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Interim Results

Vectura revenues jump 6.6%

06 September 2017 07:47

Vectura said revenues jumped 6.6% to £78.8m in the first half of 2017 (six months ended 30 September 2016: £73.9m).

Higher sales were driven by continued momentum of in-market sales of marketed products, resulting in recurring revenue up 26.1% to £71m (six months ended 30 September 2016: £56.3m)

FINANCIAL HIGHLIGHTS:

- In-market net sales of the eight key inhaled products for the rolling twelve months ended 30 June 2017 grew by 54.1% to over $2.3bn

- Non-recurring revenue of £7.8m down from £17.6m in the prior period due to lower milestones

- Revenue mix substantially improved with 90.1% coming from recurring sources, an increase of 13.9% (six months ended 30 September 2016: 76.2%)

- Adjusted EBITDA based on recurring revenue, which measures underlying profitability excluding the impact of milestones and other non-recurring revenue, grew 184.6% to £11.1m (six months to 30 September 2016: £3.9m)

- Cash of £90.5m at 30 June 2017 (31 December 2016: £92.5m) reflects £4.9m outflows for prior year tax (nine months ended 31 December 2016: £2.6m outflows). Full year cash will benefit from the receipt post-period of £4.1m of royalties and the $5m signing payment from Sandoz

The Board continues to expect higher overall like-for-like recurring revenue compared to the 2016 full year proforma level.

Within total recurring revenue, product supply and device sales are likely to be in line with the 2016 full year proforma, due to an element of customer destocking in the flutiform supply chain.

A detailed review of priorities for R&D programmes in 2017 has been undertaken and expenditure for the full year is now expected to be lower, at £60m - £70m, compared to the previous guidance range of £65m - £75m. The impact of these changes is expected to be broadly neutral at an earnings level.

Story provided by StockMarketWire.com

Related Company: VEC

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