Alliance Pharma Raises Dividend As Profit And Revenue Rise In 2017

LONDON (Alliance News) - Alliance Pharma PLC said on Tuesday that revenue and profit rose in 2017, with good growth across its markets, lifting its dividend as a result.

Revenue during 2017 rose 6% to GBP103.3 million, from GBP97.5 million the year before, as pretax profit rose 28% to GBP28.4 million from GBP22.2 million in 2016.

The gross margin over 2017 came in at 57.1%, up from 56.3% in 2016.

Sales in the group's largest market - the UK & Ireland - grew to GBP56.3 million, an increase of 4% on a like-for-like basis, driven primarily by MacuShield. Sales in its direct European territories - France, Germany, Switzerland, Austria, Italy, Spain and Portugal - were up 2% to GBP20.6 million.

The International business grew by 13% to GBP26.4 million, with Asia Pacific the "primary engine of growth".

The company proposed a financial dividend of 0.888p per share, up from last year's 0.807p, bringing its total payout for the year to 1.221p, up 10% on 2016.

"Following a transformational year in 2016 in which the Sinclair Healthcare Products business was integrated into the Group, the business has delivered strongly in 2017. The strength of cash generation, coupled with the opportunities from our International Star brands, means we are well positioned to pursue growth both organically and through further acquisitions in 2018," said Chairman David Cook.

"The year has started well, including the establishment of a US affiliate, and we look forward to leveraging our expanded footprint," Cook added.

Shares in Alliance Pharma were up 4.0% at 69.25 pence on Tuesday.