Advanced Medical Solutions Group

Website: Advanced Medical Solutions Group
Index: AIM
EPIC: AMS
Supersector: Health Care
Sector: Health Care Equipment and Services
Subsector: Medical Equipment
Market Cap: £465.31M
Payout Frequency: Semi-Annual

Advanced Medical Solutions Group Dividend Analysis and Summary

Key Dividend Details

Final dividend: 2.01p per share (proposed)
Total FY2025 dividend: 2.86p per share (vs 2.60p FY2024), +10% YoY
Ex-dividend date: 28/05/2026 (derived from record date)
Record date: 29/05/2026
Payment date: 26/06/2026
Interim dividend: 0.85p, paid 24 Oct 2025
Estimated cash outflow for FY2025 dividend: ~£6.2m (2.86p on ~216m shares)
Coverage:
- Against adjusted diluted EPS (11.74p): ~4.1x cover; payout ~24%
- Against reported diluted EPS (4.52p): payout ~63% (note heavy non-cash amortisation)
- Against net operating cash flow (£32.6m): ~5.3x cover

Sustainability and Cover

Strong cash generation (operating cash flow £32.6m, +67%) and modest leverage (net debt £50.5m; net debt/EBITDA ~1.0x) comfortably fund the dividend.
Adjusted EBITDA rose 24% to £49.9m; adjusted EPS up 12% to 11.74p, providing ample earnings headroom for a progressive dividend.
Facilities extended to April 2028 with significant covenant headroom (interest cover 11.8x; max leverage covenant 3.0x vs actual 1.0x).
Working-capital build (inventory 7.4 months) tied to transformation is likely to unwind over time, supporting future cash conversion.

Dividend Growth Trajectory and Policy

Board proposes a 10% increase in the total dividend to 2.86p, consistent with a progressive approach as scale and cash flows improve.
Growth underpinned by record revenue and EBITDA, with guidance for 2026 to be in line with market expectations.

Financial Performance and Capital Allocation Support

Revenue up 29% to £228.9m; adjusted PBT up 15% to £33.9m; record operating metrics despite integration dilution.
Capital allocation remains balanced: continued deleveraging, ongoing R&D investment (6.3% of revenue), and manufacturing optimisation alongside a rising dividend.
Exceptional integration/restructuring costs are trending lower YoY and are tied to synergy delivery from 2027.

Structural Changes and Potential Dividend Impacts

M&A integration: Peters Surgical (acquired 2024) and Syntacoll integration progressing; commercial synergies are contributing now; £10m annual operational synergies targeted from 2027. One-off costs continue through the transition.
Site consolidation: four sites in Germany and one in Czechia planned to close in March 2027; near-term cash costs, longer-term margin uplift.
Sales model shifts: Further transitions to direct sales in selected markets may entail one-off costs but should enhance profitability and cash flow over time.
Working capital: Elevated inventories to support transformation; expected normalisation by mid-2026 in some channels (e.g., suture distributor inventory).
Funding: Debt facilities extended to April 2028; ample covenant headroom supports dividend continuity.

Risks and Flags Relevant to Dividend Stability

Integration execution risk and restructuring costs could periodically weigh on free cash flow until synergies fully materialise (from 2027).
Near-term trading mix: Suture channel inventory normalisation expected to unwind by mid-2026; may soften momentum in the short term.
Regulatory milestones: Key US approvals (e.g., cardiovascular sutures) pushed to 2027; delays could defer growth.
FX and tariffs: Material EUR/USD exposure; US tariff impact guided at £1–2m; largely managed via hedging.
Reported vs adjusted earnings: High non-cash amortisation depresses reported EPS; dividend is more sensibly assessed against adjusted earnings and cash flow.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
29/05/2025	20/06/2025	Final	1.83p	GBX
19/06/2025	17/07/2025	Final	1.83p	GBX
25/09/2025	24/10/2025	Interim	0.85p	GBX

Total (Annual Dividends Per Share): 4.51p

Dividend Yield = Annual Dividends Per Share (4.51p) ÷ Share Price (227p) = 1.99%

Ex Dividend Date	Payment Date	Type	Amount	Currency
28/05/2026	26/06/2026	Final	2.0100p	GBX
25/09/2025	24/10/2025	Interim	0.85p	GBX
19/06/2025	17/07/2025	Final	1.83p	GBX
29/05/2025	20/06/2025	Final	1.83p	GBX
26/09/2024	25/10/2024	Interim	0.77p	GBX
30/05/2024	21/06/2024	Final	1.66p	GBX
28/09/2023	27/10/2023	Interim	0.70p	GBX
18/05/2023	09/06/2023	Final	1.51p	GBX
29/09/2022	21/10/2022	Interim	0.64p	GBX
26/05/2022	17/06/2022	Final	1.37p	GBX
23/09/2021	22/10/2021	Interim	0.58p	GBX
27/05/2021	18/06/2021	Final	1.20p	GBX
24/09/2020	23/10/2020	Interim	0.50p	GBX
28/05/2020	19/06/2020	Final	1.05p	GBX
26/09/2019	25/10/2019	Interim	0.50p	GBX
23/05/2019	14/06/2019	Final	0.90p	GBX
27/09/2018	26/10/2018	Interim	0.42p	GBX
24/05/2018	15/06/2018	Final	0.75p	GBX
28/09/2017	27/10/2017	Interim	0.35p	GBX
25/05/2017	16/06/2017	Final	0.62p	GBX
29/09/2016	28/10/2016	Interim	0.30p	GBX
19/05/2016	10/06/2016	Final	0.55p	GBX
01/10/2015	30/10/2015	Interim	0.25p	GBX
07/05/2015	29/05/2015	Final	0.48p	GBX
01/10/2014	31/10/2014	Interim	0.22p	GBX
30/04/2014	28/05/2014	Final	0.41p	GBX
02/10/2013	01/11/2013	Interim	0.19p	GBX

Year	Interim	Final	Currency	Total	Change
2024	0.770	1.660	GBX	2.430	9.950
2023	0.700	1.510	GBX	2.210	9.950
2022	0.640	1.370	GBX	2.010	12.920
2021	0.580	1.200	GBX	1.780	14.830
2020	0.500	1.050	GBX	1.550	10.710
2019	0.500	0.900	GBX	1.400	19.650
2018	0.420	0.750	GBX	1.170	20.610
2017	0.350	0.620	GBX	0.970	14.110
2016	0.300	0.550	GBX	0.850	16.430
2015	0.250	0.480	GBX	0.730	15.870
2014	0.220	0.410	GBX	0.630	231.570
2013	0.190		GBX	0.190

Number of Shares:

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