Advanced Medical Solutions maintains supply, warns of Covid-19 impacts

Surgical and advanced wound care specialist Advanced Medical Solutions said on Wednesday that all of its sites were currently in operation and meeting their commitments to maintain supply of its devices to healthcare partners and customers.

Advanced Medical said it was in a "robust financial condition" to weather the continued global disruption caused by the pandemic as it retained its "strong" cash balances.

The AIM-listed firm cautioned that it was experiencing a slowdown in demand for its products as a result of the cancellation or postponement of elective surgeries, dental procedures and a reduction in the volume of accident and emergency treatments.

As a result, AMS said it had been experiencing reductions to its revenues at the upper end of its 3% to 5% of annual sales per month estimates.

Although it anticipates a "gradual return to more normalised levels", Advanced Medical warned that the effects of Covid-19 would continue to have an impact in the second half of 2020, albeit at a lower level.

Chief executive Chris Meredith said: "Our strong balance sheet enables us to weather the disruption of Covid-19 whilst continuing to invest in R&D and regulatory projects, in order to be in the best position to return to strong growth when the group's end markets recover to a more normal basis."

Elsewhere, AMS said end-market sales data for LiquiBand had started to recover some momentum, resulting in strong sales volumes for the first quarter of 2020 and market share gains.

As of 1030 BST, Advanced Medical shares were up 3.96% at 262.50p.