Is Pharma (LON:ISPH) , which provides specialist pharmaceuticals and equipment in core areas such as Oncology and Neurology saw revenue up 17% to £14.2m (2009: £12.2m). This includes £0.7m from the Volplex and Isoplex Distribution and Sale agreement. Product sales were up 19% to £13.4m (2009: £11.2m) and pre-tax profit up 30% to £2.6m (2009: £2.0m) post exceptional items of £0.4m (2009: £0.6m). Basic earnings per share were 7.3p (2009: 9.1p). Consensus estimates were for pre-tax profit of £2.98m and eps of 8.23p, however, there was a big spread between the 2 analysts covering this one (6.7p to 9.6p!). Cash generated from operations was up 24% to £3.1m (2009: £2.5) and cash balances at the year end were £4.2m (2009: £6.0m). During the year the Group paid down £3m of debt and invested a further £2.7m in product acquisitions and development, principally the acquisitions of Episil and Aquoral. They also drew down £1m from their debt facility with Bank of Scotland to part fund the Episil acquisition, and at year end, the balance drawn down on this £8m facility was £4.5m – so plenty of headroom! Net debt was £9.7m representing net gearing of c32%
As we spoke of in April 2010 when the company released a trading update for the period ending 31st March 2010, they continue to implement their strategy including the acquisition of exclusive European rights for Epsil (Oncology support care product) and similar rights in the UK for Aquoral (Aequasyal) with an option for Germany. In addition Aloxi (a drug used to prevent Chemotherapy-induced nausea) is now recommended in international cancer guidelines with revenues of this drug up 84%! The Volplex and Isoplex Distribution and Sale agreement mentioned above was worth £1.4m with £0.7m paid in the year under consideration.
Commenting of the results, Tim Wright, Chief Executive Officer, said “We are pleased to report another year of exceptional performance as we continue to deliver against our strategy of building a leading European speciality pharmaceutical company. “ With exclusive rights to important drugs and revenues of key drugs up, this promises to be an interesting company to watch. As we write the share price has fallen 6.7% to 69.5p on a whopping 17,000 shares traded – such is AIM!
