Advanced Medical Solutions Reports 66% Revenue Growth in H1 2025

H1 2025: AMS delivers 66% constant-currency revenue growth and keeps guidance

Advanced Medical Solutions (AIM: AMS) has posted a very strong first half. Revenue jumped to £110.8 million, up 63% reported and 66% at constant currency, powered by the 2024 purchase of Peters Surgical and good organic momentum. Management reiterated full-year 2025 revenue and EBITDA expectations and lifted the interim dividend by 10%.

The mix is changing. Surgical is now the clear engine, while Woundcare has stabilised after restructuring. Margins dipped as expected with the addition of Peters (a lower-margin business for now) and the reduced Organogenesis royalty, but cash generation was robust and net debt fell versus year-end.

Key numbers (H1 2025)	H1 2025	H1 2024
Total revenue	£110.8 million	£68.0 million
Surgical revenue	£87.9 million	£48.4 million
Advanced Woundcare revenue	£22.9 million	£19.5 million
Adjusted EBITDA (and margin)	£24.4 million (22.0%)	£17.2 million (25.3%)
Adjusted PBT (and margin)	£16.4 million (14.8%)	£14.8 million (21.8%)
Reported PBT	£8.5 million	£5.7 million
Diluted EPS (reported)	2.84p	1.92p
Adjusted diluted EPS	5.67p	5.21p
Net cash inflow from operations	£15.1 million	£7.0 million
Net (debt)/cash	£(50.1) million	£55.6 million
Interim dividend	0.85p per share	0.77p per share

What drove the top line: a bigger Surgical engine and Peters integration

Surgical revenue rose 81% to £87.9 million, with Peters contributing £34.3 million in the period. Excluding Peters, Group revenue grew 13% (14% at constant currency), showing the legacy AMS business is far from standing still.

Advanced Closure: LiquiBand keeps winning in the US and abroad

Global LiquiBand revenue increased 12% to £24.5 million (15% constant currency). The US was the standout, up 14% reported and 18% constant currency to £15.7 million after AMS reset distribution relationships in 2023. Rest of World climbed 10% reported and 11% constant currency to £8.8 million, helped by early cross-selling through Peters’ cardiovascular channel where LiquiBand XL fits neatly.

Suture, Clips and VTO: scale from Peters, supply issues easing

Revenue surged 275% to £38.8 million as Peters beds in. The legacy portfolio was held back by earlier supply constraints, some US tariffs and order phasing, but management says backorders are being reduced and combined sales teams (Peters + RESORBA) should accelerate growth from H2 2025. A US push in sutures is planned, though one cardiovascular family faces additional biocompatibility testing into FY27.

Biosurgical Devices: collagen shines, Syntacoll helps

Biosurgical products grew 37% to £13.0 million (40% constant currency), driven by better manufacturing yields and the contribution from Syntacoll. Antibiotic-eluting collagens are performing well. AMS sees significant US opportunity for collagen and bone substitutes, with first US collagen approval and EU/US approvals for Freeze-Dried Bone Substitute targeted by end-2026, followed by drug-eluting variants thereafter.

Internal Fixation and Sealants: lapping tough launch comps; clinical momentum building

This category dipped 6% to £3.6 million as H1 2024 benefited from large US launch orders unlikely to repeat. Under the hood, LIQUIFIX is gaining traction with three major US GPO contracts in place and steady end-market sales via TelaBio as launch inventories are drawn down. SEAL-G – AMS’s novel internal biological sealant – has encouraging clinical signals (e.g. reduced severity of leakage in pancreatic surgery); more data is expected by end-2025 and into 2026, alongside development of a next-generation device.

Other Distributed Products: boosted by Peters

Revenue rose 163% to £8.0 million, largely reflecting the Peters portfolio.

Woundcare: restructuring complete and growth restored

Woundcare revenue increased 17% to £22.9 million (18% constant currency), a strong recovery from last year’s decline. Infection and Exudate Management jumped 26% to £21.6 million as order phasing normalised and long-running development projects started to contribute; new OEM contracts helped too. Other Woundcare fell 46% to £1.3 million due to the known decline in Organogenesis royalty income.

