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(Sharecast News) - Alliance Pharma posted weaker full-year revenues on Tuesday, but insisted it remained well-positioned for medium-term growth.
The AIM-listed healthcare group, which last month agreed to be taken over by shareholder DBAY Advisors in a £362m deal, posted statutory revenues of £178.8.m in the year to 31 December, down 1% on 2023.
Underlying pre-tax profits were flat at £31.5m. On a reported basis, however, pre-tax losses came in at £14.5m, dragged lower by intangible amortisation and impairment charges.
Alliance said it had seen strong growth in some consumer healthcare brands, including scar treatment Kelo-Cote and mouth ulcer gel Aloclair. But that was in part offset by weaker performances in other brands, including dandruff shampoo Nizoral.
As a result, on a constant currency basis, healthcare revenues fell 2% to £130.7m.
Prescription medicines fared better. Revenues came in at £49.6m, boosted by strong performances by eczema cream Hydromol and vitamin supplement Forceval.
The group said it had made structural changes during the year to improve efficiency, as well as hiring more senior managers, leaving it "well-positioned for growth over the medium-term".
Nick Sedgwick, chief executive, added: "2024 has been an important year for Alliance, as we implemented the necessary changes to accelerate decision making and to bring the consumer closer to the heart of the business.
"I see further opportunity to deliver efficiency gains and capability improvements over time."
DBAY first made a 62.5p per share offer for Alliance in January, before upping that to 64.75p. Shareholders backed the offer in March.
Once the deal completes, Alliance will stop trading on AIM, likely by the end of the first half.
As at 0900 BST, shares in Alliance were largely flat at 64.3p.
