Alliance Pharma PLC Half Year Trading Update (7500F)
17 July 2019 - 4:00PM
UK Regulatory
TIDMAPH
RNS Number : 7500F
Alliance Pharma PLC
17 July 2019
For immediate release 17 July 2019
ALLIANCE PHARMA PLC
("Alliance" or the "Group")
Half Year Trading Update
Alliance Pharma plc (AIM: APH), the international healthcare
group, is pleased to announce its pre-close trading update for the
six months ended 30 June 2019, which shows strong revenue growth
and leverage below 2.0 times.
Revenues on a 'see-through' basis* for the first half of 2019
are expected to be GBP70.3m, up 29% on the same period last year
(H1 2018: GBP54.5m) and up 28% on a constant currency basis.
Excluding acquisitions, revenues increased 10% on a constant
currency basis on the same period last year. Based on trading in
the year to date, the Board expects revenue and underlying trading
profit for the full year to be in line with expectations.
We continue to see sustained growth from our product portfolio
driven by our continued focus on both international growth markets
and higher growth, consumer healthcare products.
During the first half, our International Star brands saw healthy
revenue growth with sales of GBP30.9m (H1 2018: GBP17.3m), up 79%
compared with the same period last year and up 21% on a
like-for-like basis (excluding Nizoral(TM) and Xonvea(TM)). This
growth was underpinned by the continued growth of Kelo-cote(TM)
with sales up 20% at GBP13.1m (H1 2018: GBP10.9m), reflecting
continued demand in the Asia Pacific region. Revenues generated by
our Local brands in the first half were approximately GBP39.4m, an
increase of 6% on the same period last year (H1 2018:
GBP37.2m).
Underlying free cash flow** in the first half of 2019 was strong
at approximately GBP14.5m (H1 2018: GBP10.1m), leading to a
reduction in net debt in the period of approximately GBP11.7m to
GBP74.1m as at 30 June 2019. As a result of this strong cash
generation, leverage (defined as adjusted net debt/proforma EBITDA)
reduced to approximately 1.95 times at the end of June (31 December
2018: 2.33 times) and we expect to de-lever further in the second
half of the year.
We are also pleased to announce that we have agreed a new
GBP165m fully Revolving Credit Facility, together with a GBP50m
accordion, with an enlarged syndicate of lenders on improved terms,
replacing our existing facility which ran through to December 2020.
This new facility is available until July 2023, with a one-year
extension option, and provides further flexibility for the Group to
deliver carefully targeted acquisitions over the next few years to
complement its organic growth strategy.
The Group expects to announce its interim results for the six
months ended 30 June 2019 on 24 September 2019.
Peter Butterfield, Chief Executive Officer of Alliance Pharma,
commented: "We have seen continued momentum in our business during
the first half of 2019, with sales up 29% compared with the
previous year and growth coming largely from our consumer
healthcare products, which now account for over half of our
portfolio. As we continue to deliver good organic growth and strong
cashflows, the business will continue to de-lever quickly over the
course of the next six months leaving us well positioned to drive
future growth opportunities."
* 'See-through' revenues include the underlying sales from
Nizoral(TM). Under the terms of the transitional services agreement
with Johnson & Johnson, 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 the
second half of 2019 and 2020.
** Underlying free cash flow comprises cash generated from
operating activities less interest, tax and capital
expenditure.
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: Freddie Barnfield
/ Freddie Naylor-Leyland
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 subsidiaries 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 consumer
healthcare products and pharmaceuticals, which are managed on a
portfolio basis according to their growth potential. Promotional
investment is focused 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 strategy allows us to deliver good organic growth and to
enhance our growth rate through carefully selected
acquisitions.
For more information on Alliance, please visit our website:
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
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