Sinclair
Revenue
Total revenue for the year increased marginally by 0.4% to £30.4m (2008: £30.3m), reflecting the challenges presented by the economic climate which led to wholesalers reducing their stock holdings as a result of cash constraints. This resulted in a one off reduction in sales during the year and going forward smaller, more frequent orders for Sinclair. Revenues generated from licensing fees, including non-cash licensing agreements, more than off-set the effects of de-stocking, leading to the small increase in overall revenue.
Product revenue for the year was £22.0m (2008: £24.8m). A further £1.0m was contributed by royalty payments (2008: £0.7m). Revenue of £7.4m was also generated by licence fee and milestone payments (2008: £4.8m).
Direct sales through country operations
A breakdown of the contribution from Sinclair’s own sales and marketing operations for the period are |
|
| FY 2009 | FY 2008 | |
| £m | £m | |
| France | 9.8 | 9.0 |
| Italy | 2.0 | 2.6 |
| UK | 0.4 | 1.5 |
| Spain | 0.2 | *0.6 |
| Total | 12.4 | 13.7 |
| * FY 2008 figure includes revenue of £0.3m from CS Portugal, Sinclair’s joint venture partner in Portugal. CS Portugal, which was previously jointly controlled, has been deconsolidated from the Group results since 1 July 2008 as the Group no longer has effective management control of this associate. | ||
|
Revenue through international operations |
| FY 2009 | FY 2008 | ||
| £m | £m | ||
| Product sales | 9.6 | 11.0 | |
| Royalties | 1.0 | 0.7 | |
| Licence fees and milestones | 7.4 | 4.8 | |
| Total | 18.0 | 16.5 |
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During the year Sinclair recognised licence fees and milestones of £7.4m (2008: £4.8m). The major components of this are the agreement with Graceway for the sales of US distribution rights to Atopiclair Cream and Lotion for £2.1m, the non-cash licensing agreements with BMG Pharma for the licence of Sinclair’s gynaecological portfolio (£3.3m) and with JB2 SA for the licence to Sinclair’s onychomycosis kit (£0.9m). Additional smaller components include £0.2m from a major animal health company to enable the company to evaluate the use of Decapinol to treat or prevent periodontal disease in companion animals and £0.2m from Orapharma following validation of the Italian manufacturing site.
Non-cash licensing agreements contributed £4.2m to both revenue and profit in the year (2008: £1.2m).
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