Half Yearly Report

UDG Healthcare plc

Interim Report 2014

*Amortisation of acquired intangible assets, acquisition costs and exceptional loss on disposal of non-core subsidiaries.

** 2013 comparatives have been re-stated in accordance with IAS19: Employee Benefits (Revised). See notes 2 and 13 of the condensed interim financial statements for further details.

UDG Healthcare believes that the adjusted operating profit, adjusted profit after tax and adjusted diluted earnings per share are more appropriate measures of the underlying Group performance than those measurements set out in the primary financial statements, as this information is in a format communicated to and reviewed by the investment community.

Strategic & operating highlights

· Continued very strong growth in the Ashfield Commercial & Medical Services division, with operating profits up 36% in the period including acquisitions.

· Acquisition of KnowledgePoint360, the Group's largest ever acquisition for €108 million, completed in March 2014. The Group is now a leading global provider of healthcare communications services to the healthcare industry.

· Disposal of the Specials business for €27 million to enable greater focus on developing the Group's core business.

· European packaging business achieved breakeven in the period, ahead of schedule. US Packaging behind the prior period, with costs increasing in anticipation of future revenue from serialisation.

· Organic growth and recent acquisitions are expected to result in Ashfield Commercial & Medical Services becoming the Group's largest division in FY15.

Financial highlights

· Operating profit increased by 4% on a constant currency basis during the period (7% excluding the one-off impact of re-branding).

· Adjusted earnings per share (EPS) in line with the same period in 2013 and up 2% on a constant currency basis.

· Underlying EPS up 10% on the same period in 2013 when one-off impacts of re-branding and the carrying costs of increased financing are excluded.

· 3% increase in interim dividend to 2.69 cent per share.

· Net debt at 31 March 2014 increased to €338 million and the net debt to annualised EBITDA ratio was 2.62 times (30 Sept 2013 restated: 2.13 times), largely as a result of the KnowledgePoint360 acquisition.

· Full year constant currency EPS guidance increased from a growth range of 2% - 5% to 5% - 9%, following the KnowledgePoint360 acquisition.

Chief Executive Officer's comment:

Commenting on the 2014 interim performance, UDG Healthcare Chief Executive Officer, Liam FitzGerald said:

"The first half of 2014 has been another period of substantial progress in the Group's evolution as a leading international healthcare services provider. The Ashfield Commercial & Medical Services division increased profits by 36% in the period. The combination of strong organic growth with the recent acquisition of the KnowledgePoint360 business is likely to result in this division becoming the Group's largest operating profit contributor in FY15. The Group is now a global market leader in contract sales outsourcing, healthcare communications and outsourced packaging services to international healthcare companies. Strong global market positioning continues to be important as our clients seek to outsource more business to fewer, larger, high quality service providers. The re-branding of our divisions in the period will enable us to more effectively market our quality outsourcing services to these international healthcare clients in the future. On the back of the strong underlying trading performance we remain positive about our future growth prospects."

Dividend

The Board of Directors has declared an interim dividend of 2.69 cent per share, a 3% increase on the 2013 interim dividend.

The interim dividend is payable to shareholders on the Company's register at 5.00 p.m. on 23 May 2014 and will be paid on 17 July 2014. A Dividend Reinvestment Plan which enables shareholders who elect to participate to use their cash dividend to acquire additional shares in the Company, is available in respect of the interim dividend.

Outlook

Based on the underlying trading performance for the year to date, the acquisition of KnowledgePoint360 (KP360) and the outlook for the remainder of the year, the Group is increasing guidance and now expects constant currency adjusted diluted earnings per share (EPS) for the year to 30 September 2014 to be between 5% and 9% ahead of last year.

Excluding the one-off re-branding costs and the carrying cost of the additional financing raised in late 2013, which has since been used for the KP360 acquisition, the underlying constant currency EPS growth for the year is expected to be between 9% and 13%.

The Group also expects to deliver a good underlying cash flow performance for the year. The acquisition of KP360 in March has resulted in the net debt to annualised EBITDA leverage ratio increasing to 2.62 times at 31 March 2014.

Analyst presentation:

A presentation for investors and analysts will be held at the London Stock Exchange at 9.00 BST today, Wednesday 14 May. If you wish to attend please contact Powerscourt below. Alternatively, to dial into the presentation, the details are as follows: - Standard International Access +44 (0) 20 3003 2666 - UK Toll Free 0808 109 0700 - Password: UDG Healthcare.

