Advanced Medical Solutions Group plc
Annual Report and Accounts 2011
A year of progress 
and delivery Advanced Medical Solutions Group is a 
global medical device business providing 
innovative products and brands in the areas 
of Accelerating healing and managing 
wounds, Minimising adverse surgical 
outcomes and Sealing and closing tissue.
Company Overview 
1 Financial Highlights
1 Business Highlights
2 Our value chain
4 Our brands
6 Partnership solutions
8 Innovation and product pipeline
Business Review
10 Chairman’s Statement
12 Chief Executive’s Statement
15 Financial Review
18 Q&A RESORBA® acquisition
19 Directors
20 Management Team
Corporate Governance
21 Advisors
22  Corporate Governance 
Standing Committees
23 Directors’ Report
27 Remuneration Report
30  Corporate Governance  
Report
32 Independent Auditor’s Report
Financial Statements
33  Consolidated Income 
Statement
33  Consolidated Statement of 
Comprehensive Income
34  Consolidated Statement of 
Financial Position
35  Consolidated Statement of 
Changes in Equity
36  Consolidated Statement of 
Cash Flows
37  Notes Forming Part of the 
Consolidated Financial 
Statements
65 Company Balance Sheet
66  Notes Forming Part of the 
Company Financial Statements
69 Five Year Summary
70 Notice of Meeting
Contents Company Overview Business Review Corporate Governance Financial Statements
1 Advanced Medical Solutions Group plc Annual Report 2011
  
£2.7m £4.1m £5.3m £6.4m £20.3m £24.1m £31.9m £34.4m
Group revenue 
up 8% at £34.4m
Proﬁt from operations
(pre-exceptional items
2
)
up 20% at £6.4m
£7.3m £1.7m £3.9m -£13.4m 2.31p 3.09p 3.83p 4.26p
Basic earnings per share
(pre-exceptional items
2
)
up 1 1% at 4.26p
 
 
 
Company over view Business Review Corporate Governance Financial Statements
09 08 10
09 08 10 11 09 08 10 11
11 09 08 10 11
Net funds
3 4
/debt
Financial Highlights
>	 Revenue	up	8%	to	£34.4	million	(2010:	£31.9	million) 	
at	actual	currency	and	9%	at	constant	currency
1
>	 Operating	margin	(pre-exceptional	items
2
)	
up	190	basis	points	to	18.6%	(2010:	16.7%)
	 Operating	margin	(post-exceptional	items
2
)	down	
20	basis	points	to	13.4%	(2010:	13.6%)
>	 Operating	profit	(pre-exceptional	items
2
)	up	20% 	
to	£6.4	million	(2010:	£5.3	million)
	 Operating	profit	(post-exceptional	items
2
)	up	6%	to	£4.6	
million	(2010:	£4.3	million)
>	 Basic	earnings	per	share	(pre-exceptional	items
2
)	
up	1 1%	to	4.26p	(2010:	3.83p)
	 Basic	earnings	per	share	(post-exceptional	items
2
)	decreased	
2%	to	3.10p	(2010:	3.17p)
>	 Cash	inflow	from	operating	activities	(pre-exceptional 	
items
2
)	 of	£5.5	million	(2010:	£8.1	million)
	 Cash	inflow	from	operating	activities	(post-exceptional	items
2
)	
of	£4.9	million	(2010:	£7.1	million)
>	 Following	the	acquisition	of	RESORBA®,	net	debt
3
	
was	£13.4	million	at	31	December	201 1	(2010: 	
net	funds
4
	£3.9	million)
>	 Proposed	final	dividend	of	0.305p	per	share, 	
making	a	total	dividend	for	the	year	of	0.45p	per 	
share	(2010:	0.38p),	an	increase	of	18%
1.		 Constant	currency	removes	the	effect	of	currency	movements	by 	
re-translating	the	current	year’s	performance	at	the	previous	year’s 	
exchange	rates.
2.		 Exceptional	costs	of	£1.8	million	were	incurred	in	relation	to	the 	
RESORBA®	acquisition	(2010:	exceptional	costs	of	£1.0	million	were 	
incurred	on	the	Winsford	facility).
3.		 Net	debt	is	defined	as	debt	less	cash,	cash	equivalents	and	short-term 	
investments.
4.		 Net	 funds	 is	 defined	 as	 cash	 and	 cash	 equivalents	 plus	 short-term	 investments	
less	debt.
To find out more visit 
www.admedsol.com
ActivHeal®: www.activheal.com
LiquiBand®: www.liquiband.com
Reso RBA®: www.resorba.com
Business Highlights
>	 Foam	revenues	up	49%,	driven	by	successful	new	product 	
developments	and	including	a	customer	product	launch
>	 ActivHeal®	continues	to	make	excellent	progress,	with 	
sales	to	the	NHS	up	73%
>	 Silver	alginate	revenues	up	5%	excluding	de-stocking	by	a 	
major	partner	(down	2%	including	de-stocking)
>	 LiquiBand®	revenues	in	Europe	and	the	UK	up	13%, 	
maintaining	our	significant	market	positions	in	these 	
geographies
>	 End-user	sales	of	LiquiBand®	US	have	increased	over 	
threefold	in	201 1	compared	with	2010
>	 Successful	€ 63.8	million	acquisition	in	December	of 	
RESORBA®,	a	German	woundcare	and	wound	closure 	
business,	financed	by	new	debt	and	equity
>	 New	Winsford	site	delivers	efficiency	and	margin	gains 	 	
in	its	first	year 2 Advanced Medical Solutions Group plc Annual Report 2011
Our value chain
Innovation
Licensing
Development
Manufacturing
Distribution
our customer 
services team are 
integral to supporting 
our partners.
Development Innovation
>
> > >
Advanced Medical solutions Group is a global business 
providing innovative products and brands in the areas of 
accelerating healing and managing wounds, minimising 
adverse surgical outcomes and sealing and closing tissue.
Building on our strengths, we work with strategic partners 
and distributors, as well as selling directly with our own 
sales force and are developing brands to commercialise our 
products worldwide. We have a broad portfolio of materials 
technology supported by strong intellectual property and 
patents and have successfully commercialised our research 
and development to provide innovative products for the 
market.
Licensing Company Overview Business Review Corporate Governance Financial Statements
3 Advanced Medical Solutions Group plc Annual Report 2011
Brands
Through our innovation and manufacturing capability we  
are developing our brands to provide a unique position in 
the market.
ActivHeal® is a full range of advanced woundcare products 
sold to the NHs in the UK.
The LiquiBand® range of topical wound closure products 
based on cyanoacrylate technology is sold direct into the 
NHs and globally through a partnership of distributors.
ResoRBA® now provides the Group with a range of high quality 
brands with a strong reputation in Germany and a sales force 
that has direct access to the German healthcare market.
REPAIR AND REGENERATE
our new Winsford facility 
officially opened in January 
2011 and provides the 
capacity to support the 
growth of the Group.
> > Manufacturing >
Partnership Solutions
We work with the world’s leading woundcare companies to 
provide them with a fully comprehensive integrated service 
of design, development and manufacture of innovative 
and technologically advanced products. our resources and 
specialist knowledge enable us to support our partners to gain 
a competitive edge, through continuous improvements to 
products, regulatory expertise and clinical support.
We also work with a number of distributors to provide own-label 
products treating routine wounds. These ranges help to address 
the needs of healthcare providers facing increasing cost 
constraints.
Distribution >
>
The acquisition of ResoRBA® brings us 
expertise in sutures and collagen and a sales 
force that has access to the operating room, 
emergency room and dental practices in 
Germany, Czech Republic and Russia. 4 Advanced Medical Solutions Group plc Annual Report 2011
Our brands
Traditionally, AMs has worked with partners 
to supply products globally.
Through its direct sales force in the UK, AMs 
has been able to develop and offer to the 
NHs ActivHeal®, its range of woundcare 
dressings as well as LiquiBand®, its range  
of medical adhesives. The acquisition of 
ResoRBA® has further broadened the  
Group’s brands with a range of sutures  
and haemostats.
our ActivHeal® range 
provides affordable 
woundcare for the NHs.
>
ActivHeal® was developed to offer the NHs a more 
affordable woundcare dressing range that delivers cost 
savings to the NHs without compromise on clinical 
effectiveness. ActivHeal® is supported across the UK by a 
dedicated team of healthcare professionals with extensive 
experience and qualifications in woundcare and tissue 
viability and by education modules available on the 
internet providing independent training on a variety of 
woundcare subjects. our education book is available as a 
free woundcare resource and is endorsed by the University 
of Chester.
We sell into the NHs with our direct sales force in the UK.
Following a successful re-brand in 2010, sales increased 
73% compared with prior year.
The ActivHeal® generic range includes Aquafiber, foam, 
alginate, hydrogel and hydrocolloids. Company Overview Business Review Corporate Governance Financial Statements
5 Advanced Medical Solutions Group plc Annual Report 2011
Historically, the Group’s brands 
have accounted for about 25% 
of revenues. With the ResoRBA® 
acquisition the Group’s brands 
will be expected to contribute 
over 50% of revenue in 2012, 
giving us more direct control 
over our own sales channels.
>
The LiquiBand® range of wound closure and wound 
sealant products is designed to meet the needs of 
clinicians for safe, secure and effective wound closure.
Its high strength attributes make it the product of first 
choice in the majority of accident and emergency 
units in the UK and europe. It was launched in the 
Us in December 2009 and now has a market volume 
share there of 5% in the hospital market and 8% in the 
alternative site market.
LiquiBand® Flex was launched at the beginning of 2012 
to meet the need of using tissue adhesives as liquid 
bandages, an application that particularly occurs in 
the Us.
As well as continuing to develop our existing LiquiBand® 
range, work is progressing on developing the next 
generation of products and approval for an internal 
fixation device is being progressed.
LiquiBand® is now sold directly in the UK, Germany and 
Czech Republic with our own sales force. The sales force 
in Germany is able to access the operating room as well 
as the accident and emergency room. The rest of europe 
and the Us is accessed by partnership with a number 
of strategic distributors.
>
ResoRBA® has a full range of both absorbable and non-
absorbable sutures as well as a range of haemostats based 
on collagen that are sold into the hospital, private practice 
and to oral surgeons. The brands of PGA ResoRBA®, 
CAPRoLoN® and GLyCoLoN® are part of ResoRBA®’s 
absorbable range of sutures which together with its 
non-absorbable suture brands such as MoPyLeN® and 
ResoPReN®, offer surgeons complete confidence of wound 
closure. ResoRBA®’s haemostats include KoLLAGeN-resorb 
and GeNTA-CoLL® resorb. KoLLAGeN-resorb is a very pure 
highly biocompatible collagen. GeNTA-CoLL® resorb is a 
collagen including the antibiotic gentamicin for use in 
wounds where there is a high risk of infection.
Building on its suture and collagen technologies, 
ResoRBA® has developed products and brands particularly 
applicable to the oral surgery market. Parasorb sombrero® 
is a dental collagen cone that can be used prior to surgery. 
ResoRBA® also has dental cones containing antibiotics.
ResoRBA® sells directly into Germany, the Czech Republic 
and Moscow, Russia with its direct sales force. It also has 
over 30 distributors world-wide for its surgical and oral 
wound-care products.
The opportunity for the Group now is to take these 
brands and products out into a wider global market, the 
opportunity in the UK being the most readily available.
REPAIR AND REGENERATE 6 Advanced Medical Solutions Group plc Annual Report 2011
Manufacturing
We believe the most effective way of 
commercialising new concepts and technologies 
on a global basis is through strategic partnerships 
with major branded companies.
Partnership solutions
We support our partners by using a tailored 
service from initial development through to 
completed product. We have invested in our 
new facility in Cheshire increasing our capacity 
to support the growth of the Group. With 
the ResoRBA® acquisition we now have six 
manufacturing sites throughout europe. All of 
our sites are Iso 13485 quality compliant.
one of the key strengths of the Group is its 
ability to gain regulatory approval for its 
products throughout the world and to support 
our partners as they extend the territories 
they sell into.
We also support our partners with clinical papers 
such as the Us pilot study on the effectiveness 
of LiquiBand® in closing scalp lacerations and 
studies showing the antimicrobial efficiency of 
silver alginate in killing chronic and burn wound 
micro-organisms. These studies were published 
in the International Wound Journal and the 
Journal of Woundcare.
With a pipeline of products in development 
we look forward to the continued success of 
our partners. 7 Advanced Medical Solutions Group plc Annual Report 2011
New investments
Foam
As well as investing in our medical 
foam plant in the Netherlands, 
we have invested in an upgrade 
to our converting equipment that 
will support the launch of our 
trilaminate dressing range.
Company Overview Business Review Corporate Governance Financial Statements 8 Advanced Medical Solutions Group plc Annual Report 2011
Innovation and
product pipeline
Case studies
>
The Group is committed to research and 
development and has an exciting pipeline of new 
products. The acquisition of collagen technology 
and the suture range from ResoRBA® increases 
future opportunities. In addition to AMs’s own 
specialist team of research scientists, the Group 
works with several leading universities as well as 
collaborating with other companies to develop 
the next generation of products.
Anti-biofilm dressing
In August 2011, an option 
and licensing agreement 
was agreed with sinclair Is 
Pharma. This allows us to 
access their Delmopinol 
technology to use in 
combination with selected 
antimicrobials to test for the 
combined effectiveness of 
breaking down and killing 
established wound biofilms.
Where wound biofilms are 
present, wounds can be 
difficult to treat. If the wound 
biofilms can be destroyed, 
infected wounds can be 
treated more readily.
successful development 
should see a first product 
launched in 2013.
Hernia mesh fixation device
The development 
agreement signed with 
surgical Innovation Group 
in september 2011 provides 
the laparoscopic device 
design expertise needed to 
move our internal adhesive 
programme forward.
our first application for using 
cyanoacrylate adhesives 
internally will be the hernia 
mesh fixation device which will 
require a method of delivering 
adhesive accurately to the site 
of the mesh within the body.
With surgical Innovation’s 
design of the device and 
our expertise in medical 
adhesives, we are expecting 
to have a product ready for 
launch in europe in 2013. 9 Advanced Medical Solutions Group plc Annual Report 2011
ANTIMICROBIALS AND ACTIVES
Wound closure 
and sealants
Advanced woundcare
Our technology platforms
Advanced Medical solutions 
has a range of technologies 
for accelerating healing and 
managing wounds and sealing 
and closing tissue.
The ResoRBA® acquisition 
provides the additional 
technologies of collagen and 
sutures.
Antimicrobials and actives can 
be added to these technologies 
to produce products with special 
features and benefits.
SUTURES
CYANOCRYLATE
COLLAGEN
ALGINATE
AQUAFIBER
FOAM
HYDROGEL
HYDRACOLLOID
R&D	 pipeline
LiquiBand® Flex
Tinted LiquiBand®
Trilaminate foam dressing
Hernia Mesh fixation device
Anti-biofilm dressing
Across	all	our	technology	platforms	in	both	
advanced	woundcare	and	wound	closure	and	
sealants,	we	continue	to	make	progress	by	
upgrading	our	base	technologies	and	by	the	
addition	of	actives	and	antimicrobials	into	these	
core	platforms.
We	continue	to	work	with	third	parties	to	access	
and	evaluate	new	technologies	in	both	our	wound	
management	and	wound	closure	business	areas	
and	will	license	technologies	to	develop	new	
products.
Company Overview Business Review Corporate Governance Financial Statements I am pleased to report another year of significant progress. We have 
again delivered strong revenue and profit growth, and 2011 concluded 
with the acquisition of RESORBA®, a long established, profitable 
woundcare and wound closure business headquartered in Germany.
As the acquisition completed on 22 December 2011, RESORBA® had 
no effect on the 2011 trading results but impacted the 2011 
income statement in relation to £1.8 million of exceptional costs 
incurred in respect of the transaction.
Financial highlights
Group revenue was up 8% to £34.4 million, profit from operations 
before exceptional items was up 20% to £6.4 million, and pre-tax profit 
before exceptional items was up 21% to £6.4 million.
We have again produced strong levels of operating cash, with a net 
cash inflow from operations (pre-exceptional items) of £5.5 million. 
Following the acquisition of RESORBA® in December 2011, which was 
financed by a well-received placing and a new term loan, we ended 
2011 with net debt of £13.4 million. 
Key business achievements
We have seen further gains across all areas of our Advanced 
Woundcare business, including ActivHeal® where the combined 
offering of quality products with significant cost savings for the NHS 
continue to drive strong sales growth. Our foam products are also 
seeing sustained, significant growth.
In Wound Closure and Sealants, we are very pleased with the 
continued progress of LiquiBand® in the US. All too often, new 
product launches see a reduction in second year sales after the 
initial surge of evaluations and trials settles down. However, we have 
been able to sustain a level of ex-factory sales that was broadly 
similar to 2010 and, with end market sales up three-fold year-on-
year, we believe we have a platform for strong growth this year.
Our new Winsford facility was officially opened at the beginning of 
2011 and we can confirm that our target of achieving a minimum 
2% gross margin improvement in Advanced Woundcare by the end 
of calendar 2013 is well on track.
Dividend
AMS remains strongly cash generative and we remain confident in 
our ability to continue paying dividends on a progressive basis. Given 
the Group’s strong performance in 2011 and the Board’s confidence 
in the medium to long term prospects for the Group, the proposed 
final dividend will be 0.305p per share, making a total dividend for 
the year of 0.45p per share, an 18% increase on 2010. If approved at 
the Annual General Meeting on 12 June 2012, this will be paid on 15 
June 2012 to shareholders on the register at the close of business on 
18 May 2012. 
Employees
On behalf of the Board and our shareholders, I would like to thank AMS 
employees for all their hard work last year. I would also like to welcome 
all RESORBA® employees to the Group.
Outlook
We continue to be confident about the prospects for our existing 
business, with the outlook for LiquiBand® and ActivHeal® being 
especially encouraging. 2012 has started well and it is also pleasing 
to report that the silver alginate partner that had previously been 
de-stocking has now returned to previous order patterns.
The acquisition of RESORBA® at the end of 2011 provides us with 
further commercial opportunities and more direct control of our 
sales channels. Integration is proceeding well and RESORBA® is 
expected to be earnings per share enhancing in its first full year. 
2012 promises to be a pivotal year for us with over half of our 
revenue now expected to be generated from our own brands. We 
are very positive about the future prospects of the Group.
Dr. Don Evans
Chairman
27 April 2012
10 11 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
201 1 was another year of strong revenue 
and profit growth for AMS. Prospects for 
201 2 look good and we look forward to the 
future with considerable optimism.
Dr. Don Evans
Chairman
Business Review 
Chairman’s Statement Company Overview Business Review Corporate Governance Financial Statements
10 11 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
The recent acquisition of RESORBA® represents a 
significant milestone for the Group. It provides us with 
further commercial opportunities and more 
direct control of our sales channels. 12 13 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Chris Meredith
Chief Executive Officer
I am delighted to report that, during my first 
year as Chief Executive Officer, AMS has 
achieved further strong organic growth.  
Our broadened range of foam woundcare 
products has performed strongly, ActivHeal® 
has had another outstanding year and 
LiquiBand® has performed well, both in the 
US and in other markets.
This time last year, I set out my vision for AMS together with an overview 
of the strategy we have put in place to build a significant, global medical 
devices business. The key parts of the strategy that I outlined were to 
build on our brand portfolio, to increase our penetration of the 
Operating Room, and to supplement organic growth through further 
licensing and acquisition activities.
We had expected to progress these aims through several steps over a 
number of years but the acquisition of RESORBA® in December 2011 has 
enabled us to address many key elements in a single deal. Amongst 
other benefits, we now have direct access to the Operating Room 
segment in Europe’s largest surgical market (Germany), additional 
technologies that we can leverage into other markets using our 
regulatory and global distribution expertise, and a greatly enhanced 
own-brand portfolio that significantly increases the Group’s direct 
control over its sales channels.
2011
Advanced Woundcare
Revenues from our Advanced Woundcare range of products increased 
by 10% in 2011 to £27.7 million (2010: £25.2 million). This compares 
very favourably with advanced woundcare market growth rates which 
are generally estimated to have been less than 3% in 2011. 
We have continued to provide technical and clinical support to our silver 
alginate product partners, and the growth in the US that we reported at 
the interims has continued. However, the de-stocking by one major 
partner in the UK and Europe that we previously highlighted did 
continue in the second half of 2011 and has only recently started to 
unwind. Nevertheless, overall, our partners’ global market share 
continues to close the gap to the market leader. 
We are seeing clear benefits from the capital investment in our medical 
foam plant in the Netherlands, which has not only increased capacity 
but will also enable us to further develop our foam technology base. A 
number of new foam product designs were launched in 2011, and these 
will be supplemented later this year by the launch of a major upgrade to 
our foam product range, involving trilaminate dressings.
Our strategy of increasingly focusing on higher margin business 
across the Group means that sales of some lower margin woundcare 
products were down in 2011, and this trend will continue to some 
extent in 2012. Partly offsetting these reductions were a number of 
new customer launch orders for roll stock foam. 
The attractions of our ActivHeal® range of products continue to 
resonate within the NHS with its combined messages of cost-savings 
without any compromise to clinical outcome or patient care. The 
rebrand in late 2010 has helped to successfully establish ActivHeal® 
Business Review 
Chief Executive’s Statement Company Overview Business Review Corporate Governance Financial Statements
12 13 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
as a product of first choice for an increasing number of nurses. All of 
these factors combined to deliver an impressive performance in 2011. 
2011 was the first full year of operations at the Winsford facility and  
I am particularly pleased by the seamless transition and by the clear 
efficiency and margin benefits that we are already seeing.
Wound Closure and Sealants 
Overall Wound Closure and Sealants revenues were flat at £6.7 million 
(2010: £6.7 million).
2010 saw the first 12 months of LiquiBand® sales in the US and we were 
delighted to have achieved a volume market share of 5% by the end of 
that year. It is, however, fair to say that, notwithstanding the extremely 
positive response from end-users, we were cautious about 2011 as many 
new product launches see a dip in their second year when the numbers 
of evaluations and trials naturally decrease after the initial surge. 
We are therefore very pleased to report that LiquiBand® revenues in the 
US in 2011 were largely unchanged from the year before, reflecting not 
only the absolute and comparative quality of our products but also their 
price competitiveness against the market leader. All of these factors 
have led to a large proportion of evaluation and trial sales being 
followed up with firm orders, and end-user sales increased over 
threefold in 2011 compared with 2010. As a result, LiquiBand® now has a 
full year market volume share of 5% in the US hospital market and 8% in 
the non-hospital or alternative site market.
In our other markets, 2011 was another good year for LiquiBand®, with 
non-US revenues up 13%. We have maintained our market-leading 
positions in the UK and Europe Emergency Room, and our partners in 
both Canada and Japan are gradually gaining a position in those 
markets, albeit at small levels. 
As we have previously flagged, sales of InteguSeal®, through our 
marketing partner Kimberly-Clark, have been disappointing but they 
only account for about 1% of total revenues.
Research & Development
A key focus of our in-house R&D last year was on our new foam 
technology platform. We launched a number of new sizes and shapes in 
2011, which have been well received, and we will shortly be launching a 
total range upgrade, involving modern, market leading, three-layer 
(trilaminate) dressings.
Our development work with Sinclair IS Pharma on their Delmopinol® 
‘anti-biofilm’ technology is continuing. Results so far confirm its potential 
efficacy in breaking down biofilms in chronic wounds but there is still 
more work to do. Nevertheless, we remain optimistic that, subject to no 
unforeseen or insurmountable issues being identified, a first product 
could be ready for launch in 2013.
Our development agreement with Surgical Innovations on a 
laparoscopic device for delivering adhesive internally has moved on 
apace, and we now have a working prototype device that takes our 
internal adhesive programme a step nearer to market launch, which we 
are still targetting for 2013 in Europe.
