Alliance Pharma PLC Pre-Close Trading Update (5696N)
21 January 2019 - 6:00PM
UK Regulatory
TIDMAPH
RNS Number : 5696N
Alliance Pharma PLC
21 January 2019
21 January 2019
ALLIANCE PHARMA PLC
("Alliance" or the "Group")
Pre-Close Trading Update
Alliance Pharma plc (AIM: APH), the international healthcare
group, is pleased to announce its unaudited pre-close trading
update ahead of the Group's preliminary results for the year ended
31 December 2018.
Revenues on a 'see-through' basis* for 2018 were up 22% on the
prior year (up 23% on a constant currency basis) at approximately
GBP124.0m (2017: GBP101.6m, restated following the adoption of IFRS
15). Excluding acquisitions, revenues increased 4% on the prior
year (4% on a constant currency basis). Underlying profit before
tax is expected to be in line with expectations.
Our International Star brands continued to perform strongly in
2018:
-- Kelo-cote(TM) delivered an excellent performance, with sales
increasing 68% to GBP22.5m (2017: GBP13.3m) with stronger than
expected growth across the Asia Pacific region and in mainland
Europe.
-- Nizoral(TM), the medicated anti-dandruff shampoo acquired
from Johnson & Johnson (J&J) in June 2018, performed in
line with expectations generating 'see-through' sales* of GBP10.9m
in the second half of 2018.
-- MacuShield(TM) performed well with sales up 6% at GBP7.0m
(2017: GBP6.6m, restated following the adoption of IFRS 15).
-- Vamousse(TM), acquired in December 2017, performed in line
with expectations, achieving sales of GBP5.8m, up 16% on 2017
(under previous ownership), and up 18% on a constant currency
basis.
-- Xonvea(TM), for the treatment of nausea and vomiting of
pregnancy where conservative management has failed, was launched in
October 2018 and is on track with expectations, having registered
its first sales and formulary inclusions.
As expected, revenues from our Local brands returned a better
performance in the second half of the year with sales of GBP40.6m
(2017: GBP37.2m). As a result, sales of Local brands for the year
were GBP77.8m (2017: GBP81.6m), down 5% on the previous year (down
5% on a constant currency basis). Going forwards, we expect sales
in this portfolio to remain broadly stable and in line with the
second half 2018 sales on an annualised basis.
Free cash flow for the year was slightly stronger than
anticipated at approximately GBP16.1m (2017: GBP22.0m, restated
following the adoption of IFRS 16), after allowing for costs
associated with the implementation of the Falsified Medicines
Directive, Brexit and launch costs relating to Xonvea. Adjusted net
debt/EBITDA leverage was better than expected at approximately 2.33
times (2017: 2.46 times) and, as planned, net debt remained at
similar levels to the half year-end at approximately GBP85.8m (30
June 2018: GBP86.3m). In 2019, we expect to generate strong free
cash flow, which will exceed 2017 levels, and for leverage to
reduce to below 2.0 times during the second half of 2019.
The Group expects to announce its preliminary results for the
year ended 31 December 2018 on Tuesday 26 March 2019.
Peter Butterfield, Chief Executive Officer of Alliance Pharma,
commented: "We are very pleased to report continued strong momentum
in our business, with sales in 2018 up 22% compared with the
previous year. We look forward to delivering further growth in the
year ahead and to employing the Group's strong cashflow to further
develop the business as the year progresses."
* 'See-through' revenues include the underlying sales from
Nizoral(TM). Under the terms of the transitional services agreement
with J&J, Alliance receives the benefit of the net profit on
sales of Nizoral from the date of acquisition up until the product
licences in the Asia-Pacific territories transfer from J&J to
Alliance, which is expected to occur during 2019 and 2020. Revenues
for 2018, on a statutory-reported basis, are expected to be
GBP118.2m, an increase of 16% on the prior year.
For further information:
Alliance Pharma plc + 44 (0)1249 466966
Peter Butterfield, Chief Executive
Officer
Andrew Franklin, Chief Financial Officer
www.alliancepharma.co.uk
Buchanan + 44 (0)20 7466 5000
Mark Court / Sophie Wills / Hannah
Ratcliff
Numis Securities Limited + 44 (0)20 7260 1000
Nominated Adviser: Michael Meade /
Freddie Barnfield
Corporate Broking: James Black
Investec Bank plc + 44 (0)20 7597 5970
Corporate Finance: Daniel Adams /
Ed Thomas
Corporate Broking: Patrick Robb /
Tejas Padalkar
About Alliance
Alliance Pharma plc (AIM: APH) is an international healthcare
group, headquartered in the UK with affiliate offices in Europe,
the Far East and the US and wide international reach through an
extensive network of distributors, generating sales in more than
100 countries.
We currently own or license the rights to more than 90
pharmaceutical and consumer healthcare products, which are managed
on a portfolio basis according to their growth potential.
Promotional investment is focussed on a small number of brands with
significant international or multi-territory reach. The remainder
of the portfolio comprises products which are sold in a limited
number of local markets and require little or no promotional
investment.
Our tried and tested 'Buy and Build' strategy, allows us to
benefit both from organic growth opportunities and from enhancing
our growth rate through carefully selected acquisitions.
For more information on Alliance, please visit our website:
http://www.alliancepharmaceuticals.com/
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTSEEESSFUSEEF
(END) Dow Jones Newswires
January 21, 2019 02:00 ET (07:00 GMT)
Alliance Pharma (LSE:APH)
Historical Stock Chart
From May 2024 to May 2024
Alliance Pharma (LSE:APH)
Historical Stock Chart
From May 2023 to May 2024