REG - Alliance Pharma PLC - Preliminary Results
19/06/2024 07:00
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RNS Number : 9591S Alliance Pharma PLC 19 June 2024
For immediate release
19 June 2024
ALLIANCE PHARMA PLC
("Alliance" or the "Group")
Preliminary Results for the year ended 31 December 2023
Strong revenues on H2 recovery, leverage reduced, Board strengthened
Alliance Pharma plc (AIM: APH), the international healthcare group, presents
its preliminary results for the year ended 31 December 2023 (the "Year" or the
"Period"). As previously communicated in our full year trading update on 29
January 2024, a strong second half performance drove record sales for the Year
and further underlying profit expansion. With continued investment planned to
support new product development and increased marketing, the Group is well
positioned for growth over the medium term.
FINANCIAL SUMMARY
Year ended 2023 2023 2022 2022 Growth underlying Growth reported(1)
Underlying (£m) Reported (£m) Underlying (£m) Restated(1) (£m)
Revenue (see-through basis)(2) 182.7 182.7 172.0 172.0 6% 6%
Revenue (statutory basis) 180.7 180.7 167.4 167.4 8% 8%
Gross profit 105.0 105.0 101.7 101.7 3% 3%
Profit/(loss) before taxation ("PBT") 31.5 (48.8) 30.3 (23.1) 4% 111%
Basic earnings per share 4.55 (6.13) 4.28 (3.93) 6% 56%
Free cash flow(2) 21.3 15.8 35%
Cash from operations 36.9 24.9 48%
Net debt(2) 91.2 102.0
Proposed total dividend per share nil 1.776
OPERATING AND FINANCIAL SUMMARY
· Consumer Healthcare see-through revenue(2) up 11% at constant
exchange rates ("CER") to £136.4m (2022: £125.2m) and up 9% on a reported
basis.
· Continued strong consumer demand driving significant recovery in
Kelo-Cote franchise revenues in H2, with FY 2023 revenues reaching £63.2m,
+29% CER.
· Prescription Medicine performance broadly stable with revenues of
£46.3m (2022: £46.8m).
· Non-cash impairments of £79.3m due to lowered future cash flow
expectations and higher cost of capital, of which £46.4m relates to Amberen,
£10.3m to Nizoral, and £22.6m to twenty smaller assets in aggregate.
· The correction of valuation errors for the prior year has yielded
a £28.3m increase to non-cash impairment charges reported in 2022, of which
£20.0m relates to Amberen and £8.3m to other intangibles
· Underlying PBT increased 4% to £31.5m (2022: £30.3m) and
reported loss before tax was £48.8m (2022 restated: £23.1m loss).
· Robust free cash flow of £21.3m (2022: £15.8m), up 35%.
· Net debt reduced to £91.2m moving Group leverage to 2.05x at 31
December 2023 (2.69x at 30 June 2023, 2.57x at 31 December 2022).
· Dividend remains paused while Board considers new dividend policy
with cash prioritised for reinvestment in the business to drive growth.
DEVELOPING OUR BUSINESS
· Strong performance from latest US acquisition, ScarAway, with
£9.9m revenue, up 20% CER on like-for-like basis, exceeding original
expectations.
· Progress continues to be made on brand innovation, with £3.5m of
revenues from internal development (2022: £1.7m)
· Leveraged our ecommerce knowledge to broaden the geographic reach
of our ecommerce platforms and enter new markets, with further expansion
planned in 2024.
· Nizoral manufacturing moved from Belgium to Thailand driving cost
savings, improving on time in full order delivery and reducing carbon
emissions.
· 48% reduction in Scope 1 and 2 emissions (versus 2018 baseline),
on track to meet interim 65% reduction target by 2025 and achieve net zero in
2030. All scope 1 & 2 emissions offset through carbon credits.
· Scope 3 emissions target set to achieve net zero by 2044 (versus
2022 baseline), with an interim reduction target of 25% by 2030.
· Re-certified as a Great Place To Work® in UK, US, China and
Singapore.
· Strengthened Board of Directors with appointment of Jeyan Heper,
Martin Sutherland, Richard McKenzie and Eva-Lotta Sjöstedt and by the post
year-end appointments of new Chair, Camillo Pane and new CEO, Nick Sedgwick
· Successful appeal of Competition and Markets Authority ("CMA")
decision clearing Alliance, Peter Butterfield and John Dawson former CEOs, of
any wrongdoing. £7.9m provision for potential fine now released.
Camillo Pane, Chair of Alliance, said:
"I am delighted to be joining Alliance at such an important time for the
company. Alliance has a strong global footprint in several fast growth
Consumer Healthcare categories. Further to the announcement that Peter
Butterfield will be leaving Alliance, I am looking forward to working with our
new CEO, Nick Sedgwick, and, together with the wider management team, I am
focused on ensuring we deliver shareholder value."
Commenting on the results, Andrew Franklin, Chief Financial Officer of
Alliance, said:
"Whilst the audit delay has been unsatisfactory, it has allowed us to
implement a more robust intangible valuation review process. Despite the
non-cash impairments our portfolio continues to provide a solid platform from
which to grow our Consumer Healthcare brands and generate strong cash flow. In
2023, we increased marketing investment, launching award winning advertising
campaigns for Kelo-Cote and MacuShield to accelerate organic sales growth
whilst bringing new products to market. Our revenues through ecommerce are
building strongly, as we strengthen our network of specialist partners and
internal capabilities and enter new geographies.
"We remain confident in our medium to long-term performance as we focus our
resources on those market segments in which we already have a strong presence
and expertise in order to drive solid organic revenue growth above that of the
broader Consumer Healthcare market."
Outlook for 2024
Alliance's clear focus on the core Consumer Healthcare business, in addition
to our well-established, scalable platform, is expected to deliver continued
modest revenue growth. Group performance in the five months to end May is
in-line with the Board's expectation.
As we continue to refine our strategy we intend to move towards smaller, more
regular order fulfilment, to create a more consistent revenue stream, reducing
the stocking and destocking cycles we've experienced over the last two years
as we've changed distributors, moved manufacturing and managed through the
COVID environment.
In 2024 we will continue to increase investment in sales, marketing and
innovation to maintain our brand leadership position in key categories.
The Board continues to anticipate that profits in FY 2024 will be in-line with
FY 2023. As in previous years, performance is expected to be H2 weighted,
particularly in Nizoral.
We remain confident in our ability to further capitalise on identified organic
growth opportunities within the business and to deliver positive financial
performance which will help drive the de-levering of our balance sheet.
(1) Restated, see note 2 for further detail
(2) The performance of the Group is assessed using Alternative Performance
Measures ("APMs"), which are measures that are not defined under IFRS, but are
used by management to monitor ongoing business performance against both
shorter term budgets and forecasts and against the Group's longer term
strategic plans. APMs are defined in note 15.
Specifically, see-through revenue includes all sales from Nizoral as if they
had been invoiced by Alliance as principal. For statutory accounting purposes
the product margin relating to Nizoral sales made on an agency basis is
included within Revenue, in line with IFRS 15.
Underlying measures exclude certain items classed as non-underlying to allow
the Group's financial performance to be compared more easily against the
majority of its peers. For further detail on non-underlying items please see
note 5.
ANALYST MEETING & WEBCAST
A meeting for analysts will be held at 10:00am this morning, 19 June 2024, at
Buchanan, 107 Cheapside, London EC2V 6DN. For further details, analysts should
contact Buchanan at alliancepharma@buchanan.uk.com
(mailto:alliancepharma@buchanan.uk.com)
A live webcast of the analyst meeting will be available at this link:
https://stream.buchanan.uk.com/broadcast/65e0c6b14fdf0119e94f5747
(https://url.uk.m.mimecastprotect.com/s/Tk-8C8YDtj9073FnVUzE)
A recording of the webcast will be made available at the investor section of
Alliance's website, https://www.alliancepharmaceuticals.com/investors/
(https://www.alliancepharmaceuticals.com/investors/%0d)
ANNUAL GENERAL MEETING
This year's AGM will be held at 10:00am on 29 July 2024, at the offices of
Buchanan, 107 Cheapside, London EC2V 6DN. Further details will be included in
the Notice of AGM, which will be published shortly.
For further information:
Alliance Pharma plc + 44 (0)1249 466966
Head of Investor Relations & Corporate Communications: + 44 (0)1249 705168
Cora McCallum
ir@allianceph.comk
Buchanan + 44 (0)20 7466 5000
Mark Court / Sophie Wills
alliancepharma@buchanan.uk.com
Deutsche Numis (Nominated Adviser and Joint Broker) + 44 (0)20 7260 1000
Freddie Barnfield / Duncan Monteith / Sher Shah
Investec Bank plc (Joint Broker) + 44 (0) 20 7597 5970
Patrick Robb / Maria Gomez de Olea
About Alliance
Alliance Pharma plc (AIM: APH) is a growing consumer healthcare company. Our
purpose is to empower people to make a positive difference to their health and
wellbeing by making our trusted and proven brands available around the world.
We deliver organic growth through investing in our priority brands and
channels, in related innovation, and through selective geographic expansion to
increase the reach of our brands. Periodically, we may look to enhance our
organic growth through selective, complementary acquisitions.
Headquartered in the UK, the Group employs around 290 people based in
locations across Europe, North America, and the Asia Pacific region. By
outsourcing our manufacturing and logistics we remain asset-light and focused
on maximising the value we can bring, both to our stakeholders and to our
brands.
