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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Alliance Pharma Plc | LSE:APH | London | Ordinary Share | GB0031030819 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.60 | -1.78% | 33.10 | 32.95 | 33.85 | 33.95 | 32.95 | 33.95 | 1,864,058 | 16:35:13 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Pharmaceutical Preparations | 167.42M | 936k | 0.0017 | 195.88 | 179.87M |
TIDMAPH
RNS Number : 7587J
Alliance Pharma PLC
14 September 2016
For immediate release 14 September 2016
ALLIANCE PHARMA PLC
("Alliance" or the "Company")
Interim Results for the six months ended 30 June 2016
Alliance Pharma plc (AIM: APH), the specialty pharmaceutical company, is pleased to announce its interim results for the six months ended 30 June 2016.
Highlights:
-- Half year revenue up 104% at GBP46.4m (H1 2015: GBP22.8m)
o Ex-Sinclair products have made an immediate contribution to our results, in line with our expectations and enabling revenues to more than double
o Underlying revenue growth of 6% in the original Alliance portfolio
-- Our largest-selling brand is now the scar reduction product, Kelo-cote(TM), which achieved H1 sales of GBP4.1m from a widely spread international base
-- Hydromol(TM), our emollient range, maintained its double digit growth rate, with H1 sales of GBP3.5m
-- MacuShield(TM), our nutritional supplement product for age related macular degeneration (AMD), delivered H1 sales of GBP2.0m (GBP1.4m in the five months after we acquired it in February 2015)
-- Half year EBITDA up 109% at GBP13.2m (H1 2015: GBP6.3m) -- Half year PBT up 113% at GBP11.7m (H1 2015: GBP5.5m) -- Basic earnings per share 2.04p (H1 2015: 1.65p) -- Interim dividend up 10% to 0.403p (H1 2015: 0.366p) -- Net bank debt GBP79.0m (31 December 2015: GBP71.5m)
o Driven jointly by increases in working capital and Sterling's weakness
Commenting on the results, Andrew Smith, Alliance Pharma's Chairman, said:
"Alliance Pharma is a transformed business with sales and profits in the first half of 2016 having doubled from those of 2015. We are already seeing opportunities to exploit our expanded international capabilities. We were delighted to announce yesterday the signing of an EU licensing and distribution agreement for Diclectin with Duchesnay Inc., which provides the opportunity to launch this product in a further nine EU territories. This agreement highlights the potential of our strengthened European base."
For further information:
+ 44 (0) 1249 Alliance Pharma plc 466966 John Dawson, Chief Executive Andrew Franklin, Chief Financial Officer Sarah Robinson, Company Secretary + 44 (0) 20 7466 Buchanan 5000 Mark Court / Sophie Cowles / Jane Glover + 44 (0) 20 7260 Numis Securities Limited 1000 Nominated Adviser: Michael Meade / Freddie Barnfield Corporate Broking: James Black / Toby Adcock
Notes to editors:
About Alliance
Alliance, founded in 1998, is an international specialty pharmaceutical company based in Chippenham, Wiltshire, UK. The Company has sales in more than 100 countries worldwide via direct sales, joint ventures and a network of distributors. Alliance has a strong track record of acquiring the rights to established niche products and it currently owns or licenses the rights to approximately 90 pharmaceutical and consumer healthcare products. The Company continues to explore opportunities to expand its product portfolio.
Alliance joined the AIM market of the London Stock Exchange in December 2003 and trades under the symbol APH.
Chairman's and Chief Executive's Statement
Alliance Pharma in 2016 is twice the size that it was in 2015. We are a transformed business looking forward to greatly increased opportunities in 2016 and beyond. The integration of the Sinclair Healthcare Products business acquired in December 2015 has brought us 27 new products, increasing our portfolio to some 90 products, and extended our reach from around 40 countries to over 100. We are now a truly international business, with half of our sales in markets outside the UK.
