3rd Feb 2015 08:00
LONDON (Alliance News) - UDG Healthcare PLC said Tuesday it expects to see its constant currency earnings per share, adjusted for amortisation and exceptional costs, to rise between 5% and 8% in its current year.
The healthcare services provider said that if current exchange rates are sustained for the year to end-September, its reported earnings per share will be higher than this range.
UDG said its first quarter to end-December 2014 was "well ahead" of the previous year.
Its Ashfield Commercial & Medical Services arm saw strong trading, with operating profit boosted by acquisitions it made during 2014. Its US medical services business was weaker due to a very strong comparable quarter a year before.
In its Supply Chain Services arm, United Drug was hit by recent changes in the Irish wholesale market. Additionally, the sale of its Specials business and its interest in the UniDrug Distribution Group joint venture reduced the overall profitability of the division. Its Aquilant business, however, performed well and ahead of the previous year.
UDG said its Sharp Packing Services arm started the year well, seeing a good performance in the US and improvement in Europe, although this business continued to face challenges, it said. It started the second phase of its expansion programme at its Allentown facility in Pennsylvania, and it expects this to become operational in late 2016.
The company expects to post an exceptional cost in 2015 in relation to the restructuring of its healthcare communications business, its United Drug supply chain business, and further restructuring across other parts of the business.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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