Advanced Medical Solutions Group Plc · LSE:AMS
Advanced Medical Solutions — H1 2019 Earnings Presentation
20 slides from Advanced Medical Solutions's earnings presentation, Sep 11, 2019
Slide 1: Unaudited Interim results for the six months ended 30 June 2019
Advanced Medical Solutions Group plc Unaudited Interim results for the six months ended 30 June 2019 Chris Meredith Chief Executive Officer Eddie Johnson Chief Financial Officer 11 September 2019
Slide 2: H1 2019 Highlights (incl. post period end)
Advanced Medical Solutions Group plc 1 H1 2019 Highlights (incl. post period end) • Group revenues up 2% to £48.7 million and by 1% at constant currency • 10% growth in products and geographies excluding US LiquiBand® • As per June trading update, US LiquiBand® sales reduced significantly due to des
Slide 3: Our Realigned Business Units
Advanced Medical Solutions Group plc 2 Our Realigned Business Units Surgical Woundcare • Selling, marketing and innovation of all surgical • Selling, marketing and innovation of all devices woundcare devices • Sold directly and through distributors • Sold directly in UK and through partners ROW • R&
Slide 4: Surgical: H1 Progress & Growth Opportunities
Advanced Medical Solutions Group plc 3 Surgical: H1 Progress & Growth Opportunities 2019 achievements: • The US Premarket Approval process for LiquiBand® Fix8™ underway with IDE patient enrolment having commenced in August 2019 • Regulatory approval for antibiotic loaded collagens underway in both E
Slide 5: Short term US LiquiBand® challenge
Advanced Medical Solutions Group plc 4 Short term US LiquiBand® challenge 2019 impacted by: • Destocking • Competitor gains at two large Group Purchasing Organisations • Portfolio weakness from not having approval for large wound device Dermabond Prineo LiquiBand XL US LiquiBand® is expected to retu
Slide 6: Acquisition of Sealantis
Advanced Medical Solutions Group plc 5 Acquisition of Sealantis • Acquisition in January 2019 for $25m (c. £19m) • Internal sealants market over $1.0 billion and growing • Brings a significant pipeline of products, intellectual property and an outstanding R&D team • The most advanced surgical sealan
Slide 7: Enhancements to SEAL-G
Advanced Medical Solutions Group plc 6 Enhancements to SEAL-G Seal-G for open surgery Intended new Seal-G device Seal-G MIST for laparoscopic surgery Intended new Seal-G MIST device
Slide 8: Woundcare: H1 Progress & Growth Opportunities
Advanced Medical Solutions Group plc 7 Woundcare: H1 Progress & Growth Opportunities 2019 achievements: • US approval for Atraumatic Silicone PHMB dressings (July 2019) • US approval for our Silver High Performance Dressing (July 2019) • US and EU approval for our Silver Moisture Wicking Fabric (Aug
Slide 9: Licensing & Acquisitions: supporting growth
Advanced Medical Solutions Group plc 8 Licensing & Acquisitions: supporting growth Net cash of £63.9m and debt facility of £80m (+£20m) at 30 June 2019 • The Group continues to explore options to acquire other businesses to accelerate growth and deliver value for our shareholders. Our selection crit
Slide 10: Regulatory
Advanced Medical Solutions Group plc 9 Regulatory European Medical Devices Regulation (MDR) inception May 2017 • Successfully completed five-year recertification process for the LiquiBand® range in H1 2019 – following on from the recent recertification of the RESORBA® portfolio • The Group is well p
Slide 11: Financial Summary
Advanced Medical Solutions Group plc Financial Summary
Slide 12: Surgical: H1 2019 Progress
Advanced Medical Solutions Group plc 11 Surgical: H1 2019 Progress LiquiBand® Revenue Revenue down 4% to £26.5m (2018 H1: £27.3m) 18 16 • Advanced Closure - LiquiBand® 14 Revenue down 13% to £13.1m (2018 H1: £14.6m) 12 • US sales down 31% to £7.7m (2018 H1: £10.5m) 10 • UK & Germany up 25% to £3.4m
Slide 13: Surgical: H1 2019 Progress (continued)
Advanced Medical Solutions Group plc 12 Surgical: H1 2019 Progress (continued) Biosurgical Revenue 6 • RESORBA® Biosurgical (Collagen) 4 Revenue up 6% to £4.5m (2018 H1: £4.3 million) • Progress with multiple distributors 2 • Good growth with Gentacoll® Gentamycin loaded Collagen 0 products used in
Slide 14: Woundcare: 2019 H1 Progress
Advanced Medical Solutions Group plc 13 Woundcare: 2019 H1 Progress Revenue up 8% at £22.2m (2018 H1: £20.3m) Woundcare Revenue 25 Sales predominately driven by increased partner 20 demand for antimicrobial dressings • Infection Management (Antimicrobial dressings) up 12% to £9.4m (2018 H1: £8.3m) 1
Slide 15: 2019 H1 Financial Highlights
Advanced Medical Solutions Group plc 14 2019 H1 Financial Highlights (£ million) H1 2019 H1 2018 Reported Growth at change constant currency¹ Group revenue 48.7 47.6 +2% +1% Adjusted Adjusted2 profit before tax 12.8 13.6 -6% - Adjusted2 diluted earnings per share (pence) 4.80 4.97 -3% - Adjusted3 ne
Slide 16: Revenue by product
Advanced Medical Solutions Group plc 15 Revenue by product 50.0 Other Other Technologies 45.0 Technologies Exudate 40.0 Management Exudate Woundcare Management 35.0 Infection Infection 30.0 Management Control 25.0 RESORBA 20.0 RESORBA 15.0 Surgical Fix 8 Fix 8 10.0 LiquiBand LiquiBand 5.0 0.0 -20.0%
Slide 17: 2019 H1 operating margins
Advanced Medical Solutions Group plc 16 2019 H1 operating margins £M Surgical Business Unit 40.0 36.4% 40.0% 33.7% 35.0 35.0% 30.0 30.0% 25.0 25.0% 20.0 20.0% 15.0 27.3 15.0% 26.5 10.0 10.0% 5.0 10.0 8.9 5.0% 0.0 0.0% H1 2018 H1 2019 Sales £ M Op profit £ M (adj) Op mgn (adj) % £M Woundcare Business
Slide 18: Cash Flow Summary
Advanced Medical Solutions Group plc 17 Cash Flow Summary 2019 H1 2018 H1 Variance £ million £ million £ million Cash flows from operating activities Profit from operations before exceptional items 12.3 13.7 (1.4) Depreciation and Amortisation 2.7 2.0 0.7 Working capital movements (2.0) (2.2) 0.2 Sh
Slide 19: Summary and Outlook
Advanced Medical Solutions Group plc Summary and Outlook
Slide 20: Summary and outlook
Advanced Medical Solutions Group plc 19 Summary and outlook • The Group continues to execute on its strategy of exploiting multiple routes to market and diversifying through our product mix and innovation • H1 2019 has seen AMS deliver another period of growth in challenging conditions, despite the
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