Sinclair Pharma : Interim Results 2018

Interim Results 2018

Sinclair Pharma plc (SPH.L), ('Sinclair', or the 'Group', or the 'Company') the international aesthetics company, today announces its unaudited interim results for the six months ended 30 June 2018.

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Revenue £21.3 million, headline growth of 6% with Ex-US revenues up 18% at constant currency.

Highlights

• Revenues increased 6% to £21.3 million (H1 2017: £20.1 million)
  • Silhouette Soft® sales increased 8% to £7.9 million (H1 2017: £7.3 million)
  • Ellansé® sales increased 19% to £5.0 million (H1 2017: £4.2 million)
  • Perfectha® sales increased 7% to £4.5 million (H1 2017: £4.2 million)
• Ex-US business grew strongly reporting 18% increase in revenues on a constant currency basis
• Regained US distribution rights for Silhouette InstaLift® following early termination of Thermi distribution agreement on 31 March
  
  • Sales between 1 April and 30 June 2018 of £0.8 million, ahead of management's expectations
• Successful formation of new direct sales operation in US
• Successful launch of Ellansé® in Brazil
• Adjusted EBITDA* loss of £1.6 million (H1 2017: loss of £1.7 million)
• Operating loss of £8.5 million (H1 2017: £5.5 million)
• New €23.0 million debt facility in place with Hayfin to fund investment in future growth
• Net debt at 30 June 2018 of £14.8 million

Post Period Highlights

• On 5 July 2018 announced that Sinclair had received an approach from China Grand Enterprises, Inc. and its affiliate company Huadong Medicine Co., Ltd
  
• On 28 August 2018 announced that an offer agreement had been entered into regarding the terms of a possible offer by Huadong Medicine Aesthetics Investment (Hong Kong) Limited ('Huadong') at a price of 32p per share
  
• On 18 September 2018 announced a recommended cash offer from Huadong at 32p per share valuing the entire issued and to be issued share capital of Sinclair at approximately £166.6 million

I am pleased with the performance of the Group in the first half of 2018 which has seen a consolidation of our direct presence in several key markets. Much was achieved during the period and the Group continues to see strong demand for its products. Sinclair is well placed to deliver strong second half sales, particularly in leading markets Brazil, South Korea and the US, and underpinned more generally by a growing global aesthetics market. Trading since the end of the interim period has shown significant growth over the same period in 2017. We remain confident of delivering strong sales growth for the full year ending 31 December 2018.

Chris Spooner, CEO

*Adjusted EBITDA defined as earnings before interest, tax, depreciation, amortisation, impairment, share-based payments, exceptional items and loss from discontinued operations.