Allergy Therapeutics' (AGY) shares may have bounced on the release of these half-year numbers, but investors are still waiting for important clinical results from the group’s third-phase birch allergy treatment by the end of the first quarter of 2019.
In the meantime, revenues rose by more than 10 per cent over the past six months, while operating profits – excluding R&D costs – grew by more than a quarter to £15.7m. R&D expenses came in slightly lower at £5m (£5.9m in 2018) as a result of reduced activity, while a £10.6m equity fundraising last summer helped nearly double cash balances to £31.6m by the end of the period.
Broker Numis expects sales to top £74m by the end of FY2019, although analysts warn that the shares remain “sensitive” to the outcome of the third-phase birch study. The company has said it could re-run the trial in the event of disappointing results*, and it also has a number of other studies in the works, including a third-phase trial of its grass allergy treatment in the US and Europe.
| ALLERGY THERAPEUTICS (AGY) | ||||
| ORD PRICE: | 14.4p | MARKET VALUE: | £91m | |
| TOUCH: | 14-15p | 12-MONTH HIGH: | 29p | LOW: 14p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 7p | NET CASH: | £28.9m | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017 | 42.2 | 6.4 | 1.0 | nil |
| 2018 | 46.7 | 10.8 | 1.6 | nil |
| % change | +11 | +68 | +62 | - |
| Ex-div: | na | |||
| Payment: | na |
*This article was updated on 12/3/19 when the company clarified that there is no guarantee of a re-trial.
