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Final audited results for the year ended 31 January 2017

Final audited results for the year ended 31 January 2017

 

Financial highlights

  • Revenue increased by 28% to £88.8m (2016: £69.2m).
  • Gross profit remained flat at £25.9m (2016: £25.9m).
  • Adjusted EBITDA of £10.1m (2016: £12.5m) with profitability run-rate increasing.
  • Statutory operating loss of £9.8m (2016: £7.5m profit) resulting from the decisive and one-off actions highlighted in the January trading update to simplify and focus the business.
  • Net debt reduced by almost half to £13.0m (2016: £24.6m).

Key developments

  • Transition to a more focused and simplified business strategy led by a new Board.
  • Group repositioned with a leaner operating structure and balance sheet aligned to simplified strategy.
  • Secured renewal of long-term exclusive contracts to supply unlicensed medicines to three of the largest wholesale and pharmacy chains in the UK.
  • Successfully launched a number of new products during the year and post year-end, including key unlicensed-to-licensed product Glycopyrronium Bromide Oral Solution.
  • Simplified product portfolio performing well and refocused pipeline progressing to plan.
  • Successful placing in November 2016, raising £15.0m (before expenses) to significantly reduce net debt.
  • Closure of loss-making business NuPharm Laboratories Limited.

Ian Johnson, Non-executive Chairman of Quantum, said: “This year’s results draw a line under the past performance of the Group. They mark the transition to a more focused and simplified business led by a new Board, and demonstrate real progress in executing our strategy. The Board is confident in the future prospects of the Group and we look forward to reporting on further strategic progress as we move forward.”

Chris Rigg, CEO of Quantum, said: “I am very pleased with the progress we have made to date. We have driven a step change in the profitability of the Niche Pharmaceuticals division in the second half by focusing on launching and commercialising products where we have a competitive advantage. In addition, the Group has cemented its position as the UK’s market-leading specials business by renewing exclusive contracts with three of the four main wholesale and pharmacy chains in the UK. Operating costs across the Group have been reduced and our net debt position at the year-end was lower than expected at £13.0m. We exited the financial year with a much improved profitability run-rate that is supportive of market expectations for the current financial year and we are well-placed to deliver future growth by focusing on our core Niche and Specials businesses.”

An analyst briefing will be held at 09:30am today, at the offices of Buchanan, 107 Cheapside, London, EC2V 6DN. A copy of the final results presentation given by Chris Rigg (Chief Executive Officer) and Gerard Murray (Chief Financial Officer) will be released later this morning on Wednesday 3 May 2017 on the Group’s website http://ir.quantumpharmagroup.com/content/investor/presentations.asp.

Download full statement

Posted by: Quantum Webmaster on 3rd May 2017