The original Alliance products performed strongly in the first half and the ex-Sinclair products have made an immediate contribution to our results, in line with our expectations.
Integration of the Sinclair operations is advancing well. We have maintained the flow of the business and will be independent from Sinclair in terms of the cash generating activities in Q4 this year. Other items such as packaging and livery changes that depend upon regulatory approvals will take up to 18 months to be complete in all the territories.
Most of the key positions within the organisation have now been filled and we are working hard to implement standard ways of working and to develop a common culture, building on the best of the two organisations.
Trading performance
In the first half of 2016, sales more than doubled to GBP46.4m (H1 2015: GBP22.8m). The ex-Sinclair products contributed sales of GBP20.6m, in line with expectations, while the balance of GBP25.8m represented over 13% growth in the original Alliance portfolio. This strong performance reflected 6% underlying growth, augmented by 7% from one-off events such as the full year effects of products acquired in 2015 or products with restored availability.
The weakening of Sterling against the Euro and the US Dollar that developed during the half year had the effect of increasing sales by 2% when compared to the rates at the start of the year. The impact to profit before tax is significantly less due to the benefit to sales being offset by increased costs denominated in these currencies.
Our three strategic growth brands all performed well. Our largest-selling brand is now the scar reduction product, Kelo-cote(TM), which achieved H1 sales of GBP4.1m from a widely spread international base. Hydromol(TM), our emollient range, maintained its double digit growth rate, with H1 sales of GBP3.5m predominantly from the UK. And MacuShield(TM), our nutritional supplement product for age related macular degeneration (AMD) delivered H1 sales of GBP2.0m, the majority of which originated from the UK and Ireland. This compared with GBP1.4m in the five months after we acquired it in February 2015.
UK
The UK remains our largest territory returning sales of GBP24.0m (H1 2015: GBP18.3m).
In addition to Hydromol, mentioned above, other notable achievements included:
The consumer healthcare brands performing well. Ashton & Parsons Infants' Powders grew by 51% to GBP1.1m in H1 as we signed-up more national retail chains and supported them with advertising investment. Brand loyalty is strong and we expect further growth as awareness of the brand spreads. Additionally, Anbesol, our treatment for mouth ulcers and teething, had sales of GBP0.8m in H1, an increase of 10% over the prior year.
In ophthalmology, UK MacuShield sales were GBP1.3m, compared with GBP1.0m for the first five months of 2015.
We were able to bring our bladder cancer treatment, ImmuCyst(TM), back to the market in February as our supplier, Sanofi Pasteur, resumed production after a 3 1/2 -year suspension. Production remains restricted, so we will not be able to expand our market share beyond about 25% and we are thus managing sales carefully to ensure continuity of care to every patient who begins a course of treatment. Volumes have been building steadily and we are confident that we will sell all our available supplies, yielding revenues of around GBP1 million in 2016.
Sales of Forceval capsules continued their strong recovery from stock-outs, with UK sales up 36% to GBP1.3m in H1 2016.
Western Europe (excl. UK)
Sales for the rest of Western Europe totalled GBP11.7m (H1 2015: GBP2.3m).
In France sales were GBP4.5m with the largest seller being the burns treatments Flammazine / Flammacerium at GBP1.4m.
In the Republic of Ireland, sales were GBP2.4m. Nu-Seals achieved sales of GBP1.1m compared with GBP1.0m in the prior year as the threat of generic substitution seems to have abated. Additionally MacuShield performed strongly with sales of GBP0.4m compared with GBP0.2m in the first five months of 2015.
In the Germany, Austria, Switzerland (DACH) region, sales were GBP2.0m with the largest product being Flammazine at GBP0.9m.
Spain and Italy recorded sales of GBP1.4m and GBP1.3m respectively with Aloclair, the mouth ulcer treatment, being the largest product in each country with sales of GBP0.8m and GBP0.9m respectively.
