AMS Group sees revenue rise to £68m, buoyed by surgical unit success amidst takeover rumours
Advanced Medical Solutions (AMS) Group has reported an eight per cent increase in revenue to £68m in its interim results for the six months to 30 June, amid speculation of interest from private equity firms. The firm's surgical business unit saw strong growth, which offset "challenges" in its Woundcare unit, leading to an eight per cent rise in adjusted pretax profit to £14.8m, up from £13.8m the previous year, as reported by City AM. However, on a reported basis, pretax profit fell by over half (52 per cent) to £5.7m, a drop AMS Group attributed to "a result of significant acquisition-related exceptional items incurred in the period." In July, AMS Group completed the purchase of Peters Surgical, a provider of surgical sutures, for £120m, describing the acquisition as "transformative" and "progressing well". Earlier in the year, the group also acquired Syntacoll, a specialist manufacturer of drug-eluting collagens, bolstering its biosurgical business. "We are delighted with the progress made so far this year, having completed the acquisitions of Peters Surgical and Syntacoll and now being able to report such a strong first half performance from the AMS Surgical business unit," said Chris Meredith, CEO of AMS Group. Despite ongoing struggles in the Woundcare unit, Meredith suggested that a strategic review had identified a "pathway to improving its profitability". The company, based in Wilmslow, Cheshire, has projected that its revenue and adjusted profit will align with its expectations. Following these results, the firm increased its dividend to 0.77p from 0.70p last year. The business, which specialises in the development and manufacturing of tissue-healing technology, has reportedly caught the eye of private equity firm Inflexion, as per Sky News.
Crafting company Katy Sue Designs looks to future after return to full ownership
The founder of North East craft company Katy Sue Designs has returned the firm to her full ownership after buying out its investor. Katy Sue Designs was launched 30 years ago by Sue Balfour and her mother Doreen Thompson, who started out by creating miniature porcelain dolls on their kitchen table to sell to collectors. Over the years the business has diversified to sell a range of cake decorating, card making and craft supplies, including silicone cake moulds which have appeared on TV cookery shows including The Great British Bake Off. The firm’s products, all of which are designed and made at the firm’s base in South Shields, are now exported to countries around the world, having seen its overseas sales rocket over the last few years, since sealing investment from serial entrepreneur Neil Stephenson. Six years ago Ms Balfour brought on board Mr Stephenson as chairman and shareholder, as well as digital entrepreneurs Gary Hunter and Sam Morton, to develop its sales channels and increase US product sales. Ms Balfour said that, over the past six years, Katy Sue Designs has experienced tremendous growth, with 20% of the company’s revenue now coming from exports, a figure set to increase as the business continues its international expansion. Earlier this year, the company was highly commended by the UK Government in the Department for Trade and Industries ‘Made in the UK, Sold to the World’ Awards, recognising its excellence in exporting. Ms Balfour, CEO of Katy Sue Designs, said: “I want to express my heartfelt thanks to Neil Stephenson for his incredible support over the last six years. Neil, along with my early investors Gary Hunter and Sam Morton, believed in me and in Katy Sue Designs when I was looking to grow the business. In particular Neil helped me think differently and with that guidance, we have grown the business into what it is today – a global success with customers in every corner of the world. “This buyout marks a significant milestone, not only for the business but also for me personally. It allows me to fulfil some long-standing personal goals, and I am incredibly excited for the future of Katy Sue Designs. With two new members of staff joining our team in October to support our continued growth, the future is brighter than ever.”
