5th Jul 2016 08:38
LONDON (Alliance News) - Advanced Medical Solutions Group PLC on Tuesday said trading in its first half was in line with its expectations, though noted that its full year revenue should come in higher than expectations thanks to the UK's vote to leave the European Union.
The surgical and wound care product manufacturer confirmed that its trading for the six months ended June 30 had been in line with its expectations, and noted that it expects its profitability for the full year to end December 31 to be in line with current market expectations.
However, Advanced Medical said it expects its revenue to come in ahead of expectations, based on the exchange rates at June 23, primarily as a result of currency effects. The company said, while there has been no immediate impact on the company's day-to-day operations following the UK referendum, as the sterling weakens against the US dollar and the euro, its revenue get a translational benefit. Around 30% of its sales are generated in US dollars and 30% are in Euros.
Advanced Medical Solutions said it hedges significant transaction exposure and aims to have 70% of its estimated transactional exposure for the next twelve months, on a rolling basis, hedged. As such, the benefit of weak sterling is unlikely to be significant in the short term. However, its main transactional exposure is to the US dollar, as Advanced Medical Solutions said it is more naturally hedged against the euro because of its European operations and cost base.
"The board is pleased with the ongoing strong performance of the business and we are on track for the full year. We remain focused on our strategic objectives whilst delivering innovation to patients and surgeons," said Chief Executive Chris Meredith.
Advanced Medical Solutions will post its interim results in September.
Shares in Advanced Medical Solutions were down 0.6% at 195.50p on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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