The US is a massive market for cosmetic enhancement products, which no doubt explains the move by Sinclair Pharma (SPH) to launch stateside. Its facelift product, Silhouette InstaLift, is being sold via distributors ThermiGen, and though it is only early days, demand is already growing.
US expansion is not all that's new about Sinclair in this reported period which, due to a change in the year-end, is a second interim period in a new financial year to December 2016. In late 2015, the group underwent a major destocking to reduce the lumpy nature of sales to large European customers, which has helped reign in costs. Although sales are flat compared with the six months to June 2015, chief executive Chris Spooner argues these numbers are a much better reflection of the actual market demand, and the company has bounced back from a revenue dip in the six months to December 2015 as customers adjusted to the changes.
Expansion into Brazil - the second largest global market for cosmetic products - bodes well, and plans are under way to get a second product approved in the US. Even without these opportunities, Sinclair is on track to generate 40 per cent sales growth in the 2016 calendar year.
House broker Peel Hunt forecasts adjusted pre-tax losses of £6.8m in the year to December, giving an adjusted loss per share of 2.7p. This compares to adjusted pre-tax profits of £12.6m in the previous year, although 2015 saw the divestment of the majority of Sinclair's products, skewing the comparison.
SINCLAIR PHARMA (SPH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 28.5p | MARKET VALUE: | £142m | |
| TOUCH: | 28.3-28.5p | 12-MONTHHIGH: | 42p | LOW: 26p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 22.2p* | NET CASH: | £24.4m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015^ | 17.3 | -7.2 | -1.3 | nil |
| 2016 | 17.3 | -3.4 | -0.5 | nil |
| % change | -0 | - | - | - |
Ex-div: na Payment: na *Includes intangible assets of £142m, or 29p a share ^Adjusted to account for sale of non-aesthetics business | ||||
