11th Sep 2019 11:33
(Alliance News) - Shares in surgical wound care firm Advanced Medical Solutions Group PLC fell sharply Wednesday as interim profit weakened, despite revenue rising.
Shares in Advanced Medical were 9.4% lower at 254.50 pence in London on Wednesday.
For the six months ended June 30, pretax profit fell 18% to GBP11.2 million from GBP13.6 million the year prior. This was despite revenue rising 2.3% to GBP48.7 million from GBP47.6 million the year before.
Profit performance was hurt by GBP1.6 million in one-off costs associated with recent acquisition activity, up from GBP40,000 the year prior. In January, Advanced Medical acquired alginate-based tissue adhesive technology firm Sealantis Ltd for USD25 million.
Rising costs elsewhere also served to hold back profit performance.
Adjusted pretax profit - excluding exceptional costs - narrowed 5.9% to GBP12.8 million from GBP13.6 million the year before.
"The group continues to perform well and I am pleased to report another period of growth," Advanced Medical Chief Executive Officer Chris Meredith said.
Advanced Medical proposed a 0.50 pence per share interim dividend, up 19% from 0.42p the year prior.
"Despite disappointing trading in the US for LiquiBand, which we expect to recover next year, we are excited by the upcoming product approvals and pleased with the progress made across multiple products and markets," Meredith added. "The board continues to be optimistic about our long-term prospects and the potential for further organic and acquisitive growth."
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Advanced Medical Solutions Group