DUBLIN, Ireland and LONDON, England, September 5 /PRNewswire-FirstCall/ -- Alltracel Pharmaceuticals Plc., (“Alltracel”, or “the Company”), (AIM:AP.L), the Medical Technology Company focussed on the Woundcare, Oralcare and Cardiovascular Health markets today announces interim financial results for the six months ended June 30th, 2006.
2006 First Half Highlights: - Continued solid revenue growth and decreasing operating losses Financial Summary 6 months 6 months 12 months June 06 June 05 2005 EURM EURM EURM Turnover 9.47 8.37 19.24 Gross Profit 3.45 2.96 6.70 EDITDA 0.36 (1.42) (1.11) Operating loss (0.04) (1.57) (1.68) Loss before tax and minority interests (0.25) (1.79) (2.1) - Solid revenue growth to EUR9.5M (H1 2005: EUR8.4M); - EBITDA positive EUR0.36M versus EBITDA loss of EUR1.42M in H1 2005; - Net operating loss before tax significantly reduced to EUR0.04M from EUR1.6M in H1 2005;
- Gross margin of 36% (EUR3.5M) slightly ahead of last year’s 35% first half; and
- Woundcare regulatory breakthroughs in Asia for several m-doc(TM) based products enabling start of sales in second half of this year by partners Yunnan Baiyao in China and Nichiban in Japan.
- Continued strong revenue growth in Oralcare fuelled by repeat orders and new contract wins across Europe.
- Platform technology breakthroughs in Woundcare:
- Final haemostasis efficacy studies, run in conjunction with Nanofibre specialists Elmarco, on m-doc(TM) based nanofibre woundcare prototypes prove effective and efficient haemostasis; leading to the subsequent establishment of a technology and business development joint venture for the global professional and consumer woundcare markets; and
- Two independent scientific studies substantiate wound healing effects and confirm antimicrobial efficacy of a number of Alltracel’s oxidised cellulose derivatives.
- Successful completion of both sterol and statin pre-clinical combination trials confirming significant improved cardiovascular health benefits when used in combination with Alltracel’s Bio-active.
- Non-Executive Board changes: Appointment of Dr. Pat Fottrell and the resignation of Dennis Malamatinas on May 31st 2006, and today’s resignation of Gerry Brandon as announced separately.
Summary Commentary
Commenting on the company’s half year performance and recent developments, Chief Executive Officer, Tony Richardson said:
“The profitability momentum achieved in the latter half of last year has continued into this half year with another positive EDITDA half year and with losses significantly reduced versus the first half of 2005. The half years solid 13% year-on-year revenue growth has been driven by strong re-order levels across the group businesses. We believe this level of growth will continue into the second half of the year on the back of the clearing of the woundcare regulatory hurdles in China and Japan as well as expected Oralcare new business wins.
The half year was also significant in terms of breakthroughs on our patented technology platform particularly for the woundcare and cardiovascular health (CVH) markets.
In woundcare we have seen significant enhancements to our m.doc(TM) stops bleeding technology with new healing and anti microbial benefits now proven and currently being incorporated in our technology and product development program. In addition, following successful haemostasis efficacy studies on m-doc(TM) based nanofibre woundcare prototypes, we have established a full technology and business development joint venture with our existing Nanofibre technology research partners Elmarco. This new company is now operational and is dedicated to the commercialisation of patented Nanospider(TM) based technology solutions for the global professional and consumer woundcare sectors. As a result of these exciting technology breakthroughs, we are currently in product & technology development discussions with a number of significant potential woundcare partners in Europe and North America.
In CVH another important development milestone was reached with the successful completion of both sterol and statin pre-clinical combination trials confirming significantly improved cardiovascular health benefits when used in combination with Alltracel’s Bio-active technology. We continue to advance discussions to commercialise the technology with a number of multinational partners in the functional foods marketplace in Europe, Asia and North America.
We remain confident in the outlook for the remainder of the year. We expect the positive momentum from the first half to continue throughout the year and are comfortable with analysts’ expectations of the business reaching full year profitability in 2006.
We are now focussed on driving profitable Group revenue growth while enhancing technology and product development partnerships in woundcare and CVH. In addition, we continue to consider potential value adding acquisitions and alliances provided they are a good fit with our business development strategy and build on our core IP.”
CONTACTS: Deborah Scott, Financial Dynamics Tel: +44-20-7831-3113
Source: Alltracel Pharmaceuticals Plc.
