4th Feb 2014 10:54
LONDON (Alliance News) - UDG Healthcare PLC Tuesday said its first quarter profits were lower than last year, as it expected, hit by incremental costs associated with its private debt placement last September and costs for rebranding one of its business units, but it predicted underlying earnings growth for the whole of the year.
In a trading statement, the healthcare services provider said the quarter to end-December had been "satisfactory", with revenues up on the year on a constant currency basis.
However, it forecast that earnings per share for the whole financial year will be between 2% and 5% up on last year at constant currency rates, excluding amortisation and acquisition costs. It said it expects the growth to weighted towards the second half of the year. It also forecast underlying EPS growth of between 8% and 11% excluding the increased private placement financing costs and the re-branding costs.
UDG also said it expects to deliver another good cashflow performance this year, although this will also be weighted towards the second half. It said this, combined with modest debt and significant financing facilities would leave it well positioned to grow organically and through acquisitions.
It said trading and profits at its Ashfield Commercial and Medical Services unit were well ahead of last year in the first quarter, and it's confident of meeting its medium-term 10% operating margin target for the division.
Revenues were also up in its supply chain services unit, although profits were lower as it sold more lower-margin products than in the previous year. Trading in its Sharp packaging services division met expectations, but was down on the strong year-earlier period.
UDG Healthcare shares were down 0.9% at 347.90 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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