TIDMAPH
RNS Number : 7587J
Alliance Pharma PLC
14 September 2016
For immediate release 14 September 2016
ALLIANCE PHARMA PLC
("Alliance" or the "Company")
Interim Results for the six months ended 30 June 2016
Alliance Pharma plc (AIM: APH), the specialty pharmaceutical
company, is pleased to announce its interim results for the six
months ended 30 June 2016.
Highlights:
-- Half year revenue up 104% at GBP46.4m (H1 2015: GBP22.8m)
o Ex-Sinclair products have made an immediate contribution to
our results, in line with our expectations and enabling revenues to
more than double
o Underlying revenue growth of 6% in the original Alliance
portfolio
-- Our largest-selling brand is now the scar reduction product,
Kelo-cote(TM), which achieved H1 sales of GBP4.1m from a widely
spread international base
-- Hydromol(TM), our emollient range, maintained its double
digit growth rate, with H1 sales of GBP3.5m
-- MacuShield(TM), our nutritional supplement product for age
related macular degeneration (AMD), delivered H1 sales of GBP2.0m
(GBP1.4m in the five months after we acquired it in February
2015)
-- Half year EBITDA up 109% at GBP13.2m (H1 2015: GBP6.3m)
-- Half year PBT up 113% at GBP11.7m (H1 2015: GBP5.5m)
-- Basic earnings per share 2.04p (H1 2015: 1.65p)
-- Interim dividend up 10% to 0.403p (H1 2015: 0.366p)
-- Net bank debt GBP79.0m (31 December 2015: GBP71.5m)
o Driven jointly by increases in working capital and Sterling's
weakness
Commenting on the results, Andrew Smith, Alliance Pharma's
Chairman, said:
"Alliance Pharma is a transformed business with sales and
profits in the first half of 2016 having doubled from those of
2015. We are already seeing opportunities to exploit our expanded
international capabilities. We were delighted to announce yesterday
the signing of an EU licensing and distribution agreement for
Diclectin with Duchesnay Inc., which provides the opportunity to
launch this product in a further nine EU territories. This
agreement highlights the potential of our strengthened European
base."
For further information:
+ 44 (0) 1249
Alliance Pharma plc 466966
John Dawson, Chief Executive
Andrew Franklin, Chief Financial
Officer
Sarah Robinson, Company Secretary
+ 44 (0) 20 7466
Buchanan 5000
Mark Court / Sophie Cowles
/ Jane Glover
+ 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 specialty
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.
Chairman's and Chief Executive's Statement
Alliance Pharma in 2016 is twice the size that it was in 2015.
We are a transformed business looking forward to greatly increased
opportunities in 2016 and beyond. The integration of the Sinclair
Healthcare Products business acquired in December 2015 has brought
us 27 new products, increasing our portfolio to some 90 products,
and extended our reach from around 40 countries to over 100. We are
now a truly international business, with half of our sales in
markets outside the UK.
The original Alliance products performed strongly in the first
half and the ex-Sinclair products have made an immediate
contribution to our results, in line with our expectations.
Integration of the Sinclair operations is advancing well. We
have maintained the flow of the business and will be independent
from Sinclair in terms of the cash generating activities in Q4 this
year. Other items such as packaging and livery changes that depend
upon regulatory approvals will take up to 18 months to be complete
in all the territories.
Most of the key positions within the organisation have now been
filled and we are working hard to implement standard ways of
working and to develop a common culture, building on the best of
the two organisations.
Trading performance
In the first half of 2016, sales more than doubled to GBP46.4m
(H1 2015: GBP22.8m). The ex-Sinclair products contributed sales of
GBP20.6m, in line with expectations, while the balance of GBP25.8m
represented over 13% growth in the original Alliance portfolio.
This strong performance reflected 6% underlying growth, augmented
by 7% from one-off events such as the full year effects of products
acquired in 2015 or products with restored availability.
