22nd Sep 2015 07:04
LONDON (Alliance News) - Clinigen Group PLC Tuesday said it will acquire Australian pharmaceutical and medical technology business Link Healthcare Private Ltd for an initial GBP44.5 million, as it reported a drop in pretax profit for its recently ended financial year due to one-off costs.
The speciality pharmaceutical company said it will pay up to GBP100.0 million in total for Link Healthcare based on the achievement of milestones. It said the acquisition will significant strengthen its operations in Asia, Africa and Australasia.
Clinigen will pay the initial consideration in GBP22.3 million in cash, funded from its existing debt facilities, and the allotment of 3.1 million new Clinigen shares. It expects the acquisition to add to earnings immediately.
For the year to end-June Clinigen reported a pretax profit of GBP8.4 million, down from GBP21.3 million a year before, as a rise in revenue to GBP184.4 million from GBP126.6 million was offset by higher cost of sales, administrative expenses, and exceptional costs of GBP17.8 million.
These exceptional costs included GBP5.7 million in acquisition costs, restructuring costs following its acquisition of Idis Group, and impairment and amortisation charges.
Clinigen proposed a final dividend of 2.3 pence, taking its total dividend for the year to 3.4 pence, up from 3.1 pence a year before.
"Looking forward, the integration of Idis is progressing well and trading is in line with the board's expectations at this early stage of the year. The Board remains confident about the outlook for the full year," said Chief Executive Officer Peter George in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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