Alliance Pharma
(APH:AIM) 92.2p

Gain to date: 47.5%

Original entry point: 

Buy at 62.5p, 21 Dec 2017

There has been a good start to the year at Alliance Pharma (APH:AIM) with sales rising 10% to £54.5m in the six months to 30 June, driven by its International Star brands.

Sales of scar reduction treatment Kelo-Cote have surged 77% to £10.9m and macular pigment supplement MacuShield sales jumped 22% to £3.7m over the same period.

Profitability is expected to increase over the first half at a lower rate than sales due to the impact of spending to boost marketing and selling activities.

Alliance says head lice treatment Vamousse, which was acquired from TyraTech (TYR:AIM) in December, delivered revenue of £2.7m.

In the second half of 2018, Vamousse sales are expected to grow further as kids head back to school.

Niche products under Alliance’s local hero product range are performing in line with expectations.

Unfortunately, Alliance’s small bedrock products are trading slightly behind expectations due to manufacturing delays and distributor order phasing.

Numis analyst Sally Taylor remains upbeat, arguing some
of the effects from delays and order phasing are expected
to be resolved in the second half of the year.

‹ Previous2018-08-02Next ›