Alliance PharmaceuticalsTue 18:33
...from last year...
Company overview:
The company we cover today is a very particular business, as it brings expertise to the marketing and regulatory management of products, ensuring it reaches a wide range of people. Alliance is a UK-based specialty pharmaceutical company. They are neither a manufacturer, nor a proper pharmaceuticals developer. This allows them to run an asset-light business (without all of the warehousing and logistics) and keep their focus on the areas of the business where they are experts. A simpler way to describe them would be a retailer for healthcare products. Acquisitions are a rare sight, with one done last year (Biogix) and the previous in 2012, resulting in a low goodwill figure.
Fundamentals look healthy. Revenue CAGR is currently at 21.8%. The one-off drop in EPS from last year is mainly due to non-cash impairment and amortisation charges and the acquisition costs relating to Biogix transaction. This also pushed the ROCE down to 3.41%, but the ratio is rising by a CAGR of 7.99%. Free cash flow was strong supported by favourable movements in working capital and the total dividend was significantly ahead of 2019.
The latest report from the company consists the Interim results for 2021. “The group traded strongly” with an increasing revenue from prescription medicines and great boost from the acquisition of Amberen. They post their sales as see-through meaning they include sales from products, as if they had been invoiced by Alliance. The good news is that there is growth of 28% on a constant currency basis to £80.9m and the like-for-like revenue (without Amberen) is 12% ahead on constant currency (statutory revenue has increased by 27% to £78.6m). Gross profit margin is increased and underlying PBT is 24% above 2020 H1, at £20.1m. there is leverage, but it has been reduced during the period to 2.21, and expectations are for it to reach 2.0 by the end of the year. Current outlook is for the company to meet the analysts’ expectations, but with another solid growth figure in the H2 they could go above it – watch out for trading updates.
Short analysis (Interim, and we use statutory figures for IS ratios):
Cash decreased slightly
Net debt stays at 105.4m
CA/CL = 2.20
Cash ratio = 0.71...
...from WealthOracleAM
https://wealthoracle.co.uk/detailed-result-full/APH/153