Unaudited Preliminary Results

Advanced Medical Solutions Grp PLC

18 March 2026

 

18 March 2026

Advanced Medical Solutions Group plc

("AMS" or the "Group" or the "Company")

Unaudited preliminary results for the year ended 31 December 2025

~ Record full year sales and adjusted EBITDA with strong organic growth ~  

~ Successful integration of recent acquisitions ~

Winsford, UK: Advanced Medical Solutions Group plc (AIM: AMS), a world-leading specialist in tissue-healing technologies, today announces its unaudited preliminary results for the year ended 31 December 2025.

 

Financial Summary:

	2025	2024		Reported change¹	Change at constant currency2
Surgical Business Unit (£ million) Advanced Woundcare Business Unit (£ million) Total Group revenue (£ million)	183.5 45.4 228.9	135.8 41.7 177.5		35% 9% +29%	36% 9% +29%
Adjusted Measures
Adjusted3 EBITDA (£ million)	49.9	40.2		+24%
Adjusted3 EBITDA margin	21.8%	22.6%		-0.8pp
Adjusted3 profit before tax (£ million)	33.9	29.4		+15%
Adjusted3 profit before tax margin	14.8%	16.6%		-1.8pp
Adjusted4 diluted earnings per share (p)	11.74	10.45		+12%
Reported Measures
Profit before tax (£ million)	17.8	9.8		+81%
Profit before tax margin	7.8%	5.5%		+2.3pp
Diluted earnings per share (p)	4.52	3.25		+39%
Net operating cash flow (£ million)	32.6	19.5		+67%
Net (debt)/cash5 (£ million)	(50.5)	(55.8)		-10%
Proposed full year dividend per share (p)	2.86	2.60		+10%

Commenting on the results, Chris Meredith, Chief Executive Officer of AMS, said: "I am proud to report that we have delivered on our key strategic objectives for 2025. The strength of our expanded portfolio, our growing global presence, and the commercial synergies across the Group, have all contributed to another year of robust growth. This strong performance has enabled us to increase our dividend for the year by 10%.

"Our robust and advancing R&D pipeline reinforces our confidence in carrying this momentum forward. The integration of operations continues to progress well, and we remain firmly on track to fully consolidate the business and improve operational efficiency next year. As we look ahead, we are strongly positioned to continue building on this foundation and accelerate our long term growth."  

Operational and Financial Highlights

·    Group revenue increased by 29% to £228.9 million (2024: £177.5 million), driven by the full year impact of the July 2024 acquisition of Peters Surgical and continued growth across key product categories. Overall performance was in line with management expectations and included a strong performance from the existing AMS business (excluding Peters) that delivered 10% constant currency growth, with a good performance from Adhesives and Biosurgical categories and a good recovery in the Woundcare business.⁶

o Surgical Business Unit revenues increased to £183.5 million (2024: £135.8 million), an increase of 36% at constant currency.

-     Global LiquiBand^® revenues increased by 10% to £47.8 million (2024: £43.4 million) and 12% at constant currency, with good performances in the US and the Rest of the World, where commercial synergies continue to support growth in areas such as specialist cardiovascular markets. 

-     Biosurgical devices grew by 23% to £27.8 million (2024: £22.6 million) and 22% at constant currency, driven by increased demand for antibiotic-loaded collagen and growth in dental devices.

-     Suture, Clips and VTO (Vascular Temporary Occlusion) revenues grew by 64% at constant and reported currency to £82.7 million (2024: £50.4 million).

o Advanced Woundcare Business Unit revenues increased by 9% to £45.5 million (2024: £41.8 million), driven by strong growth in Customer-branded and Bulk materials and the increasing traction of partners' products in the market.

·      Following the acquisitions of Peters Surgical and Syntacoll, operational synergies are on track and commercial synergies are already contributing to growth. LiquiBand XL^® started to gain traction among specialist cardiovascular surgeons for sternotomy closure, IFABOND^® transitioned to direct sales in the UK and LiquiBandFix8^® transitioned to direct sales in France. Other AMS legacy products started to access new direct sales territories in Austria, Poland, Czech and India.

·      Adjusted EBITDA increased by 24% to £49.9 million (2024: £40.2 million) and reported profit before tax increased by 81% to £17.8 million (2024: £9.8 million) as a result of organic growth from the existing AMS business and the inclusion of the first full year of Peters' results.

·      Net debt on 31 December 2025 was reduced to £50.5 million (2024: £55.8 million). Significant investment in the Group's transformation project, including a number of exceptional items largely relating to the restructuring of our manufacturing function, together with capital expenditure and inventory increases, partly offset the pace of deleveraging in the year.

·      Reflecting management's ongoing confidence in the Group's outlook, the Board proposes an increased final dividend of 2.01p per share (2024: 1.83p), bringing the total proposed dividend to 2.86p per share (2024: 2.60p), up 10%.

Summary & Outlook

·      AMS delivered record 2025 results and enters 2026 with strong commercial momentum, a clearer operating platform and a robust pipeline that supports multi‑year growth.

·      AMS reported record Group revenue of £228.9m, up 29%, with strong organic growth across core categories and the first full-year contribution from Peters Surgical. Surgical remained the key driver of performance, growing 36% at constant currency, while Woundcare returned to growth following its restructuring. Adjusted EBITDA increased 24% to £49.9m, and net debt reduced to £50.5m.

·      Integration of Peters Surgical continues to progress well, with commercial synergies already contributing and operational synergies on track for delivery from 2027. The Group's innovation pipeline remains a major strategic strength, with multiple product approvals expected from 2026 onwards across adhesives, sutures, collagen technologies and bone substitutes.

·      The Board expects continued strong growth in Surgical and modest growth in Woundcare as long‑term supply agreements take effect. Strong cash generation and disciplined capital allocation are expected to support further deleveraging while maintaining investment in innovation and manufacturing optimisation.

·      In respect to the current Middle East conflict, AMS has a limited footprint in the region and minimal exposure. Sales and margin in the region is not significant, and currently seems stable.

·      The Board is confident of delivering full year 2026 revenue and EBITDA in line with current market expectations⁷ and believes that AMS is well positioned to drive sustained growth and long-term value creation.

Notes

1.     Reported change is calculated using amounts rounded to the nearest £'000

2.     Constant currency removes the effect of currency movements by re-translating the current year's performance at the previous year's exchange rates

3.     Reconciled in the Financial Review / note 18. Adjusted EBITDA excludes the impact of exceptional items, depreciation, amortisation, finance costs and taxation. Adjusted profit before tax excludes the impact of exceptional items, amortisation of acquired intangibles and movement in long-term acquisition liabilities. Exceptional items are detailed in the Financial Review.

4.     Reconciled in note 4 of the financial information. Adjusted diluted earnings per share exclude the impact of exceptional items, amortisation of acquired intangibles, movement in long-term acquisition liabilities and the tax impact of adjusted items.

5.     Reconciled in note 9 of the financial information. Net debt is calculated as cash and cash equivalents less borrowings

6.     Organic AMS Group revenues excluding Peters Surgical are reconciled in note 18.

7.     AMS believes that current consensus market expectations for the year ended 31 December 2026 is revenue of £245.3m and Adjusted EBITDA of £55.2 m

- End -

For further information, please visit www.admedsol.com or contact:

Advanced Medical Solutions Group plc	Tel: [phone]
Chris Meredith, Chief Executive Officer Eddie Johnson, Chief Financial Officer Michael King, Investor Relations
Optimum Strategic Communications	Tel: [phone]
Mary Clark / Nick Bastin / Isabelle Abdou	[e-mail]
Investec Bank PLC (NOMAD & Joint Broker)	Tel: [phone]
Gary Clarence / David Anderson
Berenberg (Joint Broker)	Tel: [phone]
Toby Flaux / Detlir Elezi

About Advanced Medical Solutions Group plc - see www.admedsol.com

AMS is an innovative tissue healing medical device company delivering high-performing solutions that match or surpass market leaders, clinically, technically, and commercially. From adhesives and sealants, to biosurgical devices and sutures, AMS's products offer superior usability, quality and design. AMS's strength lies in combining advanced material science with applicator device design and development, in collaboration with surgeons and Key Opinion Leaders, creating differentiated devices that improve patient outcomes without compromising quality or affordability.

