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LONDON (Alliance News) - Specialty pharmaceuticals firm Alliance Pharma PLC hiked its dividend Wednesday after underlying interim profit improved on the back of rising revenue, despite reported profit dropping on one-off costs.
For the six months ended June, pretax profit narrowed 36% to GBP10.9 million from GBP16.9 million the year prior. This was despite revenue rising 10% to GBP54.5 million from GBP49.4 million the year before.
Profit performance was hurt by GBP1.3 million in one off-costs during the period, primarily due to an impairment of the assets held by a infant milk formula joint venture Synthasia International Co Ltd. The year prior, Alliance Pharma reported a GBP5.0 million one-off gain associated with compensation received.
On an underlying basis - excluding exceptional costs - profit rose 1.7% to GBP12.1 million from GBP11.9 million the year prior.
Alliance proposed a 0.487 pence per share interim dividend, up 9.9% from 0.443p the year prior.
"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," Alliance Chairman David Cook said.
Nausea and vomiting pregnancy drug Xonvea was approved in the UK, with a launch expected into the fourth quarter of 2018. The approval also "paves the way" for further approval in the EU.
"The second half of the year has started well," Cook added. "Our good underlying cash generation, coupled with the opportunities from our enlarged portfolio of International Star brands, mean we are well positioned to pursue future growth both organically and through acquisitions in line with our strategic plan."
Shares in Alliance were 3.7% lower at 87.60 pence on Wednesday.
