Latest Financial Highlights

Financial

201720166Reported
growth
Growth at
constant
currency1
Group revenue (£ million) 96.983.2 16% 12%
Adjusted2 operating margin (%) 26.223.7 250bps –
Adjusted2 profit before tax (£ million) 25.419.7 29% –
Profit before tax (£ million) 25.319.1 32% –
Adjusted2 diluted earnings per share (p) 9.467.66 23% –
Diluted earnings per share (p) 9.397.38 27% –
Net operating cash flow3 pre- exceptional items (£ million) 21.522.3 (4%) –
Net cash (£ million)4 62.551.1 22% –

– Proposed final dividend of 0.75p per share, making a total dividend for the year of 1.10p (2016: 0.92p), up 20%.

Business

 Good revenue growth, up 16% to £96.9 million and by 12% at constant currency;

  • Branded revenues up 22% to £55.2 million (2016: £45.4 million), and by 16% at constant currency
  • OEM revenues up 10% to £41.7 million (2016: £37.8 million) and by 8% at constant currency

– Continued strong performance from LiquiBand® topical tissue adhesives, sales up 35% to £26.0 million (2016: £19.3 million) and by 30% at constant currency:

  • US revenues up 47% to £18.2 million (2016: £12.4 million) and by 40% at constant currency
  • As at 31 December 2017, US market share by volume5 increased to 26% (June 2017: 24%)

– RESORBA® branded products up 15% to £20.8 million (2016: £18.1 million) and by 6% at constant currency

– Antimicrobial dressings up 11% to £19.4 million (2016: £17.5 million) and by 9% at constant currency

– Out-licensing deal with Organogenesis signed for a collagen based wound dressing containing Polyhexamethylene Biguanide (“PHMB”)

  • Royalties of £2.5 million received in 2017 (2016: £nil)

  1. Constant currency removes the effect of currency movements by re-translating the current period’s performance at the previous period’s exchange
  2. All items are shown before exceptional items which were £nil (2016: £0.4 million) and amortisation of acquired intangible assets which, in 2017, were £0.1 million (2016: £0.2 million) as defined in the Financial Review
  3. Operating cash flow is arrived at by taking the operating profit for the period before exceptional items of £nil million (2016: £0.4 million), depreciation, amortisation, working capital movements and other non cash
  4. Net cash is defined as cash and cash equivalents plus short term investments less financial liabilities and bank loans
  5. Data supplied by Global Healthcare Exchange
  6. 2016 Revenue restated as a result of adoption of IFRS 15 (Revenue from Contracts with Customers)