STRONG PERFORMANCE WITH ADJUSTED EPS UP 25%

Clinigen Group plc (AIM: CLIN, ‘Clinigen’ or ‘the Group’), the global pharmaceuticals and services group, has today published its full year results for the year ended 30 June 2017.

FINANCIAL SUMMARY

Year ended 30 June  2017 £m 2016 £m Growth 
Revenue   302.3  339.9  (11)% 
Adjusted gross profit  122.8  100.7  22% 
Adjusted EBITDA  65.1  53.7  21% 
Cash generated from operations  54.7  49.4  11% 
Reported earnings per share  3.3p  11.9p  (72)% 
Adjusted earnings per share  41.8p  33.4p  25% 
Dividend per share  5.0p  4.0p  25% 
Net debt  35.0  68.1   

Note: The Group results on an adjusted basis exclude amortisation and non-underlying costs (see note 2 and 3 of this financial information). Adjusted EBITDA is also adjusted to include the Group’s share of EBITDA from its joint venture. Adjusted EBITDA and adjusted EPS metrics are now shown after share-based payments of £2.5m (2016: £2.3m). Prior year has been restated accordingly.

HIGHLIGHTS

  • Adjusted gross profit up 22% - driven by organic growth, full year’s contribution from Link Healthcare (‘Link’) and currency benefits
  • Adjusted EPS up 25% to 41.8p (2016: 33.4p)
  • Strong cash flow performance with cash generated from operations of £54.7m (2016: £49.4m)
  • Net debt substantially decreased by £33.1m to £35.0m (2016: £68.1m)
  • Full year dividend increased 25% to 5.0p (2016: 4.0p)
  • Strong growth across all operations
  • Outstanding performance in Africa and Asia Pacific
  • Dexrazoxane portfolio revitalisation significantly enhanced by EC approval to update product information for Cardioxane, and launch of Totect in US
  • New simplified reporting structure comprising Clinical Trial Services (‘CTS’), Unlicensed Medicines and Commercial Medicines

POST PERIOD END

  • Proposed acquisition of Quantum Pharma plc (‘Quantum’) for £150.3m announced on 13 September 2017 subject to Quantum’s shareholder approval

Shaun Chilton, Group Chief Executive Officer, said:

“All of our business operations have performed strongly over the year resulting in a 25% increase in adjusted EPS and a 25% increase in dividend.

“We have continued to make significant progress in our strategy to build scale and capability in high growth geographies in the Africa and Asia Pacific region.

“Our strategic priorities remain unchanged - we continue to drive organic growth across all parts of the Group and search for selective acquisitions to complement our existing offering and capabilities.

“In line with this strategy, our recently announced proposed acquisition of Quantum would extend our Unlicensed Medicines capability, accelerate Clinigen’s unlicensed to licensed global strategy and enable Clinigen to internationalise Quantum’s existing portfolio of commercial products.

“The Group is well positioned to deliver another good year of progress and longer term the Board believes we are in an excellent position to capitalise on the substantial opportunity in our markets.”

*Adjusted results exclude amortisation and non-underlying costs. Adjusted EBITDA includes the 50% share of the EBITDA from the joint venture in South Africa. Adjusted results are now shown after share-based payments and the prior year has been restated accordingly.

An analyst briefing will be held at 9:30am on Thursday, 28 September 2017 at the offices of Instinctif Partners, 65 Gresham Street, London EC2V 7NQ.

A video of the CEO and CFO describing today’s results can be seen here:
http://www.clinigengroup.com/results-reports-presentations

An audio replay file will be made available shortly afterwards via the Group’s website:
www.clinigengroup.com

Contact details

Clinigen Group plc
Shaun Chilton, Group Chief Executive Officer
Martin Abell, Group Chief Financial Officer
Matt Parrish, Head of Investor Relations
Tel: +44 (0) 1283 495010

Numis Securities Limited
Michael Meade / Freddie Barnfield (Nominated Adviser)
James Black / Tom Ballard (Corporate Broking)
Tel: +44 (0) 20 7260 1000

RBC Capital Markets – Joint Broker
Marcus Jackson / Elliot Thomas / Jack Wood
Tel: +44 (0) 20 7653 4000

Instinctif Partners
Adrian Duffield / Melanie Toyne-Sewell / Alex Shaw
Tel: +44 (0) 20 7457 2020
Email: clinigen@instinctif.com

 

Notes to readers

Following the completion of the Link earn-out and subsequent closer integration of Link into the Group, the performance of the business is now reported as three synergistic operations; Clinical Trial Services, Unlicensed Medicines and Commercial Medicines. This structure reflects how the Group operates in practice and will allow the Group to develop further its complementary portfolio of businesses worldwide, enhance its ability in providing access to medicines and capitalise on its market-leading positions and expanded geographical footprint.

The Unlicensed Medicines operation encompasses Managed Access, Global Access and the unlicensed business within Link. Commercial Medicines encompasses the Specialty Pharmaceuticals portfolio and the commercial business of the Link division. Note 2 of the condensed financial information reports the Group results for the five segments structure as operated throughout the year and also the new three segment structure.

About Clinigen Group
Clinigen Group plc (AIM: CLIN) is a global pharmaceutical and services company with a unique combination of businesses focused on providing access to medicines. Its mission is to deliver the right medicine to the right patient at the right time through three areas of global medicine supply; clinical trial, unlicensed and licensed medicines.

Clinical Trial Services
Clinigen is the global market leader in the specialist supply and management of quality-assured comparator medicines and services to clinical trials and Investigator Initiated Trials.

Unlicensed Medicines
Clinigen is the global leader in ethically sourcing and supplying unlicensed medicines to hospital pharmacists and physicians for patients with a high unmet medical need. The Group manages early access programmes to innovative new medicines and provides ‘on-demand’ access globally to medicines which remain unlicensed at the point of care.

Commercial Medicines
The Group acquires global rights to niche hospital-only and critical care products, revitalising these assets around the world and returning them back to sustained growth. The Group also provides access to licensed and branded generic medicines in the Africa and Asia Pacific region.

For more information on Clinigen, please visit www.clinigengroup.com

Cautionary statement
This announcement contains certain projections and other forward-looking statements with respect to the financial condition, results of operations, businesses and prospects of Clinigen Group plc. These statements are based on current expectations and involve risk and uncertainty because they relate to events and depend upon circumstances that may or may not occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. Any of the assumptions underlying these forward-looking statements could prove inaccurate or incorrect and therefore any results contemplated in the forward-looking statements may not actually be achieved. Recipients are cautioned not to place undue reliance on any forward-looking statements contained herein. Except as required by law, Clinigen undertakes no obligation to update or revise (publicly or otherwise) any forward-looking statement, whether as a result of new information, future events or other circumstances.

The information contained in this statement has not been audited and may be subject to further review.