AMS's scalable, resilient business model is built on disciplined execution, portfolio focus, and capital efficiency. Its diversified product and geographic mix mitigates volatility, ensuring consistent performance even when individual segments fluctuate. Following its acquisition of Peters Surgical, AMS is unlocking operational and commercial synergies, accelerating its US and international expansion, and increasing the percentage of sales made through its direct sales teams. With surgical products driving the lion's share of group revenues and a clear top-line trajectory, AMS is positioned for scalable growth, and long-term value creation.

Chief Executive's Review

Surgical Business Unit

Revenue increased to £183.5 million (2024: £135.8 million) during the year, an increase of 36% on a constant currency and 35% on a reported basis.

Surgical Business Unit	2025 £ million	2024 £ million	Reported Growth	Change at constant currency
Advanced Closure	47.8	43.4	10%	12%
Internal Fixation and Sealants	8.3	8.0	4%	3%
Sutures, Clips and VTO	82.7	50.4	64%	64%
Biosurgical Devices	27.8	22.6	23%	22%
Other Distributed	16.9	11.4	48%	48%
Total	183.5	135.8	35%	36%

Advanced Closure

Advanced Closure	2025 £ million	2024 £ million	Reported Growth	Change at constant currency
Americas	29.4	26.9	10%	13%
Rest of World	18.4	16.5	11%	11%
Total	47.8	43.4	10%	12%

LiquiBand^® revenues increased by 12% in the year to £47.8 million (2024: £43.4 million) on a constant currency basis and 10% on a reported currency basis, driven by continued global growth.

LiquiBand^® continued to perform strongly in the United States, growing by 10% to £29.4 million (2024: £26.9 million) and with constant currency growth of 13%. This reflects the ongoing successful commercial execution by our channel partners and their ongoing focus on these key strategic products. LiquiBand XL^®, the long‑wound closure device, further enhances AMS's competitive position in the US, and our increasing pipeline of new evaluations and market wins gives us confidence that we will continue to take share in this large wound closure market segment. As previously guided, the first half of 2025 benefited from additional partner orders linked to changes in their distribution footprint and hence represents a strong comparator for H1 2026.

Outside the US, revenues were up 11% at reported and constant currency to £18.4 million (2024: £16.5 million). In the APAC region, market share gains were achieved as LiquiBand^® continued to displace the market leader across the region and was launched into India via the local sales force that came with the Peters Surgical acquisition. We also launched LiquiBand^® XL into Australia and South Korea. In Europe, commercial synergies supported overall LiquiBand^® growth, including notable success in Peters' legacy network of cardiac surgeons helping to build LiquiBand XL^® momentum in sternotomy closures.

Internal Fixation and Sealants

As previously reported, partner sell-down of the launch inventory of US LiquiFix™ impacted recorded revenue for the year. However, shipments did significantly increase in Q4 2025 with multiple months of record end-user sales revenue. The establishment of AMS's dedicated Hernia Clinical team, with partner TelaBio, has already contributed to stronger end sales performance. Activity in Q4, supported by approvals from three of the largest Group Purchasing Organisations, demonstrated accelerating adoption, new user onboarding and deeper market penetration. IFABOND^® line extensions remain on track for an initial European launch in 2027.

Clinical adoption of the SEAL‑G^® device continues to progress, with early users gaining confidence and experience in this innovative intestinal sealant technology. Initial revenues, while starting from a modest base, are beginning to show very positive momentum.

Encouraging clinical evidence continues to emerge from multiple sources, including:

·      A retrospective follow-up of the 2021, 167 patient, initial clinical study demonstrated improved efficacy with the SEAL-G^® treatment group (n=79) with a leakage rate of 1.3% compared with 5.7% in the control group (n=88).

·      Certain KOLs are no longer routinely resorting to stoma formation in bowel surgery, given their increasing confidence in the patient and economic benefit arising from their use of SEAL-G^®.

·      Encouraging early results arising from the ongoing pancreatic clinical study, currently at 45 patients.

Building on this positive clinical momentum, AMS is in the late stages of a grant approval process for a large, pivotal, randomised controlled trial to evaluate the efficacy of SEAL-G^® in preventing or reducing anastomotic leaks in patients undergoing colorectal surgery.  Such a study would be critical in establishing the technology as a future standard of care in gastrointestinal surgical resection.

Good progress has been made in the development of the second-generation SEAL-G^® device, which has reached an important milestone with engineering efforts successfully delivering a simplified design that no longer requires an external gas supply or regulator. As this optimisation phase nears completion, AMS remains confident that this new version is on track for a European filing in 2027. As at 31 December 2025, the amortised carrying value of the capitalised development costs was £5.0 million.

Sutures, Clips and VTO

Revenues grew strongly during the year, increasing by 64% at constant and reported currency to £82.7 million (2024: £50.4 million). Proforma revenues, which consider performance on the basis of a full-year of revenue from Peters Surgical in the prior year, were flat during the year, as continued end-user sales growth was offset by the normalisation of distributor inventory levels following the acquisition of Peters Surgical, which is not expected to fully unwind until mid-2026.

Significant advances were made in the project to harmonise RESORBA and Peters' suture operations during the year through supply chain simplification and product portfolio optimisation. This will improve the efficiency of the business and strengthen the foundation for long‑term growth. Regulatory, Quality, and R&D teams have been successfully merged into unified functional structures across all manufacturing sites, further enhancing synergy and alignment.

End-user sales growth was supported by successful cross‑portfolio launches, with cross-selling between marketing teams. B2B performance during the year was impacted by some partners reducing their inventory from the unusually high levels held at the time of the Peters acquisition. Inventory levels are expected to have normalised by the middle of 2026.

In the US, the majority of our suture product ranges have now secured regulatory clearance, and commercial momentum is beginning to build. However, the approval process for a specialised portfolio of cardiovascular sutures is still ongoing, with authorisation now expected in 2027. AMS's sutures positioning is anchored in our specialist cardiovascular range and our ability to offer a high-quality alternative at competitive price points. Early US commercial momentum in approved product lines provides a platform for accelerated growth as the full range gains clearance.

Biosurgical Devices

Revenues increased by 23% to £27.8 million at reported currency (2024: £22.6 million) and 22% at constant currency.  

This strong performance was supported by increasing demand for Resorba^® antibiotic collagens and new product approvals across APAC and LATAM. The smooth transition of Syntacoll supply contracts also contributed positively. Enhanced manufacturing efficiency further supported this momentum, with Syntacoll's specialist expertise significantly improving operational capability and supporting the business's ability to meet increased demand.

The Group continues to make strong progress in preparing its collagen portfolio for entry into the US market, which represents a significant long‑term growth opportunity. The Company's first US collagen approval, for a dental cone, was secured in 2025, with a further approval expected in 2026 that will drive commercial revenues. Additional US submissions for a broader range of non‑antibiotic, surgical collagen products remain on track, with approvals anticipated from 2027 onwards.

The next generation Freeze Dried Bone Substitute (FDBS) also represents a substantial opportunity for the Biosurgical business in the US and Europe. Its highly differentiated cohesiveness, mouldability and capacity to mix with various biological fluids reinforce its position to deliver meaningful improvements in bone regeneration. Initial evaluation studies are underway, and EU and US regulatory approval of the non-drug loaded version of this technology is anticipated in 2027.  

Other Distributed Products      

Revenues increased to £16.9 million during the year (2024: £11.4 million), growth of 48% at reported and constant currency, driven by the annualisation of Peters Surgical during the year.  

Innovation

Product innovation remains a key focus for the Group, with a number of key product approvals anticipated in 2026 and 2027 as summarised in the table below.

Product approval	Region	Category	Estimated Approval
Resorba® dental collagen	USA	Biosurgical Devices	2026
Resorba®, non-antibiotic surgical collagens	USA	Biosurgical	2027+
Topical Adhesives	China	Advanced Closure	2026-2027
Peters Surgical sutures range completion	USA	Sutures	2027
Freeze Dried Bone substitute (FDBS)	EU and USA	Biosurgical Devices	H1 2027
IFABOND® line extensions	EU	Advanced Closure	2027
SEAL-G® approval of second-generation device	EU	Advanced Closure	H1 2028
Antibiotic FDBS substitute	EU and USA	Biosurgical Devices	2030
Antibiotic collagen	USA	Biosurgical Devices	2030

Integration and Synergies

Following the successful integration of key function teams from AMS and Peters Surgical in 2024, the enlarged Group is working well under its unified structure. The acquisition of Peters Surgical on 1 July 2024 contributed revenue of £74 million to the AMS Group during the year.