Outlook
The acquisition of RESORBA® has key strategic benefits on a number of 
fronts, including:
• substantially increasing our own-brand portfolio, giving us far more 
direct control over our own sales channels whilst improving our gross 
margins;
• acquiring a direct sales force focused on the operating room which 
gives us an in-house distribution channel for our growing portfolio 
of surgically focused products, including InteguSeal®, a number of 
LiquiBand® products, our internal adhesive programme (when it 
launches) and a range of surgical dressings that are in plan to develop;
• adding a number of RESORBA® products (e.g. sutures) and 
technologies (e.g. collagen) where we expect to be able to use our 
regulatory expertise to gain relevant approvals in the US and 
elsewhere, and distribute through our global partner base;
• adding a new opportunity in dental/oral surgery where we have 
already begun the process of preparing for regulatory approval for 
LiquiBand®; and
• giving us increasing leverage in targeting customers, both via partners 
and directly, with our significantly expanded product portfolio.
All of these are in line with our previously stated strategic aims and, 
although we have much to do to fully integrate RESORBA®, we are 
excited about the additional opportunities we now have to accelerate 
the growth of AMS.
Advanced Woundcare
All indications are that ActivHeal® will continue its strong progress in 
2012 and, with the launch of a trilaminate range of foam products later 
this year, we also anticipate further significant sales improvement in this 
segment. We are confident that this upgrade will move us up the value 
curve, while bringing the added future benefit of being an excellent 
delivery system for a number of actives. 
In our silver alginate range, prospects in the US continue to be good, the 
de-stocking we saw last year in Europe and the UK has ended, and we 
are optimistic about the prospects for a number of product upgrades 
we expect to launch through our partners. 
However, with an increasing emphasis on the higher margin products in 
our woundcare business, we anticipate further falls in revenue from some 
lower margin products. We would also not expect the level of foam 
roll-stock launch orders we received in 201 1 to be repeated in 2012. 14 15 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
With the new woundcare products that we now have from RESORBA®, 
together with the  trilaminate range of foam products that we plan to 
launch later this year, and the continuing efficiency benefits of the 
Winsford site, we are confident that our overall woundcare profitability 
will improve.
Wound Closure and Sealants
In the US adhesive market, there have been a number of developments 
in recent months involving initiatives by both AMS and others which 
were to be expected. We are confident that our overall competitive 
position remains unaffected and we continue to be very optimistic 
about our ability to increase our share of this key market:
• The US market leader launched a new closure product at the end of 
2011 which now involves a single application but still has a much 
longer setting time than LiquiBand®. Whilst somewhat later than 
anticipated we had always expected this competitive response to 
the arrival of LiquiBand® in the US market but we remain confident of 
the continuing technical superiority and price competitiveness of our 
product for wound closure. 
• Given the significant market opportunity and the competition’s 
increasing focus on the liquid bandage application for tissue 
adhesives, we launched LiquiBand® Flex into the US market at the 
beginning of 2012. This addition to our range meets the need for a 
protective, anti-microbial liquid bandage, to ‘paint’ over wounds that 
have been closed by sutures or staples, expanding our offering and 
strengthening our competitive position.
• Two major distributors have recently launched or are about to launch 
their own liquid bandage products based on existing technology 
they have licensed in. One of these has been available for a few years 
in the US market under its original brand and was ‘re-launched’ in 
2011 under the distributor’s own brand. The other, involving one of 
our partners, has not yet launched but is expected to do so this year. 
Notwithstanding these developments, we are as confident of the 
technical superiority and price competitiveness of LiquiBand® Flex as 
we are of our other LiquiBand® wound closure products. It is too 
early for market data to record the level of initial LiquiBand® Flex sales 
but initial responses from users have been very positive.
• As part of our strategy to increase our penetration of the operating 
room, and maximise value through retained ownership of the 
brand, we have expanded on our strategy to target the surgical 
segment of the US adhesive market by establishing partnerships 
with a number of smaller, specialised regional distributors whose 
sales teams have an operating room focus. We have already 
established four such relationships with distributors for LiquiBand® 
Flex and we expect to add a few more in the coming months to 
complete our US geographic access. We believe this approach will 
not only deliver greater control and higher margins but should also 
enable us to channel more of our products through this more 
specialised route in the future as our surgically focused product  
list increases.
In a similar vein but on a direct basis, we have also established a small 
UK team of our own surgically focused sales representatives who will 
take direct responsibility for promoting LiquiBand® surgical products, 
together with RESORBA®’s range of surgical sutures and collagen-
based dressings.
Outside our existing markets, we have started the process of getting 
regulatory approval for LiquiBand® in China and are in early stage 
discussions with potential partners. We expect to use RESORBA®’s 
expertise to initiate the same process in Russia. 
In relation to InteguSeal®, we remain confident about its potential and 
we continue to investigate options for delivering this product more 
effectively to the market. In this regard, we now have a direct surgically 
focused sales channel that we can exploit in Germany through 
RESORBA® and we hope to advise on other initiatives during 2012.
Licensing and Acquisitions
While the acquisition of RESORBA® is a significant transaction that will 
take time to fully integrate, and we are focused on this, we will continue 
to examine other acquisition opportunities which would add value to 
our overall business. We also continue to evaluate complementary 
technology licensing opportunities, particularly in woundcare, where we 
can take advantage of our innovation and manufacturing expertise.
Prospects for 2012
AMS has been significantly enhanced by the acquisition of RESORBA® at 
the end of 2011. Integration is progressing well and we are excited about 
the potential that RESORBA®’s operating room access brings for a 
number of our existing products, together with a range of their brands 
and technologies that we intend to leverage across our global 
distribution channels. RESORBA® also produces a significant shift in our 
business mix, where more than half of our revenues will now come from 
direct sales of our own brands.
2012 has started well across all our existing businesses and we are 
confident of achieving another year of strong progress.
Chris Meredith 
Chief Executive Officer
27 April 2012
Business Review 
Chief Executive’s Statement continued Company Overview Business Review Corporate Governance Financial Statements
14 15 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Business Review 
Financial Review
Mary Tavener
Group Finance Director
The acquisition of RESORBA® was completed on 22 December 2011. 
With only three days of trading between completion and the end of the 
year and with no significant one-off events occurring in this period, the 
results for RESORBA® for this three-day period have not been included in 
the consolidated results for the Group for 2011. The income statement 
was, however, impacted by £1.8 million of exceptional expense relating 
to the costs of the acquisition, and the balance sheet and the cash flow 
statement are also affected.
Income statement
Revenues
Total Group revenue increased by 8% in 2011 to £34.4 million  
(2010: £31.9 million) at actual currency, and by 9% at constant currency.
Total advanced woundcare revenues increased by 10% to £27.7 million 
(2010: £25.2 million).
The main drivers of growth were ActivHeal®, which increased sales 
by 73%, and our foam products which increased by 49%. The latter 
benefited from a large launch order from one customer which we  
do not anticipate will be repeated in 2012.
 
Sales of our silver alginate range of products increased by 7% in the  
US compared with last year, although this was countered by a similar 
decrease in Europe and the UK due to continued de-stocking by one 
of our partners. Our overall silver alginate sales fell by 2% although this 
would have been an increase of 5% without the de-stocking effect.
Total wound closure and sealants revenues were flat at £6.7 million 
(2010: £6.7 million).
As discussed earlier, sales of LiquiBand® in the US were similar to  
the 2010 level while, outside the US, LiquiBand® continues to perform 
well in the UK and Europe, where sales increased by 13%. 
Sales of InteguSeal® declined by 37% and are now approximately  
1% of revenues. 
Geographic breakdown of revenues
Europe (excluding the UK) is our largest market and, following the 
acquisition of RESORBA®, this weighting will increase further. In 2011, 
European revenues increased by 13%, mainly due to the sales of foam. 
In the UK, revenues rose by 11% due to the strong performance of 
ActivHeal® and LiquiBand® while, in the US, sales of LiquiBand® held firm 
and were at a similar level to last year. Revenues from the Rest of the 
World remain small and are at a slightly lower level compared to last year.
Profit from operations
Profit from operations (pre-exceptional items) increased by 20% to £6.4 
million (2010: £5.3 million) and our operating margin (pre-exceptional 
items) improved by 190 basis points to 18.6% (2010: 16.7%).
Advanced woundcare contributed £6.2 million (pre-exceptional items  
of nil) (2010: £4.7 million pre-exceptional items of £1.0 million), with  
an operating margin of 22.4%, up by 360 basis points (2010: 18.8%). 
Approximately 180 basis points of this improvement resulted from 
operational efficiencies at the new Winsford site, with the remainder 
coming from improvements in sales mix.
Wound closure and sealants contributed £1.4 million (2010: £1.6 million) 
to profit from operations, with an operating margin that decreased by 
310 basis points to 21.1% (2010: 24.2%). This was largely due to the 
investment made to support the sale of LiquiBand® in the US with 
clinical studies and marketing papers.
Administration costs for the Group (pre-exceptional items) increased by 
5% to £9.7 million (2010: £9.3 million), mainly due to investment in 
marketing LiquiBand® and in supporting our partners with clinical papers 
on our silver alginate products.
Research and Development spend as a percentage of sales was 
unchanged from 2010 at 4%, and is expected to be over 5% in 2012, 
although some of this spend will be capitalised. This increased level  
of spend, together with the capitalisation of costs, reflects the timing  
of projects.
Exceptionals
There were exceptional costs of £1.8 million in 2011 associated with  
the RESORBA® acquisition, compared to £1.0 million in 2010 associated 
with the move into the Winsford facility. An additional £0.5 million  
of exceptional costs are anticipated in 2012 as a result of the integration 
of RESORBA®.
Profit from operations (post-exceptional items) was £4.6 million, an 
increase of 6% (2010: £4.3 million).
Other income
£0.2 million of other income was earned in the year (2010: £0.2 million). 
This was associated with fees earned on development projects.
Profit before tax
The Group’s 2011 profit before tax (pre-exceptionals) was £6.4 million, an 
increase of 21% (2010: £5.3 million). Profit before tax (post-exceptionals) 
was 7% higher at £4.6 million (2010: £4.3 million). 16 17 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Tax
A corporation tax charge of £0.3 million, calculated at the statutory rate 
of 25.5%, has been recognised in the accounts for the year in respect of 
the taxable profits of our Dutch company. Profits generated in the 
Group’s UK companies in the year were covered by surplus tax losses 
brought forward.
The Group holds a deferred tax asset on the balance sheet in respect of 
tax losses incurred in the UK of £2.8 million (2010: £2.3 million), and has 
a further £10.5 million (2010: £19.1 million) of tax losses that have not 
been recognised.
It is currently anticipated that corporation tax in the UK will start to be 
recognised on one of our UK entities in 2012 but, due to surplus tax 
losses elsewhere in the Group, corporation tax is not expected to be 
paid across the whole of our UK operations until 2014.
Our newly acquired business, RESORBA®, pays tax in Germany at 31.5% 
and this will be reflected in our 2012 accounts. 
In 2012 we anticipate that the blended rate of tax for the Group will be 
approximately 16%.
Profit after tax, earnings per share and dividends
Profit after tax (pre-exceptional items) was £6.7 million (2010: £5.8 
million) and, on this basis, fully adjusted basic earnings per share 
increased by 11% to 4.26p (2010: 3.83p). Fully diluted earnings per share 
(pre-exceptional items) also increased by 11% to 4.17p (2010: 3.77p). 
On 20 December 2011 the Group issued 47.2 million new ordinary 
shares to finance the acquisition of RESORBA®. Excluding the impact  
of the new share issue, adjusted basic earnings per share would have 
increased by 12% to 4.29p (2010: 3.83p) and fully diluted earnings  
per share (pre-exceptional items) would have increased 11% to 4.20p 
(2010: 3.77p). 
The Group’s profit after tax (post-exceptional items) was unchanged at 
£4.8 million (2010: £4.8 million), resulting in adjusted basic earnings per 
share of 3.10p (2010: 3.17p) and fully diluted earnings per share of 3.04p 
(2010: 3.12p).
The Board is proposing a final dividend of 0.305p per share, to be paid 
on 15 June 2012 to shareholders on the register at the close of business 
on 18 May 2012. This follows the interim dividend of 0.145p per share 
that was paid on 4 November 2011, and makes the total dividend for the 
year 0.45p per share (2010: 0.38p), an 18% increase on 2010, reflecting 
the confidence of the Board in the Group’s prospects.
Cash flow and balance sheet
The Group had a cash inflow from operating activities (pre-exceptional 
items) of £5.5 million (2010: £8.1 million), and £4.9 million (2010: £7.1 
million) post-exceptional items of £0.6 million which had been paid in 
2011 (2010: £1.0 million). The cash conversion ratio
1
 (pre-exceptional 
items) was 47% for the year (2010: 79%) reflecting the higher levels of 
working capital in the business at the end of the year.
Working capital, excluding the effect of assets acquired from RESORBA®, 
increased in the year by £2.2 million, reflecting the phasing of business 
in the last quarter of the year. Inventory increased by £0.9 million to  
£3.4 million (2010: £2.5 million). Trade and other receivables increased 
by £3.0 million to £9.0 million (2010: £6.0 million), with debtor days 
increasing to 65 (2010: 52). Trade and other payables increased by £1.7 
million with creditor days of 62 (2010: 71). The Group’s debtor days have 
increased as result of the business mix in the US and generally slower 
payments in the UK. The Group had insignificant bad debts in 2011.
The Group invested £2.2 million in capital equipment and software in 
2011 (2010: £3.7 million). Investments have been made in upgrading our 
woundcare dressings converting capability and on our business 
information systems, and a similar level of capital expenditure is 
expected in 2012. £0.3 million of Research and Development was 
capitalised in 2011 (2010: £0.2 million). With a number of projects well 
developed, there will be an increased level of capitalisation in 2012.
£2.9 million (2010: £2.9 million) of goodwill has been recognised on 
the balance sheet in relation to Corpura B.V. which was acquired in 
2009. There was no impairment in goodwill upon review as at 
31 December 2011.
The balance sheet acquired with the acquisition of RESORBA® has  
been recognised at fair value in line with IFRS. An exercise has been 
undertaken to value the intangible assets acquired which has resulted in 
a value of £11.8 million for brands, intellectual property (IP), know-how 
and contracts which will be amortised over periods of 1 to 15 years 
relating to IP acquired. Some of the acquired IP is considered to have an 
indefinite life, and this will be subject to an annual impairment review.
The provisional goodwill resulting from the acquisition of RESORBA® is 
£36.5 million which will be subject to annual impairment tests. Formal 
valuations on the land and properties are to be undertaken which may 
result in further adjustments to the valuation of goodwill.
Business Review 
Financial Review continued
1 Cash conversion ratio is defined as cash generated from operating activities before 
exceptional items including spend on property, plant and equipment, software and 
capitalised research and development but excluding spend on acquisitions as a ratio of 
profit from operations before exceptional items. Company Overview Business Review Corporate Governance Financial Statements
16 17 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
2011
2010
2009
Earnings per share growth
33%
11%
31%
2011
2010
2009
Customer service (OTIF)
(3)
93%
87%
86%
8% 2011
2010
2009
Revenue Growth
19%
18%
2011
2010
2009
Operating Margin
17%
19%
17%
Key Performance Indicators (KPIs)
(1) In December 2011, in connection with the acquisition of RESORBA®, the 
Group entered into a €25 million amortising term loan facility with HSBC 
with a final maturity of 31 July 2015. This facility carries an annual 
interest rate of EURIBOR plus a margin of 1.5 to 2.5% depending on the 
Group’s net debt to EBITDA ratio. All of the € 25 million was drawn down 
as at 31 December 2011.
In December 2011, the Group also entered into an £8 million revolving 
credit facility with HSBC with a final maturity of 31 July 2015. This facility 
is for general working capital purposes, and carries an annual interest 
rate of LIBOR plus a margin of 1.5 to 2.5% depending on the Group’s net 
debt to EBITDA ratio. This facility replaces the Group’s previous revolving 
credit facility with Lloyds TSB Bank. As at 31 December 2011, and at the 
date of this report, this new facility was undrawn.
To partly finance the acquisition of RESORBA®, the Group issued 47.2 
million new ordinary shares in December 2011 at a price of £0.72 per 
share, raising £34.0 million before acquisition and placing expenses of 
£3.2 million. £1.8 million of the latter has been expensed to the income 
statement as an exceptional item, £0.4 million has been capitalised as a 
cost of debt and £1.0 million has been debited to share premium. In 
addition, a combined total of 1.0 million new ordinary shares were 
subscribed for by a Director of AMS and by senior management of both 
AMS and RESORBA®, raising an additional £0.7 million.
The Group had net debt of £13.4 million as at 31 December 2011 (2010: 
net funds of £3.9 million). Within these balances, cash and cash 
equivalents were £7.1 million (2010: £4.1 million). 
Mary Tavener 
Group Finance Director
27 April 2012
2011
2010
2009
Return on Capital Employed
(2)
24.7%
26.0%
23.8%
(1) All KPIs are stated pre-exceptional items.
(2) Excludes equity and debt raised to acquire RESORBA®.
(3) OTIF – ‘On time in full’. 18 19 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Q&A
RESORBA® 
acquisition
A number of these products will require regulatory approvals, 
particularly in the US, but our experience of the 510(k) process  
gives us confidence that we would be able to achieve approval in  
a timely fashion.
More broadly, RESORBA® gives the Group a suite of products that is 
now broad enough for us to look to penetrate a number of important 
markets directly rather than via distribution partners. In this regard, we 
are reviewing options but, for example, we have already established 
our own small surgically focused sales team in the UK.
Does this acquisition change in any way your overall 
focus and growth strategy?
No – the organic growth opportunities that we have previously 
identified remain as exciting and as significant as before. The 
acquisition of RESORBA®’s fully complementary business enabled 
us to address a number of our strategic aims in one deal and gives 
us opportunities to accelerate our growth in a number of key areas 
and markets. For example, RESORBA® gives us a direct route to the 
surgical market and hence better control for a number of the exciting 
new products that are coming out of our R&D pipeline, including 
LiquiBand® for internal use.
Do you foresee any particular challenges in 
integrating RESORBA® and maximising its potential 
benefit to AMS?
There are always challenges in integrating any new business but 
we believe we have a strong track record in doing this successfully, 
including most recently Corpura in the Netherlands. There are 
some challenges with RESORBA® which will take time to resolve, 
including for example securing US regulatory approvals for some of 
their products (e.g. surgical sutures) but, again, we have significant 
experience in working with the FDA. A key point to remember is that 
the immediate, primary benefits from the RESORBA® acquisition are all 
centred on their existing business and their direct surgical sales force 
in Europe’s largest surgical market.
What are the primary reasons for your move 
to acquire RESORBA®?
Our stated growth strategy has been to maximise the value of existing 
brands, to continue supporting our partners with innovative wound 
care products, to enhance our penetration of the operating room 
segment, and to supplement our organic growth with further licensing 
and acquisition activity. We had expected to achieve the latter through 
a number of smaller bolt-on deals but, in RESORBA®, we identified a 
business that fulfils many of our key aims in a single acquisition.
RESORBA® has a number of established brands in its core areas of 
surgical sutures and collagen based surgical dressings, the majority of 
which are sold directly to surgeons in Germany, the largest operating 
room market in Europe, and also in the Czech Republic and Russia. We 
will be looking to enhance its offering by using its direct sales team 
to market our existing brands to surgeons, in particular LiquiBand® 
but also InteguSeal®. We also intend to develop a range of surgical 
dressings under our own brand that can also be distributed by the 
RESORBA® surgical sales team.
One key benefit of the RESORBA® deal is that it significantly increases 
the percentage of Group sales from our own brands, from about 25% 
in 2011 to over 50% from 2012 onwards. This substantially increases 
the level of control over our own sales channels and, as a result,  
de-risks our business.
Finally, in the last few years, RESORBA® has also established a growing 
presence in the oral surgery market. While this is not a major part 
of their business, it presents a number of interesting opportunities 
including, for example, the use of LiquiBand® in oral surgery where we 
have already begun the process of applying for regulatory approval.
What are the key benefits that RESORBA® brings to 
AMS outside its core markets of Germany, the Czech 
Republic and Russia?
RESORBA®’s surgical suture and collagen based technologies present 
us with opportunities to significantly broaden the Group’s portfolio 
of products that can be sold into a range of global markets via 
our distribution channels. For example, we will be looking to use 
RESORBA®’s expertise to develop private label suture products in 
new markets, something that our partners have already indicated 
they would welcome. Equally, we see opportunities in developing 
RESORBA®’s surgical collagen technology, as we have done with our 
foam technology, for sale through our global partner base.
Chris Meredith
Chief Executive Officer
Business Review Company Overview Business Review Corporate Governance Financial Statements
18 19 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
1
1. Dr. Don W Evans
BChemEng, MASc, PhD 
Non-Executive Chairman 
Dr Evans was appointed Non-Executive Chairman of the Group in 
January 2011, having previously been Group Chief Executive Officer 
since January 2000. He joined AMS in 1997 as Operations Director 
and was appointed Managing Director of Advanced Woundcare in 
January 1999. After completing a degree in Chemical Engineering at 
the University of Queensland and a PhD in Biomedical Engineering at 
the University of Toronto, Dr Evans joined Johnson & Johnson UK 
where he worked for 19 years in Research & Development and 
Manufacturing. He was subsequently appointed Vice-President of 
European Operations for Johnson & Johnson Professional. 
2. Chris Meredith
BSc (Hons)
Chief Executive Officer
Mr Meredith was appointed Group Chief Executive Officer in January 
2011. He joined AMS as Group Commercial Director in July 2005 
following a successful 18-year career in international healthcare sales, 
marketing and business development. His experience prior to joining 
AMS covered business to business contract manufacturing, product 
development and clinical research, as well as branded product sales, 
all within the medical device, pharmaceutical or consumer 
healthcare markets. He was appointed Managing Director of 
Advanced Woundcare in February 2008 and in January 2010 he 
became Chief Operating Officer for the Group. Mr Meredith has 
previously held senior positions at Smiths Industries, Cardinal Health, 
Banner Pharmacaps, and Aster Cephac.
3. Mary G Tavener 
ACMA, MCT, BA (Hons) Chem (Oxon) 
Finance Director
Ms Tavener joined AMS as Finance Director in 1999. Prior to this, she 
was the Group Financial Controller at BTP plc during a period of 
considerable corporate activity and was involved in the acquisition 
and disposal of several businesses that repositioned BTP plc as a 
fine chemical company. Her experience has been gained in 
manufacturing and she has held financial positions with Cadburys Ltd 
and Parker Hannifin, a US Engineering Corporation. Prior to BTP plc, 
she was the Finance Director of Churchill Tableware Ltd.
4. Penelope A Freer 
Senior Independent Non-Executive Director
Ms Freer was appointed as Senior Independent Non-Executive 
Director of AMS on 1 March 2010. She is a partner of London Bridge 
Capital, an FSA authorised corporate advisory business and a 
non-executive director of Empresaria Group plc. With 25 years’ 
experience in investment banking she was formerly Head of Equities 
for Robert W Baird in London and prior to this held senior positions at 
Credit Lyonnais and NatWest Markets.
5. Stephen G Bellamy 
BCom & CA (NZ) 
Non-Executive Director
Mr Bellamy was appointed as Non-Executive Director of AMS on 
20 February 2007. He is currently CEO and a founding partner of 
Accretion Capital LLP (provider of strategic capital and advice to 
European emerging technology companies) and non-executive 
director of Becrypt Ltd (data security and protection technology). 
Formerly an executive director of Sherwood International plc and 
Brierley Investments’ London operations, he has also held a number 
of other non-executive directorships and advisory roles. He is a New 
Zealand qualified chartered accountant.
1 2 3
4 5
Directors 20 21 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Jeffrey Willis BSc (Hons), EMSMOT
Vice President Group Marketing
Jeff joined AMS in October 2005 as Vice President Business 
Development, Americas, where he managed the US business. 
Jeff graduated with a degree in Biomedical Engineering from the 
University of Florida in 1996 and completed a Masters programme in 
Management of Technology at Georgia Institute of Technology in 
2001. He spent 10 years with Kimberly-Clark Health Care in R & D, 
Product Development, and New Business Development, and was a 
key member of the medical device M & A strategy team in Atlanta.  
