03/10/2008
A £3.7m foreign exchange gain helped Sinclair Pharma turn £4m annual losses into £1.9m pre-tax profits.
The fully listed oral health and dermatology specialist increased turnover 31 % to £30.3m in the year to June, as organic growth and new distributors helped treble sales of its Decapinol anti-gum inflammation rinse, and its ‘dermo-cosmetics’ portfolio chalked up revenues of £6.6m.
Before exceptional items, Sinclair, steered by chief executive officer Dr Michael Flynn, lost £1.5m, but the foreign exchange gain, a non-cash gain on translating an intra-group loan balance, assisted in producing a profit.
The company has restructured its UK and French businesses and launched several new products in the UK, France and Italy, including its flagship ‘Atopiclair’ non-steroidal dermatitis treatment, ‘Paulex Eau’ anti-acne cream and a range of ‘B-Lift’ and ‘B-Derm’ ‘corrective dermatology’ products. Sinclair is taking longer than it hoped to launch Decapinol in the USA, but continues to work with its US partner, Orapharma, on a modified formulation and now does not expect a US launch ‘until the next financial year’.
Sinclair shares have been a long-term disappointment, falling from 142.5p last year to 43p. If the company’s plans bear fruit, they might repay a long-term recovery punt for the risk-friendly.
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| Market cap: | £40.4m |
| PE Forecast: | n/a |
| Share price: | 43p |
| LSE | £16.86m |
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