15 September 2021

 

 

Advanced Medical Solutions Group plc

(“AMS” or the “Group”)

 

Interim Results for the six months ended 30 June 2021

 

 

Winsford, UK, 15 September 2021: Advanced Medical Solutions Group plc (AIM: AMS), the surgical and advanced woundcare specialist company, today announces its unaudited interim results for the six months ended 30 June 2021 (the “Period”).

 

 

Financial Highlights:

 

 

 

	H1 2021	H1 2020	Reported change	Change at constant currency¹
Revenue (£ million)	50.2	39.3	28%	31%
Adjusted Measures
Adjusted² profit before tax (£ million)	12.4	5.3	133%
Adjusted² profit before tax	24.6%	13.5%	11.1pp
Adjusted² diluted earnings per share (p)	4.64	2.16	115%
Reported Measures
Profit before tax (£ million)	11.2	4.3	163%
Profit before tax	22.3%	10.8%	11.5pp
Diluted earnings per share (p)	4.10	1.68	144%
Net operating cash flow (£ million)	13.7	8.8	55%
Net cash3 (£ million)	61.1	67.9	-10%
Interim dividend per share (p)	0.58p	0.50p	16%

 

 

 

Business Highlights (including post period end):

 

AMS is pleased to report interim results slightly ahead of the trading update of 7 July 2021 with strong revenue growth, profitability and cash generation despite the residual impacts of COVID-19. The Group made significant regulatory and clinical progress in the Period and continued to invest in developing next-generation products.

 

·      Revenue increased to £50.2 million (2020 H1: £39.3 million) as the impact of COVID-19 continues to reduce and many key markets rebuild towards more routine levels of elective surgery. This represents an increase of 28% on a reported basis and 31% on a constant currency¹ basis

 

·      The Group reports a 133% increase in adjusted profit before tax to £12.4 million (2020 H1: £5.3 million) with a significant improvement in operational leverage resulting from the increased sales volumes

 

·      Net cash increased to £61.1 million from a year-end position of £53.8 million (2020 H1: £67.9 million) driven by improved trading and good operational cash flow

 

·      Investment in R&D increased to £4.4 million (2020 H1: £3.8 million), representing 8.7% of revenue, as progress was made on key projects across the Group

 

·      The US clinical trial to support the Premarket Approval (PMA) for LiquiBandFix8^® continues to progress well with patient procedure volumes now sufficient to prepare and submit the PMA clinical module. FDA filing for the device is on track for 2022

 

·      The LiquiBand^® XL 510(k) application was submitted in the Period with approval expected by the end of 2021

 

·    As previously announced, Seal-G^® and Seal-G^® MIST were awarded CE marks and the first human clinical trials commenced for both products in the Period. Interim study results are expected in early 2022 to support the full commercial European launch planned for 2022

·      Good progress was made in integrating Raleigh, acquired in November 2020. Revenues continue to perform in line with initial expectations and it is expected to be earnings enhancing in 2021

 

·      Given the Group’s strong net cash position and reflecting the Board’s continued confidence in the future, the interim dividend is increased to 0.58p per share (2020 H1: 0.50p)

 

·      Post period end – Chris Locke was appointed as Chief Technology Officer and Douglas Le Fort was appointed as Independent Non-Executive Director

Commenting on the interim results, Chris Meredith, Chief Executive Officer of AMS, said: “I am pleased to report the continued growth of the business as demand returns towards pre-pandemic levels. During the Period, AMS delivered strong revenue growth, profitability and cash generation, alongside significant regulatory and clinical progress in developing the next generation of innovative products that we expect to drive further growth over the coming years. AMS is in robust financial health to deliver organic and acquisitive growth, and reflecting the confidence of the Board, the interim dividend is being increased for the half year. The addition of Chris Locke and Douglas Le Fort to our team adds considerable R&D and commercial experience that will be valuable as we deliver on our significant growth opportunities.“

– End –

 

Notes

1     Constant currency adjusts for the effect of currency movements by re-translating the current period’s performance at the previous period’s exchange rates

2     Adjusted profit before tax is shown before exceptional items which, in 2021 H1 were £nil (2020 H1: £nil), before amortisation of acquired intangible assets which, in 2021 H1, were £1.6 million (2020 H1: £1.1 million) and change in long-term liabilities credit of £0.4 million (2020 H1: credit of £0.03 million) as defined in the financial review. Adjusted operating margin is shown before exceptional items and amortisation of acquired intangible assets.