Management finished the Woundcare restructuring at the end of Q1 2025 and remains confident in sustaining double-digit operating margins from Q2 onwards. Early signs in H1 back that up, with improved growth and a mix shift towards higher-margin products.

Margins, cash and balance sheet: the moving pieces

Gross margin edged down to 53.5% (from 54.3%), reflecting the lower-margin Peters mix, the lower Organogenesis royalty and Woundcare’s volume recovery. Adjusted EBITDA margin was 22.0% (25.3% last year). This was well flagged and should rebuild as synergies land.

Cash generation was a bright spot. Net cash from operating activities more than doubled to £15.1 million. Net debt reduced to £50.1 million from £55.8 million at year-end, even with inventory rising £6.8 million to support growth and clear backorders. The interest margin on bank facilities dropped from 1.75% to 1.5% as leverage improved. AMS continues to target approximately 1x EBITDA leverage by year-end 2025, with faster deleveraging after that.

Tariffs are a headwind but manageable. AMS estimates an annual cost between £1 million and £2 million (roughly 2% – 4% of EBITDA). Ordering patterns have normalised at current rates, and the Group is actively managing exposure via partner contracts and supply chain optimisation.

The interim dividend is 0.85p per share, up 10%. Payment is due on 24 October 2025 to shareholders on the register at close of business on 26 September 2025.

Integration and pipeline: why this story could compound

Peters integration is progressing. AMS has planned operational synergies of about £10 million per year and is now executing, targeting completion before end-2027. Commercial synergies are already visible, with incremental revenue expected to be in the region of £5 million to £10 million within five years. An earn-out of £0.7 million was paid in H1 2025; no further earn-out payments are expected.

The regulatory pipeline is stacked and near-term slanted. Highlights include:

• LiquiBand and collagen launches in India in 2025.
• First topical adhesive approval and launch in China anticipated in 2026 (CFDA filing targeted by year-end 2025).
• RESORBA collagen dental cone approval in the USA in 2026.
• Peters Surgical suture launches in the USA during 2026-2027.
• EU/US approvals for Freeze-Dried Bone Substitute in 2026-2027.
• IFABOND EU line extensions and SEAL-G second-generation device in 2027.

In short, the combination of scale, cross-selling and a busy regulatory slate could support sustained growth and margin expansion beyond 2025.

My read for investors: the good, the less good, and why it matters

Positives

• Top-line beat stick: revenue up 63% reported, 66% constant currency; legacy AMS still grew 13% excluding Peters.
• Surgical momentum: LiquiBand up 12% globally; Biosurgical up 37%; sutures scaled with Peters.
• Cash engine improving: operating cash inflow £15.1 million and net debt down to £50.1 million.
• Synergies on track: £10 million annual operational benefits planned by 2027, plus commercial upside already emerging.
• Guidance held and dividend up 10% – confidence signal.

Watch-outs

• Margins diluted for now: group gross margin 53.5% and adjusted EBITDA margin 22.0% due to mix and lower royalties.
• US tariffs are a continuing drag of £1 million to £2 million per year.
• Internal Fixation & Sealants revenue declined on tough comps; broader adoption depends on repeat orders and clinical data.
• Some suture approvals in the US face extended testing into FY27.
• Integration costs will continue through 2027 and inventory is elevated to support growth.

What to track into H2 2025

• Execution on revenue synergies in cardiovascular channels (e.g. LiquiBand XL, GENTA-Coll).
• US repeat order flow for LIQUIFIX and additional GPO traction.
• SEAL-G clinical data read-throughs and early revenue build.
• Woundcare operating margin delivery post-restructure.
• Inventory normalisation and further deleveraging toward ~1x EBITDA by year-end.
• China topical adhesive filing and broader US regulatory progress for Biosurgical and Sutures.

Overall, this is a high-quality growth print from AMS. The Peters integration is doing what it said on the tin, the core business is growing well, and cash conversion is trending the right way. If management lands the synergies and regulatory milestones, the ingredients are here for margin rebuild and faster compounding from 2026 onwards.