22nd May 2018 10:28
LONDON (Alliance News) - UDG Healthcare PLC on Tuesday reported a rise in revenue in the first half of its 2018 financial year, but profit plunged on goodwill impairment.
The Dublin-based company reported revenue covering the six months to the end of March totalling USD675.3 million, up 17% from USD578.9 million reported for the same period the year before. On a constant currency basis, revenue rose 11%.
UDG Healthcare's largest unit Ashfield delivered revenue of USD372.3 million, up 29% from USD289.0 reported the prior year.
Meanwhile, Sharp division's revenue fell by 7.0% to USD142.5 million from USD152.7 million year-on-year, partly offset by a revenue increase in Acquilant division, which rose by 17% to USD53.9 million from USD46.3 million.
Selling and distribution costs grew year-on-year to USD111.3 million from USD96.1 million, while administrative expenses slightly reduced to USD9.3 million from USD10.3 million.
Pretax profit for the half dropped dramatically to USD1.8 million from USD40.9 million a year earlier. This was after the company booked a goodwill impairment of GBP57.7 million in relation to the scientific products company Aquilant Group.
UDG Healthcare declared an interim dividend of 4.25 US cents, up 19% from 3.58 cents paid the year before.
"The first half of 2018 was another period of strong growth for the group," said Chief Executive Brendan McAtamney. "We remain confident that our strong market positions and the growing trend in the healthcare industry to outsource specialist activities on an international basis, leaves UDG well positioned for growth in 2018 and beyond."
Shares in UFG Healthcare were down 5.3% at 882.00 pence each on Tuesday.
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