3     Net cash in 2021 H1 was £61.1 million (2020 H1: £67.9 million) defined as cash and cash equivalents of £61.1 million (2020 H1: £68.4 million) plus short-term investments less financial liabilities and bank loans in 2021 H1 of £nil (2020 H1: £0.5 million)

 

 

 

For further information, please contact:

 

Advanced Medical Solutions Group plc	Tel: 44 (0) 1606 545508
Chris Meredith, Chief Executive Officer Eddie Johnson, Chief Financial Officer Michael King, Investor Relations Manager
Consilium Strategic Communications	Tel: 44 (0) 20 3709 5700
Mary-Jane Elliott / Matthew Neal / Matthew Cole
Investec Bank plc (NOMAD) & Broker	Tel: 44 (0) 20 7597 5970
Daniel Adams / Gary Clarence / Patrick Robb

 

 

 

About Advanced Medical Solutions Group plc

 

AMS is a world-leading independent developer and manufacturer of innovative and technologically advanced products for the global surgical and woundcare markets, focused on quality outcomes for patients and value for payers. AMS has a wide range of surgical products including tissue adhesives, sutures, haemostats, internal fixation devices and internal sealants, which it markets under its brands LiquiBand^®, RESORBA^®, LiquiBandFix8^® and Seal-G^®. AMS also supplies wound care dressings such as silver alginates, alginates and foams through its ActivHeal^® brand as well as under white label. In 2019, the Group made two acquisitions: Sealantis, an Israeli medical device company with a patent-protected sealant technology platform; and Biomatlante, an established developer and manufacturer of innovative surgical biomaterial technologies based in France. In 2020, the Group acquired Raleigh Adhesive Coatings, a leading coater and converter of materials predominately for woundcare and bio-diagnostics products based in the UK.

AMS’s products, manufactured in the UK, Germany, France, the Netherlands, the Czech Republic and Israel, are sold globally via a network of multinational or regional partners and distributors, as well as via AMS’s own direct sales forces in the UK, Germany, the Czech Republic and Russia. The Group has R&D innovation hubs in the UK, Germany, France and Israel. Established in 1991, the Group has more than 700 employees. For more information, please see www.admedsol.com.

 

Chief Executive’s Review

 

Surgical Business Unit

 

The Surgical Business Unit includes tissue adhesives, sutures, biosurgical devices and internal fixation devices marketed under the AMS brands LiquiBand^®, RESORBA^® and LiquiBandFix8^®.

 

The ongoing recovery of global elective surgery volumes drove significant revenue growth in the Surgical Business Unit but demand remains below pre-pandemic levels as COVID-19 continues to impact surgical volumes and hospital access, restricting business development activities in all categories. Revenue increased by 42% in the Period to £30.4 million (2020 H1: £21.4 million) and by 45% on a constant currency basis.

 

Surgical Business Unit	2021 H1 £’000	2020 H1 £’000	Reported Growth	Growth at constant currency
Advanced Closure	15,194	8,875	71%	79%
Internal Fixation and Sealants	1,193	967	23%	23%
Traditional Closure	7,265	6,188	17%	18%
Biosurgical Devices	6,725	5,398	25%	24%
TOTAL	30,377	21,428	42%	45%

 

Advanced Closure

LiquiBand^® is a range of topical skin adhesives, incorporating medical grade cyanoacrylate in combination with purpose-built applicators. These products are used to close and protect a broad variety of surgical and traumatic wounds.

 

Advanced Closure	2021 H1 £’000	2020 H1 £’000	Reported Growth	Growth at constant currency
Americas	10,372	5,094	104%	117%
UK/Germany	2,846	1,956	46%	45%
Rest of World	1,976	1,825	8%	9%
TOTAL	15,194	8,875	71%	79%

 

Revenues increased to £15.2 million (2020 H1: £8.9 million) representing growth of 71% on a reported basis and 79% on a constant currency basis.

 

US LiquiBand^® growth was especially strong driven by increased end sales demand and by the Group’s partners now replenishing inventory levels that were reduced during the COVID-19 crisis. Sales of LiquiBand^® Rapid, our new accelerated Topical Skin Adhesive technology, continue to grow despite the challenges of COVID-19, including the first major Integrated Delivery Network (IDN) conversion with this technology.

