Advanced Medical Solutions says it is speeding 'a move to profitability' and considering possible acquisitions.

Cheshire-based Advanced Medical, which trimmed last year's loss from £990,000 to £27,000 and reported a significantly reduced 2006 interim deficit of £158,000, is now 'trading at the top end of market expectations' , says chairman Dr Geoffrey Vernon. He says the AIM-listed global woundcare technology specialist is winning widening acceptance for its ActivHeal woundcare range by National Health Service trusts in the UK.

In addition, Advanced Medical, which will report its full year 2006 results in March, has won crucial acceptance by the US Food and Drugs Administration for its tissues adhesives and sealants technology. Vernon says the company's move to profitability and its 'strong cash position' is allowing management to consider 'suitable bolt-on acquisitions'.

Floated at 8.5p in 2002, Advanced Medical shares have fluctuated and now stand at 12.75p, up 0.5p today and valuing the company at £18.1 million. That is 22 per cent up on our August recommendation at 10.5p and leaves scope for possible future appreciation.