14th May 2015 07:39
LONDON (Alliance News) - UDG Healthcare PLC Thursday raised its earnings guidance for its current financial year as it posted a rise in pretax profit for its first half.
For the half year to end-March, UDG posted a pretax profit of EUR28.0 million, up from EUR17.2 million a year before, as revenue rose to EUR1.13 billion from EUR1.04 billion. Revenue growth was boosted by strong performances in its Ashfield Commercial & Medical Services and Sharp Packaging Services divisions, which offset a decline in its Supply Chain Services division caused by the disposal of businesses in February of last year.
The company is now expecting earnings per share growth, at constant currency and adjusted for amortisation, acquisition costs and exceptional items of 7% to 9%. It had previously guided between 5% and 8%.
During the half year it recognised an exceptional charge of EUR10.7 million, related to the restructuring of its healthcare communications business, its United Drug Supply Chain Services business and the closure of its Aquilant UK laboratory distribution business. It expects to post an exceptional charge of between EUR13 million to EUR15 million for the full year.
The healthcare services company proposed an interim dividend of 2.90 euro cents per share, up from 2.69 cents a year before.
"The group has considerable long-term financing facilities available and good internally generated cash flows to support our growth objectives. Following growth in earnings during the period we have increased our guidance for the full year and remain positive about our long-term growth prospects," said Chief Executive Officer Liam FitzGerald in a statement.
Shares in UDG are trading up 0.7% at 542.50 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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