Alliance Pharma reports 'strong' 2021 performance

Alliance Pharma reported a “strong” operational and financial performance in its 2021 results on Tuesday, with underlying revenue up 23% on a see-through basis to £169.6m.

The AIM-traded firm said its gross profit was ahead an underlying 32% for the 12 months ended 31 December, to £109.5m, while reported profit before tax was 39% higher at £18.2m.

Basic underlying earnings per share were up 25% to 6.39p, while basic reported earnings were 9% lower year-on-year at 1.37p per share.

The company recorded a 12% fall in free cash flow to £30.2m, while cash from operations was 3% weaker at £44.9m.

Net debt at year-end totalled £87m, narrowing from £109.4m at the end of the 2020 financial year.

Alliance proposed a 5% increase in the total dividend for the year, to 1.69p per share.

“I'm delighted with the strong operational and financial performance of the group in 2021,” said chief executive officer Peter Butterfield.

“Our consumer healthcare business continued to perform well, with Kelo-cote enjoying another excellent year as we capitalised on the opportunities identified for the brand.

“Group double-digit organic revenue growth was complemented by the acquisition of Amberen which, coupled with solid cost control, resulted in strong cash generation allowing us to reduce both net debt and leverage.”

Butterfield said 2022 had an “encouraging” start.

“We remain confident in our ability to further capitalise on identified organic growth opportunities within the business and to deliver financial performance in line with market expectations.

“In addition, we continue to evaluate opportunities to selectively add complementary acquisitions to our consumer healthcare platform, taking advantage of our strong cash flow and reduced leverage.”

At 1157 GMT, shares in Alliance Pharma were up 0.9% at 112.4p.