The programme to deliver commercial synergies is progressing well as established direct sales teams benefit from larger product portfolios, driving the potential to deliver incremental annual revenues towards the upper end of our target range of £5 million to £10 million from mid-2029. Building on some initial successes with increased direct selling, we are evaluating opportunities for further transitions in certain key markets, which could include some one-off costs.

The integration programme to deliver £10 million of annual operational synergies from 2027 is progressing to plan. Potential site closures were announced internally in January 2026, with four sites in Germany and one site in Czechia expected to close in March 2027. The financial impact of site closures is subject to variations and is being assessed on an ongoing basis.

Woundcare Business Unit

Woundcare Business Unit	2025 £ million	2024 £ million	Reported Growth	Change at constant currency
Infection and Exudate Management	42.1	36.9	14%	15%
Other Woundcare	3.3	4.8	-31%	-30%
Total	45.4	41.7	9%	9%

Revenues increased by 9% to £45.4 million (2024: £41.7 million) on a reported and constant currency basis as OEM dressings and bulk materials projects delivered growth.

The restructuring of the Woundcare business in Q1 2025 successfully achieved the targeted cost savings, while the new focus on higher-margin business has strengthened the overall mix and profitability. The successful negotiation of a number of major, long-term supply agreements has contributed significantly to annual growth, with other discussions nearing completion. 

Infection and Exudate Management revenue increased by 14% at reported currency and 15% at constant currency to £42.1 million (2024: £36.9 million), as we implemented our strategy to focus on more profitable product categories.

Other Woundcare declined to £3.3 million (2024: £4.8 million) due to the declining Organogenesis royalty.

Environmental, Social and Governance

All sustainability activities have been optimised and managed by a single team across AMS. Having rebased our carbon footprint, in 2025 we began assessing projects to accelerate our Pathway to Net Zero, which has a commitment date of 2045, and preparing to apply for the Science Based Target Initiative (SBTi) in 2026. We are also working through the Corporate Sustainability Reporting Directive (CSRD) requirements with a consultant to ensure our KPI's and other ESG metrics are focused on areas that are material to the business.  

Our ESG progress is further validated by EcoVadis (Bronze medal), a MSCI rating increase (AAA), successful SEDEX audits at key UK sites, and our corporate membership of the UN Global Compact. We are rolling out a new Code of Conduct for the Group, which will support strong governance across all jurisdictions in which we operate, as well as increased engagement in our local communities.

Post period event - new corporate brand

As part of the Group's evolution following the acquisition of Peters Surgical, AMS has introduced a refreshed visual identity, including an updated logo and design, reflecting the scale and ambition of the enlarged business. This was launched on 17^th March 2026.

Stakeholders

On behalf of the Board, I would like to thank the Group's staff, partners and other stakeholders, without whose help and commitment the achievements of this year, and the years prior, would not have been possible.

Chris Meredith

Chief Executive Officer

About our Business Units

Surgical

The Surgical Business Unit includes tissue adhesives, sutures, biosurgical devices and internal fixation devices marketed under the AMS brands LiquiBand^®, RESORBA^®, LiquiBandFix8^®, LIQUIFIX^TM, Peters Surgical, IFABOND^® and Vitalitec. 

Advanced Closure

LiquiBand^® is a range of topical skin adhesives, incorporating medical grade cyanoacrylate in combination with purpose-built applicators. These products are used to close and protect a broad variety of surgical and traumatic wounds.

Internal Fixation and Sealants

AMS's internal fixation portfolio has been strengthened with the addition of IFABOND^® to the existing LIQUIFIX^TM / LiquiBandFix8^® range.

LIQUIFIX^TM / LiquiBandFix8^® secures meshes inside the body with accurately delivered drops of fast-setting butyl cyanoacrylate adhesive, whereas IFABOND^® uses hexyl cyanoacrylate that is more flexible and resorbable and has European approvals not only for mesh fixation, but also for tissue fixation, prolapse repair and bariatric surgery.

Suture, Clips and VTO

The RESORBA^® portfolio of general, dental and ophthalmic sutures is strengthened and complemented by the sutures, clips and Vascular Temporary Occlusion ('VTO') devices from the Peters acquisition that also bring strong Cardio-Vascular specialisation and brand recognition.

Biosurgical devices

The Biosurgical Devices category comprises antibiotic-loaded collagen sponges, collagen membranes and cones, oxidised cellulose, synthetic bone substitutes and bio-absorbable screws.

Other Distributed Products

The Other Distributed products category comprises products distributed through AFS Medical in Austria and Peters Surgical in France, including minimally invasive access ports and laparoscopic instruments. This category excludes sales of LiquiBandFix8^® which are recorded within the Internal Fixation and Sealants category.

Woundcare

The Woundcare Business Unit is comprised of the Group's multi-product portfolio of advanced woundcare dressings sold under our partners' brands and the ActivHeal^® label, plus a portfolio of specialist medical bulk materials and multi-layer woundcare products.

Financial Review

Summary

IFRS reporting

To provide the clearest possible insight into our performance, the Group uses alternative performance measures. These measures are not defined in International Financial Reporting Standards (IFRS) and  are, therefore, considered to be non-GAAP (Generally Accepted Accounting Principles) measures. Accordingly, the relevant IFRS measures are also presented where appropriate. AMS uses such measures consistently at the half-year and full-year and reconciles them as appropriate. The measures used in this statement include constant currency revenue growth, adjusted operating profit, adjusted profit before tax, adjusted EBITDA and adjusted earnings per share, allowing the impact of exchange rate volatility, exceptional items, unwind of inventory fair value accounting, amortisation, and the movement in long-term acquisition liabilities to be separately identified. Net debt/cash are an additional non-GAAP measure used to provide a useful overview of the Group's financial position.

Overview

Revenue increased by 29% at constant and reported currency to £228.9 million (2024: £177.5 million).

Adjusted gross margin was slightly higher at 53.4% against prior year adjusted gross margin of 53.1%, driven by increased volumes and operational improvements. This margin growth is despite the dilutive impact of acquisitions, which have a slightly lower gross margin than the Group's average, as well as the reduced Organogenesis royalty. Adjusted gross margin in the prior year excludes the impact of the IFRS3 fair value accounting following the acquisition of Peters Surgical which increased inventory valuation and resulted in higher cost of goods sold in the second half of the year and was treated as an adjusted item (2024 reported gross margin: 52.2%).

Administration expenses before exceptional items increased to £90.5 million (2024: £69.0 million) due to the addition of Peters Surgical which incurred approximately £33 million of administration expenses (2024: £16 million). Included within administration expenses is £10.3 million (2024: £7.8 million) of amortisation of acquired intangible assets which grew due to the annualisation of the acquisition of Peters Surgical in July 2024.

The remaining increase in administration expenses in the year relates to increased distribution costs following the implementation of tariffs in the US, increased sales and marketing activity and expenditure in Research, Development, Regulatory and Clinical as the Group continues to invest in growth opportunities and increased amortisation of development costs which is increasing as the Group achieves additional levels of MDR certification.

Exceptional items
			(Unaudited)		Audited
			2025		2024
			£'000		£'000
Integration-related			5,145		1,927
Restructuring			660		-
Peters acquisition-related			-		5,090
Risk Management			-		2,017
Syntacoll			-		1,890
Total exceptional items			5,805		10,924

Exceptional items of £5.8 million were incurred in the year in relation to the Group's transformation projects following the prior year acquisition of Peters Surgical and Syntacoll. These projects have been deemed exceptional in nature and have resulted in significant costs being incurred whilst the related benefits will only be yielded in future periods and as a result the Group's performance has been summarised including and excluding these costs to give additional information to the users of the financial statements. Integration-related costs predominately relate to consultancy services to lead the integration project as well as the costs of an internal dedicated integration team and other relevant integration activities. Restructuring costs relate to costs incurred reorganising certain operations and are primarily employee related.