For reference:

Investors and Analysts:

Liam FitzGerald, CEO

Alan Ralph, CFO

David Marshall, Head of Investor Relations

UDG Healthcare plc

Tel: +353-1-463-2300

Media:

Greg Lawless / Lisa Kavanagh / Claire Turvey

Powerscourt

Tel: +44-207-250-1446

About UDG Healthcare plc:

Listed on the London Stock Exchange, UDG Healthcare plc is a leading international provider of services to healthcare manufacturers and pharmacies, with operations in 22 countries including the US, UK, Ireland and Germany. The Group operates across three divisions: Ashfield Commercial & Medical Services, Supply Chain Services and Sharp Packaging Services.

Ashfield Commercial & Medical Services is a global leader in the provision of contract sales outsourcing and healthcare communications services to pharmaceutical manufacturers. The division provides sales teams, telesales, nurse educators, medical information, healthcare communications and event management services to healthcare companies in 22 countries. It focuses on supporting healthcare professionals and patients at all stages of the product life cycle.

Supply Chain Services includes the United Drug Supply Chain Services and the Aquilant Specialist Healthcare Services businesses. United Drug Supply Chain Services is the largest pharmaceutical wholesaler in the island of Ireland. It is also the leading pre-wholesaler in Ireland and has achieved the No.1 position in the UK through its joint venture business UniDrug Distribution Group. The division provides logistics services to healthcare companies, pharmacies and hospitals in the UK and Ireland. Aquilant Specialist Healthcare Services is a leading provider of outsourced sales, marketing, distribution and engineering services to the medical and scientific sectors in Ireland and the UK.

Sharp Packaging Services is a leading international provider of pharmaceutical contract packaging and clinical trials materials services with facilities in the US, UK, Dutch and Belgian markets.

For more information please go to: www.udghealthcare.com

Review of Operations

Ashfield Commercial & Medical Services

Ashfield is a global leader in the provision of contract sales outsourcing, healthcare communications and related services to the healthcare industry. Revenue for the division of €218 million is 14% higher than in the same period in 2013, with particularly strong growth being achieved in North America. Including acquisitions, operating profits have grown by 36% during the period to €16.7 million.

There is a continuing trend for our clients to outsource more of the services they require to support the commercialisation and regulatory requirements of both their new and established brands, as they seek to deal with fewer, larger, high quality service providers. This increased propensity to outsource has enabled Ashfield to continually grow its market leading contract sales outsourcing (CSO) business and to develop a range of other services such as healthcare communications. The re-branding of all the businesses within the division under the Ashfield name has reduced the number of brand names from twelve to one, and will enable the division to more effectively cross-sell its services. There have been a number of new client business wins during the period and the broad range of services we now offer across the division is enabling us to further expand our business with existing clients internationally.

The former Pharmexx business has undergone an extensive restructuring programme and subsequent acquisitions in Spain and Canada have now been fully integrated. We continue to make good progress on margin expansion and business development initiatives.

Our US business continues to experience very strong growth as the market responds to our innovative, high quality service proposition. We have been particularly successful with a combined field and phone nurse-led patient support offering and we are seeing increased opportunities from clients seeking to combine both medical information and pharmacovigilance support for their products.

Our business in Japan has progressed ahead of our expectations. The strategy of building the business through a partnership with a local Japanese CSO company has delivered good growth in the first half of FY14. The business continues to win new clients and has moved into profit in recent months. We expect that Japan will be an important contributor to the Ashfield division in the coming years.

In healthcare communications we have had another strong performance in the first half of the year, through a combination of new client wins and growth from existing clients. Clients are increasingly working with outsourced partners such as Ashfield to market their new and existing brands to healthcare professionals and patients in new and innovative ways.

Following its acquisition in March, KP360 is in the process of being integrated with our existing business and will be re-branded as Ashfield Healthcare Communications. We are now a market leader in this growing global market. The integration process has already generated a number of cross-selling opportunities with our existing Ashfield businesses.

The combination of strong organic growth and recent acquisitions is likely to result in the Ashfield Commercial & Medical Services division becoming the Group's largest operating profit contributor in FY15. When combined with future acquisition opportunities this growth momentum will result in this division being a major driver of the Group's future development.

