Chairman's Statement

Sinclair has delivered its second year of EBITDA profit. While the past year has not been without its challenges, we have responded to these by adaptingour business to meet them head on.

Second year of EBITDA profit

The past 12 months have presented the global economy with some of the toughest challenges of recent times. The effects have been far reaching with no sector or geography left untouched. The life sciences, and especially pharmaceutical, industries have also felt the effects of the downturn with many wholesalers reducing the extent of their stocking to minimise their overall risk.

Against this backdrop Sinclair has delivered its second year of EBITDA profit. While the past year has not been without its challenges, we have responded to these by adapting our business to meet them head on.

The global outlook remains unclear but we share with you today solid results that underline Sinclair’s potential. These results are testament to the continued hard work of Sinclair’s employees and management team and their dedication in helping Sinclair work towards achieving its goals.

A new commercialisation strategy

Sinclair has always prided itself on its ability to develop high quality products for the treatment of a range of dermatological and oral treatments. Having established an extensive portfolio of products, our focus now is on fully realising the value of these products.

During the past year we have embarked upon an aggressive commercialisation strategy and have restructured our business to maximise the potential in our portfolio. At the same time we have created a new role – Chief Operating Officer – and promoted Christophe Foucher to this position, following his success in developing the Sinclair business in France. Under Christophe we have united the business development team and operating companies to form a single division with a common objective.

Following the acquisition of the remaining minority interest in Spain, Sinclair now has 100% owned operations in France, Italy and Spain. The depth of management expertise in these territories has been reinforced by the appointment of new Country Operations Directors.

Sinclair’s own operations are complemented by an extensive network of marketing and distribution partners around the world. Sinclair continues to increase its global footprint by building on existing strong relationships and by increasing the level of marketing support it gives to its partners, implementing a new objective of increasing product sell out, and ultimately generating more predictable income in relation to orders and re-orders.
 

In combination these proactive and decisive steps make me confident that our new approach equips us with the tools to progress our growth strategy.

Employees

Without the continued commitment and hard work of Sinclair’s employees the results we disclose today would not have been possible. Led by a strong management team, Sinclair’s employees are one of the greatest assets of the business. On behalf of the Board and shareholders I would like to thank them, and Sinclair’s management, for their hard work.

Outlook

The implementation of a clearly focussed commercialisation strategy underpinned by an agile and efficient business structure means we are well positioned to drive product revenues, without sacrificing margins. We believe our business presents several significant opportunities for ongoing growth and our short-term goal remains to achieve sustainable profitability based on recurring product revenues. The Board continues to believe that the commercial success of Decapinol in US will be one of the key drivers for the Group and remain confident in Sinclair’s ability to deliver long-term profitability.

We look forward to the year ahead with optimism as we continue our journey to becoming a world class specialty pharma company, with innovative products that meet the needs of the patient.

Grahame Cook ACA
Chairman

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