Advanced Medical Solutions could benefit from weak pound due to Brexit

Advanced Medical Solutions (AMS), a surgical and wound care product manufacturer, said on Tuesday trading is in line with expectations as it could benefit from a weak sterling due to Brexit.

In a six month trading update for the period ending 30 June, the company said based on the exchange rates on 23 June it expects revenues to be ahead and profitability to be in line with market expectations.

When the UK voted to leave the European Union on the 24 June sterling plummeted to 31-year record lows.

The AIM listed company said Brexit had not an immediately impacted its day-to-day operations, however it said as sterling weakens against the US dollar and the euro, AMS’ revenue would improve as about 30% of the its sales are in US dollars and 30% in euros.

AMS said that it aims to have about 70% its transactional exposure for the next twelve months hedged. It said low sterling is unlikely to benefit the company in the short-term.

The Winsford based company said it is naturally hedged against the euro due to its European operations but is more exposed to US dollar.

The company has two sites in the UK, one in the Netherlands, two in Germany and one in the Czech Republic. It sells its products to over 70 countries through multinational or regional distributors and through its own distributors in the UK, Germany, the Czech Republic and Russia.

Chief executive Chris Meredith said: "The board is pleased with the ongoing strong performance of the business and we are on track for the full year. We remain focused on our strategic objectives whilst delivering innovation to patients and surgeons."

Shares in Advanced Medical Solutions fell 0.38% to 196p at 1213 BST.