The weakening of Sterling against the Euro and the US Dollar
that developed during the half year had the effect of increasing
sales by 2% when compared to the rates at the start of the year.
The impact to profit before tax is significantly less due to the
benefit to sales being offset by increased costs denominated in
these currencies.
Our three strategic growth brands all performed well. Our
largest-selling brand is now the scar reduction product,
Kelo-cote(TM), which achieved H1 sales of GBP4.1m from a widely
spread international base. Hydromol(TM), our emollient range,
maintained its double digit growth rate, with H1 sales of GBP3.5m
predominantly from the UK. And MacuShield(TM), our nutritional
supplement product for age related macular degeneration (AMD)
delivered H1 sales of GBP2.0m, the majority of which originated
from the UK and Ireland. This compared with GBP1.4m in the five
months after we acquired it in February 2015.
UK
The UK remains our largest territory returning sales of GBP24.0m
(H1 2015: GBP18.3m).
In addition to Hydromol, mentioned above, other notable
achievements included:
The consumer healthcare brands performing well. Ashton &
Parsons Infants' Powders grew by 51% to GBP1.1m in H1 as we
signed-up more national retail chains and supported them with
advertising investment. Brand loyalty is strong and we expect
further growth as awareness of the brand spreads. Additionally,
Anbesol, our treatment for mouth ulcers and teething, had sales of
GBP0.8m in H1, an increase of 10% over the prior year.
In ophthalmology, UK MacuShield sales were GBP1.3m, compared
with GBP1.0m for the first five months of 2015.
We were able to bring our bladder cancer treatment,
ImmuCyst(TM), back to the market in February as our supplier,
Sanofi Pasteur, resumed production after a 3 1/2 -year suspension.
Production remains restricted, so we will not be able to expand our
market share beyond about 25% and we are thus managing sales
carefully to ensure continuity of care to every patient who begins
a course of treatment. Volumes have been building steadily and we
are confident that we will sell all our available supplies,
yielding revenues of around GBP1 million in 2016.
Sales of Forceval capsules continued their strong recovery from
stock-outs, with UK sales up 36% to GBP1.3m in H1 2016.
Western Europe (excl. UK)
Sales for the rest of Western Europe totalled GBP11.7m (H1 2015:
GBP2.3m).
In France sales were GBP4.5m with the largest seller being the
burns treatments Flammazine / Flammacerium at GBP1.4m.
In the Republic of Ireland, sales were GBP2.4m. Nu-Seals
achieved sales of GBP1.1m compared with GBP1.0m in the prior year
as the threat of generic substitution seems to have abated.
Additionally MacuShield performed strongly with sales of GBP0.4m
compared with GBP0.2m in the first five months of 2015.
In the Germany, Austria, Switzerland (DACH) region, sales were
GBP2.0m with the largest product being Flammazine at GBP0.9m.
Spain and Italy recorded sales of GBP1.4m and GBP1.3m
respectively with Aloclair, the mouth ulcer treatment, being the
largest product in each country with sales of GBP0.8m and GBP0.9m
respectively.
International
Total sales outside of Western Europe were GBP10.7m (H1 2015:
GBP2.2m).
Kelo-cote was the largest selling international product
recording sales of GBP3.2m, with GBP0.6m coming from Latin America,
GBP0.9m coming from China and GBP0.8m from Southeast Asia.
Flammazine sold GBP1.1m with GBP0.5m coming from Central and
Eastern Europe (CEE) and GBP0.5m from the Middle East and Africa
(MEA); and Aloclair GBP1.0m with GBP0.5m from CEE. International
sales for Syntometrine were GBP0.7m and the range of child
nutrition products acquired from Sinopharm in China last year
achieved sales of GBP0.4m.
Financial performance
Pre-tax profits more than doubled to GBP11.7m (H1 2015:
GBP5.5m). This was a particularly encouraging result in the first
period following the acquisition of the Sinclair products.
