Posted on March - 29 - 2010
Tonic for investors as AMS plans dividends
Woundcare specialist Advanced Medical Solutions expects to begin paying dividends as its capital programme comes to an end, says chief executive Don Evans.
He said the AIM-listed, Cheshire-based firm, which last month rejected an approach from Consort Medical, plans to pay a maiden dividend for 2010.
AMS, which has invested millions in new headquarters in Winsford, expects to plough a further £1m into the development this year.
The company posted a strong rise in profits for 2009 before exceptional items as revenues rose 19 per cent from £20.3m to £24.1m.
Pre-tax earnings before one-off costs surged 39 per cent, from £2.9m to £4.1m. Exceptional items included its investment in the new HQ and £800,000 spent on an aborted acquisition.
Mr Evans said the firm’s order book was substantially ahead of this time last year.
Of the Consort approach, he said: “We have got a very strong organic business and are looking at acquisitions. Therefore, we are not at all looking to sell the business.
“We do believe we can control our destiny and have the support to do that. We also understand that people may see us as a high-growth opportunity but they would need to pay an attractive price for that.”
Analysts are forecasting profits of £5m before exceptional items for this year, with revenues of around £30m. AMS sells its dressings and wound sealants to hospitals, nursing homes and burns clinics worldwide.
Its products include ones containing silver, which helps to prevent infection, and seaweed, which is highly absorbent and aids the healing process. AMS also supplies a medical ‘glue’ to seal wounds.
Shares in the company ticked up by 0.25p, or 0.61 per cent, to 41p, valuing AMS at over £59m.
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