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Summary
- Clinigen Group PLC had reported an increase of 4% in net organic revenue during H1 FY21 ended 31 December 2020.
- CLIN had announced an interim dividend of 2.15 pence per share for H1 FY21.
- Sam Herbert was appointed as Chief Operating Officer on 04 January 2021.
- CLIN had a net debt of £351.5 million as of 31 December 2020.
Clinigen Group PLC (LON:CLIN) is the LSE listed healthcare stock. CLIN’s shares have generated a return of approximately negative 15.19% in the last 12 months. It is listed on the FTSE AIM UK 50 Index. The Company was incorporated in 2008.
Business Model
Clinigen Group PLC is the global Pharmaceutical and Services Company. The Company has sites in Europe, Asia Pacific, North America, and Africa. The Company has two reportable business segments – Products & Services. CLIN has around 1,100 employees across five continents in 14 countries.
(Source: Company presentation)
Recent News
On 04 January 2021, CLIN had appointed Sam Herbert as Chief Operating Officer from the same day.
On 18 December 2020, the Company had appointed Numis Securities Ltd as Nominated Adviser and Joint Broker with immediate effect.
On 26 November 2020, the Company has updated that Anne Hyland will replace John Hartup as the Senior Independent Non-Executive Director effective from the same day.
H1 FY21 Financial and Operational Highlights (for the six months to 31 December), as on 23 February 2021)
(Source: Company result)
- Despite the Covid-19 pandemic, CLIN had managed to report a surge of 4% in net organic revenue from £224.6 million during H1 FY20 to £231.9 million during H1 FY21. Subsequently, the Company raised its financial guidance.
- The organic adjusted EBITDA declined by 9% during the period from an equivalent period of the prior year, illustrating 5%-10% of headwinds created by the Covid-19 pandemic.
- CLIN had managed to generate an operating cash flow of £60.7 million during the period, driven by excellent cash conversion and a turnaround in working capital movement.
- The Company had a net debt of £351.5 million as of 31 December 2020 and had the leverage of 2.8x, well below its temporary banking covenant.
- Furthermore, CLIN had maintained similar levels of an interim dividend of 2.15 pence per share in H1 FY21 as well.
- The services segment had witnessed net revenue growth of 21% during the period, while products segment revenue was declined by 9% during the period.
- The Company has received FDA approval to broaden the indication for Totect® to cure the incidence and severity of cardiomyopathy associated with doxorubicin administration in women with metastatic breast cancer.
Share Price Performance Analysis of Clinigen Group PLC
(Source: EODHD/Others, chart created by Kalkine group)
Shares of Clinigen Group PLC were trading at GBX 717.00 and were down by close to 0.42% against the previous closing price as on 24 February 2021 (before the market close at 12:46 PM GMT). CLIN's 52-week Low and High were GBX 350.40 and GBX 940.00, respectively. Clinigen Group PLC had a market capitalization of around £957.81 million.
Business Outlook
(Source: Company presentation)
The Company had managed to achieve resilient business performance during H1 FY21, showing decent revenue growth. The H2 FY21 had carried the positive momentum of H1 FY21. Moreover, CLIN had anticipated showing net revenue growth ranging from 5% to 10% during FY21, primarily driven by the Services segment and partnered products of the products segment. Furthermore, the Company had anticipated significant investments within the Services segment. On a leverage front, CLIN would achieve net debt to EBITDA in the range from 1.0x to 2.0x within 2021. Despite the uncertain business environment, the Company has won new contracts and further strengthened the pipeline to accelerate business in FY2022. Overall, the long-term fundamentals of CLIN and its market appear to be strong despite short-term uncertainties.
