LONDON (ShareCast) - Wound treatment developer Advanced Medical Solutions grew profits by a third in the first half, with both branded and white label products selling well.

Group revenue climbed 11% to £27.4m, aided by currency effects, as increased margins helped pre-tax profit and diluted earnings both jump 33% to £6m and 2.49p per share respectively.

Chairman Don Evans said: "The first half of 2013 has seen another good performance by the group, with the benefits of our reorganisation already producing results, including another double-digit increase in revenues, further operating margin improvements and strong rises in profitability.”

Net debt reduced to £2.6m and Evans added that strong net cash flow generation of £5.1m should continue and enable the AIM-listed company to have net funds by the year end.

"With further growth expected from our Branded Direct and OEM businesses, together with anticipated stronger progress in both Branded Distributed and Bulk Materials in the second half, we are confident of meeting current market expectations for the full year.”

Operational highlights included further strong growth for Activheal, a cost-effective woundcare product designed for the NHS, and a return to growth for silver alginates, up 28% year on year.

Broker N1+ Singer noted that there was no new news on Liquiband in the US, with market share remaining flat at 4% in the key hospital segment.

A note from analysts Chris Glasper and Elizabeth Klein said growth was expected in the second half following the launch of a product variant and the signing up of new distributors.

They forecast £57.2m sales for the full year, adjusted pre-tax profits of £13.3m and adjusted earnings of 5.3p per share.

Shares in AMS were down 1.1% at 90p at 08:43 on Wednesday.

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