40 new Tyneside jobs created as Curtis Instruments launches new base
An American tech firm is creating more than 40 skilled jobs in the North East through the launch of a new research and development hub. Curtis Instruments, a New York-based off-highway electric vehicle technology business, has operations around the globe including a manufacturing plant in Northampton. The company, established in 1960, designs and manufactures instrumentation for all manner of electric vehicles, including industrial vehicles such as sweepers, golf carts, wheelchairs and scooters, as well as ground support vehicles for airports. Now the business has picked South Tyneside to be the location for its newest R&D hub, which is also its fifth innovation centre worldwide. The company has officially opened the Stuart E. Marwell Engineering Centre, which is named after the company’s president and CEO, who has led the organisation for the last 40 years. The new centre is based in the 33,000 sq ft former Siemens building in Hebburn, South Tyneside, joining the firm’s other global innovation centres in California, New York, Switzerland, and China. Initially, it will be home to 40 skilled engineers, but the firm said it has plans to create many more roles in the coming years. Howard Slater, director of engineering at Curtis Instruments UK, said: “I am immensely proud that Curtis Instruments UK has been chosen to establish the company’s fifth global R&D hub. Since joining in 2019 to set up the UK engineering team, we’ve grown year-on-year while working from multiple sites. This dedicated R&D facility allows us to bring our team together under one roof, boosting productivity and ensuring our role in advancing the EV technologies of the future.” The company said it selected South Tyneside for its skilled workforce, excellent transport links, and proximity to five top-tier universities. Mr Slater added: “The North East of England already boasts a robust cluster of advanced engineering firms pioneering electric vehicle technology. This provides access to skilled professionals and established supply chains. The location also supports our ability to attract top talent, drawing from graduates from universities like Newcastle, Durham, Northumbria, Sunderland, and Teesside. The high quality of life and excellent transport infrastructure make South Tyneside the perfect choice for this significant investment.”
Lotus Bakeries reports booming profits in UK, credits diverse product collaborations and market expansion
Lotus Bakeries' UK arm, famous for the Lotus Biscoff biscuits, has reported a sales surge in its latest financial filings. Based in Cheshire, the company witnessed a turnover increase to £75.8 million at the close of the year ending December 31, 2023, which is an ascent from the previous year's £63.3 million, as reported by City AM. Correspondingly, there was a climb in pre-tax profits, reaching £19.1 million compared to the £13.3 million seen in 2022. During this period, the directors declared dividends worth £10.5 million, which represented a dip from the earlier year's distribution of £27.5 million. The strong performance, as per the company, can be credited to continued investment in diversifying its product offerings, which helped navigate through "challenging circumstances" such as the soaring inflation and the pervasive energy crisis. Other than its iconic Biscoff brand, Lotus also has ownership over snackbar brands Nakd and Trek. These have thrived over the past half-decade with notable collaborations including those with Kitkat, McDonalds McFlurries and various candle manufacturers. Since 2018, the workforce at the UK division has expanded from nine to 15 members. Globally, the Lotus parent entity in Belgium has mirrored the UK growth, reporting group revenue topping €1 billion (£843 million) for 2023, marking a 21% growth compared to the year before. The company attributed its success to its geographical expansion, with its products now available in over 60 countries worldwide. It stated: "In the last few years, we achieved strong growth in big consumer markets, including the United States, the United Kingdom, China, South Korea, Germany, Spain, Italy, Canada, Japan and Australia." "The geographical expansion of Lotus Biscoff is the primary pillar of growth, with plenty of further potential." "In numbers, we're talking about an average yearly growth over the past 10 years of around 16 per cent." " To keep up with increasing demand, it is necessary to continue investing in expanding our production capacity."
Hygiene products firm Essity hails profitable growth across third quarter
Toilet roll and hygiene products maker Essity says it has boosted profitability despite a dip in sales. The Swedish-owned business which has sites across the North of England and Wales published third quarter results which show net sales fell 2.2% to SEK 36.27bn (£2.6bn) as profit for total operations grew to SEK 3.32bn (£242.7m). Meanwhile, Ebitda jumped 47% to SEK 5.1bn (£374m). Essity employs more than 1,200 people across sites in Northumberland, Manchester and Hull, among others, and said all of its business areas had contributed to profitable growth with higher volumes, price discipline and higher sales prices helped the performance. Bosses said they had generated about SEK 1bn (£7.29m) savings through efficiency improvements. CEO Magnus Groth said: "Growth was strong in health and medical, especially in Europe and Latin America. Our TENA Pants in Incontinence Products Health Care continued to drive both volume and higher margins and it is gratifying to see that the products are appreciated by both caregivers and patients. Growth was also particularly high in wound care products under our Leukoplast and Cutimed brands. "We continued to gain market share in consumer goods, a result of our long-term work on innovation combined with investments in marketing. Growth was strong in Europe, but the development was also favourable in Latin America. In professional hygiene, growth was affected by restructuring, but underlying growth was strong, especially in the premium range." Lee Doherty, vice president of Consumer Goods UKI & MEA at the firm, said: "Essity is in better shape than ever. Globally we are seeing market share gains and higher volumes which are delivering profitable growth for the company. Pleasingly in Q3 2024 our 2050 net zero goals were validated by Science Based Targets initiative (SBTi) which demonstrates our commitment and action on sustainability.
