Alliance Pharma PLC Half Year Trading Update (2949L)
July 18 2017 - 2:00AM
UK Regulatory
TIDMAPH
RNS Number : 2949L
Alliance Pharma PLC
18 July 2017
For immediate release 18 July 2017
ALLIANCE PHARMA PLC
("Alliance" or the "Company")
Half Year Trading Update
Alliance Pharma plc (AIM: APH), the specialty pharmaceutical
company, announces its pre-close trading update ahead of its
interim results for the six months ended 30 June 2017.
The Group performed well in the first half with sales for the
period up 8% at GBP50.3m (H1 2016: GBP46.4m). Overall the Company
has traded in line with the Board's expectations.
Our international growth brands delivered a solid performance in
the first half. Kelo-Cote(TM), our scar reduction product, achieved
a 52% increase in sales at GBP6.2m (2016: GBP4.1m). MacuShield(TM),
for age-related macular degeneration (AMD), also performed
strongly, with sales up 67% at GBP3.4m (2016: GBP2.0m). Overall,
our other brands performed in line with expectations.
As previously indicated, we continue to expect a decision in the
current quarter on the UK regulatory approval of Diclectin, a
potentially major product for the treatment of nausea and vomiting
of pregnancy.
Currency movements benefited sales in the period by
approximately GBP2.6m due to the weakening of Sterling when
compared against the rates for the same period last year primarily
of the Euro and US Dollar. However, the impact on operating profits
will be much smaller due to the increases in cost of goods and
operating costs denominated in these currencies.
Underlying free cash flow in the first half is expected to be
approximately GBP11.1m (2016: GBP2.1m), in-line with the free cash
flow generated in the second half of 2016, and represents a
significant improvement on the same period last year where free
cash flow in H1 2016 was suppressed by the build-up in working
capital following the acquisition of the Sinclair Pharma plc
("Sinclair") products.
Net debt decreased to approximately GBP63.4m as at 30 June 2017
(31 December 2016: GBP76.1m), driven primarily by the Group's
strong underlying cash generation and the GBP4m receipt from
Sinclair following the settlement announced in March 2017.
Similarly, leverage (defined as adjusted net debt/EBITDA)
reduced to 2.4 times at 30 June 2017 (31 December 2016: 2.8 times).
We expect leverage to continue to reduce to around 2.0 times by the
end of the year.
The Group expects to announce its interim results for the six
months ended 30 June 2017 on 13 September 2017.
For further information:
Alliance Pharma plc + 44 (0) 1249 466966
John Dawson, Chief Executive
Andrew Franklin, Chief Financial
Officer
www.alliancepharma.co.uk
+ 44 (0) 20 7466
Buchanan 5000
Mark Court / Sophie Cowles
+ 44 (0) 20 7260
Numis Securities Limited 1000
Nominated Adviser: Michael
Meade / Freddie Barnfield
Corporate Broking: James
Black / Toby Adcock
Notes to editors:
About Alliance
Alliance, founded in 1998, is an international speciality
pharmaceutical company based in Chippenham, Wiltshire, UK. The
Company has sales in more than 100 countries worldwide via direct
sales, joint ventures and a network of distributors. Alliance has a
strong track record of acquiring the rights to established niche
products and it currently owns or licenses the rights to
approximately 90 pharmaceutical and consumer healthcare products.
The Company continues to explore opportunities to expand its
product portfolio.
Alliance joined the AIM market of the London Stock Exchange in
December 2003 and trades under the symbol APH.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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