In 2004, Jeff joined Abbott Laboratories in Columbus, Ohio as 
Manager of Licensing and Business Development supporting the 
medical nutritional and consumer products division.
In October 2009, Jeff and his family relocated to the UK when he 
assumed the role of Vice President of Group Marketing. In December 
2011, Jeff also assumed responsibility for the Integration of RESORBA®.
Richard Smith, ACA
Group Financial Controller
VP Sales and Business Development
Richard joined AMS in January 2009 having qualified as a chartered 
accountant in 1996. 
After periods in banking and private practice, Richard joined Astra 
Zeneca in 2000 where he worked in a number of finance roles 
culminating in the position of Finance Director, M & A and Strategic 
Planning as part of a deal team covering commercial, manufacturing, 
R & D and legal. 
Since March 2011 Richard has taken over the role of VP Sales and 
Business Development.
Richard Stenton
Vice President of Group Operations
Richard was Managing Director of MedLogic Global Ltd now 
Advanced Medical Solutions (Plymouth) Limited, when it was 
acquired by Advanced Medical Solutions in May 2002. Richard was 
subsequently appointed General Manager with responsibility for  
R & D and Operations for the Wound Closure and Sealants business.
Richard spent 14 years in engineering and manufacturing with CR Bard 
Ltd, three years as a Project Director installing medical device 
manufacturing processes in Europe, South Africa and the Far East 
before joining HG Wallace – Smiths Industries Medical Systems in 1989 
as Manufacturing Manager covering six medical device manufacturing 
sites in the UK. He joined Medlogic Global Ltd in 1997 and was 
responsible for setting up and managing the UK operation for their 
tissue adhesives business. Richard was appointed Vice President of 
Group Operations in July 2010.
Steve Platt
General Manager, Winsford and Plymouth
Steve was appointed as General Manager of Winsford in June 2010. 
Steve brings 18 years of experience from major multinational 
manufacturing companies. Prior to AMS he held senior positions at 
Toyota Manufacturing (UK), JCB Excavators, RWD Technologies and, 
most recently, Nilfisk- Advance A/S where he was General Manager 
for green field operations in Central Europe. He also had 
responsibility for European restructuring and consolidation projects 
including Group M&A support. Steve has a track record for 
maximising business performance through the implementation of 
lean management techniques.
In November 2011, he took over responsibility for the Plymouth site.
Pieter Van-Hoof, MEng
General Manager, Etten-Leur
Pieter joined Advanced Medical Solutions B.V. in November 2009.  
Having completed a Master’s degree in Engineering in Chemistry and 
Biochemistry at the Katholieke Universiteit Leuven (Belgium), Pieter 
joined Janssen Pharmaceutica working as a production supervisor in the 
manufacturing unit for sterile injectable products before joining the 
DuPont Engineering Polymers business in September 1999. At DuPont 
Engineering Polymers Pieter worked in a number of business process 
improvement roles in Supply Chain certifying as a 6 Sigma Master Black 
Belt before moving into Sales & Marketing gathering experience in 
account management and business development. Before joining 
Advanced Medical Solutions B.V. Pieter held the position of European 
Customer Services Manager for DuPont Engineering Polymers.
Ian Vickery BA (Hons), MCIPD
Group HR Manager
Ian was appointed Group HR Manager in April 2009. After graduating 
in Geography from Leeds University, Ian completed a Postgraduate 
Diploma in Personnel Management in 1989, and a Diploma in Safety 
Management in 1995. An HR specialist with 20 years’ experience 
within automotive, engineering, manufacturing and pharmaceuticals, 
Ian has operated at a senior level globally, supporting businesses and 
their management teams in the delivery of their strategic goals and 
objectives.
Clare Holden BSc (Hons)
Vice President of Group Research and Development
Clare was appointed in July 2010. She has over 20 years of process 
and new product development experience with global organisations 
such as Smith & Nephew, where her last position was Vice President 
of New Product Development for their Hull-based Wound 
Management Division. While at Smith & Nephew she gained an 
extensive understanding of the processes and compliance 
requirements of the Medical Device Industry and was responsible for 
the delivery of a range of new products most notably Allevyn 
Adhesive. Most recently, Clare was Director of Projects at Siemens’ 
Automation & Drives Division in Manchester.
Management T eam Company Overview Financial Statements
20 21 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Corporate Governance Business Review
Nominated Advisor and Broker
Investec
2 Gresham Street
London EC2V 7QP
Auditor
Deloitte LLP
Chartered Accountants & Statutory Auditor
P .O. Box 500
2 Hardman Street
Manchester M60 2AT
Solicitors
Wragge & Co
55 Colmore Row
Birmingham B3 2AS
Registrars and Transfer Office
Capita Registrars 
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Bankers
HSBC
99 -101 Lord Street 
Liverpool L2 6PG
Patent Attorneys
Marks & Clerk
Manchester Office
Sussex House
83–85 Mosley Street
Manchester M2 3LG
Foley & Lardner LLC
Building 3
Palo Alto Square
3000 El Camino Real
Palo Alto CA 94306
Public Relations
Tavistock Communications
131 Finsbury Pavement
London EC2A 1NT
Advisors
Acquisition Advisors
Corporate Advisor
Investec Bank plc
2 Gresham Street
London EC2V 7QP
Debt Advisor
Investec Bank plc
2 Gresham Street
London EC2V 7QP
Financial, Commercial & Tax
KPMG LLP
St. James’ Square
Manchester M2 6DS
Legal
Squire, Sanders & Dempsey (UK) LLP
Rutland House 
148 Edmund Street 
Birmingham B3 2JR
Regulatory & Quality
Emergo Group
Emergo Consulting (UK) Limited
Unit B9
Taylors Court
Parkgate
Rotherham S62 6NU 22 23 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Audit Committee
S.G. Bellamy (Chairman)
P.A. Freer
D.W. Evans
Remuneration Committee
P.A. Freer (Chairman) 
S.G. Bellamy
D.W. Evans 
Nominations Committee
D.W. Evans (Chairman) 
P.A. Freer 
S.G. Bellamy
C. Meredith
Company Secretary
M.G. Tavener
Registered Office
Premier Park, 33 Road One, Winsford Industrial Estate, Winsford, Cheshire, CW7 3RT
Registered Number
2867684
Corporate Governance Standing Committees 22 23 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
The directors present their report and the audited financial statements 
for the year ended 31 December 2011.
Principal activities, trading review and future developments
The Group is primarily involved in the design, development, manufacture 
and distribution of novel high performance polymers, both natural and 
synthetic, for use in advanced woundcare dressings and the design and 
distribution of medical adhesives for closing and sealing tissue. With the 
recent acquisition of the RESORBA® business in Germany the Group has 
gained further technical capabilities in collagen and in sutures. The 
Group distributes its products to the global medical device market  
by selling to healthcare companies, distributors and directly into the 
hospital and dental market in Germany, the Czech Republic and Russia 
and to the NHS in the UK.
In addition to the risk factors discussed below, further information about 
the business, its strategy, products and markets and its financial risks is 
contained in the Business Review on pages 10 to 17.
Principal risks and uncertainties
Advanced Medical Solutions Group plc is a business that depends on 
revenues through its sales to business partners and distributors and its 
direct sales to healthcare providers in the UK, Germany, the 
Czech Republic and Russia, together with a successful pipeline of  
new products through its research and development programme to 
build future revenues and a manufacturing capability to produce the 
products it sells.
Risk associated with global economic conditions
The Group has a widespread geographical market sector and customer 
base which minimises the impact of any single event. With an ageing 
population increasingly suffering health problems such as obesity and 
diabetes, the incidence of chronic wounds which are treated with 
advanced woundcare dressings is increasing and the demographics are 
beneficial for the Group. That said, the general economic climate is one 
where a number of governments particularly in Europe are looking to 
reduce spend on public services. Whilst healthcare may not be first 
target of such spending cuts, it is unlikely to be unscathed by austerity 
measures being undertaken, and some elective surgery procedures may 
be delayed. This could adversely affect revenues from products 
associated with the operating room.
Risk associated with revenue streams
The Group’s revenues are mainly from the sale of its products. The Group 
enters contractual relationships with its business partners wherever 
possible; however, there can be no guarantee that sales will be maintained 
or increased in future years. There has been consolidation in the healthcare 
sector in recent years which is ongoing. This presents both opportunities 
and risks. Consolidation could result in the loss of a partner which could 
have a material effect on the results of the Group.
Risk associated with reliance on key customers
The Group maintains close partnerships with a number of companies but 
aims not to have more than 20% of its revenues from any one partner. 
However, the loss of a key partner would impact the business significantly 
in the short term. With the acquisition of RESORBA®, the Group’s reliance 
on any one partner has decreased. The Group supports its partners and 
distributors with marketing assistance and with clinical trial programmes 
where possible to drive awareness of its products. There is a risk that if 
partners and distributors do not support the products or decide to 
change the focus of their priorities that opportunities are lost, resulting 
in revenue shortfall.
Directors’ Report
For the year ended 31 December 2011
Risk associated with pricing pressures and commoditisation  
of products
There are also risks from pricing pressure and from competition from 
other products, particularly when the economic climate is difficult.  
The Group seeks to provide differentiated products that are patented 
wherever possible to reduce the effects of competition.
Risk associated with recent acquisitions
The Group recently acquired the RESORBA® wound care and wound 
closure business based in Germany. In making any acquisition there is 
some risk that the business bought does not deliver the opportunities 
anticipated or that unanticipated problems arise. To mitigate this risk, 
detailed due diligence was undertaken to understand the business prior 
to it being acquired, and a detailed integration programme has been 
implemented to deliver the opportunities anticipated. Full use of advisors 
has been made throughout the process.
Risk associated with new products
The Group continues to invest in research and development to develop 
its next generation of products. By its nature, not all research leads to 
successful new products, although the Group believes that by 
monitoring progress against key milestones, it avoids excessive 
expenditure on projects that will not deliver a viable product. There is 
also the risk that the Group will not identify a new technology or 
opportunity before its competition and therefore miss an opportunity to 
gain competitive advantage.
Risk associated with manufacture and cost pressures
The Group is exposed to the risk that margins would be eroded if price 
increases occur in raw materials, and the price increases could not be 
passed on to the business partner or customer. Wherever possible the 
Group tries to maintain more than one source of the supply of key 
materials. Where materials can only be sourced from a sole supplier or 
are linked to commodity prices the Group includes pricing mechanism 
clauses in its contracts wherever possible. If a sole supplier stopped 
supplying a key material at short notice, it could result in an interruption 
of supply of goods until a suitable solution could be found.
Risk associated with product liability claims
As a manufacturer, the Group is exposed to potential product liability 
claims but has in place insurance cover to mitigate this risk. The Group’s 
products are subject to medical device regulatory approval and 
certification before launch. The Group’s manufacturing facilities are in 
compliance with ISO 13485, the latest international quality assurance 
standard to medical devices and receives regular inspection by 
regulatory authorities.
Risk associated with organisational structure and employee 
retention
The Group recognises that succession planning is key to the future of the 
business and that if this is not addressed, presents a risk to the Group. With 
the size of the Group increasing due to the recent acquisition, the 
organisation of the Group and the quality of its management becomes more 
important. As a consequence, the Board is reviewing the organisation of the 
Group to ensure that it is structured to deliver future growth.
Risk associated with business information systems 
As the Group continues to grow, there is a risk that the Group outgrows 
its information systems. The Group has reviewed its information systems 
and is implementing new systems across the business. The Group 
recognises that there are risks in implementing new information systems 
which need to be managed but to not upgrade systems presents a 
greater risk. 24 25 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Financial risk
The Group is subject to various financial risks including the following:
• Currency. The Group’s main currency exposure has been to the US 
dollar with around 20% of the Group’s sales denominated in US 
dollars. The acquisition of the RESORBA® business now means that the 
Group also has an exposure to the Euro as the majority of RESORBA®’s 
revenues are denominated in Euros. The Group’s policy is to hedge 
significant transaction exposure by using forward contracts and 
options. In 2011, if the average US dollar had depreciated against 
sterling by 10% more, the average rate would have had a £0.7 million 
(2010: £0.8 million) impact on revenue and the gross margin and 
profit would have been reduced by 1.1 percentage points (2010: 1.5). 
• Credit. The Group assesses the risk of contracting with each 
customer and sets credit limits which are carefully monitored. If a 
significant risk is identified credit facilities are withdrawn and 
transactions are carried out on a cash basis. However, if a key partner 
was significantly affected by a difficult trading environment, this 
would have a short-term impact on the Group.
• Price. Supplier costs, discounts and rebates are monitored and 
checked in line with budgets and documentary evidence. Wherever 
possible contracts are in place with key suppliers which define prices 
and terms. The Group estimates that if material prices had increased 
by a further 5% in 2011 and the Group was unable to pass the 
increases on there would have been a negative impact of £0.4 million 
(2010: £0.4 million) to the cost and the gross margin would have 
been reduced by 1 percentage point (2010: 1).
• Interest rate risk. The Group is subject to interest rate risk on its 
term loan and its Revolving Credit Facility if drawn. The Group’s policy 
is to review terms on a regular basis and where appropriate, convert  
a portion of its floating rate debt into fixed rate using interest rate 
swaps. At the end of the financial year, all of the Group’s debt was  
at a floating rate of interest.
Going concern
After making enquiries and based on the assumptions outlined in the 
Corporate Governance Report on page 31 the directors have a reasonable 
expectation that the Group has adequate resources to continue in 
operational existence for the foreseeable future and for this reason they 
continue to adopt the going concern basis in preparing the accounts.
Dividends
The Group made a profit for the year to 31 December 2011 of £4.9 million 
(2010: £4.8 million). The directors are recommending a payment of a 
final dividend of 0.305p per share. The final dividend will be subject to 
shareholders’ approval to be paid on 15 June 2012 to shareholders on the 
register at the close of business on 18 May 2012. This will make a total 
dividend of 0.45p for the full year (2010: 0.38p).
Research and Development
The Group has expensed to the income statement in the year ended  
31 December 2011 £1,255,000 (2010: £1,289,000) on research and 
development. In accordance with International Accounting Standards a 
further £266,000 (2010: £167,000) has been capitalised. Further details 
on the Group’s research and development activities are included in the 
Business Review on pages 10 to 17.
Creditors’ payment policy
The Group’s policy, for all suppliers, is to fix terms of payment when 
agreeing the terms of each business transaction, to ensure the supplier is 
aware of those terms, and to abide by the agreed terms of payment 
provided that the supplier performs its obligations. Where terms have 
not been specifically agreed, it is the Group’s practice to settle invoices in 
line with local and industry requirements. The Group’s trade creditors at 
31 December 2011 represented approximately 62 days of purchases 
(2010: 71 days).
Charitable and political contributions
The Group did not make any charitable or political contributions during 
the year (2010: £nil).
Share capital and issue of ordinary shares
The authorised and issued share capital of the Company is set out in 
Note 30 to the accounts on page 58.
Substantial shareholdings
The Company’s major shareholders at 8 April 2012 are:
No. of Ordinary 
Shares Per cent
Blackrock 14,734,821 7.24
Axa Investment Management 13,557,219 6.66
Standard Life Investments 12,570,000 6.17
Legal and General Investment Management 7,873,871 3.87
Octopus Investments 7,419,916 3.64
Ignis Asset Management 7,112,730 3.49
Axa Framlington Investment Management 6,565,649 3.22
Schoder Investment Management 6,523,214 3.20
Directors 6,483,002 3.19
Hargreave Hale 6,298,090 3.09
Employees
The Group is an equal opportunities employer. It is committed to giving 
fair and equal treatment to all employees and job applicants in terms of 
recruitment, pay conditions, promotions, training and all employment 
matters regardless of their race, sex, ethnic background or religious 
beliefs, sexual orientation or disabilities. An equal opportunities policy is 
in force which aims to ensure that all employees are selected, trained, 
compensated, promoted and transferred solely on the strength of their 
ability, skills, qualifications and merit. The Group also believes that all 
employees have a right to work in an environment free from 
discrimination and bullying.
The Group’s policy is to consult and discuss with employees, through 
meetings, both formal and informal, those matters likely to affect 
employees’ interests. The Employees’ Consultative Committee, which 
comprises representatives of employees and management, meets 
regularly to discuss business issues and areas of concern.
The Group’s aim is to recruit and retain sufficient skilled and motivated 
employees to meet the needs of the business. The Group operates to the 
internationally recognised medical device standard ISO 13485. Staff work 
within a defined quality system and are trained in Lean Manufacturing 
Practices. Each line manager is responsible for implementing this 
approach. Employees are incentivised directly through the Company’s 
bonus scheme, deferred share bonus schemes, performance reviews, 
and training and development opportunities. 
It is the Group’s policy to give full and fair consideration to all applications 
for employment from disabled persons having regard to their particular 
aptitudes and abilities and to encourage the training and career 
development of all personnel employed by the Group, including disabled 
persons. Should an employee become disabled, the Group would, where 
practicable, seek to continue the employment and arrange appropriate 
training.
Directors’ Report continued
For the year ended 31 December 2011 24 25 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
Employees’ share schemes
Employees, except for participants in the Long-Term Incentive Plan (LTIP), may be eligible after a period of service to be granted options over shares in 
the Company under the Company’s Executive Share Option Schemes. Options granted under these schemes are not offered at a discount. Further 
details are included in the Remuneration Report on pages 27 to 29.
The Company also operates a Deferred Share Bonus Scheme (DSB) in which all employees are invited to participate. The DSB encourages employee 
share ownership and aligns the employees’ interests with those of the shareholders. The details on the DSB Scheme are provided in the Remuneration 
Report on page 27.
The Company no longer satisfies the requirements for granting tax-efficient options under its EMI scheme. Options already granted under this scheme 
will be allowed to vest in accordance with the rules of the scheme.
The Group received HMRC approval in 2009 to adopt a Company Share Option Plan (CSOP). Under the CSOP, employees are allowed to receive up to 
£30,000 of options in a tax-efficient manner.  
Health and Safety
The Group is committed to high standards in health, safety and environmental performance. It is the Group’s policy to abide by all laws, directives and 
regulations pertinent to its field of operations and to act in a manner so as to minimise the effects of its operations on the environment. The Group 
provides safe places and systems of work, safe plant and machinery, safe handling of materials and that appropriate information, instruction and 
training is given. Employees are encouraged to identify ‘near misses’ to ensure preventative actions are taken to avoid any unsafe work practices. 
Emphasis is placed on all employees having a responsibility to maintain a safe working environment. Health & Safety Committees at all sites assist with 
advice on safe working practices and ensure any corrective action is taken where necessary. Regular audits are undertaken to evaluate compliance 
with Group policy.
Environment
Where possible, the Group aims to reduce its impact on the environment. The Group facility at Winsford has been built with a high level of thermal 
insulation to reduce the Group’s carbon footprint. It is also one of the first in the country to utilise a solar wall: a renewable energy source that 
captures the sun’s warmth and supplements the building’s heating system. Lighting is controlled by movement sensors to avoid wastage and the 
heating system is fully programmable.
Directors and their interests
The directors of the Company at 31 December 2011 and their interests, all of which are beneficially held, in the share capital of the Company were:
Ordinary shares of 5p each 
31 December 2011
Ordinary shares of 5p each 
31 December 2010
Shares DSBs LTIP Shares DSBs LTIP
D Evans 3,162,587 128,587 293,843 3,162,587 128,587 293,843
M Tavener 2,074,151 135,488 352,534 2,055,511 126,553 193,408
C Meredith 1,132,376 97,302 896,052 1,125,735 85,827 589,234
S Bellamy 100,000 – – 100,000 – –
P Freer 13,888 – – – – –
G Vernon – – – 1,000,000 – –
Further details of the directors’ remuneration and benefits are included in the Remuneration Report on pages 27 to 29.
The Board has agreed procedures for considering, and where appropriate, authorising directors’ situational conflicts. None of the directors had any 
interest during or at the end of the year in any contract in any relation to the business of the Company or its subsidiary undertakings.
Directors’ and officers’ liability insurance
Insurance cover is in force in respect of the personal liabilities which may be incurred by directors and officers of the Company in the course of their 
service with the Group.
Reappointment
At the forthcoming Annual General Meeting, Don Evans who was elected to Non-Executive Chairman on 1 January 2011 retires and formally offers 
himself for reappointment. As Don was not independent upon appointment he will be proposed for re-election annually. Chris Meredith will retire by 
rotation and, being eligible, will be proposed for reappointment. Details of the current directors of the Company are as shown on page 19. 26 27 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Directors’ responsibilities statement
The directors are responsible for preparing the Annual Report and the 
financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for 
each financial year. Under that law the directors are required to prepare 
the Group financial statements in accordance with International Financial 
Reporting Standards (IFRSs) as adopted by the European Union and 
Article 4 of the IAS Regulation and have elected to prepare the parent 
company financial statements in accordance with United Kingdom 
Generally Accepted Accounting Practice (United Kingdom Accounting 
Standards and applicable law). Under company law the directors must 
not approve the accounts unless they are satisfied that they give a true 
and fair view of the state of affairs of the Company and of the profit or 
loss of the Company for that period.
In preparing the parent Company financial statements, the directors are 
required to:
• select suitable accounting policies and then apply them consistently;
• make judgments and accounting estimates that are reasonable and 
prudent; and
• prepare the financial statements on the going concern basis unless it 
is inappropriate to presume that the Company will continue in 
business.
In preparing the Group financial statements, International Accounting 
Standard 1 requires that directors:
• properly select and apply accounting policies;
• present information, including accounting policies, in a manner that 
provides relevant, reliable, comparable and understandable 
information;
• provide additional disclosures when compliance with the specific 
requirements in IFRSs are insufficient to enable users to understand 
the impact of particular transactions, other events and conditions  
on the entity’s financial position and financial performance; and
• make an assessment of the Company’s ability to continue as a  
going concern.
The directors are responsible for keeping adequate accounting records 
that are sufficient to show and explain the Company’s transactions and 
disclose with reasonable accuracy at any time the financial position of 
the Company and enable them to ensure that the financial statements 
comply with the Companies Act 2006. They are also responsible for 
safeguarding the assets of the Company and hence for taking reasonable 
steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the 
corporate and financial information included on the Company’s website. 
Legislation in the United Kingdom governing the preparation and 
dissemination of financial statements may differ from legislation in  
other jurisdictions.
Responsibility statement
We confirm that to the best of our knowledge:
• the financial statements, prepared in accordance with the relevant 
financial reporting framework, give a true and fair view of the assets, 
liabilities, financial position and profit or loss of the Company and the 
undertakings included in the consolidation taken as a whole; and
• the management report, which is incorporated into the Directors’ 
Report, includes a fair review of the development and performance of 
the business and the position of the Company and the undertakings 
included in the consolidation taken as a whole, together with a 
description of the principal risks and uncertainties that they face.
Auditor
Each of the persons who is a director at the date of approval of this 
Annual Report confirms that:
• so far as the director is aware, there is no relevant audit information 
of which the Company’s auditor is unaware; and 
• the director has taken all the steps that he/she ought to have taken as 
director in order to make himself/herself aware of any relevant audit 
information and to establish that the Company’s auditor is aware of 
that information.
• This confirmation is given and should be interpreted in accordance 
with the provisions of S418 of the Companies Act 2006.
Deloitte LLP has expressed their willingness to continue in office as 
auditor and a resolution to reappoint them will be proposed at the 
forthcoming Annual General Meeting.
Special business
The effect of Resolution 8, to be proposed at the meeting would be  
to disapply the statutory pre-emption rights conferred by S570 of the 
Companies Act 2006.
The effect of Resolution 9 to be proposed at the meeting would be to 
allow the Company to purchase its own shares conferred by S701 of the 
Companies Act 2006. 
Annual General Meeting
The Annual General Meeting will be held at 11.00 am, on 12 June 2012  
at the Macdonald Portal Hotel, Cobblers Cross Lane, Tarporley, Cheshire 
CW6 0DJ. Details of the notice of the Annual General Meeting are given 
on pages 70 to 72. The Annual General Meeting provides an opportunity 
for private shareholders to question your Board and to meet informally 
with the executive management after the meeting.
