(Sharecast News) - Advanced Medical Solutions (AMS) reported "strong" financial performance in line with expectations in its preliminary results on Wednesday, and announced a deal to acquire the Austria-based distributor AFS Medical.
The AIM-traded firm said its revenue increased to £108.6m for the year ended 31 December, up from £86.8m in 2020, with "strong performances" across its key product categories and territories as elective surgery levels and wound treatment volumes rebounded towards pre-pandemic levels.
It represented an increase of 25% on a reported basis, and 29% on a constant currency basis.
Adjusted profit before tax grew 92% year-on-year to £25.6m, as increased sales volumes drove "significant improvements" in operational leverage.
Net cash increased to £73m from £53.8m, which the board said was driven by "strong trading" during the year, and "robust" operational cash flow.
Investment in research and development increased to £9.3m from £7.9m, representing 8.6% of revenues, down from 9.1% in the prior year, as progress continued across the group's key projects.
AMS said revenue in its surgical business unit increased to £64.6m from £50.2m, which was an increase of 34% at constant currency, while revenues in wound care rose to £44m from £36.6m, which was a constant currency increase of 23%.
Sales of 'Global LiquiBand improved to £33.1m from £22.8m - an increase of 53% at constant currency - with the firm reporting "particular strength" in the United States market, as end user demand returned and its partners rebuilt inventories.
Reflecting the "strong" performance and its confidence in the group's outlook, the board proposed an increased final dividend of 1.37p per share, up from 1.2p at the end of 2020.
AMS also announced an agreement to acquire AFS Medical on Wednesday - an Austria-based distributor of minimally-invasive surgical devices including 'LiquiBandFix8'.
The company said the deal was expected to complete in mid-2022, subject to regulatory clearances, and would strengthen iots direct surgical sales footprint and capabilities
"The acquisition of AFS enhances our direct selling footprint and capabilities, product portfolio and our plans to increase Fix8 penetration globally and I am delighted to welcome them to the group," said chief executive officer Chris Meredith.
"Despite the pandemic continuing to present challenges, trading has started well in the new financial year and I remain confident that our commitment to innovation, investment in research and development and the expansion of our distribution network will deliver significant and robust long-term growth."
At 1232 GMT, shares in Advanced Medical Solutions Group were down 1.92% at 281.5p.
Advanced Medical Solutions Group (AMS)