For more information on Alliance, please visit our website:
www.alliancepharmaceuticals.com (http://www.alliancepharmaceuticals.com)
Introduction
As previously communicated, this year's audit process has taken longer than
anticipated as we faced a number of challenges from which we have learned
valuable lessons. Deloitte identified some weaknesses in our internal control
environment, including our approach to the valuation of our intangible brand
assets. Whilst the audit delay is unsatisfactory, it has allowed us time to
implement a thorough review of our processes, and perform more detailed work
in respect of impairments. This enhanced impairment review is now more robust,
and we are working on a plan to ensure we are in a strong position for future
audits.
Trading performance
The Group delivered record see-through(1) revenues in the Period of £182.7m
(2022: £172.0m), up 6% versus the prior period and up 7% at constant exchange
rates ("CER"). Excluding sales from ScarAway and the US rights to Kelo-Cote in
Q1 23, both acquired in March 2022 (the "US Acquisition"), like-for-like
see-through revenues increased 6% CER.
Group revenue was adversely affected by exchange rate movements throughout
2023, principally the strengthening of Sterling against the Hong Kong Dollar
and Chinese Yuan, which decreased see-through revenue by approximately £2.1m.
Statutory revenue increased 8% to £180.7m (2022: £167.4m) and up 9% CER.
Revenue summary
Year ended 31 December 2023 2022 Growth CER growth
£m £m
Kelo-Cote franchise 63.2 50.0 26% 29%
Amberen 11.2 14.9 -25% -25%
Nizoral* 21.7 21.8 -1% 3%
Other Consumer brands 40.3 38.4 5% 5%
Total Consumer Healthcare 136.4 125.2 9% 11%
Prescription Medicines 46.3 46.8 -1% -1%
See-through revenue* 182.7 172.0 6% 7%
LFL Consumer Healthcare see-through revenue*, excl. US Acquisition 133.8 125.2 7% 9%
LFL see-through revenue*, excluding US Acquisition 180.1 172.0 5% 6%
Statutory revenue - Consumer Healthcare 134.3 120.6 11% 13%
Statutory revenue - Group 180.7 167.4 8% 9%
LFL Consumer Healthcare statutory revenue, excluding US Acquisition 131.7 120.6 9% 11%
LFL Group statutory revenue, excluding US Acquisition 178.1 167.4 6% 8%
Consumer Healthcare
Total see-through Consumer Healthcare revenues for the Year were £136.4m
(2022: £125.2m), up 9% on the prior year (+11% CER) benefitting from an
additional quarter of sales from the US Acquisition. On a statutory basis,
reported Consumer Healthcare revenues were £134.3m, up 11% from the previous
year (2022: £120.6m) and up 13% CER.
Excluding the impact of the US Acquisition, like-for-like see-through Consumer
Healthcare revenue increased 7% (+9% CER) to £133.8m, whilst on a statutory
basis, like-for-like Consumer Healthcare revenues increased 9% to £131.7m
(+11% CER).
Kelo-Cote franchise - scar prevention and treatment
Continued strong consumer demand, particularly in China, drove significant
recovery in Kelo-Cote franchise revenues in H2, following the previously
communicated 4% decline in H1 due to lower order volumes from our China
cross-border partner during a period of destocking. Consequently, FY23
revenues increased 29% CER to £63.2m (2022: £50.0m).
Whilst revenues in China make up over 66% of the total Kelo-Cote franchise, we
saw strong growth in smaller markets where we are beginning to leverage our
global presence to drive targeted consumer activation campaigns. Our first UK
outdoor campaign was particularly successful, increasing sales in the UK by
36% in the year versus 2022, and was followed by a multimedia digital
marketing campaign. The assets for this campaign were designed to have global
appeal and will be used in other geographies this year.
Our most recent acquisition of the US rights to ScarAway and Kelo-Cote (which
completed in March 2022), created the Group's first fully global brand. The
integration of both assets has gone very smoothly with full transition
completed in just four months. ScarAway sales reached £9.9m in 2023,
exceeding our expectations to rise 20% CER on a like-for-like basis as we
increased marketing investment behind the brand and worked with our CMO
partner to bring key SKUs to market that had been discontinued by the previous
owner. We continue to see opportunities for further growth and range
extensions.
Recent new product introductions across the Kelo-Cote franchise are performing
well with a second year of strong revenues for Kelo-Cote Kids in APAC. In Q1
24, we launched ScarAway Kids and ScarAway Acne Scar Gel in the US on Amazon,
whilst further activation campaigns are planned for recently launched
Kelo-Cote Sheets.
Starting this year, our ambition is to move towards smaller, more regular
order fulfilment, to create a more consistent revenue stream, reducing the
stocking and destocking cycles we've experienced over the last two years. This
is expected to yield mid-single digit revenue growth for the Kelo-Cote
franchise in 2024, before returning to double-digit growth from 2025.
Nizoral - medicated anti-dandruff shampoo
Nizoral revenues increased 3% CER to £21.7m (2022: £21.8m) reflecting both
market share and distribution gains. Performance in 2023 showed marked
volatility in growth in H1 versus H2 due to the timing of distributor orders
received in 2022. H1 revenues grew 40% CER versus H1 22, benefitting from the
aforementioned timing and some inventory build ahead of a move in
manufacturer, whereas H2 revenues declined 18% CER, limiting overall growth in
the year.
Having completed the transfer of all the marketing authorisations from Johnson
& Johnson ("J&J") to Alliance in 2022 we were able to bring in a new
distributor and begin the process to consolidate manufacturing in Asia in
2023. Our new Chinese distributor has identified strong growth opportunities
through expanding the brand's reach, supported by our marketing initiatives. A
new out-of-home campaign was launched in the top nine cities in China in
August focused on new user recruitment and was supported by our distributor
partner's in-store promotional activity.
The roll-out of our strategic brand plan for Nizoral is now well underway,
with consumer activation campaigns ongoing across a number of other
territories where Nizoral commands a market leading position, including
Australia, South Korea, Thailand and the Philippines. These campaigns are run
in partnership with our local distributors, as part of a growth strategy
centred around consumer and healthcare professional activation, e-commerce,
and I&D. We launched new, modernised packaging in Thailand, designed to
appeal to a younger audience, with marketing focussed on social media
platforms popular with this demographic. This new packaging will be launched
in other markets in 2024.
During the year we also selected a new manufacturer in Thailand and have now
completed the transfer of manufacturing from J&J's site in Belgium. We
anticipate that this will deliver advantages through COGS reductions,
improvements in on time, in full, order fulfilment and reduced carbon
emissions. We expect further reductions in carbon emissions through changes to
product packaging.
The inventory build in H1 23 to secure supply during the move to the new
manufacturer began to unwind in H2 23, and continued to do so through H1 24.
Whilst we anticipate a strong H2 24 as we launch new products, sales for FY
2024 are expected to be broadly in line with FY 2023.
As part of our annual impairment review, we have adopted a more conservative
approach and lowered future growth expectations for Nizoral until we have
greater certainty on consumer response to our marketing campaigns and new
product launches. We have therefore impaired the carrying value of Nizoral by
£10.3m.
Amberen - vitamin mineral supplement (VMS) for the relief of menopause
symptoms in the US
Amberen revenues declined 25% CER to £11.2m (2022: £14.9m) and fell 6% CER
on an underlying basis (excluding the leading discount store account that was
lost in 2022). Whilst this performance was below our expectations at the
beginning of the Year, it reflects challenging conditions in both the wider US
consumer market and specific issues with Amazon. These included a change to
the billing for Amazon's warehouse space and its' price comparison approach,
in addition to the delisting of the perimenopause product, albeit for a few
months, due to the incorrect application of an algorithm that screens
advertising claims.
Despite these challenges, Amberen revenues on Amazon still grew strongly in
the period, but lagged total category growth which was driven primarily by new
entrants. The bricks and mortar market for VMS menopause relief continues to
decline, falling 7% in value terms in 2023 as consumers pivot to ecommerce
platforms.
As a consequence of 2023 performance, and as part of the annual impairment
review, we have reassessed the expected future cash flows generated by
Amberen, taking into account future planned innovation launches, marketing
investment, increased competition and a higher cost of capital due to the
overall increase in borrowing rates. Whilst Amberen continues to remain a
profitable and cash generative brand, we have further impaired the carrying
value of Amberen by £46.4m.
We remain focussed on addressing these brand and marketplace issues, through
strengthening both the internal and external capabilities in ecommerce and
digital marketing. We have also increased the level of marketing support to
revert the brand to growth. Amberen for menopause remains the largest SKU in
value terms across the category in the US and we are focused on developing an
innovation pipeline, to underpin the growth of the brand in the longer-term
and widen the product range to cover a multiple set of benefits in line with
consumers' needs.
We have also undertaken a review of the valuation of Amberen in the 2022
accounts to correct for errors noted in the valuation model. Adjusting for
these corrections in the prior year, the impairment charge for Amberen would
have totalled £32.0m for the year ended 31 December 2022, compared to the
£12.0m actually reported. Further information on this prior year adjustment
is set out in Note 2 .
Other Consumer Healthcare brands
Our underlying business remains strong, with Other Consumer Healthcare
revenues increasing 5% CER to £40.3m (2022: £38.4m), despite regulatory
delays in some products impacting stock availability in H1 23. These issues
have now been resolved. We saw particularly strong growth from Oxyplastine
(skin care) and Ashton & Parsons (teething powder). The robust performance
in our Other Consumer Healthcare brands clearly illustrates the benefits of a
diversified portfolio, and we anticipate mid single-digit growth in this
portfolio of products in 2024.