On behalf of the Board
Mary Tavener
Company Secretary
27 April 2012
Directors’ Report continued
For the year ended 31 December 2011 26 27 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
Remuneration Report
As an AIM quoted company, Advanced Medical Solutions Group plc is not 
required to comply with the Directors’ Remuneration Report Regulations 
2002. The following disclosures are made voluntarily.
The members of the Remuneration Committee are all non-executive 
directors of the Group and have no personal financial interest arising 
from cross-directorship and no day-to-day involvement in running the 
business. The Committee met two times during the year.
The Board has accepted the Remuneration Committee’s 
recommendations in full.
The Remuneration Committee, on behalf of the Board and in 
consultation with the Chief Executive, determines the Group’s policy on 
executive remuneration, employment conditions and the individual 
remuneration packages of executive directors and management earning 
in excess of £100,000 per annum and administers the Share Option 
Schemes. It also determines the design of performance-related pay 
schemes, sets the targets for such schemes and approves payment 
under such schemes. The Terms of Reference of the Remuneration 
Committee were updated at the beginning of the year and are available 
for review on the Company’s web-site ‘www.admedsol.com’.
Remuneration policy
The remuneration policy is based on the need to offer competitive 
packages to attract and retain senior executives of the highest calibre. 
Regular reviews of the policy are carried out, supported by independent 
advice, to ensure that the range and level of emoluments and incentive 
schemes continue to match current market practice. Kepler Associates 
were engaged in February 2012 to advise the Remuneration Committee 
with regard to the remuneration of the executives and senior management 
and the Remuneration Committee is reviewing the advice received.
Salary
Salaries are measured against performance and market medians.
Annual performance bonus
The service agreements provide that each executive director shall be entitled 
to receive an annual bonus to be determined by the Remuneration 
Committee based on the Group’s financial and operating performance. Each 
participant may receive up to 60% of his or her salary dependent upon 
performance measured against targets resulting from the completion of the 
Group’s business plan, the performance of the Group and other personal 
targets. Half of any bonus earned over the first 20% is deferred as part of the 
Deferred Bonus Scheme. Shares are acquired and placed in Trust.
Share options
Employees, except for participants in the Long-Term Incentive Plan (LTIP), 
may be granted options over shares in the Company under the Company’s 
Executive Share Option Schemes, under which both approved and 
unapproved options may be granted. Options granted under these 
schemes are not offered at a discount.
The exercising of options under these schemes is conditional on certain 
performance conditions which are pre-determined by the Remuneration 
Committee and which accord with the Joint Statement from the 
Investment Committees of the Association of British Insurers and the 
National Association of Pension Funds. Options are exercisable normally 
only after the third anniversary of the date of grant (or such later time as 
may be determined at the time of grant) and cannot in any event be 
exercised later than the tenth anniversary of the date of grant. Awards will 
not vest if the Group is not profitable at the end of the performance 
period. Full details are included in note 33 on pages 59 to 63.
Company Share Option Scheme (CSOP)
The Company received approval for a Company Share Option Scheme 
(CSOP) on 2 June 2010. This was adopted after HMRC approval on  
13 August 2010. This Scheme will allow relevant employees to benefit in 
the growth of the value of AMS shares subject to a £30,000 limit by 
reference to the market value of these shares on the grant date.
2009 Executive Share Option Scheme
Options granted under this scheme are not offered at a discount. Up 
until 2010, the Company was able to offer options under an Enterprise 
Management Incentive (EMI) Scheme. The Company no longer satisfies 
the requirements for operating this scheme, however, options already 
granted will be allowed to vest in accordance with the scheme rules.
Long-term incentives
The Company’s Long-Term Incentive Plan (LTIP) was introduced in 2005. 
Individuals who are entitled to awards under the LTIP are not eligible to 
receive options under the Company’s Executive Share Option Schemes. 
The objectives of the LTIP are to align the interests of executives with 
those of shareholders by making a part of remuneration dependent on 
the success of management in delivering superior returns to shareholders. 
50% of the Award is determined based on the performance of the 
Company compared with the AIM Healthcare Share Index over the 
vesting period and 50% of the Award is determined by the growth in the 
average earnings per share per year of the Company over the three year 
vesting period.
Of the 50% of the Award that is determined by reference to the AIM 
Healthcare Share Index, no shares will be awarded if the Company is 
ranked below the 50% level. If the Company is ranked in the upper 
quartile of the index ie. at 75% or above, the full 50% of the Award shall 
become vested. If the Company is ranked between 50% and 75%, the 
provision of an Award which shall become vested shall be determined on 
a straight-line basis between 0% and 50%.
The other 50% of the Award will be vested if the Company achieves an 
average of 30% or more earnings per share (pre-exceptional items) growth 
per year. No Award will be vested if the Company achieves less than 10% 
earnings per share (pre-exceptional items) growth in any one year.
The proportion of the Award that shall become vested if the Company 
achieves an average earnings per share growth per year between 10% 
and 30% shall be on a straight-line basis between 0% and 50%.
Deferred Share Bonus Plan
The Company also has a Deferred Share Bonus Plan (the ‘DSB’) which  
is available to all employees. The DSB allows for the payment of any 
bonus to be made in the form of shares. It also allows for the provision of 
additional matching shares if the bonus shares are held for a set period. 
The DSB encourages employees to acquire shares in the Company and 
retain those shares to receive additional free shares from the Company.  
It acts as a valuable retention tool and aligns the employees’ interests 
with those of shareholders. The first year that the DSB operated was  
in 2007. 
Pension
Executive directors are entitled to become members of the Group 
Pension and Life Assurance Scheme, which was set up with effect from  
1 February 1999. This covers all employees and requires a contribution of 
3% of salary by the employee and 6% by the Group. Executive directors 
may contribute up to 10% of salary, and the Group contributes 10%. The 
Pension Plan is a money purchase scheme. In 2011, the Group has set up 
a salary sacrifice arrangement for all employees. Individuals have the 
opportunity to sacrifice their salary and allow the Company to make 
payments into the pension scheme directly on their behalf. 28 29 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Service agreements
The service agreements for Chris Meredith and Mary Tavener are terminable by either party giving not less than 12 months’ notice in writing.
Private healthcare
Executive directors are entitled to private healthcare and permanent health insurance.
Non-executive directors
The fees of the non-executive directors are determined by the executive directors. Non-executive directors receive travel expenses but do not 
participate in any incentive arrangements. The non-executive directors have entered into terms of appointment. The non-executive directors’ 
appointments are terminable by either party upon six months’ notice in writing. Upon becoming Non-Executive Chairman in January 2011, new terms 
of appointment were agreed with Don Evans. His appointment as Non-Executive Chairman was agreed for an initial term of one year. Thereafter, his 
appointment is terminable by either party upon six months’ notice in writing.
As a result of his previous position as Chief Executive Officer, Don Evans has LTIPs issued with a vesting date of 23 April 2012. The Remuneration 
Committee has recommended and the Board has agreed that these LTIPs be allowed to vest in the normal way, subject to the usual performance 
conditions. As the Non-Executive Chairman, Don Evans will no longer be eligible to receive future LTIPs.
Don Evans also has bonuses earned in earlier years deferred as part of the Deferred Bonus Scheme. The Remuneration Committee has recommended 
that Don Evans should be allowed to leave his shares in the scheme for the normal retention time and not be required to withdraw them early from 
the scheme.
Directors’ emoluments
Salary & fees 
£’000
Annual bonus 
£’000 
LTIPs exercised 
during 
the year
£’000 
Benefits 
£’000
Pension 
£’000
Total year 
ending 
2011 
£’000
Total year 
ending 
2010 
£’000
Executive
Chris Meredith 180 49 – 1 24 254 191
Mary Tavener 131 42 – 1 24 198 169
Non-Executive
Don Evans
(i)
50 66 – – – 116 246
Steve Bellamy 33 – – – – 33 31
Penny Freer 34 – – – – 34 28
Geoffrey Vernon
(iii)
– – – – – – 75
Steve Harris
(ii)
– – – – – – 15
428 157 – 2 48 635 755
(i) Don Evans was an executive in 2010.
(ii) Steve Harris retired from the Board in June 2010.
(iii) Geoffrey Vernon retired from the Board in December 2010.
The table above summarises the payments made to the directors for the 2011 financial year.
The annual bonus paid to the executive directors is in respect of 2010 financial year. Bonuses to the directors are not determined until the financial 
results have been audited and approved by the Board.
In 2010, the directors exercised options and received LTIPs. The market price of the shares at this time was 35p. Don Evans received 3,001,173 shares 
under the LTIP valued at £1,050,410 and made a gain of £160,333 on his 616,666 options. Mary Tavener received 2,214,571 shares under the LTIP 
valued at £775,100 and made a gain of £78,000 on her 300,000 options. Chris Meredith received 1,208,000 shares under the LTIP valued at £422,800. 
This remuneration is not included in the 2010 comparator in the table above.
The opening share price for 2011 was 73p and the closing price on the last trading day of the year, was 92p. The range during the year was 94.25p 
(high) and 66p (low). (Source: daily official list of the London Stock Exchange.)
Remuneration Report continued 28 29 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
Directors interests in the Long-Term Incentive Plan (LTIP)
The maximum number of shares to be allocated to the directors under the LTIP, in each case for an aggregate consideration of £1, are as follows:
As at 31 
December 
2010
Exercised in 
the year
Issued in the 
year
As at 31 
December 
2011
Market price 
at date of 
grant (p)
First 
vesting 
date
Don Evans 293,843 – – 293,843 33.30 23 April 2012
Mary Tavener 193,408 – – 193,408 33.30 23 April 2012
– – 159,126 159,126 88.00 15 April 2014
Chris Meredith 589,234 – – 589,234 33.30 23 April 2012
– – 306,818 306,818 88.00 15 April 2014
The entitlement to shares under the LTIP is subject to achieving the performance conditions referred to on page 27. The figures shown are maximum 
entitlements and the actual number of shares (if any) will depend on these performance conditions being achieved. 
Awards made have no performance re-testing facility.
Five-year share performance
For the five-year period ending 30 March 2012 Advanced Medical Solutions Group plc share price has outperformed the FTSE All Share Index by 435%,  
FTSE Techmark All-Share Index by 258%, FTSE All-Share Health Care Index by 371% the FTSE Small Cap Index by 525% and FTSE AIM All-Share Index  
by 605%.
Mary Tavener
Company Secretary
27 April 2012
Advanced Medical Solutions FTSE Techmark All Share Index
FTSE Small Cap Index
FTSE All Share Index
FTSE AIM All Share Index FTSE All Share Healthcare Index
Mar 2007 Sep 2007 Mar 2008 Sep 2008 Mar 2009 Sep 2009 Mar 2010 Sep 2010 Mar 2011 Sep 2011 Mar 2012
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Share price movement (rebased to 100) 30 31 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Corporate Governance Report
UK Corporate Governance Code
The Board is committed to the principles of corporate governance and, 
although as an AIM quoted company, the Company is not bound by the 
UK Corporate Governance Code 2010 (“the Code”), the directors have 
applied the Code in a manner which they consider appropriate for the 
size of the Group. The departures considered more significant by the 
directors are mentioned below.
Board composition
The Board comprises the non-executive Chairman, the Chief Executive, 
the Group Finance Director and two non-executive directors. The 
non-executive directors, both of whom are considered by the Board to 
be independent, bring significant experience of senior roles to their 
stewardship of the Group’s business. The Chairman fosters a climate of 
relaxed debate and challenge in the boardroom. This is built on his 
challenging but supportive relationship with the Chief Executive which 
sets the tone for Board interaction and discussions.
The Chairman, Don Evans, who was previously the Chief Executive Officer 
of the Group, is not considered to be an independent non-executive 
director. 
The Board is aware that appointing the Chief Executive Officer to the role 
of Chairman does not comply with the independence criteria specified in 
A.3.1 of the Code. The remainder of the Board believes that Don Evans’s 
considerable experience in the sector and with the Group significantly 
outweighs any disadvantages that his lack of independence could 
potentially bring. The opinions of major shareholders and advisors were 
sought in advance of this decision being taken. Don Evans was not 
involved in the Board decision surrounding his appointment. 
All directors are required to stand for re-election at the first Annual 
General Meeting following their appointment and, as a minimum, every 
three years thereafter. Don Evans will be standing for re-election at the 
next AGM and, because he is deemed non-independent, every year 
thereafter.
Senior Independent Director
In 2010 Penny Freer was appointed as Senior Independent Director. 
Board committees
The Board has delegated specific authority to the Remuneration 
Committee, Nomination Committee and the Audit Committee. 
Don Evans, Penny Freer and Steve Bellamy are the members of the 
Remuneration and Audit Committee. 
Most Board Committee meetings are scheduled around Board meetings. 
The Terms of Reference of all three Board Committees are given on our 
corporate website ‘www.admedsol.com’.
Role of the Board
The Board retains full and effective control of the Group and has a 
schedule of matters specifically reserved for its decision. The Board meets 
on a formal basis regularly, and met formally 14 times in 2011. All of the 
directors attended all of the meetings. The Board’s practice is to hold at 
least one meeting per year at each of the Group’s offices. The Board is 
responsible for formulating the Group’s corporate strategy, approval of 
budgets, monitoring financial performance, approval and review of major 
capital expenditure, corporate governance and risk management. 
Operational control is delegated to the executive directors and the Senior 
Management Team (SMT). The SMT meets monthly. 
All directors have access to the advice and services of the Company 
Secretary and can take independent professional advice, if necessary, at 
the Group’s expense. The non-executive directors are able to contact the 
executive directors at any time for further information.
Board evaluation
The Board and its Committees formally evaluate their performance 
annually. Each director completes a comprehensive questionnaire. The 
results are collated, discussed and acted upon by the Board. 
Professional advice, indemnities and insurance
There is provision for directors to take independent professional advice 
relating to the discharge of their responsibilities should they feel they 
need it. The Company has arranged directors’ and officers’ liability 
insurance against certain liabilities and defence costs. However, the 
directors’ insurance does not provide protection in the event of a 
director being found to have acted fraudulently or dishonestly. 
Investor relations
The Board maintains a regular dialogue with its shareholders, mainly in 
the periods following the announcement of the interim and final results, 
but also at other times during the year. The views of shareholders are 
sought through direct contact and via feedback from advisors and are 
communicated to the Board as a whole. The Board encourages the 
participation of shareholders at its Annual General Meeting, notice of 
which is sent to shareholders at least 20 working days before the 
meeting. The AMS website ‘www.admedsol.com’ is regularly updated 
and provides additional information on the Group including information 
on the Group’s products and technology.
The Company proposes separate resolutions for each separate issue and 
specifically relating to the reports and accounts. The Company ensures 
all proxy votes are counted and indicates the level of proxies on each 
resolution along with the abstentions after it has been dealt with on a 
show of hands.
Annual General Meeting
This year’s AGM will, as last year, include a detailed presentation by the 
Chief Executive on the current progress of the business and the 
opportunity for follow up questions on this or any of the resolutions 
before the meeting. After the meeting, shareholders will have the 
opportunity to talk informally to the Board and Company staff and raise 
any further questions or issues they may have. The outcome of the AGM 
and a copy of the AGM presentation will be posted on the Company’s 
website after the meeting. 
Internal control and risk management
The Board is responsible for the Group’s system of internal control and 
for reviewing its effectiveness, taking guidance from the Audit 
Committee. In the context of the Group’s business any such system can 
only reasonably be expected to manage rather than eliminate risks 
arising from its operations. It can therefore only provide reasonable and 
not absolute assurance against material loss or misstatement.
Key features of the internal control system are as follows:
• The Group has an organisational structure with clearly established 
responsibilities and lines of accountability. The Group promotes the 
values of integrity and professionalism. The members of the Board 
are available to hear, in confidence, any individuals concerns about 
improprieties.
• The Board has a schedule of matters expressly reserved for its 
consideration. This schedule includes potential acquisitions, major 
capital projects, treasury, risk management policies, approval of 
budgets and health & safety. 30 31 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
• An ongoing risk management process has been implemented which 
identifies the key business risks facing the Group including both 
financial and operational risks. This process, the key business risks 
identified and the controls to mitigate the risks are reviewed by the 
Audit Committee and then by the Board at least twice a year.
• The controls in place to minimise the possibility of the occurrence  
of the risk are documented and analysed for effectiveness. These 
include procedures for the approval of major expenditure or 
commitment of resources.
• The Board monitors the activities of the Group through the 
management accounts, monthly forecasts and other reports on 
current activities and plans. The Senior Management Team regularly 
monitors financial and operational performance in detail and takes 
any necessary corrective action.
• The Group operates a ‘whistle-blowing’ policy enabling any individual 
with a concern to approach the non-executives in confidence.
The Board reviews the effectiveness of the Group’s procedure in managing 
risk and, therefore, believes it meets the requirements of the Guidance.
Audit Committee 
The Audit Committee currently comprises Don Evans, Penny Freer and 
Steve Bellamy and has Terms of Reference that are reviewed at least 
annually. The Chair is Steve Bellamy, a qualified Chartered Accountant. 
The Assistant Company Secretary acts as Secretary to the Committee.
The Committee met three times during the year. The Chief Executive 
Officer, Group Finance Director and Group Financial Controller and the 
external audit partner also attended these meetings. The Audit 
Committee also met with the external audit partner without the 
executives and senior managers present. The role of the Committee is to:
• consider the appointment, fees and independence of the auditors 
and discuss the scope of the audit and its findings
• monitor the Group’s accounting policies 
• review and challenge the Group’s assessment of business risks and 
internal controls to mitigate these risks as well as reviewing the 
annual and interim statements prior to their submission for approval 
by the Board
• review and challenge the Going Concern assumptions for the Group
• review the Group’s Whistle-blowing and Fraud policy; and
• review the Group’s need for an internal audit function
It is the task of the Audit Committee to ensure that auditor objectivity 
and independence is safeguarded when non-audit services are provided 
by the auditor. To ensure auditor objectivity and independence there is a 
process in place to approve any non-audit work.
Internal Audit
The Audit Committee has considered the need for an internal audit 
resource. In 2011, the Audit Committee was of the opinion that, given 
the size and nature of the Group’s operations and the other controls in 
place, it was not appropriate at that time. The matter is formally 
reviewed at least annually. As a result of this review, the external auditor 
was engaged to review the Group’s risk management process and the 
controls in place to mitigate the risk. The Audit Committee has reviewed 
and acted on the recommendations made. Since the acquisition of 
RESORBA®, the size and complexitiy of the Group has increased. The 
Audit Committee is currently reconsidering the need for an Internal Audit 
function and how this may be best achieved.
The Group also calls on the services of external bodies to review the 
controls in certain areas of the Group. The quality assurance systems are 
reviewed by the Group’s notified bodies, the British Standards Institution 
(BSI), TUV Product Service and Lloyd’s Quality Register Assurance on a 
regular basis. 
Nomination Committee 
The Nomination Committee nominates and recommends the 
appointment of new directors to the Board, considers succession planning 
for directors and other senior management, and membership of the Audit 
and Remuneration Committees in consultation with the Chairman of the 
Committee. In making recommendations, the Committee takes into 
account the balance of skill, knowledge and experience of the Board and 
gives due regard to the benefits of diversity of the Board, including gender. 
The Committee is chaired by the Chairman of the Group and comprises 
the non-executive directors and the Chief Executive Officer. The 
Nomination Committee has Terms of Reference that are reviewed at least 
annually. Management development and succession discussions are 
supported and attended by the Group HR Manager. The Assistant 
Company Secretary acts as Secretary to the Committee.
The Committee met formally once during the year.
Remuneration Committee
The Remuneration Committee currently comprises Don Evans,  
Penny Freer and Steve Bellamy and has Terms of Reference that are 
reviewed at least annually. The Committee is chaired by Penny Freer and, 
in consultation with the Chief Executive, determines the Group’s policy 
on executive remuneration, employment conditions, and the individual 
remuneration packages of executive directors and senior management 
earning in excess of £100,000 per annum. It also approves all new 
incentive schemes, the grants of options under the Group’s Share Option 
Schemes, and the grant of shares under the Group’s Long-Term Incentive 
Plan (LTIP). The Assistant Company Secretary acts as Secretary to the 
Committee. The Remuneration Committee met two times in 2011 and 
its report is included on pages 27 to 29.
Going concern
In carrying out their duties in respect of going concern, the Directors 
have carried out a review of the Group’s financial position and cash flow 
forecasts for the next 12 months. These have been based on a 
comprehensive review of revenue, expenditure and cash flows, taking 
into account specific business risks and the current economic 
environment.
With regard to the Group’s financial position, it had cash and cash 
equivalents at the year-end of £7.1 million. The Group also has in place a 
revolving credit facility of €25 million which expires on 31 July 2015.
While the current economic environment is uncertain, AMS operates in a 
market whose demographics are favourable, underpinned by an 
increasing need for products to treat chronic and acute wounds. 
Consequently, market growth is predicted. The Group has a number of 
long-term contracts with customers across different geographic regions 
and also with substantial financial resources, ranging from government 
agencies through to global healthcare companies.
Having taken the above into consideration the Directors have reached 
the conclusion that the Group is well placed to manage its business risks 
in the current economic environment. Accordingly, they continue to 
adopt the going concern basis in preparing the financial statements.
Mary Tavener
Company Secretary
27 April 2012 32 33 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
We have audited the financial statements of Advanced Medical Solutions Group plc for the year ended 31 December 2011 which comprise the 
Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the 
Consolidated Statement of Changes in Equity, the Consolidated Statement of Cash Flows, the Company Balance Sheet, the related consolidated 
notes 1 to 35, and the related Company notes 1 to 9. The financial reporting framework that has been applied in the preparation of the Group 
financial statements is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union. The financial 
reporting framework that has been applied in the preparation of the parent company financial statements is applicable law and United Kingdom 
Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work 
has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for 
no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the 
Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditor
As explained more fully in the Directors’ Responsibilities Statement, the directors are responsible for the preparation of the financial statements and 
for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance 
with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s 
Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the 
financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting 
policies are appropriate to the Group’s and the parent company’s circumstances and have been consistently applied and adequately disclosed; the 
reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we 
read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements. If 
we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
In our opinion:
• the financial statements give a true and fair view of the state of the Group’s and of the parent company’s affairs as at 31 December 2011 and of 
the Group’s profit for the year then ended;
• the Group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union;
• the parent company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting 
Practice; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent with 
the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches 
not visited by us; or
• the parent company financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
William Smith (Senior statutory auditor)
for and on behalf of Deloitte LLP
Chartered Accountants and Statutory Auditor
Manchester, United Kingdom
27 April 2012
Independent Auditor’s Report to the Members 
of Advanced Medical Solutions Group Plc 32 33 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Financial Statements Corporate Governance
Year ended 31 December 2011 Year ended 31 December 2010
Note
Before 
exceptional 
items 
£’000
Exceptional 
items
(note 6)
£’000
Total
£’000
Before 
exceptional 
items 
£’000
Exceptional 
items
(note 6)
£’000
Total
£’000
Revenue from continuing operations 4 34,353 – 34,353 31,881 – 31,881
Cost of sales (18,153) – (18,153) (17,144) – (17,144)
Gross profit 16,200 – 16,200 14,737 – 14,737
Distribution costs (314) – (314) (307) – (307)
Administration costs (9,714) (1,807) (11,521) (9,263) (1,001) (10,264)
Other income 226 – 226 173 – 173
Profit from operations 4, 5 6,398 (1,807) 4,591 5,340 (1,001) 4,339
Finance income 11 75 – 75 12 – 12
Finance costs 12 (79) – (79) (60) – (60)
Profit before taxation 6,394 (1,807) 4,587 5,292 (1,001) 4,291
Income tax 13 263 – 263 542 – 542
 
Profit for the year attributable to equity holders  
of the parent 6,657 (1,807) 4,850 5,834 (1,001) 4,833
Earnings per share
Basic 15 4.26p (1.16p) 3.10p 3.83p (0.66p) 3.17p
Diluted 15 4.17p (1.13p) 3.04p 3.77p (0.65p) 3.12p
The above results relate to continuing operations.
