In November Sinclair Pharma (SPH) sold its non-aesthetics business to Aim-traded Alliance Pharma (APH). The result is a slimmed-down company with just four products and "a multitude of opportunities", according to chief executive Chris Spooner. Falling revenues afrom its suite of cosmetic products have been attributed to planned destocking of its distributor channel, while in-market sales were actually up 31 per cent.
While the costs associated with the sale of the non-aesthetics business exacerbated the pre-tax loss in comparison to the prior year, the £132m boost from the sale has resulted in a much healthier balance sheet. Having cleared its debt, the group used some of its cash for milestone payments it had owed for wrinkle smoothing product Ellansé.
Sinclair currently sells its products directly in Europe and via distributors in a number of countries in Asia and is now ready to launch its first product in the US, its largest potential market.
Broker N+1 Singer is expecting an adjusted full-year pre-tax loss of £7.3m and a loss per share of 1.7p, compared with a pre-tax profit of £2.1m and EPS of 0.6p in 2015.
SINCLAIR PHARMA (SPH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 34p | MARKET VALUE: | £169m | |
| TOUCH: | 33.8-35p | 12-MONTH HIGH: | 48p | LOW: 33p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 21p* | NET CASH: | £75.4m | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 10.5 | -17.8 | -3.5 | nil |
| 2015 | 7.67 | -22.7 | -4.5 | nil |
| % change | -27 | - | - | - |
Ex-div: na Payment: na *Includes intangible assets of £123m, or 25p a share | ||||
