Financial Highlights:
Strong financial performance:
Gross margin further improved to 48% from 44%
Pre-tax profit increased 54% to GBP2.9 million (2007: GBP1.9 million)
Net cash inflow from operating activities of GBP2.8 million (2007: GBP3.7 million)
Strong balance sheet with net funds (1) of GBP7.3 million (2007: GBP7.2 million)
Business Highlights:
Good progress with key growth drivers:
Silver alginate market presence strengthened with additional major branded marketing and distribution partners signed for US and Europe and two new 510(k) approvals
NHS direct woundcare business continues to build momentum with full ActivHeal® product range included on new framework agreement and products used in nearly half of all NHS Hospital Trusts throughout the UK
FDA reclassification of topical tissue adhesives has accelerated the US regulatory approval process for the LiquiBand® range with initial product approved in February 2009
Corpura joint venture strengthens AMS’ position in hydrophilic polyurethane foams – the largest and fastest growing segment of the advanced woundcare dressings market
Net funds is defined as cash and cash equivalents plus short-term investments less financial liabilities
Commenting on the results Geoffrey Vernon, chairman of Advanced Medical Solutions, said:
“It was another year of excellent progress for AMS with strong growth in both revenue and profit. We have broadened our global customer base and strengthened our technology portfolio. The outlook for the business is very positive, with entry into the US market of LiquiBand™ expected in the second half of 2009 delivering another key growth driver. In addition, we continue to see opportunities to accelerate growth further through potential corporate activity.”