International
Total sales outside of Western Europe were GBP10.7m (H1 2015: GBP2.2m).
Kelo-cote was the largest selling international product recording sales of GBP3.2m, with GBP0.6m coming from Latin America, GBP0.9m coming from China and GBP0.8m from Southeast Asia.
Flammazine sold GBP1.1m with GBP0.5m coming from Central and Eastern Europe (CEE) and GBP0.5m from the Middle East and Africa (MEA); and Aloclair GBP1.0m with GBP0.5m from CEE. International sales for Syntometrine were GBP0.7m and the range of child nutrition products acquired from Sinopharm in China last year achieved sales of GBP0.4m.
Financial performance
Pre-tax profits more than doubled to GBP11.7m (H1 2015: GBP5.5m). This was a particularly encouraging result in the first period following the acquisition of the Sinclair products.
Gross margin was 56.0%, resulting in gross profit of GBP26.0m (H1 2015: GBP13.8m, 60.5%). This lower gross margin percentage is in line with our expectations as the Sinclair business has a slightly lower average gross margin than our original Alliance business. We expect average margin for the combined business to be in the range 55%-60% going forward.
Operating costs for the half year totalled GBP13.4m compared with GBP7.7m in the first half of 2015. Marketing investment was mainly directed at Kelo-cote, Hydromol, MacuShield, Diclectin, Ashton & Parsons, the re-introduction of ImmuCyst and the Flamma franchise. Transition costs, including interim staff, totalled GBP1.3m. Whilst there have been transition costs associated with the integration of the Sinclair acquisition that will not recur in 2017, they will be compensated by the full year effect of employees recruited during this year.
Earnings before interest, taxes, depreciation and amortisation (EBITDA), defined as Operating Profit (incl. share of Joint Venture profit) less Depreciation and Amortisation, was GBP13.2m (H1 2015: GBP6.3m). This represents 28.5% of sales, placing us close to the top of our 25-30% target range.
Alliance remains a strongly cash-generative business. However, cash generation in the short term has been constrained by an increase in working capital from the balance of trade debtors and creditors associated with the acquisition of the Sinclair products. Working capital, with the exception of inventory, was not purchased as part of the Sinclair acquisition and we have therefore seen a build-up in H1 that we expect to now stabilise. Despite this, cash flow from Operating Activities in the first half increased to GBP4.2m (H1 2015: GBP2.8m).
Net debt rose to GBP79.0m from GBP71.5m at the end of 2015. The increase was partly due to increases in working capital levels and partly due to Sterling's weakness following the EU referendum, as approximately half our debt is denominated in Euros and US Dollars. At constant exchange rates, the 2016 half year figure would have been approximately GBP75.8m. The movement in foreign denominated loans and subsidiaries is largely accounted for within equity, therefore there is minimal P&L impact from the exchange rate movement on our loans.
The bank debt/EBITDA ratio remained stable over the period, being 2.8 times at the end of the first half and also 2.8 times at the end of 2015 (both including historic Sinclair pro forma EBITDA). The ratio at half year was adversely impacted by Sterling's weakness on net debt and the increase in working capital. From the second half of 2016 onwards we expect to reduce this figure progressively as cash generation increases and working capital stabilises.
At the end of the period we had unused bank facilities of GBP20.5m. This gives us ample headroom to finance bolt-on additions if attractive opportunities arise.
Dividend
In line with our progressive dividend policy, and given the strong progress made in the first half of 2016, we are making an interim payment of 0.403p per ordinary share (H1 2015: 0.366p). This represents an increase of 10% on last year's figure while maintaining dividend cover at more than 3 times earnings.
The interim dividend will be paid on 12 January 2017 to shareholders on the register on 23 December 2016.
Strategy
Our strategy is to build our portfolio by acquiring products that are already established in their market or by in-licensing already-developed products for launch. We deploy our capital to grow our cash generating portfolio, leaving activities such as manufacturing, storage and logistics to be outsourced to leading specialist organisations in these fields.
