LONDON (Alliance News) - Healthcare company BTG PLC said Tuesday that its first half profit had been hit by legal costs and foreign exchange movements but its revenue grew strongly.
FTSE 250-listed BTG reported a pretax profit of GBP11.1 million for the six months to September 30, down sharply from GBP52.9 million in the prior financial year. However, the company said that, stripping out one-time costs, its adjusted operating profit for the period was GBP78.8 million, up from GBP62.9 million year-on-year.
BTG's revenue for the first half was GBP285.4 million, increased by 24% from GBP229.6 million a year prior.
The company noted that its reported profit was hit by the GBP28.0 million settlement it reached with the US government in relation to an investigation into the historic marketing of embolic device LC Bead.
BTG also recorded a GBP18.0 million loss on its net financial expenses, having booked a GBP17.0 million loss on foreign exchange forward contracts due to the weakening of sterling during the period.
However, the company said that currency movements are likely to boost its revenue growth in the second half, and upgraded its revenue guidance for the financial year to between GBP535 million and GBP565 million, from between GBP510 million and GBP540 million.
"The business has performed well during the first half, and the outlook for the full year is strong. We have the capabilities and financial strength to take advantage of the increasing opportunities we are seeing to expand our Interventional Medicine business. By accelerating our growth strategy through reinvestment of our cash flows to maximise the value of and expand the current portfolio, we can build leadership positions in selected areas of interventional medicine and thereby create sustainable value for shareholders," said Louise Makin, chief executive officer.
Shares in BTG were down 3.5% at 623.50 pence early Tuesday.
By Adam Clark; adamclark@alliancenews.com
Copyright 2016 Alliance News Limited. All Rights Reserved.
