"We are well positioned to pursue growth both organically and through further acquisitions in 2018,” said chairman David Cook () hiked its full year dividend by 10% as strong demand for its key brands boosted earnings. The pharmaceutical company delivered pre-tax profit of £28.4mln in the year through December 2017, up 28% on a reported basis. Underlying pre-tax profit rose 8% to £24mln. Underlying earnings (EBITDA) edged up 3% to £26.9mln and revenue came to £103.3mln, up 6% on a reported basis or 3% at constant currency. Earnings per share jumped 58% to 6.1p, including the benefit of US tax cuts and a £4mln compensation payment from in connection with the material reduction of business in stretch mark treatment cream product, Kelo-Stretch. Alliance bought Sinclair’s healthcare products business, which included Kelo-Stretch, in December 2015. Kelo-Stretch had been identified as a ‘key growth brand’ but sales in 2016 fell short of expectations and had negatively impacted profitability. Sinclair agreed to pay a settlement of £5.0mln in compensation to Alliance with £4mln paid in April 2017 and the rest due before June 30, 2018. Excluding items, adjusted underlying earnings per share rose by 10% to 4.06p. Growth was driven by its so-called brands, including scar-reduction treatment Kelo-cote and eye macular pigment supplement Macushield. The company cut net debt to £72.3mln from £76.1mln the previous year despite spending £16mln on acquisitions including head lice treatment Vamousse and Ametop anaesthetic creams and gels in December. Free cash flow increased 67% to £21.7mln, buoyed by strong trading and the stabilisation of working capital after a build-up in 2016 following the Sinclair acquisition. Alliance raised its full year dividend to 1.3331p per share from 1.210p the previous year as it issued a confident outlook for the year ahead. "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,” said chairman David Cook. “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. Cook said the new financial year “has started well”, including the establishment of a new affiliate in the US, the world’s largest healthcare market. Cook took over as chairman from Andrew Smith in early March as part of a reshuffle of the board. Peter Butterfield, who has been chief operating officer since June 2017, will take over as chief executive from John Dawson in May 2018. Dawson will become a non-executive director.
Alliance Pharma has reported a 28% increase in pre-tax profit of £ 28.4m ($40m) for the year ending December 2017, while revenue rose 6% to £103.3m. The company said it had achieved its target of increasing annual sales by 10% over three years and that it was on track to achieve an operating margin of 12% this year.