Consolidated Statement of Comprehensive 
Income
For the year ended 31 December 2011
Year ended
31 December 
2011
£’000
Year ended
31 December 
2010
£’000
Profit for the year 4,850 4,833
Exchange differences on translation of foreign operations (158) (257)
Gain/(loss) arising on cash flow hedges 134 (76)
Other comprehensive income for the year (24) (333)
Total comprehensive income for the year attributable to equity holders of the parent 4,826 4,500
Consolidated Income Statement
For the year ended 31 December 2011 34 35 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Note
2011
£’000
2010 
£’000
Assets
Non-current assets
Acquired intellectual property rights 16 12,658 1,062
Software intangibles 16 816 16
Development costs 16 951 771
Goodwill 19 39,259 2,878
Property, plant and equipment 17 16,954 12,828
Deferred tax assets 18 3,524 2,756
Trade and other receivables 21 19
74,183 20,330
Current assets
Inventories 20 6,714 2,498
Trade and other receivables 21 11,098 6,035
Current tax assets 408 –
Cash and cash equivalents 22 7,122 4,122
25,342 12,655
Total assets 99,525 32,985
Liabilities
Current liabilities
Trade and other payables 23 8,300 3,798
Current tax liabilities 264 –
Other taxes payable 272 424
Other loans 24 1,965 18
Obligations under finance leases 24 21 19
10,822 4,259
Non-current liabilities
Trade and other payables 23 625 677
Other loans 25 18,507 226
Deferred tax liabilities 18 3,353 –
Obligations under finance leases 25 6 23
22,491 926
Total liabilities 33,313 5,185
Net assets 66,212 27,800
Equity
Share capital 30 10,176 7,740
Share premium 31,704 306
Share-based payments reserve 779 442
Investment in own shares 31 (40) (37)
Share-based payments deferred tax reserve 631 397
Other reserve 31 1,531 1,531
Hedging reserve 32 (102)
Translation reserve (141) 17
Retained earnings 21,540 17,506
Equity attributable to equity holders of the parent 66,212 27,800
For 2010, the translation reserve has been restated to show the impact of hedging as a separate reserve.
The financial statements on pages 33 to 64 were approved by the Board of Directors and authorised for issue on 27 April 2012 and were signed on its 
behalf by:
Chris Meredith
Chief Executive Officer
27 April 2012
Consolidated Statement of Financial Position
At 31 December 2011 34 35 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
Share capital
£’000
Share 
premium
£’000
Share-based 
payments
£’000
Investment in 
own shares
£’000
Share-based 
payments 
deferred tax 
£’000
Other reserve
£’000
Restated 
hedging 
reserve
£’000
Restated 
translation 
reserve
£’000
Retained 
earnings
£’000
Total
£’000
At 1 January 2010 7,248 99 502 (27) 576 1,531 (26) 274 12,673 22,850
Consolidated profit 
for the year to  
31 Dec 2010 – – – – – – – – 4,833 4,833
Other 
comprehensive 
income – – – – – – (76) (257) – (333)
Total comprehensive 
income – – – – – – (76) (257) 4,833 4,500
Share-based 
payments – – 282 – – – – – – 282
Issue of share capital 5 – – – – – – – – 5
Share options 
exercised 487 207 (342) – (179) – – – – 173
Shares purchased 
by EBT
(1)
– – – (191) – – – – – (191)
Shares sold by EBT
(1)
– – – 181 – – – – – 181
At 31 December 
2010 7,740 306 442 (37) 397 1,531 (102) 17 17,506 27,800
Consolidated profit 
for the year to  
31 Dec 2011 – – – – – – – – 4,850 4,850
Other 
comprehensive 
income – – – – – – 134 (158) – (24)
Total comprehensive 
income – – – – – – 134 (158) 4,850 4,826
Share-based 
payments – – 337 – 234 – – – – 571
Issue of share capital 
(net of expenses of 
£988,000) 2,411 31,316 – – – – – – – 33,727
Share options 
exercised 25 82 – – – – – – – 107
Shares purchased 
by EBT
(1)
– – – (75) – – – – – (75)
Shares sold by EBT
(1)
– – – 72 – – – – – 72
Dividends paid – – – – – – – – (816) (816)
At 31 December 
2011 10,176 31,704 779 (40) 631 1,531 32 (141) 21,540 66,212
For 2010, the translation reserve has been restated to show the impact of hedging as a separate reserve.
(1) EBT – Employee Benefit Trust.
Consolidated Statement of Changes in Equity
Attributable to equity holders of the Group 36 37 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Note
Year ended
31 December 
2011
£’000
Year ended
31 December 
2010
£’000
Cash flows from operating activities
Profit from operations 4,591 4,339
Adjustments for:
Depreciation 1,115 1,077
Amortisation – intellectual property rights 168 168
 – development costs 85 121
 – software intangibles 12 23
(Increase)/decrease in inventories (936) 676
(Increase)/decrease in trade and other receivables (3,029) 880
Increase/(decrease) in trade and other payables 2,574 (502)
Share-based payments expense 337 282
Net cash inflow from operating activities 4,917 7,064
Cash flows from investing activities
Purchase of software (812) (5)
Capitalised research and development (266) (167)
Purchases of property, plant and equipment (1,461) (3,685)
Interest received 75 12
Acquisition of subsidiary 32 (53,130) (1,255)
Net cash used in investing activities (55,594) (5,100)
Cash flows from financing activities
Dividends paid (816) –
Finance lease (20) (19)
Repayment of secured loan (251) (18)
New bank loan raised 20,921 –
Debt issue costs (56) –
Issue of equity shares 33,902 359
Shares purchased by EBT
(1)
(75) (191)
Shares sold by EBT
(1)
72 181
Interest paid (68) (54)
Net cash from financing activities 53,609 258
Net increase in cash and cash equivalents 2,932 2,222
Cash and cash equivalents at the beginning of the year 4,122 1,992
Effect of foreign exchange rate changes 68 (92)
Cash and cash equivalents at the end of the year 7,122 4,122
(1) EBT – Employee Benefit Trust.
Consolidated Statement of Cash Flows
For the year ended 31 December 2011 36 37 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
1. Reporting entity
Advanced Medical Solutions Group plc (the Company) is a public limited company incorporated and domiciled in England and Wales (registration 
number 2867684). The Company’s registered address is Premier Park, 33 Road One, Winsford Industrial Estate, Cheshire, CW7 3RT.
The Company’s ordinary shares are traded on the AIM market of the London Stock Exchange plc. The consolidated financial statements of the 
Company for the 12 months ended 31 December 2011 comprise the Company and its subsidiaries (together referred to as the “Group”).
The Group is primarily involved in the design, development, licensing, manufacture and distribution of novel high performance polymers (both 
natural and synthetic) for use in advanced woundcare dressings and materials, and medical adhesives, for closing and sealing tissue. With the recent 
acquisition of the RESORBA® business in Germany, the Group has gained further technical capabilities in collagen and in sutures. The Group distributes 
its products to the global device market by selling to healthcare companies, distributors and directly into the hospital and dental market in Germany, 
the Czech Republic and Russia and to the NHS in the UK.
2. Basis of preparation
The Group accounts have been prepared in accordance with International Financial Reporting Standards (IFRSs), as adopted by the EU. For 2010 the 
translation reserve has been restated to show the impact of hedging as a separate reserve.
The financial statements have been prepared on the historical cost basis of accounting except as disclosed in the accounting policies set out below.
The individual financial statements for each Group company are presented in the currency of the primary economic environment in which it operates (its 
functional currency). For the purpose of the consolidated financial statements, the results and financial position of each Group company are expressed in 
pounds sterling, which is the functional currency of the Company, and the presentation currency for the consolidated financial statements.
In carrying out their duties in respect of going concern, the directors have carried out a review of the Group’s financial position and cash flow 
forecasts for the next 12 months. These have been based on a comprehensive review of revenue, expenditure and cash flows, taking into account 
specific business risks and the current economic environment. 
With regard to the Group’s financial position, it had cash and cash equivalents at the year-end of £7.1 million, and a €25 million term loan repayable 
by 31 July 2015 which was fully drawn down. The Group also has in place a revolving credit facility of £8 million, which has not been drawn down and 
expires on 31 July 2015.
While the current economic environment is uncertain, AMS operates in markets whose demographics are favourable, underpinned by an increasing 
need for products to treat chronic and acute wounds. Consequently, market growth is predicted. The Group has a number of long-term contracts 
with customers across different geographic regions and also with substantial financial resources, ranging from government agencies through to 
global healthcare companies.
Having taken the above into consideration the directors have reached a conclusion that the Group is well-placed to manage its business risks in the 
current economic environment. Accordingly, they continue to adopt the going concern basis in preparing the accounts.
The Group has applied IAS 24 (revisions 2010), IFRIC 14 (amendments 2010) and improvements to IFRS (2010). These have had no significant impact on 
this set of financial statements.
3. Accounting policies
Use of estimates and judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of 
accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates. Estimates and 
underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is 
revised and in any future periods affected. 
Impairment of goodwill
Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating units to which the assets have been 
allocated. The value in use calculation requires the Group to estimate the future cash flows expected to arise from the cash-generating unit and a 
suitable discount rate to calculate present value.
Capitalisation of development costs
In determining the development expenses to be capitalised, estimates and assumptions are required based on expected future economic benefits 
generated by products that are the result of these development costs. Other important estimates and assumptions in this assessment process are the 
required internal rate of return, the distinction between research and development and the estimated useful life.
Share-based payment
The charge to the income statement in relation to options and incentive plans is based on the Black-Scholes Merton or the Binomial Theorem 
valuation technique. This technique requires a number of assumptions to be made such as those in relation to share price volatility, movement in 
interest rates, dividend yields and staff behavioural patterns.
Notes Forming Part of the Consolidated Financial 
Statements 38 39 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
3. Accounting policies continued
Inventory impairment provisions
The Group makes provisions for inventory deemed to be obsolete or slow-moving. This provision is established on each individual stock keeping unit 
(SKU) based on the age of the stock, the forward order book, management’s experience and its assessment of the present value of estimated future 
cash flows.
Receivables impairment provisions
The amounts presented in the balance sheet are net of allowances for doubtful receivables, estimated by the Group’s management based on prior 
experience and their assessment of the present value of estimated future cash flows.
Deferred tax
A deferred tax asset is recognised when it is judged probable that the Group will generate taxable profits in the foreseeable future which can be offset 
against tax losses.
Basis of consolidation
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating policies of an 
entity so as to retain benefits from its activities. The financial statements of the subsidiaries are included in the consolidated financial statements on 
the basis of acquisition accounting, from the date that control commences until the date that control ceases.
Intercompany transactions and balances between Group entities are eliminated upon consolidation.
Business combinations
The acquisition of subsidiaries is accounted for using the purchase method. The cost of the acquisition is measured at the aggregate of the fair values, 
at the date of exchange, of assets given, liabilities incurred or assumed, the equity instruments issued by the Group in exchange for control of the 
acquiree, plus any costs directly attributable to the issue of debt or equity. Acquisition-related expenses are accounted for as expenses in the period 
in which the costs are incurred and the services rendered with the exception of directly attributable costs incurred as a result of raising equity, which 
are off-set against share premium, and raising debt, which are capitalised and amortised over the term of the debt. The acquiree’s identifiable assets, 
liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 are recognised at their fair value at the acquisition date, 
except for non-current assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-Current Assets Held for Sale and 
Discontinued Operations, which are recognised and measured at fair value less costs to sell.
Goodwill arising on acquisition is recognised as an asset and initially measured at cost, being the excess of the cost of the business combination over 
the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised. If, after reassessment, the Group’s 
interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities exceeds the cost of the business combination, the 
excess is recognised immediately in profit or loss.
Goodwill
Goodwill arising on consolidation represents the excess of the cost of acquisition over the Group’s interest in the fair value of the identifiable assets 
and liabilities of a subsidiary, associate or jointly controlled entity at the date of acquisition. Goodwill is initially recognised as an asset at cost and is 
subsequently measured at cost less any accumulated impairment losses. Goodwill which is recognised as an asset is reviewed for impairment at least 
annually. Any impairment is recognised immediately in profit or loss and is not subsequently reversed.
Revenue recognition
Revenue represents the fair value of sales of the Group’s products to external customers at amounts excluding value added tax, and is recognised 
when the products have been delivered and title has passed. Revenue is recognised to the extent that it is probable that the economic benefits will 
flow to the Group and the revenue can be reliably measured. 
Revenue from royalty income receivable under licence agreements from external customers at amounts excluding value added tax is recognised as 
the products under licence are sold and the revenue can be reliably measured. 
Other income
This represents non-refundable up-front licence payments received for the grant of rights for the development and marketing of products, and 
other sundry income. The income is recognised in the income statement, over the life of each development project, in proportion to the stage of 
completion of each project.
Operating profit
Operating profit is stated after charging restructuring costs but before investment income and finance costs.
Finance income
Finance income relates to interest earned on cash, cash equivalents and investments. Interest income is accrued on a time basis, by reference to the 
principal outstanding and at the effective interest rate applicable.
Notes Forming Part of the Consolidated 
Financial Statements continued 38 39 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
3. Accounting policies continued
Finance costs
Finance costs relate to finance payments associated with financial liabilities. They are recognised in the income statement as they accrue using the 
effective interest method.
Finance costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a 
substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time as the assets are substantially 
ready for their intended use.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the 
borrowing costs eligible for capitalisation.
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of 
resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
Foreign currencies
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities 
denominated in foreign currencies at the balance sheet date are translated at the foreign exchange rate ruling at that date. Foreign exchange 
differences arising on translation are recognised in the income statement. Non-monetary assets and liabilities that are measured in terms of historical 
cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in 
foreign currencies that are stated at fair value are translated at foreign exchange rates ruling at the date the fair value was determined.
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on consolidation, are translated at foreign 
exchange rates ruling at the balance sheet date. The revenue and expenses of foreign operations are translated at an average monthly rate where 
this rate approximates to the foreign exchange rates at the dates of the transactions. Exchange differences arising on consolidation are recognised in 
equity.
Hedging
The Group designates certain hedging instruments, which include derivatives, embedded derivatives and non-derivatives in respect of foreign 
currency risk, as either fair value hedges, cash flow hedges, or hedges of net investments in foreign operations. Hedges of foreign exchange risk on 
firm commitments are accounted for as cash flow hedges. At the inception of the hedge relationship, the entity documents the relationship between 
the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. 
Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument is highly effective in 
offsetting changes in fair values or cash flows of the hedged item. Note 26 sets out details of the fair values of the derivative instruments used for 
hedging purposes. Movements in the hedging reserve in equity are detailed in note 26.
Taxation
Taxation expense includes the amount of current income tax payable and the charge for the year in respect of deferred taxation.
The income tax payable is based on an estimation of the amount due on the taxable profit for the year. Taxable profit is different from profit before 
tax as reported in the income statement because it excludes items of income or expenditure which are not taxable or deductible in the year as a 
result of either the nature of the item or the fact that it is taxable or deductible in another period. The Group’s liability for current tax is calculated by 
using tax rates that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is accounted for on the basis of temporary differences, except to the extent where it arises from the initial recognition of goodwill or of 
an asset or liability in a transaction that is not a business combination. Deferred tax assets are recognised only to the extent that it is probable that 
future taxable profits will be available against which temporary differences can be utilised.
Deferred tax is charged or credited to the income statement, except when it relates to items charged or credited directly to equity, in which case it 
is dealt with within equity. It is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled 
based on tax laws enacted or substantively enacted by the balance sheet date.
Intangible assets
Acquired intellectual property rights
Intellectual property rights that are acquired in a business combination are initially recognised at their fair value. Intellectual property rights purchased 
outright are initially recognised at cost. Intellectual property rights are capitalised and amortised over their estimated useful economic lives, usually 
not exceeding 18 years. In determining the useful economic life each asset is reviewed separately and consideration given to the period over which 
the Group expects to derive economic benefit from the asset. 40 41 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
3. Accounting policies continued
Development costs
Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge, is recognised in the income 
statement as an expense in the period in which it is incurred.
Expenditure on development activities, where research findings are applied to a plan or design for the production of new or substantially improved 
products and processes, is capitalised once it can be demonstrated that the product or process is clearly identifiable, technically and commercially 
feasible, will generate future economic benefits, that the development costs of the asset can be measured reliably and the Group has sufficient 
resources to complete development. Expenditure capitalised is stated as the cost of materials and direct labour less accumulated amortisation.
Where development expenditure results in new or substantially improved products or processes and it is probable that recovery will take place, it is 
capitalised and amortised on a straight-line basis over the product’s useful life starting from the date on which serial production commences, which is 
between one and ten years.
Patents and trademarks are measured initially at purchase cost and are amortised on a straight-line basis over their estimated useful lives, which is 
between three and twenty years.
Software intangibles
Where computer software is not integral to an item of property, plant or equipment its costs are capitalised and categorised as intangible assets. 
Amortisation is provided on a straight-line basis over its economic useful life, which is between three and ten years.
Property, plant and equipment
Land and buildings and plant and equipment held for use in the production of goods and services or for administrative purposes are carried in the 
balance sheet at cost less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The Group elected to use the fair value as the deemed cost in respect of land and buildings at the date of transition to IFRS. Fair value was calculated 
by reference to their existing use at the date of transition.
Depreciation is provided to write off the cost, less estimated residual values, of all property, plant and equipment, over the expected useful life of the 
asset from the date that the asset is brought into use. It is calculated at the following rates:
• Freehold property and improvements - 4% per annum on cost
• Leasehold improvements - over the length of the lease
• Plant and machinery - 6.7% to 33.3% per annum on cost
• Fixtures and fittings - 33.3% per annum on cost
• Motor vehicles - 25% per annum on cost
Property, plant and equipment in the course of construction for production are carried at cost, less any recognised impairment loss. Depreciation of 
these assets, on the same basis as other property, plant and equipment assets, commences when the assets are ready for their intended use.
No depreciation is provided on freehold land.
Impairment of tangible and intangible assets excluding goodwill
The carrying amounts of the Group’s assets other than inventories and deferred tax assets are reviewed at each balance sheet date to determine 
whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated.
An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment 
losses are recognised in the income statement.
Impairment losses recognised in respect of cash-generating units are allocated to reduce the carrying amount of the assets in the unit on a pro rata 
basis. A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows 
from other assets or groups of assets.
Calculation of recoverable amount
The recoverable amount of the Group’s receivables carried at amortised cost is calculated as the present value of estimated future cash flows. As the 
Group’s receivables are of short duration they are not discounted.
Reversal of impairment
An impairment loss in respect of a receivable carried at amortised cost is reversed if the subsequent increase in recoverable amount can be related 
objectively to an event occurring after the impairment loss was recognised.
In respect of other assets, an impairment loss is reversed when there is an indication that the impairment loss may no longer exist and there has been 
a change in the estimates used to determine the recoverable amount.
Notes Forming Part of the Consolidated 
Financial Statements continued 40 41 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
3. Accounting policies continued
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been 
determined, net of depreciation or amortisation, if no impairment loss had been recognised.
Inventory
Inventory is valued at the lower of cost or net realisable value. Cost comprises direct materials and, where applicable direct labour costs, that have 
been incurred in bringing the inventories to their present location and condition and an attributable proportion of manufacturing overheads based 
on normal levels of activity using the weighted average method.
Net realisable value is based on estimated selling price less further costs to completion and disposal.
The Group makes provision for inventory deemed to be irrecoverable or where the net realisable value is lower than cost. This provision is established 
on a stock keeping unit (SKU) basis by reference to the age of the stock, the forward order book, management’s experience and its assessment of the 
present value of estimated future cash flow.
Financial Instruments
Classification of financial instruments
Financial instruments are classified as financial assets, financial liabilities or equity instruments.
Financial instruments issued by the Group are treated as equity only to the extent that they meet the following two conditions:
• they include no contractual obligations upon the Group to deliver cash or other financial assets that are potentially unfavourable to the Group; and 
• where the instrument will or may be settled in the Group’s own equity instruments, it is either a non-derivative that includes no obligation to 
deliver a variable number of the Group’s own equity instruments or is a derivative that will be settled by the Group exchanging a fixed amount of 
cash or other financial assets for a fixed number of its own equity instruments.
To the extent that this definition is not met, the proceeds of issue are classified as a financial liability. 
Recognition and valuation of financial assets
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand and cash deposits and amounts under short-term guarantees, usually 90 days or less, 
that are held for the purpose of meeting short-term cash commitments, are subject to insignificant risk in change in value and which are readily 
convertible to a known amount of cash. Cash held in accounts with more than 90 days’ notice that are not required to meet short-term cash 
commitments are shown as an investment. 
Investments
Cash held in accounts with more than 90 days’ notice that are not required to meet short-term cash commitments are shown as an investment. The 
Group invests funds which are surplus to short-term requirements in fixed rate deposits operating within parameters for credit ratings and credit limits 
for individual institutions that are approved and monitored by the Board.
Under IAS 39 “Financial instruments: recognition and measurement”, such investments are classified as loans and receivables and are recognised at 
fair value on initial recognition and subsequently measured at amortised cost using the effective interest method.
Trade and other receivables
Trade receivables are recognised and carried at the lower of their original invoiced value and recoverable amount. An impairment is made when it is likely 
that the balance will not be recovered in full. The recoverable amount is calculated as the present value of estimated future cash flows. Estimated future 
cash flows are not discounted due to the relatively short period of time between recognition of trade receivables and receipt of cash.
Recognition and valuation of equity instruments
Equity instruments are stated at par value. Any premium on issue is taken to the share premium account.
Recognition and valuation of financial liabilities
Financial liabilities are classified according to the substance of the contractual arrangements entered into.
Trade payables
Trade payables are initially recognised at fair value and are subsequently recognised at amortised cost using the effective interest method.
Other loans
Other loans are initially recognised at fair value and are subsequently recognised at amortised cost.
Financial liabilities at Fair Value Through Profit or Loss (“FVTPL”)
A derivative that is not designated and effective as a hedging instrument is classified as held for trading. Financial liabilities are classified as at FVTPL 
where the financial liabilities are held for trading.
Financial liabilities at FVTPL are stated at fair value, with any resultant gain or loss recognised in profit or loss. Fair value is determined in the manner 
described in note 26. 42 43 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
3. Accounting policies continued
Derivative financial instruments
The Group enters into foreign exchange forward contracts to manage its exposure to foreign exchange rate risk. Further details of derivative financial 
instruments are disclosed in note 26 to the financial statements.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at 
each balance sheet date. The resulting gain or loss is recognised in profit or loss (administrative costs) immediately unless the derivative is designated 
and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. 
The Group currently designates certain derivatives as hedges of highly probable forecast transactions or hedges of foreign currency risk of firm 
commitments (cash flow hedges). A derivative with a positive fair value is recognised as a financial asset whereas a derivative with a negative fair value 
is recognised as a financial liability. 
Derivatives with a remaining maturity of less than 12 months are presented as current assets or current liabilities.
Leased assets
Leases are classified as finance leases when the terms of the lease transfer substantially all the risks and rewards of ownership to the Group. All other 
leases are classified as operating leases.
Assets held as finance leases are recognised as assets of the Group at their fair value or, if lower, at the present value of the minimum lease payments 
during the lease term at the inception of the lease. Lease payments are apportioned between the reduction of the lease liability and finance charges 
in the income statement so as to achieve a constant rate of interest on the remaining balance of the liability. Assets held under finance leases are 
depreciated over the shorter of the estimated useful life of the assets and the lease term.
Assets leased under operating leases are not recorded on the balance sheet. Rental payments are charged directly to the income statement. Lease 
incentives, primarily up-front cash payments or rent-free periods, are capitalised and spread over the period of the lease term on a straight line basis 
unless another systematic basis is more representative of the time pattern of the users’ benefit. Payments made to acquire operating leases are 
treated as prepaid lease expenses and amortised over the life of the lease.
