21st Nov 2013 11:59
LONDON (Alliance News) - UDG Healthcare PLC Thursday reported a lower pretax profit for its last financial year as it closed a packaging facility and booked restructuring costs, but profits and revenues rose strongly excluding those costs.
The healthcare and pharmacies services provider, which recently changed its name from United Drug, reported a pretax profit of EUR34.9 million for the year to end-September, down from EUR59 million a year earlier, as it booked EUR24.3 million in closure and restructuring costs.
Excluding this cost, pretax profit rose to GBP64.7 million, as revenues rose to GBP2.03 billion, from GBP1.83 billion.
The company made five acquisitions in 2012, and some of the costs reflect the restructuring of those businesses. However, they are now also contributing to revenue and earnings growth.
It said that it expects further strong growth in operating profit excluding financing and one-off costs in the current financial year, although increased interest costs after a recent loan note issue and costs of its rebranding will moderate the growth in net profit.
"All five acquisitions completed in 2012 have been successfully integrated, with the emphasis now on generating further revenue and cost synergies from these businesses," the company said in a statement.
It said it is proposing a final dividend of 6.95 euro cents a share, which would bring its total dividend to 9.56 cents, 6% up on the 2012 total.
Its sales, medical and marketing unit, now rebranded Ashfield Commercial and Medical Services, reported 74% growth in revenue and 55% growth in underlying operating profit. Its healthcare supply chain business, its largest unit, saw revenue rise 1%, but operating profit fall 4%, while revenues rose 22% and operating profit 11% at its packaging business.
UDG Healthcare shares were down 1.9% at 308 pence Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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