In building our portfolio we balance two elements: the first being brands with growth potential in which we invest and the second being well-established niche brands that will maintain their sales for many years with little or no promotion, thus providing a cash generating "bedrock" that feeds the growth activities. By balancing the two elements, we can invest in targeted marketing to grow sales while maintaining good cash generation and profitability.
Under our long-established 'buy and build' strategy we supplement organic growth with acquisitions that allow us to accelerate expansion and adjust the balance of our portfolio. The Sinclair transaction in December 2015 was our 31st and largest-ever acquisition. We made no acquisitions in H1 2016.
The Sinclair business brought us brands in both the 'growth' and 'bedrock' categories, leaving the balance broadly unchanged. Since the acquisition we have been refining our strategies for individual brands, to determine which products and which markets will be the focus of our marketing investment.
Sinclair has greatly expanded our international footprint - lifting non-UK sales from about 19% of turnover to approximately 50%, giving us a market presence in some 60 additional countries and giving us critical mass in the major EU territories. This creates new opportunities to broaden the marketing and distribution of brands - although careful analysis and planning is necessary, as a successful niche brand from one country may face a very different competitive landscape in other markets. Our greater scale and footprint also bring strategic advantages. Alliance is now a credible candidate for larger and more complex acquisitions in a wider range of territories; and we are also well placed to broaden the scope of existing agreements, as indicated by yesterday's announcement to acquire the licensing and distribution rights to Diclectin in a further nine EU countries
We continue to make good progress towards UK registration for Diclectin. This well-established product, which has been a routinely used treatment in Canada for over 30 years for nausea and vomiting of pregnancy. In the United States, it was licensed by the FDA in 2013 under the name Diclegis with a Category A safety rating for drugs used during pregnancy, and has performed strongly since launch. We expect UK registration next year, enabling us to begin sales in the second half.
In the meantime, in the UK consumer health market, we are preparing to relaunch Lypsyl in the second half of this year. We have re-engineered the product and upgraded the pack design to enhance its shelf presence. The lip balm market is a crowded one, but Lypsyl still enjoys high consumer awareness - the trademark was first registered 125 years ago - and we are confident that this rejuvenated brand can reclaim a strong position.
The significantly greater scale of our business has highlighted the need for investment in a new enterprise resource planning (ERP) system to manage the enlarged portfolio and facilitate further expansion in the future. We will start this project in early 2017 once the majority of the Sinclair integration has completed.
Team
Prior to the acquisition of the Sinclair products, we had fine-tuned the leadership of the major functions within the business and also had in place Country Managers for France and Germany. This greatly facilitated our absorption of the Sinclair products business. As part of the Sinclair transaction, Dario Opiparo transferred to us as Country Manager for Italy. We promoted Steve Lobb to Head of UK & Ireland; Alex Duggan to Head of Strategy for our Global Consumer Brands; and Karim Husny to be Head of our International Business. Thus we have been able to hit the ground running in taking over the new business that effectively doubled the size of our operation. To complement the foregoing, we have appointed Luis Silva as Country Manager for Spain, Roger Lim as Regional Business Manager for Southeast Asia and we expect to appoint a new head of our enlarged China business in the near future. We thus have in place senior managers who can provide market insight and knowledge across all our geographic interests.
Charity
We continue to donate products regularly to International Health Partners, which distributes medicines to doctors in the world's neediest areas. We also support employee fundraising for local causes including Wiltshire Air Ambulance and national charities such as British Heart Foundation and The Alzheimer's Society.
Outlook
We are confident in the outlook for Alliance. We are putting together a high calibre team within an efficient organisation using class-leading systems to support further profitable transformation over the next few years. In addition we will be investing in Diclectin to provide a new platform for future growth.
