APH's revenue, EBITDA, and PBT all up more than 100%
Companies: Alliance Pharma plc
Alliance Pharma (LSE: APH) has released stellar half-year results for the period ending 30 June, with the international pharmaceutical company recording revenue, EBITDA, and PBT all up more than 100% yoy, and increasing its interim dividend by 10%.
The Group's pre-tax profits more than doubled to £11.7m, partly due to the impact of the Sinclair acquisition in December 2015. Revenues rose 103% to £46.4m from £23m for H1 2015, and EBITDA increased to £13.2m, up 109%. Operating profit for the half year totalled £12.6m compared with £6m in the first half of 2015.
The Sinclair products made up £20.6m of the company's revenue, whilst £25.8m came from the Alliance portfolio (+13% YoY). The weakening of GBP against USD and the Euro after the EU Referendum effectively increased sales by 2% compared to forex rates at the start of 2016. However, it is worth noting that the impact of these favourable conditions was offset by increased costs in USD and Euro, resulting in little impact on the company's PBT.
The business is strongly cash-generative, however, its short-term cash generation has been impeded by an increase in working capital from the balance of trade debtors and creditors associated with its acquisition of Sinclair's products. The group did increase its cash flow from operating activities to £4.2m (+50%).
Alliance, founded in 1998 and listed on the AIM market in December 2003, had sales in more than 100 countries worldwide from roughly 90 pharmaceutical and consumer healthcare products. The "transformed" company's latest results reflect the company's staggering growth in the past year, which mean it is now twice the size that it was in 2015. The board said:
"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."
Commenting on the today's results, Chairman Andrew Smith said Alliance was a "transformed business" with sales and profits in H1 having doubled YoY, and confirmed the company had lots of opportunities for further growth heading into H2:
"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."
Reflecting the company's progressive dividend policy and performance in H1, it raised its interim dividend by 10% to 0.403p per share. The dividend will be on 12 January to those registered by 23 December 2016.
