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Interim Results

Consort pre-tax profits up

03 December 2015 07:52

Consort Medical - a leading, global, single source pharma services drug and delivery device company - reports a good first half performance across both businesses.

Revenue increased by £82.0m (152.9%) to £135.5m (H1 FY2015: £53.6m) from both organic growth and the addition of Aesica. Bespak delivered further strong growth of 5.4% to £56.5m (H1 FY2015: £53.6m), notably from MDI and Injectables. Following its acquisition in November 2014, Aesica contributed £79.1m of revenue for the first half of the financial year. EBIT before special items increased by 61.4% to £16.5m (H1 FY2015: £10.2m), at an operating margin of 12.1%. Bespak EBIT grew 13.1% to £11.5m (H1 FY2015: £10.2m), reflecting the business' strong operating leverage, with operating margin increasing 140 basis points to 20.4% (H1 FY2015: 19.0%). Aesica EBIT was £4.9m, reflecting an average Euro exchange rate to £1:1.39, at an operating margin of 6.2% (on a constant currency basis this represents a sequential increase of 100 basis points on H2 FY2015). Special items of £10.5m (H1 FY2015 £2.4m) included intangible amortisation, and planned reorganisation costs following the Aesica acquisition. Group profit before tax and special items increased by £4.4m (45.8%) to £14.1m (H1 FY2015: £9.7m). Adjusted EPS decreased slightly to 23.5p per share (H1 FY2015: 24.8p) as a result of an increase in shares in issue together with the additional finance costs from the financing of the Aesica acquisition; revenue is expected to be second half weighted. Basic GAAP EPS was lower at 12.1p per share (H1 FY2015: 22.2p4) due to the impact of the special items. Cash generated from operations increased by £8.2m to £19.3m (H1 FY2015: £11.1m).] EBITDA before special items grew £8.5m (65.7%) to £21.5m (H1 FY2015: £13.0m. Working capital (excluding the King Systems contingent consideration receivable of £1.0m) reduced £0.3m to £15.0m (H1 FY2015: £15.3m), which represents 5.6% of proforma sales (H1 FY2015: 14.9%). Capital expenditure was £8.3m (H1 FY2015: £7.4m) and included £5.1m from Bespak and £3.2m from Aesica as programme driven capex in Bespak continued, in particular the investment to equip production lines in preparation for the launch of DEV610.

Chief executive Jon Glenn said: "We have increased Group revenues by over £80m to £135m as we have bedded in the Aesica acquisition and delivered continued revenue and EBIT growth in both Bespak and Aesica in the first half of our financial year. The Aesica acquisition has deepened the capabilities of the Group, enabling cross-selling and a broader service offering, and we are encouraged by the number of new customer discussions that have arisen as a consequence. "We continue to focus on the organic development of our business, but may consider further inorganic opportunities where they present a compelling case for significantly enhancing sustainable shareholder value. We currently have a strong development pipeline across both parts of the business, and its fruition looks set to drive meaningful growth in the near to medium term. More specifically, following a good first half performance, the Board is confident of the Group meeting its expectations for the full year."

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