Quantum Pharma PLC Full Year Trading Update (6675V)

TIDMQP.

RNS Number : 6675V

Quantum Pharma PLC

01 February 2017

 
 For immediate release   1 February 2017 
 

This announcement contains inside information

for the purposes of Article 7 of EU Regulation 596/2014.

Quantum Pharma Plc

('Quantum' or the 'Group')

Full Year Trading Update &

Notice of Final Results

Quantum Pharma Plc (AIM: QP.), the service-led niche pharmaceutical developer, manufacturer and supplier, announces the following trading update for the year ended 31 January 2017.

The Board is pleased to report that unaudited Group adjusted EBITDA for the year ended

31 January 2017 ('FY17') is expected to be in line with market expectations. The level of net debt is expected to be in the region of GBP13.5 million as cash management continues to be a key focus for the Group.

The Group has taken a number of actions since October 2016 to tighten strategic focus and simplify its operations. These have included:

-- Prioritising the development of its unlicensed-to-licensed ('UL2L') product portfolio, with all UL2L products in the current pipeline now in active development;

-- Beginning work on broadening the Group's network of commercial partnerships, both in the UK and internationally, to take certain niche generic products already developed or in development to market;

   --     Significantly reducing the Group's net debt through the successful completion of a 

GBP15 million equity fundraise in November 2016, whilst continuing to closely manage working capital, leaving the Group well-financed to implement its strategy;

-- Ceasing trading at NuPharm, a loss-making contract manufacturing business, in line with the Group's stated plan; and

   --     New Board appointments to support the focused strategy; Chris Rigg as CEO, 

Gerard Murray as CFO, Ian Johnson as Chairman, Dr. John Brown as Senior

Non-Executive Director and Christopher Mills as Non-Executive Director.

As a result of these actions to tighten strategic focus, the current performance of the Group is supportive of market expectations for the year ending 31 January 2018.

It should be noted that the reported results for FY17 will contain significant exceptional one-off or non-operational items arising from these actions to simplify and focus the business, the majority of which are non-cash in nature. The largest individual impact arises from the decision to close NuPharm where the results will be presented as a discontinued operation and our balance sheet investment will be fully written down. The year-end net debt figure shown above substantially reflects the anticipated cash impact of these decisions.

Chris Rigg, CEO of Quantum, said: "The Group has made solid progress in simplifying and focusing on its core value opportunities. Prioritising the development of the UL2L products in our pipeline has given us a better opportunity to be first to market and drive value from the portfolio. We have taken decisive action to close a loss-making operation and have put the Group on a stronger financial footing going forward. I am pleased to report that we are executing in line with our plans."

The Group will announce final audited results for the year ended 31 January 2017 on Wednesday, 3 May 2017. An analyst briefing will be held at 09:30 a.m. at the offices of Buchanan, 107 Cheapside, London EC2V 6DN.

- Ends -

 
 For further information: 
 Quantum Pharma Plc 
 Chris Rigg, Chief Executive                                         Tel: [phone] 
  Officer                                                                              404 
 Gerard Murray, Chief                                             www.quantumpharmaplc.com 
  Financial Officer 
 [e-mail] 
 N+1 Singer 
 (Nominated Advisor & Broker) 
 Sandy Fraser / Nick Owen                  Tel: [phone] 
  / James White                                            3000 
 Media enquiries: 
 Buchanan 
 Henry Harrison-Topham /                   Tel: [phone] 
  Sophie Cowles                                            5000 
 [e-mail]            www.buchanan.uk.com 
 
 
 

Notes to Editors

Quantum Pharma is a service-led, niche pharmaceutical developer, manufacturer and supplier to the retail pharmacy, pharmaceutical wholesale, hospital, homecare and care home markets. Quantum Pharma operates through three divisions - Specials, Niche Pharmaceuticals and Medication Adherence - offering a portfolio of innovative and complementary products and services.

For further information, please visit www.quantumpharmagroup.com.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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February 01, 2017 02:00 ET (07:00 GMT)