Good afternoon and welcome to the Advanced Medical Solutions Group Plc Interim Results Investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged, and they can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. There will, however, be no live Q&A in today's session, as the company will share written responses to questions after the meeting, and you'll be notified once these are available. Before we begin, I would like to submit the following poll, and I would now like to hand you over to CEO Chris Meredith. Good afternoon to you.
Thank you, Alex. Good afternoon, and thank you for joining us for Advanced Medical Solutions Group Results for the six months ending 30th of June 2025. I'm Chris Meredith, Chief Executive Officer, and I'm delighted to be here with Eddie Johnson, our Chief Financial Officer, to share the highlights and progress we've achieved so far this year. Let me start with highlights. The first half of 2025 has seen considerable expansion for AMS, fueled by both the successful integration of last year's acquisitions and by robust organic growth within our core product lines. We delivered 66% revenue at constant exchange rates, driven not only by contributions from Peters Surgical, but also by strong underlying growth of 14% from our core portfolio. LiquiBand continued its excellent trajectory with 15% global growth, led by the U.S. and strong demand in the rest of the world.
Our biosurgical business rebounded sharply, up 40%, supported by enhanced manufacturing efficiency and the addition of Syntacoll. In wound care, we completed the restructure in the first quarter, and the business is now delivering double-digit margins from quarter two onwards. And finally, we made excellent progress in driving both commercial and operational synergies with our U.S. regulatory program for biosurgicals and sutures, also progressing well. Moving on to acquisition integration progress, both the Peters Surgical and Syntacoll acquisitions are progressing in line with plan, and we remain on track to deliver GBP 10 million of annualized EBITDA synergies from 2027. The acquisition of Peters Surgical, finalized on the 1st of July 2024, represents a significant step forward in our expansion strategy. Integration planning has been completed, and we're now well into the execution phase, which remains on track for completion by end of 2027.
We are already seeing commercial synergies. For instance, the increased traction for AMS products such as LiquiBand XL and Genta-Coll in Europe via Peters' specialist cardiovascular teams, and the launch of LiquiBand and Resorba products through Peters Surgical's direct sales teams in regions such as India and France. Our expectation is that we can generate annualized commercial synergies of GBP 5-GBP 10 million by 2029. Our acquisition of Syntacoll in March 2024 has also had a positive impact on our biosurgical business. Syntacoll's expertise has greatly improved manufacturing efficiency and yields, allowing us to resolve the backorders experienced last year and support strong recovery in revenue growth. Syntacoll has also helped to enhance sales of antibiotic collagens. Their regulatory experience of FDA processes has been critical as we prepare our first regulatory submissions for collagen in the U.S. market.
In short, both acquisitions are on track and already contributing positively to group performance. Our LiquiBand topical adhesive franchise continues to be a standout performer and has delivered robust growth globally. In the U.S. market, renegotiated distributor agreements and differentiated branding have driven increased commitment from partners. Our pipeline for both small and long-wound closure devices is strong, and we're managing our own brand channel alongside distribution effectively. Outside the U.S., our footprint in the Far East and Europe continues to expand, supported by Peters Surgical's direct sales capabilities, which is giving us new access into cardiovascular markets and has enabled us to launch into markets such as France and India. Looking ahead, we're on track to secure Chinese regulatory approval for our first tissue adhesive launch in the second half of 2026.
The clinical trial has been completed, and the Chinese FDA filing remains on track for submission by year-end. Our internal fixation sealants portfolio is also building momentum. In the U.S., end-user demand continues to increase, with contracts now in place across three GPOs and increased focus from TELA Bio. We have resolved early quality issues, which has improved uptake, and repeat orders are now starting to come in following depletion of a significant initial H1 24 stocking orders. For Seal-G, clinical data continues to support the patient benefits of our technology solution, with the initial readouts for the current clinical studies showing evidence of both reduced leakage severity and potentially lowering the need for stoma creation. We're continuing to work on next-generation devices for 2027 that will eliminate the dependency on external gas supply.