In the prior year, £10.9 million of exceptional costs were incurred. Syntacoll exceptional costs related to legal fees, staff termination costs, an initial idle period when no manufacturing was undertaken, and some integration related costs. Risk management exceptional costs related to foreign currency risk management costs to protect against adverse movements in the Euro rate whilst the Group awaited FDI approval to complete the acquisition of Peters Surgical. Risk and warranty insurance was also obtained. Acquisition related costs included costs for advisory services, legal, financial, tax, HR and operational due diligence services, as well as legal services relating to the share purchase agreement and related banking facility required as part of the acquisition funding.

The Group incurred £14.5 million of gross R&D spend in the year (2024: £12.9 million), representing 6.3% of Revenue (2024: 7.3%), maintaining investment in innovation and in meeting the increasing regulatory standards. As shown in the table below, part of this cost is capitalised and amortised over the following 5 to 10 years, with the amount capitalised being consistent as lower MDR capitalised spend is offset by increased capitalisation relating to the development of FDBS.

R&D, Regulatory and Clinical expenditure
	2025	2024
	£'000	£'000
Total investment in Research and Development, Regulatory and Clinical	14,480	12,922
Of which:
Charged to the profit and loss account	10,349	8,807
Capitalised, to be amortised over 5-10 years	4,131	4,115

Other operating income reduced to £0.7 million (2024: £0.9 million) and relates to R&D claims in the UK and Ireland.

In the year, finance income declined to £0.2 million (2024: £2.2 million), as the majority of funds held on deposit in the first half of 2024 were used to fund the acquisition of Peters Surgical. Finance costs increased to £5.1 million (2024: £3.6 million) as a result of the full year impact of the Group's borrowing facility following the prior year acquisition of Peters Surgical.

A finance cost of £nil was recorded in relation to movements in long-term acquisition liabilities (2024: credit of £0.9 million recorded in finance income).

Adjusted EBITDA which consists of earnings before finance costs, tax, depreciation and amortisation as well as excluding exceptional items and the unwind of inventory fair value accounting increased by 24% to £49.9 million (2024: £40.2 million) reflecting the growing profitability and operating performance of the Group.

Reconciliation of profit before tax to adjusted EBITDA
			(Unaudited)		Audited
			2025		2024
			£'000		£'000
Profit before tax			17,783		9,823
Finance income and costs			4,879		1,396
Amortisation			13,361		9,849
Depreciation			8,036		6,453
Exceptional items			5,805		10,924
Unwind of inventory fair value accounting			-		1,726
Adjusted EBITDA			49,864		40,171

Adjusted profit before tax which excludes amortisation of acquired intangibles, exceptional items, the unwinding of inventory fair value accounting and movements in long term liabilities recognised on acquisition, increased by 15% to £33.9 million (2024: £29.4 million) whilst the adjusted PBT margin decreased by 170 bps to 14.8% (2024: 16.5%) as a result of the dilutive impact of the Peters Surgical acquisition and associated borrowing costs.

Reported profit before tax increased by 81% to £17.8 million (2024: £9.8 million) as a result of significant acquisition related exceptional items in the prior year, as well as the full-year impact of the Peters Surgical acquisition.  

Reconciliation of profit before tax to adjusted profit before tax
			(Unaudited)		Audited
			2025		2024
			£'000		£'000
Profit before tax			17,783		9,823
Amortisation of acquired intangibles			10,313		7,804
Exceptional items			5,805		10,924
Movement in long-term acquisition liabilities			42		(868)
Unwind of inventory fair value accounting			-		1,726
Adjusted profit before tax			33,943		29,409

The Group's adjusted effective income tax rate as reconciled in note 18, reflecting the blended tax rates in the countries where we operate and including UK patent box relief, increased to 24% (2024: 22%) due to the impact of certain loss-making entities within the Peters Surgical group. Reported income tax increased to 43% (2024: 27%) due to the movement in Deferred tax on acquired intangible assets.

Adjusted diluted earnings per share increased by 12% to 11.74p (2024: 10.45p) and diluted earnings per share increased by 39% to 4.52p (2024: 3.25p), reflecting the Group's increased earnings.

Reflecting its confidence in the Group's prospects, the Board is proposing a final dividend of 2.01p per share (2024 final dividend: 1.83p), to be paid on 26 June 2026 to shareholders on the register at the close of business on 29 May 2026. This follows the interim dividend of 0.85p per share (2024 interim dividend: 0.77p) paid on 24 October 2025 and would, if approved, make a total dividend for the year of 2.86p per share (2023: 2.60p) an increase of 10%.

Operating result by business segment
	Surgical	Woundcare
Year ended 31 December 2025	£'000	£'000
Revenue	183,451	45,485
Segment operating profit	26,530	2,912
Amortisation of acquired intangibles	9,373	940
Adjusted segment operating profit6	35,903	3,852
Adjusted operating margin6	19.6%	8.5%
Adjusted EBITDA	44,671	6,168
Adjusted EBITDA margin7	24.4%	13.6%
Year ended 31 December 2024
Revenue	135,638	41,753
Segment operating profit	23,268	1,664
Amortisation of acquired intangibles	6,864	940
Adjusted segment operating profit6	30,132	2,604
Adjusted operating margin6	22.2%	6.2%
Adjusted EBITDA	36,466	4,768
Adjusted EBITDA margin7	26.9%	11.4%

^{Note 6: Adjusted for amortisation of acquired intangible assets and excludes exceptional items and the unwind of inventory fair value accounting.}

^{Note 7 Reconciled in note 18 of the financial information. Excludes the impact of exceptional items, depreciation, amortisation, interest and taxation.} 

^{The above table is reconciled to statutory information in note 5 of the financial information.}

Surgical

Surgical revenues increased by 35% to £183.5 million (2024: £135.8 million) at reported currency and by 36% at constant currency. Adjusted operating margin decreased by 260 bps to 19.6% (2024: 22.2%) due to the dilutive impact of Peters Surgical at an operating margin level. The annualisation of the low margin Syntacoll business is also impacting adjusted operating margin.

Woundcare

Woundcare revenues increased by 9% to £45.5 million (2024: £41.8 million) at reported currency and constant currency. Adjusted operating margin increased by 230 bps to 8.5% (2024: 6.2%) due to the factors noted in the Chief Executive's review.

US Tariffs

The Group continues to monitor US tariff rates. Under current tariff conditions, the previously estimated impact of US tariffs of £1m - £2m is not expected to significantly change.

Currency

The Group hedges significant currency transaction exposure by using forward contracts and aims to hedge approximately 80% of its estimated transactional exposure for the next 18 months. In the financial year, approximately one half of sales were invoiced in Euros and approximately one quarter were invoiced in US Dollars. Following the acquisition of Peters Surgical, the Group also has an increased manufacturing presence in Thailand increasing exposure to Thai Baht. 

The Group estimates that a 10% movement in the £:US$ or £:€ exchange rate will impact Sterling revenues by approximately 2.5% and 4.8% respectively and, in the absence of any hedging, this would have an impact on the Group operating margin of 1.6 and 0.2 percentage points respectively. In the absence of any hedging movements in the pound sterling to Thai Baht exchange rate, a 10% movement in the exchange rate will impact Group operating margin by 0.5 percentage points.

Cash flow

Net cash inflow from operating activities in the year was £32.6 million, an increase on the prior year (2024: £19.5 million) due to increasing operational performance and as a result of the acquisition of Peters Surgical.

Working capital increased during the year. Inventory cover increased to 7.4 months of supply (2024: 6.0 months) which is driven by supply chain planning to manage the transition plan as part of the Group's transformation project. Receivables in the prior year were higher than typical levels and have reduced this year despite increased sales. As a result, Debtor days have decreased to 45 days (2024: 53 days). Creditor days were in line with prior year at 35 days (2024: 35 days).

Net cash used in investing activities in the year was £13.3 million (2024: £67.1 million), a significant decrease on the prior year which included the acquisition of Peters Surgical. The current year investing activity largely relates to capital investment in equipment, R&D and regulatory costs of £12.6 million (2024: £8.7 million) as a result of the full year impact of Peters Surgical and investment in the Group's transformation project.