Gross margin was 56.0%, resulting in gross profit of GBP26.0m
(H1 2015: GBP13.8m, 60.5%). This lower gross margin percentage is
in line with our expectations as the Sinclair business has a
slightly lower average gross margin than our original Alliance
business. We expect average margin for the combined business to be
in the range 55%-60% going forward.
Operating costs for the half year totalled GBP13.4m compared
with GBP7.7m in the first half of 2015. Marketing investment was
mainly directed at Kelo-cote, Hydromol, MacuShield, Diclectin,
Ashton & Parsons, the re-introduction of ImmuCyst and the
Flamma franchise. Transition costs, including interim staff,
totalled GBP1.3m. Whilst there have been transition costs
associated with the integration of the Sinclair acquisition that
will not recur in 2017, they will be compensated by the full year
effect of employees recruited during this year.
Earnings before interest, taxes, depreciation and amortisation
(EBITDA), defined as Operating Profit (incl. share of Joint Venture
profit) less Depreciation and Amortisation, was GBP13.2m (H1 2015:
GBP6.3m). This represents 28.5% of sales, placing us close to the
top of our 25-30% target range.
Alliance remains a strongly cash-generative business. However,
cash generation in the short term has been constrained by an
increase in working capital from the balance of trade debtors and
creditors associated with the acquisition of the Sinclair products.
Working capital, with the exception of inventory, was not purchased
as part of the Sinclair acquisition and we have therefore seen a
build-up in H1 that we expect to now stabilise. Despite this, cash
flow from Operating Activities in the first half increased to
GBP4.2m (H1 2015: GBP2.8m).
Net debt rose to GBP79.0m from GBP71.5m at the end of 2015. The
increase was partly due to increases in working capital levels and
partly due to Sterling's weakness following the EU referendum, as
approximately half our debt is denominated in Euros and US Dollars.
At constant exchange rates, the 2016 half year figure would have
been approximately GBP75.8m. The movement in foreign denominated
loans and subsidiaries is largely accounted for within equity,
therefore there is minimal P&L impact from the exchange rate
movement on our loans.
The bank debt/EBITDA ratio remained stable over the period,
being 2.8 times at the end of the first half and also 2.8 times at
the end of 2015 (both including historic Sinclair pro forma
EBITDA). The ratio at half year was adversely impacted by
Sterling's weakness on net debt and the increase in working
capital. From the second half of 2016 onwards we expect to reduce
this figure progressively as cash generation increases and working
capital stabilises.
At the end of the period we had unused bank facilities of
GBP20.5m. This gives us ample headroom to finance bolt-on additions
if attractive opportunities arise.
Dividend
In line with our progressive dividend policy, and given the
strong progress made in the first half of 2016, we are making an
interim payment of 0.403p per ordinary share (H1 2015: 0.366p).
This represents an increase of 10% on last year's figure while
maintaining dividend cover at more than 3 times earnings.
The interim dividend will be paid on 12 January 2017 to
shareholders on the register on 23 December 2016.
Strategy
Our strategy is to build our portfolio by acquiring products
that are already established in their market or by in-licensing
already-developed products for launch. We deploy our capital to
grow our cash generating portfolio, leaving activities such as
manufacturing, storage and logistics to be outsourced to leading
specialist organisations in these fields.
In building our portfolio we balance two elements: the first
being brands with growth potential in which we invest and the
second being well-established niche brands that will maintain their
sales for many years with little or no promotion, thus providing a
cash generating "bedrock" that feeds the growth activities. By
balancing the two elements, we can invest in targeted marketing to
grow sales while maintaining good cash generation and
profitability.
Under our long-established 'buy and build' strategy we
supplement organic growth with acquisitions that allow us to
accelerate expansion and adjust the balance of our portfolio. The
Sinclair transaction in December 2015 was our 31st and largest-ever
acquisition. We made no acquisitions in H1 2016.
The Sinclair business brought us brands in both the 'growth' and
'bedrock' categories, leaving the balance broadly unchanged. Since
the acquisition we have been refining our strategies for individual
brands, to determine which products and which markets will be the
focus of our marketing investment.
