Member Article

Durham’s Quantum Pharma back in the black following recent flotation

Durham-based Quantum Pharma, a growing manufacturer, supplier and service provider to the niche pharmaceutical and healthcare sector, has released its maiden set of final results since the group’s admission to AIM in December 2014.

Statistics

Quantum Pharma reported most notably reported a rise in pre-tax profit of £1.1m, up £3.7m on the prior year which saw a £2.6m loss.

Moreover, 2015 saw positive trends across all KPIs for the company. Revenue increased by 15% to £61.7m, up from £53.5m in 2014. Furthermore, gross profit increased by 27% from £20.4m to £25.9m and gross margin increased from 38% to 42%.

Analysis

As a result of being admitted to AIM, the company was able to strengthen its balance sheet, raise additional funding to support its acquisition plans, accelerate and strengthen its growth strategy, increase its product portfolio and also invest in infrastructure and the management team across the Group.

Moreover, the company completed a £15 million acquisition of the remaining 49% of Colonis Pharma Limited in December 2014. In April 2015, the business then acquired the Lamda group of companies (Lamda UK Limited, Lamda Pharmaceutical SA and Lamda Laboratories SA), a pharmaceutical development and licensing business with customers in the UK, Ireland, Germany, France, Italy, Sweden, Greece and Cyprus.

The total consideration for the companies was €9.7 million and the acquisition augments Quantum Pharma’s product development capability and increases the pipeline of products in Colonis.

Comment

Andrew Scaife, Chief Executive Officer of Quantum Pharma, said: “I am delighted by the Group’s strong progress over the last twelve months and excited about the Group’s future potential.

“Quantum Pharma has had a transformational year in which we successfully joined AIM in December 2014, took significant strategic steps, generated growth across the Group, penetrated new markets both in the UK and overseas and, delivered on commitments made at the time of admission to AIM.

“The Group continues to trade in line with management’s expectations and we believe that the outlook for Quantum Pharma is exciting. During the current financial year, we will continue to lay strong foundations for future growth.

“The Group has a very strong pipeline of niche pharmaceutical products which, coupled with a market-leading service, will provide significant opportunities both in the UK and internationally.

“Quantum Pharma is well positioned to take advantage of the significant opportunities available to it and we look forward to the forthcoming year with significant optimism.”

Summary

Quantum Pharma is now back in the black following a successful admission to AIM. Pretax profits of over £1m prove pleasing news for a North East company which has recently undergone rapid change.