UPDATE 2-Advanced Medical H1 profit falls; to meet FY view

* H1 pretax profit, before items 896,000 stg vs 1.2 mln stg

* H1 rev 9.9 mln stg vs 9.8 mln stg

* To meet mkt view pretax profit 3 mln stg, rev 24 mln stg

* Looking for acquisitions; exapnsion of LiquiBand in U.S.

* Shares fall 4 pct

(Adds CEO's comments, update share movement)

By Shivani Singh

BANGALORE, Sept 8 (Reuters) - Woundcare specialist Advanced Medical Solutions Group Plc (AMSU.L) posted a 25 percent fall in first half pretax profit, hurt by destocking and reduced demand from major partners, but is confident of meeting full year market estimates.

The company is comfortable with analysts expectations of 3 million pounds in pretax profit, before special items on revenue of 24 million pounds for the year ended Dec 31, Chief Executive Don Evans told Reuters.

Advanced Medical, which sees sales weighted towards its second half, said ordering patterns were more regular now and forecast a positive longer term outlook.

Advanced Medical has order book visibility till early November, Evans said.

Advanced Medical, which is rationalising its two existing sites in Winsford, Cheshire into a new facility, has budgeted about 1 million pounds for related expenditure in 2009 and 2010.

The company took 186,000 pounds of related costs in the first half.

EXPANSION PLANS

Advanced Medical, which has been looking at acquisition and licensing opportunities, is looking at areas to access new technologies or alternatively improve distribution of its products, Evans said.

He added that the company would spend 1.5 million pounds on research and development in the year.

Advanced Medical, which broke even about three years ago, is focusing on capital growth and has never paid dividend, Evans said.

The company is looking at multi-partners for the marketing and distribution of LiquiBand in the U.S., which presents a big opportunity for medical adhesives, Evans said.

In July, the company signed a marketing and distribution deal with Stryker Corp (SYK.N) for LiquiBand, a single use tissue adhesive used to close trauma and minor surgical wounds. [ID:nBNG380946]

H1 PROFIT FALLS

The AIM-listed medical technology company said for the six months ended June 30, the company posted a pretax profit, before special items of 896,000 pounds ($1.47 million) compared with 1.2 million pounds a year ago.

Revenue was almost flat at 9.9 million pounds compared with 9.8 million pounds a year ago. Revenue fell 4 percent to 9.4 million pounds on a constant currency basis.

The company said cash and cash equivalents increased 89 percent to 1.6 million pounds from a year ago.

It has a three-year 5 million pounds debt facility.

It said gross margins improved to 49 percent from 47 percent a year ago, due to favourable exchange rates.

Shares of Advanced Medical were down 3.4 percent at 28.5 pence at 0930 GMT on the London Stock Exchange. They touched a trading low of 28.30 pence earlier in the session. ($1=.6118 Pound) (Editing by Jarshad Kakkrakandy)