Pensions
The Group operates a money purchase pension scheme. The assets of the scheme are held separately from those of the Group in an independently 
administered fund. The amount charged against the income statement represents the contributions payable to the scheme in respect of the 
accounting period.
Share-based payments
The Group has applied the requirements of IFRS 2 ‘Share-based payments’. IFRS has been applied to all options granted after 7 November 2002 that 
were unvested as of 1 January 2006.
The group issues equity-settled share-based payments to certain employees. Equity-settled share-based payments are measured at fair value at the 
date of grant, and expensed on a straight-line basis over the vesting period, based on the Group’s estimate of options that will eventually vest.
Fair value is measured by use of a Black-Scholes Merton or a Binomial Theorem model. The expected life used in the model has been adjusted, based 
on management’s best estimate, for the effect of non-transferability, exercise restrictions and behavioural considerations.
Capital management
For the year ended 31 December 2010, the Group had net funds with minimal borrowings. For the year ended 31 December 2011, the Group had net 
debt. Capital is managed by maximising retained profits. Working capital is managed in order to generate maximum conversion of these profits into 
cash and cash equivalents thereby maintaining capital. 
Capital includes share capital, share premium, investment in own shares, share-based payments reserve, share-based payments deferred tax reserve, 
other reserve, translation reserve and retained earnings reserve. There are no externally imposed capital requirements on the Group.
Exceptional items
Exceptional items are those items that are unusual because of their size, nature or incidence, or that the directors consider should be disclosed 
separately to enable a full understanding of the Group’s results. This includes non-recurring site relocation costs and costs associated with the 
acquisition of RESORBA® (see note 6). Exceptional items have been presented separately on the face of the income statement. The directors consider 
that this presentation gives a fairer presentation of the results of the Group.
Employee Benefit Trust
The Group operates an Employee Benefit Trust (EBT): ‘Advanced Medical Solutions Group plc UK Employee Benefit Trust’.
The Group has de facto control of the assets, liabilities and shares held by the EBT and bears its benefits and risks. The Group records assets and 
liabilities of the EBT as its own.
Notes Forming Part of the Consolidated 
Financial Statements continued 42 43 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
3. Accounting policies continued
In compliance with IAS 32 ‘Financial Instruments: Presentation Group’, shares held by the EBT are included in the consolidated balance sheet as a 
reduction in equity. Gains and losses on Group shares are recognised directly in reserves.
IFRS not yet effective and not adopted early
The following IFRSs have been issued but have not been adopted by the Group in these financial statements, as they are not yet effective; none of 
which are likely to have a material effect on the Group’s results, operations or financial position:
• Amendments to IAS 12 Deferred Tax: Recovery of underlying assets; effective date 1 January 2012
• Amendments to IAS 1 Presentation of items of other comprehensive income; effective date 1 July 2012
• Amendments to IAS 19 Employee benefits; effective date 1 July 2012
• IFRS 9 Financial Instruments; effective date 1 January 2013
• IFRS 10 Consolidated financial statements; effective date 1 January 2013
• IFRS 11 Joint arrangements; effective date 1 January 2013
• IFRS 12 Disclosure of interests in other entities; effective date 1 January 2013
• IAS 27 Separate financial statements (2011); effective date 1 January 2013
• IAS 28 Investments in associates and joint ventures (2011); effective date 1 January 2013
• IFRS 13 Fair value measurement; effective date 1 January 2013
• Improvements to IFRSs 2011; effective date 1 January 2013
No other standard, amendment or interpretation is likely to have a material effect on the Group’s results, operations or financial position.
4. Segment information
For management purposes, the Group is organised into two business units, advanced woundcare and wound closure and sealants. These divisions are 
the basis on which the Group reports its segment information.
The assets and liabilities of RESORBA® are shown as unallocated in the 2011 accounts, whilst the directors are in the process of reviewing the ongoing 
business segments.
There are no inter-segment sales.
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. 
Unallocated items comprise mainly investments, and related revenue, corporate assets, head office expenses, income tax assets and the assets and 
liabilities of RESORBA®. These are the measures reported to the Group’s Chief Executive for the purposes of resource allocation and assessment of 
segment performance.
Business segments
The principal activities of the advanced woundcare business unit are the research, development, manufacture and distribution of novel, high 
performance polymers for use as wound dressings.
The principal activities of the wound closure and sealants business unit are the research, development, manufacture and distribution of medical 
adhesives and products for closing and sealing tissue.
Segment information about these businesses is presented below. 
Year ended 31 December 2011 
Advanced 
woundcare
£’000
Wound 
closure & 
sealants
£’000
Consolidated
£’000
Revenue
External sales 27,688 6,665 34,353
Total revenue 27,688 6,665 34,353
There are no inter-segment sales.
Result
Segment result 6,213 1,406 7,619
Unallocated expenses (3,028)
Profit from operations 4,591
Finance income 75
Finance costs (79)
Profit before tax 4,587
Tax 263
Profit for the year 4,850
Unallocated expenses included £1,807,000 of exceptional costs incurred in respect of the acquisition of RESORBA®. 44 45 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
4. Segment information continued
At 31 December 2011
Other Information 
Advanced 
woundcare
£’000
Wound 
closure & 
sealants
£’000
Consolidated
£’000
Capital additions:
Software intangibles 808 4 812
Research & development 245 21 266
Property, plant and equipment 1,296 98 1,394
Depreciation and amortisation 1,022 358 1,380
Balance sheet
Assets
Segment assets 32,812 5,370 38,182
Unallocated assets 61,343
Consolidated total assets 99,525
Liabilities
Segment liabilities 5,373 664 6,037
Unallocated liabilities 27,276
Consolidated total liabilities 33,313
The assets and liabilities of RESORBA® are shown as unallocated, whilst the directors are in the process of reviewing the ongoing business segments.
Year ended 31 December 2010 
Advanced 
woundcare
£’000
Wound 
closure & 
sealants
£’000
Consolidated
£’000
Revenue
External sales 25,197 6,684 31,881
Total revenue 25,197 6,684 31,881
There are no inter-segment sales.
Result
Segment result 3,735 1,620 5,355
Unallocated expenses (1,016)
Profit from operations 4,339
Finance income 12
Finance costs (60)
Profit before tax 4,291
Tax 542
Profit for the year 4,833
Notes Forming Part of the Consolidated 
Financial Statements continued 44 45 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
4. Segment information continued
At 31 December 2010
Other Information 
Advanced 
woundcare
£’000
Wound 
closure & 
sealants
£’000
Consolidated
£’000
Capital additions:
Software intangibles 5 1 6
Research & development 162 5 167
Property, plant and equipment 3,514 144 3,658
Depreciation and amortisation 1,021 369 1,390
Balance sheet
Assets
Segment assets 25,856 6,053 31,909
Unallocated assets 1,076
Consolidated total assets 32,985
Liabilities
Segment liabilities 3,946 944 4,890
Unallocated liabilities 295
Consolidated total liabilities 5,185
The advanced woundcare segment’s results included £1,001,000 of exceptional expenditure in respect of the site move.
Geographical segments
The advanced woundcare and wound closure and sealants segments operate mainly in the UK and the Netherlands with a sales office located in 
the US. In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of customers. 
Segment assets are based on the geographical location of the assets.
The following table provides an analysis of the Group’s sales by geographical market, irrespective of the origin of the goods/services, based upon 
location of the Group’s customers:
Year ended
31 December 
2011
£’000
Year ended
31 December 
2010
£’000
United Kingdom 9,225 8,323
Europe excluding United Kingdom 15,660 13,819
United States of America 9,005 9,154
Rest of World 463 585
34,353 31,881
The following table provides an analysis of the Group’s total assets by geographical location.
Year ended
31 December 
2011
£’000
Year ended
31 December 
2010
£’000
United Kingdom 36,352 30,400
Europe excluding United Kingdom 63,135 2,555
United States of America 38 30
Rest of World – –
99,525 32,985 46 47 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
5. Profit from operations
Year ended
31 December 
2011
£’000
Year ended
31 December 
2010
£’000
Profit from operations is arrived at after charging/(crediting):
Depreciation of property, plant and equipment 1,115 1,077
Amortisation of: 
– acquired intellectual property rights 167 168
– software intangibles 12 23
– development costs 86 121
Operating lease rentals – plant and machinery 211 184
 – land and buildings 840 1,023
Research and development costs expensed to the income statement 1,255 1,289
Cost of inventories recognised as expense 17,775 16,427
Staff costs 10,211 10,223
Net foreign exchange loss/(gain) 13 (63)
6. Exceptional items 
During 2011 the Group acquired the entire share capital of RESORBA® (see note 32); exceptional expenditure of £1,807,000 was incurred in respect of 
the acquisition of RESORBA®.
During 2010 the Group completed the rationalising of its two existing sites in Winsford into a new facility, incurring exceptional costs of £1,001,000 in 
respect of the site move.
7. Auditor’s remuneration
Amounts payable to Deloitte LLP and their associates in respect of both audit and non-audit services:
Year ended
31 December 
2011
£’000
Year ended
31 December 
2010
£’000
Fees payable to the Company’s auditor and their associates for the audit of the Company’s annual accounts 10 10
Fees payable to the Company’s auditor and their associates for the other services to the Group
– the audit of the Company’s subsidiaries 38 35
Total audit fees 48 45
Audit related assurance services 10 10
Taxation compliance services 12 10
Other services
– Recruitment and remuneration services – 8
– Other assurance services 20 –
– Other – 1
Total non audit fees 42 29
Total fees 90 74
Fees payable to the Company’s auditor, Deloitte LLP and its associates, for non-audit services to the Company are not required to be disclosed in 
subsidiaries’ accounts because the consolidated financial statements are required to disclose such fees on a consolidated basis.
A description of the work of the Audit Committee is set out in the Corporate Governance Report which includes explanations of how the auditor’s 
objectivity and independence is safeguarded when non-audit service are provided by the auditor.
8. Employees
The average monthly number of employees of the Group during the year, including executive directors, was as follows:
Year ended
31 December 
2011
Number
Year ended
31 December 
2010
Number
Production 174 175
Research and development 16 19
Sales and marketing 40 37
Administration 30 27
260 258
Sales and marketing includes 4 people (2010: 3) employed in the United States.
Notes Forming Part of the Consolidated 
Financial Statements continued 46 47 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
8. Employees continued
Year ended
31 December 
2011
£’000
Year ended
31 December 
2010
£’000
Staff costs for all employees, including executive directors, consist of:
Wages and salaries 8,589 8,358
Social Security costs 940 1,251
Pension costs 345 332
Share-based payments (see note 33). 337 282
10,211 10,223
9. Directors’ emoluments
Year ended
31 December 
2011
£’000
Year ended
31 December 
2010
£’000
Remuneration for management services 563 559
Pension 48 47
Amounts paid to third parties 24 149
Share-based payments 143 111
778 866
Executive directors
Year ended
31 December 
2011
£’000
Year ended
31 December 
2010
£’000
Salaries and short-term employee benefits 404 559
Pension 48 47
Share-based payments 143 111
595 717
Highest paid director
Year ended
31 December 
2011
£’000
Year ended
31 December 
2010
£’000
Salaries and short-term employee benefits 230 226
Pension 24 20
Share-based payments 78 37
332 283
Retirement benefits are accruing to the following number of directors under money purchase schemes 2 3
10. Key management
The key management of the Group comprises the directors of the Group together with senior members of the management team. Their aggregate 
compensation is shown below:
Year ended
31 December 
2011
£’000
Year ended
31 December 
2010
£’000
Salaries and short-term employee benefits 1,307 1,237
Pension 117 92
Termination payments – 37
Share-based payments 189 142
1,613 1,508 48 49 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
11. Finance Income 
Year ended
31 December 
2011
£’000
Year ended
31 December 
2010
£’000
Bank interest 70 1
Rent deposit interest 5 11
75 12
12. Finance costs
Year ended
31 December 
2011
£’000
Year ended
31 December 
2010
£’000
Finance leases 5 6
Other loan interest 6 24
Bank interest 68 105
Facility costs – 263
Total interest expense 79 398
Less: amounts included in the cost of qualifying assets – (338)
79 60
13. Taxation 
Year ended
31 December 
2011
£’000
Year ended
31 December 
2010
£’000
a) Analysis of credit for the year
Current tax:
Corporation tax (272) 29
Deferred tax 535 513
Taxation 263 542
b) Factors affecting tax credit for the year
The tax assessed for the year is lower than the standard rate of corporation tax in the UK (26.5%) as explained below:
Profit before taxation 4,587 4,291
Profit multiplied by the standard rate of corporation tax in the UK of 26.5% (2010: 28.0%) 1,216 1,201
Effects of:
Overseas tax rate versus UK corporate tax rate (5) –
Expenses not deductible for tax purposes 614 112
Depreciation for period more/(less) than capital allowances 114 (288)
Utilisation and recognition of trading losses (1,801) (755)
Research and development relief (220) (235)
Share-based payments (181) (577)
Taxation (263) (542)
The Finance Act 2011, which was substantively enacted in July 2011, included provisions to reduce the rate of corporation tax to 26% with effect from 
1 April 2011 and 24% with effect from 1 April 2012. Deferred tax balances have been revalued to the rate of 25% in these accounts.
The government has announced that it intends to further reduce the rate of corporation tax to 23% with effect from 1 April 2013, 22% from  
1 April 2014. As this legislation was not substantively enacted by 31 December 2011, the impact of the anticipated rate change is not reflected  
in the tax provisions reported in these accounts.
In addition to the amount charged to the income statement and other comprehensive income, the Group has recognised directly in equity:
• excess tax deductions related to share-based payments on exercised options; and
• changes in excess deferred tax deductions related to share-based payments, totalling £234,000 deficit: (2010: surplus £179,000).
Notes Forming Part of the Consolidated 
Financial Statements continued 48 49 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
14. Dividends on equity shares
Amounts recognised as distributions to equity holders in the period:
2011
£’000
2010
£’000
Final dividend for the year ended 31 December 2010 of 0.38p per ordinary share 590 –
Interim dividend for the year ended 31 December 2011 of 0.145p (2010: nil) per ordinary share 226 –
816 –
Proposed final dividend for the year ended 31 December 2011 of 0.305p (2010: 0.38p) per ordinary share 625 590
625 590
The proposed final dividend is subject to approval by the shareholders and has not been included as a liability in these financial statements.
15. Earnings per share
The calculation of the basic and diluted earnings per share is based on the following data:
Year ended
31 December 
2011
£’000
Year ended
31 December 
2010
£’000
Earnings for the purposes of basic and diluted earnings per share being net profit attributable to equity holders of  
the parent:
– pre-exceptional items 6,657 5,834
– post-exceptional items 4,850 4,833
Number of shares ’000 ’000
Weighted average number of ordinary shares for the purposes of basic earnings per share 156,398 152,366
Effect of dilutive potential ordinary shares:
– share options, deferred share bonus, LTIPs 3,165 2,538
Weighted average number of ordinary shares for the purposes of diluted earnings per share 159,563 154,904
Earnings per share Pence Pence
Basic – pre-exceptional items 4.26p 3.83p
Basic – post-exceptional items 3.10p 3.17p
Diluted – pre-exceptional items 4.17p 3.77p
Diluted – post-exceptional items 3.04p 3.12p
16. Acquired intellectual property rights, software intangibles and development costs
Acquired 
intellectual 
property 
rights
£’000
Software 
intangibles
£’000
Development 
costs
£’000
2011 
Cost
At beginning of year 2,518  200  1,169 
On acquisition of subsidiary 11,763  –  – 
Additions –  812  266 
Disposals – (4) – 
At end of year 14,281  1,008  1,435 
Amortisation
At beginning of year 1,456  184  398 
Charged in the year 167  12  86 
Disposals – (4) – 
At end of year 1,623  192  484 
Net book value
At 31 December 2011 12,658  816  951 
At 31 December 2010 1,062  16  771
Intangible assets are amortised on a straight-line basis and the amortisation is recognised within administration costs. 50 51 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
16. Acquired intellectual property rights, software intangibles and development costs continued
Acquired intellectual property rights were initially recognised on the acquisition of MedLogic Global Limited representing patents and trade marks and 
on the acquisition of RESORBA® representing brand names, know how and customer listings and contracts.
Acquired 
intellectual 
property 
rights
£’000
Software 
intangibles
£’000
Development 
costs
£’000
2010 
Cost
At beginning of year 2,518 195 1,002
Additions – 5 167
Disposals –  –  – 
At end of year 2,518 200 1,169
Amortisation
At beginning of year 1,288 161 277
Charged in the year 168 23 121
At end of year 1,456 184 398
Net book value
At 31 December 2010 1,062 16 771
At 31 December 2009 1,230 34 725
17. Property, plant and equipment
Freehold land, 
property and 
improvements
£’000
Short 
leasehold 
improvements
£’000
Plant and 
machinery
£’000
Fixtures and 
fittings
£’000
Motor vehicles
£’000
Assets under 
construction
£’000
Total
£’000
2011 
Cost
At beginning of year 1,063  374  15,782  626  44  3,210  21,099 
On acquisition of subsidiary 2,955  –  269  647  –  –  3,871 
Additions 3  – 182 17 – 1,192 1,394 
Transfer of assets into use –  – 3,394 1 – (3,395) – 
Disposals – (362) (1,511) (91) –  – (1,964)
Exchange adjustment –  – (42) –  –  – (42)
At end of year 4,021  12 18,074 1,200  44 1,007 24,358 
Depreciation
At beginning of year 24  372  7,639  192  44  –  8,271 
Provided for the year 4  –  1,072  39  –  –  1,115 
Disposals – (362) (1,511) (91) –  – (1,964)
Exchange adjustment –  – (18) –  –  – (18)
At end of year  28  10  7,182  140  44  –  7,404 
Net book value
At 31 December 2011 3,993  2 10,892 1,060  – 1,007 16,954 
At 31 December 2010 1,039  2  8,143  434  –  3,210  12,828 
At 31 December 2011, the Group had entered into contractual commitments for the acquisition of property, plant and equipment amounting to 
£419,000 (2010: £1,510,000).
The net book value of plant and equipment includes £28,000 of plant and machinery (2010: £43,000) held under finance leases. The related 
depreciation charge for the year was £18,000 (2010: £17,000).
Notes Forming Part of the Consolidated 
Financial Statements continued 50 51 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
17. Property, plant and equipment continued
Freehold land, 
property and 
improvements
£’000
Short 
leasehold 
improvements
£’000
Plant and 
machinery
£’000
Fixtures and 
fittings
£’000
Motor vehicles
£’000
Assets under 
construction
£’000
Total
£’000
2010 
Cost
At beginning of year 1,063  450  11,671  192  44  5,939  19,359 
Additions –  –  486  38  –  3,133  3,657 
Transfer of assets into use –  –  5,466  396  – (5,862) – 
Disposals – (76) (1,781) –  –  – (1,857)
Exchange adjustments –  – (60) –  –  – (60)
At end of year 1,063  374  15,782  626  44  3,210  21,099 
Depreciation
At beginning of year 20  446  8,407  158  44  –  9,075 
Provided for the year 4  2  1,037  34  –  –  1,077 
Disposals – (76) (1,781) –  –  – (1,857)
Exchange adjustments –  – (24) –  –  – (24)
At end of year 24  372  7,639  192  44  –  8,271 
Net book value
At 31 December 2010 1,039  2  8,143  434  –  3,210  12,828 
At 31 December 2009 1,043  4  3,264  34  –  5,939  10,284
18. Deferred tax
The following are the major deferred tax liabilities and assets recognised by the Group and movements thereon during the current and prior reporting 
period.
Revaluation of 
building
£’000
Share-based 
payment 
£’000
Tax losses
£’000
Intangible 
assets
£’000
Total
£’000
At 1 January 2010 (74) 716 1,780 – 2,422
Charge to income – (16) 529 – 513
Charge to equity – (179) – – (179)
At 31 December 2010 (74) 521 2,309 – 2,756
Charge to income – 69 465 – 534
Charge to equity – 234 – – 234
Acquisition of subsidiary – – – (3,353) (3,353)
At 31 December 2011 (74) 824 2,774 (3,353) 171
Maturity of the deferred tax asset is as follows:
2011
£’000
2010
£’000
Less than one year 2,250 1,080
Greater than one year 1,274 1,676
3,524 2,756
Maturity of the deferred tax liability is as follows:
2011
£’000
2010
£’000
Less than one year (111) –
Greater than one year (3,242) –
(3,353) – 52 53 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
18. Deferred tax continued
Certain deferred tax assets and liabilities have been offset. The following is the analysis of the deferred tax balances (after offset) for financial 
reporting purposes:
2011
£’000
2010
£’000
Deferred tax liabilities (74) (74)
Deferred tax assets 3,598 2,830
3,524 2,756
At the balance sheet date, the Group has unused tax losses of £21.6 million (2010: £27.4 million) available for offset against future profits. A deferred 
tax asset of £2.8 million (2010: 2.3 million) has been recognised in respect of such losses. No deferred tax asset has been recognised in respect of the 
remaining £10.5 million (2010: £19.1 million) of such losses due to the unpredictability of future profit streams. 
19. Goodwill
2011
£’000
2010
£’000
Cost 
At 1 January 2,878 2,978
Recognised on acquisition of a subsidiary 36,450 –
Exchange differences (69) (100)
At 31 December 39,259 2,878
Goodwill arose on the acquisition of Advanced Medical Solutions B.V. on 30 September 2009 and the acquisition of RESORBA® Wundversorgung 
GmbH & Co. KG on 22 December 2011. Goodwill acquired in a business combination is allocated, at acquisition, to the cost generating units (CGUs), 
that are expected to benefit from that business combination.
The Group tests goodwill annually for impairment, or more frequently if there are indications that goodwill might be impaired. 
The recoverable amount in respect of Advanced Medical Solutions B.V. has been determined based on a value-in-use calculation, which uses cash 
flow projections based on financial budgets approved by the directors covering a three-year period. These budgets have been adjusted to reflect 
the existing state of the business and, consequently, omit investment plans. Cash flows beyond that three-year period have been extrapolated using 
a steady 2% (2010: 2%) per annum growth rate, being the medium-term expected growth; the growth rate would have to fall from +2% to -4% in 
order for an impairment to be required. This growth rate does not exceed the long-term average growth rate for the market in which Advanced 
Medical Solutions B.V. operates. A discount rate of 8% per annum (2010: 8%), being the Group’s current pre-tax weighted average cost of capital, has 
been applied to these cash flows, being an estimation of current market risks and the time value of money. The directors believe that any reasonably 
possible further change in the key assumptions on which the recoverable amount is based would not cause Advanced Medical Solutions B.V.’s carrying 
amount to exceed its recoverable amount. 
20. Inventories
2011
£’000
2010
£’000
Raw materials 3,321 1,392
Work in progress 1,163 596
Finished goods 2,230 510
6,714 2,498
There is no material difference between the replacement cost of stock and the amount at which it is stated in the financial statements. 
Included above are finished goods of £nil (2010: £12,000) carried at net realisable value.
2011
£’000
2010
£’000
Total gross inventories 6,982 2,827
Inventory impairment (268) (329)
Net inventory 6,714 2,498
Inventory impairment provision
2011
£’000
2010
£’000
At beginning of year (329) (434)
Income statement charge (272) (281)
Provision released 67 76
Provision utilised 266 310
At end of year (268) (329)
Notes Forming Part of the Consolidated 
Financial Statements continued 52 53 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
21. Trade and other receivables
Due within one year
2011
£’000
2010
£’000
Trade receivables 9,611 5,282
Other receivables 679 294
Prepayments and accrued income 808 459
11,098 6,035
Trade receivables
2011
£’000
2010
£’000
Amount receivable for the sale of goods 9,734 5,436
Provision for impairment (123) (154)
9,611 5,282
The Group’s principal financial assets are cash and trade receivables. The Group’s credit risk is primarily attributable to its trade receivables.
