7th Aug 2014 08:24
LONDON (Alliance News) - UDG Healthcare PLC Thursday said operating profit and group revenue in its fiscal third quarter and the first nine months of its financial year were ahead of the previous year on the back of a strong performance for its Ashfield Commercial and Medical Services arm.
The Ashfield business became the biggest profit contributing division of the company in the three months to June 30, with revenue and profit both rising in the period year-on-year. That growth was driven by the performance of its healthcare communications business, pushed higher by both organic growth and acquisitions, UDG said. The main acquisition made in the unit was in March when it bought the KnowledgePoint360 healthcare information communications system.
The North American unit for Ashfield performed well, the company said, while its Japanese greenfield business moved into profitability in the third quarter.
UDG's Sharp Packaging Services pharmaceutical packaging unit also posted a positive result for the third quarter, with profit higher on the back of a good performance from its US business, which offset a small operating loss from the Europe unit. The group recently approved an expansion of its Allentown facility in the US state of Pennsylvania, which will add 25% to its US capacity. That project is due to take 4-5 years and UDG is set to invest USD35 million in the scheme.
Trading in the group's other businesses was mixed, with its Supply Chain Services arm posting flat profits in the third quarter, despite the sale of its Specials arm. UDG said the impact on the Supply Chain Services arm of generic substitution in the Republic Of Ireland was anticipated, but it had been hit by a greater-than-expected adverse impact of 'direct to pharmacy' schemes.
UDG reiterated its full-year guidance for constant currency adjusted diluted earnings per share to be 5% to 9% ahead year-on-year in its full year ending September 30.
UDG said it will publish its full-year results on November 20.
Shares were up 0.1% at 344.50 pence early Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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