Finally, in this technology area, we're also assessing opportunities to expand the Ifabond range with line extensions planned for 2027. The sutures, clips, and VTO category has seen the most significant change since the acquisition of Peters Surgical as we merged the two suture portfolios into one business. The Resorba range of sutures remains a consistent growth driver and has continued its recent upward trend, delivering strong growth in the first six months. Peters Surgical revenues in this category were temporarily affected by legacy supply-back orders and U.S. tariff-related order phasing, but underlying demand across the portfolio remains robust. However, I'm pleased to say that we've made good progress in resolving supply chain issues, and we are confident that the backorders can be addressed with the anticipation of accelerated growth in the second half of this year. End-user demand remains steady across the portfolio.
With the combination of Peters and Resorba sales teams, we expect a much stronger second half. Looking further out, following the regulatory delays, we now expect U.S. suture launches in 2026 and 2027. Specifically for clips and VTO, we believe there is significant untapped potential for this part of the portfolio and the ability to cross-sell into multiple markets. In Biosurgical, performance has been significantly strengthened by the Syntacoll acquisition. Our collagen range has performed strongly, with improved yields helping resolve the backorders we faced last year. Syntacoll has positively impacted the performance of antibiotic collagen sales, and our regulatory process is on track for first approvals of non-antibiotic variants in the U.S. by the end of 2026.
We also see significant potential for the freeze-dried bone substitute that currently sits in our development pipeline and which combines surgeon benefits of moldability and fluid compatibility with patient benefits of improved bone growth. The project continues to progress well, and initial regulatory approvals in Europe and U.S. are on track for 2026 and 2027. Together, antibiotic collagens and bone substitutes represent a substantial U.S. opportunity, with major revenue expected from 2030. Moving on to wound care, I'm pleased to report that our wound care business has made a good recovery in the first half of the year. The planned restructuring program was successfully completed at the end of the first quarter, with an increased focus on higher margin products, and we remain on track to achieve double-digit margin from quarter two 2025.
Revenues have recovered strongly, with infection and exudate management up 26%, new OEM contracts secured, and long-standing development projects completed. Importantly, this growth has come despite continued royalty decline. Overall, wound care is now in a healthier, more profitable, and more strategically aligned business. And finally, before handing to Eddie for the financials, I want to just highlight the strong pipeline of new product launches and geographic expansion opportunities across the group. These launches, combined with our broader geographic reach following integrations, will be a key driver of growth in the second half and beyond. That concludes my review of our operational performance and strategic progress, and I'll now hand over to Eddie to take you through financial performance.
Thanks, Chris. Good afternoon, everyone. I'm delighted to present what's been a strong financial performance for the first half of 2025, demonstrating the strong value generation from both our underlying business and also our new acquisitions. As Chris mentioned, the two significant acquisitions we made in 2024 and strong organic growth resulted in revenues increasing by 66% at constant currency to GBP 110.8 million. EBITDA rose by 42% to GBP 24.4 million, and adjusted pre-tax profit was up 11% to GBP 16.4 million. We also reduced net debt to GBP 50.1 million despite investment in integration. Reflecting its confidence in the outlook, the board is proposing a 10% increase in the interim dividend. Revenue growth was largely driven by our core surgical business unit, which was up 86% to GBP 87.9 million, including a GBP 34.3 million contribution from Peters Surgical, which wasn't there in the prior period.
Surgical sales now constitute nearly 80% of group revenue. The newly restructured wound care business also performed well, with revenues up 18% to GBP 22.9 million. Within the surgical business, the advanced closure portfolio grew strongly, up 15% globally to GBP 24.5 million, with U.S. growth of 18% reflecting the success of our new U.S. distribution strategy and with the rest of the world revenues also increasing by 11%. Internal fixation and sealants was affected by a large U.S. stocking order received last year, which wasn't repeated in this period, resulting in a 4% decline in revenues to GBP 3.6 million. Encouragingly, repeat U.S. orders are now being received for shipment from October 2025, in line with expectations. Revenues from sutures, clips, and vascular temporary occlusion devices were up 283% to GBP 38.8 million due to the significant contribution from Peters Surgical that was not in the prior period.
Sales of biosurgical devices grew 40% to GBP 13 million, including a full six months of Syntacoll revenue, and strong growth in AMS collagens where manufacturing yields have improved and backorders have been resolved. Other distributed products refer to devices not manufactured by AMS, and they increased by 169% to GBP 8 million due to the significant contribution from Peters Surgical. Wound care revenues increased by 18% to GBP 22.9 million, with infection and exudate management up 26% due to strong ordering from OEM partners and improved order phasing. As expected, other wound care was down 45% as the Organogenesis royalty continues to fall away. Adjusted operating margins for surgical decreased to 20% in the first half due to the inclusion of a full six months of Syntacoll and Peters Surgical, which are both initially margin dilutive, but both having clear pathways to near-term improvement.
