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Advanced Medical Solutions warns on profits after sterilisation site failure

“The full financial impact will not be known until after the closing of the financial year, but it is potentially up to £2 million of EBITDA,” said the woundcare company

Advanced Medical Solutions Group -
Orders for wound closing adhesive Liquiband will not be sterilised and shipped to customers before the end of the calendar year

Advanced Medical Solutions Group PLC (LON:AMS) shares slipped after it warned that a failure at one of its sterilisation sites could cut £2mln off its underlying profits.

The AIM-listed company said in an update on Friday that, because of the failure, December orders for the wound closing adhesive Liquiband will not be sterilised and shipped to customers before the end of the calendar year, although inventories of its products held by key customers means it does not expect the issue to hit end-sales.

The unspecified site sterilises Liquiband for medical use by firing it with a charged stream of electrons, known as an e-beam, and is expected to be back in operation from January 2020, when the backlog will be addressed.

“The full financial impact will not be known until after the closing of the financial year, but it is potentially up to £2mln of EBITDA,” said AMS.

In June, the company said that its half-year profit before tax had shrunk 17% to £11.2mln compared to the previous year, as sales took a Brexit-related hit in the US due to stockpiling.

Shares were down 3% to 258.5p in Friday morning trading.

Quick facts: Advanced Medical Solutions Group

Price: 261.5 GBX

AIM:AMS
Market: AIM
Market Cap: £561.94 m
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