilled to have secured such a transformational deal which aligns perfectly with our acquisition strategy."
At 1145 GMT, shares in Advanced Medical Solutions Group were up 1.66% at 214p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.