Sinclair has greatly expanded our international footprint -
lifting non-UK sales from about 19% of turnover to approximately
50%, giving us a market presence in some 60 additional countries
and giving us critical mass in the major EU territories. This
creates new opportunities to broaden the marketing and distribution
of brands - although careful analysis and planning is necessary, as
a successful niche brand from one country may face a very different
competitive landscape in other markets. Our greater scale and
footprint also bring strategic advantages. Alliance is now a
credible candidate for larger and more complex acquisitions in a
wider range of territories; and we are also well placed to broaden
the scope of existing agreements, as indicated by yesterday's
announcement to acquire the licensing and distribution rights to
Diclectin in a further nine EU countries
We continue to make good progress towards UK registration for
Diclectin. This well-established product, which has been a
routinely used treatment in Canada for over 30 years for nausea and
vomiting of pregnancy. In the United States, it was licensed by the
FDA in 2013 under the name Diclegis with a Category A safety rating
for drugs used during pregnancy, and has performed strongly since
launch. We expect UK registration next year, enabling us to begin
sales in the second half.
In the meantime, in the UK consumer health market, we are
preparing to relaunch Lypsyl in the second half of this year. We
have re-engineered the product and upgraded the pack design to
enhance its shelf presence. The lip balm market is a crowded one,
but Lypsyl still enjoys high consumer awareness - the trademark was
first registered 125 years ago - and we are confident that this
rejuvenated brand can reclaim a strong position.
The significantly greater scale of our business has highlighted
the need for investment in a new enterprise resource planning (ERP)
system to manage the enlarged portfolio and facilitate further
expansion in the future. We will start this project in early 2017
once the majority of the Sinclair integration has completed.
Team
Prior to the acquisition of the Sinclair products, we had
fine-tuned the leadership of the major functions within the
business and also had in place Country Managers for France and
Germany. This greatly facilitated our absorption of the Sinclair
products business. As part of the Sinclair transaction, Dario
Opiparo transferred to us as Country Manager for Italy. We promoted
Steve Lobb to Head of UK & Ireland; Alex Duggan to Head of
Strategy for our Global Consumer Brands; and Karim Husny to be Head
of our International Business. Thus we have been able to hit the
ground running in taking over the new business that effectively
doubled the size of our operation. To complement the foregoing, we
have appointed Luis Silva as Country Manager for Spain, Roger Lim
as Regional Business Manager for Southeast Asia and we expect to
appoint a new head of our enlarged China business in the near
future. We thus have in place senior managers who can provide
market insight and knowledge across all our geographic
interests.
Charity
We continue to donate products regularly to International Health
Partners, which distributes medicines to doctors in the world's
neediest areas. We also support employee fundraising for local
causes including Wiltshire Air Ambulance and national charities
such as British Heart Foundation and The Alzheimer's Society.
Outlook
We are confident in the outlook for Alliance. We are putting
together a high calibre team within an efficient organisation using
class-leading systems to support further profitable transformation
over the next few years. In addition we will be investing in
Diclectin to provide a new platform for future growth.
In terms of the business environment, it is still too early to
assess the long-term impact of the UK's decision to renegotiate its
relationship with the European Union, which is reported will take
considerable time. However, with operations in France, Germany,
Italy and Spain, we do not expect market access to be a problem -
and all our licences are held within individual member states.
For the rest of this year, our focus will be on assimilating the
ex-Sinclair business and beginning to exploit the opportunities it
opens up for us. We do not anticipate any further substantial
acquisitions in the very near term, but remain alert to bolt-on
opportunities that add value. As we move through into next year, we
will be looking for the kind of product acquisitions and
in-licensing deals across Europe, such as Diclectin, that might not
have been open to us before. The past six months have begun the
transformation of Alliance, and we are encouraged by its progress
so far.
