(Alliance News) - Clinigen Group PLC said Thursday annual profit dropped sharply on higher amortisation costs on acquired intangibles and acquisition expenses, despite strong revenue growth.
For the financial year to the end of June, Clinigen reported pretax profit of GBP12.3 million, down 66% from GBP35.9 million the year before.
Profit performance was hurt by higher amortisation costs from acquired intangibles and products at GBP37.8 million from GBP22.1 million, as well as a one-off liability of GBP21.4 million, coming from the revised fair value of the contingent consideration for packaging and warehousing services provider CSM Parent Inc.
Adjusted earnings before interest, taxes, depreciation and amortisation - the company's preferred profit measure - increased by 33% to GBP100.8 million from GBP76.0 million.
Revenue for the period increased by 20% to GBP456.9 million from GBP381.2 million, driven by growth in its Commercial Medicines and Clinical Services segments, more than offsetting a small decline in Unlicensed Medicines.
Clinigen declared a final dividend of 4.75 pence per share, bringing the total payout to 6.7p, up 20% from 5.6p the year before.
Looking ahead, Clinigen expects adjusted gross profit for its next financial year to increase at the upper half of its guidance at 5% to 10%, driven by continued growth in Clinical Services and developed assets in Commercial Medicines.
"We have grown through a combination of transformative acquisitions and organic growth to create an international platform which is now taking shape and supporting synergistic growth. This year's performance reflects the results of this strategy," said Chief Executive Officer Shaun Chilton.
"The high points of the year were the acquisitions of CSM and the US and Rest of World rights to Proleukin. Both acquisitions have already had a positive financial and operational impact in the short term, exceeding our expectations so far - and are expected to provide continued positive benefit in the longer term," Chilton added.
Shares in Clinigen were up 1.1% at 892.98 pence on Thursday in London.