£1.1 million of cash outflows relating to payment of contingent consideration occurred and relates to the achievement of the final EBITDA milestone for AFS triggering a £0.4 million payment, as well as £0.7 million relating to the Peters Surgical acquisition following partial achievement of the gross margin and Inventory conditions. The US regulatory approvals or tax conditions were not achieved within the required time resulting in £nil fair value being required at 31 December 2025 (2024: £5.5 million).

Cash outflow relating to taxation remained consistent at £5.3 million (2024: £5.1 million).

Net cash outflow from financing activities in the year was £19.0 million (2024: received £5.5 million) as net repayments of borrowings were £5.6 million (2024: net inflow of £17.3 million).

The Group paid the final dividend for the year ended 31 December 2024 of £4.0 million in July 2025 (for the year ending 31 December 2023, £3.6 million in June 2024), and the interim dividend for the six months ended 30 June 2025 of £1.8 million in October 2025 (for the 6 months ended 30 June 2024: £1.6 million in October 2024).

At the end of the year, 31 December 2025, as a result of the above movements, the Group had net debt of £50.5 million (31 December 2024: net debt of £55.8 million). Further reductions in net debt were restricted by exceptional items and investment in integration activities to drive long-term synergies following our transformational acquisition which includes capital and inventory investment in the year.

CONDENSED CONSOLIDATED INCOME STATEMENT
		(Unaudited)				(Audited)
Year ended 31 December		2025				2024
		Before Exceptional items	Exceptional items8	Total		Before Exceptional items	Exceptional items8	Total
	Note	£'000	£'000	£'000		£'000	£'000	£'000
Revenue from continuing operations	5	228,936	-	228,936		177,521	-	177,521
Cost of sales		(106,798)	-	(106,798)		(84,903)	-	(84,903)
Gross profit		122,138	-	122,138		92,618	-	92,618
Distribution costs		(3,847)	-	(3,847)		(2,348)	-	(2,348)
Administration costs		(90,495)	(5,805)	(96,300)		(69,033)	(10,924)	(79,957)
Other income		671	-	671		906	-	906
Operating profit	6	28,467	(5,805)	22,662		22,143	(10,924)	11,219
Finance income		211	-	211		2,161	-	2,161
Finance costs		(5,090)	-	(5,090)		(3,557)	-	(3,557)
Profit before taxation		23,588	(5,805)	17,783		20,747	(10,924)	9,823
Income tax	7	(8,892)	1,204	(7,688)		(4,662)	1,981	(2,681)
Profit for the year		14,696	(4,601)	10,095		16,085	(8,943)	7,142
Profit for the year attributable to equity holders of the parent		14,555	(4,601)	9,954		16,037	(8,943)	7,094
Non-controlling interest		141	-	141		48	-	48
Earnings per share
Basic	4	6.75p	(2.13p)	4.62p		7.48p	(4.17p)	3.31p
Diluted	4	6.62p	(2.09p)	4.52p		7.35p	(4.10p)	3.25p

^{Note 8 Exceptional items are reconciled in the Financial Review.}

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
					(Unaudited)	(Audited)
					2025	2024
					£'000	£'000
Profit for the year					10,095	7,142
Exchange differences on translation of foreign operations					8,028	(6,177)
Gain/(loss) arising on cash flow hedges					1,664	(3,104)
Deferred tax (charge)/credit arising on cash flow hedges					(306)	664
Total other comprehensive income/(loss) for the year					9,386	(8,617)
Total comprehensive income/(loss) for the year					19,481	(1,475)
Total comprehensive income/(loss) for the year attributable to equity holders of the parent					19,340	(1,523)
Total comprehensive income for the year attributable to Non-controlling interest					141	48

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		(Unaudited)	(Audited)
		31 December 2025	31 December 2024
	Note	£'000	£'000
Assets
Non-current assets
Intangible assets		92,731	97,412
Goodwill	11	112,693	116,884
Property, plant and equipment		48,750	45,871
Deferred tax assets		-	1,022
Other receivables		1,219	1,029
Derivative financial assets	10	12	-
		255,405	262,218
Current assets
Inventories	12	70,047	55,259
Trade and other receivables		47,654	52,451
Current tax assets		2,436	1,233
Derivative financial assets	10	1,213	296
Cash and cash equivalents		18,015	17,039
		139,365	126,278
Total assets		394,770	388,496
Liabilities
Current liabilities
Trade and other payables		30,951	33,782
Derivative financial liabilities	10	-	261
Borrowings	9	11,370	5,421
Current tax liabilities		4,293	1,780
Lease liabilities		3,332	3,087
		49,946	44,331
Non-current liabilities
Trade and other payables		1,177	3,873
Derivative financial liabilities	10	-	474
Borrowings	9	57,101	67,428
Provisions	13	3,637	-
Deferred tax liabilities		13,085	20,246
Lease liabilities		9,720	10,628
		84,720	102,649
Total liabilities		134,666	146,980
Net assets		260,104	241,516
Equity
Share capital	14	10,977	10,892
Share premium		37,844	37,525
Other reserve	14	20,686	16,625
Hedging reserve		918	(440)
Translation reserve		3,729	(4,299)
Retained earnings		184,637	180,474
Equity attributable to equity holders of the parent		258,791	240,777
Non-controlling interest	14	1,313	739
Total equity		260,104	241,516

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Share capital	Share premium	Other reserve	Hedging reserve	Translation reserve	Retained earnings	Total Attributable to owners	Non-controlling interest	Total equity
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 1 January 2024 (Audited)	10,865	37,473	13,453	2,000	1,878	178,533	244,202	-	244,202
Consolidated profit for the year to 31 December 2024	-	-	-	-	-	7,142	7,142	-	7,142
Other comprehensive (expense)/income	-	-	-	(2,440)	(6,177)	-	(8,617)	-	(8,617)
Total comprehensive (expense)/income	-	-	-	(2,440)	(6,177)	7,142	(1,475)	-	(1,475)
Share-based payments	-	-	3,086	-	-	-	3,086	-	3,086
Excess Deferred tax on share-based payments	-	-	74	-	-	-	74	-	74
Share options exercised	27	52	12	-	-	-	91	-	91
Changes in non-controlling interest	-	-	-	-	-	-	-	739	739
Dividends paid (Note 8)	-	-	-	-	-	(5,201)	(5,201)	-	(5,201)
At 31 December 2024 (Audited)	10,892	37,525	16,625	(440)	(4,299)	180,474	240,777	739	241,516
Consolidated profit for the year to 31 December 2025	-	-	-	-	-	9,954	9,954	141	10,095
Other comprehensive income/(expense)	-	-	-	1,358	8,028	-	9,386	-	9,386
Total comprehensive income/(expense)	-	-	-	1,358	8,028	9,954	19,340	141	19,481
Share-based payments	-	-	4,140	-	-	-	4,140	-	4,140
Excess Deferred tax on share-based payments	-	-	(128)	-	-	-	(128)	-	(128)
Share options exercised	85	319	49	-	-	-	453	-	453
Changes in non-controlling interest	-	-	-	-	-	-	-	433	433
Dividends paid (Note 8)	-	-	-	-	-	(5,791)	(5,791)	-	(5,791)
At 31 December 2025 (Unaudited)	10,977	37,844	20,686	918	3,729	184,637	258,791	1,313	260,104

