12th Aug 2008 07:00
Embargoed until 7.00am
UNITED DRUG PLC
INTERIM MANAGEMENT STATEMENT - 3 MONTHS TO 30 JUNE 2008
Dublin / London, 12 August 2008: United Drug plc ("United Drug" or "the Group"), a leading international provider of services to healthcare manufacturers and pharmaceutical retailers today issues the following Interim Management Statement (IMS) in compliance with the EU's Transparency Directive. This IMS covers the 3 month period from 1 April 2008 to 30 June 2008, representing the third quarter of the Group's 2008 fiscal year.
Three months ended 30 June 2008
During the third quarter, United Drug continued to experience good trading conditions across the Group. For the 9 months to 30 June 2008 overall group performance is well ahead of the corresponding period in the prior year, in line with the Group's expectations. This strong performance is despite the significant weakening in the value of sterling against the euro during the period. The fall in the sterling exchange rate reduces the value of sterling profits when translated to euro for reporting purposes.
During the quarter, the Group has continued its expansion as an international healthcare services company with further bolt-on acquisitions in the Contract Sales and Marketing Services division in the UK market. The acquisitions of Universal Conference and Incentive Travel Limited ("Universal") and Business Edge Solutions and Training Limited ("BEST") allow United Drug to further expand the range of value-add sales and marketing services the Group can provide for its pharmaceutical manufacturer clients. Both businesses have made a positive contribution to the Group during the period.
Following the acquisition of Universal the existing event management business of Procon will be merged with Universal to provide a more comprehensive service offering for pharmaceutical companies.
Material transaction since 30 June 2008
On 15 July 2008, United Drug announced that it had agreed to acquire Sharp Corporation ("Sharp") a leading independent pharmaceutical contract packaging company in the United States for $99 million. This deal was subject to regulatory approval in the US. All necessary approvals have now been received and the deal has closed with effect from today's date. The acquisition of Sharp means United Drug now has market leading positions in contract packaging in both the US and European markets, with a well defined management structure, and a strengthened international platform to continue to develop the business. After completion of this transaction United Drug continues to have a strong Balance Sheet with very manageable debt levels.
Outlook
United Drug remains positive about the fundamentals of its core markets and its position within those markets. The Group continues to explore opportunities to expand its business, both organically and through acquisition, and has a strong balance sheet to support its growth objectives. For the year to 30 September, 2008 the Group expects to deliver another period of double-digit profit and earnings growth, despite the fall in the value of sterling effecting the translation of profits.
2008 Reporting Timetable
The Group will issue a trading update for the year to 30 September 2008 on Friday, 3 October 2008. Full year results will be issued on Wednesday, 19 November 2008.
Ends. Tuesday, 12 August 2008
For reference:
Liam FitzGerald Pauline McAlester
United Drug plc Murray Consultants
Tel: +353-1-4598877 Tel: +353-1-4980300
Investors and Analysts
Mark Kenny/Jonathan Neilan
K Capital Source
Tel: +353-1-6315500
About United Drug plc
United Drug is a leading international provider of services to healthcare manufacturers and pharmaceutical retailers, with operations in the UK, Ireland, Holland, Belgium and the USA. The Company has a long-term track record of delivering double-digit profit, earnings and dividend growth. Over the last 20 years pre-tax profits have grown at a compound annual rate of 21%.
The Company operates across four divisions, Pharma Wholesale, Supply Chain Services, Medical & Scientific and Contract Sales & Marketing Services.
United Drug is the largest pharmaceutical wholesaler in the island of Ireland.
It is the market leader in contract distribution outsourcing (pre-wholesaling) in Ireland and has achieved the No. 1 position in the UK through its joint venture business UniDrug Distribution (UDG). The Company also provides distribution related services in the areas of pharmaceutical contract packaging and speciality distribution in the UK, Holland and Belgium.
Through its Medical & Scientific division, United Drug provides sales &
marketing and technical service solutions, including contract distribution services to Medical & Scientific equipment & consumable manufacturers, with a market leading position in Ireland and an emerging presence in the UK.
United Drug is also a leading provider of contract sales outsourcing and related marketing services to pharmaceutical manufacturers in the UK and Ireland and also provides these services in the US market.
Related Shares:
UDG.L