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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Alliance Pharma - Gain reaches 75% in five months

May 2010

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • APH
  • Price:
  • 36p
Alliance’s performance has continued in a euphoric vein, with the shares registering a new high of 36p and final results were also good. For the year to 31 December, turnover rose 44% to £31.2m, while pretax profit increased 254% to £8.6m. Eps tripled to 3.6p. Growth came thanks to a four-fold rise in sales of the steroid Deltocortril to £8.5m, while Nu-Seals, the low dose aspirin, increased sales 24% to £5.8m. The dermatology range enjoyed an 18% rise in sales to £5.1m. Changes in the product mix drove gross margin up from 51% to 58%. Net debt fell from £25.2m to £21.7m, while net debt / EBITDA improved from 4 times to 1.9 times. The integration of the Cambridge Labs business is progressing well with the transfer ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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