29th Nov 2019 09:42
(Alliance News) - Advanced Medical Solutions Group PLC said Friday it expects up to a GBP2 million hit to earning as deliveries of its product Liquiband were delayed by failure at one of its third-party partner's facilities.
The surgical woundcare company said it has been notified by one of its medical device sterilization partners, whom it didn't name, of a failure at one of their UK e-beam sterilization facilities.
Consequently, many of the December orders for the company's topical adhesive product Liquiband will not be sterilized and shipped to customers before the end of 2019.
The company said the full financial impact will not be known until after the closing of the financial year, but said it is potentially up to GBP2 million of earnings before interest, tax, depreciation and amortization.
The company said it has been informed by the supplier that it expects to be back in operation from January, at which point the backlog will be addressed.
"We do not expect any significant impact on end-user sales given the inventories held by our key customers," the company said.
Advanced Medical Solutions shares were down 2.4% in London at 259.50 pence each on Friday.
By Loreta Juodagalvyte; [email protected]
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