In terms of the business environment, it is still too early to assess the long-term impact of the UK's decision to renegotiate its relationship with the European Union, which is reported will take considerable time. However, with operations in France, Germany, Italy and Spain, we do not expect market access to be a problem - and all our licences are held within individual member states.
For the rest of this year, our focus will be on assimilating the ex-Sinclair business and beginning to exploit the opportunities it opens up for us. We do not anticipate any further substantial acquisitions in the very near term, but remain alert to bolt-on opportunities that add value. As we move through into next year, we will be looking for the kind of product acquisitions and in-licensing deals across Europe, such as Diclectin, that might not have been open to us before. The past six months have begun the transformation of Alliance, and we are encouraged by its progress so far.
Unaudited Consolidated Income Statement
For the six months ended 30 June 2016
Unaudited Unaudited Six months Six months ended ended 30 June 30 June 2016 2015 Total Total Note GBP 000s GBP 000s ---------------------------- ---- ------------ ------------ Revenue 46,372 22,795 Cost of sales (20,392) (8,996) ---------------------------- ---- ------------ ------------ Gross profit 25,980 13,799 ---------------------------- ---- ------------ ------------ Operating expenses Administration and marketing expense (12,862) (7,232) Amortisation of intangible assets (84) (99) Share-based employee remuneration (404) (385) (13,350) (7,716) ---------------------------- ---- ------------ ------------ Operating profit 12,630 6,083 Share of joint venture profits 343 26 Operating profit including share of joint venture profits 12,973 6,109 Finance Costs Interest payable and similar charges 4 (1,660) (722) Interest income 4 54 35 Other finance income 4 375 102 (1,231) (585) ---------------------------- ---- ------------ ------------ Profit on ordinary activities before taxation 11,742 5,524 Taxation 5 (2,169) (1,152) ---------------------------- ---- ------------ ------------ Profit for the year attributable to equity shareholders 9,573 4,372 ---------------------------- ---- ------------ ------------ Earnings per share Basic (pence) 9 2.04 1.65 Diluted (pence) 9 2.02 1.64 ---------------------------- ---- ------------ ------------
Unaudited Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2016
Unaudited Unaudited Six months Six months ended ended 30 June 30 June 2016 2015 GBP 000s GBP 000s Profit for the period 9,573 4,372 Other items recognised directly in equity: Items that may be reclassified to profit or loss: Interest rate swaps - cash flow hedge (509) 80 Deferred tax on interest rate swaps 102 (16) Foreign exchange translation differences 1,129 (3) Total comprehensive income for the period 10,295 4,433 ---------------------------------- --------------- ------------
Unaudited Consolidated Balance Sheet
As at 30 June 2016
Unaudited Audited 30 June 31 December 2016 2015 Note GBP000s GBP000s ----------------------------- ---- --------- ------------ Assets Non-current assets Intangible assets 6 266,830 259,945 Property, plant and equipment 1,182 1,013 Joint Venture investment 1,808 1,465 Joint Venture receivable 1,462 1,462 Deferred tax asset 520 418 Other non-current assets 328 122 272,130 264,425 Current assets Inventories 16,216 12,910 Trade and other receivables 7 22,718 11,630 Cash and cash equivalents 3,936 3,229 42,870 27,769 Total assets 315,000 292,194 ----------------------------- ---- --------- ------------ Equity Ordinary share capital 4,684 4,682 Share premium account 108,332 108,308 Share option reserve 3,014 2,610 Reverse takeover reserve (329) (329) Other reserve (505) (98) Translation reserve 1,161 32 Retained earnings 51,659 47,237 ----------------------------- ---- --------- ------------ Total equity 168,016 162,442 Liabilities Non-current liabilities Long term financial liabilities 11 59,380 58,968 Other liabilities 114 1,496 Deferred tax liability 39,519 37,413 Derivative financial instruments 630 120 ----------------------------- ---- --------- ------------ 99,643 97,997 Current liabilities Cash and cash equivalents 2,300 31 Financial liabilities 11 21,269 15,776 Corporation tax 2,022 2,075 Trade and other payables 8 21,750 13,873 47,341 31,755 Total liabilities 146,984 129,752 Total equity and liabilities 315,000 292,194 ----------------------------- ---- --------- ------------
