Alliance Pharma plc (AIM: APH) – modest rating but modest growth prospects?
The speciality pharmaceutical company announced results for the year ended 31 December 2014 marginally ahead of consensus estimates. This business has delivered consistent, if unspectacular. returns over the past few years, are things about to change?
Alliance, founded in 1998, is an AIM listed speciality pharmaceutical company based in Chippenham, Wiltshire, UK. The Company has a strong track record of acquiring the rights to established niche products and owns or licenses the rights to more than 60 pharmaceutical products and continues to explore opportunities to expand the range. Revenue for the year was £43.5m (2013: £45.3m), pre-tax profit £10.8m (2013: £12.0m) and adjusted EPS 3.36p (2013: 3.82p). Those sort of declines won’t necessarily appeal to many AIM investors but, of greater significance, free cash flow was £10.3m (2013: £8.2m). Net bank debt was down to £21.1m…