The devil was in the detail of results from Advanced Medical Solutions Group PLC (AIM:AMS) (AMS), which saw its full-year numbers met expectations.
A tweak to strategy spooked the market a little as it moved to just two partners from three for its US LiquiBand business, which sells wound closing technology.
“Although we understand the rationale for this move, we think that it significantly increases forecast risk in the short term,” said analysts at Liberum Capital in a note following AMS’s prelims.
“There is no certainty that the two remaining partners will be able to pick up the slack and there is a further risk to revenues if the Connexicon US approvals are delayed.
“Given that LiquiBand is very profitable, even a small miss on this front could have a material impact on profits," they added.
The City broker's analysts moved their recommendation on AMS shares to ‘hold’ from ‘buy’ and downgraded their price target to 296p a share from 339p.
Just after 9,00am, AMS stock was changing hands for 246p, down 7.75%.