Unaudited Consolidated Income Statement
For the six months ended 30 June 2016
Unaudited Unaudited
Six months Six months
ended ended
30 June 30 June
2016 2015
Total Total
Note GBP 000s GBP 000s
---------------------------- ---- ------------ ------------
Revenue 46,372 22,795
Cost of sales (20,392) (8,996)
---------------------------- ---- ------------ ------------
Gross profit 25,980 13,799
---------------------------- ---- ------------ ------------
Operating expenses
Administration and
marketing expense (12,862) (7,232)
Amortisation of intangible
assets (84) (99)
Share-based employee
remuneration (404) (385)
(13,350) (7,716)
---------------------------- ---- ------------ ------------
Operating profit 12,630 6,083
Share of joint venture
profits 343 26
Operating profit including
share of joint venture
profits 12,973 6,109
Finance Costs
Interest payable and
similar charges 4 (1,660) (722)
Interest income 4 54 35
Other finance income 4 375 102
(1,231) (585)
---------------------------- ---- ------------ ------------
Profit on ordinary
activities before taxation 11,742 5,524
Taxation 5 (2,169) (1,152)
---------------------------- ---- ------------ ------------
Profit for the year
attributable to equity
shareholders 9,573 4,372
---------------------------- ---- ------------ ------------
Earnings per share
Basic (pence) 9 2.04 1.65
Diluted (pence) 9 2.02 1.64
---------------------------- ---- ------------ ------------
Unaudited Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2016
Unaudited
Unaudited Six months
Six months ended
ended 30 June
30 June 2016 2015
GBP 000s GBP 000s
Profit for the period 9,573 4,372
Other items recognised
directly in equity:
Items that may be reclassified
to profit or loss:
Interest rate swaps - cash
flow hedge (509) 80
Deferred tax on interest
rate swaps 102 (16)
Foreign exchange translation
differences 1,129 (3)
Total comprehensive income
for the period 10,295 4,433
---------------------------------- --------------- ------------
Unaudited Consolidated Balance Sheet
As at 30 June 2016
Unaudited Audited
30 June 31 December
2016 2015
Note GBP000s GBP000s
----------------------------- ---- --------- ------------
Assets
Non-current assets
Intangible assets 6 266,830 259,945
Property, plant and
equipment 1,182 1,013
Joint Venture investment 1,808 1,465
Joint Venture receivable 1,462 1,462
Deferred tax asset 520 418
Other non-current
assets 328 122
272,130 264,425
Current assets
Inventories 16,216 12,910
Trade and other receivables 7 22,718 11,630
Cash and cash equivalents 3,936 3,229
42,870 27,769
Total assets 315,000 292,194
----------------------------- ---- --------- ------------
Equity
Ordinary share capital 4,684 4,682
Share premium account 108,332 108,308
Share option reserve 3,014 2,610
Reverse takeover reserve (329) (329)
Other reserve (505) (98)
Translation reserve 1,161 32
Retained earnings 51,659 47,237
----------------------------- ---- --------- ------------
Total equity 168,016 162,442
Liabilities
Non-current liabilities
Long term financial
liabilities 11 59,380 58,968
Other liabilities 114 1,496
Deferred tax liability 39,519 37,413
Derivative financial
instruments 630 120
----------------------------- ---- --------- ------------
99,643 97,997
Current liabilities
Cash and cash equivalents 2,300 31
Financial liabilities 11 21,269 15,776
Corporation tax 2,022 2,075
Trade and other payables 8 21,750 13,873
47,341 31,755
Total liabilities 146,984 129,752
Total equity and liabilities 315,000 292,194
----------------------------- ---- --------- ------------
Unaudited Consolidated Statement of Cash Flows
For the six months ended 30 June 2016
Unaudited Unaudited
Six months Six months
ended ended
30 June 30 June
2016 2015
GBP 000s GBP 000s
Operating activities
Result for the period
before tax 11,742 5,524
Interest payable 1,660 722
Interest receivable (54) (35)
Other finance costs (375) (102)
Depreciation of property,
plant and equipment 181 136
Amortisation of intangible
assets 84 99
Share-based employee
remuneration 404 385