Prescription Medicines
The Prescription Medicines business continues to deliver stable revenues with
£46.3m (2022: £46.8m), in the Year, down 1% on the prior year, reflecting a
strong recovery in H2 as expected, as previously out of stock products became
available. Our two largest prescription brands Hydromol (emollient for the
treatment of eczema) and Forceval (nutritional supplement), both performed
well in the year delivering record sales of £9.0m and £6.6m respectively.
Profit and loss development
Whilst see-through revenues increased 6% in the Year, gross profit increased
3% to £105.0m (2022: £101.7m) due to a less favourable product mix
(comprising fewer higher margin Amberen sales and the impact of regulatory
delays in some products restricting stock availability in H1 2023), and an
increase in warehouse and distribution costs primarily related to Amazon in
the US. Gross margin reduced by 160 basis points to 57.5% of see-through
revenue (2022: 59.1%) and gross margin relative to statutory revenue was 58.1%
(2022: 60.8%).
However, through robust control of the costs we actively manage, operating
costs (defined as underlying administration and marketing expenses, excluding
depreciation and underlying amortisation charges) decreased 5% versus the
prior year to £59.1m (2022: £62.3m).
With a £0.8m increase in share option charges versus prior year (2023:
£0.9m, 2022: £0.1m), underlying earnings before interest, taxes,
depreciation, and underlying amortisation (EBITDA) increased 15% to £45.0m
(2022: £39.2m), whilst underlying operating profit (EBIT) increased by 17% to
£41.9m (2022: £35.7m). Reported operating loss increased by £20.8m to give
a £38.4m loss (2022 restated: £17.7m loss), after non-underlying items of
£80.3m (2022 restated: £53.4m).
Net finance costs of £10.4m include a £4.6m increase in interest payable to
£10.0m (2022: £5.4m), due to an increase in borrowing costs, reflecting the
rise in interest rates together with net exchange losses of £0.5m (negligible
gain in 2022).
As a result of higher finance costs, underlying profit before tax increased by
only 4% to £31.5m (2022: £30.3m), resulting in a 40 basis point margin
reduction to 17.2% of see-through revenues. Reported profit before tax
decreased to a £48.8m loss (2022 restated: £23.1m loss), primarily due to
higher non-underlying impairment charges in 2023.
With an underlying tax charge of £6.9m (2022: £7.2m) equating to an
underlying effective tax rate of 22.0% (2022: 23.9%), underlying basic
earnings per share increased 6% to 4.55p (2022: 4.28p). Reported basic
earnings per share was a loss of 6.13p (2022 restated: 3.93p loss) due to the
impact from non-underlying items on reported earnings in 2023 versus 2022.
Further detail on non-underlying items is provided below and in note 5.
Non-underlying items
Non-underlying items in the year principally comprised amortisation charges
for Prescription Medicines and certain other brand assets, together with
impairment charges identified as a result of the annual impairment review (see
note 5).
For 2023, impairment charges of £79.3m includes a charge of £46.4m in
relation to Amberen, together with £32.9m relating to a number of other
products (including £10.3m for Nizoral) driven by changes to their financial
outlook following certain, previously reported out of stock and regulatory
issues, and the increased cost of capital for the business as a whole.
Post year end and as previously mentioned, we were successful in our appeal of
the CMA decision. As this is an adjusting post balance sheet event we have
removed the provision relating to the potential fine of £7.9m, accordingly.
This has been recorded as a non-underlying event, consistent with the
treatment when the original accrual was made in 2021.
Balance sheet development
Intangible assets decreased by £93.4m in the year to £300.0m (31 December
2022 restated: £393.4m) reflecting non-underlying amortisation and impairment
charges of £86.5m, underlying amortisation of £1.9m and exchange
rate-related revaluation adjustments of £5.0m.
Net working capital at 31 December 2023 was £43.4m, an increase of £5.4m on
that at the start of the year (31 December 2022: £38.0m), primarily
reflecting movements in accounts receivable balances.
Inventories, net of provisions, increased £1.4m to £25.7m at 31 December
2023 (31 December 2022: £24.3m).
Accounts receivable increased by £5.4m to £54.7m, reflecting the timing of
sales and cash receipts in the second half of the year, versus the equivalent
period in 2022. Accounts payable was broadly in line with the prior year, up
£1.5m to £37.1m.
Following a comprehensive review of our brand and intangible assets we have
reassessed the carrying value and identified errors in the impairment review
performed in 2022. As a consequence, we increased the 2022 impairment of
intangibles assets by £28.3m. As discussed previously, £20.0m of this
relates to Amberen, whilst £8.3m comprises other assets, including £3.4m
relating to the Flamma franchise.
Cash generation
Free cash flow (see note 15 for definition) for the year rose 35% to £21.3m
(2022: £15.8m), due to the strong trading performance in H2. Cash generated
from operations increased by 48% to £36.9m (2022: £24.9m).
This solid cash generation supported a reduction in net debt of £10.8m to
£91.2m at 31 December 2023 (31 December 2022: £102.0m), with Group leverage
(the ratio of net bank debt to EBITDA) decreasing to 2.05 times (31 December
2021: 2.57 times). Interest rate cover (the ratio of EBITDA to finance
charges) decreased to 4.82 times (31 December 2022: 7.39 times) reflecting the
increase in net interest cost on rising interest rates.
Net debt and Group leverage are both expected to fall further during 2024,
particularly in the second half, with Group leverage expected to be below 2.0
times by the end of 2024.
Dividend
As detailed in the interim statement on 26 September 2023, the dividend was
paused to allow the Board to develop a new dividend policy with greater
emphasis on reinvestment in the business to drive growth. Taking account of
shareholder feedback, the Board has decided that no dividend will be declared
for 2023 with cash prioritised for investment in innovation, development,
brand marketing and reducing debt. The Board expects to provide an update on
dividend policy when appropriate.
Corporate developments
In August we successfully completed the refinancing of our Revolving Credit
Facility, which was scheduled to mature in July 2024. The facility was agreed
with the Group's existing syndicate of supportive relationship banks. Through
the refinancing we took the opportunity to resize and reduce the total
committed facility by £15m to £150m, whilst increasing the Accordion by
£15m to £65m. The covenants include a net leverage and interest cover test.
The facility is available until August 2026, with two further one-year
extension options.
On 23 May 2024 we announced the successful conclusion of our appeal before the
Competition Appeal Tribunal ("CAT") of a decision by the UK Competition and
Markets Authority ("CMA"). In a unanimous judgment, the CAT upheld Alliance's
appeal, finding that there was no agreement to exclude competition from the
market and no breach of competition law. The CMA's decision and £7.9m penalty
imposed on Alliance have been set aside. In particular, the CAT found that
Alliance's two key witnesses, former Alliance CEOs Pete Butterfield and John
Dawson, were both impressive and compelling, with their evidence singled out
by the Tribunal in its concluding remarks. Director disqualification
proceedings brought by the CMA against the two former Alliance CEO's, the
first limb of which was joined to the appeal, will also now fall away.
In 2021 we provided for the potential penalty, but now reverse this provision.
Innovation and Development (I&D)
In 2023, £3.5m of Group revenues were generated by products developed and
launched by Alliance, representing 2.5% of total consumer sales in the year
and more than twice the revenues delivered in 2022 (£1.7m). This is a good
step in the right direction and a pleasing performance given that our
dedicated Innovation and Development (I&D) team was only established in
2021, and validates our decision to invest in it further.
Kelo-Cote Kids (launched in 2022) and Canker-X, part of the Aloclair brand
franchise (launched in early 2023), were responsible for the majority of these
revenues. Amberen Advanced Menopause Relief gummy was launched in late 2023.
This year we will double our investment in I&D as we aim to achieve 10% of
Consumer Healthcare sales through products developed on our I&D platform
within the next five years. New products already launched in 2024 include
ScarAway Kids and ScarAway Acne Scar Gel, both in the US.
In May 2024 we launched a second gummy in the Amberen range, which uses a
different active ingredient to the original gummy launched in late 2023. This
new gummy aims to promote positive energy, mood and improve sleep, which is
particularly relevant to the perimenopause market.
Continuing our sustainability journey
We continue to make good progress against our environmental sustainability
agenda in 2023, setting a target to reach net zero for all Scope 3 emissions
by 2044, with an interim target of 25% reduction by 2030, in addition to our
previously published target to reach net zero Scope 1 & 2 emissions by
2030. This year we conducted a climate change risk assessment and scenario
analysis to support the publication of our second voluntary stand-alone TCFD
report and more extensive voluntary TCFD disclosures on our journey to
mandatory TCFD compliance.
During the Year we have invested to install photovoltaic panels on the roof of
our UK Headquarters in Chippenham. This program of work also includes the
installation of a new, more efficient substation and electric vehicle charging
points. When this work completes and the panels become operational, we will be
able to generate around 25% of our own electricity needs.
Throughout the Year we developed a number of social and governance
workstreams. We appointed a new e-learning provider to deliver "gamified",
engaging compliance training to our colleagues, including data protection,
unconscious bias, modern slavery, anti-bribery and corruption and competition
awareness training. We also entered a three-year partnership with the social
enterprise Slave Free Alliance ("SFA"), to safeguard individuals across our
business from modern slavery and human trafficking, including those in our
supply chain. Working with SFA we carried out a gap analysis, strengthened our
Modern Slavery Statement and provided training to our quality, sourcing and
supply chain teams to help these teams better identify modern slavery "red
flags" during quality audits and supplier site visits.
We implemented a partner code of conduct in 2022 and, throughout 2023, have
worked to ensure that all of our Contract Manufacturing Organisations (CMOs)
and distributors agree to comply with our code.
