Alliance Pharma plc pre-close trading update

Alliance Pharma plc (AIM: APH), the speciality pharmaceutical company, announces its pre-close trading update ahead of its preliminary results for the year ended 31 December 2014.

Turnover for 2014 is expected to be £43.5 million (2013: £45.3 million after restatement following the adoption of IFRS 11).  Pre-tax profits are expected to be in line with current market expectations.

Sales of the Hydromol^TM dermatology range grew 15% year on year to £6.0 million and sales of the stoma care range grew by 10% to £4.3 million.  Sales of Forceval^TM recovered from the issues in 2013 to reach £3.5 million (2013: £1.9 million).  With unconstrained supplies, sales of Ashton & Parsons Infants’ Powder^TM reached £1.3 million in 2014, up from £0.4 million achieved in 2013.  These and other areas of growth were offset by the expected reduction in toxicology product sales from £3.9 million in 2013 to £0.1 million in 2014 and the decline in Nu-Seals^TM sales from £3.1 million to £2.5 million as a result of generic competition in Ireland.

Cash generation remains strong and as a result net bank debt at 31 December 2014 was £21.1 million, down £4.6 million in the year.  Alliance currently has £24 million of committed unutilised facility available to fund acquisitions.  We continue to evaluate a number of acquisition opportunities.

Alliance’s preliminary results for 2014 are due to be announced on 25 March 2015.