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

		(Unaudited)	(Audited)
		Year ended	Year ended
		31 December 2025	31 December 2024
	Note	£'000	£'000
Cash flows from operating activities
Operating profit		22,662	11,219
Adjustments for:
Depreciation		8,036	6,453
Amortisation - acquired intangible assets		10,313	7,804
- software intangibles		655	537
- development costs		2,393	1,508
Increase in inventories		(13,267)	(2)
Decrease/(increase) in trade and other receivables		5,036	(10,384)
(Decrease)/increase in trade and other payables		(2,048)	4,318
Share-based payments expense		4,140	3,086
Taxation paid		(5,333)	(5,050)
Net cash inflow from operating activities		32,587	19,489
Cash flows from investing activities
Purchase of software		(1,111)	(572)
Capitalised research and development		(4,131)	(4,115)
Purchases of property, plant and equipment		(7,358)	(4,057)
Disposal of property, plant and equipment		54	27
Interest received		207	1,229
Acquisition of subsidiaries net of cash	14	72	(54,132)
Payment of contingent consideration	13	(1,064)	(5,529)
Net cash used in investing activities		(13,331)	(67,149)
Cash flows from financing activities
Dividends paid		(5,791)	(5,201)
Repayment of principal under lease liabilities		(3,885)	(2,605)
Repayment of loan	9	(11,452)	(62,192)
Borrowings received	9	5,876	79,453
Issue of equity shares	14	329	12
Interest paid		(4,045)	(3,989)
Net cash used in financing activities		(18,968)	5,478
Net increase/(decrease) in cash and cash equivalents		288	(42,182)
Cash and cash equivalents at the beginning of the year		17,039	60,160
Effect of foreign exchange rate changes		688	(939)
Cash and cash equivalents at the end of the year		18,015	17,039

Notes Forming Part of the Condensed Consolidated Financial Statements

1.   Reporting entity

Advanced Medical Solutions Group plc ("the Company") is a public limited company incorporated in England and Wales (registration number 02867684). The Company's registered address is Premier Park, 33 Road One, Winsford Industrial Estate, Cheshire, CW7 3RT.

The Company's ordinary shares are traded on the AIM market of the London Stock Exchange plc. The consolidated financial statements of the Company for the twelve months ended 31 December 2025 comprise the Company and its subsidiaries (together referred to as the "Group").

The Group is a world-leading independent developer and manufacturer of innovative tissue-healing technology, focused on quality outcomes for patients and value for payers. AMS has a wide range of surgical products including tissue adhesives, sutures, haemostats, internal fixation devices and internal sealants, which it markets under its brands LiquiBand^®, RESORBA^®, LiquiBandFix8^®, LIQUIFIX™, Peters Surgical, Ifabond, Vitalitec and SEAL-G^®. AMS also supplies wound care dressings such as silver alginates, alginates and foams through its ActivHeal^® brand as well as under white label. Since 2019, the Group has made seven acquisitions: Sealantis, an Israeli developer of innovative internal sealants, Biomatlante, a French developer and manufacturer of surgical biomaterials, Raleigh, a leading UK coater and converter of woundcare and bio-diagnostics materials, AFS Medical, an Austrian specialist surgical business, Connexicon, an Irish tissue adhesives specialist, Syntacoll, a German specialist in collagen-based absorbable surgical implants and Peters Surgical, a global provider of specialty surgical sutures, mechanical haemostasis and internal cyanoacrylate devices.

2.   Basis of preparation

These condensed unaudited consolidated financial statements have been prepared in accordance with the accounting policies set out in the annual report for the year ended 31 December 2024 except for new standards adopted for the year.

3.   Accounting policies

In the current year the Group has applied the following amendment to IFRSs issued by the IASB.

-       Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates (Lack of Exchangeability)

Its adoption has not had a material impact on the disclosures or on the amounts reported in the Annual Financial Statements.

While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of international accounting standards and International Financial Reporting Standards (IFRSs) as adopted by the UK, this announcement does not itself contain sufficient information to comply with IFRSs. The Group expects to publish full financial statements that comply with IFRSs in April 2026.

The unaudited financial information set out in the announcement does not constitute the Group's statutory accounts for the years ended 31 December 2025 or 31 December 2024. The financial information for the year ended 31 December 2024 is derived from the statutory accounts for that year, which have been delivered to the Registrar of Companies. The auditor reported on those accounts; their report was unqualified, did not draw attention to any matters by way of emphasis without qualifying their report and did not contain a statement under s498 (2) or (3) Companies Act 2006. The audit of the statutory accounts for the year ended 31 December 2025 is not yet complete. These accounts will be finalised on the basis of the financial information presented by the Directors in this preliminary announcement and will be delivered to the Registrar of Companies following the Group's annual general meeting.

The unaudited financial statements have been prepared on the historical cost basis of accounting except as disclosed in the accounting policies set out in the annual report for the year ended 31 December 2024.

Going concern

The Group operates in markets whose demographics are favourable, underpinned by an increasing need for products to treat chronic and acute wounds. Consequently, market growth is predicted. The Group has a large number of contracts with customers across different geographic regions and also with substantial financial resources, ranging from government agencies through to global healthcare companies. The 2024 acquisition of Peters Surgical expanded AMS's product portfolio, adding additional direct sales capability in key territories, improved manufacturing efficiency and further expanded the Group's specialist development and commercialisation function.

With regards to the Group's financial position, it had cash and cash equivalents at 31 December 2025 of £18.0 million (£17.0 million) and continues to be profitable with positive operational cash flow.

The Group holds a debt facility which includes £55 million remaining on a term loan facility and a £30 million revolving credit facility, together "the Facility".  As at 31 December 2025, £6 million of the revolving credit facility was drawn, with £24 million available if required providing the Group with flexible working capital. Interest on drawn funds is charged at the SONIA interest rate plus a current bank margin of 1.5%. Both the term loan and the revolving credit facility mature in April 2028.

The Group is required to comply with the following financial covenants a) Interest cover in respect of any relevant period shall not be less than 4.0:1.0 and b) Net leverage in respect of each relevant Period shall not exceed 3.0:1.0.

The EBITDA to finance charge ratio of the Group at 31 December 2025 is 11.8 and is expected to increase as the borrowing facilities are repaid. The net debt to EBITDA ratio of the Group at 31 December 2025 is 1.0 and is expected to reduce as the borrowing facilities are repaid.

In carrying out their duties in respect of going concern, the Directors have carried out a review of the Group's financial position and cash flow forecasts for a period of 12 months from the date of issuing this preliminary announcement. These have been based on a comprehensive review of revenue, expenditure and cash flows, taking into account specific business risks and the current economic environment. Sensitivity analysis has been prepared to stress test forecasts, and the Directors are confident the business is a going concern given the significant headroom available. The Directors also considered whether any factors exist that might reasonably impact the Group's ability to continue as a going concern beyond the period of 12 months from the date of this preliminary announcement.

Having taken the above into consideration, the Directors have reached a conclusion that the Group is well placed to manage its business risks in the current economic environment. The directors have, therefore, deemed it appropriate to prepare the preliminary announcement on a going concern basis but note the existence of a material uncertainty relating to any impact of the lenders not extending the Facility. The preliminary announcement does not include any adjustments that would result from the basis of preparation being inappropriate.

New accounting standards not yet applied

Certain new accounting standards, amendments and interpretations have been published that are not mandatory for 31 December 2025 reporting periods and have not been early adopted by the group. These standards are not expected to have a significant impact on the Group's net results.

4.   Earnings per share

		(Unaudited)	(Audited)
		Year ended	Year ended
		31 December 2025	31 December 2024
Number of shares		'000	'000
Weighted average number of ordinary shares		218,766	217,561
Basic weighted average number of shares held by Employee Benefit Trust		(3,222)	(3,222)
Weighted average number of ordinary shares for the purposes of basic earnings per share		215,544	214,339
Effect of dilutive potential ordinary shares: share options, deferred annual bonus, Share Incentive Plan, LTIPs		4,465	3,959
Weighted average number of ordinary shares for the purposes of diluted earnings per share		220,009	218,298

Basic EPS is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of shares outstanding during the year.

Diluted EPS is calculated on the same basis as basic EPS but with the further adjustment to the weighted average shares in issue to reflect the effect of all potentially dilutive share options. The number of potentially dilutive share options is derived from the number of share options and awards granted to employees where the exercise price is less than the average market price of the Company's ordinary shares during the year.

Adjusted earnings per share

Adjusted EPS is calculated after adding back amortisation of acquired intangible assets, exceptional items and movement in long-term acquisition liabilities and their tax effect and is based on earnings of:

		(Unaudited)	(Audited)
		Year ended	Year ended
		31 December 2025	31 December 2024
		£'000	£'000
Earnings
Profit for the year being attributable to equity holders of the parent		9,954	7,094
Exceptional items		5,805	10,924
Tax impact of adjusted items		(290)	(3,857)
Amortisation of acquired intangible assets		10,313	7,804
Movement in long-term acquisition liabilities		42	(868)
Unwind of inventory fair-value accounting		-	1,726
Adjusted profit for the year being attributable to equity holders of the parent		25,824	22,823
		pence	pence
Basic EPS		4.62	3.31
Diluted EPS		4.52	3.25
Adjusted basic EPS		11.98	10.65
Adjusted diluted EPS		11.74	10.45

The denominators used are the same as those detailed above for both basic and diluted earnings per share.

