Advanced Medical Solutions Group Plc · LSE:AMS
Advanced Medical Solutions — FY2022 Earnings Presentation
23 slides from Advanced Medical Solutions's earnings presentation, Mar 15, 2023
Slide 1: Results for the 12 months ended 31 December 2022
Advanced Medical Solutions Results for the 12 months ended 31 December 2022 15 March 2023 11
Slide 2: Financial Highlights
Financial Highlights Continued strong revenue growth, profit and cash generation • 2022 trading remained strong despite macro-economic challenges • Revenue increased 10%* to £124.3 million (2021: £108.6 million) • Adjusted profit before tax up 11% to £28.5 million (2021: £25.6 million) • Net cash in
Slide 3: Operational Highlights
Operational Highlights Regulatory and clinical progress as investment continues in next-generation products • PMA for LiquiBand Fix8® submitted and accepted by FDA, approval anticipated at the end of 2023 with strong FDA engagement • US approval of LiquiBand® XL H1 2022, US launch progressing well w
Slide 4: Product Progress: LiquiBand
Product Progress: LiquiBand® LiquiBand® Europe and ROW • Strong overall LiquiBand® growth in UK, Germany and ROW • Roll out of LiquiBand® XL across EU countries with positive feedback LiquiBand® US • Restructuring US route to market strategy to deliver next 5 years of stronger growth • Strategic rev
Slide 5: Connexicon Medical
Connexicon Medical • Connexicon Medical Ltd acquired in February 2023 for initial cash consideration of €7 million and up to €18 million deferred payments between 2023 and 2027 • Dublin based medical tissue adhesive specialist, originally a carve-out from Henkel AG • Transaction will provide signifi
Slide 6: Product Progress: InteguSeal
Product Progress: InteguSeal® InteguSeal® Global Opportunity • InteguSeal®, a cyanoacrylate microbial surgical sealant, has been an under-utilised part of our skin adhesives portfolio • Previous partner had exclusivity and only generated a low level of sales • In late 2022, AMS took over the direct
Slide 7: Product Progress: LiquiBand Fix8
Product Progress: LiquiBand Fix8® LiquiBand Fix8® Europe • Strong performance in European markets • UK NICE recommendation supporting growth • Expertise from AFS benefiting other marketing teams LiquiBand Fix8® US approval progressing well with strong FDA engagement • PMA submitted and accepted by F
Slide 8: Product Progress: SEAL-G and SEAL-G MIST
Product Progress: SEAL-G® and SEAL-G® MIST Clinical study • First human clinical study progressing well with over 80% of patients recruited • Nine active trial sites recruiting patients • Completion anticipated in H1 2023 • Key Opinion Leader feedback continues to be very positive Operational • Firs
Slide 9: Product Progress: Biosurgical Devices
Product Progress: Biosurgical Devices Collagens • Strong growth continues to be driven by demand for collagen with and without antibiotics • Expansion into new territories continues to drive growth • First distributor in Far East to exceed annual collagen revenues of £0.5 million • Dental collagen 5
Slide 10: Product Progress: Woundcare
Product Progress: Woundcare • Growth driven by higher ordering from OEM partners and increased overseas ActivHeal® sales • Orders for silver alginate range have stabilised following re-signing of key contract in 2022 • Infection management continues to be affected by reimbursement issues in some mar
Slide 11: Regulatory
Regulatory On track to meet European MDR deadlines • In December 2022, the EU commissioner announced delay to MDR enforcement until 2027 or 2028 depending on classification • It is anticipated that extensions will be granted only where MDR progress is demonstrated • AMS plans to maintain current wor
Slide 12: 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 13: Financial Summary
Financial Summary 13
Slide 14: Resilience in a Challenging Macro-economic Environment
Resilience in a Challenging Macro-economic Environment AMS continues to show resilience with its balance sheet strength and proactive management Supply chain • Proactive steps taken to mitigate risks from global supply challenges and minimise operational impact • Long shelf life of the Group’s mater
Slide 15: Financial Highlights
Financial Highlights Strong revenue growth and profitability • Group revenues increased 14% driven by commercial progress, increased pricing and foreign exchange tailwinds • Gross margins increased to 59.0% (2021: 56.2%) as increased volumes drove improved operational leverage • Total R&D spend incr
Slide 16: Group Revenue Summary
Group Revenue Summary Increasingly diversified portfolio reducing reliance on specific markets 120.0 Liquiband US • Strong growth in most product categories in 2022 100.0 Liquiband ROW • LiquiBand® US (20% of group revenue) impacted by our strategic review but 80.0 Biosurgicals expected to bounce ba
Slide 17: 2022 Results: Surgical Revenue
2022 Results: Surgical Revenue Revenue up 12%* to £74.9 million (2021: £64.6 million) Advanced Closure Internal Fixation and Sealants 35 5 Advanced Closure 30 4 • LiquiBand® revenue up 1%* to £36.0 million (2021: £33.1 million) 25 3 • Growth driven by FX and strong performance in UK/Germany and ROW,
Slide 18: 2022 Results: Woundcare Revenue
2022 Results: Woundcare Revenue 25 Infection Management 25 Exudate Management 20 20 Revenue up 8%* to £49.5 million (2021: £44.0 million) 15 15 Infection Management 10 10 • Revenue up 2%* to £16.1 million (2021: £15.1 million) 5 5 • Some markets impacted by uncertainty over reimbursement • Orders fo
Slide 19: 2022 Operating Margins
2022 Operating Margins £M Surgical Business Unit 80.0 31.4% 35.0% 29.1% 30.0% 60.0 25.0% 20.0% 40.0 74.9 64.6 15.0% Surgical 20.0 10.0% 20.3 21.8 5.0% • Adjusted operating margin decreased by 230bps 0.0 0.0% 2021 2022 • Mix effect from lower shipments of LiquiBand® to US partners Sales £ M Op profit
Slide 20: Balance Sheet to December 2022
Balance Sheet to December 2022 £ million Dec 2021 Dec 2022 Property, Plant and Equipment and other Fixed Assets 27.5 30.0 2022 capex £10m (P&M, R&D and MDR) Goodwill and Acquired Intangibles 107.0 119.2 Increased due to AFS acquisition Fixed Assets 134.5 149.2 Inventory 19.3 27.9 Increased to 6 mont
Slide 21: Summary and Outlook
Summary and Outlook 21
Slide 22: Summary and Outlook
Summary and Outlook Delivering strong performance from key businesses while maintaining focus on new products • AMS continued to generate strong revenue and profit growth in 2022 in line with expectations • Significant clinical and regulatory progress being made as the Group continues to invest in i
Slide 23: Summary, Contact and Outlook
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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