We have also introduced an employee code of conduct, which includes a section
on our speak up policy. To support this, we have engaged Safecall, an
independent reporting helpline to allow colleagues and external partners to
raise concerns anonymously from over 100 countries. The service is operational
for 24 hours a day, seven days a week, and available in over 60 languages.
Further detail on the progress we have made with our sustainable business
strategy will be provided in our Online Sustainability Report, which will be
published shortly on our website.
Building a strong alliance of colleagues
Our business, and the delivery of our strategy, is only possible due to our
network of talented, dedicated colleagues. We currently employ more than 290
people in nine locations around the world. We created eight new roles in 2023,
including Chief Operating Officer, as we looked to meet our evolving business
needs. This, in addition to the head count expansion we delivered in 2022,
means we now have the right size organisation to support our medium-term
strategy.
We have also continued our talent development programmes to ensure we attract
and retain an appropriate mix of skilled professionals. In 2023 we welcomed
the second cohort of our graduate and year in industry programmes to support
those at the early stages of their career development, which also complements
our existing apprenticeship programme in the UK.
Our investment in colleague engagement continues to pay dividends as evidenced
by our re-certification as a Great Place to Work in the UK, US China and
Singapore. In the 2023 survey we were pleased to have received an overall
Trust Index rating of 74% (2022: 79%) with 73% of participants globally saying
that Alliance was a Great Place to Work (2022: 82%).
On behalf of the Board, we would like to thank all those colleagues who helped
us to deliver our achievements in 2023.
Board and executive changes
Alliance has successfully continued its journey towards becoming a fast growth
Consumer Healthcare company, with Consumer Healthcare revenues representing
75% of group revenues in the Period. The Board and executive team have evolved
accordingly in 2023, to ensure that the Group has the right skills and
expertise to align with its longer-term strategy.
In February 2023, we welcomed Jeyan Heper to the Alliance Board as an
executive in the newly-created role of Chief Operating Officer. Jeyan has a
strong track record of strategic leadership in the international consumer
health market, overseeing a number of global programs and driving growth in
flagship brands. In his career spanning more than 25 years Jeyan has held
senior executive roles at Procter & Gamble, Danone Group and Ansell's
sexual wellness global business, before it was spun-out to become Lifestyles
Healthcare, a private equity/pharma-owned company where Jeyan became CEO.
Jeyan has helped to bolster the Group's operational capabilities, identify
growth opportunities, and is supporting the delivery of the Company's strategy
to expand its consumer health presence through leveraging his experience of
e-commerce in China and the US, and improving operational effectiveness.
The Board was strengthened further by the appointment of Martin Sutherland as
an additional Independent Non-Executive Director in February 2023. Martin is a
senior executive with over 30 years' experience in global businesses and is
currently Non-executive Chair of Logiq Consulting Ltd, and a Non-Executive
Director at both Forterra plc and XPS Pensions plc. Prior to this, Martin was
CEO of De La Rue PLC. Martin has a proven track record of delivering growth
through new product innovation, market diversification and international
expansion.
In November 2023, we added a further two new Independent Non-Executive
Directors, Eva-Lotta Sjöstedt and Richard McKenzie. Eva-Lotta has in-depth
knowledge of global consumer retail, supply chain and digital transformation
and has held leadership roles in consumer-facing industries across Europe,
Japan, China and the USA. From 2016 to 2018, Eva-Lotta was CEO of Georg
Jensen, the luxury jewellery and Scandinavian design brand. Prior to this
Eva-Lotta was CEO at Karstadt, a chain of premium department stores in Germany
with a strong e-commerce presence. She started her career at IKEA,
establishing the business in Japan where she worked for four years before
becoming CEO of IKEA Netherlands and then Deputy Global Retail Manager. In
this role she was responsible for IKEA's global multi-channel strategy and the
implementation of its on and offline experiences throughout the entire global
value chain.
Richard has international e-commerce, distribution, supply chain and logistics
experience in the consumer, retail and technology sectors, along with
particular expertise in the Asia-Pacific region having lived and worked in
mainland China for 10 years. From 2019 to 2023, Richard was Chief Commercial
Officer and latterly President (Europe and Asia) for Ocado Solutions, driving
the growth of this leading grocery e-commerce platform globally. Prior to this
Richard was a strategy consultant for OC&C in London and China, building
the company's presence in Asia-Pacific, before becoming a Senior Partner for
the Consumer Goods and Retail practice of Oliver Wyman in Asia Pacific. During
this time, he built extensive experience of the retail consumer market in
China, and Asia-Pacific more broadly.
In February 2024, Jo LeCouilliard stepped down from the Board with the
appointment of Camillo Pane as the new independent Chair of Alliance. Camillo
Pane has over thirty years of relevant experience. He has held a number of
senior positions at Reckitt Benckiser, including Senior Vice President and
Global Category Officer for Consumer Health, before moving to Coty Inc, one of
the largest beauty companies in the world, where, as CEO, he led the merger
with Procter & Gamble Specialty Beauty. Most recently, he was Group CEO of
Health & Happiness Group, a global Health and Nutrition company listed on
the Hong Kong Stock Exchange with revenues of around $2bn.
On behalf of the entire Group, we would like to thank Jo for her contribution
to the business.
On 8 May we announced that Peter Butterfield, Chief Executive Officer ("CEO"),
has decided to leave the business. After an extensive search, Nick Sedgwick
was appointed as the new CEO and joined Alliance on 13 May 2024.
Nick brings thirty years of consumer goods experience predominantly in health
across European, US and global roles at major multinational companies such as
Reckitt, Coty and Nestlé. Most recently Nick was Regional Director for UK and
Ireland Consumer Health at Reckitt during which time he increased revenue and
improved profitability in the second largest market for the company. Prior to
this, Nick worked at Coty holding a number of senior roles including Senior
Vice President for Global Sales and Commercial Capabilities, Senior Vice
President Sales for the US business and General Manager Consumer Beauty for UK
and Ireland. Throughout his career, Nick has worked in multiple countries,
always delivering high revenue growth through consumer-centric strategies,
high performance teams and excellence in execution.
Outlook for 2024
Group performance in the five months to end May is in-line with the Board's
expectation. Alliance's clear focus on the core Consumer Healthcare business,
in addition to our well-established, scalable platform, is expected to deliver
continued modest revenue growth.
As we continue to refine our strategy we intend to move towards smaller, more
regular order fulfilment to create a more consistent revenue stream, reducing
the stocking and destocking cycles we've experienced over the last two years
as we've changed distributors, moved manufacturing and managed through the
COVID environment. This is expected to yield mid-single digit revenue growth
for the Kelo-Cote franchise in 2024, before returning to double-digit growth
from 2025.
For Nizoral, there was a level of stock build in H1 23 to secure inventory
supply during the move in manufacturing, which began to unwind in H2 23, a
process that has continued through H1 24. Whilst we anticipate a strong H2 24
as we launch new products, Nizoral sales for FY 2024 are expected to be
broadly in line with FY 2023.
In 2024 we will continue to increase investment in sales, marketing and
innovation to maintain our brand leadership position in key categories.
The Board continues to anticipate that profits in FY 2024 will be in-line with
FY 2023. As in previous years, performance is expected to be H2 weighted.
INCOME STATEMENT
Note Year ended 31 December 2023 Year ended 31 December 2022
Underlying Non-Underlying Total Underlying Non-Underlying (restated(1)) Total
£000s £000s £000s £000s £000s (restated(1))
(Note 5) (Note 5) £000s
Revenue 3, 15 180,680 - 180,680 167,416 - 167,416
Cost of sales (75,661) - (75,661) (65,733) - (65,733)
Gross profit 105,019 - 105,019 101,683 - 101,683
Operating expenses
Administration and marketing expenses 5 (60,366) 6,147 (54,219) (63,955) 369 (63,586)
Amortisation of intangible assets 5 (1,903) (7,198) (9,101) (1,964) (7,238) (9,202)
Impairment of goodwill and intangible assets 5 - (79,252) (79,252) - (46,492) (46,492)
Share-based employee remuneration (889) - (889) (92) - (92)
Operating profit/(loss) 41,861 (80,303) (38,442) 35,672 (53,361) (17,689)
Finance expense 6 (10,471) - (10,471) (5,433) - (5,433)
Finance income 6 113 - 113 72 - 72
Net finance expense (10,358) - (10,358) (5,361) - (5,361)
Profit/(loss) before taxation 4 31,503 (80,303) (48,800) 30,311 (53,361) (23,050)
Taxation 5, 7 (6,915) 22,579 15,664 (7,234) 9,076 1,842
Loss for the period attributable to equity shareholders 24,588 (57,724) (33,136) 23,077 (44,285) (21,208)
Earnings per share
Basic (pence) 9 4.55 (6.13) 4.28 (3.93)
Diluted (pence) 9 4.54 (6.13) 4.23 (3.93)
All of the activities of the Group are classed as continuing.
1 See note 2 for an explanation and analysis of the prior year
restatement in respect of 31 December 2022.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended Year ended
31 December 2023 31 December 2022
£000s (restated(1))
£000s
Loss for the year (33,136) (21,208)
Other comprehensive income
Items that may be reclassified to profit or loss
Foreign exchange translation differences (gross) (6,221) 16,438
Foreign exchange translation differences (deferred tax) 1,202 (3,589)
Interest rate swaps - cash flow hedge (gross) (1,771) -
Interest rate swaps - cash flow hedge (deferred tax) 443 -
Foreign exchange forward contracts - cash flow hedge (gross) 497 111
Foreign exchange forward contracts - cash flow hedge (deferred tax) (122) (28)
Total comprehensive deficit for the year (39,108) (8,276)
1 See note 2 for an explanation and analysis of the prior year
restatement in respect of 31 December 2022.
