Several key products continued to perform well for Aim-listed Alliance Pharma (APH) in its second half, which helped to boost underlying profit by 6 per cent to £11.4m. But the big news of the year came in December 2015, when Alliance acquired the healthcare division of fellow Aim company Sinclair Pharma (SPH). This acquisition has not only added 27 new products to the portfolio, but allowed the group to expand its global presence, particularly in Europe, giving it "a much better platform for the next move", according to chief executive John Dawson.
Although the acquisition was only completed right at the end of 2015, the new products contributed £0.8m to overall revenue in December alone. Staffing and administrative expenditure associated with the acquisition added £1.8m of costs in the year, but profit was sent rocketing by a one-off payment of £6.3m from French drugmaker Sanofi (fr:SAN) for the suspension of ImmuCyst production, which Alliance had formerly distributed.
Broker Numis expects adjusted pre-tax profit of £23.2m and EPS of 3.8p next year, up from £11.5m and 3.6p in 2015.
ALLIANCE PHARMA (APH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 49.8p | MARKET VALUE: | £233m | |
| TOUCH: | 49.3-49.5p | 12-MONTH HIGH: | 61p | LOW: 38p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 35p* | NET DEBT | 44% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 46.0 | 10.7 | 3.62 | 0.75 |
| 2012 | 44.8 | 10.8 | 3.61 | 0.83 |
| 2013 | 45.5 | 12.0 | 3.82 | 0.91 |
| 2014 | 43.5 | 10.2 | 3.17 | 1.00 |
| 2015 | 48.3 | 15.2 | 4.65 | 1.10 |
| % change | +11 | +49 | +47 | +10 |
Ex-div: 16 Jun Payment: 13 Jul *Includes intangible assets of £260m, or 56p a share | ||||
