Alliance Pharma plc Annual Report and Accounts 2020
Together
we achieve
more
Company Overview
An alliance of people, partners and brands, working together
to achieve more
Contents
Overview | Governance | Financial Statements | Additional Information | ||||||||
2020 Overview & Financial Highlights | 01 | Chairman's Introduction | 68 | Independent Auditor's Report | 100 | Unaudited Information | 158 | ||||
At a Glance | 02 | to Governance | Consolidated Income Statement | 108 | Five Year Summary | 159 | |||||
Making Great Alliances | 04 | Board of Directors | 70 | Consolidated Statement | 109 | Advisers and Key Service Providers | 160 | ||||
Investment Case | 10 | Our Governance Framework | 72 | of Comprehensive Income | Cautionary Statement | 161 | |||||
QCA Code Compliance | 73 | Consolidated Balance Sheet | 110 | Glossary | 162 | ||||||
Strategic Report | |||||||||||
Nomination Committee Report | 79 | Company Balance Sheet | 111 | ||||||||
Chief Executive's Review | 14 | Audit and Risk Committee Report | 82 | Consolidated Statement | 112 | ||||||
Our Markets | 20 | Remuneration Committee Report | 86 | of Changes in Equity | |||||||
Our Business Model | 22 | Directors' Report | 95 | Company Statement | 113 | ||||||
of Changes in Equity | |||||||||||
Our Strategy | 24 | ||||||||||
Consolidated and Company | |||||||||||
Strategy in Action | 28 | 114 | |||||||||
Cash Flow Statements | |||||||||||
Responding to COVID-19 | 32 | Notes to the Financial Statements | 115 | ||||||||
Key Performance Indicators | 34 | ||||||||||
Responsible Business | 36 | ||||||||||
Financial Review | 52 | ||||||||||
Risk Management and Internal Controls | 56 | ||||||||||
Our Principal Risks and Uncertainties | 58 | ||||||||||
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Alliance Pharma plc - Annual Report and Accounts 2020
2020 Financial Highlights
The Group continued to deliver a robust operational and financial performance in 2020, despite the challenges posed by COVID-19.
Overview
Strategic Report
Overview
Strong performance from Consumer Healthcare brands, which now account for over two thirds of Group see-through revenues*
Kelo-cote™ revenues up 12% Nizoral™ see-through revenues*up 4%
See-through revenues*overall up 1% to £93.0m (2019: £92.4m)
See-through Revenue*
£137.5m -5%
(2019: £144.3m)
2020 £137.5m
2019 £144.3m
2018 £124.0m
2017 £101.6m
Statutory Revenue
£129.8m -4%
(2019: £135.6m)
2020 £129.8m
2019 £135.6m
2018 £118.2m
2017 £101.6m
Governance
Statutory revenues up 2% to £85.3m (2019: £83.7m)
Prescription Medicine revenues down
14% to £44.5m (2019: £51.9m), reflecting delays in routine treatments as a result
of COVID-19
Group see-through revenue* in total down 5% (down 5% CCY*) to £137.5m (2019: £144.3m)
Underlying Profit Before Tax
£33.5m +2%
(2019: £32.9m)
2020 £33.5m
2019 £32.9m
2018 £28.1m
2017 £23.9m
Reported Profit Before Tax
£13.0m -58%
(2019: £31.1m)
2020 £13.0m
2019 £31.1m
2018 £22.8m
2017 £28.3m
Financial Statements
Group statutory revenues down 4%, to £129.8m (2019: £135.6m)
Substantial US acquisition completed in December 2020, bringing highly successful and fast-growing brand, Amberen™, into the Group, and creating scale in the Group's US operations
Underlying profit before tax up 2% to £33.5m (2019: £32.9m)
Reported profit before tax down 58% to £13.0m (2019: £31.1m), due to non-cash
Underlying Basic EPS**
5.11p
(2019: 5.09p)
2020 5.11p
2019 5.09p
2018 4.54p
2017 4.05p
Reported Basic EPS
1.51p -69%
(2019: 4.80p)
2020 1.51p
2019 4.80p
2018 3.69p
2017 6.08p
Additional Information
impairment and amortisation charges, and acquisition costs relating to the Biogix acquisition
Group leverage post acquisition of Biogix Inc at 2.43 times, up from 1.48 times at December 2019; leverage expected to decrease to below 2.0 times during 2021
Free cash flow very strong at £34.1m, helped by favourable movements in net working capital
Cash generated from operations up 19% to £46.4m (2019: £39.0m)
Proposed final dividend payment of
1.074p per share, giving a total dividend of 1.610p (2019: 0.536p)
Free Cash Flow* | Net Debt | ||||||||||||||||||||||||||||
£34.1m | +17% | £109.4m +85% | |||||||||||||||||||||||||||
(2019: £29.1m) | (2019: £59.2m) | ||||||||||||||||||||||||||||
2020 | £34.1m | 2020 | £109.4m | ||||||||||||||||||||||||||
2019 | £29.1m | 2019 | £59.2m | ||||||||||||||||||||||||||
2018 | £16.1m | 2018 | £85.8m | ||||||||||||||||||||||||||
2017 | £22.0m | 2017 | £72.3m | ||||||||||||||||||||||||||
- Non-IFRSalternative performance measures (see note 33). See-through revenue includes sales from Nizoral as if they had been invoiced by Alliance. For statutory accounting purposes the product margin on Nizoral sales is included within Revenue, in line with IFRS 15.
