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: +44 (0) 1606 545508
Chris Meredith, Chief Executive Officer Eddie Johnson, Chief Financial Officer Michael King, Investor Relations
Optimum Strategic Communications	Tel: +44 (0) 20 4566 8543
Mary Clark / Nick Bastin / Isabelle Abdou	[email protected]
Investec Bank PLC (NOMAD & Joint Broker)	Tel: +44 (0) 20 7597 5970
Gary Clarence / David Anderson
Berenberg (Joint Broker)	Tel: +44 (0)20 3207 7800
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