Sinclair tops out market expectations, sales rise 37%
January 17, 2017Pure-play aesthetics company SInclair Pharma has reported topping out market expectations with sales in the twelve months until December 2016 being about £2m, which represents the gorwth of more than 37% to £37.8m.
Sinclair said that weakness in sterling boosted the reported numbers by £3.5m, bringing reported sales growth to 51%.
The company that sold its non-aesthetic section in December 2015 to Alliance Pharma for £132m upfront cash said that all (remained) key products saw strong growth. For example, Silhouette Soft saw good performance across several markets. Silhouette InstaLift has started well in the US with an initial stocking order ahead of expectations. Sinclair pointed out the 69% growth of Ellansé, and is sattisfied with 30% growth of Perfectha.
Following the group reorganisation, management always planned to invest in commercial infrastructure and marketing support to drive future growth. However, the cash burn in 2H’16 was about £1.0m lower than forecast at -£7.5m, leaving the group with £16.8m net cash at December 31, 2016.
Higher sales saw EBITDA rising by £0.2m to -£6.5m and the company sees a similar effect on future years. EBITDA and EBIT are prognozed to be positive in 2017 and 2018 respectively.
“The market should be very reassured that management has more than delivered on what were demanding growth targets. The company is continuing to invest in growth but is still expected to deliver EBITDA profit next year and overall profitability in fiscal 2018. The risk/reward profile is very favourable which should be reflected by a change in market sentiment,” the company said in the press release.