Sinclair IS Pharma (SPH) shares jumped nearly 10 per cent after the company agreed to sell its non-aesthetics business to Aim-listed Alliance Pharma (APH) for £132m. The transaction should complete on 17 December 2015, but Sinclair will still be entitled to earn royalties on any future US sales of severe burns treatment Flammacerium, should the drug win approval from regulators.
Chief executive Chris Spooner said proceeds from the deal would be used to pay down the group's debt, which will leave its bank balances roughly £80m in the black. However, he said there were "no immediate plans" to return funds to shareholders. Any spare cash is likely to go towards an option to buy the Brazilian distributor for Silhouette - an aesthetic brand Sinclair bought in early 2014. During the last year, on a like-for-like basis, Silhouette sales surged 120 per cent, while the group's other aesthetic brands Ellansé and Perfectha grew by 86 and 13 per cent respectively.
Analysts at N+1 Singer have placed their forecasts under review to factor in the business sale, but had expected adjusted pre-tax profits of £13.4m for the year ending June 2016, giving EPS of 2.5p, compared to 1.7p in FY2015.
| SINCLAIR IS PHARMA (SPH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 39p | MARKET VALUE: | £191m | |
| TOUCH: | 38-39p | 12-MONTH HIGH: | 48p | LOW: 32p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 21p* | NET DEBT: | 40% | |
| Year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 32.80 | -11.7 | -5.1 | nil |
| 2012 | 51.40 | -6.2 | -1.3 | nil |
| 2013 | 55.40 | -17.0 | -3.7 | nil |
| 2014 | 63.56 | -4.4 | -0.9 | nil |
| 2015 | 75.89 | -8.2 | -1.5 | nil |
| % change | +19 | - | - | - |
Ex-div: na Payment: na *Includes intangible assets of £232m, or 47p a share | ||||
