Advanced Medical in Ulster deal
Article Date: Aug 23 2006Wound care specialist Advanced Medical Solutions (AMS) is to supply its products to Northern Ireland's National Health service hospitals.
The Government's Central Services Agency Regional Supplies Service has decided to include Cheshire-based AMS in a contract to supply items from its 'ActivHeal (R)' range of advanced dressings for routine wounds to the province's NHS hospitals. The company claims ActivHeal (R) offers potential 'immediate' savings of some £25 million a year to the NHS overall.
AIM-quoted AMS says initial estimates suggest a 'conservative' uptake of £100,000 a year from the Northern Ireland hospitals. But chief executive Dr. Don Evans sees wider implications, arguing 'this new contract...reflects AMS's success in penetrating the NHS, particularly at a time when hospital trusts are trying to reduce spending'.
This deal is another piece of good cheer for once-troubled AMS, which last year turned a £990,000 loss into a modest £27,000 profit on turnover up 17 per cent to £12.9 million and more recently issued an upbeat trading statement. The shares, which swung between 12.75p and 7.5p in 2004, were 0.25p up this morning to 10.5p, valuing the company at £14.9 million, and should make further progress.
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