The average credit period taken on sales of goods is 65 days (2010: 52 days). No interest is charged on the receivables within the contracted credit 
period. Thereafter, interest may be charged at 2% per month on the outstanding balance. In determining the recoverability of a trade receivable 
the Group considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the reporting date. The 
concentration of credit risk is limited due to the Group’s large and distinct customer base. Accordingly, the directors believe that there is no further 
credit provision required in excess of the allowance for impairments.
Before accepting any new customer, the Group assesses the potential customer’s credit quality and defines credit limits by customer. Limits are 
reviewed on an ongoing basis and reflect recent payment history.
Included in the Group’s trade receivable balance are debtors which are past due at the reporting date for which the Group has not provided as there 
has not been a significant change in credit quality and the amounts are still considered recoverable. The Group does not hold any collateral or other 
credit enhancements over these balances. The carrying amount and ageing of these debtors are summarised below:
Ageing of overdue but not impaired receivables
2011
£’000
2010
£’000
31 to 60 days overdue 318 264
61 to 90 days overdue 77 374
Total 395 638
Movement in provision for impairment
Year ended 
31 December 
2011
£’000
Year ended
 31 December 
2010
£’000
Balance at the beginning of the year 154 90
Impairment losses recognised 32 76
Amounts written off as uncollectible (7) (12)
Amounts recovered during the year (56) –
Balance at the end of the year 123 154
Ageing of provision for impairment
2011
£’000
2010
£’000
31 to 60 days overdue – 2
61 to 90 days overdue 14 –
Over 90 days overdue 109 152
Total 123 154 54 55 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
21. Trade and other receivables continued
Analysis of customers
Year ended 31 December 2011
Revenue
£’000
% of total 
revenue
Customers accounting for more than 10% of revenue
– Customer 1 3,630 10.6
This customer is allocated to the advanced woundcare segment.
Year ended 31 December 2010
Revenue
£’000
% of total
revenue
Customers accounting for more than 10% of revenue
– Customer 1 3,366 10.5
This customer is allocated to the advanced woundcare segment.
22. Investments, cash and cash equivalents
2011
£’000
2010
£’000
Cash and cash equivalents 7,122 4,122
Cash and cash equivalents comprise cash and short-term bank deposits with an original maturity of 90 days or less. The carrying amount of these 
assets approximates to their fair value.
23. Trade and other payables
2011
£’000
2010
£’000
Current liabilities
Trade payables 3,493 1,642
Other payables 1,309 466
Derivative financial instruments – 102
Accruals and deferred income 3,498 1,588
8,300 3,798
Non-current liabilities
Other payables 625 677
Trade payables, other payables and accruals and deferred income principally comprise amounts outstanding for trade purchases and ongoing costs.
At 31 December 2011, accruals and deferred income included £1,646,000 of accrued fees (31 December 2010: nil) relating to the acquisition of 
RESORBA® (see note 32).
The average credit period taken for trade purchases is 62 days (2010: 71 days). No interest is charged on trade payables that are within pre-agreed 
credit terms. Thereafter, interest may be charged on the outstanding balances at various interest rates. The Group has financial risk management 
policies in place to ensure that all payables are paid within the pre-agreed credit terms.
The directors consider that the carrying amount of trade payables approximates to their fair value.
Notes Forming Part of the Consolidated 
Financial Statements continued 54 55 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
24. Current financial liabilities
2011
£’000
2010
£’000
Obligations under finance leases (see note 27) 21 19
Other loans 1,965 18
1,986 37
25. Non-current financial liabilities
2011
£’000
2010
£’000
Obligations under finance leases (see note 27) 6 23
Other loans 18,507 226
18,513 249
The loan is denominated in Euros and was taken out in December 2011. It is secured by fixed and floating charges and is repayable in instalments 
twice per year starting in December 2012, with the remaining balance to be paid off in July 2015, when the facility expires. The interest rate payable is 
variable based on the Company’s leverage and the Euribor rate. The maturity by currency of finance leases and other loans is given in note 26.
26. Financial instruments
Categories of financial instruments.
All financial instruments held by the Group, as detailed in this note, are classified as ‘Loans and Receivables’ (trade and other receivables, cash and cash 
equivalents), ‘Held to maturity investments’ (short-term investments), ‘Financial Liabilities Measured at Amortised Cost’ (trade and other payables, 
financial liabilities and obligations under finance leases and loans), ‘Derivative instruments in designated hedge accounting relationships (cash flow 
hedges)’ and ‘Fair value through profit and loss (FVTPL)’ (derivative financial instruments) under IAS 39 ‘Financial Instruments: Recognition and 
Measurement’ and finance leases under IAS 17 ‘Leases’.
Carrying 
value
2011
£’000
Carrying 
 value 
2010
£’000
Financial assets
Derivative instruments in designated hedge accounting relationships 32 –
Loans and receivables (including cash and cash equivalents) 18,209 10,176
Financial liabilities
Derivative instruments in designated hedge accounting relationships – 102
Amortised cost 29,424 4,659
Page 24 of the Report of Directors provides an explanation of the financial risks faced by the Group and the objectives and policies for managing 
those risks. The information below deals with the financial assets and liabilities. 
(a) Maturity of financial liabilities
The maturity profile of the Group’s financial liabilities, of which other loans and finance lease obligations are at fixed rates and denominated in sterling 
and derivative financial instruments are non-interest bearing, is as follows:
On demand  
or within  
one year
£’000
Between
one and
two years
£’000
Between
two and
five years
£’000
Five years 
or more
£’000
Total
financial
liabilities
£’000
Interest
rate
%
2011 
Trade and other payables 8,300 52 158 415 8,925 –
Other loans 1,965 2,948 15,559 – 20,472 variable
Finance lease creditors 21 2 4 – 27 14.7
At 31 December 2011 10,286 3,002 15,721 415 29,424 – 56 57 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
26. Financial instruments continued
On demand  
or within  
one year
£’000
Between
one and
two years
£’000
Between
two and
five years
£’000
Five years 
or more
£’000
Total
financial
liabilities
£’000
Interest
rate
%
2010 
Trade and other payables 3,696 53 158 466 4,373 –
Other loans 18 20 70 136 244 8.5
Finance lease creditors 19 17 6 – 42 11.6
Derivative financial instruments 102 – – – 102 –
At 31 December 2010 3,835 90 234 602 4,761 –
Fixed rate financial liabilities 
Weighted average period  
for which rate is fixed
Financial liabilities on which  
no interest is paid  
Weighted average period  
until maturity
2011
Years
2010
Years
2011
Years
2010
Years
Other loans 2 9 – –
Finance lease creditors 4 4 – –
(b) Interest rate and currency of financial assets
The currency and interest rate profile of the financial assets of the Group is as follows:
Investments and cash and cash equivalents
Total
£’000
Floating
£’000
Fixed
£’000
Non-interest
bearing
£’000
Fixed rate
weighted
average
interest rate
%
Currency
Sterling 4,289 4,289 – – 1.7
US dollar 718 401 – 317 –
Euro 2,115 78 – 2,037 –
At 31 December 2011 7,122 4,768 – 2,354 –
Total
£’000
Floating
£’000
Fixed
£’000
Non-interest
bearing
£’000
Fixed rate
weighted
average
interest rate
%
Currency
Sterling 2,027 2,027 – – –
US dollar 1,743 352 – 1,391 –
Euro 352 – – 352 –
At 31 December 2010 4,122 2,379 – 1,743 –
Trade and other receivables
The directors consider that the carrying amount of trade and other receivables approximates their fair value. 
2011
£’000
2010
£’000
Sterling 7,368 4,106
Euro 1,727 721
US dollar 2,003 1,208
11,098 6,035
(c) Currency exposures
At 31 December 2011, the Group had unhedged US dollar currency exposures of £1,270,000 (2010: £2,289,000) and unhedged Euro currency 
exposures of £3,220,000 (2010: £544,000).
Notes Forming Part of the Consolidated 
Financial Statements continued 56 57 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
26. Financial instruments continued
Risk sensitivity
See Directors’ Report (page 24) for risk sensitivities in respect of US dollar denominated revenue, material prices and interest rate risk. The Group is 
exposed to interest rate risk because entities in the Group borrow funds at both fixed and floating interest rates. As the loan was taken out late in 
December 2011, the impact of interest rate changes in the year were not material, therefore, no sensitivity analysis was required.
Forward foreign exchange contracts
It is the policy of the Group to enter into forward foreign exchange contracts to cover specific foreign currency payments and receipts.
The following table details the forward foreign currency contracts outstanding as at the year-end:
Outstanding Contracts
Average exchange rate Foreign currency Contract value Fair value
2011
USD
2010
USD:£1
2011
USD ’000
2010
USD ’000
2011
£’000
2010
£’000
2011
£’000
2010
£’000
Cash flow hedges
Sell US dollars
Less than 3 months 1.553 1.592 1,700 1,000 1,095 629 (4) 14
3 to 6 months – 1.585 – 1,600 – 1,011 – 18
7 to 12 months – 1.599 – 3,100 – 1,940 – 55
– – 1,700 5,700 1,095 3,580 (4) 87
Average exchange rate Foreign currency Contract value Fair value
2011
EUR
2010
EUR:£1
2011
EUR ’000
2010
EUR ’000
2011
£’000
2010
£’000
2011
£’000
2010
£’000
Sell Euros
Less than 3 months 1.141 1.18 200 150 175 127 8 2
3 to 6 months 1.143 1.18 300 150 263 127 10 2
7 to 12 months 1.145 1.179 600 790 524 670 18 11
– – 1,100 1,090 962 924 36 15
The fair value amounts presented above are the difference between the market value of equivalent instruments at the balance sheet date and the 
contract value of the instruments. No profits or losses are included in operating profit in the year (2010: £nil) in respect of FVTPL contracts. The profit 
of £32,000 (2010: £102,000 loss) in respect of cash flow hedges has been taken to reserves.
All forward exchange contracts are considered level 2 in both the current and prior year.
27. Obligations under finance leases
Minimum lease payments
Present value of lease 
payments
2011
£’000
2010
£’000
2011
£’000
2010
£’000
Amounts payable under finance leases:
Within one year 22 19 21 19
In the second to fifth years inclusive 8 31 6 23
Less: future finance charges (3) (8) – –
Present value of lease obligations 27 42 27 42
Less: amount due for settlement within 
12 months (shown under current financial liabilities) (21) (19)
Amount due for settlement after 12 months 6 23
It is the Group’s policy to lease certain of its fixtures and equipment under finance leases. The average lease term is 4 years (2010: 4 years). For the 
year ended 31 December 2011, the average effective borrowing rate was 14.7% (2010: 11.6%). Interest rates are fixed at the contract date. 
All lease obligations are denominated in sterling.
The directors consider that the fair value of the Group’s lease obligations approximates to their carrying amount.
28. Fair value of financial assets and liabilities
The directors consider that the fair value of the Group’s financial instruments do not differ significantly from their book values. 58 59 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
29. Foreign exchange rates
Average rate Closing rate
Percentage 
change
average
%
Percentage 
 change
closing
% 2011 2010 2011 2010
Currency
US dollar 1.6057 1.547 1.5461 1.566 4 (1)
Euro 1.1518 1.164 1.195 1.167 (1) 2
30. Share capital
Number of ordinary shares of 5p each
Authorised
‘000
Allotted, 
called up
and fully paid
‘000
At 1 January 2010 206,447 144,965
New issues in the year – 100
Share options exercised – 9,740
At 31 December 2010 206,447 154,805
New issues in the year – 48,214
Share options exercised – 497
At 31 December 2011 206,447 203,516
During the year, employees exercised share options for 383,924 shares at a range of option prices from 9p to 42p.
During the year, 112,576 shares were issued under the Deferred Share Bonus Scheme at the nominal value of 5p per share. At the balance sheet date, 
517,000 of shares are retained by the EBT to meet the matching requirements of the scheme.
On 20 December 2011, the Company issued 48,214,415 shares in relation to the acquisition of RESORBA®, being 47,236,112 of placing shares and 
978,303 of subscription shares.
Nominal value of ordinary shares of 5p each
Authorised
£’000
Allotted, 
called up
and fully paid
£’000
At 1 January 2010 10,332 7,248
At 31 December 2010 10,332 7,740
New issues in the year – 2,411
Share options exercised – 25
At 31 December 2011 10,332 10,176
31. Reserves
Investment in own shares
This is the nominal value of the shares held in trust on behalf of employees in respect of the DSB scheme.
Other reserve
This represents Advanced Medical Solutions Limited’s share premium account arising from merger accounting.
Hedging reserve
The hedging reserve represents the cumulative amount of gains and losses on hedging instruments deemed effective in cash flow hedges. The 
cumulative deferred gain or loss on the hedging instrument is recognised in profit or loss only when the hedged transaction impacts the profit or loss, 
or is included as a basis adjustment to the non-financial hedged item, consistent with the applicable accounting policy.
Translation reserve
Exchange differences relating to the translation of the net assets of the Group’s foreign operations, which relate to subsidiaries only, from their 
functional currency into the parent’s functional currency, being Sterling, are recognised directly in the translation reserve. Gains and losses on 
hedging instruments that are designated as hedges of net investments in foreign operations are included in the translation reserve.
Therefore £158,000 has been recorded in the translation reserve during the period, which would otherwise have been recognised in administration 
costs (2010: £257,000), if hedge accounting had not been adopted.
The hedging and translation reserves have been presented as separate reserves in the current and prior year.
Notes Forming Part of the Consolidated 
Financial Statements continued 58 59 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
32. Acquisition of subsidiary
On 22 December 2011 the Group acquired the entire issued share capital of RESORBA®, a manufacturer of sutures and collagen products with direct 
sales capabilities in Germany, the Czech Republic and Russia. The primary reason for the acquisition is to provide the Group with further commercial 
opportunities and more direct control of our sales channels.
Book value
£’000
Fair value
£’000
Identifiable net assets acquired
Intellectual property 5,544 11,763
Property, plant and equipment 3,870 3,870
Inventories 3,280 3,280
Trade and other receivables 2,064 2,064
Cash and cash equivalents 1,263 1,263
Trade and other payables (1,412) (1,412)
Deferred tax liabilities (1,571) (3,354)
13,038 17,474
Goodwill 16,212 36,450
Total consideration 53,924
Goodwill is denominated in Euros in line with RESORBA®’s functional currency. The goodwill is recorded at the closing Euro rate on 31 December 2011.
Satisfied by: £’000 
Cash: Paid on 20 December 2011 52,869
Post closing adjustment: cash to be paid from Escrow in 2012 368
Equity instruments (954,000 ordinary shares in AMS Group plc) 687
53,924
Net cash flow arising on acquisition £’000
Cash consideration 53,924
Post closing adjustment: cash to be received from Escrow in 2012 469
Cash acquired (1,263)
53,130
The goodwill arising on the acquisition of RESORBA® is attributable to the assembled workforce and the implied workforce.
None of the goodwill is expected to be deductible for income tax.
The fair value of financial assets includes receivables (predominately trade receivables) with a fair value of £2.1 million and a gross contractual value of 
£2.1 million. The best estimate at acquisition date of the contractual cash flows not to be collected are £nil.
Total costs for the transaction amounted to £3,244,000, of which, £1,807,000 was included in administration expenses (exceptional items), £449,000 
was capitalised as the cost of debt, and £988,000 was off-set against share premium as the cost of raising equity. 
RESORBA® contributed £nil to revenue and £nil to profit before tax for the period between the date of acquisition and 31 December 2011.
If the acquisition of RESORBA® had been completed on the first day of the financial year ended 31 December 2011, Group revenues for the period 
would have been £52,537,000 and the Group profit attributable to equity holders of the parent would have been £6,222,000. 
33. Share-based payments
The charge for share-based payments under IFRS 2 arises across the following schemes: 
2011
£’000
2010
£’000
Unapproved Executive Share Option Scheme, Enterprise Management Incentive Scheme and Company Share Option Scheme 64 62
Long-Term Incentive Plan 141 101
Deferred Share Bonus Scheme 132 119
337 282 60 61 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
33. Share-based payments continued
Unapproved Executive Share Option Scheme and Enterprise Management Incentive Scheme and Company Share Option Plan
The fair value of the schemes and plans is calculated based on a Black-Scholes Merton model assuming the inputs below:
Grant Date 15/07/2004 16/07/2004
Share price at grant date 9p 9p
Exercise price 9p 9p
Expected life 3.5 yrs 3.5 yrs
Contractual life 10 yrs 10 yrs
Risk free rate 4.50% 4.50%
Expected volatility 30% 30%
Expected dividend yield 0% 0%
Fair value of options 2p 1p
Grant Date 21/03/2005 12/09/2005 15/03/2006 06/04/2006 21/09/2006 12/04/2007 26/09/2007 16/04/2008 15/10/2008
Share price at grant date 10.2p 9.25p 10.75p 10.75p 11.25p 16.75p 26.75p 32.25p 31.75p
Exercise price 10.2p 9.25p 10.75p 10.75p 11.25p 16.75p 26.75p 32.25p 31.75p
Expected life 3.5 yrs 3.5 yrs 3.5 yrs 3.5 yrs 3.5 yrs 3.5 yrs 3.5 yrs 3.5 yrs 3.5 yrs
Contractual life 10 yrs 10 yrs 10 yrs 10 yrs 10 yrs 10 yrs 10 yrs 10 yrs 10 yrs
Risk free rate 4.50% 4.50% 4.50% 4.50% 4.50% 5.00% 5.00% 5.00% 5.00%
Expected volatility 30% 30% 30% 30% 30% 27% 27% 38% 38%
Expected dividend yield 0% 0% 0% 0% 0% 0% 0% 0% 0%
Fair value of options 1p 1p 2p 1p 1p 2p 4p 8p 8p
Grant Date 20/04/2009 05/10/2009 16/04/2010 20/10/10 15/04/11 08/09/11
Share price at grant date 33.75p 28.75p 42.0p 64.0p 88.0p 86.25p
Exercise price 33.75p 28.75p 42.0p 64.0p 88.0p 86.25p
Expected life 3 yrs 3 yrs 3 .5yrs 3 yrs 3 yrs 3 yrs
Contractual life 10 yrs 10 yrs 10 yrs 10 yrs 10 yrs 10 yrs
Risk free rate 2.40% 2.40% 2.40% 2.40% 1.92% 1.92%
Expected volatility 34% 34% 34% 34% 18% 18%
Expected dividend yield 0% 0% 0% 0% 0.7% 0.7%
Fair value of options 6p 5p 9p 8p 9p 9p
Under the terms of the Company’s Share Option Schemes, approved by Shareholders in 1999 and amended in 2001 and 2002, the Board may offer 
options to purchase ordinary shares in the Company to all employees of the Company at the market price on a date to be determined prior to the 
date of the offer. Since 2005, individuals who are entitled to awards under the LTIP are no longer eligible to receive options under the Company’s 
Share Option Schemes.
Performance targets are assessed over a three-year period from the date of grant. Once options have vested they can be exercised during the period 
up to 10 years from the date of grant.
The expected volatility was determined by calculating the historic volatility of the Group’s share price over the previous three years.
Notes Forming Part of the Consolidated 
Financial Statements continued 60 61 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
33. Share-based payments continued
Options have been granted over the following number of ordinary shares which were outstanding at 31 December 2011:
Grant date
Option
price (p)
Weighted
average
price at
exercise (p)
 No. of
options
as at
01 Jan
2011
Remaining
life 
01 Jan
2011 Issued Lapsed Exercised
No. of 
options
as at 
31 Dec
2011
Remaining
life
31 Dec
2011
Unapproved Executive Share 
Option Scheme
20.04.09 33.75 – 70,000 8.3 – – – 70,000 7.3
16.04.10 42.00 – 389,000 9.3 – (1,000) – 388,000 8.3
20.10.10 64.00 – 306,250 9.8 – – – 306,250 8.8
Enterprise Management 
Incentive Scheme
15.07.04 9.00 78.88 15,808 3.5 – – (5,000) 10,808 2.5
16.07.04 9.00 – 4,824 3.5 – – – 4,824 2.5
21.03.05 10.20 – – 4.2 – – – – 3.2
12.09.05 9.25 – – 4.7 – – – – 3.7
15.03.06 10.75 – 1,000 5.2 – – – 1,000 4.2
06.04.06 10.75 – – 5.3 – – – – 4.3
21.09.06 11.25 – 12,000 5.7 – – – 12,000 4.7
12.04.07 16.75 82.76 335,414 6.3 – – (140,267) 195,147 5.3
26.09.07 26.75 83.00 13,000 6.7 – – (9,000) 4,000 5.7
16.04.08 32.25 83.00 197,500 7.3 – – (140,000) 57,500 6.3
15.10.08 31.75 85.00 45,000 7.8 – – (45,000) – 6.8
20.04.09 33.75 – 536,500 8.3 – (140,000) – 396,500 7.3
05.10.09 28.75 80.55 357,500 8.8 – (98,056) (31,944) 227,500 7.8
16.04.10 42.00 80.38 1,048,630 9.3 – (164,987) (12,713) 870,930 8.3
Company Share Option Plan
20.10.10 64.00 – 118,750 9.8 – – – 118,750 8.8
15.04.11 88.00 – – – 30,000 – – 30,000 9.3
08.09.11 86.25 – – – 54,000 – – 54,000 9.7
– – 3,451,176 – 84,000 (404,043) (383,924) 2,747,209 –
The weighted average remaining contractual life of the options outstanding at 31 December 2011 is 7.3 years (2010: 8.7 years).
2011
Number of 
Options
Weighted 
average
exercise 
price (p)
2010
Number of 
Options
Weighted 
average
exercise price 
(p)
Outstanding at beginning of the period 3,451,176 38.37 4,523,557 18.34
Granted 84,000 86.88 1,956,130 46.78
Exercised (383,924) 24.75 (2,830,261) 38.69
Forfeited (404,043) 18.84 (198,250) 37.25
Expired – – – –
Outstanding at end of the period 2,747,209 41.57 3,451,176 38.37
Exercisable at end of period 285,279 22.56 382,046 16.48 62 63 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
33. Share-based payments continued
Long-Term Incentive Plan (LTIP)
The fair value of the LTIP is calculated based on a binomial tree model assuming the inputs below:
Grant date 12/10/2005 12/04/2007 15/10/2008 23/04/2009 15/04/2011
Share price of grant date 8.75p 16.75p 31.75p 33.3p 88.00p
Exercise price 0p 0p 0p 0p 0p
Expected life 3.5 yrs 3.5 yrs 3.5 yrs 3 yrs 3 yrs
Contractual life 10 yrs 10 yrs 10 yrs 10 yrs 10 yrs
Risk free rate 4.50% 5.00% 4.20% 2.40% 1.92%
Expected volatility 30% 27% 32.50% 34.43% 33.01%
Expected dividend yield 0% 0% 0% 0% 0.7%
Probability of performance conditions 40.40% 42.50% 100.00% 43% 52%
Fair value of option 2p 4p 31.7p 14.5p 76.5p
The expected volatility was determined by calculating the historic volatility of the Group’s share price over the previous three years. 
The entitlement to shares under the LTIP is subject to achieving the performance conditions referred to on page 27. The numbers shown are 
maximum entitlements and the actual number of shares (if any) will depend on these performance conditions being achieved.
Grant date
Market
price at 
date of 
grant (p)
Number of  
LTIPs at
01 Jan 
2011
Remaining
life
01 Jan
2011 Issued Lapsed Exercised
Number of 
LTIPs
31 Dec
2011
Remaining 
life 
31 Dec
2011
Long-Term Incentive Plan
15.10.08 31.75 300,000 7.8 – – – 300,000 6.8
23.4.09 33.30 1,076,485 8.3 – – – 1,076,485 7.3
16.04.10 42.00 110,000 9.3 – – – 110,000 8.3
15.04.11 88.00 – – 465,944 – – 465,944 9.3
– 1,486,485 – 465,944 – – 1,952,429 –
The weighted average remaining contractual life of the LTIPs outstanding at 31 December 2011 is 7.8 years (2010: 8.3 years).
