Last checked at 23 Mar 2020 15:52
| 23 March 2020 |
ALLIANCE PHARMA PLC
("Alliance" or the "Group")
FCA moratorium on publication of results
Alliance Pharma plc (AIM: APH), the international healthcare group, announces that, further to the request by the Financial Conduct Authority ("FCA") that listed companies postpone publication of their preliminary results, the Group will delay announcement of its audited preliminary results for the year ended 31 December 2019, which were scheduled for release tomorrow, 24 March 2020.
In a statement issued at the weekend and announced on RNS this morning, the FCA requested that listed companies "observe a moratorium on the publication of preliminary financial statements for at least two weeks" owing to the impact of the Covid-19 coronavirus on companies and auditors.
Alliance confirms that the audit of its financial results for the year ended 31 December 2019 was substantially complete and that the Group intended to announce its audited results tomorrow, as planned. However, the Group's auditor, KPMG, has been strongly advised by its regulator, the Financial Reporting Council, to withhold opining on all audits at the present time. The audited results will be announced once the situation becomes clearer and the FCA's moratorium has been lifted.
Alliance confirms that the financial results for the year ended 31 December 2019 are in line with the Group's Full Year Trading Update issued on 22 January 2020.
Covid-19 Update
Given the fast-moving nature of the pandemic, the impact of the Covid-19 coronavirus on the Group's trading in the current year is difficult to forecast but we anticipate that trading will be weighted to the second half.
In the UK and mainland Europe, our staff are now working from home in line with local government guidelines. Our investment in IT has ensured a high level of connectivity throughout the world which means we can operate remotely with minimal disruption to the business. In Asia, we are pleased that our Shanghai office has now fully reopened.
Our supply chain is holding up well and we do not anticipate any material supply impact in the current year. For those products we sell directly, we hold typically a minimum of 3 months of inventory and, in some cases more, depending on the level of clinical need. Most of our international sales are generated via distributors, who typically hold 3-6 months of inventory.
Although the Covid-19 situation in China and across Asia Pacific looks to be improving, we anticipate that demand in the Asia Pacific region, including China, will be lower in the first half of 2020 and then, depending on the speed with which this region returns to normality, begin to recover in H2. Sales in our UK and mainland Europe businesses are expected to be impacted, but to a lesser extent, due to the higher proportion of prescription medicines sold in this region.
We have conducted a number of stress tests on potential trading scenarios in the year ahead and remain confident of the financial strength and resilience of the Group.
We will seek to ensure that the notification of the date for the audited preliminary results for the year ended 31 December 2019, will be issued as soon as practicable.
For further information:
Alliance Pharma plc | + 44 (0)1249 466966 |
Peter Butterfield, Chief Executive Officer |
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Andrew Franklin, Chief Financial Officer |
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www.alliancepharma.co.uk |
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Buchanan | + 44 (0)20 7466 5000 |
Mark Court / Hannah Ratcliff |
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alliancepharma@buchanan.uk.com
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Numis Securities Limited | + 44 (0)20 7260 1000 |
Nominated Adviser: Freddie Barnfield / Huw Jeremy |
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Corporate Broking: James Black |
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Investec Bank plc | + 44 (0)20 7597 5970 |
Corporate Finance: Daniel Adams / Ed Thomas |
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Corporate Broking: Patrick Robb / Tejas Padalkar |
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About Alliance
Alliance Pharma plc (AIM: APH) is an international healthcare group, headquartered in the UK with subsidiaries in Europe, the Far East and the US and wide international reach through an extensive network of distributors, generating revenues in more than 100 countries.
We currently own or license the rights to around 90 consumer healthcare products and pharmaceuticals, which are managed on a portfolio basis according to their growth potential. Promotional investment is focused on a small number of brands with significant international or multi-territory reach. The remainder of the portfolio comprises products which are sold in a limited number of local markets and require little or no promotional investment.
Our strategy allows us to deliver good organic growth and to enhance our growth rate through carefully selected acquisitions.
For more information on Alliance, please visit our website: www.alliancepharmaceuticals.com