The Board utilises a number of KPIs to enable a consistent method of analysing performance, in addition to allowing the Directors to benchmark performance against similar businesses and the Group’s business plan. The KPIs utilised by the Board can be split into both key financial performance and non-financial performance indicators.

The financial performance indicators are: 

Adjusted Gross Profit (£M)1

Measures the profit achieved on sales after taking account of cost of goods, selling and distribution costs. This is viewed as the main measure of top line growth.

Adjusted gross profit1 increased 90%, and on a pro forma basis2, viewed as the best indicator of organic growth, was up 7%in the year.

Adjusted EBITDA

Measures the profit achieved on sales after taking account of the direct costs and overheads but before interest, depreciation, amortisation and non-underlying costs.

The Group achieved an underlying EBITDA for the year of £56.0m representing a 73% increase on the prior year. On a pro forma basis2, viewed as the best indicator of organic growth, EBITDA increased by 10%.

Working capital

Effective working capital management is a key focus for the Group. This includes managing stock levels, debtor days and creditor payment terms. In the last two years the Group has had a negative net working capital position as at 30 June, indicating efficient use of cash.

The non-financial performance indicators are: 

5 Products 

Acquisition and revitalisation of new products 

Acquiring new products and revitalising them is a core part of the Group’s strategy. This year the Group’s first product, Foscavir, achieved 5% growth in in-market sales. The newer products, Ethyol, Cardioxane and Savene collectively increased gross profit by more than 30%. During the year, the Group acquired a new product, Totect, and developed the Foscavir bag line extension.

5 exclusive Global Access supply agreements 

To become the global "go to" provider of unlicensed and short-supply medicines

Building scale in the unlicensed market, demonstrated by:
i) number of exclusive supply agreements in GA
ii) development of the IT/digital platform particularly the e-commerce solution
iii) evidence of promotional and educational meetings and material targeting hospital pharmacists such as a ‘point of care’ journal / partnerships with EAASM and ASOP

>6,000 Customers 

Expansion of customer base

Clinigen CTS and Idis MA have expanded their customer base during the year. In addition, Idis GA introduces new customers to the Group. Opportunities of utilising the expanded customer base across the five operating businesses will be reviewed in FY17.

1 The adjusted results exclude share-based payment costs, amortisation, non-underlying costs and include the 50% share of the unaudited results from the Joint Venture in South Africa

2 Year on year comparisons, referred to as ‘pro forma’ are calculated from the aggregated unaudited results taken from i) 12 monthly management information for Clinigen and Idis, and ii) for Link Healthcare, the eight months ended 30 June 2016 and for the eight months ended 30 June 2015. The pro forma calculation has also removed the effect of the termination of the Global Access low margin contract in November 2015