Annual Report & Accounts 2020
Creating quality outcomes through our innovative surgical and woundcare products
Advanced Medical Solutions Group plc Annual Report & Accounts 2020
About AMS
Advanced Medical Solutions is a world-leading developer and manufacturer of innovative and technologically advanced products for the global surgical and woundcare markets
Creating quality outcomes for our...
..patients | ...employees | ...investors |
Read about our Patients | Read about our Employees | Read about our Investors |
on pages 8 to 9 and 30 to 31 | on pages 10 to 11 and 30 to 31 | on pages 12 to 13 and 30 to 31 |
For our other Stakeholders please see pages 32 to 35
Impact of COVID-19
The restrictions relating to the COVID-19 pandemic during 2020 severely disrupted the entire global market and resulted in a significant slowdown in surgical and wound treatment volumes. In addition, the reduced access to hospitals for our direct sales teams and our partners sales teams significantly restricted our business development activities during the year.
Throughout 2020, we maintained supply to our healthcare partners and customers whilst implementing safety measures to minimise risks for our employees and their families and continued to invest in R&D and other key projects in order to be in a good position for strong growth as our end markets recover.
Our strong cash position (£54 million cash, no debt and an undrawn £80 million credit facility at 31 December 2020) underlines our robust financial condition, which enabled us to weather the global disruption caused by the pandemic.
The biggest impact was felt in the second quarter of 2020, with subsequent quarters being less impacted as hospitals gradually started to reinstate non-urgent procedures. In the first quarter of 2021, demand for our products remained below normal historical levels due to COVID-19 disruption but vaccination progress provides increased confidence of a return to more normal volumes later in the year.
B
Overview | Strategic Report | Governance | Financial Statements | |||
Financial Highlights
Group revenue (£ million) | Diluted earnings per share (p) | |
£86.8m | 3.94p | |
2019: £102.4m | 2019: 8.72p | |
Change: -15% | Change: -55% | |
Profit before tax (%) | Adjusted1 diluted earnings per share (p) |
Company Overview
- Highlights
- Our Business at a Glance
- Investment Case
Strategic Report
8 | Our Patients |
10 | Our Employees |
12 | Our Investors |
14 | Chief Executive's Q&A |
16 | Market Overview |
11.6%
2019: 23.7%
Change: -12.1pp
Adjusted1 profit before tax (%)
15.4%
2019: 26.0%
Change: -10.60pp
Profit before tax (£ million)
5.44p
2019: 9.83p
Change: -45%
Net operating cash flow
£21.5m
2019: £21.7m
Change: -1%
Net cash2 (£ million)
18 | Our Strategy |
20 | Strategy in Action |
24 | Key Performance Indicators |
26 | Operating Review - Surgical |
28 | Operating Review - Woundcare |
30 | Stakeholder Engagement (s172) |
36 | ESG and Sustainability |
44 | Financial Review |
46 | Risk Management |
Governance
52 Board of Directors
54 Senior Management Team
- Corporate Governance Report
- Audit Committee Report
- Remuneration Report
- Directors' Report
Financial Statements
£10.1m | £53.8m | |
2019: £24.3m | 2019: £64.1m | |
Change: -58% | Change: -16% | |
Adjusted1 profit before tax (£ million) | Proposed full-year dividend per share (p) | |
£13.4m | 1.70p | |
2019: £26.6m | 2019: £1.55p | |
Change: -50% | Change: +10% |
- Independent Auditor's Report
- Consolidated Income Statement
- Consolidated Statement of Comprehensive Income
- Consolidated Statement of Financial Position
- Consolidated Statement of Changes in Equity
- Consolidated Statement of Cash Flows
- Notes Forming Part of the Consolidated Financial Statements
- Company Statement of Financial Position
- Company Statement of Changes in Equity
- Notes to the Company Financial Statements
- Five Year Summary
- Alternative Performance Measures
- Advisors
Operational Highlights (including post-period end)
- Sales and profitability heavily impacted by COVID-19.
- Proposed increased dividend and repayment of UK Government furlough reflects Board's confidence and strong financial position.
- Investment in R&D increased to £7.9 million (2019: £6.5 million) as progress continued on all key projects across the Group.
- Approval and restricted US launch of LiquiBand® Rapid™. Successful completion of LiquiBand® XL clinical trials keeps us on track for approval and launch towards the end of 2021.
- US clinical trial for LiquiBandFix8® progressing well. Filing expected in 2022, following 12 month patient follow up.
- Seal-G®and Seal-G® MIST clinical study enrolment began in February 2021. CE mark extensions expected in H1 2021. Provides access to a new $1 billion market to fulfil a significant unmet need.
- Acquisition of Raleigh Adhesive Coatings in November 2020 for £22 million. Strong strategic fit with commercial synergies.
- Grahame Cook appointed to Board in February 2021. Steve Bellamy to retire from the Board at the AGM in June 2021. Board refreshment to continue over the next two years.
- Certain financial measures, including adjusted results above, are not defined under IFRS and are alternative performance measures as described on page 140.
- Net cash is defined as cash and cash equivalents plus short term investments less bank loans and financial liabilities excluding those relating to IFRS 16.
01
Advanced Medical Solutions Group plc Annual Report & Accounts 2020
Our Business at a Glance
Our Purpose
Creating quality outcomes through our innovative surgical and woundcare products
Achieved through our value chain
New product development
Research and development
Design and testing
Regulatory
Approvals for new products and new territories
Maintain approvals for existing products/markets
Operations
Manufacturing and security of supply
Quality assurance
Routes to market
Flexible route to market incorporating our direct sales teams, our global network of distributors and our OEM partners
For information see Our Supply Chain on pages 34 and 35
Underpinned by Our Values
For more information see Our Values on pages 42 and 43
Care
Caring about the work we undertake and the real life differences we can make
02
Overview | Strategic Report | Governance | Financial Statements | |
Our Strategic Pillars
Growth
Exploiting the opportunities arising from having a broad product range sold via multiple routes to market and across multiple geographies
Innovation
Strengthening our portfolio by developing or acquiring market-leading high quality products
Operational
Excellence
Continuously improving our operations to drive out cost and defend margin
Culture
Investing in recruiting and developing talent while embedding our values of Care, Fair, Dare
For information see Our Strategy on pages 18 to 23
Fair
Acting with integrity and ensuring we are fair in all aspects of business
Delivering for Our Stakeholders
Our Patients
Delivering excellent outcomes for our Patients
Our Employees
Being a great place for our
Employees to work
Our Investors
Delivering long-term sustainable growth and value for our Investors
Our Clinicians
Delivering effective, efficient and safe experiences for our Clinicians
Our Partners
Delivering quality and value for our Partners
Our Regulators
Meeting the evolving requirements of our Regulators
Our Communities
Involvement and support for our Communities
Our Supply Chain
Strong, mutually beneficial relationships for our Supply Chain
For information on Our Stakeholders see pages 30 to 35
Dare
Moving boundaries and challenging constructively to build on others' ideas
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Advanced Medical Solutions Group plc published this content on 30 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2021 16:34:02 UTC.