21st Jun 2019 11:10
(Alliance News) - Advanced Medical Solutions Group PLC on Friday said it is performing well but has been hindered by a drop in sales of US LiquiBand.
Shares in Advanced Medical Solutions were down 5.1% at 303.75 pence in morning trade.
While the surgical and woundcare specialist firm is trading in line with board expectations for 2019, and there has been "strong growth" in most of its product ranges and regions, "more substantial growth" has not been achieved.
This is due to reduced sales of US LiquiBand, used to close wounds, as a result of destocking. This is a result of some customers opting not to replenish the high inventories built up ahead of Brexit. US Liquiband is set to "return to strong growth in 2020" with the launch of LIquiband XL in the first half of that year.
Furthermore, there were competitor supply issues in 2018 which boosted Advanced Medical Solutions' like-for-like performance at that time which did not repeat in 2019. Nonetheless, the company said strong growth in other parts of the company have helped offset the "temporary shortfall".
Chief Executive Chris Meredith said: "I am pleased to report that overall the group continues to perform well and we are trading in line with the board's expectations for the full year. Looking ahead, we are excited about the growth prospects for the business, the integration of Sealantis and the expected impact from new product launches. [Advanced Medical Solutions] is in a robust position and we are confident on delivering our stated growth strategy."
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