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Sinclair Pharma expects return to profit after revenues jump 20%
AIM-listed speciality pharmaceutical group Sinclair Pharma grew revenues by a fifth over the twelve months ended 31 December, as the effort put toward restructuring its European operations began to bear fruit.
Sales for Sinclair's trading year rose from £37.8m to £45.3m, or £43.2m on a constant currency basis, representing headline growth of 20%, as revenues of £25.2m over the second half bested the pace seen during the first six months of 2017 by 25%.
However, the group anticipated that it would only deliver a modest EBITDA profit for the year as a whole after continued investment to support the launch of its Silhouette InstaLift product in the US dragged its North American business unit to an adjusted EBITDA loss of nearly £1m.
Profitability throughout the year culminated in "notably strong" fourth quarter trading in Europe and Brazil, leading management to decide to take advantage of the strength in its ex-US business to reduce sales of Silhouette and Ellansé to distributors in the Middle East and South Korea, focusing instead on creating its own affiliates and joint-ventures in the aforementioned geographies.
Chris Spooner, chief executive officer, said, "Revenue growth in excess of 80% over the last two years will, as expected, return the Group to adjusted EBITDA profitability in 2017. Momentum in the business in the final quarter of 2017 was strong and whilst the re-order rate for US Silhouette Instalift is disappointing we are looking at a number of options to address this."
"The Board and I remain confident that 2018 will be another year of substantial revenue growth which will deliver further operating leverage," he added.
As of 1540 GMT, shares had advanced 6.98% to 23.00p.