Unaudited Consolidated Statement of Cash Flows
For the six months ended 30 June 2016
Unaudited Unaudited Six months Six months ended ended 30 June 30 June 2016 2015 GBP 000s GBP 000s Operating activities Result for the period before tax 11,742 5,524 Interest payable 1,660 722 Interest receivable (54) (35) Other finance costs (375) (102) Depreciation of property, plant and equipment 181 136 Amortisation of intangible assets 84 99 Share-based employee remuneration 404 385 Change in inventories (3,306) (1,369) Change in investments (343) (26) Change in trade and other receivables (11,088) (768) Change in trade and other payables 7,429 (815) Tax paid (2,101) (964) Cash flows from operating activities 4,233 2,787 ------------ ------------ Investing activities Interest received 54 35 Payment of deferred consideration (4,503) - Development costs capitalised (46) (7) Purchase of property, plant and equipment (325) (248) Purchase of other intangible assets - (6,500) Purchase of other non-current assets (203) - Net cash used in investing activities (5,023) (6,720) ------------ ------------ Financing activities Interest paid and similar charges (1,353) (588) Loan issue costs (280) - Proceeds from exercise of share options 26 97 Dividend paid (1,714) (880) Receipt from borrowings 4,500 5,500 Repayment of borrowings (3,000) (1,500) Net cash used in financing activities (1,821) 2,629 ------------ ------------ Net movement in cash and cash equivalents (2,611) (1,304) Cash and cash equivalents at beginning of period 3,198 1,020 Effects of exchange rate movements 1,049 (27) Cash and cash equivalents at end of period 1,636 (311) ============ ============
Unaudited Consolidated Statement of Changes in Equity
For the six months ended 30 June 2016
Ordinary Share Share Reverse Translation Share Premium Option takeover Other Reserve Retained Total capital account reserve reserve reserve earnings equity GBP GBP GBP GBP GBP GBP GBP 000s 000s 000s 000s 000s 000s 000s GBP 000s Balance 1 January 2015 (audited) 2,641 29,388 1,995 (329) (103) - 37,188 70,780 --------------- --------- -------- -------- --------- -------- ------------------------- --------- -------- Issue of shares 3 94 - - - - - 97 Dividend payable/paid - - - - - - (2,643) (2,643) Share options charge - - 385 - - - - 385 --------------- --------- -------- -------- --------- -------- ------------------------- --------- -------- Transactions with owners 3 94 385 - - - (2,643) (2,161) --------------- --------- -------- -------- --------- -------- ------------------------- --------- -------- Profit for the period - - - - - - 4,372 4,372 Other comprehensive income Interest rate swaps - cash flow hedge - - - - 80 - - 80 Deferred tax on interest rate swaps - - - - (16) - - (16) Foreign exchange translation differences - - - - - - (3) (3) Total comprehensive income for the period - - - - 64 - 4,369 4,433 Balance 30 June 2015 (unaudited) 2,644 29,482 2,380 (329) (39) - 38,914 73,052 --------------- --------- -------- -------- --------- -------- ------------------------- --------- -------- Balance 1 January 2016 (audited) 4,682 108,308 2,610 (329) (98) 32 47,237 162,442 --------------- --------- -------- -------- --------- -------- ------------------------- --------- -------- Issue of shares 2 24 - - - - - 26 Dividend payable/paid - - - - - - (5,151) (5,151) Share options charge - - 404 - - - - 404 --------------- --------- -------- -------- --------- -------- ------------------------- --------- -------- Transactions with owners 2 24 404 - - - (5,151) (4,721) Profit for the period - - - - - - 9,573 9,573 Other comprehensive income Interest rate swaps - cash flow hedge - - - - (509) - - (509) Deferred tax on interest rate swaps - - - - 102 - - 102 Foreign exchange translation differences - - - - - 1,129 - 1,129 Total comprehensive income for the period - - - - (407) 1,129 9,573 10,295 Balance 30 June 2016 (unaudited) 4,684 108,332 3,014 (329) (505) 1,161 51,659 168,016 --------------- --------- -------- -------- --------- -------- ------------------------- --------- --------
Notes to the Half Yearly Report
For the six months ended 30 June 2016
1. Nature of operations
Alliance Pharma plc ("the company") and its subsidiaries (together "the Group") acquire, market and distribute pharmaceutical products. The company is a public limited company incorporated and domiciled in England. The address of its registered office is Avonbridge House, Bath Road, Chippenham, Wiltshire, SN15 2BB.
