Advanced Medical Solutions (AMS) Group has reported a noteworthy eight per cent increase in revenue, reaching £68 million in the first half of 2024. This financial uplift has been significantly driven by the robust performance of its surgical business unit, offsetting challenges faced by its Woundcare division. Concurrently, the company has attracted the attention of private equity firm Inflexion, as per reports from Sky News.
AMS Group, headquartered in Wilmslow, Cheshire, specialises in the development and manufacturing of tissue-healing technology. The firm’s interim results for the six months ending on 30 June reveal a substantial growth in its surgical business unit. This growth has helped mitigate the issues in its Woundcare unit, resulting in an uplift in adjusted pretax profit by eight per cent, rising to £14.8 million from £13.8 million in the previous year. Nevertheless, reported pretax profit experienced a significant decline of 52 per cent, falling to £5.7 million. This decrease was attributed to acquisition-related exceptional items incurred during the period.
In a transformative move, AMS Group completed the acquisition of Peters Surgical in July for £120 million. Peters Surgical is known for its surgical sutures, and this acquisition has been described as ‘progressing well.’ Earlier in the year, the company also acquired Syntacoll, a specialist in drug-eluting collagens. These strategic acquisitions have substantially bolstered AMS Group’s biosurgical business.
CEO Chris Meredith expressed satisfaction with the company’s achievements, stating, ‘We are delighted with the progress made so far this year, having completed the acquisitions of Peters Surgical and Syntacoll and now being able to report such a strong first half performance from the AMS Surgical business unit.’ Despite ongoing difficulties within the Woundcare unit, Meredith indicated that a strategic review had identified a pathway to enhancing its profitability.
Looking ahead, AMS Group projects that both its revenue and adjusted profit will meet expectations. In light of the positive interim results, the company has increased its dividend to 0.77p from 0.70p last year.
Adding another layer of interest to AMS Group’s recent activities, Sky News has reported that private equity firm Inflexion has shown an interest in the company. However, it remains unclear whether active discussions are underway, as AMS Group did not address any takeover interest in its financial results.
In summary, AMS Group’s financial performance in the first half of 2024 has been bolstered by its strategic acquisitions and the strong performance of its surgical business unit. Despite facing challenges in its Woundcare division, the company has shown resilience and potential for future profitability. The reported interest from private equity firm Inflexion adds an intriguing dimension to AMS Group’s ongoing narrative.