Advanced Medical Solutions profit falls on restructuring costs

Advanced Medical Solutions Group PLC on Wednesday said higher exceptional costs related to business restructuring and its looming takeover weighted on its interim profit.

The surgical and medical instrument manufacturer reported a 4.3% increase in revenue to £115.5 million for the first half of 2026, from £110.8 million a year earlier.

Pretax profit for the period fell 96% to £335,000 from £8.5 million.

This reflected higher administrative expenses, which reached £58.5 million, compared with £47.3 a year earlier. The figure included exceptional items amounting to £12.4 million.

The company said these exceptional expenses would continue until summer 2027, after the planned closure of five manufacturing sites in Germany and Czechia, and they include employee termination and asset impairment costs.

The costs also relate to the acquisition of Advanced Medical Solutions by HB Fuller Medical Adhesive Technologies Inc, a subsidiary of HB Fuller Co, which is expected to become effective in the last quarter of 2026.

Chief Executive Officer Chris Meredith said: "We look forward to becoming part of the combined larger medical business within HB Fuller and benefiting from enhanced commercial, manufacturing and distribution capabilities that should accelerate the delivery of our strategy and broaden our offering to patients."

The company also said net debt increased by 19% to £60.3 million from £50.5 million at the end of 2025, primarily due to capital investment at its Bangkok and Stafford sites, as well as increased investment in inventory.

Shares in Advanced Medical Solutions were up 0.2% at 281.56 pence in London on Wednesday.

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