FINANCIAL HIGHLIGHTS
Strong organic performance at net revenue, gross profit and EBITDA with adjusted EPS up 20% to 65.6p (2019: 54.4p)
Cash flows materially improved in H2, with operating cash flow conversion of 123% in H2, equating to 72% for FY20 overall
Medium term organic net revenue growth guidance of 5 - 10% - with FY21 to be at the lower end due to impact of COVID-19 and expected launch of a generic Foscavir in the EU; Foundations in place for accelerated long term growth from FY22
Trading to date at this early stage of the current financial year is in line with market expectations, with impact of COVID-19 continuing but at improved levels from Q4
OPERATIONAL HIGHLIGHTS
Diversified business model adapted well to disruption caused by COVID-19 pandemic in Q4; synergies continuing to build between operations for longer term sustainable growth
Commercial Medicines - strong underlying performance across the portfolio, particularly from Unlicensed-to-Licensed (UL2L) developments and from licensing agreements in the
Significant in-licensing agreement for Erwinase signed with
Unlicensed Medicines - excellent growth in Global Access with weakness in Managed Access caused by both timing of programs starting and finishing, and COVID-19 disruption offset partly by record program win-rate
Clinical Services - robust top line performance driven by good growth in CSM and material contract win in CTS, against a challenging market backdrop due to COVID-19 disruption
'The year has presented challenges, but also new opportunities for growth as the Group has pivoted quickly to support efforts against the pandemic with several material new contract wins in Unlicensed Medicines and Clinical Services. There has been a strong underlying performance from Commercial Medicines despite headwinds facing Foscavir and COVID-19 related disruption to Proleukin. Looking forward, the impact from these headwinds is expected to reduce throughout FY21, before growth accelerates from further expected market share gains for our services businesses, the in-licensing of Erwinase and the revitalisation of Proleukin in new indications.
'We remain confident in achieving our objectives for FY21 - continuing to focus on both the unlicensed and licensed markets, and to demonstrate the synergistic link between the divisions. For the longer term, we have the pillars of the business in place for accelerated growth from FY22.'
Note
Group results on an adjusted basis exclude amortisation of acquired intangibles and products, and other non-underlying items relating to acquisitions.
Adjusted net revenue excludes Managed Access pass through revenue which varies each period dependent on the mix of programs. Adjusted net revenue is a new alternative performance measure of top line performance which is now used to manage the business as it eliminates volatility in reported revenue which can arise as a result of the mix of Managed Access Programs.
Adjusted gross profit excludes the impact of exceptional charges from write down of inventories.
Adjusted EBITDA includes the Group's share of EBITDA from its joint venture and is now shown after the adoption of IFRS 16. The Group implemented IFRS 16 'Leases' for the first time in FY20 using the modified retrospective approach. Comparatives have not been restated and therefore are not comparable to the prior year. Organic growth has been calculated excluding the impact of IFRS 16.
Constant currency growth is derived by applying the prior year's actual exchange rate to this year's result.
Year-on-year comparisons referred to as 'organic' are a measure of growth on a constant currency basis, excluding the impact of business and product acquisitions. Acquisitions completed in the previous financial year are included on a like-for-like basis including the results for the acquisition where it is included in the comparable historical period. Organic growth is presented to aid the reader's understanding of the underlying performance of the business. In previous reports, organic growth was calculated on a pro forma basis with the comparative period results before acquisition based on the vendors' previously reported results. The like-for-like basis now used has been necessary due to the limited reported financial information available for the products' results prior to acquisition by
Operating cash flow is net cash flow from operating activities before income taxes and interest.
Contact:
Tel: +44 (0) 1283 495010
Email: clinigen@instinctif.com
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