CONSOLIDATED BALANCE SHEET
Note 31 December 2023 31 December 2022
£000s (restated(1))
£000s
Assets
Non-current assets
Goodwill and intangible assets 10 299,978 393,372
Property, plant and equipment 5,721 5,578
Deferred tax 4,648 4,117
Derivative financial instruments 77 17
Other non-current assets 404 588
310,828 403,672
Current assets
Inventories 25,711 24,286
Trade and other receivables 54,716 49,324
Derivative financial instruments 1,232 157
Cash and cash equivalents 22,436 31,714
104,095 105,481
Total assets 414,923 509,153
Equity
Ordinary share capital 13 5,404 5,400
Share premium account 151,684 151,650
Share option reserve 11,159 10,141
Other reserve (329) (329)
Cash flow hedging reserve (822) 131
Translation reserve 7,411 12,430
Retained earnings 43,366 86,094
Total equity 217,873 265,517
Liabilities
Non-current liabilities
Loans and borrowings 11 113,646 133,744
Derivative financial instruments 1,771 -
Other liabilities 3,200 3,415
Deferred tax liability 37,863 59,455
156,480 196,614
Current liabilities
Corporation tax 2,454 2,984
Trade and other payables 37,066 35,616
Derivative financial instruments 413 -
Provisions 12 637 8,422
40,570 47,022
Total liabilities 197,050 243,636
Total equity and liabilities 414,923 509,153
1 See note 2 for an explanation and analysis of the prior year
restatement in respect of 31 December 2022.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Ordinary share capital Share premium account Other reserve Cash flow hedging reserve Translation reserve Share option reserve Retained earnings Total equity
£000s £000s £000s £000s £000s £000s £000s £000s
Note
Balance 1 January 2022 5,382 151,328 (329) 48 (419) 10,058 116,418 282,486
Issue of shares 13 18 322 - - - - - 340
Dividend paid 8 - - - - - - (9,116) (9,116)
Share options charge (including deferred tax) - - - - - 83 - 83
Transactions with owners 18 322 - - - 83 (9,116) (8,693)
Loss for the year (restated(1)) - - - - - - (21,208) (21,208)
Other comprehensive income
Foreign exchange forward contracts - cash flow hedge (net of deferred tax) - - - 83 - - - 83
Foreign exchange translation differences (net of deferred tax) - - - - 12,849 - - 12,849
Total comprehensive deficit for the year (restated(1)) - - - 83 12,849 - (21,208) (8,276)
Balance 31 December 2022 (restated(1)) 5,400 151,650 (329) 131 12,430 10,141 86,094 265,517
Balance 1 January 2023 (restated(1)) 5,400 151,650 (329) 131 12,430 10,141 86,094 265,517
Issue of shares 13 4 34 - - - - - 38
Dividend paid 8 - - - - - - (9,592) (9,592)
Share options charge (including deferred tax) - - - - - 1,018 - 1,018
Transactions with owners 4 34 - - - 1,018 (9,592) (8,536)
Loss for the year - - - - - - (33,136) (33,136)
Other comprehensive income
Interest rate swaps - cash flow hedge (net of deferred tax) - - - (1,328) - - - (1,328)
Foreign exchange forward contracts - cash flow hedge (net of deferred tax) - - - 375 - - - 375
Foreign exchange translation differences (net of deferred tax) - - - - (5,019) - - (5,019)
Total comprehensive deficit for the year - - - (953) (5,019) - (33,136) (39,108)
Balance 31 December 2023 5,404 151,684 (329) (822) 7,411 11,159 43,366 217,873
1 See note 2 for an explanation and analysis of the prior year
restatement in respect of 31 December 2022.
CONSOLIDATED CASH FLOW STATEMENT
Note Year ended Year ended
31 December 2023 £000s 31 December 2022
£000s
Cash flows from operating activities
Cash generated from operations 14 36,934 24,929
Tax paid (5,524) (3,957)
Cash flows from operating activities 31,410 20,972
Investing activities
Acquisitions and deferred consideration (222) (16,618)
Purchase of intangibles - (249)
Purchase of property, plant and equipment (696) (358)
Proceeds from reimbursement of property costs - 200
Net cash used in investing activities (918) (17,025)
Financing activities
Interest paid and similar charges (9,433) (4,804)
Capital lease payments (867) (961)
Proceeds from exercise of share options 37 341
Dividend paid 8 (9,592) (9,116)
Loan issue costs (1,338) -
Proceeds from borrowings - 14,925
Repayment of borrowings (18,000) (1,261)
Net cash provided used in financing activities (39,193) (876)
Net movement in cash and cash equivalents (8,701) 3,071
Cash and cash equivalents at 1 January 31,714 29,061
Exchange losses on cash and cash equivalents (577) (418)
Cash and cash equivalents at 31 December 22,436 31,714
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
1. General information
Alliance Pharma plc ('the Company') and its subsidiaries (together "the
Group") acquire, market and distribute pharmaceutical and other medical
products. The Company is a public limited company, limited by shares,
registered, incorporated and domiciled in England and Wales in the UK. The
address of its registered office is Avonbridge House, Bath Road, Chippenham,
Wiltshire, SN15 2BB. The Company is listed on the AIM stock exchange.
The financial information set out in the announcement does not constitute the
Group's statutory accounts for the year ended 31 December 2023 or 31 December
2022. The auditors reported on those accounts and their report was (i)
unqualified, (ii) did not include references to any matters to which the
auditors drew attention by way of emphasis without qualifying their report and
(iii) did not contain statements under section 498 (2) or (3) of the Companies
Act 2006. The statutory accounts for the year ended 31 December 2023 have not
yet been delivered to the Registrar of Companies.
Going concern
On 15 August 2023, the Group agreed a new £150.0m fully Revolving Credit
Facility ("RCF"), together with a £65.0m Accordion. The facility was agreed
with its existing syndicate of lenders, replacing the previous RCF which ran
through to July 2024. This new facility is available until August 2026, with
two further one-year extension options.
The RCF is drawn in short- to medium-term tranches of debt which are repayable
within 12 months of draw-down. Under the terms of the facility agreement, the
lenders are obliged to revolve maturing loans and the Group is not obliged to
make any loan repayments, provided certain conditions are met, including
covenant compliance. Consequently, the Directors have presented the RCF as a
non-current liability.
The Directors have prepared cash flow forecasts for a period of 12 months from
the date of approval of these financial statements (the going concern period)
and these forecasts indicate that the Group will have sufficient funds, given
the RCF financing available, to meet its liabilities as they fall due for that
period.
Also, the Directors have considered severe but plausible downside scenarios,
including a scenario that models a 25% reduction in the Group's gross profit
in Q4 2024. Even under this severe but plausible downside scenario, forecasts
indicate that the Group will have sufficient funds to meet its liabilities as
they fall due, and will continue to comply with its loan covenants throughout
the forecast period. The Directors also considered a reverse stress test
scenario which indicates that a decline in monthly EBITDA against forecast
from July 2024 of over 30% would be needed to result in a breach of loan
covenants. The Directors consider this remote. In addition, there are
mitigating actions that Management can take in order to maintain covenant
compliance in even more extreme downside scenarios.
Consequently, the Directors consider that it is highly unlikely it would be
unable to exercise its right to roll over the debt and are confident that the
Group will have sufficient funds to continue to meet its liabilities as they
fall due for at least 12 months from the date of approval of the financial
statements. The Directors have, therefore, determined it is appropriate to
adopt the going concern basis in preparing the financial statements.
2. Prior year restatement
Amberen
The impairment review undertaken for Amberen as at 31 December 2023 identified
errors in the valuation model used for the prior year impairment assessment,
the correction of which requires a prior year restatement as at 31 December
2022.
This adjustment is regarded as an error in the impairment review performed as
at 31 December 2022, rather than a change in estimate, as the model did not
include information that was available when the financial statements were
authorised for issue and which could reasonably be expected to have been
obtained and taken into account in the Directors' assessment of impairment.
Due to the materiality of this error, the carrying value of the Amberen
intangible asset and goodwill have been restated as at 31 December 2022.
The error arises from a combination of information that was available or could
reasonably be expected to have been obtained at 31 December 2022, and prior to
the date when the financial statements were authorised for issue, in relation
to cash flow assumptions, together with mechanical and methodology errors
within the model. This included errors within key assumptions, including
short-term revenue growth rates, short-term cost of sales growth rates and
terminal value marketing spend. In addition to this, there were errors
relating to long term growth rates and warehouse and distribution costs. Under
IAS 36 the valuation methodology should also have reflected the fair value
less costs of disposal, including tax benefits that are not entity specific,
since that was higher than the value in use.
Following adjustment for the net impact of these corrections, the impairment
charge and associated deferred tax credit for Amberen in the prior year would
have totalled £27.6m for the year ended 31 December 2022, compared to the
impairment charge of £12.0m previously recognised. This prior year adjustment
of £15.6m (net of deferred tax) comprises impairment of goodwill of £5.0m,
impairment of brand intangible asset of £14.9m and deferred tax credit of
£4.3m and has been written off to the consolidated income statement for the
year ended 31 December 2022. We have also considered the impact on the 2022
opening position, and concluded the reported goodwill and intangible asset
figures for 31 December 2021 are free from material error.
Other intangible assets
The impairment reviews undertaken for other brand goodwill and intangible
assets as at 31 December 2023 identified errors in the valuation models used
in the prior year impairment assessment, the correction of which requires a
prior year restatement as at 31 December 2022.
