Alliance Pharma Share Price (APH)

...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

BXP worth another look excellent value at today's price. 90p, IMHO..
APH is for me a bit under a cloud, as we do not know the outcome of the ongoing dispute over the large fine.

APH specializes in niche medicines, yet parts with a nich medicine to an operator who bumps up the price of that medicine
manyfold... Was APH unaware of the mal-intent of the operator?

Winnings 1, Rylander. Its the CMA who investigate and they are also the ones that make to decision regards culpability. When it goes to the Appeal Tribunal that is made up of legal representatives i.e. Law Judges and Business experts. If what APH are saying is the truth I would find it very unusual for them to be found to be in the wrong.

Ezhik, the truth will be it's our dividends will pay the fine, not those who apparently broke the law.