For the first half ended 30 June, revenue is expected to be £70.3mln, up 29% on the same period last year (H1 18: £54.5mln). Excluding acquisitions, revenue was up 10% in the period.
Within that, sales of Alliance International Star Brands almost doubled to £30.9mln (H1 18: £17.3mln) due to the additions of anti-dandruff shampoo Nizoral and Xonvea morning sickness pills.
Kelo-Cote also enjoyed a strong first half, with sales climbing by 20% to £13.1mln as its popularity in the Asia Pacific continues to grow.
Sales of Alliance’s Local Brands, home to around 90 products, increased by 6% versus last year to £39.4mln (H1 18: £37.2mln).
Underlying free cash flow was also “strong” at £14.5mln (H1 18: £10.1mln), which allowed bosses to trim net debt by almost £12mln during the first half to £74.1mln.
As a result, leverage – which is calculated by adjusted net debt divided by underlying earnings – fell to 1.95 times, and it is expected to come down further as the year progresses.
Alliance also announced it has agreed a new £165mln credit facility with its lenders together with a £50mln ‘accordion’ should more money be required.
The new facility replaces the old one, which ran through until December 2020, and is available until July 2023.
“We have seen continued momentum in our business during the first half of 2019, with sales up 29% compared with the previous year and growth coming largely from our consumer healthcare products, which now account for over half of our portfolio,” said chief executive Peter Butterfield.
“As we continue to deliver good organic growth and strong cashflows, the business will continue to de-lever quickly over the course of the next six months leaving us well positioned to drive future growth opportunities.”
Alliance expects to announce its interim results for the six months ended 30 June 2019 on 24 September 2019.