Advanced Medical Solutions has revealed its annual profits will be at the 'lower end' of market expectations.
The news was unveiled Thursday in the UK-based global medical technology company's trading update which reported lower-than-expected sales of their LiquidBand product in the US market.
The woundcare group said it was disappointed with its progress in the second half of 2012 after failing to sell as much they had hoped of the product, a skin adhesive for wounds.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"With the gains made across a number of fronts being offset to some extent by the performance of LiquiBand in the US Acute Care hospital sector and continued pressure on foam roll-stock, overall indications for the full year are that AMS will be at the lower end of market expectation for pre-tax profits," the company said in a statement.
The organisation said the overall performance of LiquiBand in the US has been mixed with success in the Alternative Site sector but trouble in targeting the larger Acute Care hospital sector.
"We are actively reviewing the most effective strategy for accessing and gaining market share in this important sector. AMS's roll-stock foam revenues will also be lower than in the prior year, as previously highlighted in the interim statement," the company stated.
However the company said it has made progress with ActivHeal, silver alginate and the converted foam portfolios. It is also expecting growth in existing businesses and from its Resorba brands.
Advanced Medical Solutions has a £121.69m market capitalisation. Shares fell 13.77% to 59.50p at 11:35 Thursday.
RD
