Advanced Medical Solutions delivers record 2025 and keeps momentum into 2026
Advanced Medical Solutions Group plc (AIM: AMS) has posted record results for 2025, powered by strong organic growth and the first full-year contribution from the Peters Surgical acquisition. Surgical led the charge, Woundcare recovered, cash flow was stronger, and the dividend is up 10%. Margins eased a touch as expected with the acquisition mix, but leverage is low and integration is progressing.
| Key numbers (year to 31 Dec 2025) | 2025 | 2024 | Change |
|---|---|---|---|
| Group revenue | £228.9 million | £177.5 million | +29% |
| Surgical revenue | £183.5 million | £135.8 million | +36% cc |
| Woundcare revenue | £45.4 million | £41.7 million | +9% |
| Adjusted EBITDA | £49.9 million | £40.2 million | +24% |
| Adjusted EBITDA margin | 21.8% | 22.6% | -0.8pp |
| Adjusted profit before tax | £33.9 million | £29.4 million | +15% |
| Reported profit before tax | £17.8 million | £9.8 million | +81% |
| Adjusted diluted EPS | 11.74p | 10.45p | +12% |
| Diluted EPS (reported) | 4.52p | 3.25p | +39% |
| Net operating cash flow | £32.6 million | £19.5 million | +67% |
| Net debt | £50.5 million | £55.8 million | -10% |
| Total dividend (proposed) | 2.86p | 2.60p | +10% |
Surgical is the growth engine: adhesives, sutures and collagen all up
Surgical revenue rose 36% at constant currency to £183.5 million. Excluding Peters Surgical, the legacy AMS business delivered 10% constant currency growth – a healthy organic print that shows the core is performing, not just the bolt-ons.
LiquiBand keeps taking share
Advanced Closure (LiquiBand) hit £47.8 million, up 12% at constant currency. The US led with 13% constant currency growth to £29.4 million, helped by the longer-wound LiquiBand XL and solid channel execution. Outside the US, revenue grew 11% with wins in APAC and a useful push into cardiac sternotomy closures via the Peters network. This is classic “better applicator, bigger footprint” execution.
Sutures, clips and VTO: big headline growth, mixed proforma
Sutures, Clips and VTO jumped 64% to £82.7 million, but proforma sales (assuming Peters was owned all last year) were flat as distributors normalised inventories after the acquisition. Management expects this destocking to unwind by mid‑2026. In the US, most suture ranges now have clearance and momentum is building, while the specialist cardiovascular portfolio is still pending – now expected in 2027.
Biosurgical devices: collagen demand rising, US entry underway
Biosurgical devices rose 23% to £27.8 million, supported by antibiotic-loaded collagen and a smooth Syntacoll transition. Strategically, AMS is lining up a meaningful US collagen launch sequence: first dental cone approved in 2025, another approval expected in 2026, and broader non‑antibiotic surgical collagens from 2027 onwards. The next‑gen Freeze Dried Bone Substitute (FDBS) is targeting EU and US approvals in 2027 for the non‑drug version.
Internal fixation and sealants: signs of traction
Internal Fixation and Sealants posted £8.3 million. LiquiFix shipments picked up notably in Q4 2025, with multiple months of record end‑user sales and approvals from three major US Group Purchasing Organisations. SEAL‑G, the intestinal sealant, is seeing encouraging clinical adoption and data, and a large randomised controlled trial is in late‑stage grant approval. A simplified, second‑generation SEAL‑G device is tracking to a 2027 European filing.
Woundcare back to growth after reset
Woundcare revenue increased 9% to £45.4 million as OEM dressings and bulk materials projects delivered. The pivot to higher‑margin categories is working: Infection and Exudate Management rose 14% to £42.1 million, while Other Woundcare declined to £3.3 million due to the shrinking Organogenesis royalty. Adjusted operating margin in Woundcare improved to 8.5% (2024: 6.2%).
Margins, cash and balance sheet: the quality check
Adjusted EBITDA grew 24% to £49.9 million, though the margin dipped to 21.8% as lower‑margin acquired businesses (and higher borrowing costs) diluted group profitability. Surgical’s adjusted operating margin softened to 19.6% (2024: 22.2%), while Woundcare improved.
Cash generation stepped up: net operating cash flow was £32.6 million, up 67%. Net debt reduced to £50.5 million despite exceptional integration and restructuring costs of £5.8 million and investment in transformation, capex and inventory. Inventory cover rose to 7.4 months to support the integration programme – sensible, but something to watch. Leverage and liquidity look comfortable with interest cover at 11.8x and net leverage at 1.0x; facilities run to April 2028.
The Board proposes a total dividend of 2.86p, up 10%, with a 2.01p final. That signals confidence while still funding R&D and integration.
Integration progress and synergy runway
Peters Surgical contributed £74 million of revenue in 2025. Commercial synergies are already helping – for example, LiquiBandFix8 direct in France, IFABOND moved to direct in the UK, LiquiBand XL gaining traction with cardiac surgeons, and AMS legacy products entering Austria, Poland, Czechia and India.
Operational synergies of £10 million annually are targeted from 2027 and are “on track”, with potential site closures announced internally (four in Germany and one in Czechia, expected March 2027). Management expects incremental annual commercial synergies towards the upper end of £5–10 million from mid‑2029.
Pipeline: near-term approvals from 2026, bigger levers from 2027
- 2026: US approval for another Resorba dental collagen product; China topical adhesives 2026–2027.
- 2027: US completion of Peters suture range; EU/US FDBS (non‑drug) H1 2027; IFABOND line extensions; broader US non‑antibiotic collagens from 2027+.
- H1 2028: second‑generation SEAL‑G EU filing targeted for approval.
- 2030: antibiotic FDBS and antibiotic collagen in EU/US.
Translation: 2026 should bring steady product news, with a step‑up potential from 2027 as the collagen suite, FDBS and the full US sutures portfolio come into play.
2026 outlook: guidance and what to watch
The Board expects 2026 revenue and EBITDA in line with current market expectations: revenue £245.3 million and adjusted EBITDA £55.2 million. Management also guides to continued strong Surgical growth and modest Woundcare growth as long‑term supply deals take hold, plus further deleveraging on strong cash generation.
Key watch items for investors
- Destocking unwind in Sutures by mid‑2026 – should support proforma growth.
- LiquiFix sell‑through and surgeon adoption post GPO wins in the US.
- US collagen approvals and first meaningful revenue ramp from 2026.
- Execution on integration – footprint changes and £10 million operational synergies from 2027.
- Inventory normalisation from the current 7.4 months cover.
- Tariffs remain a £1–2 million headwind but not material under current rates.
My take: a stronger, broader AMS with clear catalysts
These are unambiguously strong numbers: 29% revenue growth, 24% adjusted EBITDA growth, robust 10% organic growth ex‑Peters, and a 10% dividend rise. Cash flow improved and net debt fell despite integration spend. That combination is exactly what you want to see in year one post a sizeable acquisition.
The trade‑off is lower near‑term margins as Peters and Syntacoll annualise, and as AMS invests in integration and regulatory pathways. I’m comfortable with that given the visible synergy plan, low leverage, and the pipeline cadence from 2026–2028. The sutures destocking explains the flat proforma there; if that unwinds as guided, Surgical should retain its growth leadership.
Net-net, AMS looks well placed to meet 2026 expectations while laying foundations for a potentially stronger 2027 as approvals land. For me, the risk-reward hinges on three things: sustained LiquiBand share gains, the sutures normalisation in H1/H2 2026, and the first tangible US collagen revenues. Deliver those, and today’s record year might soon be surpassed.