The company is listed on the London Stock Exchange, Alternative Investment Market (AIM).
2. General information
The information in these financial statements does not constitute statutory accounts as defined in section 434 of the Companies Act 2006 and is un-audited. These financial statements have been prepared in accordance with the AIM rules, and IAS 34 has not been adopted. A copy of the Group's statutory accounts for the period ended 31 December 2015, prepared under International Financial Reporting Standards as adopted by the European Union, has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified and did not contain statements under section 498(2) or section 498(3) of the Companies Act 2006.
This interim financial report for the six month period ended 30 June 2016 (including comparatives for the six months ended 30 June 2015) was approved by the Board of Directors on 13 September 2016.
The current rate of cash generation by the Group comfortably exceeds the capital and debt servicing needs of the business (though there cannot, of course, be absolute certainty that the rate of cash generation will be maintained). The Board remains confident that all the bank covenants will continue to be met for at least the next 12 months. The Group has a GBP5m Working Capital Facility of which GBP2.2m is undrawn at the balance sheet date and which the Board believes should comfortably satisfy the Group's working capital needs for at least the next 12 months.
3. Accounting policies
The same accounting policies and methods of computation are followed in the interim financial report as published by the company in its 31 December 2015 Annual Report. The Annual report is available on the company's website alliancepharmaceuticals.com.
4. Finance Costs Unaudited Unaudited Six months Six months ended ended 30 June 2015 30 June 2016 2015 GBP000s GBP000s ------------------------------- ----------- ------------- Interest payable and similar charges On loans and overdrafts (1,397) (536) Amortised finance issue costs (177) (52) Notional interest (86) (134) ------------------------------- ----------- ------------- (1,660) (722) Interest income 54 35 Other finance income Foreign exchange movements 375 102 375 102 ------------------------------- ----------- ------------- Finance costs - net (1,231) (585) =============================== =========== =============
Notional interest relates to the unwinding of the deferred consideration on the MacuVision acquisition.
Notes to the Half Yearly Report (continued)
For the six months ended 30 June 2016
5. Taxation
Analysis of charge in period.