Syntacoll is currently around breakeven, but will soon benefit from operational synergies and U.S. launches, and Peters Surgical margins are already trending upwards, and we expect further gains as synergies flow through. For our wound care business, now that the restructuring program has been completed, revenues have recovered, and operating margins from Q2 are tracking at our target level of 10%, and this is reflected in the margin improvement seen in the first half. Exceptional items during the first half amounted to GBP 3 million, which relate to the costs of integration consultants, the project team, and other costs associated with the integration process. From the second half of 2025 until 2027, further exceptional integration costs are expected in line with previous guidance to ensure that we maximize the potential operational and commercial synergies between AMS, Peters Surgical, and Syntacoll.
U.S. tariffs have been on everyone's mind this year, and our volumes were affected in the first half when tariff rates were uncertain and at higher rates than they are now. We currently anticipate that U.S. tariffs could impact the business by GBP 1-2 million per year, based on the current tariff rates and agreements. We continue to manage our exposure to tariffs through ongoing review of contracts and optimization of the supply chain. Positive cash generation in the period enabled us to reduce net debt to GBP 50.1 million. Working capital increased by GBP 5.8 million as we continue to build inventories to support growth, to improve backorders, and ahead of a strong second half order book and to prepare for operational synergies. Contingency payments amounted to GBP 1.1 million related to the acquisitions of Peters Surgical and AFS Medical.
Final dividend, which was paid in July 2025, does not appear in the first half cash flow. We continue to make good progress on our environmental, social, and governance objectives. In the period, we've combined the net zero reporting and carbon reduction planning for AMS and Peters Surgical. We've implemented a unified ESG education program, and we've held various events, including World Health Day, World Recycling Day, and World Environment Day. Going forward, we will focus on continuing to improve employee engagement and on aligning our carbon reduction plan with the Science Based Targets initiative.
To conclude the financial part of the presentation, I believe AMS is well placed to sustain strong revenue growth and improving EBITDA margins driven by the following factors: increased end-user demand, increased proportion of sales through our direct sales teams, delivery of commercial and operational synergies, launch of new products, and further penetration into the USA and delivery of operational leverage. Although we will continue to invest in the business, we still expect to remain cash generative, with net debt of approximately one times EBITDA by the end of 2025 and approaching 0.1 times EBITDA by the end of 2027. Thank you for your attention. I'll now pass you back to Chris for his concluding remarks. In summary, the first half of 2025 has been a period of strong performance, strategic progress, and integration success for Advanced Medical Solutions.
We delivered 66% constant currency revenue growth while improving our cash position and maintaining strong profitability despite headwinds. Our confidence is underpinned by multiple drivers. LiquiBand continues to drive growth. Biosurgical performance has been strengthened by the Syntacoll integration, a restructured cash-generative wound care business, integration synergies from Peters Surgical are delivering ahead of plan, a robust pipeline of product launches with a clear U.S. focus, and a U.S. regulatory program that remains on track. Looking at current trading, momentum from key products continues into quarter three. Order books for H2 are strong, supply chain issues are being resolved, and we're seeing the benefits of our expanded geographic footprint and enhanced product portfolio. For the full year, we remain confident in meeting consensus expectations for both revenue and adjusted profit. Overall, a robust first half, strong progress on integration, and a clear path to value creation.
We're excited by growth opportunities across our portfolio, confident in our ability to deliver on our synergy targets, and committed to maintaining both financial discipline and shareholder returns. Thank you for your time today, and I'll pass back to Alex.
That's great, Chris. Eddie, thank you very much indeed for your presentation this afternoon. Could I please ask investors not to close this session, as you'll now be automatically redirected to provide your feedback in order that the board can better understand your views and expectations? This will only take a few moments to complete, and I'm sure it will be greatly valued by the company. On behalf of the management team of Advanced Medical Solutions Group Plc, we would like to thank you for attending today's presentation, and good afternoon to you all.