2011
Number of
Options
2010
Number of
options
Outstanding at beginning of the period 1,486,485 8,000,229
Granted 465,944 140,000
Exercised – (6,423,744)
Forfeited – (230,000)
Expired – –
Outstanding at end of the period 1,952,429 1,486,485
Exercisable at end of period 300,000 –
The exercise price of these options is £1 for each issue of LTIPs.
Deferred Share Bonus Scheme (DSB)
The fair value of the DSB is calculated based on a Black-Scholes Merton model assuming the inputs below:
Grant date 12/04/2007 12/04/2007 02/05/2008 04/06/2008 23/04/2009
Share price at grant date 18.25p 18.25p 35.50p 35.50p 34.00p
Exercise price 0p 0p 0p 0p 0p
Expected life 3.5 yrs 3.5 yrs 3.5 yrs 3.5 yrs 3.0 yrs
Contractual life 10 yrs 10 yrs 10 yrs 10 yrs 10 yrs
Risk-free rate 5.00% 5.00% 5.00% 5.00% 2.40%
Expected volatility 27% 27% 38% 38% 30%
Expected dividend yield 0% 0% 0% 0% 0%
Probability of performance conditions 100% 66.70% 100% 100% 100%
Fair value of option 14p 9p 30p 28p 29p
Notes Forming Part of the Consolidated 
Financial Statements continued 62 63 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
33. Share-based payments continued
Grant date 05/05/2010 05/05/2010 11/05/2011 11/05/2011
Share price at grant date 40.32p 40.32p 83.00p 83.00p
Exercise price 0p 0p 0p 0p
Expected life 5 yrs 3 yrs 5 yrs 3 yrs
Contractual life 10 yrs 10 yrs 10 yrs 10 yrs
Risk-free rate 2.40% 2.40% 1.92% 1.92%
Expected volatility 34% 34% 18% 18%
Expected dividend yield 0% 0% 0.7% 0.7%
Probability of performance conditions 100% 100% 100% 100%
Fair value of option 34p 34p 72p 72p
The expected volatility was determined by calculating the historic volatility of the Group’s share price over the previous three years.
The weighted average remaining contractual life of the DSB outstanding at 31 December 2011 is 7.3 years (2010: 8.4 years). The entitlement to shares 
under the DSB is subject to a 3 year holding period. Additionally, for certain levels of share matching, additional performance conditions also need 
to be achieved. The actual number of shares that will be matched will depend on these performance conditions. Details on the DSB are given on 
page 27.
Grant date
Market
price at 
date of 
grant (p)
Number of 
 DSB 
matching 
shares at
01 Jan
2011
Remaining
life
01 Jan
2011 Issued Lapsed Exercised
Number of 
 DSB 
matching  
shares at 
31 Dec  
2011
Remaining 
life 
31 Dec 
2011
Deferred Share Bonus Plan
12.04.07 18.25 211,380 6.3 – – (18,081) 193,299 5.3
02.05.08 35.50 121,497 7.3 – (281) (35,108) 86,108 6.3
04.06.08 35.50 141,787 7.4 – – – 141,787 6.4
23.04.09 34.00 427,620 8.3 – (20,193) (14,214) 393,213 7.3
05.05.10 40.32 801,081 9.3 – (868) – 800,213 8.3
11.05.11 83.00 – – 121,576 (7,756) (743) 113,077 9.3
– 1,703,365 – 121,576 (29,098) (68,146) 1,727,697 –
Deferred Share Bonus Scheme (DSB)
2011
Number of
Options
2010
Number of
options
Outstanding at beginning of the period 1,703,365 1,490,300
Granted 121,576 819,681
Exercised (29,098) (503,578)
Forfeited (68,146) (103,038)
Expired – –
Outstanding at end of the period 1,727,697 1,703,365
Exercisable at end of period 421,194 211,380
The exercise price of the matching shares is £Nil.
34. Commitments under operating leases
As at 31 December 2011, the Group had outstanding commitments under operating leases, which fall due as follows:
2011
Land and
buildings
£’000
2011
Other
£’000
2010
Land and
buildings
£’000
2010
Other
£’000
Amounts payable under operating leases:
Within one year 872 110 847 31
In two to five years 2,887 180 3,171 151
After five years 6,419 – 6,929 –
10,178 290 10,947 182 64 65 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
35. Related party transaction
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in  
this note.
Notes Forming Part of the Consolidated 
Financial Statements continued 64 65 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
Note
2011
£’000
2010
£’000
Fixed assets 
Investments 3 62,236 10,280
Current assets
Debtors – due within one year 4 888 390
Cash at bank and in hand 1,822 –
2,710 390
Creditors: amounts falling due within one year 5 (3,796) (415)
Net current liabilities (1,086) (25)
Creditors: amounts falling due after more than one year 6 (18,507) –
Net assets 42,643 10,255
Capital and reserves
Called-up share capital 10,176 7,740
Share-based payments reserve 8 779 442
Investment in own shares 8 (40) (37)
Share premium account 8 31,704 306
Profit and loss account 8 24 1,804
Equity shareholders’ funds 42,643 10,255
The financial statements of Advanced Medical Solutions Group plc (registration number 2867684) on pages 65 to 68 were approved by the Board of 
Directors and authorised for issue on 27 April 2012 and were signed on its behalf by:
Chris Meredith
Chief Executive Officer
27 April 2012
Company Balance Sheet
At 31 December 2011 66 67 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
1. Significant accounting policies
Basis of accounting
The separate financial statements of the Company are presented as required by the Companies Act 2006. They have been prepared under the 
historical cost convention and in accordance with applicable United Kingdom Accounting Standards and law.
The principal accounting policies are summarised below. They have all been applied consistently throughout the year and the preceding year.
The Company has taken advantage of the exemption of FRS8 from disclosing transactions with wholly-owned members of the Group and the 
exemption in FRS29 for making disclosures relation to financial instruments.
Investments
Fixed asset investments in subsidiaries and associates are shown at cost less provision for impairment.
For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to 
the nominal value only of the shares issued. Any premium is ignored.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity 
instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities.
Share-based payments
The Group has applied the requirements of FRS20 Share-based Payments. In accordance with the transitional provisions, FRS 20 has been applied to all 
grants of equity instruments after 7 November 2002 that were unvested as at 1 January 2005.
The Group issues equity-settled share-based payments to certain employees. Equity-settled share-based payments are measured at fair value at the 
date of grant. The fair value as determined at the grant date of equity-settled share-based payments is expensed on a straight-line basis over the 
vesting period, based on the Group’s estimate of shares that will eventually vest.
Fair value is measured by use of a Black-Scholes Merton model. The expected life used in the model has been adjusted, based on management’s  
best estimate, for the effect of non-transferability, exercise restrictions and behavioural considerations.
2. Loss for the year
As permitted by section 408 of the Companies Act 2006 the Company has elected not to present its own profit and loss account for the year.  
AMS Group plc reported a loss for the financial year ended 31 December 2011 of £964,000 (2010 : £1,062,000).
The auditor’s remuneration for audit and other services is disclosed in note 7 to the consolidated financial statements.
The average number of employees in the year was 6 (2010: 6). The directors’ remuneration is detailed in note 9 to the consolidated financial 
statements.
Notes Forming Part of the Company Financial 
Statements 66 67 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
3. Fixed asset investments
Cost
Investments
in subsidiaries
£’000
Loans
£’000
Total
£’000
At 1 January 2011 5,317 42,208 47,525
Additions 1,828 53,903 55,731
Movement 337 (4,112) (3,775)
At 31 December 2011 7,482 91,999 99,481
Provisions for impairment
1 January 2011 and 31 December 2011 1,670 35,575 37,245
Net book value
At 31 December 2011 5,812 56,424 62,236
At 31 December 2010 3,647 6,633 10,280
Shares in Group undertakings and loans to Group undertakings have been written down to recognise losses in subsidiary companies.
The following were subsidiary undertakings at the end of the year and have all been included in the consolidated accounts.
Name
Country of
Operation
Proportion of 
voting rights
and ordinary
share capital
Held Nature of business
Advanced Medical Solutions Limited England 100% Development and manufacture of medical products
Advanced Medical Solutions (UK) Limited England 100% Holding Company
Advanced Medical Solutions Trustee Company Limited England 100% Trustee Company
Advanced Medical Solutions (Plymouth) Limited England 100% Development and manufacture of medical products
Advanced Healthcare Systems Limited England 100%
*
Dormant
Advanced Medical Solutions Group Inc. USA 100%
†
Holding Company
Advanced Medical Solutions (US) Inc USA 100%
§
Marketing support of medical products
MedLogic Global Holdings Limited England 100%
¶
Holding Company
Innovative Technologies Limited England 100%
‡
Dormant
Advanced Medical Solutions BV Netherlands 100% Development and manufacture of medical products
Aptus 694 GmbH Germany 100% Holding Company
RESORBA® Wundversorgung GmbH & Co. KG Germany 100%
#
Development and manufacture of medical products
RESORBA® Spol s.r.o. Czech Republic 100%
#
Manufacture and sales office of medical products
RESORBA® ooo Russia 100%
#
Sales office of medical products
Biopharm GmbH Germany 100%
@
Holding Company
Hiltner GmbH Germany 100%
#
Partner Company
MPN Medizin Produkte Neustadt GmbH Germany 100%
#
Manufacturer of medical products
* Held indirectly through Advanced Medical Solutions Limited.
‡ Held indirectly through MedLogic Global Holdings Limited.
† Held indirectly through Advanced Medical Solutions (UK) Limited.
§ Held indirectly through Advanced Medical Solutions Group Inc.
¶ Held indirectly through Advanced Medical Solutions (Plymouth) Limited.
# Held indirectly through Aptus 694 GmbH.
@ Held directly through Aptus 694 GmbH.
The above table reflects the situation at the year-end.
4. Debtors
2011
£’000
2010
£’000
Due within one year
Prepayments and accrued income 12 21
Other debtors 536 30
Amounts due from subsidiary undertakings 340 339
888 390 68 69 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
5. Creditors: amounts falling due within one year
2011
£’000
2010
£’000
Bank overdraft – 141
Trade creditors 90 154
Other creditors 15 –
Loan 1,965 –
Accruals and deferred income 1,726 120
3,796 415
6. Creditors: amounts falling due after more than one year
2011
£’000
2010
£’000
Loan 18,507 –
7. Share capital
Details on the share capital of the Company are provided in note 30 to the Group’s accounts.
8. Reserves
Share-based 
payments
£’000
Investment in 
own shares 
£’000
Share 
premium
£’000
Retained 
earnings
£’000
Total
£’000
At 1 January 2011 442 (37) 306  1,804  2,515 
Share-based payments 337  –  –  –  337 
Issue of share capital –  –  31,316  –  31,316 
Share options exercised –  –  82  –  82 
Shares purchased by EBT – (75) –  – (75)
Shares sold by EBT –  72  –  –  72 
Company loss for the year –  –  – (964) (964)
Dividends paid –  –  – (816) (816)
At 31 December 2011 779 (40) 31,704 24 32,467
Dividends will be paid up from subsidiaries to meet dividend payments proposed by the Company.
9. Share-based payments
The charge for share-based payments under FRS20 arises across the following schemes: 
2011
£’000
2010
£’000
Unapproved Executive Share Option Scheme, Enterprise Management Incentive Scheme and  
Company Share Option Scheme 64 62
Long-Term Incentive Plan 141 101
Deferred Share Bonus Scheme 132 119
337 282
Details on the share-based payments of the Company are provided in note 33 on pages 59 to 63 in the notes to the Group’s accounts.
Notes Forming Part of the Company 
Financial Statements continued 68 69 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
2011
£m
2010
£m
2009
£m
2008
£m
2007
£m
Consolidated income statement (Pre-exceptional)
Revenue 34.4  31.9  24.1  20.3  16.9 
Profit from operations 6.4  5.3  4.1  2.7  1.7 
Finance income –  –  –  0.3  0.3 
Profit attributable to equity holders of the parent 6.7  5.8  4.5  3.3  2.2 
Basic earnings per share 4.3p 3.8p 3.1p  2.3p  1.6p 
Consolidated statement of financial position
Net assets employed
Non-current assets 74.2  20.3  17.7  9.8  6.5 
Current assets 25.3  12.7  12.1  14.7  12.7 
Total liabilities (33.3) (5.2) (6.9) (4.6) (3.5)
Net assets 66.2 27.8 22.9 19.9 15.7
Shareholders’ equity
Share capital & investment in own shares 10.2  7.7  7.2  7.2  7.1 
Share-based payments reserve 0.8 0.5 0.5  0.3  0.2 
Share-based payments deferred tax reserve 0.6  0.4  0.6  0.6  0.3 
Share premium account 31.7  0.3  0.1  –  – 
Other reserve 1.5  1.5  1.5  1.5  1.5 
Hedging reserve – (0.1) – – –
Translation reserve (0.1) –  0.3  0.4  – 
Retained equity 21.5  17.5  12.7  9.9  6.6 
Equity attributable to equity holders of the parent 66.2  27.8  22.9  19.9  15.7
Five Year Summary 70 71 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Notice of Meeting
Notice is hereby given that the eighteenth Annual General Meeting of the Company will be held at 11.00 am on 12 June 2012 at Macdonald Portal 
Hotel, Cobblers Cross Lane, Tarporley, Cheshire, CW6 0DJ for the following purposes:
As ordinary business:
1. To receive the Report of the Directors and the Financial Statements of the Company for the year ended 31 December 2011 (together with the 
report of the auditor thereon).
2. To approve the Directors’ Remuneration Report for the year ended 31 December 2011.
3. To reappoint Deloitte LLP as auditor and to authorise the directors to fix their remuneration.
4. To re-elect Chris Meredith, (who retires by rotation in accordance with the Articles of Association) as a director of the Company.
5. To re-elect Dr. Don Evans, (who having been a director of the Company for more than ten years and is now Non-Executive Chairman, retires  
and is proposed for re-election each year) as a director of the Company.
6. To declare a final dividend of 0.305p per ordinary share, payable on 15 June 2012 to shareholders on the register at close of business on  
18 May 2012.
As special business:
To consider and, if thought fit, to pass Resolution 7, which will be proposed as an Ordinary Resolution, and Resolutions 8 and 9, which will be proposed 
as Special Resolutions.
7. To authorise the directors generally and unconditionally for the purposes of section 551 of the Companies Act 2006 (the ‘2006 Act’) to exercise all 
the powers of the Company to allot shares in the Company and to grant rights to subscribe for or to convert any security into shares in the 
Company (each an allotment of ‘relevant securities’) up to an aggregate nominal amount of £3,393,672 provided that this authority is for a period 
expriring upon the earlier of the date of the Company’s next Annual General Meeting and fifteen months after the date of the passing of this 
Resolution but the Company may before such expiry make an offer or agreement which would or might require relevant securities to be allotted 
after such expiry and the directors may allot relevant securities in pursuance of such offer or agreement notwithstanding that the authority 
conferred by this resolution has expired. This authority is in substitution for all subsisting authorities, to the extent unused.
8. Subject to the passing of resolution 7 above, to authorise the directors pursuant to section 570 of the 2006 Act to allot equity securities (within 
the meaning of section 560 of the 2006 Act) wholly for cash pursuant to the authority conferred by resolution 7 above as if section 561(1) of the 
2006 Act did not apply to any such allotment, provided that this power shall be limited to the allotment of equity securities:
(a) in connection with an offer of such securities by way of rights to holders of ordinary shares in proportion (as nearly as may be practicable) to 
their respective holdings of such shares, but subject to such exclusions or other arrangements as the directors may deem necessary or 
expedient in relation to fractional entitlements or any legal or practical problems under the laws of any territory, or the requirements of any 
regulatory body or stock exchange; 
(b) otherwise than pursuant to sub-paragraph (a) above up to an aggregate nominal amount of £1,018,101; and
(c) which shall expire on the earlier of the conclusion of the next Annual General Meeting of the Company and fifteen months after the date of 
the passing of this Resolution, save that the Company may before such expiry make an offer or agreement which would or might require 
equity securities to be allotted after such expiry and the directors may allot equity securities in pursuance of any such offer or agreement 
notwithstanding that the power conferred by this resolution has expired.
9. That the Company is hereby generally and unconditionally authorised for the purposes of Section 701 of the 2006 Act to make market purchases 
(within the meaning of Section 693(4) of the 2006 Act) of any of its ordinary shares of 5p each in the capital of the Company on such terms and in 
such manner as the directors may from time to time determine provided that:
(a) the maximum number of ordinary shares which may be purchased is 10,181,010;
(b) the minimum price which may be paid for each ordinary share is 5p which amount shall be exclusive of expenses, if any;
(c) the maximum price (exclusive of expenses) which may be paid for each ordinary share shall not be more than 5% above the average of the 
middle market quotations for an ordinary share as derived from The London Stock Exchange Daily Official List for the five business days 
immediately preceding the date on which the ordinary share is purchased;
(d) unless previously renewed, revoked or varied, this authority shall expire upon the earlier of the date of the Company’s next Annual General 
Meeting and fifteen months after the date of the passing of this Resolution; and 
(e) under this authority the Company may make a contract to purchase ordinary shares which would or might be executed wholly or partly after 
the expiry of this authority, and may make purchases of ordinary shares pursuant to it as if this authority had not expired.
By order of the Board
Mary Tavener
Company Secretary
27 April 2012
Registered office:
Premier Park, 33 Road One, Winsford Industrial Estate,  
Winsford, Cheshire, CW7 3RT. 70 71 Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Company Overview Business Review Corporate Governance Financial Statements
Notes
1. A member entitled to attend and vote at the meeting convened by the notice set out above may appoint a proxy to attend, speak and,  
on a poll to vote in his place. A holder of more than one ordinary share may appoint different proxies in relation to each or any of those ordinary 
shares. 
2. A member may appoint more than one proxy provided each proxy is appointed to exercise rights attached to different shares. A member may 
not appoint more than one proxy to exercise rights attached to any one share. To appoint more than one proxy notice must be given  
to the Company’s Registrars not later than 48 hours before the time appointed for the holding of the meeting. 
3. A proxy does not need to be a member of the Company but must attend the meeting to represent you. Details of how to appoint the Chairman 
of the meeting or another person as your proxy using the proxy form are set out at note 1 of the proxy form. If you wish your proxy to speak on 
your behalf at the meeting you will need to appoint your own choice of proxy (not the Chairman) and give your instructions directly to them.
4. On a vote on a resolution on a show of hands at the meeting, a proxy has one vote for and one vote against if the proxy has been appointed by 
more than one member and the proxy has been instructed by one or more of the members to vote for the resolution and by one or more other 
member to vote against it.
5. Any corporation which is a member can appoint one or more corporate representatives who may exercise on its behalf all of its powers as  
a member provided that they do not do so in relation to the same shares.
6. A form of proxy is enclosed for use by members. To be effective, it must be completed and arrive not later than 48 hours before the time fixed 
for the Meeting at Capita Registrars, PXS, 34 Beckenham Road, Beckenham, Kent BR3 4TU. You may also deliver by hand to The Registry, 
34 Beckenham Road, Beckenham, Kent BR3 4TU during usual business hours.
7.  The register of directors’ interests in the shares of the Company will be available for inspection at the registered office of the Company during 
usual business hours on any weekday (public holidays excepted) until the date of the Meeting and also on that date and at the place of the 
Meeting from 9.00 a.m. until the conclusion of the Meeting.
8.  The Company, pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, specifies that only those shareholders registered in  
the Register of Members of the Company as at 6:00 p.m. on 10 June 2012 shall be entitled to attend or vote at the aforesaid Annual General 
Meeting in respect of the number of shares registered in their names at that time. Changes in the entries in the relevant register of Securities 
after 6:00 p.m. on 10 June 2012 shall be disregarded in determining the rights of any person to attend or vote at the meeting.
Notes on special business
Resolution 7: Authority to Allot Shares and other relevant securities
This resolution would give the directors the authority to allot ordinary shares up to an aggregate nominal amount equal to £3,393,672 (representing 
67,873,440 ordinary shares of 5p each). This amount represents approximately one-third of the issued ordinary share capital of the Company as at 
27 April 2012, the latest practicable date prior to publication of this Notice.
The authority sought under this resolution will expire at the conclusion of the Annual General Meeting of the Company held in 2013 or, if earlier, 
15 months after the passing of the resolution.
While the Directors have no present intention of issuing any of the authorised but unissued share capital, it is considered prudent and appropriate to 
maintain the flexibility that this authority provides.
Resolution 8: Disapplication of Pre-emption Rights 
Your directors also require additional authority from shareholders to allot shares or grant rights over shares or sell treasury shares where they propose 
to do so for cash and otherwise than to existing shareholders in proportion to their existing holdings. Accordingly, Resolution 8 will be proposed as a 
special resolution to grant such authority. Apart from rights issues, open offers or any other pre-emptive offer as mentioned the authority will be 
limited to the issue of shares and sales of treasury shares for cash up to an aggregate nominal value of £1,018,101 (being 10% of the Company’s issued 
ordinary share capital at 27 April 2012, the latest practicable date prior to publication of this Notice). This is in keeping with the extent for which such 
authority has been sought and given at each previous Annual General Meeting of the Company since 2006. 
Allotments made under the authorisation in paragraph (a) of Resolution 8 would be limited to allotments by way of a rights issue only (subject to the 
right of the directors to impose necessary or appropriate limitations to deal with, for example, fractional entitlements and regulatory matters). 
If given, this authority will expire at the conclusion of the Annual General Meeting of the Company held in 2013 or, if earlier, 15 months after the 
passing of the resolution. 72 PB Advanced Medical Solutions Group plc Annual Report 2011 Advanced Medical Solutions Group plc Annual Report 2011
Notes on special business continued
Resolutions 9: Purchase by the Company of its own Shares 
In certain circumstances, it may be advantageous for the Company to purchase its own shares. Under Section 701 of the 2006 Act, the directors of a 
company may make market purchases of that company’s shares if authorised to do so. Your directors believe that granting such approval would be in 
the best interests of shareholders in allowing directors the flexibility to react promptly to circumstances requiring market purchases.
Accordingly, Resolution 9, which will be proposed as a special resolution, will give the directors the authority to purchase issued shares of the 
Company under Section 701 of the 2006 Act.
The authority contained in this resolution will be limited to an aggregate nominal value of £509,050 (representing 5% of the issued ordinary share 
capital of the Company as at 27 April 2012 the latest practicable date prior to publication of this Notice; representing 10,181,010 ordinary shares of 
5p each). The price which may be paid for those shares is also restricted as set out in the resolution. 
This authority will expire at the conclusion of the Annual General Meeting of the Company held in 2013 or, if earlier, 15 months after the passing of  
the resolution.
The Board has no present intention of exercising this authority. However, this will be kept under review, and the Board will use this power only if and 
when, taking account of market conditions prevailing at the time, other investment opportunities, appropriate gearing levels and the overall financial 
position of the Group, they believe that the effect of such purchases will be in the best interests of shareholders generally and that they will result in 
an increase in earnings per share.
Shares purchased under this authority may be held as treasury shares. Shares held in treasury do not carry voting rights and no dividends will be paid 
on any such shares. Shares held in treasury in this way can be sold for cash or cancelled. This would allow the Company to manage its capital base 
more effectively and to replenish its distributable reserves.
If and when the Board resolves to exercise its authority to make market purchases, it will at that time decide whether shares purchased are to be 
cancelled or held in treasury. 
As at 27 April 2012, the latest practicable date prior to publication of this Notice, there were share options outstanding over ordinary shares, 
representing 3.2% of the Company’s issued ordinary share capital. The Company has no warrants in issue in relation to its shares. If the buyback 
authority was to be exercised in full, these options would represent 3.3% of the Company’s ordinary issued share capital.
Notice of Meeting continued  Registered Office:
Premier Park, 33 Road One
Winsford Industrial Estate
Winsford, Cheshire, CW7 3RT
Company Number: 2867684
Tel: +44 (0)1606 863500
Fax: +44 (0)1606 863600
e-mail: info@admedsol.com
Web: www.admedsol.com