Advanced Medical Solutions Group plc (AMS) £0.95

Advanced Medical Solutions Group plc provide advanced wound-care dressings sold globally (a $20 billion market). By next year they will have paid off their debt and will then be looking for acquisitions. Could this improve their growth potential? They have 2 years of negative EPS – a slow trader can accept one year – however, for AMS it was in the initial years and they have still managed 82% consistency of growth. Tax to income would normally be 20% to 30% paid. AMS has been negative tax, rising just recently to 9%. Next year (financial year end for AMS is December) we would expect a higher tax. Operating margin, before tax, 23%. They showed 22% operating margin at the mid-year point.

Share price climbed rapidly from 90p to £3.11 in 1997. That was followed by a fast drop to 60p where they remained until 2007. Now at 95p can they move forward? If so, their tide chart is up. Maybe a good buy time.

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