Advanced Medical Solutions Group (LON: AMS), the AIM-listed maker of surgical adhesives and wound-closure products, cancelled its interim dividend as it published half-year results dominated by its pending takeover by H.B. Fuller. The shares barely moved on the news.
AMS shares traded around 282p in early dealing today, barely changed from yesterday’s close of 281p and near the top of their 52-week range, which spans 185.28p to 284.5p.
Group revenue rose 4% to £115.5m and adjusted EBITDA, earnings before interest, tax, depreciation and amortisation, climbed 8% to £26.3m, with the adjusted EBITDA margin improving to 22.7% from 22.0% a year earlier. Adjusted profit before tax rose 11% to £18.1m, and adjusted diluted earnings per share rose 10% to 6.25p. But reported pre-tax profit fell 96% to £0.3m, from £8.5m a year earlier, after £12.4m of exceptional costs tied to a German and Czech site-closure programme and to H.B. Fuller deal expenses, leaving diluted earnings per share negative at -0.03p, versus 2.84p a year earlier. Net debt rose to £60.3m, from £50.1m at the start of the half and £50.5m at the last year-end. The Board will not pay an interim dividend, against 0.85p per share a year earlier, a direct consequence of shareholders already approving the scheme of arrangement underpinning H.B. Fuller’s cash acquisition of AMS.
The scheme is expected to become effective in the fourth quarter, with clearances already obtained or waived in Austria, Germany and the EU, and the UK Competition and Markets Authority indicating no further questions at this stage.
Chief executive Chris Meredith said: “The last half year has been another period of good progress, and I would like to thank all of AMS’ employees, customers and suppliers for their ongoing contribution to our success. We look forward to becoming part of the combined larger medical business within H.B. Fuller and benefiting from enhanced commercial, manufacturing and distribution capabilities that should accelerate the delivery of our strategy and broaden our offering to patients.”
Completion of the deal in the fourth quarter remains the key date for AMS shareholders to watch.