Errors in these other brand goodwill and intangible assets arose in relation
to information that was available or could reasonably be expected to have been
obtained at 31 December 2022, and prior to the date when the financial
statements were authorised for issue, in relation to cash flow assumptions.
Following adjustment for the net impact of these corrections, the impairment
charge in the prior year would have been £8.3m higher and the related
deferred tax credit £1.8m higher for the year ended 31 December 2022 (net
impact £6.5m). This prior year adjustment has been written off to the
consolidated income statement for the year ended 31 December 2022. We have
also considered the impact on the 2022 opening position, and concluded the
reported intangible asset figures for 31 December 2021 are free from material
error.
The £8.3m impairment charge impact is summarised by brand below:
Brand Impact of
restatement
£000s
Flamma 3,444
Opus Range 1,849
Prochlorperazine 1,100
Others 1,912
Total 8,305
A summary of the impact of the prior year adjustment on the consolidated
income statement and consolidated statement of comprehensive income for the
year ended 31 December 2022 and consolidated balance sheet as at 31 December
2022 is as follows:
Impact on the consolidated income statement
Year ended 31 December 2022
As previously reported Amberen Other intangible assets Restated
£000s £000s £000s £000s
Gross profit 101,683 - - 101,683
Operating expenses
Administration and marketing expenses (63,586) - - (63,586)
Amortisation of intangible assets (9,202) - - (9,202)
Impairment of goodwill and intangible assets (18,234) (19,953) (8,305) (46,492)
Share-based employee remuneration (92) - - (92)
Operating profit/(loss) 10,569 (19,953) (8,305) (17,689)
Total finance costs (5,361) - - (5,361)
Profit/(loss) before taxation 5,208 (19,953) (8,305) (23,050)
Taxation (4,272) 4,343 1,771 1,842
Profit/(loss) for the period attributable to equity shareholders 936 (15,610) (6,534) (21,208)
Earnings per share
Impact on Basic (pence) 0.17 (2.88) (1.22) (3.93)
Impact on Diluted (pence) 0.17 (2.88) (1.22) (3.93)
Impact on the consolidated statement of comprehensive income
Year ended 31 December 2022
As previously reported Amberen Other intangible assets Restated
£000s £000s £000s £000s
Loss for the year 936 (15,610) (6,534) (21,208)
Other comprehensive income 12,932 - - 12,932
Total comprehensive income/(deficit) for the year 13,868 (15,610) (6,534) (8,276)
Impact on the consolidated balance sheet
As at 31 December 2022
As previously reported Amberen Other intangible assets Restated
£000s £000s £000s £000s
Assets
Goodwill and intangible assets 421,630 (19,953) (8,305) 393,372
Other assets 115,781 - - 115,781
Total assets 537,411 (19,953) (8,305) 509,153
Equity
Retained earnings 108,238 (15,610) (6,534) 86,094
Other equity 179,423 - - 179,423
Total equity 287,661 (15,610) (6,534) 265,517
Liabilities
Deferred tax liability 65,569 (4,343) (1,771) 59,455
Other liabilities 184,181 - - 184,181
Total liabilities 249,750 (4,343) (1,771) 243,636
Total equity and liabilities 537,411 (19,953) (8,305) 509,153
Impact on the consolidated cash flow statement
There is no impact on cash generated from operations and the subsequent
consolidated cash flow statement. The impact on the operating cash
reconciliation is shown below.
Year ended 31 December 2022
As previously reported Amberen Other intangible assets Restated
£000s £000s £000s £000s
Profit/(loss) for the year 936 (15,610) (6,534) (21,208)
Taxation 4,272 (4,343) (1,771) (1,842)
Amortisation and impairment of intangibles 27,436 19,953 8,305 55,694
Other movements (7,715) - - (7,715)
Cash generated from operations 24,929 - - 24,929
3. Revenue and segmental information
The Group's reportable segments are the strategic business units that
represent different parts of the overall product portfolio, these being
Consumer Healthcare brands and Prescription Medicines. The business units are
managed separately as each portfolio requires different expertise to deliver
the corresponding product offering as a result of the inherently different
characteristics of these product types.
Operating segments reflect the way in which information is presented to and
reviewed by the Chief Operating Decision Maker ('the CODM') for the purposes
of making strategic decisions and assessing Group-wide performance. The
Group's Board of Directors ('the Board') is the Group's CODM. The Group
evaluates performance of the operational segments on the basis of revenue and
gross profit. Underlying gross profit is consistent with that reported on a
statutory basis. Other than intangible assets, assets and liabilities are
reported to the Board at Group level and are not separated segmentally.
Revenue information By Brand Year ended Year ended
31 December 2023 31 December 2022
£000s £000s
Consumer Healthcare brands:
Kelo-Cote franchise 63,209 50,039
Amberen 11,218 14,909
Nizoral * 19,648 17,231
MacuShield 9,199 9,080
Aloclair 7,959 9,272
Vamousse 4,407 4,602
Other consumer healthcare brands 18,692 15,489
Total revenue - Consumer healthcare brands 134,332 120,622
Prescription Medicines:
Hydromol 9,042 8,070
Flamma Franchise 5,990 6,548
Forceval 6,606 5,872
Other prescription medicines 24,710 26,304
Total revenue - Prescription medicines 46,348 46,794
Total Revenue 180,680 167,416
* Nizoral statutory revenue includes revenue generated on an agency basis.
Nizoral revenue presented on a see-through income statement basis is included
as an alternative performance measure in note 15.
Revenue information by Geography
Classification by geography is based on customer location.
Revenue information By Geography Year ended Year ended
31 December 2023 31 December 2022
£000s £000s
Europe, Middle East and Africa (EMEA) 79,199 78,920
Asia Pacific and China (APAC) 72,422 59,186
Americas (AMER) 29,059 29,310
Total Revenue 180,680 167,416
Operating Segment Results
Year ended 31 December 2023
Consumer Healthcare Prescription Medicines
£000s £000s Total
£'000s
Revenue 134,332 46,348 180,680
Cost of Sales (51,605) (24,056) (75,661)
Gross Profit 82,727 22,292 105,019
Year ended 31 December 2022
Consumer Healthcare Prescription Medicines
£000s £000s Total
£'000s
Revenue 120,622 46,794 167,416
Cost of Sales (43,019) (22,714) (65,733)
Gross Profit 77,603 24,080 101,683
Major customers
The net revenues from the Group's largest customers in the year ended 31
December 2023 (customers separately comprising more than 10% of the Group's
revenue) are as follows.
Year ended Year ended
31 December 2023 31 December 2022
£000s £000s
Major customer 1 (Consumer healthcare sales in APAC) 21,201 17,898
Major customer 2 (Consumer healthcare sales in APAC) 20,200 14,342
4. Profit before taxation
Profit before taxation is stated after charging/(crediting): Year ended Year ended
31 December 2023 31 December 2022
£000 (restated(1))
£000
Amounts receivable by the Company's auditor and its associates in respect of
- The audit of these financial statements 1,388 480
- The audit of the financial statements of subsidiaries 269 220
- Other assurance services (covenant compliance and other regulatory 21 17
compliance services)
Amortisation of intangible assets 9,101 9,202
Impairment of intangible assets 79,252 46,492
CMA provision release (7,900) -
Share options charge 889 92
Depreciation of plant, property and equipment 1,225 1,558
Loss/(gain) on foreign exchange transactions 480 (56)
1 See note 2 for an explanation and analysis of the prior year
restatement in respect of 31 December 2022.
5. Non-underlying items
The Group presents a number of non-IFRS measures which exclude the impact of
significant non-underlying items. This is to provide investors with a view of
the measures used by management to monitor the ongoing business performance,
and can exclude items such as: amortisation and impairment of acquired
intangible assets; restructuring costs; significant gains or losses on
disposal; one-off project costs; remeasurement and accounting for the passage
of time in respect of contingent considerations; and the revaluation of
deferred tax balances following substantial tax legislation changes. This
assessment requires judgement to be applied by the Directors as to which
transactions are non-underlying and whether this classification enhances the
understanding of the users of the financial statements.
Year ended Year ended
31 December 2023 31 December 2022
£000s (restated(1))
£000s
Amortisation of intangible assets (7,198) (7,238)
Impairment of goodwill and intangible assets (79,252) (46,492)
CMA provision release 7,900 -
Other (1,753) 369
Total non-underlying items before taxation (80,303) (53,361)
Taxation on non-underlying items 22,579 9,076
Total non-underlying items after taxation (57,724) (44,285)
1 See note 2 for an explanation and analysis of the prior year
restatement in respect of 31 December 2022.
Amortisation of intangible assets
The amortisation costs of acquired intangible assets are a significant item
considered unrelated to trading performance, and as such have been presented
as non-underlying. This classification is in line with the majority of peer
companies of the Group.
Impairment of goodwill and intangible assets
As a result of the impairment review for the year ended 31 December 2023, the
following impairment charges were identified:
· Goodwill and Consumer Healthcare brand relating to Amberen™
impaired by £46.4m, gross of £13.5m deferred tax credit (2022: £31.9m
restated) following reassessment of the expected future cash flows generated,
taking into account past performance, contractual arrangements and cost
estimates, including marketing spend, and a higher cost of capital due to the
overall increase in borrowing rates.
· Consumer Healthcare brand relating to Nizoral impaired by £10.3m
(2022: £nil), following reassessment of the expected future cash flows
generated, taking into account past performance, contractual arrangements and
cost estimates, including marketing spend, and a higher cost of capital due to
the overall increase in borrowing rates.
