(Alliance News) - Clinigen Group PLC on Tuesday said it expects a healthy increase in revenue for the year that saw the business reorganise into two separate divisions and the divestment of its compounding business.
For the year ended June 30, Clinigen expects revenue from continuing operations to increase 12% year-on-year to GBP455 million.
Adjusted earnings before interest, tax, depreciation and amortisation are expected to decline 10% to GBP116 million, in line with the company's guidance provided in June.
As part of a major company restructure aimed at cutting costs, Clinigen split into two Products and Services divisions and sold its UK compounding business to pharmaceutical wholesaler Target Healthcare Ltd for GBP7.8 million in June. Clinigen is continuing a further review of its cost base to help reduce losses.
"Like many other companies operating in the clinical trial and hospital-based products area, Clinigen this year has seen an impact on demand from Covid-19," Chief Executive Shaun Chilton commented.
"Nevertheless, we anticipate a return to double-digit growth in the next financial year driven by the strength of our underlying business and activity levels across the group. We are seeing significant activity in Services, with strong business wins across the division in both Covid and non-Covid related areas that will fuel growth over the coming year."
Looking ahead, Clinigen said it expects double digit earnings before interest, tax, depreciation and amortisation growth in financial year 2022 after seeing evidence of "strong momentum in its Services business" and progress in its Products division.
Shares in Clinigen were trading flat at 625.00 pence on Tuesday in London.
Clinigen will publish its final results on September 16.
By Will Paige; willpaige@alliancenews.com
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