- The 2017 measure refers to the Underlying Adjusted Basic EPS as disclosed in the 2017 Annual Report which was adjusted to normalise the impact of significant changes in overseas tax rates.
01
Company Overview
At a Glance
We are a leading international healthcare business of interconnected people and brands. A global range of products delivering outstanding value.
We are an alliance One team,
achieving more
Who we are
Founded in the UK over 20 years ago, we have grown both our geographic reach and our product range and now market around 80 consumer healthcare and pharmaceutical products in over 100 countries worldwide.
What we do
We focus on our strengths - bringing our specialist expertise to the marketing and regulatory management of our products, so as to ensure that they can be made available to the widest range of people who could potentially benefit from them, wherever they may be located. Outsourcing
all our manufacturing, warehousing and logistics activities enables us to remain asset-light and focused on doing what we do best.
Our mission
To create partnerships that unlock potential for brands, businesses and people around the world.
Responsible business
We are committed to operating our business in an ethical and sustainable way, having regard to the interests of all our stakeholders - including our customers, suppliers, business partners and employees. We recognise that everything we do has an impact on the natural environment and on the people and communities within it and we are committed
to looking for ways to reduce our impact in these areas to ensure a better future for all.
How we do it
We have built a successful business with a strong collaborative culture. We recognise that our relevance and value is in how we work together, both with our colleagues and with our customers, suppliers and all other external stakeholders. Our entrepreneurial spirit and our core values of performance, realism, accountability, integrity, skill and entrepreneurship remain at the heart of how we engage with each other and conduct our business.
Proud to be recognised as a London Stock Exchange Group '1,000 Companies to Inspire Britain' page 27
02 Alliance Pharma plc - Annual Report and Accounts 2020
Our Vision
To be a leading international healthcare business, built around products that are clinically valuable to patients.
G Achieved through G
Our Purpose
To make a difference to people's lives, through making a range of clinically valuable healthcare products available to consumers and patients around the world.
Overview
Strategic Report
Governance
Our Values
Performance - Our high-performing people continually drive business success
Realism - We set stretching goals and targets which we believe are achievable
Accountability - We take responsibility and deliver what we promise
Integrity - We build trust in all our relationships through openness and fairness
Skill - We recruit highly skilled people and develop their talents to the full
Entrepreneurship - Our people think of the business as if it was their own
Financial Statements
G Delivered by G | |||||
Our Strategy (see page 24) | |||||
Maximising brand potential - | Investing in people - | ||||
to deliver organic growth | and in developing our strong, collaborative culture | ||||
Acquiring new products - | Acting responsibly - | ||||
to deliver incremental growth | to maximise the value created for all our stakeholders | ||||
Additional Information
G Enabled by G
Our Business Model (see page 22)
Investing behind selected brands, primarily Consumer Healthcare brands, to promote growth
Maintaining our cash-generative Prescription Medicines portfolio
Acquiring new products to provide further opportunities for growth
Reinvesting cash generated in:
- Growing our existing brands
- Paying down debt
- Rewarding our shareholders
- Funding acquisitions
G Supported by G
Our strong, collaborative culture of working together to achieve more (see more on page 06)
03
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Disclaimer
Alliance Pharma plc published this content on 26 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 April 2021 14:07:05 UTC.