Alliance Pharma PLC Pre-Close Trading Update (4469C)
January 22 2018 - 2:00AM
UK Regulatory
TIDMAPH
RNS Number : 4469C
Alliance Pharma PLC
22 January 2018
For immediate release 22 January 2018
ALLIANCE PHARMA PLC
("Alliance" or the "Group")
Pre-Close Trading Update
Alliance Pharma plc (AIM: APH), the specialty pharmaceutical
group, announces its pre-close trading update ahead of the
announcement of its preliminary results for the year ended 31
December 2017.
Group revenue for 2017 is expected to be GBP103.3m (2016:
GBP97.5m), representing a 6% increase, with profit before tax
expected to be in line with the Board's expectations.
Our international growth brands continued their strong
performance in 2017. Kelo-Cote(TM), our scar reduction product,
achieved a 33% increase in sales at GBP13.3m (2016: GBP10.1m) with
good performances across many international territories.
MacuShield(TM), for AMD (age-related macular degeneration), also
performed well with sales up 37% at GBP7.3m (2016: GBP5.3m).
Overall, our other brands have performed in line with
expectations.
Foreign exchange rate movements benefited sales in the year by
approximately GBP2.7m due to the weakening of Sterling when
compared with the Euro and US Dollar. On a constant currency basis,
the Group delivered a sales increase of 3%. The currency impact on
operating profits is much smaller due to the increases in cost of
goods and operating costs denominated in these currencies.
There was a significant increase in underlying free cash flow in
2017 to GBP21.5m, up from GBP13.0m in 2016, underscoring Alliance's
ability to generate high levels of cash flow. The improvement on
the prior year was due to the continued strong cash generation of
the business and the levelling of working capital following the
build-up in the first half of 2016 due to the acquisition of the
Healthcare Products Business from Sinclair Pharma plc
("Sinclair").
Alliance announced two acquisitions during December 2017:
Ametop(R) , a topical anaesthetic gel, and Vamousse(R) , for the
prevention and treatment of human head lice. These products were
acquired for US$7.5m (GBP5.6m) and an initial consideration of
US$13.0m (GBP9.7m) respectively, together with inventory totalling
$0.9m (GBP0.7m); both acquisitions were funded from existing cash
and bank facilities.
The Group's strong underlying cash generation, together with the
GBP4m warranty claim receipt from Sinclair, means that, after
spending GBP16.0m on acquisitions, the Group's net debt was
approximately GBP72.3m as at 31 December 2017 (31 December 2016:
GBP76.1m). Consequently adjusted net debt/EBITDA leverage has
fallen from 2.8 times to less than 2.5 times at the end of 2017.
Based on current business performance, we expect leverage to
continue to reduce to below 2.0 times by the end of 2018.
The Group expects to announce its preliminary results for the
twelve months ended 31 December 2017 on Tuesday 27 March 2018.
For further information:
Alliance Pharma plc + 44 (0) 1249 466966
John Dawson, Chief Executive Officer
Peter Butterfield, Deputy Chief Executive Officer
Andrew Franklin, Chief Financial Officer
www.alliancepharma.co.uk
Buchanan + 44 (0) 20 7466 5000
Mark Court / Sophie Wills / Gemma Mostyn-Owen
Numis Securities Limited + 44 (0) 20 7260 1000
Nominated Adviser: Michael Meade / Freddie Barnfield
Corporate Broking: James Black / Toby Adcock
Investec Bank plc +44 (0) 20 7597 5970
Corporate Finance: Daniel Adams / Ed Thomas
Corporate Broking: Patrick Robb / Rob Baker
Notes to editors:
About Alliance Pharma
Alliance, founded in 1998, is an international specialty
pharmaceutical group based in Chippenham, Wiltshire, UK. The Group
has sales in more than 100 countries worldwide via direct sales,
joint ventures and a wide 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 Group 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
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