 

The 510(k) for LiquiBand^® XL was submitted to the FDA in the Period and the product remains on schedule for approval by the end of the year. Approval would provide access to a new $50 million market and unlock further growth potential in the LiquiBand^® business with all partners.

 

The Group has also continued to leverage the LiquiBand^® brand in new geographies and has selected a partner in India following approval in 2020, with launch shipments due to be made in the second half of 2021.

 

 

Internal Fixation and Sealants

LiquiBandFix8^® is used to fix hernia meshes placed inside the body with accurately delivered individual drops of cyanoacrylate adhesive, instead of traditional tacks and staples. Revenues increased by 23% to £1.2 million (2020 H1: £1.0 million) with demand continuing to improve despite remaining heavily suppressed in comparison to pre-pandemic levels, reflecting the non-essential nature of the majority of hernia surgery.

 

The US clinical trial for LiquiBandFix8^® continues to progress well with completed patient procedure volumes now sufficient to prepare and submit the clinical module and Premarket Approval (PMA) filing on track for 2022 after the 12-month patient follow-up. AMS continues to be excited about the long-term prospects for the LiquiBandFix8^® portfolio with entry into the US being a significant milestone for the Group.

 

In the Period, AMS obtained CE mark approval for Seal-G^® MIST (laparoscopic surgery) and expanded the CE mark for Seal-G^® (open surgery) to include a colourant to aid surgeon visibility. In addition, the Group started the first human clinical trials for both products with interim study results expected in early 2022. First commercial sales are expected in H2 2021 ahead of full European commercial launch in 2022 to be supported by clinical study results. Key Opinion Leader feedback continues to be very positive and AMS remains confident that the device is a good solution to the high unmet patient need for an effective GI sealant.

 

Traditional Closure

RESORBA^® branded Absorbable and Non-absorbable Suture ranges are used in general surgery and a wide range of surgical specialties including dental and ophthalmic surgery. Revenue increased by 17% to £7.3 million and by 18% at constant currency (2020 H1: £6.2 million).

 

To enhance its competitive edge in the tendering process, AMS continues to develop line extensions to complement its range of specialist products. It has recently expanded its suture portfolio by adding ranges with self-anchoring barbed needles and also with special needles optimised for cardio-vascular surgery. Both products were soft launched in June 2021.

 

Biosurgical Devices    

The Biosurgical Devices category comprises antibiotic-loaded collagen sponges, collagen membranes and cones, oxidised cellulose, synthetic bone substitutes and bio-absorbable screws. Revenues increased by 25% to £6.7 million (2020 H1: £5.4 million) and by 24% at constant currency.

 

Included within Biosurgical Devices are revenues for Biomatlante, which increased by 20% to £2.0 million in the Period incorporating sales of the new RESORBA^® branded bone substitutes range in Germany, the Czech Republic and elsewhere.

 

Antibiotic-loaded collagens, used to locally deliver antibiotics and significantly reduce the catastrophic risks that can be caused by severe localised infections, are a key part of our biosurgical portfolio. Gentamycin loaded collagen is sold under CE mark in Europe and Vancomycin loaded collagen is sold at low volumes via prescription in Germany. AMS has extended the CE mark for Gentamycin under the Medical Devices Directive (MDD) and is progressing with the work required for Medical Device Regulation (MDR) approval and also is exploring avenues for potential US certification which would require Premarket Approval. In addition, the Group is progressing with MDR submission work to obtain a CE mark for Vancomycin that would enable broader promotion and sales.

 

Furthermore, the Group is exploring the new FDA Breakthrough Device designation as a mechanism for obtaining US approval for the Group’s antibiotic-loaded collagen pacemaker pouch, also currently sold at very low levels via prescription in Germany.

 

AMS is also working towards its first collagen approval in the US with a 510(k) submission expected in 2022 for a dental application which supports haemostasis and healing following tooth extraction.

 

The Group’s newly developed freeze-dried bone substitute (FDBS), which can be mixed with fluids and moulded for optimal placement in orthopaedic and spine surgery, is expected to open up longer-term opportunities for the Group relating to the addition of active ingredients such as platelets, stem cells or synthetic peptides. US approval with limited indications is expected in 2022 with additional claims in the US and European approval under MDR expected to follow in the coming years.

 

Woundcare Business Unit

The Woundcare Business Unit is comprised of the Group’s multi-product portfolio of advanced woundcare dressings sold under its partners’ brands and the ActivHeal^® label, plus a portfolio of specialist medical bulk materials including multi-layer woundcare and bio diagnostics products following the acquisition of Raleigh in late 2020.

