Alliance Pharma plc (LON:APH) has said its overall trading in the first half has been in line with the board's expectations, with sales over the period showing a solid increase.
In a pre-close trading update ahead of its interim results - scheduled for release on September 13 - the specialty pharmaceutical company said it performed well in the first half with sales for the period up 8% at £50.3mln, against £46.4mln at the same stage in 2016
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The AIM-listed firm said: “Our international growth brands delivered a solid performance in the first half. Kelo-Cote, our scar reduction product, achieved a 52% increase in sales at £6.2mlm (2016: £4.1mln).
“MacuShield, for age-related macular degeneration (AMD), also performed strongly, with sales up 67% at £3.4mln (2016: £2.0mln). Overall, our other brands performed in line with expectations.”
Alliance Pharma said currency movements benefited sales in the period by approximately £2.6mln due to the weakening of sterling, although it added that the impact on operating profits will be much smaller due to the increases in cost of goods and operating costs.
Underlying free cash-flow strong
The firm said its underlying free cash flow in the first half is expected to be approximately £11.1mln, up from £2.1mln a year earlier, in-line with the free cash flow generated in the second half of 2016.
It added that net debt decreased to approximately £63.4mln as at 30 June 2017, from £76.1mln as at 31 December 2016: £76.1m, driven primarily by the strong underlying cash generation and a £4mln receipt from Sinclair Pharma following the settlement announced in March 2017.
The group pointed out that, as previously indicated, it continues to expect a decision in the current quarter on the UK regulatory approval of Diclectin, a potentially major product for the treatment of nausea and vomiting of pregnancy.