Alliance Pharma overseas transformation continues

As Alliance Pharma's overseas transformation continued throughout the first half of its trading year, the AIM-listed group managed to record some growth in both revenues and profits.

Revenues grew 10% year-on-year to £54.5m, leading to a 12% increase in gross profits to £32.4m and a 1% improvement in EBITDA to £13.8m. However, reported basic earnings per share tumbled 35% to to 1.85p.

Free cash flow contracted 9% to £10.1m and net debt grew 19% during the half to £86.3m.

Alliance said its acquisition of Nizoral, announced in June 2018, significantly enhanced its presence in the Asia Pacific region, providing both increased scale and the opportunity to further develop its business across China, Japan and Thailand.

Also during the period, the group established a new US affiliate office to manage the sales of Vamousse head lice treatment in its largest market and the Medicines & Healthcare Products Regulatory Agency approved Alliance's UK marketing authorisation application for Xonvea, its prescription product for the treatment of nausea and vomiting in pregnancy.

Chairman David Cook said: "The first half of 2018 has seen continued transformation of the Alliance business, with the creation of an Alliance office in the US, the acquisition of Nizoral bringing increased scale and opportunities for us in the Asia Pacific region and the recent UK approval of Xonvea, offering additional opportunities for growth in the medium term."

As of 0925 BST, Alliance shares had dipped 2.64% to 88.60p.