Pharmaceutical firm says profits for year in line with expectations

Wiltshire pharmaceutical firm Alliance Pharma has announced its profits for the full year will be in line with expectations,

The company said a strong second half performance drove record sales for the year and further underlying profit expansion.

With continued investment planned to support new product development and increased marketing, the group said it is well positioned for growth over the medium term.

There was a non-cash impairments of £79.3m due to lowered future cash flow expectations and higher cost of capital,

Underlying profit before tax increased four per cent to £31.5m  and reported loss before tax was £48.8m.

Th company said dividend remains paused while the board considers a new dividend policy with cash prioritised for reinvestment in the business to drive growth.

Camillo Pane, Chair of Alliance, said: “I am delighted to be joining Alliance at such an important time for the company. Alliance has a strong global footprint in several fast growth Consumer Healthcare categories. Further to the announcement that Peter Butterfield will be leaving Alliance, I am looking forward to working with our new chief ewxecutive, Nick Sedgwick, and, together with the wider management team, I am focused on ensuring we deliver shareholder value.”

Andrew Franklin, Chief Financial Officer of Alliance, said: “Whilst the audit delay has been unsatisfactory, it has allowed us to implement a more robust intangible valuation review process. Despite the non-cash impairments our portfolio continues to provide a solid platform from which to grow our Consumer Healthcare brands and generate strong cash flow. In 2023, we increased marketing investment, launching award winning advertising campaigns for Kelo-Cote and MacuShield to accelerate organic sales growth whilst bringing new products to market. Our revenues through ecommerce are building strongly, as we strengthen our network of specialist partners and internal capabilities and enter new geographies.

“We remain confident in our medium to long-term performance as we focus our resources on those market segments in which we already have a strong presence and expertise in order to drive solid organic revenue growth above that of the broader Consumer Healthcare market.”