Alliance Pharma PLC (LON:APH) said it was on track to hit full-year expectations as it delivered a solid first-half performance, underpinned by its “star” international brands.
Strong cash generation from the business has allowed it “de-lever” over the six months ending June 30.
WATCH: Alliance Pharma delivers 'solid' first-half performance with strong cashflow
This, combined with a new banking facility, will allow the firm to make “targeted acquisitions” over the next few years, chief executive Peter Butterfield told investors.
Revenues for the period were £70.3mln, up 28% on a constant currency basis, or an organic 10% if the impact of recent purchases was stripped out.
Underlying earnings (EBITDA) were £18.8mln, up 34%, while net debt fell by £11.4mln in the six months from the end of December to £74.1mln. The interim dividend rises 10% to 0.536p.
The Asia-Pacific region was also a strong performer, while the local brands performed in line with expectations, Alliance said.
The Nizoral medicated shampoo franchise performed “slightly below expectations” in the first half.
However, the company added: “Integration and transition activities are progressing well and, as we start to bring the product licences under our control, we will be able to manage the associated commercial relationships much more proactively going forwards.”
Turning to current trading, Alliance said the second half had started well, leaving it on track to hit revenue and profit targets.
“Our strong underlying growth and cash generation, coupled with the enhanced banking facilities, mean we are well positioned to pursue future growth opportunities,” added CEO Butterfield.