Supply Chain Services

The Supply Chain Services division combines all the Group's healthcare logistics based businesses and operates in the UK, Ireland and the Netherlands. Divisional revenue for the period of €742 million is marginally ahead of the same period in 2013. Operating profits have decreased by 8% on the same period in 2013 to €20.8 million. This reduction was 2% excluding the Specials businesses, which were disposed of in February.

Our United Drug Wholesale business has seen a small increase in revenue, with a modest reduction in profits over the same period last year. Underlying volume growth and continued market share gains have offset on-going regulatory changes and as a result both revenue and gross margins increased in the period. These regulatory changes are mainly as a result of lower generic medicine pricing which is being introduced by the Irish Government on a phased basis. This will have an increasing impact on revenue although the impact on profit will be significantly less due to the margin model for generic medicines. Although revenue and gross margins were slightly ahead of the prior period, increased costs associated with the roll-out of our investment in automation, quality and re-branding led to a small decline in profit for the period. The investment in automation will see cost savings and efficiencies delivered in future years.

In United Drug pre-wholesale we have also strengthened our market leading positions in the provision of third party logistics services for healthcare clients in the Republic of Ireland and the UK. New business wins, in both Ireland and the UK joint venture, contributed to another period of profit growth.

We disposed of our pharmaceutical specials business in February and performance up to that point was below the prior period in terms of both revenue and profitability, although the monthly run rate had stabilised in the months leading up to disposal. The Group exited this business to enable it to focus on developing its core business offerings.

Our Aquilant Medical & Scientific business has continued to show strong sales growth in the first half of the year. Whilst our full service offering combining sales, distribution, engineering and other services has always been attractive to niche medical device clients, we have recently started targeting larger medical device companies. We are having considerable success with this as clients are attracted by the focus and flexibility that we can bring to commercialising specific product ranges within their portfolios. Revenue from higher margin capital item sales has, however, been lower than in the same period in 2013, which has resulted in a modest reduction in profits in the period.

Sharp Packaging Services

The Sharp Packaging Services division provides outsourced commercial and clinical trial packaging services to healthcare companies in both the US and Europe. Divisional revenue for the period of €82 million is 4% lower than the same period in 2013, with operating profit reducing by 19% to €7.5 million.

Following record revenue levels in the first six months of 2013, Sharp Packaging Solutions US has had a slower start to 2014. We also increased costs to manage anticipated future volume growth. While revenue and profit are behind the same period last year, the pipeline has increased, and the US business had a record month in March 2014.

Serialisation is the main driver of this increased pipeline. The "Drug Quality and Security Act" was signed into US law by President Obama in November 2013. This will place a new requirement for each package of medicine to have a unique serialisation number by November 2017, which can then be tracked throughout the supply chain. We believe that serialisation will drive increased outsourcing of commercial packaging to both our US and European businesses. In preparation for serialisation we have invested in both capacity and staff to enable us to capitalise on this important structural change in the market place. In the short term, this increased investment will reduce 2014 profits in the US below those recorded in 2013. We expect to capture the revenue and profit upside from serialisation from 2015 onwards, as clients prepare for the implementation of these requirements in late 2017.

The closure of our UK commercial packaging business was completed in the period and we were successful in transferring the majority of our pharmaceutical clients to the Dutch and Belgian sites. The overall European business achieved breakeven in the period, ahead of schedule. This was due to a number of clinical projects occurring earlier than anticipated and these timing impacts are likely to result in this business making a small loss for the full year, whilst delivering a substantially improved performance over 2013.

Overview of results

Group revenue for the period of €1.04 billion was 2% higher than 2013 and 3% higher on a constant currency basis. Operating profit, before acquisition costs, exceptional item and the amortisation of acquired intangible assets, was 2% ahead of 2013 at €45.0 million and 4% ahead on a constant currency basis. Profit after tax, on the same basis, was in line (3% ahead on a constant currency basis) with 2013 at €30.0 million.

* 2013 comparatives have been re-stated in accordance with IAS19: Employee Benefits (Revised)

Revenue

Revenue for the six months to 31 March 2014 was 2% ahead of the same period in 2013 at €1.04 billion. The Ashfield Commercial & Medical Services division reported revenue 14% ahead of the prior period.

Adjusted operating profit

Operating profit of €45.0 million is 2% ahead (4% on a constant currency basis) of the first half of 2013. Excluding the impact of the re-branding, the underlying operating profit is 7% ahead of the same period in 2013 on a constant currency basis.