The Woundcare Business Unit delivered growth as global wound treatment volumes gradually recover towards pre-pandemic levels despite some business development activities continuing to be impacted by COVID-19 restrictions. Revenue increased by 11% in the Period to £19.8 million (2020 H1: £17.9 million) and by 14% on a constant currency basis.

Woundcare Business Unit	2021 H1 £’000	2020 H1 £’000	Reported Growth	Growth at constant currency
Infection Management	6,724	7,281	(8%)	(5%)
Exudate Management	10,011	7,205	39%	41%
Other Woundcare	3,091	3,368	(8%)	(3%)
TOTAL	19,826	17,854	11%	14%

 

Infection Management

The infection management category comprises advanced woundcare dressings that incorporate antimicrobials such as Silver and Polyhexamethylene Biguanide (PHMB). Revenue reduced by 8% on a reported basis and by 5% on a constant currency basis to £6.7 million (2020 H1: £7.3 million).

 

As previously reported, an exclusive five-year agreement for one of the Group’s silver alginates was not initially extended at December 2020 which impacted sales in the Period. AMS is now pleased to report that a new five-year contract has been agreed that provides ongoing supply for this customer’s demand. This new agreement also allows AMS to promote the product directly in many markets which has already resulted in the Group securing new business. In the short term, the Group expects to record lower revenues in comparison to the annual minimum of the previous contract. In the medium term, the Group expects the combined value from direct sales and sales to the partner to return to historical levels.

 

In the Period, AMS obtained enhanced 510(k) approval for our Silver High Performance Dressing, incorporating an anti-microbial indication which is important for commercial success. This patent-protected technology provides the potential for deeper penetration into the US antimicrobial gelling fibre market and the Group is in discussions with interested strategic partners.

 

Existing partners’ sales of Moisture Wicking Fabric, used to manage skin fold issues, have temporarily been restricted by COVID-19. However, a number of new partners have indicated interest in the product which will also be marketed on a ‘direct to patient’ basis in the US on Amazon.com from around the end of 2021.

 

AMS continues to invest in its R&D pipeline which includes an antimicrobial high gelling product with anti-biofilm activity, which is expected to launch in the US in 2022.

 

Exudate Management

Exudate management comprises advanced woundcare dressings and gels which do not incorporate any antimicrobial elements. Revenue increased by 39% on a reported basis and 41% on a constant currency basis to £10.0 million (2020 H1: £7.2 million) which incorporated £2.8 million of Raleigh sales (2020 H1: £ nil).

 

Following the acquisition of Raleigh, the AMS and Raleigh woundcare teams have worked closely together to evaluate commercial opportunities for Raleigh products as well as actively progressing the in-sourcing of elements of the woundcare manufacturing process which are expected to start to deliver cost savings for the Group from early 2022.

 

AMS has continued to appoint new distribution partners in markets where its key partners have no or low presence but the demand for a high quality, cost effective wound care dressing range still exists. Several new contracts have been signed in the first half of the year, in particular in Africa and Asia, expanding the Group’s branded distribution network, with launches planned in the second half of the year and into 2022 that are expected to drive significant growth in the next few years.

 

For some time, AMS has been developing a customer-specific negative pressure dressing which is now due for 510(k) submission by our partner in late 2021 ahead of anticipated commercial launch in 2022. The Group sees considerable medium term potential in the negative pressure wound treatment space, especially given our significantly increased internal expertise in this area following the appointment of Chris Locke.

 

 

Other Woundcare

Other Woundcare comprises royalties, fees and woundcare sealants. Revenue decreased by 8% at reported currency and by 3% at constant currency to £3.1 million (2020 H1: £3.4 million) due to low partner demand for membranes.

 

In the Period, AMS obtained CE mark approval for its Mechanical Debridement product and successfully listed the product with the FDA for the US market and are currently assessing commercial opportunities.

 

New Skin Scaffold development

AMS has applied its Biosurgical, collagen technology into developing a tissue scaffold designed to treat hard to heal and stalled wounds such as diabetic foot ulcers and venous leg ulcers. A 510(k) submission to the FDA is nearing completion which is targeted for 2022 and the Group is in the process of developing the optimal commercial strategy.