The adjusted diluted EPS information is considered to provide an alternative representation of the Group's trading performance, consistent with the view of management.

5.      Segment information

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly investments and related revenue, corporate assets, head office expenses, exceptional items, income tax assets and the Group's external borrowings. These are the measures reported to the Group's Chief Executive for the purposes of resource allocation and assessment of segment performance.

Business segments

The principal activities of the business units are as follows:

Surgical

Selling, marketing and innovation of the Group's surgical products either sold directly by our sales teams or by distributors.

Woundcare

Selling, marketing and innovation of the Group's advanced woundcare products supplied under partner brands, bulk materials and the ActivHeal^® brand predominantly to the UK NHS as well as bio diagnostics products following the acquisition of Raleigh.

Segment information about these Business Units is presented below:

Year ended 31 December 2025	Surgical	Woundcare	Consolidated
(Unaudited)	£'000	£'000	£'000
Revenue	183,451	45,485	228,936
Result
Adjusted segment operating profit	35,903	3,852	39,755
Amortisation of acquired intangibles	(9,373)	(940)	(10,313)
Segment operating profit	26,530	2,912	29,442
Unallocated expenses			(975)
Exceptional items			(5,805)
Operating profit			22,662
Finance income			211
Finance costs			(5,090)
Profit before tax			17,783
Tax			(7,688)
Profit for the year			10,095

At 31 December 2025 (Unaudited)	Surgical	Woundcare	Consolidated
Other information	£'000	£'000	£'000
Capital additions:
Software intangibles	995	116	1,111
Development	3,522	609	4,131
Property, plant and equipment	6,877	481	7,358
Depreciation and amortisation	(18,141)	(3,256)	(21,397)
Balance sheet
Assets
Segment assets	340,828	53,942	394,770
Liabilities
Segment liabilities	112,655	21,306	133,961
Unallocated liabilities			705
Consolidated total liabilities			134,666

Year ended
31 December 2024			Surgical	Woundcare		Consolidated
(Audited)			£'000	£'000		£'000
Revenue			135,768	41,753		177,521
Result
Adjusted segment operating profit			30,132	2,604		32,736
Amortisation of acquired intangibles			(6,864)	(940)		(7,804)
Segment operating profit			23,268	1,664		24,932
Exceptional items						(10,924)
Unallocated expenses						(2,789)
Operating profit						11,219
Finance income						2,161
Finance costs						(3,557)
Profit before tax						9,823
Tax						(2,681)
Profit for the year						7,142

At 31 December 2024
(Audited)		Surgical		Woundcare		Consolidated
Other information		£'000		£'000		£'000
Capital additions:
Software intangibles		494		78		572
Development		3,517		598		4,115
Property, plant and equipment		2,607		1,450		4,057
Depreciation and amortisation		(13,198)		(3,104)		(16,302)
Balance sheet
Assets
Segment assets		332,709		55,787		388,496
Liabilities
Segment liabilities		115,729		30,023		145,752
Unallocated liabilities						1,228
Consolidated total liabilities						146,980

Geographical segments

Segment revenue is based on the geographical location of customers. Segment assets are based on the country by which the legal entity resides.

		(Unaudited)	(Audited)
		Year ended	Year ended
		31 December 2025	31 December 2024
Segmental Revenue		£'000	£'000
United Kingdom		19,675	16,606
Germany		30,993	32,288
France		25,055	14,790
Rest of Europe		62,468	46,314
United States of America		53,893	43,382
Rest of World		36,852	24,141
		228,936	177,521

The following table provides an analysis of the Group's total non-current assets by geographical location:

		(Unaudited)		(Audited)
		31 December 2025		31 December 2024
Segmental Assets		£'000		£'000
United Kingdom		46,173		46,027
France		93,468		99,539
Germany		67,903		64,538
Rest of Europe		28,089		29,686
Rest of world		19,772		22,428
		255,405		262,218

6.      Operating profit

		(Unaudited)	(Audited)
Year ended 31 December		Year ended 31 December 2025	Year ended 31 December 2024
		£'000	£'000
Operating profit is arrived at after charging:
Depreciation of property, plant and equipment		8,036	6,453
Amortisation of:
-  acquired intangible assets		10,313	7,804
-  software intangibles		655	537
-  development costs		2,393	1,508
Research and development costs expensed excluding regulatory costs		5,110	5,237
Cost of inventories recognised as expense		105,668	84,269
Write down of inventories expensed		1,130	634
Staff costs		87,679	66,496
Net foreign exchange loss		(675)	141

7.      Taxation

			(Unaudited)	(Audited)
Year ended 31 December			Year ended 31 December 2025	Year ended 31 December 2024
			£'000	£'000
a) Analysis of charge for the year
Current tax:
Corporation Tax - current year			6,772	5,044
Corporation Tax - prior year			(319)	140
			6,453	5,184
Deferred tax:
Change in Deferred Tax - current year			981	(2,351)
Change in Deferred Tax - prior year			254	(152)
			1,235	(2,503)
Tax charge for the year			7,688	2,681
The Group has chosen to use a weighted average country tax rate rather than the UK tax rate for the reconciliation of the charge for the year to the profit per the income statement. The Group operates in several jurisdictions, some of which have a tax rate in excess of the UK tax rate. As such, a weighted average country tax rate is believed to provide the most meaningful information to the users of the financial statements.
		(Unaudited)			(Audited)
Year ended 31 December		2025			2024
		£'000			£'000
b) Factors affecting tax charge for the year
Profit before taxation		17,783			9,823
Profit multiplied by the weighted average Group tax rate of 24.4% (2024: 29.0%)		4,272			2,850
Effects of:
Net expenses not deductible for tax purposes		435			157
Patent Box Relief		(1,180)			(1,129)
Derecognition of deferred tax assets		3,141			-
Deferred tax asset not recognised on current year losses		1,462			1,036
Utilisation of losses on which Deferred tax asset has not been recognised		(149)			(301)
Share-based payments		(293)			68
Taxation		7,688			2,681

8.      Dividends

		(Unaudited)	(Audited)
		Year ended	Year ended
		31 December 2025	31 December 2024
Amounts recognised as distributions to equity holders in the year:		£'000	£'000
Final dividend for the year ended 31 December 2024 of 1.83p per ordinary share (2023: 1.66p)		3,954	3,556
Interim dividend for the year ended 31 December 2025 of 0.85pp per ordinary share (2024: 0.77p)		1,837	1,645
		5,791	5,201
Proposed final dividend for the year ended 31 December 2025 of 2.01p (2025: 1.83p) per Ordinary Share		4,348	3,938

9.      Net debt

The following table provides an analysis of the Group's net debt/cash:

		(Unaudited)	(Audited)
		31 December 2025	31 December 2024
The following table provides an analysis of the Group's net debt		£'000	£'000
Cash held at banks		18,015	17,039
Facility A borrowings		(54,757)	(59,548)
Facility B borrowings		(5,973)	(11,902)
Other Debt		(6,981)	(1,372)
Accrued interest		(759)	(27)
Net debt		(50,455)	(55,810)

The Group's borrowings primarily relate to a credit facility from a syndicate comprising HSBC and Natwest which includes a £55 million long term loan with annual repayments of £5 million per year and a £30 million Revolving Credit Facility. At the reporting date, £6 million of the Revolving Credit Facility was utilised, leaving flexibility to draw a further £24 million to support working capital needs in the future. Interest on both is based on SONIA plus a margin of +1.50% (2024: +1.75%) based on the Group's net leverage. Post year-end the facilities were extended from running to April 2027 to until April 2028. The facilities run until April 2028 and the Group expects to use its positive operational cash flow to repay these facilities over time.

