Advanced Medical Solutions Group Plc · LSE:AMS
Advanced Medical Solutions — H1 2022 Earnings Presentation
20 slides from Advanced Medical Solutions's earnings presentation, Sep 14, 2022
Slide 1: Results for the 6 months ended 30 June 2022
Advanced Medical Solutions Results for the 6 months ended 30 June 2022 14 September 2022 11
Slide 2: Financial Highlights
Financial Highlights Continued, strong revenue growth, profit and cash generation • 2022 trading remains strong despite increasing macro-economic challenges • Revenue increased 16%* to £58.3 million (2021 H1: £50.2 million) • Adjusted profit before tax up 10% to £13.6 million (2021 H1: £12.4 million
Slide 3: Operational Highlights
Operational Highlights Regulatory and clinical progress as investment continues in next-generation products • US approval of LiquiBand® XL granted May 2022, initial orders fulfilled in Q3, launch proceeding well • US clinical trial for LiquiBand Fix8® 12-month follow-up and PMA filing remains on tra
Slide 4: Product Progress: LiquiBand
Product Progress: LiquiBand® LiquiBand® US • Strong H1 performance • Exclusive contract for LiquiBand® Rapid continuing to help drive growth with key US partner • Approval and launch of LiquiBand® XL provides access to a new fast growing $60 million market and unlocking further growth potential in b
Slide 5: Product Progress: LiquiBand Fix8
Product Progress: LiquiBand Fix8® LiquiBand Fix8® Europe • Hernia repair market beginning to recover • Major European markets all showing strong growth, especially UK, Germany and Austria • UK growth supported by NICE recommendation for use of mesh fixation with glue instead of tackers • AFS acquisi
Slide 6: Product Progress: SEAL-G and SEAL-G MIST
Product Progress: SEAL-G® and SEAL-G® MIST Clinical study • First human clinical study progressing with 50% of patients recruited • Trial recruitment initially slower than anticipated but now ramping up • Nine active trial sites now recruiting patients and recruitment rate accelerating • Completion
Slide 7: Product Progress: Biosurgical Devices
Product Progress: Biosurgical Devices Collagens • Strong growth driven by demand for collagen with and without antibiotics • Expansion of OEM customer base for collagen portfolio • Solid progress with strategy to focus on dental applications • Dental collagen 510(k) submission on track for 2023 – th
Slide 8: Product Progress: Woundcare
Product Progress: Woundcare • Several new contracts signed in H1 expanding the Group’s branded distribution network into new markets. Launches planned for H2 2022 and 2023 • A 510(k) application for the high gelling antimicrobial product was submitted in H1; approval anticipated late 2022; US launch
Slide 9: Licensing and Acquisition strategy
Licensing and Acquisition strategy Maintaining focus on delivering growth through further synergistic acquisitions • AMS continues to seek accretive acquisitions with commercial synergies and strong R&D, manufacturing, sales and marketing capabilities • New corporate business development team establ
Slide 10: Financial Summary
Financial Summary 10
Slide 11: Macro-economics challenges
Macro-economics challenges AMS continues to proactively manage inflationary and supply chain pressures Supply chain • Shortages of material did not significantly impact operations in H1 2022 but there remains the risk of disruption in future periods • Mitigating actions continue to be proactively pu
Slide 12: Financial Highlights
Financial Highlights Strong revenue growth and profitability as healthcare markets continue to recover • Group revenues increased 16% driven by commercial progress and increased pricing • Gross margins increased to 58.9% (2021 H1: 55.9%) due to higher volumes • Total R&D investment up to £5.4 millio
Slide 13: H1 2022 Results: Surgical Revenue
H1 2022 Results: Surgical Revenue Internal Fixation and Sealants Advanced Closure Revenue up 18% to £35.9 million (2021 H1: £30.4 million) 20 2 Elective surgery volumes continue to be restricted by hospital capacity and remain 15 1.5 below pre-pandemic norms and the backlog of patients is at record
Slide 14: H1 2022 Results: Woundcare Revenue
H1 2022 Results: Woundcare Revenue 8 Infection Management 12 Exudate Management 7 10 Revenue up 11%* to £22.4 million 6 (2021 H1: £19.8 million) 5 8 4 6 Infection Management 3 • Revenue up 4%* to 7.2 million (2021 H1: £6.7 million) 4 2 • Growth with OEM partners and with ActivHeal® in Gulf States 1
Slide 15: H1 2022 Operating Margins
H1 2022 Operating Margins Surgical Business Unit £M 32.4% 29.8% 35.0% 40.0 30.0% 25.0% 30.0 20.0% Surgical 20.0 15.0% 30.4 35.9 10.0% • Gross margins steady as cost inflation was recovered by price 10.0 5.0% increases 9.9 10.7 0.0 0.0% • Increased investment in product development and MDR H1 2021 H1
Slide 16: Balance Sheet to June 2022
Balance Sheet to June 2022 £ million June 2021 June 2022 Property, Plant and Equipment and other Fixed Assets 39.7 42.4 Goodwill and Acquired Intangibles 96.6 101.5 Increased due to AFS acquisition Fixed Assets 136.3 143.9 Stock 20.6 22.7 Increasing inventory to mitigate supply chain challenges Debt
Slide 17: Summary and Outlook
Summary and Outlook 17
Slide 18: Anticipated Newsflow H2 2022/2023
Anticipated Newsflow H2 2022/2023 AMS is well positioned for growth for 2022/2023, with multiple anticipated product approvals and launches: • LiquiBand Fix8® PMA filing / 12-month follow-up • SEAL-G® and SEAL-G® MIST clinical study completion • 510(k) submission for dental collagen • Negative press
Slide 19: Summary and Outlook
Summary and Outlook Delivering strong performance from key businesses while maintaining focus on new products • AMS continued to generate strong revenue growth in H1 2022 across all of its core businesses • Significant clinical and regulatory progress being made as the Group continues to invest in i
Slide 20: Contact
Summary Contact and Outlook Positioned for further growth with a promising pipeline of next-generation products Advanced Medical Solutions plc Premier Park, 33 Road One, Winsford Industrial Estate, Winsford, Cheshire W7 3RT, UK Chris Meredith (Chief Executive Officer) Eddie Johnson (Chief Financial
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