Change in inventories (3,306) (1,369)
Change in investments (343) (26)
Change in trade and
other receivables (11,088) (768)
Change in trade and
other payables 7,429 (815)
Tax paid (2,101) (964)
Cash flows from operating
activities 4,233 2,787
------------ ------------
Investing activities
Interest received 54 35
Payment of deferred
consideration (4,503) -
Development costs
capitalised (46) (7)
Purchase of property,
plant and equipment (325) (248)
Purchase of other
intangible assets - (6,500)
Purchase of other
non-current assets (203) -
Net cash used in investing
activities (5,023) (6,720)
------------ ------------
Financing activities
Interest paid and
similar charges (1,353) (588)
Loan issue costs (280) -
Proceeds from exercise
of share options 26 97
Dividend paid (1,714) (880)
Receipt from borrowings 4,500 5,500
Repayment of borrowings (3,000) (1,500)
Net cash used in financing
activities (1,821) 2,629
------------ ------------
Net movement in cash
and cash equivalents (2,611) (1,304)
Cash and cash equivalents
at beginning of period 3,198 1,020
Effects of exchange
rate movements 1,049 (27)
Cash and cash equivalents
at end of period 1,636 (311)
============ ============
Unaudited Consolidated Statement of Changes in Equity
For the six months ended 30 June 2016
Ordinary Share Share Reverse Translation
Share Premium Option takeover Other Reserve Retained Total
capital account reserve reserve reserve earnings equity
GBP GBP GBP GBP GBP GBP GBP
000s 000s 000s 000s 000s 000s 000s GBP 000s
Balance 1
January
2015
(audited) 2,641 29,388 1,995 (329) (103) - 37,188 70,780
--------------- --------- -------- -------- --------- -------- ------------------------- --------- --------
Issue of
shares 3 94 - - - - - 97
Dividend
payable/paid - - - - - - (2,643) (2,643)
Share options
charge - - 385 - - - - 385
--------------- --------- -------- -------- --------- -------- ------------------------- --------- --------
Transactions
with owners 3 94 385 - - - (2,643) (2,161)
--------------- --------- -------- -------- --------- -------- ------------------------- --------- --------
Profit for the
period - - - - - - 4,372 4,372
Other
comprehensive
income
Interest rate
swaps - cash
flow hedge - - - - 80 - - 80
Deferred tax
on interest
rate swaps - - - - (16) - - (16)
Foreign
exchange
translation
differences - - - - - - (3) (3)
Total
comprehensive
income for
the
period - - - - 64 - 4,369 4,433
Balance 30
June
2015
(unaudited) 2,644 29,482 2,380 (329) (39) - 38,914 73,052
--------------- --------- -------- -------- --------- -------- ------------------------- --------- --------
Balance 1
January
2016
(audited) 4,682 108,308 2,610 (329) (98) 32 47,237 162,442
--------------- --------- -------- -------- --------- -------- ------------------------- --------- --------
Issue of
shares 2 24 - - - - - 26
Dividend
payable/paid - - - - - - (5,151) (5,151)
Share options
charge - - 404 - - - - 404
--------------- --------- -------- -------- --------- -------- ------------------------- --------- --------
Transactions
with owners 2 24 404 - - - (5,151) (4,721)
Profit for the
period - - - - - - 9,573 9,573
Other
comprehensive
income
Interest rate
swaps - cash
flow hedge - - - - (509) - - (509)
Deferred tax
on interest
rate swaps - - - - 102 - - 102
Foreign
exchange
translation
differences - - - - - 1,129 - 1,129
Total
comprehensive
income for
the
period - - - - (407) 1,129 9,573 10,295
Balance 30
June
2016
(unaudited) 4,684 108,332 3,014 (329) (505) 1,161 51,659 168,016
--------------- --------- -------- -------- --------- -------- ------------------------- --------- --------
Notes to the Half Yearly Report
For the six months ended 30 June 2016
1. Nature of operations
Alliance Pharma plc ("the company") and its subsidiaries
(together "the Group") acquire, market and distribute
pharmaceutical products. The company is a public limited company
incorporated and domiciled in England. The address of its
registered office is Avonbridge House, Bath Road, Chippenham,
Wiltshire, SN15 2BB.
