6th Mar 2014 12:42
LONDON (Alliance News) - Advanced Medical Solutions Group PLC Thursday raised its total dividend and expressed confidence for another year of growth in 2014, as it saw pretax profit rise in 2013.
The company posted a total dividend of 0.60 pence, up from 0.52 pence each in the previous year.
Pretax profit rose to GBP13.1 million from GBP10.8 million in the previous year, driven by higher revenue of GBP59.5 million, up from GBP52.6 million. In 2012 profit was hit by a GBP849,000 exceptional cost relating to the integration of its acquired brand Resorba.
The company said it was seeing the first full year benefit of the reorganisation of its operations into business units. The company now separates its operations into Branded Direct, Branded Distributed, Original Equipment Manufacturing and Bulk Materials.
In Branded Direct, revenues rose 14% to GBP22.9 million from GBP20.1 million, driven by its key brands ActivHeal, LiquiBand and Resorba. Branded Distributed revenue rose 28%, driven by sales of LiquiBand in the US, said the firm.
The company said that following a disappointment with one of its distributors in 2012, progress in the acute care or hospital sector had stalled. However, it renegotiated its contract and sought more product approvals, which it said had allowed it to sign further distributorship agreements.
OEM revenue rose 7%, driven by growth in the company's silver alginate products.
Advanced Medical expressed confidence for its product pipeline. The company will launch its Hernia Mesh fixation device in the first half of 2014, and said it is also enhancing its existing range of medical adhesives.
"2013 has been another excellent year for the AMS Group. I am delighted the reorganisation into the Business Units has helped increase focus in all our varied opportunities and resulted in another year of strong double digit growth in both revenue and profits," said Chief Executive Officer Chris Meredith in a statement.
Shares in Advanced Medical Solutions rose 6.6% at 117.00 pence Thursday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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