Quantum Pharma : Unaudited results for the half year ended 31 July 2017 ('the period' or 'H1 2018')

Unaudited results for the half year ended 31 July 2017 ('the period' or 'H1 2018')

22 August 2017

Financial Highlights

• Revenue increased 13% to £36.2m (H1 2017: £32.1m) reflecting strong growth from the Niche Pharmaceuticals division ('Niche')
• Adjusted EBITDA increased 23% to £5.7m (H1 2017: £4.7m)
• Niche transformed, contributing 28% of Group adjusted EBITDA (before central costs) at £1.8m (H1 2017: loss of £0.2m)
• Statutory operating profit increased 74% to £3.6m (H1 2017: £2.1m)
• Net debt reduced to £11.9m (H1 2017: £23.8m)

Key developments

• Initial phase of strategy to focus and simplify the business completed following disposal of Total Medication Management Services Limited trading as Biodose Services ('Biodose Services')
• Licensed product portfolio performing very well with Glycopyrronium Bromide Oral Solution 1mg/5ml ('Glyco') outperforming expectations and for which an indication extension is being progressed
• Increased confidence in deliverability and value of the product pipeline
• Partnerships established with two global pharmaceutical businesses to commercialise generic products in the UK
• Progress made with the first export of licensed product into the Middle East
• Strong expressions of interest received in international partnership opportunities
• Hospital revenue growth in the Specials division ('Specials') balanced by regulatory and pricing pressure in unlicensed specials supplied to community pharmacies
• Post the period end a non-binding indicative proposal made by Clinigen Group plc regarding a possible offer for the Group.

Chris Rigg, CEO of Quantum, said: 'I am very pleased with the strategic progress we have made in the period and the Group has good momentum going into the second half of the year. The benefits of our simplification strategy are clear to see in a strong set of results that demonstrate the substantial increase in the profitability of our business. The next steps of our strategic plan are underway with a focus on delivering the current pipeline, maximising the value in our licensed product portfolio and exploiting international opportunities. I am confident in the future prospects of the Group.'

A conference call for analysts will be held at 9.30 am on the day of the results; for analysts wishing to join the conference call, please contact:

Buchanan
020 7466 5000
quantumpharma@buchanan.uk.com

All figures for continuing operations unless stated otherwise.
A list of definitions of non-GAAP measures and references to reconciliations to GAAP measures are included at the end of this document.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information:

Notes to Editors

Quantum Pharma Plc is a service-led, niche pharmaceutical developer, manufacturer and supplier to the retail pharmacy, pharmaceutical wholesale and hospital markets. Quantum Pharma Plc operates through two divisions - Niche Pharmaceuticals ('Niche') and Specials - offering a portfolio of innovative and complementary products and services.

For further information, please visit www.quantumpharmagroup.com.

As a result of rounding throughout this announcement it is possible that tables may not cast and change percentages may not calculate precisely.

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