· Following impairment indicators identified, Prescription Medicine
brand and distribution rights assets with a finite life and associated
goodwill have been impaired by £16.2m (2022: £13.1m restated) due to
viability of future sales in the current market, increasing costs resulting
from changes in the regulatory framework, and a higher cost of capital due to
the overall increase in borrowing rates.
· Following impairment indicators identified, Other Consumer
Healthcare brand and distribution rights assets with a finite life have been
impaired by £6.3m (2022: £1.5m restated) due to viability of future sales in
the current market.
The impairment losses are significant items resulting from changes in
assumptions for future recoverable amounts. As such they are considered
unrelated to trading performance and have been presented as non-underlying,
consistent with the treatment in prior years.
CMA provision release
The provision of £7.9m relating to the CMA Infringement Decision has been
released following the announcement that the Group's appeal had been upheld.
This is detailed further in note 12. This is considered unrelated to 2023
trading performance, and has been presented as non-underlying.
Other non-underlying items
Other non-underlying costs relate to one-off legal and professional costs.
These costs are significant items considered unrelated to trading performance,
and as such have been presented as non-underlying.
6. Finance income and expense
Year ended Year ended
31 December 2023 31 December 2022 £000s
£000s
Finance expense
Interest payable on loans and overdrafts (9,418) (4,668)
Amortised finance issue costs (461) (648)
Interest on lease liabilities (112) (117)
Net exchange losses (480) -
(10,471) (5,433)
Finance income
Interest income 113 16
Net exchange gains - 56
113 72
Finance expense - net (10,358) (5,361)
7. Taxation
Analysis of the charge for the period is as follows:
Year ended Year ended
31 December 2023 31 December 2022
£000s (restated(1))
£000s
Corporation tax
In respect of current period 4,810 5,669
Adjustment in respect of prior periods 193 110
5,003 5,779
Deferred tax
Origination and reversal of temporary differences (20,662) (6,951)
Adjustment in respect of prior periods (5) (670)
Taxation (15,664) (1,842)
The difference between the total tax charge shown above and the amount
calculated by applying the standard rate of UK corporation tax to the profit
before tax is as follows:
Year ended Year ended
31 December 2023 31 December 2022
£000s (restated(1))
£000s
Loss before taxation (48,800) (23,050)
Loss before taxation multiplied by the blended standard rate of corporation (11,468) (4,380)
tax in the United Kingdom of 23.50% (2022: 19.00%)
Effect of:
Non-deductible expenses (587) 3,777
Adjustment in respect of prior periods 188 (560)
Differences between current and deferred tax rates (2,963) (2,043)
Differing tax rates on overseas earnings (274) (266)
Unrecognised losses (13) (6)
Foreign exchange (869) 1,427
Share options 262 315
Movement in other tax provisions 60 (106)
Total taxation (15,664) (1,842)
1 See note 2 for an explanation and analysis of the prior year
restatement in respect of 31 December 2022.
A change to UK corporation tax was announced in the Budget on 3 March 2021,
increasing the main rate of UK corporation tax from 19% to 25% with effect
from 1 April 2023.
Non-deductible expenses primarily relate to the release of the provision for
the CMA fine, offset by the impairment/amortisation of certain intangible
assets which do not qualify for tax relief and so represent a permanent
difference.
The Group has calculated 'underlying effective tax rate' as an alternative
performance measure in note 15.
8. Dividends
Year ended 31 December 2023
Pence / share £'000s
Amounts recognised as distributions to owners in 2023
Interim dividend for the 2022 financial year 0.592 3,197
Final dividend for the 2022 financial year 1.184 6,395
Total dividend 1.776 9,592
Year ended 31 December 2022
Pence / share £'000s
Amounts recognised as distributions to owners in 2022
Interim dividend for the 2021 financial year 0.563 3,030
Final dividend for the 2021 financial year 1.128 6,086
Total dividend 1.691 9,116
9. Earnings per share (EPS)
Basic EPS is calculated by dividing the earnings attributable to Ordinary
shareholders by the weighted average number of Ordinary shares in issue during
the year. For diluted EPS, the weighted average number of Ordinary shares in
issue is adjusted to assume conversion of all dilutive potential Ordinary
shares. There are no differences in earnings used to calculate each measure as
a result of the dilutive employee share options.
A reconciliation of the weighted average number of Ordinary shares used in the
measures is given below:
Year ended Year ended
31 December 2023 31 December 2022
Basic EPS calculation 540,144,706 539,480,306
Employee share options 1,210,980 5,800,317
Diluted EPS calculation 541,355,686 545,280,623
As the Group made a reported loss in the current and prior periods, the
dilutive potential Ordinary shares have not been included in the calculation
for Diluted EPS as the exercise of share options would have the effect of
reducing the loss per share, and therefore is not dilutive. The underlying
basic EPS is intended to demonstrate recurring elements of the results of the
Group before non-underlying items. A reconciliation of the earnings used in
the different measures is given below:
Year ended Year ended
31 December 2023 31 December 2022
£000s (restated(1))
£000s
Earnings for basic EPS (33,136) (21,208)
Non-underlying items (note 5) 57,724 44,285
Earnings for underlying basic EPS 24,588 23,077
The resulting EPS measures are:
Year ended Year ended
31 December 2023 31 December 2022
Pence (restated(1))
Pence
Basic EPS (6.13) (3.93)
Diluted EPS (6.13) (3.93)
Underlying basic EPS 4.55 4.28
Underlying diluted EPS 4.54 4.23
1 See note 2 for an explanation and analysis of the prior year
restatement in respect of 31 December 2022.
10. Goodwill and intangible assets
Goodwill Consumer Healthcare brands and distribution rights Prescription Medicines brands and distribution rights Computer software Total
£000s £000s £000s £000s £000s
Cost
At 1 January 2023 34,626 291,762 152,691 15,292 494,371
Exchange adjustments (211) (4,410) (394) (26) (5,041)
At 31 December 2023 34,415 287,352 152,297 15,266 489,330
Amortisation and impairment
At 1 January 2023 (as previously reported) 13,096 9,575 46,744 3,326 72,741
Impact of restatement 6,832 15,310 6,116 - 28,258
At 1 January 2023 (restated(1)) 19,928 24,885 52,860 3,326 100,999
Non-underlying impairment for the year - 63,010 16,242 - 79,252
Non-underlying amortisation for the year - 438 6,760 - 7,198
Underlying amortisation for the year - - - 1,903 1,903
At 31 December 2023 19,928 88,333 75,862 5,229 189,352
Net book amount
At 31 December 2023 14,487 199,019 76,435 10,037 299,978
At 1 January 2023 (as previously reported) 21,530 282,187 105,947 11,966 421,630
Impact of restatement (6,832) (15,310) (6,116) - (28,258)
At 1 January 2023 (restated(1)) 14,698 266,877 99,831 11,966 393,372
1 See note 2 for an explanation and analysis of the prior year
restatement in respect of 31 December 2022.
11. Loans and borrowings
On 15 August 2023, the Group agreed a new £150.0m fully Revolving Credit
Facility, together with a £65.0m Accordion. The facility was agreed with its
existing syndicate of lenders, replacing the previous RCF which ran through to
July 2024. This new facility is available until August 2026, with two further
one-year extension options. This has been classified as a non-current
liability. The bank facility is secured by a fixed and floating charge over
the Company's and Group's assets registered with Companies House. The loan
commitments are all 'investment grade' as at the balance sheet date. Pursuant
to its terms, the Group is obliged to deliver a copy of its audited annual
financial statements to the lenders within 120 days of the year-end. In light
of the potential delays caused by the audit process, the Group sought and
received an extension from the lenders to this obligation, giving the Group
until 21 June 2024 to deliver a copy of its audited annual financial
statements to the lenders, and therefore fulfilling its obligations.
Non-current 31 December 2023 31 December 2022
£000s £000s
Bank loans:
Secured 114,844 134,065
Finance issue costs (1,198) (321)
113,646 133,744
Movement in loans and borrowings 31 December 2023 31 December 2022
£000s £000s
At 1 January 133,744 116,060
Net (payments)/receipts from borrowing (18,000) 13,664
Additional prepaid arrangement fees (1,338) -
Amortisation of prepaid arrangement fees 461 648
Exchange movements * (1,221) 3,372
At 31 December 113,646 133,744
* Exchange movements on loans and borrowings with effective net investment
hedges are reported in other comprehensive income and accumulated in the
translation reserve.
12. Provisions
CMA provision Restructuring provision Onerous contract provision Total
£000s £000s £000s £000s
At 1 January 2023 7,900 522 - 8,422
Charge to income statement (7,900) - 462 (7,438)
Provisions utilised during the year - (338) - (338)
Exchange differences - (9) - (9)
At 31 December 2023 - 175 462 637
On 23 May 2019, the UK's Competition and Markets Authority ("CMA") issued a
Statement of Objection alleging an anti-competitive agreement involving the
Group and certain other pharmaceutical Companies in relation to the sale of
prescription prochlorperazine.
On 3 February 2022, the CMA announced its finding that four Companies,
including Alliance, had infringed competition law ("the Infringement
Decision"). The Alliance Board fundamentally disagreed with the CMA's finding
and appealed the Infringement Decision at the Competition Appeal Tribunal
(CAT), with those proceedings closing on 4 August 2023.
In a unanimous judgment published on 23 May 2024, the CAT upheld Alliance's
appeal, finding that there was no agreement to exclude competition from the
market and no breach of competition law. The CMA's decision and £7.9m penalty
imposed on Alliance have been set aside. As such, the £7.9m provision which
was recorded at 31 December 2021 has now been released.
