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Alliance Pharma

February 2011

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • APH
  • Price:
  • 30p
A solid preclose update from Alliance, which has said turnover for 2010 will be close to £50m, an increase of approximately 60% on the previous year. This has been driven by a strong performance from Deltacortril and the dermatology range.  Pretax profit is expected to be slightly ahead of current market expectations with Numis now looking for £12.5m pretax and eps of 4.9p. Of course, 2010 has been an “on year†for the (unnamed) toxicology product, which falls every three years and therefore for the current year underway Numis forecasts £9.9m pretax and eps of 2.8p but with a tidal wave of cash being generated, we expect eps enhancing acquisitions before too long. Buy.   < ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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