Alliance Pharma PLC (LON:APH) has revealed that its 2019 underlying profit was in line with expectations after turnover grew 16% last year, while strong cash generation saw a significant fall in the company’s net debt.
The group, which has a number of international star medicine brands as well as important regional product lines, weighed in with what it described as “see-through revenues” of £144.3mln.
The stand-out performer, growing 38%, was scar reduction treatment Kelo-cote.
However, Macushield (a supplement for eye health) and Vamousse (hair lice) were also up 18% and 14% respectively in the 12 months to December 31.
Nizoral, the medicated shampoo business acquired in June 2018, performed in line with expectations, generating see-through revenues of £20.2mln. The sales of local brands nudged up £600,000 to £78.4mln.
Free cash flow, meanwhile, was described as “strong” at £29.1mln. It allowed the company to reduce its net debt from £74.1mln at the end of June and £85.8mln just over a year ago to £59.2mln at end 2019. Debt to underlying earnings (EBITDA) is now a more conservative 1.5 times.
According to chief executive Peter Butterfield the reduction of liabilities frees up funds for acquisitions, or as he put it “leaves us well placed to selectively add to our portfolio with a continued focus on augmenting our consumer brands in international markets”.