(Alliance News) - Clinigen Group PLC on Thursday reported rising revenue and profit but reduced earnings guidance for its new financial year as Erwinase sales drop.
Shares in the company were down 8.6% at 640.00 pence each in London on Thursday at midday.
The Staffordshire, England-based pharmaceuticals and services provider generated revenue of GBP523.6 million in the year ended June 30, up 12% from GBP466.7 million.
Pretax profit more than doubled in financial 2021, reaching to GBP51.8 million from GBP23.2 million a year ago.
Prior to the pandemic, the company reported pretax profit of GBP12.3 million on revenue of GBP456.9 million in financial 2019.
Clinigen proposed a final dividend of 5.46p per share, in keeping with the previous year. This results in a full-year dividend of 7.61p, also consistent with the year prior.
"In [financial 2022] we expect strong cash generation, driven by the strength of our underlying business and robust activity levels across the group, and remain focused on debt paydown," the company said.
Despite its positive expectations, Clinigen lowered its earnings before interest, tax, depreciation and amortisation growth guidance for the new financial year.
It now expects earnings before interest, tax, depreciation and amortisation growth between 5% and 10%, in financial 2022. Previously the company said it expected to double-digit earnings growth in the full year.
The company said its reduced earnings predictions are the result of lower-than-expected sales of its Erwinase cancer treatment.
"The long-term fundamentals of the business and its end-markets remain strong despite the near-term uncertainty created by Covid-19, and we are confident that we will deliver long-term value," the company added.
By Scarlett Butler; scarlettbutler@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
