Advanced Medical Solutions Group Plc · LSE:AMS
Advanced Medical Solutions — H1 2020 Earnings Presentation
22 slides from Advanced Medical Solutions's earnings presentation, Sep 16, 2020
Slide 1: A world-leading company in surgical and woundcare innovation
A world-leading company in surgical and woundcare innovation Interim Results for the six months ended 30 June 2020 16 September 2020
Slide 2: The Impact of COVID-19
The Impact of COVID-19 – Trading is in line with trading update of 9 July 2020 – All manufacturing sites remained in operation throughout the crisis, servicing customers and order Throughout COVID-19 the demand under strict controls to ensure employee Group has: safety – Increased investment in R&D
Slide 3: H1 2020 Highlights (incl. post period end)
H1 2020 Highlights (incl. post period end) – First half revenue £39.3 million (2019 H1 £48.7 million) and adjusted profit before tax of £5.3 million (2019 H1 £12.8 million) – Net cash increased to £67.9 million (2019 H1 £63.9 million) Signs of recovery in most – Investment in R&D increased to £3.8 m
Slide 4: Our Strategy for Growth
Our Strategy for Growth Product Operational Organic Leverage – Quality Innovation excellence growth acquisitions outcomes • Developing or • Quality of • Continue global • Acquire for patients acquiring high manufacturing expansion complementary quality products and security of through direct technol
Slide 5: Multiple Product Growth Drivers
Multiple Product Growth Drivers Collagens LiquiBandFix8® Strong portfolio of high – Sutures Internal sealants margin surgical and advanced woundcare devices Track record of commercial – LiquiBand® Bone success substitutes Potential for further market – share growth in all key categories Fibres Activ
Slide 6: Update on Key Commercial Activities
Update on Key Commercial Activities LiquiBand® Recovery – LiquiBand® Rapid™ approved and launched with one of the Group’s main US partners in H1 2020 – LiquiBand® now listed on both of the major US GPO contracts that were lost in 2019 – Short-term commercial agreements implemented encouraging LiquiB
Slide 7: Update on Key R&D Projects
Update on Key R&D Projects LiquiBand® XL – Development on our lead LiquiBand® XL formulation continues to progress well and we expect to re run the clinical study in Q3 2020 – 510k filing is on track for Q1 2021 – LiquiBand® XL will unlock further growth potential in the LiquiBand® business with all
Slide 8: Update on Key R&D Projects (cont.)
Update on Key R&D Projects (cont.) Sealantis progress – Soft launch commercial research activity with 30 European KOLs expected to complete in October – Progressing CE approval for the design improved Seal G devices – expected before end of 2020 – First clinical trial expected to start before end of
Slide 9: Regulatory
Regulatory Extension of AMS is using the The Group is Medical Device MDD extension to confident that its Directive (MDD) file for new product extensive deadline to May approvals in 2020 preparations will 2021 as a result of including Sealantis ensure it is well COVID-19 provides enhancements and pos
Slide 10: Licensing and Acquisitions Strategy
Licensing and Acquisitions Strategy – Our selection criteria remains unchanged: – Products or technologies that enable AMS to leverage its Woundcare customer base or surgical routes to market – Surgically-focused companies with product The Group continues to synergies, strong R&D capability and expl
Slide 11: Financial Summary
Financial Summary
Slide 12: Surgical: H1 2020 Progress
Surgical: H1 2020 Progress Revenue down 19% to £21.4 million (2019 H1: £26.5 million) Advanced Closure – LiquiBand® 20 LiquiBand® Revenue - Revenue down 35% to £8.9 million (2019 H1: £13.6 million) 15 - US sales down 37% to £5.1 million (2019 H1: £7.9 million) 10 - UK and Germany down 41% to £2.0 mi
Slide 13: Surgical: H1 2020 Progress (cont.)
Surgical: H1 2020 Progress (cont.) Biosurgical Devices Biosurgical Revenue 10 - Revenue up 21% to £5.4 million (2019 H1: £4.5 million) - Revenue growth driven by Biomatlante sales 5 - Further growth opportunities from antibiotic collagens, RESORBA® branded Bone Substitutes and 0 new freeze dried bon
Slide 14: Woundcare: H1 2019 Progress
Woundcare: H1 2019 Progress Revenue down 20% to £17.9 million (2019 H1: £22.2 Woundcare Revenue million) 25 Impacted by lower wound treatment volumes globally, deferral of elective surgery, temporary closure of wound clinics and lack of community and long-term care services 20 Year-on-year comparato
Slide 15: Revenue by Product
Revenue by Product 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 Woundcare Surgical Other Technologies Biosurgicals HY 2020 YoY Growth % (constant currency) Liquib a Technplogies and Biosurgicals -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 300% 15
Slide 16: HY 2020 Financial Highlights
HY 2020 Financial Highlights £ million H1 2020 H1 2019 Reported change Group revenue 39.3 48.7 -19% Adjusted operating margin (%) 14.0 26.7 -47% Adjusted profit before tax 5.3 12.8 -59% Adjusted diluted earnings per share (p) 2.16 4.80 -55% Net operating cash flow 8.8 10.3 -14% Net cash 67.9 63.9 +6
Slide 17: H1 2020 Operating Margins
H1 2020 Operating Margins £M Surgical Business Unit £M Woundcare Business Unit 40.0 33.7% 40.0% 30.0 25.0% 19.4% 30.0% 20.0% 30.0 15.6% 14.1% 20.0% 20.0 15.0% 20.0 10.0% 22.2 10.0% 26.5 0.0% 10.0 17.9 10.0 21.4 5.0% -10.0% 8.9 4.3 3.0 2.8 0.0 -20.0% 0.0 0.0% H1 2019 H1 2020 H1 2019 H1 2020 Sales £ M
Slide 18: Cash Flow Summary
Cash Flow Summary 2020 H1 2019 H1 £ million £ million Profit from operations before exceptional items 4.4 12.3 Depreciation and Amortisation 3.3 2.7 Working capital movements 3.6 (2.0) Share-based payments expense 0.8 1.1 Taxation (3.3) (2.9) Net cash inflow from operating activities 8.8 11.2 Acquis
Slide 19: Financial Summary
Financial Summary – Adjusted profit before tax decreased to £5.3 million (2019 H1 £12.8 million) as we continued to invest in key projects – R&D spend increased by £0.9 million to £3.8 million – LiquiBandFix8®, Sealantis and MDR investments expected to drive significant growth from 2021- 2022 onward
Slide 20: Summary and Outlook
Summary and Outlook
Slide 21: Summary and Outlook
Summary and Outlook – Second half trading in 2020 is in line with Board expectations as communicated in July – Encouraged by current trading, with COVID-19 impact expected to reduce in each subsequent quarter AMS is well positioned – Good progress being made on key R&D initiatives and US LiquiBand®
Slide 22: Contact Us
Contact Us Advanced Medical Solutions Group plc Premier Park, 33, Road One Winsford Industrial Estate Winsford, Cheshire CW7 3RT, UK Chris Meredith Chief Executive Officer Eddie Johnson Chief Financial Officer corporate@admedsol.com +44 (0)1606 863 500 www.admedsol.com
Advanced Medical Solutions Group — H1 2020 Earnings Presentation on 6ix