11th Mar 2020 09:18
(Alliance News) - Advanced Medical Solutions Group PLC on Wednesday reported a slight revenue dip and a double-digit profit fall, but lifted its payout to shareholders.
The surgical and wound care products maker said revenue was down 0.2% to GBP102.4 million in 2019 from GBP102.6 million in 2018, or 1% on a constant currency basis.
Pretax profit was 14% lower at GBP24.3 million from GBP28.3 million.
"Despite significant challenges in 2019, growth was achieved across multiple categories, but was offset by previously reported the downturn in US LiquiBand," Advanced Medical said.
A third-party issue caused deliveries of its LiquiBand wound care product to be delayed, but this has since been resolved, it said.
The company in November said it took a GBP2 million hit from the delivery delays.
The Advanced Closure woundcare business unit was hurt by the issues with LiquiBand. Full-year revenue there was down 10% to GBP28.5 million.
The Surgical unit had a 1.0% revenue fall to GBP56.5 million.
The company upped its dividend by 17% to 1.55 pence per share from 1.32p.
Chief Executive Chris Meredith said: "2019 was a challenging year and despite the setbacks we faced, I am pleased with the overall performance of the group, other than for US LiquiBand sales, which were disappointing. We look forward to regaining positive momentum in our US LiquiBand business given the recent approval of LiquiBand Rapid and the anticipated approval of LiquiBand XL."
On Tuesday, Advanced Medical had said the US Food & Drug Administration has given approval for wound closure product LiquiBand Rapid, which can be used in settings such as the operating room and emergency room.
Winsford, Cheshire-based Advanced Medical expects the product to allow it to "regain ground". It will commercialise it immediately via a partner in the US.
Meredith said on Tuesday: "The approval of LiquiBand Rapid is an important development for our LiquiBand product range. Innovation remains a key driver of organic growth for the group and this approval demonstrates the capabilities of our internal R&D and regulatory teams.
"The group remains confident of the growth potential for the LiquiBand range alongside multiple other wound care and surgical opportunities including those arising from the acquisitions of Biomatlante and Sealantis."
French surgical biomaterial maker Biomatlante was bought in December for EUR8 million in cash, while alginate-based tissue adhesive firm Sealantis was purchased at the start of 2019 for USD25 million.
Shares in the company were 1.8% lower at 251.50p each in London on Wednesday morning.
By Eric Cunha; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Advanced Medical Solutions Group