70 years in Post
"For the times they are a-changin'", sang Bob Dylan. And while that may be true across Birmingham's skyline, political landscape and even football fortunes, one thing will always remain a constant - Russell Luckock's weekly column in the Post newspaper. Today marks the 70th anniversary of the first time Russell appeared in the then daily Birmingham Post when it published an article and photo he had taken of the Leptis Magna roman ruins in Libya on September 24, 1954. He had been stationed in the nation's capital Tripoli during a spell with the British Army and has stayed connected with the Birmingham Post ever since, including penning a regular column for the past 35 years. Having celebrated his 90th birthday in August, Russell has been able to reflect on a life well lived and in particular this past decade which has seen him do battle with Brexit and Covid-19. But perhaps most significantly, he ended his relationship with AE Harris in 2021, the historic pressings and component firm founded by his grandfather Howard in 1880. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. Speaking from his home in Barnt Green, he says the company, like he, is now embarking on a fresh chapter having undergone two management buyouts and moved to a new factory in West Bromwich in 2020 after 56 years in Northwood Street. That site in the city's Jewellery Quarter is being regenerated for a new residential-led project called St Paul's Quarter. So how has he seen the past decade in business? A fervent Brexit supporter, he expresses frustration that he feels the nation is yet to realise the benefits of leaving the European Union. "I have always very much been pro-Brexit and believe we should be fully competent to look after our affairs", he said. "You would have thought that a Tory government would have been able to utilise the financial benefits in a much better way than it has done which is a great sadness. "I hope we never think about such a thing (re-joining the EU) again. I dealt with continental customers and also was an adviser to Brussels in relation to the manufacture of component parts. "It was a nightmare, the European economic community is an institution which is expert at creating red tape." AE Harris stayed active during the Covid-19 pandemic but Russell described that time as akin to "wandering around in a fog without the necessary knowledge and preparation to handle a pandemic". "We did a lot of silly, stupid things which in retrospect we should not have done and we are bound to get other pandemics in the years to come." Known for his distinctive mutton chops, Russell was born in Selly Oak on August 23, 1934 and joined the family business "for a fortnight" in 1955 on the shop floor before going on to become its long-serving chairman nine years later and staying until he was well into his 80s. He remains active as ever, helping his family with their ventures including a business in Scotland which plants trees across 2,300 acres of land where they are also in talks with developers about new wind farms. It is an impressive longevity considering he was advised by doctors to retire almost 50 years ago because of kidney problems and was also told in the early 1990s that he would be consigned to a wheelchair because of severe osteoporosis. He was a regular contributor to the Post on business and manufacturing matters before being invited to write a weekly column and still contributes now to other media including Sky News. His time is also split between his Worcestershire base and a second home in Devon and his recent birthday celebrations raised almost £2,000 for Hope Cove Life Boat charity. Capping this off is a busy family life, led by a heavy female influence with three daughters, six granddaughters, three great granddaughters and a solitary grandson. So what of the next decade? Russell remains upbeat about his true business love, the city's manufacturing and engineering sector, and says he believes we will see at least two terms of a Labour government. He is also passionate about the NHS and recently rejoined The Robert Jones and Agnes Hunt Orthopaedic Hospital in North Shropshire for a second term as a governor. "Keir Starmer has said it will take ten years to fix the National Health Service. He's probably right," he said. Russell added: "I believe that, as a country, if industry is given half a chance then we can wash our faces, make an impact, we can develop trade with our expertise. "But it is absolutely essential the Government commits itself to looking to develop and increase the manufacturing percentage of the gross domestic product. Maggie Thatcher unfortunately believed in a service industry economy. "I don't. I believe that, especially in Birmingham and the West Midlands with its complexity of different trades and vast amounts of knowledge, the opportunities are there if we're given half a chance. "But there's so much red tape. When I was running the factory it was a constant battle with planners if we wanted to expand or develop or modify. "I am optimistic about British manufacturing if the Government has the slightest intention of developing the base. "They talk about it but do nothing. We are battling in the world with one hand behind our back due to our exorbitant power prices and the cost of raw materials, most of which has to be imported." And finally, Russell celebrated his 67th wedding anniversary to wife June this year so what is the secret to an incredibly long and happy marriage?