The company is listed on the London Stock Exchange, Alternative
Investment Market (AIM).
2. General information
The information in these financial statements does not
constitute statutory accounts as defined in section 434 of the
Companies Act 2006 and is un-audited. These financial statements
have been prepared in accordance with the AIM rules, and IAS 34 has
not been adopted. A copy of the Group's statutory accounts for the
period ended 31 December 2015, prepared under International
Financial Reporting Standards as adopted by the European Union, has
been delivered to the Registrar of Companies. The auditors' report
on those accounts was unqualified and did not contain statements
under section 498(2) or section 498(3) of the Companies Act
2006.
This interim financial report for the six month period ended 30
June 2016 (including comparatives for the six months ended 30 June
2015) was approved by the Board of Directors on 13 September
2016.
The current rate of cash generation by the Group comfortably
exceeds the capital and debt servicing needs of the business
(though there cannot, of course, be absolute certainty that the
rate of cash generation will be maintained). The Board remains
confident that all the bank covenants will continue to be met for
at least the next 12 months. The Group has a GBP5m Working Capital
Facility of which GBP2.2m is undrawn at the balance sheet date and
which the Board believes should comfortably satisfy the Group's
working capital needs for at least the next 12 months.
3. Accounting policies
The same accounting policies and methods of computation are
followed in the interim financial report as published by the
company in its 31 December 2015 Annual Report. The Annual report is
available on the company's website alliancepharmaceuticals.com.
4. Finance Costs
Unaudited
Unaudited Six months
Six months ended
ended 30 June 2015
30 June
2016 2015
GBP000s GBP000s
------------------------------- ----------- -------------
Interest payable
and similar charges
On loans and overdrafts (1,397) (536)
Amortised finance
issue costs (177) (52)
Notional interest (86) (134)
------------------------------- ----------- -------------
(1,660) (722)
Interest income 54 35
Other finance income
Foreign exchange
movements 375 102
375 102
------------------------------- ----------- -------------
Finance costs - net (1,231) (585)
=============================== =========== =============
Notional interest relates to the unwinding of the deferred
consideration on the MacuVision acquisition.
Notes to the Half Yearly Report (continued)
For the six months ended 30 June 2016
5. Taxation
Analysis of charge in period.
Unaudited Unaudited
Six months Six months
ended ended
30 June 30 June
2016 2015
GBP 000s GBP 000s
United Kingdom corporation
tax at 20%/20.5%
In respect of current
period 2,046 920
Current tax 2,046 920
Deferred tax 123 232
----------------------------
Taxation 2,169 1,152
============================ ============= =============
6. Intangible assets
Technical
know-how,
trademarks
and distribution Development
Goodwill rights costs Total
GBP 000s GBP 000s GBP 000s GBP 000s
Cost
At 1 January
2016 (audited) 26,035 237,324 438 263,797
Additions - - 47 47
Exchange adjustments - 6,922 - 6,922
At 30 June 2016
(unaudited) 26,035 244,246 485 270,766
---------------------- -------- ----------------- ----------- --------
Amortisation
At 1 January
2016 (audited) - 3,852 - 3,852
Amortisation
for the period - 84 - 84
At 30 June 2016
(unaudited) - 3,936 - 3,936
---------------------- -------- ----------------- ----------- --------
Net book amount
At 30 June 2016
(unaudited) 26,035 240,310 485 266,830
---------------------- -------- ----------------- ----------- --------
At 1 January
2016 (audited) 26,035 233,472 438 259,945
---------------------- -------- ----------------- ----------- --------
Notes to the Half Yearly Report (continued)
