19th May 2016 07:38
LONDON (Alliance News) - UDG Healthcare PLC on Thursday said its pretax profit almost doubled in its first half and reiterated its full-year guidance for earnings per share growth, on the back of both the current momentum and the positive outlook for the remainder of its financial year.
For the half year to end-March, the healthcare services company posted a pretax profit of EUR33.1.0 million, up from EUR17.6 million for the same period a year earlier, as revenue rose to EUR472.4 million from EUR446.2 million.
Revenue growth was boosted by strong performances in its Sharp Packaging Services division, although the key driver of profit was the huge drop in finance expenses, which were cut to EUR12.6 million from EUR47.8 million. This was largely due to the EUR32.9 million foreign currency loss on retranslation of guaranteed senior unsecured loan notes that UDG incurred during the first half a year earlier and that did not repeat during the recently ended half.
The company reiterated its earnings per share growth guidance of 6.0% to 8.0% on a constant currency basis for the full financial year to end September.
UDG said this was unchanged as the positive impact from its acquisition of Pegasus Public Relations Ltd in April will be offset by the impact of allocating an extra three months of central administration costs to the continuing group in the current financial year. This was due to the earlier-than-expected completion of its sale of the United Drug Supply Chain businesses and MASTA in April.
UDG declared an interim dividend of 3.05 euro cents per share, up 5.0% from the 2.90 cents a year earlier.
The group's activities and strategy continue to be supported by the strong growth outlook for the outsourced healthcare services market," said Chief Executive Brendan McAtamney.
"Following the completion of the disposal of the United Drug Supply Chain businesses and MASTA in April, the group is now in a net cash position. Underpinned by our strong balance sheet and diversified client base, UDG Healthcare remains well positioned to continue to execute our international expansion strategy and meet the growing demand for our specialist services from our global healthcare clients," McAtamney added,
Shares in UDG were down 1.5% at 585.00 pence on Thursday morning.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
UDG.L