Adjusted profit after tax

Net interest costs for the period of €8.0 million are 17% higher than the same period in 2013, primarily due to the impact of the private placement funding that was put in place in late 2013. This funding has now been fully utilised on the acquisition of KP360 in the period. Profit after tax of €30.0 million is in line with the same period in 2013 (3% ahead on a constant currency basis).

Adjusted diluted earnings per share

Earnings per share is in line with 2013 at 12.38 cent. On a constant currency basis it increased by 2%. Further details on the primary exchange rates used are provided in note 16.

Acquisitions

The Group completed the acquisition of MCG and KP360 in the first half of 2014. The net cash outflow on these acquisitions was €107.9 million. The net assets acquired with these acquisitions were €49.9 million, with goodwill of €58.0 million.

Cash flow

Net debt increased by €100.1 million in the period to €337.9 million. The net cash inflow from operating activities was €8.6 million including an outflow of €7.2 million relating to exceptional items incurred during 2013. The net cash outflow from acquisitions completed during the period was €107.9 million whilst €3.1 million was also paid out in deferred contingent consideration in relation to acquisitions from previous years. €20.0 million was also invested in property, plant and equipment and computer software, mainly IT investment to enable our businesses to achieve future growth in an efficient manner.

Balance sheet

Net debt at the end of the period was €337.9 million. The net debt to annualised EBITDA ratio is 2.62 times and net interest is covered 10 times by annualised EBITDA. The financial covenants are based on net debt to EBITDA being less than 3.5 times and EBITDA interest cover being greater than three times.

Dividends

The directors are proposing an interim dividend of 2.69 cent per share representing an increase of 3% on the 2013 interim dividend. The interim dividend will be paid on 17 July 2014 to ordinary shareholders on the Company's register at 5.00 p.m. on 23 May 2014. A Dividend Reinvestment Plan (DRIP), which enables shareholders who elect to participate to use their cash dividend to acquire additional shares in the Company, is available in respect of the interim dividend. The final date for receipt or cancellation of elections under the DRIP will be 20 June 2014.

Forward-looking Information

Some statements in this announcement are forward-looking. They represent expectations for the Group's business, and involve risks and uncertainties. The Group has based these forward-looking statements on current expectations and projections about future events. The Group believes that expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve known and unknown risks, uncertainties and other factors, which in some cases are beyond the Group's control, actual results or performance, may differ materially from those expressed or implied by such forward-looking statements.

Risk Management

Financial risk management

The Transparency (Directive 2004/109/EC) Regulations 2007 require the disclosure of the principal risks and uncertainties which could have a material impact on the Group's performance over the remainder of the financial year.

The Group continually identifies, evaluates and manages its key risks. In particular, the Group's business model and strategy is driven by the key risks affecting the healthcare market generally, as well as those that impact the Group's healthcare clients specifically. These external risks help us identify opportunities and define our strategic priorities. In particular, they have driven our growth and diversification ambitions.

The Group's ability to deliver on its strategy is assessed through the risk management process, which is underpinned by detailed risk registers maintained by each of the Group's divisions. These risk registers identify risks, as well as the plans for addressing them, and the consolidated Group risk register is reviewed by the executive directors on a regular basis. The consolidated risk register is also reviewed by the Risk, Acquisition and Finance Committee and the Chairman of that committee reports to the Board the outcome of each review.

The principal risks and uncertainties identified by the risk management process as facing the Group in the six month period to 30 September 2014 include the following:

Statement of Directors

Each of the directors confirms that to the best of their knowledge and belief:

· the condensed set of interim financial statements comprising the condensed consolidated income statement, the condensed consolidated statement of comprehensive income, the condensed consolidated statement of changes in equity, the condensed consolidated balance sheet, the condensed consolidated cash flow statement, and the related notes have been prepared in accordance with IAS 34, Interim Financial Reporting as adopted by the EU;

· the half-yearly financial report includes a fair review of the information required by:

(a) Regulation 8(2) of the Transparency (Directive 2004/109/EC) Regulations 2007, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

(b) Regulation 8(3) of the Transparency (Directive 2004/109/EC) Regulations 2007, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last Annual Report that could do so.

The Group's auditor has not reviewed this condensed half-yearly financial report.

On behalf of the Board(i)

P. Gray L. FitzGerald

Director Director

12 May 2014

(i) The Board of UDG Healthcare plc is disclosed on the Company's website, www.udghealthcare.com.

