BTG posts drop in full-year profit

Specialist healthcare company BTG reported a drop in full-year pre-tax profit on Tuesday as it said translation benefits from a weaker sterling were offset by hedging losses on forward contracts.

For the year to the end of March, the company made a pre-tax profit of £31.6m versus £57.5m the year before, despite revenue rising to £570.5m from £447.5m.

Meanwhile, adjusted operating profit rose to £129.6m from £93m and product sales were up 37% to £387.3m. Licensing revenues grew 12% to £183.2m and BTG said Interventional Medicine is now the largest and fastest growing revenue contributor, delivering 15% organic growth at constant exchange rates.

Chief executive officer Louise Makin said: "We have delivered strong double-digit product sales growth and generated significant cash flows, enabling us to invest in product innovation, clinical data, geographic expansion and acquisitions. We have a broad portfolio and a scalable platform, and there is momentum across the business. With the financial strength to continue our investment plans, we are well positioned to capture further value in the growing Interventional Medicine space and to deliver sustained business growth."

The group said it expects to deliver continued double-digit product sales growth beyond 2017/18, driven by a strong Interventional Medicine performance, aided by the anticipated opportunity from Varithena and PneumRx. In addition, it expects a sustained performance in Specialty Pharmaceuticals to underpin product sales over the medium term.

Jefferies said operating profit was light, while the FY2018 growth outlook is "light and taxing".

At 1600 BST, the shares were down 6.7% to 673.50p.