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FTSE 100 medical products group ConvaTec reported higher than expected profits in its first set of results as a public company.

ConvaTec, which makes products such as colostomy bags, joined the stock exchange in October, raising just under £1.5bn in London’s biggest IPO of the year.

Adjusted earnings before interest, tax, depreciation and amortisation, the company’s preferred measure of performance, increased 7.1 per cent, to $508m. Consensus forecasts compiled by Bloomberg had predicted a figure of around $485m.

Revenue was 2.3 per cent higher than 2015, in line with analyst expectations at $1.7bn. Reported pre-tax profits rose 43 per cent, to $230m.

The Berkshire-based company also said its efforts to boost profit margins progressed faster than it had previously predicted. ConvaTec had been aiming boost margins by 3 percentage points by 2020, in an effort to catch up with more efficient rivals such as Danish group Coloplast.

Adjusted gross profit margin increased by 1.3 percentage points in 2016. Although some of the benefit was affected by foreign exchange movements, the company said its margin improvement plan had contributed a 0.9 percentage point improvement, ahead of schedule.

Paul Moraviec, ConvaTec chief executive, said:

We are successfully delivering on the strategy set out at the time of our IPO. All four franchises advanced well in 2016, resulting in group revenue growth of 4 per cent at constant currency. Performance in the advanced wound care franchise was particularly strong, and strategic initatives in ostomy care are gaining traction.

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