For the six months ended 30 June 2016
7. Trade and other receivables
Unaudited Audited
30 June 31 December
2016 2015
GBP 000s GBP 000s
Trade receivables 19,597 8,783
Other receivables 352 1,062
Prepayments and
accrued income 1,710 525
Amounts owed by
Joint Venture 1,059 1,260
22,718 11,630
=========== ==============
8. Trade and other payables
Unaudited Audited
30 June 31 December
2016 2015
GBP 000s GBP 000s
Trade payables 5,829 1,153
Other taxes and
social security
costs 1,173 905
Accruals and deferred
income 6,489 5,663
Other payables 1,262 728
Deferred consideration 2,184 5,026
Amounts due to Joint
Ventures 1,375 398
Dividend payable 3,438 -
----------- --------------
21,750 13,873
=========== ==============
Notes to the Half Yearly Report (continued)
For the six months ended 30 June 2016
9. Earnings per share (EPS)
Basic EPS is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary
shares outstanding during the year. For diluted EPS, the weighted
average number of ordinary shares in issue is adjusted to assume
conversion of all dilutive potential ordinary shares.
A reconciliation of the weighted average number of ordinary
shares used in the measures is given below:
Six months Six months
ended ended
30 June 30 June
2016 2015
Weighted Weighted
average average
number number
of shares of shares
000s 000s
----------------- ----------- -----------
For basic EPS 468,297 264,216
Share options 6,329 3,097
For diluted EPS 474,626 267,313
----------------- ----------- -----------
Six months Six months
to to
30 June 30 June
2016 2015
GBP 000s GBP 000s
-------------------- ----------- -----------
Earnings for basic
and diluted EPS 9,573 4,372
-------------------- ----------- -----------
The resulting EPS measures are:
Six months Six months
to to
30 June 30 June
2016 2015
Pence Pence
Basic EPS 2.04 1.65
------------- ----------- -----------
Diluted EPS 2.02 1.64
------------- ----------- -----------
Notes to the Half Yearly Report (continued)
For the six months ended 30 June 2016
10. Dividends
Six months Six months
ended ended
30 June 2016 30 June 2015
GBP
Pence/share 000s Pence/share GBP000s
Amounts recognised
as distributions
to owners in the
year
Interim dividend
for the prior financial
year 0.366 1,714 0.333 880
0.734 3,438
--------------------
Final dividend for
the prior financial
year 0.667 1,763
------------------------------ ----------- ----- -------------------- -----
5,152 2,643
------------------------------ ----------- ----- -------------------- -----
The final dividend for the prior financial year was approved by
the Board of Directors on 31 March 2016 and subsequently by the
shareholders at the Annual General Meeting on 25 May 2016. This
dividend has been included as a liability as at 30 June 2016, in
accordance with IAS 10 Events After the Balance Sheet Date, and was
paid on 13 July 2016 to shareholders who were on the register of
members at 17 June 2016.
11. Borrowings
Movements in borrowings are analysed as follows:
Six months
ended
30 June
2016
GBP 000s
At 1 January 2016 (audited) 74,744
------------------------------------- ------------------------------
Repayment of borrowings (3,000)
Revolving Credit Facility
drawdown 4,500
Amortisation of prepaid arrangement
fees 176
Additional prepaid arrangement
fee (280)
Exchange movements 4,509
------------------------------------- ------------------------------
At 30 June 2016 (unaudited) 80,649
===================================== ==============================
The carrying amount of the group's borrowings are denominated in
the following currencies:
Unaudited Audited
30 June 31 December
2016 2015
GBP 000s GBP 000s
GBP 38,581 37,185
USD 27,068 24,324
EUR 15,000 13,235
80,649 74,744
=========== ==============
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LFFFLAIIVLIR
(END) Dow Jones Newswires
September 14, 2016 02:00 ET (06:00 GMT)
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