Consort Medical plc (LSE: CSRT) (“Consort”, “Consort Medical” or the “Group”), a leading, global, single source drug and delivery device company, today announces its interim results for the six months ended 31 October 2018.
|Six months ended||H1 FY2019||H1 FY2018||Δ %||Δ %|
|£m||31 Oct 18||31 Oct 17||Reported||CER2|
|Adjusted Basic EPS3||31.3p||29.3p||6.8%|
|Profit before tax (PBT)||9.6||7.5||28.0%|
1Underlying amounts are Alternative Performance Measures (APMs) and these are defined in the APM section below. 2 CER – at constant exchange rates; H1 FY2018 actuals retranslated at the H1 FY2019 actual average rates. 3 Before special items of £9.4m (H1 FY2018: £10.4m) that include amortisation of acquired intangibles, impairment of assets and a one-off pension charge.
- Consort delivered underlying EBIT growth of 2.5% with revenue broadly in line with prior year
- Bespak grew revenue by 1.7% and underlying EBIT by 2.4% driven by a 30bps margin improvement
- Aesica revenue declined by 2.4% but underlying EBIT improved by 2.6% with a 40bps margin improvement from this time last year
- Underlying PBT increased by 6.1% leading to a higher adjusted basic EPS reflecting a lower pension finance charge and effective tax rate
- Net debt at £95.3m was in line with expectations (31 October 2017: £97.1m) with net debt to EBITDA at 1.6x
- Interim dividend increased by 2.2% to 7.60p
- Continued growth across our broad range of leading drug delivery devices with new customer funded investments being brought on-line
- Further metered-dose inhaler (MDI) valve volume growth with a broad range of customers and products that continues to grow the underlying business
- Delays in the expected approval date of Mylan’s Wixela® (generic Advair®) programme combined with their inventory build is anticipated to significantly reduce their near-term demand for our devices
- Cross divisional commercial agreement signed with Opiant Pharmaceuticals, Inc. combining Aesica and Bespak expertise to manufacture and fill the nasal delivery device, Unidose® Xtra
- Syrina® / Vapoursoft® auto-injector continues to generate significant interest although programme SYR075 is currently under review. Our major customer retains confidence in the potential for this technology
- Supplying MDI valves for the first asthma inhaler available without a prescription in the US
- Aesica’s overall performance reflected further growth in the German and Italian businesses offsetting lower API sales
- Aesica has secured a further contract and now has three customers using the semi-continuous processing line at the Queenborough facility
- Investments being made in Aesica oral, packaging and serialisation capabilities to support future growth and planned streamlining of the Group’s API activities
- The Group has renewed its bank facilities with a £200m, five year revolving credit facility and an uncommitted £80m accordion on improved term
Jonathan Glenn, Chief Executive Officer of Consort Medical, commented:
“Consort has delivered profit growth and improved margins in both divisions. Bespak has grown its respiratory business while Aesica margins and profits have improved. We are committed to driving continued growth in the business.
Due to the delay with Mylan in their Wixela® (generic Advair®) programme, the Board expects profit before tax for the current financial year to be adversely impacted by approximately £3m as compared to their previous forecast. Whilst the delay in approval of this programme and near-term anticipated negative impact on our business is disappointing, our view of the peak sales opportunity for the product remains unchanged.
Our growth strategy focussing on organic opportunities continues to deliver, as evidenced by the recently announced joint commercial agreement with Opiant on the Unidose® Xtra nasal device. We remain committed to investing in our research and development capabilities and have a growing and exciting pipeline that we are confident will drive strong long-term growth.
We also continue to assess acquisition opportunities that deliver additional growth and a broader offering through access to new geographic markets and complementary technologies and capabilities. The Board is confident of Consort’s future prospects supported by a robust financial position and a broad development pipeline.”