The loan has covenants in place meaning the Group needs to comply with the following financial conditions: a) Interest cover in respect of any relevant period shall not be less than 4.0:1.0 and b) Net leverage in respect of each relevant period shall not exceed 3.0:1.0.

	(Unaudited)		(Audited)
	31 December 2025		31 December 2024
Financial covenants	Covenants	Actual	Covenants	Actual
Minimum Interest Cover*	4.00:1	11.8	4.00:1	7.8
Maximum Net Leverage**	3.00:1	1.0	3.00:1	1.2

Interest cover is calculated as a ratio of covenant-adjusted EBITDA to Net Finance Charge in respect of any relevant period.

Net leverage is calculated as a ratio of Total Net Debt on the last day of that relevant period to covenant-adjusted EBITDA in respect of that relevant period.

10.    Financial derivatives

It is the policy of the Group to enter into forward foreign exchange contracts to cover specific foreign currency payments and receipts.

The Group held the following financial instruments at fair value at 31 December 2025 which are categorised as a Level 2 measurement in the fair value hierarchy under IFRS 13 Fair Value Measurements. The fair value amounts presented below are the difference between the market value of equivalent instruments at the Statement of Financial Position date determined using the mid-market price and the contract value of the instruments. No profits or losses are included in operating profit in the year (31 December 2024: £nil) in respect of FVTPL contracts.

The following table details the forward foreign currency contracts to sell US dollars outstanding as at the year end:

	Ave. exchange rate				Foreign currency					Fair value
		2025		2024	2025			2024			2025	2024
		USD:£1		USD:£1	USD'000		USD'000			£'000			£'000
Less than 3 months		1.30		1.28	10,000		9,500			265			(143)
3 to 6 months		1.29		1.23	9,000		8,500			245			131
7 to 12 months		1.28		1.25	21,000		18,000			703			47
Over 12 months		1.34		1.30	16,000		18,000			12			(474)
					56,000		54,000			1,225			(439)

11.    Goodwill

		(Unaudited)	(Audited)
		31 December 2025	31 December 2024
Movement in Goodwill		£'000	£'000
Balance at the beginning of the year		116,884	80,435
Acquisitions		-	39,707
Movement in Goodwill		(4,191)	(3,258)
Balance at the end of the year		112,693	116,884

Movement in Goodwill includes movements due to exchange differences

12.    Inventory

		(Unaudited)	(Audited)
		31 December 2025	31 December 2024
At 31 December		£'000	£'000
Raw materials		25,674	19,688
Work in progress		11,306	9,617
Finished goods		33,067	25,954
		70,047	55,259

13.    Provisions

Provisions primarily relate to contingent consideration arising on acquisition. A maximum potential earnout of €4.0 million relating to the 2023 acquisition of Connexicon has been recognised at fair value of £1.6 million (2024: £1.4 million). Contingent consideration relating to the 2019 acquisition of Sealantis is based on a percentage of sales and is recognised at fair value of £1.3 million (2024: £1.3 million). Contingent consideration arising on business combinations are categorised as a Level 3 measurement in the fair value hierarchy under IFRS 13 Fair Value Measurements.

£0.4 million was paid in the year relating to the final AFS Medical EBITDA milestone achieved in financial year 2024 following its acquisition in 2022. £0.7 million was paid in the year relating to the Peters Surgical earn-out following partial achievement of the gross margin and Inventory conditions. The US regulatory approvals or tax conditions were not achieved within the required time resulting in £nil fair value being required at 31 December 2025.

At 31 December 2024 the fair value recognised in respect of the AFS Medical milestone was £0.4 million and in respect of Peters Surgical it was £0.8 million.

The Directors are not aware of any additional contingent liabilities faced by the Group as at 31 December 2025 (31 December 2024: £nil).

14.    Equity

Share capital as at 31 December 2025 amounted to £10,977,000 (31 December 2024: £10,892,000). During the year the Group issued 1,692,879 shares in respect of Share Options, LTIPS, Deferred Annual Bonus Scheme and the Share Incentive Plan.

Other reserves includes a merger reserve, share-based payments reserve, Share-based payments deferred tax reserve and Investment in own shares reserve. The merger reserve represents Advanced Medical Solutions Limited's share premium account arising from merger accounting. The Investment in own shares relates to shares held in trust on behalf of employees in respect of the Share Incentive Plan.

In August 2025, the Group entered an agreement to acquire a controlling 49% stake in PT Peters Surgical Indonesia, an Indonesia based manufacturer of Sutures. The Group has considered the implications of IFRS10 - Consolidated Financial Statements and determined that the Group controls the Company and has therefore consolidated the assets, liabilities, revenues and expenses of the Company into the consolidated financial statements, recognising a non-controlling interest for the portion of the subsidiary's equity not owned by the Group.

A non-controlling interest in Sutural, an Algeria based manufacturer and distributor of Sutures, arose as a result of the 2024 acquisition of Peters Surgical.

15.    Principal risks and uncertainties

Further detail concerning the principal risks affecting the business activities of the Group is detailed on pages 71-77 of the Annual Report and Accounts for the year ended 31 December 2024. There have been no significant changes since the last annual report.

16.    Iran Conflict

The Group has a facility in Israel. The revenues and physical assets at these facilities are not material to the Group.

17.    Events after the balance sheet date

As disclosed in the Integration and synergies section of the Chief executive's review, subsequent to 31 December 2025, potential site closures were announced internally in January 2026, with provisional closure dates for the affected sites in March 2027. There have been no other material events subsequent to 31 December 2025.

18.    Alternative performance measures

Reconciliation of Operating profit to Adjusted operating profit
	(Unaudited)		(Audited)
	Year ended		Year ended
	31 December 2025		31 December 2024
	£'000		£'000
Profit before tax	17,783		9,823
Amortisation of acquired intangibles	10,313		7,804
Exceptional items	5,805		10,924
Unwind of inventory fair value accounting	-		1,726
Adjusted operating profit	33,901		30,277
Reconciliation of Adjusted segment EBITDA to Adjusted EBITDA
		(Unaudited)		(Audited)
		Year ended		Year ended
		31 December 2025		31 December 2024
		£'000		£'000
Adjusted Surgical segment EBITDA		44,671		36,466
Adjusted Woundcare segment EBITDA		6,168		4,768
Unwind of inventory fair value accounting		-		1,726
Unallocated expenses		(975)		(2,789)
Adjusted EBITDA		49,864		40,171

Adjusted EBITDA is reconciled to operating profit in the Financial review.

Reconciliation of Gross margin to Adjusted gross margin
	(Unaudited)	(Audited)
	Year ended	Year ended
	31 December 2025	31 December 2024
	£'000	£'000
Gross margin	122,138	92,618
Unwind of Inventory fair value accounting	-	1,726
Adjusted gross margin	122,138	94,344

Reconciliation of constant currency

Constant currency performance is measured by re-translating 2025 revenues at the previous year's exchange rates

Surgical Business Unit	2025 Re-translated £ million	2024 Reported £ million	Change at constant currency
Advanced Closure	48.6	43.4	12%
Internal Fixation and Sealants	8.3	8.0	3%
Sutures, clips and VTO	82.7	50.4	64%
Biosurgical Devices	27.5	22.6	22%
Other Distributed	16.9	11.4	48%
Total	184.0	135.8	36%

Woundcare Business Unit	2025 Re-translated £ million	2024 Reported £ million	Change at constant currency
Infection and Exudate Management	42.3	36.9	15%
Other Woundcare	3.4	4.9	-30%
Total	45.7	41.8	9%

Reconciliation of Revenue excluding Peters Surgical

	2025 £ million	2024 £ million	Reported growth
Group revenue excluding Peters Surgical	154.8	140.3	10%
Peters Surgical	74.1	37.2	99%
Total Group revenue	228.9	177.5	29%

Reconciliation of Reported Income tax expense to adjusted Income tax
	(Unaudited)	(Audited)
	Year ended	Year ended
	31 December 2025	31 December 2024
	£'000	£'000
Income tax	7,688	2,681
Tax on exceptional items	1,204	1,981
Movement in Deferred Tax on acquired intangibles	(926)	1,564
Tax on other adjusted items	12	312
Adjusted Income tax	7,978	6,538

 

END