Condensed consolidated income statement

* 2013 comparatives have been re-stated in accordance with IAS19: Employee Benefits (Revised). See notes 2 and 13 for further details

Condensed consolidated statement of

comprehensive income

* 2013 comparatives have been re-stated in accordance with IAS19: Employee Benefits (Revised). See notes 2 and 13 for further details

Condensed consolidated statement of changes in

equity

* 2013 comparatives have been re-stated in accordance with IAS19: Employee Benefits (Revised). See notes 2 and 13 for further details

Condensed consolidated balance sheet

Condensed consolidated cash flow statement

* 2013 comparatives have been re-stated in accordance with IAS19: Employee Benefits (Revised). See notes 2 and 13 for further details

Notes to the condensed interim financial statements

for the six months ended 31 March 2014

_____________________________________________________________________________________________

1. Reporting entity

UDG Healthcare plc (the "Company") is a company domiciled in Ireland. The unaudited condensed consolidated interim financial statements of the Company for the six months ended 31 March 2014 are comprised of the Company and its subsidiaries (together referred to as the "Group") and the Group's interest in joint ventures and associates.

The financial information presented herein does not amount to statutory financial statements that are required by Section 7 of the Companies (Amendment) Act, 1986 to be annexed to the annual return of the Company. The financial information does not include all the information and disclosures required in the annual financial statements. The statutory financial statements for the year ended 30 September 2013 will be annexed to the annual return and filed with the Registrar of Companies. The audit report on those statutory financial statements was unqualified and did not contain any matters to which attention was drawn by way of emphasis.

2. Statement of compliance

These unaudited condensed consolidated interim financial statements ("the interim accounts") for the six months ended 31 March 2014 have been prepared in accordance with IAS 34, Interim Financial Reporting, as endorsed by the European Union. These interim accounts do not include all of the information required for full annual financial statements and should be read in conjunction with the most recent published consolidated financial statements of the Group.

Revisions to IAS 19 became effective for the Group for the first time for the financial year ending 30 September 2014. Comparative information for the six months ended 31 March 2013 has been restated on a comparable basis as if the revisions to IAS 19 had been effective in 2013. These revisions have increased the pension charge recognised in the Income Statement by €351,000, the net finance expenses by €199,000 and increased the related deferred tax credit by €162,000 resulting in a reduction in the originally reported profits by €388,000 and earnings per share by 0.17c for the prior period. There has been a corresponding increase in the actuarial gain of €550,000 recognised in the Statement of Comprehensive Income and related tax charge by €162,000. There is no net impact on the Group's net pension deficit in the current or prior years.

In addition to the impact of IAS 19 above, the following new standards are effective for the Group's financial year ending on 30 September 2014 and only impact the presentation of the interim results for the period ended 31 March 2014:

· IAS 34 Interim Financial Reporting - additional disclosures on financial instruments included in Note 14.

· IFRS 13 Fair Value Measurement - additional disclosures on fair value measurement included in Note 14.

During the period, a number of other amendments to existing standards became effective. These have been considered by the Directors and have not had a significant impact on the Group's consolidated condensed interim financial statements.

All other accounting policies applied in these condensed consolidated interim financial statements are the same as those which applied in the consolidated financial statements for the year ended 30 September 2013 and are those expected to apply for the financial year to 30 September 2014.

The preparation of interim financial statements requires the use of certain critical accounting estimates, judgements and assumptions. The areas involving a high degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, relate primarily to goodwill impairment testing, revenue recognition, valuation and ownership of inventory, valuation of trade receivables and provisions. The nature of the assumptions and estimates made in the preparation of the interim accounts are the same as those identified in our most recent annual report. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. There was no significant change to any of these key estimates or judgements in the six month period, other than a change to certain actuarial assumptions as set out in note 13.

The income tax expense for the six month period is calculated by applying the directors' best estimate of the annual effective tax rate to the profit for the period.

The directors have a reasonable expectation that the Company, and the Group as a whole, have adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the condensed consolidated interim financial statements.

As permitted by the Transparency (Directive 2004/109/EC) Regulations 2007 this Interim Report is available on www.udghealthcare.com. However, if a physical copy is required, please contact the Company Secretary.

3. Segmental analysis

The Group's operations are divided into the following segments:

Supply Chain Services - The Supply Chain Services segment combines all of the Group's healthcare logistics based businesses. The TCP Homecare business is now reported as part of this segment having moved from Sharp Packaging Services segment in the current reporting period. The comparative has been adjusted to reflect the impact of this transfer.