Unaudited Unaudited Six months Six months ended ended 30 June 30 June 2016 2015 GBP 000s GBP 000s United Kingdom corporation tax at 20%/20.5% In respect of current period 2,046 920 Current tax 2,046 920 Deferred tax 123 232 ---------------------------- Taxation 2,169 1,152 ============================ ============= ============= 6. Intangible assets Technical know-how, trademarks and distribution Development Goodwill rights costs Total GBP 000s GBP 000s GBP 000s GBP 000s Cost At 1 January 2016 (audited) 26,035 237,324 438 263,797 Additions - - 47 47 Exchange adjustments - 6,922 - 6,922 At 30 June 2016 (unaudited) 26,035 244,246 485 270,766 ---------------------- -------- ----------------- ----------- -------- Amortisation At 1 January 2016 (audited) - 3,852 - 3,852 Amortisation
for the period - 84 - 84 At 30 June 2016 (unaudited) - 3,936 - 3,936 ---------------------- -------- ----------------- ----------- -------- Net book amount At 30 June 2016 (unaudited) 26,035 240,310 485 266,830 ---------------------- -------- ----------------- ----------- -------- At 1 January 2016 (audited) 26,035 233,472 438 259,945 ---------------------- -------- ----------------- ----------- --------
Notes to the Half Yearly Report (continued)
For the six months ended 30 June 2016
7. Trade and other receivables Unaudited Audited 30 June 31 December 2016 2015 GBP 000s GBP 000s Trade receivables 19,597 8,783 Other receivables 352 1,062 Prepayments and accrued income 1,710 525 Amounts owed by Joint Venture 1,059 1,260 22,718 11,630 =========== ============== 8. Trade and other payables Unaudited Audited 30 June 31 December 2016 2015 GBP 000s GBP 000s Trade payables 5,829 1,153 Other taxes and social security costs 1,173 905 Accruals and deferred income 6,489 5,663 Other payables 1,262 728 Deferred consideration 2,184 5,026 Amounts due to Joint Ventures 1,375 398 Dividend payable 3,438 - ----------- -------------- 21,750 13,873 =========== ==============
Notes to the Half Yearly Report (continued)
For the six months ended 30 June 2016
9. Earnings per share (EPS)
Basic EPS is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year. For diluted EPS, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares.
A reconciliation of the weighted average number of ordinary shares used in the measures is given below:
Six months Six months ended ended 30 June 30 June 2016 2015 Weighted Weighted average average number number of shares of shares 000s 000s ----------------- ----------- ----------- For basic EPS 468,297 264,216 Share options 6,329 3,097 For diluted EPS 474,626 267,313 ----------------- ----------- ----------- Six months Six months to to 30 June 30 June 2016 2015 GBP 000s GBP 000s -------------------- ----------- ----------- Earnings for basic and diluted EPS 9,573 4,372 -------------------- ----------- -----------
The resulting EPS measures are:
Six months Six months to to 30 June 30 June 2016 2015 Pence Pence Basic EPS 2.04 1.65 ------------- ----------- ----------- Diluted EPS 2.02 1.64 ------------- ----------- -----------
Notes to the Half Yearly Report (continued)
For the six months ended 30 June 2016
10. Dividends Six months Six months ended ended 30 June 2016 30 June 2015 GBP Pence/share 000s Pence/share GBP000s Amounts recognised as distributions to owners in the year Interim dividend for the prior financial year 0.366 1,714 0.333 880 0.734 3,438 -------------------- Final dividend for the prior financial year 0.667 1,763 ------------------------------ ----------- ----- -------------------- ----- 5,152 2,643 ------------------------------ ----------- ----- -------------------- -----
The final dividend for the prior financial year was approved by the Board of Directors on 31 March 2016 and subsequently by the shareholders at the Annual General Meeting on 25 May 2016. This dividend has been included as a liability as at 30 June 2016, in accordance with IAS 10 Events After the Balance Sheet Date, and was paid on 13 July 2016 to shareholders who were on the register of members at 17 June 2016.
11. Borrowings
Movements in borrowings are analysed as follows:
Six months ended 30 June 2016 GBP 000s At 1 January 2016 (audited) 74,744 ------------------------------------- ------------------------------ Repayment of borrowings (3,000) Revolving Credit Facility drawdown 4,500 Amortisation of prepaid arrangement fees 176 Additional prepaid arrangement fee (280) Exchange movements 4,509 ------------------------------------- ------------------------------ At 30 June 2016 (unaudited) 80,649 ===================================== ==============================
The carrying amount of the group's borrowings are denominated in the following currencies:
Unaudited Audited 30 June 31 December 2016 2015 GBP 000s GBP 000s GBP 38,581 37,185 USD 27,068 24,324 EUR 15,000 13,235 80,649 74,744 =========== ==============
This information is provided by RNS
The company news service from the London Stock Exchange
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