 

Regulatory

Significantly ahead of the 2024 deadline, AMS obtained its first two Medical Devices Regulation (MDR) certificates in the Period. The Group remains well prepared for the stricter requirements on product safety and performance, clinical evaluation and post-market clinical evidence stipulated by MDR and further submissions and approvals are anticipated in the coming months.

 

The Group’s extensive preparations leave it well placed to exploit opportunities that will undoubtedly arise in Europe in the next few years during the implementation of MDR.

 

Supply Chain / Brexit

Having completed comprehensive preparations for Brexit, the Group did not experience any significant disruption in early 2021 following the end of the transition period at December 2020. However, like many other businesses across all sectors globally, AMS has recently experienced some supply chain disruptions due to haulier shortages and transportation delays caused by the combination of COVID-19 and Brexit. During this period of disruption, the Group is reviewing its stockholding levels and expects to incur increased freight and raw material costs. To date there has not been a material impact, however, we are monitoring this situation very closely and continue to evaluate all options.

 

Summary and outlook

AMS delivered strong revenue growth, profitability and cash generation in the first half of 2021, along with an increased dividend, driven by good underlying performance and the reducing impact of COVID-19 on elective surgery volumes. The Group made significant regulatory and clinical progress in the Period as it continues to increase its investments in developing next-generation products.

 

AMS expects the improving trend in elective surgery and wound treatment volumes to continue in the second half of 2021 and into 2022, despite the presence of the COVID-19 Delta variant in key markets. However, the pace of recovery for different types of surgical procedures and the potential impact of any new COVID-19 variants in our key markets remains difficult to predict. Nevertheless, we have enjoyed a strong third quarter of the year, in particular with order coverage into the US ahead of our internal forecasts, placing us in a strong position to secure demand for our full-year forecast.

 

The strong underlying performance of the business, together with key R&D initiatives and innovative product launches, the US LiquiBand^® recovery plan and the Group’s strong financial position, mean that AMS is well placed for continued growth over the second half of 2021 and beyond.

 

Financial Review

 

IFRS reporting

To provide the clearest possible insight into our performance, the Group uses alternative performance measures. These measures are not defined in International Financial Reporting Standards (IFRS) and, therefore, are considered to be non-GAAP (Generally Accepted Accounting Principles) measures. Accordingly, the relevant IFRS measures are also presented where appropriate. AMS uses such measures consistently at the half-year and full-year and reconciles them as appropriate. The measures used in this statement include constant currency revenue growth, adjusted operating margin, adjusted profit before tax and adjusted earnings per share, allowing the impacts of exchange rate volatility, exceptional items, amortisation and the change in fair value of long-term liability to be separately identified. Net cash is an additional non-GAAP measure used.

 

Overview

Revenue increased by 28% at reported currency and 31% at constant currency to £50.2 million (2020 H1: £39.3 million).

 

Administration expenses decreased marginally to £16.5 million (2020 H1: £16.9 million) inclusive of foreign exchange movements despite higher amortisation of intangibles. The Group incurred £4.4 million of gross R&D spend in the period (2020 H1: £3.8 million), representing 8.7% of sales (2020 H1: 9.6%) which reflects an ongoing investment in innovation and in accommodating the heightened regulatory environment.

 

No exceptional costs have been incurred in the six-month period (2020 H1: £nil).

 

Amortisation of acquired intangible assets was £1.6 million in the six-month period (2020 H1: £1.1 million) due to the effect of the acquisition of Raleigh in November 2020.

 

Adjusted operating profit which excludes amortisation of acquired intangibles and exceptional costs, increased by 130.4% to £12.7 million (2020 H1: £5.5 million) whilst the adjusted operating margin increased by 1,120 bps to 25.2% (2020 H1: 14.0%) due to the negative impact of the COVID-19 pandemic on the Group’s revenues in the prior period.

 

£0.4 million was recorded within finance income due to the change in long-term liabilities recognised on acquisition of Sealantis in 2019 (2020 H1: £0.03 million).

 

The Group generated adjusted profit before tax of £12.4 million (2020 H1: £5.3 million) and profit before tax of £11.2 million (2020 H1: £4.3 million).