Ashfield Commercial & Medical Services - The Ashfield Commercial & Medical Services segment provides contract sales outsourcing, healthcare communications and related services to healthcare manufacturers. Masta is now reported as part of this segment having moved from Sharp Packaging Services segment in the current reporting period. The comparative has been adjusted to reflect the impact of this transfer.

Sharp Packaging Services - The Sharp Packaging Services segment provides outsourced commercial and clinical trial packaging services to healthcare companies. The comparative has been adjusted to reflect the impact of the transfers to other segments outlined above.

The segmental analysis of the business corresponds with the Group's organisational structure and the Group's internal reporting for the purpose of managing the business and assessing performance as reviewed by the Group's Chief Operating Decision Maker (CODM), which the Group has defined as Liam FitzGerald (Chief Executive Officer). The amount of revenue and operating profit under the Group's operating segments is as follows:

* 2013 comparatives have been re-stated in accordance with IAS19: Employee Benefits (Revised). See notes 2 and 13 for further details. The 2013 comparatives have also been re-stated to reflect the divisional split following the rebranding concluded at the end of September 2013 and the consequent transfer of the TCP Homecare and Masta businesses from Sharp Packaging Division to Supply Chain Services and Ashfield Commercial & Medical Services Divisions respectively.

4. Exceptional items

On 28 February 2014, the Group disposed of its shareholding in Arjun Products Limited, Craig & Hayward Limited and The Specials Laboratory Holdings Limited. The loss on disposal arising was €12,151,000. This amount included goodwill and intangible assets net of deferred tax ascribed to these businesses of €32,046,000 and related disposal costs of €389,000. Net assets on disposal were €7,199,000. Total consideration (net of cash disposed) was €27,483,000 which is subject to adjustment pending the approval of the Completion Accounts with the purchaser within 120 days of transaction close.

Restructuring costs and other, mainly comprising of redundancy costs, were incurred in the six months ended 31 March 2013 in relation to acquired and existing Group businesses. The other costs included legal costs for a matter where the Group was a defendant in a complaint made in the State of New York, which was subsequently settled in the period to 30 September 2013.

There was a non-cash goodwill impairment charge in the prior period. The impairment of goodwill arose as the Group wrote down the carrying value of goodwill in relation to the Sharp Commercial Packaging Group cash generating unit ('CGU') following a review of the value in use calculation at the 31 March 2013 reporting date, following the announcement of the closure of the UK commercial packaging facility.

Onerous lease costs were in relation to the acquired and existing portfolio of leased properties no longer in use.

5. Share of joint ventures' profit after tax

In November 2013, the Group acquired an additional 10% shareholding in Magir Limited, one of the Group's joint venture investments increasing the Group share of profits from 25% to 35% in this joint venture with effect from this date.

6. Finance income and expense

* 2013 comparatives have been re-stated in accordance with IAS19: Employee Benefits (Revised). See notes 2 and 13 for further details

7. Earnings per ordinary share

* 2013 comparatives have been re-stated in accordance with IAS19: Employee Benefits (Revised). See notes 2 and 13 for further details

** excluding amortisation of acquired intangible assets, acquisition costs and exceptional items (net of tax)

The adjusted figures for earnings per share are intended to demonstrate the results of the Group after eliminating the impact of amortisation of acquired intangible assets, acquisition costs and exceptional items and are deemed by management to be a key metric of monitoring Group performance.

Treasury shares have been excluded from the weighted average number of shares in issue used in the calculation of earnings per share. The average market value of the Company's shares for the purposes of calculating the dilutive effect of share options was based on quoted market prices for the period.

8. Movement in goodwill, intangible assets and investment in joint ventures and associates

UDG Healthcare plc purchased an additional 10% in Magir Limited, one of the Group's joint venture entities in November 2013 for a purchase consideration of £24,000, increasing its shareholding to 35%.

The disposals relate to the disposal of Arjun Products Limited, Craig & Hayward Limited and The Specials Laboratory Holdings Limited, see note 4 for further detail. The related deferred tax on the intangible assets disposed was €1,106,000.

The Group has revised its estimate of the fair value of intangible assets in respect of prior year acquisitions. This has resulted in a corresponding decrease in goodwill relative to amounts previously recorded. On the basis that this adjustment was not deemed to be material, it was accounted for in the current period.

9. Other reserves

10. Net debt