It was clear from speciality pharma group Sinclair IS Pharma's (SPH) trading update in July that the full-year performance would be robust. Like-for-like sales rose 4 per cent year on year and cash profit, adjusted for acquisition costs and other one-off charges, soared 39 per cent to £10m.
That was driven by an especially strong second half. In fact, reflecting robust trading at the company's aesthetic dermatology business, like-for-like sales growth reached a heady 13 per cent in the second half. That more than offset a 7.5 per cent decline in underlying sales during the first half.
Moreover, a better than expected initial contribution from three aesthetic brands acquired during the year - Perfectha, Ellansé and Silhouette - also supported growth. The £70m Silhouette deal was partly supported by a net £19.5m share placing in May, and the three deals overall contributed £6m to group sales. Management sees the aesthetics operation as its fastest-growing segment and expects sales from that business to exceed 50 per cent of the group total by the end of June 2015.
Broker Investec Securities currently expects adjusted pre-tax profit of £10.3m for 2015, giving adjusted EPS of 1.6p (from 0.9p in 2013), although these estimates could yet be upgraded by around 3 per cent.
| SINCLAIR IS PHARMA (SPH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 29p | MARKET VALUE: | £144m | |
| TOUCH: | 27-29p | 12-MONTH HIGH: | 34p | LOW: 28p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 24p* | NET DEBT: | 34% | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 27.6 | -18.3 | -13.5 | nil |
| 2011 | 32.8 | -11.7 | -5.1 | nil |
| 2012 | 51.4 | -6.2 | -1.3 | nil |
| 2013 | 55.4 | -17.0 | -3.7 | nil |
| 2014 | 63.6 | -4.4 | -0.9 | nil |
| % change | +15 | - | - | - |
Ex-div: - Payment: - *Includes intangible assets of £242m, or 49p a share | ||||