The restructuring provision of £0.2m at 31 December 2023 (2022: £0.5m)
relates to the balance of restructuring costs in relation to the closure of
the Milan office following a change to the operating model for our
direct-to-market business in Italy in 2022.
The onerous contract provision of £0.5m at 31 December 2023 (2022: £nil)
relates to a contractual commitment to purchase inventory for which it is
uncertain that the necessary licence for sale will be granted.
The remaining related outflows are expected to occur in the year ending 31
December 2024.
13. Share capital
Allotted, called up and fully paid
No. of shares £000s
At 1 January 2022 - ordinary shares of 1p each 538,225,524 5,382
Issued during the year 1,769,562 18
At 31 December 2022 - ordinary shares of 1p each 539,995,086 5,400
Issued during the year 394,994 4
At 31 December 2023 - ordinary shares of 1p each 540,390,080 5,404
Between 1 January 2023 and 31 December 2023 394,994 shares were issued on the
exercise of employee share options (2022: 1,769,562).
The holders of Ordinary shares are entitled to receive dividends as declared
from time to time and are entitled to one vote per share at meetings of the
Company.
Managing Capital
Our objective in managing the business's capital structure is to ensure that
the Group has the financial capacity, liquidity and flexibility to support the
existing business and to fund acquisition opportunities as they arise.
The capital structure of the Group consists of net bank debt and shareholders'
equity. At 31 December 2023 net debt was £91.2m (2022: £102.0m) (note 15),
whilst shareholders' equity was £217.9m (2022: 265.5m restated).
The business is profitable and cash-generative. The main financial covenants
applying to bank debt are that leverage (the ratio of net bank debt to EBITDA)
should not exceed 3.0 times, and interest cover (the ratio of EBITDA to
finance charges) should not be less than 4.0 times. The Group complied with
both of these covenants in 2023 and 2022.
Smaller acquisitions are typically financed using bank debt, while larger
acquisitions typically involve a combination of bank debt and additional
equity. The mixture of debt and equity is varied, taking into account the
desire to maximise the shareholder returns while keeping leverage at
comfortable levels..
14. Cash generated from operations
Year ended Year ended
31 December 31 December
2023 2022
£000s (restated(1))
£000s
Loss for the year (33,136) (21,208)
Taxation (15,664) (1,842)
Interest payable and similar charges 9,991 5,433
Interest income (113) (16)
Unrealised foreign exchange gain (423) (56)
Depreciation of property, plant and equipment 1,225 1,558
Amortisation and impairment of intangibles 88,353 55,694
Change in inventories (1,859) (2,209)
Change in trade and other receivables (6,481) (18,720)
Change in trade and other payables 1,937 7,281
Change in provisions (7,785) (1,078)
Share-based employee remuneration 889 92
Cash generated from operations 36,934 24,929
1 See note 2 for an explanation and analysis of the prior year
restatement in respect of 31 December 2022.
15. Alternative performance measures
The performance of the Group is assessed using Alternative Performance
Measures ('APMs'). The Group's results are presented both before and after
non-underlying items. Adjusted profitability measures are presented excluding
non-underlying items as we believe this provides both management and investors
with useful additional information about the Group's performance and aids a
more effective comparison of the Group's trading performance from one period
to the next and with similar businesses. In addition, the Group's results are
described using certain other measures that are not defined under IFRS and are
therefore considered to be APMs. These measures are used by management to
monitor ongoing business performance against both shorter-term budgets and
forecasts but also against the Group's longer-term strategic plans. APMs used
to explain and monitor Group performance are as follows:
Measure Definition Reconciliation to GAAP measure
Underlying Earnings before interest, tax and non-underlying items (EBIT also referred to Note A below
as underlying operating profit), then depreciation, amortisation and
EBIT and EBITDA impairment (EBITDA).
Calculated by taking profit before tax and financing costs, excluding
non-underlying items and adding back depreciation and amortisation.
EBITDA margin is calculated using see-though revenue.
Free cash flow Free cash flow is defined as cash generated from operations less cash payments Note B below
made for interest payable and similar charges, capital expenditure and tax.
Net debt Net debt is defined as the group's gross bank debt position net of finance Note C below
issue costs and cash.
Underlying effective tax rate Underlying effective tax rate is calculated by dividing total taxation for the Note D below
year less impact of tax rate changes and non-underlying charges, by the
underlying profit before tax for the year.
Operating costs Defined as underlying administration and marketing expenses, excluding Note E below
depreciation and underlying amortisation charges.
See-through Under the terms of the transitional services agreement with certain supply Note F below
partners, Alliance receives the benefit of the net profit on sales of Nizoral
income statement from the date of acquisition up until the product licences in the Asia-Pacific
territories transfer to Alliance. The net product margin is recognised as part
of statutory revenue.
The see-through income statement recognises the underlying sales and cost of
sales which give rise to the net product margin, as management consider this
to be a more meaningful representation of the underlying performance of the
business, and to reflect the way in which it is managed
Constant exchange rate (CER) revenue Like-for-like revenue, impact of acquisitions and total see-through revenue Note G below
stated so that the portion denominated in non-sterling currencies is
retranslated using foreign exchange rates from the previous financial year.
Like-for-like Like-for-like figures compare financial results in one period with those for Note G below
the previous period, excluding the impact of acquisitions and disposals made
in either period. For 2023, like-for-like revenue excludes the impact of
ScarAway™ and Kelo-Cote™ US generated in the first three months of 2023
following the acquisition in March 2022.
A. Underlying EBIT and EBITDA
Reconciliation of Underlying EBIT and EBITDA Year Ended 31 December 2023 Year Ended 31 December 2022
£000s (restated(1))
£000s
Loss before tax (48,800) (23,050)
Non-underlying items (note 5) 80,303 53,361
Underlying PBT 31,503 30,311
Finance costs (note 6) 10,358 5,361
Underlying EBIT 41,861 35,672
Depreciation 1,225 1,558
Underlying amortisation 1,903 1,964
Underlying EBITDA 44,989 39,194
Underlying EBITDA margin 24.6% 22.8%
1 See note 2 for an explanation and analysis of the prior year
restatement in respect of 31 December 2022.
B. Free cash flow
Reconciliation of free cash flow Year Ended Year Ended
31 December 2023
31 December 2022
£000s £000s
Cash generated from operations (note 14) 36,934 24,929
Interest payable and similar charges (9,433) (4,804)
Capital expenditure (696) (407)
Tax paid (5,524) (3,957)
Free cash flow 21,281 15,761
C. Net debt
Reconciliation of net debt Note 31 December 2023 31 December 2022
£000s £000s
Loans and borrowings - non-current 11 (113,646) (133,744)
Cash and cash equivalents 14 22,436 31,714
Net debt (91,210) (102,030)
D. Underlying effective tax rate
Reconciliation of adjusted underlying effective tax rate Year Ended Year Ended
31 December 2023
31 December 2022
£000s (restated(1))
£000s
Total taxation credit for the year 15,664 1,842
Non-underlying tax credit (22,579) (9,076)
Underlying taxation charge for the year (6,915) (7,234)
Underlying profit before tax for the year 31,503 30,311
Underlying effective tax rate 22.0% 23.9%
1 See note 2 for an explanation and analysis of the prior year
restatement in respect of 31 December 2022.
E. Operating costs
Reconciliation of operating costs Year Ended Year Ended
31 December 2023
31 December 2022
£000s £000s
Total administration and marketing expenses (54,219) (63,586)
Non-underlying administration and marketing expenses (6,147) (369)
Depreciation 1,225 1,558
Operating costs (59,141) (62,397)
F. See-through income statement
2023 statutory values See-through adjustment 2023 see-through values
£000s £000s £000s
Revenue - Consumer healthcare brands 134,332 2,032 136,364
Revenue - Prescription Medicines 46,348 - 46,348
Total Revenue 180,680 2,032 182,712
Cost of sales (75,661) (2,032) (77,693)
Gross profit 105,019 - 105,019
Gross profit margin 58.1% - 57.5%
2022 statutory values See-through adjustment 2022 see-through values
£000s £000s £000s
Revenue - Consumer healthcare brands 120,622 4,594 125,216
Revenue - Prescription Medicines 46,794 - 46,794
Total Revenue 167,416 4,594 172,010
Cost of sales (65,733) (4,594) (70,327)
Gross profit 101,683 - 101,683
Gross profit margin 60.7% - 59.1%
There is no impact from the see-through adjustment on income statement lines
below gross profit.
G. Constant exchange rate revenue
See-through revenue 2023 Foreign 2023
exchange
CER
£000s
impact
£000s
£000s
LFL see-through revenue - Consumer Healthcare brands 133,768 2,606 136,374
LFL see-through revenue - Prescription Medicines 46,348 (233) 46,115
Like-for-like see-through revenue 180,116 2,373 182,489
Impact of acquisitions (ScarAway & US Kelo-Cote) 2,596 (245) 2,351
See-through revenue (Note F) 182,712 2,128 184,840
Statutory revenue 2023 Foreign 2023
exchange
CER
£000s
impact
£000s
£000s
LFL statutory revenue - Consumer Healthcare brands 131,736 2,606 134,342
LFL statutory revenue - Prescription Medicines 46,348 (233) 46,115
Like-for-like statutory revenue 178,084 2,373 180,457
Impact of acquisitions (ScarAway & US Kelo-Cote) 2,596 (245) 2,351
Statutory revenue (Note F) 180,680 2,128 182,808
Peter
Butterfield
Andrew Franklin
Director
Chief Financial Officer
18 June
2024
18 June 2024
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