17th Feb 2015 09:20
LONDON (Alliance News) - Sinclair IS Pharam PLC Tuesday said its pretax loss more than quadrupled in the first half of the year, as a surge in finance costs more than offset revenue growth of almost 31% in the period.
The speciality pharmaceuticals company reported a pretax loss of GBP10.8 million for the six months to end-December, compared to a loss of only GBP2.5 million the year before, due to a GBP7.7 million increase in finance charges from recent acquisitions.
Adjusted earnings before interest, tax, depreciation, amortisation, share-based payments and long-term incentive schemes and exceptional items increased to GBP3.3 million from GBP1.1 million.
Revenue in the first-half rose almost 31% to GBP32.0 million from GBP24.5 million driven by contributions from a group of recently acquired dermal filler brands - Silhouette, Perfectha and Ellansé - which it acquired during 2014. The company said that if currency rates had stayed the same, revenue growth would have been 37%.
Sinclair said its Aesthetic brands performed strongly in the period, representing 43% of revenue in the period.
"The first half saw strong growth in aesthetic sales in Europe which were partly offset by a weaker euro and political difficulties in Russia. However accelerating growth towards the end of the period, in-market demand, and demand for training give us confidence in a strong second half performance," said Chief Executive Chris Spooner in a statement.
Spooner said the group also benefits from good visibility on orders from international partners, which provides additional confidence in the outlook for a strong second half, and highlighted geographical expansion and anticipated product approvals as further attractive growth opportunities in the medium term.
"Growth trends in aesthetics combined with manufacturing efficiency improvements point to a sharp uptick in second-half gross margins, while the benefit of continued operating leverage is expected to maintain a continued improvement in EBITDA margin trends," said Spooner.
Sinclair IS Pharma shares were trading 4.4% lower at 34.67 pence Tuesday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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