viewAlliance Pharma PLC

Alliance Pharma chips away at debt as revenues soar in first half

Net debt was reduced by almost £12mln in the first six months of the year, as sales of Alliance’s Kelo-Cote scar treatment and other international brands jumped

kelo-cote scar
The complete set of first-half results are due out towards the end of September

Revenues at Alliance Pharma PLC (LON:APH) soared by a third in the opening six months of 2019, with growth underpinned by strong demand in Asia for its Kelo-Cote scar treatments.

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.

READ: Alliance provides confident assessment of prospects

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).

Debts cut

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.

Quick facts: Alliance Pharma PLC

Price: 77.0649 GBX

Market: AIM
Market Cap: £405.46 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Alliance Pharma PLC named herein, including the promotion by the Company of Alliance Pharma PLC in any Content on the Site, the Company...



Grant of Options to Directors

5 days, 23 hours ago

Notification of Major Holdings

6 days, 23 hours ago

Director's Dealing

1 week ago

Total Voting Rights

1 week, 2 days ago

Total Voting Rights

on 11/05/2019

Director's Dealing

on 10/09/2019

Total Voting Rights

on 10/03/2019

2 min read