Latest Financial Highlights

Financial Highlights


 20192018Reported changeChange at  constant currency¹
Group revenue (£ million)102.4102.60%-1%
Operating margin (%)23.727.8-410bps
Adjusted² operating margin (%)26.428.2180bps
Profit before tax (£ million)24.328.3-14%
Adjusted² profit before tax (£ million)26.628.8-7%
Diluted earnings per share (p)8.7210.41-16%
Adjusted² diluted earnings per share (p)9.8310.63-8%
Net operating cash flow21.721.70%
Net cash3 (£ million)64.876.4-15%
Proposed full year dividend per share (p)1.551.32+17%

Business Highlights

  • Despite significant challenges in 2019, growth was achieved across multiple categories, but was offset by previously reported the downturn in US LiquiBand®, and Group revenue of £102.4 million was flat on 2018. Key drivers were:
    • US LiquiBand® sales reduced by 23% to £17.7 million (2018: £23.0 million) and by 25% at constant currency
    • EU/ROW LiquiBand® revenue increased by 24% at reported and constant currency to £10.8 million (2018: £8.7 million)
    • Fix8™ sales increased by 27% at reported and constant currency to £2.6 million (2018: £2.1 million)
    • Biosurgical sales increased by 9% to £9.4 million (2018: £8.6 million) and by 10% at constant currency
    • Suture sales increased by 8% to £14.4 million (2018: £13.3 million) and by 9% at constant currency
    • Sales of antimicrobial dressings increased by 4% to £20.6 million (2018: £19.7 million) and by 3% at constant currency
  • Investment in acquisitions and increased research and development, regulatory and clinical activity is establishing a bedrock for future growth:
    • Acquisition of Sealantis in January 2019 for US$25 million (£19 million) strengthened our internal sealants R&D pipeline
    • Acquisition of Biomatlante in November 2019 for €8 million (£7 million) strengthened our biosurgical portfolio and enters us into the synthetic bone substitutes market with a differentiated product
    • Broadened and more diverse portfolio of innovative internally developed products
  • Adjusted operating margin down 180 bps to 26.4% (2018: 28.2%) and adjusted profit before tax down 7% to £26.6 million (2018: £28.8 million) due to investment in the product pipeline including Sealantis, adverse sales mix and currency contracts.
  • The Group maintains its solid balance sheet and the Board proposes an increased final dividend of 1.05p per share to be paid on 19 June 2020 to shareholders on the register at the close of business on 29 May 2020, making a total dividend for the year of 1.55p per share (2018: 1.32p), an increase of 17%.

Note 1: Constant currency removes the effect of currency movements by re-translating the current year’s performance at the previous year’s exchange rates
Note 2: Adjusted profit before tax is shown before exceptional items which were £1.1 million (2018: £0.4 million), amortisation of acquired intangible assets which was £1.7 million (2018: £0.1 million) and change in fair value of long-term debt, a £0.3 million credit (2018: £nil) as defined in the Financial Review. Adjusted operating margin is shown before exceptional items and amortisation of acquired intangible assets
Note 3: Net cash is defined as cash and cash equivalents plus short term investments less financial liabilities and bank loans