Reconciliation of profit before tax to adjusted profit before tax
	Six months ended	Six months ended
	30 June 21	30 June 20
	£’000	£’000
Profit before tax	11,193	4,260
Amortisation of acquired intangibles	1,587	1,074
Change in long-term liabilities	(407)	(29)
Adjusted profit before tax	12,373	5,305

 

 

The Group’s effective corporation tax rate, reflecting the blended tax rates in the countries where we operate and including UK patent box relief, increased to 20.2% (2020 H1: 14.4%). The increase on the previous period has arisen as the Group was able to retrospectively claim for patent box relief as a result of the granting of patents on LiquiBand^® Exceed in the first half of 2020. Additionally, the substantive enactment of the higher tax rate in the UK from April 2023 has increased the valuation of the deferred tax liability and contributed an additional 3.0 percentage points to the effective tax rate.

 

Adjusted diluted earnings per share increased by 115% to 4.64p (2020 H1: 2.16p) and diluted earnings per share increased by 144% to 4.10p (2020 H1: 1.68p) reflecting the Group’s increased earnings.

 

The Board intends to pay an interim dividend of 0.58p per share on 22 October 2021 to shareholders on the register at the close of business on 24 September 2021. This is a 16% increase on the interim dividend paid in respect of the first half of 2020 reflecting the Board’s confidence in the future growth in the Group.

 

 

Operating result by business segment
Six months ended 30 June 2021	Surgical	Woundcare
	£’000	£’000
Revenue	30,377	19,826
Profit from operations	8,854	2,543
Amortisation of acquired intangibles	1,001	586
Adjusted profit from operations4	9,855	3,129
Adjusted operating margin4	32.4%	15.8%
Six months ended 30 June 2020
Revenue	21,428	17,854
Profit from operations	1,951	2,779
Amortisation of acquired intangibles	1,069	5
Adjusted profit from operations4	3,020	2,784
Adjusted operating margin4	14.1%	15.6%

 

 

⁴ Adjusted for amortisation of acquired intangible assets

 

Table is reconciled to statutory information in note 5 of the financial information.

 

Surgical

Surgical revenues increased by 42% to £30.4 million (2020 H1: £21.4 million) at reported currency and 45% at constant currency. Adjusted operating margin increased by 1,830 bps to 32.4% (2020 H1: 14.1%) as higher sales allowed the Group to achieve greater operational leverage compared with the previous period.

 

Woundcare

Woundcare revenues increased by 11% to £19.8 million (2020 H1: £17.9 million) at reported currency and by 14% at constant currency. Adjusted operating margin increased by 20 bps to 15.8% (2020 H1: 15.6%) as the general recovery was partially offset by reduced Silver Alginate volumes.

 

Currency

The Group hedges significant currency transaction exposure by using forward contracts, and aims to hedge approximately 80% of its estimated transactional exposure for the next 12 to 18 months. In the first half of the year, approximately one third of sales were invoiced in Euros and approximately one quarter were invoiced in US Dollars.

 

The Group estimates that a 10% movement in the £:US$ or £:€ exchange rate will impact Sterling revenues by approximately 3.1% and 3.0% respectively and in the absence of any hedging this would have an impact on the Group operating margin of 2.6% and 0.2% percentage points respectively.

 

Cash Flow

Net cash inflow from operating activities increased by 55% to £13.7 million (2020 H1: £8.8 million) as a result of the Group’s increased profitability.

 

At the end of the period, the Group had net cash of £61.1 million (31 December 2020: £53.8 million).

 

In the first half of 2021, receivables increased by £1.5 million due to higher sales (2020 H1: £11.9 million decrease) with debtor days at 50 (2020 H1: 43 days) and payables reduced by £1.8 million (2020 H1: £1.1 million decrease) with creditor days at 31 (2020 H1: 30 days). Inventory decreased to 5.5 months of supply in the period (2020 H1: 6.7 months of supply).

 

In the period, we invested £2.8 million in capital equipment, R&D and regulatory costs including investment in converting and packaging machines (2020 H1: £2.4 million).

 

Tax payments decreased to £1.9 million (2020 H1: £3.3 million) which is £0.3 million lower than tax in the income statement due to the timing of payments on account. The prior period included accelerated payments on account in the UK, resulting in a higher cash outflow than in the current period.

 

In June 2021, the Group paid its final dividend for the year ended 31 December 2020 of £2.6 million (2020 H1: £2.3 million).

 

The Group has an unsecured, undrawn £80 million, multi-currency credit facility provided jointly by HSBC and NatWest, which is in place until December 2022. This facility carries an annual interest rate of LIBOR or EURIBOR plus a margin that varies between 0.60% and 1.70% depending on the Group’s net debt to EBITDA ratio.